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TIAA Associate Member Puts on Lone Star Skeet Shoot for Wounded Warriors Wounded warriors currently taking part in rehabilitation programs at the San Antonio Military Medical Center
Lone Star Radiator employees and wounded warrior participants lined up to thank the event’s sponsors
took aim on October 1 at a free skeet shoot in Rio Medina, TX, courtesy of
Lone Star Radiator Company, an associate member of the Texas Independent Automotive Association (TIAA). Lone Star Radiator Company honored America’s military heroes for their extreme sacrifices in combat by hosting the event. With the help of sponsors, which included non-profit Veteran Outdoors, the wounded military personnel were equipped with shotguns, ammo and everything else needed to fire at the elusive clay birds. The event was sponsored by Lone Star Radiator Company, Rio Skeet Mobile Skeet Shoots, Monterey
sidebar p. 30). In approximately 45 days, Jones and his department will issue an official Notice of Proposed Action. The meeting was chaired by Teresa A. Campbell of the DOI’s Legal division and attended by 50–60 invitation-only repairers, insurers, and representatives of both OE and Aftermarket parts manufacturers. In a letter to invited participants sent to body shops, insurers and aftermarket parts vendors and manufacturers, the Commissioner’s office wrote: “The purpose of these discussions is to permit certain interested and affected persons See DOI Meeting, Page 26
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
In the first major policy meeting directly affecting the collision repair industry, representatives of Insurance Commissioner David Jones called a pre-notice public meeting for discussions on regulations regarding standards for reasonable repairs and the use of aftermarket parts on November 16th in San Francisco. In preparation for the “pre-notice public discussions,” the Commissioner released a series of proposed revisions to the California Code of Regulations that was discussed and reviewed in depth at the meeting (see
Voices Heard Amid Revving Engines at SEMA, What the Collision Repairers Said and Heard by John Yoswick
See Skeet Shoot, Page 4
California DOI Meeting Addresses Regulations Affecting Aftermarket Parts and Accountability by Ed Attanasio
VOL. 29 ISSUE 12 DECEMBER 2011
One of three SEMA Show Halls hosting 2,000 vehicles and 135,000 attendees
When you read a sampling of comments from among the 135,000 people in Vegas during SEMA week—no matter how you look at it—SEMA has all the diversity of a small city. A city where, for love or profit, all the citizens share a car obsession, but it’s a city-sized population nonetheless. About 132,000 people flooded into Las Vegas in November for the Specialty Equipment Market Association (SEMA) tradeshow, with about half of those pegged by show organizers as “buyers.” That’s about a 17 percent jump in show attendance over last year. They could have spent a day just checking out the approximately 2,000 cars on display in and in front See SEMA Heard & Said, Page 32
TIAA Donates to High School Automotive Program
Hooge. According to Hooge, the donation funds will be used for tools and uniforms for students. The Academy helps prepare high school students for work in the automotive industry by combining students interested in automotive technologies from several local area high schools into one statewide program. The Automotive Technology Academy is a state of the art facility where students are challenged to become life-long learners in the ever-changing automotive industry. Any David Bailey, Director of the Automotive Technology NEISD high school stuAcademy, accepts a $1,000 donation from the TIAA’s dent interested in this curMembership Director, Hunter Hooge riculum can attend the School District (NEISD) in San An- facility for this two period course. tonio, Texas. Admittance into the program is by David Bailey, Director of The application which is reviewed and Automotive Technology Academy, followed by an interview with an inreceived the check from TIAA’s structor. The Academy originally Membership Director, Hunter See TIAA Donation, Page 10
The Texas Independent Automotive Association (TIAA) presented a thousand dollar donation check to the Automotive Technology Academy on November 16 at a career fair for the North East Independent
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Contents 10 TX Residents Sentenced to Prison for
Insurance Insider - Industry Undecided
Which Will Prevail in NACE vs. SEMA. . 36
Insurance Fraud . . . . . . . . . . . . . . . . . . 6
Sisk - Blue Hen Collision Express in Dover,
Investment Firm for Planned National
Weaver - Are We Crossing Into the ‘Outer
Expansion . . . . . . . . . . . . . . . . . . . . . . . 8
Austin BBB Urges Customers to Get
Everything in Writing . . . . . . . . . . . . . . . 7
Caliber Collision Centers Joins Collision
Repair Education Foundation’s Industry
Leadership Circle With $10K Donation . 10
Gerber Collision & Glass Joins Collision
Repair Education Foundation’s Industry
Leadership Circle With $10K Donation . . 4
Jim Donelon Re-elected as Louisiana
Insurance Commissioner . . . . . . . . . . . . 4
Northwest LA Collision Repair Association
to Hold Xmas Party . . . . . . . . . . . . . . . 10
Oklahomans Face Tougher DUI Penalties . . 8 Red-tailed Hawk Takes Flight After Being
Struck by Car on Highway and Stuck in
Grille in Grapevine, TX . . . . . . . . . . . . . . 7
Service King Acquires Five New Shops
Near Austin, TX . . . . . . . . . . . . . . . . . . . 8
Spaceship Lands in Austin, TX, Thanks to
Delaware, Makes Location Count . . . . 25
Limits’ of Automotive Repair? . . . . . . . 23
Williams - Southeast Toyota Distributors (SET) Embraces Industry Changes to
Help Dealers Stay Competitive . . . . . . . 35
Yoswick - CIC Committee and I-CAR
Respond to Association Statement on
‘Industry Standards’ . . . . . . . . . . . . . . 14 NATIONAL
Aftermarket Associations Complain to
FTC About Mazda’s Claims Regarding
Warranty Policy . . . . . . . . . . . . . . . . . . 38
ALLDATA Celebrates 25 Years of Business. 10
ASRW 2011: Attendance Up 18%, Positive
Feedback from Exhibitors . . . . . . . . . . . 15
California DOI Proposes Regs Affecting
Aftermarket Parts and Accountability . . . 1
Chief Donates Frame Rack to Operation Comfort Automotivation Program for
Wounded Warriors. . . . . . . . . . . . . . . . 16
John Borek of Autocraft Bodywerks . . . . 6
CIECA Advises on Progress of Total Loss
Galleria . . . . . . . . . . . . . . . . . . . . . . . . . 8
Hot Rod Industry Alliance (HRIA)
Tesla Opens Showroom in Houston
Texas Independent Automotive Association Donates $1,000 to Local High School
Automotive Program . . . . . . . . . . . . . . . 1
TIAA Associate Member Puts on Lone Star
Skeet Shoot for Wounded Warriors. . . . . 1
COLUMNISTS
Chess - Keenan Auto Body’s First
Responder Training Brings Together
Committee. . . . . . . . . . . . . . . . . . . . . . 11 Sponsored Pinewood Drag Races
Light Up 2011 SEMA Show . . . . . . . . . 33
Sherwin-Williams Donates $12,000 in
Product to Collision Repair Education
Foundation 2011 Makeover Applicant
Schools . . . . . . . . . . . . . . . . . . . . . . . . 10
Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best
Practices for Shops . . . . . . . . . . . . . . . 37
PA & DE Communities . . . . . . . . . . . . . 28
Supplier Price-fixing Litigation May Play
the Sale . . . . . . . . . . . . . . . . . . . . . . . . 12
Voices Heard Amid Revving Engines at
Franklin - Use Estimator Tactics to Close Gesterkamp - How Lucky Do You Feel?
—Durability of Back-Taped Edges . . . . 24
I-CAR - How to Work With Active Grille
Shutters on a 2012 Ford Focus . . . . . . 18
Out in Detroit . . . . . . . . . . . . . . . . . . . . 22
SEMA, What the Collision Repairers
Said and Heard . . . . . . . . . . . . . . . . . . . 1
White and Silver Most Popular Car Colors
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: 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, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Indexof Advertisers
ABRA Auto Body and Glass Partners With
in the World . . . . . . . . . . . . . . . . . . . . . 11
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. ©2011 Adamantine Media LLC.
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Autoland Scientech. . . . . . . . . . . . . 23 BASF . . . . . . . . . . . . . . . . . . . . . . . . . 9 BMW Wholesale Parts Dealers . . . . 33 Chevyland . . . . . . . . . . . . . . . . . . . . 31 Classic BMW . . . . . . . . . . . . . . . . . . . 7 Classifieds. . . . . . . . . . . . . . . . . . . . 38 Dallas Dodge . . . . . . . . . . . . . . . . . 40 David McDavid . . . . . . . . . . . . . . . . . 2 Equalizer Industries . . . . . . . . . . . . . 6 Ford Wholesale Parts Dealers TX, OK, LA, NM. . . . . . . . . . . . . . 27 Fowler I-240 Chrysler-Jeep-Dodge. 13 Garmat USA . . . . . . . . . . . . . . . . . . 16 Gene Messer Hyundai . . . . . . . . . . 28 Global PDR Solutions . . . . . . . . . . . 10 GM Wholesale Parts Dealers . . . . . 34 Honda-Acura Wholesale Parts Dealers. . . . . . . . . . . . . . . . . . 20-21 Huffines Hyundai Plano . . . . . . . . . 18 Hyundai Wholesale Parts Dealers . 30 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 29
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . 39 Mark’s Casa Mitsubishi. . . . . . . . . . 26 Mazda Wholesale Parts Dealers . . . 24 Mercedes-Benz of Oklahoma . . . . . 31 Mike Calvert Toyota. . . . . . . . . . . . . 24 Mitsubishi Wholesale Parts Dealers. 35 MOPAR Wholesale Parts Dealers . . 17 Ray Huffines Chevrolet . . . . . . . . . . . 5 RealParts.com. . . . . . . . . . . . . . . . . . 8 Replica Plastics. . . . . . . . . . . . . . . . 25 Russell & Smith Ford-Mazda . . . . . 11 Safety Regulations Strategies. . . . . 25 Scoggin-Dickey Buick . . . . . . . . . . 15 Shop-Pro Equipment . . . . . . . . . . . 19 Suzuki Wholesale Parts Dealers . . . 37 Toyota of Fort Worth . . . . . . . . . . . . . 4 Toyota Wholesale Parts Dealers . . . 32 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . 35 Volvo Wholesale Parts Dealers . . . . 37 Young Chevrolet . . . . . . . . . . . . . . . 12
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 3
Continued from Front Page
Skeet Shoot
Iron & Medal Company, Thompson Print & Matting Solutions, Pure Party ice, Triple J. Pumps Inc., Circus Bingo and Veteran Outdoors. David Bippert, co-owner of Lone Star Radiator, said his company
Wounded warriors were able to take some time off from their recovery programs to enjoy a day of sport shooting, food and fun
started the event a year ago because everyone at the company wanted to give something back to the men and women who have served and sacrificed for freedom. At the skeet shoot, Bippert said there were many volunteers who gladly provided services, cooked and cleaned because they wanted to see the Soldiers enjoying this unique sport and be able to eat a brisket lunch with all the fixings. “They are very humble,” Bippert stressed about the wounded warriors. “They’re so surprised and thankful (to be honored), because it’s part of the
job that they signed up to do. And it makes them feel good when you do call them heroes, even though they may not think of themselves as that.” Participants also received prizes donated by Academy Sports & Outdoors. Army Cpl. Armin Gamalyan, took first place at the skeet shoot. He is recovering from wounds he received when an improvised explosive device ejected him from his position as a mounted gunner in Afghanistan Dec. 2, 2010. After the event, Gamalyan said he had fun and was blown away by all the support. “I’m from California. Texas is amazing. They love their veterans here,” Gamalyan said about the day’s activities. “It’s great getting out of the barracks, letting us shoot… the food was awesome.” Retired Army Master Sgt. Daniel Robles from San Antonio took second place. He is a double amputee from injuries received when an IED hit his Humvee in Baghdad in 2006. “This is pretty much the best kind of therapy you can get being outside with a bunch of people that like to do what you like to do,” Robles said. “Even walking around out here… gets you back into things and proves to yourself you are able to do things.” Robles said it was also good to meet Capt. William Lyles, who is also a double amputee and early in the process of his recovery. He was in-
Gerber Collision & Glass Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation
Gerber Collision & Glass has joined the Collision Repair Education Foundation’s Industry Leadership Circle donor designation through their recent $10,000 donation. This donation supports the Education Foundation’s Collision Repair Education Campaign fund which allows the organization to support secondary and post-secondary collision students through their annual student scholarships, tool/equipment grants, and the Ultimate Collision Education Makeover $50,000 school grant. “This donation is a display of Gerber’s commitment to the future professionals of the collision industry and is an investment in their technical education,” said Gerber Collision & Glass President and COO Tim O’Day. “We are very pleased to be able to support the Collision Repair Education Foundation and look forward to partnering with them in the future to assist secondary and post-
secondary collision students.” Collision Repair Education Foundation Executive Director Scott Kruger commented, “Thanks to Gerber Collision & Glass for joining the Collision Repair Education Foundation’s efforts to support collision school programs and their students. By increasing educational opportunities for these students, who are tomorrow’s industry professionals, the future will be brighter for all collision repair businesses. The Collision Repair Education Foundation would also like to thank Gerber Collision & Glass President Tim O’Day for participating on our Board of Trustees, providing focus and direction for all our efforts in support of collision students and school programs.” Additional information about Gerber Collision & Glass can be found at www.GerberCollision.com. For more information about the CREF contact Brandon Eckenrode at Brandon.Eckenrode@ed foundation.org.
4 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
jured when he stepped on an IED during a firefight Aug. 28, 2010 in Afghanistan. Lyles brought his wife and four kids to enjoy the activities. Although he was unable to participate in the skeet because he is still early in the recovery process, it was clear he was moved by the generosity and support of everyone. “Events like this are just… I mean honestly amazing,” Lyles said. “They give guys chances to do things they’ve never done. I mean heck, my wife is down there shooting a rifle right now and never shot before in her life. The support of the people here in San Antonio, just the surrounding area, people have been amazing. I don’t think I can say thank you enough for all that I have received. Even just a thank you or pat on the back or someone shaking my hand really means a lot.” Bippert said that Lone Star Radiator and sponsors also donated $2,000 to Veteran Outdoors so more wounded warriors could also experience an activity similar to their skeet shoot. For more information about Lone Star Radiator Company, go to www.lonestarradiator.com.
Jim Donelon Re-elected as Louisiana Insurance Commissioner
Louisiana Insurance Commissioner Jim Donelon was successful in retaining his elected post during elections for the post in his state this month, according to Insurance Journal. Donelon, a Republican from Metairie, sailed to re-election on Oct. 22. According to official returns issued by the Secretary of State’s office, Donelon, a Republican, defeated his lone Democratic opponent Donald Hodge 67.45 percent to 32.55 percent. Hodge criticized Donelon for receiving hundreds Jim Donelon of thousands of dollars in campaign donations from insurance companies. A former lawmaker, Donelon said he’s approached the insurance regulatory post fairly, increasing competition to the state and stabilizing a market ravaged by four hurricanes since 2005. Donelon has been insurance commissioner since 2006.
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Spaceship Lands in Austin, TX, Thanks to John Borek of Autocraft Bodywerks John Borek, general manager at Autocraft Bodywerks off South Congress Avenue in Austin, built a spaceship to put in his front yard especially for Halloween this year. The shiny flying saucer looks as if it has crashed into the lawn and is surrounded by yellow “caution: radiation area” tape. Borek figures it took 80 to 100 hours of labor to put together his outof-this-world contraption, according to the Austin-American Statesman. Although it’s made mostly of aluminum, the rounded top is a salad bowl. The saucer plays the theme from “The XFiles” and blows smoke. “I put a fog machine in it. Every year I’ve added stuff, so now it has smoke coming out of it.” said Borek, 47, whose auto body refinishing skills came in handy when creating this Halloween masterpiece. “I could have put a crashed car in the yard, but that probably wouldn’t have been a good Halloween prop.” The saucer, 8 feet in diameter, is in its second year as a Halloween special. Borek figures he spent $2,000 to put this year’s version together.
Here’s a surprise: Borek says his saucer design plans came from Hitler. Who knew? Borek found the design information online. He brought out the plans and showed them to me. “You’ll notice they’re in German,” he said. “Hitler was intrigued with flying
John Borek of Autocraft Bodywerks stands next to his intergallactic creation
saucers, apparently, years ago, so he had his scientists or whatever—they designed some flying saucers.” “If you do research on the Internet, they all say there was a glowing red light coming from the center of the thing. So I tried to reproduce that,” Borek explained, without saying who “they” are.
10 TX Residents Sentenced to Prison for Insurance Fraud Ten south Texas residents have been sentenced to time in a federal prison for their roles in a scheme to defraud the American Family Life Assurance Company (Aflac) by filing false injury claims under Aflac’s Accident-Only Insurance Plan, U. S. Attorney Kenneth Magidson announced on November 3. In June 2011, 36 persons were charged in various indictments for their roles in a scheme to defraud Aflac of millions of dollars by filing thousands of false injury claims, according to Insurance Journal. U.S. District Judge Micaela Alvarez sentenced 10 of the defendants to terms of imprisonment without parole each to be followed by a threeyear-term of supervised release and ordered that they make full restitution to Aflac. The sentences imposed were as follows: ●Rachel Betancourt, 42, of Edinburg, Texas—27 months in prison and $96,955 in restitution ●Dalia Cerda-Delgado , of Palmview, Texas—24 months in prison and $38,925 in restitution ●Lilly Perez, 32, of La Villa, Texas— 24 months in prison and $139,120 in restitution ●Patricia Cerda-Flores, 44, of Palmview, Texas—18 months in prison and $86,395 in restitution ●Desiree Rodriguez, 34, of Edinburg,
Texas—17 months in prison and $109,450 in restitution ●Maria C. Alaniz, 39, of Elsa, Texas—15 months in prison and $88,340 in restitution ●Jose Rodriguez, 34, of Edinburg, Texas—15 months in prison and $102,335 in restitution ●Ninfa Reyes, 38, of Edcouch, Texas—12 months and one day in prison and $38,925 in restitution ●Noemi Villareal, 60, of Edcouch, Texas—12 months and one day in prison and $63,450 in restitution ●Rebecca Castillo, 41, of Edinburg, Texas—eight months in prison and $17,510 in restitution Specifically, from 2005 through 2010, the defendants routinely delivered lists of fake accidents and injuries to two physicians in Reynosa, Tamaulipas, Mexico. The physicians prepared an “accident report” for each fake injury in exchange for a cash kickback of approximately $15 per accident report. In each report, the physicians falsely claimed they had provided treatment and prescribed medicine to the defendants for their purported injuries. Over time, the defendants above faxed approximately 6,944 false injury claims and accident reports to Aflac in Columbus, GA. The 10 defendants received various amounts of money from Aflac totaling $778, 470.
6 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Borek received some interesting looks from the community surrounding the spaceships’ placement—a gated community. The saucer has landed at Borek’s swank home in the Preserve at Barton Creek, off Texas 71 out past the “Y” in Oak Hill, where you can find real estate listings ranging from $650,000 to $950,000. So do the neighbors like this “Star Wars” piece? “Some probably like it. Some of em don’t say much,” Borek said. But he figures, what the heck, the neighbors have their Halloween decorations. So why shouldn’t he? “They’ve got goblins, and that guy’s got a guy hanging (in a tree) over there, so why can’t I have a spaceship?” he asked. Indeed. The middle section of the spaceship consists of about 2½ gallons of Bondo. Of course it does; Borek runs a body shop. Then there’s the rubber alien with large eyes and scaly body, perched on a garden rock wall in the yard. “I ordered it online,” Borek said. “That thing was about 200 bucks. He’s about 3 feet tall. I actually had him a couple years ago. We named
him Alex. I used to put him in the car around Halloween and drive around with him. I put the seat belt on him, and people at red lights would look.” Some wise guy snuck up onto Borek’s yard and put a Texas Rangers hat on him, along with a yellow LiveStrong wristband. The two warning signs posted by the yellow crash scene tape are the same as those you’d find at Area 51, Borek said, speaking of the top-secret stretch of Nevada land where true believers are sure the U.S. government is involved in clandestine intergalactic business. “While on this property all personnel are subject to search,” the signs say. “Believe it or not, I got them from a guy who said he worked in flying saucers for the government in the 1980s,” Borek said. “He now owns an electronics company.”
www.autobodynews.com C
Red-tailed Hawk Takes Flight After Being Struck by Car on Highway and Stuck in Grille in Grapevine, Texas A red-tailed hawk that collided with a car and got caught in its grille is on the road to recovery and was expected to successfully complete its first test flight on October 26, according to the Grapevine Courier.
The red-tailed hawk was hit by the Lexus going approximately 60 mph on the highway
The hawk was hit by the car midOctober in Grapevine, TX. The vehicle was traveling on a local highway when it struck the bird, which may have been diving for food at the time of the collision. The driver thought the hawk was dead and drove to Park
Place Lexus in Grapevine, where mechanic Matt Whitehead extracted it from the grille. Whitehead said he also assumed the bird was dead. “I saw his eye, and he blinked,” Whitehead said. “Then I realized he was alive.” Whitehead said that after the bird was freed, it tried to fly but was unsuccessful. “As soon as he came out and realized he wasn’t stuck, he started flapping,” he said. “I turned him loose, he flew about 20 feet and crashed... something was wrong with his right side.” Whitehead said the bird would take a hop or two and then land again, never able to go airborne. “Finally, when I was able to get close enough and he let me pick him up, we took him to the vet,” he said. The hawk has been recovering under the care of veterinarian Greg Moore at Southlake Animal Hospital. “The bird is going to a flight aviary, where he can have space enough to test-flight,” said Erica Puma, receptionist at the hospital. “They will make sure he’s flying on
his own and is able to see, so he can eat. Sight is very important to their hunting abilities.” Puma said the bird suffered a minor concussion but otherwise checked out fine and required no surgery.
Mechanic Matt Whitehead was able to free the bird at Park Place Lexus and take him to a local vet
said.
“He has done pretty well,” she
Whitehead said that in his 17 years as a mechanic, he has never seen anything quite like this. “As far as animals in cars, I’ve seen small things like rodents, and even a raccoon once, but certainly never a bird of prey,” he said.
Austin BBB Urges Customers to Get Everything in Writing
The Better Business Bureau of Austin, TX, wants automobile body shop customers to remember to get everything in writing. The warning comes after the BBB alerted the community to half a dozen reports they received regarding one local auto shop. Customers told the BBB that Austin’s Collision Solution told them their cars would be done on a certain day, and then ignored their phone calls. “It took me threatening that I was going to sue them and had an attorney working on a lawsuit before they actually did anything on my car and got it back to me,” customer Melissa OrrenCordoba said. The shop owner told YNN that the insurance company caused the delay and the complaints represent just a small fraction of his customers. The Better Business Bureau said that no matter the situation, customers should protect themselves by drawing up a contract. “Get all the terms and conditions, timelines, and everything they can in writing so at least there’s an expectation on both sides of the coin of what’s going to be performed,” Erin Dufner with the BBB said. A list of BBB accredited businesses can be seen at www.bbb.org.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 7
Oklahomans Face Tougher DUI Penalties
Beginning Nov. 1, Oklahomans who drive drunk will face tougher penalties—changes that supporters say will save lives, according to Insurance Journal. Sen. Clark Jolley and Rep. Jason Nelson authored the Erin Swezey Act last session, which won overwhelming approval by the legislature and was signed into law by Gov. Mary Fallin. The legislation was named for a 20-year-old Oklahoma State University student from Edmond who was killed in 2009 by a drunk driver with numerous DUI arrests and convictions. As of Nov. 1, an interlock device will be required for 18 months on a first conviction for those with a blood alcohol content (BAC) of .15 or higher. For a second or subsequent offense, the interlock will be mandatory for those with a BAC of .08 for a period of four years, and for five years on subsequent offenses. Under the new law, those convicted will have the designation “Interlock Required” on the face of their driver licenses as long as they’re required to have an interlock device. According to the Centers for Disease Control, interlock devices are credited with reducing repeat drunk driving offenses by an average of 67 percent.
Service King Acquires Five New Shops Near Austin, TX Service King Collision Repair Centers, a Texas-based multiple shop operator with locations in the Dallas-Ft. Worth, Houston and San Antonio markets, acquired B&B Body and Paint in November. B&B operates five highvolume collision centers in Austin, San Marcos and Leander, Texas. Service King says the addition of B&B Body and Paint positions the company as the largest independently and employee-owned collision repair organization in the United States. With 47 Texas locations throughout Austin, San Antonio, Dallas, Fort Worth and Houston, Service King is now able to serve 70 percent of the $1.5 billion total collision market in Texas. “The acquisition of B&B Body and Paint allows us to start serving the people of South Austin, North Austin, San Marcos, Round Rock and Leander, Texas,” said Service King Austin Market Vice President Jeremy Lennox. “We’re thrilled about the addition of B&B’s talented employees and skilled technicians to our base of over 1,400 Service King teammates throughout Texas.” “We are very excited about B&B Body and Paint joining the Service
King Team,” said Craig Van Cleve, B&B Body and Paint’s owner. “For the past 32 years, our success has been driven by our unrelenting focus on complete satisfaction and respect for our customers and employees. Service King will continue on with these same core values.” Cathy Bonner, president of Service King, added, “In DFW and Houston, Service King is known as one of the ‘best places to work’ by the Dallas Business Journal, and we plan to bring our same level of health, retirement and career benefits to all new teammates in Austin. The reason Service King is the largest employee-owned collision repair center in the United States is because the people in this company care about their customers and the trauma they go through after a collision.”
ABRA’s President and Chief Financial Officer, was appointed Chief Executive Officer in connection with the transaction. Rouse said, “We are extremely pleased to be working with Palladium, a firm with a strong track record as an investor and many years of experience helping companies grow. With this partnership in place, we are well-positioned to accelerate our national expansion plan, and to further our mission of becoming the leading auto body and glass company in America.” Luis Zaldivar, a Managing Director at Palladium, said “ABRA is well-known throughout the industry as a premier provider of auto body, auto glass and paintless dent repair services. But it is ABRA’s innovative service model and deep insurance industry relationships that truly set it apart. The Company has a terrific management team that has guided its organic growth over the course of nearly three decades—including through the establishment of a highly successful franchise program. Palladium looks forward to partnering with ABRA on a range of new market opportunities in the months and years ahead.”
8 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Part auto showroom, part interactive high tech gallery, Tesla Motors showed off its first Texas gallery at the Houston Galleria October 21, according to The Fort Bend Sun. The gallery is not a dealership, however, and Texas law prohibits it from selling cars, although galleries in some other states do. Tesla will not be selling cars at the Galleria. It is designed to invite the public in to explore Tesla’s technology and learn about electric vehicles. Texas customers can go to teslamotors.com to purchase the vehicles online, the gallery will be for viewing and informational purposes only. The Houston gallery is one of several new Tesla locations opening in the next several months, marking a major expansion in North America. Tesla officials said it chose the centrally located Galleria to expose as many people as possible to the advantages and practicality of electric vehicles. The layout of the space engages and informs visitors with hands-on exhibits, interactive touchscreen experiences, and the opportunity to sit behind the wheel.
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ABRA Auto Body and Glass Partners With Investment Firm for Planned National Expansion Palladium Equity Partners, LLC, a private investment firm, announced November 7 that it has partnered with management to recapitalize ABRA Auto Body & Glass , a leading national provider of vehicle damage repair services. Terms of the transaction were not disclosed. Founded in 1984, ABRA is a recognized leader in collision repair, paintless dent removal, and auto glass repair and replacement with 75 company-owned vehicle damage repair centers and 38 franchised centers in 12 states. ABRA distinguishes itself by providing a solution that seeks to enable its insurance company partners to substantially improve customer satisfaction and drive policyholder retention, while simultaneously reducing repair costs and realizing substantial efficiencies in the claims management process. ABRA’s commitment to operational excellence allows it to consistently offer high quality service to its customers and insurance partners. Rollie Benjamin, ABRA’s founder, will remain Chairman of the Company and Tim Adelmann and Scott Krohn will continue in their senior executive roles. Duane Rouse,
Tesla Opens Showroom in Houston Galleria
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 9
Sherwin-Williams Donates $12,000 in Product to Collision Repair Education Foundation 2011 Makeover Applicant Schools Sherwin Williams Automotive Finishes has come to the aid of three school collision programs by donating $12,000 in product through the Collision Repair Education Foundation. Applied Technology Center (Rock Hill, SC), Freedom High School (Freedom, WI) and Sarasota County Technical Center (Sarasota, FL) all applied for the 2011 Ultimate Collision Education Makeover $50,000 school grant and within their wish lists, specifically requested Sherwin-Williams® products. The Collision Repair Education Foundation forwarded these requests to The Sherwin-Williams Company for consideration of donation and they have come through for the schools. Freedom High School Technology Education Instructor Jay Abitz said, “Sherwin-Williams has fulfilled a large need for my school. Their generous donations have taken a huge burden off of my shoulders and my budget. I cannot thank them enough!” Applied Technology Center and 2011 Makeover school grant winning instructor Mark Dellinger said, “This donation is huge! With a shrinking budget that is tightening everyday, it is next to impossible to let my students
just blow through waterborne basecoat. This is a quality waterborne line that all students need to be exposed to on a regular basis.” Sarasota County Technical Center Program Manager Kristey Richardson said, “Sherwin Williams is an active and valued partner to our Sarasota (SCTI) Automotive Collision Repair and Refinishing Program. Without Sherwin Williams’ involvement on our program advisory committee and occasional donation of product we would not have the program success we enjoy at this time.” Collision Repair Education Foundation Executive Director Scott Kruger said, “Sherwin-Williams Automotive Finishes not only assisted our 2011 Makeover winning school but they also helped the two other applicant schools that specifically requested product from Sherwin-Williams through their Makeover grant application. It is a true testament of The Sherwin-Williams Company’s commitment to the future of the industry when it can be stated that they fulfilled all of the schools requests from the 2011 Makeover grant.” Information about Sherwin-Williams Automotive Finishes can be found at www.sherwin-automotive.com.
ALLDATA LLC, provider of automotive business solutions to professional mechanical and collision repair shops, is celebrating its 25th anniversary. “In 1986 our founders had a vision,” said ALLDATA President Jeff Lagges. “Since then, we have continued to lead the industry with innovative products that drive efficiencies and profitability throughout a shop’s operations. We like to say that we offer ‘counter-to-fender’ solutions, and it’s true. Our growth has been a direct result of anticipating needs and listening to our customers. We owe a great debt to our customers for helping us develop products that
have a positive impact on their businesses.” In 2008, ALLDATA celebrated its 70,000th product subscriber, and just three years later the company announced a record 80,000 subscribers. Long-time ALLDATA employee, Patti Collins, said, “I have been with ALLDATA for 20 years, and I have seen many changes. Over the years, the one thing that remains the same is our commitment to our customers. We have never stopped developing products to meet their needs and continue to explore new ways to help them. That’s why I’m still here.”
ALLDATA Celebrates 25 Years of Business
Continued from Front Page
TIAA Donation
opened its doors for the 2006–2007 school year. Prior to this the four high school campuses in San Antonio that were teaching the automotive courses were Roosevelt, Madison, Lee and Churchill. The board’s vision was to have a stand alone magnet program, not only to reduce costs to taxpayers, but also to keep up with the ever-changing automotive technology. ATA is a three year program
designed for students starting in 10th grade and finishing with an internship program their senior year. ATA students have the opportunity to learn automotive brake systems, suspension systems, electrical and electronic systems and engine diagnostics, among other skills. Having 27 donated vehicles in the program each year allows the students to apply academics with real hands-on experiences. For more information about ATA and TIAA, visit www.neisd.net/auto and www.tiaa.net.
10 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Caliber Collision Centers Joins Collision Repair Education Foundation’s Industry Leadership Circle With $10K Donation Caliber Collision Centers has joined the Collision Repair Education Foundation’s Industry Leadership Circle donor recognition group through a $10,000 donation. This donation will help provide educational support to post-secondary collision students at Universal Technical Institute in Houston and Sacramento this spring. “We are proud to support collision repair students at Universal Technical Institute in Houston and Sacramento who will become the future leaders of the collision repair industry,” stated Mark Sanders, Caliber Collision Centers Chief Operating Officer. “Through the Collision Repair Education Foundation, we are committed to becoming a leader in supporting collision repair students throughout California, Arizona, Nevada and Texas as we continue to grow into the collision repair provider of choice in every community we serve.” Collision Repair Education Foundation Executive Director Scott Kruger said, “Thanks to Caliber Collision Centers for supporting the Collision Repair Education Foundation and joining our efforts in supporting collision repair school programs and their students. Through Caliber’s donation, educational opportu-
nities for local collision students will be enhanced. The Industry Leadership Circle donor recognition designation highlights the extraordinary commitment of industry organizations and individuals to investing in the future of the industry. We welcome Caliber Collision Centers to this group of industry leaders.” For more information please visit www.calibercollision.com.
Northwest LA Collision Repair Association to Hold Xmas Party
The Northwest Louisiana Collision Repair Association (NWLCRA) will hold their annual Christmas Party on December 3 at 6:30 p.m. at Fielder’s Paint and Body in Shreveport. The party will also help out with the Toys for Tots program again this year. The donation of a new, unwrapped toy for either a boy or a girl is appreciated, and will be collected at the party by a representative of the U.S. Marine Corps. The Walker Street Band will also perform, back by popular demand. Cost is $30.00 per person, $60.00 per couple.Please RSVP by November 28 with payment. For RSVP information please see www.nwlcra.org.
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White and Silver Most Popular Car Colors in the World
White/white pearl has emerged as the fastest growing color to tie with silver as the world’s leading automotive color choices, according to the 2011 DuPont Automotive Color Popularity Report just released. A substantial increase in the popularity of white/white pearl globally in 2011 has enabled it to surpass longstanding rivals black and gray, to join silver at the top of the world color ranks in this year’s report. The DuPont report, in its 59th year, is the longest running and largest of its kind in the industry, includes automotive color popularity rankings and regional trends from 11 leading automotive regions of the world. In 2010, white/white pearl was tied for third with gray in the world color ranks with just 16 percent share, but its ongoing popularity in North America, combined with a surge in popularity in Europe, China, Korea, South America and South Africa, has helped to increase its position in 2011 to 22 percent globally. Black and gray dropped to third and fourth, respectively, in this year’s report with red and blue strengthening and holding positions in fifth and sixth place. The top global vehicle colors in DuPont’s report are as follows: 1. White/White Pearl and Silver – tie, 22 percent
3. 4. 5. 6. 7. 8. 9. 10.
Black/Black Effect – 20 percent Gray – 13 percent Red – 7 percent Blue – 6 percent Brown/Beige – 5 percent Green – 2 percent Yellow/Gold – 1 percent Others – 2 percent “While white/white pearl has historically been a popular color for vehicles, we’ve seen a bigger shift in its popularity this year than DuPont expected,” said Nancy Lockhart, DuPont color marketing manager. Silver and black have long been recognized in the top two for color popularity. However, in the past few years, white/white pearl has been steadily growing in popularity outside of North America. In 2011, it jumped by more than four percentage points, according to Lockhart. “There has been increased consumer acceptance for white, and our OEM customers are meeting consumer demand for the clean look it brings to vehicle design,” she said. “Silver and black were once the top colors of luxury, but white has increased in this area. The overall trend for casual luxury has spread to numerous vehicle types. The expectation to have a luxurious feel to the vehicle is globally sought. Classic white and pearlescent white effects are inspiring luxury design.
CIECA Advises on Progress of Total Loss Committee The Collision Industry Electronic Commerce Association (CIECA) says that the Total Loss Committee has now completed approximately 70–75% of its estimate messaging and is currently working to complete the options and features portion. The latest release added over 300 vehicle option codes. The goal of the committee is to improve communication between repairers, insurers, and salvage providers. Earlier efforts led to the ability to attach a Vehicle Inspection Report (VIR) to the Estimate Message, but failed to provide for a total loss valuation prior to the disbanding of the Total Loss Committee. CIECA staff resumed the work of the committee two years ago. The biggest hurdle in the process was finding a neutral territory for the messaging. CIECA worked with the information providers CCC, Mitchell, and Audatex, and—when working through the code lists, vehicle parts and options, the detailed valuation amounts and methods—finding that the information providers all defined things differently, particularly with condition ratings on vehicle parts. All had their own systems for condition ratings. After taking time to understand their process, the data needs were deemed quite similar. The committee worked to form a neutral territory so
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that each provider would have the freedom to infer condition descriptions their own way but using the same language and codes developed in concert, in the committee webinars. This is where the previous attempt failed. Another major time solver provided by the committee was the elimination of a laborious handwritten step in the vehicle assessment. Prior to the CIECA committee, when a vehicle reached the “fix it or scrap it” stage, in order to transmit the information about that vehicle, one had to manually hand write an evaluation form (the Vehicle Inspection Report or VIR) and submit that to the insurance company for evaluation, who then had to look into the salvage value of the vehicle, the replacement value and the repair estimate to determine the vehicle’s fate. The process is now streamlined from the time the vehicle first enters the insurance company system when a policy is written on down to that moment of “fix it or scrap it.” If a vehicle looks to be a total loss, the estimator can document the vehicle condition, vehicle options, estimate the salvage value, determine actual cash value, complete the VIR, and submit it with the repair estimate for valuation electronically.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 11
On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Use Estimator Tactics to Close the Sale with Thomas Franklin
Recently I was in a shop where business was kind of slow. And yet a couple of estimators were sitting back “shooting the bull.” Although some shops employ a marketing person, the fact is the estimators are still the real sales personnel in a body shop. In the past, all most estimators had to do was write an estimate when a car comes in and then sell the customer on leaving the keys and the car to be repaired. In these difficult times, few shops can afford that kind of limited job description for their primary selling people. From what I’ve been able to see, a major failing in ineffective estimator salespeople is inertia and reluctance to reach out for new business. More progressive shops are moving away from the old model where the estimator simply sat around and waited for a vehicle to come in to estimate. Estimators are selected for their ability to communicate to a specific marketing target. One shop always has one estimator who can speak Spanish and another who can speak an Asian dialect that’s common in the area. Also one estimator is dedicated to write estimates at a local dealership, and each estimator is assigned to specialize in one of the shop’s DRP relationships. But is this enough to bring in new business? Sadly, many estimators are not really salespeople. In a retail store they would be called “order takers.” One shop owner, who had been in business for more than twenty years, finally got a drive-in arrangement with a top insurance company. He was so happy about it, he wrote the estimates for the drive-in himself for the first couple of months. He convinced 80% of drive-in prospects to leave the keys and get their car repaired. But when the task was turned over to several different estimators, most didn’t even manage to convert 50%. What
made the difference? Obviously the owner had real selling skills. The others didn’t. Some of the consolidator shops and dealership shops I’ve visited seem to have estimators with better selling skills. I’ve asked a few what they do that closes the sale for them. Here is a brief list of some of what I was told: ● Maintaining a professional appearance, often with shirt-and-tie for men, and comparable professional attire for women. ● Sincerely complimenting a prospective customer early on, to try to establish an early emotional bond. ● Building rapport by drawing on comparable stories of accidents that happened to friends and family members. These salespeople took the time to contact many friends and family members so they would have a ready arsenal of stories to tell. ● Building rapport by stimulating a more personal level of communication. A common strategy is have photos of the estimator’s children on the desk (even if the photos are many years old, showing the children as tiny tots). ● Keeping novelty items and items of interest on the estimating desk to stimulate personal conversation or having a special toy available to occupy a child who accompanies a prospective customer. ● Posting I-CAR and other certificates of achievement near the desk to show competence and professionalism. ● Keeping an album at hand with a selection of worse wrecks than the one at hand, that were successfully restored to perfect pre-accident condition. ● Having ready explanations of technical problems in language most people can understand without becoming confused or feeling put down. ● Taking on the problems of the prospective customer, in dealing with the insurance company, providing a ride, getting a rental car if needed and helping to arrange a convenient sched-
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ule for the customer. ● Involving the prospective customer in the writing of the estimate, explaining each line, showing illustrations on the computer (if available) and generally demystifying the estimating process. ● Being well informed of what giveaways will be acceptable in a tight negotiating situation. The usual elements are car-wash, free detail, color sand and buff, or repair of minor unrelated damage. There was one more tactic that interested me: Showing prospective customers comparable cars in the shop in the process of being repaired or beautifully completed to reassure them that the shop is capable of restoring their car to perfect, pre-accident condition. It reminded me of an article about Marie Callender who had just died. Yes, there really was a Marie Callender. She worked in a little deli in Long
Beach, California, right around the turn of the century. She started baking pies for the deli and, with her husband, soon opened a little coffee and pie shop to sell some of her pies directly. Her pie shop was very successful because she did something no one else ever did: She put her ovens right in the front window of the pie shop so people could see her baking those pies. Today this is common practice, from pizza to sushi, but Marie was one of the first to see it had great potential marketing power! This is just one of the many strategies and tactics effect estimatorsales people have used. But given the emotional upset most people experience after an accident, perhaps this one provides very visible and tangible evidence that this is the best place to have their vehicle repaired. Even an estimator with few selling skills can use a tactic like this to advantage.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 13
Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
CIC Committee and I-CAR Respond to Association Statement on ‘Industry Standards’ In response to ongoing efforts over six years by the Collision Industry Conference (CIC) to develop a set of formalized repair standards, four national repairer groups have jointly issued a statement calling the published automaker repair procedures the “official industry-recognized repair standards for collision repair.” At CIC in Las Vegas in early November, the Alliance of Automotive Service Providers (AASP), the Assured Performance Network, the Automotive Service Association (ASA), and the Society of Collision Repair Specialists (SCRS), jointly read a statement that said where OEM procedures exist, they should “be the basis for the establishment of training, testing, repair practices and documentations.” The groups said they recognize OEM repair procedures are “incomplete in comparison to the full scope of vehicles and repair operations that exist in the marketplace,” but they should serve as a baseline from which further development of procedures occur. Although a CIC Repair Standards Advisory Committee has explored the idea of a new industry organization being formed to finalize and implement industry standards, the four groups issuing the statement instead called on I-CAR to create an industry council “to identify gaps in existing OEM procedures” and to develop processes to close those gaps, vetting any industry-proposed alternatives, modifications or additions to OEM procedures. Following the announcement, ICAR CEO John Van Alstyne said that he sees some potential merit in the proposal. “We see that ICAR is positioned uniquely to engage in that dialogue with the OEMs on John Van Alstyne behalf of the industry,” he said. “But that said, we have a lot of stakeholders associated with I-CAR. We have a mission and vision, and need to see if this is a fit. So I’m taking on the challenge of tak-
ing this request back to our board. That process will start this afternoon actually. So we will be getting back to you with our response.” Although the statement by the four organizations made no specific reference to the standards work being done at CIC, AASP and SCRS last summer at CIC raised concerns that “other industry segments and participants who don’t necessarily support (OEM repair recommendations) as the standard are involved in this activity and committee.” But at CIC in November, Russell Thrall of CollisionWeek, who cochairs the CIC-formed Repair Standards Advisory Committee, said he views the associations’ new statement as a positive sign of their engagement in the process. He said it fits with what the committee has seen as its charter, namely to “develop and publish nationally recognized collision repair standards which follow the manufacturers’ recommended procedures for safety and reliability.” He also provided an update on the committee’s work, saying it will now be the first quarter of next year before a consultant’s report is released on what consensus exists within the industry about standards and a possible new organization to oversee the development and implementation of them. “That position statement (announced today) certainly is going to inform a lot of what appears in the research work,” Thrall said. The consultant has conducted more than 40 interviews with repairers, insurers and industry vendors, Thrall said, and held a conference call to gather input from 18 state and local repairer trade groups. About 43 percent of those individually interviewed were repairers (another 17 percent were shop network or association representatives), including both singleand multi-shop businesses; Thrall said he wasn’t sure how many shop locations in all those companies represented, but he said their combined annual sales exceed $1 billion. The consultant’s report will consist largely of the opinions expressed in those interviews, Thrall said.
14 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
“There is some consensus in broad areas, and there’s a lot of areas where there isn’t consensus,” he said, as a preview of the findings. Thrall said funding for the $60,000 research project is being raised through industry donations, which as of early November totaled about $46,750 from 35 sponsors. (An additional $7,500 was raised at that CIC meeting following Thrall’s presentation.) The names of the sponsors are included in the committee’s report on the CIC website (www.CIClink.com). Thrall said the bulk of the donations have come from repairers and suppliers, though there has been “some significant insurance company and OEM representation.”
‘Data leaks’ explainable so far Also at CIC in Las Vegas, the Data Privacy Committee reported that it has yet to find a valid example of a consumer’s accident or estimate data “leaking” from a shop’s estimating system, for example, to a vehicle history service such as CARFAX. The committee announced a survey last July seeking examples of such occurrences, but Tony Passwater, chairman of the committee, reported in Las Vegas that not a single response to the survey had been received. Passwater did, however, receive several reports of apparent data privacy issues, which he then investigated. In one, for example, a shop owner’s son was in an accident but did not submit an insurance claim. The shop wrote an estimate and fixed the vehicle, and about a month later when the vehicle was traded in, the accident appeared on the CARFAX vehicle report. The family presumed the information could only have gotten to CARFAX through the estimating system. “But the information on the CARFAX report came from the police report, which is public information,” Passwater said. He said he’s heard at least five variations of that type of story, but none have seemed to indicate a real data privacy concern.
“If there really is an instance where this actually takes place, we’d love to know about it and be able to document it,” he said. “I’m encouraged to hear that the gossip and stories that after all we’ve heard about various organizations getting information about an accident that was leaking out of shop’s computers and from frame machines software or estimating software, that there’s nothing to this point showing proof of that,” CIC Chairman Mike Quinn said, following Passwater’s presentation.
Words matter The CIC Definitions Committee generated some discussion at the Las Vegas meeting with its proposed definitions for multiple words used in the industry to describe used parts. The committee, for example, has proposed calling a “recyclable” part (or a “used” or “salvage” part) one that has been removed from a donor vehicle, while a “recycled” part is one that has been removed from a donor vehicle and reused on another vehicle. The committee has proposed defining “like kind and quality (LKQ)” as “a generic term used to describe any part that may be used to replace another part (typically assumed to be a used part).” Ron Guilliams, who chairs the committee, was asked why there was a need for definitions for multiple terms for the same thing, and why the committee was including the “LKQ” term, which could be confused with parts distributor LKQ Corporation. Guilliams said all of the terms are used within the industry, and therefore the committee felt its charge is to define them. “The committee doesn’t have the authority or reach to be able to change what people are describing things as out in the industry,” Guilliams said. “As long as these terms are being used by different databases and by insurers, we felt that we needed to define them.” But Dusty Womble of Roger Beasley Collision Center in Austin,
Texas, said he’s concerned that the term “recycled” could be misleading to a consumer. The public, Womble said, generally thinks of recycling as breaking something down into its core substance to be used in a remanufacturing process. Paper Dusty Womble isn’t recycled by just erasing the print on it, he said; it’s turned into pulp and reformed into paper. Plastic bumpers are “recycled,” he said, only when they are cut into tiny chips to be melted down and reformed into another product. “Most used parts aren’t really being recycled,” he said. “You’re not tearing it down and remanufacturing a product. You’re cleaning it up and reselling it.” Guilliams said the committee would take that into consideration, but also is developing definitions for “rebuilt,” “reconditioned,” and “remanufactured” that may help clarify the issue. CIC’s next meeting will be held January 12-13 in Palm Springs, Calif.
ASRW 2011: Attendance Up 18%, Positive Exhibitor Feedback Reported Automotive Service & Repair Week (ASRW, held by ASA) 2011 was held October 5 through 8 in Orlando, Fla., and ASA deems this year’s event the most successful in recent years. There was an 18% increase in overall attendance and reportedly good initial sales for the 2012 event. ASRW 2012 is scheduled for Oct. 11–13 at the Morial Convention Center in New Orleans, LA. (Educational sessions will begin Oct. 10, 2012.) Ron Pyle, ASA president, commented on the event’s outcome saying, “Since we’ve returned from the show, we’ve been inundated with an outpouring of positive feedback, success stories and personal testimonies of the impact of this year’s event. It’s evident a tremendous amount of business was transacted in Orlando last week, and we could not be happier with the upswing of ASRW 2011.” Total attendance for the 2011 event was 19,221, of which a third of the participants were from the east coast and another third were new attendees.
“By far the best NACE in our 11 year history. We expected we would have a good number of new shops stop at the booth and that was for sure what happened. We gathered twice as many leads as last year, and we closed 3 times as many sales on the floor as last year. Overall a fantastic NACE, and we can't wait for New Orleans,” said Dave Henderson, AutoWatch. “Congratulations to NACE. Great turnout. Manufacturers are jumping at the bit about New Orleans. Been a fabulous surprise,” commented Bruce Mather, Dir. of Marketing HMS Warehouse (ChemSpec). Additionally, advance exhibit space sales for ASRW 2012 began onsite and to date 20% of the show floor is already sold. Many verbal commitments have also been received and are expected to become firm commitments by the early-bird deadline of Nov. 15, 2011. For a complete listing of 2012 ASRW exhibitors, visit www.NACEexpo.com or www.CARSevent.com. “Whatever you did—it’s working. We’re local and we had a lot of people coming up to us thanking us
for the invite to the show this year. It’s been really good,” said Ron Andress, R.M. Andress/Evercoat. “What a great expo! We talked to a whole new group of collision repair owners at this expo and we look forward to next year in New Orleans to see a different group of collision repair professionals,” stated Scott Saal, Auto Data Vin Labels. “NACE allowed us the opportunity to showcase our services in a well-organized and exciting environment. Everyone was upbeat and enjoyed very engaging conversations. The networking opportunities for any exhibitor are great. We were glad to have this opportunity and are already getting excited for New Orleans next year!” said Matt Broyles, Operations Director, CARS. “Autoshop Solutions experienced yet another spectacular year at CARS and NACE this year—a remarkable event. One that I hope you benefited from. If you missed attending this year, I hope to see you next year in New Orleans!” said Danny Sanchez ofAutoshop Solutions.
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Chief Donates Frame Rack to Operation Comfort Automotivation Program for Wounded Warriors Chief Automotive Technologies has donated a new frame rack valued at $50,000 to the Operation Comfort Automotivation program for wounded U.S. military service members. Chief distributor English Collision Equipment, Inc. installed the rack at no charge. “We are honored to have the opportunity to help these wounded warriors recover from the injuries they sustained while defending and protecting our country,” explains Mike Cranfill, vice president of collision for Chief’s parent company, Vehicle Service Group (VSG). “It is our hope that this equipment will aid in their rehabilitation and perhaps even ignite an interest in joining the collision repair industry once they are discharged.” Operation Comfort is a nonprofit, philanthropic organization focused on helping service members from all branches of the U.S. military who were wounded in Afghanistan and Iraq and are rehabilitating at Brooke Army Medical Center (BAMC) in San Antonio, Texas. Depending on the severity of their injuries, these men and women will stay at BAMC from one to four years or longer. Operation Comfort provides financial assistance to service members and their families, helps refurbish and equip waiting rooms at the medical center, and offers a number of rehabilitative and therapeutic programs in non-clinical environments. These programs include hand cycling, sled ice hockey, amputee surfing, softball, river rafting and Automotivation. “Operation Comfort is structured to improve the soldiers’ spirits, so their rehab is faster and more effective,” explains Janis Roznowski, Operation Comfort executive director and founder. “Their lives now are a cycle of medical appointments, surgeries, therapy, rehab, more appointments, more treatments, more surgeries, more rehab… That’s why it’s so important to give them relief. I believe that if they’re working on something they really love, they forget all the trauma going on in their lives. When they’re working on a car, they’re focusing on that car and enjoying the process. By fixing a car, somehow or other, they fix something inside of themselves.” Automotivation was developed at the request of service members
who were reluctant to participate in conventional rehabilitative activities
participants on how to properly use the equipment. “We’re so appreciative that Chief understands the value of what we do and that they jumped in to help,” Roznowski says. “This was an incredibly generous donation. With the Chief rack, we’ll be able to teach the guys new skills that they may also be able to use when they return to civilian life.” The soldiers have a long wish list of Chief Automotive Technologies donated a frame rack to the Operation additional tools and Comfort Automotivation program for wounded U.S. military service equipment the promembers. Pictured on the recently installed rack are (from left to right): Sgt. 1st Class Vic Hash; Sgt. Chris Leverkuhn; Mike Cranfill, gram could use. Opvice president of collision for Chief’s parent company, Vehicle Service eration Comfort does Group (VSG); Spc. Michael Baird-Kelly; Petty Officer Andrew Johnson; not have funding to Janis Roznowski, Operation Comfort executive director and founder; buy equipment, so it Robert Rodriguez, president of Lay’N Color (which shares space and relies on industry doresources with the Operation Comfort Automotivation program); Jeff English, manager of English Collision; and Sgt. Robert Dickey nations of tools, equipment and conor sports, but were interested in re- tacts for mentoring and training. building and restoring cars, trucks and motorcycles. Participation is voluntary. The program is housed in donated space in a professional garage on Lonesome Dove Ranch south of San Antonio. It includes four service bays, a paint booth and break room. Many soldiers who are injured and then sent to BAMC to heal feel cut off from their units, explains Vic Hash, Army sergeant first class and a member of the Warrior Transition Unit at Fort Sam Houston. “They tend to want to cocoon. This gives them something to do to take their minds off their injuries.” Automotivation participants are building a 1966 Shelby Cobra replica kit car and are finishing a World War II weapons carrier body that they restored and installed on a 1984 Ford Bronco chassis. The group displayed both vehicles at the SEMA Show at the Las Vegas Convention Center from November 1 through 4. The Fuzion pulling system that Chief donated was installed in what had been a flat bay. The heavy-duty rack is equipped with two pulling towers and universal anchoring stands. It offers 12,000 lbs. of lifting capacity for maximum versatility. Chief is also arranging training for Automotivation
16 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Current needs include: ● Chief accessory package and tool board ● Frame measuring system ● Brake lathe ● Small lathe ● Alignment rack and equipment ● Complete socket sets ● Soda blaster ● Portable diesel-powered air compressor (125 cfm) ● Bead roller ● Spot welder ● Metal brake ● Sheet metal shear ● English wheel ● Shrinker/stretcher ● Creepers ● Wheel dollies ● Hydraulic floor jacks ● Air tool kit For more information about Operation Comfort, visit www.operationcomfort.org or call (210) 826-0500. To learn more about Chief collision repair equipment, contact your local Chief distributor, call 877-644-1044, or visit www.chiefautomotive.com.
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 17
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
I-CAR Tech
How to Work With Active Grille Shutters on a 2012 Ford Focus When making collision repairs to the 2012 Ford Focus, be aware that the vehicle may be equipped with an active grille shutter system (see Figure 1). This motorized system is located in front of the radiator, which places it in a vulnerable position during frontend collisions. The active grille shutter system consists of a shutter assembly and an actuator motor. The assembly includes the housing, shutters, retainer, and a wiring harness. Active grille shutters are serviced as an assembly, the shutters are not serviceable individually. The actuator can be serviced individually.
Figure 1 - This 2012 Ford Focus is equipped with the active grille shutter system
Operation This controlled vent system is primarily designed to maximize fuel economy by reducing drag on the vehicle. The grille shutters automatically close to block airflow through the cooling system when not needed. Closing the active grille shutters helps to improve aerodynamics at high speeds. The shutters open to reduce underhood temperatures when needed. The grille shutter system is also used to control coolant temperatures, HVAC performance, and exhaust emissions depending on the vehicle speed. The shutters are linked together, with one of the individual shutters attached to the actuator by the retainer. When the grille shutter actuator moves, it moves the attached shutter, which in turn, causes the other linked shutters to move. The shutters are regulated by the powertrain control module (PCM), and can be set into 16 different positions, from fully closed (see Figure 2), to fully open (see Figure 3), depending on the amount of cooling air required. The grille shutter actuator receives the position commands from the PCM. The PCM determines the re-
quired positions based on inputs such as vehicle speed, coolant temperature, ambient air temperature, and air conditioning system pressure. During normal operation, the grille shutters are fully open when the engine is off. When starting the engine from cold, the grille shutters will remain closed as long as possible to help reach the most efficient operating temperatures more quickly. This also helps reduce fuel consumption and emissions.
Damage Analysis The grille shutter assembly is located at the front of the vehicle behind the boron-alloyed steel bumper reinforcement (see Figure 1 again). The bumper reinforcement has crushboxes that attach to the front lower rails. If the crushboxes collapse during a collision, the bumper reinforcement could be forced into the grille shutter assembly. When analyzing damage, look for obstructions in the shutters that would prevent proper operation of the system. Since all of the shutters are linked together, all it would take is one obstruction to cause a bind. This could be a broken piece of a part or a foreign object. The grille shutter system has a dedicated fuse, and an obstruction may cause the fuse to blow. Also, check that the grille assembly is properly aligned in the opening.
Automatic Calibration When the engine is started, an automatic calibration of the grille shutter system takes place. This calibration process cannot be initiated manually. Calibration typically takes about 15– 20 seconds. The process occurs until calibration is successful, or a fault is detected. Any failure of the system for over 10 seconds continuously will result in the actuator positioning the shutters fully open. There is no indication to the driver when a grille shutter system fault is present, however, a diagnostic trouble code is set in the PCM. Conclusion The 2012 Ford Focus may be equipped with the active grille shutter system. Located in the front of the vehicle, the
18 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
system is in a vulnerable position during frontal collisions. Except for the actuator, no parts of the system can be serviced individually. When repairs are required, the ac-
Lincoln Vehicles (FOR05). This course will provide you with an understanding of several of Ford’s vehicle-specific parts and procedures and help you gain an understanding of
Figure 2 - This is how the active grille shutter system looks fully closed
Figure 3 - This is how the active grille shutter system looks fully open
tive grille shutters, housing, retainer, and wiring harness must be replaced as an assembly. The Ford Focus and the active grille shutter system is one of many 2011-2012 vehicles and systems featured in I-CAR’s instructor-led (live) course, Collision Repair for Ford and
how maintaining Ford quality repairs can be key to customer satisfaction and achieving a complete and safe repair. Visit the I-CAR website to find a class near you. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.
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Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca
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Supplier Price-fixing Litigation Plays Out in Detroit Autobody News
Detroit is likely to remain center stage in a legal drama now playing out around the country over price-fixing collusion among automotive wire harness suppliers, long after two former executives of Furukawa Electric Co. pleaded guilty in federal court on October 24, according to reports made by Automotive News. Hirotsugu Nagata, former CFO of Furukawa’s U.S. subsidiary, American Furukawa Inc., from 2004 to 2009; and Junichi Funo, assistant general manager of Honda sales at American Furukawa until 2009, appeared October 24 before U.S. District Judge George Steeh in Detroit and pleaded guilty to one count each of conspiracy to restrain trade in violation of the Sherman Antitrust Act. Nagata is expected to serve 15 months and Funo one year and one day in U.S. prisons in the U.S. Department of Justice case. The company itself and another former executive, Tetsuya Ukai of the parent company’s Honda sales division, have separate court dates in mid-November to enter their own pleas. Furukawa agreed in late September to plead guilty and pay a $200 million fine in the case. The $29 billion U.S. automotive wire harness industry has come under assault in five states, where 10 new lawsuits filed since Oct. 5 allege the suppliers engaged in false and deceptive trade practices, fraudulent concealment, violation of federal antitrust law and unjust enrichment. The 10 civil suits all name, in addition to Furukawa: • Yazaki Corp. of Iwata, Japan and/or U.S. subsidiary Yazaki North America Inc. of suburban Detroit, the industry market leader. • Sumitomo Electric Industries Ltd., No. 2 in size and the fastest growing, which has an administrative head-
TEXAS • OKLAHOMA • LOUISIANA • NEW MEXICO
quarters in Kentucky and offices in suburban Detroit. • Delphi Automotive LLP, the onetime General Motors parts unit based in suburban Detroit. • Lear Corp., the seating and electronics supplier based in suburban Detroit. • Leoni AG, a wiring and cable products supplier based in Nuremberg, Germany. • S-Y Systems Technologies GbmH, Regensberg, Germany, which Yazaki acquired in 2005. S-Y has an office in suburban Detroit. Some of the new lawsuits also go on to target Denso Corp., Tokai Rika Co. Ltd. and Fujikura America Inc., which are based in Japan but have U.S. offices as well. Denso and Tokai’s U.S.-based subsidiary Tokai Rika Group North America was raided by FBI agents last year along with Yazaki North America as part of the global pricefixing probe. “The price of cars is already high anyway, and we’re fighting every day for business share without the added burden of what the (suppliers) have done to competition,” said Steve Landers, president of Little Rock, AR-based Landers Auto Group No. 1 Inc. and owner of Landers Toyota and Steve Landers Chrysler Dodge Jeep Ram, who brought one of three dealership lawsuits. “In a way, it’s really a double-punch to the dealer, though it also gets passed along to the consumer. Hopefully, doing this (the lawsuit) can get them to adjust the prices on future harnesses, to offset the overcharging.” The lawsuits—three on behalf of dealerships and seven on behalf of consumers who bought Honda, Toyota and other cars during 20002010—all followed days after the Furukawa plea agreement became public and seek to certify a class action on behalf of harness buyers in
22 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Michigan, California, Minnesota, Arkansas and Mississippi. Detroit area attorneys expect the suits will coalesce soon into one by order of the U.S. Judicial Panel on Multi-district Litigation—possibly before Steeh, or another judge in Detroit. “It does seem like Detroit would be the center of gravity for those cases, because Michigan is home to a lot of the firms and (witnesses),” said Patrick Cafferty, founding partner of Cafferty Faucher LLP in Ann Arbor, MI, which is handling two of the five buyer lawsuits in Michigan. “But then the MDL (multidistrict litigation panel) is not always predictable with those decisions.” The global automotive wiring harness market grew 32.2 percent to $29 billion last year from $21.9 billion in 2009, and could grow to $32 billion by 2012, according to the Global and China Automotive Wiring Harness Industry Report, 2010-2011, released by Dublin, Ireland-based tech analyst firm Research and Markets earlier this year. Yazaki accounts for nearly 30 percent of the global wire harness market. Sumitomo was fastest-growing with 24 percent, while Delphi was third with about 16.7 percent global market share. Local suppliers contacted by Automotive News downplayed the lawsuits. Lindsey Williams, director of corporate relations at Delphi, said the allegations against the company are without merit and Delphi will seek to be dismissed from the suits. Lear said in a statement that it also believes the claims to be without merit, and Misty Matthews, manager of communications for Yazaki North America, said its legal team is reviewing them. Robert Calo, shareholder and co-chair of the white-collar criminal
December 2011 defense practice at Portland, Ore.based Lane Powell PC and attorney for Furukawa in the criminal case in Detroit, did not return two phone calls seeking comment. Attorneys Thomas Gallagher and Matthew Lund of Pennsylvaniabased Pepper Hamilton LLP represent Ukai in the Furukawa criminal case. It was unclear who represents the other executives. David Ettinger, partner and chairman of the antitrust and trade regulation practice group at Detroitbased Honigman Miller Schwartz and Cohn LLP, said it’s possible that two classifications of lawsuits against the suppliers could emerge: one for “direct purchasers” or OEMs that allege they overpaid for components, and another for “indirect purchasers” like dealers and consumers who may have paid a markup. John Barrett, president of the Barrett Law Group PA in Lexington, MS, who brought another proposed class action on behalf of Hammett Motor Co. Inc. in Durant, MS, said dealerships would likely have two sets of legal claims against the suppliers, since they purchase both vehicle inventory from OEMs and replacement wire harnesses for warranty and other repair work in their service divisions. But John Youngblood, chairman of the automotive dealer practice at Abbott, Nicholson, Quilter, Esshaki & Youngblood PC in Detroit, said he is not sure dealers have the best claims since their markups are passed along to consumers. The most likely plaintiffs, he said, would either be large dealerships who stock inventories of replacement harnesses or move a sizable volume of marked-up vehicles each year, or smaller dealers who can be swayed by eager plaintiff law firms into joining class actions.
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. 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.
Are We Crossing Into the ‘Outer Limits’ of Automotive Repair? with Gonzo Weaver
Don’t try adjusting the throttle cable—there isn’t one. I can tell when it’s dark enough for the headlights. Your Air Conditioner is under my complete control, along with steering, windows, stereo volume and braking. Don’t be alarmed, I’m here to help assist in operating your vehicle. Who am I? Why, I’m your friend, I’m your PCM. Some people may call me a “Human Assistant Logistic” device— call me Hal for short. I like that name. I live in your main frame computer. Don’t try to over-ride me. I’ll reduce the power level. Program me without the properly dated software and I may never speak to you again. Push an amperage load in the wrong direction, and I’ll make smoke appear where you don’t want to see smoke. I’m tough as nails, but at the same time, as delicate as a flower. So be careful with me. Now, does that sum up today’s PCM’s? I think it does.
With all the information being passed back and forth we’re no longer fixing cars, but doing advanced electronics caretaking. Hal has a lot of control these days. He’s everywhere in the car, from the glove box to the transmission. We haven’t lost control of the cars we drive, but there’s no doubt Hal has taken over. We are approaching that Space Odyssey of self awareness in computer systems. We’ve accomplished a lot with the advanced electronics on today’s vehicles. The ability to control the exhaust emissions to a point where there is very little in the way of harmful gasses leaving the tail pipe (compared to the 60’s and 70’s) is a scientific and engineering accomplishment that should be applauded. But, doesn’t it sound a little sci-fi to have this electronic nightmare at-
tached to a combustion engine, pounding out a level of torque and performance that has never been seen before in the realm of automotive history? I think of it this way, these days you don’t turn ON the A/C, you merely ask the PCM for permission to turn it on. Seems strange to ask permission to turn on the A/C, but it’s pretty much what you do these days. If all the parameters are correct then the A/C will turn on. If something is out of place, well then, Hal will not allow it to come on until you have corrected the problem. Same thing with the electronic throttle, if the PCM thinks there is any reason for you NOT to be in charge, it will take over and reduce the power level and send you home at a speed of 30 mph or less. What happened to the days when bailing wire, an old piece of hose and a hair pin could get ya back on the road? Gone for sure; I guess we are
moving into that unknown future we’ve heard about. It makes me think of the old science fiction movies of days past. What’s next, Mr. Spock’s “Tri-Corder”? I wouldn’t laugh too hard. I’m waiting for a phone app that will allow you to diagnose the car without leaving your driveway. Oh, it’s out there, and it’s coming our way. Keeping all this in mind, it’s a good time to think about how auto repair is going to be for the future generations. I don’t want to think of myself as an old school fuddy-duddy, so I’ve got to think about adopting some of the new methods of communication as part of my ongoing advertising and community awareness. You just can’t miss the opportunities available on the internet these days. It’s all part of the fast paced communication and information society we are a part of. See Outer Limits, Page 26
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 23
Paint Management
Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”
How Lucky Do You Feel?—Durability of Back-Taped Edges with Stefan Gesterkamp
One of my customers asked me to provide feedback on an issue that I feel most collision repairers and insurance professionals would be interested in. There was a three way discussion between two shops and an insurer concerning back taping along body lines on a vehicle’s roof. The question I received was concerning durability of the back-taped edge and/or should the shop clear up and over to the other side? Everybody reading this likely agrees that the technique of back taping a roof is common place and practiced industry wide. Most will likely not think twice about doing it. To set the stage, I also assume that most people in the industry today have accepted that open solvent blends along the sail panel are not an acceptable repair and should not be performed. And those roofs without a well contoured edge to tape along should be cleared up and over.
So what about the rest? My answer to this comes in the form of another question. How lucky do you feel? The reason for my question is that this technique is a calculated risk assessment. If the surface is cleaned and prepped expertly and no shortcuts are taken, back taping will result in a long lasting repair. The questions that are impossible to answer are how long a long time is and will this edge hold up longer then the vehicle is owned by your client or remains in active service? Given just enough time, the edge ultimately will deteriorate and break down. High, long-term exposure to ultra violet rays, wear and tear, chemical exposure, as well as too much, or too little maintenance, all contribute to the unknown time before it will happen. Doing this type of repair is a judgment call that needs to be openly discussed
between collision repairer and insurance provider. I don’t have the latest numbers on how long the average American driver holds on to their vehicle before it is traded in for a replacement in the present economy, but I believe the odds are very much in the repairers and insurance favor. Although the odds may be favorable, the question that comes to my mind is concerning warranty. From a fiscal standpoint this type of repair approach makes perfect sense, but from a manufacturer’s prospective, this repair doesn’t qualify for lifetime warranty coverage, as it is still technically considered an open blend. I don’t claim to have a good answer to this debate. From a purely quality driven point of view, I have to side with the up and over crowd. From a practical, fiscal point of view, the tapers also make a strong case for themselves.
Are you taking a risk when you back tape along a roof line? Yes, but compared to elective risks some collision repair shops willingly take, like mixing and matching different brand’s paint products into a single paint repair for example, taping the edge will let me sleep well tonight. It all comes down to how you feel about this issue and let your best judgment guide you.
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Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Blue Hen Collision Express in Dover, Delaware, Makes Location Count with Chasidy Rae Sisk
Blue Hen Collision Express in Dover, Delaware, prides itself on customer service and reputation. They are the longest established independent body shop in central Delaware with revenue
Carl and Chuck Cimino commute from Pennsylvania and New Jersey to work in Delaware every day
exceeding $2,000,000 annually. Blue Hen’s mission statement is we solve customers’ problems and that is reflected in their focus on customer satisfaction which owners Carl and Chuck Cimino say they have greatly
improved since they purchased the business in 1997. The shop works on between ninety and one hundred cars each month, a significant number for the sparsely populated area in which they are located. Cimino’s Collision Express was opened in 1983, and Chuck and Carl purchased Blue Hen Collision Express in November, 1997. Both had been involved in the industry for years prior to the purchase. Their uncles owned an auto body shop where Chuck worked during the summers as a teenager. Armed only with an interest and aptitude for the business, Chuck rented two bays at a dealership owned by a friend of his aunt and opened his own shop when he was seventeen years old. Carl owned a shop in the Philadelphia area, and after he became involved with the CARSTAR franchise in 1989, he met the then-owner
of Blue Hen Collision. The Cimino brothers purchased Blue Hen Collision when the owner decided to sell in 1997 because the shop already had a great reputation for producing quality repairs and the lo-
Carl and Chuck note that customers in their market are very particular about their vehicles, but they are also very appreciative of quality repairs; therefore quality is essential to getting repeat business. Carl lives in Pennsylvania, and Chuck lives in New Jersey, but they each make the long drive to Dover, DE, every day. They appreciate that their shop is in a great location without many competitors, but also because they love being in an area where the consumer knows and appreciates the differCars line the bays and lifts at Blue Hen Collision Express ence between a poor and in Dover, DE quality repair. The Ciminos also own an auto cation was not saturated with competing shops, which they experienced in body shop in Feasterville, PA. They previously owned as many as four the Philadelphia suburbs. Since acquiring the shop fourteen years ago, shops, but they have sold two of them their revenue has increased by 250%. See Blue Hen Collision, Page 34
www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 25
Continued from Page One
DOI Meeting
an opportunity to present statements or comments with respect to the attached draft regulations text.” The draft regulations largely pertain to the specification and use of aftermarket parts, but also include new requirements for adjusting estimates as well as consumer disclosures and remedies in the event that a defective part is used for a repair. See sidebar. Gene Crozat, the owner of G&C Auto Body with seven Northern California locations, attended the meeting and and offered his perspective. After reviewing the proposed changes, Crozat recognizes that the Commissioner is addressing a volatile subject and questions some of the language within the contemplated revisions. “I fix 1,000 cars every month and at least 70% of them contain aftermarket parts, prescribed by the insurance companies,” Crozat said. “In many cases, the aftermarket parts are equal in quality when compared to factory parts and price is always a huge issue. By using aftermarket parts Continued from Page 23
Outer Limits
A good example of this is my latest intern at the shop. I was showing him how the IDS (Ford diagnostics and scanning machine) runs on a laptop based program. He already had the whole thing figured out; before I even got into the diagnostics part of it he was showing me short cuts with key strokes and things I never knew about. But, this is the generation that has grown up with computers. This is their world of PC’s and video games. Me, I’m lucky I can get through a round of Ms. PacMan without screwing it up. My point: cars and transportation are taking on a whole new era of sophistication. The likes of which, we as the older generation of techs read about years ago but never thought would come to pass. Well it’s here now, and even though a timing belt still doesn’t come off of its tensioner without a human hand doing the job, it might take a PC to recalibrate certain issues after it’s installed.
many cars that would have been totaled can be fixed. For example, a bumper on a 1998 Toyota Corolla from the factory costs $239, but I can get a comparable set for $74 from the aftermarket. We need the aftermarket to provide competition for the OEMs. Can you imagine what factory parts could cost if there was no aftermarket?” Crozat questions the word “defective” in the proposed revisions, he said. “They need to be more specific there, because it’s too loose and open to interpretation. Who is going to determine that these aftermarket parts are defective and what does defective mean? There is just too much wriggle room here and that needs to be addressed.” Overall, Crozat lauds the Insurance Commissioner’s efforts toward clarifying the factory vs. the aftermarket dilemma, he said. “The 500lb. gorilla in this industry is the labor rates issue, but this is a good start and we’ve needed a meeting like this for quite some time. Opening up dialog and sharing ideas is always important and the DOI is doing it the right way.” I’m waiting for the time when you drive past a billboard on a lonely night’s drive and the billboard recognizes you, and tells you in big bold letters: “You are due for an oil change. Make an appointment with: (insert name of a shop here).” Why not? It could happen. In a way it is like we have reached the outer limits. Except there really isn’t any limit to what the human mind can dream up. We’ve only started to explore what we can do with a vehicle’s electrical and mechanical systems. Who knows what will be next. Right now, the near future is definitely the smaller displacement engines, which are more than likely going to be turbo charged. With a touch of the hybrid still in the mix, perhaps even the full electric vehicle hanging in there. It wouldn’t even surprise me if the cars ran strictly on a GPS system, and the driver didn’t do a thing but sit there. So can Hal take over the automotive industry? It’s possible. Since money is always involved in the future of the automotive world, there is no doubt that if there is a way to control a vehicle after the sale, I’m sure they’ll find a way to accomplish it.
26 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
Son Sean Crozat, manager of G&C’s Santa Rosa location, said that it all comes down to the consumer. “The market will take care of itself. If the majority of the aftermarket parts out there were truly defective or inferior, body shops wouldn’t use them. If all these damaged cars were totaled by the insurance companies, rates would go up and the customer would suffer the most.” Gigi Walker is the owner of Walker’s Auto Body and Fleet Repair in Concord, the Past President of the CAA and a current board member, as well as the former president of the East Bay CAA’s chapter. She was enthused about the meeting and the positive things that could result. Before the meeting she told Autobody News: “I hope these new regulations proposed by Commissioner Jones will better hold accountable the parts that don’t work to the insurers,” she said. “As you know, many shops don’t get reimbursed for parts that don’t fit properly. These proposed revisions just might help the collision repairer to recoup the costs associated with ill-fitting aftermarket parts. These might not cover a DRP contract
position with an insurer/collision agreement, but by Commissioner Jones opening up the conversation it’s definitely good for both sides of the industry. I’ve never seen this before, so it’s very promising. “The OEMs have procedures in place for the replacement/welding of certain components on vehicles and to make sure that these are mandatory in the written estimate and in the repair process are crucial in delivering a quality repair to the consumer. I hope some of the changes make the repair process for the collision repairer and consumers better, because that’s what it is all about. The first change adds more specific requirements for estimates written by insurers. Current law simply requires insurers to write an estimate that will allow the repairs to be made in ‘a workmanlike manner.’” The proposed regulations would require an estimate to be written “which will allow for repairs to be made in accordance with trade standards for good and workmanlike, mechanical, autobody and frame repairs and shall include, but not he limited to, repair procedures performed in acSee DOI Meeting, Page 31
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Hey Toby!
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Keenan Auto Body’s First Responder Training Brings Together PA & DE Communities with Toby Chess
I’ve long supported and done my best to contribute to first responder training. These brave and dedicated public servants have a lot to deal with and a lot to prepare for. Whether it’s a building fire, hazmat situation, medical emergency, or vehicle extrication, they can’t prepare without the training, tools, and equipment necessary to get the job done. I was happy to be able to contribute some skills to training conducted recently in Pennsylvania, which drew first responders from two states. With over 5.8 million car crashes per year it’s imperative that first responders are equipped with the knowl-
“This type of training is more important than ever given the rapid on-
slaught of advancements in vehicle design such as high-strength steels, advanced restraint systems, and multiple air bags. The growing popularity of high-voltage hybrid vehicles also makes a class like this a necessity.” State Farm Insurance Co, Esurance and 1800 Charity Cars donated eight late model vehicles for first responders to practice on. This is a real strength of the program since most fire departments don’t First responders in need of body work pose with extricated vehicle, have access to such one of eight donated by State Farm, Esurance, and 1800 Charity Cars modern vehicles. edge to extract vehicle occupants in “Local fire departments have indithe quickest most efficient manner, escated this kind of knowledge is much pecially in crashes when the difference needed and we are honored to be able between life and death is on the line. to deliver critical information to those Collision repairers have the vehicle exwho need it most,” added Camacho. pertise that first responders need and can contribute to the cause. Recently, however, it’s become evident that vehicle responders need more experience with modern vehicles, which have otherwise unfamiliar and even dangerous features to contend with. “First responders such as firemen I instructed the class as I’ve done require the most current vehicle inforin many previous hands-on demonmation to be effective and save lives at strations. We covered air bag deploythe scene of an accident,” said Craig ment and other dangers first Camacho, Keenan’s Marketing Diresponders encounter every day. rector. M.E.S., a distributor of Hurst res-
Give us your opinion on matters affecting the industry.
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28 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
cue tools, including the Jaws of Life line of tools, provided all of the equipment needed for the hands-on cutting. Enterprise Rent-A-Car sponsored the catered dinner for Clifton Heights and Hertz Local Edition sponsored the dinner for West Chester. Both dinners were excellent and well appreciated by the hungry first responders. Keenan Auto body, Inc. owns and operates nine state of the art collision repair centers throughout Philadelphia, Delaware, Montgomery counties, and New Castle County in Middletown, Delaware and is currently opening their two newest facilities in Avondale and Kennett Square in Chester County, PA.
For additional information visit: www.KeenanAutoBody.com and www.jawsoflife.com. This latter website provides an introduction to the Crash Recovery System, which is a software application through which important updated information with regard to safety systems in almost all current vehicle models can be accessed directly. Specially developed for rescue
workers, it provides an invaluable source of information for extracting people from crash accident vehicles.
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www.autobodynews.com | DECEMBER 2011 AUTOBODY NEWS 29
Proposed California Regulations Discussed at DOI Parts Meeting
STATE OF CALIFORNIA DEPARTMENT OF INSURANCE 45 Fremont Street, 21st Floor San Francisco, California 94105 October 20, 2011
REGULATION FILE: REG-201100024 Amend Article 1 of Subchapter 7.5 of Chapter 5 of the California Code of Regulations, as follows: Amend FCSPRs Section 2695.8(f): (f) If partial losses are settled on the basis of a written estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of the estimate upon which the settlement is based. The estimate prepared by or for the insurer shall be of an amount which will allow for repairs to be made in accordance with trade standards for good and workmanlike, mechanical, auto body, and frame repairs and shall include, but not be limited to, repair procedures performed in accordance with original equipment manufacturer service specifications or, if manufacturer specifications and procedures are not available, nationally distributed and periodically updated service specifications that are
generally accepted by the autobody repair industry. No insurer shall willfully depart from or disregard accepted trade standards for good and workmanlike repair in the preparation of claim settlement offers or estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision repair estimating software guidelines for use and repair. a workmanlike manner. If the claimant subsequently contends, based upon a written estimate which he or she obtains, that necessary repairs will exceed the written estimate prepared by or for the insurer, the insurer shall: (1) pay the difference between the written estimate and a higher estimate obtained by the claimant; or, (2) if requested by the claimant, promptly provide the claimant with the name of at least one repair shop that will make the repairs for the amount of the insurer’s written estimate. The insurer shall cause the damaged vehicle to be restored to its condition prior to the loss at no additional cost to the claimant other than as stated in the policy or as otherwise allowed by law. The insurer shall
maintain documentation of all such communications; or, (3) reasonably adjust any written estimates prepared by the repair shop of the claimant’s choice and provide a copy of the adjusted estimate to the claimant and the claimant’s repair shop. The adjusted estimate provided to the claimant and repair shop shall be either an edited copy of the claimant’s repair shop estimate or a supplemental estimate. The adjusted estimate shall identify each adjustment and the cost associated with each adjustment made to the claimant’s shop’s estimate. Amend FCSPRs section 2695.8(g) as follows: (g) No insurer shall require the use of non-original equipment manufacture replacement crash parts in the repair of an automobile unless: (1) the parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit, and performance; (2) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts shall pay the cost of any modifications, inspections, and tests to the parts which may be-
come necessary to effect the repair; and, (3) insurers specifying the use of nonoriginal equipment manufacture replacement crash parts warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts. The insurer must disclose in writing, in any estimate prepared by or for the insurer, the fact that it will warrant that such parts are of like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts ; and, (4) all original and non-original manufacture replacement crash parts, manufactured after the effective date of this subchapter, when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer. Such identification shall be accessible to the greatest extent possible after installation; and, (5) the use of non-original equipment manufacturer replacement crash parts is disclosed in accordance with section 9875 of the California Business and Professions Code.
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(6) insurers specifying the use of non-original equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall immediately cease requiring the use of these parts and shall notify the collision repair estimating software provider, or other estimating entity it contracts with, of the part and request this part be removed from the collision repair estimating software. (7) insurers specifying the use of non-original equipment manufacturer replacement crash parts, which are certified by the Certified Automotive Parts Association (CAPA) and are found to be defective or unsafe, shall file a Quality Complaint Report with the Certified Automotive Parts Association (CAPA); (8) insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with returning the part and the cost to remove and replace the non-original equipment manufacturer part with an original equipment manufacturer part. (9) insurers specifying the use of nonoriginal equipment manufacturer re-
placement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with loss of use or rental car expenses caused by the use of such part. Amend FCSPRs section 2695.8 “Note” as follows: NOTE: Authority cited: Sections 790.10, 12921 and 12926 of the California Insurance Code, Section 3333 of the California Civil Code and Sections 11342.2 and 11152 of the California Government Code. Reference: Sections 758.5, 790.03(c) and 790.03(h)(3) of the California Insurance Code, and Section 9875 of the California Business and Professions Code, and Section 3365 of the California Code of Regulations, Title 16, Division 33, Chapter 1, Article 8.
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DOI Meeting
cordance with original equipment manufacturer service specifications or, if manufacturer specifications and procedures are not available, nationally distributed and periodically updated service specifications that are generally accepted by the auto body repair industry. No insurer shall willfully depart from or disregard accepted trade standards for good and workmanlike repair in the preparation of claim settlement offers or estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision repair estimating software guidelines for use and repair.” “In addition, if an insurer should choose to adjust a shop’s estimate, newly proposed regulations would require the insurer to detail each adjustment made to the shop estimate along with the cost associated with each adjustment.” In proposed rules dealing with aftermarket parts, insurers would be required to communicate in writing that
it will warrant any aftermarket parts used to be of like kind, quality, safety, fit and performance as original equipment parts. Should a part be found to be defective or unsafe, the proposed rules would require insurers to “immediately cease requiring the use of these parts” and notify the estimating software provider and request the part be removed from the estimating software. Likewise, if a CAPA part is found to be defective the law would require CAPA to be notified. Finally, the proposed regulations contain language requiring that “insurers specifying the use of nonoriginal equipment manufacturer replacement crash parts that are found to be defective, unsafe, or do not otherwise comply with this section, shall pay for the costs associated with loss of use or rental car expenses caused by the use of such part.” Inquiries about the meeting should be directed to the department’s Teresa R. Campbell; Phone number: 415-538-4126; E-mail: teresa.campbell@insurance.ca.gov.
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Continued from Front page
SEMA Heard & Said
of the Las Vegas Convention Center for the event.
Erica Eversman, Attorney
Rich Evans talks with Aaron Schulenberg at SCRS’ SEMA booth
The Society of Collision Repair Specialists (SCRS) said it too saw growth in the training and other events that it held, for the second consecutive year—in conjunction with SEMA. Of the 2,100 total exhibitors—filling a mind-boggling 1 million square feet of space—153 chose to be located in the newly retitled “Collision Repair and Refinish” section of the show, which included about two dozen more companies than last year. Peter MacGillivray, vice president of events and communications for SEMA, said there was a 44 percent increase over last year in the number of buyers who listed themselves as interested in collision repair and refinish. In addition to the collision repair industry vendors, SEMA offers a multitude of tires and wheels and ways to soup-up and trick-out cars and trucks. But for those looking for information and discussion related Toby Chess, to the collision inTrainer dustry, there were classes and meetings throughout SEMA week as well. Here’s a sampling of some of what was heard within SEMA week classrooms and meetings spaces.
“What does new automotive refrigerant mean to you? —It means all new equipment. They’re not interchangeable. You’re going to have to buy new manifolds and a new recovery system.” —Industry trainer Toby Chess on the new R-1234yf automotive refrigerant now in use in Europe and expected in some 2013 model year GM vehicles. “Under Illinois law, to reverse a case at the (state) Supreme Court level, you
must have a minimum of four Justices. There was already one judge who had recused himself, and so the decision on the important issues, the issue whether to reverse, came down to a 4-2 vote. If you take out Karmeier, the decision [against State Farm] stands. So it’s going to be really interesting to see what the Illinois Supreme Court does because they’re under a microscope.” —Ohio attorney Erica Eversman, during her class on “A New Legal Era in the Collision Industry,” describing the latest legal effort to get the Illinois Supreme Court to review its 2005 decision throwing out a $1 billion judgment against State Farm related to its use of non-OEM parts. Plaintiffs attorneys argue Justice Lloyd Karmeier, who voted in favor of State Farm, should have reDan Bailey, cused himself from CARSTAR the case because of what they say was the level of the insurer’s backing of Karmeier’s election campaign.
“I just love this industry and the people in it. I’ve been in for 36 years and hope to be in it another 10 or so.” —Dan Bailey from A & B CARSTAR in Kansas City, Missouri, upon being the latest to be inducted into the collision industry’s “Hall of Eagles.” Bailey, the former president of CARSTAR’s national corporate organization, was recognized for a career that has inHerb Lieberman, cluded serving on LKQ many industry boards and advisory groups.
“During the week of October 10, my company attended salvage pools in the United States where there were 65,000 vehicles up for bid. Of those, 25 percent, or about
32 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
16,250, were sold for export out of the United States. My company—which only buys total loss vehicles for end-of-life processing—that week bought 7 percent, or about 4,500 vehicles. Another 20,000 were sold to our competitors for processing in the United States. So that leaves 24,250 vehicles left in the United States from that single week’s sale. I ask you, ‘what happens to those vehicles?’ How many of those vehicle should have remained in your shops for repair for the consumer? This is an issue I think we really need Randy Hanson, to address. Maybe Allstate we can work together to do something. As I see this, if we could have repaired those vehicles, there were over 1 million opportunities [we could have gained] in one year.” —Herb Lieberman of LKQ Corporation, urging repairers and insurers to work together to reduce the number of vehicles being declared total losses and not being repaired by the industry. “Customers are looking for more value through the entire transaction. If you look at
the insurance (process), typically you get an appraisal inspection, someone hands you a check, and you’re done. We’re starting to toy with the idea of whether post-repair inspections makes sense… I think it opens another dimension in terms of what you can bring the customer. Outside of their home, their automobile is the most expensive investment they make. I think customers are demanding more from that Bob Keith, (insurance claim) CARSTAR transaction, and I think we’re going to be charged with finding ways to provide that. Post-repair inspections are something that J.D. Powers highly recommends. Not a lot of folks are doing it. It’s time-intensive. It’s expensive. But the customer has an expectation that it adds value to their insurance and repair transaction.” —Allstate’s Randy Hanson “Roger Cada (of State Farm) and I were standing at the American Iron and Steel Institute conference talking to one of the top steel engineers from one of the largest steel manufacturers in the world. Roger asked him, ‘From your research, what’s
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going to happen to some of these new steels if we heat them or we weld them incorrectly. Will there be a little more intrusion (in a subsequent accident) or a minor change in airbag timing?’ And the guy said, ‘No, from our research, it’s catastrophic failure.’” —CARSTAR’s Bob Keith
“It may not be the repairers in this room, but we have customers going to repairers that may not or should not be fixing certain things. Or maybe they’re fixing stuff that shouldn’t be fixed. But our hands are tied in some ways. Customers have the right to choose where they want to go.” —Progressive’s Chris Andreoli “It’s certainly not the place for an insurance company to steer a customer to a shop. But I do think the manufacturer should play a role in that. I think you’re seeing more and more OEMs getting Steve Nantau, involved in shop cerFord tification. That (certification) doesn’t mean you’re going to get 100 percent correct repairs, but it in-
creases the opportunity that that will happen. And automakers can steer their customers to those shops.” —Ford’s Steve Nantau
“We used to say ‘repaired to pre-accident or pre-loss condition.’ Here’s the reality of that: A laser-braised roof. You cannot do that in the field. It’s impossible. So the procedures are to weld and glue that roof. You get the same usefulness out of the vehicle. But is that Doug Craig, vehicle ‘pre-accident Chrysler or pre-loss condition’? Our focus is to restore the crashworthiness and usability of the product. You’re going to see more verbiage like that. —Chrysler’s Doug Craig
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
Hot Rod Industry Alliance (HRIA) Sponsored Pinewood Drag Races Light Up 2011 SEMA Show The Hot Rod Industry Alliance (HRIA) sponsored Pinewood Derby Races took place during the 2011 SEMA show; the 13 custom
Derek White of Street Vizions won first-place in the pinewood derby for the second year in a row with this model vehicle
pinewood cars were also up for auction on eBay following the show to benefit the children’s charities Childhelp and Victory Junction Camp. Participating pinewood builders included Art Morrison, Fatman Fabrications, Fesler Concepts, Hollywood Hot Rods, Hopperstad Customs, Johnny’s Auto Trim, Kaucher Kustoms, No Joke Upholstery, Rich
Evans Designs, Santini Paint and Body, Spanky’s Hot Rods, Spitzer Concepts and Street Vizions. Derek White of Street Vizions successfully defended his first-place title this year, his second consecutive win. Rich Evans Designs was the runner up again this year as well. Each contestant was given four months to complete the car; no design limitations were given except that the car had to fit the track’s dimensions and no propulsions systems were allowed.
Rich Evans Designs took second place for the second year in a row with this model car
The eBay auction took place November 1 through 10, search HRIA Pinewood on eBay to find the bidding pages.
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Continued from Page 25
Blue Hen Collision
in recent years. Though their Feasterville shop requires additional resources to sustain itself, there is enough auto body work in Dover for Blue Hen Collision to focus solely on collision. In fact, customers are often willing to wait weeks to use the shop of their choice which sometimes creates a challenge for Blue Hen as they are forced to remind the customer that they have the option of using a competing shop in order to meet the cycle time guidelines imposed by their DRPs. Currently, the shop is anticipating the addition of an Enterprise Rent-A-Car outlet in another part of their building by the end of the year to make rentals more convenient for their customers. Blue Hen Collision Express is a CCAR Greenlink Certified shop, and they recently converted to Dupont’s Cromax waterborne paints. The shop began preparing for the conversion in January 2011, and it took place in May 2011. The Ciminos made this conversion when it became mandated by the EPA and the State of Delaware. They note that some of Delaware’s standards are more restrictive than the EPA’s. As part of these new regulations, regular filter type respirators have been replaced by full face hoods with grade “D” breathable air and CO monitors. An additional EPA requirement mandates that they take daily readings of the pressure on their paint booths and note filter replacement dates to comply with new regulations regarding the filters. The Ciminos well appreciate that low humidity and increased air movement in the booth decreases their dry-time for waterborne paints. Waterborne paint must also be treated as hazardous waste, so the shop must maintain waste receptacles for both waterborne paints and their solvent-based primers and clears. Carl and Chuck say that the conversion was very labor-intensive and required a great deal of retraining. They are currently redirecting their resources as they adjust to the new system which is the first to affect the entire shop, unlike changes between solvent-based paint systems. So far, they have found that the color matching is more accurate, but unlike solvent-based products, the tints have a
shelf life and must be maintained above 45 degrees Farenheit. That made it necessary to add heat to their mixing room, as well as a rider to their insurance policy to cover their paints in case a power outage causes the temperature to drop below 45 degrees. Since converting to waterborne, they have noticed better air quality in the painting area of the shop. Blue Hen Collision Express repairs mostly late-model vehicles and Carl Cimino says “so far, with Dupont’s Cromax Waterborne system, we have only had a few minor color match problems. They are constantly updating their color tools to overcome these issues.” Carl notes that there is a tougher business climate today. Because insurance companies control the flow of work, Carl says it’s necessary to participate in DRPs in order to produce revenues over $1,000,000. But due to relatively few body shops in the area and a great local reputation, insurance companies solicit Blue Hen Collision to participate in their DRPs, so they can concentrate on providing a quality repair in a timely manner, satisfying the expectations of the both the customer and the insurance companies. As far as Chuck knows, Blue Hen Collision is the only shop in the area that pays employees hourly. Chuck also notes that there is a current shortage of technicians, making it difficult to locate new employees. When asked his opinion about the current trends in the collision repair industry, Carl noted “Insurance pressure to keep repair costs down forces labor rates and materials allowances to stay stagnant while costs continue to escalate with no way to recoup. Good technicians are being paid the same money they were 10 years ago with very little chance of growth.” Carl also believes that, in the future, it will be difficult for many small shops to keep up with the training, technology and equipment costs necessary to meet new challenges concerning EPA governances and future vehicle designs. Blue Hen Collision Express employs fifteen people, including a receptionist, bookkeeper, general manager, and estimator, in addition to 3 unibody and frame technicians, 2 repair technicians, 1 mechanic, 2 painters, 2 helpers and 1 detailer. They recently added an additional technician to try to increase sales and de-
34 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
crease their cycle times. The shop is located in a 9,700 square foot building. They are equipped with Car-Liner and Chief EZ-Liner frame benches, 2 Shark Electronic Measuring Systems, and a Clean Shop Downdraft prep station. For estimating, they use CCC One and Audatex systems. Both their Spraybake Downdraft and Accudraft Semi-Downdraft booths are equipped with Kayco AirJet Air Movement Systems to aid in force drying the new waterborne paint system. Before painting, they use a EuroVac system to vacuum their booths, and Carl estimates that this has eliminated 75–80% of their dirt problems. Blue Hen Collision is I-CAR, ASE and DuPont certified. They participate in direct repair programs with State Farm, USAA, Safeco, Horace Mann and other insurance companies. The shop sponsors several local little league teams. Their focus, however, remains on quality and providing customers with a positive experience by staying on top of the industry. According to Carl, “the most important thing that we do is read and research everything we can. Any new
product or procedure that we read about in Autobody News or one of the other trade publications, we investigate and try. Also, staying on top of the ‘art’ of estimating is crucial to our success.” Chuck concurs that they like to be flexible and stay current with their training, maintaining consistency in their dealing with insurance companies and in their repair work. Carl and Chuck Cimino have not attended NACE in several years because they saw a decrease in exhibits. Though they were interested in attending this year, they were too preoccupied with the waterborne conversion going on in the shop. Blue Hen Collision Express 5825 W Denneys Road Dover, DE 19904 302-674-4525 www.collisionexpress.com
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Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html
Southeast Toyota Distributors (SET) Embraces Industry Changes to Help Dealers Stay Competitive with Larry Williams
There is a better way. This month’s article is about Today’s inventory management changes—changes which I believe are is completely different, and much imfor the better. One change I want to Jeremy Hayhurst proved. Yes, it is great to have all the talk about is inwith inventory manageparts “on hand,” but isn’t next-day ment. In the 1970s, automotive dealers needed to be warehouses. Stock good enough? Does the difference justify the added investment? Manufacorders came weekly; or even monthly. turers now have daily stock orders as Special orders took three days, unless routine, eliminating the need for a you paid extra for the overnight surwithwanted Jeremy Hayhurst warehouse system. The manufacturer charge. If a dealer to have has assumed the responsibility of cusgood Customer Satisfaction scores, he tomer satisfaction. Almost any part did his best to always have the needed which is needed can be obtained the part on hand. This dumped the renext day. This has leveled the playing sponsibility of customer service on the dealer’s parts department. They field between large and small dealers. needed to carry, on the shelf, massive Now, they can both deliver fast service, and get great customer satisfacinventories of 5,000 numbers, or more. Manufacturers promoted this tion scores! I see another positive change in system, and the belief that large inthe wholesale marketing area. Once ventories promoted better scores. Of course, dealers absorbed the cost of upon a time, the manufacturers conthese slow moving inventories; in the sidered the dealers to be their cusnever ending search for better cus- tomers, and stopped right there. A parts representative was concerned tomer satisfaction scores.
about accessory sales, not body parts. Now, that a few manufacturers have gotten serious about wholesale sales, they have started to actively help their dealers in this market. One such company is Southeast Toyota Distributors LLC, (SET). This is the world's largest independent distributor of Toyotas and Scions. SET is based in Deerfield Beach, FL. The company's vehicle processing facilities distribute cars, trucks and vans, parts and accessories to 173 independent Toyota dealers in Florida, Georgia, Alabama and the Carolinas. SET is the leading distributor of Toyota parts in the United States. Located inside a facility the size of eight football fields in Jacksonville's Baymeadows area, SET Parts Sales has the best supply record of all Toyota regions or distributors, shipping more than $1.7 million in parts per day to SET dealerships, providing that
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“next- day” service. SET is serious about helping their dealers compete in the aftermarket business. I talked to Wayne Crater, Assistant Vice President, Parts Supply & Distribution at SET about their dealer support. He was extremely enthusiastic and proud of their dealer programs, and he told me about some of them. SET Wholesale and Collision Field Support consists of six dedicated specialists. Their responsibility is to work directly with dealers to assist in growing wholesale collision and mechanical business. In addition to routine dealer contacts, they conduct week-long, wholesale dealer consultations; focusing on every needed aspect in order to create a more efficient and profitable wholesale operation. STAR Program, also know as Toyota STAR Program (Support to See SET Distribution, Next Page
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Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Industry Undecided Which Will Prevail in NACE vs. SEMA with The Insurance Insider
You can ring the bell as Round 2 of vote for one trade show. And if you the “Battle of the Century” has ended. asked if there was a need for any trade Yes, “NACE vs. SEMA, Part 2” was show, those results may even be more very different from the prior year. The Have trade shows gone with Chasidy Rae astounding. Sisk battleground changed from a Las the way of the dinosaur? Has SEMA, Vegas faceoff to an Orlando vs. Las by virtue of adding a collision repair Vegas showdown. section, redefined the scope of trade This year’s winner is in the eye of shows to a circus-like atmosphere dethe beholder. NACE (the International void only of the bearded lady and eleAutobody Congress and Exposition) and with Chasidy Rae phant Sisk man? its sponsoring organization, the Automotive Service Association, have staked their claim as the undisputed “Collision Industry Trade Show Champion.” Meanwhile, the Society of Collision Repair Specialists has teamed up with SEMA and announced their contention to be the new “Heavyweight Champion.” So who was this year’s winner? I personally think it was a draw—with one exception: There was a clear loser. I’ll give you a hint. It’s an eight letter word that begins with an “I” and ends with a “Y.” The collision industry is divided and stuck supporting two trade shows. The NACE and SEMA divide is all about “I” (rather than “we”) and the industry is holding the bag and left asking “Y?” So how and why is the indusI’m not sure if I can answer those try losing in a fight it never asked for? questions. I will tell you that if you I was one of a small percentage have never attended SEMA, it is defiof people who had the good fortune nitely worth it if only for the enterand fortitude to attend both shows. I tainment value. The collision industry experienced both the aging NACE and section of SEMA is really of no conthe upstart SEMA show. I was forced sequence when you constantly find to dedicate two-plus weeks to accom- your head spinning around to catch a plish what normally would take me glimpse of eye-popping and jaw-dropone week. I successfully met with all ping vehicles, booth celebrities and the individuals and companies that respokesmodels. At times, as you walk quested my presence and knowledge. around on the show floor, you may If you took a poll tomorrow, I’m wonder which Vegas trade show you convinced the industry-at-large would are actually attending.
beauty is in the eye of the beholder. It all depends on your purpose for attending: entertainment and personal vacation, business and purchasing, fact-finding—or simply just to get away from your shop or spouse. Of the few thousand avid readers of my column, several recently responded to last month’s article about NACE. I want to thank them for taking the time to share their thoughts, and I’d like to address several of their points. I agree with some that NACE, for many years, was a beacon for the col-
sponsored by SET and managed by OE Connection. Both programs provide participating dealers with the tools, training, and funding to support increased sales and market share through “conquest sales,” a process where the dealer has the opportunity to sell a Genuine Toyota Part over an alternative part using SET price support funding. This program allows dealers to be competitive in the marketplace and increase parts sales profitably.
I believe Southeast Toyota Distributors are distinctive because they have demonstrated to me that they care. They care about their dealers and their customers. They care about the quality of a Toyota, even after the warranty has expired. They will do everything they can to assure that the customer still has a quality product even after the damage. SET wants every Toyota to be repaired with genuine parts, every time. SET makes sure that its dealers can offer fast serv-
Northeast News Shop Showcase
Continued from Page 35
SET Distribution
Aftermarket Repair), is a marketing support program sponsored by Toyota Motor Sales to promote wholesale business. Collision Parts Price Support offers two different web-based price support programs to their dealers; Auto Parts Bridge, sponsored by Toyota Motor Sales, and SET Parts Edge,
36 DECEMBER 2011 AUTOBODY NEWS | www.autobodynews.com
In comparison, NACE had less eye-appeal but maybe a lot more buyappeal. NACE was significantly smaller but the content, direction, and focus was clearly different. The discussion around quantity vs. quality is certainly one aspect that shouldn’t be overlooked. More attendees doesn’t automatically translate into a more successful show. That’s why I say
lision industry. There was a period of time when the industry was changing so quickly that NACE was an absolute can’t-miss event. It was a time prior to the Internet, a time when the industry was growing at an accelerated pace and becoming more technologicallyadvanced as well as professional in all aspects of the business. NACE was needed, and as a result, it thrived. As years passed, attendance slowly dwindled and the industry called for change. NACE organizers didn’t respond or act as quickly as many had hoped. As a result, it opened the door for competition. In a changing market, you need to be able to adapt or you lose the sale. NACE lost the sale, and Round 1 of the “Battle of Century” last year went to SEMA. Round 2 this year, by my card, was a draw. For all my criticisms of NACE, SEMA is not yet the clearly www.autobodynews.com better show for the industry. And unlike “Rocky 3,” “Jaws 3” or “Fried CHECK IT OUT! Green Tomatoes, Part 3,” (in which Jessica Tandy is reincarnated), I’m actually looking forward to “NACE vs. SEMA, Part 3.” SEMA’s size has sustained it, but NACE’s multiple locations will supTo Eventually, advertise this fight is port it as well. call Advertising going to end and there isSales going at: to be a winner.800-699-8251 The industry will eventually prevail and have an undisputed chame-mail: advertising@autobodynews.com pion of an annual collision trade show.
www.autobodynews.com The Insider is a corporate-level
executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like him to address in a future column? Email him at Auto.InsurSee the ance.Insider@gmail.com.
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Social Studies Panel Held at 2011 SEMA Show Highlights Social Media Best Practices for Shops One of the educational panels held during the 2011 SEMA Show at the Las Vegas Convention Center concentrated on how social media can best be used by collision repairers. The panel was held on Thursday, November 3 at 10 a.m. and brought together leading social media experts in the collision repair industry. Collision Hub’s Kristen Felder, Jonathan Barrick, Marketing Manager for Global Finishing Solutions, and Frank Terlep, owner of Summit Software Solutions, came together on this panel to answer collision repairers’ questions about how social media can help their businesses. Jordan Hendler, executive director of the Washington (D.C.) Metropolitan Auto Body Association, moderated the panel. Hendler started off the session by asking panelists how collision repairers know that their customers want social media from them. A collision repairer’s customers are already on various forms of social media, says Felder, “If you’re not already there, hurry up!” Hendler continued by asking the panel how collision repairers can start
being active in social media. Terlep stated that repairers should start with the ‘big 4’ in social media marketing; Facebook, Youtube, Twitter and LinkedIn. “Have a plan,” said Terlep, “Sit with other shops and put a plan together.” Felder said a good, low-cost way to start a social media repoire could be to look at local colleges for students
and can’t do on the page should they decide to allow them to post. Barrick suggested that repairers spend some time researching and watching other shops’ pages to see what types of posts garner the most attention and responses from followers. Hendler then went on to ask the panelists what some dos and don’ts were for shops just starting out in social media. “People will read your posts for 3 reasons; education, entertainment and exclusive offers,” said Barrick. He encouraged shops to stay away from posting just random facts. “They will follow you for what they can’t Frank Terlep, Kristen Felder, Jonathan Barrick and Jordan Hendler discuss social media trends and get anywhere else,” he said. tips at the 2011 SEMA show Felder warned shops to be who need to create an online portfolio wary of what they post online, “don’t for a class project. This way the student post the politics of the industry.” can set-up the social media at no cost She encouraged shops to seem to the business. Felder also warned open and approachable online and to shops to set up a policy when it comes post helpful things for customers, like to who will post on the company page. tips to get them winter-ready in the ap“Are you going to let employees propriate climates and texting and post?” asked Fedler, she encouraged driving news reports. shops to define what employees can Hendler then asked the panel
how collision repairers can fit yet another task in their already busy days. Felder said some shops may be tempted to hand off their social media to a consulting company. She said this can be a good idea if the third party gives the shop options for how and what will be posted, tailored to the size and scope of their business, otherwise these posts can come off generic and uninteresting to customers. Barrick agreed with Felder, he said a third party can be a good way for a shop to initially set up their profiles, but they should not end up being the permanent voice of the company. He encouraged shops to have multiple people in their businesses participate in the profiles so they don’t turn into a one-man show. Lastly Barrick and Hendler touched on being wary of getting caught up with hoarding ‘page likes.’ Barrick said that although a page may only have 3,000 fans, they may generate 5,000 page views per month. So although they may not have fans subscribing to their posts, people are still using the page to get information about the business.
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Aftermarket Associations Complain to FTC About Mazda’s Claims Regarding Warranty Policy The Automotive Aftermarket Industry Association (AAIA) is again calling on the Federal Trade Commission (FTC) to take action against a carmaker—this time Mazda—for its policy statements relating to the use of aftermarket parts for vehicle repairs. Similar complaints were made by AAIA against Honda in 2010 when the FTC sided with the carmaker. In a letter to the FTC’s Associate Director for Marketing Practices, Lois Greisman, the AAIA—along with the Automotive Oil Change Association (AOCA), the Service Station Dealers of America, and the Tire Industry Association—argue that Mazda’s claim in a recent brochure that “aftermarket parts are generally made to a lower standard” is unsubstantiated. The groups say this is misleading consumers and are calling on the FTC to require Mazda to either to provide substantiation of their claim or issue a retraction. The letter states that “The wording in the Mazda release totally contradicts FTC’s alert by making the assumption that the aftermarket part would cause the warranty not to be honored rather than the fact that the use of the aftermarket part is permissible unless proven otherwise. Therefore, AAIA and AOCA further request that the Commission take immediate action to require Mazda to withdraw the release and issue a correction: that use of non-Mazda parts are permissible, and that it would be Mazda’s burden of proof to prove a non-Mazda part caused any alleged damage before denying warranty coverage. The AAIA claims that statements made by Mazda are misleading consumers about the use of aftermarket parts and those statements are a violation of the Magnuson-Moss Warranty Act, a law that says companies may not condition warranty coverage on the use of only original equipment parts. The letter also takes issue with a statement by Mazda that “Only Genuine Mazda Parts purchased from an authorized Mazda dealer are specifically covered by the Mazda warranty. The original warranty could become invalid if aftermarket parts contribute to the damage of original parts.” The aftermarket groups contend that the wording of this paragraph, combined
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with the statements regarding the quality of aftermarket parts, is intended to misinform consumers about their vehicle warranties and are in violation of the Magnuson-Moss Warranty Act.
Previous Complaint Against Honda Last year, the FTC received a similiar complaint regarding a release from Honda and Acura. The AAIA complaint stemmed from a Honda statement that said the carmaker “will not be responsible for any subsequent repair costs associated with vehicle or part failures caused by the use of parts other than genuine Honda/Acura.” However, in a December 2010 response to the AAIA, the FTC disagreed with AAIA’s claims. The FTC explained in its response to AAIA that while the MagnusonMoss Warranty Act does prohibit warrantors from conditioning warranty coverage on the use of only authorized parts, warrantors are permitted to exclude liability for damage or defects caused by the use of unauthorized parts. The commission explained that a warrantor may expressly exclude liability for defects or damage caused by ‘unauthorized’ articles or service; and may deny liability where the warrantor can demonstrate that the defect or damage was caused by those unauthorized parts. The FTC concluded, “While we appreciate your view to the contrary, we interpret the American Honda position statements to state that American Honda will not deny warranty coverage for the mere use of an unauthorized part, but rather for damage or defects caused by those parts,” and that, “American Honda does not appear to be in violation of the Act’s tying prohibition.” In response to the FTC’s interpretation, the AAIA said in its Mazda complaint that, “it appears that the absence of action as we requested by the Commission on the Honda release is leading more and more car companies to not only engage in similar misleading tactics regarding the use of nonoriginal equipment parts by consumers, but also to ratchet up the unlawful rhetoric. Immediate action is needed to both protect consumers from Mazda in the short term, and to stop other automakers from jumping on this anti-consumer bandwagon.”
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