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Contents
NATIONAL A Look Back at the Key Industry Events and News of 2013 . . . . . . . . . . . . . . . . . . . . 1 ABPA Files Suit Seeking to Overturn Ford Design Patents . . . . . . . . . . . . . . . . . . 58 Advance Auto Parts Gets New President, Michael Creedon . . . . . . . . . . . . . . . . . . . . 14 Alabama Shops Speak Out on Life After Select Service . . . . . . . . . . . . . . . . . . . 4 Artists for Education Has Donated $24K to Education Repair Foundation. . . . . . . . . . 56 ASA-PA is 13th Affiliate of National ASA . . . . . . 6 Asbury Automotive Group Donates $120K in Parts . . . . . . . . . . . . . . . . . . . . . . 56 ASE Awards Top Scorers on Certification Tests . 41 Attanasio - For Body/Paint Tech Keenan Hons Life is Reality TV on Fast ‘N Loud . . . . . . . . 18 Axalta Coating Systems Presents ASE Refinish Technician of the Year Award . . . . . . . . . . . 60 Caliber Collision Acquires Store in Temple, TX, Makes 36th New Store in 2013 . . . . . . . . . 61 Caliber Collision Has Gifted 17 Vehicles in 2013 . 37 Canadian Equity Pension Fund Buys Caliber Collision . . . . . . . . . . . . . . . . . . . . . 52 CARSTAR Relocates Corporate Headquarters to Leawood, KS . . . . . . . . . . . . . . . . . . . . . 14 CARSTAR Corporate Warns on Estimating in PartsTrader. . . . . . . . . . . . . . . . . . . . . . . 21 CEI Makes the Case for Outsourcing Collision Repair . . . . . . . . . . . . . . . . . . . . . 61 CIC Panel Sees Benefits of Electronic Parts Ordering, but Not Mandates for One System . 1 Dallas-based Service King Collision Repair Centers has bought Accurate Autobody of Nashville . . . . . . . . . . . . . . . . . . . . . . . . 45 DOJ Says Grand Jury Indicts Two Automotive Parts Suppliers for Price Fixing of Anti-Vibration Parts . . . . . . . . . . . . . . . . . . 57 Florida to Allow Digital Proof of Car Insurance. 54 I-CAR Launches Introduction to Carbon
“Oh my God, thank you,” Huerta said, wiping away tears. The Army National Guard veteran was selected to receive the car through the National Auto Body Council’s (NABC) Recycled Rides Program. Huerta said she drove a truck in places like Iraq and Kuwait, delivering and picking up supplies. She was shocked when she realized the car was for her. “It was unreal. I couldn’t believe it,” said Huerta.
The car giveaway marked the 150th for Sterling Autobody. The giveaway took place at the company’s Libertyville location, 1536 Artaius Parkway, and was done in cooperation with Allstate Insurance Company of Northbrook. “You’re a hero in our eyes,” Alex Feliciano, Sterling Autobody regional director, told Huerta. “This is just another way for us to say thank you.” Seven Sterling locations in the Chicago market filled the car with Christmas presents for Huerta’s children, and Enterprise Rent-A-Car presented Huerta with a gas gift card. Feliciano said the NABC came up with the idea seven or eight years ago to bring the various parts of the auto repair industry—including repair shops and insurance companies—together to give cars to deserving people. Sterling Autobody has participated in the program for six years. The majority of vehicles go to veterans, but some go to non-profit organizations or needy families, Feliciano said. Sterling Autobody usually does its car giveaway around Thanksgiving, but this year’s was moved closer to Christmas. “I look forward to it every year,” said Feliciano. “It’s a joy.”
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Audi Wholesale Parts Dealers . . . . . . . .42 Automotive ID . . . . . . . . . . . . . . . . . . . .28 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .15 AutoNation Chrysler-Jeep-DodgeRam-FIAT . . . . . . . . . . . . . . . . . . . . . .19 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Chrysler-Jeep-Dodge . . . . . . .31 Bill Luke FIAT . . . . . . . . . . . . . . . . . . . . .31 Bill Luke Suzuki . . . . . . . . . . . . . . . . . . .30 BMW Wholesale Parts Dealers . . . . . . .51 Bob Smith BMW . . . . . . . . . . . . . . . . . .40 Bob Smith MINI . . . . . . . . . . . . . . . . . . .40 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .17 Chapman Scottsdale Autoplex . . . . . . .27 Classifieds . . . . . . . . . . . . . . . . . . . . . . .63 Colortone Automotive Paints . . . . . . . . .10 Completes Plus . . . . . . . . . . . . . . . . . . .16 Creative Metal Manufacturing . . . . . . . . .6 DCH Chrysler-Jeep-Dodge-Ram . . . . . .20 DCH Kia of Temecula . . . . . . . . . . . . . . .20 DJS Fabrications, Inc. . . . . . . . . . . . . . .64 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .39 Drew Hyundai . . . . . . . . . . . . . . . . . . . .21 East Bay BMW-MINI . . . . . . . . . . . . . . . . .8 Elk Grove Toyota . . . . . . . . . . . . . . . . . .34 Enterprise Rent-A-Car . . . . . . . . . . . . . .18 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . . . . .47 Galpin Motors . . . . . . . . . . . . . . . . .26, 36 Glenn E. Thomas Chrysler-Jeep-Dodge .24 Glenn E. Thomas FIAT . . . . . . . . . . . . . .24 GM Wholesale Parts Dealers . . . . . . . . .57
Serving California, Nevada and Arizona, 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. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
COLUMNS Attanasio - Are the Yellow Pages Truly Dead? . 40 Attanasio - SEMA Garage-Industry Innovations Center is State-of-the-Art . . . . . . . . . . . . . . 12 Franklin You Got the Sale— Don’t Mess it Up! . 14 Insider - Saying That Insurers Force Shops To Repair Cars Improperly is Nothing More Than ‘Crying Wolf’. . . . . . . . . . . . . . . 30 Sisk - New Louisiana Collision Repair Association Has Quickly Become a Reality . . . . . . . . . . 44 Yoswick - January Retrospective: ASA Position, CAPA, CIC . . . . . . . . . . . . . . 15
Fiber Online Course . . . . . . . . . . . . . . . . . . 52 LendDeck.com Says SBA Loans for Body Shops at All-time Low . . . . . . . . . . . . 60 LKQ Contributes $25K to the Education Foundation . . . . . . . . . . . . . . . . . . . . . . . . . 50 LKQ Corp Buys Keystone Automotive Ops for $450M. . . . . . . . . . . . . . . . . . . . . . 58 LKQ Issues Aftermarket Wheel Recall, Focus is on State of Connecticut. . . . . . . . . . . . . . 50 Massachusetts Gov. Patrick Signs Right to Repair into Law . . . . . . . . . . . . . . . . . . . 37 Mitchell International Becomes Associate Member of ARA . . . . . . . . . . . . . . . . . . . . . 52 Montana Body Shop Fined by OSHA Following Fatal Fire-Explosion . . . . . . . . . . . 57 NABC Announces 2014 Board of Directors . . . 56 NC’s Sandhills Community College Students Help in Restoring ‘Annabelle’, Pinehurst’s 1937 Fire Engine . . . . . . . . . . . . . . . . . . . . 62 NHTSA Announces Tesla Battery Fire Probe . . 60 NHTSA Says Safety Ratings Cannot Exceed 5 Stars . . . . . . . . . . . . . . . . . . . . . . 49 PartsTrader Releases Fees for Suppliers Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . 42 PartsTrader Response to CARSTAR Estimating Issue. . . . . . . . . . . . . . . . . . . . . 21 PreFab Ads Announces 3 New 15 Sec Video Ads. . . . . . . . . . . . . . . . . . . . . 4 Professional Parts Group Earns NSF International Auto Collision Parts Distributor Certification . 58 Progressive Insurance Chairman, Peter Lewis, Dies at Age 80 . . . . . . . . . . . . 60 Quality Parts Coalition Releases Educational Video. . . . . . . . . . . . . . . . . . . . 16 Safelite Group Acquires ‘Substantially All’ of Guardian Auto Glass LLC . . . . . . . . . 53 San Antonio Repairer Tells TV News He’s Blowing the Whistle on Insurance Companies Pressuring Shops. . . . . . . . . . . 31 Second Injunction Filed Against PartsTrader and State Farm in Florida . . . . . . . . . . . . . . . 4 SEMA Issues ‘Black Book’ to Clarify Federal and State Emissions Compliance Requirements. . . . . . . . . . . . . . . . . . . . . . . 27 Service King Gifts Refurbished Vehicle to Family in Need . . . . . . . . . . . . . . . . . . . . 61 Sherwin-Williams Automotive Finishes Hosts A-Plus Network Vision Groups Conference . 24 Sisk - AASP-MA Meeting Addresses Auto Damage Appraiser Licensing . . . . . . . 29 Sisk - ABAC Member Meeting Covers Technology from BMW . . . . . . . . . . . . . . . . 26 Sisk - ABARI Shows Support for Consumers through RI’s Total Loss Bill . . . . . . . . . . . . . 38 Sisk - Automotive Recyclers Association Hosts 70th Annual Event . . . . . . . . . . . . . . 43 Sisk - LIABRA’s Membership Approaches 500 Shops, Repairing 250,000 Vehicles Annually . 22 Sterling Autobody Gives Away its 150th Recycled Ride . . . . . . . . . . . . . . . . . . 3 Team PRP Wants to Know What Body Shops Need from Recyclers . . . . . . . . . . . . . . . . . 28 Tennesee Body Shop Gets Favorable Ruling in Suit Against Progressive Insurance . . . . . 19 USAA to Hire Up to 1,215 New Employees in Hillsborough County . . . . . . . . . . . . . . . . 61 Walcom Puts Body Shop Owner in a Good Mood . 9 Willets Point Shop Owners Face First Deadline for Relocation. . . . . . . . . . . . . . . . 54
Cristal Huerta didn’t quite know what to think when the garage doors opened at Sterling Autobody one recent afternoon when she was greeted by a large group of people cheering and waving flags. She was so shocked that at first, she didn’t realize the other part of the surprise: a newly-refurbished 2010 Toyota Camry.
Indexof Advertisers
REGIONAL Attanasio - Is San Francisco’s Selecta Auto Body “Ultimately Green?” . . . . . . . . . . 46 FinishMaster Golf Tournament Raises Funds for Adolescent Mentor Group . . . . . . . . . . . . 6 New California Law Expands Protection for Whistleblowers . . . . . . . . . . . . . . . . . . . 42 Northern California MSO, Mike’s Auto Body, Rescues El Sobrante Boys & Girls Club. . . . . 1 Sacramento Glass Harvesting Ring Files Over 1000 False Windshield Chip Repair Claims . 13 Seidner’s Wins Completely Elite Award for CSI Scores . . . . . . . . . . . . . . . . . . . . . . 52 Woman Fights Ticket for Driving with Google Glass . . . . . . . . . . . . . . . . . . . 53
Sterling Autobody Gives Away its 150th Car, This One in Chicago Area
Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . . . . .46 I-CAR . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Infinity 3D Laser Measuring . . . . . . . . . .25 Intertape Polymer Group . . . . . . . . . . . .13 Kearny Mesa Subaru-Hyundai . . . . . . .49 Kia Motors Wholesale Parts Dealers . . .55 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Los Gatos Luxury Cars . . . . . . . . . . . . .29 Maita Subaru . . . . . . . . . . . . . . . . . . . . .14 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Mazda Wholesale Parts Dealers . . . . . .58 MINI Wholesale Parts Dealers . . . . . . . .50 Mitsubishi Wholesale Parts Dealers . . .54 Momentum Auto Group . . . . . . . . . . . . .43 MOPAR Wholesale Parts Dealers . . . . .35 Moss Brothers Chrysler-Jeep-Dodge . . .7 Nicolosi Imports . . . . . . . . . . . . . . . . . . . .4 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .48 Replica Plastics . . . . . . . . . . . . . . . . . . .38 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .53 Shingle Springs Nissan-Subaru . . . . . .41 Sierra Chevrolet-Honda-Mazda-Subaru .45 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .12 Subaru Wholesale Parts Dealers . . . . . .59 Timmons VW-Subaru . . . . . . . . . . . . . . .37 Toyota Wholesale Parts Dealers . . . . . .56 Volkswagen Wholesale Parts Dealers . .52 Volvo Wholesale Parts Dealers . . . . . . .61 Walcom USA . . . . . . . . . . . . . . . . . . . . . .9 Weatherford BMW . . . . . . . . . . . . . . . . . .2
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 3
Second Injunction Filed Against PartsTrader and State Farm in Florida Florida collision repairers, suppliers and vendors came together in Lakeland, FL, on November 20 to discuss State Farm’s controversial PartsTrader program and identify solutions to combat “short-pays” in the industry. Ray Gunder, owner of Gunder’s Auto Center, filed an injunction against PartsTrader at the Polk County Courthouse on Nov. 20 on behalf of other Florida collision repairers with assistance from attorneys John Eaves, Jr. and Brent Geohagan. Florida follows Mississippi as the second state to file such an injunction. “This is just another attempt by State Farm to intrude into our business and further cut into our profits,” said Gunder. “What I have been fighting the whole time is that, by taking profits away, it’s forcing good men to do bad things which ultimately affects the consumer with poor, unsafe and shoddy repairs, putting their families in harm’s way.” Eaves said he is selectively targeting states where the injunction is most needed and where he feels repairers will get a fair hearing. Florida is one of those states. “Plus, Florida is a key state in national politics,” Eaves said. “Everybody across the nation watches what happens in Florida. Even in the court
system, this is a campaign to take back this industry from insurance companies and campaign for safety. Also, Florida has some very influential legal precedents and very influential politicians, and we think it is a very symbolic place for this to be filed.” Although the Florida injunction is similar to Mississippi’s, the laws are slightly different and thus the suit has taken a different approach, according to Eaves. “Brent (Geohagan) has adapted it and focused it a lot on precedent or public policy behind the 1963 Consent Decree,” said Eaves. Eaves estimated there were 75 different shops and vendors who gathered at his law office the day they filed to show support for the effort. He estimates that roughly 40 shops will ultimately back the injunction. While a court date for a hearing is hoped for soon, Eaves said he expects State Farm to use stall tactics like in Mississippi. “This is the second state to file an injunction, and there will be more,” said Eaves. “We will continue to take this fight across the country. State Farm has committed to rolling [PartsTrader] out to 50 states, so the injunction is to prevent damage before it
Alabama Shops Speak Out on Life After Select Service Back in May 2012, 18 shops in the Birmingham, AL, area stunned the collision repair industry by voluntarily terminating their Select Service agreements with State Farm after the insurer required the PartsTrader electronic parts procurement program in their market. Now, more than a year later, some of the shops indicates that most are faring better than other collision repairers may have thought. Steve Plier, founder of the Alabama Automotive Repair Industry Society of Excellence (ALARISE), told a media source that overall, those shops have reported lower volumes of State Farm work but higher profit margins. “I do believe a couple of the smaller two-man shops that removed themselves from the program have most likely struggled more than the $1 million and up per year repairers, but I believe that has more to do with total volume being down versus simply the State Farm/PartsTrader issue,” says Plier. “Business in the metro Birmingham area since early 2012 (before PartsTrader rolled out) has been what I would consider to be slow across all insurance company lines. In the spring of 2011, central Alabama was hit hard by strong storms, so the volume since late 2011 has not been what I would consider brisk.”
Also quoted was Lloyd Bush, owner of Bush Auto Collision Repair in Gardendale, AL, who said it was a “gutwrenching decision” to drop Select Service since State Farm accounted for 44 percent of his work, but overall he has come out okay. “We’ve lost 5 percent of our gross sales, but our net profit has gone up,” said Bush. “We’re able to charge storage, our teardowns aren’t scrutinized and our local State Farm agents are still sending us business. I spoke to them before coming off the program to tell them what was going on, and they agreed with me and said, ‘We don’t send people to you because you’re on the program; we send them to you because we know you’ll fix the car correctly and we won’t have any problems.’” Bush attributes the 5-percent loss to steering, mainly customers who have never been to his shop before and make a claim via the call center instead of their agent. Bush says if faced with the same decision today, he would make the same choice, primarily because of the storage he has been able to charge due to no longer having a contract with State Farm. He also charges for lift time. “The lift wasn’t free, plus one of my men has to do it,” said Bush.
4 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
occurs. Our belief is that this is like a virus—once it takes hold in a state, it causes irreparable damage because it destroys those relationships between shops and vendors.” As to rumors of an organized protest in Washington, DC., early next year, Eaves would only say that a comprehensive, national, multi-dimensional campaign is underway. “We want this industry to return its loyalty to the customer and protect public safety, and that will include many facets.” Commenting on the action was, Barrett R. Smith of AAM, an industry advocate, “I was at the meeting yesterday and there was great interest by all in attendance, repairers and vendors alike and they were lined up to sign up after the meeting. “Interesting times to say the least for the collision repair industry and a collective defeat of PartsTrader will be huge for the fragmented industry and will illustrate that together, repairers can indeed make a difference! “This is the perfect storm...with insurer’s strangle hold on the repairers and profits dwindling while costs increase... the time is perfect for the collision repair industry to band together to take back their industry. One must ask themselves: If not now...When?
PreFab Ads Announces 3 New 15 Sec Video Ads
PreFab Ads has announced on the addition of three new 15-second video advertisements that auto body shops can brand and then place on the Internet and local TV. “Fifteen-second spots provide a great opportunity for body shop owners to take advantage of short format opportunities on both local television and on the Internet,” said PreFab owner Chuck Jessen. “The trick therefore is to hook the viewer in quickly with something visually interesting then deliver the body shop’s message.” The new ads are listed below. ● “Cartoon-Crash: It shows vintage cartoon footage of cars crashing followed with footage of quality collision repair and the logo of the sponsoring auto body shop. ● “Demo Derby: It uses a montage of demolition derby crash shots to set up the body shop story on the back end. ● “Tug-A-Car: It an edited-down version of “Tow Trucks” shows a car being ripped into two pieces while conveying a strong anti-steering message. All 20 PreFab Ads TV commercials can be viewed online.
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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 5
FinishMaster Golf Tournament Raises Funds for Adolescent Mentor Group by Ed Attanasio
On a sunny day in the City by the Bay more than 100 golfers representing every segment of the collision industry played 18 holes at Harding Park in San Francisco at the annual FinishMaster tournament on Oct. 9. This
breathtaking TPC course is considered to be one of the elite municipal courses in the country, featuring pristine greens and lush fairways throughout. The annual Harding Park Tournament was originally hosted by the San Francisco chapter of the California Autobody Association, but when that chapter folded several years ago, FinishMaster took over the sponsorship to continue this tournament, now celebrating its 16th year. Halloween was still several weeks away, but most of the golf being played by this assemblage was frightening.
When you get a mixture of decent golfers combined with duffers and even a few first-timers, it always makes for a fascinating day. No one was actually injured, although several egos were seriously bruised and a few wannabe golfers looked like small children, “playing in the sand and the water all day long” according to one body shop owner who also described his foursome as “the Three Stooges and me!” The FinishMaster’s Harding Park Tournament is a non-profit event that raises money for Young Life, an organization that mentors adolescents and helps them to live more productive lives. Tournament sponsors included Axalta, PPG, Oak Distributors, 3M Company, Norton/Saint Germain, Putnam Buick Pontiac GMC of Burlingame, Last Call
ASA-PA is 13th Affiliate of National ASA
The Automotive Service Association (ASA) board of directors has named ASA of Pennsylvania (ASA of PA) as its 13th affiliate. “The ASA members in Pennsylvania are a dynamic group of professionals and we couldn’t be more pleased to develop a strong affiliate group in that area,” said Darrell Amberson, AAM, ASA chairman. “Whether we’re joining forces representing repairers or providing communications and money-saving benefits, working together at the local level allows us to expand the value of membership for each individual.” Tom Gebbie, co-owner of Gebbie’s AutoCare in Lansdale, Pa., said he is pleased about the future of ASA of PA and the direction it’s headed. “We’re excited about the positive effect our affiliation will have for the membership in Pennsylvania. ASA of PA currently hosts training and management meetings in the southeast portion of the state, and we’re working on expanding these training and management opportunities to reach the entire state. I invite our fellow
ASA members in Pennsylvania to join us in creating local chapters and meetings to help grow our association.” Added Dan Risley, ASA executive director, “The strength of ASA is rooted in our affiliates, and we welcome the strong and active leadership comprising the ASA of PA. ASA and its board of directors are committed to transparency and working together to deliver value that is mutually beneficial to ASA national and affiliate members. A new era has begun at ASA and the positive momentum continues to grow.”
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Marketing, Northstar, Transtar, Fiberglass Evercoat and DeVilbiss Air Company. Putnam Buick Pontiac GMC of Burlingame once again sponsored a hole-in-one, featuring a new vehicle
and FinishMaster also sponsored a hole-in-one offering a $10,000 cash prize. The car was never in danger, although many handicaps were and the ten grand will remain safe for yet another year. First place for the tournament went to a foursome consisting of FinishMaster’s Regional Sales Vice President Mike Sheedy; John Moore, owner of Moore Buick in Los Gatos, CA; John Marshall, regional manager at Norton and Pete Stafford, who does not work in the collision industry, or in golf
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6 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
terms, he’s what’s called a “ringer.” Special credit also belongs to Hostess Melissa Perez of FinishMaster, and of course, Regional Vice-President of Sales Mike Sheedy of FinishMaster who was also again the tournament’s director. Perez was thrilled by the collision industry’s participation in the tournament and everyone was impressed by the condition of the course and the favorable weather, she said. “This tournament always features people from literally every aspect of this industry and it’s a great chance to unwind and play golf on this amazing course in the most beautiful city in the world,” Perez said. “We value the great relationships we’ve built over the years and it’s always a pleasure to see the same faces again. This year, we had more shops participating, which was nice. Special thanks go out to everyone who came a long way to be here, especially Darren Huggins with the Van Tuyl Auto Group, who came all the way from Texas to be here! It’s a unique tournament and we’re happy to be celebrating its 16th year.”
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 7
Continued from Cover
Mike’s Rescue
Auto Body was calling to deliver some very good news. “I was actually in a meeting when Sal called,” Zeier explained. “I told my people, I’ll call as soon as I get a chance and they said, no—you should talk to him right now. When he told me that Mike’s Auto Body was going to cover the loss, we were obviously ecstatic! What an amazing thing they’ve done for us! Mike Rose and the people at Mike’s Auto Body took a bad situation and turned it around. This is a great lesson for our youth, because it shows that some people really care.” Sal Contreras is a Boys & Girls Club alum himself, so he knows the value of the organization and how it shapes young lives. “When I was growing up in Richmond, Ca, I was a member at the Richmond Boys & Girls Club,” Contreras said. “So, when Mike Rose called me and said let’s cover their loss, I didn’t hesitate for a second before making the call. Billy was obviously surprised and when we went there to present them with the check, all of the kids could-
benefits children,” Ortland said. “My father (Owner Mike Rose) told us that he wanted to replace the missing funds and we immediately agreed with his decision. This time of year is difficult enough and to have something like this happen can be very disheartening. We felt that replacing the missing funds was the least we can do during this holiday season.” The Boys & Girls Club of El Sobrante was established in 1958 when a group of parents were concerned about the lack of facilities and activities for boys in the neighborhood. In 1998, the Girls Club, previously a separate organization located in the building next door, joined the Boys Club to create the Boys & Girls Club of El Sobrante. Members participate in a variety of programs within the five core areas of Arts; (l to r) Bruce Hubert, Richmond Shop Manager for Mike’s Education & Career DevelAuto Body and Sal Contreras (far right) present a check for $6,000 to Billy Zeier, Executive Director of the Boys & opment; Sports, Fitness & Girls Club of El Sobrante Recreation; Health & Life heard about the incident with the Skills; and Character & Leadership DeBoys & Girls Club, we were appalled velopment. The club is affiliated with that someone would steal from a non- the Boys & Girls Club of America profit and especially a non-profit that (BGCA), with 4,000 clubs nationwide n’t stop smiling. The El Sobrante Boys & Girls Club is a great program and they really push the educational aspect. Staying in school is one of their main messages and that’s why many of their members have gone on to attend college.” Ragen Ortland, Operations Manager at Mike’s Auto Body was happy to be in a position to help the Boys & Girls Club of El Sobrante. “When we
8 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
and representing 4.1 million children. The Boys & Girls Club of El Sobrante serves children ages 7-18 from West Contra Costa, including El Sobrante, and its surrounding cities of Richmond, El Cerrito, San Pablo, Pinole, Hercules, Crockett, and Rodeo. At the beginning of the school year, members set personal, school, and career goals, which are reviewed at the end of the school year. Mike’s Auto Body is a 41-yearold family-owned business with 11 locations in Concord, Walnut Creek, Lafayette, Pittsburg, Antioch, Brentwood, Richmond, Fairfield, and Napa. On November 22, detectives arrested a 47-year-old man at his home after a search warrant was served at the home and stolen property taken from the club was found inside, according to Contra Costa County Sheriff’s spokesman Jimmy Lee. The man is out on bail and awaiting trial and innocent until proven guilty.
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Walcom Puts Body Shop Owner in a Good Mood In 1977, Shawn Moody, 53, was a junior in high school and opened the first of the Moody’s Collision Centers in Gorham, ME. Now his business consists of eight locations that repair approximately 12,000 vehicles annually. “In 2001, Moody’s opened our second location, and now we open a new one roughly every other year.”
Moody’s Collision opened its first location in 1977 and today the company consists of eight locations
One reason for Moody’s explosive growth can be credited to his company’s employee ESOP stock ownership plan. “Our co-worker owners have a strong desire to embrace new technology,” Moody said. “But, you have to stay up on it and continually integrate it into your business, or
you’ll get left behind. We really do our homework to make sure any new piece of equipment makes sense for us. We just don’t rush to buy it just because it’s the newest thing.” Moody’s due diligence when researching new technology starts by polling other shops that are already using the technology. When Moody found out about Walcom® USA, LLC ThermoDry Technology (TD) system distributed by Collision Design Center, LLC, he travelled to another state to see it in action, he said. “We went up to a shop in New Hampshire and asked to talk to their painter. I didn’t want to talk to anyone else. I know that it’s the guy who uses it every day who’s going to give me a straight answer. He said he really liked it and told us that it decreased his drying time. He said he was using less product and the clear laid out better with the TD3 PRO.” In simple terms, the TD3 PRO system heats the paint and atomizes it more efficiently than cold-compressed air. The machine regulates the heat right at the spray gun inlet, so that there’s less static pressure at the spray gun nozzle. When painters find out
that the system minimizes die back, alleviates modeling, and saves materials, they immediately prefer it over the old way of applying paint. Once they learn how to use it, they’ll realize that things they used to have to do—such as denibbing and buffing— are minimized, while consistently getting a superior finish on every vehicle.
Moody has purchased seven Walcom units, all of which are paying big dividends for this burgeoning MSO
After testing the TD3 PRO, Moody purchased seven TD3 PRO units, all of which are paying big dividends in their locations. Moody is seeing the results in both the bottom line and the finished product. “We’re saving at least 15 percent on paint and labor efficiency. Before we got
these machines, we were waiting 10-12 minutes for the waterborne to flash between coats, but now the TD3 PRO cuts that down about five minutes. When we did the math, we figured we’re saving 1,000 hours on drying time by using this machine. That’s phenomenal!” In addition, Moody said, “The paint and the clears are drying so much faster that there’s less chance for dirt in the paint, which results in less buffing.” Moody’s painting staff is already adept at using the TD3 PRO units, he said. “Our painters worked with the Walcom unit for a couple days, and they adapted quickly. Once they get a feel for the proper air pressure and decreased flash times, there is a very shallow learning curve. If you’re interested in this equipment, I would suggest getting it in your shop for a full day and have someone there from Walcom demonstrate firsthand the labor and material savings. Seeing is believing!” Read more about Moody’s Collision Centers at http://www.moodyscollision.com, Collision Center Design at www.collisioncenterdesign.com, and Walcom USA at: http://www.walcom-usa.com.
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 9
Continued from Cover
CIC Panel
tronic parts procurement itself. Darren Huggins, national collision director for of the Van Tuyl Auto Group, which operates 37 body shops and 75 dealerships in 10 states, said parts procurement systems give shops for the first time a transparent tool to measure vendor performance. “When was the last time we really focused on holding parts suppliers accountable for our customer satisfaction, quality, cost and speed? It’s never happened,” Huggins said. “My own dealerships struggle sometimes to get parts off the shelf and to me in a timely manner. Darren Huggins The insurers are mandating that we perform. But we’ve never ever made the parts supplier perform like they have to perform today. We’re finally putting the parts department on the dime. If nothing else, there’s a silver lining there.” “As a former shop owner, I know I had only anecdotal evidence of how well my suppliers were performing,” agreed Mike Quinn, now president of uParts, an electronic parts procurement system that went live in Southern California last year. Quinn said uParts provides objective reporting of performance it offers suppliers, shops and, if a shop wishes, its insurer partners. This “procurement efficiency index,” he said, will help shops improve their performance by choosing vendors with high scores based on objective measurements such things as fill rates, delivery time and order accuracy.
Supplier Sees Benefits Terry Fortner of LKQ Corporation said that as electronic parts procurement systems integrate with supplier inventory systems, they will reduce the problem of what he called “ghost inventory,” a supplier suggesting they have a part when in fact they don’t or it is “three states away.” It will also reduce the need for companies like his to have 1,400 sales people answering calls because only 10 prevent of the orders it currently receives come in electronically. “What I will tell you is that the industry, in my opinion, is behind the
curve,” Fortner said. “The efficiency [of the systems] is not to a point where we would like to see it, but we know that every electronic order we get, we see our internal credits and allowances dramatically decrease. “That is a big win for us. It’s a big win for the industry.” Randy Stabler, who operates six Pride Auto Body shops in Southern California, agreed that he sees an upside to the industry ferreting out those shops that order parts to get an invoice only to return the part. He said he chose an electronic parts Randy Stabler procurement system that would best allow his company to “get all the right parts but also be able to demonstrate which of our suppliers are more efficient.” He said he’s anxious to have the systems better integrate with his company’s accounting and other technology systems (as well as those of his suppliers) but he likes the idea that the systems may shed some light on “the costs that our industry has absorbed” when using alternative parts. “I’ve got no problem with alternative parts as long as they work on the car, as long as I get them in a timely manner, and as long as if something goes wrong with them, someone else pays the costs to rectify that problem rather than me,” Stabler said. “The electronic parts procurement engines will allow for us to have transparency on that.”
Mandates Questioned But the panel was less positive when it came to the subject of insurers mandating the use of a particular system. Without naming the companies involved, Jim Sowle, body shop director of Sewell Lexus in Dallas, Texas, said he recently chose to drop a direct repair program because of its mandated use of a particular Jim Sowle system. “Running a system that we’re forced to use that’s going to add additional time and has no value-added just doesn’t make sense to us,” Sowle said, noting that his shop orders most of its parts from the dealership’s own parts department.
10 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
During the panel discussion, between 50 and 75 repairers at the meeting responded to several survey questions about electronic parts procurements systems. Although 12 percent said they don’t currently use such a system, 40 percent said they use a system of their choice, 4 percent said they use a system only based on agreements they have with insurers, and 44 percent said they do both. Of those using a system of their choice, 78 percent said it has had a positive effect on their efficiency (another 12 percent said they have seen no change in efficiency). But 92 percent of those using a system due to an insurer agreement said they have seen a negative impact on efficiency. Nick Bossinakis of Overall Parts Solutions said that 92 percent fits with his experience of not being able to locate a shop or vendor with much positive to say about PartsTrader. As the developer of a competing parts procurements system, it may not be surprising that Bossinakis predicted it will “take another three or four years…and millions and millions of dollars” to get PartsTrader “to where you (repairers) want to get it.”
But Bossinakis did praise State Farm for pushing for a needed change in the industry. “How are we sitting here in 2013 and still phoning and faxing orders,” Bossinakis said. “At some point, whether we agree or disagree, you have to respect the process of change. My hat is off to State Farm and to PartsTrader, because the way I look at it, sometimes you have to regress to progress. Maybe I’m idealistic and maybe I’ll be out of business five years from now. Who knows? But there is value to what has happened.” “My personal opinion is we’ve been regressing for far too long in this industry, and I think it’s time to stop,” shop owner Dingman said, drawing applause from some CIC attendees.
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, 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
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SEMA Show Goes On
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
The SEMA Garage-Industry Innovations Center is State-of-the-Art with Ed Attanasio
The modern automotive garage first appeared in the 1920s and, in addition to parking cars in them, inventors began to utilize them for different purposes. Walt and Roy Disney started making cartoons in a Hollywood garage in 1923 and in 1938. William Hewlett and David Packard rented their own garage space in Palo Alto, CA. Apple Computer started in a garage and bands like Metallica and Van Halen were originally formed in garages. Worldchanging innovaSEMA’s tions take shape Vice-President of every day and OEM and Product many have hapDevelopment pened in a garage. Programs Mike That’s why it’s apSpagnola runs the propriate that organization’s SEMA has a SEMA Garage-InGarage-Industry dustry Innovations Innovations CenCenter ter, a facility where tomorrow’s new products will be developed today in this state-of-the-art facility. Located adjacent to the SEMA headquarters in Diamond Bar, CA, the 15,000 sq. ft. SEMA Garage contains more than $2 million in tools and equipment and was specifically designed as a resource to help SEMA members fast track the process of getting new automotive products from the drawing board to market. Eleven automotive professionals work at the facility full-time, each carefully handpicked for their knowledge, skills and experience. Containing four different sections (known as “cells”) the SEMA GarageIndustry Innovations Center has been opening in stages since the spring of last year. The SEMA Garage’s ‘cell one’ is a complete emissions-certification lab containing a chassis dyno. Cell two is a fully-loaded garage with an extensive array of tools and cutting-edge equipment and cell three is a media center containing a photo cove that can accommodate a full-size vehicle for photography. Cell four is a large meeting room to perform training.
The facility is under the direction of SEMA’s Vice-President of OEM and Product Development Programs Mike Spagnola, who has 40 years of specialty auto parts experience, including more than 20 years of product development and project-vehicle work. With a focus on heightening SEMA’s services to its members, Spagnola was hired early last year to collaborate with the SEMA OEM and vehicle technology departments while serving as a resource and liaison for members and automakers. Spagnola is obviously proud of the SEMA Garage and anxiously looks forward to all of the future possibilities it will facilitate in the future, he said. “When this position presented itself, I jumped all over it. This facility is going to change the industry and that’s why I had to be involved. Things that SEMA members could not do easily or affordably previously will enable them to get an edge on the market by using the SEMA Garage.” One of the main functions of the SEMA Garage is to serve as the main location for most of SEMA’s measuring sessions—a SEMA and OEM partnership that provides members with access to upcoming vehicles before they hit dealerships, in most cases. Members take their turns scanning, examining and measuring the vehicles for accurate, hands-on specs used to begin prototyping. In the past, measuring sessions required manufacturers to travel to various locations, typically within a two-day timeframe, and carry the gear needed to record accurate vehicle data. Those who have previously attended SEMA measuring sessions will notice a significantly enhanced set of assets for developing new products at the SEMA Garage, according to Spagnola. Several exciting things have already taken place at the SEMA Garage, according to Spagnola. “We’ve already held some pretty significant events here, including our first-ever Mega Measuring Session in July, which featured five popular vehicles for members to preview—the Chevrolet Silverado, Toyota Tundra, Ford Focus ST, Toyota HiLux and Ford Ranger ST. In addition, we held
12 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
the Honda/Acura Measuring Session here, featuring 14 versions of the Honda Grom, CTX700 and Goldwing
and grow. “It’s all about information and these measuring sessions are so valuable for any company that wants to develop products for these vehicles,” Spagnola said. “In addition, body shops and collision centers that work on specific brands can come here and measure these cars before they even hit the market. So, when a 2014 vehicle comes into their shop, for example, they’ve already familiarized themselves with it. The SEMA Garage’s classroom can hold about 80 people and is ideal for training, product seminars and media They now have an advantage events and can be more efficient when they’re writing estimates.” F6B motorcycles, the Pioneer SXS The SEMA Garage was also reall-terrain vehicle and Odyssey minivan. The ‘14 Acura MDX midsize cently used as the installation hub for the exclusive WD-40/SEMA Cares SUV and RLX mid-luxury sedan were Foose Ford F-150. The build was peralso available for members to explore formed at the SEMA Garage, in conin 2013.” Spagnola sees the SEMA junction with Foose Design and WD-40 Co. and through a partnership Garage’s role as being an idea incubator where new products will germinate with the Alex Xydias Center for AuOriginal BMW Parts
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tomotive Arts. “This was a great experience and I know we’ll be doing more things like this here at the garage,” Spagnola said. “It was great to see some of the leading SEMA
bers are already excited about using it.” For members who want to train dealers or consumers on their newest products and systems, a full classroom facility is available for their use at the SEMA Garage. Holding approximately 80 people, it is ideal for training, product seminars and media events. Members can also do installation training in the garage and perform dyno runs to show off the newly developed products. Measuring a vehicle using the latest tools at the SEMA Video photography can also Garage-Industry Innovations Center in Diamond Bar, CA be accomplished in the manufacturers working alongside un- garage, cove, and classroom or dyno derprivileged teens and young adults room, according to Spagnola. to complete the truck as part of the SEMA members are encouraged SEMA Cares Charities program.” to take advantage of this industryAt the SEMA Garage, members owned facility for product developwill be able to not just measure, but ment, fitment, research and much also tear down and work on the more. For more information about the newest vehicles coming to the marSEMA Garage—Industry Innovations ketplace and then use the facility’s 3D Center, including upcoming events printer as well. “With their own meas- and availability, contact Mike Spagurements and CAD files, members nola at mikes@sema.org. can use our 3D printer to build test products and install them on the vehiwww.autobodynews.com cle, Spagnola said. “This cutting edge CHECK IT OUT! printer is an amazing tool and mem-
Sacramento Glass Harvesting Ring Files Over 1000 False Windshield Chip Repair Claims The California Department of Insurance Fraud Division announced Dec. 5 the arrest of three-of-six individuals suspected of running a glass harvesting ring-filing more than 1,000 false insurance claims for windshield repair totaling nearly $100,000. The suspects were arrested on multiple felony charges for grand theft, false personation of another, and filing fraudulent insurance claims. Using actual consumers’ insurance policies, the suspects allegedly submitted fraudulent claims for automobile insurance windshield chip repairs to multiple insurance companies between May 9, 2011 and May 24, 2012. “This criminal case is a good reminder for consumers to pay close attention to any notifications received from their insurance company, because these suspects were essentially stealing consumers’ insurance identity,” said Insurance Commissioner Dave Jones. “Consumers should review their policy claim history annually, upon renewal, to ensure the claim information is accurate. If there are errors or questions about the claim history, consumers should contact their agent or broker immediately
and report it to our consumer hotline.” California Department of Insurance officials believe the individuals involved were initially operating a legitimate auto glass repair business and completed authorized repairs. The investigation revealed that the suspects retained consumers’ policy information and sometime later allegedly filed additional fraudulent claims on consumers’ policies, without policyholders’ knowledge or permission. Consumers who had repairs done by Safetek Auto Glass Consulting, Auto Glass Professional and Clear View Autoglass should check their insurance carrier to ensure no additional, potentially fraudulent claims were filed on their policy. The Department of Insurance recently awarded auto fraud grant funds of $22 million statewide. The Sacramento Regional Fraud Office administers grants in northern California totaling $1.3 million for auto fraud for seven Northern CA counties, including Amador, El Dorado, Sacramento, San Joaquin, Stanislaus, Shasta and Yolo.
www.autobodynews.com C
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 13
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
You Got the Sale— Don’t Mess it Up! with Thomas Franklin
A while back I was sitting in a body shop waiting area, waiting to present a new product. I watched a potential customer pull up in a relatively new BMW. He came in and took a seat. Front desk people were handling paper work and one customer. Estimators were busy in another room. The guy waited for about 20 minutes and got up and drove off. Most people hate to wait, but even more than that, they hate to be ignored. I wasn’t a customer. I was there to make a sale so I didn’t mind waiting. But this guy was clearly a good potential customer and his business was lost because of an enormous sales error. The fact that this guy walked into the shop and wasn’t instantly turned off by an offensive smell, loud noise, or chaotic appearance so that he immediately turned around and left, means he was already half sold on using the shop’s services. When a potential customer walks into a shop, he or she is the end result of many possible marketing efforts. He or she might have been one of many who saw the shop’s advertising and was responding. Or he may have been referred by one of the shop’s prior customers. Or a dealership or insurance company could just have sent him. Or possibly he saw the shop’s signs and decided to come in. But whatever brought him to the door, he was the one who re-
sponded. Dozens of others who saw ads, signs or referrals didn’t come in. The fact that he did come in made him an incredibly valuable prospect. Losing that one customer wasted all of that marketing effort. And worse than that, since existing customers can be a shop’s best source of new business, all of the additional prospects this customer could have referred are also lost to the shop. There are three things people hate when it comes to contacting a business: inattention, waiting and interruptions. There is a difference between waiting and inattention. Waiting is generally a finite length of time defined by some observable element, like a line of people. The phone company will generally tell a caller how many calls are ahead, or how long the wait will be until one’s call is handled. Inattention feels like one is being ignored, as though they are not even there at all. The guy with the BMW got that impression. Shops should take a tip from doctor’s offices: When you come in, they hand you some forms to fill in. They may not tell you how long you will wait, but at least you know you’re in process. Many shops are already remiss in not getting customer information forms filled out to provide future marketing information. Someone coming into a shop should, at the very least, immediately be given a form to fill in.
CARSTAR Relocates Corporate Headquarters to Leawood, KS
Advance Auto Parts Gets New President, Michael Creedon
CARSTAR Auto Body Repair Experts has relocated its corporate headquarters as part of the company’s “aggressive growth plans.” Previously headquartered in Overland Park, KS, CARSTAR made the move to a new facility in Leawood, KS, on Nov. 25. “This move was a smart business decision as it allows our team to serve our stores and partners more efficiently and effectively,” said David Byers, CEO of CARSTAR. “This allows us to focus corporate resources on building and enhancing our business... and provides us the flexibility and capacity to continue to grow our network across North America.”
Advance Auto Parts, Inc. an aftermarket retailer of parts, batteries, accessories and maintenance items, announced today Michael Creedon will join Autopart International (AI) as President. Mr. Creedon will lead the Company’s efforts to deliver on its unique value proposition of premium parts and expert service. Additionally, Mr. Creedon will be responsible for growing the company profitably by focusing on the continued execution of that value proposition which is focused on the professional technician and Commercial business. He will continue to leverage the resources and synergies between Advance and AI to accelerate their profitability.
14 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
Some businesses have become aware of how much customers hate interruptions. In a clothing store, a sales lady is waiting on a customer when a rude shopper interrupts her sales presentation asking a question. A welltrained sales lady will immediately say, “You’ll have to wait a minute. My customer has priority here.” And that customer will be highly gratified by that courtesy, treated with the respect and dignity deserved by her being there first. A shop estimator who accepts phone calls and other interruptions while writing an estimate for a customer sitting there, risks alienating that customer and losing the sale. No matter how good a shop’s marketing may be, a customer who is unhappy with the sales process when actually in the shop never says to herself or himself, “I don’t like the way they’re handling me, but I liked the advertising and marketing so much I’ll stay here and give them my busi-
ness.” There are several phases to marketing, but the last phase may well be the most important of all. When a prospective customer comes in, or at least responds, this final phase of marketing begins. Assuming just because the prospect responded or came in means the sale is done, is a dangerous assumption. This is the time the real sale begins. Every effort has to be made to welcome the prospect and overcome any doubt or skepticism that he or she has come to the right place. In stores, prospective customers walk in and turn around and walk out all the time. Stores expect shoppers like these to come and go. But a collision center can’t afford to lose prospects that come in. The price of getting them this far is much too high and the loss of having them leave without buying is far too costly. No one comes in and buys just because they liked the advertising or marketing. They have to be sold.
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Historical Snapshot
—John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact him by email at jyoswick@SpiritOne.com.
January Retrospective: ASA Position, CAPA, CIC with John Yoswick
20 years ago in the collision repair industry (January 1994) The Automotive Service Association (ASA) Collision Division has developed a position paper to reiterate the fundamental rights of the collision repair facility when purchasing parts and materials. ASA’s position is that the collision repair facility retains the right to select and purchase parts and materials from the supplier of its choice without restrictions, limitations or control by other parties. The position was developed to help preserve and protect the rights of collision repair facilities as the industry phases in electronic date interchange, enhanced automation and electronic parts sourcing. These technology advances will benefit the industry. However, depending on how they are implemented, they could jeopardize the amount of control the collision repair facility has in the
parts, materials and vendor selection process. —From an ASA press release.
15 years ago in the collision repair industry (January 1999) Non-OEM fenders received equal or higher ratings than their OEM counterparts in the latest parts demonstration held at the Collision Industry Conference (CIC). “This is a very good day for CAPA,” Jack Gillis of the Certified Aftermarket Parts Association (CAPA) said, noting the difference in the outcome of the latest demonstration compared to one held last fall, which he had termed, “Not one of our better days.” Over the course of the meeting in Palm Springs, CA, two right fenders, one made by Ford and one made by non-OEM parts manufacturer Tong Yang, were installed on a 1996 Ford minivan. Nine out of 10 CIC participants, without know which part was
which, gave a “thumbs up” to both parts; both were given almost identical ratings in terms of fit, finish and “salability.” Similarly, two left fenders were hung on the vehicle during the meeting, and while neither part received high marks, the non-OEM fender made by Jui Li outshone the Ford fender, particularly in terms of fit. When asked, Could you sell it to your customer? 63 percent of CIC participants answered “yes” about the nonOEM part; less than half said they could sell the Ford replacement part. The demonstration, the third conducted at CIC recently, was the first “blind” test and the first to compare OEM replacement parts and nonOEM parts. All of the parts’ packaging and labels were removed or concealed from both the installing technician at a Palm Springs shop, and from the CIC participants rating the parts on a scale of 1 to 5.
California shop owner Kelly Roe, who organized the demonstration, said she purposely chose to replace non-adjacent panels rather than a hood and fender as in past demonstrations. “People in the past were saying the hood doesn’t fit because the fender is wrong, or the fender doesn’t fit because there’s a problem with the hood,” Roe said. “We were trying to get away from that sort of argument. We also were trying to do a blind test so we could get away from some of the perceptions created by people knowing what the parts were.” —As reported in Autobody News. CIC continued to conduct these parts demonstrations at several more of its meetings, with OEM parts generally outscoring non-OEM parts when judged by CIC participants. 10 years ago in the collision repair industry (January 2004)
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 15
took place. The MQVP certification program no longer exists, but a new certification program operated by NSF International, was launched in 2010.
Participants at the CIC meeting held in Palm Springs, CA, in January of 1999, evaluated OEM and non-OEM parts that were installed on a vehicle during the meeting
The Collision Industry Conference (CIC) halted its plans for an independent audit of the effectiveness of programs that purport to certify the quality of non-OEM parts. At two CIC meetings in 2003, the CIC Parts and Airbags Committee described its plans to ask such organizations as the Certified Automotive Parts Association (CAPA), the Manufacturer’s Qualification and Validation Program (MQVP) and parts distributor Keystone Automotive – each of which certifies or brands certain nonOEM parts as superior – to fund and participate in an independent audit by a qualified third-party. But participants at CIC in Palm Springs voted 40-6 (with at least an equal number not voting) to scrap the plan just days before it was set to launch. “There are several non-OEM parts entities in our industry that are telling us that they provide a superior part for ‘x’ reasons,” said Rod Enlow, co-chairman of the CIC Parts Committee, saying there is confusion about which programs’ parts are actually comparable to OEM.
But opponents to the plan said the resulting report could be perceived as a CIC endorsement or indictment of one or more of the programs. “There’s no reason that CAPA, MQVP, Keystone or whoever wants to participate can’t do exactly what you’re saying [without CIC’s involvement],” Rick Sherwood, owner of the Detroitbased consulting firm OEM Collision Repair Resources, said at CIC in Palm Springs. “My concern is CIC is going to be in the position at the end of the audit of having MQVP, CAPA and Keystone or whoever participates saying, ‘The CIC audit process proved we deliver quality parts...’ CIC is not in a position to have that happen.” For his part, Enlow said he hopes the committee’s efforts will result in an audit even without CIC’s involvement. “If not, it’s going to put to us right back to square one, where you read the rhetoric, you go to the websites, you make your decision on who makes good parts and you use them,” he said. – As reported in CRASH Network (www.CrashNetwork.com), January 18, 2004. No such audit ever
Quality Parts Coalition Releases Educational Video
The Quality Auto Parts Coalition (QPC) has released an easy-to-follow, animated video aimed to educate American consumers about the auto repair parts industry. As part of the "Keep Auto Parts Affordable" campaign, the video discusses how original equipment manufacturers attempt to persuade consumers to buy their exclusive parts and discourage consumers from using automotive aftermarket parts.
The video states that it is unfair for consumers to pay more for auto parts than necessary, and highlights the current debate in Congress on design patents for collision repair parts. The bipartisan Promoting Automotive Repair, Trade and Sales (PARTS) Act would reduce the period during which car companies can enforce their U.S. design patents on collision repair parts against alternative suppliers from 14 years to 2.5 years.
16 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
sided,” Avery said, and it has been changed to say that both the shop and State Farm will each “hold the other party fully harmless against any lost, damages, claims or expenses” sustained as a result of negligent or intentional acts or omissions of the other. Several changes that Avery did not discuss at CIC revolve around parts and pricing. The term “prevailing competitive price” no longer appears in the document, a change Avery later said the insurer made because it felt that was term that might not be clear to some repairers. Instead, the agreement only references “pricing identified through State Farm’s survey process.” As in the previous agreement, State Farm says it may enter into agreements with manufacturers, distributors and suppliers of automotive parts. The new agreement states that “any part pricing agreements negotiated by State Farm are in addition to the price offered” by the shop and that “State Farm shall receive the benefit of both” the shop’s offered pricing and “the price or discount negotiated through any part pricing agreements” with manufacturers or suppliers. —As reported in Autobody News.
5 years ago in the collision repair industry (January 2009) In the same week in January the Collision Industry Conference (CIC) was held in Scottsdale, AZ, State Farm distributed a new Select Service agreement to participating shops nationwide, and the company’s George Avery spent several minutes at CIC to discuss the new agreement. He described the changes as primarily “minor” or “editorial,” and that unlike the transition from State Farm’s “Service First” to “Select Service” program, the change in the agreement was not coinciding with a reduction in the number of shops participating in the program. Wording in the agreement has been changed, he said, to give shops the option of conducting a more thorough tear-down of a vehicle before uploading an initial estimate (provided adequate photos are taken in advance). The indemnification section of the agreement had been “too one-
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Media Matters
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
For Body/Paint Tech Keenan Hons Life is Reality TV on Fast ‘N Loud with Ed Attanasio
Twenty-six years old and already a reality TV show star? For Body/Paint Tech Keenan Hons, his 15 minutes of fame happened fast and randomly. One day, he was working at a body shop and the next day he was on Fast ‘N Loud (Discovery Channel), a hit reality show starring motor mastermind Richard Rawlings and mechanical prodigy Aaron Kaufmann, as they search up and down through Texas and surrounding states for forgotten and derelict classic cars to buy and restore at their Gas Monkey Garage in Dallas, TX. In each episode, Richard, Aaron and his crew work day and night to finish a classic car and deliver it to auctions with the goal of making money and turning heads. But the same question seems to come up every time they do a build—will their blood, sweat and beers translate into cold hard cash? Each episode starts when Richard wheels and deals for a good price on a vehicle, and then it’s back to the Gas Monkey Garage to come up with the design plan and begin the major teardown. Then, the major work (and all of the fun and confusion) begins. It’s always a race against the clock to Keenan Hons, 26, get these cars finwent from a ished because time body/paint tech to reality show star lit- is money at Gas erally overnight, Monkey Garage when he landed a and the faster they job on Fast ‘N Loud finish their cars, the (Discovery Channel) quicker they can get them to auction. That’s the basic premise of Fast ‘N Loud, a show that has gained in popularity and was recently picked up for its third season. For Hons, he might as well call the show Fast ‘N Unexpected, Fast ‘N Radom or surely Fast Money, because Keenan works full-time at the Gas Monkey Garage and gets paid twice— as a body tech restoring some of the finest cars in the world and as a reality star as well. Not bad for a guy who just turned 26. We sat down with Keenan recently to discuss his role on the show and how it has changed his life.
Q: You’re not listed on Wikipedia yet? Every reality star gets their own Wikipedia page. A: Maybe I should write one? Q: If the show keeps getting good ratings, they’ll get someone to do it for you (both laugh). A: That’ll be fun. Q: Tell us how it all happened from being a barely paid body/paint tech to a reality star? A: I started going to my local community college Tarrant Community College (TCC) in Fort Worth, TX to study paint and body right out of high school. I’ve always been a car guy and my best friend Kenny and I would work on cars all the time. We both decided to go to school to study paint and body, but he died in a motorcycle accident shortly after moving to Fort Worth. I went through their whole collision repair program—taking body classes the first year and paint the second year. I always liked the paint side of the business, but I realized you have to do the body work first, so I did the body [training] first, but my heart was in paint. When I went to Fort Worth to attend school about seven years ago, I moved into a house that was just two blocks away from KC Mathieu’s house. (KC is the painter on Fast ‘N Loud) I noticed he had a few hot rods out front, so one day I just went over there and started talking to him. It was a total coincidence that he’s a painter and I was studying paint in school at that time. Once I got to know KC, I saw that he was always working on something interesting, either at his place or at his dad’s shop, so I began going over there to make a little money on the side. After that, KC opened up his own shop and there was more work for me to do. Q: At that time, Fast ‘N Loud was still not in the picture, correct? A: Yes, the whole thing was so random. KC and I would joke all the time saying we should have our own reality show, but we never even suspected it would come to this. I worked with KC for almost two years at KC’s Paint Shop after getting out of school. After a while, KC wanted to get away from the shop and pursue other things,
18 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
so I got a job as an assistant manager at a MAACO location. I did that for almost a year and it was a very fastpaced environment and then later I got a job at Richards Paint & Body Shop. KC and I worked there together and we were still doing work on the side. KC left Richards and I kept working
the scenes. Finally, they put me on for the final show of the first season (The Apache episode). That was really exciting! Q: You had never been on TV before? A: No. At first, seeing myself on TV was strange, but now I’m used to it and it feels normal. I think everyone on the show was shocked when it started getting great ratings. When I gave two weeks notice and quit my job at Richards, I figured I would give this reality show thing a threemonth shot. The failure rate of reality shows is very high, but right off the bat this show Hons is always right in the middle of all the craziness was a hit. The numbers just featured on Fast ‘N Loud kept climbing and the buzz about the show started to build. This there and doing side jobs for KC. is something big, I thought. I don’t Then, he got on the show and I started have to go back to fixing cars—at prepping cars for the first season of least for now. Fast ‘N Loud off-camera and behind
Q: I’ve heard there’s no reality in reality television, is that true? A: Not on Fast ‘N Loud. Everything we do is real and nothing is fake, but in certain cases we’ll do something and they won’t’ get it on film, so we have to reenact if for the camera. The camera crew has us re-do it, but it’s not like we’re making it up. It’s definitely reality, but it might be shown in a different order from what it actually took place. Q: The two main stars of the show are Richard Rawlings and Aaron Kaufman and they seem like a formidable duo. Rawlings finds the cars and Kaufman manages the restoration and they get into some heated discussions. What’s your relationship with Richard and Aaron? A: Let’s put it this way—Richard enjoys his life and frankly, I can’t keep up with him! The older ladies are in love with him and it cracks me up. If you look at the show’s Facebook page, you can see he’s got quite a following. Aaron is very meticulous about the cars and they seem to work well together. The biggest arguments they’ve gotten into revolve around time and money, of course. Aaron wants the best build he can and
Richard is always watching the time. Both Richard and Aaron act the same on-screen and off-screen. Both of them have a lot going on, so it can get crazy at the shop. Flipping these classic cars is a crapshoot, and you can see that they don’t always make money. Now with the popularity of the show, we’re getting trade-offs with the cars from companies that are sponsoring the builds, so the risk is not as much as it was during season one. It helps making the build less risky, but it still is a gamble every time we do a car. Q: Has the show changed your feelings about collision repair? A: Yes, definitely. Meeting KC and getting on Fast ‘N Loud really got me excited about collision repair and painting cars, because for a while there I was seriously thinking of getting out of it. I was planning to go back to school and study computer science, honestly, but the experience of being on a show like this re-ignited my passion for this industry. And the rest is history.
Tennesee Body Shop Gets Favorable Ruling in Suit Against Progressive Insurance A federal judge has denied Progressive’s motion to dismiss Price’s Collision Center’s tortious interference with a business relationship and breach of contract claims, which challenge improper insurance company steering and underpayment of claims. In 2011, Price’s Collision Center of Brentwood, TN, filed a lawsuit stemming from Progressive’s alleged failure to provide fair and reasonable consideration for necessary procedures, parts and materials that Price’s provided in the repair of Progressive’s policyholders’ vehicles. The lawsuit challenged specific incidences of underpayment by the insurer as well as the insurer’s improper steering of customers away from Price’s to favored shops. Initially filed in state court in Williamson County, TN, on behalf of itself, Price’s Collision Centers, LLC and certain Progressive policyholders, the lawsuit has moved to Federal Court where, on Oct. 28, 2013, the judge denied Progressive’s motion to dismiss and ordered that Price’s claims for breach of contract and tortious interference proceed toward trial.
“This may be the best thing that could have happened for our industry; being at the Federal level may help set some really meaningful legal precedent that is highly beneficial to our industry,” said Bobby Price, founder and president of Price’s Collision Centers. “The issues that we at Price’s Collision and other quality repairers are facing are not local, or even regional; these issues are being experienced by quality-minded repairers across the entire country. We have extensive documentation and statements from our customers that go back for some time, and we are prepared to see this through.” Price’s Collision Center’s, LLC currently own and operates six fullservice collision center locations in and around Nashville, Tenn., including one in Bowling Green, KY.
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the firm, thanks in part to investment capital from insurance companies and private equity funds. Ohrnstein went on to be involved in many of Matt Ohrnstein the shop mergers and acquisitions in the industry after he left Caliber in 2004.
Continued from Cover
A Look Back
tion of standards. He said CIC, by its published mission statement, is solely a forum where “industry stakeholders come together to discuss issues, build broad understanding, find common ground and communicate…findings and possible solutions.” “We’re not going to saw sawdust any more with the topic,” Avery said. “Because CIC comes up to a point and stops. Then if companies want to take it from there and create inspections and verifications and programs, that’s for them to figure out and offer to the repair industry. That’s someone else’s bailiwick.”
June Ten years after the Auto Body Association of Connecticut (ABAC) filed a class action lawsuit against The Hartford, a Connecticut Superior Court judge awarded them $20 million in punitive damages. This was in addition to the $14.7 million in compensatory damages a jury in the lawsuit awarded the repairers (about 1,500 are represented in the class) in 2009. The suit charged that The Hartford suppressed labor rates by using unfair and deceptive trade practices to steer customers to its DRP shops, and by pressuring appraisers to enforce artificially low labor rates. “The court has placed the entire (insurance) industry on notice that forcing their appraisers to violate the
May A memorial service was held in early May for Matthew Ohrnstein, managing director of the Symphony Advisors consulting firm and the former CEO of Caliber Collision Centers, who died at age 57. Ohrnstein pioneered consolidation and the entry of Wall Street investment in the collision repair industry, adding 68 Caliber shops during his 7-year tenure with
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code of ethics by writing estimates at unreasonably low labor rates must stop,” attorney David Slossberg, who represented the repairers in the case, said. The Hartford is appealing the ruling. The ABAC has a similar lawsuit pending against Progressive.
July Despite a last-ditch effort by insurers calling for a veto, Rhode Island Gov. Lincoln Chafee signed into law unique legislation that requires a vehicle-owner’s written consent before a vehicle is declared a total loss if the cost of repairs is less than 75 percent of its value. Rhode Island shop owner John Petrarca had this advice for shops working on legislation in their own states. “You have to get engaged and stick with it. Nothing gets done in a day,” Petrarca said. “We had so many disappointments so many times. But you know what? We picked ourselves up, we got back in there, we kept informing. I believe the only way we can correct our industry is through legislation. Because the other side will absolutely do nothing unless you have
legislation.”
August PartsTrader last summer began eliminating the “fax-only” option which had allowed shops to use the system to buy from vendors not participating in PartsTrader. Also in August, the Mississippi Collision Repair Association and more than two dozen body shops, dealers and other parts suppliers in that state filed suit in an effort to prevent State Farm’s mandated use of PartsTrader. The suit alleges that State Farm’s implementation of PartsTrader tortiously interferes with existing business relationships shops have with their parts vendors. September State Farm’s PartsTrader mandate also led to actions by both ASA and SCRS last fall. SCRS issued a new position statement, condemning insurer mandates, “particularly those that specify required vendors, business platforms or internal processes that must be followed.” And ASA’s Risley sent a letter to State Farm saying the association is “taking a firm stance against insurance company mandates that limit a
repairer’s right to choose their vendors, distributors and suppliers.” Risley wrote that State Farm’s mandated use of a vendor “that solely financially benefits State Farm is more dictatorship than partnership.”
October ASA then went a step further and sent a letter to state insurance regulators and attorneys general, asking if State Farm’s mandate to use PartsTrader violates state law. “We believe this mandatory parts procurement program stifles competition and harms both the consumer and the small businessperson,” Risley said.
November A year after Toyota introduced the concept of “predictive estimating,” the automaker announced a partnership with Mitchell International to deliver Toyota recommended procedures and bulletins within Mitchell’s new mobile/online estimating system in early 2014. When a user adds a part to an estimate, all of the appropriate Toyota vehicle information will automatically appear, including related Toyota bulletins or procedures and information on such things as one-time use fasteners.
Toyota’s Rick Leos said he expects other automakers to make similar announcements in 2014.
December The Automotive Body Parts Association (ABPA) last month filed suit against Ford Motor Company, challenging the validity of the automaker’s design patents on collision repair parts. The suit alleges that Ford “uses design patents on automotive body repair parts to limit their distribution and increase cost of the repair parts.” In 2009, Ford settled two of the legal battles it waged to protect its design patents through an agreement making LKQ Corporation the only distributor allowed to sell certain nonOEM parts for Ford vehicles. In exchange, LKQ paid a royalty fee for each of the parts it sold, and agreed not to challenge the validity of Ford’s design patents.
John Yoswick is a freelance writer and has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (visit www.CrashNetwork. com). He can be contacted by email at: jyoswick@SpiritOne.com.
CARSTAR Corporate Warns on Estimating in PartsTrader
CARSTAR Corporate recently alerted its network shops of an issue with PartsTrader in which labor times for body and refinish are being removed from State Farm estimates after the estimates have been run through and received back from PartsTrader. The note reads as follows: Recently, it has come to our attention through feedback from our Insurance Relations Committee, our Ohio ADO and other stores in the Midwest markets that there is an ongoing issue with State Farm and the PartsTrader parts supply process. Stores are reporting labor times for body and refinish are being removed from State Farm estimates AFTER the estimate has been run through and received back from PartsTrader. Please be sure your repair facility and estimators are double-checking the labor times on all estimates run through PartsTrader. If the labor times have been removed, they will need to be re-added to the estimate. Both State Farm and PartsTrader are aware of the issue and are working on the fix. That fix is scheduled for Q1 2014. Until the fix is tested and in place, it is vital to doublecheck all estimates for proper labor times. The insurance team is closely monitoring the situation and is talking regularly with the management teams at both PartsTrader and State Farm.
PartsTrader Response to CARSTAR Estimating Issue
After CARSTAR recently alerted its franchisees to an estimating issue with PartsTrader, PartsTrader has clarified why the problem exists. PartsTrader’s statement: PartsTrader’s current interfaces with the estimating systems handle two types of estimating data: recognized data and unrecognized data. When data is recognized by the estimating systems—data like specific part numbers, procedures, part types, etc.—the current interfaces place that data exactly where and how the estimator expects it to be in the estimate. However, if a shop estimator manually enters parts in the estimate that are not recognized by the estimating system, or if a parts supplier provides part information back to the estimator that is not recognized by the estimating system, then the current PartsTrader interfaces place those items at the bottom of the estimate so that an estimator can review the unrecognized data before completing the estimate. Such scenarios primarily relate to assemblies. It is precisely for the reasons shared by CARSTAR that these items are not placed back in the middle of the estimate where they may be overlooked, but rather they are highlighted for further review by the estimator.
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Northeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
LIABRA’s Membership Approaches 500 Shops, Repairing 250,000 Vehicles Annually Since the mid-1970s, the Long Island Auto Body Repairmen’s Association (LIABRA) has been devoted to serving one of the busiest motoring regions in the country. Serving Nassau, Suffolk and a portion of Queens counties, LIABRA maintains a finger on the pulse of the industry, monitoring technological advances, educational requirements and legislative initiatives in order to disseminate this important information to their member base. The association was formed when several collision shops recognized the need to acquire additional knowledge and establish awareness of the industry’s concerns in their state capitol. To achieve this, they gathered a group to speak with one voice and started holding general meetings to gauge interest until they were able to formally charter the association in 1975. What began as a small collection of shops quickly grew to approximately 100 members by the early 1980s when current Executive Director Ed Kizenberger took over. In subsequent decades, LIABRA’s membership has grown to around 500 shops that repair, on average, a quarter million vehicles annually.
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Comprised of collision repair professionals devoted to the advancement of the industry, LIABRA’s mission is “to create an environment of professionalism, respect, accountability, excellence, enthusiasm and the ability to collect fair and reasonable compensation for collision repairers who properly restore vehicles to their pre-loss condition. We will achieve this through con-
sumer advocacy, education, legislation and communication.” In order to propagate this mission, the association has developed the following four aims: to develop organizational framework in order to give all members, including the smallest shop of the association, fair representation in the successful pursuit of its business interests; to develop an exchange of information and ideas beneficial to shop owners; to unify body shops and develop a code of ethics; and to take appropriate action in an effort to discontinue any unethical practices to which we, as an industry, are subjected. LIABRA’s current goals focus on continuing to represent their members and to provide fair representation in all aspects of their businesses. They also strive to distribute necessary information and to serve as a resource for members with questions about various aspects of the industry. Kizenberger believes that LIABRA’s role as a resource for members is one of the most important services they provide. “It is invaluable for us to be able to discuss problems with our peers and share our experience so that we can stay connected and work together on resolving problems. As individual shops, it is easy to identify problems, but it’s difficult to find solutions unless you work together —LIABRA provides a forum for working together.” In addition to collaborating with other businesses within the industry, LIABRA feels it is imperative to combat outside interference that seeks to gain control of the collision repair industry. According to Kizenberger, “we need to prevent outside entities from dictating our practices. Our goal is to safely repair the car, so they need to allow us to do our job of utilizing training, equipment and knowledge to safely repair our customers’ vehicles.” In fact, Kizenberger believes this interaction with insurers is one of the largest challenges facing the industry, along with keeping current with changing technology, understanding how the marketplace is evolving and deciphering how both of these will impact the frequency of accidents. He believes these problems can be overcome by promoting greater understanding
22 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
Flo Pratt and Jackie from Competition Infiniti greet members at the door with raffle prizes
LIABRA constantly interacts with government regulators to encourage an exchange of information and ideas which will be beneficial to shop owners. They were instrumental in establishing an industry code of ethics, and they continue to develop consumer protection legislation to ensure the highest quality and safety standards in the collision repair industry. The association is currently working on their legislative agenda for 2014 which will include their Annual Lobby Day visit to the state capitol on April 29, 2014. The 2014 legislative agenda includes three proposed legislative acts thus far. The first is a Free Market Protection/Fair Claims Bill which addresses anti-steering issues and price caps, plus it defines what constitutes unfair claims practices. The proposed bill also includes support for the Right to Choose and is written to benefit the consumer, as well as the collision repair industry. Because of their strong beliefs about insurer-mandated parts procurement programs, LIABRA has also proposed the Parts Procurement Bill, legislation prohibiting insurers from requiring shops to use specific vendors, and they have acquired
throughout the industry. Ways to acquire this understanding include attending training seminars, such as the BMW seminar presented at LIABRA’s meeting on November 19, 2013, and becoming more involved with trade associations which can present these concerns to legislators. LIABRA’s view of insurer influence has led to their distaste for PartsTrader. Kizenberger explains, “we are adamantly opposed to any outside entity specifying the vendors, processes and so forth that collision repair professionals use. We feel that it is direct tortious interference which absolutely erodes the freedom of business and the open market concept that America was built on. Any influence based on pricing could result in an inferior repair, plus programs like PartsTrader interfere with the business relationships LIABRA members enjoy dinner and conversation that shops have developed with vendors strong sponsorship for their proposed over many years. It definitely affects the bill. Their other proposed legislation pertains to the proper installation of market in a negative way.” Regarding Right to Repair, Kizen- glass as they urge their state legislaberger believes that repair documen- tors to align New York’s standards to tation “should not be proprietary be consistent with federal safety staninformation. Consumers should have dards. LIABRA also continues to work access to information about how to rewith various agencies regarding labor pair their vehicles, and the industry as rate issues. The association has nearly a whole needs access in order to safely completed their yearly Labor Rate repair those vehicles. Manufacturers should release documentation in a Survey, and they intend to publish the timely manner; it benefits no one but results in the next issue of their See LIABRA, Page 31 them to retain a monopoly.”
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 23
Sherwin-Williams Automotive Finishes Hosts A-Plus Network Vision Groups Conference
by Alicia Basteri
Over 120 Sherwin-Williams® Automotive Finishes A-Plus™ Network members—representing both dealerships and independent collision centers from Canada and the US—attended the annual North America A-Plus Network Vision Groups conference at the La Quinta Resort & Club in Palm Springs, CA, from December 11–13, 2013. Attendees started the conference on Wednesday, December 11, 2013, with a golf outing at the PGA WEST Greg Norman course, followed by a welcome reception at the La Quinta Resort & Club. On Thursday, December 12, 2013, Tom Hablitzel, president and general manager at Sherwin-Williams Automotive Finishes, Troy Neuerburg, director of sales and excellence at Sherwin-Williams Automotive FinTom Hablitzel ishes, and Elainna Sachire, president at Square One Systems, Inc., welcomed attendees and in-
troduced the conference theme: It comes from within. Building on that theme, John Lusardi of The Ken Blanchard Companies delivJohn Lusardi ered his interactive keynote presentation about activating optimal motivation to achieve and sustain high performance in the workplace. Following lunch, Ted Matthews of Instinct Brand Equity gave every attendee a copy of his book, Brand: It Ain’t the Logo, and delivered a special presentation about how to foster your brand—or what people think of Ted Matthews your company. Further tying into the conference theme, Thursday ended with a roundtable discussion about “owning the customer” by managers of business consulting at Sherwin-Williams Automotive Finishes—David Dewalt, Steven Feltovich, Lee Rush, and Ted
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Williams—and founder and CEO at dustry standards. The mission of the Collex Collision Experts, John A-Plus Network Vision Groups is to Gagliano. The roundtable discussion facilitate the business success of all was moderated by manager of global members through teamwork, adaptOEM and business consulting services at Sherwin-Williams Automotive Finishes, Rodes Brown. Key takeaways from the discussion included the importance of hiring the right employees, training employees properly, implementing and following a process, measuring results, committing for the (l to r) Rodes Brown, David Dewalt, Steven Feltovich, long-term, and providing John Gagliano, Lee Rush, and Ted Williams leadership. The roundtable discussion was followed by a dinner ability, and innovation. Administered reception. and moderated by Square One SysWrapping up the conference on tems, the A-Plus Network Vision Friday, December 13, 2013, attendees Groups focus on the latest industry participated in a series of individual trends, topics, and strategies in operagroup breakout sessions that focused tions, sales, and marketing. To learn on composite review and 2014 busi- more about Sherwin-Williams Autoness planning. motive Finishes A-Plus Network ViThe Sherwin-Williams Automo- sion Groups, visit: tive Finishes A-Plus Network is an ex- http://www.sherwin-automotive.com/ clusive group of collision repair customer-programs-services/a-plusspecialists who reflect the highest in- network/vision-groups/.
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 25
Northeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ABAC Member Meeting Covers Technology from BMW with Chasidy Rae Sisk
On the evening of Tuesday, November 12, the Auto Body Association of Connecticut (ABAC) hosted a members’ meeting at the Country House Restaurant in East Haven, CT. The majority of the evening was filled with useful information provided Jeanette Remington by BMW through the efforts of John Musco, Parts Manager for BMW of Bridgeport. Due to the vast amount of knowledge being disseminated, ABAC President Tony Ferraiolo postponed the usual formalities at the beginning of the meeting in order to lead with BMW’s presentation. After being introduced, Jeanette Remington, Regional Aftersales Development Manager and Eastern Region for BMW, expressed gratitude to those present for attending the meeting, as
well as for their loyalty and support to BMW. Remington introduced the rest of her team from BMW: Andy Perna, Eastern Regional Manager–Wholesale Body & Paint; Melissa Costa, Brand Protection Manager; Kenny
Melissa Costa & David Brooks
Tran, Body & Paint Technical Business Specialist; and David Brooks, BMW Chemical Sales Manager.
26 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
BMW’s presentation began with Tran who covered Advanced Technologies, including material of construction and joining processes, driver assisted systems, what’s needed to repair a damaged BMW vehicle, and the future of BMW vehicles. Tran’s detailed information provided a plethora of knowledge for attendees to use in their daily businesses. Next, Costa discussed the three main protections of branding: the customer, the brand, and the economy. Costa’s job is to look for imitation parts claiming to be original BMW parts when they aren’t, and she showed attendees how to identify the differences in quality between original and counterfeit airbags as an example, stressing that the variances could determine whether a collision results in survivors
or fatalities. Brooks followed with up-to-date information on BMW chemicals, explaining why original BMW chemicals should be used. His reasons follow: exceptional customer service and technical support from BMW of Bridgeport, BMW chemicals are recommended and approved for BMW repair procedures, BMW Andy Perna chemicals qualify for BMW rewards points, and BMW chemicals are developed, tested and approved for use on all BMW vehicles. Concluding BMW’s presentation, Pern directed attendees to the binders provided by BMW of Bridgeport which contained valuable information from the manufacturer. Pern also discussed the specials and pro-
motions offered by BMW of Bridgeport, such as BMW Rewards. ABAC expressed gratitude to Musco and the entire BMW team for taking time to share much needed information with their members and for their continuing support and dediKenny Tran cation to the collision repair industry. Ferraiolo next introduced Dan Thibault, Transportation Technology Intern for the CT Technical High School Systems, who spoke about the collision repair programs offered at local tech schools. Dan Thibault ABAC has posted
a list of technical schools in their area for anyone who is interested, and any shop owners seeking an entry-level technician for their shop can contact Ferraiolo who will put them in contact with Thibault. Moving on to ABAC business, Ferraiolo provided an update on the Hartford Lawsuit, mentioned the association’s survey which will be distributed in ABAC’s upcoming newsletter, and encouraged members to complete and submit ABAC’s paint and material survey. The evening concluded with a raffle for prizes, donated by BMW of Bridgeport and Balise Auto Group. For additional information about ABAC, their surveys or their affiliation with local technical high school’s collision repair training programs, contact Tony Ferraiolo at 203-2692842.
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SEMA Issues ‘Black Book’ to Clarify Federal and State Emissions Compliance Requirements Over the years, SEMA has received many requests from members seeking information about federal and state emissions compliance requirements. To assist these members in understanding the requirements and to identify ways to minimize both cost and time in reaching compliance status, SEMA has collected information that addresses these issues in a very userfriendly way. The “Black Book” is a summary of documents and steps involved in obtaining emissions-related parts compliance. This information is available free to any SEMA member and can be found on the SEMA website in the “Government Affairs” section. Members should note that obtaining emissions compliance status in California, based on the requirements of the California Air Resources Board (CARB), also satisfies the requirements of the Federal Clean Air Act. As a result, emissions-related parts that become legal for sale in California are legal for sale in all other states. Compliance is based on securing a CARB Executive Order (EO) based on test data demonstrating that a vehicle will continue to comply with
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emissions standards when an aftermarket add-on product is installed. Furthermore, no emissions-related parts may be legitimately labeled “49state legal” if a recognized testing process has not been undertaken. The U.S. Environmental Protection Agency (EPA) has a requirement (Memorandum 1A), which states that manufacturers have a reasonable basis for concluding their products do not adversely affect the emissions of the vehicles on which they are to be installed. Currently, the EPA recognizes a CARB EO as meeting the required “reasonable basis.” An alternative method for demonstrating a reasonable basis for EPA recognition of a 49-state claim would be testing to the Federal Test Procedure, including durability tests. SEMA also provides assistance to its members through SEMA Technical Consultant Jim McFarland, who is available to help member companies obtain compliance for their products. In addition, the newly created SEMA Garage is available for reduced-cost evaluation of emissions-related parts, including both developmental and certification testing.
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Team PRP Wants to Know What Body Shops Need from Recyclers with Ed Attanasio
At their recent Team PRP (Premium Recycled Parts) Midterm Training and Sales Conference held at the Crowne Plaza Galleria Hotel in Dallas, TX, more than 200 automotive recyclers were on hand to discuss issues such as warranties, sales, the state of the recycling industry as a whole and how they can best serve the collision industry better and more effectively.
Darren Huggins, the Collision Director for the Van Tuyl Auto Group answered this main question during his presentation at Team PRP’s Midterm Training and Sales Conference: “What Do Body Shops Want and Need from Parts Recyclers?”
And that’s why Team PRP invited Darren Huggins, the Collision Director for the Van Tuyl Auto Group, an organization that operates 37 collision centers located at auto dealerships nationwide. The main question posed to Huggins was “What Do Body Shops Want and Need from Parts Recyclers?” The discussion was moderated by Stacy Bartnik, Team PRP’s executive director and a 24year veteran of the collision industry. The purpose of the presentation was to start a dialog between Team PRP’s recyclers and a company that uses a wide range of recycled parts, and that’s why Bartnik was pleased to get Huggins at the organization’s conference. “Darren is straight forward, so I knew we’d get the truth, without a lot of posturing,” Bartnik explained. “By picking his brain and accessing all of his knowledge and experience, our members were able to learn a lot from his perspective. We truly appreciate him taking the time to attend our conference and answer all our questions.” In brief, Huggins cited the three things every body shop in the country wants from any parts supplier, let alone a recycler. “It comes down to
timely delivery, quality and warranty,” Huggins said. “Honest, transparency and follow-through are what we want and expect on each and every order. It comes down to common sense, but to implement these things on a consistent basis, that’s the challenge. It’s all about performance and in the end you’re only as good as your last delivery.” Honesty and taking responsibility for the entire process from the moment the phone rings to when the part is installed is essential, because every misstep or unfulfilled promise can greatly affect the daily life of a body shop. “Just tell us the facts and don’t mislead us, is all we ask,” Huggins said. “If you don’t have the part—tell us. If your delivery is going to be late—just tell us. If you say three days or less, we expect three days or less. Things come up and we’re aware of that. But, when there’s no communication, that’s when the problems begin.” Shops are always under the gun and being judged by their insurance partners, so parts that fit the bill and fit the car are more vital than ever, Huggins said. “Cycle times are everything now, so if you’re going to slow me down because I can’t get a particular part when my tech is ready to install it, now we have problems. Customer Service Indexes are gospel now, and if a late delivery is preventing me from doing a good job, it’s not good.” In the end, Huggins said it’s all about performance and accountability. “Do whatever it takes, because all that matters. Step up and think about the customer first and you’ll get a ton of business from the collision industry. We’re a loyal group, so if you get it done and build a good rapport with us, we’ll look to you for more and more parts. It’s like any vendor-client relationship—trust builds over time and if you can show consistency and establish a good track record—you’re in!” When it comes to the condition and the overall quality of any part, Huggins said fit and form are paramount. “If you’re sending me a dirty part and I have to clean it, that’s a red flag. If you say it’s going to fit and it doesn’t, there’s another red flag. If we
28 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
need an entire assembly and not all of the parts (like clips for instance) are there, that’s flag #3. Having the knowledge to know the cars and the parts required is a big deal. Our collision centers work on literally hundreds of different vehicles every month, so the recycler need s to know the parts that they sell and what cars they go on. Our people are very knowledgeable, but in the end it’s on you.” The Van Tuyl Auto Group purchases recycled parts on many of its repairs and respects the value of an organization such as Team PRP. “We use a ton of recycled parts and we try to source as many as we can,” Huggins said. “We normally get three quotes for parts, comparing the OE vs. the aftermarket vs. the recyclers, and in the end we usually come up with a mix. We’ve built great relationships with Team PRP recyclers over the years and I have firsthand experience working with American Auto Salvage
here in Dallas. Team PRP is a worldclass organization and we’re happy to be working with them. We’re all about strategic partnerships, because we know we can’t do it all on our own.” Team PRP was formed when a small group of auto parts recyclers from Texas, Arizona and Minnesota in 2000, for the purpose of strengthening their role in the market and providing a series of warranties and other assurances body shops can take advantage of and benefit from. After starting with just 16 locations, Team PRP now consists of 134 independently-owned recyclers, covering every state in the Union and maintaining a combined inventory of approximately five million parts, with 60 percent consisting of collision parts. Each member of the team has been added over the years by invitation-only, after adhering to a stringent series of requirements and illustrating its ability to follow the group’s precepts.
Northeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
AASP-MA Meeting Addresses Auto Damage Appraiser Licensing with Chasidy Rae Sisk
On Tuesday, November 19, the Southeast Chapter of AASP-MA held a meeting at the Holiday Inn located at 700 Myles Standish Blvd in Taunton, MA. According to Executive Director, Jillian Zywien, “this was the first Southeast Chapter meeting since April, and it was a great success!” During the meeting, the two key topics were AASP-MA’s new strategy for addressing problems with the Auto Damage Appraiser Licensing Board and the association’s recent improvements to their communication with members. Zywien said, “the Board of Directors recently approved an aggressive strategy to bring issues before the Auto Damage Appraiser Licensing Board (ADALB) and get written opinions regarding practices which are outside of the regulatory requirements. We are working to create an ADALB complaint form available to member shops only. The form will
meet the requirements of the regulations, and it is designed to assist with developing the needed data to file a complaint and resolve global issues faced by the industry as a whole. The association will submit the complaint to the Board on behalf of the industry, rather than filing as individual shops. The association understands the wrongs that are committed by insurance companies every day, and we must work together to right these wrongs. Please look to our website and newsletter to find out more about these initiatives. “The association also presented on our improved communication to our members. We have completely remodeled our website, which features a ‘join now’ button, Board of Directors’ bios, and my favorite, our blog. With convenience in mind, we have added online registration for Chapter and Statewide meetings and now send your newsletter directly to
your preferred method of contact, whether fax or email. Finally, we have increased our social media presence. Please join our LinkedIn Group, follow us on Twitter, and like us on Facebook.” Over 30 attendees, mostly shop owners, were present at the meeting. Future meetings of AASP-MA’s Southeast Chapter will also be held at the Taunton Holiday Inn, and schedules and updates will be posted to the association’s website. Zywien appreciates the contributions of those who helped make the meeting a success. “Thank you to Don Cushing of Bald Hill for sponsoring the event. AASP-MA and the Board of Directors are excited to reinvigorate all of our state Chapters. We look forward to visiting the Western Chapter on December 11 and the Northeast Chapter in February 2014.” AASP-MA is also working on improving the benefits offered to
members. According to Zywien, “we have met with several companies that can offer excellent services to our members, including search engine optimization and website design, shop apparel and uniforms, health benefits, and much more. We plan to roll out some of these tremendous benefit programs at the beginning of 2014. All offerings are designed to save you money and better your business environment. We encourage members and vendors to contact the association if you have ideas on how the association can assist your business. We take your requests seriously and execute improvements needed to deliver more for your dues dollars.”
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Inside Insurance with The Insurance Insider
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
Saying That Insurers Force Shops To Repair Cars Improperly is Nothing More Than ‘Crying Wolf’ Shops repair vehicles and insurance companies reimburse insureds for their loss. That is a simple explanation as to what happens after an accident. So how is it possible that something so simple can be so confusing, challenging and rife with accusations of impropriety?
pair shops actually know how to do a proper and safe repair. I would challenge any shop in the United States to produce ONE single example of an insurance company refusing to pay for the proper repair or replacement of a safety related component or structural repair. If you do have an ex-
After the most recent series of industry meetings, rants, press releases and whining sessions about insurance companies forcing shops to repair cars improperly, I offer you two words: get real. This is the most pathetic, unsubstantiated claim I’ve ever heard. My compadres in the insurance industry are equally fed up with this biased, unprofessional and unfounded allegation. There’s been more crying and sniffling than you would hear in most nurseries and daycares across the country. I’m inclined to start producing “No Crying” buttons to be passed out at the industry’s next event. In the movie, “A League of Their Own,” Tom Hanks’ character said ‘there’s no crying in baseball.’ I am here to say that there is ‘no crying in the collision industry.’ If you are not familiar with the crying that I’m talking about, let me explain. Some collision repair shops are trying to convince the media and industry that insurance companies refuse to pay for a safe and proper repair, and that that’s what leads to bad repairs. The only thing more ridiculous than that is saying all collision re-
ample, please also include the name and contact information of your customer so I can let them know that you knowingly repaired their car wrong because their insurer wouldn’t pay. I think it’s time we truly identify the root cause of all this noise and melodrama. There are items that shops and insureds are negotiating that shops aren’t being reimbursed for – items that have nothing to do with the safety of the repair. That is the issue. Nobody is asking you to section a part in an incorrect location. Nobody is telling you not to replace a damaged safety related component so the insurance company can save money. Nobody is telling you to straighten a part that requires replacement when it has been compromised. The grandstanding that is taking place is unproductive and playing out worse than an episode of “All My Children.” Which, by the way, was cancelled. The fact is there are some bad actors in the industry who are more interested in being on the pulpit and acting like they are auditioning for a role in “Desperate Housewives” than they are in trying to resolve real prob-
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lems. I suppose not resolving the problem allows them to stay in the limelight and at the forefront of controversy. Crying wolf usually will get the attention of someone once, maybe twice. But the third time is usually the end of the road. I’m suggesting that you may have hit that end. So you have a few choices. Keep crying and become more irrelevant. Turn around with your tail between your legs and find something else to champion. Or perhaps travel a different road and look to find ways to help resolve some of the inherent conflicts that even I am willing to acknowledge exist. I would also request that if you are going to send me an example of an insurance company not paying for a safe and proper repair, don’t focus on aftermarket parts. Aftermarket parts aren’t the Second Coming of Satan. They have been installed on millions of cars since the late 1970s and early 1980s. Please provide me a list of the
deaths and lawsuits won where it was proven that aftermarket parts were the cause. It shouldn’t be that hard if it’s as prevalent an issue as many of you seem to think. You have your choice of millions of cars on the road with aftermarket parts. Having a tough time thinking of even one? That’s kind of what I thought. Nobody listened to the boy in the old story who cried wolf, and I’m fairly confident nobody is listening to the current crop of industry whiners. Identify what your true issues are and stop trying to mask them with rants of “safety” and “someone is going to die.” If I completely missed the mark and insurers are refusing to pay for safe repairs, you have a responsibility to your customer and business to do the right thing. Share your story with “60 Minutes” and maybe you can retire a very rich person. The boy who cried wolf but was right… now who wouldn’t pay for that story?
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San Antonio Repairer Tells TV News He’s Blowing the Whistle on Insurance Companies Pressuring Shops to Use Substandard Parts A San Antonio collision repair shop owner says he is blowing the whistle on car insurance companies and was interviewed by Local News Reporter Emily Baucum of News 4. The news report was broadcast on Nov. 28. Dale Tabaka says insurance companies are pressuring body shops to use parts from junkyards to fix the most important parts of your car—the steering and suspension. Tabaka says the way a major insurance company wants to fix an elderly woman’s car is just plain irresponsible. Inside Dale’s Collision Repair, there’s a baby blue Chevy Cruze that was rear-ended a few months ago. “This car is owned by a little old lady who could literally be your mother or your grandmother,” Tabaka says. He says she’s insured by the number-one company. The company will pay for a new axle—but as [News 4 reported], not all axles are created equal. “We not only want to fix it right,” Tabaka says. “We want to fix it according to industry standards.” He showed News 4 a brand-new part
from the factory that meets those standards. “This part is approximately $1,100,” Tabaka says. But for half the price, the insurance company wants him to use a rusted part it got from a salvage yard, he said.
Dale Tabaka is Interviewed by News 4
“One of these ears on the axle is bent in,” Tabaka showed News 4. He said he can’t guarantee that when the car’s on the highway, the rusted axle won’t break and put lives in danger. “I’ve had cases where other shops have called me and said, ‘Hey, I put this junkyard part on the way the insurance company wanted us to, and as we were driving, the hub bearing froze up,’ ” Tabaka said. So he told the insurance company he’ll use their junkyard axle, but only if he can replace all the move-
able parts so it meets industry standards. “They turned a blind eye,” Tabaka says. “They said they don’t recognize those standards.” “The shocking truth is,” said the news report, “most car policies allow the insurance company to use whatever part they want.” “Pretty much all the insurance companies are doing it,” Tabaka says. “And what scares me is, the average consumer has no knowledge of it.” He’s fed up, and becoming an advocate for customers like the elderly woman who owns the Chevy. “At the beginning of the month I actually put her in a rental car on my own dime,” Tabaka says. He’s going to bat with her insurance company and educating drivers, one car at a time. Read More and see the interview at: http://www.news4sanantonio.com/ news/features/top-stories/stories/collision-repairman-blows-whistle-junkyard-repairs-6133.shtml. See also http://www.youtube.com/watch?v=mBezBiei2Y&feature=youtube
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LIABRA
monthly newsletter. This newsletter is only one of the perks shops receive from membership in LIABRA; benefits also include monthly meetings and educational seminars which provide the knowledge necessary for repairers to understand the changes occurring in the industry. Also, members can receive discounts on credit card processing, advice on their insurance and so much more. Kizenberger believes that there are many real challenges involved in maintaining operations of LIABRA, but these are the common problems that all non-profit organizations face, such as obtaining volunteers and providing useful information for their members; “the maintenance of the group correlates somewhat to claims frequency reductions, affecting the numbers of shops that will be performing repairs in the future, and we are constantly challenged to provide real value to our members because, even if the number of shops are reduced, those still standing will continue to need representation for their interests.”
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National Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Automotive Recyclers Association Hosts 70th Annual Event with Chasidy Rae Sisk
The Automotive Recyclers Association (ARA) held their 70th Annual Convention on November 6 through 9 at the Sheraton Convention Center in Phoenix, AZ. Michael Wilson, CEO of ARA, was pleased with the event, and, though they are still finalizing the balance sheet for this year, he believes “the 2013 Convention will go down as the most financially successful Convention in our association’s 70 year history.” The event boasted approximately 1000 attendees, no small feat considering the consolidation of larger companies within the industry and the reduction in the number of employees that owners are sending to out-of-state conventions as the economy still recovers from the recent recession. Wilson notes that all associations struggle with this dilemma, partially due to the increased availability of online training and seminars.
Former Rep. J.D. Hayworth (left) with ARA CEO Michael E. Wilson (right)
Wilson believes that holding the event on the West Coast for the first time in several years attracted several new ARA members as well as longtime members from the West Coast who attended the Convention for the first time. The majority of the automotive aftermarket parts industry is located east of the Mississippi River, but luckily, East Coast dwellers were also willing to travel in order to attend this valuable event. ARA’s 2013 Convention featured nearly 50 educational sessions, all packed into three days. Wilson says “it was a great overall package. We offered something for everyone, from small mom-and-pop automotive recycling facilities to large corporations.” He was particularly pleased with the participation of several industry speak-
ers in particular, fellow auto recyclers Ron Sturgeon and Rob Rainwater who are both well-respected favorites within the auto recycling community. Attendees were also excited by the presentation given by WD-40 President and CEO, Garry Ridge, who discussed his 2009 book, “Helping People Win at Work: A Business Philosophy Called ‘Don’t Mark My Paper, Help me Get An A’”, co-authored by Ken Blanchard. Ridge’s presentation took a look at employees as an asset and discussed how to focus on utilizing and improving this asset. Wilson states, “it was a good message, and his presentation was well-received by the many business owners in the audience.” Another important presentation was given by former U. S. Representative J. D. Hayworth from Arizona, entitled “A Recovering Congressman’s Guide to Survival on Capitol Hill.” Hayworth discussed the importance of regulatory rule making process. According to Wilson, Hayworth was full of energy and energized the recyclers about the importance of getting involved in the governmental arena. AudaExplore’s Michael Anderson, along with Bob Jabjiniak from CCC Information Systems, spoke about the importance of data integrity and doing a better job of parts grading as it relates to the electronic parts procurement. Because technology now allows companies the ability to filter estimates and parts preferences more effectively, utilizing ARA parts grading standards can help improve the quality of the parts being purchased, if used correctly. ARA also made several important announcements during the Convention. On November 6, the association announced that they are moving forward with improvements to their Certified Automotive Recyclers (CAR) Program, and they plan to launch a conversion to a points-based system in January 2014. Currently, a sub-set of the committee is working on fine-tuning the conversion in order to roll it out for the new year. Auto recyclers and affiliate chapters that are already participating in the CAR Program will be grandfathered in for 2014 and rolled
34 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
over to the new system in January 2015.
Attendees Entering ARA’s 70th Annual Convention & Exposition
Immediately following the Convention, ARA hosted an International Roundtable on Automotive Recycling with featured keynote speaker Tony Aquila, founder, chairman and CEO of Solera Companies. Approximately 75 attendees, representing eight dif-
ferent counties, gathered to discuss the opportunities and challenges faced across the industry worldwide and to brainstorm possible solutions. Wilson says that ARA’s 2013 Convention was “one of our most financially successful events ever. As an association, we have been lucky to remain very steady; however, consolidation has significantly affected our attendance over the past ten years.” As such, ARA plans to push for more corporate input and support to provide additional training opportunities that attract more owners and employees. When discussing his expectations for the Convention and the reasons it is important to the industry at-large, Wilson had plenty to say. First, this type of event provides an efficient marketplace for industry vendors and members with significant buying power to interact. Since around 90 percent of attendees are automotive recycling business owners, they are
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able to make executive-level purchasing decisions, creating a good situation for vendors. Wilson explains, “we want it to be successful for both our members and vendors.” The Convention provides an “important funding revenue for the association so we can invest in more programs for our members. Additionally, it provides an opportunity for us to meet with our current members, as well as prospective members, to present our benefits and promote our as-
ARA President 2012-2013 Chris Wright (right) & WD-40 President & CEO, Garry Ridge (left)
sociation’s value by highlighting the specific products and services ARA provides its membership. Talking to our members allows us to gain a better understanding of their needs so that we can take full advantage the collaborative power a united association membership base can provide and
focus that energy heading into 2014,” Wilson explains. The main benefits of attending these types of functions are obvious: education and networking. As vehicles become more sophisticated due to technological advances, ARA members need to stay informed on these updates, and the Convention serves as a means of providing this type of information. The discussions and feedback garnered also aids ARA in determining how to move forward. Networking is also a key ingredient in the success of association events as it allows ARA members to benchmark themselves and their peers in the industry in order to determine how others may have overcome certain difficulties. Many members know each other since their businesses have been passed along to multiple generations, and Wilson describes, “it’s like a family reunion. It’s good for all those folks to get together to talk about the industry and the various trends.” By granting ARA staff a chance to directly interact with members, the Convention allows them to gain valuable industry insight. In turn, they use this insight to identify industry challenges and work with members on po-
36 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
understanding of common issues and that, as an industry, they will be able to uncover ways to work collaboratively, resolve shared problems and move forward together. In the coming months, ARA will begin preparing for their mid-year Board of Directors meeting, annual Hill Day Event and Legislative Summit. They are moving their annual visit to Washington, D. C. from March to early June 2014 so that more members will be able to participate. Wilson explains, “this will allow many family-owned busiRibbon cutting at the 70th Annual Convention & Exposition. ARA nesses to bring their President 2012-2013 Chris Wright with shears children to see the wreckers to secure salvage vehicles Capitol and learn about the legislative for the auction. ARA has invested a lot process. Many of them are growing up of time and effort into this project, and in this industry, so it’s important to Wilson believes it will be successful teach them early on about the imporin the first quarter of 2014. tance of being involved.” ARA is also focused on seeking opportunities to increase their out- ARA reach to other sectors of the industry, 9113 Church St such as collision and mechanical re- Manassas, VA 20110 pair, as well as the insurance industry. 888-385-1005 Wilson hopes this will provide a better www.a-r-a.org tential solutions. All of this “allows us to better carry out our role in protecting the industry,” Wilson explains. ARA has a lot of projects in progress. ARA Direct, their online salvage auction program, is starting to come together, with discussions taking place with insurers and auto
Caliber Collision Has Gifted 17 Vehicles in 2013
Caliber Collision announced on Dec. 17 that its year-long involvement with NABC’s Recycled Rides program resulted in a total of 17 vehicles donated in 2013. Caliber partnered with Ameriprise Auto & Home Insurance on a vehicle for a U.S. Army medic in Tempe, AZ, and with State Farm Insurance in Irvine, CA, to provide transportation for a US Navy seaman. Both recipients were active duty service members nominated by Operation Homefront, a national support organization for military families. A third vehicle was donated to a single mother in Lancaster, CA, who was selected through a community-wide nominating program. Caliber has partnered this past year on Recycled Rides with a number of insurance partners to help gift vehicles to those in need. “We look forward in 2014 to teaming up with our many insurance partners and the NABC to help provide reliable transportation to deserving first responder and military families in the communities we serve,” said Greg Clark, senior vice president of marketing.
Massachusetts Gov. Patrick Signs Right to Repair into Law, Reconciles Laws Passed by Legislature and Ballot Measure Massachusetts Gov. Deval Patrick signed the Massachusetts Right to Repair legislation into law, ensuring that the commonwealth’s citizens will have access to a competitive vehicle repair market, according to the Automotive Aftermarket Industry Association (AAIA). “The signing by the governor represents a major victory for Massachusetts car owners, who took the major step last year in voting for the nation’s first Right to Repair law,” said Kathleen Schmatz, AAIA president and CEO. “AAIA and our partner, the Coalition for Auto Repair Equality (CARE), will now devote our full attention to completing work on a memorandum of understanding with the vehicle manufacturers that is intended to ensure that motorists across the nation can enjoy the same market benefits that Massachusetts car owners now enjoy.” The newly-signed legislation was needed in order to reconcile two laws that were on the books in Massachusetts that mandate that car companies provide affordable access to
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all tools, software and information used to repair late model computercontrolled vehicles. The first law was the result of an agreement reached between the Massachusetts Right to Repair Coalition and the vehicle manufacturers that was passed unanimously by the state legislature in late July. The bill was approved by the legislature too late to remove a ballot measure that had been sponsored by the coalition. That ballot measure was approved in November 2012 by an overwhelming 85 to 15 percent margin, thus ensuring that there were two Right to Repair laws on the books in Massachusetts. The recently-signed bill is similar to the bill which passed the legislature in 2012, but includes provisions that require that information and tools be available for heavy duty vehicles, those over 14,000 pounds. The ballot measure included these vehicles, but they had been deleted from the bill that passed the legislature. Through efforts of a coalition of aftermarket heavy duty service providers, the state senate adopted an amendment that re-
stored heavy duty vehicles back into the bill. While the ballot measure and the law enacted by the legislature are very similar, there are some differences. These include the fact that the legislature-passed bill would require car companies to provide their diagnostic software through a cloud that utilizes a standardized vehicle interface by model year 2018, while the ballot measure would mandate compliance with these provisions by model year 2015. The ballot measure also includes motorcycles and heavy duty trucks, while the legislature had narrowed the focus of the law to only passenger vehicles. The reconciliation bill tracks closely with the law that passed the legislature.
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Northeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ABARI Shows Support for Consumers through RI’s Total Loss Bill The Auto Body Association of Rhode Island (ABARI) has been fighting to protect consumers for decades, and they took a huge step in the right direction in July 2013 when RI governor Lincoln D. Chaffee signed their Total Loss Bill into law. Jina Petrarca, legal counsel for ABARI, exclaims, “we’re very proud of the Total Loss Bill; it’s a great thing for the consumer!” The Total Loss Bill, also known as House Bill 5263 and Senate Bill 465, prohibits insurers from declaring a vehicle to be a total loss if the damage amounts to less than 75% of the vehicle’s fair market value, unless they obtain the owner’s consent. Though insurers can still declare a total loss on vehicles if repairs would cost more than 75% of the value, the bill was introduced because insurers were totaling cars damaged at only 50% of value because they were receiving high salvage prices. While this was cheaper for the insurance companies, consumers were losing vehicles that could have been safely repaired. Petrarca explains, “this is 100% a bill for consumers; it’s all about protecting the consumer. Consumers value their vehicles, so we wanted to put the control in declaring a total loss into the vehicle owners’ hands. Before, the insurer had the final say, but this bill gave that decision to the consumer, not to the collision repair facility. Contrary to some insurers’ claims, this bill was not about driving in more business for repair shops.” Nationally, the industry standard to declare a total loss coincides with the 75% threshold dictated by ABARI’s bill, but the Total Loss Bill served to quantify and regulate that standard in their state. The bill also discusses how to obtain fair market value of the damaged vehicle, through a third-party entity, such as Kelly’s Blue Book. Not surprisingly, insurers objected to the bill, claiming it was a ploy to generate more repairs for body shops, but this is not true—the decision to declare a vehicle as a total loss is left up to the vehicle owner, not the repairer. Insurers also claimed that the bill would cause insurance rates to increase, but Petrarca states that this is a common claim by insurance companies whenever ABARI
supports a legislative action; “in reality, rates in RI have been decreasing over the past eight years.” Though Governor Chaffee listened to the insurers’ objections, he ultimately
ABARI continues to propose possible legislative solutions to eliminate the concerns with labor rates, and though their efforts thus far have been unsuccessful, Petrarca insists they will just keep trying again and again until they rectify the situation. Though State Farm does not write policies in RI and therefore PartsTrader does not impact ABARI’s members, ABARI does not support the concept of programs like PartsTrader because they are not pro-consumer or pro-business; these programs are only pro(left to right) David Reynolds (Chair of Auto Body Licensinsurer, and they will not result ing Advisory Board), Randy Botella (ABARI President), in any improvements, Petrarca and John Petrarca (from the Board of Directors) believes. ruled in ABARI’s favor because he recRegarding the PARTS Act, ognized how important the bill is to the ABARI’s Board of Directors wrote a consumer, his constituents. According letter to their senator in support of the to Petrarca, “everything we’ve done is aftermarket parts industry and the availfor the consumers. They need to be proability of aftermarket parts. Although tected, but since they don’t have a voice not all of their members use aftermarket for these types of issues, ABARI tries to provide a voice for them. What’s good for the consumer is good for business. Many of our laws in RI promote consumer education, and many dedicated member shops are engaged in encouraging this process.” ABARI is so focused on providing the best possible services to their members’ customers that they passed a selfimposed regulation which requires technicians to be certified. Petrarca explains, “the consumer knows that certification means something. It’s an additional expense to the shops, but we felt that it was necessary, and I cannot say enough how important this is to ABARI.” The collision repair industry in RI has been very proactive in passing laws to protect consumers and repairers, such as their Right to Choose and Anti-Steering laws. One major challenge that RI collision repairers continue to face is related to labor rate reimbursements, and this battle has spanned the past several decades. “This affects profitability and the ability to stay in business for many shops. It’s the spider that creates the spider web; a lot of other issues spring from the labor rate problem, but these would vanish if the labor rate issues were resolved,” Petrarca explains.
38 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
parts in their repairs, ABARI believes that aftermarket parts have a place in the market. They believe that the length of time OEMs can hold a patent inhibits free trade, and decreasing this time will make aftermarket parts more widely available. ABARI supports the Right to Repair because they believe “anything that creates a monopoly isn’t good for the consumer,” Petrarca states. ABARI was founded approximately 50 years ago, and they were very active with legislative and arbitration issues in the 1960s and 1970s. There are around 100 members currently involved with the association, but very few member shops have DRP relationships. In fact, until a few years ago, ABARI only accepted independent shops to their membership, and they still limit their membership to shops with four or less DRP contracts. As part of the benefits members receive from joining the association, See ABARI Shows Support, Page 59
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Are the Yellow Pages Truly Dead?
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
Many people predicted that movie theaters would close right and left when VHS tape players started appearing in stores, but you know how that went. With 3D and IMAX, movie theaters are more popular than ever and buying a ticket to see one of the newest super hero films will cost you an arm and a leg. When digital book reading devices came out, experts were claiming that real books printed on paper were soon going to be obsolete, but that hasn’t happened either. So, when I keep hearing that the Yellow Pages are dead and body shops aren’t using them anymore, I’m hesitant to jump on that bandwagon, at least for now. I’m not going to be one of the industry’s pallbearers until I know the facts and talk to some experts. So, I did my due diligence and polled advertising professionals and marketing gurus from different parts of the country. I even tried to talk to the people at the
Yellow Pages, but after leaving multiple phone messages, they never called back. I gave them a chance to make their case, but they chose not to, which might tell you something right there. Last month, the Yellow Pages landed on our porch and I promptly recycled the book again. This ancient directory is delivered to my house several times a year and it always ends up in the trash almost immediately. But honestly, am I the only one who does this? It seems like such a waste. Every time the new Yellow Pages arrive, I also notice that they’re smaller and smaller. Back in its heyday, the phone book was huge and big enough to use as a chair booster for my niece or act as an effective door jam. But, now my niece is grown up and the phone book does not weigh enough to keep any door open. At 1,200 to 1,500 pages, the phonebook was a big part of every
American household as recently as 10–12 years ago, but the one that arrived the other day contained only about 500 pages. Yes, the phonebooks are a little thinner, but the new ones get delivered every year like clockwork, so why is everybody declaring the demise of the Yellow Pages? Is it propaganda disseminated by Google, or is it actually true? Today with the Internet, cell phones and other smart devices, information about businesses and their phone numbers are so much easier to find. Back in the day, we had to rely on the Yellow Pages and hoist around a huge book while turning countless pages. Now with a couple clicks, we can get this information and a lot more within literally seconds. Plus, it’s a greener alternative because trees don’t have to die as a result. I talked to an individual recently who has been selling ads for the Yel-
low Pages for the past 15 years and his mantra was “If it ain’t broke, don’t fix it!” He chose to remain anonymous. “Everyone is saying we’re going online and the actual phonebooks are archaic, but you should ask all my clients that,” he said. “My faithful Yellow Page advertisers who know how to use the medium are tracking great results. One reason is that many of their competitors have opted for other forms of advertising. So, they can now dominate their market. People who are still willing to spend money and choose to market themselves to local businesses use the Yellow Pages and their numbers are keeping them in the book.” Jim Schriver is a media consultant who works with small to medium-size companies in the San Diego, CA, area, advising them on emerging media and online marketing. Schriver says that the Yellow
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Pages are no longer effective for body shops and that’s why they’re opting out right and left. “If you’re a landscaping company, a plumber or you clean pools, the old school phone books are probably a good fit for you, because believe it or not, people still refer to them for services such as these,” Schriver said. “Even small retail operations with 1–2 locations, such as florists, tuxedo rental companies and clothing stores will get some significant response from the Yellow Pages. But for body shops, I would say they’re not an ideal match. In a DRP-driven environment, the process for finding a body shop usually goes through an insurance company. It’s rare that someone would go to the Yellow Pages to find a shop, because their insurer has already provided a list of their preferred shops. The money that a collision repairer is spending on the Yellow Pages can be spent much better elsewhere, such as online advertising, outdoor advertising and/or broadcast. The overall goal is to get your name out there, so that when the potential customer gets in an accident, they remember your name—
it’s basic branding. But the Yellow Pages don’t achieve that and that’s why I tell body shop owners to stay away.” Larry Sawyer owns Da Bomb Media in Phoenix, AZ, a company that helps companies on web site development, SEO and social media. Sawyer is advising all of his clients to bail out of the Yellow Pages yesterday, if possible. “One of my clients was spending $1,300 every month on the Yellow Pages and back in the 1980s it got him a ton of business,” Sawyer explained. “But now, it’s a waste of money, because people are relying on the Internet. The Yellow Pages tried to develop an online entity, but it was too late and Google has already claimed that spot. So, I took my customer’s $1,300 and invested it in a lot of online advertising programs, offered by Yelp, Google, Facebook and other forms of social media. As a result, they’re getting some amazing results and that $1,300 is going a long way. I can’t say that the Yellow Pages are dead, but they sure are limping along!” David DeClue owns a marketing company called Tah Dah! in
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Muncie, Indiana. Even though most of his clients can’t be considered technically savvy, they still know that the Yellow Pages are experiencing their final days. “Sure, some companies are still hanging on to the old days and advertising in the Yellow Pages, but most of them are getting out and embracing other forms of print advertising,” DeClue said. “The phone carriers are getting out of the directory business, which is a bad sign. In 2002, usage of the Yellow Pages was around 15 billion impressions and now it’s been cut in half. Idearc, the company spun off when Verizon divested itself of its Yellow Pages division when it filed for Chapter 11 bankruptcy in 2009, along with R.H. Donnelley and Ambassador Media Group the same year. So, to answer your question—the Yellow Pages are still alive, but just barely.”
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ASE Awards Top Scorers on Certification Tests
Forty-five automotive professionals were recognized at the fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Fairmont Hotel in Newport Beach, CA. The annual awards banquet spotlights top scorers on the ASE certification tests. Thirty-eight different companies from both OEM and aftermarket segments sponsored the individual technician recognition awards in the auto, truck, collision and parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees. “ASE has been honoring the best of the best in our industry for more than 40 years, and this year we recognized fortyfive outstanding individuals from all across the nation,” said Tim Zilke, ASE president and CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.”
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PartsTrader Has Released its Fees for Suppliers PartsTrader has released its fee schedule for suppliers, subject to its existing Terms of Service, for 2014. On February 1, 2014, PartsTrader will begin introducing fees for the use of the application according to the following policy: ● Repairers will not pay fees to utilize PartsTrader. ● Suppliers will be charged a flat monthly subscription rate based on order volume, and that rate will start as low as $19/month, and be no more than $199/month. ● There will be no other charges applied for transactions or user access at this time. ● All suppliers will be given an opportunity to try PartsTrader for 6 months at no cost before their initial subscription fee is due and payable. Those suppliers who support states whose market launch date was 6 months prior to February 2014 will receive their first in-
voice beginning with that month. ● This communication is provided according to Section 9 of PartsTrader’s Terms of Service. For more information on PartsTrader’s 2014 Fee Schedule, please visit: www.partstrader.us.com/ 2014pricing. Consistent with past communications, the use of PartsTrader has been offered at no charge to users throughout 2012 and 2013. We’re working every day to make your PartsTrader experience a great one, and deliver a software solution that you find valuable. If you have any questions, please give our Customer Care team a call at 855-WEB PART (855-932-7278) or contact us by email at support@ partstrader.us.com. According to PartsTrader, effective Feb. 1, 2014, participating suppliers will be charged a monthly subscription fee according to the following schedule: Monthly Order Monthly Rate
Volume* $0-$2,000.00 $19 $2,000.01-$6,000.00 $39 $6,000.01-$12,000.00 $99 Over $12,000.00 $199 *Based on three-month average
• Participating suppliers are defined as either companies with a PartsTrader supplier user ID or each unique distribution/warehouse location processing PartsTrader orders. At PartsTrader’s discretion, companies with a delivery radius larger than 200 miles may be subject to a customized pricing program. • Participating suppliers are tied to the states in which they were invited by a repairer to use PartsTrader. • Suppliers participating in each market launch determined by repairer state will have had the opportunity to use the system at no cost for six months before their initial subscription fee is due and payable.
Month of First Billing February 2014 Arizona, Colorado, New Mexico, Texas March 2014 California, Nevada, Utah April 2014 Michigan, Ohio May 2014 Illinois, Indiana, Kentucky, Tennessee, Wisconsin June 2014 Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota July 2014 Florida, Georgia August 2014 Maryland, North Carolina, South Carolina, Virginia, West Virginia September 2014 To be announced • The subscription fee will be billed on the first of the month and payable net 10.
• Suppliers that only sell parts to their wholly-owned collision repair facility will be charged the lowest monthly subscription rate.
New California Law Expands Protections for Whistleblowers On October 12, 2013, California Governor Jerry Brown signed into law SB 496, which, along with two other new laws (SB 666 and AB 263), expands protections for whistleblowers in California by significantly altering California Labor Code Section 1102.5, California’s general whistleblower statute. The amendments are effective January 1, 2014. Before it was amended, Section 1102.5 already prohibited employers from retaliating against employees who reported reasonably-believed violations of state or federal laws, rules, or regulations to a government or law enforcement agency. SB 496 extends this protection to employees who report suspected illegal behavior: (1) internally to “a person with authority over the employee” or to another employee with the authority to “investigate discover, or correct” the reported violation; or (2) externally to any “public body conducting an investigation, hearing, or inquiry.” Additionally, SB 496 declares unlawful any employer’s rule, regulation, or policy that prevents the disclosure of reasonably-believed violations of local (in addition to state and federal) laws, rules, or regulations. The bill also imposes liability where any person acting on the employer’s behalf retaliates against an employee who engages in protected whistleblowing activity. In addition, employers and persons acting on their behalf may not retaliate against an employee for disclosing such information or because the employer believes the employee has disclosed or may disclose
the information externally or internally. SB 496 further provides that the protection of whistleblowers applies regardless of whether disclosing such information is part of the employee’s job duties. For example, a company’s compliance officer is protected under section 1102.5 for disclosing purported illegal activity even though his job duties may require him to report such activity externally or internally. Because a violation of California’s general whistleblower statute can have serious consequences for employers— not the least of which are civil penalties of up to $10,000 per violation—California employers would be well advised to update their whistleblower protection policies to reflect the changes effected by SB 496 and to train managers and supervisors about the new retaliation provisions applicable to their conduct. Of particular concern to employers should be the fact that they can now be found liable for “anticipatory retaliation” if they, or any person acting on their behalf, take adverse action against an employee based on the mere belief that the employee has disclosed or might disclose information about a reasonably-believed violation of federal, state, or local law. Although SB 496 creates new sources of liability for California employers, there is at least a clarification of a prior split of authority. As a result of SB 496, California employers no longer have to wrestle with how to handle the conflict that exists among federal courts about whether an individual must first report a reasonably-believed violation of securities laws to the SEC to receive protection against re-
42 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
taliation under the Dodd-Frank Act. Regardless of whether a California employee first reports suspected illegal activity to a government or law enforce-
ment agency, to a specified public body, or via an employer’s internal reporting procedure, California whistleblower retaliation laws will protect this activity.
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Southwest Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
New Louisiana Collision Repair Association Has Quickly Become a Reality Since their first interest meeting on December 3, the Louisiana Collision Industry Association (LaCIA) has been making rapid progress towards becoming official. In fact, Alysia Hanks, recently named Executive Director of the new association, has been surprised by the lack of challenges faced thus far; “everyone agrees this association is long overdue. The only complaint I get is ‘why this wasn’t started sooner?’.” But Hanks is getting LaCIA up and running faster than she thought imaginable. This past summer, Hanks and an industry partner discussed the concept and decided to gauge interest, though they were uncertain how the project would be received. By the time they held their first meeting in Baton Rouge, LA, hundreds of collision repairers, vendors and dealers responded to their cry to “make this industry better for all those serving it and especially for our customers”, the association’s main goal, according to Hanks.
Alysia Hanks shakes with the association’s counsel, Claude Reynaud
At that meeting, Hanks planned to meet with their attorney, an appointment that took place just a week later on December 12 and during which they determined the Board of Directors and worked on the legalities of establishing the association. Though everything isn’t “officially official yet, we are very close,” Hanks shares. Since there are no members yet to elect the board (as will be done in the future), Hanks played a large role in choosing this first Board of Directors. “We brought together several individuals from around the state who, I felt after talking with them, would be
suited to be on this initial board.” At this meeting Hanks was also named Executive Director of LaCIA and she will remain active in everything regarding the association. Additionally, she notes that the Alysia Hanks meeting was “Exon the job at cellent! I think we Lakeway Collision have an awesome Center in group of individuMandeville, LA als who will be serving as our first board, and they are as excited about it as I am.” Another important stride taken at this meeting was the determination of the association’s name. Prior to their first meeting on December 3, the association was tentatively titled the Southeast Louisiana Collision Repair Association, but they quickly dropped the first portion of the name because they have received strong support from shops statewide. The most recent revision of their name was made on the 12th because Hanks and the newly formed board “felt that [Louisiana Collision Industry Association] included more of those who work in this industry.” Including more of the industry is important to Hanks because “I think we are dealing with a nationwide industry crisis, and what better way is there than coming together as a group to overcome these obstacles?” Furthermore, in an email distributed to those who have expressed interest in the association, Hanks noted, “I feel the sense of urgency we all have, and something has to change. Whether we like it or not, we have a nationwide industry crisis going on. Other states are finding their strengths in numbers and proactively pursuing their common interests together. I do believe that by doing nothing, it only ensures we lose… We all have so much to learn from each other, and we are more powerful together.” Interest in LaCIA has been seen not only by industry professionals in LA. Other local associations have also been very supportive of this endeavor. John Mosley and Steve Plier, presi-
44 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
dents of the Mississippi Collision Re- State Farm and anything else,” said pair Association (MSCRA) and the Hanks. “Education will be another top Alabama Automotive Repair Industry priority. The Mississippi shops said Society of Excellence (ALARISE) re- once shops started talking from state spectively, attended the meeting on line to state line, it cut back on a lot of December 3 to show their support and the grief insurance companies can offer guidance. Other speakers in- give us when they’re standing here cluded Attorney John Eaves Jr. and saying, ‘We won’t pay for that,’ or, industry consultant Ron Perretta. ‘No other shop charges for that.’” Hanks is grateful for the support, explaining “we all want this industry to be the best it can be so we can all have a better livelihood.” Hanks is hoping that the association will be in place in time for the multi-association meeting on April 11–12 in Biloxi, MS, where Texas, Alabama, Mis- (l to r) Ron Peretta, Industry Consultant and owner of sissippi, Tennessee, Florida Professionals Auto Body in PA, with Executive Director Hanks, and member Lynn LeJeune and Georgia will be represented. The importance of collaboration Local suppliers and jobbers have is emphasized in LaCIA’s mission, as also been extremely supportive of the displayed on their Facebook page, initiatives relating to the new associa- which is to “serve in the best interests tion, and though LaCIA will be run of the collision repair industry through solely by shop owners and managers, education, support, leadership and the suppliers are providing monetary business connections in our trade. We support and helping spread the word hope to achieve the open sharing and as things get off the ground. Accord- exchanging of ideas which will help ing to Hanks, “when we are all doing make this field better for everyone better, they know they will naturally who serves it. From the porter to ofbenefit from it, and they [want] to help fice assistants to shop owners and make it better for everyone. They dealers, we are here to provide everywant all of us to succeed. We couldn’t one a voice and hope for the future of have asked for a better partner than our livelihood.” that.” Though the association’s agenda won’t be established until the next meeting in January, Hanks has a lot of goals and aspirations for LaCIA; “we want to know not only how to make our customers happy and feel in control of their decisions, but we want to know how to make this inJohn Mosely, President of the Mississippi Collision Repair dustry, as a whole, happy. We Association, addresses the meeting have already talked about Hanks says that Louisiana Auto- training… we have dealers who are almotive Dealers Association (LADA) ready on board, and their associations president Bob Israel has emailed her have made waves in the legislation, to find out more information in order and we hope to follow in their footto get dealerships with collision shops steps, so legislation is a very imporinvolved. LADA was represented at tant part of what we need to do. the meeting. There’s so much we can accomplish “We’re hoping that, once we get with this association; it should be an the dealers and vendors backing us, exciting time for all involved, and I we can really take a stand against will work tirelessly to make sure
every member is heard.” Hanks plans to support the Right to Choose because “we believe it is an excellent business practice to let the consumer decide where to get their vehicle repaired. If the business is shady, they won’t last very long because the customer base will leave, but if we have entities steering customers to those shady operations, they won’t go away and will only cause destruction in our way of life. We, above all, have our customers’ best interests in mind as we go forward with this. They have a right to feel safe after they have their investment (automobile) fixed by a company they trust.” She is also hoping to fund an advertising campaign to correct the misconception that insurers can dictate which shops the consumers use for their collision repairs. She also notes, “while PartsTrader is a huge issue in this industry, we are not going to be focused on trying to fight it but to educate and inform our customers of this and, at the same time, educate ourselves to see if it is in the best interest of each shop to sign onto such a program. We haven’t started this association to gang up
against anyone or thing in particular. I’ll say again that educating us and our customers will go a long way to fix issues in our industry… I hope the mere fact of making sure we are educated on every level will go a long way with dealing with those issues that affect us most.” LaCIA’s next meeting will be held on Tuesday, January 21 in Baton Rouge, and open to everyone in the industry other than insurers. The focus will be on introducing the new board, setting goals for 2014, recruiting more members, and collecting feedback on members’ expectations. They plan to have several meetings yearly across the state to ensure that their message is heard by everyone who is interested. In conclusion, Hanks notes, “I am so honored to be part of such an amazing group of individuals we have in this industry. The support has been overwhelming from everyone, and we all feel that was something that was long overdue for our state.” For more information about LaCIA and their progress or to join, contact Executive Director Alysia Hanks at: alysia@lakewaycollision.com.
Dallas-based Service King Collision Repair Centers has bought Accurate Autobody of Nashville
Terms of the purchase were not disclosed. The purchase includes Accurate Autobody's nine collision repair centers in Middle Tennessee and one off-site production facility. The acquisition gives Service King 22 locations in Tennessee. “We’re looking forward to partnering with Accurate Autobody and its pristine reputation with consumers and insurance partners,” said Mike Abbott, Market Vice President Tennessee for Service King. “Both companies share a similar commitment to quality repairs and customer satisfaction giving us great confidence in our combined teams’ abilities to deliver superior service to customers in Tennessee.” Service King will now operate 22 locations in Tennessee. John Hughes, the founder of Accurate Autobody, along with his team members, will be joining more than 2,300 Service King teammates across the coun-
try. Hughes’ career in the auto-body industry spans more than 22 years, including a dozen years as owner of Accurate Autobody, during which time he helped it to become a positive contributor in the local community. “I am very grateful to all of my associates for their hard work and dedication. It is their efforts that have made Accurate Autobody the industry leader in middle Tennessee,” said Hughes. “I am confident that joining the Service King team will offer many opportunities for all as they continue to grow.” “We are extremely pleased to be able to expand our presence in Nashville. This acquisition will provide consumers more convenient access to a Service King Repair Center,” said Jeff McFadden, President of Service King. “The Service King family welcomes the Accurate Autobody team. We are excited that this growth will provide personal and professional opportunities for everyone.”
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Shop Showcase
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Is San Francisco’s Selecta Auto Body “Ultimately Green?” with Ed Attanasio
Every body shop owner in the country wants to be green. Just ask them.
Selecta Auto Body in San Francisco is the only body shop in the country that has a B-Corp certification, a distinction only 850 companies have achieved for being green, socially responsible and a positive member to their respective communities
100% environmentally friendly collision center. It was an enormous investment in time and money and various obstacles made it an arduous process, but today, the new Selecta Auto Body is being described as “ultimately green.” Hubbard’s former location was only 4,000 square feet in size and due to development constraints, he wasn’t able to add space or remodel. “We had a whole slew of problems and limitations with our old shop,” he said. “We were fixing 30-40 cars out of that facility every month, but we had power issues and we spent way too much time moving vehicles around. The DRPs weren’t coming our way, but it wasn’t due to the quality of our work. We couldn’t upgrade and the building wasn’t for sale, so we started to look around for a new situation. And that’s why I started doing the research and shortly began considering a completely new shop that I could design from scratch and make it everything I wanted it to be.” It took two years of construction and planning and jumping through the city’s hoops to turn an old building into Selecta’s new 10,000-square-foot facility. “Real estate in San Francisco is very expensive, but the time was right, because the market was dipping during that time,” Hubbard said. “It was hard finding an ideal location
But, are they willing to commit to a total green approach in every aspect of their business? Changing some light bulbs and installing low-flow toilets are positive things, but how many shops will really invest significant time, money and effort to be as green as they possibly can? One San Francisco shop owner has committed himself to being 100% green and the end result is Selecta Auto Body, the only collision business in the country today that has achieved BCorp certification, by meeting rigorous standards of social and environmental performance, accountability, and transparency. Today, there is a growing community of more than 850 Certified B Corp Selecta uses 350 plants to boost the oxygen levels in the companies from 28 countries shop and help to off-set carbon dioxide and chemical air and 60 industries working to- pollutants gether to redefine what success means with ample parking and building a in the world of business. new facility means you’re going to enLast year, J.R. Hubbard moved counter a ton of red tape. The first step Selecta Auto Body from San Fran- was acquiring an SBA loan and then cisco’s Noe Valley to the Mission Dis- we sat down with Joel Smith of Pretrict. The move provided Hubbard the cision for Collision (PFC) to layout opportunity to fulfill his dream of the shop and outfit the facility.” building one of the country’s first The big question Hubbard kept
46 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
asking himself was what are the benefits of being eco-friendly? “Why did we strive to become as green as we possibly could?” Hubbard asked. “Sure, it does give us a distinct marketing advantage and maybe it gets us in the door with more DRPs, but that wasn’t the only reason. You can make money in the collision business, but I think you also need to do it right for all your customers and partners, including the insurance companies, employees, and maybe most importantly—ourselves. I have two children and I want to be able to face my kids and providing a healthy atmosphere for our employees is a big part of it.” Acquiring the B-Corp designation was not a slam dunk for Selecta and that’s why only one body shop in the country has the certification. “The B-Corp certification was difficult, but we were willing to do whatever it took,” Hubbard said. “The B-Corp
people inspect everything and more companies get rejected than accepted. It’s not just all about the facility or even about being green, but it’s also about being socially responsible and a positive member to our community. Everything we’ve done is an investment in our future and the B-Corp certification is an integral part of it.” Hubbard graduated from San Diego State with a degree in business before entering the collision business. Pretty soon, he successfully completed three levels of I-CAR Platinum training and was managing Selecta, a 40-year-old shop on the famous Lombard Street in the City by the Bay by the late 1990s. Because he learned the business by performing every role-from estimator to body tech—Hubbard knows as much as any shop owner. “It’s all about knowledge and how to implement it,” he said. “I’m a sponge and I’m always looking for
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better methods and systems to do the best job we can. I learned a lot from my father who managed Selecta in the 1990s and also from the original owner, Dieter, who was an amazing painter. We will never stop learning and trying to improve ourselves.” Hubbard has stepped up in every area to be greener, by selecting leading equipment, tools and systems wherever he could. ABN asked him about every aspect of his construction and design, broken down by system and/or work area. Lighting: “All of our lights are LED, because they’re more efficient land use less energy. We replaced all the glass in our skylights to let in as much natural light as possible. We painted the floor to get as much reflective light as we can. We have reflective dual ballast light fixtures that use T-5 bulbs and all of the lights in work areas are on motion sensors with AB mode, which means we can turn off half of the lights when appropriate. Our lights automatically adjust to natural lighting, so they’re not working if they don’t need to.” Construction: “Using recycled materials to do the renovation was also a priority, Hubbard said. “We
have de-constructed all the support frames for the roof and have re-used existing materials and retro-fitted structure with steel. The mezzanine was renovated with existing wood as
Air system: “It was a goal for us to make sure that air circulation was adequately planned so that employees, customers and neighbors are protected. The air turnover system that
The new Selecta Auto Body is a state-of-the-art facility and people are calling it “ultimately green”
well as donated wood.” Electrical System: “All electrical work in the building was completely upgraded to accommodate all equipment and tools and to avoid overloading circuits while keeping all environmental standards in mind.”
we have installed is double the requirements set forth by the City of San Francisco. The air is cleaner here, because our advanced filtration systems are eliminating all the aerosols, carbon monoxide and dust particles, so our techs aren’t breathing it in all day
long. I have two children and I want to be able to face my kids and providing a healthy atmosphere for our employees is a big part of it.” Plants: “It is our belief that plants are beneficial to the aesthetics and physical environment; therefore we have installed plants to boost the oxygen levels in our workplace and help off-set carbon dioxide and chemical air pollutants that a typical repair shop produces. We currently have 350 plants here in the shop, but have plans to add another 150 eventually.” Detail Shop: “Our detail department specifically uses environmentfriendly products that have low to no VOC compounds, in order to adhere to our mission of becoming an ‘ultimate green’ shop. Special consideration and testing products went into our choice of products. We have installed special drains that separate oil and sediment as an extra preventative measure to avoid groundwater contaminants. The installation and use of low volume high pressure washers contributes in our aim to reduce water consumption. We use the HEPA filter in our vacuums for interior detailing which is the best filtration system for these types of equipment because it
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controls particles from re-circulating in the air.” Repair Shop: “Another step we’ve taken as a shop is to be the first shop in San Francisco to use FESTOOL products, a revolutionary, technologically advanced dust extraction system which is new to the market. It extracts and reduces bi-products of sanding. Whenever possible, we use equipment that is powered by high-efficient air compressor instead of batteries. Our goal in the future is to be more efficient by installing solar panels to re-charge battery operated equipment.” Office: “Much thought went into being green with respect to the office area. We are in the process eliminating paper whenever possible and going digital. We use portable and rechargeable estimating carts to take advantage of charging during off-peak hours giving ability to use all equipment during the day. All desks and benches in the office are made from recycled wood and steel.” Water: “We installed a low flow toilet tank and a filter system that takes full advantage of the great drinking tap water we have here in San Francisco. It’s one of best drink-
ing water in the nation and we encourage our employees to stop buying bottled water by giving them their own refillable bottles. Lastly, our tankless hot-water heater is beneficial because it only provides hot water when needed instead of constantly heating a tank. Hazardous Material: “We use a specialized local company experienced in handling hazardous materials. The shop is equipped with leak-proof containers to ensure proper storage and removal. Our employees are trained in the most effective techniques to work with pollutants, chemical solvents and other materials that can be harmful.”
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U.S. regulators blocked automakers from promoting vehicle safety ratings of more than 5 stars, three months after Tesla Motors Inc. touted an outsized score on its Model S electric car. The move adds to tension between the National Highway Traffic Safety Administration and Tesla, now grappling with bad publicity and a federal probe after a series of car fires raised questions about the safety of the Model S. Tesla said in late August that the Model S had achieved a score of 5.4 stars, a figure based on Tesla’s independent analysis of NHTSA data. Still, the statement prompted NHTSA, which issues the star ratings, to update its marketing guidelines. NHTSA now explicitly bars companies from promoting safety scores higher than 5 stars. The updated guidelines also state that the safety scores are always whole numbers. “Tesla’s claim was an example of the potential confusion and inaccuracy that could be caused by incorrect use of the 5-Star ratings information in advertising and marketing statements,” NHTSA said in a statement. Tesla declined to comment. The 5-star safety rating system has been used by NHTSA since model-year 1994 vehicles and the agency does not
issue scores above that threshold. “Advertisers who claim more than 5 stars are misleading the public,” NHTSA said, adding that violations could trigger action by federal or state authorities. NTHSA launched a probe this week into the Model S following three car fires that raised questions about the safety of the car’s design. Tesla CEO Elon Musk said in a blog post that the automaker requested the recall, but that statement was flatly denied by NHTSA administrator David Strickland. The first fire was reported in early October and the bad publicity has lopped off more than 37 percent of Tesla’s market value since Oct. 1. NHTSA’s investigation into the Model S could take up to six months and cost Tesla about $13 million, Barclays Capital analyst Brian Johnson said in a research note Wednesday. “The monetary cost of a recall is likely manageable,” Johnson wrote. “The real issue is to what extent the publicity over the fire is likely to crimp Tesla Model S sales growth.” In the past, highly publicized safety probes have led to a sales drop between 10 and 20 percent, Johnson said.
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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 49
LKQ Issues Aftermarket Wheel Recall, Focus is on State of Connecticut On October 30, LKQ Corporation and Keystone Automotive Industries Inc., collectively known as LKQ-Keystone, initiated a recall on a specific
that purchased this wheel to alert them to the recall. The company will replace the wheel on consumers’ vehicles at no charge, and they have also
aftermarket replacement aluminum wheel, part number ALY63934U20N, identified on the inside of the wheel’s casting as ALY99435U20N, likely sold between September 1, 2010 and April 30, 2013. The recall is being conducted because of potential defects that could cause the wheel to fail and which could, in turn, lead to an accident resulting in serious injury or death. The recalled part is a 7-spoke wheel design, containing the TWC logo, and the inside of one of the spokes will reflect part number ALY99435U20N. LKQ-Keystone sent letters to consumers and collision repair shops
informed shops that are affected that the company will replace the part and reimburse them for the costs associated with this replacement. Thus far, the recall only seems to have affected shops and consumers in the state of Connecticut, and Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), feels that dissemination of information pertaining to this hazard is “extremely important to the consumer and the shop that installed this wheel. National attention to the potential dangers of using inferior wheels is also important at this time since wheel failures such as this can result in serious injuries or death.”
Though the specific reason for the recall has not been released, ABAC is trying to determine what prompted the recall. Shops that may have installed one of these wheels should contact their customers to inform them of the recall. Questions and concerns about the recall should be addressed with LKQKeystone’s Milford location at 800330-3745. For general questions regarding this recall, please contact LKQ at 877-539-7322.
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LKQ Contributes $25K to the Education Foundation
LKQ Corporation has contributed $25,000 to the Collision Repair Education Foundation. LKQ’s contribution enhances the Education Foundation’s ability to offer grants and scholarships to career and technical schools and colleges and their students. By increasing educational opportunities, the students of today become tomorrow’s industry professionals. The $25,000 gift from LKQ will support the Collision Repair Education Campaign fund which provides annual student scholarships, school grants, and the annual Ultimate Makeover $50,000 school grant. CREF Executive Director Clark Plucinski noted, “LKQ has been a consistent supporter of the Collision Repair Education Foundation on several levels. Through LKQ’s part donations to collision school programs, monetary donations, and having representation on our Board of Trustees, LKQ’s has shown a strong commitment to assisting the future professionals of the collision industry. It is only through this continued support that CREF can help collision instructors in producing productive, efficient entry-level staff for the industry. We thank LKQ for their continued support.”
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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 51
I-CAR Launches Introduction to Carbon Fiber Online Course
Mitchell International Becomes Associate Member of ARA
I-CAR® is launching Introduction to Carbon Fiber (CFR01e), a new online course specifically designed to help collision industry professionals understand how to work with carbon fiber. Carbon fiber is one of several technically advanced materials becoming more prevalent due to its outstanding strength to weight ratio, contributing to automaker light- weighting initiatives in support of efforts to achieve increasingly challenging CAFE standards. The online course, Introduction to Carbon Fiber, helps to identify and understand this high-tech material and dispels related common collision repair myths. The course features interactive exercises, detailed videos, high-quality graphics, and current vehicle examples to demonstrate repair and replacement options for carbon fiber. The 2-credit hour course meets training requirements for the Gold Class Professionals™, Platinum Individual™ and Professional Development Program™ (PDP) programs for the following roles: Non-Structural Technician, Steel Structural Technician, Aluminum Structural Technician, Estimator, and Auto Physical Damage Appraiser. See the I-CAR website, www.i-car.com.
The Automotive Recyclers Association (ARA) announced that Mitchell International, Inc. is the most recent associate member of ARA. Mitchell International is a leading provider of software and services to the automotive claims and collision repair industries. “We are delighted that Mitchell has become part of the ARA family,” said CEO Michael E. Wilson. “This announcement formalizes the constructive working relationship that ARA and its members have had with Mitchell International over the years. The ARA looks forward to our mutual efforts with Mitchell International and other stakeholders in the estimatics’ community to increase the availability of original equipment (OE) recycled automotive parts in estimatics platforms used by repair professionals. As highlighted in the Association’s strategic plan, ARA is committed to the enhancement of members’ access to and supply of more reliable, consistent, and accurate parts data. Wilson added, “Access to quality OE data as well as enhancing insurance-quality parts data through greater utilization of the ARA parts grading codes, standards and certification programs is a top priority.”
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Canadian Equity Pension Fund Buys Caliber Collision
Canada’s OMERS Private Equity (OPE) announced that it, along with existing management, has acquired Caliber Collision Centers from private equity firm ONCAP, Onex Corporation’s mid-market private equity platform. Based in Dallas, Texas, Caliber is the largest independent provider of automotive collision repair services in the U.S. with a network of 157 collision centers located in California, Texas, Arizona, Nevada, Oklahoma and Colorado. The Company has approximately 3,700 employees and repairs more than 285,000 vehicles annually. “We are thrilled to partner with Steve Grimshaw, President and CEO of Caliber, and his management team for the Company’s next phase of growth,” said Tim Patterson, Senior Managing Director at OPE. “We believe that Caliber will continue to distinguish itself as the market leader in the highly fragmented collision repair industry in the years ahead.” Caliber Collision Centers is the largest collision repair company in America with 157 I-CAR Gold Class Professional certified collision repair centers in California, Arizona, Nevada, Texas, Oklahoma, and Colorado.
Seidner’s Wins Completely Elite Award for CSI Scores
Seidner’s Collision Centers was recognized for Outstanding Customer Service by TenPoint Complete at the Collision Industry Awards ceremony held in November in Las Vegas.
Michael Sturgis (left) presents Steve Seidner with the Completely Elite Award
The Completely Elite Award is a national award for repair facilities using TenPoint’s CSi Complete Customer Satisfaction Survey solution. Seidner’s Collision Centers established itself as the leader in Customer Service & Experience, Employee Training & Certification, Industry Leadership & Participation and Community Service. “Steve Seidner has set, and clearly delivered on, his goal to deliver customers an Extraordinary Repair Experience,” said Michael Sturgis, Partner with TenPoint Complete.
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52 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
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Safelite Group Acquires ‘Substantially All’ of Guardian Auto Glass LLC, Not Including RV Glass Management
Safelite® Group, the nation’s leading vehicle glass company and owner of Safelite AutoGlass®, has reached an agreement to acquire substantially all of the vehicle glass repair and replacement assets of Guardian Auto Glass, LLC, a joint venture of Guardian Industries Corp. and LRST, LLC. Additionally, Safelite® Group has reached an agreement to acquire the vehicle glass insurance claims management assets of Guardian Glass Network, not including its RV glass claims management operations. Both contracts were signed on December 1, 2013 with an expected closing at the end of business on December 31, 2013. Auburn Hills, MI-based Guardian Industries was founded in 1932. Guardian Auto Glass currently includes approximately 253 employees in 60 retail locations throughout the U.S. Guardian Auto Glass provides vehicle glass repair and replacement services in 12 states with a heavy emphasis in Ohio, Virginia, West Virginia and Florida. Guardian Auto Glass’ management team will assist in the transition. Guardian Glass Network operates its vehicle glass claims adminis-
tration operation in Worthington, Ohio, and has 21 employees, 13 of whom will join Safelite® Solutions. The remaining Guardian Glass Network employees will continue to operate the RV glass claims program. “Guardian’s well-established brand, commitment to high-quality customer service, and wide footprint made it attractive to Safelite® in its goal to become the “natural choice” for vehicle glass repair and replacement services in the U.S.,” said Tom Feeney, president and CEO. “The acquisition positions Safelite® to grow business in the impacted geographies. Additionally, the acquisition of the Guardian Glass Network will support the growth goals of Safelite® Solutions aimed at helping insurance clients achieve policyholder delight.” “Safelite® is committed to its retail auto glass and insurance claims businesses as demonstrated by its dynamic growth in recent years,” said Mike Morrison, president of Guardian Automotive. “Our people are joining another established brand with a history of growth and a long term focus on the retail automotive glass business.”
Woman Fights Ticket for Driving with Google Glass A California woman pleaded not guilty to what is believed to be the first traffic citation alleging a motorist was using Google’s computer-in-an-eyeglass. The device, known as Google Glass, features a thumbnail-size transparent display above the right eye. The technology will not be made widely available to the public until 2014, but defendant Cecilia Abadie was one of about 10,000 “explorers” who received the glasses earlier this year as part of a tryout. Her case touches several hot-button issues, including distracted driving, wearable technology that will one day become mainstream, and how laws often lag technological developments. Abadie was pulled over in October on suspicion of going 80 mph in a 65 mph zone on a San Diego freeway. The California Highway Patrol officer saw she was wearing Google Glass and tacked on a citation usually given to people driving while a video or TV screen is on in the front of their vehicle. Abadie, a software developer and tech true believer, pleaded not guilty to both charges in San Diego traffic court. Her attorney William Concidine told The Associated Press that she will testify at a trial scheduled for January that the glasses were not on when she
was driving, and activated when she looked up at the officer as he stood by her window. The device is designed to respond to a head tilt by waking itself up. Concidine also said the vehicle code listed in the citation applies to video screens in vehicles and is not relevant to mobile technology such as Google Glass. The CHP declined comment on Concidine’s assertions. “This has to play out in court,” spokeswoman Fran Clader said. At the time of Abadie’s citation, the agency said anything which takes a driver’s attention from the road is dangerous and should be discouraged. The lightweight frames are equipped with a hidden camera and tiny display that responds to voice commands. The technology can be used to do things such as check email, learn background about something the wearer is looking at, or to get driving directions. Legislators in at least three states - Delaware, New Jersey and West Virginia - have introduced bills that would specifically ban driving with Google Glass. Chris Dale, a spokesman for the tech giant, said he was not aware of any other tickets issued for driving with Google Glass.
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Willets Point Shop Owners Face First Deadline for Relocation The developers of a mega-mall slated to rise on the parking lot at Citi Field are seeking almost $43 million in tax breaks, but opponents of the project — including many auto body shops in
Willets Point business owners face impending deadlines to relocate after the Queens Borough Board approved the city to sell the 23-acre area to developers. Photo by Alex Robinson, NYDN
the area — argue they should get no breaks at all. “This whole thing has been a disaster from beginning to end,” said state Sen. Tony Avella (DBayside.) “How do you justify (giving) tens of millions of taxpayer money when you’re selling the property to the developers for a dollar?” More than 50 of the auto body shops in Willets Point are now in talks to move near the Hunts Point section of the Bronx. The city has set aside $15.5 million to help them relocate. More than 30 have either relocated, signed a lease or are close to doing so, according to the city Economic Development Corp. “These provisions are a small part of the overall $3 billion private investment QDG is making in Willets Point,” Queens Development Group spokesman Phil Singer said in a statement. It “will reverse decades of contamination and create thousands of new jobs, affordable housing, retail and open space.”
But Arturo Olaya, president of the Willets Point Defense Committee of Small Businesses and Workers, said the city must do more to help the merchants. Olaya has appealed to the city to provide business owners with a sixmonth extension to relocate. “They’re displacing us to give the land to the billionaires,” said Olaya, who has owned Arthur’s Auto Trim Shop at Willets Point for 19 years. “This is a disgrace.” The city offered a payment of 12 months rent to any business owners who relocated off city-owned land in Willets Point by Nov. 30. The City Council passed a $3 billion plan in October that would see the Iron Triangle area, occupied for years by small repair shops and some manufacturing businesses, redeveloped into a commercial, retail and residential site. Some business owners took the relocation deal and moved on with or without a new location. Business owners who moved out of the Iron Triangle were eligible for one year’s rent in their new locations, if they left before Nov. 30. They can still get six months’ rent if they move before Jan. 31. Johnny Yaqubi owned Johnny’s Auto Body and Repair Shop for 10 years before he accepted an offer to relocate. “What choice do I have?” said Yaqubi. But he did not have a new location yet when the city came to take the keys to his business. The city will pay him $14,000, which was the equivalent cost of 12 months rent for Yaqubi. “That’s what they said, but I have not gotten paid yet,” he said. Yaqubi has not found a new location for his business and was not sure
where he would relocate. The city also evicted several businesses as the deadline loomed. Blas Olivares owned his auto body repair shop for 20 years before the city forced him to vacate his store Friday. Olivares claimed he recently had a meeting with a city lawyer in which he was told he could stay until Dec. 31. “I’ll try to go to another place, but we don’t have any place to take the business,” he said. Olivares said he would put his belongings in storage for now until he figures out a new location. A group of 52 business owners, represented by an organization called the Sunrise Cooperative, are closing in on a deal with the city to relocate together. The group is in negotiations with a large facility in Hunts Point, and is also looking at locations in Astoria, Maspeth and Brooklyn. “Everyone said you won’t get anything from the city,” said Sergio Aguirre, an organizer for the group. “We know this isn’t the best agreement with the city, but it’s something. It was this or nothing.”
Aguirre acknowledged the new location will not be the same, but will be better than relocating separately. “It’s going to be good for us because there’s a lot of customers who come into Willets Point because of the price,” he said. “We had the best prices in New York for auto repairs. We’ll only have a portion of the customers in our new location, but we’ll rebuild that again.” Several business owners have also vowed to stay in the hope that a better deal will be reached with the city. Bijy Kumar, who has owned a business that sells wheels and rims for 11 years, said he has no plan to relocate anytime soon. He has not even thought about where he would go. “I have no idea. No place,” he said. “It depends how hard we fight.” The next deadline remaining business owners will face is Jan. 31. Business owners who relocate off city-owned land before the end of January will receive a payment worth six months of their rent. If they leave after the deadline, they will receive nothing.
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Florida to Allow Digital Proof of Car Insurance Motorists in Florida are now permitted to show proof of motor-vehicle insurance on their electronic devices. Gov. Rick Scott approved a measure allowing drivers to show their proof of insurance through cell phones, tablets and other electronic devices on Dec. 10. The law says drivers can download an application on their personal devices that lets them display a digital copy of their insurance card when pulled over by police. Julie Jones, secretary of the Department of Highway Safety and Motor Vehicles, said the new policy should be in
force by January. Motorists were ticketed 326,168 times last year for driving without proof of insurance, according to Florida Uniform Traffic Citation Statistics. But of those, 250,651 were dismissed, nearly 77 percent, usually when drivers later proved they had coverage.
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Artists for Education Has Donated $24K to Education Repair Foundation Artists 4 Education has announced that it raised and donated $23,924.32 to the ICAR Collision Repair Education Foundation. Over the past year, Artists 4 Education has worked in conjunction with Matrix System Automotive Finishes, a Quest Automotive brand, to organize efforts to raise money and industry awareness for the I-CAR Collision Repair Education Foundation. This endeavor involved the expert skills of the industry’s top automotive artists and industry partners across the country. With the participation of various industry partners such as Nuplex Resins, M.F. Cachet Company, Chromaflo Technologies, Dan-Am Company/SATA, Airbrush Action, Anest Iwata, Dedoes Industries, Dorn Color, Miller Electric, FBS - Finding Better Solutions, and Pro-Spray Finishes, cash donations and items were donated to help support the cause. The all-star artist line-up involved some of some of the best airbrushers and pinstripers in the industry: Nub, Steve DeMan, Mike Learn, Mitch Peacock, Ron “Flea” Fleenor, Bugs, Armando
Serrano, Jeff Styles, Jonathan Pantaleon, Ryan Evans, Richard “Duke” Bobinac, Pat Paldino, James Kunzinger, Darryl
Strader, Don Ruks, John Wargo, Mark Marion, Justin Nichols, Michael Maggard and Josh Bourassa. David Brunori, President of Quest Automotive Products, explains that, “It is our responsibility as industry participants to support the I-CAR Collision Repair Education Foundation whose sole purpose is to raise awareness to the growing shortage of certified technicians entering the collision repair industry. Our 1st annual Artists 4 Education campaign was a
huge success—the artist community and manufacturers stepped up in a big way. We are truly humbled by their commitment to the cause.” “On behalf of the I-CAR Collision Repair Education Foundation staff, Board of Trustees, and the high school/college collision students nationwide that we support, we would like to thank Artists 4 Education and their supporters for this incredible fundraising program. It was incredible to see all the various auction items and how so many came out to support the program through donations and bids. With many collision school programs across the country facing reduced and limited budgets, these funds will go a long way with assisting in the students’ technical education. We look forward to working together next year to help make this program even bigger and better,” said Collision Repair Education Foundation Director of Development, Brandon Eckenrode. For 2014 we are looking forward to engaging more awesome artists in our industry to participate! If Artists 4 Education can help one student enter into this growing industry, the mission was a success. For more information about Artists 4 Education, go to: www.artists4education.org.
Asbury Automotive Group Donates $120K in Parts
Atlanta-based Asbury Automotive Group, Inc. has donated $120,000 in parts to local high school and college collision school programs through the Collision Repair Education Foundation. The donations, which include bumper covers, hoods, fenders and other parts, provide students with the opportunity to practice collision repair on current model vehicle parts. As collision instructors are facing reduced budgets, these types of donations are vital for the student’s technical education. “Our dealership groups across the country are proud to be a part of this program, as we help to prepare these students for their future, and our future as an industry,” stated Asbury’s EVP and COO Michael Kearney. Education Foundation Director of Development Brandon Eckenrode noted, “It has been a pleasure working with Asbury to coordinate the donation of parts from their numerous dealerships to collision school programs. Not only do these donated parts help the programs, but they also help introduce the instructors to dealership staff for future support opportunities. These introductions could also potentially lead to future employment of our students. I commend Asbury for making this a company-wide effort.”
NABC Announces 2014 Board of Directors
Back row, left to right: Fred Iantorno, Chuck Sulkala, Bill Mayer, Kent Seavey, Nick Notte, Domenic Brusco, Elizabeth Clark, Rick Tuuri. Middle row: Elizabeth Stein, Jon Faris, Renee Ricciotti, Craig Camacho, Michael Jordan. Front row: Karen Fierst, Petra Schroeder, Taylor Bowes. Not pictured: Brandon Devis, Joe Lacy, Jeff Peevy, Mark Lovell, David Merrell, Jim Ocampo, Michael Quinn
The National Auto Body Council (NABC) has announced its newest board members. New officers elected at NABC’s recent annual meeting in Las Vegas include: ● Nick Notte, president (Sterling Autobody Centers) ● Elizabeth Stein, vice president (Assured Performance) ● Fred Iantorno, treasurer (CIECA) ● Domenic Brusco, secretary (PPG Automotive Refinish) ● Craig Camacho, director-at-large
(Keenan Auto Body) ● Brandon Devis, past president (Sherwin-Williams) New to the NABC board are Taylor Bowes (3D Collision Centers), Elizabeth Clark (State Farm), Joe Lacy (GEICO) and Jeff Peevy (I-CAR). Returning board members for the National Auto Body Council include: Jon Faris (Enterprise Rent-A-Car); Karen Fierst (Kerenor Consultants); Michael Jordan (Manchester Collision Center); Mark Lovell (LKQ Corporation); Bill Mayer (Insurance Auto Auctions); David Merrell (PartsTrader); Jim Ocampo (Axalta Coating Systems); Michael Quinn (uParts, Inc.); Renee Ricciotti (3M Corporation); Petra Schroeder (Axalta Coating Systems); Kent Seavey; and Rick Tuuri (AudaExplore, a Solera Company). “We are pleased and excited to welcome such a strong roster of industry leaders whose passion and dedication to serving our industry will be invaluable,” said Chuck Sulkala, NABC executive director. “We were in the enviable position of having 13 stellar candidates vying for seven open board positions, and we thank each candidate for their willingness and commitment to helping us further our mission to promote our collision industry.”
56 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
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DOJ Says Grand Jury Indicts Two Automotive Parts Suppliers for Price Fixing of Anti-Vibration Parts
A Cleveland federal grand jury returned an indictment against two executives of a Japanese automotive supplier for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold to Toyota and installed in U.S. cars, the Department of Justice announced today. The indictment, filed in U.S. District Court for the Northern District of Ohio in Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, to rig bids for and to fix, raise and maintain the prices of antivibration rubber parts sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North America Inc. and affiliated companies (collectively Toyota) for installation in automobiles manufactured and sold in the United States and elsewhere. Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and include engine mounts and suspension bushings. They are installed in automobiles for the purpose of reducing road and engine vibration. The indictment alleges, among other things, that from as early as
March 1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements. The indictment alleges that the conspiracy involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry, Tundra, Sequoia, Rav4, Sienna, Venza and Highlander. “Today’s indictment reaffirms the Antitrust Division’s commitment to hold executives accountable for actions that corrupt the competitive landscape and harm consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division. “The Antitrust Division continues to work closely with its fellow competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.” Hayashi and Nonoyama are charged with a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Montana Body Shop Fined by OSHA Following Fatal Fire-Explosion The U.S. Department of Labor’s Occupational Safety and Health Administration has cited Rick’s Auto Body of Missoula for nine serious violations of workplace safety and health standards. The employer faces $51,100 in proposed fines as a result of an August inspection following a fatal accident at the facility. In August, Bruce Hall, an employee of Rick’s Auto Body, died from burns suffered when static electricity caused solvent fumes to ignite. “In this case, the employer disregarded necessary safety measures, placing employees in harm’s way,” said Jeff Funke, OSHA’s area director in Billings in a press release announcing the fines. “The inspection, prompted by a workplace fire, identified the improper storage of flammable liquids at the facility and inadequate grounding and bonding methods for the transfer of flammable liquids.” According to OSHA, the serious violations identified during the investigation include improper storage of flammable and combustible materials, use of storage containers not approved for flammable goods and failure to store overhead materials securely. The employer was also cited for failing to label emergency exits,
ensure adequate controls for leakage or the escape of flammable materials, and ground electrical equipment around combustible materials. Additionally, the site was improperly ventilated and lacked sufficient fire sprinkler systems, endangering individuals in an emergency. A serious citation is issued when there is a substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known. The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission. The shop’s owner, Rick Booth, said they met with OSHA officials in Billings over the summer, who agreed to reduce the fine. Booth said they have paid the fine, and no longer recycle paint at the shop. He said they now work with Safety Clean, which picks up and hauls away paint waste from the shop. Booth said he and his employees are working to remain in compliance with OSHA to ensure a similar accident never happens again.
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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 57
ABPA Files Suit Seeking to Overturn Ford Design Patents The Automotive Body Parts Association (ABPA) announced its decision to take legal action against Ford Global Technologies. ABPA is challenging ‘the validity and enforceability of Ford’s design patents on common collision repair parts.’ On November 25, ABPA filed a lawsuit in the United States District Court for the Eastern District of Texas against Ford Global Technologies, LLC that seeks to have design patents for body parts ruled invalid. Ford Global Technologies is a wholly owned subsidiary of Ford Motor Company that manages intellectual property and technology commercialization for Ford Motor Company. The complaint seeks to have the court declare Ford Global Technologies’ design patents invalid and permanently enjoin the company from enforcing automotive body repair parts patents against ABPA members. According to the complaint filed by ABPA, Ford Global Technologies “… has threatened to sue one or more ABPA members for alleged design patent infringement for selling automotive body repair parts allegedly covered by design patents owned by Ford Global Technologies.”
The complaint also asserts that due to the threats of litigation against ABPA members, “Ford Global Technologies’ actions have deprived ABPA Members of the economic opportunity to compete in the marketplace for automotive body repair parts for Ford Motor Company automobiles and have improperly distorted the marketplace by decreasing the supply and increasing the cost of automotive body repair parts for Ford Motor Company automobiles.” In a letter from Ed Salamy, executive director of the ABPA, posted on the association’s website, states, “The basis of our lawsuit is to challenge the validity and enforceability of Ford’s design patents on common collision repair parts. The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.” Salamy also serves as executive director of the Quality Parts Coalition, a group representing parts suppliers and insurers, seeking permanent legislative change to U.S. design patent law, legislation generally refered to as
Professional Parts Group Earns NSF International Auto Collision Parts Distributor Certification
The Professional Parts Group has earned its Automotive Collision Parts Distributor Certification from NSF International. NSF International is an independent testing and certification organization with nearly 70 years of testing and certification experience. Developed to respond to the needs of collision repair shops, insurers and ultimately consumers, the NSF Automotive Collision Parts Distributor Certification Program’s key requirements include automotive parts traceability and recall processes. To earn certification, the Professional Parts Group demonstrated the effectiveness of its records and inventory systems in tracking orders and parts through the supply chain. The Professional Parts Group also met the following criteria required for NSF Automotive Collision Parts Distributor Certification: ● An ISO 9001-certified quality management system for its distribution locations in Denver, CO, and Atlanta, GA; corporate office in San Dimas, CA; and warehouses in Chicago, IL, and Charlotte, NC. ● A defective parts procedure including a customer parts complaint process. ● The ability to administer a manufac-
turer’s recall. ● When necessary, a formal corrective action to complaints and an immediate recall plan. Having met all of the certification requirements, the Professional Parts Group is authorized to use the NSF Certified Distributor mark on its website and promotional materials. The company also appears in NSF’s online certification listings and will undergo ongoing quality system audits to maintain certification. “NSF International’s Automotive Distributor Certification Program highlights the essential role distributors, such as the Professional Parts Group, play in providing quality parts,” said Bob Frayer, director of NSF International’s Automotive Parts Certification Programs. Added Christopher Northup, CEO and managing partner of Professional Parts Group, “Our designation as an NSF International Certified Distributor is a key factor in meeting customer’s expectations. The Professional Parts Group is focused on quality and integrity at every level, and every professional in our company contributed to our success in achieving this important certification from NSF.”
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the PARTS Act. In 2009, Ford reached an agreement with LKQ Corporation to settle litigation filed by Ford over collision parts. As part of that agreement LKQ agreed not to challenge the validity of Ford’s design patents and, in exchange, LKQ would become the only distributor of non-OEM collision parts covered by Ford patents. In 2008 the ABPA called for support for design patent exemptions for aftermarket parts. In 2006, Ford had filed a suit to stop the importation of aftermarket versions of certain F-150 truck parts. In 2007, a ruling by the International Trade Commission (ITC), which named several ABPA members, awarded the design patent protection that Ford sought for seven separate alternative parts for the 2004-2007 Ford F-150. The decision prohibited the sale of aftermarket replacements for these parts. A statement published on the association website says: ‘The continued sale of these parts is of paramount concern not just for ABPA members and their livelihoods, but also to millions of American consumers who depend on quality alternative collision repair parts for cost effective repairs.’
LKQ Corp Buys Keystone Automotive Ops for $450M
LKQ Corporation announced that it has signed a definitive agreement to acquire Keystone Automotive Operations, Inc., a leading distributor and marketer of specialty aftermarket equipment and accessories in North America, for $450 million. The transaction is expected to be completed in the first quarter of 2014 and is subject to customary closing conditions and necessary regulatory approvals. Established in 1971, Keystone has over 1,500 employees with 25 locations serving more than 20,000 specialty retailers and equipment installers throughout North America, offering a broad product line of over 300,000 SKUs from over 800 suppliers. Keystone markets products to serve the following six category segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories. “LKQ will become a leading player in the specialty aftermarket equipment and accessories business with this acquisition,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.
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Continued from Page 38
ABARI Shows Support
ABARI lobbies for legislative changes and files complaints on members’ behalves with local business regulators. They’ve also established a close-knit, helpful community so that if a member has a question about certain aspects of their business, they can call ABARI to seek advice from members with more experience in that subject. As with most associations, the biggest challenges ABARI faces is in keeping members
engaged at a high level and educating members on new legislation, regulations and products. One way they combat these problems is by holding quarterly meetings, in addition to their legislative activities. ABARI offers their full support to members and consumers. Their mission is to protect consumers and small businesses, which is the category that most of their members fall into. Petrarca notes, “everyone has the same interests, so there is little conflict because we all want to benefit the consumer.”
Over the past 15 years, ABARI has worked to protect consumers and to promote healthy competition between small businesses. They are currently writing a code of ethics which members will be required to comply with if they wish to continue their affiliation with ABARI. ABARI also has their own dispute mechanism on their website where consumers can lodge complaints against member shops and ABARI will attempt to facilitate a resolution. Jina Petrarca has served as legal counsel for ABARI since 2007, but her
father has been involved with the collision repair industry for over 40 years and was ABARI’s president for some time in the past. Petrarca states, “my family and I feel very strongly about ABARI. We are just trying to do the right thing and find reasonable solutions to the problems facing this industry.”
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www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 59
LendDeck.com Says SBA Loans for Body Shops at All-time Low The Small Business Administration has hit its lowest level in history for funding small business loans in amounts up to $150K, according to on line lender LendDeck.com. Online alternative financing specialists like LendDeck.com are finding a great opportunity in the SBAs shortfall in funding. Small business loans for auto body shops are increasingly difficult to come by when attempting to use traditional channels like banks and credit unions so some small business auto body shop owners are turning to alternative financing sources like LendDeck.com to get the cash they need for their business. Lisa Wolfrum, President of SBL
Capital Partners recently stated that, LendDeck.com was established specifically to fill a huge gap in the market where traditional banks and the Small Business Administration have failed in funding loans for American small businesses. Small business body shop owners in need of cash and financing can simply log on the to the website at http://www.LendDeck.com and complete a short survey form to find out how much funding the business can qualify for. There are several different business financing options available and the personal financial representative at LendDeck.com helps each business owner find the right solution for their needs. Many small business
loans for auto body shops are denied by the SBA due to low credit scores of the business owner, however at LendDeck.com, they focus more on the business operations and cash flow rather than the personal credit of the proprietor. Once a funding decision is made and the terms are agreed to by both parties, the business owner can have cash in hand in as little as three days. LendDeck.com keeps the paperwork to a minimum and helps small business owners get the capital they need without the hassle they dont need. Being able to offer financing to small businesses in a streamlined manner that gets cash into the economy without taking the business
Progressive Insurance Chairman, Peter Lewis, Dies at Age 80 Peter Lewis, Chairman of automobile insurance giant Progressive Corporation, died at his home in Coconut Grove, Florida on Saturday, November 23. Lewis was instrumental in building Progressive into an automobile insurance titan. He had just celebrated his 80th birthday on November 11. The long-time head of Progressive took over the small company that his father helped to found in 1937 and grew it into a powerhouse, becoming a billionaire in the process. Lewis accomplished this growth by developing accurate rates for each individual policyholder so that those with low risk did not have to subsidize those with high risk. The company has recently characterized these high risk benefactors in TV commercials as “ratesuckers.” Under Lewis, traditional methods of determining rates, including the use of judgment and subjective factors, were eschewed, and accurate data-driven decisions were championed. Perhaps most significantly, Progressive embraced the use of credit scores in rating automobile insurance policies. Although controversial, the
use of credit was critical in propelling Progressive to the top of the automobile insurance world both in terms of premium volume and profitability. More recently, and also under his leadership, Progressive has been actively developing telematics rating systems, also known as “black boxes.” Sometimes refered to as usage-based automobile insurance, these systems compute insurance rates based upon data taken directly from your automobile. Variables such as how you drive, what time you are on the road and the number of miles that you drive are all extremely powerful predictors of your risk of accidents and claims. Under Lewis, Progressive also pioneered advances in claims handling methods and the online marketing of insurance. Although Lewis is also known for having championed the legalization of marijuana. He was probably the country’s most high-profile billionaire backer of drug law reform. During the November 2012 election, he spent almost $3 million helping secure the passage of marijuana legalization bills in both Washington state and Massachusetts. The National Or-
ganization for the Reform of Marijuana Laws estimated that Lewis had spent well over $40 million funding the cause since the 1980s. Nonetheless, his legacy in the insurance world is of far greater importance. Under Peter Lewis’ leadership, Progressive helped to transform the world of automobile insurance, improving the accuracy of rates and utilizing the still controversial use of credit scoring throughout the industry. Chief Executive Officer Glenn Renwick is taking the additional role of chairman. Renwick, 58, will also retain the title of president, the Mayfield Village, Ohio-based insurer said today in a statement. Lewis was CEO from 1965 to 2000 when he turned over the job to Renwick. The company’s largest shareholder, he remained non-executive chairman until his death on Nov. 23. Progressive joins the two largest U.S. providers of car coverage in turning to a single person to handle the roles of chairman and CEO. Ed Rust leads State Farm Mutual Automobile Insurance Co., and Tom Wilson runs Allstate Corp.
owner away from their business is one of the things were the most proud of at LendDeck.com. Concluded Wolfrum. Although LendDeck.com doesn’t fund true start up businesses, they will try to work with any small business that has been in operation for at least four months. For further information, please contact: Lisa Wolfrum, President of SBL Capital Group, LLC - 800-2136456, or visit their website at http://www.LendDeck.com. This article was originally distributed via PRWeb. PRWeb, WorldNow and Autobody News make no warranties or representations in connection therewith.
NHTSA Announces Tesla Battery Fire Probe
The National Highway Traffic Safety Administration announced on November 19 that it was opening an official investigation into Tesla Motors Inc. two battery fires in its electric vehicles, and two weeks later, the agency is now asking that Tesla hand over all of its data on battery fires. According to The Detroit News, the NHTSA requested in a letter dated November 27 that Tesla turn over detailed records of all consumer complaints, field reports, warranty claims, and property damage claims. The agency wants the results of tests, surveys, stimulations, and other efforts to review the battery fires and presumed defect, and it wants to determine whether Tesla has worked to make any changes to the electric vehicle to further prevent any future issues. The data request is standard practice for the NHTSA as it works to finish its investigation. Still, the move shows which records officials are interested in going over to determine whether Tesla’s Model S is at fault or if the two fires in five weeks occurred because of uncontrollable circumstances.
Axalta Coating Systems Presents ASE Refinish Technician of the Year Award to Leonard King of Gaithersburg, MD
Last week in Newport Beach, California, Axalta Coating Systems presented the National Institute for Automotive Service Excellence (ASE) Refinish Technician of the Year award. Leonard King of Euro Pros Collision Center in Gaithersburg, MD, won this prestigious award. Leonard began his career in the industry 25 years ago. Axalta has been a sponsor of the
award for more than 10 years. Scott Diaz, an Axalta Training Manager, presented King with the award before an audience of several hundred at the Fairmont Hotel. “Axalta is pleased to present the Technician of the Year award. Technicians are invaluable, in that they are the direct users of our refinish products and they help restore cars to their original beauty, utilizing
60 JANUARY 2014 AUTOBODY NEWS | www.autobodynews.com
Axalta’s exceptional paint products. We appreciate their knowledge, attention to detail and all they do to help demonstrate brilliant color,” Diaz stated. ASE was established in 1972 as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians
and parts specialists. Today, there are more than 330,000 ASE-certified professionals at work in dealerships, independent shops, collision repair shops, auto parts stores, fleets, schools and colleges throughout the country. For more information about ASE, visit the Web site at www.ase.com. ASE has been honoring the best of the best in our industry for more than 30 years.
CEI Makes the Case for Outsourcing Collision Repair
Kathi Croze, CEI’s national sales manager for the government fleet market, talked with attendees at the Oklahoma Fleet Management Association meeting this week how outsourcing their collision repair work can help municipal fleets save money and make better use of their labor force. Ms. Croze was invited to be a charter member of the association, which held its first meeting in four years on Thursday, December 5, in Tulsa, OK. Among topics discussed were whether to convert the informal group into a more formal association. Ms. Croze was among the vendors exhibiting at the meeting. “Two of the primary reasons government fleets use CEI for collision repair services are that their repair cycle time is greatly reduced and the data we collect and return to them is in an easily manageable format. We can break down their repair costs and accident information so they know the who, what, when, where and how much of each accident and by department. That information is very powerful to them,” said Ms. Croze. Earlier this year, Ms. Croze was presented with the Distinguished Service Award by the National Con-
ference of State Fleet Administrators. In 2012, she was also named one of the top women in the fleet industry by the trade magazine, Automotive Fleet. She has also been a member of the NAFA Fleet Management Association for 35 years and was named its first female affiliate trustee in 2003. CEI is a leading provider of technology-enhanced vehicle accident, driver safety and fleet risk management services. Its provider network consists of some 4,000 collision repair shops in North America, and includes nearly 900 truck collision repair centers. Its customers include self-insured, commercial, and institutional and government fleets, directly and through alliances with fleet leasing companies. CEI also provides vehicle direct repair program outsourcing to leading property and casualty insurance companies. For more information, please visit: http://www.ceinetwork.com.
Service King Gifts Refurbished Vehicle to Family in Need
Service King Collision Repair Centers recently partnered with Farmers Insurance to surprise a deserving family with a new vehicle as part of the Recycled Rides program. The family, nominated by SafeHaven, an organization dedicated to helping victims of domestic violence in Tarrant County, Texas, received the vehicle at a surprise ceremony on Tuesday, Nov. 26. Recycled Rides is a nationwide community service project that is funded and run by members of the National Auto Body Council (NABC). Members repair and donate recycled vehicles to families and service organizations in need. “Service King is proud to be a part of this year’s Recycled Rides program, which delivers cars to families in need all over the country,” said a Service King representative.
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Caliber Collision Acquires Store in Temple, TX, Makes 36th New Store in 2013
Caliber Collision Centers continues its expansion in 2013 with the announcement that it has acquired Temple Collision, a 23,500 sq. ft. facility located at 2702 West Avenue M, Temple, Texas. and reopened the location as Caliber’s new Temple center. This most recent acquisition marks Caliber’s 36th new location in 2013. “Today’s opening of our new Temple center increases our total locations in the Texas market to 57 as we continue to grow organically and through strategic acquisitions across the western U.S.” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “We are committed to adding centers in every Caliber market that provide customer choice and industry-leading metrics.” “Our new Temple center brings Caliber Collision’s locations to 158 as we continue to grow as the collision repair provider of choice in every community we serve,” added Mark Sanders, President and Chief Operating Officer for Caliber Collision Centers. Caliber operates collision repair centers in Ariz., Calif., Colo., Nev., Okla., and Texas.
USAA to Hire Up to 1,215 New Employees in Hillsborough County, Florida Florida state officials announced that United Services Automobile Association (USAA) will expand its presence in Hillsborough County, creating up to 1,215 new jobs and $164.3 million in capital investment by 2019. To accommodate the anticipated growth, USAA will initially lease 50,000 square feet of temporary office space at Lakeview Center in Tampa, with plans to construct a new, 420,000 square foot facility at the Crosstown Center in Brandon by 2015, according to the announcement. USAA, a leading insurance provider to the military community, already has a significant presence in Florida. The company currently employs more than 1,800 individuals at its Commerce Park facility in New Tampa, Hillsboough County, with more than 600 additional employees located throughout the state. Headquartered in San Antonio, USAA also maintains operations in Phoenix; Colorado Springs, Colo.; Norfolk; Va.; and the Dallas area. “The expansion of USAA in Hillsborough County will create over 1,200 new jobs for Florida families, meaning 1,200 families will have the opportunity to live their version of the
American Dream right here in the Sunshine State,” Florida Governor Rick Scott said in a statement. “This is great news for Florida families and is another sign that Florida is becoming the number one state for business. With nearly 370,000 jobs created in two and a half years and an unemployment rate below that national average, we know it’s working in Florida.” “USAA is growing as the demand for our financial products and services among the military community increases,” USAA CEO Joe Robles said. “We’ve had a great team of employees in Tampa for 40 years and we are excited to grow that team in this great military community.” USAA has operated in Florida for more than 40 years, with a significant presence in Hillsborough County since selecting Tampa as its southeast home office location in 1987, said Ken Hagan, chairman of the Hillsborough County Board of County Commissioners. “They have deep roots in this community, and reflect our values of service and commitment to the military. We are proud to support their growth and look forward to many years of future success,” he said.
www.autobodynews.com | JANUARY 2014 AUTOBODY NEWS 61
NC’s Sandhills Community College Students Help in Restoring ‘Annabelle’, Pinehurst’s 1937 Fire Engine
In March 2010, Jamie Boles and his son Glenn went to the Rowan County town of Landis in order to meet with a collector of antique fire and ambulance equipment. The collector had purchased an old firetruck in 1981 from an antiques dealer in Carthage, who had purchased it from a farmer who used it to water his crops. Sure enough, the firetruck was the very same one the village of Pinehurst purchased in 1937 from the Seagrave Company of Columbus, Ohio. They had found “Annabelle.” As the second motorized fire engine purchased by Pinehurst, Engine One proudly served the village from 1937 until it was sold to the farmer in 1973. Of course, Boles thought, this fire engine needed to be returned to the village—it was part of the rich history, the heritage and the traditions of Pinehurst and the Pinehurst Fire Department. Boles set the wheels in motion for the truck to begin its relocation back home. Knowing that Sandhills Community College has a collision repair and refinishing technology program, and thinking that this could be an interesting project for students in the program, Larry Harter, of the Sandhills Chapter of the Antique Automobile Club of Amer-
ica, put Pinehurst Fire Chief Carlton Cole in touch with SCC’s automotive technology department chair Alex Cameron.
Deputy Fire Chief Floyd Fritz and Fire Chief Carlton Cole, of the Pinehurst, NC, Fire Department, present a photo of Annabelle, while standing in front of her, to Frank Evans, coordinator of the Collision Repair and Refinishing Technology program at Sandhills Community College. The photo is of the restored fire engine that students in the program helped the department refurbish over the past two years
“We had no room for an entire firetruck in our facilities,” said Frank Evans, coordinator of the collision repair and refinishing department. “But
we wanted to be involved. “I thought this could prove to be a fantastic learning experience for our students, plus it allowed them to participate in a unique project that touches their community. We decided to restore in it pieces, allowing our students in our painting and refinishing, special finishes and non-structural damage classes work on the firetruck.” Each semester, different portions of the truck were brought to Sirotek Hall as students learned about repair and refinishing. Other members of the community and members of the Pinehurst Fire Department were busy restoring chrome, gold leaf lettering and striping on the truck per exact factory specifications. There were mechanical repairs, and some had the task of tracking down or restoring items like ladders, bells, nozzles, extinguishers, wood decking and many other details of Annabelle. After two years, the refurbishing of Engine One is now complete. Annabelle hearkens back to a much simpler time. In 1904, the resort village of Pinehurst formed a volunteer fire department. Hose Company Number One had hand-drawn hose carts housed in the
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Pinehurst Resort’s laundry building. In 1930, the department needed to centralize the fire suppression equipment, so it moved to the first designated location on Community Road. A 1925 AmericanLaFrance Brockway Torpedo triple combination pumper chemical and hose motor car was the first motorized apparatus. In 1937, Annabelle was brought to the station. There she lived until she was sold to the farmer in 1973 to be used as irrigation equipment. Pinehurst constructed the village government complex on Magnolia Road in 2001, where the Fire Department is now located. And how did this fire engine get the name Annabelle? “We are very creative here at the fire station,” said Deputy Fire Chief Floyd Fritz. Tuns out the truck has a siren and a bell. So, naturally, “Annabelle.” The restored fire engine will now be used for public education projects, exhibits, at civic events and in parades. There are still a few details of the truck to renew and replace, but for the most part, she is complete. When Annabelle passes and sounds her sirens and horns in local parades, many in the community can smile with pride knowing they had a hand in the restoration.
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