November 2012 Southwest Edition

Southwest Edition Texas Oklahoma Louisiana New Mexico

31

YEARS

www.autobodynews.com ww ww.autobodynews.com

Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’

earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property damage claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer Auto Repair Excellence, Inc. (CARE).

Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader

ABN: Why did you quit State Farm?

Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a

VOL. 30 ISSUE 11 NOVEMBER 2012

NACE 2012 in New Orleans

Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 8.

A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit.

CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session.

Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion.

Attendance was down on the show floor but some booths attracted record business.

ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices”.

AEII’s Tony Passwater presented on designing and implementing a complete repair plan.

The Autobody News staff doing its part to cover the industry.

See Steve Plier, Page 18

Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes Case Law

court went into great lengths explaining the history of “Business Law Section 349, Deceptive Business Practices” and the intent of it, writing: “This case presents us with the question of whether a business entity [North State] has stated a valid cause of action for violation of General Business Law §349(h) where it alleges that another business entity [Progressive] deceived and misled prospective customers, causing it to sustain direct economic loss in the form of more than $5 million in lost business sales. We conclude that it does.”

See Greg Cocarro, Page 40

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

North State Autobahn Inc., a Westchester-NY-based body shop owned by Greg Coccaro, has won an important victory in the New York Supreme Court Appellate Division against Progressive Northeast Insurance Company, Progressive Casualty Insurance Company, Progressive Direct Insurance Company, Progressive Specialty Insurance Company, and Nicholas Stanton. The result likely creates a case law basis for deceptive acts and practices claims against auto insurance companies that divert policyholders away from repair shops outside their DRP networks.

In a fifteen page decision, the

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Acura of Plano • Over $500,000 Parts Inventory • 15,000 Parts in Stock • Trained Experienced Crew • In State Next Day Shipping w/Quick Local Delivery • Great Discounts

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Parts Manager: John Keith Phone 972-964-5000 Fax 972-985-3114 jkeith@mcdavid.com

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2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

www.davidmcdavid.com

Contents VisionPlus Online Tools at NACE . . . . . 45

Body Shop Owner Runs for County

Car-O-Liner to Lead Training at

CARSTAR Adds Another Shop to

Collision Repair Industry Loses a

Commissioner . . . . . . . . . . . . . . . . . . . . 4 Network in Houston . . . . . . . . . . . . . . . . 7

Fire Marshall, Dallas Fire Rescue Team

SEMA 2012 . . . . . . . . . . . . . . . . . . . . . 20

Legend and a Friend; McBroom

Passed Away Oct. 11. . . . . . . . . . . . . . 21

Up on Canines . . . . . . . . . . . . . . . . . . . 12

DEG & the Keys to Successful Estimating

Fraud and Vehicle Theft Conference . . . . 7

Esurance recognizes Three CARSTAR

Options for Career Tech Students . . . . . 12

GCIA Succeeds in Getting Allstate to

Louisiana Department of Insurance Holds Oklahoma State Rep Wants Insurance Service King Acquires 50th Location

in Texas . . . . . . . . . . . . . . . . . . . . . . . . 4

Service King Acquires 51st Texas Shop,

in Mansfield. . . . . . . . . . . . . . . . . . . . . . 4

Service King Helps ‘Helping a Hero’

Presented in New Orleans . . . . . . . . . . 45 shops with awards. . . . . . . . . . . . . . . . 44 Reverse Decision about Sales Tax

Reimbursement . . . . . . . . . . . . . . . . . . 17

Greg Coccaro Wins Significant Appeal from Progressive Insurance,

Changes Case Law . . . . . . . . . . . . . . . . 1

Program for Military. . . . . . . . . . . . . . . . 4

Honda Develops New Welding Technology,

Best Place to Work . . . . . . . . . . . . . . . . 4

How to be a ‘Courageous Leader’

Hosted Digital Marketing . . . . . . . . . . . 33

Insurers Talk MSOs, Consolidation,

Suggests Ways for Consumers

Martin Senour Kicks Off 4Q

Sherwin-Williams A-Plus Network

Spring, TX, Auto Body Repair Expert

to Evaluate Body Shops . . . . . . . . . . . . . 6

Texas Employers See 49% Drop in

Workers’ Compensation Insurance

UHSS Structure for 2013 Accord . . . . . 26 Presented at NACE. . . . . . . . . . . . . . . . 44 the Cloud, and Tech Trends . . . . . . . . . 16 Training Program . . . . . . . . . . . . . . . . 44

Matrix Electronic Measuring, Inc.

Awarded Two Patents. . . . . . . . . . . . . . 26

Premiums Since 2005 . . . . . . . . . . . . . . 6

NABC Gifts 6 Vehicles to Needy

Collision Association . . . . . . . . . . . . . . . 4

NACE 2012 in New Orleans . . . . . . . . . . . . 1

TIAA Continues to Grow its New

COLUMNISTS

Attanasio: The Original Social Media, and

Most Important, is the Phone Call . . . . 38

Franklin: The New Co-Op Marketing . . . . . 42 Gesterkamp: E-Coated Parts Procedure . . 36

Insider: Clean Up Your Own House Before

You Gripe About Someone Else’s . . . . . 34

Sisk: CCRE’s Fall Seminar Covers Adhesion,

Warranties, and Much More . . . . . . . . . 14

Sisk: The NitroTech Spray Generator

Controls the Uncontrollable . . . . . . . . . 22

Yoswick: NACE Keynote Speech Focuses

on Thinking about Business . . . . . . . . . . 8

NATIONAL

American Honda Launches ProFirst

Shop Recognition Program . . . . . . . . . 28

Automaker, OEM and Recall News . . . . . . 30

BASF Showcases Newest Additions to

New Orleans Families at NACE . . . . . . . 46

NACE Sees Fewer People,

But Quality Events . . . . . . . . . . . . . . . . 10

Pink Car Tribute to Breast Cancer Survivors . 35

Prevost ALR Aluminum Air Piping

is an Easy System . . . . . . . . . . . . . . . . 21

Steve Trapp Presents Implementing

Best Practices for SOPs . . . . . . . . . . . . 41

WIZARDS Introduces Nano-Technology

Spray Wax . . . . . . . . . . . . . . . . . . . . . . 28

PartsTrader Coverage

ASA’s Caspersen Comments on

PartsTrader Meetings . . . . . . . . . . . . . . . 3

Former State Farm Claims Rep, Steve Plier,

Now Consultant, Talks ‘PartsTrader’ . . . . 1

George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins

“Not Guaranteed to Remain” As Are . . . 32

PartsTrader Reduces Minimum

Quote Time to 30 mins . . . . . . . . . . . . 42

Repairers are responsible for recommending suppliers and determining their default OEM and preferred OEM suppliers. Once a Select Service shop requests a quote on an estimate, the quoting request is sent to all suppliers whose application “preferences” match the content of the estimate. Suppliers, just like repairers, are able to set preferences. Suppliers are also responsible for setting their market area, parts type, and rates of delivery. Meeting attendees questioned why State Farm is doing this, what happens to repairers’ parts profits if this goes into effect, where is the efficiency, what State Farm sees as the future for collision claims and the size of their Select Service network—and the reigning question overall—where is the benefit to the collision repairers participating in the pilot?

“We continue to present to State Farm the concerns of ASA members.

If State Farm cannot provide data showing how this application benefits collision repairers (operationally/financially), ASA will respond appropriately on behalf of repairers,” said Caspersen. “ASA has provided State Farm with a timeline for data and will be meeting with State Farm to assess future actions.”

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Indexof Advertisers

Service King Wins Silver Stetson;

Reductions in parts profits was the biggest concern voiced by more than 125 collision repairers who attended two Automotive Service Associationsponsored meetings recently in Ohio centered around State Farm’s electronic parts ordering pilot.

The meetings were open to everyone in the collision repair industry at no charge. The first meeting was held in the Cleveland area Sept. 18; the second in the Cincinnati area Sept. 19.

Denise Caspersen, manager of ASA’s collision division, presented the elements of the pilot to date, reviewed industry concerns, and collected any additional questions, concerns and suggestions from attendees.

Repairers are concerned over the pilot’s inclusion of a discounted manufacturer’s suggested retail selling price (MSRP) column. Suppliers have the option to provide a discounted MSRP along with the margins of the part and the quote price. If a supplier elects to provide a discounted MSRP along with a quote for a part, it could result in lower profit margins on parts for the collision repair shop if that part is selected. State Farm stated in July that it does not ask for discounts on parts but if a supplier provides a discounted MSRP, this data is available to State Farm.

Southwest

REGIONAL

ASA’s Caspersen Comments on PartsTrader Meetings

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. ©2012 Adamantine Media LLC.

Autobody News

Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

BASF . . . . . . . . . . . . . . . . . . . . . . . . . 9 BMW Wholesale Parts Dealers . . . . 41 Chief Automotive. . . . . . . . . . . . . . . 11 Chevyland . . . . . . . . . . . . . . . . . . . . 20 Classic BMW . . . . . . . . . . . . . . . . . . 29 Classifieds. . . . . . . . . . . . . . . . . . . . 46 Dallas Dodge . . . . . . . . . . . . . . . . . 48 David McDavid Auto Group . . . . . . . 2 Dent Tools Direct USA . . . . . . . . . . 20 Don Carlton Auto Group . . . . . . . . . 33 Equalizer Industries . . . . . . . . . . . . 28 Filtersforbooths.com. . . . . . . . . . . . . 7 Finnegan Chrysler-Jeep-Dodge . . . 23 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 39 Fowler I-240 Chrysler-Jeep-Dodge. 13 Garmat USA . . . . . . . . . . . . . . . . . . . 6 GM Wholesale Parts Dealers . . . . . 43 H & S Autoshot . . . . . . . . . . . . . . . . . 4 Haydell . . . . . . . . . . . . . . . . . . . . . . 22 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 24-25 Huffines Hyundai Plano . . . . . . . . . 15 Hyundai Wholesale Parts Dealers . 40 Kia Motors Wholesale Parts Dealers. 37 Lee Supply, Inc . . . . . . . . . . . . . . . . 32 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 47 Malco. . . . . . . . . . . . . . . . . . . . . . . . 15

Mazda Wholesale Parts Dealers . . . 44 Mercedes-Benz of Oklahoma City . 34 Mike Calvert Toyota. . . . . . . . . . . . . 34 Mitsubishi Wholesale Parts Dealers. 38 MOPAR Wholesale Parts Dealers . . 27 North Freeway Hyundai . . . . . . . . . 18 OE Reman. . . . . . . . . . . . . . . . . . . . 16 Ray Huffines Chevrolet . . . . . . . . . . . 5 Reliable Automotive Equipment . . . 21 Reliable Chevrolet. . . . . . . . . . . . . . 12 Replica Plastics. . . . . . . . . . . . . . . . 32 River Oaks Chrysler-JeepDodge-Ram. . . . . . . . . . . . . . . . . 28 Safety Regulations . . . . . . . . . . . . . . 8 SATA Spray Equipment . . . . . . . . . 17 Scoggin-Dickey Buick . . . . . . . . . . 35 Solution Finish . . . . . . . . . . . . . . . . 42 South Pointe Chrysler-Jeep-Dodge. 19 Star-A-Liner . . . . . . . . . . . . . . . . . . . 14 That’s Included . . . . . . . . . . . . . . . . 12 Toyota of Fort Worth . . . . . . . . . . . . 26 Toyota of Laredo . . . . . . . . . . . . . . . 31 Toyota Wholesale Parts Dealers . . . 45 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 36 Volvo Wholesale Parts Dealers . . . . 43 Young Chevrolet . . . . . . . . . . . . . . . . 6

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

TIAA Continues to Grow its New Collision Association

Service King Acquires 50th Location in Texas

The Texas Independent Automotive Association continues to grow with new members regularly joining, according to Hunter Hooge, Membership Director. The association recently started their San Antonio collision-specific chapter, which has about 20 members.

At its Sept. 19 meeting, the association hosted guest speaker Joe Leewright of Ellis and Salazar Garage & Body Shop, which has been operating in Austin, TX, since 1953. The body shop owner talked about having a mix of DRPs and private pay work and how shops working together in the industry will make things better for everyone.

In other news, the TIAA held its annual family picnic on Sept. 29 at Eisenhower State Park, in San Antonio. The event included a silent auction, door prizes, raffle, kids games and adult tournaments. Friends and family of business owners, technicians, parts specialists, delivery drivers and warehouse workers were invited. The event was held as a fundraiser for the John Pundt Memorial Scholarship Fund which gives scholarships to youth pursuing an education in automotive repair.

Express Autobody marks Service King’s 50th location in Texas. David Schwartz will manage the 18,000square-foot, 16-employee shop.

“Georgetown is a growing area and we look forward to serving the needs of customers and insurance partners by providing the best service and collision repairs in town,” said Jeremy Lennox, vice president of Service King’s South Texas market. “We’re eager to provide Service King’s renowned level of friendly and professional customer service. The quality of work by highly skilled and expertly trained body technicians and painters carries a lifetime guarantee.

We are also bringing top-notch health, retirement and career benefits to all Georgetown teammates.”

Texas-based Service King currently operates 23 collision repair locations in Dallas, 12 in Houston, nine in San Antonio and six in Austin, Texas. The company has plans for continued growth after global alternative asset manager The Carlyle Group acquired majority ownership of the company in August.

Service King previously acquired eight Autobody World centers in Arizona. See adjacent stories for more details.

Body Shop Owner Runs for County Commissioner

Service King Wins Silver Stetson; Best Place to Work

Dwight Tanner Jr., a Lawton businessman in Oklahoma, has announced his candidacy for Central District Comanche County Commissioner.

Tanner prepared the following statement with his announcement: “I am Dwight G. Tanner Jr. and I am an independent candidate for Central District Comanche County Commissioner. I was born in Corsicana, TX, the fruitcake capital of the world, minus a few of us. I moved to Lawton in the late 1970s to live with my mother. My stepfather, Dan Cox, was in the military and he owned an auto body and paint business. He taught me the trade of auto body and paint repair and I went into business for myself in 1990.

“Since opening Tanner’s Auto Body 22 years ago, I have also successfully maintained a towing company and various real estate investments.

“I attended MacArthur High School and am currently a part-time student at Cameron University. I am married and have five children. They are all good-looking and smart, just like their daddy. I am very thankful for the blessings I have.”

The Dallas Business Journal recently honored 57 companies at a luncheon for the 10th Annual Best Places to Work awards.

The top winners were Service King Collision Repair Centers among large companies, New York Life, Dallas General Office among midsize companies, and Southwest Search LLC among small companies. The three grand champions were among 57 companies recognized at an Old West-themed lunch banquet at the Westin Galleria.

Along with commemorative plaques, the grand champions were awarded with fancy silver Stetson cowboy hats.

Silver Stetsons also were bestowed on the three honorees who’ve been recognized for nine years out of the competition’s 10-year history: insurance company MHBT, law firm Thompson & Knight and Service King Collision Repair Centers.

Service King’s executives said they plan to keep participating in the annual competition going forward.

Jeff McFadden, Service King president, said “We’ve been in it for nine years and it continues to be a marker for our success.”

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Service King Acquires 51st Texas Shop, in Mansfield

Service King Collision Repair Centers, a Texas-based operator of multiple collision repair facilities in the Dallas-Ft. Worth, San Antonio, Austin, and Houston markets, will purchase Collision Specialists of Texas, a collision repair center in Mansfield, TX. Collision Specialists becomes Service King’s 51st location in Texas, and their 24th collision center in the Dallas-Fort Worth marketplace.

Brent McKinney, Vice President of Service King’s DFW Market stated, “Collision Specialists has a reputation for quality repairs and excellent customer service. Service King is excited to be able to service the Mansfield and surrounding areas with this new location. The state-ofthe-art 37,000 square foot facility will allow Service King to service the Mansfield market offering growth and promotional opportunities to our new teammates.” Collision Specialists will ultimately employ 40 teammates. Service King will close on its acquisition of eight Autobody World centers in Arizona. in November, and will open a brand new facility in Lakeway, TX, early in 2013.

Service King Helps ‘Helping a Hero’ Program for Military

Service King Collision Repair Centers helped to raise $25,000 for the Helping a Hero Organization through a charity golf event in the San Antonio area.

Helping a Hero is a non-profit, non-partisan organization providing support for severely injured military personnel. Their principal activity is to provide specially adapted homes for qualifying service members, as well as engaging the community to provide services and resources for them and their families.

“This was our first tournament in San Antonio, and it was a huge success,” Jeremy Lennox, Vice President of the San Antonio market, said.

“Our tournament came at a perfect time, as they are awarding a home to a double amputee in two weeks.”

After the golf tournament, Service King had a live auction during a luncheon were local agents, vendors and staff bid on donated items to raise money for this cause. Some donated their live-auction items, so one hero could have his own “man cave” with some fantastic sports memorabilia.

Service King will hose its 18th annual Dallas / Fort Worth golf tournament on Oct. 22 to raise money for Interfaith Housing Coalition.

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• Online ordering through OEConnection (call for details) www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

Spring, TX, Auto Body Repair Expert Suggests Ways for Consumers to Evaluate Body Shops

A Spring, TX, auto body repair specialist says when it comes to quality accident collision repair, consumers should evaluate the body repair shop to ensure they are getting the best repair services.

Don Ward, owner of A-1 Auto’s Carstar Auto Body Repair, said most consumers assume that all auto body repair shops are the same but that is not true.

“All auto body repair shops are not the same. Consumers need to know how to differentiate. They need to know how to find out if the shop they are dealing with is good or not,” he said.

Ward advises consumers to consider a few things before settling on the shop for their auto repair needs.

“How do you know if you’re getting the best work for your money?

There are some common ways to tell if your auto body shop is worth the money, and more importantly if they’re giving your vehicle the proper attention to avoid problems in the future,” he said.

According to Ward, the first thing consumers must do is ask their family and friends for recommendations.

“No matter how much money a business spends on advertising, it is always best to do business with shops that have been recommended by friends and family. That way you know that your friends and family are happy with the services they received from the shops,” Ward said.

The Texas auto body repair specialist said consumers should also consider smaller repair shops.

“Smaller repair shops tend to give more personalized services. Most times, you meet the owners there or the employees have worked there for so long and know a lot of people in the community and that is an advantage to the customer,” he added.

Ward also advised that consumers use only licensed and insured auto body repair shops, read and understand the repair shop’s warranty, ask the shop the materials they will use to fix their cars and look for clean shops with good customer service.

“These things may appear to be simple but they can make a difference.

It could mean the difference between being satisfied with the services you receive and being frustrated by poor quality service,” Ward added.

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6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Texas Employers See 49% Drop in Workers’ Compensation Insurance Premiums Since 2005 Texas employers are seeing a major reduction in workers’ compensation insurance premiums, an insurance trade group reports.

The Insurance Council of Texas (ICT) says reforms in House Bill 7, passed in 2005, and earlier legislation have improved the efficiency of the Texas workers’ compensation system.

The Texas Department of Insurance reports premiums for workers’ compensation policies have seen a 49% decline in rates since House Bill 7 was passed.

The average premium was $1.38 per $100 dollars of payroll in 2010 as compared to $2.70 per $100 of payroll in 2004.

“HB 7, which was passed in 2005, was landmark legislation for the workers compensation insurance system,” said Steve Nichols, ICT workers’ compensation manager. “The legislation directly addressed the problems the workers’ compensation system faced and the results have been an overall reduction in rates, costs, disputes and claims.”

The good news comes from a new study entitled “Premium Rate Ranking Summary” published by the Oregon Department of Consumer and Business Services.

The study listed Texas as the state with the most improvement in premium costs since 2010. Texas’ workers compensation premiums fell from a nationwide high ranking of 12 down to 38.

HB 7 overhauled the Texas workers’ compensation system by providing for the use of healthcare networks, strengthening medical treatment guidelines, placing a greater emphasis on return-to-work and restructuring the workers’ compensation agency.

The biennial study ranks all 50 states and Washington, D.C., based on rates that were in effect Jan. 1, 2012.Alaska had the most expensive rates, followed by Connecticut. North Dakota had the least expensive rates.

California had the third-highest rates, followed by Washington at 13 and Idaho at 19.

Because states have various mixes of industries, the study calculates rates for each state using a standard mix of the 50 industries with the highest workers’ compensation claims costs in Oregon.

www.autobodynews.com CHECK IT OUT!

Louisiana Department of Insurance Holds Fraud and Vehicle Theft Conference The Louisiana Department of Insurance (LDI) and the Louisiana Automobile Theft and Insurance Fraud Prevention Authority (LATIFPA) held their biennial conference on Oct. 17 in Baton Rouge.

The 2012 Conference on Insurance Fraud and Vehicle Theft boasted a gathering of local and national insurance industry experts and leaders and featured presentations on current trends, techniques and technological advances used in the prevention of insurance fraud and vehicle theft.

President and Chief Executive Officer of the National Insurance Crime Bureau (NICB) Joseph H. Wehrle was keynote speaker. Louisiana Commissioner of Insurance Jim Donelon delivered opening and closing remarks.

Insurance Fraud Chief Thomas McCormick with the Criminal Division of the Department of Justice, East Baton Rouge Parish District Attorney Hillar C. Moore and 19th Judicial District Criminal District Judge Anthony J. Marabella, Jr. provided insight on their roles in the prosecution of insurance fraud.

Featured topics discussed included the impact of social media on insurance fraud, as well as interview and interrogation techniques used dur-

ing a fraud investigation. The conference also included sessions on healthcare insurance fraud, catastrophe fraud and vehicle theft and insurance fraud claims.

According to the NICB, more than 10% of the insurance claims submitted each year are fraudulent, making insurance fraud the second most costly white-collar crime in America after tax evasion. Insurance fraud accounts for as much as 10% of insurance premiums and the average household spends $950 a year in additional premiums to cover the cost of insurance fraud in America.

“Louisiana is actively engaged in the prevention of insurance fraud and vehicle theft,” said Commissioner Donelon. “By participating in antifraud legislation, public awareness campaigns and supporting the use of bait cars, license plate readers and educational outreaches such as this conference, LDI and LATIFPA continue to diligently work towards reducing fraudulent claims and vehicle theft in Louisiana.”

Since its inception in 2004, LATIFPA has worked to reduce vehicle theft in Louisiana through various initiatives. The number of auto thefts statewide has declined by 37% from

15,640 in 2006 to 9,893 in 2010, the latest year for which statistics are available.

The Louisiana Legislature has also ramped up efforts to combat the high cost of insurance fraud. The most recent of those efforts came during the Louisiana 2012 Regular Legislative Session when two acts were passed to address insurance fraud.

Act 201 broadened the reporting requirements of insurance fraud from “fraudulent insurance claims” to “fraudulent insurance acts,” which expands the law to cover any suspected fraud that will be, is being or has been committed.

Act 862, titled the “Sledge Jeansonne Louisiana Insurance Fraud Prevention Act,” allows the Attorney General to file a civil action in Baton Rouge District Court in order to recover losses from a “fraudulent insurance act.”

The legislation imposes a fine of $10,000 per occurrence, and recovery of actual damages of three times the amount of the fraudulent insurance act.

“It is our hope that these stiff monetary penalties will be an added deterrent to insurance fraud,” said Commissioner Donelon.

CARSTAR Adds Another Shop to Network in Houston

CARSTAR Auto Body Repair Experts has announced the addition of JD Auto CARSTAR Collision in Houston, TX, to its network of collision centers. North America’s largest MSO network has some 410 stores in the United States and Canada. As a member of CARSTAR, JD Auto CARSTAR Collision will offer an array of services and products for collision repair, including the latest in repair technology, rental vehicles, national warranties on repairs and turnkey service for customers. JD Auto CARSTAR Collision will take care of the entire process of repairing the vehicle for the vehicle owner, from getting the vehicle towed to the facility to coordinating with the insurance company to restoring it to pre-accident condition. The new CARSTAR store will benefit from the CARSTAR Management Systems, which provide resources to improve key business metrics such as cycle time, participation in CARSTAR’s 19 corporately managed DRP programs, and improved purchasing power from 45 corporately managed purchasing programs. “We are excited to welcome Mark Burris and JD Auto CARSTAR Collision to the CARSTAR network,” said David Byers, CEO of CARSTAR.

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Industry Insight

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).

Contact him by email at jyoswick@SpiritOne.com.

NACE Keynote Speech Focuses on Thinking about Business with John Yoswick

During his keynote address at the 2012 International Autobody Congress & Exposition (NACE) in New Orleans, LA, former CARSTAR CEO Dick Cross offered his corollary to a Mahatma Gandhi quote by telling a crowd of 800 attendees, “A business is but the product of the CEO’s thoughts. What she thinks, it becomes.”

It’s a concept NACE organizers themselves may need to keep in mind as they acknowledged that while this year’s show offered “some big wins,” it also was down slightly in terms of both exhibitors and attendees.

Twenty minutes, three times a week Cross kicked off the event by saying that although the business successes that he’s had that were cited in his introduction are true, his career has not been a “charmed path.”

“I have probably over two-and-ahalf decades made every business mistake that everyone in this audiences has made, and maybe even some of them that you would never make,” Cross said.

“Unintentionally, I have made decisions that have hurt business performance. I have failed to create circumstances that would allow everyone to make their contribution to the cause. I have terminated people that I have wondered in the aftermath whether it was the right thing to do. There were times in my career when I hesitated to lay my job as CEO on the line, to stand my ground for what I knew was right. But as painful as all those things are to remember and think about, they are the things that drove my obsession to understand and to become very good at the job at the top.”

In addition to leading CARSTAR from 2005–10, Cross has been brought in by private equity firms to run a halfdozen other under-performing companies, and through his consulting firm, he said he’s helped more than 150 other CEOs improve their company’s performance. He said one of the biggest failings he sees among many business owners and CEOs is not regularly setting aside time to just think about the business.

“For most of us in this room, thinking is the hardest work that we have to do,” he said. “If there’s anything else to occupy our time besides

thinking, we’ll generally be doing it.

My observation is that about 90% of the time, most of the CEOs in the United States are doing things that have nothing to do with this job at the top. But thinking helps you understand what the possibilities of your business could be, and helps you to understand generally how to make it happen.”

Dick Cross, former CEO of CARSTAR, presented concepts from his book, “Just Run It!” Copies on display sold out quickly

He offered several “big picture” ways that CEOs should think about the business. For example, he said that businesses are like products in that they have a life cycle; they begin with an idea, an embryo, and then some go on to grow and mature. Whether they go on to continued success or wither and die, Cross said, is often up to the person at the top, who can either get complacent and coast—usually leading to the company’s demise—or who can restart the cycle by finding a new set of customers for the business or by finding other ways to serve the needs of existing customers.

Cross said good CEOs also recognize the difference between leadership and management. Leadership, he said, sets in front of others very enticing goals and helps make them want to help achieve those things. Management is only about assembling the resources needed to execute on that vision.

At CARSTAR, he cited as an example, he worked to help everyone in the organization realize their purpose wasn’t to just fix cars.

“The purpose of CARSTAR became: We help people though a crisis in their lives,” Cross said.

The kind of thinking that makes

8 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

companies succeed, Cross said, can be accomplished by those at the top who set aside 20 minutes a day, three days a week, to tune out other day-to-day distractions and just think about the business.

“Running a business is not a fulltime job,” Cross said. “You probably spend most of your time doing other stuff, stuff that others ought to be doing themselves rather than having you do it.

But you can do a great job running your business 20 minutes, a day three days a week, thinking about those things.”

Show leaders offer their view Two years after shifting away from holding NACE in Las Vegas each fall, event organizers cited a number of reasons attendance may have been down this year, from the still-slowly-recovering economy to the New Orleans location, which has fewer shops than Orlando within an easy-to-drive distance.

“Attendance at all the key (show)

events was up,” Lindsay Roberts of Hanley Wood, who manages the show for its sponsor, the Automotive Service Association, said just hours before the show closed. “We had some major players who hadn’t exhibited at the show for a while. We got some of the paint companies back. We got some of the OEMs back. But we are a little disappointed.

Total attendance is going to be down. It’s pretty hard to compare to the Orlando last year where we up over 20% from the 2010 event. We had really hoped we would see that growth through to this year. We’ll release final numbers probably within the next five to seven days.

But we do think we’re going to be slightly down over last year.”

But Roberts chiefly cited a continued decline in the number of companies exhibiting at the show, which is down about 17% from as recently as 2010.

“What we need is more product, See NACE Keynote Speech, Page 11

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 9

NACE Sees Fewer People, But Quality Events Collision repair professionals from across North America came together recently at NACE in New Orleans, LA, to network, see the latest and greatest in equipment and products, and to contemplate a smaller but still high-quality event. Some 225 companies occupied 50,000 sq. ft. of exhibit space but attendees were fewer in number from last year’s Orlando venue.

“It was a great pleasure to have Dick Cross open the 30th Anniversary general session,” said Ron Pyle, ASA president. “He delivered a practical and easy-to-implement plan for success. I am sure everyone in attendance agrees that he was extremely motivational and an excellent choice to kick off this very special ASRW.”

Leadership and Management Tactics NACE began October 10 with a series of seminars and lectures regarding sales tactics and innovation of paint and materials, including The Art of the Deal—Acquiring and Developing New Locations; Marketing to Generations X and Y; and Paint and Materials: The Paradigm Shift.

The afternoon sessions saw a focus on leadership, delegation and customer management tactics, aimed at retaining and appeasing your staff and customers. Seminars included Leadership Best Practices—How to Inspire, Delegate and Coach Your Team to Success, by Mike Anderson; Calming and Retaining Angry Customers, by Margie Seyfer and Guilt

by Association—Defining Your Image,

by Tony Nethery. Kurt Lammon of Urethane Supply Company instructed viewers on how to properly weld plastic with nitrogen, while Dan Espersen of ALLDATA taught the best practical applications of OEM Information.

I-CAR spokesmen Bob Zelano and Jeff Poole ran afternoon seminars on Corrosion Protection and Hazardous Materials, Personal Safety and Refinish Safety, respectively.

The first day of NACE was capped off with the Assembly, a confidential, closed-door forum for collision repairers.

Profit Building NACE continued with tutorials, demonstrations and information pertaining to every aspect of the collision repair industry. The exposition portion of the event also opened at 10:00 am, offering the latest products, services

and technologies from industry leaders.

The Profit Building Pavilion portion of the exposition showcased vendors with customer-driven products, such as Autoshop Solutions, Demandforce, Mudlick Mail Co. and Net Driven Media.

Ron Pyle, ASA President and ASRW Chair

The morning of Oct. 10 saw several seminars headed by I-CAR. Bob Zelano ran a seminar on automotive foams and Tony Nethery instructed participants on proper measuring methods.

Educational highlights included ICAR representative Shawn Collins’s workshop on Blueprinting Process and Damage Discovery, (BLU01); I-CAR’s Bob Zelano presenting the Steel Unit-

Margie Seyfer presenting Calming and Retaining Angry Customers

ized Structures Technologies and Repair class and Bryan Dodge of Dodge Development’s presentation on balancing your work and life.

Blueprinting Process and Damage Discovery This new course provided an interactive training experience and was filled to capacity during both sessions. ICAR offered special premiere pricing for this course launch with a cost savings of $56 for standard pricing.

The new Live Demo course demonstrates I-CAR’s commitment to increased student interaction in the classroom and uses an actual vehicle to demonstrate technique while engaging students in the learning process.

10 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Rich Southerland of Alldata attended the Thursday premiere of Blueprinting Process and Damage Discovery and stated, “This is the best I-CAR class I’ve attended. I couldn’t imagine how this would not benefit any tech or shop employee.”

The course led students beyond the disassembly of damaged parts to help them uncover hidden damage that can impact the repair process and provided a number of demonstrations, including quick checks and implementation tips. Students who attended the course gained an understanding of the definition of the blueprinting process and how the process can help improve repair quality through a standardized approach to collision repair planning.

The day wound down with the ASRW Welcome Party, sponsored

by CCC, and held at the iconic Mardi Gras World venue, basically a warehouse of larger-than-life characters used on floats and in Mardi Gras themed events. Attendees were toured through the warehouse where Mardi

Gras floats are manufactured, and ended up at the Grand Oaks Mansion next door where some excellent local dishes were offered.

NACE events on Oct. 11 ended with the ASRW Industry Awards ceremony completing the second day of NACE. The ceremony was held at the National World War Two museum.

The NACE conference continued on Oct. 11 with several I-CAR seminars, human resource tutorials and team development clinics. The ASRW Collision Forum also took place in the morning.

MSO Symposium The ten-and-a-half-hour MSO (Multi-store operators) Symposium hosted by Matthew Ohrnstein of Symphony Advisors took place Friday. The symposium spanned the duration of the NACE Friday schedule and was comprised of five panels that aimed to help multi-store business owners, many of whom take over failing operations in order to rejuvenate them, improve aspects of their businesses including culture, branding, customer relations, lead-

ership and finance.

The MSO Symposium also included networking opportunities for owners, and ended with a networking reception in the evening.

Shawn Collins held his second seminar on Blueprinting Process and Damage Discovery, while Bob Zelano taught the second Structural Straightening Steel seminar, both hosted by I-CAR. The seminars were add-on educational seminars available on both Thursday and Friday.

OEMs including General Motors, Toyota and Nissan all sponsored booths during the show, offering promotional giveaways and showcasing new products.

Expo Floor Some highlights from the on-floor demo area included exhibits from Innova Electronics Corp. on how their CarScan tools benefit shops and CAS of New England revealing The Truth About Programming in Today’s Vehicles.

Kaeser Compressors created an informative technical (not sales-oriented) presentation titled “Compressed Air Requirements for Waterborne Paints.” It was held October 10 to help repairers make practical choices for their shops.

Topics included: sources of moisture and contaminants, air system components that affect paints and finishes, the impact of air amplifiers and more.

Mike Anderson, CollisionAdvice.com spoke on Financial Best Practices

Some workshops on Friday afternoon focused on the financial aspect of collision repair. Mike Anderson of CollisonAdvice.com spoke on measuring performance in Financial Best Practices. Dan Stander of FIX Auto Highland Ranch moderated The Keys to Successful Estimating! panel, in which data providers addressed audience questions.

Denise Caspersen of ASA and Melissa Miller of CARSTAR encouraged women to be courageous leaders in their seminar, one of several in the Women’s Professional Development

track of NACE. (See story this issue.)

Twenty 2.0 peer benchmarking A new-to-NACE-this-year, Twenty 2.0 peer benchmarking event was attended by about 20 repairers and ran on Friday afternoon hosted by keynote speaker Dick Cross.

Twenty 2.0 is/was a peer benchmarking/virtual 20 group concept, applicable to both mechanical service/repair and collision repair shop owners focused on doing “the job at the top.” The 90-minute session began with a half hour introductory session, followed by an hour-long breakout session. All participants had the opportunity to enroll in the formal (ongoing) Twenty 2.0 virtual 20 group at the conclusion of the session.

“Shop owners interested in obtaining the value of participating in a 20 group process with a non-traditional time or financial investment won’t want to miss this unique session,” said ASA president Ron Pyle in advance of the event. “We’ve taken the 20 group concept and upgraded it to the digital age. Participants who formally enroll will receive all the benefits of belonging to a 20 group, with a virtual twist.”

Continued from Page 8

NACE Keynote Speech

more exhibitors on the show floor,” Roberts said. “We need to give attendees three days worth of product and people to network with. We need the executives from these major companies who were here walking the aisles to have booth space on the show floor and to support the show.”

She did say that more than 40 companies have already signed on for next year’s event, up one-third from the number who had signed contracts for this year’s show during the 2011 event.

But NACE organizers have also given themselves the added challenge of holding the 2013 event in Las Vegas next October 16–19—in the same city just two weeks before SEMA, which has been working to attract collision repair industry exhibitors and attendees.

That may have been one of the reasons NACE organizers took the unprecedented step of also announcing that two years from now, NACE will again be on the east coast, returning to the city that hosted the very first NACE back in 1983: Nashville, TN.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 11

Oklahoma State Rep Wants Insurance Options for Career Tech Students Oklahoma State Rep. Joe Dorman wants to find out what insurance options could be made available for career technology students in Oklahoma.

In an announcement released by the Oklahoma House of Representatives, Dorman, D-Rush Springs, said his interest was spurred by a call from constituent whose son attends a career technical school that, unlike many colleges and universities, offered no group health insurance to students.

Eighteen higher education institutions, including the state’s largest universities, provide a health facility on campus while 12 institutions do not provide a facility. Only nine institutions provide a path or forum for private insurance companies to educate students about insurance opportunities.

Insurance coverage is provided to all student athletes and some institutions make healthcare plans and information available to all students.

NCAA athletes have the option to purchase a policy through that organization.

Dorman said his intent is not to run legislation, but to instead work with career tech officials to create

more opportunities for students. If no affordable policy can be worked out for a group rate, then options such as expanding coverage to Insure Oklahoma could be examined.

“Ultimately, we would like to have the option available for students to have the most affordable policy available,” said Dorman. “With the changes in insurance we have seen at the federal level and the allowance for parents to keep their kids on their policies up to age 26, we must now look at how to best offer coverage to those non-traditional students who want affordable insurance.”

Source: Oklahoma House of Representatives

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Fire Marshall, Dallas Fire Rescue Team Up on Police Canines The Texas Fire Marshal’s Office Accelerant Detection Canines (ADC), their handlers, and approximately 40 other canine teams from Texas, Oklahoma, Louisiana, and California will participate in the 2012 Texas K9 Conference and North American Police Work Dog Association (NAPWDA) Workshop. The conference and workshop is hosted by the Texas State Fire Marshal’s Office (SFMO) and the Dallas Fire-Rescue Department the week of October 22–25, 2012 in Dallas, TX. The purpose of the annual conference and workshop is to certify K9 teams in specialized areas, such as narcotics, cadaver, search and rescue, obedience, and accelerants. NAPWDA Master Trainer, Matthew Devaney, the U.S. Department of Homeland Security Customs and Border Protection Canine Center and SFMO Deputy State Fire Marshal and Accelerant Detection Canine Instructor, Tommy Pleasant, lead the accelerant detection canine training.

Canine teams participate in accelerant detection tests designed to duplicate field conditions in a variety of realistic search scenarios a team

may encounter. Once the canine team passes the tests, their certification is valid for one year from the date of issue. Accelerant detection canines receive NAPWDA and SFMO certification. A chemist is onsite to provide and verify accelerant samples used during certification.

The State Fire Marshal’s Office has five accelerant detection canine teams. According to Pleasant, “All SFMO ADCs are European dogs that are trained on 14 accelerants, from which we get over 60 brand names of ignitable liquids. The SFMO ADCs are play reward dogs which means they work off of their natural drives.”

The conference provides free training and certification to police and fire canine teams. Section Chief Debra Mullins with the Dallas FireRescue Department says “having certification from a nationally recognized agency adds credibility to in-house canine programs for court purposes.”

For more information about The SFMO Canine Teams, The Texas Canine Conference or the NAPWDA Workshop contact Rachel Moreno at (979) 277-4278 or Rachel.Moreno @tdi.state.tx.us.

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Northeast News with Chasidy Rae Sisk

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

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More As a follow-up to the CCRE legal seminar held in March 2012—which I attended and wrote about in Autobody News (search “CCRE” at autobodynews.com)—the Pennsylvania Collision Trade Guild (PCTG) hosted the Coalition for Collision Repair Ex-

Steve Behrendt addresses the contract of adhesion

cellence for the second event in this series of seminars.

CCRE’s 2012 Fall Seminar was held Friday and Saturday, September 21–22 at the Airport Embassy Suites in Philadelphia, PA. PCTG decided to host CCRE again due to the overwhelmingly positive responses they received on the 2012 Spring Seminar. An audience of nearly 50 came to Philadelphia from as far away as Alaska.

Attorneys Erica Eversman and John Parese joined the CCRE’s legal seminar as featured speakers to share their legal expertise on the collision repair industry.

In his welcome and introduction speech, Steve Behrendt, president of PCTG and CCRE Board Member, addressed the importance of understanding adhesion, or more specifically, an adhesion contract. [Editor’s note: An adhesion contract is one which is imbalanced in favor of one party over the other so that there is a strong likeli-

14 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

hood it was not freely negotiated.

Example: a rich landlord dealing with a poor tenant who has no other options and must accept all terms of a

Attorneys Erica Eversman and John Parese

lease, no matter how restrictive or burdensome, because the tenant cannot afford to move. An adhesion contract can give a “little guy” the opportunity to claim in court that the contract with the “big shot” is invalid. This doctrine should be used and applied more often, but the same big guy-little guy inequity may apply in the ability to af-

ford a trial or find and pay a resourceful lawyer.]

Behrendt explained how a relationship with a third party (i.e., the insurance company) triggers a legal and binding contract which exploits a shop’s ability to do business individually. Behrendt said that avoiding adhesion will help collision repair shops operate independently by providing them with the freedom to be paid based on the services performed as adhesion can influence a court’s decision against a shop as it regards their relationship with a third party. In contrast, an authorization to repair form protects a shop’s independence, their relationship with the customer, and their need to make a profit by distancing them from the insurance company.

Through adhesion, third parties try to make the reserve estimate part of a shop’s repair process by utilizing their estimate as a method of payment, but the estimate is only the third party’s

guess at the cost of the repair, not a blueprint for the repair.

The insurance company’s estimate is created to verify that there is a legitimate claim and to set a claims reserve which is money earmarked for eventual claim payment. Shops need to find a way to eliminate this estimate in order to prevent insurance companies from controlling their business. One way to do this is by stamping all third party documents as “for informational purposes only.” This preserves the shop’s independence by avoiding adhesion and any type of agreed-price scenario. It also allows shops to distance their business from a third party’s control and behavior. Shops should prepare and work off of their own repair blueprint and analysis, and this is what should be used for the repair and the final invoice.

Shops should properly prepare and close their final invoice based on the shop’s job costing and gross profit, handing the invoice to the insurance company for final payment.

Moving from a collision repairer’s point of view to a legal point of view, attorney Erica Eversman took the floor to discuss repair contracts and authorization to repair which was very similar to the presentation she gave in

March of this year. Discussing the differences between the two contracts in a non-DRP relationship compared to the three contracts that make up a DRP relationship, she noted that “insurers like to think they’re in charge of everything. They want all of the control and none of the responsibility.” In a DRP relationship, two informed parties have an agreement about how to satisfy the obligations of their individual contracts to the customer, usually before a collision actually occurs. In the current aberration for individual shops, the insurer acts as if the repairer has duties to this third party which is why it is so important for shops to utilize a written repair contract. A classic example of a contract of adhesion is found in insurance policies as one party has more power than the other since consumers are legally required to have auto insurance. This is the only industry where consumers do not really have the ability to negotiate their contracts or even see the terms before they purchase it, which is why this binding contract can be cancelled.

In the relationship between a repairer and a consumer, the repairer’s responsibility is to inform the customer, acquire authorization and repair

the vehicle, while the consumer should receive information, approve the repairs and pay. Repairers have no right to expect payment from the insurance company as they should expect payment from the consumer, but though it’s important to provide customers with an estimate of the repair cost, consumers are more concerned with how their car gets fixed since the insurance company actually pays the bill. This is why Erica recommends getting the customer’s informed consent after the repair process has been fully explained to them so they understand what is going on with their vehicle.

A repair contract should define the customer, the shop’s duties, what type of parts will be used, the damages to the vehicle and the repairer’s professional judgment. A wise inclusion is the right to expectancy damages which will entitle the collision shop to get paid for costs accrued if the customer opts to take their car to a different shop. This also includes reimbursement for loss of work if the insurance company persuades the consumer to have their vehicle repaired at a DRP shop. Additionally, this encompasses the preparations that the shop has made, such as ordering parts and allo-

cating time and personnel. This can also include opportunity cost, defined as potential business that may have been turned away because the shop’s resources had already been dedicated.

This will help to establish recovery from tortuous interference. The signed contract ensures that the shop has the right to sue for expectancy damages.

The repair contact is designed to emphasize that the repairer is the professional and that repairs are based on the repairer’s professional judgment.

When there is a conflict in the opinions of the repairer and the insurance company regarding what is right to do, the repairer’s opinion should take precedence because they are the professional. Erica believes this is important for developing a better public relations standing regarding how complicated collision work is since there are many variables that come into play; unfortunately, the collision industry is losing the public relations war because insurance companies spend a lot of money advertising about how they repair vehicles, leaving consumers with the misconception that their insurance company will fix their car, through the insurer only pays for the repair.

See CCRE Seminar, Page 23

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Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends A NACE panel of three representatives from top auto insurers discussed industry consolidation, technology and future trends during the Collision Industry Forum insurance panel discussion Oct. 12. Speaking on a panel moderated by Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, the insurers responded to the noticeable consolidation trend affecting both repairers and insurers, specifically the growth of several MSOs such as The Boyd Group, ABRA, CARSTAR, Service King and Caliber Collision—but also that of smaller regional MSOs. “MSOs that can replicate quality procedures are attractive as a group,” George Avery of State Farm said.

“Using a score card to rate MSOs across the board represents an interesting opportunity. But just like independent shops, they must perform to stay on our system.”

Avery said that any MSOs on their DRPs are measured as individual shops and must compete to perform on that basis. He recalled State Farms’s experience with M2, the 27shop consolidator in California that

Insurance Representatives on panel (l to r): Moderator Dan Stander, State Farm’s George Avery, Nationwide’s Rob Knott, and Allstate’s Randy Hansen.

closed abruptly back in 2005, reinforced his company’s interest in finding top-performing individual shops, whether stand-alone or part of an MSO. “State Farm maintains that whether you are an independent or an MSO, you should be able to compete, and so State Farm evaluates even MSOs as individual repairers,” Avery said. “I’m not discounting [the MSOs’] ability, but I am saying that those with individual repair facilities have skin in the game, and that can have a lot of value on the customer service side, which we’re all after.”

Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain market-

places, so you’re not going to put (all their shops in a market) on (the direct repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.”

Randy Hansen of Allstate also said each facility on his company’s DRP, even if part of an MSO, has to stand on its own performance.

But the three acknowledged that MSOs can offer some appealing services such as call centers, extended hours and a single point-of-contact.

Hanson said the collision repair industry suffers from a “tremendous amount of inefficiency” that consolidation alone cannot cure. Instead, shops should consider expanding their hours of operation or finding other

ways to better utilize their facilities and equipment.

Consolidation in the insurance industry is likely to continue as companies seek to grow. “The only other way to grow is by taking another company’s customers,” Knott said, and those are costly acquisitions because acquiring a new customer is seven times more costly than retaining their own customer, he said.

Avery added that MSOs present an “interesting platform” in which to experiment with a change on a large but not national scale.

“You hear people talk about how the model is broken,” Avery said.

“There are components [of change] that could be perhaps introduced into an MSO that you couldn’t quite introduce companywide. So I feel compelled to tell you, not to make anyone nervous about MSOs taking over, but I do have to say that is a place where you could possibly go and say, ‘Look, we’d like to try something different.’”

Avery suggested later in the discussion that attendees think like a young driver using her mobile device to find out what to do after a minor accident.

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“What can we do together? Can we work together to offer her a 48-hour repair?” Avery asked. “You might say, ‘Yeah, if you quit making me take all these pictures and jump through these hoops.’ And I might say, ‘Okay, I’ll stop that.’ So as we look at the future, I’m leaning toward partnering and saying, look, that customer is going to leave us and go somewhere else. She is not going to tolerate inefficiency.”

Cloud Computing and Data Ownership Knott said technology changes so quickly that it’s hard for insurers and repair shops to keep up. “Our customers are pushing insurance companies to evolve with technology and a challenge is how fast can we adopt new technology. But if we don’t change we will be left behind.”

Allstate has consolidated 100 legacy systems into one delivery platform, Hanson said. “It was tremendously complex and we spent hundreds of millions of dollars to implement it.

We recently adopted cloud computing.

It is very flexible and offers more applications and options.”

With cloud computing convenience comes the more complex issue of data ownership.

“Cloud computing is great because it allows you to access your data anywhere,” Knott said. “However, there is great concern over data ownership and who has access to the data.

Hanson said the issue of data ownership is clear to Allstate. “We view it as the customer’s data, not the shop’s or the insurance company’s. It is our obligation to keep it secure and protect it. State Farm is developing its own cloud and securing the data is one of the most important initiatives, according to Avery.

Advancing OEM technology is a trend that concerns repairers and insurers. Stander asked: “If cars won’t be crashing into each other due to accident avoidance technology, what does that mean for repairers and insurers?”

Avery said that accident avoidance technology won’t be fully implemented for 15 to 20 years. “With or without that technology, we need to figure out a way to help our customers in the future. Customers will not tolerate inefficiency. They will find what they want with or without us.”

Hanson said the new OEM technology has the potential to change the way insurers do business, but it’s not clear what those changes will be.

GCIA Succeeds in Getting Allstate to Reverse Decision about Sales Tax Reimbursement The Georgia Collision Industry Association (GCIA) announced that it has been successful in getting Allstate to reverse its decision that it would no longer reimburse shops for the sales tax charged to consumers on paint and materials. Several weeks ago, Allstate had communicated this change in policy to many GCIA members.

GCIA then contacted the Georgia Department of Revenue, which cited Regulation 560-12-2-.08: In general, regulation [560-12-2.08] provides that the sale of auto painting can be structured as either 1) the sale of painting services, where the auto painter must pay tax on all tangible personal property used to perform his service and will bill his customer for painting services only; or 2) the retail sale of paint with painting labor, where the auto body shop will purchase the paint exempt for resale, and then bill his customer for the paint and repair/painting labor, and then collect tax on the sale to the customer.

Of course, the labor charge will be exempt if itemized on the customer’s invoice. Regulation 560-12-2.08 supports both types of transactions.

The Department can only require that the tax be applied correctly to the type

of transaction chosen by the seller and buyer.

After communications with the Georgia Department of Revenue and Allstate regarding this issue, the GCIA received word from Allstate that their stand on this issue had been reversed.

On Sept. 25, Dan Risley, market manager (south) for Allstate, spoke to Howard Batchelor, executive director of GCIA, and told him that Allstate will pay sales tax on paint and materials.

However, GCIA is attempting to obtain an official written statement from Allstate.

In addition, GCIA is working on guidelines for members as to how shops should pay, collect and remit the sales tax on paint and material items.

Anyone wishing to assist in writing these guidelines should contact Howard Batchelor at (770) 367-9816 or howard@gcia.org.

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Continued from Cover

Steve Plier

perfect world by numbers.’ More often than not, in this industry, reality is much different than the perfect world. Reports/scorecards of repairers are formed through a perfect world computerized format. For example: new parts can and are often damaged in shipping, causing returns and delays; used parts often are not of quality to be used in the repair process; vehicle owners often leave their vehicles (that are safe to drive) at repairers on Fridays because a claims representative has ok’d a rental. These examples are only a few that come to mind that can affect a repairer’s scorecard. Some of the numbers/averages on the scorecard include formulas that have key performance indicators in a weighted format that could never be explained as how the particular number/average score was determined.

Not a comfortable situation when attempting to discuss a repairer’s performance considering we do not live in a perfect world.

ABN: What do you think of the PartsTrader pilot program?

Plier: My opinion of the Partstrader program is not positive. The information provided to me by repairers on the program, from individuals that were in meetings with State Farm employees during the test pilot roll out in Alabama, the information that is being provided by the many different publications and the information provided

by State Farm Consultant George Avery at the recent Georgia Collision Industry Association meeting indicate to me there are a lot of questions that State Farm and/or PartsTrader either refuse to answer or do not have an answer for. I would suggest everyone to consider if something is mandated, why is it being mandated? Items, programs, actions, etc. that have to be mandated usually have a lot more bad for a large multiple sectored group than good. Is this the reason the portion of the Select Service agreement is being actively enforced on this program? Any repairer on the Select Service program agreed if requested/required by State Farm to use a parts locating/procurement program they would. There are several others sections within the Select Service agreement with the same type language that repairers have agreed to.

ABN: Why do you think State Farm introduced this program? Where do you think State Farm is going with it?

Plier: I feel there are multiple reasons. First and for the immediate time, I feel State Farm was aware of manufacturers offering parts pricing match programs and believed the implementation of a program such as PartsTrader could lead to suppliers taking an aggressive approach to expand business by reducing prices in a bid/quote program such as this. However, I believe the bigger purpose here is if successfully implemented, this would open the door to the other sections of the Select Service agreement requiring additional actions from repairers as agreed to such as this.

ABN: How do you think the program will affect the industry? Repairers are saying this pilot program is inefficient and costs them more than its worth.

Plier: I feel if State Farm is successful with this program resulting in mandated use of locating and procurement systems, the balance of the insurance industry will quickly follow with the same or similar programs. My opinion is this will not be good news for the consumer. I know State Farm is saying this is intended to be focused on claims expense and no one should be against anything that might result in reduced cost, and according to State Farm, a possible reduction in premiums for policyholders. I am currently a State Farm policyholder; I definitely want my premiums to be as cheap as possible, but even more importantly, I want my vehicle repaired properly.

For repairers to keep up with the everchanging technology, training is a must. Equipment requirements must be maintained so if programs such as this affect industry members’ ability to meet these needs it is not good. I have read and heard Mr. Avery say State Farm does not want to tell repairers who to buy from, but I have not heard State Farm address the actual inefficiencies that to date I have seen this program cause to repairers and other inefficiencies I have been told of by repairers. There does not seem to be any concern from State Farm and/or Partstrader that this program does indeed have an additional labor and administrative time/expense associated to it for the repairer and supplier. I read in an article, that according to the writer, the repairers they had spoken

18 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

with suggested an average additional 30 minutes per day. The repairers I have spoken with in Birmingham suggest to me they approximate spending an average of an additional 30 minutes per claim. Birmingham repairers note you may have some claims that only require an additional five to ten minutes of additional time, but you also have those claims they may require an additional hour of administrative time.

I have not spoken specifically with any parts suppliers on the PartsTrader list, but feel any supplier on the Partstrader list is also incurring additional administrative time and expenses if they are following the rules of the program.

ABN: Does this program offer any benefits to the repairers?

Plier: Based on the current information provided and from the feedback received from Birmingham area repairers, I have not been able to identify what I would consider a benefit for a repairer on the program. State Farm has stated they have received positive feedback from their evaluations, the only thing is, to my knowledge, State Farm has not to this date provided a single item with the indus-

try that can be viewed as positive feedback. If there has been anything positive for the repairer, I have not heard nor have I read about it.

ABN: With repairers highly wary of the program, what do you think the solution is?

Plier: I feel the distrust and confrontational nature of this industry between the two parties are much deeper than this program. I am not sure there is a simple solution for this issue if all sides must benefit. If attempts are made to identify efficient alternatives, both sides must work together to identify the many different possibilities.

There already exist electronic ordering opportunities used by many repairers, so if there is ever to be a solution that all sides agree to, I feel there will be multiple businesses/ venders to choose from. I do not feel mandating a particular program is the answer.

ABN: Was State Farm too aggressive in launching this program?

Plier: Considering the information that has been provided to the industry, ‘yes.’ I do not believe the details had See Steve Plier, Page 20

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Continued from Page 18

Steve Plier

been thoroughly reviewed and considered.

ABN: What does it suggest to you when State Farm can’t come up with a single benefit to repairers?

Plier: Maybe because there is not a single benefit associated to the shop in regards to this program. I believe if State Farm had identified benefits for the shops and or the suppliers, we would all have heard about them by now.

ABN: What kind of damage control could State Farm do now?

Plier: I’m not sure there is a definite single thing that could be focused on here. There are many issues in the repair industry that need to be addressed for the “RIGHT REASON”—the consumer. Many of these issues have been around for many years, but have never been addressed. As rules identified in repair agreements continue to expand, the magnification of the many issues grow. For example: the need for an independent third-party survey process

to identify a competitive pricing range; the agreement that the repair procedure pages are not pick and choose, but will be honored completely at all times, just to name a couple.

ABN: What should affected shops be doing right now about PartsTrader?

Plier: My recommendation would be for each and every repairer on the Select Service repair program or any repair program to review their program agreements and then reread them again. List questions or concerns identified in the agreements and contact the particular insurance company to discuss any questions or concerns.

After any discussions, make a business decision based on consideration of all factors of what you feel is in the best interest of your business.

ABN: What is the background of State Farm’s previous efforts on this issue?

Plier: State Farm had a trial program in California and Indiana in 2009, but discontinued the program after Chrysler filed for bankruptcy and GM accepted a government bailout in 2009. The trial was structured differently then as compared to the PartsTrader program now.

About CARE Plier started his business, CARE, in 2010 after leaving State Farm. His goal, focus and efforts with Consumer Auto Repair Excellence, Inc. has been to assist repair facility owners and manager with a better understanding of simple business principles, such as understanding their business operating cost and the importance of quality control programs, and to understand simple things involved in the repair process, that if itemized, they should and could be compensated for by the majority of the insurance companies.

The services provided by CARE also involve assistance to repairers by investigating issues and questions that repairers encounter and providing documentation to back the recommended positions. Plier assists repairers with identifying possible solutions that would be beneficial to the industry and in particular focused on what is appropriate and in the best interest of the consumer.

Steve Plier, President Consumer Auto Repair Excellence Inc. www.consumerautocare.com 205-623-9307

Car-O-Liner to Lead Training at SEMA 2012 Seminar on Damage Analysis to Support the Blueprinting Process.

Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, has retained Larry Montanez of P&L Consultants, LLC, to develop and present a hands-on workshop entitled “Fast Tracking Vehicle Repairs.”

The seminar debuted at this year’s NACE show in New Orleans, LA, and will also be presented at this year’s SEMA show in Las Vegas, NV. The presentation will cover damage analysis to include quick checks, damage classification, premeasuring, and how Car-O-Liner equipment aids in the Triage and Blueprinting process. Classes will be held in the Car-O-Liner booth at each show.

“This is an important topic in the collision repair industry and we are happy that Larry Montanez will be partnering with us to present this information in our booth this year,” said Doug Bortz, National Sales Manager for Car-O-Liner Company.

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Collision Repair Industry Loses a Legend and a Friend; McBroom Passed Away Oct. 11 Dave McBroom February 16, 1945 – October 11, 2012

The collision repair industry is mourning the loss of Dave McBroom, president of the Florida Autobody Collision Alliance, and friend, brother and mentor to countless people whose lives he touched.

William David “Dave” McBroom passed away peacefully on October 11, 2012 in Jacksonville, FL, at the age of 67. A native of Cookeville, TN, and a graduate of the University of Tennessee, Dave served in the U.S. Army for 21 years and was a decorated helicopter pilot in Vietnam before retiring as a Colonel.

Dave was also president of Sunbeam Autobody in Jacksonville and was committed to raising the professional image of the collision repair industry. Through Dave’s leadership and passion, the Florida Autobody Collision Alliance was formed and grew from three body shop owners having coffee once a month to more than 400 members in six chapters throughout the state.

“FACA’s members and board of directors grieve Dave’s untimely death and extend our deepest condolences to his wife Terri and his entire family,”

said Cathy Mills, FACA’s executive director. “Dave was an absolute role model—a caring friend, a supportive husband and loving father and grandfather, and a passionate industry advocate. Our lives will be forever changed with his passing.”

“I have lost a very dear friend,” said Chuck Sulkala, executive director of the National Auto Body Council. “Dave’s ever present greeting of ‘what can I do to help you today’ will be my pleasure to ask of others I now meet. I am sad beyond Dave McBroom belief and he will be missed deeply. May Dave’s legacy be with us forever.”

“Dave McBroom was an amazing, inspiring individual,” shared SCRS executive director Aaron Schulenburg. “His membership, his peers, and his friends flocked to him.

He had a lifetime of well earned experiences that gave him the apt ability to tell an inspiring tale on just about any subject matter, and a compelling kindness in his disposition that offered a charisma held by few. His passion for

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the industry, for what is right, and for living life to its fullest was unparalleled and it is an immeasurable loss for all of us.”

Dave leaves behind his wife Terese “Terri” Walker McBroom, sister Marilyn Joyce “Joby” Cloutiaux; children Kevin McBroom (Pam) of St. Augustine, FL, Stephanie Nelson (John) of Cookeville, TN and Amy Helms (Alan) of South Carolina; niece Shayne Harris (Kirk), nephew Robin Trousdale (Sonia); grandniece and nephew Ashley Pelfrey and Clayton Hopper. As “Pap,” he will be missed by his adoring grandchildren Andrew, Isaac, Kingston, Winston, Ally, Abby, Lily, Lyla, William, Ashlyn, and Lexy.

Funeral services were held Oct. 18 in the Chapel of Hardage-Giddens Funeral Home of Mandarin.

Interment will be held at a later date in Double Springs Cemetery of Cookeville, TN. In lieu of flowers, the family requests donations be made in memory of Dave McBroom to Hubbard House Women’s Shelter, Attn: Development, P.O. Box 4909, Jacksonville, FL 32201, or Concerns of Police Survivors (C.O.P.S) 5530 Beach Blvd, Jacksonville, FL 32207.

Prevost ALR Aluminum Air Piping is an Easy System

The second largest energy cost in the average automotive shop is generating and maintaining compressed air.

A new Prevost ALR aluminum air piping system can pay for itself in less than two years in lower energy costs while extending the life of components and pneumatic tools. Prevost ALR comes in seven sizes from 20 mm to 80 mm diameter.

The key to the cost saving are the smooth walls of the piping, aluminum’s excellent corrosion resistance and the system’s “bubble tight” compression connectors.

Another major benefit of Prevost ALR piping is installation cost savings.

According to the MCAA Labor Manual, installation time for a 300-foot aluminum looped header system is 20 hours compared to 63 hours for black iron and 74 hours for copper. The system can be easily installed or modified by shop staff without threading, sweating or gluing and produces “bubble tight” connections. And the system can easily be reconfigured or dismantled and moved to another location.

For more information on Prevost ALR Aluminum Air Piping Systems, call 800-845-7220 or visit www.prevostusa.com.

RAE is North America’s premier supplier of Wielander+Schill equipment, the most globally recognized name in collision repair with the most OEM approvals.

OEM approved systems and products are the “preferred choice” for use in collision repair because the system or products have already been pre-screened by the car manufacturer.

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Company Connections

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

The NitroTech Spray Generator Controls the Uncontrollable with Chasidy Rae Sisk

For many collision shops, spray painting with compressed air means dealing with uncontrollable or difficult to control variables, including temperature, humidity and pressure.

“Compressed air is a problem because air changes based on temperature, altitude, and other variables that cannot be readily controlled,” says Michael Haydell, president of Haydell Industries. As a result, the viscosity of painting material also changes with each use due to moisture and temperature, as well as the build-up of static electricity. Static makes the material do what it wants to do, not what the painter wants it to do.

Haydell Industries offers a solution to this dilemma in the form of their NitroTech Spray Generator.

Their vision is to “be the premier provider of innovative solutions and systems for customers’ productivity,” and they achieve this through their values of integrity, excellence, com-

munication and accountability.

Haydell Industries was founded in 1986 by Michael Haydell as a manufacturing representative company. But their focus changed to the production and distribution of nitrogen-based spray systems in 2005. They also now sell a variety of shop equipment, including industrial paint booths and filters.

The use of inert nitrogen offers painters a gas to spray with, providing a more consistent finish. This leads to a reduction in the use of wet materials, an increase in booth throughput, and a decrease in the cost of booth exhaust filters. As an added bonus, the NitroTech Spray Generator is also environmentally friendly as it significantly reduces the VOCs and HAPs released into the air.

Haydell Industries separates the impurities at a gas level to redirect the air’s properties, and by controlling the temperature through their hose, they are also able to control viscosity, while

22 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

using ionization processes to eliminate static electricity. This uses less paint as the nitrogen allows the substrate to be fully covered in fewer coats than can be accomplished using compressed air.

Though an air compressor is still necessary to supply the NitroTech Spray Generator with compressed air, the compressed air is replaced by a perfect fluid carrier of Nitrogen, Argon and/or Carbon Dioxide. The system can easily be integrated into a shop’s existing system without changing spray equipment, processes or the preferred coating. The only maintenance required for Haydell’s Nitrogen system is a change of inlet air filters once a year.

Since Haydell Industries’ NitroTech Spray Generators reduce the use of materials by 30–50%, collision shops can save up to 20–30% in material costs by integrating this technology into their repairs. Nitrogen spray also reduces application time by 30–50%, providing even more savings in man hours.

Haydell Industries received their patent for the third generation of their Nitrogen Technology in May 2012.

Michael Haydell proudly states, “Our newest generation uses 250% less compressed air than the first generation, making it 250% more efficient.”

Haydell Industries’ impressive list of clientele includes Boeing, Mercedes-Benz and Hendricks Motor Sports. Their website claims, “we are gaining momentum, ensuring we remain in the forefront of any competition, as we keep a firm hold on Advanced Application Technologies through our nationwide distribution network...

Haydell Industries can be reached at: 163 Pellerin Road Lafayette, LA 70560 1-800-877-4362 1-337-989-0307 (fax) www.haydell.com info@haydell.com

Continued from Page 15

CCRE Seminar

Emphasizing that shops “must remember that the insurance company is not their customer,” Erica reiterated her lesson from March about the three options that insurers have when handling a claim and how a DRP relationship allows them to control the repair without accepting liability. She discussed the usefulness of addressing replevin in the repair contract. Replevin, sometimes known as “claim and delivery,” is a legal remedy which allows the recovery of goods unlawfully withheld from possession via a legal process in which a court may require a defendant to return specific goods to the plaintiff at the outset of the action (i.e. before judgment). Replevin grants the shop the right to a possessory lien, allowing them to retain the vehicle until payment is received. Erica explained the benefits of an Assignment of Proceeds and other documents.

Another useful document is the Acknowledgement Terminating Repair Contract and Releasing of Motor Vehicle which is designed to protect collision shops by giving them the

chance to retain business by informing the customer of what is going on and by improving a shop’s chances should they decide to take the case to court. A Customer Notice of Insurance Deficiency informs the customer of their insurance company’s refusal to

Truman, Steve, Rick, Mike and Tony of CCRE

fully pay to properly and safely repair the vehicle. This helps in the public relations battle as it shows the shop’s refusal to breach their repair contract by adhering to the insurer’s pressure to provide an unsafe repair.

A Customer Notice of Insurer Delay keeps the customer informed regarding their repair by alerting them to delays caused by their insurance company. Shops can also provide their customers with the Vehicle Damage Insurance Election form which they

can send to their insurer demanding to know how they plan to pay for the repair. Though it is highly unlikely that any insurance company will sign this document, the insured has the right to demand a response from their insurance provider. A Notice of Additional

Cost can also be sent to the insurance company to inform them of additional costs incurred during the repair. This document helps independent collision shops avoid third party interference by refusing to permit the insurer to cause inefficiency and by giving the impression that the insurer must respond to the shop, reiterating the point that the repairer is in control of the repair.

Erica Eversman also recommended providing consumers with a Parts Notice and Authorization docu-

ment, which she plans to publish on autoepi.org for distribution, in order to help consumers understand the various types of parts that may be used to repair their vehicle. She ended this presentation by repeating her opinion of the dangers of aftermarket and salvage parts and discussing what shops should and should not warrant, emphasizing that shops should not offer a warranty on anything other than their workmanship.

Next, John Parese, Esq., discussed the definition and uses of an assignment. An assignment is a transfer of property or another right from one person to another which confers a complete and present right in the subject matter. As a contract between these two parties, an assignment is subject to contract law and interpretation. Causes of action issuing from a wrong which causes injury to the property or from tort by which the property is diminished or damaged are generally assignable, and a party may assign their right to recover damages to the property without conveying title to the property.

A valid assignment requires clear evidence of the intent to transfer rights and a description of the subject matter of See CCRE Seminar, Page 29

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 23

24 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

Honda has developed some new technology for vehicle construction, and they have applied it for the first time in the world to a mass-production vehicle; and not just any mass-production vehicle, the Honda Accord, one of the top-five selling vehicles in the United States.

The newly redesigned 2013 Honda Accord went on sale in the United States on September 19, and its construction is the result of Honda’s next-generation Advanced Compatibility Engineering (ACE) body structure which utilizes the new welding technique as well as hot-stamped and other ultra-high strength steels to build its cabin structure.

The Accord’s subframe is made with a combination of steel and aluminum joined together with a process called Friction Stir Welding (FSW).

The continuous weld technology generates a stable metallic bond between steel and aluminum by moving a ro-

tating tool on the top of the aluminum which is lapped over the steel with high pressure. Honda says the resulting weld strength is equal to or greater than conventional MIG welding.

Honda also developed a non-destructive inspection system for quality control that uses a highly-sensitive infrared camera and laser beam to inspect every unit. The carmaker says the Friction Stir Welding system it developed for this process can be also be used for aluminum-to-aluminum welding and could be used for production of a full-aluminum subframe.

The subframe however, should not cause many repairability issues according to I-CAR Technical Director Jason Bartanen, as Honda provides no repair procedures at all for the part, and specifies complete replacement only.

“What will cause some issues is the high strength steel used in this car’s body structure,” said Bartanen speaking from the I-CAR Tech Centre in Appleton, Wisconsin.

The newly redesigned 2013 Accord body uses 55.8% high-tensile steel, more than in any previous Accord. And 17.2-percent of the steel is grade 780, 980 and 1,500 MPa, extremely high grades that have never before been used in any Accord, and in fact, very few other cars, according to Bartanen.

Matrix Electronic Measuring, Inc. Awarded Two Patents

Matrix Electronic Measuring Inc., a developer of advanced measuring devices for the automotive collision repair industry, has obtained two patents for its new vehicle measurement system called the Matrix Wand.

Rob Bailey, director of sales engineering and business development for Matrix Electronic Measuring Inc., details how the Matrix Wand adds efficiency and quality to shop estimating procedures. Watch now » The Matrix Wand is a handheld vehicle measurement device used for estimating structural collision damage.

The tool, which was publicly launched in April, uses two cameras that capture three-dimensional images of vehicle damage. Estimators can use the images to measure all damage on a vehicle’s body and engine components, reveal hidden damage, verify repair quality and enable predictive wheel alignment.

Matrix has been awarded two patents for the measurement system and method, which was developed

by Guidelight Business Solutions, a global business and enterprise application development company based in Austin, TX. Matrix has two more patents pending on the tool, which the company expects to be awarded soon.

With ownership of the patents, Guidelight said Matrix will be able to reduce the number of competitors in the market and obtain revenue from licensing.

“The patented innovations Guidelight has developed for Matrix pushes the Matrix Wand to the forefront of the burgeoning marketing of vision systems and augmented reality,” said George Stevens, CEO of Guidelight.

For more information about the Matrix Wand, visit thematrixwand.com.

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

“This is one of the first cars to use such high strength steel (1500 MPa) in its body structure,” says Bartanen. “Most applications only use it only for bumper beams. But the new

Accord uses ultra-high strength steel in its A pillar and B pillar reinforcements as well as its rocker reinforcements. Honda is requiring MIG brazing only in these areas.

While Honda is not the very first to build such a body structure, none of the previous vehicles even come close to the sales volume of the Accord.

“The Volvo XC60 is also using similar ultra-high strength steel (1,500 MPa) in the structure,” Bartanen noted.

The Accord has historically sold between 250,000 and 400,000 units a year compared to XC60 sales of approximately 25,000.

Bartanen said I-CAR is currently updating its Honda and Acura training available online. The new Accord will be covered in I-CAR’s Collision Repair Overview for Honda and Acura Vehicles (HON01) and should be available within the next few months.

“We have an Accord body in white on its way here right now,” Bartanen noted. “We are going to paint it to show the various steels used in this car and prepare it for display at the SEMA show.”

The ninth generation Accord, which also contains Forward Collision Warning and Lane Departure Warning technologies, officially debuted at dealerships across the U.S. on September 19 at a base price of $21,680 plus destination charge.

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American Honda Launches ProFirst Shop Recognition Program

American Honda Motor Co, Inc. announced the launch of the ProFirst body shop recognition program on Oct. 15. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete, and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction.

To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated ICAR Gold Class Professionals® business, and have at least one person presently employed by the shop who has completed the I-CAR course, Collision Repair for Honda and Acura Vehicles (HON01).

“CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers, said Bill Lopez, Director of OEM Program Development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs.” Lopez added, “CollisionLink also helps to increase efficiencies and

parts ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers” John Van Alstyne, I-CAR CEO & President stated, “The ProFirst body shop recognition program, in conjunction with the I-CAR Gold Class Professionals designation, will align participating shops with a training program that is meant to elevate the customer experience and enable shop employees to work up to their full po-

tential.” Van Alstyne added, “Training and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.”

Qualifying shops will receive a handsome plaque, a place on the shoplocator tool on the recently-launched American Honda consumer web site, free access to the Honda and Acura parts catalog, parts bulletins, service and repair information, and more.

Shops will benefit through increased recognition of the shop’s professionalism, increased opportunity to reach more customers and the promotion of customer confidence and loyalty.

To see full program details, go to profirst.honda.com or profirst.acura .com.

Each shop must enroll as a separate entity at its place of business as the ProFirst web site will manage the shop’s access to the parts catalogs and service information.

Jim Roach, Senior Vice President for American Honda’s Parts & Service Division noted, “We are pleased to be working with OEConnection and I-CAR for the ProFirst program. As the industry changes and automotive technology changes, we must make changes in our programs to keep pace. ProFirst, and our association with both OEConnection and ICAR, is a step in the right direction.

ProFirst is a win / win for all involved, especially for Honda and Acura owners.”

For more information on the I-CAR Gold Class Professionals® program, visit the I-CAR website (www.i-car.com) and click on “Collision Repair Gold Class Professionals® “ under the “Training and Recognition” tab.

WIZARDS Introduces NanoTechnology Spray Wax

WIZARDS® Products is proud to announce the addition of MYSTIC SPRAY WAX™ (Part #01235) to their ever growing line of superior professional detailing and finishing products. The company that brought top-selling MIST-N-SHINE™ to the marketplace has combined recentlydeveloped nano-technology with their proprietary synthetic formula to raise the bar and take detailing products far beyond outdated carnauba waxes.

Developed to be more compatible with today’s advanced clearcoats, MYSTIC SPRAY WAX™ performs excellent on all paint types providing an instant bond with incredible gloss and depth after application and sustained water beading and slickness wash after wash. This easy application spray eliminates hazing and white filmy residues. In addition to giving a showroom shine, MYSTIC SPRAY WAX™ can be used on any hard surfaces including glass, chrome, polycarbonate, fiberglass, gel-coat, plastics and rubber trim to safely removes dust, bugs, bird droppings, road grime, oily fingerprints and light water spotting.

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28 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 23

CCRE Seminar

the assignment; it must be clear and unequivocal, and it must be noticed to the obligor. While there are no formal requirements for an assignment, the language used must indicate the owner’s intention to transfer the claim.

Valuable consideration is essential to support an assignment, and though the word “consideration” does not necessarily have to appear on the assignment, Parese recommends it. An assignment requires an exchange, such as allowing a customer to take their vehicle without the shop receiving payment if they sign the assignment. An Assignment for Money Due should identify the customer, facility, vehicle and loss. The document does not need to be notarized and should be enforceable without defects. Parese also advises shops to have all customers sign a repair contract. Parese ended his presentation by using clips from “Hot Coffee” and several insurance commercials to reiterate his message about public relations from the March seminar.

Tony Lombardozzi, President of

CCRE, followed with a brief talk on the need to change the mindset of collision repairers and to send a message of whose business the insurer is visiting. In the collision industry, “we operate every day on fear”, Lombardozzi claimed, continuing to elaborate that shops fear losing business and being subjected to steering.

On Saturday, John Parese began the seminar with a presentation entitled Ten Steps to Consider When Filing a Lawsuit. The first step is to provide proper documentation, including a signed repair contract and the final invoice. Noting that “the insurance company doesn’t like being sued,” Parese reminded attendees that the insurer’s estimate is just a guess on the likely damages and is not reliable. The second step is to verify that all work was completed and billed correctly. Because lawsuits result in hyper scrutiny on both ends, it is imperative that the repairer did everything they claim they did during the vehicle’s repair.

Step 3 requires the use of a proper Assignment of Claim which will allow the shop to stand in the customer’s shoes to acquire payment. The fourth step involves choosing a reasonable customer, and it is important to lay the

proper foundation of information as surprises in the courtroom are a bad idea. The case a shop chooses to fight in court should involve a cooperative and informed consumer.

Step 5 is to establish liability with the information to prove the basis of the claim. Parese notes that “you have to establish negligence in order to prove liability”, but on short pay cases, it can be argued that the insurance company accepted liability by paying on the damages, even if they did not pay in full.

Step 6 requires securing all necessary documents, including the police report, proof of liability and all information about the parties involved. Providing all of this will make the process as easy as possible on the lawyer.

While shops may not win every single case, each small victory affects business since it will dissuade insurance adjusters from harassing the shop. The seventh step involves finding an attorney to take the case, and Parese notes that small cases are often combined into one larger case. Step 8 is to create a labor rate survey by surveying 12–20 local shops to disprove the insurance company’s common claim that a shop has the highest labor rates in the area.

This survey can help justify the claim

that your rates are reasonable, and the goal is for your posted rates to fall somewhere in the middle of the shops included in the survey; however, it is important not to share this information to avoid accusations of conspiring with others to increase labor rates.

Step 9 is to provide several examples of being paid your labor rate, proving your posted rate is reasonable and fair. This is critical as the insurer should be paying the same rate as a customer off the street. The tenth step is to stamp all documents with “accepted under protest as partial payment only for property damage.” Repairers should appear at court dressed professionally and with a business-like approach in order to show the judge that they are taking the case seriously, and this will help overturn preconceived misconceptions and stereotypes about the industry as well as to show that the repairer is not trying to take advantage of anyone but is trying to stop getting taken advantage of.

Parese ended his presentation by discussing tortuous interference with the repair contract and how to prove the insurance company intentionally sought to interfere with the contract See CCRE Seminar, Page 43

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 29

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Honda Recalls 820,000 Civics, Pilots Over Headlight Problem

Honda recently expanded its March recall of vehicles with a low-beam headlight wiring issue to include 820,000 Civics and Pilots in North America, its second big expansion of a recall in recent days. “[A] potential failure with the wiring of the headlight switch ... may cause the low-beam headlights to become inoperative” in the model-year 2002-2003 Civic sedans and 2004-2005 Pilot sports utility vehicles that have been added to the recall, the carmaker said in a statement. Meanwhile, some 550,000 model-year 20022004 CR-Vs and 2003 Pilots were the vehicles named in the initial recall in March.

Honda said the low-beam problem could “increase the risk of a crash,” but stated that “no crashes or injuries have been reported related to this issue.” The company advised owners of the models in question to take their cars to authorized Honda dealers for inspection and replacement of components in the headlight wiring system if necessary.

Honda also recently expanded a May recall related to a leaky power steering hose to include 572,000 model-year 2003-2007 Accord V6 cars in the U.S., in addition to the 2007-2008 Acura TL models in the original recall.

High temperatures under the hood on those models can cause the power steering hose to crack and leak fluid that could cause smoke or even a fire. Honda said one engine fire had been reported but no reported accidents or injuries had occurred as a result of the problem.

The carmaker said owners of vehicles being recalled for the power steering hose issue wouldn't be able to have their cars fixed until early 2013 due to a shortage of parts.

The company said it began mailing customers about the lowbeam recall in late September.

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GM Recalls 41,000 Chevy, Pontiac and Saturns Over Fuel Leak

General Motors Co. is recalling about 41,000 Chevrolet, Pontiac and Saturn cars in the United States because of concerns that a defective plastic part might cause a fuel leak, according to the National Highway Traffic Safety Administration. GM’s latest move follows the company’s recall of 473,841 Chevrolet, Pontiac and Saturns in September to fix a condition that could lead the cars to move when the drivers think they are in park. Potentially, 40,859 vehicles sold in Arkansas, Arizona, California, Florida, Nevada, Oklahoma, or Texas could be affected in the latest recall.

Chrysler Halts Tests Plug-ins After Batteries Overheat

Chrysler Group LLC temporarily suspended testing of its fleet of advanced plug-in hybrid electric vehicles after three of the pickups were damaged when their prototype lithium-ion batteries overheated.

The trucks were unoccupied when the incidents occurred, and no one was injured. But the automaker will replace the batteries in the test vehicles with units that use a different chemistry.

“Hiccups happen. We’re disappointed, but it by no means spells the end of the program,” said Chrysler spokesman Eric Mayne.

The pickups are part of a fleet of 109 trucks being evaluated by the Auburn Hills automaker and a group of utility companies and municipalities across 20 states. It is part of a program jointly funded by Chrysler and the U.S. Department of Energy.

They include the first-ever factoryproduced vehicles capable of reverse power flow. The experimental system would allow fleet operators to use their plug-in hybrids to supply electricity for a building during a power outage, reduce power usage when electric rates are high or even sell electricity back to their utility company.

“You can link them all together and establish your own mini grid,” Mayne said.

30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chevy Dealer Sells Car for Wrong Price, Buyer Arrested

A Virginia man spent four hours in jail after purchasing a Chevrolet Traverse from Priority Chevrolet in Chesapeake, VA. The dealer’s sales staff accidentally sold the SUV to Danny Sawyer for $5,600 less than they should have, and when Sawyer refused to sign a new, more expensive contract for the correct amount, the dealership called the local police alleging the buyer had stolen the vehicle. Law enforcement then picked Sawyer up and held him for four hours before getting the situation straight.

Dennis Ellmer, president of Priority Chevrolet, says he owes Sawyer an apology on behalf of the dealership, and had intended to do right by the buyer by letting him have the vehicle at the agreed-upon price. But Sawyer’s lawyer says it’s a little too late for saying sorry. The briefly-incarcerated owner has filed two lawsuits against the dealer, accusing the business of malicious prosecution, slander, defamation and abuse of process. All told, the suits seek a total of $2.2 million in damages, plus attorney fees. That $5,600 seems awfully cheap now.

GM Recalls Saturns

General Motors is recalling certain model year 2007-2010 Saturn Aura and model year 2008-2010 Chevrolet Malibu and Pontiac G6 vehicles, equipped with a 4-speed automatic transmission. On these vehicles, the tabs on the transmission shift cable end may fracture and separate.

If the tabs were to fracture and separate, the shift lever and the actual position of the transmission gear may not match. The driver would be able to move the shifter to PARK and remove the ignition key, but the transmission gear may not be in PARK. The vehicle may not be able to be restarted and the vehicle could roll away after the driver has exited the vehicle, resulting in a possible crash without prior warning. GM will notify owners, and dealers will install a retainer over the cable end or replace the shift cable as necessary. This service will be performed free of charge.

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November 2012 GM Recalling Some Sonics

General Motors is recalling certain model year 2013 Chevrolet Sonic vehicles manufactured from May 29, 2012, through August 29, 2012.

When a turn signal lamp fails to operate, the Body Control Module in these vehicles does not detect this condition and will not indicate the condition to the driver. These vehicles fail to conform to Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices, and Associated Equipment.”

If the driver is not aware that the turn signal is not functioning and does not have the light repaired, other drivers may not be alerted that the vehicle is turning, increasing the risk of a crash. GM will notify owners, and dealers will reprogram the BCM and the vehicle’s key fobs, free of charge.

The safety recall began on October 3, 2012.

Dodge Charger As All-Wheel Drive Enters Police Market

Chrysler Group is upping the ante in the battle for the police cruiser market, offering a new all-wheel-drive version of its Dodge Charger Pursuit sedan equipped with a powerful 5.7-liter HEMI V-8.

“Adding available all-wheel-drive capability to the already popular Dodge Charger Pursuit will broaden the Charger’s appeal to police departments that are accustomed to dealing with rough winters and adverse weather conditions,” said Peter Grady, vice president in charge of fleet operations for the Auburn Hills automaker.

“With the Charger Pursuit now offering dual capability of both rear- and all-wheel-drive, we’ll be able to meet the needs of our police fleet customers across the country.”

The all-wheel-drive version will be equipped with the same engine as the HEMI-powered rear-wheel-drive model that achieved the fastest-ever lap time at the 2012 Michigan State Police’s Vehicle Evaluation Test at Grattan Raceway in Michigan. The engine delivers 370 horsepower and 390 lb.-ft. of torque.

Chrysler Sales Up for Small and Mid-Sized Cars

Strong sales of small and mid-sized cars propelled Chrysler Group to its best September since 2007 and its 30th consecutive month of yearover-year sales gains.

The automaker sold 142,041 units last month, up 12% from September 2011.

Car sales rose 27% to 42,050, while sales of light trucks climbed 6% to 99,991.

Through September, Chrysler Group’s sales totaled 1,250,670, up 24%.

All of the automaker’s brands posted gains in September, with Ram recording the smallest gain at 4% and Fiat the largest at 51%. Chrysler said six of its vehicles had record September sales.

“With our current product lineup, record low interest rates and a stable U.S. economy, we remain optimistic about the health of the U.S. new vehicle sales industry and our position in it,” Reid Bigland, Chrysler’s head of U.S. sales, said in a statement.

The Dodge Avenger recorded the largest gain last month, up 89% to 8,716 units. Sales of the Fiat 500 also rose sharply, climbing 51%.

GM Will Hire 3,000 HP Workers to Bring Info Tech Work in-house General Motors said it will hire 3,000 Hewlett-Packard Co. employees as part of its ongoing effort to bring most information-technology work back in-house.

The hiring will be part of a new multi-year software and services agreement between the two companies. GM described the deal as “costneutral,” but it did not provide any additional details on the size or length of the contract or where the workers will be located.

The employees being hired already work on GM’s business at HP and are expected to be on GM’s payroll within six months. An undisclosed number of HP employees currently assigned to GM are not affected, the companies said.

“These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations,” Randy Mott, GM’s chief information officer, said in the statement.

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VW Beetle Convertible to Get Platform Shared with Jetta, Golf The convertible version of the Volkswagen Beetle will get its debut at the Los Angeles auto show in late November, shortly before the car goes on sale in the United States. The launch of the 2013 VW Beetle convertible trails the arrival of the redesigned Beetle coupe by about a year in the U.S., where Volkswagen expects to gain a majority of sales. Both Beetles use VW’s PQ35 front-drive platform that is shared with the current Jetta and Golf. VW says the Beetle convertible’s folding cloth top can be raised or lowered in about 10 seconds. Safety equipment includes rollover bars concealed behind the back bench seat. If the car’s safety system senses a crash, the rollover bars are deployed.

U.S. Sales Up, GM & Ford Down

U.S. auto sales, led by Toyota, Kia, American Honda and Volkswagen, rose 13% last month as the annualized pace of sales accelerated to 14.9 million—the highest rate since March 2008. The overall results topped analysts’ expectations and signaled the auto industry is poised to continue overcoming mixed economic reports to finish the year on a strong note.

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Maserati Recall: Brake Lights

Maserati is recalling almost 1,800 of its 2008-10 GranTurismo coupes and convertibles for what it calls a “deviation” in the manufacture of taillight assemblies. The assemblies’ bulbs, including those in the brake lights, may fail, the automaker informed the National Highway Traffic Safety Administration.

Maserati said it investigated after noticing a large number of warranty claims. The high-centered brake light, it noted, was not affected.

Toyota to Add 21 New Hybrids in Next Three Years

Toyota Motor Corp. is boosting its green vehicle lineup, with 21 new hybrids in the next three years, a new electric car later this year and a fuel cell vehicle by 2015. Japan’s top automaker outlined its green vehicle plans amid growing concerns about global warming and surging gas prices. Toyota will offer an electric compact called eQ, based on its iQ model, in Japan and the U.S. in December though the number of the vehicles made will be extremely limited —about 100. The fuel cell vehicle, which runs on hydrogen, will be offered from 2015.

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George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are The Georgia Collision Industry Association met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birmingham, AL, one of the test markets.

“Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batchelor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A session at the end. Many of the attendees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.”

Avery also talked about some of the enhancements State Farm has created since the pilot began. “The estimating systems have created an interface that will update the prices on the estimate. They have also cut the

time to respond from two hours down to 30 minutes.

Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs before they implement the program in other areas. Some of the attendees also mentioned they are willing to try the program but asked ‘If this program does not work for me, am I able to quit using it?’ and George replied that ‘This is a business decision that each shop should review and evaluate on its own merits,’” Batchelor reported.

are often overlooked resulting in diminished compensation and profits for the repair facility.

Plier said the first number listed in Avery’s PowerPoint presentation was “$3 billion” which Avery stated was the amount State Farm ‘gives’ to the repair industry for parts in a year.

Later, during the Q&A, a member of the audience spoke up and said he took offense to Avery’s statement of “giving” as the $3 billion actually refers to the amount of parts purchased, not given.

Steve Plier, President of Consumer Auto Repair Excellence, Inc. (CARE), a consulting company based in Birmingham, AL, was also in attendance taking notes. (See interview with Plier this issue.) CARE is a company focused on the auto repair industry with its primary focus assisting repair facilities with basic fundamentals and basic business principals that

Avery’s slide presentation indicated that State Farm holds 41 million automobile policies and the insurer handles an average of 32,000 claims each day. State Farm had 20,000 Service First repairers at the peak of the old Service First program compared with approximately 10,300 Select Service providers in the Select Service program today.

“Mr. Avery eventually admitted that shops’ margins were ‘not guaranteed’ to remain what they currently are”

Avery noted that 63% of all claims are handled through Select Service, with the lowest percentage of 17% of claims being handled through Select Service in Long Island, NY. “Mr. Avery spoke of meeting with different large providers discussing where the majority of delays occurred and noted the response centered on parts delays and that by assisting the industry and improving cycle time to reduce the time of repairs by one day would reduce State Farm’s rental expense by $43 million for each day of cycle time reduced,” Plier reported.

State Farm originally piloted a parts procurement program back in 2008/2009 but it was discontinued when Chrysler filed for bankruptcy and GM accepted government bailout funds. However, during that pilot they discovered by their numbers a parts return percentage between 14–17%, and based on this fact, the decision was made to search for additional options after shutting down the pilot.

Shortly after the program was discontinued, State Farm filed a request for proposal and PartsTrader was selected from this process.

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“Per Mr. Avery, State Farm wants to assist the industry (use of PartsTrader and a parts locating/procurement program) by reducing totals because of parts competitiveness reducing repair cost. He says this would be an assistance to all (the consumer, the OE manufacturer, the insurance company, and the repair facilities),” reported Plier.

During his presentation, Avery stated only suppliers nominated by Select Service repairers are and will be on the PartsTrader list. Avery also said that PartsTrader is continuing to make improvements in the electronic process and two of the test market areas now are operating on a 30-minute bid window.

Avery also noted that the number of repairers in the Chicago metro area, the fifth and final test market who are expected to test the PartsTrader program in December, will outnumber the total number of repairers currently on the pilot in the other four test markets combined.

Plier reported that during the Q&A, the first question asked came from a frustrated individual about a slide from Avery’s presentation showing a PartsTrader screen shot that indicated parts, days of delivery and the

shop cost, but not the price that would be listed on the estimate. After several other attempts by members of the audience to get clear answers on list price, “Mr. Avery eventually admitted that the shops’ margins were not guaranteed to remain what they currently are,” Plier reported.

Another sticking point in the meeting centered around whether or not repairers in test markets were giving positive feedback.

“Mr. Avery stated State Farm had received positive feedback from the evaluation from the four current test areas, but he gave no specific examples of positives,” Plier said. The evaluations indicated there must be a better training process and that is being addressed by PartsTrader. “Mr. Avery noted State Farm and PartsTrader are hand-in-hand in this process and PartsTrader must prove and provide a value to the industry.”

As Avery was saying the evaluations had returned positive information, Dave McBroom, director of the Florida Automotive Collision Association, spoke up to disagree. [Editor’s Note: Dave McBroom, passed away on Oct. 11. Read his obituary on page 21.]

Don Carlton HYUNDAI OF TULSA

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800-627-0705

Member of the Tulsa Parts Connection

“Mr. McBroom told the participants he had flown in from Tucson that afternoon so he could be a part of the meeting. Mr. McBroom noted to the group he had been in Tucson for a week and had spent time in repair facilities on the program and had completed the steps to sending out the bids, and then went to the parts suppliers to see how the program worked on both sides,” Plier said.

“Mr. McBroom then began naming different repairers and suppliers who had removed themselves from the PartsTrader program. At this point, Mr. Avery spoke up and stated he did not feel this was fair. The audience became vocal enough that Mr. Avery allowed Mr. McBroom to continue for a few additional statements.”

In general, members of the audience felt that much of the information provided by Avery was very much the same information that has been published since the pilot program was started, and that the only new information he provided was related to why State Farm was attempting another parts procurement program.

“At no time did or could Mr. Avery provide how this program would benefit a repairer and/or a supplier,”

Don Carlton ACURA OF TULSA

918-627-6457 Fax

Plier said. He also reported that several of the audience questions were repetitive in nature because Avery avoided giving specific answers. The meeting ended late at 9:45 p.m. Before closing, Batchelor invited shop owners from Alabama to return for another meeting later this year to allow GCIA members to hear their side of the story now that they had heard from State Farm.

Special thanks from Autobody News to Steve Plier for providing notes on the meeting.

Sherwin-Williams A-Plus Network Hosted Digital Marketing

Sherwin-Williams Automotive Finishes’ A-Plus Network University hosted its new Digital Marketing for Collision Repair facilities program on Oct. 17 in Austin, Texas, and Oct. 18 in Houston, Texas. The program was given in conjunction with Summit Software and Marketing’s Frank Terlep, CEO and Lead Sherpa of Summit Software and Marketing Solutions.

The program reviewed the challenges body shop decision-makers face in today’s rapidly changing digital and information age. The workshop is for all collision shop owners and managers, and those involved with marketing shop services to customers.

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Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Clean Up Your Own House Before You Gripe About Someone Else’s with The Insurance Insider

“I wish I had a nickel for every time that happened.”

Yes, that’s an overly-used expression, but it applies to so many things. How rich would you be, for example, if you could charge a nickel toll for every worthless adjuster that walked through your door? I’m guessing that you are now imagining yourself as Bill Gates or Warren Buffett.

Well, if you’ve read any of my previous columns, you know that I am now going to give you the other side of that tollway coin. Yes, the one you just collected from one of my knowledgeable adjusters.

I personally believe adjusters are an underappreciated segment in this industry, especially as it relates to the perception of the body shop. More often than not, the lowly adjuster is viewed solely as a gate-keeper, standing between you and the pot of gold that insurance companies report making each year.

Truthfully speaking, we realize our house isn’t always in order in terms of adjusters, which is the rea-

son we spend so much time, money and effort to train, develop and retain staff. Although you may view our efforts as pathetic or perhaps only “window dressing,” we view your in-

dustry’s corresponding efforts as non-existent.

Think about it: While we may not always do an exceptional job, the person most impacted by our lack of experienced adjusters is our own company.

The cost of an inaccurate insurance estimate theoretically doesn’t cost your business money, provided you don’t assume the insurance estimate is 100 percent accurate. Most shops will use the insurance estimate as a baseline and make adjustments. Other more independent thinking shops will refuse to use it at all and write their own instead. So the biggest cost to a shop from an inexperienced insurance ad-

juster is probably the price of perception: If the adjuster doesn’t prepare a thorough estimate and there is a large supplement, the consumer may question the shop’s integrity.

I don’t want to undermine the price you have to pay for our inexperienced adjusters, but the price we pay for YOUR inexperienced “adjusters” can’t be measured. There’s a financial cost as well as the tremendous negative impact it has to CSI results.

We realize our house isn’t in order, but have you seen the mess in yours?

Adjusters may seem like easy targets as shops lash out against insurers. I guess to some extent it’s understandable. I would be frustrated too if I was continually arguing why I needed time to do a specific labor operation. But before you throw a stone at the window of our house, take a look inside yours. I can see inside and you are in dire need of Martha Stewart, Better Homes and Gardens and a Bob Villa make-over.

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The topic of inexperience or poorly-trained shop “adjusters” is one I’ve never seen discussed in any trade magazine or at any industry even. I’m not sure why. Maybe because writing a proper estimate, speaking professionally to a customer, and handling a claim from start-to-finish is considered Body Shop Estimating 101. To put it in school terms, it’s a prerequisite to do the job. If you classify yourself as a shop estimator, you can do all of those things. right?

Wrong. Similar to our adjusters, shop “adjusters” come in all shapes and sizes. Finding someone that has that trifecta of shop estimating skills is as rare as a Buffalo Nickel. If you have one, consider yourself lucky. I know how difficult it is. That’s why we insurers invest so heavily in training. (Please hold your laughter. Yes, we do invest a lot.)

I apologize for being cynical, but I wonder why shops spend so little time training their adjusters. Is it advantageous to have an inexperienced person writing estimates? Assuming that there is no financial gain, the lack of attention to the details of customer service is reprehensible in a day and age where customer service is a huge priority in any business. Your inexpe-

rienced adjusters hurt our business and the performance of your shop.

I can assure you that a shop with outstanding KPIs (key performance indicators) is usually the direct result of a high-quality shop “adjuster.” Poor performing shops are usually rife with inexperienced adjusters, high turnover and a lack of employee ownership of the customer experience and operational results.

Insurers are inherently process oriented. We can’t understand why shops have no problem seeing our dirty laundry but can’t see the clothes on the floor of their house that they just tripped over.

Please train your people and audit your staff like we do. If you do, all three of us win.

Got a comment or question you’d like to see the Insider address in a future column? Email him at Auto.Insurance.Insider@gmail.com.

Follow us on Twitter:

@autobodynews Accept no Substitutes!

Pink Car Tribute to Breast Cancer Survivors Willie Robinson of North Carolina wanted to find a way to support his mother after her diagnosis of breast cancer, and he hit upon an unusual idea: painting a Crown Victoria pink to honor her and other breast cancer patients and survivors.

“I will do this for my mother, and for all women with breast cancer,” said Robinson, 25. “They will know that someone is thinking about them.”

This Crown Victoria is about to be decorated

by David Moore’s Southside Rides Auto Body shop for cancer survivor Pamela Robinson. The shop is donating the work

Robinson approached his friend, Dave Moore, who runs an auto body shop, Southside Rides. Moore also runs a non-profit related to his business, dedicated to teaching at-risk teens about auto body custom painting.

“I told (Willie), put away your money; I will do this,” Moore said.

“We want to make this a survival car.”

Larkins Paint in High Point donated the paint, and Lewisville Motor Co. donated some car parts to fix up the car, which had been wrecked.

The car was spray-painted pink, then detailed with drawings of pink ribbons, hearts and angels.

The car was featured in a fundraising march in honor of women who have had breast cancer. At the end of the march, breast cancer survivors were encouraged to write their names and a message of inspiration on the car.

The money raised by the walkers will go to Susan G. Komen For the Cure, a national organization dedicated to raising funds for breast cancer research and treatment, and some will go directly to Pamela Robinson, Willie’s mother, to help pay her medical bills.

Pamela Robinson, 44, who was diagnosed in June, said she is overwhelmed at what her son has done.

“I think he is doing this so I won’t quit, so I won’t give up,” Pamela Robinson said. “He knows as long as I will see this pink car every day, I’ll get through it.”

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Paint Management

E-Coated Parts Procedure with Stefan Gesterkamp

For some months now, people keep e-coat contains no UV protection asking me why I haven’t recently conpackage. E-coat is generally epoxy based and unless completely shielded tributed to Autobody News. The answer is simple, I didn’t feel I had from UV rays, its surface can become anything interesting or of value to unstable. Resulting in paint layer sepwith Gonzo Weaver write about. This changed a few weeks aration and peeling. Some of the ago. newbies in our industry may not reAs a paint manufacturer’s rep, member the early 90’, but many of us there is not a month that goes by with- do. How many GM and Chrysler facout being put in the middle of colli- tory paint peelers did you repair in sion repairers and insurers, expected your professional career? These cars to chime in on a dispute about what is and trucks peeled for the same reawith repair.

Richard Arnold necessary for a proper son, UV exposure to the e-coated surOne of my customers called and face. informed me that an insurance agent If you repaired one of these vehideclined to pay for priming or seal- cles, you likely remember that the suring new e-coated parts. The agent face of the vehicle was powdery after told my customer that sealing or you peeled of the paint layer. This priming new parts wasn’t a necessary powdery subtends that easily rubbed with Ed Attanasio step in a proper repair process. Any- off onto your fingers was the top layer body that knows me well will not be of deteriorated e-coat. surprised to learn that I got very exJust put enough paint on it and cited about this statement. How can you should be fine, right? I wish it someone in our industry make such were that easy. The first problem with an irresponsible statement? And then this thought process is: how much is I leaned back and thought about this enough? Are you thinking 4, 5, or 6 with Erica Schroeder for a moment. coats of paint? Eight to 10 coats on During the course of a year, I some reds? The truth is that no one visit hundreds of shops and have wit- knows when full coverage is achieved nessed this exact procedure perduring the paint process. Take a piece formed more often than I cared to of glass and paint it with basecoat and By simply looking around our clear. After it cured completely, hold to admit. this Southwest Edition? industry, an insurance agent that it up to the sun and see if any light Schroeder likely never had with to repairErica a vehicle for penetrates through. a living could easily get the impresAttempting this exercise will sion that sealing or priming new parts quickly demonstrate that this apautobodynews.com is an optional, but not a necessary proach doesn’t work. It takes much step in a repair process. I feel com- more paint than anticipated before fortable about the fact that most, if not 100% coverage is achieved through nessallwith Promote your business with application. Protecting the major paint manufacturers will basecoat with Ed Attanasio agree with me,anpainting directly over featuring integrity of your work through sealing featuring exclusive article e-coat is not a recommended repair or priming instantly emerges as a services. your products or services. process. Furthermore, paint failure as more cost effective solution. And if a result of this practice would not be cost wouldn’t be a factor, the resulting covered by most manufacturer’s warhigh film build of basecoat color ranties. would present a paint problem of its There are several problems with own. or details!

Call for details!

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The next issue with painting di251 800-699-8251 Although OEM e-coat is an excellent rectly over e-coat is stone ship resistcorrosion protection coating (not sure ance. E-coat is a very hard coating. about some of the aftermarket parts), The difference in hardness between e-

Gonzo’s Toolbox Jobber Journal

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

coat and basecoat is too great for a long lasting paint finish. The application of a primer or sealer to the e-coat will bridge this cap. Although there is no way of fully preventing rock chips from happening, a sealed or primed surface will outperform an e-coated surface after impact by a large margin.

The last point I like to make is the surface prep. E-coat is a hard surface and sanding it can be a workout.

Ninety percent of shops will use a DA sander to prep the e-coated surface. If you don’t seal or prime the part, how do you know if you left enough e-coat behind for proper corrosion protection? Most e-coat layers are only 0.5 to 1 mil to start with. My observations suggest that 70% of all sanded e-coat surfaces display some level of transparency or bare metal surfaces. Unfortunately, I have seen people paint right over that too.

When asked why, the most fre-

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quent explanation I receive from shops that paint directly over e-coat is cycle time. Shops don’t feel that they can afford to give up the time to seal parts in the booth. While I appreciate the value of cycle time and booth hours, it is no excuse for painting directly over e-coat. Nobody says you have to do it as a part of your final paint work, in a matter of fact, I strongly advice against it. I propose sealing parts ahead of time, ideally as part of the cut-in process. Put one good coat of sealer on the outside of the part, let it flash off to a point that you can safely turn them over and cutin the rest. All the shop has to do after hanging the part is giving the sealer a light scuff by hand for adhesion, clean and paint. This process allows the shop to maintain booth KPIs and put out a quality repair at the same time.

As an added bonus, you will also improve coverage and color match as well.

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Social Media for Shops

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

The Original Social Media, and Most Important, is the Phone Call with Ed Attanasio

While thinking through some social media topics recently I realized that the original and still current champion of real social media is the simple phone call.

In the past several years, I’ve called literally hundreds of body shops, vendors and collision-related businesses over the phone to interview them for articles I write for Autobody News. And every time I encounter a strange phone experience when calling a body shop I’m surprised. In any business, the phone is usually the first contact you’re going to be making with the public, and that’s why it’s so important. And in the collision industry it’s even more crucial.

Think about it. Your potential customer gets in an accident. They get three or four names of body shops in their area from their insurer and they start calling them. If they’re left on hold or the person answering the phone is rude or inattentive, many people will simply hang up and call the next shop on their list. So the big question is—do you give good phone or are you currently losing business by falling short in this important area of customer service?

Although e-mail and text messaging have become more popular ways of communication, we still use our telephones almost constantly for both personal and business reasons. It seems that good telephone manners are common sense, but my recent experiences have led me to believe that there are many lessons to be learned by body shops in the arena of telephone etiquette.

The topic of phone protocol and how some body shops don’t seem to value the importance of it became more apparent recently when I was calling a body shop to interview the owner for an upcoming ABN article.

First, the phone rang at least 12 times before someone picked up. Okay, I’m thinking, they’re a busy shop, no problem. It happens.

Then, I heard a voice, but for just a millisecond. “Hold.” It made me feel like I was ordering a pizza for delivery. Without a simple “hello” or “I’m really busy, can I get back to you in just a minute?” I sat on hold for at

least five minutes, and then the call went directly to voicemail (or in this case, I call it “voice jail’) without any explanation. No greeting, just a beep.

So, I hung up and called back so that the painful process could resume all over again. This second time, the woman answering the phone shouted out “Bill’s.” Not “Bill’s Collision,” which is the actual name of the business.

But at least this time around we had a brief conversation. I could hear her chewing gum and her indifference to my inquiry was immediately evident. “Is Bill there?” I asked. “No,” she replied. “Do you know when he’ll be returning?” After a long sigh, she said, “No idea. Do you want his voicemail?” Been there, done that, I thought. “We’re really busy right now,” she added. And without any further warning—boom, I was back on hold.

At that point, I hung up once more and decided to try again later.

But each time I called, I got the same person and each time she seemed even more bored than the time before. I could almost hear her eyes rolling!

The other call I hate is the one where the receptionist grills you and after a series of questions you might be allowed talk to the boss. I can understand, because most body shops receive 10-15 sales calls every day, so screening out the wannabes is crucial and a good phone person is adept at it.

But, when you feel like they’re interrogating you in the process, that’s bad phone protocol. Hey, I’m not trying to reach Obama, it’s a body shop owner—so why are you making me feel like I’m the paparazzi chasing your boss down? It’s all about the way things are said and when a receptionist gets too protective of his/her boss, it’s a real turn-off.

So, how should body shop employees act on the phone? I asked an expert on the subject. Her name is Cynthia Grosso, a business consultant, etiquette coach and author of the owner of the Charleston School of Protocol and Etiquette in Charleston, SC. She gave me a very simple list of do’s and don’ts about phone manners: ● Never call someone “Honey,

38 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sweetie, or darling” on the phone, especially if you don’t know them. It’s too personal and unprofessional. ● Be conscious of the tone of your voice, especially when you answer the phone. (If you’re having a bad day, please keep it to yourself.) ● Be sure to identify yourself immediately when the person you are calling answers. Dead air will kill a call every time. ● If you happen to be screening calls, do it gracefully without acting like a bodyguard and offending the person who is calling. ● Do not eat while talking on the phone. That’s why lunch breaks were invented. ● Always return phone calls. Make a point to find the time. It only takes a few seconds to call someone back or to send an email explaining that you will call them back when you are available. Not returning a phone call is the worst offense and inexcusable.

The rule on returning phone calls is within 24 hours and the standard for emails is 48 hours for a return response.

“Phone communication is all about finding a common language,” Rosso explained. “Everyone wants to feel important, and keeping that in mind is key to any successful phone interaction from a customer perspective. Don’t leave people on hold for more than 30 seconds without checking in. And remember this—the telephone is your front other door and an extremely valuable component of how to run your business.”

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Continued from Cover

Greg Coccaro

North State sued Progressive under New York’s deceptive acts and practices statute, General Business Law section 349, for misleading consumers into taking their damaged vehicles away from North State to competing body shops within Progressive’s “network.” North State’s suit alleges that the insurance company coaxed customers away by maligning the shop’s work and pricing.

In North State Autobahn v. Progressive Insurance, the Second Department’s ruling, denying Progressive’s motion for summary judgment and allowing North State’s suit to go forward, confirmed a business’ standing to recover for direct harm caused to it by another business’ deceptive acts and practices—even if that business is a competitor.

Justice Robert Miller, writing for a unanimous panel, held that North State’s allegations concerning Progressive’s acts depriving consumers of their choice of body shop satisfied the statute’s requirement that the deceptive acts at issue have an impact on consumers at large. The

court further held that the law does not require that North State identify specific consumers who were harmed.

The court also rejected Progressive’s argument that North State’s injury was merely derivative of that of the injured consumers, finding that North State adequately alleged direct harm the instant customers were misled into taking their vehicles to a network shop, regardless of whether such customers ultimately suffered pecuniary injury.

The fact that North State was a business competitor and not the consumer in the transaction was held to be irrelevant for purposes of standing under the statute, under which punitive damages and attorneys’ fees are recoverable.

“This is a significant decision that enables businesses to pursue ‘deceptive acts and practices’ claims in businessto-business disputes—even between competitors—that have an impact on consumers at large,” said Dennis Artese, a shareholder at Anderson Kill & Olick who represented North State.

“That’s critically important because it allows well-funded businesses to police deceptive practices where the state attorney general does not, and where individual consumers cannot, because they just do not have the financial

means to fight an insurance goliath like Progressive in the legal system.”

Along with Artese, North State was represented by Finley Harckham of Anderson, Kill & Olick and solo practitioners Anthony J. Mamo, Jr. and Richard P. Stone.

The Progressive Group was represented by Nelson Levine de Luca & Horst, LLC, New York, N.Y. (Michael R. Nelson, Kymberly Kochis, and Francis X. Nolan IV of counsel), for appellants.

Background In 2007, North State Autobahn, Inc. commenced this action against the Progressive defendants and a number of Progressive employees, including the defendant Nicholas Stanton. Asserted in the complaint, was that the Progressive defendants had violated General Business Law §349. Specifically, the complaint alleged that the Progressive defendants deceived claimants who sought to have their vehicles repaired at the plaintiffs’ and other repair shops that did not participate in their DRP by making misrepresentations as to [Coccaro’s shop’s] workmanship, price, timeliness of service, and character. North State also alleged that the Progressive defen-

dants issued damage repair appraisals well below fair-market value at about one-half the estimate of the plaintiffs’ estimate, and that the Progressive defendants represented to claimants that the plaintiffs would make only partial payments for repairs which would necessarily require claimants who had their vehicles repaired by the plaintiffs or other independent shops to incur out-ofpocket expenses.

The plaintiffs further alleged that the Progressive defendants engaged in such deceptive practices in order to mislead customers of the plaintiffs and other independent shops to believe that they must have their vehicles repaired at repair shops that were members of the DRP. The Progressive defendants allegedly failed to inform these claimants that the repair shops that participated in the DRP used inferior aftermarket parts, or were not registered or qualified to work on specific vehicle models. As a result of the Progressive defendants’ actions, the plaintiffs alleged that they sustained direct economic loss in the form of more than $5 million in lost business sales, and that the public at large sustained other damages. For more on the case, search on “Coccaro” at www.autobodynews.com.

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Steve Trapp Presents Implementing Best Practices for SOPs

by Melanie Anderson

Steve Trapp, Program Manager at DuPont Performance Services and DuPont Performance Alliance, presented Strategies for Implementing Best Practices for SOPs in Collision Repair at NACE on Oct. 13. Trapp, who runs a value-added program for DuPont, helped build standard operating procedures for his company.

Trapp opened the session with the question, Where should you focus SOPs? And quickly answered it, “On the area where you are having problems in the business. It could be sales or reducing costs or in another area.” He cautioned against Steve Trapp writing standard operating procedures for the entire business if other areas are working just fine.

In a nutshell, standard operating procedures (SOPs) is a way of saying “this is how we want to do this, every time.”

Trapp says the best way to write SOPs is to use a flipchart and let the whole team get involved, so you have their buy in when it comes time to follow the SOPs. The benefits of SOPs means minimizing waste: such as work not being done right the first time, being over

never had to learn at before. Things are changing all the time. If we don’t change, we will perish.”

The benefits of standard operating procedures include consistency of quality, improved and leveled daily throughput, improved productivity and efficiency, and cost and expense

productive, waiting on people or having vehicles sit idle, not consulting others, not having enough or proper inventory.

Because changes occur daily, your SOPs also may change.

“Can you think of an example of a recent change our largest customers have asked us to embrace with limited preparation?” Trapp asked. “The biggest change affecting the industry is the insurer scorecard.”

The challenge of SOPs, Trapp continued, is that they will change every couple of months. “We are literally learning things at a pace we’ve

control. It also means being able to properly train new hires and crosstrain the entire staff with less re-work needed and better morale. New employees come in expecting to be trained in the shop’s process. If they aren’t trained, they will revert to doing things the way they did at their last place of employment.

“We like order, we prefer it,” Trapp said. “People like a standard.

The key is that staff need to be a part of the process. if they are a victim of it, they feel trapped.”

Trapp suggests that SOPs be used as labels, stickers on the floor or in

“Failure is not fatal, but failure to change might be ...” –John Wooden

posters because many people are visual learners.

Brainstorming meetings should be one to two hours with a flip chart or white board available. And always, keep the meeting positive.

“Attack the process, not the person!”

Trapp said. Ask staff to honestly assess the process for waste and define quality standards in the eyes of a customer.

Trapp suggests the following formula for improving the brainstorming session. Called ‘3-5-1’ the process asks for participants to write down www.autobodynews.com three ideas in five minutes, and then CHECK IT on OUT! as a group, focusing the one idea that comes out on top.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 41

On Creative Marketing

The New Co-Op Marketing with Thomas Franklin

In the early ‘90s, the term “Piggy- rental company, transmission repair back marketing” meant that the trial of shop, personal liability attorney or car a new product on the market was wash. linked to another product that already As valuable as these relationships had wide acceptance in the marketmay be, often a few major shops have place. The intent was that this weaker most of the best relationships in an new product would be “piggy- area locked up so that many other backed” on the strength of the “carshops are out looking for business the rier” product. Soon the practice was hard way. For them, it may be time to Strom expanded so thatwith many Dick products were engage in some creative thinking “piggy-backed” on products already about other possible “piggy-back” or being used. You see this all the time co-operative arrangements. Even when you receive a credit card bill or though the SEMA Show in Las Vegas gasoline credit card bill and find of- is becoming a major gathering place fers inside to buy a wide range of for collision repair professionals, few products. You know this must be a shops have yet to take advantage of successful strategy because it has con- the vast accessory marketplace. Dealtinued on so long. erships, of course, have entire accesThe question is how can a fixed sory showrooms and enjoy a service like collision repair, use substantial profit flow from accessory “piggy-backing” to increase sales and sales. But few shops can afford to inwith Lee guru Amaradio Jr.in a similar showroom, and only business volume?

Marketing Jay vest Abraham, in his great book Getting a few push for add-on accessory sales.

Everything You Can Out of All You’ve An obvious “piggy-back” relationship Got, calls this a “host-beneficiary” re- would be with one or more accessory lationship. Greatly simplified, it’s sort stores in the area. But less obvious are of a co-operative marketing plan other retail establishments that offer whereby two (or more) companies audio-video products or cosmetic elethat are non-competitive but possibly ments that car owners should find atcomplement one another’s products or tractive. Some printers now offer services, can either bring customers wraps for cars. Since vision is imporand sales to one another’s businesses, tant for safe driving, an optometrist or bring some other value. might be interested in a co-op referral Collision repair facilities engage arrangement. with Sheila Loftus in this kind of relationship all the time, A common arrangement is cash but probably don’t think of it in those for referrals—especially with a towterms. DRP relationships are the best ing company or new and used car example. Insurance companies send dealership. But this is mainly a onecustomers to the shop. The value they way street and can be very expensive. receive in return mainly consists of The ideal co-op arrangement is one lower labor and parts and materials where the shop also refers business to costs. Dealership relationships and its co-operative partner. The easiest fleet management company relation- way to do this is through promotional ships operate similarly. Some shops programs. Obviously website links also have a more direct exchange re- and other web-based connections are lationship with a towing firm, pin- easy to arrange, but if a shop also striping and graphics service,Chaney car sends out a newsletter or sends sumwith Janet

Opinions Count

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Your Turn

Shop Showcase

PartsTrader Reduces Minimum Quote Time to 30 mins

PartsTrader announced that in two of the four markets where the system is being used, the minimum time a shop can give vendors to quote prices on parts has been reduced to 30 minutes, rather than the previous one-hour minimum. The change is designed to improve the efficiency of using the system for shops, the company said.

Suppliers can still quote prices in “overtime” but only until the shop begins review of submitted quotes. The system also allows the shop to extend the deadline in 30-minute increments if they wish to receive more quotes, or to use “placeholder quotes” for OEM dealers with which they have established relationships.

Industry Overview with Janet Chaney

42 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

maries of completed work with enclosures there is an opportunity to refer many other kinds of businesses, much as your credit card companies do. If a referring business also has on-line and/or mail promotions, the arrangement would have your shop information (or even literature) included with theirs.

Mailing a summary of completed work after a vehicle has been delivered is a very inexpensive way to establish a longer-term relationship with customers. If a vehicle owner resells or trades-in the vehicle, having a summary of work done on the vehicle may help keep the purchase price higher. Along with sending the summary, a promotional offer for a discounted detail or cosmetic improvement should be included, plus perhaps a specified discount for a friend, family member or business associate in need of vehicle body repair. For a shop with deeper pockets,

sending a before and after photo along with the summary would be appreciated.

A more in-depth approach to the co-op referral partnership can extend to events, educational seminars or workshops and more. Driving schools would be a good candidate for this.

New drivers are brought to the shop for a walk-through to see the damage that may have been done to vehicles because of careless or reckless driving.

And if the driving school has a weekly or monthly group presentation, the shop should always have someone there to answer questions. Many shops now do exchange events with insurance agents and auto dealerships, but this should only be a beginning. The possibilities of piggybacking on the success of other businesses and entering into cooperative promotional schemes will only be limited by the imagination and ingenuity of a shop owner or manager.

Continued from Page 29

CCRE Seminar

between the repairer and the customer.

In order to show that the defendant’s conduct is tortuous, the plaintiff must prove improper motive and willful malice. This sends the message that the insurer is not above the law and that they can and will be sued for refusal to comply with the Code of Ethics and other laws.

Once Parese concluded, Kurt Lundgren, an attorney in the medical insurance industry, presented about the similarities between the automotive and medical insurance industries and their issues. He noted that it is naive for collision repairers to believe they are immune to the insurance companies, but repairers are in the business of fixing vehicles and providing customer service to make money, so they should get to the bill when dealing with insurers. He pointed out that “this is all a game for the insurance company, but this isn’t a game for you guys.”

Lundgren noted that in both the auto and medical insurance industries, proof is required to prosecute, but he urged repairers to recognize and em-

phasize that they are doing this to help the consumer. He also praised attendees for being on the right track about how they deal with insurers, agreeing that shops should not negotiate with insurance companies.

Tony Lombardozzi led a discussion about the audience’s experiences.

He urged attendees not to put anything on paper or online that they are not prepared to defend in court. Though he admits that the industry can be depressing at times, he insists that repairers can have fun with fighting the insurers, as well as making money, because it is exciting to make the insurance companies justify their actions. He believes that shops “need to see that the process works and they can have fun with it.”

Discussing how insurers have their own versions of estimating software that provides a lower estimate than the shop’s version, Tony noted that everything insurers do is based on this estimate, so repairers need to take that tool out of their hands by removing the insurance company’s estimate from the equation. Tony added that the insurers “constantly have their hand in our pocket… and come at us in so many ways that it’s hard to keep up with them.”

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Tony noted that the insurance companies have spent 30 years brainwashing repairers to believe they are the insurer’s servants, but in reality, collision shops only need to allow adjusters to look at the vehicle, complete their paperwork and go home. Erica chimed in, encouraging attendees to “make it painful for [the insurance companies] by doing it your way, the right way... make it clear to them that you’re not going to be the one who changes.” She went on to state that insurance companies have no right to expect collision repairers to stop their process just because the insurer has adopted another bizarre practice. Insurance companies are great at propaganda and brainwashing, but when they try to dictate what a shop can and cannot do, it is necessary to ask why or who says so. Erica stressed, “they can’t make you do anything because you don’t work for them.”

For the final segment, Tony introduced the Stump the Layers panel which consisted of Erica Eversman, John Parese and Kurt Lundgren. Responding to questions from the audience, the three attorneys and the seminar attendees discussed topics such as liens, total loss, consumer fraud, re-

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How to be a ‘Courageous Leader,’ Presented at NACE

by Melanie Anderson

Two strong women presented “Courageous Leadership” at NACE in New Orleans on Oct. 12. Sponsored by WIN, Women’s Industry Network, Denise Caspersen, ASA Collision Division Manager, and Melissa Miller, CARSTAR Sr. Operational Manager, talked with a group of women about what it takes to be brave in the workplace and in their lives.

Having courage is not the same as being fearless. Courage is the ability to do the right thing, despite feelings of fear or discomfort when facing situations of pain, risk, opportunity, uncertainty, hardship or intimidation.

Caspersen and Miller described three different types of courage and discussed the impact fear has on personal and organizational performance, and how by tapping into your own ‘courage history’ you can use your past to strengthen your future.

“We’re not all born with courage, but we’re born with the capacity to be courageous,” Caspersen said.

However, acting with courage is often avoided because of fear, because

Esurance recognizes Three CARSTAR shops with awards

Esurance recently honored three CARSTAR facilities with Auto Body Repair Expert of the Year awards during CARSTAR’s annual conference in San Antonio. CARSTAR said Esurance presents the CARSTAR Auto Body Repair Expert of the Year award to the top performing stores in three U.S. regions. The award is based on several key performance indicators, such as estimate cycle time, compliance with Esurance’s direct repair program, re-inspection variance, I-CAR Gold status and customer service. The award was created to recognize the top shops and technicians in the industry for customer service excellence and continuation of technological education, CARSTAR said. The award-winning facilities include the following: ● Ace Sullins CARSTAR in Miramar, FL, owned by Kyle Wharff. ● Hunter’s CARSTAR in Norwood, PA, owned by Gary Hunter. ● Jungerman CARSTAR in St. Peters, MO, owned by Kerry and Bobbie Woodson.

“I congratulate them for earning the titles, and I thank Esurance for its continued campaign to educate technicians in this industry,” said David Byers, CEO of CARSTAR.

it’s easier, people are afraid of embarrassing themselves or they don’t want a confrontation. But the benefits could result in growth, better communication, advancement, innovation and happier employees.

The cost of fear is high. According to Human Resource Executive Magazine (2008), a third of U.S. employees waste at least 20 hours of work time each month complaining about their bosses. Stress-related illnesses account for 1/3 of worker absenteeism, and 37% of American workers report being bullied on the job. Fearful workers are twice as likely to be depressed and 33% are more likely to report exhaustion and sleep disorders.

Ways that employees display fear in the workplace could include hostility, hiding mistakes, being distracted, and playing it safe versus taking a creative approach.

Ways to combat fear include looking for ways to build your confidence, not obsessing about things that frighten you, gathering facts, seeking mentoring and developing new skills.

“If we can address fear, little by

Martin Senour Kicks Off 4Q Training Program

The Martin Senour Company kicked off its fourth quarter training session in October, offering courses to collision center professionals on technical skills, estimating solutions, new technologies, and updated application techniques required for collision center profitability. The Fall 2012 course lineup, which is held at various Martin Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint.

“We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, Martin Senour Director of Sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification, and lean practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX® waterborne, Tec/Base® and Pro//Base™ refinish systems, painter certification, and color adjustment and blending. Visit martinsenour-autopaint.com or call 1800-526-6704 for schedule.

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

little, every day, it becomes a habit,” said Caspersen.

Caspersen and Miller asked the group of women what they thought courage was and the answers were varied: willing to take a risk, standing up for yourself, standing up for your beliefs, finishing what you started, not giving up, speaking your truth, and being true to yourself.

Caspersen pointed out that we often make mistakes to learn by.

Something her parents told her still rings loud today: “You always have a choice, but you have to live with the outcome.”

When considering taking a risk, consider these factors: passion, purpose, principle, prerogative, and profit. These are the right reasons to take a risk. Can you suffer through the anguishing moments that accompany ‘right risks’ while caring intensely?

Can you harness that passion and stay focused and headed in the right direction? Do you have the right set of values? Do you have the power to choose? And, profit, is only to be considered lastly.

Three different types of courage

were described as: ‘try,’ ‘trust’ and ‘tell.’ Those who ‘try’ step up and make the first attempts to take action.

Those who ‘trust’ follow the lead of others and let go of control. Those who ‘tell’ are those who speak out, assert one’s voice, and tell the truth. And there are always risks. Your actions may harm others. Other people’s actions may harm you. Or, you could be cast out of the group for truth telling.

“The ‘tell’ type of courage can be the most difficult as you may say things the other person doesn’t want to hear,” said Miller. “There is always a difference between being respectful and being offensive. Always make it about the process, not the person.”

Caspersen and Miller also described two leadership styles. The first is called ‘spillers’ — those who rely on fear as a motivator, are negative during times of challenge, or who discourage others who try to grow.

The other leadership style is ‘fillers’ — those who build other people’s confidence, provide support during challenges, and encourage others to grow.

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DEG & the Keys to Successful Estimating Presented in New Orleans Collision damage experts Larry Montanez and Arthur Harris presented “The Keys to Successful Estimating!” during NACE in New Orleans, LA, on Oct. 12.

The focus of their presentation centered on DEG, Database Enhancement Gateway, a free service funded by the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers. The DEG is an advocate for accurate collision data and acts as a gobetween for shops and information providers—CCC, Mitchell and Audatex.

The DEG was developed to improve the quality and accuracy of collision repair estimates by those who use collision repair estimating databases to provide feedback to information providers.

“The DEG was created because there was a disconnect with information providers and DEG was created to bridge that gap,” said Harris,

DEG Administrator.

The DEG public database has been around for five years, said Harris, who has been with the company for

Larry Montanez (l) and Arthur Harris (r) talked about the DEG at NACE on Oct. 12

two years. He describes his job as “facilitating the gap between information providers and the estimate user.”

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BASF Showcases Newest Additions to VisionPlus Online Tools at NACE During the 2012 International Autobody Congress and Exposition at the Morial Convention Center in New Orleans, LA, Oct. 10-13, BASF Automotive Refinish Solutions showcased their latest software tools to improve collision center productivity.

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an inquiry and the response from the information provider in question. Users can also read all other inquiries made by other repairers and see how the issue was resolved.

Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification.

In addition, Harris advised those in attendance at the NACE presentation not to print out the P-Pages, or estimating guides as he called them, because they could be outdated. Montanez says he downloads the P-Pages once a month to replace the older version from the previous month.

“The P-Pages aren’t guides. The estimates aren’t suggested. It is the manual,” said Montanez. “The P-Pages are not open to interpretation.”

For more information on the DEG, go to www.degweb.org.

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ask for assistance with a particular problem and DEG will work with the information provider to reach a resolution. Often, this can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing a task in regards to a question or problem that arises, said Montanez, a collision damage analyst with P&L Consultants.

To submit an inquiry, log on to www.degweb.org and fill out an online worksheet.

“The DEG is free and people should send in their inquiries. It helps everyone get questions answered,” said Montanez.

The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, Harris said. He adds that the DEG provides timely responses on both the status on

body shops the ability to measure themselves against industry standards by tracking their costs, sales, and performance. Used as a sales marketing tool, the Business Analyzer Tool breaks down the numbers of a shop’s costs, sales and profit based on several key indicators, such as paint and material costs, said Vitor Margaro-

nis, Marketing Director of BASF Coatings Solutions.

“We use the tool to help customers grow their businesses in the areas of improvement they want to focus on,” said Margaronis. “From a business standpoint, we go above and beyond a paint company. It’s not just about paint. It's about profits, growth, cost control, and overall better management of their business.”

The Business Analyzer Tool is available as a mobile app.

According to BASF, VisionPLUS Online allows collision repair centers to track, analyze and improve their business in real time so repair facilities can discover and act on improvement immediately, without having to wait for the usual end-of-month reports.

BASF produces coatings for the automotive, commercial fleet and collision repair markets.

Some of the refinish solutions from BASF are Limco, R-M and Glasurit paint products. The offering is supported by advanced color information systems, technical training programs and business management seminars.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 45

NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE Brenda Kenna was overjoyed to receive a Toyota Camry that was reThe National Auto Body Council furbished by Car Craft Collision Cengifted six vehicles to needy families ter and donated by Esurance. through its Recycled Rides program at Carolyn Gagliano, a retired NACE on Oct. 11. teacher, is thankful for her new Four local shops in the New OrChevrolet Impala refurbished by leans area donated their time to refurFradella’s Collision Center and dobish the vehicles: nated by State Farm.

• Car Craft Collision Centers (2 cars) David Marlowe is retired and has • Champ’s Collision Centers (2 cars) major health issues. He will benefit • Collision Xperts from the Ford Explorer that was re• Fradella’s Collision Center furbished by Champ’s Collision CenSeven years ago, in the wake of ter and donated by Allstate.

Hurricane Katrina, these shops re“This car is giving me my life ceived assistance from NABC with back,” said Marlowe. “You lose your basic necessities, such as household last vestige of independence when you goods, clothing and technician tools. lose your transportation.”

Now, these shops paid it forward to For Calvin Schenck, owner of others in need.

Car Craft Collision Centers, participating in the Recycled Rides Program means paying it forward.

“This journey started seven years ago as a result of the largest national disaster that the United States had ever experienced. That disaster was named Hurricane Katrina,” Schenck said. “No one could have expected the amount of physical, Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and the collision centers, insurers financial and emotional and other businesses that donated their time, labor, services and damage that one event products could cause. Thousands Recycled Rides is a national ini- of people were left jobless, homeless tiative through which National Auto and directionless. We were part of that Body Council members refurbish do- group. nated vehicles and gift them to fami“As we struggled to get our lives lies in need. In addition to body shops and businesses back together, we were donating their labor, insurers, paint contacted by people in our industry, suppliers, parts vendors and rental car who told us that they were ready to companies contribute as well. roll up their sleeves and help, and that At the NACE event, five insurance they did. We were given hope that companies donated vehicles for refurthere were people out there who cared. bishing: Allstate, Esurance, GEICO, Help arrived in the form of tool reProgressive and State Farm. Enterprise placements and emotional support,” Rent-A-Car donated a vehicle as well.

Schenck said.

The Maltese family received a “Before we knew it, we were Ford Escape refurbished by Car Craft beginning to heal. Had it not been Collision Center and donated by En- for the help of these people, we terprise. don’t know if we could have made The Jiles family lost their vehi- it. Because of this, we have decided cles in Hurricane Isaac and received a to pay it forward. The cars given Honda CRV, refurbished by Champ’s away are part of a project that has Collision Center and donated by required us to complete all necesGEICO. sary repairs to these vehicles, some The Easley family received a of which we have equipped with Dodge pickup truck, refurbished by new tires and paint jobs. We would Collision Xperts and donated by Pro- also like to thank Mike n’ Jerry’s gressive.

Paint and Supply, Lamarque Ford

by Melanie Anderson

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

and Gulf States Glass for the supplies they donated.”

Car Craft Collision Centers donated body and paint work to a 2007 Toyota Camry. “We put four new tires on this vehicle and an alignment, as well as completing an oil change and a complete analysis of the proper function of the vehicle and servicing the A/C system,” said Schenck.

Champ’s Collision Centers, owned

by Tim and Danny Kingston, worked on two cars, a 2002 Ford Explorer and a 2004 Honda CRV. The cars were donated by Allstate and GEICO. “Both cars have under 100,000 miles and should provide safe and reliable transportation for years,” said Tim Kingston. “Champ’s is proud to have had the opportunity to contribute to such a great cause benefitting our community.”

Fradella’s Collision Centers refurbished a 2007 Impala donated by State Farm. According to Fradella’s Vice President Al Waller, the shop repaired small dents and scratches, replaced the front bearing, brought its maintenance up to date and detailed the vehicle inside and out.

“The goal is to help people help themselves,” said Chuck Sulkala, the executive director of the NABC. “And all of the industry segments commit to playing a part in seeing that happens.

Most that participate find it a lifechanging experience.”

The Recycled Rides program was born in 2007. Since then, 150 cars are given away every year throughout the country, said Liz Stein, VP of Industry Relations, Assured Performance Network and VP of NABC. “Imagine the impact this would be in your community if more people did this.”

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