Southwest November 2015 Issue

Southwestern Edition

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Supreme Court Declines to Hear Antitrust Claims of Predatory Pricing in GM Parts Conquest Program

by Autobody News Staff

It is a common refrain in legal opinions on antitrust law that the laws were designed for “the protection of competition, not competitors.” This distinction was recently upheld in the case of Felder’s Collision Parts, Inc—a Louisiana dealer of aftermarket auto body parts that are compatible with GM vehicles—in its suit against All Star Automotive Group and it’s Advertising Subsidiary—a dealer of GM-manufactured parts.

Felder’s filed an antitrust suit against All Star and GM alleging that

GM’s “Bump the Competition” program was an unlawful predatory pricing scheme. The program lowers the consumer price for GM-manufactured parts below the prices of equivalent aftermarket auto parts manufactured by others. It does so by providing rebates to dealers like All Star that sell GM-manufactured parts at the reduced prices.

The rebates ensure that the dealers still make a profit on these sales despite the lower price charged to shops and consumers, however the case hinged on the amount of the rebate and whether it was sufficient to reduce the cost of GM’s See Antitrust Claims, Page 12

Body Shops Await News About MDL After Florida Case Dismissed, Plaintiff Law Firm Comments

See Case Dismissed, Page 14

P.O. BOX 1516, CARLSBAD, CA 92018

After the lead case in the Multi-District Litigation was dismissed by a Florida judge on September 24, body shops across the country are watching closely to see what happens next.

Autobody News spoke to John Eaves, the lead attorney for the consolidated lawsuit, A&E et al v. 21st Century, to find out how this will affect the other cases. “Our best guess is that he (Judge Gregory Presnell) will try to do that in the other states as well,” he said.

In what Eaves referred to as a “delay of games,” he said from an organizational standpoint Judge Presnell

is probably going to send the remaining cases to the appellate court and let them sort out what the law actually is.

However, he said it’s possible that the judge may “cherry pick” and make a different decision in each of the different states involved.

Eaves said that he was surprised and disappointed with the news but Eaves Law Firm plans to file an appeal and shops should not lose hope.

“There is a lot of activity still going on and our commitment is still solid when it comes to customers getting a quality repair,” said Eaves. “This is not the end of our efforts. We’re interpret-

Change Service Requested

by Stacey Phillips, Assistant Editor

VOL. 33 ISSUE 11 NOVEMBER 2015

Shops in SC Wade through Water Damage in Effort to Save Vehicles

Autobody News reached out to a handful of body shops in the area, all On October 4, South Carolina experiof which were not directly affected by enced a “thousand-year flood” as Hurthe hurricane floodwaters, but experienced the surge in demand for their services. For the past 10 days, these shops have been sifting through the wreckage to find the salvageable vehicles, and identify the ones beyond repair.

“Once the vehicle has been completely submerged underwater, it is difficult to repair; but not impossible,” said DoA car marked for salvage sinks in floodwaters in Columbia, minick Santoro, an estimator SC on Monday, Oct. 5, 2015. Credit: @francesncr/instagram at Caliber Collision in Columricane Joaquin ripped by the capital bia. Although Caliber Collision remained open amidst Joaquin, Santoro city of Columbia, dumping 20–30 inches of rain in a 24-hour period.

See SC Flooding, Page 18

by Victoria Antonelli and Cass Heckel

Shop Owner Runs for LA Insurance Commissioner, Refuses Insurer Donations for Campaign

by Chasidy Rae Sisk

Matt Parker of Parker Auto Body said he is running for Louisiana Insurance Commissioner so he can change the way the insurance industry is regulated. Parker will face off against incumbent Jim Donelon in the primary, but unlike Donelon, who has received thousands of dollars in campaign donations from insurance companies, Parker has vowed that he will not accept donations from insurance companies for his campaign.

Parker stated, “You can’t effectively regulate an industry when you accept campaign contributions from them. Where we are today is a direct result of taking their money.”

Tom Aswell, author of the investigative blog, “Louisiana Voice,” wrote about the situation in August and claimed the Louisiana Insurance Commissioner race makes a case for prohibiting campaign contributions from those that would be regulated once the

candidate takes office. In researching the candidates’ financial campaign data, Aswell found that, since January 2014, Donelon has received almost $130,000 of $500,000 in donations from insurers, whereas Parker has raised $76,800 in the same time frame. This doesn’t include all the contributions from the remaining insurance industry, such as agents, etc.

In regards to the incumbent Insurance Commissioner, Parker stated, “Our current Commissioner is not working for the people. Louisiana’s insurance rates have been some of the highest since he took office. The blame is placed on the percentage of uninsured drivers, hurricanes and other problems, but that is not the truth – neighboring states experience the same problems but pay less in insurance rates than Louisiana consumers.

You know why our rates are so high?

Because they can be! Insurance companies in Louisiana are able to do what See LA Commissioner, Page 17

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

COLUMNISTS Attanasio - Body Shop Owner in IA Restores Cars Part-Time While Saving Lives Full-Time . . . . . . . . . . . . . 38 Attanasio - Don’t Be Content with Sub-Par Online Content . . . . . . . . . . . . . . . . . . . 26 Attanasio - What to Do if You Suspect Substance Abuse in Your Shop . . . . . . 42 Chaney - Determining Cash Values for Vehicles, An Inside Look at Mitchell’s Database Amongst Topics Covered at ABAT Event . . . . . . . . . . . . . . . . . . . 30 Hey Toby! - Rivets Have Replaced Welding in Many Newer Vehicles — Part 2 . . . . 24 Sisk - ASA-CO Hosts Employment Law Seminar. . . . . . . . . . . . . . . . . . . . . . . . 16 Sisk - ASA-CO Hosts Learning Circle on Branding and Digital Marketing. . . . . . . 22 Yoswick - Lots of Variables to Take Into Account When Welding, But Training Need Doesn’t Vary . . . . . . . . . . . . . . . . 20 Yoswick - SCRS Survey, Airbag Testing Technology, Total Loss Pandemic, NSF International . . . . . . . . . . . . . . . . . 35

NATIONAL ABAC Advocates for House Bill 5655 to Eliminate Double Taxation on Paint . . . . 53 Alioto’s Garage is the Oldest Body Shop in San Francisco . . . . . . . . . . . . . . . . . 26 All is Not Lost in Judge’s Dismissal of FL Collision Repairer’s Lawsuits . . . . . . 1 ASA Collision Division Reports on Two New Publications, Operations Committee on Feather Prime and Block . . . . . . . . . 34 ASA Responds to Volkswagen Emissions Investigation . . . . . . . . . . . . . . . . . . . . 51 Assured Performance Launches Smart App for Accident & Collision Care . . . . 48 B2B Automotive’s Michelle Nelson to Present at SEMA . . . . . . . . . . . . . . . 23 BASF Dual Refinish System Reformulated to Increase Shops’ Production & Profit . . 52 Body Shops Await News About MDL After Florida Case Dismissed, Plaintiff Law

Firm Comments . . . . . . . . . . . . . . . . . . 1 CA Takes Action Against Insurers for Various Acts: Capping Labor Rates, Lowballing, Trade Practices . . . . . . . . . . . . . . . . . . 44 Certified Collision Group™ Expands 1stCERTIFIED™ to 26 Shops, 4 States . . 48 Chief Videos Show How to Hold a Vehicle for Sectioning or Pulling. . . . . . . . . . . . 39 Dave McClelland to Host Final SEMA Awards Banquet . . . . . . . . . . . . . . . . . 39 DVI BOSS Revolutionizes Aftermarket Automotive Repairs with the New Digital Vehicle Inspection . . . . . . . . . . . 50 Equalizer Distributor Pilkington Holds Customer Appreciation Event in San Diego . . . . . . . . . . . . . . . . . . . . . . 34 GFS to Demo REVO Accelerated Curing System at SEMA . . . . . . . . . . . . . . . . . 44 Growing Trend of Collision Repair Networks Led to Formation of 1Collision Network . . 46 Honda to Spend $210 Million on New Paint System in Plant . . . . . . . . . . . . . . 47 I-CAR® Adds New Vehicle Technology & Trends Course, Updates Existing Brazing & Measuring Course . . . . . . . . . . . . . . 14 I-CAR® Welding Training & Certification™ Program Now Available Through Career & Technical Schools . . . . . . . . . 51 If Auto Injury Claims Frequency Is Falling, Why Are Claims Costs Rising?. . . . . . . 51 Ladies of NHRA Racing to Highlight 2015 SEMA Show Breakfast . . . . . . . . . . . . . 43 Mike Anderson Outlines ‘Virtual Steering’ Risks for Shops During Talk at Ontario Body Shop. . . . . . . . . . . . . . . . . . . . . . 48 Mitchell International Concludes its 2015 Mitchell Roadshow . . . . . . . . . . . . . . . 10 MSOs, Independent Shops and Businesses Raise Money and Awareness for Breast Cancer. . . . . . . . . . . . . . . . . . . . . . . . . 40 PPG Presents Brilliant Colors & Colorful People at SEMA . . . . . . . . . . . . . . . . . 53 Quaker State’s ‘Best in Class Challenge’ for High School Students . . . . . . . . . . 12 Ringbrothers to Debut All Carbon Fiber Mustang Fastback & 1965 Mustang Fastback at SEMA . . . . . . . . . . . . . . . . 14 Service King Golf Event Raises $65,000 for SafeHaven of Tarrant County, TX . . . 6 Shops in SC Wade through Water Damage in Effort to Save Vehicles . . . . . . . . . . . 1 State Farm Surveys Teens About What Would Stop Them from Texting While Driving . . . . . . . . . . . . . . . . . . . . . . . . . 3 Subaru Sees Record Demand, Plans IN Plant Expansion by 100,000 Vehicles. . 48 Subaru Selects OEC® Collision Parts Ordering and Fulfillment . . . . . . . . . . . 50 Supreme Court Declines to Hear Antitrust Claims of Predatory Pricing in GM Parts Conquest Program . . . . . . . . . . . . . . . . 1 Tony Passwater Named Director of Green Service Standards Committee . . . . . . . 50 U.S. House Passes Federal Vehicle Repair Cost Savings Act . . . . . . . . . . . . . . . . 50 U.S. Will Need To Adopt European Approach To Achieve MPG Targets . . . . . . . . . . . 50 Valspar Automotive Executive Talks Strategy at SEMA . . . . . . . . . . . . . . . . 23 Valspar Automotive Paints a Brighter Future for Artists4Education and CREF . . . . . 18 VW Fallout Continues, Recall Could Begin in January . . . . . . . . . . . . . . . . . . . . . 48 Wedge Clamp Systems Opens U.S. Location After 30 Years of International Distribution . . . . . . . . . . . 36

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, John Yoswick, Janet Chaney, Toby Chess, David Brown, Rich Evans, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Cass Heckel Art Director: Rodolfo Garcia

common among older teens, with those ages 18-19 much more likely than those ages 16-17 to report participating in the activities listed in this study.

Driving situations can play an important role in teen drivers’ decisions to participate in cellphone-related distracted driving behaviors that involve looking at the cellphone and interacting with the screen and/or buttons.

Sixty-seven percent of teen drivers who use their cellphone while driving reported that being stopped at a red light makes them more likely to use their cellphone compared to when the vehicle is in motion.

Three-quarters of teens said they were less likely to use their cellphone when adult passengers were in their vehicle compared to 58 percent who were less likely to use their phone when other teens were present.

At least two-thirds of teen drivers reported being “a lot less likely” to use their cellphone when driving in poor weather conditions such as rain, fog, snow, or ice.

A copy of the full report, and infographic and other resources can be found at: http://www.multivu.com/ players/English/7292859-state-farmdistracted-driving-teens/

Allen Samuels Chevrolet. . . . . . . . . 26 Axalta Coating Systems . . . . . . . . . 55 BASF Corporation. . . . . . . . . . . . . . . 5 BMW Wholesale Parts Dealers . . . . 47 Bob Howard PDC . . . . . . . . . . . . . . 41 Car-Part.com . . . . . . . . . . . . . . . . . . . 6 Certified Automotive Parts Association (CAPA). . . . . . . . . . . 37 Chevyland . . . . . . . . . . . . . . . . . . . . 20 Chief Automotive. . . . . . . . . . . . 11, 25 Classic Auto Group. . . . . . . . . . . . . 39 Classic BMW . . . . . . . . . . . . . . . . . . 35 Classifieds. . . . . . . . . . . . . . . . . . . . 54 Dallas Dodge . . . . . . . . . . . . . . . . . 56 Don Carlton Auto Group . . . . . . . . . 18 Eco Repair Systems of North America, LLC . . . . . . . . . . . 9 EMM . . . . . . . . . . . . . . . . . . . . . . . . 27 Equalizer Industries, Inc . . . . . . . . . 34 Finnegan Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . . 2 Ford Wholesale Parts Dealers . . . . 45 GM Wholesale Parts Dealers . . . . . 43 H & S Autoshot Mfg. Co . . . . . . . . . 23 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 28-29 Huffines Chrysler-Jeep-Dodge Lewisville . . . . . . . . . . . . . . . . . . . 14 Huffines Hyundai Plano . . . . . . . . . 38

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. ©2015 Adamantine Media LLC.

Southwest

REGIONAL A & J Collision Repair Announces the Start of Their ‘Hit a Deer Get a Turkey’ Campaign . . . . . . . . . . . . . . . . . . . . . . . 6 ASA-CNM Golf Tournament Draws Largest Number of Participants to Date . . . . . . 10 CARSTAR Owner in OK Recognized with SEMA News 35 Under 35 Honor . . . . . . 8 Clean Fleet Auto Body Benevolence Program in Louisiana . . . . . . . . . . . . . . 10 Collision Diagnostic Services Expands into Texas . . . . . . . . . . . . . . . . . . . . . . . 9 Dallas Business Journal Names Service King No. 3 Fastest Growing DFW Middle Market Companies . . . . . . . . . . . 4 Final Judgment of $326K Entered in TX Collision Suit. . . . . . . . . . . . . . . . . . . 6 Hot Rod Riot in South Texas to Feature Vintage Automobiles . . . . . . . . . . . . . . . 4 LA Auto Parts Distributor Pleads Guilty to Pirating Mercedes-Benz Software . . . . . 9 OK Shop Offers Estimates on Hail Damage Repair Services . . . . . . . . . . . . . . . . . . . 8 Refinish Distributors Alliance Adds New Member in AR . . . . . . . . . . . . . . . . . . . . 6 Service King Announces 19th Houston Location . . . . . . . . . . . . . . . . . . . . . . . . 4 Shop Owner Runs for LA Insurance Commissioner, Refuses Insurer Donations for Campaign . . . . . . . . . . . . 1

In observance of National Teen Driver Safety Week, State Farm released the results of a recent survey of young drivers ages 16-19. The focus of the survey was to learn more about their attitudes and behaviors when it comes to distracted driving.

The survey revealed that nearly all teens, over 90 percent, say they understand texting while driving is distracting, yet 44 percent say they do it. When asked to choose the top three things that would deter them from reading or responding to text messages, concern about crashing was the number one answer (51 percent), followed closely by getting caught by police (50 percent).

Besides texting, teens reported searching for music, interacting with a navigation system/GPS, talking with passengers while behind the wheel and other activities that could potentially divert a young driver’s attention away from the road.

“As nearly all teenage drivers now own smartphones, we must continue our work to understand and address the wide array of distractions that young people face,” said Chris Mullen, director of technology research at State Farm.

The State Farm survey revealed that distracting behaviors become more

Indexof Advertisers

Contents

State Farm Surveys Teens About What Would Stop Them from Texting While Driving

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

Hyundai Motor America . . . . . . . . . 13 Hyundai Wholesale Parts Dealers . 51 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 49 Larson Electronics, LLC.. . . . . . . . . . 4 Malco. . . . . . . . . . . . . . . . . . . . . . . . 17 Mazda Wholesale Parts Dealers . . . 50 Mercedes-Benz . . . . . . . . . . . . . . . . 15 Mike Calvert Toyota. . . . . . . . . . . . . 17 Mitsubishi Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 46 MOPAR Wholesale Parts Dealers . . 33 North Freeway Hyundai . . . . . . . . . 12 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Ray Huffines Chevrolet . . . . . . . . . . 16 SATA Spray Equipment . . . . . . . . . 19 Scoggin-Dickey Buick . . . . . . . . . . 31 South Pointe Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . . . 8 Southwest Volkswagen. . . . . . . . . . 30 Toyota of Laredo . . . . . . . . . . . . . . . 36 Toyota Wholesale Parts Dealers . . . 42 Urethane Supply Company . . . . . . 22 Valspar Automotive . . . . . . . . . . . . . 21 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 53 Volvo Wholesale Parts Dealers . . . . 52 Young Chevrolet . . . . . . . . . . . . . . . 10

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 3

Hot Rod Riot in South Texas to Feature Vintage Automobiles For weeks, Chris Koliba was using his days off to work on his wife’s 1961 Ford Unibody truck.

Michelle Koliba, his wife, swung through the glass door of South Texas Performance, a Victoria auto shop that specializes in hot rods, with a familiar ease.

Michelle Koliba was there to make sure her appointment for the next day was still on.

She had walked into the shop’s sparse office many times before.

“Her husband has been taking two days - his vacation days - off work to get her truck done, so it could be ready for Riot, its first car show,” said Jennifer Heibel, who works at South Texas Performance.

Hot Rod Riot is no stranger to the highest levels of dedication.

For Chris and Michelle Koliba, showing the Unibody is everything.

“We’ve been probably working-onit working on it for about two to three months,” Michelle Koliba said.

Koliba had not stopped by South Texas Performance to just chat. She had come to talk about the installation of new exhaust for her truck.

In their garage at home and at South Texas Performance, the Kolibas have overseen the installation of a Ford engine, a Camaro front clip, shifter, floor and leather seats.

“Nothing on these things can you

just go to the junkyard and get,” Heibel said. “You got to modify everything.”

The annual Victoria car show may not be the biggest, but it certainly has plenty of heart.

From 10 a.m. to 5 p.m. Sept. 26, the 4th annual Hot Rod Riot will be free to the public and free for any who wish to show their car.

The 1953 Ford F100 will be raffled off at the upcoming Hot Rod Riot, and Warrior’s Weekend will receive a percentage of the profits. Credit: Sarah Rothberg for The Victoria Advocate

Event-goers will be free to gawk at a cornucopia of vintage automobiles brought by enthusiasts from throughout Texas and beyond.

Heibel has even sent T-shirts to a fan in Japan.

Unlike many car shows, Hot Rod Riot gives out no trophies.

“We’re very big on going to a car show to attend, to support people,” Heibel

Dallas Business Journal Names Service King No. 3 Fastest Growing DFW Middle Market Companies

Service King Collision Repair Centers was officially tabbed by the Dallas Business Journal as the thirdfastest growing middle-market business in the Dallas-Fort Worth area.

The announcement came on october 8 as part of the publication’s inaugural Middle Market 50 issue, on newsstands October 9. The Middle Market 50 listing highlights the top-50 fastest growing middle market public and private companies in the North Texas area based on a weighted growth index from 201214.

With headquarters in Richardson, Texas, Service King traces its roots back to west Dallas where founder Eddie Lennox opened the company’s first collision repair center in 1976. Today, Service King operates more than 250 repair facilities in 23 states across the U.S. Much of Service King’s exponential growth has occurred in the last five years.

“Service King’s growth is a direct reflection of the hard work and passion of our teammates,” said Chris Abraham, Service King CEO. “We’re proud of our heritage as a Dallas-based organization, and our

teammates across the company take great pride in delivering the greatest level of service in the business.”

Service King, which currently serves customers at 34 locations in the DFW area, provides motorists of all makes and models service-oriented repairs. In addition to working with all major automotive insurance carries, Service King provides onsite rental assistance, towing assistance, free estimates and all work is backed by a written lifetime warranty.

In 2014, global investment and advisory group Blackstone officially acquired majority stake in Service King, which has fueled its expansion across the U.S. The Carlyle Group previously held majority ownership after investing in the company in 2012.

The Dallas Business Journal previously named Service King the No. 1 Best Place to Work in June.

Service King and its teammates will celebrate the 40th anniversary of the company in 2016. For more information on Service King and to view a complete list of locations and services, visit www.ServiceKing.com

4 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

said. “We’re not big on going to win awards.”

South Texas Performance has its fair share of awards from past car shows, but Heibel seems almost pained to discuss them.

“You go to a car show to meet people, look at their projects, hang out, meet people, drink a beer - not to go to win a damn trophy,” she said.

Hot Rod Riot is bigger than simple awards.

Revenue from the show’s familyfriendly pin-up contest go to help fund Warrior’s Weekend, a Crossroads event that pays for hundreds of veterans to go fishing for a day in the Port O’Connor.

The contest, which is more about the hot-rod style than sex appeal, is definitely suitable for children, Heibel said.

Each of the models is reviewed before going on stage and any inappropriate acts are shown the door.

Event-goers can listen to live musical performances by several acts, including The Lucky Odds, April Hall Band, Hitone Prowlers, Sons of Blackwater and DJ Heaven Lee. The event is BYOB, but beer will also be available for sale at a hand-constructed bar built around the body of a vintage automobile.

We would like to thank Victoria Advocate for reprint permission.

Service King Announces 19th Houston Location

Service King announced on October 12 the addition of its 19th Houston area location. The expansion comes through the acquisition of Dan Ward’s Paint and Body, Inc. in Rosenberg, Texas. The full-service collision repair center has served the Houston area for more than 30 years.

“We couldn’t be more excited to partner with a great team like Service King,” said current owner Dan Ward. “This is a great step forward for our teammates, while our customers will continue to receive the premier service they have come to expect. Our entire team is proud of what this partnership means for the future of our business.”

“This is another big step forward in our effort to provide Houston with the very best in collision repair service,” said Justin Regan, Service King Market Vice President.

Dan Ward’s Paint and Body has the capacity of repairing 90 vehicles per month inside its 18,900 square-foot facility.

For more information, visit: www.ServiceKing.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 5

A & J Collision Repair Announces the Start of ‘Hit a Deer Get a Turkey’ Campaign

A & J Collision Repair in Conway, AR, will be giving away over 200 turkeys to a neighborhood.

Owner Jody Gatchell said, “Here at A & J Collision Repair it is all about people. Businesses can’t survive unless people communicate and help one an-

Jody Gatchell, owner of A&J Collision Repair, in AR. Credit: thecabin.net

other. That is why I like to get out into the community and give back completely. Really because so many have given to A & J Collision Repair, it is only fair I stay in exchange with everyone around my business.”

A & J Collision Repair announced the start of their “Hit a Deer, Get a Turkey” campaign on September 28.

The fundraiser will go until December 11. During this time period, drivers who have a run in with a deer and then have their vehicle repaired at A & J Collision Repair, will receive a turkey

Refinish Distributors Alliance Adds New Member in AR

Refinish Distributors Alliance (RDA) added a new member in Little Rock, Arkansas, Crow Burlingame, Inc. RDA now covers 27 states. In business since 1919, Crow Burlingame operates warehouse distribution out of Little Rock, Tulsa, OK and Monroe, LA. The company supports 13 PBE specialty stores operating under the name of Car Color. The warehouse also supports an additional 45 Bumper to Bumper auto stores that distribute PBE products out of their respective locations. In total, the company services 160 locations consisting of PBE specialty and Bumper to Bumper locations. The company carries Axalta and PPG lines of automotive finishes.

“We are looking forward to networking and exchanging best practices with the RDA members who are the best and most innovative, forward thinking distributors in the industry,” said Rick Del Donno, head of the PBE division for Crow Burlingame.

To join RDA/IMPACT, call 731217-9081 or email robertemckenzie @me.com. For information, visit www.impactcollisionsolutions .com or contact Melisa Jolls at 908-251-5713 or email: meljolls@earthlink.net.

from A & J Collision Repair.

According to State Farm Insurance Company’s news release, which lists states that have the highest deerrelated incidents, Arkansas drivers have a one in 101 chance of having a deerrelated crash. That puts Arkansas in 13th place. October, November and December are the three months out of the year that drivers are more likely to have a deer vehicle accident. A & J Collision Repair has already been seeing an increase of deer-related accidents for the past two months.

For every turkey the shop gives to a customer, they will donate the same amount of turkeys on December 15 at 1:00 p.m., to the Soul Food Café.

The goal is to surpass last year’s giveaway of 200 turkeys to the same cafe. In 2013, the company donated 150 turkeys to The Soul Food Café with the help of Harps Grocery. The cafe served 343 lunch meals of which 200 of them received a turkey with their meal.

This year, A& J Collision Repair is calling on the community to get involved and help with the turkey donations. For information on donating turkeys to the Soul Food Café, contact Jody Gatchell at 501-327-1882 or at jody@ajcollisionrepair.com.

Final Judgment of $326K Entered in TX Collision Suit

A Beaumont, TX judge entered a final judgment in September of more than $326,000 in an auto collision lawsuit.

Elbert and Karen Choate filed suit against Donald Plummer, Vanguard Car Rental USA and National Care Rental US on July 21, 2008 in Jefferson County District Court.

Erick Allen and Bertrand Ceasar were also named as defendants in the original petition.

The final judgment, entered on Sept. 22, states that Karen, individually and as representative of Elbert Choate’s estate, recover from Ceaser and Allen $231,943.02 in damages and 94,710.06 in interest.

According to the petition, on Aug. 25, 2006, the Choates were in a collision with Plummer, who was driving a rental car owned by the defendants. The plaintiffs had slowed to avoid a collision with a rolling dump truck that had been abandoned on the interstate by Allen and was owned by Ceaser, when Plummer struck them from behind, according to the original petition.

Court records show that Plummer offered Karen, who is representing Elbert’s estate, a $25,000 settlement. This case was submitted by David Yates.

6 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Service King Golf Event Raises $65,000 for SafeHaven of Tarrant County, TX Service King hosted its 21st annual DFW Charity Golf Tournament on Oct. 19 in an event that raised more than $65,000 for SafeHaven Women’s Shelter of Tarrant County in TX. The golf tournament took place at Frisco’s Stonebriar Country Club and attracted more than 280 golfers.

“We are so thankful for the ongoing support of Service King,” said Kathryn Jacob, CEO of SafeHaven of Tarrant County. “Because of Service King raising awareness and funds for SafeHaven, more women and children are served, and receive that service at a higher quality.”

SafeHaven has served domestic violence victims in Fort Worth, Arlington and the surrounding communities for nearly four decades. As the largest and most comprehensive Tarrant County organization providing services at no cost to domestic violence victims and their children, SafeHaven helps women rebuild their lives and move from fear to freedom.

Funds raised through the Service King DFW Golf Event will be used for a variety of services, including the SafeShelter Program, which is the primary program providing free shelter to victims and family members. Through-

out its history, Service King’s DFW Charity Golf Event has grown into an annual fall tradition in the area, benefitting non-profit organizations.

“This is an event our teammates look forward to every year,” said Jeff McFadden, Service King president.

“We’re so proud to impact communities across the country and it all started 21 years ago at our home here in DFW. The free services SafeHaven provides to women and children throughout the area are life-changing. We’re honored to help this wonderful organization continue to serve as a guiding light for people in need.”

For information on SafeHaven of Tarrant County, visit: www.safe haventc.org.

Service King hosts charity golf tournaments across the country by way of its teammates at more than 250 locations. For information on upcoming events, visit www.serviceking.com.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 7

OK Shop Offers Estimates on Hail Damage Repair Services

Hail Restore in Oklahoma City, OK, will now be offering free estimates to people who have experienced auto hail damage. The body shop, which has been operating since 2007, has been repairing automobiles in Oklahoma City that have experienced hail damage. It is believed that this year, being an El Nino year, will bring about many more storms, leading to more damage.

Chase Moore from Hail Restore said, “No matter how hard we try, we simply cannot control Mother Nature.

Unfortunately, for residents of Oklahoma City, this means that the likelihood of their cars becoming damaged is high. Repairing this damage is often an urgent job and we are ready to take it on. We are one of the only companies in the area, however, who does this while first providing a free estimate."

The company, which has been rated A by the Better Business Bureau, said it has been at the forefront of creating innovative solutions for serious problems caused by storms. In May of this year, they announced they were supporting a loaner car service through their collision repair Edmond service for people whose vehicles had been damaged by hail storms.

CARSTAR Owner in OK Recognized with SEMA News’ ‘35 Under 35’ Honor Jeremiah Graham, owner of CARSTAR Jeremiah’s in Oklahoma City, OK, for being named one of SEMA News 35 Under 35 list.

The SEMA News 35 Under 35 list, now it its fourth year, presents 35 young trendsetters who bring ideas and renewed enthusiasm to every segment of the automotive specialty-equipment industry. In order to make the list, honorees must be nominated by one Jeremiah Graham, or more industry owner of CARSTAR peers.

Jeremiah’s in While Graham Oklahoma City, OK has more than 15 years of experience, he became a shop owner just over two years ago. Since then, he has quickly turned his shop into a top performer.

“When I found out, I couldn’t believe it,” said Graham. “I’m very flattered. I’m glad there is an award that recognizes the young guys. I feel like a young man in an old man’s world. This business takes a lot of experience and moxie. It’s not easy for a guy my age to get into body shop ownership. I applaud everyone out

8 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

there who is doing this.”

“Since Joining CARSTAR, Jeremiah Graham has quickly proven himself as a great owner,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “He is an owner that is truly plugged in to the business. He runs an efficient shop and is able to generate original ideas that really work.”

Graham started in the business at 18 when a neighbor offered him a job after recognizing his work ethic.

By 25, he became the general manager. When the former owner decided to retire, Graham bought the shop’s assets and opened his own shop, becoming Oklahoma’s first CARSTAR location.

Graham spends a lot of time focusing on customer experience by implementing transparency and communi- cation. His shop employs AutoWatch, so his customers can keep up with the progress of their repair with pictures and text messages. He is also a very hands-on owner in the sense that he’s always around and engaged with what’s happening in his shop. Graham also has great relationships with his DRPs and vendors. His policy has been – “Treat us fair. Do the right thing for us, and we’ll do

business with you.” When it comes to purchasing, he would rather pay for the right part or tool instead of saving money on the wrong thing.

Graham offers I-CAR training to his technicians, and hosts it in his shop to make it more convenient.

He has also invited people from various companies like 3M and Lord Fusor to give one-on-one training with their products, and actual certification in some cases. Graham is always reminding his staff that things are always changing, and that they must stay current. He said that he will not deny education for those who want to learn more about the industry. Graham also pays for their training, and for their time while they’re in training. He also offers life insurance at no cost, and pays for short-term and long-term disability once an employee has gone through a trial period.

Each one of Graham’s techs also has his own lift. While the techs buy their own tools off the truck, Graham will help them if they need anything.

He also buys tools to have available at the shop. He said he tries to find things that will make his techs be able to do their job better, or faster, or just not as hard on their bodies.

Collision Diagnostic Services Expands into Texas

Collision Diagnostic Services, creators of the AsTech remote diagnostic device, opened its new headquarters in October in Plano, Texas. The 9,000 square foot stateof-the-art facility features a dedicated training and research area along with space for an additional 60 master technicians. The new space, which will operate in addition to the company’s existing office in Jacksonville, Florida, will allow for expansion as the company gears up for the release of the next generation asTech™ scanning and diagnostic device.

“We are excited to set up shop in the heart of the Dallas Forth Worth Metroplex, home to some very large automotive companies,” said Doug Kelly, CEO of CDS. “Having two climate-controlled drive-in bays for research and development, customer presentations and training will significantly improve our ability to stay ahead of the every changing automobile.”

For information, visit www .collisiondiagnosticservices.com.

The company’s new address is 600 Development Drive, Suite 100 Plano, TX 75074.

LA Auto Parts Distributor Pleads Guilty to Pirating Mercedes-Benz Software An aftermarket auto parts distributor in Harahan, Louisiana, pleaded guilty in September to manufacturing and selling over 800 copyright-infringing copies of Mercedes-Benz diagnostic software valued at over $17 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.

The Brinson Company (TBC), and its owner, Rainer Wittich, 66, of River Ridge, Louisiana, pleaded guilty before U.S. District Court Judge Nannette Jolivette Brown of the Eastern District of Louisiana to any information charging them, respectively, with conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act, and criminal copyright infringement.

Sentencing is scheduled for January 16, 2016.

As part of its plea agreement, TBC agreed to assist Mercedes-Benz in compiling a list of all customers to whom it sold, distributed, donated or otherwise provided the pirated software.

Wittich owned TBC, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles.

According to TBC’s plea agreement, beginning in about 2001, in conjunction with two other companies, TBC began developing, manufacturing and selling non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a portable tablet-type computer that contains proprietary software created by Mercedes-Benz to diagnose and repair its automobiles and that requires a code or “license key” to access.

TBC admitted that, without authorization, it obtained Mercedes-Benz SDS software and updates, modified and duplicated the software, and installed the software on laptop computers (which served as the SDS units).

TBC further admitted that, not later than June 2010, it began purchasing software for the non-authentic SDS units as well as updates and

“patches” for the software from an individual in the United Kingdom.

TBC admitted that after Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, representatives of TBC and the co-conspirator companies discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of non-authentic SDS units.A genuine SDS unit sold for up to $22,000, and purchasers of the SDS paid Mercedes-Benz several thousands of dollars per year to receive regular software updates.

According to TBC’s plea agreement, a non-authentic SDS unit sold for up to $11,000. TBC admitted that in total, it sold approximately 725 non-authentic SDS devices, and that one of its co-conspirators sold at least 95 devices.

To learn more about the IP Task Force, go to: www.justice.gov/dag/ iptaskforce.

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Mitchell International Concludes 2015 Roadshow

Mitchell International recently concluded its five-city roadshow. Over the course of 10 months, members of the Mitchell sales and marketing teams visited collision repair shops across the country stopping in Dallas, Miami, Philadelphia, Phoenix and Seattle to meet with customers utilizing various Mitchell products, including the company’s RepairCenter™ shop management solution.

Mitchell’s RepairCenter solution is built with the flexibility to configure and select functionality that can be customized to individual businesses.The RepairCenter platform enables collision repair facilities to manage various aspects of their workflow including the repair, the customer and the business. posed to be.”

“Mitchell is proud to be the premier provider of collision repair shop solutions for all of the exemplary shops visited on the Roadshow,” said Paul Rosenstein, VP, Product Management at Mitchell International. “Our customers’ satisfaction is paramount.

We’re really looking forward to 2016 where we can meet more of our customers and discuss ways in which we can successfully support and streamline their business.”

Clean Fleet Auto Body Benevolence Program in Louisiana Clean Feet Auto Body in Louisiana announced that it is holding its Benevolence Program for the second year in a row. With the help of the community, the Louisiana-based body shop will present a family with a new “used” car filled with toys, groceries and gifts in December.

“Every day vehicles are abandoned or ‘written off’ by owners or insurance companies due to mechanical issues or body damage. Some of these vehicles are only years old with minimal damage,” said David Raymond, the operations manager of Clean Fleet Auto Body. “Often times with a little restoration, these cars can be returned to the road in perfectly safe driving condition. We, at Clean Fleet Auto Body, believe these cars are going to waste and we’ve decided to do something about it.”

Raymond said that in 2011 many local businesses in the community teamed up to make the first Benevolence Program possible with donations of parts, materials and services toward restoring the vehicle. Gifts and groceries were also donated.

The body shop is seeking applicants looking to receive a “hand up, not a hand out,” who are working hard to become independent but lack of reliable

ASA-CNM Golf Tournament Draws Largest Number of Participants to Date

by Chasidy Rae Sisk

On August 30, ASA-CNM hosted their Annual Golf Tournament and Fundraiser at the Isleta Golf Resort, located south of Albuquerque, NM.

The beautiful sunny day offered a chance for shops and parts vendors to network and interact in a fun social setting. This year’s event drew 122 golfers, the largest number of participants to date.

Jim Maddox, President of ASA-

CNM, noted, “Everyone enjoyed the day with good food at the awards banquet immediately following the tournament.”

Thirty vendors sponsored the event by donating prizes for the raffles. Maddox stated, “Corporate numbers were slightly down from last year, but raffle numbers were up, due in part to the nice assortment of donated prizes ranging from a 32” TV to hand tools.”

The money generated from the raffle raised enough funds for ASACNM meeting expenses, supplies, administrative materials, speakers and training for another year as well as providing the fees to host their monthly meetings at a local hotel.

This year’s training will include HR and OSHA mandated information and basic First Aid and CPR training, in addition to technical training courses.

10 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

transportation interferes with their current and future economic status. Applicants wishing to qualify are required to

Clean Fleet Auto Body in Louisiana will be giving away a car this holiday season as part of its Benevolence Program

write a one-page narrative explaining how the vehicle will assist their family to become more self-sufficient.

Applications are open to the public and must be received by November 1.

The shop’s goal is to reward the family with not only a vehicle, but to

cover any expenses associated with the vehicle for at least one year. Any monetary donation provided, whether it be $10, $50, $100 or $1,000, will go toward the purchase of parts, insurance, gas cards and oil changes. The shop is also accepting groceries and toys.

On December 18 at 2:30 p.m., Clean Fleet Auto Body will host the Benevolence Program Patron Party where the recipient will be presented with the vehicle. All donors will be recognized by name or logo on a stage billboard and will be announced over the microphone during the presentation and throughout the event. The shop is looking for food or beverage donations for the party from local restaurants, caterers, and food/beverage distributors.

“We are excited and feel so fortunate to be giving back to a community that has supported us for nearly 35 years,” said Raymond. “We not only hope to grow this program and increase the number of vehicles given away each year, but to also encourage other local businesses to adopt similar programs of their own.”

For more information or to make a donation, contact Raymond at davidr@ cleanfleetautobody.com or (504) 8880000. Applications are available on the Clean Fleet Auto Body website.

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Continued from Cover

Antitrust Claim

parts below ‘average variable cost’ and thereby designed to drive competition out of business.

The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. The suit alleged violations of federal and state antitrust and state consumer protection regulations.

Felder’s alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business.

The U.S. Supreme Court declined to revive the suit accusing GM of trying to monopolize the collision parts market, rejecting the auto parts retailer’s argument that the Fifth Circuit considered the wrong factors when ruling on predatory pricing allegations.

Felders had told the original Mid-

dle District of Louisiana court that its income fell from a peak of about $3 million in 2008 (before the GM program began) to about $2 million because of GM’s program, which, it argued, could drive Felder’s out of business. But Felder’s also acknowledged to the Supreme Court that LKQ subsidiary Keystone has survived despite the GM competitive pressure.

GM originally gave the dealerships a rebate for the difference between cost and the reduced price charged the auto body shop and tacked on a 14% markup on the original price. GM’s parts normally cost more to consumers than aftermarket parts, but GM said that if All Star and others sold the parts for 33 percent less than their competitors, it would send them a rebate that amounted to a 14 percent profit.

Felder’s filed a petition based on the panel’s holding that a GM rebate for name-brand parts had to be considered when comparing its distributors’ prices to generic competitors’, not just day-of-sale pricing. The Fifth Circuit had already ruled that the rebate kept the transaction from falling below the supplier’s average variable cost and thus wasn’t predatory.

“This case presents a purely legal

Quaker State’s ‘Best in Class Challenge’ for High School Students

Quaker State® has brought a hands-on automotive education program to select high schools through its “Best in Class Challenge.” This six-week competition features high school auto shop classes across the United States restoring, tuning and customizing a pre-owned car into a showroom-ready, creative representation of their school. Each high school team will compete for not only bragging rights, but a custom spread in Popular Mechanics, the opportunity to attend and participate in the December 11 Mecum Auction in Austin, TX and prize money and scholarships for their high school.

Gita Gidwani, Quaker State global brand manager, said, “The competition will be a true test of automotive knowledge and attention to detail for the students, and we hope it builds on their passion for the industry.”

On September 14 approximately 27 schools from across the U.S. competed to be nominated for the “Best in Class Challenge” and had until September 27 to secure as many votes as possible. Five school auto shop teams with the most votes were named finalists and able to take part in the next stage of the competition, transpiring over six weeks with a different auto-

motive challenge each week beginning October. The schools include: ● Chicago, IL: Trevians from New Trier High School ● Atlanta, GA: Navigators from Maxwell High School of Technology ● Charlotte, North Carolina: ATC from Iredell Statesville Schools Automotive Technology Center ● Northern, NJ: Kards from Kearny High School ● Orlando, FL: Scorpions from Satellite High School Quaker State teamed up with AutoZone to set up each school with the tools for success. The top five schools received their vehicle from local car lots (valued at $3,000), received a $2,000 AutoZone gift card to purchase all necessary parts and supplies for the competition. Over the next few weeks, the students will be scored on their progress, quality of work and overall final product. Online voting will also be taken into consideration.

The two judges are Tommy Pike, owner of Tommy Pike Customs, and Paul Menard, driver of the No. 27 Quaker State-Menards Chevrolet SS who races in the NASCAR Sprint Cup Series. For information, visit: www .quakerstate.com.

12 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

issue for predatory pricing claims: whether cost … is measured at the point when the consumer’s participation in the transactions comes to an end, or can incorporate post-sale kickbacks from a conspiring supplier,” the petition states.

Felder’s attorneys urged the high court to rule that the appropriate boundary for determining pricing should be when the consumer transaction ends.

“If, at that point, the predatory competitor’s costs are below the price paid by the consumer, then that prong of a predatory pricing claim is satisfied,” it said. “The sale below cost destroys competition, the protection of which is the essence of the Sherman Act.” A Louisiana federal judge said in April that Felder’s failed to define the effective area of competition and didn’t actually allege below-cost pricing that met the Fifth Circuit’s standards. The retailer brought the suit before the Fifth Circuit, claiming that it had alleged specific Louisiana parishes and Mississippi counties in which it competes with All Star and that it had laid out GM’s alleged illegal scheme in detail.

In unanimously upholding the lower court dismissal, the three-judge Fifth Circuit panel ruled that the rebate should be considered as a ‘reduction in

All Star’s cost of acquiring the parts.’

“The rebate undoubtedly affects that bottom line for All Star by guaranteeing that it makes a profit on any Bump the Competition sale,” Circuit Judge Gregg J. Costa wrote in the opinion. “That undisputed fact resolves the case, as a firm that is selling at a short run profit-maximizing, or loss-minimizing, price is clearly not a predator.”

The Automotive Body Parts Association filed an amicus brief in support of Felder’s in May, arguing that the precedential decision will fetter competition nationwide. The association claimed its members will suffer if the ruling is allowed to stand because the decision created an “open ended” and “unclear” rule on how to evaluate predatory pricing claims and allows competitors and suppliers to conspire to eliminate competition without consequence.

“It is not merely competitors that are being eliminated by GM’s ‘Bump the Competition’ program. It is competition that is being eliminated,” the association said in its brief. “The economic harm petitioner is suffering is not limited to its specific geographic market. Rather, the harm is occurring nationwide.”

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Case Dismissed

ing this as a delay in the process.”

The Florida lawsuit, including 20 auto repair shops and 39 insurance companies, was filed February 24, 2014. It was the first action filed in the Multi-District Lawsuit, which grew to include two dozen lawsuits and were consolidated for pretrial purposes.

In the case, the Plaintiffs allege that the Defendants, “engaged in an ongoing, concerted and combined intentional course of action and conduct to improperly and illegally control and depress automobile damage repair costs to the detriment of the Plaintiffs and the substantial profit of the Defendants.”

The Plaintiffs also assert that the Defendants engaged in price fixing, compulsory use of substandard parts and boycotting shops that refuse to comply.

Eaves Law Firm filed a Second Amended Complaint Feb. 11, 2015, alleging price fixing in violation of the Sherman Act, boycott in violation of the Sherman Act, tortious interference with business relations, and quantum

meruit.

This is the third time the claims were dismissed; however, this time they were dismissed “with prejuidice,” meaning they cannot be refiled as they were before.

“Based upon a review of the pleadings in this and the other 20-odd cases… the Court finds that giving the Plaintiffs another opportunity to state a claim would be an exercise in futility,” Judge Presnell wrote in the most recent court document.

Eaves said the silver lining is that they will get more clarification from the appellate judge on the other issues of law.

The first step is to file a motion to reconsider, which Eaves said will be done in 10 days. Then the law firm will have 30 days to file a notice that they will appeal, which will most likely take a year.

In the meantime, Eaves Law Firm has submitted amended complaints for the first six lawsuits that were filed, including Florida, Indiana, Louisiana, Mississippi, Tennessee and Utah.

“We think the judge is mistaken, especially about tortious interference, so we are appealing that ruling,” said Eaves.

I-CAR® Adds New Vehicle Technology & Trends Course, Updates Existing Brazing & Measuring Course

I-CAR has announced its fourth quarter product launch, which includes new and updated courses designed to help technicians and repair facilities prepare for today’s rapidly evolving collision repair industry. A new version of one of I-CAR’s most popular classes takes an in-depth look at 2016’s emerging vehicle technology and trends, while two updates add important new content to I-CAR’s existing foundational MIG brazing and measuring courses.

Vehicle Technology & Trends 2016 (NEW16) shines a spotlight on the new developments that repair facilities can expect to see in 2016 and beyond. The Technical Tsunami™ facing our industry is real and NEW16, which continues the popular “New” series, covers what’s changing on the cars that will soon be arriving in collision repair facilities across the country. The live course includes interviews with OEMs as well as a detailed look at new vehicle features, materials and more. Be aware and be prepared!

Course updates include expansions to MIG Brazing Theory (BRZ01e), an online course that helps technicians fully understand the applicability and uses of MIG brazing. MIG brazing has become

a required repair method for a growing number of popular vehicles, and this course prepares technicians to perform complete, safe and quality repairs when MIG brazing is one of the required attachment methods. The course now includes updated repair procedures and new and improved graphics and videos.

I-CAR has also updated Measuring (MEA01/v) to include newly refreshed vehicle examples, practice activities, graphics, animations and videos. All of this enhances the learning experience, contributing to better student learning retention and application when back on the job. The course is conveniently available in both a live classroom and virtual classroom format.

“I-CAR is committed to helping collision repair technicians and facilities stay on top of industry trends and evolving repair processes,” explained Josh McFarlin, I-CAR Director of Curriculum & Product Development.

“We are continually developing and updating our courses to reflect the mix of repair skills and knowledge that is required to produce complete, safe and quality repairs both today and tomorrow.” Visit i-car.com/newcourses.

14 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Tortious interference occurs when a person intentionally damages the plaintiff’s contractual or other business relationship.

According to court documents, “Tortious interference may be justified where the interfering defendant is not a stranger to the business relationship with which it is interfering… The defendants in this case were not strangers to any business relationships between their insureds and auto repair shops, as the defendants would be paying for the repairs to be performed.

In court documents, Judge Presnell wrote that the plaintiffs relied on the same incidents as demonstrating that the defendants were engaging in a boycott. “However, those incidents are not sufficient to state a claim for tortious interference with a business relationship,” he said.

Another claim involved quantum meruit. Quantum meruit refers to a reasonable sum of money to be paid for services rendered or work done when the amount due is not stipulated in a legally enforceable contract.

Judge Presnell dismissed the claim for quantum meruit, saying “One person should not benefit from the work efforts of another under circumstances

where the person doing the work has the reasonable expectation of being paid by the person benefitted, and the person benefitted has a reasonable expectation of paying for the work.”

He added that, “With foreknowledge of the amounts the Defendants were willing to pay, the Plaintiffs could not have had a reasonable expectation of receiving more.”

Eaves said, “We think that shops have the right to get paid for work and have a reasonable expectation to get paid for work that they do.”

The law firm encourages all shops, whether or not they are involved in the lawsuit, to send evidence for the case.

“This industry didn’t get in this shape overnight and it won’t get out of it overnight,” said Eaves.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 15

National Associations

ASA-CO Hosts Employment Law Seminar with Chasidy Rae Sisk

On August 20, ASA-CO hosted an Employment Law Seminar at Kenz & Leslie, located in Wheat Ridge, CO. Attorney Michelle Magruder, Esquire, Director at the Law Firm of Fairfield and Woods, P.C. spoke at the event. According to Kari Foster, Executive Director of ASA-CO, “Michelle Magruder is a fantastic speaker. This is the second time she has volunteered her time to speak to our community, and she is a wonderful resource on all things related to employment law.

She got rave reviews from attendees.”

During the seminar, Magruder spoke on topics related to flat rates and Attorney Michelle Magruder, Director medical marijuana at the Law Firm issues. She also disof Fairfield and cussed tips on interWoods, P.C. viewing and hiring.

Magruder has 26 years of experience as an attorney with a large percentage of clients being automotive repair busi-

nesses. She explained, “I emphasize preventative law, keeping clients out of court by doing things right as soon as an issue develops. You need to be proactive from the beginning of the

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.

situation, and maintaining proper doc- ously received proper maintenance.

Magruder’s tips continue to inumentation helps my clients avoid clude the importance of implementlawsuits.”

One of the major focuses of Ma- ing a solid quality control program which would ideally include an ingruder’s presentation was on risk spection by the service foreman or management tips. First, all service demanager. Any repairs performed on or partments should establish a written policy outlining the circumstances under which a test drive is required following completion of the repair, and this policy should also dictate a test drive route to be used by all service technicians. The exact mileage on the odometer when the vehicle is dropped off and picked up should be recorded on the Repair Order as evidence that an appropriate test drive was conducted beASA-CO members listen to a seminar on employment law fore the vehicle was returned to the customer. On the Repair Order, near wheels should include a second all service technicians should provide technician checking all lug nuts to endetails, specifically indicating any evisure they’ve been tightened to redence that the vehicle had not previquired specifications. Rather than

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tolerating poor workmanship, shops should issue a written warning to any technician with a come-back, and termination should be considered for any tech with three or more warnings in a six-month period.

Service advisors should document all customer authorizations and obtain required signatures before repairs are performed. The Repair Order should include Colorado statutory language allowing the repair facility to charge a storage fee if the customer fails to make timely payment, and the Repair Order should also clearly state that if the company has to take legal action against the company for payment, the customer will be required to pay all associated court costs and attorney fees if the company prevails.

Foster states, “Events like this are important to update and remind members that small documentation and process changes can make all the difference in the eyes of the law. It is a great opportunity for member shops to clarify and correct those processes in their shops.”

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Continued from Cover

LA Commissioner

they want. Last year, 3600 complaints were filed, but no corrective actions were taken, compared to neighboring states who impose penalties to force insurance companies to play fair.”

Parker recognizes that the McCarran-Ferguson Act allows for price fixing if regulated by a state official, but he objects to this being regulated by someone whose campaign has been financed primarily by the insurance industry. He observes that the insurance industry made $44 billion in net profit in 2005 which was the year of Hurricane Katrina, the biggest national disaster in U. S. history, and $64 billion in 2006, and while other states’ insurance rates decrease, Louisiana’s rates continue to rise faster than the rest of the nation. Although over 100 insurance companies write policies in his state, five major companies enjoy the majority of the market, so smaller companies can’t compete. The insurance companies want to save money to increase their profits, but they don’t pass it on to consumers. This is evident by the high cost of insurance in Louisiana.”

If elected as Insurance Commissioner, Parker hopes to bring fair regulation back to Louisiana, which, according to the Consumer Federation of America, doesn’t seem to exist. He wants to lower rates. He also plans to educate shops and consumers who are being mistreated by insurers.

“I’ve talked to shops all over the nation, and we’re tired of insurance companies running our businesses.

This shouldn’t be happening in America, and we wouldn’t be having these problems if the government would do the right thing. Politicians don’t tell the whole truth about what they’ll do in office so we should give someone else a chance. The definition of insanity is electing the same people and expecting different results. We need to put working class people in office.”

With over 30 years’ experience in collision repair, Parker has experienced the relationship between shops and the insurance industry firsthand.

He understands “how the game is played. You need a conscious and a desire for people to be treated fairly to run an insurance department. For years, insurance companies have steered against the shops trying to protect consumers, yet we’ve stayed in business. I can’t

imagine better qualifications than that.”

In order to raise funds, Parker has been appealing to body shops and consumers and even selling raffle tickets.

John Mosley, a Mississippi body shop owner who unsuccessfully ran for the position of Mississippi Insurance Commissioner, commented on the “Louisiana Voice” post, pledging $500 to Parker’s campaign and encouraging repairers to support Parker’s efforts to become Insurance Commissioner.

“His victory has the potential to set up a chain of events that could change the insurance industry in every state...

Make no mistake, the insurance industry knows what Matt’s success will mean nationwide. Our industry knows it as well. The question is, who will step up and stand with Matt on behalf of consumers and repairers nationwide? I am sending Matt a donation of $500 today. If 1000 shops, 20 from each state, would do that or more, Matt could win,” said Mosley.

Parker feels compelled to stand up for what’s right because “when good people stand idle, evil takes over.”

He is hopeful that his campaign will be successful and he can effect meaningful change for Louisiana consumers.

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Caliber Collision, which is a DRP for State Farm, Liberty Mutual, and Safeco, had a State Farm agent on the premise helping to assess vehicles. experienced damages on the home“You have to press a little bit front. more,” said Santoro. “Instead of getting “Half of the road I live on was off work at 6 pm, you have to work till washed away,” he said. “The state is 7 pm. You come in at 8 am instead of saying it may not be restored until 8:30 am; we got to get the vehicles March or April.” done and get them out. These people When we spoke with Santoro on need their cars back and get back to the October 8, the shop was waiting to get rhythm of their lives.” claims processed for the flood damHe said he can’t put a number on aged vehicles. how long it will take for the Palmetto State to make a full recovery, but it’s safe to say things won’t be back to normal for a while.

“The State of South Carolina is doing the best they can,” said Santoro. “About 300 roads have been washed out; right now it’s important to get the infrastructure together in the city; without infrastructure, people can’t get to us to get Cars are stranded in the floodwaters in Columbia, S.C. their vehicles fixed.” on Monday, Oct. 5, 2015 Santoro owned a repair shop “We have about seven to eight in New York for 25 years, so he is no vehicles here that we are working on stranger to weather or how unforgiv[post flood], but we also have our own ing Mother Nature can be. work that we had in before the flood“Predicting weather is not an exact ing started,” he added. science, but we were warned that there

Continued from Cover

SC Flooding

Valspar Automotive Paints a Brighter Future for Artists4Education and CREF Valspar Automotive is bringing its brand family of performance coatings and products together with the creative talents of top custom artists

to SEMA to raise money through Artists4Education and help fund the Collision Repair Education Foundation (CREF).

Artists including Ryan Evans of Count’s Kustoms and The History Channel’s Counting Cars, Josh Culver of Culver’s Customs, Ron ‘Flea’ Fleenor, John Wargo of The Custom Shop, Nub of NubGrafix, Jon Kosmoski of House of Kolor, KC Mathieu of KC’s Paint Shop, Jason Jewett of Red House Custom Paint and more are offering their time and creative skills by painting and donating items to be auctioned off dur-

ing the SEMA show. The funds received will go directly to benefiting CREF, which gives future technicians the proper education and training for a successful collision repair career.

“This is the very heart of what we love about how car and motorcycle culture and art come together—the unleashed creativity, and generosity, is simply mind blowing!” said Laura Yerkey, marketing director, Americas, at Valspar Automotive.

By purchasing the auction items, at the SEMA trade show or online, fans of these artists have a chance to own a unique piece of American history. Monetary donations are being accepted on the Artists4Education website, www.artists4education.org.

To view many of the items as they are painted live during the SEMA trade show, visit Valspar Automotive booths #10851, #10655, and #23513.

www.autobodynews.com CHECK IT OUT!

18 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

would be flooding of epic proportions,” he said. “Some took those warnings with a grain of salt, others took them to heart. The ones who took them to heart are the ones who are doing okay.”

Credit: @chrys_z/instagram

Santoro said there were barricades all over the city.

“Right now it’s like a mouse in a maze,” he said. “You’re trying to get him in one end and out the other.”

Santoro said if there is one thing South Carolina residents can take away from this natural disaster, it’s to “listen; heed the warning.”

Broad River Paint & Body Shop, also in Columbia, reported no damage. Despite the fact that most of the staff was unable to make it to work,

Don Carlton ACURA OF TULSA

918-627-6457 Fax

888-550-7278

Member of the Tulsa Parts Connection

they stayed open during the hurricane, and were able to repair a few wrecked vehicles.

St. Andrews Express Body Shop reported no damage to the shop itself.

However, the vehicles that did come in went straight to salvage due to water rising all the way up to the dashboard.

Jimmy Rivers at Used Foreign Car and Summit Collision Ctr Inc. reported no damage.

Autobody News also reached out for comment to State Farm’s South Carolina media representative, Justin Tomczak, who submitted the following statement: “Body shops and car dealerships can expect State Farm to deliver the highest level of service to our customers as we help South Carolina recover from this event. State Farm has deployed estimating and claim handling resources to deliver the highest level of service to our customers as we help South Carolina recover from this event. State Farm agents, agent’s staff, and local employees are also helping customers as we begin the recovery from this event.”

For more information on state road conditions, or other vehicle-related inquiries, please call 1-855-467-2368, or visit www.scdot.org.

Don Carlton

HONDA OF TULSA

918-392-9665 Fax

800-722-2379

Member of the Tulsa Parts Connection

Excellent service Competitive pricing

Knowledgeable staff First class service

4905 S. Memorial Dr. Tulsa, OK 74145

4141 S Memorial Dr. Tulsa, OK 74145

Parts Hours: Mon-Sat. 7:00am - 6pm

Parts Hours: Mon-Sat. 7:00am - 6pm

Parts Manager: Diane Finch acuraparts@doncarlton.com

Parts Manager: Nick Young hondaparts@doncarlton.com

www.doncarltonacura.com

www.doncarltonhonda.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 19

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.

Lots of Variables to Take Into Account When Welding, But Training Need Doesn’t Vary with John Yoswick

When most collision repairers think of Chief Automotive, they likely think first about frame racks and measuring systems. But “Vehicle Services Group” includes not only Chief, Chassis Liner and the Rotary Lift brands, but the Elektron line of welders as well.

During a recent training session at Chief’s headquarters in Madison, Ind., Richard Perry, who oversees training for the company, offered some insights into the variables that technicians needs to keep in mind when welding, particularly as the range of materials used in vehicle construction continues to expand.

“Anytime you’re welding or bonding, preparation is the biggest part of it,” Perry said. “Making sure the panels are ready, the surfaces are clean. Whether they need to be scuffed. Whether you need to take the oxidation off the aluminum. Whatever needs to be done.”

The amperage, voltage and other settings on the welder need to be properly dialed in as well, he said.

“If the voltage is too low, the wire is going to come out further and start hitting the material before it melts,” Perry said. “If the voltage is too high, the wire is going to start to burn off before it gets to the material and that’s when you get a burn-back and the wire stuck to the welding nozzle.”

“That’s the one great thing about new welders; we have engineers who will establish these settings as a program in the welder,” Perry said. “They do testing with the actual wire and thickness of materials, then program it.

So on these new welders, the program will give you the numbers based on the wiring you’re using and what you’re welding. You just dial that system to that number and you’re ready to start welding.”

Bob Holland, Chief’s collision director for the Americas, said the process of creating these latest welders includes interaction with the automakers.

“Our engineers do the programming, but we have to actually take those programs to the OEMs and have them test them to make sure they have repeatable results that are within the range that they require,” Holland said.

Perry said experienced welders may make some adjustments to those

programmed settings based on their welding style.

“If he’s a real fast welder, he may increase the voltage,” Perry said. “If he’s a slow welder, he can decrease it. If he likes to be up close, he can decrease the arc. If he likes to be further away, he can increase the arc. So there’s a lot of things that can be done specific to each person, but the program gets you right to where you need to be.”

A nice thing about the new welders, Perry said, is the machines respond to any adjustments synergistically.

“So if you change the amperage, it’s going to adjust your wire speed, etc., so that everything works together,” he said.

Other variables that welders need take into account are panel fit-up and alignment, Perry said.

“Make sure you have good contact, no gaps,” he said.

Welding technique, including gun angle and travel speed, is also critical for proper welding.

“The angle of the gun determines the amount of wire and shielding gas that comes out,” he said. “If you have it tilted too much, for example, your shielding gas is not protecting the weld area as well. That’s how you get contamination into the weld.”

Perry was asked what he sees as the biggest issue for shops related to welding or other joining. He said that too often he sees technicians who think they have 20 years of experience, but really have just one year of experience 20 times.

“What he did that first year that he learned, he’s been doing that same thing over and over and over,” Perry said. “In the last 5 to 7 years, there’s been so much change in vehicles. But the average technician is 48 and has been doing it for quite some time and it’s harder to get somebody like that to make the needed changes.” (The Collision Repair Education Foundation pegs the average age of technicians in the industry at 39, though that does not negate Perry’s point.)

Perry said shops and technicians need to look to the automakers for vehicle-specific repair information.

“The OEMs were on the sideline

20 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

for a long time; the real expert repairing the vehicle was the technician,” he said. “They knew more about it than anyone else. That’s flip-flopped. The one that knows the most about the vehicle repair today is the OEM.” Perry said the automaker information seems to be getting to shop management and insurers.

“But then the technician who is actually repairing the vehicle may not get any of that information,” he said. “So he’s going to repair it the same way he’s been doing it.”

Getting shops and technicians to understand the need for the ongoing training offered by I-CAR and companies like Chief can be a challenge, Perry said. He recalls visiting a Ford dealership body shop in Texas in 2010, right after Ford introduced the 2009 F-150 which had seven different types of steel in the cab. A technician had one such pick-up on jack stands with the outer rocker cut off, trying to repair the bent

inner reinforcement.

“He had a slide hammer and was just wailing on this thing, trying to straighten it,” Perry said. “He’s sweating and saying, ‘What is this made out of?’ I said, ‘You don’t know?’ He said, ‘No. They changed something.’ ‘Yeah, they did,’ I told him.”

Perry said he explained the steel the reinforcement was made of, and the technician realized the vehicle should be up on a rack.

“I said, ‘Yeah, and you’re going to have to replace the whole piece. You can’t just straighten it,’” Perry said he told the technician. “He had no idea.

They’d been doing the same thing over and over. Understanding that they do need training is a big thing.”

www.autobodynews.com

More power for the curves, tight turns and straightaways.

The Valspar Automotive family is growing to serve you better.

Valspar Automotive has expanded, bringing more power to your business. That means you’ll have better access to more of the high-performance refinishing products you want, including advanced technology paints, coatings systems and accessories.

Plus, you’ll get the technical assistance and expert help you need, all in one place, for great results from start to refinish.

INDUSTRIAL MIX

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House of Kolor SEMA BOOTH #23513

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 21

Western Associations

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.

ASA-CO Hosts Learning Circle on Branding and Digital Marketing with Chasidy Rae Sisk

On September 21, ASA-CO hosted a Learning Circle on “Planning Your Branding and Digital Marketing Strategy.” The event was presented by Taylor Pickering, a fifth generation in the automotive industry for familyowned Pickering’s Auto Service where she has worked as the Marketing Director and Fleet Manager for the past year.

She explained, “I have worked to develop a marketing strategy and plan to propel our family-owned and operated auto repair shop from where we were when I arrived to where we envision our company being. My efforts, along with the efforts and support of Pickering’s team, have paid off substantially as far as sales and revenue are concerned year-to-date.”

Pickering contacted ASA-CO Executive Director Kari Foster about hosting a marketing session with a third-party company, but she suggested that she present the material as a future

shop owner sharing her perspective with her peers.

Pickering’s intentions “for this presentation was to help educate and provide some perspective to these fellow shop owners about marketing from a marketer’s point of view. I felt this

COLORADO

was important because, in my experience with similar educational events, automotive marketing classes are often fairly shallow when it comes to resources, strategies and planning. The wonderful thing about associationsponsored events is that they give those that want to further their education, in particular areas, the opportunity to

22 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

learn and ask questions in an environment that they otherwise would not be exposed to. What sets ASA Colorado apart in particular is that they work to have these events held by auto shop personnel who actually have applicable life experience and have a good understanding of what questions their audience is looking for answers to.

This is pertinent to the industry at large in the interest of collectively boosting our knowledge base to keep up with the exponential growth and change of technology.”

Pickering’s presentation offered a substantial amount of information on various topics, including branding, websites, online presence, direct mail marketing, email marketing, customer database integrity, data tracking, collections and reporting, ROI analysis, marketing strategy, marketing planning and spending budget and allocation. Attendees were very receptive to the information shared, asking ques-

tions and taking notes throughout the presentation.

According to Pickering, “My goal was to help auto shops to understand the key points of marketing first and then how to successfully apply them to their business model as I have done for Pickering’s. I urged them to set goals of where they want to be and strategically plan out how they intend to accomplish those goals with objectives, tactics and training. Before I got to Pickering’s there was little data analysis or marketing structure, so we just threw money at marketing to see what stuck. Now we have a budget, a strategy and a plan of how we intend to minimize our cost, increase sales and capitalize on revenue to reach our goals. Most every auto shop has a business plan, but now what they really need to plan in my opinion is how they will strategically market their business to keep that plan alive. The purpose of the event was to inform the audience

on how Pickering’s Auto Service has made successful improvements to their marketing and how they can apply the same principles to their own businesses.”

Since implementing these principles at Pickering’s Auto Service, the shop has seen a 15 percent increase in revenue, a 23 percent car count increase and an ARO decrease of -8 percent year-to-date. Their marketing expenses only account for 10 percent of their revenue.

Prior to her presentation, Pickering “researched my audience to see if the material I was covering was relevant to them. I viewed their websites, their digital and mobile presence, analyzed their local search authority and evaluated their online branding. Because all of the shops had a fairly strong online presence, I was worrisome that my presentation may not be of great use to them. However to my surprise, I am confident that each person left the event with at least a few ideas of what areas of their business and marketing they need pay more attention to or improve upon, and information on how to do so. Overall, the event truly exceeded my expectations and I look forward to facilitating many

B2B Automotive’s Michelle Nelson to Present at SEMA

B2B Automotive President Michelle Nelson has been selected to present “Don’t Let Consolidators & MSOs Steal Your Insurance Work” at the Society for Collision Repair Specialists’ Repairer Driven Education (RDE) series during SEMA. Nelson’s presentation is scheduled from 12:30-2:30 p.m., Wednesday, Nov. 4. The session will focus on helping independent auto collision repair shops successfully grow their insurance work and customer base.

“Many independent shops assume that DRPs are no longer attainable due to the market dominance of consolidators and large local MSOs. That is not the case,” Nelson said.

“Understanding what is most valued by your local insurance partners is critical to positioning yourself as a unique business partner to take back control of your DRP business.”

Nelson brings to SEMA participants more than 25 years of experience in marketing and a family tradition in the auto body industry.

To register, visit www.scrs.com/ rde. For information, contact Michelle Nelson at michelle@btobauto motive.com or 888-222-5128.

more to come if invited. This event exceed my expectation in both attendance and valuable insights to the world of marketing and how to apply it to an auto shop’s business plan. As a presenter, I also took away important information from our discussion and identified key areas of improvement in our own business.”

Pickering believes that association-sponsored events provide an opportunity to facilitate the growth of one’s own shop as well as that of one’s peers. “This is pertinent to the industry at large in the interest of keeping up with the rapid growth of technology and the role it plays in our industry.

The event went very smoothly, covering an extensive amount of information in a short amount of time. The presentation was on ‘Planning Your Branding and Digital Marketing Strategy.’ It covered how to successfully plan and implement your marketing strategy in accordance with your business goals for the overall success of your marketing efforts and ultimately your business.”

www.autobodynews.com CHECK IT OUT!

Valspar Automotive Executive Talks Strategy at SEMA

For those who own or operate a body shop and want to know how to make more money on existing sales, Valspar Automotive’s Charlie Whitaker will advertise be talkingTo during the SEMA show call understanding Advertisingprofit Sales at: about centers.

Whitaker will present “Optimizing 800-699-8251 Your Shop Sales Mix” on Nov. 6 from e-mail: 9:30 a.m.-11:30 a.m. in Upper North advertising@autobodynews.com Hall, N237, of the Las Vegas Convention Center. His presentation is one of www.autobodynews.com the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) programs being offered at the show.

Whitaker, the Quality First Technical Advisor for the U.S. market, has worked for shops and manufacturers for more than 20 years and has numerous industry and Be Seen by accreditations Our Readers! certifications. He will explain: CALLtoAdvertising Sales at: ● How produce a profit and loss statement that allows you to understand and adjust your sales mix; ● How financials correlate to operaadvertising@autobodynews.com tions and profits; and ● How to build an optimized chart of www.autobodynews.com shop accounts to measure business performance.

Register at www.semashow.com. For information about Valspar Automotive, visit www.valsparauto.com.

800-699-8251

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 23

Hey Toby!

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator.

Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Rivets Have Replaced Welding in Many Newer Vehicles — Part 2 with Toby Chess

etsinstock.com.

The counter sunk rivet is designed to sit flush on the panel. It is necessary to counter sink the hole with either a 100 degree or 120 degree counter sinking tool depending on the rivet speci-

It is extremely important that when installing rivets, that you follow the OEM procedures. If the wrong size rivets are used, it could lead to a huge failure if the vehicle is involved in another collision. To all you shop owners and managers. How many of your techs have a caliper or a micrometer? A side note. I conduct the I-CAR WCS 03 welding test and with the new test standards, the tech has to determine the size of the metal coupons to properly set their welders. Nearly 100 percent of the techs have no idea why it is necessary to know the metal thickness or even how to measure it. I bought this inexpensive gauge from Miller (See Fig. 17) and give it out to the techs that are taking the test. It is amazing to watch the techs after you show them the proper procedures. It may sound corny, but there is a sparkle in their eyes that they have this new and valuable knowledge.

Mike Hubbard is a Tesla, Aston

California Autobody Association with David McClune

Fig. 11. Cross section of a solid rivet. Courtesy of I-CAR

For part 1 of this article see last issue of Autobody News.

Viewing Fig 11, you will see that the rivet is solid. Like the SPRs, solid rivets need to have access to the backside of the panel. Unlike SPRs, a specific size hole is needed. Solid head

Year in Quotes with John Yoswick Fig. 15. 100 degree counter sink tool

Santa Ana, CA. His first operation when installing a new panel that will be bonded and riveted, is to identify and mark the position of each rivet. See Fig 18.

Still on the subject of installation, here is another tool that is necessary when riveting on aluminum.

When you punch or drill a hole in aluminum, there is a sharp raised edge

Fig. 19. Deburring Tool

Collision Repair Association of CA. with Richard Steffen

Fig. 12. Counter-sunk head

Fig. 20. Deburring a hole in aluminum

Fig. 16. SPR & Blind Rivet Diagram. Courtesy of Reliable Automotive Equipment

fied by the OEM. See Fig 15.

Rivets must be matched to the job.

(L) The length of the ‘Body’ is determined by the stack total thickness with John Yoswickplus 2mm. Therefore if the stack is Fig. 13. Round Head 4.5mm then add 2mm so the rivet length will be 6.5mm.

Sizes range from 3.5mm – 8mm in length.

The 2mm is for the correct depth in the stack and it ensures the correct profile (“mushroom”) for the joint (D) Two main sizes of the ‘Head’ 3mm and 5mm in diameter but there are other sizes. In repair Jaguar do with Karyn Hendricks use a slightly bigger head.

3mm is used on the Mini quarter Fig. 14. Flat Head panel for example whilst 5mm is used shape for solid rivets comes in many in Audi on certain parts of their repair sections. (Taken from Dave Grusko’s forms. See Fi 12,13 & 14. presentation.)

Diagrams taken from www.riv-

Transition Planning

Fig. 17. Miller Metal Thickness Gauge

Martin, Jaguar aluminum certified tech from European Motor Car Works in

that needs to removed prior to installing a solid or blind rivet. See Fig 21 for a cross section on a hole in aluminum.

If the lip or the burr is not removed, the head of the rivet will not

Shop Showcase

Shop Showcase

24 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

with David M. Brown

Fig. 21

Fig. 18. Size and location for SPRs to be installed

make full contact with the panels that are to be joined. The rivet could become loose and overtime the adhesive could See Rivets Part 2, Page 32

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 25

Media and Publicity for Shops Don’t Be Content with Sub-Par Online Content with Ed Attanasio

Most body shop marketing types know that well-written content is an important part of any successful marketing campaign. It’s like anything else, just doing it isn’t enough and content creation and management isn’t a “check box” type of thing.

For many years, body shops, from small independents all the way to massive MSOs, were reluctant to jump into the Internet game, hesitating to design top-notch sites, creating apps and committing to blogs for the long-term.

Now, shop owners and managers who previously didn’t know SEO from the CIA are 100 percent in it to win in the online game, because they’ve seen the results and benefits of having a strong Web presence.

Here are a few sage suggestions from someone who has made a living out of helping body shops and other companies and trumping their competition online. By figuring out how to create content that is getting the results they want and with numbers that are climbing all the time, WSI Connect in Concord, CA uses targeted content strategies that just plain work.

WSI Connect President Luke Middendorf’s mantra when it comes to online content is: Stay in the game and never rest on your laurels once you experience a modicum of success.

“Curating and distributing content is part of a longterm strategy,” MidWSI Connect’s dendorf said. “You President Luke should not ex-pect Middendorf uses his content creation one good blog post strategies to help to instantly lead to a body shops and new sale. Developother businesses ing good content online helps you build a relationship with your customers and prospects, as well as strengthening your alliances with your insurance companies and vendors. Over time you foster this relationship by continually producing quality content that is relevant to your line of business. Good content will encourage more people to follow your brand and then when it’s time for them to make a purchase, your business will immediately come to mind.”

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

One mistake many small compaget quickly discouraged and stop pro- for example, they will reward you nies make is that they don’t create conducing content. Once you have de- with better rankings.” tent that connects them to their veloped a strategy for curating and Rick Rehm is the IT Director customers, according to Middendorf. distributing content, stick with it. and Compliance Manager at Mike’s “Your marketing content should focus Map out your editorial calendar for Auto Body, with 13 locations in northon your customers and solvern California. He has been working ing any problems or issues with Middendorf for the past year or they may have that relate to so and the results have been phenomyour business. The best thing enal, he explained. you can do to get started is to “The most intriguing part to fix your unique selling propoLuke’s approach to our revamped sition (USP). Why should cuswebsite was his approach to create a tomers buy your products and single website for our end consumers services? What can your comand 13 locations websites built in the pany provide them? Make single website for location SEO,” your content more about probRehm said. “This way, we could crelem-solving than about self- This chart illustrates the importance of having a blog ate content that specifically addressed promotion.” the customers at each of our locations. featuring new, fresh content all the time Content should vary deWe have been able to drive traffic to pending on where you’re posting it, six months and then continually re- those specific locations from search Middendorf said. “Your blog’s content view it to ensure accuracy, timeliness engines. We have seen a 300% inshould be informative and less sales- and relevance. If Google sees that crease in traffic in a huge part to oriented. People who read blogs don’t you’re adding and changing content Luke’s efforts, due to the right content want to be sold, but you can be a little all the time and updating it regularly and in addition to the power of our more direct with the content for your as well as posting it on social media, blog.” site. It’s all about the customer’s expectations and how to deliver that to them.”

Frequency is important when it comes to web sites, blogs and e-mail newsletters. “If you put out a blog post once a month, you are not going to 2118 Padre Island Drive draw much of a following,” MiddenHours: M-F 7:00am-7:00pm dorf explained. “Another mistake in Corpus Christi, TX 78416 Sat 8:00am-5:00pm content marketing is not being consistent and planning ahead. Your company üPrompt & Dependable Delivery should be producing content regularly. üLarge Inventory of Genuine OEM Parts To ensure that you do this, you need to develop a strategy for marketing your üKnowledgeable and Courteous Parts Team content and then put it into motion.

What topics will you write about? Who will write the blogs? How often will you blog? All of these questions should be answered as you are preparing your strategy. There is a definite shift now towards inbound marketing. This involves drawing customers to you instead of your company having to go and get them. Good content is the cornerstone of an inbound marketing campaign.”

Most marketers and businesses give up on content marketing too quickly. “If you set up a plan and stick to it, you will see significant results, but it may take time,” Middendorf said. “When they don’t understand the reality of the process, it is easy to

26 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

800.242.3249

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 27

28 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

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

HO N DA T EX AS

TE XAS

LOU IS IA NA

TEX AS

Bankston Honda

Honda of Frisco

Rusty Wallis Honda

Lewis v il l e

F ri s co

Dallas

H ar v e y

800-344-8611 972-219-0021

866-442-2711 972-731-3176

877-466-3272 214-328-3891

800-943-4227 504-368-5687

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

Dept. Hours: M-F 7-7; Sat 7:30-5:30 cedgar@mcdavid.com

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

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

Benson Honda

Honda of San Marcos

Wholesale Parts Direct

Walker Honda

San A nt on io

Sa n M a rco s

A us t i n

A l ex a n d r i a

800-727-8705 210-340-0831

866-392-1313 512-392-1313

800-234-4441 512-458-2910

318-448-8255 318-445-6677

Dept. Hours: M-F 8-5; Sat 8-12 hondaparts@bensonhonda.com

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

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

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

Cleo Bay Honda

Howdy Honda

K il le e n

Au s t i n

877-253-6229 254-699-2478

877-941-6513 512-443-4300

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

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

Fenton Honda of Longview

Kelly Grimsley Honda

Lo n gv ie w

800-228-1910 903-753-5921 Dept. Hours: M-F 7:30-6; Sat 8-4 victor.ortega@fentonmotors.com

Honda Cars of McKinney M cK in ne y

972-569-4276 972-569-4222 Dept. Hours: M-F 7-7; Sat 7-5 Gene.chenault@hendrickauto.com

O de s s a

844-453-5594 432-334-6632 Dept. Hours: M-F 7:30-6; Sat 8-12 april@kellygrimsley.com

Russell & Smith Honda

OKLAHOM A

Superior Honda

N EW MEX I CO

Don Carlton Honda

Garcia Honda

Tu l s a

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800-677-6632 505-260-5002

Dept. Hours: M-Sat 7-6 hondaparts@doncarlton.com

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

Fowler Honda N o r ma n

888-715-3197 405-573-5719 Dept. Hours: M-F 7-9; Sat 8-4 parts@fowlerhonda.com

H o us t o n

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

AC U RA T EX AS

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Don Carlton Acura of Tulsa

Walker Acura

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888-824-9634 817-806-0571

Dept. Hours: M-F 7-6; Sat 7-5 hoehns@autonation.com

Dept. Hours: M-F 6-7; Sat 8-5 jguin@macchurchill.com

David McDavid Acura

Sterling McCall Acura

A u stin

H o us t o n

800-575-3553 512-401-5976

713-596-2337 713-596-2338

Acura of Baton Rouge

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

Dept. Hours: M-F 7:30-7; Sat 7:30-4 rkahl@sterlingmccallacura.com

866-733-2861 225-756-6166

David McDavid Acura Pl a no

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

M e t a ir ie

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

LOU IS IA NA

B at on Ro ug e

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

972-964-6044 Dept. Hours: M-F 7-7; Sat 8-5 dgrajczyk@mcdavid.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 29

Industry Overview with Janet Chaney

Janet Chaney has been a long-time contributor to Autobody News. She is a former body shop owner and now owns and operates Cave Creek Business Development. Chaney supports many body shop associations and looks after her clients from the Bitterroot Valley in Montana. She may be reached at jchaney.cavecreek@gmail.com

Determining Cash Values for Vehicles, An Inside Look at Mitchell’s Database Amongst Topics Covered at ABAT Event The Auto Body Association of Texas is focused on their future and saw close to 100 attendees participate in their Collision Industry Day, September 25 in downtown Fort Worth, Texas. The meeting room was lined with sponsors providing support to the

like this is to ensure that everyone who attends gets valuable information they can take back with them,” said Burl Richards, ABAT’s president. “I asked for a ‘show of hands’ from everyone that felt this was a worthwhile event and it was instant and

Industry Insight with John Yoswick

Industry Interview

A full house for the Auto Body Association of Texas

with Janet Texas collision industry and thereChaney was unanimous; everyone immediately not an empty seat to be had in the raised their hands!” classroom. The group was highly enMike Anderson of Collision Adergized and welcomed the speakers vice opened the day with, “It is the inwith rapt attention. tent of my heart to help you win.”

“Our main objective in an event Anderson’s four-hour presentation hit

the hottest industry trends and critical basic management tools. His message spoke loudly of making more gross profit by: ▪ Zero to Hero – train people faster by developing a training matrix and calendar ▪ Make your customer experience an event—using extraordinary service, speed and accuracy Always ask yourself these four questions: • Is it required?

• Is it included in any other labor operation or is it a separate operation?

• Is there a pre-determined operation in the database?

• If not, what is it worth?

He showed shops where to get substantive data to answer these questions.

“We cannot use the insurance company as an excuse for our ignorance,” he emphatically said. In closing, Anderson gave his business card and contact information to everyone

in the room and said, “TAN – Take Ac-tion Now!” After a Texas barbecue networking lunch, Robert McDorman of Vehicle Value Experts from Beaumont, Texas spoke about helping the consumer. McDorman is a third-party appraiser who assists Texas consumers in finding the actual cash value for their vehicle after an accident. This

(l to r) Body Association of Texas President Burl Richards speaks with Mike Anderson at the September 25th event in Fort Worth

may save vehicles from being a total loss when they are economically repairable by confirming the value of

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the vehicle. His consumer-based business focus is on diminished value claims, total loss value assessments and auto appraisals.

Auto Body Association of Texas Vice-President Brandon Dodd talks with a seminar attendee

“My message was designed to help shops realize that the value of the vehicle can be adjusted upward to the proper fair market value through the appraisal clause,” said McDorman.

“When the proper fair market value is used by the insurance company there will be less vehicles totaled out and more vehicles repaired, thus increasing body shop profit.”

He said that he wanted to share information with shops about presumptive value versus factual vehicle value, diminished value and how the

two will build more net profit to a shop’s bottom line and stronger customer satisfaction and loyalty.

Wayne Krause, Mitchell International’s manager of editorial content, gave the crowd a great inside look at the database that fuels their estimates. His industry knowledge and estimating expertise brought a deeper understanding to this audience of the inner workings of creating the database that is so important to their business. Krause showed a multitude of resources that Mitchell uses to keep their database current. They are actively working with manufacturers, “We are writing our database as the manufacturers are building the cars,” Krause said. The audience also learned that Mitchell is the only information provider that does time studies, inviting Texas shops to be part of the time study process. Krause’s presentation opened the eyes of many in the audience as to the technical information and accuracy of times provided in the Mitchell database. “If you don’t think a time is correct,” Krause states, “Call me and let’s talk!” He gave his phone number to the crowd and is looking forward to great conversation coming from Texas.

“This is the last of the great American family industries,” opened Frank LaViola of Enterprise Rent-A-Car. “There are over 90,000 employees in this industry today.” LaViola spoke to the history of Enterprise Rent-A-Car and its commitment to the collision industry. He introduced the Enterprise ARMS system, which offers statistical

(l to r) Speakers Frank LaViola, Enterprise RentA-Car, Wayne Krause, Mitchell International, and Mike Anderson, Collision Advice smiles reflect the enthusiastic day

data to shops regarding cycle time and length of rental. LaViola showed shop owners how Enterprise’s length of rental can be used as an industry KPI. Using the length of rental data offers industry comparison by region, state, or nationally by Enterprise. LaViola’s presentation showed true benefit to this KPI: more cars in and out of the shop;

more or new DRPs—or NOT; more profit for the shop; higher pay for techs and employees and happier customers!

This was a high-energy, positive and meaningful day for the Texas collision industry. “Texas is a large state and we have an opportunity to help grow not only our association but the knowledge and education that can be shared to shops around the state,” said Richards. “This will make each of us better, stronger and more profitable as it relates to our business and safer repairs for our customers’ vehicles.”

The meeting was held at the Historic Fort Worth Hilton, where President John F. Kennedy spent the last night of his life, November 21, 1963.

He spoke the next morning in the Crystal Ballroom before he left for Dallas. This was exactly the same ballroom where the Auto Body Association of Texas held this meeting. The Texas spirit is alive and well with the Auto Body Association of Texas and continues to resonant in the halls and with the message John F. Kennedy left the city with, “There are no faint hearts in Fort Worth.”

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Continued from Page 24

Rivets Part 2

also loose some of strength due to vibration and movement. If the vehicle is again in another collision, this area could become a weak point in the distribution of the collision energy. Finally on solid rivets, the same tools for installing SPRs can be used for solid rivets, but you will need to change the madrels. The same holds true for removal. Moving on to the blind rivets.

The correct blind rivet is paramount in a proper and safe repair. Take a look at the next set of pictures to see what I mean.

You will notice that there is no much difference on the front side.

Fig. 22. Showing the front side of the panels using a Hemlock Blind Rivet and Garden variety pop rivet (these came from Home Depot)

Now look at Figs 23 &24 which are the back side of the panels.

You don’t have to be a rocket scientist to see the difference. These pic-

for installation and it is not necessary to have access to the backside. A repair shop called one my contacts who furnish riveting tools. The shop was complaining that his rivet gun did not work on the back panel of the bedside of the F150. It seems that the A-arm on the gun would not reach all of the attachment points for installing the SPRs. You will notice that the front panel is install with 3 different blind rivets and not with SPR. As I previously stated, you can not repair these new vehicles without the OEM recommend procedures, specific training and correct

Fig. 28. Problems that occur with the wrong rivet used http://electricalequipment.tpub.com

against the backside of the panel. This rivet has high shear and tensile properties and fills the hole. This rivet is excellent for holes that are slightly larger than the recommended hole. See Fig 26.

These are used where there is no access to the inner panel, so the rivet gun must work from one side only. A hole has to be drilled the size of the rivet head, eg for a 6.5 mm rivet, a 6.7 mm hole must be drilled.

The length of the headform must be long enough, 2mm longer than the overall thickness of the stack and be long enough to clamp the panels together. The shape of the headform will be decided by the job required. A countersunk headform will fit into a countersunk hole. The breaking point of the Fig. 25. Furnished by I-CAR as part of their FOR 06 Class mandrel must be correct. e.g. tools and proper use of those tools.

This is a disaster in the making and you better be ready. Enough on my soap box. Lets look at the Monobolt.

A monobolt is a specific type of blind rivet. The mandrel is pulled into the cylinder and expands the cylinder

used. (Recommended RIBE). This is dictated by the car manufacturer.

(Taken from Dave Grusko’s presentation.)

Again, you need to look at the OEM repair data to determine the proper blind rivet. In Fig 28, you can see the problems that occur when the wrong blind rivet is used.

The other type of blind rivet that is being used in the collision repair process is the hemlock rivet. Fig 29.

This rivet also need a hole for installation and does not need access the backside of the panel. The mandrel is pulled over the rivet body and the entire rivet is compressed against the rear

Fig. 29. Cross section of a Hemlock Rivet.

Courtsey of I-CAR

panel. See Fig 30 for the sequence.

There is a large footprint on the back panel and this rivet has superior tensile and shear strength. Moreover,

Fig. 23. Back side of the panel with Hemlock Rivet Fig. 30. Diagram on how a monobolt works.

Coutesy of www.ejot-avdel

Fig. 26. Monobolt cross section. Courtesy of I-CAR Fig. 24. Back side of the panel with pop rivets installed

tures are self-explanatory. We will look at the Monobolt and Hemlock blind rivets.

It should be noted that a proper hole as specified by the OEM in needed

Fig. 26a. Diagram on how a monobolt works.

Coutesy of www.ejot-avdel

32 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Fig. 27. Terms used for blind rivets. Courtsey of Dave Gruskos

On the repair of a MB Sill section, rivets with 1.9 ton breaking point must be

this rivet is highly recommended for thinner pieces of sheet metal.

The third part of this article will discuss the various types of rivet guns, advantages of FFR rivets, adhesive preparation and a few of the vehicle repair procedures for replacing parts with adhesives and rivets. Did you think this article was a riveting experience?

www.autobodynews.com CHECK IT OUT!

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 33

Equalizer Distributor Pilkington Holds Customer Appreciation Event in San Diego

Pilkington North America manufactures and markets glass and glazing products for the architectural and automotive markets. The company held a customer appreciation event in September.

During the event, Pilkington set-up tables for auto glass industry vendors to showcase their current products. Pilkington’s customers in San Diego and sur-

Shauna Davis of Equalizer removed a windshield on a 2014 Chevy Malibu using the company’s latest cut out tool, the Viper

rounding areas had the opportunity to visit each table and interact with vendors.

Pilkington brought in a caterer for dinner, and three vendors conducted live demonstrations. Shauna Davis with Equalizer Auto Glass Tools, removed a windshield without damage to the car or glass on a 2014 Chevy Malibu using Equalizer’s latest cut-out tool, the Viper.

Lisa Deuster, with Lil-Buddy,

performed a demonstration of their oneman setting device, Lil-Buddy Pro. Aegis’, Mark Daniels, also performed a demonstration on Aegis’ one-man setting device, the SOLO Neo. To conclude the event, Pilkington chose the winning customer tickets for the door prizes that were donated. Door prizes consisted of tools, adhesive, gift cards, and a big screen television.

Equalizer was founded by a single auto glass tool invention from Ray Asbery in 1987. “To date, we now have more than 1,000 products that make a technician’s job easier,” said Davis. The company has also coordinated a great inventors program that allows technicians to design tools that Equalizer can bring to market. Davis said that Equalizer is always working on new products, and recently brought to market an updated reusable Cord, RipCord, to be used with the company’s Viper Cut Out Tool. Other products include a Ford backseat release tool, and new square wire that, like the RipCord, is also strong enough to cut the factory setting clips.

For more information on Equalizer products, visit www.equalizer.com or contact Shauna Davis: Sales@equalizer .com or 800-334-1334. To contact Pilkington, visit: www.pilkington.com or call 614-801-5900.

34 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

ASA Collision Division Reports on Two New Publications, Operations Committee on Feather Prime and Block

• The ASA Collision Division Operations Committee has been busy. Since its last report, it has compiled, organized and launched two new ASA publications to assist collision shops in writing a complete estimate. The ASA “Documented Collision Repair Operations” and “Reference Chart of NotIncluded Operations when Installing New Replacement Parts” are available for download on the ASA website.

These helpful guides are offered by ASA (www. asashop.org) as a service to the industry. We’d also like to offer special thanks to Mike Anderson for doing a lot of the heavy lifting on this project.

Committee Continues Efforts on Feather Prime Block Issue • The Collision Division Operations Committee continues its efforts with the information providers on the Feather Prime & Block issue. FP&B has already been incorporated into the Audatex estimating system, and we will continue to encourage all information providers to do the same. We also have reached out to the Database Enhancement Gateway for its help with a project involving unpainted parts to provide a listing of raw plastic parts for inclusion

with other ASA documents available free to the industry to aid in the estimating process.

• The Ops Committee met at NACE, which provided the opportunity to invite industry partners for a productive meet-and-greet discussion on a variety of topics. It was a great way to continue our industry dialogue into 2016 and to thank them for their support of the committee’s mission. ASA Chairman Donny Seyfer, AAM, brought them up to speed on the telematics issue, while Robert L. Redding Jr., ASA’s Washington, D.C., representative, outlined the legislative picture for the rest of the year and into 2016.

The committee members also discussed and approved a more streamlined approach to the subcommittee structure.

• While at NACE, Ops Committee Chairman Scott Benavidez, AAM, presented Dan Stander, AAM, with the 2015 ASA Phoenix Award. “Dan has demonstrated consistent commitment and support for our industry and ASA,” Scott said in his presentation.

“He has been a great friend and mentor to me and many others in the industry. He is truly one of our industry heroes!”

Historical Snapshot

—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.

SCRS Survey, Airbag Testing Technology, Total Loss Pandemic, NSF International with John Yoswick

easy to use. You don’t have to really un20 years ago in the collision repair derstand how they work or learn a lot industry (November 1995) terminology. And most importantly, A recent nationalwith survey of collision Chasidy Rae ofSisk repair shops found that the suppliers shop owners say, the right computer of computerized estimating and shop system is perhaps the single most immanagement software still have a portant tool a shop can use to increase sales, productivity and profit. huge untapped market.

– As reported in Automotive The survey of 801 collision repair shops, conducted by the Society of Journal. Twenty years later no one Chasidy Rae would Sisk probably argue that “it is by no Collision Repairwith Specialists (SCRS) found that about 64 percent of shops means necessary to computerize to have an estimating system capable of succeed in the industry.” producing “P-page logic” estimates.

Why haven’t four out of 10 shops 15 years ago in the collision repair entered the computer market? A lack of industry (November 2000) understanding of computers, concerns A new company plans to be testing and with Chasidy Rae certifying Sisk salvage airbag modules for about cost, and a lack of time for choosing a system and getting trained are the reuse in vehicles by early next year.

Peter Byrne, president of Airbag reasons “computer-less” shop owners Testing Technology, speaking at the cite.

All these arguments are valid to Collision Industry Conference (CIC) one degree or another. And it is by no in Nashville, TN, said his Ohio-based with Chasidy Rae company Sisk verified its testing process means necessary to computerize to sucthis past summer and will begin certiceed in the industry. But computer systems are increasingly affordable and fying salvage airbag modules in one

Associations Assembling Southeast News

Western Associations

Southwest Associations Southeast Associations with Chasidy Rae Sisk

or more Canadian provinces in 2001.

He said the company plans to later move into other markets – including the United States.

Byrne said the testing process includes checking for proper electrical integrity and resistance; checking the mechanical fasteners and cosmetic appearance of the module; ensuring that no foreign matter (such as glass) has entered the cushion cavity; and checking for surface levels of sodium or calcium that would indicate the module had been immersed in water and is thus unusable. Byrne said it is only immersion in water – not exposure to atmospheric humidity or rain – that impacts a module’s performance. His company’s test, he said, can detect immersion even if it occurred years previously.

The company conducted tests on 68 Ford Taurus airbag modules (58 salvage modules, and 10 new modules used for comparison) this past summer at a research facility in British

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Columbia, Canada, to verify its testing procedures. All of the modules were successfully deployed following the certification testing.

Byrne said the company expects the initial market for its certified modules to be in the three Canadian provinces with government-run insurance monopolies – followed by the non-insurance-paid repair market in the United States.

“We recognize that it will take a long time for the insurance-paid section of the marketplace to come around to this,” Byrne said, acknowledging the liability concerns for shops and insurers.

– As reported in Autobody News.

Byrne was right that use of salvaged airbags has been adopted by some Canadian insurers that largely have control of the vehicle from the time it is totaled to when it is dismantled. But no U.S. insurers are calling for the use of such modules.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 35

Wedge Clamp Systems Opens U.S. Location After 30 Years of International Distribution

by Victoria Antonelli, Online Editor

years ago that makes the most of every square foot. With prices rising in the U.S., body shops that make the transition to Wedge Clamp Systems can also save money and increase production.

“Everyone is looking at their square footage thinking, ‘How can I make the most money by utilizing this small space? By having a rack or bench system, the space is only being used 10-20 percent of the time, which leaves that floor space unusable for 80-90 percent of the time. That floor space is dead money to shop owners.”

Compared to bench top repair systems, which tend to be costly and space consuming, the Wedge Clamp System is lightweight and affordable, and stores in much less space because many components hang on the wall, according to a company press release.

“With Wedge Clamp you can use 100 percent of the space 100 percent of the time,” added Peter. “It takes one person 10 minutes to set up Wedge Clamp floor systems; I can set it up in my suit in 15 minutes without getting dirty.”

The so-called ‘express shops’ dealing in relatively light damage represents a particularly rich sales opportunity, Peter said.

“They get cars with what looks like minor damage, but once they pull the bumper or quarter panel, they often discover there has been frame damage

Craftsman Collision, an MSO with 36 shops in Canada and owner of Wedge Clamp Systems, opened its first U.S. location in Long Beach, CA. On August 20, a grand opening was held for both Craftsman Collision USA and Wedge Clamp Systems.

During the opening day luncheon, car dealers, body shop owners and insurance company representatives had the opportunity to tour Wedge Clamp’s the 30,000-squareChief Operating foot-facility, and Officer for the United States, learn about the cenPeter Allan terpiece equipment, Wedge Clamp Systems, which consists of lightweight, portable anchoring, measuring, and pulling tools.

“They all loved it,” said Peter Allan, Wedge Clamp’s Chief Operating Officer for the United States. “Some very important insurance people were here for the luncheon, including reps from three of the major insurance companies — AAA, Allstate and Mercury.”

Craftsman is the largest independent body shop chain in North America, and has used Wedge Clamp Systems since day one, according to owner Bill Hatswell. Canada isn’t the only country that has reaped the benefits of Wedge Clamp Systems; the products have been utilized in 17 locations, including Russia, China, South Africa, Australia, and Saudi Arabia.

“It has always been Bill’s vision to bring the product to the U.S.,” said Peter.

Wedge Clamp Systems USA Office is being run by Peter and Craftsman Collision USA is being run by Melanie Allan—Hatswell’s daughter. The couple previously lived in Sydney, Aus- Wedge Clamp’s Chief Operating Officer for Canada, Rodica tralia, and agreed they would Matei, poses with a Stat-Gun during the opening day run a shop if it was located luncheon on August 20 somewhere with a similar climate to as well. They don’t have a rack system their home, and sunny Southern Calito fix it, and they don’t want to have to fornia passed the test. flatbed it to another shop. So now in“Wedgeclamp has an 80 percent stead of the high cost of buying a rack, market share in BC, Canada and we they can use the Wedge Clamp EZE have over 23,000 systems in use worldTie Down system,” he explained. wide,” said Peter.

The week before the grand openHe went on to explain that the ing, Peter met with Caliber Collision, high cost of space in Canada is what who was looking for a system that will inspired the creation of a system 30 get cars out in two days. He added that

36 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

other “big players” in the industry have also shown interest.

“Our main goal right now is to get a really strong foothold in Southern California; from Los Angeles down to San Diego,” said Peter. “Northern California will hear about it, and eventually it will spread across the country.”

One of the Wedge Clamp floor systems at Craftsman Collision in Long Beach, CA

In addition to its California address and Richmond, BC head office, Wedge Clamp has a facility in Suzhou, China.

The company’s recent growth comes with an expanded product lineup including distribution of the Eclipse laser frame-measuring system and the StatGun anti-static paint preparation tool, which Caliber Collision is currently

testing at their facilities.

“The anti-static gun removes 100 percent static from anything you’re painting,” said Peter. “It also gets rid of tiger striping and halos when you’re spraying, and leaves no dust.”

BASF Automotive Refinish demoed the nitrogen spraying system, NitroHeat at the August 20 event.

“By using 98 percent pure nitrogen, you will actually find that you can turn the pressure on the air gun down, allowing for 15 percent savings,” explained Peter. “In reality, you can save 20-30 percent in paint per job, making flash times 20-30 percent better; 30 percent if it’s water-based, 20 percent if it’s solvent-based. So, you’ll be completing more jobs, yet using less paint per job.” He added that users will see pay back on the system in about nine months.

“Wedge Clamp Systems do not break—we know of shops that have been using the same product for over 20 years—so you only have to buy it once,” Peter said.

For more information, phone 1800-615-9949, visit www.wedgeclamp .com or email info@wedgeclamp.com.

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Day Job/Night Job

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

Body Shop Owner in IA Restores Cars Part-Time While Saving Lives Full-Time with Ed Attanasio

As a paramedic for Ottumwa Regional Health Center in Ottumwa, IA, Steve West, age 74, could be one of the oldest active emergency medical technicians in Iowa. For the past 34 years, he has been saving lives three days a week and during the rest of the week he restores primarily classic cars at his small body shop.

After working at body shops as a teenager, West decided to go back to school and become a certified paramedic to serve the community and make a difference. “My brother died in a car accident many years ago, and I have always wondered if things could have been different if someone with this kind of training had been present,” he said. “We work with people in emergency situations and in many cases they are lives on the line.

Being able to make a personal connection to patients quickly is important to build trust and be able to help them.”

West encounters people all the time who are grateful for his role as one of Ottumwa’s four paramedics.

“I’ve saved a few lives over the years and I see some of them here in town, which is obviously satisfying,” he said. “There are only 40,000 people

West is currently restoring this 1968 Mustang

here in Ottumwa, so it’s not a big place. One man had no pulse and we brought him back and then later he thanked me personally. It meant a lot.”

West is proud of both of his jobs and what he has achieved in his life.

“I’ve been painting cars my entire life pretty much and I worked for numerous shops around here over the years.

I’ve painted murals and worked on some amazing vehicles and I still have a passion for it. Being able to balance

both jobs, as a body shop guy and a paramedic—it’s a great life and I would not change it for the world.”

Today, West runs a small car restoration company called Color-

Steve West, 74, is a paramedic for Ottumwa Regional Health Center in Ottumwa, IA who also owns a small body shop where he restores classic cars. He is likely the oldest emergency medical technician in the state of Iowa

graphics, located in Blakesburg, IA, 20 miles outside of Ottumwa, where he does just everything except mechanical repair and upholstery. “I can do the entire car or sub out different aspects of the restoration. I really enjoy doing the graphics; using multiple colors and spraying PPG.” Some of West’s restorations and paint jobs have appeared in national magazines and he has had a few celebrity clients over the years too, he said.

“I’ve done some really classic cars and right now I am working on a 1968 Ford Mustang.

A few years ago, I did a few vehicles for local drag racer Tommy Johnson, Sr. and he was great to work with.”

West’s work schedule as a paramedic allows him to take off four days every week, which gives him ample time to restore cars and make a few repairs, on occasion. “I work 7 a.m. to 7 p.m. three days every week as a paramedic and then I use the other four days to work on cars,” West said. “It works out well, because I can get into a job and I don’t have to start and stop.”

West’s wife Peggy is also a paramedic, so they work a lot together, he explained. “We work in teams of two and Peggy is usually working with me.

It’s nice, because we get along well and enjoy working with each other.”

West has seen a few shootings and

38 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

a few serious car accidents, but he is happy to say that fatal collisions are less frequent than when he started.

“More and more people walk away, primarily because of the fact that these newer cars are so much safer than say a decade ago,” he said. “Most of the accidents we see now are not critical and that’s a major deal. Our job is to help people and save their lives, so fatalities are something we want to avoid for obvious reasons. No one wants anyone to die on your shift, that’s sure.”

Eight years ago, West got a scare when he found out that he had cancer.

But today he is cancer-free and has no plans to retire. “It was a lucky thing, because the hospital gives us a complete physical every year as one of the requirements of the job and in 2007, they found prostate cancer just in time.

Some people have told me that I probably built up some good karma working as a paramedic, and maybe that is true, who knows?”

A large number of all the car accident calls that West and Peggy respond to are often deer-related, he said.

“Iowa has a lot of deer and that’s why we’re number four in the country when it comes to accidents involving deer. They’re like cattle, but they move

West works three, 12-hour days as a paramedic and then uses the other four days to work at Colorgraphics, in Blakesburg, IA

faster and they don’t look both ways before they cross the road.”

Doing restorations when he isn’t saving lives at a paramedic is a nice situation for West. While most people are already retired or considering it,

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West is happy to be right where he is.

“I like the fact that I don’t have to deal with the insurance companies, in www.autobodynews.com most cases. Every once in a while I CHECK IT OUT! will get a collision repair in here, and that’s fine, but my main focus is restoring cars for people. With collision repairs, the insurance companies want it now, but with restorations, the customers aren’t usually breathing down my neck to get it done.”

What does the future hold for To advertise West? “I may cut back my paramedic call Advertising Sales at: schedule when I turn 75, but really I 800-699-8251 have no plans to retire completely,” he said. “I love helping people and I e-mail: advertising@autobodynews.com know I can work on cars as long as I want, so why change anything. Many www.autobodynews.com people don’t like their jobs, but I have two and I like them both… a lot!”

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Promote your business with an article Daveexclusive McClelland to featuring Host Final SEMA Awards Banquet Chief Videos Show How to Hold a your products or services.

Dave McClelland, the renowned an- thing. I take great pride in doing the Vehicle for Sectioning or Pulling nouncer who began emceeing the best job that I can do.”

The source for timely With more than 50 components, the SEMA Awards Banquet in 1976 when While McClelland stopped aninformation that every Chief Automotive Technologies Structhe SEMA Show was in Anaheim, Cal- nouncing for the NHRA in 2003, he tural Holding Packageneeds! offers many body shop ifornia, is stepping down from the continued to emcee the SEMA Awards ways to secure a collision-damaged podium and will host his final SEMA Banquet and never missed a single year.

Call for details! vehicle to a frame rack for repair. In Awards Banquet, Thursday, November As host, he introduced and stood alongCALL 800-699-8251 order to show users some of the possi5. Known by many as the golden voice side the industry’s most celebrated lead800-699-8251 bilities, Chief has created a video sethat presided over the NHRA races for ers, including SEMA Hall of Fame ries hosted by Richard Perry, OEM decades, McClelland entertained thou- members, SEMA Persons of the Year Mail Subscription and strategic account sales manager. sands for 40 continuous years as he in- and entertainers, such as Jay Leno, SinThe videos can be viewed at www bad, the Beach Boys and Willie Nelson. .chiefautomotive.com/Fixture“Every once in a while, we get to Holding/Structural-Holding and on be a part of the magic that happens Chief’s video library page. when exactly the right person is per“No matter if you are sectionforming in a particular role. So it has ing or pulling, it is imperative that Your Email for Our been for all of us in the SEMA commuRegister the vehicle is securely held during nity who have enjoyed Dave’s special the repair,” says Perry. “Supplementalent, blended with his deep familiarity tal holding points on the frame rack and involvement with the people in our keep the vehicle from moving out of industry,” said Chris Kersting, SEMA Dave McClelland will host his final SEMA place, and alsowww.autobodynews.com facilitate the multipresident and CEO. “Dave has always Awards Banquet, Thursday, November 5, point pulls that may be required to imparted a level of care and excellence 2015, in Las Vegas return a vehicle to OEM specificabefitting the many folks he has helped tions. Chief’s Structural Holding troduced leaders, legends and icons SEMA honor over the years. He is dePackage is effective with body-on- Yourduring Register Email for Our the SEMA Awards Banquet. serving of our deep appreciation.” frame and unibody vehicles, and our “It’s very difficult to make this deTickets to the SEMA Awards new video series shows how to cre4 Times Monthly cision [to stopE-Newsletter announcing the SEMA Banquet are available online. More ate holding points for each type.”

Awards Banquet] because I have the ut- than 3,000 are expected to attend the To watch the video series or learn most respect for SEMA,” said McClel- event, An autograph signing will take www.autobodynews.com more about the Structural Holding land, who compares his 40-year stint place, Tuesday–Wednesday, NovemPackage, visit www.chiefautomotive with SEMA to that of Vin Scully with ber 3–4, from 10:30–11:30 a.m., and .com/Fixture-Holding/Structuralthe Dodgers. “Announcing the SEMA 1–2:00 p.m., in the Grand Lobby of the Holding.

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MSOs, Independent Shops and Businesses Raise Money and Awareness for Breast Cancer

by Stacey Phillips

The collision repair industry is demonstrating its support of Breast Cancer Awareness month this October both locally and nationally by raising money and increasing awareness. This includes holding fundraisers, buying t-shirts and spreading the word about early detection.

Service King is partnering with the National Breast Cancer Foundation (NBCF) for the second year in a row and has themed its campaign, “Elimi-

Service King helped promote the National Breast Cancer Foundation’s Early Detection Plan mobile app, which is available for the iPhone and Android in both English and Spanish

nate Breast Cancer.” “Service King has always been active in supporting local communities,” said Danny Briones, Service King’s director of advertising.

“This particular effort is something that allows our entire organization to unite in support of the National Breast Foundation and its mission of Helping Women Now.” Last year, Service King employees raised $112,000 in support of breast cancer by purchasing pink “Eliminate Breast Cancer” t-shirts. Service King then matched each donation.

In addition to selling t-shirts this year, the company is raising funds through four high school football tailgating events themed Friday Night for the Fight.

Part of the campaign also includes promoting the NBCF’s early detection app to help spread the word about the importance of early detection. “This was inspired when we learned that the five-year relative survival rate of breast cancer patients is 100 percent if the disease is detected early in the localized stage,” said Briones. “This mobile app is an incredible tool to help build an early detection plan.”

“The Eliminate Breast Cancer campaign illustrates our teammates’ remarkable passion behind this cause,” said Chris Abraham, CEO of Service King. “The response each year has been nothing short of inspirational as we’ve been able to support the National Breast Cancer Foundation and its mission to help women now. Service King’s purpose through this has been to do our small part in spreading hope to those who need it most.”

In Bristol, CT, CARSTAR Ray’s Auto Body is sponsoring a “Sign the Beetle Campaign.” Proceeds will go to the Susan G. Komen Foundation.

As part of its awareness campaign, CARSTAR Ray’s Auto Body in Bristol, CT is asking customers to sign the shop’s promotional pink vintage Volkswagen Beetle

With every vehicle the shop repairs in October, CARSTAR Ray’s will make a donation in that customer’s name.

Customers will be asked to sign the shop’s promotional pink vintage Volkswagen Beetle. The retro Beetle is custom-painted pink in a rubberized Plasti Dip Coating to represent the signature pink color for breast cancer awareness.

“Our goal is to have the entire car covered in signatures,” said Michael Ferrucci, manager of CARSTAR Ray’s Auto Body. “We hope the pink Beetle will draw a lot of attention to Breast Cancer Awareness Month and look forward to making a donation on behalf of our customers.”

The shop will also be accepting donations throughout October.

More than 200 independent shops across 34 states are taking part in “Brakes for Breasts.” Established by

40 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Leigh Anne Best and Laura Frank in 2011 with 10 shops in Ohio, the initiative has raised a total of $224,585 over the last four years. The first year, the 10 shops raised $10,000 and the organization has doubled its growth every year for the last four years.

All shops run the same program.

“They get their parts supplier to provide free brake pads or shoes and in return promise to increase the business they send to their supplier exponentially that month,” said Best. “The extra business for them helps to offset the cost of the brake pads.”

The shop then passes on the free brake pads or shoes to the client and he or she pays for the labor and costs to complete the job. The shop then donates 10 percent of the parts and labor total to The Cleveland Breast Cancer Vaccine Fund.

All proceeds go directly to this fund to pay for research by Dr. Tuohy and his team. “After 13 long years, we are less than a year away from beside trials for the triple negative breast cancer gene, the gene that leaves one with little or no hope,” said Best. The research also helps develop vaccines for other breast cancer genes, ovarian and prostate cancer.

This is the first year Clovis Auto Shop, located in Clovis, CA, is participating in Brakes for Breast. “We chose Brakes for Breasts because it is different from all other Breast Cancer Awareness campaigns,” said Rob Porcella, the owner of Clovis Auto Shop.

“Our hope and vision is to no longer have Breast Cancer Awareness Month, but instead have a vaccine available for women that prevents breast cancer altogether.”

Porcella said his shop’s goal is to perform 30 brake jobs during October with a total revenue of $7,500. Employees have been spreading the word throughout the community by sending out press releases, email blasts, posting on social media sites and exposure through KMJ radio and KSEE24 News.

“God has blessed me with a healthy and prosperous business and I chose to honor God by staying involved in the community and helping those in need,” said Porcella. “My staff and I work diligently for the future success of Clovis Auto Shop and the ability to continue blessing the lives of others.”

In addition to collision repair shops, businesses throughout the in-

dustry are also showing support during Breast Cancer Awareness Month.

MacTools, based in Westerville, Ohio, has supported The Stefanie Spielman Fund for Breast Cancer Research in the United States and the Breast Can-

Vince Ceballos, Service Manager; Teresa Sardina, KSEE24 Sunrise Reporter; Rob Porcella, Owner ; Chris Brewer, Service Advisor and George Garnica, KSEE24 Sunrise Camera Man stand in front of Clovis Auto Shop in Clovis, CA

cer Society of Canada since 2012 through the company’s own “Wrenching for a Cure” program.

The goal is to raise awareness for breast cancer research and donate a portion of the proceeds to the cause.

“To promote awareness for Wrenching for the Cure we utilized our partnership with Kalitta Motorsports and Doug Kalitta during the month of Oc-

MAC Tools’ newly wrapped top fuel dragster displaying the company’s Wrenching for a Cure branding

tober while our product team designed a great looking, limited edition tool box to sell to technicians,” said Brett Shaw, president of Mac Tools.

Top fuel driver Doug Kaltita and his crew will wear matching breast cancer awareness crew shirts and unveil a pink dragster displaying Mac Tool’s Wrenching for a Cure branding.

The MB1000A-BCA is a tech series box featuring a carbon gray cabinet with BCA pink drawers, which includes the Wrenching for a Cure Branding.

“So many people are impacted by cancer every day,” said Shaw. “This is our way of giving towards research so hopefully there will be a day when ‘so many’ become ‘so few.”

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 41

What to Do if You Suspect Substance Abuse in Your Shop

by Ed Attanasio

If you’ve owned or managed a shop for more than a decade, you’ve likely encountered one or more employees who had issues with alcohol or drugs. Discovering the problem and then figuring out the right strategy to deal with it can be tricky.

Candy Finnigan is one of the interventionists featured on the Emmynominated reality show Intervention (A&E) and the author of When Enough is Enough. In this interview, we discussed the effectiveness and success rate of interventions while she provided her insights into drugs in the workplace.

Q:

Of all the interventions you’ve done on the show, have there been any people associated with the collision repair industry?

A:

Yes, we had one individual a few years ago who lived in the San Diego, CA area and his entire family was in the body shop business in some capacity. The father was working at a shop and going down to Tijuana, Mexico to get parts to re-sell, but he was also picking back more than just parts. He was using the money from the parts to feed his addiction and keep it going.

What addictions are you norQ: mally finding in the automotive repair industry?

Well, drinking has always been an accepted thing, whether it’s A: getting a six-pack after work when the

shop is closed or everyone going to a bar after hours. It’s been ingrained in this industry and many people don’t see it as a problem. The bigger companies, such as the car dealerships and the larger shop chains do regular drug testing, but with a lot of these smaller, independent shops, these types of things can easily fall through the cracks.

Some companies also check their employees’ credit scores, because if someone has a bad credit rating, they sometimes have been involved in something illegal.

Booze and pot are everywhere and one body shop owner told me that they’re not as concerned about marijuana, except for the fact that employees smoking weed are more apt to take naps and snack all the time. Opiates have never been a big concern for the

collision industry, because a pill popper wouldn’t even be able to function in a shop. So speed is the real offender and the most common drug we find in the automotive repair industry as a whole.

Drugs can be a Candy Finnigan part-time problem is one of the interventionists for a while and at featured on the first maybe they Emmy-nominated work with a couple reality show of beers or on the Intervention (A&E) weekends for most and the author of When Enough people. Users are is Enough attracted to many of these drugs, because they can allow them to stay up late and either party more or work more, depending. But, then it usually escalates and becomes a full-blown addiction.

What should a body shop Q: owner or manager do when he or she notices that drugs are in their shop?

It’s a gradual thing and this is how it usually happens. First, A: people will start showing up late for

work. That seems to be the first sign, especially if someone who used to come in on time, but now they’re chronically coming in late. This is a problem, because that means they will rush through jobs to make up for the lost time and of course they start making mistakes. Two things will likely become apparent here, because they will either start doing bad work or they get so obsessed with a job that they don’t get it done on time. They get hyper focused on the job and will sand or buff one hood for hours and hours, for example. They spend so much effort and time on a job that the shop loses money and rather quickly it can affect the bottom line. It can also impact the shop’s safety, because if you’re under a car and relying on a drugged employee to help you, that’s obviously a very potentially dangerous situation to be in. That’s when the body shop managers and/or owners need to step in, because they should see that this individual is bringing the entire shop down.

Q:

Once a shop owner or manager knows that an employee is on drugs, what is the next step?

42 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

The first thing is to sit them A: down and tell them they need to get help. If they refuse the help, then

you have the right to fire them. If they do agree to get the help, you may or not be forced to pay for their rehab (depending on the laws in your state). You may also be covered by your insurance, because more and more insurance companies are back in the rehab business after many years of being out. If the employee in question goes to rehab, you have to hold their position and their pay for 60 days. And it needs to be documented by the rehab people, to make sure they’re actually getting help.

Is there any way that a conQ: sumer can know if a body shop fixing their car has a substance prob-

lem amongst their crew?

If you see the lights on late at A: night at a body shop, there is likely something sketchy going on.

In some areas, consumers have the drug problems as well and you’re having addicts getting cars fixed by addicts. The problem is that the work is not guaranteed and there is really nothing you can do if the work is shoddy.

Q: Do interventions really work?

Yes, definitely. I tell people that an intervention is one of the A: most profound acts of love that any-

one can do for someone else. This is what we see and that’s what we know.

Whatever the person has done before to get clean hasn’t worked and that’s why we do the interventions. Interventions don’t fail; people fail, but it is very rare. We have a 98 percent success rate with interventions, so yes I would say they do work.

They’re actually called “tweaker shops” and there are more than just a handful of them all over the country. One addict told me that you can get your car fixed in just 12 hours at those types of shops!

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Ladies of NHRA Racing to Highlight 2015 SEMA Show Breakfast

The 2015 NHRA Breakfast at SEMA will celebrate the success of women in drag racing. Featured drivers will include Erica Enders, Courtney Force, Alexis DeJoria, Leah Pritchett and legendary Shirley Muldowney.

The popular annual event has showcased many of NHRA’s legendary drivers, team owners and other characters within the sport. NHRA will bring together some of its most successful women in the NHRA Mello Yello Drag Racing Series and they will discuss Shirley Muldowney their memories and legacies.

Enders is the defending Pro Stock world champion, having won her title in over Jason Line at the season-ending Auto Club NHRA Finals. The win made her only the third female driver to win an NHRA professional championship. She has 19 career victories, including this year’s Chevrolet Performance U.S. Nationals at Indianapolis, which puts her second on the all-time wins list by women behind only Pro Stock Motorcycle’s Angelle Sampey.

Force, the youngest daughter of 16-time Funny Car world champ John Force, is creating her own legacy in Funny Car. She has seven career victories, making her the winningest female Funny Car driver ever. Force is also the only female Funny Car driver to record four wins in a season. Her biggest win came in 2013 when she won the season-opening Circle K NHRA Winternationals. Force was also the 2012 Automobile Club of Southern California Road to the Future Award winner.

DeJoria has also made a name for herself in the Funny Car ranks. The daughter of Paul Mitchell Hair Care Products and Patron Tequila owner John Paul DeJoria, DeJoria is a threetime winner in the Mello Yello Series.

She made history in 2014, becoming the second female in Funny Car to win the Chevrolet Performance U.S. Nationals in Indianapolis. DeJoria also became the Alexis DeJoria first Funny Car female to run a sub-three-second pass, achieving the feat at the season-opening event in Pomona in 2014.

Pritchett is a name to watch in the future in Top Fuel.

She has started to make consistent runs on her parttime team. She reached her first career final this year in Atlanta and was narrowly Leah Pritchett defeated. A former Nos-talgia Funny Car world champion and a junior dragster racer, Pritchett is on track to become a major player in NHRA Drag Racing.

Muldowney is a name that will forever be etched in the history of motorsports. Racing in a time when a woman in drag racing was nonexistent, Muldowney rewrote the rule book of successful women in racing. She scored Erica Enders three world championships and 18 career victories, cementing her legacy alongside the greats of “Big Daddy” Don Garlits, Don “The Snake” Prudhomme and Kenny Bernstein.

The NHRA Breakfast at the

SEMA Show will be held Wednesday, November 4, from 7:30 – 9:00 a.m. at the Westgate Las Vegas Resort and Casino (formerly the Las Vegas Hotel and Casino [LVH]) Paradise Events Center South. The NHRA Breakfast is open to all registered SEMA Show attendees. A continental breakfast will be served.

The panel will be moderated by Courtney Force longtime NHRA announcer Bob Frey. Following breakfast, all panel guests will be at the NHRA Booth signing autographs and handing out limited-edition autograph cards from 10:00 – 11:00 a.m.

DeJoria’s Patron XO Cafe Incendio Toyota Camry Funny Car will also be on display at the booth.

This event is open to all registered SEMA Show attendees at no cost; however, tickets are required. To order your event ticket or register for the show, visit the SEMA Show website and click “Add Event Tickets.”

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CA Takes Action Against Insurers for Various Acts: Capping Labor Rates, Lowballing, Trade Practices

by Ed Attanasio

The California Department of Insurance (CDI) recently took action against Allstate Insurance, Sterling Casualty and Alliance United Insurance based on allegations listed in three separate statements of charges and accusations concerning illegal labor rate practices that were allegedly unfair and/or deceptive and based on complaints from body shops throughout the state.

These actions are based on investigations that revealed violations including “Engaging in unfair methods of competition or unfair acts or practices, and other unlawful acts, including arbitrarily capping and denying labor rates without support; failing to send a written denial of a claim; making an offer that is unreasonably low to settle a claim; failing to prepare estimates for an amount that will allow for repairs to be made in accordance with accepted trade standards for good and workmanlike repairs and failing to pay the difference,” based on the statements filed by CDI Attorneys Ramon Cintron and Kevin Bush.

In the action taken against Sterling Casualty Insurance, at least one complaint was received against the company from an unnamed shop in Oxnard, CA. The action against Allstate was based on at least five complaints from body shops, including Collision Concierge in Upland, CA, Autotrends in Oakland, CA, an unnamed shop in Santa Clara, CA and two separate complaints from A&B Collision in Clearlake, CA. The action taken against Alliance United is based on two complaints from one or more unnamed body shops in The source for timely Oxnard, CA. information that every Co-owners Alvaro Valencia and body shop needs!

Bill Stone of A&B have been filing labor rate complaints for more than CALL two years800-699-8251 and are pleased to see that action has been taken by the CDI. In two cases, Allstate objected Mail Subscription with A&B’s labor rate of $95 and stated that they were not willing to pay more than $75. After the CDI intervened, Allstate increased the labor rate

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to $82, still $13 below the shop’s stated labor rate. Allstate had no documentation to justify the lower rate simply saying that it was “over inflated” and that most shops in the area accept the lower rate as reasonable and competitive, according to the Statement of Charges/Accusation filed by the CDI. Bill Stone at A&B Collision hopes that these actions will change the industry for the better. “David Jones is stepping up and representing us, which is excellent,” Stone said. “It took quite a while for these to be filed, because the CDI needs to investigate and build a case, which I understand. We have filed more than 100 complaints with them, because every time it happens, we’re going to complain. 96% of all the insurance companies we work with play fair and that’s all we want. We’re in the only business in this country where someone can walk in and say we’re not going to pay your rate and here is what we’re going to pay. The insurance companies have all the clout and the power and we’re just one shop in a small town. It’s always been a David vs. Goliath situation, but now we have someone on our side, finally.

It’s a big deal, that’s for sure.”

Stone says he is tired of wrestling with insurance companies over what he feels is a very fair labor rate. “We’re not trying to make a killing, we just want to be paid what we deserve,” he said.

“They try to cut costs and question our rates for being inflated. They have no survey information to back it up, they justPromote push it onyour us andbusiness what can we do? with They will claim things like a ‘basecoat an exclusive article featuring reduction’ and things like that—which I your think mustproducts be a phraseor thatservices. was created by the insurance industry.”

Another complainant in the action vs. Allstate is Douglas Marshall of Autotrends in Oakland, CA. He has filed approximately 50 complaints in Call for details! the last three years and is also happy to see these charges.

800-699-8251 “This is a one step in the right direction and something that has been needed for many years,” Marshall said.

“We’ve been filing complaints every week, and now we’re seeing the re-

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sults. By keeping good records and documenting everything, we’re able to make our case in every situation. Commissioner Jones is doing all of the things he promised he would and that’s why he’s the best we’ve ever had in that office.”

Tony Cignarale, CDI Deputy Commissioner of Consumer Services and Market Conduct weighed in about the three enforcement actions. “CDI is not able to comment on any ongoing investigations or complaints. However, in general, the department investigates and attempts to resolve each complaint it receives. Each case has a different set of facts and involves different insurance companies and different types of disputes. Therefore, each case may have different results.

CDI has been able to resolve many of the complaints filed with additional payments to consumers and to repair shops. In 2014 the Department received more than 175,000 calls from consumers and helped recover over $54 million in claims and premiums.

“In some cases, where insurer practices caused the dispute, we were successful in getting insurers to make

changes to the systems, processes, or labor rate surveys so that future claims are handled reasonably and in a fair and equitable manner, Cignarale explained. “In those cases where CDI alleges that insurer practices are in violation of law, each case must be investigated and evidence must be obtained that would support taking enforcement action. The three cases noted were examples of the result of these types of investigations.”

Penalties in each action are the same—an Order to Cease and Desist from engaging in unfair acts in violation of CIC Section 790.03, including civil penalties not to exceed $5,000 for each act or if the act or practice is willful, not to exceed $10,000. For acts in violation of CIC Section 704(b), suspension of each insurer’s certificate of authority for up to one year, or a $55,000 fine in lieu of suspension.

Each insurance company in question can either accept the monetary penalties associated with each alleged action or a have their case heard at a hearing held at a date to be determined in the CID’s Office of Administrative Hearing in Los Angeles.

GFS to Demo REVO Accelerated Curing System at SEMA Global Finishing Solutions (GFS) will feature REVO accelerated curing systems for the North American collision repair industry during SEMA. “GFS is excited to be featuring the REVO products at SEMA. We carefully researched accelerated cur-

increase in paint shop throughput and high-quality results. All REVO systems integrate into existing paint shop footprints and are backed by GFS’s extensive distributor network and warranty.

With consolidation in the repair industry, Lowder said body shops need to improve repair efficiency without sacrificing quality. He added that the REVO systems can improve paint shop throughput up to 80%, work within a paint shop’s current footprint and produce high-quality results.

GFS will show the Speed, Spot and Handheld models from the comprehensive REVO product line Global Finishing Solutions’s REVO equipment line at Booth 11123.

Additionally, GFS has teamed up ing technology before deciding to bring the REVO brand to North Amer- with Axalta Coating Systems to inteica,” said Brandon Lowder, GFS VP grate the REVO Speed model into of auto refinish. “We believe that the Axalta’s live paint demonstrations.

REVO technology is the safest, fastest Axalta will be demonstrating the latway to cure filler and coatings in order est in innovative coatings technology to improve both paint shop efficiency and rapid production with the REVO Speed in the Axalta “Engineered for and quality.”

REVO systems use electric in- Speed” paint booth, a GFS Ultra XR frared technology, which generates semi-downdraft booth located just short wave energy that quickly cures outside of the central hall front enthe repair from the inside out. The ac- trance. Registration for Axalta classes celerated complete cure allows for an can be found at Booth 61009

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 45

Growing Trend of Collision Repair Networks Led to Formation of 1Collision Network

by Stacey Phillips, Assistant Editor

Over the last five years, the collision repair industry has experienced an increase in consolidations, shop closings, lower claims frequency and higher total losses. As a result, there is a growing trend for businesses to affiliate with a group of shops, according to Jim Keller, president of 1Collision Network.

“The consolidators, MSOs, franchises and networks continue to increase their market share because they are better able to adapt to the changing landscape,” said Keller. “Technology in the repair process, necessity for increasing capital investment in facility and equipment, and rising budget demands for training and certifications, marketing and insurer relations all require a more sophisticated business approach. Many other economic and marketing factors are driving the consolidators, franchises and network segments to be growing at the fastest rate.”

Launched by Keller approximately four years ago, 1Collision Network is an organization of independent and dealer-owned and operated collision repair businesses. With more than 20 locations in four states, including Iowa, Illinois, Indiana and Wisconsin, Keller said plans include expansion

RJones Collision1 in Des Moines, IA

into other U.S. markets. ABRA Auto Body & Glass, Caliber Collision, CARSTAR Auto Body Repair Experts, FIX AUTO, Gerber Collision & Glass, Maaco and Service King are the primary multi-state consolidators and franchises.

Daniel Clark, director of service operations for Link Auto & RV Group in Wisconsin, joined the 1Collision team in 2012. “We saw that a partnership with 1Collision would bring many benefits to our customers and our business,” he said. “The 1Collision staff is like a third arm for our managers. It’s like having another whole team of employees at your fin-

gertips. Their assistance with marketing, processes and leadership has been invaluable.”

Clark said it has also helped his business “get out of our box” by networking with other shops and share in their successes and trials. “Networking with other like-minded shops helps expand our vision for our business. The 1Collision Network helps keep us aware of upcoming changes and trends

in the industry so we can stay at the top of our game and be steps ahead of the local competition.”

Christy Jones, owner of R Jones in Des Moines, Iowa, also joined the network in 2012. “The 1Collision Network provides an opportunity for R Jones to become a part of a regional group of shops, providing us with solutions for the many business challenges shops face in today’s competitive marketplace.” She said R Jones has benefited from the numerous management solutions that have allowed the shop to run more efficiently.

Her advice to shops considering joining the network is to come with the mentality of what they can bring to the network. “In the consolidation market that we have today, it’s more important now for independent shops to work with each other, not against each other,” said Jones. “The 1Collision Network provides that opportunity to do just that.”

Riverview Body Shop in Aurora, IL is the newest addition to 1Collision Network’s growing list of shops. “I selected the 1Collision Network as they provide body shop owners the resources that are needed to compete in today’s highly competitive marketplace,” said Joel Adams, Riverview’s owner.

Keller has been a multiple location body shop owner for over 30 years. His son Jim operates 1Collision County Line in Menomonee Falls, WI and

46 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

1Collision Schererville in IN, while Keller focuses on guiding the network corporate staff of eight to provide support to 1Collision Network locations.

“Our mantra is, ‘We help successful shops be more successful.’”

When a new shop is considering joining the network, Keller said the corporate team looks for those that continually want to improve their business. “Some shops are comfortable with the status quo,” he said.

“We typically look for shops that are interested in growing and building their businesses, building strong insurer relationships, and improving their performance.

With a background in marketing, Keller has found that name recognition is often an important priority for shop owners. “We came up with a system of allowing them to brand with us so that they would not lose their identity in the marketplace,” he said. All of the logos for 1Collision shops incorporate the number “1” and the “swoosh” sign as identification and then the shop’s existing logo is added in the middle.

One of the shops in the network has been in business for 75 years.

“The grandfather started the shop, and the family name was really important to perpetuate, as generations have had their cars fixed there,” said Keller.

“We recognize that and built our brand off of a need for a shop to keep their market brand in front of the public, yet still be recognized as part of a shop group brand.”

Once a collision repair shop joins the network, a comprehensive marketing plan is developed, covering all aspects of promoting their shops to consumers, insurance companies and technicians.

Next, 1Collision Network addresses the shop’s online presence.

“We believe that a strong online presence is critical,” said Keller. “Take care of your web presence first, and then build your strategies and tactics in your marketing plan once that’s squared away.”

In addition to helping shops with their marketing needs, Keller stressed the importance of tracking performance. This includes gauging how well a shop is managing Key Performance In-

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Keller said working together as a collision repair group has several advantages.

“By taking the strength that we have in numbers, we are able to maximize our value to insurance companies,” said Keller. “There is definitely a trend in the industry for shop groups to be effective in their insurance relationship building due in part to the number of claims they handle per year as a group.”

As a single point of contact with the insurance claims offices, 1Collision Network is able to represent all of the shops in discussions with an insurer. “We work with insurance companies to identify where they have needs to be fulfilled, and then we work with them in those areas where they have specific needs from a DRP partner, and provide management of ongoing performance improvement of the locations as well,” said Keller.

Another benefit he has found is the ability to combine resources to market to consumers. “Consumer mar-

keting is becoming more and more important, especially with how popular the Internet is to find goods and services in this world today,” said Keller.

“Part of what we are able to do is collectively and in a more affordable fashion combine our financial resources to raise brand awareness.”

Tim’s Auto Body 1 in Champaign, Illinois is owned by Tim Tatman

In addition, he has found that a group of shops often have the ability to procure products and value-added services more effectively from strategic partners, as they know working with shop groups can bring them more volume, and a single point of contact for all the locations. “Our corporate strategic partners have been instrumental in our development as a network,” Keller said.

“It’s easier to create an operating

system when you’re in a group than it is for one store, because it requires considerable knowledge, time and resources to put those systems together, that can be quite a challenge for a collision repair business owner.

An upfront fee covers the cost of what Keller refers to as “the onboarding” process such as developing the shop’s marketing plan, internet presence, logo design, and integrating their name with the network website and shop locator, promotional and informational pieces and DRP applications.

There is also a monthly fee for ongoing services provided by 1Collision’s corporate office.

“Our core business is helping successful independent shops and dealerships achieve greater success in all aspects of their collision repair business,” said Keller.

For more information, contact info@1collision.net or 414-289-7650.

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Honda to Spend $210 Million on New Paint System in Plant

Honda of America Mfg., Inc. announced in September a $210 million investment in a new paint line at its Marysville Auto Plant (MAP) in Ohio—Honda’s first and largest auto plant in North America.

The new MAP Line 1 paint facility will utilize numerous new technologies to reduce energy use, water use and chemical emissions from the vehicle painting process while at the same time, improve the quality of Honda and Acura vehicles produced at MAP. When complete, the company said the new paint shop will be the most energyefficient paint line in Honda’s U.S automobile production network. Auto body painting can account for upward of 60 percent of an automobile plant’s total energy use.

“Honda is committed to delivering products that have outstanding quality and low environmental impact,” said Tom Shoupe, executive VP and COO of Honda of America Mfg., Inc. “With this new investment, our Ohio operations are once again raising the bar for quality and environmentally responsible manufacturing operations.”

Construction will begin in Dec. and is slated for completion in Dec. 2017.

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Assured Performance Launches Smart App for Accident & Collision Care

Assured Performance Network, the country’s largest Certified Collision Repair Network, announced the official launch of their consumer-facing smart phone App–Accident & Collision Care. The Assured Performance consumer-facing smart App instructs vehicle drivers to properly document the details of an accident including: photos, other driver’s information, a comprehensive accident description and all the critical information needed to create a complete detailed accident report.

Consumers may also select a Certified Collision Repair Provider of their choice, set an appointment and send the entire report to the shop or any other interested parties. The free consumer smart phone App is now available on Apple App Store and Android Google Play.

What makes this app unique and a game-changer is its ability to automatically set an appointment with an OEM Certified-Recognized Collision Repair provider in their community much like an insurer Direct Repair Program (DRP) assignment works today. The App identifies Certified shops based upon the VIN or year, make, and model of the vehicle and geo-location, or the consumer can pre-select their preferred Collision Repair Provider. The App even uploads the entire accident report including the critical insurance and vehicle information and confirms the connection between the Certified shop and the vehicle driver.

The foundation of the smart Apps and shop locators alike is the network of thousands of Certified-Recognized body shops

located in nearly every community. All of the Certified Collision repair providers have met or exceeded standards for tools, equipment, training and facilities required by the participating Automakers to properly repair their vehicles to manufacturer specifications helping to ensure the fit, finish, durabiity, value and safety.

In addition to the Assured Performance consumer App, the participating Automakers already have, or soon will have, smart Apps and online Certified shop locators specific to their vehicle models that leverage the same database of Certified Repair Providers. Combined these are creating an OEM customer referral program supporting the shops that are Certified. This approach further delivers on the Assured Performance claim,

“Certified Once, Recognized by Many.”

“Now that our network of Certified shops blanket nearly the entire country, we can actively educate the consumer and provide them with a Certified Repairer choice almost anywhere they might need and want one” stated Assured Performance Chairman and CEO, Scott Biggs. “Our mission is to ensure that all consumers receive an exceptional repair experience delivered by exceptional businesses.”

The Accident & Collision Care App is free with no in-store purchases.

This smart App can be utilized as an emergency tool in the moment of crisis or downloaded ahead of time (recommended). For additional information, visit http://app.collisioncare.org/.

Mike Anderson of Collision Advice foresees a day when virtual steering is the norm. Anderson spoke at a recent event hosted by Pfaff Autoworks in Vaughan, Ontario, as reported by Canada’s Collision Repair Magazine. During his presentation, Anderson outlined coming trends in the industry. One of the important trends he highlighted was a coming shift in the way the industry operates in terms of the way cars are directed from

the scene of an accident into a shop. “Get ready for the era of ‘virtual steering’, ” said Anderson.

The term virtual steering refers to a coming era in which cars can be directed to certified repair centres through services like GM’s OnStar.

It seems likely that in the years ahead, services like OnStar, which provide communication links between a call centre and individual vehicles, will ex-

pand and evolve. As these communication links evolve, in-car communication services will ask drivers involved in an accident what collision repair centre they want their vehicle delivered to.

Anderson played a video during his presentation that dramatized how the immediate moments after a fender bender will play out in the coming era of connected cars. If a vehicle gets in an accident the driver will be contacted. The

call centre will confirm the driver is okay. If they are, but the car is damaged, the driver will be asked which collision repair shop they want their vehicle directed to. The call centre will text a list of local certified repair shops. The driver chooses one. The call centre makes the initial contact with the insurance company for the driver. This new system will be driven by OEMs. “It’s not far away,” says Anderson.

Mike Anderson Outlines ‘Virtual Steering’ Risks for Shops During Talk at Ontario Body Shop

Subaru Sees Record Demand, Plans IN Plant Expansion by 100,000 Vehicles

Subaru is experiencing record U.S. demand and will expand annual production capacity by 100,000 vehicles at its sole U.S. plant. The company will invest $140 million to do so. The Subaru of Indiana plant in Lafayette, one of the automaker’s three plants worldwide, will gain 1,204 jobs by 2017.

The factory currently employs more than 3,800 workers and produces about 300,000 vehicles per year, according to a press release.

The announcement comes after Subaru had said it will begin production of a seven-seat SUV at the Lafayette

plant after 2017. The SUV will be exclusively sold in the North American market, Yoshinaga said. Subaru’s Outback and Legacy and the Toyota Camry are currently produced at the plant.

Fuji Heavy Industries, which owns Subaru, said previously that it would halt Camry production at the plant, which has been building the sedan since 2007. Toyota has confirmed it will end Camry production will end in fall 2016 and shift output to its Georgetown, KY, plant. The Camry's departure would free up capacity of 100,000 vehicles, on top of the additional 100,000 announced.

The hiring and investments will “enable SIA to build more Subarus to help meet the growing demand,” said Tom Easterday, Subaru of Indiana executive vice president, in a statement. “The substantial increase in production volume at SIA will also result in new jobs and investment by many of our suppliers across Indiana.”

This is the second major investment in Subaru’s Indiana plant in recent years. The plant is undergoing a $400 million expansion, designed to allow Subaru to begin production of the Impreza model by the end of 2016.

Certified Collision Group™ Expands 1stCERTIFIED™ to 26 Shops, 4 States

Certified Collision Group™ (CCG) announced its 1stCERTIFIED™ initiative last week, now announces nine (9) additional facilities, to total 26, as CCG expands from California into Idaho, Washington and Oregon.

One of the new Affiliates joining CCG is Parks Royal Body Works of Boise, Idaho. Almost 40 years ago, Ted Thornton and a partner took the opportunity to purchase their facility. His son, Matt Thornton grew up in the family business and eventually became its owner in 1999. Their family, employees, and community have depended for

almost 7 decades on Parks Royal and its commitment to craftsmanship, exceptional service and professionalism.

Parks Royal’s OE Certifications, CSI scores and cycle time make them a great fit for CCG. “Having 1stCERTIFIED™ brand complement our current values and partners is crucial to us in today’s marketplace,” commented Thornton. “The ability to participate in a larger network—while maintaining our individual identity—is the kind of support we’ve been looking for. My family and our staff are excited to grow into

48 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

the future with the Certified Collision Group.”

Thomas Adams, CCG’s Managing Director notes, “Parks Royal is a prime example of how CCG will grow its 1stCERTIFIED™ initiative; adding unique value for well branded, owner operated, performance-driven organizations.

“Our ability to quickly expand into multiple markets is based on the value of our non-intrusive, high performance solutions to both qualifying collision repair businesses and the auto insurance community.”

VW Fallout Continues, Recall Could Begin in January

Volkswagen continues to deal with falling sales after they were found cheating on emissions testing, as class action lawsuits from car owners are flooding in. Scott Hauser, a mechanic at Parotta’s Auto Repair in Agawam, MA, said, “It’s going to take a little while but I think it’s going to bounce back. I mean if it’s anything like my father, he loved diesels all his life.” Kelly Blue Book says the average resale value of Volkswagens with two-liter diesel engines is down 13% since mid-September when the company admitted to cheating on emissions tests using software installed on 11 million vehicles worldwide. The price of gas-fueled VW’s dropped 2% in the same period.

VW’s decline is unusually large, and people working in the automotive industry say it will take a lot for the company to gain drivers trust back.

Volkswagen has set aside $7.3 billion to pay for the scandal. VW’s new CEO Matthias Mueller says a recall could begin in January if all goes as planned, and all cars should be fixed by the end of 2016. A software update is expected to fix the problem, but some will need new injectors and catalyzers.

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www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 49

U.S. House Passes Federal Vehicle Repair Cost Savings Act

The U.S. House of Representatives passed S. 565, the Federal Vehicle Repair Cost Savings Act, on Sept.

28th, requiring federal agencies to consider using remanufactured parts for vehicle fleet repairs. The Motor & Equipment Manufacturers Association (MEMA) and its remanufacturing division, the Motor & Equipment Remanufacturers Association (MERA), applauded the vote. “We thank the House of Representatives for passing this important legislation,” said Steve Handschuh, MEMA president and CEO. The legislation requires all federal agencies to consider using remanufactured parts in maintaining the federal vehicle fleet, which numbers more than 588,000 vehicles. A 2013 GAO study found that the federal government spends nearly $1 billion per year on fleet maintenance, but there is no uniform policy among agencies about using remanufactured parts.

Tony Passwater Named Director of Green Service Standards Committee The Green Service Standard “GS2” committee announced that Tony Passwater will take the reins as Director.

The GS2 committee was launched last year in Las Vegas to organize an industry standard for shop operators to certify vehicles according to the fueleconomy.gov rating system.

GS2 Committee Chairman, Steven Schillinger said that Tony brings over 40 years of automotive service and repair experience as an organizer and leader. As director, Passwater will oversee the criteria for the knowledge areas required to attain GS2 accreditation, which serves as a public registry of individuals with the experience and understanding of how to evaluate a vehicles FuelEconomy.gov efficiency rating and climate score.

“It will be an honor to serve as director of the Green Service Standard committee and build upon all the good work that has been done since its launch,” said Passwater. “Most auto shop employees are products of their

DVI BOSS Revolutionizes Aftermarket Automotive Repairs with the New Digital Vehicle Inspection

Utilizing cutting-edge, web-based technology, DVI Boss enables automotive repair shops to complete Digital Vehicle Inspections that provide customers with a complete inspection of their vehicle, including photographs, videos, and technician notes.

This Digital Vehicle Inspection application interactively shows the condition of the different components of a vehicle. With DVI Boss, auto repair shops can provide better service to customers and improve profits by not only reducing costs of paper inspections but also technician time.

Once a DVI Boss Inspection is completed by the automotive repair shop, a link to the DVI is sent to the vehicle owner via text message or email.

By clicking the link, owners can view the inspection notes, photos and video right on their computer, tablet or smartphone.

Chris Boshaw, President of CSB Technologies, suggests that both customers and the repair shop will see the

value of this easy-to-use application.

He states, “Once drivers can see the actual photos and videos of the needed repairs, they will generally have a higher level of confidence that the recommended repairs are both necessary, and can be performed by the repair shop.”

DVI Boss is available as a standalone application and does not require any specialized hardware. An automotive repair shop only needs the ability to access the internet to upload photos and/or videos captured on their tablet, smartphone or camera. DVI Boss can also be integrated with a repair shop’s existing Shop Management Software and is also fully integrated with Shop Boss Pro, the flagship Shop Management Software application from CSB Technologies. DVI Boss is an affordable option to increase customer service and satisfaction as well as improved profitability for the shop. A subscription to DVI Boss is priced at just $98.00 per month to the auto repair shop with no long term contract.

U.S. Will Need To Adopt European Approach To Achieve MPG Targets

Global auto manufacturers have made considerable progress in increasing fuel economy and reducing nitrogen oxide (NOx) emissions. Experts at Emissions Analytics see the U.S. getting closer to 2025 federal fuel economy targets by adopting approaches from Europe. The Corporate Average Fuel Economy (CAFE) target of 54.5 miles per gallon by 2025 is actually the equivalent of an EPA sticker fuel economy of about 41 mpg, (nearly 20 percent lower because

of the manner in which they are calculated). U.S. passenger cars and light trucks tested by Emissions Analytics currently achieve 24.9 mpg in realworld driving, which will require a two-thirds increase to get to the target.

By contrast, Europe already is achieving 36.8 mpg. Adopting more fuel-efficient European technologies such as direct injection and variable cylinder technology could add a further 3.7 mpg to reach 33.2 mpg.

50 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

experience, and the core of our mission will be to connect technicians, estimators and service writers to the most rewarding state-of-the-art challenges we can find.”

As a consultant, Passwater has worked for many leading Industry organizations over the years, as well as many volunteer committee positions.

He has actively been involved in the ASA, Automotive Management Institute (AMI), I-CAR, CIC, and SCRS. In 2014, he achieved the Automotive Management Institute’s Accredited Automotive Managers (AAM) designation. He is also ASE Master Certified and serves currently as director of the Indiana Auto Body Association (IABA).

“Tony Passwater is a leader, educator and award-winning journalist. He has enjoyed distinguished careers in industry and academia, and will expand GS2's partnerships with ASE, I-CAR and its industry presence nationally,” said Steve Leal, President at Fix Auto

Canada. “I look forward to working with him as we educate and train specialists for multi-platform technologies in today's rapidly changing auto industry,” Steve added. “He will make an impact on student careers and lives, and will reinforce the committee’s commitment to being at the forefront of tomorrow’s automotive standards and practice.

The Green Service Standard (G2C) is an eco-friendly technology group for the automotive aftermarket, representing 10 vehicle service and repair industry segments in the United States and Canada, including Motor Vehicle Dealers, Automotive Stores, Gasoline Service Stations, Collision Shops, Exhaust System Service, Tire Shops, Glass Replacement Business, Transmission Repair Shops, Car Washes and Automotive Oil and Lube Shops.

For More Information about GS2, contact Tony Passwater at: Tony.Passwater@aeii.net.

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If Auto Injury Claims Frequency Is Falling, Why Are Claims Costs Rising?

Auto insurance bodily injury claims costs are still increasing in the United States, even though better vehicle safety has helped reduce claims frequency, according to the Insurance Research Council (IRC), as reported by InsuranceJournal.com.

The insurance organization said improved vehicle safety, graduated licensing laws and other safety factors have not been enough to offset substantial increases in the cost of injury claims.

The average cost per paid liability claim has jumped more than 30 percent from 2005 to 2013, the researchers found.

The IRC said the results point to a need for further scrutiny of what is driving these costs.

“Documenting the specific drivers

of cost in the states where cost growth is greatest will be a priority for the IRC in the years ahead,” Elizabeth Sprinkel, an IRC senior vice president, said in prepared remarks.

Bodily injury liability claims frequency fell nationally by 14.5 percent from 2005 to 2013, the IRC determined in “Trends in Auto Injury Claims, 2015 Edition.” That translates to a dip from 0.94 paid claims per 100 insured vehicles to 0.81 paid claims.

At the same time, however, the average cost per paid liability claim grew from $11,738 to $15,506, a jump of 32.1 percent.

The same thing happened with personal injury protection (no fault) claims, which dropped in frequency from 1.49 to 1.25 paid claims per 100 insured vehicles

over the same period. But, according to IRC, the average cost per claim jumped in this category from $5,802 to $8,017, a 38.2 percent hike.

The IRC said that every state except for Florida, Kansas, Kentucky and Maryland saw a decline in bodily injury claim frequency from 2005 through 2013. Also, every state with personal injury protection coverage (PIP), except for South Carolina, had a drop in PIP claim frequency.

Meanwhile, every state except for West Virginia experienced a jump in bodily injury claim severity from 2005 to 2013. All U.S. states save for Pennsylvania experienced an increase in PIP claim severity.

Some states saw jumps that were worse than others. Michigan, for exam-

ple, had the average payment per personal injury protection claim soar from $25,997 to $44,756 over the studied period, a 72.2 percent jump. New York and Washington saw increases of more than 40 percent, the IRC noted.

The IRC suggested that reports of a jump in traffic deaths could signify “a change in the beneficial long-term trend of declining claim frequency,” something that could make costs trends more severe.

The IRC is a division of the American Institute For Chartered Property Casualty Underwriters (The Institutes) and is supported by property/casualty insurers.

The IRC report is based on claim data from national and state-level statistical reporting agencies.

Last month, the Environmental Protection Agency (EPA) issued a notice of violation (NOV) of the Clean Air Act (CAA) to automaker Volkswagen and its affiliated companies.

The NOV came as a result of allegations that Volkswagen had knowingly installed emission-test defeating software in its four-cylinder Volkswagen and Audi diesel cars from model years 2009-

2015. According to the EPA, this resulted in the cars emitting up to 40 times the amount of mono-nitrogen oxides (NOx) emissions that the standards allow.

In response to inquiries from ASA’s members and the media, Dan Risley, ASA’s president and executive director, released the following statement: “The Automotive Service Association (ASA) works with state and federal air

quality administrators through emissions testing and maintenance programs as well as other state and federal programs. We have offered to provide assistance to Volkswagen. ASA is interested in helping them enhance their efforts as they work through the process of resolving the current situation for the vehicle owner.

“It is our desire to assist Volkswagen in notifying independent service repairers

of the information needed to properly repair our mutual customers’ vehicles. ASA will continue to monitor the situation and report any developments that may impact the service repair industry.”

For additional information about ASA, including past media releases, go to www.ASAshop.org or visit ASA’s legislative website at www.TakingThe Hill.com.

ASA Responds to Volkswagen Emissions Investigation

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I-CAR® now offers their industry-recognized Welding Training & Certification™ program as a curriculum option for career & technical schools. I-CAR approved and licensed Educators can deliver the courses in an academic setting.

The Welding Training & Certification for Educators is based on the same training curriculum that I-CAR offers to the Collision Repair industry.

Students that successfully pass the skills portion of the curriculum will earn I-CAR’s professional welding certificate, and is valid for five years.

Taught in conjunction with the PDPEE, approved Educators are authorized to deliver the I-CAR Welding Training & Certification program in their career & technical schools.

“The Welding Training & Certification for Educators creates a more robust collision repair training program for schools,” said I-CAR senior director of segment development, Bill Stage. “It enables career & technical schools to fuel the industry with highly-qualified entry-level non-structu-ral technicians.

Today, 64 percent of professional technicians have not completed I-CAR’s steel welding training. The Educator program will contribute to getting every

technician that welds properly trained, something the industry desperately needs.”

The Auto Collision Repair and Refinishing program at Fox Valley Technical College is the first of its kind to expand the program to include the ICAR Welding Training & Certification program. Launched in the the 2015/ 2016 academic year, the college offers both the steel and aluminum welding options. To date, 75% of the students enrolled in the collision repair program are also enrolled in welding.

“Fox Valley is proudly teaching the I-CAR Education Edition curriculum.

With the addition of the welding program, students at Fox Valley wishing to pursue a career in collision repair will benefit from a more complete program geared toward development in soughtafter skills, including welding of both structural and non-structural vehicle components.” said Jerry Goodson, collision repair and refinishing instructor.

Career & technical schools that wish to become approved to deliver the program for Educators can apply on the I-CAR website or call 888-422-7211.

Program information will also be available at SEMA 2015 at the I-CAR booth #10873.

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 51

BASF Dual Refinish System Reformulated to Increase Shops’ Production & Profit

by Stacey Phillips, Assistant Editor

During a typical day, Jared Fero, the head painter at Gillette’s CARSTAR Collision Center, uses R-M Onyx HD from BASF to paint one vehicle completely in a waterborne formulation and the next in solventborne.

“It’s the only line available in the marketplace that allows you to mix paint as a waterborne or solventborne finish with a single set of toners,” said Mike Freeman, Market Segment Manager for BASF’s R-M brand in North America.

R-M’s Onyx HD line was first introduced in 2007 and the company launched the solventborne version of Onyx HD in 2013. Freeman said the company has made several improvements to the dual automotive refinish system over the years and recently relaunched it in June.

Gillette CARSTAR, based in Waukesha, Wisconsin, began using BASF’s Continued from Page 35

SCRS Survey

10 years ago in the collision repair industry (December 2005) For Jim Watson, the solution to the rising percentage of vehicles being declared total losses is relatively simple: Non-repairable vehicles shouldn’t be repaired.

“Repair the repairable vehicles at a facility that has the training, technology, tools and accountability to do so,” said Watson, an Illinois auto recycler and current president of the Automotive Recyclers Association. “And require those vehicles that could not or should not be repaired to be disposed of with a federal certificate of destruction to be sold for parts or scrap only.”

Watson said this would solve what he calls “the total loss pandemic” by addressing two parts of the “total loss” equation. First, it would make more recyclable parts available to shops, thus reducing costs to repair. Second, it would reduce competition for salvage vehicles – because more of those vehicle could not be purchased to be rebuilt – lowering the salvage values that are a key component in determining if a ve-

Onyx HD paint system about a year ago in their newly built facility. “I wanted to use a paint system that met and worked with OEM certifications and had the OEM level of trust built in them,” said Gillette CARSTAR’s Owner Todd Gillette. “That’s the reason why I went with BASF.” Gillette, who has been in business for 20 years, said he has been really pleased with the color match. “The water base lays so flat that your clear coats lay flatter. Minimal polishing if any ever needs to be done.”

His head painter, Fero, said he was a little reluctant at first to switch products after using a solvent paint system for the past nine years. “It has been a really great change as far as getting production and quality cars out of the shop,” said Fero. “On an average day, I’ll paint about six cars and that wasn’t achievable with our other paint system.”

Fero added that the paint system covers really well. “More coverage equals less paint which equals a happier boss,” he said. The updates for color chips are done automatically and the system is connected to other shops through BASF’s SmartTrak software.

Fero said this makes it easier to find a good color match for the car.

After receiving feedback from

hicle will be declared a total.

Watson’s comments came during the Collision Industry Conference (CIC) in Las Vegas in November, during which several CIC committees focused attention on the issue of total losses.

One committee, for example, compiled a variety of statistics from estimating system providers and insurers to gauge whether the common perception that the number of total losses is increasing is actuIn 2005, Illinois ally true.

Auto Recycler CCC reported Jim Watson was national president the percentage of of the Automotive total losses among Recyclers estimates written Association by in-surance appraisers in 2004 was nearly double the annual percentage of total losses in 1997 through 2000.

– As reported in Parts & People.

CCC has since reported that the percentage of total losses has hovered between 12.9 percent and 14.2 percent each year since 2005.

See SCRS Survey, Page 54

52 NOVEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

customers over the last several months, BASF made several improvements to the Onyx HD system to meet the needs of its customers.

“We’ve been working on several changes to the product that allow us to have a more superior color match than we’ve had in the past with this product,” said Freeman.

For example, with the Onyx HD solvent line, customers said that certain popular tinted silvers and charcoal colors were not matching the way

they expected them to. After doing some investigating, BASF found they could improve the chemistry of the product. “Once we were able to do that, we discovered some other things in the process,” said Freeman. “When we made those changes, it improved the line overall.”

In addition to being fully compliant in the United States and Canada for low VOC levels, Freeman said that

Onyx HD dries up to five times faster, and hides in fewer coats than some competitive products.

“Productivity is the cornerstone of our brand and it’s very important to us to make sure shops are able to hit those KPIs,” said Freeman. “We are really putting that productivity aspect at the forefront and educating our customers about how they can switch back and forth between the various solutions to meet the needs of their customer mix for the day.”

The Onyx HD line also aligns with the company’s existing COLORMAX system, which is a series of paint chips that tie into a software giving painters the formulations needed.

Freeman said COLOR- MAX is one of the fastest, most accurate color tools in the industry. “The computer knows what color you’re aiming for and what system you are mixing it in, whether it is waterborne or solvent, and it tells you what percentages you need to use of each of the toners,” said Freeman.

BASF will display two vehicles painted with the Onyx HD paint system at the SEMA Show in Las Vegas, Nevada in November.

More information about BASF Onyx HD can be found online at: www.basfrefinish.com/onyx

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ABAC Advocates for House Bill 5655 to Eliminate Double Taxation on Paint

by Chasidy Rae Sisk

In September 2015, the Auto Body Association of Connecticut (ABAC) addressed the State Tax Panel in reference to House Bill 5655, “An Act Concerning the Taxation of Paint Used in Motor Vehicle Repair.” Presenting testimony, the association expressed their support of the bill’s intent, advocating for reform because they feel collision repairers have been unfairly penalized by an interpretation of the law which allows paint and materials to be subject to double taxation.

The law that was established in the 1970s defined which materials were taxable, providing that “integral parts” are non-taxable. Integral parts are defined as a part that maintains a separate identity after use, and at the time, paint was included in this definition in the sense that it was purchased in small quantities for a specific vehicle. However, times have changed, and now, shops purchase paint in bulk, mixing the paint for each individual repair job.

Because paint is no longer purchased for a specific vehicle, it is subjected to taxation at the wholesale purchase and

again at the retail sale.

This double taxation has been imposed since 1999 when auditors found that jobbers were not taxing shops for the wholesale purchase. Jobbers were fined for their failure to tax upfront on paint and materials, so they began taxing shops for the purchase. Tony Ferraiolo, President of ABAC, argued that, “Because the mixed paint is charged to a specific vehicle’s repair, it should be untaxed until it is resold for a specific car. House Bill 5655 was proposed in the 2015 Legislative session, but it didn’t get anywhere since last year was about increasing state revenue, so we hope to revisit the proposal in the 2016 Legislative session.”

Although this situation is not technically considered double taxation, because two separate entities pay the taxes, the product is still being taxed twice. Shops are taxed for the wholesale purchase, and consumers are taxed on the resale on their repair bill. ABAC argued that this is inconsistent with a reasonable regulatory interpretation and years of industry practice and that the wholesale purchase should be considered a “sale for resale.”

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Furthermore, the association feels that the current interpretation of the law does not pertain to paint purchased in bulk due to the evolution if industry practices, and since the totals are billed to and taxed on each specific repair job, House Bill 5655 is consistent with the regulation’s original intent.

Ferraiolo explained, “We don’t purchase paint that way anymore, and we want them to change the legislation to encompass the modern way that collision repair facilities do business.”

A letter to ABAC from Thomas Valentino, CPA and Jeffrey Cheney, CPA concurs that the current law is outdated in regards to how modern collision repair facilities do business. In the 1970s, paint was purchased for specific cars, but because it is now mixed in the shop, it is being considered as a consumable item under the current interpretation of the law.

The letter explained, “When paint is mixed for a specific customer and applied to the body of the auto, it is not a consumable when the repair shop is charging the customer separately for that item on the invoice, which at times can be a large dollar amount. Keeping

in line with what appears to be the intent of the statue, it reasons to be that this paint mixture should fall within the meaning of paint being purchased specific to a car and therefore be purchased on resale. We believe the original intent of the statute was to differentiate between consumable paint used by the auto repair shop versus paint used to finish an auto specifically for a customer.

By meeting the other aspects of the statute, ie., separately stating the charge for customers, etc., we believe the auto repair business should be allowed to include its paint mixtures under this law, and the law should be rewritten to conform with current approaches to repairs without losing the intent of the law.”

Their letter concluded, “It appears the Department of Revenue Services would be collecting tax twice on the same item. The purchase of the product should be for resale by the auto repair shop so that the final consumer pays a tax just one time. We believe this is what was originally intended by the law, but the method by which this particular item is purchased and applied has changed over time, and the law needs to address these current circumstances.”

PPG Presents Brilliant Colors & Colorful People at SEMA

During the SEMA show, PPG is bringing in the builders and painters who turn their imaginations loose to create designs and make them come to life with PPG brands. This group includes Bobby Alloway (Alloway’s Hot Rod Shop), Charley Hutton (Charley Hutton’s Color Studio), Dave Kindig (Kindig-It Design) and Tom and Mitch Kelly (Kelly & Son Crazy Painters). These painters will be in the PPG booth, ready to answer questions, sign autographs and talk about PPG products. In addition, popular graphic artist Kenny Youngblood (Youngblood Art) and racer Joey Logano, one of the fastest-rising young drivers on the NASCAR circuit, will also be at the booth. Logano currently drives the Team Penske PPG-painted No. 22 Ford Fusion in the NASCAR Sprint Cup Series.

“SEMA is a great time to see some remarkable cars, meet some outstanding painters and learn about what’s happening in our industry,” said Cristina Fronzaglia-Murray, manager, marketing communications, PPG Automotive Refinish.

Schedule for celebrity appearances at PPG booth #24601: Tuesday, November 3 10:00 – 11:00 a.m. Charley Hutton,

Charley Hutton’s Color Studio 12:00 noon – 1:00 p.m. Kenny Youngblood, Youngblood Art 2:30 – 3:30 p.m. Tom and Mitch Kelly, Kelly & Son Crazy Painters

Wednesday, November 4 10:00 – 11:00 a.m. Dave Kindig, Kindig-It Design 11:00 a.m. – 12:00 noon Bobby Alloway, Alloway’s Hot Rod Shop 1:00 – 2:00 p.m. Charley Hutton, Charley Hutton’s Color Studio 3:00 – 4:00 p.m. Kenny Youngblood, Youngblood Art

Thursday, November 5 10:00 – 11:00 a.m. Kenny Youngblood, Youngblood Art 12:00 noon – 12:30 p.m. Joey Logano, Team Penske 1:00 – 2:00 p.m. Bobby Alloway, Alloway’s Hot Rod Shop 3:00 – 4:00 p.m. Tom and Mitch Kelly, Kelly & Son Crazy Painters

Friday, November 6 10:00 – 11:00 a.m. Dave Kindig, Kindig-It Design 11:00 a.m. – 12 noon Charley Hutton, Charley Hutton’s Color Studio For information, call (800) 6476050 or visit www.ppgrefinish.com

www.autobodynews.com | NOVEMBER 2015 AUTOBODY NEWS 53

Continued from Page 52

SCRS Survey

5 years ago in the collision repair industry (November 2010) At the Collision Industry Conference (CIC) this month, Bob Frayer of NSF International spoke about his company’s non-OEM parts certification program launched in February.

Like the Certified Automotive Parts Association (CAPA) program, NSF certification requires the parts manufacturer to meet quality control requirements, and that parts undergo testing to determine they match OEM in terms of content, fit and function.

But unlike CAPA, NSF does not require that its labs conduct the actual testing of the parts; NSF merely audits that the parts manufacturer has had

testing done by a qualified facility.

“The manufacturers control testing,” Frayer said. “We can do the testing, but we only require the testing be done at an ISO 17025 accredited facility.”

NSF-certified parts bear the NSF mark, Frayer said, and certification requires the manufacturer to have a system in place to conduct a part recall if there is a safety concern. Although CAPA accepts and investigates complaints about parts it certifies, under the NSF program the parts manufacturer must have a system in place to accept and respond to complaints.

How does a shop know how to file such a complaint? Frayer said a phone number or email address for the manufacturer must be included on either the part or packaging.

NSF’s Frayer and CAPA’s Jack

Gillis were asked how the industry should view the fact that there are now multiple standards and certification programs for non-OEM parts. Gillis said he doesn’t see it as a good thing, and could create confusion, just as it would if competing drug stores had different standards for aspirin that consumers had to try to sort through.

“Multiple standards often signify a diminution of the concept of standards,” Gillis said.

Frayer said he doesn’t see multiple standards as a bad thing.

“If we were interested in only one standard, we would probably be buying only OEM parts and say that’s the standard and why don’t we stop there,” Frayer said. “I’d argue that both CAPA and NSF are not the first standard but the second and third in the industry (after OEM). I don’t per-

sonally think that’s a bad thing.”

– As reported in CRASH Network (www.CrashNetwork.com), November 22, 2010. Both CAPA and NSF continue to certify non-OEM parts, and NSF recently launched a body shop certification program.

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