Southwest Edition Texas Oklahoma Louisiana New Mexico
29
YEARS
VOL. 28 ISSUE 12 DECEMBER 2010
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Results of non-OEM Parts Crash Testing Revealed at November CIC in Las Vegas by John Yoswick
Non-OEM parts again dominated much of the agenda at the Collision Industry Conference (CIC), held in Las Vegas in November in conjunction with the SEMA show. The daylong meeting included presentations by Ford Motor Company, the Certified Automotive Parts Association (CAPA), and NSF International, the organization that launched another certification program for non-OEM parts earlier this year. Ford announced at the meeting that it had followed up its simulated crash testing of some non-certified
non-OEM bumper parts last summer with some actual low-speed crash testing of the parts (sold as replacements for the 2005–09 MusFord’s Paul Massie tang) in October. The effect of the use of non-OEM parts in a subsequent crash was clear, Paul Massie, powertrain and collision product marketing manager for Ford, said. “It will change the discussion from it ‘might’ change the airbag deSee CIC: Bumper Testing, Page 27
SEMA Week Collision Meetings Focused on Industry Standards and Estimating Systems by John Yoswick
Collision industry meetings held in Las Vegas in November centered around significant changes in the estimating systems, the development of formal industry standards, and related industry issues. The meetings were held in conjunction with the Specialty Equipment Market Association (SEMA) tradeshow in Las Vegas, a massive automotive aftermarket event that in recent years has been working to attract more exhibitors and attendees from the collision repair in-
dustry. During the previous six years, the International Autobody Congress and Exposition (NACE) was also held in Las Vegas the same week as SEMA, but NACE organizers moved that event several weeks earlier this year because of competition from SEMA. The Society of Collision Repair Specialists (SCRS) said its first-time partnership with SEMA this year was successful and that the association will will again participate in the event next November. Although only about 125 people attended the first-ever See SEMA Week Meetings, Page 26
CollisionHub.com founder
KRISTEN FELDER
“SOCIAL MEDIA”– Personal networking technology and its applications is more than just the chatter mechanism that teens use to communicate with other teens. It has made its presence unavoidable in the business world in recent years. Is it profitable? Worthwhile? Here to stay? Autobody News sat down with Kristen Felder, founder and CEO of CollisionHub.com—a new social media website for the collision repair industry—to ask what all the buzz is about.
ABN: What sparked your idea to create Collision Hub? KF: Well, five years ago, when Hurricane Katrina hit, I was working with State Farm Insurance Company. Most everybody’s cell phones were down after the storm, but a lot of people still had access to their social media accounts, which allowed the insurance companies a way to get a hold of customers. So I started to see social media as a very helpful tool thanks to that. Then, at NACE two years ago, I was talking to some colleagues and I thought it would be great if we could recreate that dialogue and debate within the industry more than just at expos once or twice a year. I wanted to create a place where people in the industry could talk openly and have a place to really get to know each other. I decided I wanted to build something to really connect the different segments of the industry.
ABN: What did it take to get Collision Hub off the ground? KF: I spent 3–4 months programming and building the site. I didn’t have any formal web or HTML training so I sort of learned on the fly.
INTERVIEW by Erica Schroeder Also in this issue...
continued on page 24
Collision Hub Implements its Social Media strategy by David M. Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 25 Social Media 101: Why Social Media Matters in Collision Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 26
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Contents 12 Accused in Louisiana Staged Vehicle Crashes . 6 Alabama-Made Auto Sales Up 23% from
Dismal 2009 . . . . . . . . . . . . . . . . . . . . . . . . . 35
Auto Enthusiast Gaining Support for Dallas
Automotive History Museum . . . . . . . . . . . . . 12
AutoBody America Acquires Little Rock, AK, Shop . 4
Caliber Collision Opens Third Shop in El Paso,
Texas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
CCAR Recognizes Texas shop as ‘GreenLink Shop’. 4
Classic Collision Opens 8th Location in Metro
Weaver - Dude, Meet My Daughter. . . . . . . . . . . 18 Yoswick - Results of non-OEM Parts Crash Testing
Revealed at November CIC in Las Vegas . . . . . 1
Yoswick - SEMA Week Collision Meetings Focused
on Industry Standards and Estimating Systems. 1
NATIONAL
AutoNation Sees Major Acquisitions in 2011 . . . . 9 AutoTrader.com to Purchase Kelley Blue Book. . 34
Bush Book: Automaker Bailout was “Responsible
Action” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Atlanta. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Chief Announces Chief University, Design Based
Dealership . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
China to become GM’s Largest Market in 2011 . . 9
Crown Automotive Buys Chattanooga, TN,
Repair Training at SEMA . . . . . . . . . . . . . . . . 30
Deer-Auto Accidents on the Rise in Oklahoma . . . 4
China’s Largest Automaker Plans 1% Stake in
First Porsche Approved Collision Center Comes
Fiat Has Big Plans for U.S. Auto Sales . . . . . . . . 31
to Atlanta. . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Hail Damage Keeps Repair Crews Busy in East TX . 4 Heartland Automotive Acquires Kerr Enterprises
in Louisiana. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
High-Risk Driver Rates Falling in Texas. . . . . . . . . 6
GM IPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Five More Las Vegas Families Receive Reliable
Transportation at SEMA from NABC . . . . . . . . 21
Ford Cuts Mazda Stake . . . . . . . . . . . . . . . . . . . . 9 General Motors IPO, One of Two Largest in History,
Generates $16–23 Billion. . . . . . . . . . . . . . . . 28
May Hail Storm Disaster Economic Boon for
Los Angeles Dealership to be first to sell Fiat
Next Autoworks to Expand in Ouachita Parish, LA . 10
Matrix System Walks Away as a Winner with
OKC Economy . . . . . . . . . . . . . . . . . . . . . . . . . 6
Nissan JUKE Wins ‘CUV of Texas’ Award from
brand in the U.S.. . . . . . . . . . . . . . . . . . . . . . . 9
Salt Eraser® . . . . . . . . . . . . . . . . . . . . . . . . . . 31
TX Auto Writers Association. . . . . . . . . . . . . . . 8
Mercedes-Benz Financial is new Daimler
Lewisville, TX, Public Park . . . . . . . . . . . . . . . 10
Mickey Harris’ American Pride Camaro
Toyota Dealership Buys Naming Rights to Woman Named in $80,000 Texas Glass
Distribution Suit . . . . . . . . . . . . . . . . . . . . . . . . 6
COLUMNISTS
Financier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Commands Attention at SEMA . . . . . . . . . . . . 14
NCOIL Tables Model Steering Act, for Now. . . . . 24 SCRS Thanks Repairer Education Sponsors at
SEMA 2010. . . . . . . . . . . . . . . . . . . . . . . . . . 13
Amaradio - My Customer, the Crash Test Dummy . 23
SCRS to Cover Membership Costs for Industry
Media Strategy . . . . . . . . . . . . . . . . . . . . . . . 25
Social Media 101: Why Social Media Matters in
Brown- Collision Hub Implements its Social
Espersen, Webster - Got Information? . . . . . . . . 32
Franklin - Promotion Up Close and Personal . . . . 16
Schroeder - AC Collision Opens in Gonzales,
Texas, Thanks to Family Ties . . . . . . . . . . . . . 22
Schroeder - Social Media Interview with
Kristen Felder . . . . . . . . . . . . . . . . . . . . . . . . 24
Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Collision Repair . . . . . . . . . . . . . . . . . . . . . . . 26
Tesla Offers Battery and EV Tech to Toyota,
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Toyota Expects 13% Rise in U.S. Sales . . . . . . . . 9
Wicklund’s CARSTAR Honors Kansas City Area
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Editorial Assistant: Erica Schroeder Contributing Writers: Tom Franklin, John Yoswick, Lee Amaradio, Dan Espersen Janet Chaney, Toby Chess, Mike Causey, Tom McGee, David Brown, Rich Evans, Ed Attanasio Advertising Sales: Joe Momber, Christina Shubert (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
Indexof Advertisers
El Paso, NM, Auto Thefts Down 14 Percent . . . . 10
Veterans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Southwest
REGIONAL
Serving Texas, Oklahoma, Louisiana, New Mexico and adjacent metro areas, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.
Autobody News
Box 1516, Carlsbad, CA 92018; (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Autoland Scientech. . . . . . . . . . . . . 18
Mercedes-Benz of Oklahoma . . . . . 31
Chacon Suzuki . . . . . . . . . . . . . . . . 19
Mitsubishi Wholesale Parts Dealers. 34
Classifieds. . . . . . . . . . . . . . . . . . . . 35
Nissan/Infiniti Wholesale Parts
BMW Wholesale Parts Dealers . . . . 30
Chevyland . . . . . . . . . . . . . . . . . . . . . 8
David McDavid . . . . . . . . . . . . . . . . . 2
Mike Calvert Toyota. . . . . . . . . . . . . 14
MOPAR Wholesale Parts Dealers . . 11 Dealers . . . . . . . . . . . . . . . . . . . . 19
Ford Wholesale Parts Dealers
Parkway Family Mazda . . . . . . . . . . 28
Fredy Kia . . . . . . . . . . . . . . . . . . . . . . 6
Ray Huffines Chevrolet . . . . . . . . . . . 5
TX, OK, LA, NM. . . . . . . . . . . . . . 20
Gene Messer Hyundai . . . . . . . . . . 21
Performance Radiator. . . . . . . . . . . . 4
Replica Plastics. . . . . . . . . . . . . . . . 29
Garmat USA . . . . . . . . . . . . . . . . . . 22
Scoggin-Dickey Buick . . . . . . . . . . 13
Honda/Acura Wholesale Parts
Scorpion . . . . . . . . . . . . . . . . . . . . . 12
GM Wholesale Parts Dealers . . . . . 28
SCA Appraisal Company . . . . . . . . 10
Dealers . . . . . . . . . . . . . . . . . . . . 34
Subaru Wholesale Parts Dealers . . . 7
Hyundai Wholesale Parts Dealers . 23
Toyota Wholesale Parts Dealers . . . 31
Huffines Hyundai Plano . . . . . . . . . . 8 Kia Motors Wholesale Parts Dealers 15
Suzuki Wholesale Parts Dealers . . . 14 VIM Tools. . . . . . . . . . . . . . . . . . . . . 32
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 36
Volkswagen Wholesale Parts Dealers 16
Mazda Wholesale Parts Dealers . . . 21
Young Chevrolet . . . . . . . . . . . . . . . 29
Malco. . . . . . . . . . . . . . . . . . . . . . . . . 9
Volvo Wholesale Parts Dealers . . . . 16
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 3
Heartland Automotive Acquires Kerr Enterprises in Louisiana
Caliber Collision Opens Third Shop in El Paso, Texas
Deer-Auto Accidents on the Rise in Oklahoma
Hail Damage Keeps Repair Crews Busy in East TX
Heartland Automotive Services, Inc., America’s largest Jiffy Lube Franchisee, acquired Kerr Enterprises, Inc, dba Texaco Xpress Lube, the operator of Texaco Xpress retail service centers throughout Louisiana in early November. The integration of the Texaco Xpress stores will broaden the footprint Heartland Automotive established earlier this year with the acquisition of Cajun Lube and CCR Lube stores. Heartland Automotive now operates 16 stores throughout the Louisiana market. The addition of these stores bolsters their presence in LA and continues to strengthen the company’s base in the Southern United States in preparation for future expansion. “The Texaco Xpress Lube stores were a synergistic addition to our existing store base and represents our continued commitment to serving the Louisiana market with what we believe to be the best quick oil change in the industry,” said Brett Ponton, Chief Executive Officer at Jiffy Lube Heartland. All 44 of the incumbent Texaco Xpress Lube teammates will be invited to remain in their current positions following the Jiffy Lube Heartland acquisition.
The Oklahoma Wildlife department says the best advice when driving through deer-populated areas is to slow down and pay attention — especially in lower populated areas — and to never swerve, according to reports made by KTUL News Channel 8 Tulsa. Daniel Griffith, with the Oklahoma Wildlife Department says, “Push on your breaks, try not to veer because the worst thing that can happen is you steer into on coming traffic, steer off the side and hit some other type of object, tree guardrail.” October and November are the two leading months for people to get in an accident with a deer. In 2009 more than 650 deer were hit on Oklahoma roads, and more than 250 of those deer were hit in October and November. That’s because these months are white tail mating season. The primary times you will see a deer on the road is early in the morning and in the evening. So if you are in a low populated area you may want to look for the signs. If you have hit a deer and are wondering what to do with the carcass. Just call the Department of Transportation and they will remove it for you.
Caliber Collision Centers, with 79 locations in California and Texas, has announced the opening of a third Caliber Collision Center in El Paso, Texas. Caliber’s new El Paso-Mesa facility is located on North Mesa Street in El Paso, Texas with the other two facilities on Gateway Blvd East (IH10) and Montana Avenue. After remodeling and expansion of the existing building, Caliber’s newest facility is now equipped with state-of-the-art repair equipment and Caliber associates ready to provide customers with a high quality customer satisfaction. Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer, stated, “The opening of our newest El Paso location further supports our long-term growth strategy. This center was specifically designed to more effectively restore hard-working Texans to the rhythms of their lives with world-class Caliber customer service. We are excited about expanding our penetration into the El Paso area to meet the demanding needs of vehicle owners across the growing El Paso market. This center is strategically located to significantly increase our insurance carrier coverage.”
Following the violent storms that moved through East Texas on October 24, both auto body shops and roofers have been flooded with calls about hail damage. “The wind was ferocious and the hail was coming down,” said Mike Flynn, a Flint homeowner. Hail poured from the East Texas sky, pummeling thousands of rooftops, leaving cars to fend for themselves and residents taking cover. The damage is keeping technicians at Keith Hodges Collision in Tyler, TX, busy. He’s been repairing hail dings on cars all day. “It would probably take about three hours or so to take all the dents out. So, it’s a pretty tough job,” said Hodges.
CCAR Recognizes Texas shop as ‘GreenLink Shop’
The Coordinating Committee For Automotive Repair (CCAR®) recognized Service King-Kingwood in Kingwood, Texas, as a “GreenLink Shops” in November. The GreenLink Shop status, an extension of CCAR’s CCAR-GreenLink® Environmental Compliance Assistance Center and S/P2® Safety and Pollution Prevention E-learning Program, is designed to promote consumer confidence in local automotive repair facilities’ environmental/safety awareness and stewardship. “The addition of [this shop] brings our total to 86 GreenLink Shops recognized since the program’s introduction in January 2010,” said Daren Fristoe, CCAR President. Repair facilities seeking the GreenLink Shop recognition must maintain high standards of excellence in environmental, health and safety (EHS) practices in four categories: business operations, employee training, safety compliance and environmental management. The CCAR initiative recognizes both auto mechanical service facilities and collision repair shops, with separate criteria established for each type of business.
AutoBody America Acquires Little Rock, AK, Shop
AutoBody America, a multi-shop operator with locations throughout Tennessee and Mississippi, acquired Greg Helmbeck’s Collision Repair in Little Rock, Ark. This is the 13th location in the AutoBody America family and the first in Arkansas. The 9,000-square-foot facility is located in Sherwood. AutoBody America said it is the largest independently owned and operated collision repair organization in Tennessee. It operates facilities in the Tennessee cities of Memphis, Nashville, Clarksville, Murfreesboro, Chattanooga, Jackson, and Columbia. It also has locations in Southaven, Miss. and Jackson, Miss. Patrick James, CEO of AutoBody America stated, “After building out our footprint in Tennessee and Northern Mississippi, we felt it was important to enter the central Arkansas market to serve both our retail and insurance customers. We have spent the past year searching for the right facility and ... found that with Greg Helmbeck’s.” AutoBody America continues to seek companies in TN, MS and AK. For more information visit www.autobodyamerica.com.
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12 Accused in Louisiana Staged Vehicle Crashes A Claiborne Parish family and a handful of other individuals have been indicted by a federal grand jury in connection with a series of staged vehicle crashes in several north Louisiana parishes over a five-year period, according to the Shreveport Times. The 12 defendants were arrested in November on charges of conspiracy, mail fraud, wire fraud and health care fraud. They include Bobby Lee Kimble, 39; Johnny Kimble, 45; Larry Kimble, 30, of Athens; Roy Kimble, 31, of Arcadia; Tony Kimble, 24, of Homer. Also, Monica Jenkins, 22, of Athens; Latiffy Robinson, 27, of Homer; Mary Lee Tate, 24, of Arcadia; Shuntorian Turner, 30, of Minden; Joe Abbott, 51, of Arcadia; Marcus Kimble, 27, of Arcadia; and Damario Henderson, 21, of Homer. The state police, Minden Police Department, Claiborne Parish Sheriff’s Office and the U.S. Marshal’s Task Force jointly apprehended nine of the suspects initially. The next day, two surrendered to state police investigators at the U.S. Courthouse in Shreveport. One of the defendants, Henderson, is incarcer-
High-Risk Driver Rates Falling in Texas
Insurance rates for high-risk drivers insured through the Texas Automobile Insurance Plan Association (TAIPA) will decrease overall by 7.6 percent from 2010 rates effective Jan. 1, 2011. According to TAIPA, Texas Insurance Commissioner Mike Geeslin’s order decreases overall rates for TIAPA personal auto insurance policies according to Insurance Journal. Also effective Jan. 1, the minimum amounts of motor vehicle liability insurance coverage required to establish financial responsibility in Texas will be: 30/60/25, or $30,000 for bodily injury to or death of one person in an accident; $60,000 for bodily injury to or death to two or more persons in one accident; and $25,000 for damage to or destruction of property in an accident. Texas currently requires motorists to carry a minimum of $20,000 protection for bodily injury liability per person, $40,000 per accident and $25,000 for property damage liability—or 20/50/25. In 2010, TAIPA rates saw a 2.2percent increase from 2009 rates, according to OnlineAutoInsurance.com.
ated at the Claiborne Parish Detention Center on an unrelated theft charge and will be taken into federal custody at a later date. State troopers assigned to the Region II Criminal Investigation Division’s Insurance Fraud Unit/Auto Theft Unit at the Monroe field office conducted the investigation that began in May 2008. Their investigation indicated the Kimble family of Athens and the others were staging vehicle crashes, prompting fraudulent insurance claims to be filed with various insurance companies that netted over $40,000. They were indicted Sept. 24. This is not the first time indictments have been for staged car crashes. In 2006, 15 people, most of whom were from Ringgold, were indicted for conspiracy to commit mail fraud and mail fraud. Some had additional charges of health care fraud. Another ring was busted in 2004 in Red River Parish. Eighteen people, including 16 from Coushatta, were indicted on charges of conspiracy and mail, wire and health care fraud. Twenty traffic accidents were staged between June 1999 and July 2001.
Woman Named in $80,000 Texas Glass Distribution Suit
A Humble, Texas, woman is among the defendants being sued by a Texas glass distribution company, alleging that it is owed nearly $80,000 for automobile glass goods it delivered to the defendants according to Ultimate Lake Houston News. All American Glass Distributors filed a lawsuit on Oct. 15 in the Harris County District Court against Texas Auto Glass & Upholstery LLC, formerly known as Apache Auto Glass Co., Laura Carden and Humbles Meghan Jaks, individually and as custodian for Trevor Jaks, alleging fraud, breach of contract and deceptive business practices. The plaintiff says that it was not paid for the goods it delivered and attempts to collect went ignored. Furthermore, the plaintiff alleges that in an effort to get out of its debt, the defendants transferred the business name to a minor. The plaintiff is seeking damages including actual damages, exemplary damages, court costs and any other damages it is entitled to by the court. The plaintiff is being represented in the case by Houston attorney Stacey L. Barnes. Harris County District Court Case No. 2010-68386.
6 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
May Hail Storm Disaster Economic Boon for OKC Economy
A disaster has turned into huge dollars for Oklahoma City. City leaders say the massive hail storm that hit the metro back in May has brought big bucks to the city’s economy. Since the hail storm five months ago, the city has seen two or three times the spending increase compared to many other city’s around the state. Roofing companies, for one, have seen record business.
“It’s the hardest I’ve ever worked in the 10 years since I owned my business,” said Mike Curtis. Curtis owns Crossroads Roofing, a local wholesale supplier of roofing parts. He says May’s hail storm brought in more money than any storm he’s ever seen.
“I would say we’ve absolutely sold 2 or 3 times more than we did the year prior,” said Curtis. “Normal growth in sales tax is 4 percent. We’re looking at 14 percent for October, so it’s been a significant increase,” said Oklahoma City budget director Craig Freeman. Specifically, comparing this year to last, Oklahoma City’s sales tax collections are up 13.81 percent. Norman is up only 4.93 percent. Edmond is up 3.47 percent. Yukon is up only 1.49 percent. It’s clear the impact the May storm has had on the state. “We believe right now, two-thirds of the growth we’re seeing in sales tax is related to the storms,” said Freeman. It’s not just roofs, auto parts businesses have also been booming. Even hotels and restaurants saw increases because of all the out of town workers. Unfortunately, city leaders say the economic boost is just starting to wind down.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 7
Bush Book: Automaker Bailout was “Responsible Action” George W. Bush says he decided to ‘rescue’ General Motors and Chrysler in November 2008 because of the huge consequences for the economy if he did not act—and he acted despite his belief that the carmakers had dug their own holes. “My economic advisers had warned that the immediate bankruptcy of the Big Three could cost more than a million jobs, decrease tax revenues by $150 billion and set back American’s GDP by hundreds of billions of dollars,” he writes of his bailout of the U.S. auto industry in his memoir, Decision Points. Bush blames the auto industry’s woes on “decades of poor management” that “saddled automakers with enormous health-care and pension costs. They had been slow to recognize changes in the market. As a result, they had been outcompeted by foreign manufacturers in the product and price.” Bush also discloses that he rejected a request for a bailout before the 2008 presidential election from GM CEO Rick Wagoner. Bush says he reversed his stance that government should stay out of the auto business when he saw how a bankruptcy would hammer the econ-
omy. Bush also considered his successor in the decision. “I told Barack Obama that I wouldn’t let the automakers fail,” Bush writes. “I won’t dump this mess on him.” President Bush announced on Dec. 18, 2008, that the U.S. government would provide GM and Chrysler $13.4 billion in emergency funding. An additional $4 billion was made available for the car companies in February. This funding allowed the companies to survive until bankruptcy reorganization saved them. At the time President Bush said: “These are not ordinary circumstances, in the midst of a financial crisis and a recession allowing the U.S. auto industry to collapse is not a responsible action.” In his reflections on the subject recently Bush made no mention of his efforts being a stop-gap measure or Obama’s follow up to the crisis. The Obama administration financed the bankruptcy reorganization of GM and Chrysler, effectively rescuing the U.S. auto industry, including Ford, which has acknowledged it would have been decimated by Tier 1 (supplier) failures in the domestic supply chain. See related details on the GM IPO this issue.
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Nissan JUKE Wins ‘CUV of Texas’ Award from TX Auto Writers Association The all-new 2011 Nissan JUKE brought home top honors from this year’s Texas Auto Writers Association (TAWA) Truck Rodeo winning the “CUV of Texas” trophy. Automotive media from across the state of Texas converged on the Knibbe Ranch in San Antonio this weekend to participate in the rodeo voting on their favorite trucks, SUVs and CUVs in approximately 20 categories. “Obviously, we think the Nissan JUKE is something special and is going to shake things up in the CUV category with its styling and performance capability,” said Pat Steiner, regional vice president, Nissan North America. “But to receive this kind of validation from the respected journalists of TAWA affirms we’re going in the right direction.” The Texas Truck Rodeo is a media ride-and-drive program held annually by the Texas Auto Writers Association. The rodeo allows journalists to drive trucks, SUVs and CUVs from the auto manufacturers on- and off-road over a two-day period voting on the vehicles’ performance in various categories. “The Nissan JUKE was a breath of fresh air at this year’s rodeo with
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its unique and aggressive styling,” said Michael Herzing, president of TAWA. “On top of that it’s fun and exciting to drive. I think it’s going to surprise a lot of people and bring home a lot more awards.” The all-new 2011 Nissan JUKE sport cross draws on a number of active lifestyle influences, including motorcycles and rally cars, to create a breakthrough design among traditional B-segment hatchbacks. Along with its bold design and highly distinctive, sport styling inside and out, JUKE brings unexpected levels of performance from a standard 188-horsepower 1.6-liter Direct Injection Gasoline (DIG™) turbo 4-cylinder engine and an advanced torque vectoring all-wheel drive (AWD) system – performance technology usually reserved for premium vehicles. The Nissan JUKE hits showrooms this month with a starting price of $18,960. TAWA will present Nissan with the “CUV of Texas” trophy during an awards ceremony, Nov. 12 at Space Center Houston in Texas. More information can be found online at www.NissanUSA.com and www.InfinitiUSA.com.
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China’s Largest Automaker Plans 1% Stake in GM IPO
Tesla Offers Battery and EV Tech to Toyota, Others
SAIC Motor, China’s largest automaker, is in talks to acquire about a 1% stake in General Motors, according to the Wall Street Journal’s web site. The stake would be worth about $500 million. The automaker is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia, giving foreign investors about 16% of the IPO’s shares. The IPO will mark GM’s return to being a publicly traded company after it filed for bankruptcy protection in June 2009.
Tesla Motors has offered to license its battery and other EV technologies to Toyota and others, according to its CEO Elon Musk. Tesla has already contacted tie-up partners Toyota and Daimler and asked them if they are interested in licensing its technologies, Musk said. Tesla is also interested in partnering with Toyota in the area of customer service, Musk said, adding that Tesla’s cars can be serviced at Toyota facilities. Musk expects Japan to become the company’s largest market outside of the US. Two of Tesla’s major shareholders are Toyota and Panasonic.
This year, for the first time, GM could sell more vehicles in China than in the United States. So far in 2010, GM says its Chinese joint ventures sold 1,977,000 units, up nearly 36 percent. Over the same period, GM sold 1,819,000 vehicles in the United States, up 6 percent. Since industry sales in China are expected to exceed 17 million units this year—well above the U.S. market’s likely 11.5 million units—China is virtually certain to become GM’s biggest market this year. GM’s sales were up 20% from Oct. 2009.
Toyota Motor Corp sees U.S. new light vehicle sales rising as much as 13 percent next year, buoyed by several factors including a slight rise in sales of pickup trucks. Bob Carter, sales chief for the Toyota brand in the United States, said the company expects 2011 industry sales at between 12.5 million and 12.9 million, up from this year’s expected rate of 11.4 million to 11.5 million. U.S. sales are slowly recovering from the low of 10.4 million new cars and trucks sold in 2009, after a 10-year stretch when annual sales averaged 16.4 million vehicles.
China to become GM’s Largest Market in 2011
Toyota Expects 13% Rise
Mercedes-Benz Financial is new Daimler Financier
LA Dealership to be first to sell Fiat brand in the U.S.
Ford Cuts Mazda Stake
AutoNation Sees Major Acquisitions in 2011
Daimler Financial Services has changed its name to Mercedes-Benz Financial Services USA. The change is the last step in a “clean sheet of paper” approach to the U.S. market, according to a company statement. The company separated from DaimlerChrysler Financial Services Americas in 2007 after Daimler sold Chrysler to Cerberus Capital Management. Nothing else will change for the financier, which remains the financial unit for Mercedes-Benz USA, its dealers and customers, as well as Smart USA dealers and customers.
Ford will be transferring the majority of its shares in Mazda to various business partners of the Japanese automaker, thus lowering its ownership stake. However, the two OEMs will remain strategic partners, according to Mazda. Ford has 11% ownership stake in Mazda. Ford will hold on to a 3.5% stake in the automaker and is transferring the rest of its shares to Mazda’s business partners. “Ford will remain one of Mazda's largest shareholders, and both companies are committed to continuing our strategic partnership,” said a Mazda spokesperson.
A factory-owned Chrysler dealership in downtown Los Angeles will be the first store to sell Fiat-brand vehicles in the U.S. when it opens the first week in January. Motor Village of Los Angeles will have three showroom floors and sell Fiat vehicles, along with Chrysler, Dodge, Jeep and Ram vehicles, said Ramon Cabral, sales manager at the dealership. The dealership has been known as La Brea Chrysler Jeep, is currently located about five miles west of downtown Los Angeles. Chrysler has owned La Brea Chrysler Jeep for about five years.
AutoNation CEO Mike Jackson is about to take advantage of industry stability and the falling price of dealerships. With 13 million in annual U.S. light-vehicle sales expected shortly,AutoNation plans to renovate or expand 24 stores (nine renovations will cost more than $5 million each) and open 11 completely new stores, including seven Fiat stores. The company is taking advantage of dramatically lower dealership and real estate costs. Jackson wants to have at least one of every brand in each ofAutoNation’s 25 major markets.
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 9
Toyota Dealership Buys Naming Rights to Lewisville, TX, Public Park
Amateur sports leagues aren’t used to bidding wars to name the usually public facilities in which they play but that may be changing. A Dallas suburb now has a public park for amateur sports leagues called Toyota of Lewisville Railroad Park—named after a local auto dealership, said the dealer, Rene Isip. Isip’s dealership has agreed to pay $1.5 million over 10 years for the name and the right to post logos, signs and banners throughout the 268-acre park. The first signs went up last month. “I want to create a buzz about the dealership that gives us more name recognition,” Isip said. “The park is a stable ground that anchors us to the city more so than any other dealership.” The dealer is paying more than originally intended. His initial offer to the city was $100,000 a year rather than $150,000, but Isip said he is excited by the arrangement. He hasn’t estimated the potential return on his investment. “I’m looking to be tied into the city of Lewisville,” Isip said. The fee comes out of the dealer-
ship’s advertising budget, leaving $1.2 million for newspaper, radio, TV, Internet and direct-mail purchases. Isip’s store is in a competitive environment during a slump in new-car sales. Four other Toyota dealerships are within 15 miles of Toyota of Lewisville. In addition, the store’s new-vehicle sales fell 17 percent in 2009 to 2,036. On top of that, Toyota’s huge safety recalls for unintended acceleration cut deeper into the dealership’s sales early this year, Isip said. The City Council of Lewisville, a middle-class city of 100,000 about a 20-minute drive north of downtown Dallas, came up with the idea of naming rights to help pay for the city’s new $22 million complex. The contract also allows the store to have vehicle display areas at the park that can be used for customer test drives. Isip said he also may station employees in the park to suggest car
V-Vehicle, the San Diego-based automotive startup, has a new name and a new CEO. The company, which has been rechristened Next Autoworks, named former Tower Automotive CEO Kathleen Ligocki as chief executive earlier this week. Next Autoworks also has operations in Detroit and northeastern Louisiana, where the company hopes to hire 1,400 workers to manufacture its gasoline-powered, four-door compact at a former Guide Corp. plant in Ouachita Parish. At Tower, Ligocki led a restructuring of the global automotive supplier that culminated in its sale for $1 billion to Cerberus Capital Management. Ligocki, who also served as CEO of GS Motors, replaces Ray Lane, the Kleiner Perkins partner who stepped in as interim CEO at the end of March, after the U.S. Department of Energy rejected V-Vehicles application for $320 million in loans under the agency’s Advanced Technology Vehicle Manufacturing program. Founding CEO Frank Varasano and Horst Metz, the vice president of assembly operations, departed the company at the time.
El Paso police said so far in 2010, there have been 1,283 auto thefts, a 14 percent decrease from the same time last year according to KFOX News Albuquerque. El Paso police also released auto theft statistics for the last few years. YEAR NO. OF AUTO THEFTS 1996 4,360 1997 3,571 1998 2,657 1999 2,307 2000 2,442 2001 1,836 2002 1,998 2003 1,860 2004 1,840 2005 2,580 2006 3,552 2007 3,049 2008 2,753 2009 1,890 2010 1,283 (YTD) Police said there has been a 66.5 percent decrease in stolen vehicles from 1990 to 2009. A spokesman for the Police Department said since the first full year of the El Paso Police Department auto theft task force in 1994, there was a 29.6 percent decrease from the year before (1993), and a 51.58 percent decrease compared to 2009.
Next Autoworks to Expand in Ouachita Parish, LA
El Paso, NM, Auto Thefts Down 14 Percent
10 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
service at the dealership, a mile and a half away. The complex consists of 16 lighted soccer, baseball and football fields; a skateboard park; three manmade lakes to be stocked for catfish fishing; a 6-1/2-acre dog park; and a 1-1/2-mile walking trail. Signs with the park and dealership name will appear at the two entrances to the complex, at the baseball and skateboard parks, at the concession stands and in the parking lots. “These are dignified and attractive signs that give the dealer subtle exposure while not being in your face,” said James Kunke, the town’s community relations director. “He’s been a good partner every step of the way.” Isip, 51, was born in the Philippines and moved to the Dallas area when he was 9. He built the Toyota store in 2004 after working as general manager of a nearby Honda dealership for 10 years.
He also owns a Honda store in Katy, Texas, about 250 miles away. Last year, the city of Lewisville decided to find a business willing to pay for naming rights at the new park to ease the burden on residents, who were paying a local sales tax to fund the park. To find a local business, the city paid $230,000 to CSL Marketing Group, which had been hired by the New York Yankees to sell suites at Yankee Stadium. A growing number of cities are starting to sell naming rights to public parks as the economic slump continues to deplete municipal income, a CSL Marketing group spokesman said. For example, the Dallas suburb of Plano, where CSL is based, has hired the firm to devise a plan to sell naming rights for the town’s 80 public parks, the spokesman said. The emerging trend offers new marketing opportunities for dealerships, which have long been interested in buying naming rights for everything from high school football stadiums to radio stations to NASCAR racetracks.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 11
Auto Enthusiast Gaining Support for Dallas Automotive History Museum
Stephen Page is on the ride of his life, if mostly uphill, as he tries to find support and funding to create an auto museum at Fair Park in Dallas according to reports made by the Dallas Morning News. The project may cost $30 million, but Page figures getting things rolling is the hardest part, and things will pick up speed after that. For the last year, Page has devoted virtually all of his time to seeking support for a museum of automotive history in Fair Park — a concept that could cost $30 million or more. But he figures that if he can just get the Texas Museum of Automotive History rolling, it could quickly gather momentum in carcrazy Dallas. Wilbert Grinsven builds a stage inside Grand Place at the temporary quarters for the Texas Museum of Automotive History at Fair Park in Dallas. Grinsven built most of the props in the museum. “There are 88 car museums in America, but only a couple of them are world-class,” said Page, 55, a lifelong car enthusiast and founder and former CEO of Page-Wheatcroft & Co., a senior-level executive search firm. “My intent is to build a world-class auto museum at Fair Park.” The proposed museum has moved into temporary quarters in the Grand Place Building at Fair Park and held a grand opening fundraiser there in late November. The Grand Place Building — an open, 70,000-square-foot facility with concrete floors and thick steel columns — is a temporary stop, Page says. If he succeeds, the auto museum will move into a refurbished Science Museum at Fair Park in a couple of years, filling most of the 140,000 square feet of space there with 200 or more special cars. “I’ve become a professional beggar,” said Page, who has lived in Dallas since 1980. “We have raised $100,000 to open the temporary museum, but ultimately, we’re going to have to raise $30 million to restore the Science Place building to its original glory.” Making an automotive museum of the colorful 277-acre facility in Dallas’ inner city makes perfect sense to Page, a big fan of the park’s ‘30sera art deco buildings.
The museum would show Dallas’ connection to racing, Page said, while celebrating fine cars in general — often with video and movie presentations at the stands where vehicles are displayed. But it would have a critical community function as well. The museum intends to open an on-site “restoration factory” that would train at-risk teenagers in body work and other skills. Supporters hope that some of the teenagers in the program would eventually open repair facilities of their own in the Fair Park area. Page wants to make the museum available for private parties and events, perhaps even using the park-
12 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
ing lot for occasional car shows. Over the last year, he has been meeting with city officials, business representatives, City Council members and anyone else who will listen to his museum pitch. Page got involved in it a little more than a year ago when he was looking for a place to store his race car. He quickly realized that this area doesn’t have even an “adequate” public car museum, “much less a worldclass facility.” For the last several months, Grinsven and assistant James Johnson have been constructing props for the auto displays in the museum — stylish art-deco replicas of settings
like a 1940s-era Texaco station with a rounded front. While those efforts are steps forward, Page acknowledges that what he really needs now are some heavyweight, high-profile supporters. Enthusiasts, car dealers, Fair Park backers and others have all said they like his concept. Page believes the museum is gaining momentum. “This has consumed me for a year with no pay,” he said. “We’re three conversations away from having the funds we need. It could be Exxon or Shell or Ford, and they say, OK, they want to be the naming sponsor. But we’re going to get this museum built.”
SCRS Thanks Repairer Education Sponsors at SEMA 2010 The Society of Collision Repair Specialists (SCRS) is thanking the group of sponsors that provided significant financial support to get the inaugural Repairer Driven Education (RDE) program off and running. The sponsors were: BASF, GM, PPG, LKQ, and 3M. RDE’s introduction cycled over 125 individuals through two days of educational offerings. “As a collision repairer, I have attended this show numerous times, but this one was the best. The one thing missing from the past SEMA Shows I felt was a stronger presence of the collision industry segment and there was truly a big difference this year,” said Joel Lofton, RDE attendee and owner of Barnett’s Body Shop in Ridgeland, Mississippi. “The Repairer Driven Education courses were fantastic! All of the speakers were great and left a tremendous impression on all who attended.” “Now, more than ever, the industry needs relevant education,” said BASF OEM and Industry Relations Manager, Joseph Skurka. “The complexity of modern vehicles and the products and techniques needed to repair them is growing all the time. BASF’s philosophy is to make our
customer, the shop, more successful, and they can’t be successful without the up-to-date information and training that a program like RDE provides. SCRS provided a great opportunity for the industry that we were more than happy to support.” “I was so impressed with how great the SCRS RDE training classes were at the SEMA Show,” added Forest Holt, Owner of Southwest Body Shop in Amarillo, Texas. “The series added so much relevance to my experience at the show, and I received very usefull information that will help me in my business tomorrow. As an industry we need this information desperately, and I can’t thank SCRS or the sponsors of the series enough for providing this opportunity to the industry!” “The magnanimous contribution of our RDE sponsors demonstrates their understanding of the need for quality instruction,” SCRS Executive Director Aaron Schulenburg said of the sponsoring companies, “Their vision and foresight in being involved during the first of many years for this event, helped SCRS to address a critical industry need, and create a solid foundation that RDE can build upon going forward.”
Crown Automotive Buys Chattanooga, TN, Dealership Crown Automotive Group, a leading national auto dealer group, announced the purchase of the Chrysler, Jeep, Dodge, Ram dealership in Chattanooga November 16 according to WTVC News Chattanooga. The purchase process began in February 2010 and was finalized on October 26 of this year. The new dealership is expected to bring 100 jobs to the area. “Over the past year, dealerships of all brands across the nation have been up for sale. We researched many of these options and identified Chattanooga and Chrysler as the best opportunities,” commented Dwayne Hawkins, founder and president of Crown Automotive and Birmingham, Alabama native. “Chattanooga is a beautiful city with great people and a thriving economy. The more we looked, the more we liked it. Any time an automotive company decides to go into a market it’s because they see tremendous potential, and we are investing $11 million.” Crown Automotive chose the Chattanooga area and the Chrysler brand for numerous reasons. Chattanooga’s vibrant economy, highly educated work force and family-oriented community were key factors in Crown’s decision.
Further, the group has worked with Chrysler for decades and operated multiple Chrysler stores. Chrysler has recently undertaken extensive design modifications and upgrades to offer consumers world-class vehicles with new products, new technology and greater fuel efficiency. An extensive, multi-million dollar renovation and redesign of the Chapman Road facility is currently underway. When the new store opens this January, it will be state of the art including all of Chrysler’s latest dealership design and image styling, for both the interior and exterior. It will also hold the distinction of being a “Chrysler Image Facility.” The dealership will open with about 300 new and used vehicles and offer parts, service and financing centers. In addition to consumer vehicles, Crown Automotive will offer trucks and vans for commercial use. The new dealership will also be heavily involved in charitable and civic organizations in Chattanooga. Being a part of and giving back to the community are core values of Crown Automotive and the group’s existing dealerships support children, education and health oriented organizations in their respective communities.
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Mickey Harris’ American Pride Camaro Commands Attention at SEMA Airbrush artist, Mickey Harris showed off his most recent art flour-
ishes on a 2011 Camaro at the Specialty Equipment Marketing Association (SEMA) show this year. The American Pride Camaro car was commissioned by GM in the summer of 2010 and was a top secret project for the artist. The car was painted at Mountain Muscle Cars in Cosby, TN, and Detailing right down to the rocker panels on the American Pride Camaro took about three months from start to finish. This car was the brainchild of Scott Settlemire from GM’s Show car division. Mickey Harris has been painting for 30 years and has produced thousands of murals on metal. Mickey began his professional career with American Pride Camaro on the prowl
the airbrush at the age of 19, in Ft. Walton Beach, Florida. He mastered the airbrush, becoming one of the leading airbrush artists in the world. Mickey also founded Airbrush Magazine in 1994 and has been the
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Painter Mickey Harris (R) with Marine guard and the American Pride Camaro on the SEMA floor
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On Creative Marketing
Tom Franklin has been a sales and marketing consultant for forty-five years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Promotion Up Close and Personal with Thomas Franklin
Recently a shop owner in my area converted a 12-by-14 foot space in his shop into a conference room to host meetings for insurance managers and agents, dealership principals, and other group sources of business. He also put in a computerized projection system and screen. The cost of creating this space wasn’t cheap. Was it really worth it? Like most of you, he found that trying to call on these people generally resulted in very little if any face time. He finally decided if going to them didn’t work, he would try bringing them to him. The last time I spoke to him it was beginning to work very well. He had hosted an insurance manager and agent meeting and had an excellent turnout. Plus he saw some immediate increase in business from that insurance company. He was already planning another insurance group meeting and possibly a dealership group as well.
This shop owner already had several major insurance DRPs. Was it really necessary to go to this expense? I’ve noticed many shop owners who, once they finally get a DRP they’ve been seeking, sit back and wait for the jobs to come flowing in. It makes me think of a friend who told me about his first marriage when he was a young guy. He said after the honeymoon he and his new bride settled into their new apartment. Both sat down and breathed a sigh of relief, as much as to say, “Now I’ve got her (or him). I can relax now, and stop putting on the big act.” You can imagine how long that marriage lasted. If “interest” could be described as a commodity, it would be one of the most sought after commodities in the world. A young woman seeking a husband wonders, “Is he interested in me?” He wonders, “Is she interested in me?” The shopkeeper hopes the young woman will be interested in the clothing he sells.
The film producer hopes the public will be interested in his film. And a collision shop owner hopes he or she will be able to interest vehicle owners who have accidents in coming to his or her shop. The amount of attention given to something is generally proportionate to the degree of interest in it. It’s easy to study “interest” in a baby. The baby sees something bright and shiny and is CURIOUS. The object has captured the baby’s INTEREST. But now we can see the complete “interest spectrum.” Next the baby DESIRES to touch, play with, or eat the object. If no one responds to the baby’s interest by giving her the object to touch, play with, or eat, she may DEMAND it by crying, screaming, or otherwise trying to get her desire fulfilled. Assuming the child is given the (inedible) object to play with, eventually the child will LOSE INTEREST and REJECT (throw on the floor) the object.
We now have a complete “interest to no-interest” attention spectrum, beginning with CURIOSITY, INTEREST, DESIRE, DEMAND, LOST INTEREST, and ending with REJECTION. The duration of the spectrum may be only a few minutes with the baby, or many years from the time a girl is interested in a guy, marries him, has children, cohabits for years, loses interest and finally rejects (divorces) him. The same sequence may occur when a shop has entered into a DRP arrangement with an insurance company or a contractual agreement with a dealership. The sequence will usually move from curiosity, interest, and desire to the satisfaction of demand. Of course not every set of circumstances that begins with curiosity and interest eventually declines to “no interest” and “rejection.” But in a society obsessed with entertainment, excitement and celebrity, the full spectrum is See Promotion, Page 26
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16 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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Service, Diagnostic and Mechanical NEWS
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Detroit Sales Erosion 1997–2010 and Retailer Market Gains Autobody News
by Jim Lang, Lang Marketing
Foreign vehicles (imports and transplants) more than doubled their share of new car and light truck sales in the U.S. between 1997 and 2010. Over this 13-year span, foreign vehicles made more progress in expanding their new vehicle market share in the U.S. than they achieved in the previous 50 years. Foreign models captured 26.1% of 1997 new vehicle volume in the U.S., topping 28% of the 2000 market. Over the next five years, foreign cars and light trucks recorded steady growth in new vehicle share, climbing to 35% of the 2004 market. Then, foreign new vehicle share exploded. By 2007, foreign cars and light trucks accounted for 49% of new vehicle sales in the U.S. with their share soaring to 53% in 2008 and reaching an estimated 55% of the 2010 market.
Japanese Cars and Light Trucks Japanese models captured 37% of 2007 new car and light truck sales, and will account for an estimated 39% of the 2010 market. Growth of Japanese models would have been stronger had it not been for Toyota’s recent safety issues, which reduced Toyota’s 2010 sales share below its 2007 performance. Over the next several years, Japanese models will regain sales momentum and continue expanding their new vehicle share. European Vehicles European vehicles, lead by German nameplates, captured 7% of 2007 light vehicle volume. European cars and light trucks are expected to capture 8% of the 2010 market. Not achieving the strong share growth projected for Japanese models over the coming years, European vehicles
December 2010
will, nevertheless, steadily expand their U.S. new vehicle sales position.
Korean Surge Hyundai, along with Kia, added dramatic punch to foreign vehicle share growth over the past 24 months. Rapidly adding dealerships, Korean nameplates will record nearly 20% sales growth during 2010, pushingup their market share more than twothirds from 2007. Covering a wide range of market niches, Korean vehicles will continue expanding their sales and market share, growing at a much faster pace than European or Japanese models. Chinese Entry Chinese nameplates will begin making a strong impact on the U.S. new vehicle market in five to seven years. Their growth will be rapid in the U.S., particularly if acquiring another carmaker is part of a Chinese market entry strategy, or Chinese vehicles are sold through an existing dealer network.
2021 New Vehicle Sales Lang Marketing expects foreign vehicles (imports and transplants) to account for at least two-thirds of new car and light truck 2021 sales in the U.S. This projection allocates only 4% of 2021 sales to Chinese vehicles. If Chinese models exceed this estimate, foreign vehicle share could rise higher than two-thirds by 2021.
Aftermarket Impact The aftermarket impact of this new vehicle sales trend will be dramatic and irreversible. By 2021, foreign models will top 60% of vehicles in the so-called age sweet spot for vehicle repair (five to ten years).
Surging foreign vehicle aftermarket product share will have a revolutionary impact on product brands sold in the aftermarket, how products are distributed, as well as where parts and service are purchased.
Retailer Commercial Market Gains A recent in-house study by Lang Marketing found Retailers are making gains in the commercial (wholesale) market against several leading Programmed Jobber groups. Retailers are getting high marks from Installers on a number of key competitive issues in several markets studied. Each of the battleground cities studied by Lang Marketing contains AutoZone, Advance, and O’Reilly stores as well as NAPA and CARQUEST Jobbers. While it is not possible to generalize with great confidence from this in-house study to the commercial market nationwide, some major findings are significant: Retailers are improving commercial services, Service Stations and Garages are willing to explore alternative buying sources, and a large portion of Installer volume is “in play”. Convenience The growing convenience of buying from Retailers cannot be underestimated as a major reason they are gaining commercial business. This convenience reflects several factors: Retailers (at least in the cities studied) have inventories to support Installer business, Retailers have delivery capabilities which meet Installer expectations, and, because of their growing numbers, Retailers often are closer to Installers than are Programmed Jobbers. More “Commercialized” Retailers While the Jobber population is declining nationwide (at a slowing
pace), the Retailer count continues to rise. Although some leading Retailers have not rolled out commercial programs to all stores, where they are emphasizing commercial business, “commercialized” Retailers often outnumber Jobber locations.
Pricing Issue The in-house Lang Marketing study did not focus on pricing in-depth, but there is evidence sharp pricing by Retailers is a critical issue in some markets covered. In other research conducted by Lang Marketing over the past several years, sharp pricing was found to be a tactic of some “commercialized” Retailers in competitive markets. While availability and service still rank highest as product buying criteria among Installers, the issue of pricing can be ignored only “at peril.”
Commercial Market is Fluid In battleground cities covered by Lang Marketing’s in-house study, Service Stations and Garages, for the most part, were open to explore alternative products sources, with Installers generally free of strong negative feelings toward purchasing from Retailers.
Jobbers Still Control Commercial Market Programmed Jobbers still control the largest share of auto parts sales to Installers in the battleground cities covered by Lang Marketing’s in-house study. That said, the major underlying finding of this study is that the commercial market is more fluid than ever before, with a large share of Installer business “in play.”
From Aftermarket Insight™ by Jim Lang, President of Lang Marketing Resources, Inc., www.langmarketing.com.
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 17
Gonzo’s Toolbox
Dude, Meet My Daughter with Gonzo Weaver
couldn’t afford the engine replaceWhen it comes to dealing with cusment, and her frustration was audible. tomers, there are always a few things She was completely out of it because that are sure to be an issue, i.e., Cost?, a cheaper solution wasn’t possible. So how long will it with take? and When is Arnold it Richard she let the shouting commence at the going to be done? front desk. Who would ya think had a Then there are those times when front row seat to this show of shows? the unexpected happens. When that You guessed it… me! front door opens and a new customer comes in and your expectations are high. Will this customer become a regular? Then there with is the type make Ed that Attanasio you say to yourself: What’s it going to be this time? The other day I was in the office when in walked a young man with that “clean-cut, kid-next-door” look. He looked to me like a nice kid who had with Erica Schroeder his head on his shoulders. Gonzo takes a moment between repairs to At the time I was busy finishing man the service desk himself up with an aggravated customer who As the lady continued with her rant, was having a fit over paying for her the young customer sat in the backcar’s outcome. The lady’s car had broground waiting for his turn at the counter. ken a cam which took out the engine. She soon left with her cell phone stuck It was going to need a new one. She
Jobber Journal
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
to her ear calling for a tow truck. The lad walked up to the counter with a concerned look on his face. “Do ya need a minute? How about you take a deep breath, just inhale slowly and exhale. Wow, dude… she gave you an earful. How do ya deal with that kind of thing?” “Oh, I guess you could say you get used to it. It’s nothing; she’s just upset that she’ll have to buy another car. Thanks for asking, it’s no big deal… what can I do for you?” I said as I took that deep breath. “My headlights go off if I tilt my wheel all the way up.” “No problem to look at it. Do you need to wait on it?” “If it won’t take long, that would be nice.” I filled out the paperwork and put the truck in the shop. Sure enough, if you put the wheel all the way up, the lights would go off. Down they worked fine. Removing the steering column
Shop and Product Showcase Shop Showcase Shop Snapshot with Erica Schroeder
18 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
trim revealed the problem. The main wire that leads to the dimmer switch had come free from the multifunction switch connector. Every time the column was up the wire would separate. It was quick fix… nothing special. Just push it back into place, make sure it “clicked” into place and strap it down to the other so it couldn’t pull free again. I even adjusted the entire harness so there was a tad bit more room for the swinging motion of the column. Before I put all the trim back on I tried it several times. It worked fine. I pulled the car around front, and he paid for my time and was back on the road. He was the kind of person who makes your day special. Especially after dealing with a lady and her dead engine… (‘Maintenance’ people… it makes a difference… but that’s another speech.) A day or so later the same young lad was back with a different attitude… but now it wasn’t because the
headlights wouldn’t come on while tilting the wheel. It was because the headlights blinked off and on. He seemed very stern with his explanation. He made his point, and then stood there waiting for my answer. Normally, I would be thinking it’s time to get defensive. I just fixed his “no headlight” problem the other day and
Second daughter Amanda (Mandy) checking to see what her dad wrote about her this time
now this. The wheels are turning in my head. I could feel the steam reaching the flash point. This kid was looking at me with that same look the lady with the dead engine was looking at me with… (You know the look). I didn’t want to blow my top over this but I kept thinking ‘this guy is going to tell me it’s doing the same thing. I just know it.’
He stood there staring me down. I was waiting for “It’s doing the same thing” response. With his arms folded across his chest, sure enough: “It’s doing the same thing.” I’m about to go ballistic. My daughter, Mandy, was running the service desk that afternoon. I could see she was looking for that “safe zone” to get out of the reach of dad’s soon-toexplode tantrum. But this kid was so concerned with my well being the other day I figured I’d give him one more chance. I looked outside at the truck, turned to look at him and growled out something like, “Doors unlocked?” He answered, “Sure are.” Without another word I walked out and turned the headlights on while he followed me out to the truck. He started to tell me how the headlights would fail, and how often it would happen. As he explained the situation he seemed more concerned that I was going to blow my top. He was sorry to bother me, but he wanted to be sure to tell me it only blinks after he’s been driving for more than an hour or so, and not when it’s tilted as it did in the past. He noticed when the headlights do start to blink he
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could wiggle the headlight switch knob and they would come back on. “Well, that’s NOT what was wrong with it the other day. What made you say it was the same thing?” I asked. “Just wanted to razz ya man. I thought it would be funny. You seem
First daughter Katrina (Katie) taking a break with Autobody News
like an uptight guy who doesn’t get a lot of laughs. Thought you might get a kick out somebody playing ya,” he answered, chuckling and patting me on the back. I don’t know how this kid pegged me for an uptight guy, but I’m starting to like him. OK, ya got me. Good one kid. I’ll give you that. I had to laugh. There’s nothing like somebody from outside the industry seeing the difficulty and stress that this job can put you under.
We struck up a friendly conversation about college, family, and work, while we were waiting to see if the headlights would blink. After about a half hour or so the headlights did exactly what he predicted. It was a faulty headlight switch. After wasting the better part of an hour just chatting and small talk, the two of us went back into the office and asked Mandy to order a new headlight switch. Mandy was expecting me to come in, slam something on the counter, say a few choice words, and rant my way back to the shop kicking doors open all the way. But instead I had a big smile on my face, and my new found bud alongside. “Dude, meet my daughter, Mandy.” You can guess her reaction. (Mandy wasn’t all that impressed with the guy.) When the switch made it to the shop I went right to work installing it, and sent my friend down the road. I’m sure he’ll be back. He made my day with his quick observations of the goings on at the repair shop. I just wish more people acted that way. It would make my life a lot easier. As for Mandy… she hasn’t decided yet. I guess my buddy wasn’t her type. Hey, but a Dad can dream, can’t he?
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 19
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20 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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Five More Las Vegas Families Receive Reliable Transportation at SEMA from NABC Imagine the negative impact a lack of reliable transportation has on a lifestyle. Getting to work, going to the doctor, or even grabbing a quart of milk at the store becomes a challenge. Most of us probably can’t imagine existing without a car at our immediate disposal, yet the United States Bureau of Transportation estimates that over 15 million Americans have difficulty getting the transportation they need.
Auto Zone Representatives with some of the SEMA Recycled Rides recipients
For this reason, the National Auto Body Council (NABC) is pleased to say that the lives of five deserving Las Vegas families was dramatically impacted on Thursday, November 4, at the SEMA Show located outside of the
Las Vegas Convention Center. Each of the families received the gift of a refurbished vehicle from NABC members through its Recycled Rides™ program. Las Vegas Mayor Oscar Goodman was in attendance, as he was last year. This was the second time within weeks that such a donation has occurred. Five other families also received vehicles from Recycled Rides at the NACE Show that took place Tuesday, October 12 at the Mandalay Bay Convention Center. Insurance companies Esurance, Allstate and State Farm donated the vehicles to be repaired. NABC members Sterling Collision, 911 Collision and Gerber Collision & Glass were responsible for refurbishing the vehicles. The recipient families were all graduates of the Family Promise of Las Vegas program, a non-profit interfaith network that provides support to families in crisis. The first family included a mother of three that could no longer afford her apartment after being recently laid off. After only 44 days in the program she is
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back on her feet and the Chrysler Pacifica she received will be used to get her to her new job and her children to school.
the Family Promise program two years ago and who married while in the program. Their donated Chrysler van will get mom to school and get dad to his job helping him to maintain his perfect attendance record at work. The fifth recipient is a single mother of two toddler daughters forced to take the bus to get to work, and to get her daughters to preschool. By receiving her recycled Acura MDX, mom will be able to breathe easier knowing that the only schedule she will now have to follow is her own. “We’re really happy to be back in Las Vegas to give five more families the vehicles that will help provide them a fresh start,” said Recycled Rides Chairman and President of Sterling Autobody Centers, Nick Notte. “These are just ten examples of the 150 families who this year will receive the gift of reliable transportation to make better lives for themselves due to Recycled Rides and its participants. I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry in general.”
Nadeeryah reacts after Nick Notte presents her with her new recycled ride
The second recipient is a father of two boys, one of whom is a special needs child. The Mazda they receive will be used to get the father to work and his boys to school. The third recipient is a single mother of three daughters. All are honor students. One is graduating high school this year in anticipation of attending a prestigious college. Their vehicle will help keep their scholastic winning streak alive. The fourth family consists of a couple with two children who were in
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 21
Shop Showcase
Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
AC Collision Opens in Gonzales, Texas, Thanks to Family Ties with Erica Schroeder
AC Collision Center in Gonzales, TX, new to a small, historic town,” said opened just two months ago thanks to Casares. owner Angel Casares’ father-in-law’s After a year of preparation and generosity. Arturo Cruz has owned A about a $200,000 investment from with John Yoswick & S Recycling in Gonzales since it Cruz for building preparations and opened in 1989 and after Casares equipment, the shop was able to open.
Industry Insight
Shop Showcase with Ed Attanasio The Church St. view of AC Collision Center
Abigail Casares and sister Sonya in the front office area
earned his Associates degree from Texas State Technical College in Waco, he was generous enough to give his son in law the money and resources to open his own shop. Casares earned his Associates degree last year after taking second place in the state of Texas at the SkillsUSA competition. He started off as a body shop technician after graduating high school, then went back to Texas State Technical College to gain his Associates Degree.
“This is something I’ve been considering doing for about two years,” said Casares. Lots of the preparation done in the year before the shop opened had to do with getting the building ready to house an auto shop and choosing vendors and suppliers. Casares chose Garmat for the shop’s heated spray booths, Car-OLiner for frame racks and DuPont’s Spies-Hecker brand for all the shop’s painting needs.
Repair crew Chris Pena, Larry Peterman, and Angel Casares outside of the shop
The shop itself is 5,000 square feet with an additional 1,400 square feet for office space. They have 4 full time employees and one part time employee who is still a student at Casares’ alma mater. “This is our first business, we’re really just trying to bring something
According to Casares, he chose Garmat for their space-saving design since in a small shop all space would need to be used wisely. He chose CarO-Liner because he had used them at school and liked them a lot and felt they were easy to use; and he chose
22 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
DuPont’s Spies-Hecker because of the quality of their paints. “I’m just trying to bring something different to Gonzales,” said Casares, “I’m trying to bring good equipment to a small town.” AC Collision Center is a familyrun business, not only does Casares hope to share some business and cus-
tomers with his father-in-law’s scrap metal recycling company, his wife Abigail and sister Sonya also help in the shop’s office area. AC Collision Center 2505 Church Street Gonzales, TX 78629 (830) 672-7303
Action Counts
Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com
My Customer, the Crash Test Dummy with Lee Amaradio Jr.
Action Counts
the smallest details to them and even As 2011 approaches and we move forward into another year in the collision offer them a cup of coffee while they Amaradio Jr.We are concerned about them and wait. industry, we canwith be sureLee of one thing: we want them to be treated in a profesvehicles are changing. The way we as collision repairers do business is also sional and honest manner. changing. We are running our compaThe entire collision industry has nies leaner. We are measuring our effireally “stepped up” and made the cusciencies and comparing our numbers tomers experience with collision repair with other shops with around us. We have all a much better experience than ever beSheila Loftus become better at running businesses. fore. Our customers trust us and we are We have changed drastically in how we beginning to replace the ‘alley body manage our customer. We have imshop’ image of the past with a new proved our customer service. Many of service-oriented ‘dealership’ image. us have started our own customer marBUT... While we were staffing up keting campaigns. We have CSI proour offices and updating our claims withour Sheila Loftusprocessing and watching our numbers, grams that measure customers’ satisfaction down to the last detail. It there were few resources left over to would be safe to say that we have bepurchase training and equipment that come customer-oriented companies. actually fixes the cars. Most shops We communicate with our customers have found themselves so caught up better. We return their vehicles faster. in the claims process that the repair We give them completed paperwork at has become secondary to the handling with Janet Chaney the same time we give them their vehiof the claim. Getting the vehicle out cles. We take the time to explain even within the cycle time allowance and
Your Turn Your Turn
Shop Showcase Shop Showcase with Janet Chaney
making the metrics look right is more important than doing the research to know if you are even equipped and trained to repair the vehicles. In this economy very few shops will turn work away and this becomes very dangerous for the shop and the customer. So, while you may have the blessing of the insurance company and your numbers may look good and even your customer leaves happy, you unknowingly have sent them out in an unsafe vehicle because you really didn’t understand the proper repair procedure or use the proper OEM parts for that particular vehicle. Many argue that “Safety” is NOT a problem because there is no documented proof of a vehicle passenger getting hurt because of aftermarket bumper reinforcements or aftermarket structure parts such as core supports, etc. This is a foolish argument. Are you really saying there cannot be a safety
Industry Overview with Janet Chaney
Industry The Th Hyundai HyundInsight aii Genesis— Gen nesis—
2009 North 2009 with NorttJohn h American AmYoswick erican Car Car of of the the Year. Year. Think About It
Industry Insight
See The Crash Test Dummy, Page 29
See these Hyundai dealers below for all your collision parts needs!
Industry Overview with Janet Chaney
issue because there is no proof yet? This argument is analagous to saying: ‘This intersection doesn’t need a RED LIGHT until we have some dead bodies.’ The tobacco companies knew that smoking was unsafe years before the bodies started piling up. They took the same stand: “There Is No Proof Smoking is Dangerous,” and continued doing business as usual. Big Tobacco cited the longevity of some smokers to ‘prove’ smoking was not hazardous to your health. We as a repair industry have stepped up our claims processes but we have neglected the collision repair itself. We reap the benefits of the one while the insurance company reaps the benefits of the other. We need to be efficient in both, but NEVER should the insurer control the repair process. It is not their business to repair collisions. It’s their business to handle claims and
TEXAS
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DO THE RIGHT THING ENOUGH TIMES, with John Yoswick AND PEOPLE BEGIN TO NOTICE. Hyundai Sales Up More than 14% (year on year). In 2008 Hyundai became the world's fifth-largest automaker, with 7% market share in the United States.
Industry Interview with Janet Chaney
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 23
Kristen Felder INTERVIEW by Erica Schroeder
The site itself looks completely different now then it did when I first started it. I was fortunate enough to have phenomenal mentors to call and ask for advice when I was creating the site and even to eventually call and ask to join and create a page once it was done. It would not have launched so successfully without my mentors in the collision and insurance sides of the industry joining the site. It definitely grew by word of mouth after that. When it first got started, I remember thinking, ‘if people from both sides [of the industry] were willing to join, I had done something right in my career.’
ABN: You have a family background in collision repair, don’t you ? KF: I was born into this industry. My Dad owned a collision repair shop when I was growing up and I really spent my life in it. I worshipped my Dad, so I was in the shop every day watching him work. I did a little bit of everything to help once I got older; frame, body and paint, to name a few. Looking back I wasn’t that great of a technician, so I went to college and got a job working with State Farm Insurance in their marketing department. While working there my perspective on the insurance industry changed a lot, but I missed the people in the body shops. Car people will do anything for anybody—they’re really good people. That’s one thing I really enjoy about Collision Hub, it lets people see both sides of the industry.
ABN: Where do you see the relationship between social media and the collision repair industry in 5 to 10 years? Do you think it’s a long-lasting, valuable tool? KF: I think in 5 years we will see everything involved in the social media environment. Facebook, youtube, and twitter will become complete news sources and information sharing mediums. These sites promote friendship and respect and open up some channels for users. I think we will also see a lot
more people plugged in this industry specifically.
ABN: What are CollisionHub.com’s numbers when it comes to number of pages and traffic? KF: CollisionHub.com currently has about 3,000 personal pages in 22 countries. The pages break down to 54% body shops, 14% insurance and the rest are vendors and educators. As far as views, Collision Hub gets about 50,000 page views a month from about 13,000 individual IP addresses. Most of our traffic is organic; not a lot of people are coming to the site from a link on another site.
ABN: The last two years have been especially tough in the industry. What have your first two years been like for CollisionHub? Have there been any major problems or challenges? KF: It’s been hard. There have been some hard months. There are highs and lows with every business, but for Collision Hub the lows haven’t been so low recently.
ing to buy a plane ticket. CH TV will give more stories a face. For example, one thing I’m hoping CH TV will be able to do is to help SkillsUSA winner Kayla Toncik be able to get enough exposure to get some more financial sponsorships for her WorldSkills event in 2011. Participants from the USA have to earn their own way to WorldSkills, unlike some participant from other countries whose ways are paid. Through CH TV people can see her, see her train and connect to her story. CH TV provides people with a way to see it, feel it and hear it; to be more involved and plugged in. Collision Hub TV is the site’s number one driver right now.
ABN: Tell us about your plans for Collision Hub TV. KF: I think that the size and scope of this industry isn’t really appreciated; what all we are involved with isn’t appreciated. Collision Hub TV just provides another way for people to see what goes on, to be there without hav-
ABN: What are some new features in the works at CollisionHub.com? KF: Well, there are quite a few things in the works, some more complete than others. First, there’s Collision Hub University, which will probably be launched in Q1 of 2011. Everyone right now is training driven and the industry wants more training, but it is expensive and time consuming for businesses to send their staff to training events and classes. So CH university would allow technicians to watch 5 to 10 minute videos to gain more technical knowledge. We’re working with some of the training organizations to set that up. We’re also working on a classifieds/auctioning section of Collision Hub, which will hopefully go live also in Q1 of 2011. This would be a marketplace where people could post job openings, for-sale items and jobs wanted posts. Also the Girl Scouts project Collision Hub did at NACE this year was very successful, so we will be expanding on that in the coming months. We’re thinking of doing a Gear Heads Kids Car opportunity where the Girl Scouts can attend some classes and work regularly on projects to gain better knowledge about this industry. After the last Girl Scouts project we also have tossed around the idea of creating an 18 and under section of Collision Hub where people under 18-years-old can have a
ance Committee “indefinitely tabled” the Model Act Regarding steering. After a meeting to hear commentary on the proposed model, the com-
mittee made the decision to effectively kill the measure that had only existed as a stand-alone bill since March of this year.
ABN: What are Collision Hub’s goals business-wise 5 to 10 years down the road? KF: Overall we want to develop a community that is accepting and respectful of everyone in the industry, no matter if they’ve been a top-level CEO of a major body shop for 30 years or are just starting out as a technician. We want everyone to have an equal voice and equal footing and really create a community for this industry online. We want newcomers to the industry to have a place to share ideas and have them be heard, as well as a place for them to learn and gain industry mentors.
NCOIL Tables Model Steering Act, for Now At their annual meeting the weekend of Nov. 20 in Austin, Texas, the National Conference of Insurance Legislators (NCOIL) Property and Casualty Insur-
24 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Cover Story
Collision Hub page and use it as a venue to learn more about this industry, but only be able to view certain, age appropriate content. We have also been experimenting with the idea of creating virtual trade shows. Collision Hub would provide a program where people can create avatars and visit virtual booths at any participating trade show. Then users can click on a booth and it will video call the physical booth where someone there will be able to answer questions and talk to them as if they were physically at the show. We’re thinking of trying this out at next year’s ASA Vision show.
ABN: I know a lot of social media sites have had issues generating much income from usage, how has Collision Hub done and how do you pay the bills? KF: Collision Hub runs on a sponsorship model. I went to companies I had existing relationships with from my insurance background when I first had this idea and asked them if they would like to participate. Those companies make yearly donations to Collision Hub and in turn Collision Hub does advertising and product videos on our site for them. I picked products I believe in for these positions. It meant a lot that these companies had faith in my idea so early on, it was a big vote of confidence. Our founding sponsors were 3M, PPG and Enterprise and we recently landed Chief as a sponsor just before the SEMA show.
ABN: What is your sense of the value of social media for collision repairers? KF: People don’t want to choose a product anymore that they don’t have a connection to. Social media allows customers to have more of this connection easily. Social media allows a business to be there before, during, and after the customer’s need is met. I really think social media is the best business and marketing tool we’ve ever had. If you’re not on social media now, get there and get there now. Thanks, Kristen. Sign up for free at www.collisonhub.com. What began as a three-sentence sub section of the Crash Parts Model Act (still under consideration by the See NCOIL Model Act, Page 33
Collision Hub Implements its Social Media Strategy level of open communication to our industry as a whole,” recalls Felder, Kristen Felder believes that members who earned a public relations degree of the collision repair industry should from Arkansas State University, inmeet and meet often — and not by ac- terning for State Farm Insurance. cident. After graduation, she worked for State Her Web site, www.collisionFarm as a claims representative, then hub.com, is a network for those in the moved to Nationwide. In November collision repair and related industries 2009, she began running Collision to share information, talk shop, disHub full time. cuss issues and get to know each “I like to tell people that I spent 20 other. Benton, Arkansa-based Colli- years in collision repair and 14 years in sionHub.com encourages technicians, insurance,” she adds. “It is that experishop owners, suppliers, insurance ence on both sides of the fence that recompanies, auto glass installers, towally drives Collision Hub. I see and feel ing companies and rental car agencies both sides of our industry’s issues.” to log on and join in. Felder realized that four or five “After looking at groups in Face- annual industry events wouldn’t acbook and LinkedIn, I determined we complish connectedness. After NACE needed our own safe space with some 2008, she returned home, thought and content controls,” says Felder, who researched. She saw a study on Gen X notes being “born” into the collision and Next Gen which discussed the imrepair through her dad, Ted, who portance of social connections on sites began working in the business in 1965 such as Facebook and MySpace and after leaving the Air Force. He opened how those relationships will revoluhis first shop in 1970 with a business tionize business. partner and retired in 1997. “The participants interviewed for the study stated they had stronger connections with their ‘virtual’ friends through social networking then their ‘real’ friends,” she says. “Could we forge strong bonds and not be at a social cocktail reception during some industry event? Could we forge stronger bonds ‘virtually’ so that our face Kristen interviews Dan Bailey from CARSTAR at NACE 2010 time was more proShe began Collision Hub quietly ductive and respectful?” Because Colin May 2009 and then officially at lision Hub is a social media business NACE 2010 as a social networking site—and not news based— Felder site for professionals within the in- says that this establishes neutral dustry, she explains. “It was a way to ground for insurers, vendors and rebring a successful open model of pairers to participate freely. “We focus friendship and communication to life on the positive and what should be celand make it accessible to our industry ebrated in our industry,” she says. “We as a whole,” she says. monitor and control the site to ensure Two years earlier, at NACE 2008, interactions are professional and reshe and a group of collision industry spectful.” professionals had discussed commuAs a result, the site focuses on nication among themselves—espeother aspects of the industry to discuss cially as they represented different and develop content such as The segments of the industry. Women’s Project, Girl Scout NACE “We came to the conclusion that Day and Future Leaders. “We want our friendships were at the core of this Collision Hub to be a fun place to conability to communicate openly and nect, learn and grow,” Felder says. honestly and wondered how we could That makes us different and refreshuse this social model to bring that ing in the industry.” by David Brown
The site also facilitates connections according to specific interests, she says. The Collision Hub platform is based on topical communities such as pets, diet and health, women, shop owners and marketing, allowing users to find niche groups and build relationships within them. In addition, the Collision Hub has broadcast NABC,
but can also waste employee resources,” he explains. So, too: “An employee may say something damaging on these Web sites and discussion boards without even realizing that he or she has done harm to your company.” Many collision repair industry members, however, are using Collision Hub regularly— and lauding it. “Collision Hub is great way for the industry to come together via the Internet,” says Gigi Walker, president of the California Autobody Association. “It’s an open format for everyone related to the industry to talk shop: estimator to apKristen Felder interviews (l to r) I-CAR’s Jeff Peevy with SCRS’ Barry Dorn and Aaron Schulenburg at SEMA 2010 praiser, shop owner to shop owner.” I-CAR, CIECA events and will feaDave Henderson, CEO of ture live upcoming shows from Brighton Mich.-based AutoWatch, has NACE and SEMA. Kristen: “We unbeen involved with Collison Hub alderstand the power and importance of most since start-up — posting items, revideo and using the Internet to bring ceiving feedback and connecting with the industry to everyone that cannot customers and potential customers. travel to industry events.” “I have found it a great media to She notes, too, that the site’s sponget the AutoWatch name in front of sor support allows content to be memmany in the industry,” he says. “I also ber driven, providing photos, blogs like that I can look up others in the inand discussions. Sponsorship packages dustry and keep up on what is going are annual or for specific events such on. This is for sure going to be an icon as NACE/SEMA, she explains. Limin the industry and a good forum to ited spots can be purchased such as for the global market.” a featured product, job postings and Alex Hahn, lead estimator/body hot links. “Collision Hub is whatever shop manager for Fairfield, Calif.the industry wants it to be or needs it to based Fairfield Auto Body, agrees: be at any given moment,” she says. “Collision Hub is a first of a kind Still, some analysts caution place for the whole auto body indusagainst an overemphasis on social nettry, from preppers all the way up to working, urging caution about social corporate CEOs. It’s a community networking hazards such as phishing, soap box where anyone can reach out identity theft, reputation damage, deto another or ask for specific help in creased employee effectiveness and any aspect of the business.” other cyberdangers. He recently used it to learn more “Social networking and collaboabout establishing a DRP, ensuring the rative Web sites can offer their users a accuracy of estimates, and finding angreat wealth of resources at their finswers to technical questions that othgertips. However, they do have their ers at the shop couldn’t answer. place and should not come without “Searching for autobody resources limits,” says Mike Carson, a former was almost impossible. In the inforbodyman, insurance appraiser, and mation age, I was astonished that there owner of Joliet, Ill.-based Integrated was not a central site,” he recalls. Technology and Design, an Internet “It took many weeks of searches technology company. but finally I stumbled across CH in its “Collision shop owners need to be infancy and was instantly addicted. I aware that these Web sites can offer posted questions and got answers— valuable industry-related information most times within minutes.”
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 25
Social Media 101: Why Social Media Matters in Collision Repair Kristen Felder, founder and CEO of Collision Hub, and Jordan Hendler, with Admin Concepts, taught the Social Media 101 session on Thursday, November 4 at the SEMA show as part of SCRS’ Repairer Driven Education. Both social media gurus Jordan Hendler expressed that social media has become a necessity for body shops. Felder began the session by talking about the pervasiveness of social media in business these days. “Your customers and competition are both using social media,” said Felder. Facebook, youtube and Twitter are the three sites that she sees as being really necessary for body shops at this point. “We want you to be there when they come looking for you,” said Hendler, suggesting that body shops’ online presence and the social presence in their physical waiting rooms should be connected. Their online presence should reflect their store
presence and vice versa. Both speakers told attendees during the session that they should focus on customer loyalty, repeat business and referrals when it comes to offers and posts they put on their social media pages. “People do not care about collision until they have one,” said Hendler. One tip Hendler offered was for body shops to have a presence and share news that’s relevant. “Make it interesting, just start with having a presence,” said Hendler, “If they get it [information] from you, they will feel like you care.” Felder explained that social media is really a portal; a two-way interaction between body shop and the customer, unlike a regular website where the information is dispersed one way, from body shop to the customer. This gives customers a way to interact with a business outside of the physical location. “If you’re going to do your own [social media pages], it’s about a 20 minute per day commitment from you or someone in your office,” said Felder.
When it comes to content, Felder and Hendler both told shops to focus on local issues, causes and events. “Don’t let irrelevant stuff get on your page,” said Hendler. Felder told shops to try to focus on creating a local network by posting on other local pages and posting about things your specific community cares about. “Social Media isn’t just about your presence, it’s about your community involvement,” said Felder. At the end of the session the pair laid out some do’s and don’t’s for body shops using social media. DON’T: Use closed statements, put up strictly ads or engage in political or religious debates. DO: Listen to posts on your page (accept the negative comments and don’t just delete them), engage in conversations, not just campaigns and measure your success through followers and comments. “Everyone is a potential customer ... but on social media you don’t need to treat them like one,” said Felder. For more information visit collisionhub.com or admin-concepts.net.
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of vendor choice, and to show the burden and added expense such requirements can have on shops participating in multiple DRPs. Also at the meeting, SCRS board member and industry trainer Toby Chess made a presentation on the need to recalibrate the steering angle sensor that is part of the electronic stability control system on an increasing number of new vehicles. Such systems are standard equipToby Chess ment on 85 percent of 2010 new vehicles, and will be required on all new vehicles as of model year 2012. The recalibration is an additional procedure that must be done after the vehicle alignment. “It’s an added step, and there’s also no more 2-wheel alignments with these systems,” Chess said. “That won’t work.” Chess said he has not yet seen this necessary step added to the estimating systems. He’s also concerned because even though no “trouble light” will be lit on the dash and the vehicle may
handle properly under normal driving conditions even if the system is not calibrated, the electronic stability control function may not work properly in a subsequent “emergency maneuver.”
SEMA Week Meetings
SCRS-sponsored classes at the event, SEMA attracted about 115,000 people overall, up about 20 percent from last year. The “Paint, Body and Equipment” section of the show included more than 120 exhibiting companies, with many other companies that sell to the collision repair industry—including most of the major paint companies and many automakers—exhibiting elsewhere among the 9,000 booths and 2 million square feet of SEMA exhibit space. SCRS also held a board meeting during the event, reporting on the association’s recent and upcoming activities. At the meeting, for example, SCRS Executive Director Aaron Schulenburg said the association is building a matrix showing which insurer direct repair programs (DRPs) require use of a specific vendor for such services as rental vehicles, estimating systems or customer service indexing. The goal, Schulenburg said, is to show that some programs are more restrictive than others in terms
26 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Estimating system changes discussed At the meeting, Schulenburg also presented the association’s discussions with Audatex regarding the automated “prep raw bumper cover” feature that Audatex added and then retracted from its estimating system this fall. The change provided an automated 20 percent of the bumper refinish time (plus refinish materials) for the raw bumper prep operation. But Audatex removed the feature from the system a month after launching it, citing concerns raised by the industry. Indeed, in October, the Automotive Service Association (ASA) announced that a majority of the members of its “Collision Operations Committee” said they felt the 20 percent formula was adequate enough to remove the issue as an ongoing point of negotiation or friction. But Schulenburg said he voiced to Audatex SCRS members’ view that the system should only prompt the es-
Continued from Page 16
Promotion
experienced by many people in a wide variety of situations from school to jobs to relationships, whether personal or business. When interest and attention are gone, a decline begins. Once a shop has entered into a DRP arrangement with an insurance company or a contractual agreement with a dealership, after the sequence has moved from curiosity, interest, and desire to satisfaction of demand, to keep the relationship continuing without declining to no interest and rejection periodically at least one of the parties must take the initiative to re-fire the curiosity and interest. And so we come to the question of whether the shop owner who invested in conference space and presentation equipment made a good investment. Certainly there can be other ways to stimulate interesting interactions with DRP coordinators, dealership principals and other referral sources, but this seems to be a particularly attractive resource from the viewpoint of those invited to use the space (and be fed -- he provided the food for the meeting he hosted). I’m inclined to think it was a good investment. timator when a raw bumper has been added to the estimate, allowing the estimator to determine the necessary labor time to be entered. Audatex has said it plans to restore some type of raw bumper prep prompt to the system based on input from the industry and review by its technical advisory council. In other discussion at the meeting, Bud Center of the Database Enhancement Gateway (DEG) shared several examples of changes to the estimating systems that have resulted based on DEG inquiries. The DEG, developed and supported primaBud Center rily by three national repairer associations, allows users to submit concerns via website (www.DEGweb.org) about the accuracy of any of the Big Three estimating databases and systems. Center said one such inquiry, No. 2839, submitted in late October, raised a concern about data in the Motor Information Systems’ database (used by See SEMA Week Meetings, Next Page
Continued from Page 1
CIC: Bumper Testing
ployment to it ‘will’ change the airbag deployment,” Massie said. Massie showed video of the testing, which found that a Mustang with the non-OEM reinforcement beam, energy absorber and isolator sustained $2,982 in damage in a 5-mph crash as opposed to $1,224 in damage to the same vehicle when equipped with Ford service parts. Massie said there was only about $400 difference in the estimated repair costs in an 8-mph crash, unless the reduced energy absorption of the non-OEM parts resulted in airbag deployment. Ford engineer Dave Bauch said such a deployment is more likely with the changed “crash pulse” that the testing showed is a result from the use of the non-OEM parts. Also at CIC, CAPA announced its new standard and certification for non-OEM bumper-related parts, saying that as it developed the new standard, it found “very few bumper parts that actually matched the car company brand parts in terms of performance, materials and durability.” Jack Gillis of CAPA said that in order to confirm that its new standard accurately identifies parts that match OEM, CAPA worked with the Insurance Institute for Highway Safety (IIHS) to crash test some non-OEM bumper parts. IIHS tested some bumper reinforcement beams that met CAPA’s certification standards and some that did not. A non-OEM beam for the 2009 Toyota Camry that wouldn’t have met CAPA’s new standard didn’t buckle similarly to the OEM version in a low-
speed crash. One for the 2005 Ford F150 actually resulted in lower estimated repair costs than the OEM version, but only because the fog lamp recesses were different than the OEM; the difference actually protected the fog lamps better, but still would prevent the part from being certified as matching the OEM. But a non-OEM bumper reinforcement beam designed for the 2008 Dodge Ram pick-up and that does meet CAPA’s new standard was also crash tested; the resulting estimated damage costs to the vehiCAPA’s Jack Gillis cle were virtually identical to the damage costs sustained when the OEM version was crash-tested at low and high speeds. Ford’s Massie was asked to comment on the CAPA crash testing. “I’ve got to say, I think what Jack showed today was promising,” Massie said. “The IIHS piece of it adds a lot of credibility. I think there’s a lot more we’ve got to know before we could put our stamp of approval on it, if we ever put our stamp of approval on it, but I think it was a compelling effort.” Also at CIC, Bob Frayer of NSF International spoke about his company’s non-OEM parts certification program launched in February of this year. He said about 100 parts have been certified through the program to date, with 100 more expected to be certified by the end of this year. He said he expects that number to be close to 2,000 by the end of 2011.
Like CAPA, NSF certification requires the 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. I worked very closely with the OEMs in a previous life, and this is the same criteria they held us to in our testing.” 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 manufacNSF’s Bob Frayer turer 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. Gillis and Frayer 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. He welcomed critics of CAPA to contact him to get a better understanding of what it takes to meet CAPA standards, saying that those who have often are surprised and impressed by what they learn. He acknowledged that all of the significant changes to the CAPA program over the decades have been the result of challenges by collision repairers. “We want that. We welcome that,” Gillis said. Frayer pointed out that when NSF launched its program, it began with a standard for non-OEM bumper parts, a category of parts CAPA wasn’t certifying until this fall. He also 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 personally think that’s a bad thing.” Frayer was asked at CIC why he thinks the NSF program will succeed when CAPA still struggles to gain acceptance by shops, insurers, parts manufacturers and distributors. “I think the people in this room will make that decision over time,” Frayer said. “I’m not going to comment directly on that. I think a year from now we’ll be talking again and see how we’re doing.”
Continued Page 26 on matters affecting ve us yourfrom opinion the industry. inforcement, and doubling the labor Want sion Industry Conferenceto (CIC) has done, Edition? and the massive amount of to Contribute this“ReSouthwest
SEMA Week Meetings
time for the third-row seat cross-member to 2 hours. “That’s almost four additional labor hours,” Center said. “And this the CCCpublisher@autobodynews.com Information Services estiwas on a 2006 vehicle. I’m curious mating system) related to the replacehow many of those we’ve repaired in ment of rear floor pan on the 2006 Toyota Rav4. The inquiry indicated the last four years. It’s a big change.” Next step on standards that this procedure requires the purIn another meeting held during chase and welding of five brackets and cross-members. The need for these SEMA week, the effort to develop forTo advertise The for timely partssource isn’t indicated in the system, the malized industry standards for collision call Joe Momber at: inquiry points that out, and no labor time is shops and repairs took another step forinformation every 800-699-8251 ward with the formation of a committee listed the system for the parts. bodyin shop needs! fund a short-term consultant Within three days, Center said, to hire ande-mail: jmomber@autobodynews.com to oversee the next stage of the process. Motor had responded by adding labor CALL 800-699-8251 About 30 people attended a halftimes of 1.5 hours for the seat cross- www.autobodynews.com Start memberYour and 1.3 FREE hours for the rear re- day meeting organized by the Colli-
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pair Standards Committee.” Attendees work that still needs to be done, and discussed the committee’s efforts on give it the right structure and put it the project to date, and discussed the into perspective for everybody to be pros and publisher@autobodynews.com cons of developing formalable to use,” said Scott Biggs, who ized industry standards. helped chair the meeting. At the conclusion of the meeting, the group formed a planning group Promote your business with Promote your business with that will work to hire a temporary an exclusive article featuring an exclusive featuring project manager article to develop a plan, your products or services. yourand products or completion services. of timeline budget for formalized standards and for the creation or designation of an entity to oversee and implement adoption of the standards within the industry. CALL: Joebuilding Momber details! Call for details! “We’re thatfor broad industry consensus to take this massive 800-699-8251 800-699-8251 amount of work the CIC committee
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 27
General Motors IPO, One of Two Largest in History, Generates $16–23 Billion by Joe Overby, Auto Remarketing Staff
GM Revving up at the Opening Bell of NYSE
General Motors enjoyed the most substantial initial public offering the country has seen this year, generating at least $16 billion in its much anticipated IPO that launched the morning of Nov. 18. GM chief executive officer Dan Akerson rang the opening bell of the NYSE, which, in this case, was accompanied by the sound of a 2011 Chevrolet Camaro SS engine revving and tires squealing. GM stock began selling, and eventually the IPO would reach one of one the highest levels in history. “General Motors returns to the NYSE as a company with a great global brand and heritage, and a re-
newed focus on innovation, quality and the customer,” stated Duncan Niederauer, CEO of NYSE Euronext. “We welcome GM to the NYSE, and we are committed to providing the highest levels of market quality and service to the company’s leadership team, employees and shareholders.” The IPO began selling on the Toronto Stock Exchange on Nov. 18, as well. GM had priced the 478 million shares of common stock it issued at $33 per share. There were also 87 million shares of mandatory convertible junior preferred stock that totaled $4.35 billion. GM had estimated the offering to be $20.1 billion, and if underwriters pick up their option, a total of $23.1 billion. Shortly after the market opened Thursday, Akerson and GM vice chairman and chief financial officer Chris Liddell had a teleconference to discuss the IPO. Liddell said the company had been speaking with several investors in the last few weeks and had really honed in on three key points.
For starters, the CFO stressed to investors that GM’s profile was very low risk , regarding both cost and balance sheet. Second, he said: “We believe we’ve got tremendous growth prospects both in mature markets, such as here in North America, but also in emerging markets, like Brazil and China. “And third, and probably most importantly, we believe in the concept that we have talked about a lot, which is designing, building and selling the world’s best vehicles,” Liddell added.
Retail, Mutual Fund Demand While he was not able to name any specific mutual funds that bought in, Liddell said during the call that “there was a huge amount of interest both on the retail side and the mutual funds. “And we saw, essentially, all of the largest mutual funds over the last couple of weeks and I know—at least I think I know—that virtually all of them put orders in and I hope they certainly got an allocation,” he added. As far as the retail side, GM saw “a very strong retail demand and we
were, through the underwriters, very keen to see as much retail participation as we could,” he added.
Government Involvement U.S. government’s share will decrease “not quite by half,” Akerson said. Looking at it on a basic basis, the government’s ownership would drop from just over 60% to 33%, Liddell explained. Looking at it on a fully diluted basis and accounting for things like options, the government’s share falls to the 26% to 27% range, Liddell pointed out. When asked the potential impact the reduction in the government’s ownership with have on the automaker’s image, Akerson said that considering the “excitement throughout the United States and Canada,” GM having repaid its federal government debt with interest and all the preferred shares to the U.S. government and the fact that the government’s ownership has been reduced, the public reaction would likely be positive. “I would say that the average tax-
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payer in the United States would look at this particular transaction as very, very positive and we’re seeing that,” Akerson shared in the conference call Nov. 18. “There’s no question Ford took a different path. We arrived at about the same location. We’re both viable, strong competitors with a level playing field,” he continued. “And at this stage of the game, the best car wins. “We’re going to have to continue to prove ourselves. At the end of the day, the quality of the product, the design of the product will rule in the marketplace. And that’s where we intend to participate,” Akerson added. Possible Debt Offering Ahead When asked if GM would consider debt offering, Liddell said: “Over the short term, we may look to do a small debt offering simply to establish a credit benchmark. But that will be modest, at most … it will be in the context of just providing some more liquidity and moving toward, eventually, the concept of repaying all our debt. “So, we may take some actions over the next year, but there’s nothing of any significance from a debt point
of view that you’re going to see,” he added.
Reaction Sharing her perspective, Speaker of the House Nancy Pelosi released a statement Nov. 18 that lauded the IPO, calling it a “sign of progress.” “General Motors’ initial public offering is a sign of progress for America’s auto industry, for our nation’s workers, for our manufacturers and our long-term prosperity. In the midst of a severe recession, Congressional Democrats and President Obama took difficult emergency action to rescue American auto companies and strengthen critical pillars of our manufacturing sector, while protecting taxpayers,” the statement said. “Today we have more evidence that those actions are paying off, and the American people are one step closer to being made whole,” Pelosi continued. “Preserving, bolstering and expanding our manufacturing base is central to our economic growth, our national security and our competitiveness on the global stage, and key to establishing America’s manufacturers as centers of innovation.”
Continued from Page 23
The Crash Test Dummy
keep the costs down. No matter how many classes their adjusters attend, you would never assume they could repair a vehicle. We are still the ones liable for what we do, or don’t do, to each and every vehicle that rolls through our doors. We are the ones responsible for the parts we use and for every circumstance in which we use them, so it is important to know the facts. It is important to invest in the training and to purchase the equipment necessary to call yourself a collision expert. We have a lot of so-called Collision Experts within our industry but as a shop owner you must be the real collision expert with the credentials to back up what you say and do. If you were a surgeon you would have years of training and certificates to justify who you claim to be. A surgeon can’t just talk some one into a surgery by inviting them into their garage that is set up as an operating room. Shame on those insurers that know about the crappy repairs that are being performed with crappy parts
and crappy repair procedures. Shame on the crappy parts people for trying to deceive the insurers into thinking that a component test is a thorough and complete crash test when they know it is not. Shame on those collision shops that repair vehicles with out the proper knowledge and equipment. And shame on all of us for allowing this to happen when we all know the truth and the consequences. Would you send your kid to be operated on by an unlicensed doctor in a back yard clinic because there was a sign on the door? No. You would demand credentials that proved everyone knew what they were doing. You would want to see a sterile operating room, properly equipped to perform the necessary procedure. You would want to know the doctor was an expert and had only your kids’ best health in mind. I am a collision expert and I know there are some serious issues related to safety. I know that things must change because, as we speak, our customers are being used as crash dummies by those that continue to make false claims without the credentials to even have an opinion. The See The Crash Test Dummy, Page 31
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Chief Announces Chief University, Design Based Repair Training at SEMA Chief University, the trusted training arm of Chief Automotive Technologies, introduced a new Design Based Repair course for collision repair technicians and estimators at the Specialty Equipment Market Association (SEMA) show this year. “Design based repair” means following OEM repair procedures to efficiently, economically and properly return a collision-damaged vehicle to its original design specifications. As vehicle manufacturers continue to develop new designs incorporating a wide range of advanced materials, it is essential that technicians repairing those vehicles after a collision thoroughly understand the diverse metals, fibers and plastics used, as well as the processes for reforming, reshaping and replacing them. “Change is occurring at a staggering rate within the automotive industry as manufacturers engineer solutions to meet federal mandates for improved crash survivability and increased fuel economy,” says Richard Perry, Chief training manager. “What
was once a common misalignment may no longer be an obvious repair. In modern vehicles, collision damage may be transmitted to areas that previously would have been unaffected in a similar accident. Technicians who haven’t been trained to look for this damage can easily miss it, resulting in supplements and longer repair cycle times. As a leader in collision repair training, Chief is dedicated to providing education and training on how to best return damaged vehicles to preaccident condition through design based repair techniques.” The Chief University Design Based Repair course teaches a systematic approach to damage analysis that accurately reveals the structural, steering and suspension damage present in a vehicle, as well as procedures for correcting that damage. Because accurate vehicle height, length and width measurements are critical to a quality repair that meets OE design specifications, computerized measuring is also covered. Technicians attending the twoday Design Based Repair course will:
•Become familiar with advanced steels and other sophisticated materials currently used in vehicle design. •Understand how these materials are used and the repair methods they require. •Understand the strategic placement of these materials in a vehicle’s structural design. •Understand the principles of collision theory and how they apply to newer vehicles. •Learn a systematic approach to structural damage analysis. •Learn to measure collision damage and verify visual inspection findings. •Participate in hands-on repair methods. Chief University’s Design Based Repair course combines classroom training with hands-on demonstrations and practice. It is led by professional certified instructors in training facilities across North America. A $655 registration fee includes comprehensive training materials and a certificate of completion. Chief University offers courses for collision repair technicians, esti-
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mators and insurance appraisers. Most are approved for I-CAR points through the I-CAR Industry Training Alliance program. Chief training also has been certified by the National Institute for Automotive Service Excellence (ASE) for compliance with the Continuing Automotive Service Education (CASE) Standards. Additional Chief training topics include: Computerized Measuring Training, Full Frame Analysis & Repair Planning, Unitized Body Analysis & Repair Planning, Advanced Steering & Suspension, Advanced Frame Analysis, and Structural Damage Analysis. Design Based Repair will be offered twice in December and numerous times throughout 2011. To register, visit www.chiefautomotive.com or call customer service at (800) 445-9262.
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FIAT Plans Big for US Auto Sales in 2011 Chrysler plans to have the new Fiat 500, a mini-car with European styling and reduced fuel emissions, in showrooms by February or March. Fiat took over management of a failing Chrysler Group last year and is close to making a profit there as it revamps Chrysler’s cars and trucks. Now, Fiat sees an opportunity to reintroduce its brand and get ahead in the fledgling U.S. small-car market. Fiat introduced two Fiat 500s at the Los Angeles Auto Show this month, a three-door hatchback and a convertible version. The hatchback is set to go on sale in the United States next month, with the convertible to follow in 2011. Electric and high-performance versions are planned in 2012, and a four-door version after that. Fiat 500’s starting price will be $15,500 next year, according to Chrysler—”significantly less” than Continued from Page 29
The Crash Test Dummy
industry may never be fixed to the point it should be, but as collision
BMW AG’s Mini Cooper, a similar car, which starts at $20,000. The car will be assembled in Toluca, Mexico. Its 1.4-liter, fourcylinder engine will be produced at Chrysler’s Dundee, Mich., plant. This is the first time Fiat has shown a car bound for North America since it pulled out of the market in 1983. Back then, cars like the Fiat Strada were widely derided as rustprone and unreliable. But that’s ancient history to U.S. car buyers. Laura Soave, 38, who was appointed head of the Fiat brand in North America earlier this year, said there is very little knowledge of Fiat’s earlier poor quality among current buyers, who are drawn to the 500’s huggable look. The car has a rounded shape, high roof and circular headlights, and is 7 inches shorter than the Mini Cooper. The design evokes the original Fiat 500, which sold from 1957 to 1975 worldwide.
shop owners the buck stops with you. Are you going to change the way you repair collisions or are you going to continue to make your customer a Crash Test Dummy?
Matrix System Walks Away as a Winner with Salt Eraser® Matrix System Automotive Finishes, a leader in aftermarket paint products, won the New Product Showcase in the Individuality category at the Automotive Aftermarket Products Expo (AAPEX) for its Salt Eraser. Matrix System arrived at the AAPEX Show for the first time ever and won an award in the Individuality category. This included products that enhance the appearance of a vehicle or the appearance of specific components on a vehicle, such as chemicals, paints, decals, waxes and lights. Salt Eraser was featured as an innovative new product and was prominently showcased for all buyers to see. Salt Eraser is a revolutionary new product that removes stubborn salt stains from any fabric quickly and effortlessly — without scrubbing. It penetrates the fiber deeply and breaks up and evaporates the salt within minutes of application. Salt Eraser safely eliminates salt from floor mats, carpets, rugs, and runners. It cleans, freshens, and revitalizes complete car interiors without any odor. Salt Eraser is an ideal solution in the salt states located in New England, Middle Atlantic, and Mid-West areas of the United States. Additionally, this
product is great for many home and business applications such as: cloth seats, rugs, carpet, shoes, and pants. Just spray…salt stains disappear. “The advantage of Salt Eraser is its unique formulation has been designed to specifically to remove salt stains from carpet and fabric and outperforms general interior and fabric cleaners,” says Jim Caporuscio, director of business development. “It also provides consumers in the Snow Belt states with a fast, simple, colorless and odorless cleaning solution to remove crusty winter salt to restore their vehicles interior, and retailers with stores in Snow Belt markets an excellent seasonal sales opportunity to increase their car care and general cleaning sales.” About Matrix System Matrix System Automotive Finishes, subsidiary of Quest Specialty Coatings, is one of the industry’s most successful manufacturers of high quality color, clearcoats, primers, hardeners, and reducers. Matrix System has been able to have brand loyal body shops convert and experience huge cost savings. For more information please visit www.matrixsystem.com.
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Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 17 years of experience in the collision industry and 17 years of experience in the automotive industry.
ALL OEM Information
with Dan Espersen and Jeffrey Webster
Got Information?
When making repairs, collision proOE repair information benefits fessionals traditionally call on experi- the estimator, production manager, ence, training and generally parts manager, body technician, mewith Danaccepted Espersen practices to deliver a vehicle that sat- chanical technician and the person reisfies the customer, the insurer and sponsible for all of it, the general themselves. That formula worked well manager. OE information allows levfor many years. Cars were pretty sim- els of efficiency and accuracy that ple and repairs were relatively cannot be duplicated by any other straightforward back in the “old source. with Mike Causey days.” So what has changed? Just A system such as ALLDATA® about everything: the vehicles, cus- CollisionSM S3500 provides a precise tomer expectations, economic pres- blueprint for sectioning, welding, sures and, last but not least, insurer panel replacement, mechanical repairs, electronic system reset procerequirements. What has not changed is the need dures, hybrid precautions, detailed with Mike Causey upper body dimensions and more. to repair vehicles to their safe, pre-colAnd, don’t forget manufacturers’ techlision condition. As Dennis Dean nical service bulletins (TSBs), which Gamba of Cranston Collision Center in Cranston, Rhode Island, puts it, alert you to known problems that may “For me, it’s all about knowing that we have existed prior to a collision. ALLDATA Collision S3500 is a single are doing the jobwith right and that the veJanet Chaney hicle is safe when it leaves here. I have source for information on the vehicles a child and I want to know that any you see coming through your shop every day. child is safe in a vehicle we repair.” Here are a few examples of the So, how do you continue to adkind of OE information available in here to high standards of safety and quality while operating a profitable ALLDATA Collision S3500:
ALL OEM Information
The Right Cause The Right Cause
and inadvertently triggered during vehicle repairs may deploy various safety features (side and curtain airbags as well as seat belt pretensioners). As a result, the precautions listed below must be followed by all service personnel when diagnosing/ser-
Item 1 2 3 4 5 6 7 8 9
P/N
02038 16C274 02015 02030 01610 02039 16C275 16138A 16138B
2009 Ford® F-150® Front Structure Material Identification
Description
Cowl side panel – high-strength low alloy (HSLA) 350 steel Inner fender reinforcement – HSLA 350 steel Cowl panel upper – HSLA 350 steel Cowl top inner panel – mild steel Dash panel – laminated steel Cowl side panel – HSLA 350 steel Inner fender reinforcement – HSLA 350 steel Radiator support – magnesium alloy Lower radiator support – HSLA 350 steel
Automaker Actions and Announcements
ALL OEM Information with Tom McGee
ALL OEM Information with Tom McGee
Shop Showcase
2011 Kia® Sorento® and 2009 Kia Borrego®. Caution during Airbag Control Unit Servicing
with Ed Attanasio shop given today’s market realities? Always refer to ALLDATA ColliEfficiency is an absolute must. And, sion for safety procedures, identificathe key to efficiency is accurate infortion of material types, recommended mation. Not just any informarefinish materials, and removal and tion—OE information. After all, the installation procedures. Always refer factory built the cars, trucks, vans and to the vehicle manufacturer for quesAttanasio SUVs, and the with factoryEd knows how tions relating to applicable or non-apthey need to be repaired. plicable warranty repair information. This bulletin describes precauFrom sophisticated collision tions necessary during Borrego (HM) avoidance systems, to new generation and Sorento (XM) Airbag Control Unit construction materials to hybrid tech(ACU) related diagnosis/repair/renology, it seems as if vehicles are becoming more complex by the minute. placement to prevent accidental airbag Mild steel, high-strength steel, ultra deployment during servicing. As an high-strength steel, aluminum, carbon added safety feature, a Rollover Sensor has been incorporated into the Borfiber, advanced plastics—who knows rego (HM) and Sorento (XM) ACUs. what the next model year will bring. This sensor determines if a rollover inHow do you keep up? With OE repair cident is imminent, and if improperly information!
Shop Showcase
Say What?! Say What?!
32 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
vicing the Airbag Control Unit (ACU)
and related components.
WARRANTY ALWAYS disconnect both battery cables from the battery and bleed-off residual voltage by holding the positive and negative battery cables together for 10 seconds before servicing or removing the Airbag Control Unit (ACU). ACU must be securely installed in its proper location/position during diagnosis/repair of the vehicle. All ACU bolts must be tightened to proper torque specifications and all grounds must be attached during vehicle servicing. NEVER turn the ignition ON unless the ACU is securely bolted down in its designated location/position. The application or use of panel adhesive is limited to the approved procedures published in Toyota, Lexus, and Scion model-specific Collision Damage Repair Manuals. The following illustration is an example of specifications that include the use of adhesive. Please review collision repair manuals (www.techinfo.toyota.com) for complete instructions and symbol translations.
2010 Hyundai® Genesis® Sedan Selected Upper Body Dimensions
Note: Panel-bonding and weld-bonding are not approved procedures. Definitions: • Panel-bonding is a substitution of any specified welds with adhesive material. • Weld-bonding is squeeze-type resistant spot-welding through adhesive. For more information on OE repair inforToyota®, Lexus®, Scion® Vehicles Exterior Panel Adhesive mation, please visit http://www.alldata.com/promo/abn8tt/ INSTALLATION POINT • Apply adhesive (3MTM AuNOTE: This Repair/Service ProtomixTM Panel Bonding adhesive # cedure is excerpted from a Technical 8115) to the area indicated by *1. Service Bulletin published by the vehi• Perform spot-welding on the flange cle manufacturer, and is intended for use indicated by *2. by trained, professional technicians with
the knowledge, tools and equipment to do the job properly and safely. It is rec-
ommended that this procedure not be performed by “do-it-yourselfers.”
use of a facility or recommending it, except by consumer request. After inviting interested parties to submit proposals for amending the model this summer, the committee received numerous suggestions. The insurance groups American Insurance Association (AIA), the National Association of Mutual Insurance Companies (NAMIC) and the Property Casualty Insurers of Amer-
ica (PCI) submitted a proposal to add a whole new section of the bill containing a list of repair facility prohibitions. Another suggestion came from the California Autobody Association (CAA) which proposed that insurers be required to disclose to vehicle owners that the insurer receives discounts and other financial concessions from its preferred repair
facilities as a condition of becoming a preferred facility, unless no such agreement exists. SCRS has vocally objected to the Crash Parts model, both during in earlier debates held during the previous decade, and since it was reintroduced to the committee in 2008. The full text of the act can be viewed on NCOIL’s website at www.ncoil.org.
Continued from Page 24
NCOIL Model Act
committee) evolved into a one page stand-alone document and soon became a multiple page, contentious proposal that drew plenty of comments and criticism from insurers, repairers and the auto glass industry. As originally introduced, the steering proposal banned requiring
2010 Toyota® Corolla® Selected Manufacturer Positions
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 33
AutoTrader.com to Purchase Kelley Blue Book
AutoTrader.com, the Internet’s ultimate automotive marketplace and consumer information web site, announces that it has signed a definitive agreement to acquire Kelley Blue Book (www.kbb.com), one of the most recognized and influential brands in the automotive industry. As part of the deal, AutoTrader.com will also acquire Kelley Blue Book’s sister companies CDMdata and CDM Dealer Services. Details of the transaction are not being disclosed. Kelley Blue Book will operate as a subsidiary of AutoTrader.com and continue to be headquartered in Irvine, CA. The deal is expected to close by the end of the year. J.P. Morgan acted as Kelley Blue Book’s exclusive financial advisor through this process. Goldman, Sachs & Co. acted as financial advisor to AutoTrader.com. “AutoTrader.com is excited about becoming the new owner of Kelley Blue Book because we believe the company has a great future,” said AutoTrader.com President and CEO, Chip Perry. “Kelley Blue Book has a wonderful history as an iconic brand and trusted provider of vehicle information to generations of car buyers and sellers, and as we look into the fu-
ture we believe together we can bring a host of new technologies and tools to market that will significantly improve the car shopping process for consumers, and help auto dealers and manufacturers better capitalize on the fundamental efficiency advantages of the Internet.” “The future that lies before us is full of potential,” said Kelley Blue Book President and CEO Paul Johnson. “Becoming part of the AutoTrader.com family of companies will help us accelerate our growth in the vehicle valuation and consumer car shopping spaces.” AutoTrader.com strongly believes in maintaining Kelley Blue Book’s independent and unbiased position in the marketplace. Furthermore, AutoTrader.com is committed to maintaining and strengthening Kelley Blue Book’s role as The Trusted Resource® for vehicle valuation and other important industry information among consumers, dealers, manufacturers, financial and governmental institutions. Paul Johnson and the rest of Kelley Blue Book’s leadership team will remain in place and continue to enhance the company’s brand in collaboration with AutoTrader.com.
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First Porsche Approved Collision Center Comes to Atlanta The Porsche Approved Collision Center Program was established to ensure that when a Porsche vehicle is involved in a collision that the exacting repair and reconstructive techniques and materials are used and that the Porsche owner’s “Porsche perfect” driving experience is not diminished. Via a rigorous process of on-site audits, and over 1,000 hours of training at the Porsche Academy, Porsche has ensured that their high standards of performance and construction are fully restored by skilled and trained professionals. Porsche Approved Collision Centers commit to these procedures, and to the use of genuine Porsche parts, materials, tools and equipment. Porsche Approved Collision Centers are also continuously supported and monitored by factory technical personnel. The Jim Ellis Collision Center was sponsored to participate in the Porsche Approved Collision Center Program by the team at Jim Ellis Porsche. “I am very proud of our Collision Center team, led by Marc Sizemore in achieving the coveted Porsche Certification,” says Doug McIntyre, General Manager of Jim Ellis Porsche. Five of the technicians and three estimators on staff at the Jim Ellis
Collision Center have attended the Porsche Academy training sessions over the past 14 months, often after a full shift or on Saturdays. There are only twelve collision centers to have successfully completed this program. Jim Ellis Collision Center is the first to be Porsche Approved in the state of Georgia, and one of three in the Eastern US. Remarkably, it is only the second dealership shop to complete the program. Notably, Jim Ellis Collision Center is the only dealer shop in the United States to become Audi Certified, Volkswagen Certified, and Porsche Certified. “Our personnel recognize the challenges in repairing today’s automobiles, particularity Porsches,” says Marc Sizemore. “New safety standard ratings and fuel efficiency requirements are driving new materials and technology into today’s vehicles. Only a collision center dedicated to new training and equipment can repair these vehicles correctly. Jim Ellis Collision Center is proud that Porsche has recognized our efforts.” To learn more please visit the Jim Ellis Collision Center website (http://www.jimelliscollision.com).
Parts Parts you you Need. Need. People People you you Trust. Trust. Genuine Genu Ge nuin nu inee Mitsubishi in Mits Mi tsub ts ubis ub ishi is hi replacement rrep epla ep lace la ceme ce ment me nt Crash CCra rash ra sh Parts PPar arts ar ts are are close cclo lose lo se at at hand hand through tthr hrou hr ough ou gh the the following ffol ollo ol lowi lo wing wi ng quality qual qu alit al ityy dealerships. it deal de aler al ersh er ship sh ips. ip s. They TThe heyy offer he offer exceptional eexc xcep xc epti ep tion ti onal on al customer ccus usto us tome to merr service, me serv se rvic rv ice, ic e, wide wid w idee selection id sele se lect le ctio ct ionn of in-stock io iinn-st nstoc st ockk oc parts part pa rtss and rt and the the experience expe ex peri pe rien ri ence en ce necessary nnec eces ec essa es sary sa ry to to ensure ensu en sure su re your yyou ourr repairs ou repa re pair pa irss proceed ir proc pr ocee oc eedd smoothly. ee smoo sm ooth oo thly th ly.. ly
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SCRS to Cover Membership Costs for Industry Schools As part of its ongoing effort to support industry education, the Society of Collision Repair Specialists (SCRS) announced at its board meeting held during the 2010 SEMA Show that it will begin picking up the membership cost for educational facilities that provide a collision repair vocational or technical program. This offer is effective immediately to all schools that complete the Collision Repair Education Foundation’s online School Solutions Survey. SCRS understands that collision repair and refinish technician training programs play a central role in ensuring a high professional standard for the collision repair industry, now and in the future. “The lifeblood of our industryqualified, skilled personnel-are sourced from institutions providing accredited technical instruction,” states SCRS Education Committee Chair Paul Val. “SCRS wants to do everything it can to encourage and foster these programs. Paying for the
memberships of these schools shows our commitment in a tangible, meaningful way.” SCRS currently counts a handful of vo-tech schools among its membership, but hopes this offer will increase the number that becomes active SCRS members. This will give the Society the chance to expand communications within the technical education sector, providing a more direct opportunity to acquaint students with the viability of today’s collision repair industry as a place to build a satisfying, long-lasting professional career. “The Collision Repair Education Foundation is appreciative to have such great support for the institutions we serve from an industry mainstay like SCRS,” says Education Foundation Executive Director Scott Kruger. More information can be found at www.scrs.com or by emailing info@scrs.com and by visiting www.ed-foundation.org.
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Wicklund’s CARSTAR Honors Kansas City Area Veterans
On November 9, Wicklund’s CARSTAR Collision Center honored America’s active duty and military veterans with a special celebration as part of National Military Month. The event featured a free celebration for all veterans and active duty military members and their families, an appearance by the Kansas City Royals and presentation of a vehicle to a Kansas City area veteran by Cars 4 Heroes. Wicklund’s CARSTAR, a member of the nation’s largest family of auto body experts, owned and operated locally for 40 years held the event at their Liberty, MO shop. Thanks to the support and generosity of sponsors, the event was free to veterans, active military personnel and their spouses. In addition to prizes, food, soft drinks and beer, the Kansas City Royals distributed tshirts to the first 600 attendees. At the event, Cars 4 Heroes presented a vehicle to Greg and Debbie Kerr from Buckner, MO. They were submitted by neighbors and received a 1992 Toyota Camry. The organization takes in donated cars, makes sure they are mechanically sound and pass a
Missouri safety inspection for Veterans and their families. As part of the celebration, Wicklund’s CARSTAR partnered with the VFW Foundation on its “Return the Favor” national campaign designed to boost morale and fill-in governmental assistance gaps for troops (all Service Branches) and military families anywhere in the U.S. Liberty-area customers can simply make a donation of $5 and have their name featured on the “Return the Favor” donation cards featured in the store. All monetary donations raised will be split between the VFW Foundation and the local VFW post. Wicklund’s CARSTAR is also holding an “Adopt a Troop” donation program in conjunction with their local VFW to collect supplies for the troops. Wicklund’s CARSTAR is located at 941 Sutton Place Liberty, Mo. 64038.
Classic Collision Opens 8th Location in Metro Atlanta
Alabama-Made Auto Sales Up 23% from Dismal 2009
Classic Collision is proud to announce the opening of a state-of-theart collision repair center in Sandy Springs, GA. The 70,000 square foot facility will occupy the former Tom Jumper parts and service buildings. The facility has been transformed from a typical service center into a very elegant and warm environment. When at capacity, the Sandy Springs location will repair as many as 8,000 vehicles annually and is scheduled to employ 40 to 50 people in the coming year. With the addition of the Sandy Springs location, Classic Collision, which was started in 1983, now operates 8 locally owned collision repair centers with 230 employees. All Classic Collision locations have state-of-the-art repair equipment that exceeds industry standards. They have worked to achieve the prestigious collision repair certifications of Mercedes Benz, Jaguar, and Sprinter and use the approved paint line— DuPont™ Spies Hecker® brand of paint products, which offers a lifetime warranty. Their facilities also provide collision repair work exclusively for 24 automotive dealerships, and are BMW and Lexus approved.
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U.S. sales of Alabama-built vehicles this year continue to climb over the To advertise dismal results of 2009, although the call Advertising at: industry has a long waySales to go before it reaches full turnaround, according 800-699-8251 to reports made by the Birmingham e-mail: News. advertising@autobodynews.com So far this year, combined sales ofwww.autobodynews.com state-made models stand at 452,052 — a 23 percent increase over those sold through October of ‘09. Such numbers have the Alabama factories operated by MercedesBenz, Honda and Hyundai humming, See asthe N a drastic change from the idled sembly lines in 2009. Combined sales of the Sonata and the Santa Fe SUV, which Hyundai moved out www.autobodyn of Montgomery in September, total 223,738, a 35 percent improvement over last year. The Santa Fe is now being built at a Kia plant in Georgia, and production of the Hyundai Elantra compact sedan will start this month in Montgomery. Despite the rising numbers, total U.S. industry sales remain far below those seen earlier this decade, when annual totals ranged from 16 million to 17 million. For most of this year, the annual selling rate has hovered around 11 million.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 35