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VOL. 33 ISSUE 1 JANUARY 2015
Four News Stories from 2014 that Will Impact the Entire Collision Repair Industry in 2015
Freer Auto Body in Illinois Raises Money Year-Round for Community Christmas
As in most years, 2014 ended with some unfinished business for the collision repair industry. Here’s a look at four of the news stories from this part year that will likely continue to make headlines in the year ahead.
At the age of 18, it was David Freer’s dream to own a body shop, and that dream came true in 1991 when he and his brother, Tim, opened Freer Auto Body in Godfrey, IL. From the start, Freer Auto Body contributed to Community Christmas, which was David’s favorite project. Community Christmas, sponsored by United Way and Telegraph, raises money, toys and clothes for 15 local agencies. These agencies then distribute the goods to more than 6,000 less fortunate families in Riverbend. According to his mother and shop owner Margaret Freer, David would purchase sale items throughout the year and save them for the event. When David passed away in an
by John Yoswick
1. “We are requiring that you have the separation of the work area, but that can be (achieved) using curtains and proper filtration; it’s not going to require brick and mortar.” Ford Motor Company’s Paul Massie was a featured speaker at many in-
dustry events in 2014 as they automaker prepared to roll-out its 2015 F-150 pick-up, the first high-volume aluminumintensive vehicle. Ford and Massie worked last year to convince about 750 of its dealerPaul Massie ship body shops – and about 850 independent shops – to invest in the equipment and training to be certified by Ford to work on the vehicle. For shops with virtually See Four News Stories, Page 14
Auto Body Associations Look Back on 2014 by Chasidy Rae Sisk
From record snowfalls in the southern U.S. to a missing Malaysian airplane to the fear of an Ebola outbreak, 2014 was a memorable, if somewhat frightening, year around the world. In the American collision repair industry, 2014 was riddled with lawsuits against insurers’ unfair business practices and other battles for the rights of collision repair professionals, but industry associations still managed to provide some positive experiences for their members throughout the year. As the New Year rolls around, Autobody News asked a handful of association leaders about the most memorable things their associations did in 2014.
Dan Risley, Executive Director of ASA-National, states that “without a doubt, the most memorable thing in 2014 was NACE|CARS in Detroit. We made significant changes to the show including but not limited to the location, dates and show management company. We had no idea what to expect or how the industry would respond because the show had steadily declined for several years. What made it memorable was the overwhelming support and positive response from the industry. We are humbled, thankful and appreciative for all of those individuals and companies that helped make it a success.” “I think one of the most memorable moments of 2014 for me was at
by Victoria Antonelli, Online Editor
automobile accident on September 11, 2008, the Freer family decided to go even further with their contributions
The Godfrey Women’s Club baked all of the cookies for the year’s Cookies and Cocoa Community Christmas event
to Community Christmas by creating Cookies and Cocoa for Community Christmas the following December. “Freer Auto Body is very comSee Community Christmas, Page 24
Main Auto Body and CitySquare Brighten the Holidays for Dallas, TX, Children Main Auto Body has reached an agreement with CitySquare in which the body shop will collect and donate unwrapped toys and gifts to families CitySquare serves that are unable to
See Associations Look Back, Page 10
One of the many children to benefit from the CitySquare holiday fundraiser poses with Santa Claus, surrounded by donated gifts for Dallas youths in need. Photo credit: CitySquare
provide for their children on Christmas. In exchange for donating an unwrapped toy, Main Auto Body will give a free headlight restoration. Each year, CitySquare collects
(l to r) Albert Perez, technician; Ray Mundo Esqueda Jr, technician; Gerardo Valadez, owner and technician; and CeeCee Evans, manager; pose below the Main Auto Body shop sign
new, unwrapped toys and then distributes them as Christmas gifts to children in need. “Main Auto Body is very excited to be working hand-inSee Brighten the Holidays, Page 18
Change Service Requested
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2 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Contents Arson Investigation at Body Shop in
Watsonville, CA . . . . . . . . . . . . . . . . . . . . . 24
Attanasio - EB-CAA Model Truck Customization
Event Back in a Big Way . . . . . . . . . . . . . . . 23
Attanasio - Top 10 California Laws that
Auto Body Shops Need to Know . . . . . . . . . 28
Auto Body Students in Modesto, CA Find
Conviction of Saturn Ion Driver Thrown Out
After 10 Years . . . . . . . . . . . . . . . . . . . . . . 60
Enterprise’s ARMS Application Helps Shops Track Cycle Time and Benchmark
Performance . . . . . . . . . . . . . . . . . . . . . . . 58
First Fully Robotic Paint Curing Equipment Can Improve Bottom Line for Shops
and the Environment. . . . . . . . . . . . . . . . . . 26
a Unique Use for Aluminum . . . . . . . . . . . . 12
Ford Begins Building All-New F-150 Truck. . . . 48
New CA Facility . . . . . . . . . . . . . . . . . . . . . . 4
the Entire Collision Repair Industry in 2015. . 1
Four News Stories from 2014 that Will Impact
Bogus Car Chips Netted $15 Million,
Freer Auto Body in Illinois Raises Money
BumperDoc Auto Body Opens in Tempe, AZ . . 12
Hey Body Techs! Malco Tools Are Built
Says Attorney General . . . . . . . . . . . . . . . . . 6
CARSTAR West Valley in Utah Presents
Van to Needy Family . . . . . . . . . . . . . . . . . . 18
CAWA Partners with CA Board of Equalization . . 6 City Auto Body Awarded by CA Chamber
of Commerce . . . . . . . . . . . . . . . . . . . . . . . 20
Year-Round for Community Christmas . . . . . 1 Just for You . . . . . . . . . . . . . . . . . . . . . . . . . 9
LKQ Renews $25,000 Contribution to CREF . . . 4
MAACO® and Meineke® Partner With Uber . . . . 6 Main Auto Body and CitySquare Brighten
the Holidays for Dallas, TX, Children . . . . . . . 1
Mike Rose’s Auto Body Never Stops
Mazda Recall of Takata Airbags to
Sonshine Auto Body in Victorville, CA, Voted
Mitchell Fourth Quarter 2014 Industry Trends
Giving Cars Away . . . . . . . . . . . . . . . . . . . . 54 Best of the High Desert 2014 . . . . . . . . . . . 22
COLUMNS
Attanasio - Your To-Do Marketing List for 2015. . 30
be Expanded Nationwide. . . . . . . . . . . . . . . 47 Report Provides Insights for 2015 . . . . . . . 56
National Auto Body Council & Enterprise Rent-A-Car Partner with Progressive
to Donate 117 Vehicles to Vets . . . . . . . . . . 60
Franklin - Commercial Customers—
Nissan Settles Class-Action Suit Claiming
Luehr - Successful Change Using
Rail Saver Repair System Developed by
A Reliable Business Source . . . . . . . . . . . . 34 Modern Leadership . . . . . . . . . . . . . . . . . . 40
Sisk - NABC Presents Award of Distinction and Body Shop Image Award, Also
Names 2015 Board . . . . . . . . . . . . . . . . . . 44
Yoswick - CIC Says ‘No’ to ASA, Sheila Loftus Predicts, Multi Association Task Force,
Labor Rates . . . . . . . . . . . . . . . . . . . . . . . . 42 NATIONAL
A Lean Process Helps Shops Become
More Efficient and Profitable . . . . . . . . . . . . 52
ABRA Expands in Three States . . . . . . . . . . . . 24
Allstate contributes $100,000 to CREF . . . . . . 54
Aluminum Repair Tips & Techniques
in Preparation for Ford F-150 . . . . . . . . . . . 48
Auto Body Associations Look Back on 2014. . . 1
Faulty Brakes . . . . . . . . . . . . . . . . . . . . . . . 34
CA Technician to Improve Accessibility
and Cycle Times. . . . . . . . . . . . . . . . . . . . . . 4
Remie’s Body Shop in West, TX, is
Adapting to Change . . . . . . . . . . . . . . . . . . 20
Seidner’s Collision Centers and Local
Businesses in CA Present Cars to Veterans . . 8
Service King Surpasses 200 Locations
with Acquisition . . . . . . . . . . . . . . . . . . . . . 46
Sisk - VISION South of the Border ‘14 Provides
a Mixture of Business and Pleasure . . . . . . 36
The Hybrid Shop Carves a Niche in
Hybrid Maintenance and Service. . . . . . . . . 38
Toyota’s “Game-Changing” Recommended
Repair Procedures Set to Launch in 2015 . . 56
TX Ford Dealer Sells Classic Cars,
Makes Millions . . . . . . . . . . . . . . . . . . . . . . 47
Chrysler, Fiat Names Dropped in
Using Industry Statistics to Your
Collision Avoidance Technology Could
Website Connects Collision Shop Owners
Corporate Titles . . . . . . . . . . . . . . . . . . . . . . 8
Dramatically Change Repair Industry . . . . . 55
Merry Christmas, Happy Holidays, and a Joyous New Year from all of us at Autobody News. We look forward to bringing you our collision news in 2015, including a more frequent e-newsletter, more regional coverage and easier access to content on our websites. Get in touch with us to promote your regional events, association meetings and anything you think the rest of the industry should know. Advertisers can reach us at advertising@autobodynews.com. Articles can be submitted to editor@autobodynews.com.
Indexof Advertisers
AutoBody-Review.com Will Expand to
Advantage with Mike Anderson. . . . . . . . . . 50
& Auto Techs: TalentMonger.com . . . . . . . . 59
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Assured Performance . . . . . . . . . . . . . . .4 Audi Wholesale Parts Dealers . . . . . . . .54 Automotive ID . . . . . . . . . . . . . . . . . . . .24 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .14 Axalta Coating Systems . . . . . . . . . . . . . .5 BMW Wholesale Parts Dealers . . . . . . .57 Bob Smith BMW . . . . . . . . . . . . . . . . . .29 Bob Smith MINI . . . . . . . . . . . . . . . . . . .29 Capitol Subaru . . . . . . . . . . . . . . . . . . . .64 Car-Part.com . . . . . . . . . . . . . . . . . . . . .18 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .41 Classifieds . . . . . . . . . . . . . . . . . . . . . . .62 Colortone Automotive Paints . . . . . . . . .12 Completes Plus . . . . . . . . . . . . . . . . . . .20 Courtesy Chevrolet . . . . . . . . . . . . . . . .39 DCH Chrysler-Jeep-Dodge-Ram . . . . . .28 DCH Kia of Temecula . . . . . . . . . . . . . . .28 Del Grande Dealer Group . . . . . . . . .16-17 Dent Magic Tools . . . . . . . . . . . . . . . . . .10 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .45 Earnhardt Buick-GMC . . . . . . . . . . . . . .20 East Bay BMW-MINI . . . . . . . . . . . . . . . . .8 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .15 Elk Grove Toyota . . . . . . . . . . . . . . . . . .44 Enterprise Rent-A-Car . . . . . . . . . . . . . .34 Equalizer Industries, Inc . . . . . . . . . . . . .6 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .49 Galpin Motors . . . . . . . . . . . . . . . . . . . .35 Glenn E. Thomas Dodge-Chrysler-Jeep .19 GM Wholesale Parts Dealers . . . . . . . . .50 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .32-33
Serving California, Nevada, Arizona and Utah. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
REGIONAL
Hyundai Motor America . . . . . . . . . . . . .11 Hyundai Wholesale Parts Dealers . . . . .58 Kearny Mesa Subaru-Hyundai . . . . . . .47 Kia Motors Wholesale Parts Dealers . . .61 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Los Gatos Luxury Cars . . . . . . . . . . . . .38 Maita Subaru . . . . . . . . . . . . . . . . . . . . .40 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .30 Mazda Wholesale Parts Dealers . . . . . .60 Mercedes-Benz . . . . . . . . . . . . . . . . . . .31 MINI Wholesale Parts Dealers . . . . . . . .56 Mitsubishi Wholesale Parts Dealers . . .52 MOPAR Wholesale Parts Dealers . . . . .37 Moss Bros. Chrysler-Jeep-Dodge . . . . . .7 Mossy BMW of Vista . . . . . . . . . . . . . . .43 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .59 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Puente Hills Subaru . . . . . . . . . . . . . . . .48 Replica Plastics . . . . . . . . . . . . . . . . . . .26 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .46 Sacramento Hyundai . . . . . . . . . . . . . . .25 SATA Spray Equipment . . . . . . . . . . . . .27 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . .22, 23 Shingle Springs Nissan-Subaru . . . . . .51 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .42 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .36 Subaru Wholesale Parts Dealers . . . . . .53 The Bay Area Automotive Group . . . . . .13 Toyota Wholesale Parts Dealers . . . . . .58 Valspar Automotive . . . . . . . . . . . . . . . .21 Volkswagen Wholesale Parts Dealers . .55 Volvo Wholesale Parts Dealers . . . . . . .54
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 3
Rail Saver Repair System Developed by CA Technician to Improve Accessibility and Cycle Times by Stacey Phillips, Assistant Editor
When Tim Gerhards, a repair technician in Folsom, CA, and the owner of TG Products, Inc., was removing a dent from a side member on a unibody vehicle, he found there wasn’t a tool designed to work on the repair. He said the job required applying force to the low point of the dent and pushing it out. In the past, the repair would have been completed using torches to get the metal hot and pliable enough so it could easily be worked with pry bars, dollies and hammers, but he said the use of heat in this repair process was no longer acceptable. “I knew if it was a problem for me it is for every other tech out there,” said Gerhards. “Being that I’m an auto body repair technician, I had all of the required skills and tools to make my own tools, so I decided I would try to solve this problem.” The result was The Rail Saver Repair System, which Gerhards said repairs rails quickly from the inside out with no heating required. The tool is used for the inside of the side member or frame rail, pushing outward from the opposite side. Gerhards said the tool operates using wedges, pushing one wedge into another with a
LKQ Renews $25,000 Contribution to CREF
LKQ Corporation, based in Poway, CA, renewed its $25,000 contribution to the Collision Repair Education Foundation (CREF) to help with collision school tool/equipment and student scholarships. CREF Executive Director Clark Plucinski noted, “Now more than ever do collision school programs need the industry’s support in order to graduate qualified and properly trained students. LKQ’s renewed contribution allows CREF to work with the collision school programs on ensuring this takes place. Through parts donations, monetary donations, and having representation on our Board of Trustees, LKQ’s has displayed their strong commitment to assisting the future professionals of the collision industry. On behalf of the schools, students, and instructors that will benefit from this support, we thank LKQ for their continued support.” “A shortage of technicians, along with a shortage of funding for the technical schools, continues to be a major challenge for our industry. LKQ is proud to support CREF and is delighted to give back to the technical schools and students in our industry,” said Terry Fortner VP of Industry Relations and Market Development.
four-ton hydraulic pump and ram. “This simply transfers the pressure out to the side of an elongated arm,” he explained. There is also a measuring gauge on the tool, which allows technicians to measure the proper depth from the outside of the damage and insert the tool to repair from the inside.
He said the system allows repairs to be done easily, improving cycle times and reducing severity as well as offering greater accessibility for technicians. “The Rail Saver Repair System can access areas that can’t be reached any other way," said Gerhards. “This access can create repair possibilities that can be the difference between a vehicle being repairable or deemed a total loss.”
AutoBody-Review.com Will Expand to New CA Facility
AutoBody-Review.com announced the acquisition of a new facility to support additional growth and expansion into new automotive markets in the upcoming months. Marking its third move in two years, Flash of Genius Inc., DBA as UpdatePromise.com and AutoBodyReview.com, purchased a new facility in Chino Hills, CA. The new facility, which is triple the size of its preceding location, will be put into immediate use as the company continues to expand into 12 automotive-related, vertical markets over the next 24 months. 2013 was the startup year for AutoBody-Review.com. “The new facility provides an open space for the perfect combination of informal collaboration and idea exchange, with offices and meeting rooms specifically designed to allow us to focus and meet in a more traditional sense. In short, there’s nothing we can’t create from here. Our 2015 expansion will be bigger and better because of the new facility,” said Director of Business Development Greg D’Amore. The company is located at 14850 Central Avenue, Chino Hills, CA 91710.
4 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
It is common for technicians to still use heat, said Gerhards, as well as cutting access “windows” to hammer through, cutting out the damaged areas, and re-shaping on an anvil or the frame rack and welding back in place. He said these methods do not follow OEM guidelines, and should not be performed on today’s vehicles. “The Rail Saver is not a ‘fix all’ for rail repair,” said Gerhards. “As in any repair the technicians should first check OEM structural repair guidelines in making their determination as to the reparability of any structural part of the vehicle.” GM Dealer Equipment has recommended The Rail Saver system. “The Rail Saver Repair System was tested and approved by General Motors for use on both fullframe and unitized vehicles. This product works on steel, high-strength steel, and aluminum body components. This tool will help pin-point the damage location to ensure accurate repairs from the inside of a frame rail working outward, said the GM Collision Repair Technology Center Man-
ager for General Motors. Gerhards has been an auto body repair technician since 1986, working for B&J Body Shop in Rancho Cordova, CA from 1997-2013. Prior to starting TG Products in 2008, Gerhards licensed his product ideas to Steck Manufacturing based in Dayton, OH. “They have been great to work with and manufacture six tools I helped design,” said Gerhards, who has created tools for the last 13 years.
These include: ● The Skin Zipper, a door skin installer, which is now being looked at for its capabilities installing aluminum door skins, including the NEW 2015 F-150; ● The Work Stand Clamp for holding door shells on X frame work stands while skins are installed; ● The MIG Light, which attaches to the neck of a MIG/MAG welder torch; ● The Panel Shaper Kit for sheet metal forming and shaping; ● The Handy Pull Kit, a set of eyebolts and brackets for light pulls around the vehicle; and ● The Easy Strip II, a re-design of the Easy Strip molding remover. For more information about The Rail Saver Repair System and TG Products, visit www.therailsaver.com
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 5
Bogus Car Chips Sold from Netted $15 Million, Says Attorney General by Matt Reynolds www.courthousenews.com
An Orange County man ran a $15 million fraud by selling circuit boards as bogus “performance chips” for cars, California prosecutors say. California sued Gold Star Auto Sound, Ivar Manufacturing and Ravi Ghataode on Oct. 28 over gizmos he sold as “GForce Chips,” “GForce Performance Chips,” and under other names. The state claims that Ghataode “sold this ‘chip’ to hundreds of thousands of consumers by making false and misleading claims, including, but not limited to, that it contains software which is specifically programmed for the purchaser’s car down to the make, model and year, and that once the product is installed in the car’s engine, this chip would substantially increase gas mileage (4-7 mpg), reduce emissions (by 25-40 percent), and increase the horsepower of the car (by 30-60 HP).” Actually, prosecutors say, Ghataode sold repackaged circuit boards that were essentially useless. The state claims he made millions by selling his “sham product,” the GForce Performance Chip, to more than 300,000 customers from a small office in Irvine.
He sold the after-market chips through his website, including an image of a “phony” office building with the GForce name added using photo-editing software, according to the complaint. The site included bogus testimonials from satisfied customers, and a fake location for the business. Ghataode claimed that the untested and unlicensed chips were engineered, and told the Better Business Bureau the company was run by “Terry McCauley” – a fake name used to shield Ghataode, prosecutors say. In a company background page of the website, prosecutors say, the company asserted it had been around for 16 years, was founded by “Simon J. Bruce,” and had 27 people working for it. All those claims were false, the state says. GForce charged customers before they received the circuit boards or before the order was shipped, and some customers did not get the sham product for a year, according to the complaint. After complaints to Irvine police and the District Attorney’s Office, Ghataode’s office was raided in the summer of 2012. Officers found 300 returned GForce chips, and computer records containing hundreds of com-
CAWA Partners with CA Board of Equalization
CAWA along with County Farm Bureaus, Western United Dairymen and District Two Member of California State Board of Equalization (BOE) Senator George Runner concluded a series of seminars throughout California’s central valley educating the auto parts distribution and retail industry about tax exemptions relating to the sale of agricultural farm equipment, machinery and parts. The workshops held in Dec. in Bakersfield, Visalia, Fresno, Madera, Merced and Hanford provided handson training of the partial sales and use tax exemption for farm equipment and machinery as well as CA’s new manufacturing exemption. “CAWA reached out to BOE member George Runner to help a CAWA member in the central valley who was audited by the BOE. After working with our members, we determined that there is a lot of uncertainty and lack of clarity surrounding the partial sales and use tax exemption for qualified purchases,” stated Rodney K. Pierini, CAWA President & CEO. The Board of Equalization administers the Sales and Use Tax Law in California. At issue is the confusion by many auto parts distributors and retailers as to what constitutes a ‘qualified
purchase’ when determining the partial sales tax exemption for farm equipment and machinery. Often times, the onuses is on the parts store or in this case the CAWA member selling products to the farming operation. Many CAWA members are put in the awkward place of being a tax assessor/collector with their customers. As a result of CAWA’s interaction with Runner’s office, BOE agreed to (1) conduct educational workshops to help clarify the specifics around this partial sales tax exemption, (2) educate field auditors on the implications of complying with the regulation from a retailer’s point of view and (3) develop a more clearly defined list of what constitutes a ‘qualified purchase.’ “CAWA appreciates BOE member George Runner and his staff for their prompt attention and quick action to help remedy this issue for our members. We look forward to continuing to work with the BOE to ensure clarity and consistency when determining requirements to quality for the partial sales tax exemption.” For info about the partial sales tax exemption for farm equipment and machinery, contact CA Legislative Advocate Gary Conover gary@ garyconover.com or 916-233-9655.
6 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
plaints, the lawsuit says. Though the California Air Resources Board ordered GForce to stop selling the product in September 2011, the GForce website is still online, prosecutors say. (On Dec. 11, the website was still functioning at the address, www.gforcechips.com .) Ghataode faced civil charges in 2011 related to another one of his businesses, and a state court ordered him not to violate unfair competition laws, prosecutors say. But Ghataode and his companies “operated, and continue to operate, their GForce performance chip business in a blatant, willful and intentional violation of this prior injunction,” according to the complaint. Goldstar does business as GForce, GForce Chips, GForce Performance Chips, Gfchips, Gold Star Audio, GS Car Audio and Dealer Cost Car Audio. Courthouse News called GForce and left a message for Ghataode with a man who would only identify himself as “John.” Ghataode did not immediately respond to a request for comment.
www.autobodynews.com C
MAACO® and Meineke® Partner With Uber
MAACO® and Meineke®, both part of the Driven Brands family of automotive companies, announced their partnership with Uber Technologies. The partnership is designed to offer all Uber Driver Partners exclusive benefits on preventive maintenance, auto painting and repair services from MAACO ® and Meineke® locations throughout North America. “Uber has revolutionized the experience for drivers and riders. A vision we share here at Maaco,” said Artemio Garza, CMO of MAACO®. “By leveraging technology and digital innovation, Uber and Maaco will continue to make the consumer's experience easier, more affordable and reliable.” Danny Rivera, President of Meineke®, said, “This partnership ensures driver and passenger wellbeing, a true testament to our mission of empowering modern drivers with the peace of mind they need to enjoy the road ahead.”
CHECK IT OUT!
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 7
Seidner’s Collision Centers and Local Businesses in CA Present Cars to Veterans
Seidner’s Collision Centers along with the Auto Club of Southern California and California Casualty presented two vehicles to local military veterans enrolled in Citrus College Veterans Success Program. Congresswoman Grace Napolitano, 32nd Congressional District, was on-hand to help present the vehicles. Veterans Ashley Bozeman, U.S. Navy, and Allan Weaver, U.S. Army, were the proud recipients of a 2013 Kia Rio, donated by the Auto Club, and a 2010 Toyota Camry, donated by California Casualty. Bozeman served in the Navy from 2007-2011 aboard the SS Ronald Reagan. During a mission in Japan, she was exposed to radiation and has suffered many illnesses related to the exposure. Later she was sent to the Persian Gulf during the Iraq invasion where she again was injured. Ashley has received disability rating from the Traumatic Brain Injury (TBI), which she struggles with daily. Currently Bozeman is taking courses at Citrus College towards her AS degree and holds a 3.7 GPA. She also volunteers with many non-profits in the area and is always first to help others at school where she tutors other veterans. Weaver served in the Army for over seven years joining right after 9-11.
Weaver, like so many heros, was upset because the country was under attack. During his deployment in Iraq, Weaver was injured. After returning home in 2008, he struggled to find a job and eventually lost his house, car and wife. He became homeless but tried to keep an upbeat, positive attitude. Six years later Weaver is remarried, has a two-year-old son and is currently pursuing a degree in business at Citrus College. Weaver is always very helpful to others in his community; he is the first to lend a hand to the elderly or disabled either with home or car repairs and sometimes both. Steve Seidner, VP of Seidner’s Collision Centers said, “Our employees always feel such a great sense of pride when working on the Recycled Rides, especially knowing the difference it will make in the recipient’s life. The feeling you get when giving back to your own community is indescribable, and knowing we are helping those that protected our county goes beyond words. It is simply the greatest of all honors and would not have happened if it weren’t for the generosity of the Auto Club and California Casualty.” “A U.S. soldier’s or sailor’s toughest battle shouldn’t come when they get home. No family, especially a U.S. veteran’s, should lack for a reliable vehicle
8 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
to get to work and important appointments and events,” said California Casualty Vice President James Kauffman. “That’s what makes the Recycled Rides program so valuable, breaking down a barrier for people like Allan. We are proud to partner with Seidner’s Collision Centers and the National Auto Body Council to make a tangible difference for an American hero and his family.” Monica Christianson, Director of Veteran’s Success Center at Citrus College, said, “I see many veterans who encounter barriers that impede their process back from military life. Some barriers are monetary, and a simple thing like transportation can impact their ability to make it to their VA appointments, work or school. We nominated Allan and Ashley because they are always first to volunteer in helping others, putting their needs last, and because they both have endured so much while serving their country.” Seidner’s Collision Centers has 14 locations in San Gabriel Valley and the Inland Empire of L.A., CA. It is familyowned with over 50 years of experience: http://www.seidnerscc.com or 888-722-0088. For information about Citrus College Veteran’s Program, visit Veterans Success Center or call (626) 852-6421.
Chrysler, Fiat Names Dropped in Corporate Titles
Chrysler is Chrysler no more, according to a report in Automotive News. Fiat Chrysler Automobiles, the Netherlands-based parent company of what was Chrysler Group LLC, said that it has changed the name of its U.S. affiliate from Chrysler Group to FCA US LLC. The change is effective immediately. The parent company also said Italy’s Fiat Group Automobiles SpA has changed its name to FCA Italy SpA. The letter-only new name removes the name of Walter P. Chrysler from the company he founded in 1925 for the first time in its history. In a statement, the automaker said the name change “does not affect the company’s headquarters location in Auburn Hills, Michigan, its holdings, management team, board or brands.” The statement also noted that FCA US LLC “remains proud of its joint heritage” and that the company “continues to build upon the solid foundations first established by Walter P. Chrysler in 1925 as well as a rich Fiat heritage that dates from 1899.”
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Hey Body Techs! Malco Tools Are Built Just for You by Ed Attanasio
One consequence of the evolution of the collision industry is that better tools exist now than ever before, thereby dramatically improving the working lives of body technicians everywhere.
The S6R Redline, 6-inch model, Hand Seamer by Malco Products is designed to save time, prevent hand fatigue and last for many years
Malco Products, Inc. in Annandale, MN, won first place at the 2014 SEMA Show’s New Product Showcase in the Collision Repair and Refinish Products category for its Quarter Panel Hemming Air TurboXTool. Founded in 1950, Malco was a market pioneer with its innovative HVAC hand tools initially, but today the company serves several industries, including collision repair.
Designing tools that are easy to use and cause minimal impact on the human body has been instrumental in Malco’s success. When the company designs any tool, it first looks at how it will be used; how long it will last and how it can save labor and wear and tear on the person that will use it every day. If a tool does the job, but it injures the hands, elbows or shoulders of the user, what’s the advantage? As a body shop owner, you obviously want your techs to be healthy and injury-free, because losing an employee to injury can drastically impact your cycle times and compromise your production. One of the most unique aspects of all Malco’s hand tools are the fact that they’re designed to comfortably fit hands of all sizes, from small to very large or gloved hands. The human hand’s natural power stroke range falls within a gripping range of 2-1/2 to 3-1/2 inches (63 to 89 mm). The challenge for accommodating this entire range is to provide handle openings and natural ergonomic contours that complement hand strength and resist strain and fatigue of repetitive motions without sacrificing the labor-saving, productivity
features of the working end of the tool, such as length of cut or throat depth. This balancing act has been achieved with all of Malco’s Redline Handled family of Hand Seamers (hand brake) and the company’s 11 models of “Andy” lightweight-with-the-strengthof-steel Aluminum Handled Snips.
This model MV12“Andy” Aluminum Handled Snip is designed with the busy body tech in mind and is specially designed to cut plastics including auto bumpers
Development Engineer Thomas Batho has worked on Malco’s design team for the past 15 years, which means he has played an integral role in the creation of more than 50 tools for Malco. “Every tool we make is designed with things like ergonomics, safety and the life cycle of the tool at the forefront,”
Batho explained. “We pride ourselves on making products that the customers want because they fill a need and then we stand behind them 100%. That’s something we take very seriously here at Malco.” At least 1,000 hours goes into the development of each tool manufactured by Malco. The company’s Redline Handled seamers were no exception, according to Batho. “With every tool, we do the field research first—to see if there’s a need and where the markets are headed. With our collision tools, we go to body shops to gather data. We personally visit shops in our area and do webinars with others country-wide. The ideas come in and the results are documented. Then we enter the concept stage followed by the initial design stage and prototyping. When we have a functional product we take it into the field and get reactions from techs, before we finalize it. Once we’ve completed that, we release it to manufacturing, do final testing and finally offer it to the public.” More information about the tool designs and the entire Malco Products line can be accessed at www.malcotools.com.
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 9
Continued from Cover
Associations Look Back
the conclusion of the OEM Collision Repair Technology Summit that we launched during the SEMA Show,” recalls Aaron Schulenburg, Executive Director of the Society of Collision Repair Specialists (SCRS). “This was a first year event that we spent the entire year working to develop content for. I love that our trade association produces events that can make our members feel inspired and empowered, and it is one of the very specific reasons that SCRS and SEMA partnered on our work together over 5 years ago. We saw opportunity for an industry that had everything to gain from good ideas being delivered in an environment that fostered creativity and business development. I never fail to be in awe of that ‘electricity’ that fills the halls and classrooms of the Show, and this particular day of focused discussion was memorable because it brought people together to focus on an issue that is important to all.” Schulenburg continues, “this session generated some remarkable responses from the attendees, as we took a good hard look at the defining responsibilities of collision repair businesses, automakers and equipment manufacturers as the room focused on a common issue relative to repairability of new technology found in the structural design of the modern vehicle. The topics from this new forum have spawned a whole new level of engagement from an industry hungry for more information. It has shone a light on areas that SCRS can help to encourage and promote relevant and much-needed industry discussion, and where we can provide insight into areas of curiosity. The work from this session has already fueled potential programs and offerings that we will launch during the year and that will inspire programs next year. What makes it memorable isn’t the event; it is watching the ideas flow in the postevent conversations and to see what was just a spark of imagination in our planning session turn into such a valuable resource that inspires so many others. For those that joined us this year, I hope it was equally as memorable for you. For those who couldn’t, I really hope you can next year!” In 2014, the National Auto Body Council (NABC) assisted in facilitating the donation of over 300 vehicles that
were restored by members of the collision repair industry and donated to families and military heroes in need of reliable transportation. “In speaking for the NABC, I’m proud to say that our organization, made up of dedicated members of our inter-industry, changed the lives of the recipients of those vehicles, forever, through the NABC’s Recycled Rides initiative,” states NABC President, Nick Notte. “ This activity was in direct support of the NABC’s vision, which states that ‘Automotive Collision Repairers are Admired Professionals.’ It absolutely supports the NABC’s mission to ‘Develop, implement and promote community-based initiatives which exemplify the professionalism and integrity of the Collision Repair Industry’.” Tony Ferraiolo, President of the Auto Body Association of Connecticut (ABAC), believes that the best thing the association did in 2014 was to “bring education style meetings to our membership, specifically by presenting topics with speakers to address industry concerns and ever-changing evolution. We strive to entice members to get away from their normal way of conducting business and experience new and different approaches to keep up with training, technology, and equipment.” For the Georgia Collision Industry Association (GCIA), “our most memorable achievement was raising money for a local technical school to help them educate the next generation of technicians,” according to GCIA Executive Director Howard Batchelor. “The average age of technicians is over 45 years, and we need a well-educated work force to work on the technically advanced vehicles of today.” John Petrarca, President of the Auto Body Association of Rhode Island (ABARI), says “in 2014, ABARI witnessed the positive effects of its hard fought legislation regarding the valuation of total losses that was passed in 2013. As the regulatory process concluded in 2014, consumers quickly began to see the benefits of the legislation, as insurers must now use the 75% repair cost/value threshold for every vehicle, or obtain the owner’s written consent to total the vehicle, thereby preventing insurers from unfairly declaring a consumer’s repairable vehicle a total loss, because it would cost less. The law also requires insurers to value total loss vehicles based upon either NADA or Kelley Blue Book when settling total
10 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
loss claims. ABARI fought hard at every step to prevent insurers from diluting the meaning and intent of the law at the regulatory level. We succeeded, and the law’s implementation has taken the guesswork and hassle out of the process and prevents insurers from using cost cutting programs to unfairly settle claims. The total loss legislation was an enormous win for consumers, and ABARI is very proud to be part of this victory, especially in Rhode Island where most residents are still struggling to crawl out of a very difficult economy.” For the Long Island Auto Body Repairmen’s Association (LIABRA), 2014 was filled with opportunities for growth and supporting their membership. Executive Director Ed Kizenberger recalls, “we had several memorable items worth mentioning in 2014. First is our merger with the Auto Body Craftsmen’s Guild of NYC. This merger will allow us to support and represent all of downstate New York. Our membership now spans from the East end of Long Island to the western end of Staten Island. Also, our parts procurement bill, which was one of the first of its kind in the USA, came quite close to being voted into law. We hope
to see it come to its full potential in 2015. Lastly, our educational seminars were well attended and received good reviews from our membership.” “At ASA-Illinois, our best accomplishment was hiring Donna Kelly as our new Executive Director,” said Dave Walter, President and Chairman of ASA-IL’s Board. “That, along with Deb Bullwinkel staying on as Co-Executive Director, was the catalyst for our 15% growth on the Mechanical side. They were also instrumental in what many would say is our most significant accomplishment, opening ASA-Illinois to Collision members after almost 20 years. They did a great job this year, and we’re looking forward to more growth in 2015.” ASA-CO Board members got the chance to meet ASA-National’s Executive Director in 2014, and according to the affiliate chapter’s Executive Director Kari Foster, “meeting with Dan has been the highlight of ASA Colorado’s year. The work we do for the Collision members on the national level and in Washington is why many local members are a part of the Automotive Service Association of Colorado—and we are so proud to be a See Associations Look Back, Page 18
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 11
Auto Body Students in Modesto, CA Find a Unique Use for Aluminum by Victoria Antonelli, Online Editor
In the fall of 2013, a group of 20 students started refurbishing two aluminum animal sculptures for an extra credit project after a member of the Great Valley Museum foundation donated the $5,000 pieces.
Another student in the program, James Belle, worked on the mountain lion. “I did some sculpting and then painted and cleared the statue,” he said. “Getting them finished and installed was a long process, but once they were up,
Before & After photos of the elk. The students refurbished the statues during their free time; therefore, the project took two full semesters to complete. Photos courtesy of MJC Auto Body student Dan Wengert
Modesto Junior College instructor Jeff Beebe, who has taught Auto Body for over 10 years and worked in the industry for 22, supervised the students while they repaired an elk and mountain lion over the course of two semesters (32 weeks). “It took a while to finish the statues because we worked on it in our free time,” said Auto Body student Ignacio Segura. “It wasn’t difficult to repair, just time consuming.” Segura, from Lathrop, CA, said he plans to learn as much as he can before getting his Associates Degree in Auto Body.
they really fit in and finished the exterior of the science building.” Originally from San Mateo, CA, Belle is in his second year at MJC and has taken all technical classes; collision, spray, machining, auto tech and welding. He said he is now focusing on finishing up his General Ed and getting his Associates Degree. According to Beebe, the aluminum “looked like somebody used it for target practice” once he had blasted off the bad paint job. He instructed the students to grind down the original crude welds, use automotive body filler to close the holes,
and then they began creating an animal fur texture. “I made special tools to keep the hair like the coat of an elk in the areas where the panels met together,” said Auto Body student Dan Wengert. “One of the hardest parts was making the texture of the antlers; I had to stand on a wooden box to make sure they were the right height.” He added, “I personally spent about 26 hours total on this project.” Lincoln welders were also utilized by the students to help fill cracks and gaps, along with 3M body fillers/abrasives and PPG Envirobase primer, sealer and base/clear coat. “One of the hardest parts of the project was trying to fit the life-size elk in the paint booth,” said Segura, who helped Belle unveil the statues on October 15. “Everyone I have spoken to loves the statues,” Belle said. The elk, on display at the Science Community Center entrance, and the mountain lion, who guards the backdoor, are just a few of the many art pieces produced by MJC staff and faculty in and around the Science Community Center. Microscopic images of anatomy by physiology Professor David Ward and photographs of area birds by math Professor James Curl decorate the interior, and a replica of a beaver dam is in the making. The statues will be on display at the Great Valley Museum gala on January 17. Another assignment the students
recently tackled was the repairing and painting of a Chevrolet Tahoe, Toyota Avalon and custom paint on a 1923 Ford T-Bucket; but neither project is as big as what Beebe and his students have planned for the future. “Our next big project is to build a vehicle to showcase student talent,” said
Student James Belle poses behind the finished mountain lion; a 32-week project
Beebe. “The students want to create something they can take to SEMA, which has their name on it. Tentative plans are to build an all new Factory 5 Cobra within the next 18 months. Raffle tickets will be sold. Once the car is completed and after its inaugural SEMA appearance, a dinner/drawing will be held. The lucky winner will take the car home. Funds from the raffle will roll over to the next build.”
BumperDoc Auto Body Opens in Tempe, AZ
BumperDoc of Tempe, AZ, a one-stop shop for Tempe auto body repair and auto appearance needs, is now open in a new location. Brian and Crystal, the shop owners, announced their Grand Opening in December 2014 in a new state-of-the-art facility, located in the Tempe/Scottsdale area at 1900 N. McClintock Dr., near the intersection of N. McClintock Dr. and E. McKellips Rd. BumperDoc is a full-service collision repair shop, specializing in rapid repairs with quick turnaround time, according to Ray Wahoff of BumperDoc. Each shop offers bumper repair, dent and door ding removal, window tinting, cloudy headlight restoration, auto detailing and more. The shop’s website, www.BumperDocTempe.com, has a feature that allows customers to upload pictures of their car and request an estimate. When asked for a word to describe their philosophy about treating customers and running a business, Brian, a U.S. military veteran, said: “Integrity – the number one word that says everything about you. Honesty, trustworthiness, dedication, respect – integrity is all of these traits wrapped into one word, and I live by that.” Crystal added, “Showing peo-
ple that you care and treating them with respect is what is important.” BumperDoc uses both traditional and state-of-the-art methods to repair damage and to enhance a car’s appearance. Also known as a company that cares about the environment, BumperDoc can often repair bumpers, headlights and other parts instead of replacing them, which prevents an accumulation of waste products in the local landfill. Partnered with Akzo Nobel, BumperDoc only uses environmentally friendly paint and coatings. Other partners include LKQ/Keystone, Solar Gard (Window Tint), 3M, and Meguiar’s (Auto Detailing). The expanding company also provides free estimates, both online and onsite. BumperDoc is offering franchise opportunities nationwide. For more information, contact Larry Miller at 858 583-4159 or Ray Wahoff at 858 999-1414, or visit www.BumperDoc Franchises.com. Additional information about BumperDoc may be found at: www.BumperDoc.com.
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Continued from Cover
Four News Stories
no aluminum repair capabilities, that investment likely topped $50,000. Will that investment begin to pay off in 2015 for those shops and the 1,400 more independent shops Ford hopes to get certified this year? Just as Ford is rolling the dice to some degree in making such a significant change to its best-selling vehicle, shops too should probably be thinking long-term
about the investment needed to ramp up for aluminum repairs. One study predicts that even by the end of 2015, there may be only nine aluminum F150s a month needing repairs in most major markets. But other automakers are expected in 2015 to announce new aluminum vehicles coming. So while shops equipped to do aluminum work may see only a trickle of such work this year, they’re getting ready for what is likely more to come.
2. “(Shops are left in) the untenable position of either performing incomplete or substandard repairs and thus breaching their obligations to automotive owners to return vehicles to pre-accident condition, or performing labor and expending materials without proper compensation.” That’s the description used in almost 20 lawsuits filed by shops in 17 states in 2014, accusing insurance companies of conspiring to manipulate labor rates and other shop charges to reduce
Also Heard Around the Industry in 2014
“If they want to return a part, you need to tell them, ‘You bought this through PartsTrader; you need to return it through the system,’ so you get credit for the return. If they don’t want to return it through the system, then I hate to say it, but they are probably up to no good.” – PartsTrader’s Ken Weiss telling non-OEM parts distributors at a conference why the system will help vendors “avoid some of the games and will help bring down (parts) returns.” “We have most of the U.S. large cities or popu-
lation areas covered. We’re not targeting to be in all 50 states. We’ve got the vast majority of Americans covered for what we need to do from an insurance perspective.” – CARSTAR CEO David Byers on the company’s plans to work for growth in key markets (it now has about 440 franchises in 32 states) rather than specific states.
“We’re giving you guys a lot of instructions. Yet I could walk into three-quarters of shops in the country and they’re not doing it right.”
14 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
costs. The suits allege that State Farm is at the heart of an effort by the insurers to suppress labor rates, to coerce shops into accepting less than actual or market costs for materials, to refuse to pay for a list of required procedures, and to punish non-compliant shops through steering. The suits allege these actions constitute tortuous interference, unjust enrichment and violation of Sherman Act price-fixing and boycotting prohibitions. They seek un-
– Rick Leos of Toyota, expressing frustration with what he sees as the industry’s failure to use the OEM collision repair procedures that do exist. “The shop didn’t sell a rental coverage policy, and they didn’t profit from the sale of that policy.” – Aaron Schulenburg, executive director of the Society of Collision Repair Specialists, on why it’s unfair for an insurer to expect a shop to pay the cost of a rental vehicle if cycle time for a job exceeds an unrealistic formula adopted by the insurer.
specified damages for lost revenue and damages suffered by the shops, and treble damages and attorneys’ fees for the Sherman Act violations. They also seek an injunction prohibiting the insurers from “directing, advising or otherwise suggesting that any person or firm do business or refuse to do business” with any of the named shops; from using boycott, coercion or flat rate manuals to establish or control repair shop pricing; and from requiring the shops to participate in any parts procurement program. As 2014 came to an end, most of the lawsuits were being consolidated into one U.S. District Kris Mayer Court in Florida, a court whose first decision on them in 2015 could be whether to dismiss them or allow them to continue. If they are not dismissed, the judicial process could easily extend not only through 2015 but on into 2016.
3. “There’s probably some disruption and some unintended consequences in this process.”
Within 24 hours of surprising almost everybody by announcing in November that General Motors was discontinuing the publication of traditional list prices for crash parts, GM’s Kris Mayer had clearly heard a lot about those disruptions and unintended consequences. In less than a week, GM backed off a December 1 launch of the change, pushing it back into sometime in early 2015. As described by GM, the new system means that parts prices will no longer be available within the estimating systems. Instead, shops will need to upload all estimates requiring prices for GM parts to MyPriceLink, which will then return the estimate back with current, competitive prices. Mayer said the prices returned by the system will be dynamic, based on “the market or a particular price and its competition.” Mayer said GM does not intend to “change margin structure for the people who are involved.” What happens in 2015 may depend a little on what the real reason was for GM delaying the launch. Publicly, GM said that “workflow pressures on outside parties have brought to light enhanced solutions and the in-
repair systems of North America LLC
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creased desire for integration opportunities,” necessitating the delay. In a memo to its dealers, GM said it had “uncovered a system issue that could negatively impact the performance of MyPriceLink across a number of industry work streams.” Some sources have said a major technology partner working with GM on the system pulled out based on push-back it received from shops and insurers. Jason Bartanen In any case, whatever GM decides about launch of the system, it definitely will be among the major news stories in 2015.
4. “We really want to put this information into technician’s hands.” I-CAR’s Jason Bartanen said the goal of I-CAR’s “Repairability Technical
Support Portal,” launched back in August, is to get OEM repair procedures and vehicle information as close to technicians as the nearest computer, tablet or smartphone screen. The portal (http://rts.i-car.com) is a hybrid of both a guide to what procedures each automaker makes available (on their own websites) and increasingly a source for the actual procedures themselves. In late 2014, for example, the portal posted 51 collision repair instruction sheets from Ford for the new F-150. I-CAR promises to offer similar access to even more OEM information in 2015. The portal also enables a technician to submit an inquiry about OEM information he or she can’t locate, and the responses to those inquiries will be posted to the portal as well. That may make it an increasingly valuable resource in 2015 – and beyond.
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CARSTAR West Valley in Utah Presents Van to Needy Family CARSTAR West Valley has once again touched the lives of a family in need. Just in time for Thanksgiving, the family-run shop, with the help of several vendors and partners, gathered together to donate a 2001 Dodge Grand Caravan to a Utah family in desperate need of reliable transportation. Linda Ellison and her two sons, Bryan and Lynn, own and operate West Valley CARSTAR, and giving back to their community is high on the priority list. When Bryan had the opportunity to purchase a wrecked vehicle that a customer no longer wanted, he knew it would be the perfect project for another car donation. The 2001 Dodge Grand Caravan was not a total loss. It was slightly wrecked on one side, and had an interior that was in “like new” condition, according to Ellison. He quickly enlisted several vendors to donate parts and services, and the repair process began. Next, it was time to find the right family for the donation. For that, Ellison enlisted the help of local radio station, KBER 101, who asked their listeners to nominate a deserving family. After going through the 51 nominations that came in, the Frisk family was chosen for the donation.
Continued from Page 10
Associations Look Back
part of the national community.” For many associations, no memories from 2014 can usurp memories of some of the events they hosted. Luz Rubio, Executive Director of ASA-AZ, cites the Phoenix Chapter’s Board retreat in August as being extremely memorable since it was the first time the retreat has been held in over a decade. Rubio states, “it was a great experience. All members contributed to the development of the plan for the year and agreed to reconvene in 2015.” For John Williams, Executive Vice President of the Independent Damage Appraisers Association (IADA), his most memorable association-related experience of 2014 was “the success of our 46th Vehicle Repair Conference in Baltimore, MD. Our conference was well attended, and speakers were outstanding; it was a great educational experience!” Similarly, “for the Texas Independent Automotive Association (TIAA), the most memorable event was the 2014 Texas Tire & Automotive EXPO. It was memorable because
Gary and Jen Frisk have three children who suffer from a rare white blood cell disease called Eosiniphilic Esophagitis and Eosiniphilic Gastroenteritis. All three children have asthma, eczema, and other aero digestive conditions they each deal with individually. The children are hardly able to eat any food, and survive off of an expensive elemental formula that is not covered under insurance. On top of the huge medical bills, multiple hospital visits, and the hard work that goes into lovingly caring for their children, Gary and Jen have also had their own medical setbacks. Gary recently recovered from bladder cancer, and has to have check-ups every three months. Jen has also struggled through her own medical issues, having had four surgeries in the past three years. While CARSTAR West Valley did much of the work in their collision repair shop, several other vendors stepped up to help with the repair. Larry H. Miller Chrysler donated every OEM part that Ellison asked for, from moldings, to door handles, and more. Parts Chain donated the body panels needed for the repair. Big O Tires West Valley took care of any mechanical issues, plus
it was the first joint convention/EXPO of the Texas Tire Dealers and the Texas Automotive Collision/Repair organizations, and it was very successful. This first event set the stage for a great future alliance between the two industries,” says Chuck Space, Executive Director of the TIAA. ASA-Northwest also enjoyed a successful event in 2014 with their annual Automotive Training Expo (ATE) where Executive Director Jeff Lovell recounts, “we had over 900 attendees with 600 going through our training program; the Expo was sold out, and most of the training seminars were filled to capacity. Our first ATE had only 173 attendees going through the training, so it was a very special time for ASA-Northwest to see all of our efforts, which started seven years ago, come to fruition with such a successful ATE.” Overall, 2014 was a very productive year for the collision repair industry, and hopefully, 2015 will be even better, thanks to the efforts of these and many other associations. We look forward to continuing to provide you with all of the association news in 2015 also. Happy holidays! See you in 2015!
18 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
put new tires, brakes, and wiper blades on the van. They also offered free oil changes for a year, and paid to license and register the vehicle. California Audio tinted the windows, and Sherwin Williams gave credit for the paint. Troy Ricks Farmers Insurance Agency was also a big supporter of the project. In addition to the van, CARSTAR West Valley had enough gas cards donated to take care of the Frisk family for the next year. “We’ve been blessed. The community has done a lot for us,” said Bryan. “We’ve been here for 38 years, and I had told all of my people that I would like to do this twice a year. When you give away something like this, it makes you realize how thankful and grateful you are for what you do have.” This is not the first time this year that CARSTAR West Valley has given back to their community. In June, they rebuilt and donated a 2009 Buick Lucerne to a family in the process of adopting a teenager with a troubled home life. In July, they rebuilt and upgraded a 2006 Dodge 2500 for a local hero who wrecked his truck while stopping a crime in progress. CARSTAR West Valley is already working on another vehicle donation.
Continued from Cover
Brighten the Holidays
hand with CitySquare this holiday season,” said CeeCee Evans Main Auto Body’s General Manager. “This collaboration makes perfect sense. Our location has been in the heart of Downtown Dallas for many years and this gives us an opportunity to help support our surrounding communities and the Dallas area as a hold.” The objectives of the toy drive are to help children in need experience the joy of Christmas, to nurture the development of children, to unite members of local communities in a common cause and to contribute to the future betterment of communities. The toy drive will run December 12 through December 23 at 4pm. They toys will be given out on December 24, by CitySquare to deserving kids and their families.
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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 19
Remie’s Body Shop in West, TX, is Adapting to Change
City Auto Body Awarded by CA Chamber of Commerce
by Bob Beal, Fort Stockton Pioneer
The Simi Valley Chamber of Commerce recently announced City Auto Body as the winner of the 2014 Business of the Year award. According to simivalleyacorn .com, “the body shop has provided outstanding service in Simi Valley since 1980. It has an excellent service record and consistently gets high marks from its customers.” The Automobile Club of Southern California recognized City Auto Body as an Outstanding Performer in 2009, 2010 and 2012. Gary White, owner of City Auto Body, is a member of the Rotary Club of Simi Sunrise, where he served as president and is the 2014 parliamentarian, reported simivalleyacorn.com. For 24 years, he has been a member of the Simi Valley Chamber, and has served on multiple community boards. The body shop also donates water to Kiwanis Round-up, Relay for Life, and the Simi Valley Street Fair, and supports local sports teams.
Remies Body Shop has been putting west Texas cars and pickups back in shape for 55 years. Things automotive were different when Remijio Ramos started the business in 1959. “My dad used lead and lacquer,” recalled Ramiro Ramos, Remijio’s son and now owner of the company. “We used to be in the body repair business; now we’re into parts replacement,” Ramiro said, referring to body components, many of which now contain electronics. Leaning back in his desk chair, Ramos tallied 135 years of combined experience for his six-man repair staff. “One of my painters is 80; you can’t replace that,” he said, continuing, “Body paints have gone from lacquer to enamel to polyurethane to now water-based; and our paint booth has filters on the in and the out” for quality and emissions control. He said that next year Ford’s F150 pickups will be all aluminum bodies. Just one more change he and his guys get to roll with. In 1979, two years after Ramiro started in his father’s company, I-CAR, the Inter-Industry Conference on Auto Collision Repair, formed. It is a col-
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laboration of collision repair industries, including body shops, insurers, original equipment manufacturers (OEMs), researchers and trainers, and equipment suppliers. Ramos and his employees maintain current certifications through I-CAR educational programs, both online and at seminars. Remie’s is a bit off the beaten track at 6th and Park streets, east of Sanderson Hwy. and north of Rooney Park. “To me, at this point, location means nothing,” Ramos said. He’s booking for January, eight weeks out, and says people do wait because he stands behind his work and is honest with them. “I show them the calendar and let them pick a date,“ he said. It doesn’t matter how much business, word of mouth or otherwise, he has, though. “People coming here don’t care about the 50 cars on the lot; they care about one – theirs.” Ramos said he regularly sees customers from as far away as Presidio. When Ramiro came into the business in 1977, his mom was a partner. His dad eased into retirement in the early 1980s. Company founder, Remijio Ramos, passed away six years ago. Ramiro’s youngest son, Ramsey, partnered into the business four years ago. “I told my son, ‘There’s no help avail-
able; if you stay with it, you’ll have a solid niche,’” Ramiro said. “My priority is keeping a family atmosphere,” Ramiro said. By this he was referring to things like being flexible when employees have family commitments and when things come up that they need to do. He says this is in keeping with the small-town personality of his company. Remie’s Body Shop has two office assistants who, according to Ramos, are in “constant negotiation with insurance companies.” He likened it to a medical office with all the overhead that comes with insurance-related paperwork. Ramiro and his wife of 35 years, Elsa, raised three children in Fort Stockton. Elsa was in banking “since before we married,” he said. Their other son, Remijio, is also in banking and the sports reporter for Fort Stockton Pioneer. Rachelle, their daughter, has another year and a half of medical residency and plans to return to Fort Stockton to practice medicine. “She’s lived in and enjoyed a few cities, but there’s no place like home,” said Ramos. Ramos recently completed and “had to step back from” six years as the small business representative on the Fort Stockton Economic Development Corporation board of directors.
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Sonshine Auto Body in Victorville, CA, Voted Best of the High Desert 2014 by Victoria Antonelli, Online Editor
It all started in the early 1970s when Gary Cooper and his wife Terry were looking to make some extra cash so he could afford to go to medical school. “My husband was an Army-trained surgical nurse who wanted to continue his education,” said Terry. “We decided to take a short-cut by becoming silent investors in a body shop, but that short cut turned into a long cut.” The couple experimented with their first body shop in the Los Angeles area before moving up to Victorville in 1982 and opening Sonshine Auto Body two years later. “My husband never made it to medical school, but we still had a great life. There has never been a dull moment,” said Terry. “Sometimes the Lord has things planned that you just could not imagine.”
10-year-battle with Dementia, which the year so that the shop can better weeks before he passed away. he lost last April. Terry added, “he was serve their customers and the commu“My staff rallied around him an outstanding man who built a sig- nity at large. and helped make it possible,” said nificant business in spite of a major Terry. “I only hire people who will “We have an aluminum clean handicap, life-long Epilepsy.” room that is full equipped with all the treat the customers the way I want.” “The shop hadn’t been Terry added. held to the high standards we Terry has four managers who work had always required while as a team and actually run the shops as Gary was first sick, so it was well as aid in the decision-making time to make changes and reprocess. Each month she meets with turn to our previous stanthem to discuss problems and they make dard,” said Terry. recommendations for both solutions and She puts a strong emphafuture changes. sis on customer service, espe“My husband had the entreprecially in a close-knit town like neurial skills, and even though I alVictorville. ways had my hands in the pie, I had A customer’s truck goes through the final stages of repair “It’s a unique place,” said in Sonshine Auto Body’s cleaning room. Photo credit: never run a shop before. After all, I’m Terry. “The personal touch is Terry Cooper primarily a house wife.” She added, very important, so the businesses that required aluminum tools and repair “but I really enjoy the challenges and take the time to form relationships with equipment for the F-150 and other new creativity of business now that I have the customers tend to succeed.” 2015 cars.” She also added, “We are experienced it. It’s quite exciting. The waiting room at Sonshine the only certified Volkswagon shop beMost of all, it’s about serving people Auto Body is designed to make peo- tween San Bernardino and Las Vegas.” and producing an excellent repair.” ple feel comfortable. Every morning, Terry said the shop’s turnaround the staff bakes cookies in order to cre- since 2010 would not be possible withate a “homey” atmosphere. out her staff. “They’re the greatest staff “When people have had an acci- in the High Desert,” said Terry. “They’re dent, they need a lot of TLC,” said like family.” on Facebook Terry. “It’s a bad experience!” Despite Gary’s Dementia, he She realized early on that the macame into work every day up until six jority of people getting their cars fixed weren’t men; they were women. “That’s why we have big comfy couches and Announces: A pastel decor, with nice shag carpeting so 2015 First Quarter 2 young children can enjoy our toys on the floor.” Training Schedule T Don’t be fooled by the “girly” waiting room environment; Sonshine’s certified technicians and state-of-theart equipment ensure that the car is just as well cared for as the customer. All Sherwin-Williams Automotive Finishes Training Centers “We built our Jasmine Street lofeature state-of-the-art teaching tools, such as iPads, to cation 18 years ago, and to this day, the enhance the learning experience for today’s collision repair Air Quality Management District uses professions. Explore our robust training programs in a variety it as a model for body shops,” said of areas designed to improve productivity and profitability. Terry. Two of the shop’s technicians are Toyota factory certified, while another Training Number Date Training Course Description has 15 years experience working on Center of Days aluminum and high-end cars. Reno 02/09/15 AWX Performance Plus™ Waterborne “We have upgraded to Car-OPainter Certification 3 Liner fixture benches,” said Terry. “The Reno 02/16/15 Color Adjustment and Blending 3 technicians resist working on the old frame machines.” Sonshine Auto Body has been Volkswagen certified, and will be approved by Assured Performance for For more information about Sherwin-Williams all American OEMs, including Ford’s Automotive Finishes training or other products, aluminum F-150 before January. Nisvisit the training section at: san and Infinity are also in the certification process. Terry said the shop http://www.sherwin-automotive.com/collision-repair/training-support/ will continue to seek certifications or call 1-800-SWULTRA (1-800-798-5872). from other manufacturers throughout
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An arial view of the Sonshine Auto Body mechanical room. Photo credit: Terry Cooper
Even though Gary didn’t get the chance to further his Bachelor’s in Biology, he was able to put his knowledge and training to good use at the shop. “When we first moved to Victorville things were different than today. Often times people came in from the accident scene and didn’t want to go to a hospital,” said Terry. “So my husband would render First Aid right at the shop.” Sonshine Auto Body, now in two locations, has been going strong for 30 years. The original building is 10,000 sq. ft. and is in old town Victorville. The second 30,000 sq. ft. facility is in the newer industrial/ comercial area of Victorville and features onsite alignment and mechanical. “Because we have two locations, we’re technically an MSO, but we don’t think of ourselves that way,” added Terry. Gary asked Terry to take over the shop in 2010, right in the middle of his
22 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Western Associations with Ed Attanasio
EB-CAA Model Truck Customization Event Back in a Big Way
After a one-year hiatus, the California Autobody Association’s East Bay (EBCAA) chapter hosted its 16th annual Toys for Tots Model Truck Customizing Competition on Nov. 18 at Zia Freddo’s in Pleasant Hill, CA. With close to 200 East Bay CAA chapter members and friends in attendance for the dinner, raffle, and truck competition, the evening was filled with holiday cheer and philanthropy. Ten East Bay body shops, local vendors and auto repair school pro-
grams entered the competition. Each was given an identical Nylint die-cast truck to modify and customize for the contest. First place went to the College of Alameda and the People’s Choice award went to TGIF Auto Body in Fremont, CA for a truck that was described as a ‘BBQ on wheels’, perfect for grilling s’mores and more, according to Kathy Mello, the shop’s owner. “These truck renovations are amazing, because they’re actually
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
works of art,” Mello said. “We get excited every year coming up with new ideas for our next truck creation. Everyone in the shop gets involved and that’s why it’s so special. This year’s truck was beautiful, plus is has a function, which gives it that wow factor.” The Educational Best-of-Class award, given to the best truck entered by an educational institution, went to the College of Alameda, which also captured first place overall. By con-
verting the model into a stunning tow truck with a vehicle atop the bed, this stunning creation received major kudos from the school’s customized truck. Second place went to TGIF and third place went to Accurate Auto Body in Richmond, CA.
The College of Alameda captured the top prize with this impressive creation. Project Manager Miranda German-Xicana Meyers was one of the creators of this entry
Bill Andrews, an instructor at the College of Alameda is proud of the way his students stepped up with their winning truck. Along with the school’s paint instructor Peter Ha, this winning creation got oohs and aahs all night long. “Our students put more than 30 hours into that truck and we were working on it right up until the
The People’s Choice award went to TGIF Auto Body in Fremont, CA for this customized truck that also can be used as a mini BBQ. One of the techs who designed this truck is Tony Aljandre at right
deadline,” Andrews said. “It’s a ramp truck with a model of a 1955 Chevy Nomad in the bed and the paint really makes it stand out. Miranda GermanXicana Meyers spearheaded the building and painting of the vehicle and See EB-CAA Model Truck, Page 46
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 23
Continued from Cover
Community Christmas
munity minded,” said Margaret. “Our community has supported us 100 percent in all of our endeavors, so we try to give back as often as possible.” The shop’s finances, office management, public relations, and “you name it” are handled by Margaret. Her son, Tim, who co-owns the shop took over as president after David passed away. Margaret’s husband and daughter-in-law are also employees. The family’s seventh annual Cookies and Cocoa event, which took place on December 4, has raised $3,800 in cash donations so far, as well as 41 bikes and barrels of coats and toys. “We bought 36 of the bikes, and then our friends contributed the other five,” said Margaret. “I buy the coats from Rothschild; they give me an 85 percent discount for the event.” This year, Godfrey Women’s Club made all the cookies for Cookies and Cocoa, while in past years, Margaret and her two granddaughters, Taylor, 11, and Lily, 8 were in charge of baking. “[Godfrey Women’s Club] is a group of local women who do a lot of
good in the community,” said Margaret. “We are friends with all the ladies, so one of the members asked if she could make the cookies this year, which saved me a lot of work.”
Margaret’s granddaughters, Taylor and Lily Freer, pose in front of the spread of cookies before the crowd comes
The traditional holiday season isn’t the only time the Freers spread Christmas cheer. For the past five summers, they have raised money for the Community Christmas in December with a Christmas in July event. “It all started when Taylor wanted to donate her piggy bank to Community Christmas,” said Margaret. “I suggested they start a lemonade or Kool-Aid stand instead.”
24 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
The idea for a lemonade stand took off, and turned into a full-blown fundraiser. The girls raised $2,500 the first year, $6,500 the third year, and a whopping $18,200 this past summer. “My granddaughters and their friends do everything – they wait on people, serve food, sell the raffles, etc., while we make 100 lbs of Sloppy Joe’s.” The yearly prize for the raffle winner is a trip to Disneyland. Margaret and the rest of the family at Freer Auto Body ask 50 of their friends to sell 20 raffle tickets for $10 a piece in order to reach $10,000. Over the years, Freer Auto Body has raised over $36,000 in cash donations, toys and clothes for Community Christmas, which is one of the many reasons the Godfrey Women’s Club awarded the shop a Golden Leaf in 2011. “We are the most respected body shop in the community,” Margaret said. Please call United Way’s Southwest Illinois Division at 618-258-9800 or visit HelpingPeople.org for more information.
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Arson Investigation at Body Shop in Watsonville, CA
A fire at Auto Tech Auto Body on E. Lake Avenue started at 10:24 pm on December 15, but firefighters were able to put it out quickly. The cause of the blaze is under investigation due to suspicious circumstances, kionrightnow.com reported. The Watsonville Police Department Investigations Bureau urges anyone with information to call (831) 768-3350 or the tipline at (831) 768-3544.
ABRA Expands in Three States
ABRA Auto Body & Glass, a national damaged vehicle repair company, expanded for the third time in just 30 days, in three separate states, and with three separate transactions. ABRA announced the acquisition of Consolidated Collision Center in Park Forest, IL, three CARS, Inc. locations in Knoxville, TN, and Murdock Collision Center in Woods Cross, UT. The additional openings increase ABRA’s total repair center portfolio to 258 in 20 states.
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First Fully Robotic Paint Curing Equipment Can Improve Bottom Line for Shops and the Environment by Stacey Phillips, Assistant Editor
Two industry veterans, with over 100 years of experience between them, recently brought an innovative paint curing technology to North America that offers collision repair owners potential energy and cost savings, as well as increased productivity in their shops. As the owners of D&S Curing Solutions, Doug Verdier and Sam Midgley are the official North American suppliers of the Ionitec Gas-Fired Infrared Technology. It is the only fully robotic piece of equipment that can be retrofitted into any paint booth and used with all types of paint, including High Solids or water-based paint materials.
The car is shown in the paint booth with the robot curing device
“The machine focuses energy just on the specific areas on the automobile that are about to be cured,” said Verdier, who installed the equipment in his Oregon-based shop, Active Auto Body, on October 2, 2014. “It definitely benefits shops by saving on their gas bill and by getting work out faster, putting more cars through the paint shop everyday. The system is very easy to use and my painter took to it within days.” Located in the center of Portland, Verdier said his shop has the capability to bring in more work but there is only so much room to expand. Working on high-end vehicles, Verdier said “We can only hurry them so fast before we start jeopardizing the quality of the repair.” He found that by adding the paint curing equipment to his existing paint booth, it doesn’t take up any more space in the shop and has helped with efficiency. “This equipment allows the body shop to move things through the paint shop much faster and they’re cured completely once they leave the booth so your body shop manager or your technicians can put them back together without messing up the paint. The paint is fully cured and it’s like working on a car that has come off the assembly line or from the dealership.” Typically, he said a shop with one
booth might paint four or five cars a day. “With this piece of equipment, you can easily step that up to eight to 14 cars a day,” said Verdier. “With the Ionitec curing process the only thing that is dried or heated are the panels that have been painted,” said Midgley. “With our system there is no need to heat the entire booth and total cross linking occurs within seconds at a temperature on the panel of around 250 degrees F. When the car comes out of the spray booth it is fully cured and ready for final assembly or minor polish and delivery to the customer. Midgley said unlike other machines, you do not have to mask the plastic parts with a protective coating to keep them from melting and it only takes one passage to cure the job. “You press a series of buttons on the machine and the curing process starts automatically,” he explained. Curing is when there is a full cross linking of the paint molecules. This process, called “exothermic reaction,” ties the paint molecules together and creates cross linking. “This allows a quick turnaround time for customers with the same result you would get from the car factory when the car was first painted,” said Midgley. In addition, he said the process saves a massive amount of energy – up to about 95 percent by not having to heat the entire spray booth – and also improves the gloss. The paint curing system received a green energy award in Europe at Automechanika in September 2014.
Bringing First Robotic System to U.S. The business partners have been friends since 1957 when Midgley immigrated to the United States from Australia and met Verdier at school in Concord, CA, located east of San Francisco. Verdier’s father owned an auto body repair shop in Rodeo, CA where Verdier and Midgley eventually worked. In 1976, Verdier moved to Oregon and opened a Porsche body repair shop in Portland. Midgley joined Verdier and helped as a painter in the shop. Two years later Verdier opened Active Auto Body. Meanwhile, Midgley had moved back to Australia to work for Ford Motor Company in design engineering and then joined General Motors manufacturing for 25 years, working throughout Australia, North America, Europe and Asia-Pacific as a paint specialist. He was hired back at Ford Motor Company Asia-Pacific to look after six assembly
26 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
plants as a paint engineer. He also has a long association with lean manufacturing at both companies. When Midgley decided to retire, a friend of his with a large body repair shop in Melbourne asked his opinion about a new technology, gas-fired in-
Doug Verdier (l) and Sam Midgley (r in the paint booth with the 1st Ionitec Gas-Fired Infrared Technology in the U.S.A.
frared curing systems, manufactured by Italian-based company Symach. After learning about the technology, Midgley was offered a job as a training manager for the company in 2011. Following extensive training at the Symach facility in Bologna, Italy, he came back to Australia to teach body shops how to use the technology and shared the information with Verdier. One
year later the two traveled to Italy and came across Ionitec’s robotic system. After visiting nearly a dozen shops throughout Switzerland, Italy and Germany, Verdier said he was so impressed with the system he purchased a machine for his own collision repair shop. “The success of this technology in Australia and Europe has really taken off in the last five or six years,” said Midgley, who predicts the U.S. will follow their lead. “The insurance companies are really pushing hard on the body repair shops to get their costs down,” said Midgley. “With this system you can get your costs down and improve your output at the same time.” Once a shop purchases the technology, a full measurement of the paint booth is taken and then the equipment is manufactured in Italy. After installation, Midgley and Verdier will take the shop through a full training process that normally lasts one or two weeks. “I think this would be a benefit to any shop that is conscientious about trying to save on fossil fuels as well as any shop that has a progressive attitude to improve work flow and generate more revenue for their shop,” said Verdier.
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 27
Western News
Top 10 California Laws that Auto Body Shops Need to Know with Ed Attanasio
California Autobody Association (CAA) and Automotive Service Councils of California (ASCCA). Molodanof also serves on the California Bureau of Automotive Repair (BAR) Advisory Group, which provides input on BAR programs. These 10 laws directly impact body shops in California, so they should be well-known by collision repairers throughout the state. But Molodanof has discovered over the years that many aren’t even aware of them. Listed below (but in no particular) are the top10 California laws that all auto body repairers must be aware of.
Knowledge is king and truly empowering, especially when it comes to the laws of the land. Ignorance of any law doesn’t mean you don’t have to adhere to it and being in the dark on any law that can impact you or your business can cause you problems down the Jack Molodanof road. (file photo) is a We sat down reCalifornia attorney cently with Jack and lobbyist who Molodanof, a Calihas distinguished fornia attorney and himself in areas of automotive legislalobbyist who has tive and regulatory distinguished himlaw over that past self in areas of au30 years tomotive legislative and regulatory law over that past 30 years. He’s the go-to lawyer/lobbyist in California for the automotive repair industry and represents several statewide automotive associations, including the
1) Insurance companies are required to pay an auto body shop within 10 days after receipt of invoice. “The law provides that every insurer shall make payment payable to the repairer or to the named insured and the repairer, jointly, not less than 10 days subsequent to receipt of itemized bill,” Molodanof said.
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
“But, surprisingly, many shops don’t seem to know that fact.” See Insurance Code Section 560.
2) A shop cannot provide compensation to insurance agents/adjusters for referring vehicles. “It is unlawful for an automotive repair dealer or employees or agents to offer to any insurance agent, broker or adjuster any fee, commission, profit sharing or other form of direct or indirect consideration for referring an insured to a shop for vehicle repairs covered under an insurance policy,” Molodanof explained. “This is a tricky and dangerous area, because shops often take insurance adjustors to lunch, ball games and golf outings, for example, which could be a violation of the law if it is for the purpose of referring insured’s to the shop for repairs.” See Penal Code Section 551 (a)
3) A shop cannot record telephone
conversations with customers/insurance agents unless consent is obtained. “It is illegal for any person by means of any instrument to record a telephone conversation without the consent of all parties to the communication,” according to Molodanof. “This law may not exist in other states, but in California you always have to obtain consent before you record any conversation, which also includes your employees for training purposes.” See Penal Code Sections 630, 631, 632.
4) An auto shop repair bill maybe capped by a vehicle legal owner/lessor (i.e. bank/finance company/lender). “Generally, shops have lien rights for service performed on a vehicle, Molodanof said. “However, the lien laws are complex and contain limitations, especially if a bank/finance/lessor has a lien on the vehicle. The law provides that the bank/finance/lessor is generally only required to pay a shop
$1,500 for repairs and $1,250 storage, if a lien sale filed, exception apply.” See Civil Code Section 3068.
5) Insurance Companies are responsible for towing and storage charges. “Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of insured to a valid claimant claimant, is liable for those charges to the shop when a vehicle is towed and stored as a result of an accident or stolen recovery,” Molodanof said. See Vehicle Code 22524.5 and Section 2695.8(k) Fair Claims settlement Practices Regulations.
6) Auto body repairs must meet defined trade standards and insurers must comply. “The accepted trade standards for good and workmanlike auto body and frame repairs, procedures including sectioning of component parts, shall be performed in accordance with OEM service specifications or nationally distributed and periodically updated service specifications that are generally accepted by the auto body repair industry,” he said. “Based on the new Department of Insurance regula-
tions, insurer estimates now must follow these standards.” See BAR regulations section 3365 and Section 2695.8 (f) Fair Claims Settlement Practices Regulations.
7) Repair shops cannot pay referral fees to tow companies. “Automotive repair shops shall not directly of indirectly pay or agree to pay any money or anything of value as a commission, referral fee, inducement, or in any manner a consideration, to a towing service for the delivery or the arranging of a delivery of a vehicle not owned by the repair shop or towing service, for the purpose of storage or repair.” See Vehicle Code Section 12110 or BAR regulations service 3368.
8) A shop must have a separate license for performing car washing and detailing services if such services are not ancillary to its primary business. “If a repair shop is conducting a separate/side business of detailing vehicles the shop may have to obtain a separate license as a car wash/detailing shop,” Molodanof said. “The law provides an exemption for a shop registered with BAR who is primarily engaged in the business or repairing
and diagnosing motor vehicles. Body shops are always looking for ancillary sources of revenue and car detailing has proven to be an effective way of doing it, but make sure you’re in compliance before you pursue anything like this.” See Labor Code Sections 2050, 2051.
9) If you require employees to supply their own tools you must pay at least double the minimum wage. “This is the one many shops don’t know about,” Molodanof explained. “The law provides that when tools or equipment are required by the employer or are necessary to the performance of a job, such tools and equipment shall be provided and maintained by the employer, except that an employee whose wages are at least two times the minimum wage may be required to provide and maintain hand tools and equipment customarily required by the trade or craft.” See Wage Order 9 (Transportation).
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10.)A shop may not waive or discount a customer’s deductible if it means the shop will deviate from the insurer company accepted estimate. “Except in cases in which the amount of repair has been determined by the insurer and the repair services are performed in accordance with that determination, it is unlawful for a shop to offer or give any discount intended to offset a deductible required by a policy of insurance covering repairs,” he said. “The law does not prohibit an advertisement for repair at a discount as long as the amount of the repair has been determined by the insurer and the repair is performed in accordance with that determination.” See Penal Code section 551 (b). If you ever have any questions about your shop, BAR compliance and/or California automotive repair laws, feel free to contact Jack Molodanof at jack@mgrco.org.
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Media and Publicity for Shops Your To-Do Marketing List for 2015
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
with Ed Attanasio
When body shop owners ask me how can we get started on marketing for our shop, I tell them to start off with baby steps and gradually build your efforts over time. Marketing for any business is like chopping down a huge tree and the average small company does not have the means or money to knock it down with one full swoop. Imagine that marketing is like a big old Redwood tree and you’re sitting there with a little pen knife, but if you keep hacking away at it, eventually you’ll see results. So, I came up with this list of five deliverables—things you can start doing tomorrow. Why just five? Because it’s better to do five things right, as opposed to 500 poorly. After you’ve successfully achieved these five things, come up with five more, but don’t try to do everything—advertising, public relations, online marketing, social media, etc.—all at once, because then you’re setting yourself up for failure. Make a list and work through it and delegate if you can and then re-group after say six months and assess what has worked and what hasn’t.
1) Get Closer to Your DRPS Strengthen the insurer relationships that you currently have while always looking for more, because you may be doing well currently, but what if a new shop (or an MSO) moves into your region and cuts into your workload? We’re all aware that this is the age of consolidation, so it’s more than likely that new players may enter your market at any time. If one or more of your DRPs is shaky for whatever reason, either shed them or figure out ways to re-energize them. Keep continually engaged with your insurance agents, through e-mail marketing, networking events, blogs, occasional drop-in visits and social media. Facebook and Instagram might not be appropriate for your DRPs, but LinkedIn is a perfect vehicle to keep your insurance partners in the loop. Have constant and open communication with insurers, and offer insurer services at your shop, such as hosting continuing education courses, for example. Some body shops have special sections on their web sites dedicated
to their insurance partners. Many of these require passwords and some shops ask their insurance agents to register before then can access these exclusive sections. On these pages, shops can offer valuable information for insurance agents and even maybe entertain them a little too. In some of these exclusive sections, insurance agents can keep abreast of their company’s cars in your shop and message the shop’s personnel, if needed.
2) Get Closer to Your Community Improve your shop’s image in the community by host local events like a summer barbecue, or sponsor organizations that are important to the people in your region. Don’t’ be another faceless company and start reaching out to the community and supporting charitable organizations if you can. Be sure to identify local charities that community members have a connection with and reach out to them. Giving refurbished vehicles to people in need is a big way to achieve this, because the local media loves these types of stories and you’re playing a positive role in your own backyard, which is huge. Too many shop owners are like groundhogs—they stick their heads out of their shop only occasionally and people in their community don’t get a chance to meet them or know them. A body shop’s image should be the same as a bank’s or a hospital’s— leverage the good things you do in the community and make yourself visible at events and other occasions. Check into your local chamber of commerce and start attending their business mixers, because if more people see you, it can only enhance your position in your region. If you’re out there and your competitors are not, there’s a distinct advantage there for obvious reasons. You want people to think about you when they get in an accident and one of the best ways to achieve this is by being seen and building a reputation for being a business that just isn’t into making a buck. 3) Get More Social
30 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
Utilize social media more this year. Use Facebook, Twitter, Google + or Foursquare to get your message out there especially to the younger generation of customers. Research the newest forms of social media, but just don’t jump in without determining if it’s right for you. There are a lot of shops out there trying to use certain types of social media that aren’t ideal for them. If you start a Google + account and then never post anything, that looks bad. Find 4-6 forms of social media and post items on them (pictures and videos are best) and stay with them for the duration. Post on a regular basis and don’t deviate, because hammering away at social media is the most effective way to do it. If a customer can see that you haven’t posted anything on Facebook in quite some time, for example, it can actually hurt your image more than you think.
4) Update Your Web Site I’m shocked whenever I see a big, very successful body shop with a web site that is obviously 5-7 years old. With all of the great new platforms and development tools out there, remodeling your web site can likely be much easier this time around. With so many new bells and whistles available for even a very simple site, you can quickly keep up with the shop down the street and stand out online. We all know that the Yellow Pages are on the endangered list and more and more people are going to their laptops, smart phones, iPads and other devices to find businesses, including body shops. If a potential customer sees a dated web site with old-looking graphics and clunky navigation, they’re going to keep looking. It’s all about “image perceived, mission achieved” and making a good first impression. See Your To-Do Marketing List, Page 53
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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
Commercial Customers—A Reliable Business Source with Thomas Franklin
Although there are still many more independent shops than franchise and multiple operator shops, many of the best DRPs and dealership deals often go to the well-funded group shops. This trend may increase, as vehicle manufacturers require expensive equipment, tooling and certification to work on their vehicles. To carve out a successful niche for an independent shop, in the past I’ve suggested a variety of options. One that I think gets too little attention is the commercial vehicle market. In the past I’ve assisted three different shops that at least partly specialized in commercial vehicles. One focused on government and police vehicles. Another put in an oversize frame machine and an expanded spray booth to accommodate slightly larger delivery trucks, and a third shop, a GM dealership shop, focused on companies with Chevrolet and GM business vehicles. All three enjoyed above average profits on their commercial business. When I inquired about the pros and cons of this business, I learned that many small businesses prefer not to place minor damage claims with their insurance companies. They’d rather self-pay the repairs. Also since small dents and dings were a regular occurrence with some companies, the shop would provide a monthly billing statement and enjoy a steady stream of income. The shop owner who provided much of its commercial business to the local police department, quickly learned that he would get more of that
business if he also provided minor engine maintenance, lubrication and brakes and times. One single dedicated bay sufficed for that business, which also turned out to be quite profitable. This added service also got him into other commercial accounts. Plunging into the world of commercial accounts requires a very different method of marketing from normal insured and dealership vehicle promotions. Marketing to this world is more similar to that of many other services. Since most areas have a multitude of small and medium business with anywhere from a couple of vehicles to an entire fleet (one pest control company had over 200 vehicles), building a database of prospects can be a first step. For example, lists of appliance repair companies, air conditioning and heating companies, plumbers, electricians, and handyman and painting service companies can be purchased from a list company or built from on-line listings. The following four steps might be one way to develop opportunities to meet with prospective commercial account principals. It assumes you have a competent phone solicitation person who can modify the script to fit the conversation as he or she goes along. 1. Exploratory phone call: Could I please speak to your (delivery) vehicle maintenance manager. (If not in) Can I leave a message? What is his/her name, please? May I also send a note? What is the exact spelling of his/her name? Do I have the correct address? (If none, get mailing address. (If provided by outside
Nissan Settles Class-Action Suit Claiming Faulty Brakes
Nissan North America has agreed to reimburse customers between $20 and $800 each to resolve a lawsuit alleging that defects in certain vehicles caused brakes to fail suddenly, according to court papers. The settlement agreement, filed on Dec. 5, would affect current or former owners of approximately 350,000 vehicles nationwide. They include 2004-08 Nissan Armadas, Infiniti QX56s or certain Nissan Titans, according to the court papers filed with the U.S. District Court for the Northern District of California. If approved by U.S. District Judge Phyllis Hamilton, the settle-
ment would resolve a 2011 lawsuit that claimed a problem with an electrical component would cause the brakes to fail without warning. Plaintiffs had sought reimbursement for monetary losses, including expenses incurred for replacement or repairs. It does not include claims for physical injuries.Under the agreement, Nissan would reimburse class members between $20 and $800, depending on a vehicle’s mileage. The court awarded $3.45M in legal fees and expenses for the plaintiffs’ lawyers. A Nissan spokesman declined to comment.
34 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
source, ask for company that provides delivery vehicles) 2. To vehicle manager: Hello. I noticed that your company has company-owned vehicles. Do you do your own maintenance? (If so) Do you also repair damage to vehicle if they get in an accident or pick up minor dents or dings? (Usually they say NO) We would like to do some minor repair on one of your vehicles to show you the quality and speed of our work. (If large vehicles, indicate if we have an oversize frame machine and expanded spray booth to accommodate oversize vehicles). (If not doing their own maintenance) I assume, then, that you’re using an outside company to do your maintenance? (Usually YES) How many vehicles do you have? Would you consider an alternate outside service, if just for emergencies, when you need very fast service – or just to try an al-
ternate source? (IF not at this time) May I send you some information about our company? 3. Follow up the call by sending a letter and some literature. After a while, when you’re sure your letter has arrived, call again to see if he or she got it. Check again for an opportunity to perform some minor service to demonstrate what our shop can do – or to meet with the appropriate person. 4. Continue to send an update every month. Call again in a couple of months. Continue until they begin to respond positively and are willing to come in for at least a minor repair. Eventually this will work with many of them. Soliciting commercial business is very different from the usual collision repair marketing. Speed of repair is of the greatest importance. The company wants to get a disabled vehicle back on the road as soon as possible. If you can prove your shop can be the fastest, you’re likely to get the business.
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 35
Midwest 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.
VISION South of the Border 2014 Provides a Mixture of Business and Pleasure with Chasidy Rae Sisk
From November 13 through 17, the VISION South of the Border Conference took place at Secrets The Vine Resort in Cancun, Mexico. The event, hosted by the Automotive Service Association of the Midwest (ASA-Midwest), went great, according to Sheri Hamilton, Executive Director of ASA-Midwest. “The weather was fabulous, especially compared to the cold front we got in the Midwest while we were away, and the property was stunning, yet affordable. We had just under 80 attendees from all over the U.S. and Canada, and VISION South of the Border provided a valuable opportunity for shop owners and managers to get away for some training and networking with other automotive service professionals. They also had some time to kick back and relax which is
John Thornton leads discussion on Asian Driveability
great because everyone needs to take some time off. It’s easier to get these guys away from their businesses when work is added to the equation.” VISION South of the Border began on Thursday, November 13 with an evening welcome party, and on Friday morning, participants had the option of attending a management training session entitled “10 Critical Steps to Financial Freedom.” The seminar focused on how budgets, financial structuring and hourly rates contribute to the success of a business. The seminar was taught by Maylan Newton, an automotive service professional with 35 years of industry experience. Also on Friday morning, John Thornton taught a technical training seminar on “Asian Driveability” in which he used case studies to discuss a variety of diagnostic techniques to decipher driveability issues with late model Asian vehicles. He utilized scan tools, scopes and service information to dissect these case studies. With over 30 years of diagnostic experience, Thornton is an
ASE Certified Master Automotive L1 who employs a complete understanding of available system and diagnostic tools in his effective techniques. Attendees had Friday afternoon free to indulge in a tequila tasting at the resort, to go shopping, to schedule excursions around the area, or to just relax on the beautiful beaches that Cancun has to offer. After breakfast on Saturday morning, Newton presented another educational seminar, “Successful SelfManaging Teams,” which focused on how to develop a strong self-managing team that will be an integral part of their business. At the same time, Thornton presented “GM Driveability” to the technicians in attendance, covering the following topics: Gasoline Direct Injection, Mechanical Misfire Concerns, Variable Valve Lifts, CAN Bus, and Active Fuel Management. In the afternoon, attendees were free to enjoy the resort’s wine tasting event or to schedule an excursion if they did not choose to sit by the pool with a drink in their hands. Sunday was a free day for conference attendees to enjoy their visit to Cancun, and the evening culminated with a Farewell Party as departures began early the Monday morning. Hamilton says, “it was important that VISION South of the Border provide training and networking opportunities while allowing attendees to enjoy their getaway, and I think it offered a good balance of training, networking and downtime. The event met all of my expectations, and more importantly, it exceeded the attendees’ expectations. So far, we’ve received 100% positive feedback, so we’re planning to make it a bi-annual venture and return to the Cancun area in November 2016 because it’s such a beautiful destination.” Some of the feedback that Hamilton has already received follows: “This was the best event we have ever attended. Not just because it was in Cancun (which was an awesome experience just in itself) but Sheri did a fantastic job in putting this event together. She took very good care of us! Great speakers, great topics, great people, and a wonderful time!! Thank you so much Sheri! We look forward to your next
36 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
event!” — Brian and Lisa Holthe, Genesis Auto & RV Repair, Tacoma, WA. “Being a new event my expectations weren't high but I was blown away how this event was managed.
All work and no play... Not in Cancun! Attendees enjoyed time at the beach during the days...
The training was the best in the industry. I like the fact that the schedule wasn't too busy so we were able to enjoy our environment and network with each other. The cost was reasonable, training excellent and the best vacation we have experienced. I see this as another great benefit to our ASA-
Midwest membership. Do not miss the next event!” — Alan Quackenbush, Rick’s Automotive, Springfield, MO. “This opportunity to network and learn was fabulous, you could not ask for more. If you are a shop owner or manager and could have taken advantage of this event and you did not, you really missed out. As an industry, we are stronger and better when we know and work with each other. I strongly encourage you to take advantage of the next opportunity that comes your way.” — Barb & Greg Kinder, Autotech Auto Center, St. Louis, MO Although VISION South of the Border was an industry event and not an official ASA member event, Hamilton still believes it’s imperative that industry professionals “get away from their businesses and hard work to re-energize, and it’s even better when you add in the opportunity to network with peers from all over the country and acquire some quality training at the same time!” Original BMW Parts
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The Hybrid Shop Carves a Niche in Hybrid Maintenance and Service by Stacey Phillips, Assistant Editor
With nearly 75 different hybrid vehicles currently on the road and more than 100 models expected to be in production by 2016, Matt Curry of The Hybrid Shop said education, training and technology are crucial for the expanding hybrid electric vehicle (HEV) industry. “There’s a pent up demand for hybrid and electric vehicles,” said Curry, the company’s Chief Visionary Officer. “In order to keep up with the future you need to be in the business.” Prior to launching The Hybrid Shop in 2013, Curry and his wife Judy owned Curry’s Auto Service in Northern Virginia since 1997. Over the years they expanded their auto repair business to include 10 shops. During this time Curry purchased eight Toyota Priuses to use as customer shuttles and learn more about hybrids. After talking to Dr. Mark Quarto, a PhD electrical engineer at GM for 28 years who specializes in alternative fuel and hybrid technology, Curry soon realized that HEVs were very different from traditional automotive design.
The Currys sold their retail stores to Monro Muffler Brake in 2013 and opened The Hybrid Shop, which is headquartered in Gainesville, Virginia. Just one year later they have 39 franchises across the U.S. and are looking at further expansion nationwide and around the world. They recently attended the SEMA show in Las Vegas to continue to educate the industry about their business.
In addition to selling full franchises, the Hybrid Shop offers fractional franchises to those who own existing automotive repair and tire facilities and want to add a hybrid component. New owners and their technicians go through a four and a half day training session in Wisconsin. “We teach them how to diagnose, maintain and repair everything on a hybrid vehicle,” said Curry. The fran-
The Hybrid Shop team at their booth during SEMA: Jennifer Martin, Marketing Director; Dave Crawford, CEO; Matt Curry, Chief Visionary Officer; and Bob Curry, President
chise includes diagnostic tools, training, branding, marketing and sales support. “It is a comprehensive system that teaches them everything about hybrid vehicles.” Once a shop is operational, The Hybrid Shop profiles them on their website, which Curry said generates more than 300 leads a month to their dealer network. “We actively drive traffic into their stores,” said Curry. “We drive car count revenues and profits.” He said that while running his prior business they always prided themselves on their marketing and branding ability. “That’s what allowed us to grow from one store to 10 in 15 years.” Another main component of The Hybrid Shop is the battery conditioning that is offered to customers. Working closely with Chief Technical Officer Dr. Quarto, the AR&D team developed an exclusive technology only found at The Hybrid Shop that can restore a hybrid’s battery to over 95 percent of its original performance. Since hybrid batteries have a 100 percent failure rate, Curry said the only option available has been to replace the battery at an average cost of
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$4,000. “We can condition the battery for about a third of the price of battery replacement so it saves the customers thousands of dollars, it makes the repair shops thousands of dollars, and it’s better for the environment.” Curry said by conditioning the battery every four to five years or every 80,000 miles, it will keep the vehicle running at maximum efficiency, keep the gas mileage up and the performance of the vehicle working properly. “We are revolutionizing the Hybrid Electric Vehicle (HEV) industry by making repair and maintenance as cost-effective and eco-friendly as we possibly can,” said Curry. The Hybrid Shop received a 2014 Stevie People’s Choice Award for Favorite New Products and the 2014 Stevie American Business Award. On Nov. 19, the company announced that a Northern Virginia investment firm that manages approximately $4 billion in assets, has invested in The Hybrid Shop. Funds managed by the firm now own 38% of the company. “We are proud to announce this investment in The Hybrid Shop by a leading, multi-billion dollar firm,” said CEO Dave Crawford. “The fact that a
multi-billion dollar investment firm would want to invest in an early stage company serves as affirmation of our brand, business model and future potential as well as recognition of our success to-date in our ongoing efforts to achieve a position of innovation and fast-growth in the rapidly-evolving hybrid and electric space.” Dave Carney, owner of Hillside Auto Repair, purchased a fractional franchise in March as an addition to their shop. “I think it has provided the most amazing opportunities that I’ve seen in the 30 years that I have been in the industry,” he said. The Torrance, California-based company had limited industry training and didn’t feel they had enough knowledge about this growing industry. After sending five employees to The Hybrid Shop’s training, Carney said he could dispatch a hybrid to any one of them and they had the skill sets to be able to diagnose and work on it. “I’ve never seen such an energized, motivated employee in my entire life in 30 years of business as these employees came back from this hybrid training,” he said. “It was extensive. It was a lot of hands on and they came back and had a lot of confidence.”
Carney has found that business comes in spurts and the hybrids that need conditioning are the earlier ones on the road. He predicts that as the number of hybrids increases, they will be working on at least one per week, if not three or four. “What the Hybrid Shop did for us is it gave us the confidence to venture into this area of the unknown,” he said. “My expectation is that a year from now, once we get a little experience under our belt, we will be the knowledge base of everything hybrid in our community in Southern California.” Rich Hoffman, owner of Hoffman Tire Pros in Fayetteville, Georgia, purchased a franchise in June. With no prior knowledge of hybrids, Hoffman said that he saw great potential for hybrids in the future. “I like to stay on top of technology and I like to be ahead of the curve,” said Hoffman, who has owned his business for 38 years. “I did some research and felt like the hybrid was here to stay and the Hybrid Shop has the advantage that nobody else has.” Hoffman estimates that he currently does 35 percent tire work and 65 percent service at his eight-bay facility, which he can also use to work on hy-
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brids. He recently built a 10 foot by 20 foot “clean” room for the hybrid equipment and to service and condition the batteries. “Any service facility can do the job,” said Hoffman. “You just need to have, I feel, a separate place to work on it.” In addition to the training offered by The Hybrid Shop, Hoffman has learned a lot from staying in touch with other dealers in the network. The dealers recently met for a roundtable discussion during SEMA where they established a dealer advisory council. After hearing many wives’ tales about working on hybrids, Hoffman said, “The hybrid is not as difficult as it sounds as long as you have the training and knowledge and respect what you are working with.” “It’s an opportunity to differentiate yourself from the competition, Crawford. He said that with the mandated CAFÉ standards from the federal government, all new vehicle fleets must average 54.5 miles per gallon by 2025. “The traditional internal combustion engine as we know it today will not be able to meet this objective, which opens the door for hybrid technology. Fastforward 10 years from now and the hybrid business is going to be huge.”
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Lean Operations
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Successful Change Using Modern Leadership with David Luehr
I have presented and written several articles recently where I have expressed my views on the new age of leadership. I have been openly critical about the outdated, Industrial Age leadership methods being used by leaders in many collision repair businesses. The reason I am so passionate about this subject is because it is at the very core of our continued success as a collision industry. The business leaders that first embrace modern leadership concepts will dominate the industry! Shop leaders continue to struggle implementing new systems for producing repair jobs faster and better. Lean systems are beginning to get a bad name. Technicians think that each new attempt at process change is just another “flavor of the month” and rarely if ever do they embrace the change initiatives. Why? I will give you my scaled down version of “why” containing two eye opening thoughts.
■ Why are you in business? ■ Why should the staff care?
Why are you in business? This seemingly simple question completely stumps a vast majority of my clients. Why do you do what you do? Is the reason you get out of bed every day just to keep the bills paid or is there a grander more noble purpose to why you are managing or owning a collision repair business? The sad fact is that many of my clients forgot why they started their business to begin with. The harsh realities of daily business has changed the original why from what was once a why of great joy and passion to what is now mere survival. Have we forgotten how to dream? I have nothing against consolidators, but in many cases, MSO consolidation feeds on the lost dreams of independent owners. Can you see the connection? I can see it, because I have lived it, and seen it firsthand. What does this have to do with influence and getting people to do what you want? How does this affect your attempts at lasting change? It has everything to do with it! Values and vision are at the very foundation of every great organization. If you
don’t know the “WHY” how are you going to have a guiding vision in the first place? First you must deeply think about your why. Think about the dreams you had when you first opened your body shop or when you first became the manager of a shop. Find that passionate person inside of you and bring him back! What does your business model look and feel like in your dreams? In your dreams, is your shop the one everyone wants to come to work at? Are DRPs lining up at your door because your reputation is so amazing? Are your customers raving fans because you and your employees treat them with a level of excellence rarely seen in the industry? Are you and your staff enjoying your time at work? Thoughts like those I have mentioned are a distant dream for many, but it is also a pleasant reality for business owners that are willing to continue fighting when slapped in the face by reality, doubt, and fear! Once you have figured out and written down your why, it is time to shout it out to the world! It becomes the fabric of your business, the culture, and then you can begin to share the vision of the why with your employees. Only after you understand this can the next step be addressed.
Why Should the Staff Care? Industrial aged thinking views employee satisfaction and motivation primarily as a product of the almighty dollar. In Daniel Pink’s book, DRIVE, he states “The best use of money as a motivator is to pay people enough to take the issue of money off the table.” Daniel then goes on to say, “But once we’ve cleared the table, carrots and sticks can achieve precisely the opposite of their intended aims.” So to paraphrase Pink’s thoughts, paying people what they are worth is critical to fulfill their basic needs of living, but beyond that, throwing money at problems in an attempt to solve them usually doesn’t work. I believe that many of us still use this technique mainly because we don’t understand modern leadership skills. In my recent article “The Wrong Bonus Plan Can be Worse than None
40 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
at All” (see Auto Body News August 2014) I go into depth on why this is so. “There will never be an incentive program that can make up for the lack of proper management and leadership!”
3 fundamental leadership steps I believe there are 3 fundamental leadership steps to getting your people to follow you and your change initiatives. Obviously there is a lot more to leadership and influence skills than what I am giving you today, but if you can get these 3 right, you are well on your way!
1. Learn how to communicate with people In order to get people to openly communicate with you, you need to learn how to talk to people correctly. Modern leadership involves creating a safe environment for people to speak freely with each other and leaders. Time
wisely spent just listening to your staff with your ego removed is huge to the development of a healthy change culture. Every shop has employees that mouth off and complain a lot, it is your job to find out what lies beneath the griping. Communication skills are paramount to all other leadership skills in my opinion and simply by being a better listener and making it safe for people to open up to you will make a huge difference over time.
2. Tie intrinsic values to key behaviors If you want to get your staff on board with your change initiatives, you must learn to tie your employees intrinsic values to key behaviors that will make your vision come to life! In other words, you have to know your people, what they value and think is important. Intrinsic value is another word for “what are you passionate about?” See Successful Change, Page 47
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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.
CIC Says ‘No’ to ASA, Sheila Loftus Predicts, Multi Association Task Force, Labor Rates with John Yoswick
20 years ago in the collision repair industry (January 1995) Participants at the Collision Industry Conference (CIC) in San Diego in January voted to reject the Automotive Service Association’s offer to fund and administer future CIC meetings. While shop owners, suppliers and insurers at the meeting praised ASA’s offer, many also said they felt ASA’s resources could be put to better use. “I would like to commend the leadership of ASA for being willing to look at benevolent programs on the part of the industry,” Mitchell’s Ted Hill said. “But CIC has gotten where it has with its present (funding) method. If we change it, would we be cheating ourselves from some other opportunity that ASA’s funds could go toward to benefit the industry?” ASA’s offer was presented to CIC by Bob Anderson, an Ohio shop owner and director of the ASA’s Colli-
sion Division. The proposal stated that concerns with ASA’s proposal, including the possible perception of CIC ASA would use profits from the Naif administered by ASA. tional Autobody Congress and Exposi“I honestly would be surprised if tion (NACE) to fund its administration of CIC, eliminating the need for CIC at any point in time this group decided participants to pay a per-meeting fee or annual sponsorship fee. “It would be an opendoor policy for anyone who would like to attend,” Anderson said. “Many times, ASA has been criticized by those saying, ‘NACE makes some money; why don’t you do something for the industry?’ That is our intent here today. Bob Anderson presented the Automotive Service This is not an attempt by ASA Association’s 1995 offer to fund and administer the to take control of CIC. We are quarterly Collision Industry Conference (CIC) meetings, an offer CIC declined not asking for any special considerations from this group by making to have any other group administrate this proposal. Our motives are sincere. it,” Jeff Hendler, a past CIC chairIt is merely to provide financial assisman and current administrator of CIC, tance to the industry.” said. “I don’t think Mitchell would CIC participants voiced several like it if ADP or CCC made this pro-
posal. I don’t think Ford would like it, if General Motors made this proposal. I don’t think ASA would like it if the Washington Metropolitan Auto Body Association made the proposal. I think it’s the most benevolent gesture I’ve heard in a long, long time. I’d just like to see the money funneled somewhere else.” Anderson said ASA would be open to consider CIC proposals for use of ASA resources and NACE profits. – As reported in Autobody News. Now in its 31st year, CIC continues to be administered by Hendler’s company. ASA’s profits from NACE have presumably declined significantly since its offer to CIC in 1995. That year, NACE had 620 exhibiting companies and 31,000 attendees; last year, NACE had 6,500 attendees and 180 exhibiting companies. 15 years ago in the collision repair industry (January 2000)
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Now that we’ve seen one millennium come to a close, I’d like to have a crystal ball and be able to foresee what will happen in the next millennium. I’d even settle for being able to see about to the next 10 years. Or 50. Or 10. I’m afraid, though, that I, like most non-visionaries, will just have to see how things go. Even so, I’ll venture my own New Year’s list of predictions. Situation: The Baby Boomers are aging. The collision repair industry is already struggling to replace the Boomers in the workplace, and the search for good help will only get more difficult in this millennium. I’d like to see our industry actively embrace works we haven’t pursued in the past: women, minorities, non-English speakers. Prediction: By 2005, women will represent 10 percent of business owners in the collision repair industry, and the majority of workers in the industry will be first- and second-generation Americans. Situation: One collision repairer I know said he’d be happy to concentrate all his business on one insurer. So in the future, will collision repair
shops be appropriated by insurance company claims departments? Prediction: In 2008, you’ll see the opening of Progressive Body Shop. And in 2009, you’ll se the closing of Progressive Body Shop. – From an editorial in Hammer & Dolly by Sheila Loftus. Progressive has not owned body shops, but within two years of Loftus’ column, the insurer began piloting its “Concierge” service centers. Allstate bought Sterling Collision Centers in 2001 and grew the chain until it sold it off last year. Virtually all auto insurers, however, have shifted significant portions of their claims administration to direct repair shops.
10 years ago in the collision repair industry (January 2005) The three national collision repair associations have formed a “groundbreaking” joint taskforce as an off-shoot of the Collision Industry Conference (CIC) to work on “macro issues related to the way the [estimating] database companies operate.” Although the Association of Automotive Service Professionals (AASP), the Automotive Service Association (ASA), and the Society of Collision Re-
pair Specialists (SCRS) pushed for formation of the task force, the three groups said it will be open to participants from other segments of the industry, including insurers. In announcing the proposal, SCRS chairman Lou DiLisio said the taskforce will not address concerns about a specific labor time. Rather, the taskforce will look at issues such as how large-scale changes are made to the estimating databases and introduced into the industry. The creation of the taskforce comes in the wake of the ADP October (2004) situation in which paint labor times for about 150 vehicles were reduced. Such time reductions, whether made in error or not, are typically found by users only through trial and error, DiLisio said. The new taskforce may work toward a disclosure system for such changes. “The ADP issue caused problems across the industry for insurers, repairers and consumers,” DiLisio said. “To try to stop that from happening again, we’d like to sit down with the information providers and figure out a better way to make sure there’s full disclosure of any changes that come forward.”
– As reported in Autobody News. The taskforce was active for about five years, during which time it successfully pushed the estimating system providers to add more information to the systems about such things as what types of metals are used in various parts of particular vehicles. It was less successful in pressing for such changes as automation of operations such as “feather, prime and block.” “We’re disappointed in the lack of progress with some of the issues we’ve brought to the table,” DiLisio said in April of 2010.
5 years ago in the collision repair industry (January 2010) The Rhode Island Supreme Court will hear arguments on February 9 in the legal battle over a 2006 state law mandating that every insurer (with more than 1 percent market share) in Rhode Island conduct a labor rate survey. A state agency had said that under the law such surveys can be just one of a number of factors an insurer uses to determine a prevailing rate. But the Auto Body Association of Rhode Island sued the See Historical Snapshot, Next Page
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Midwest 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.
NABC Presents Award of Distinction and Body Shop Image Award, Also Names 2015 Board with Chasidy Rae Sisk
At the SEMA show in November, the National Auto Body Council (NABC) recognized several repair facilities as well as two industry professionals for their exemplary efforts in 2014 which best illustrate the association’s vision and mission with NABC’s Body Shop Image Award and the Award of Distinction. During NABC’s meeting at SEMA, the association also elected their new Board and Officers for 2015. NABC’s Body Shop Image Award is designed to recognize facilities that have had a beneficial impact on their communities through building and design improvements, while the Award of Distinction serves to honor the selfless acts of industry professionals which benefit others in their communities. Both awards strive to recognize auto body shops and individuals who exemplify the professionalism and integrity of the collision repair industry. The 2014 Body Shop Image Award was bestowed upon 1st Avenue Auto Body in Great Falls, MT for their recent remodeling efforts. Chuck Sulkala, Executive Director of NABC, states, “the facility’s remodel was an extended family affair, a joint effort by all employees, working to create a larger, appealing and welcoming area for customers. Employees did the majority of the physical work, from installing flooring and plumbing to refinishing of furniture pieces. The décor was also a family project – an
aluminum art piece above the fireplace was created by the grandchildren of owners Evelyn and Ken LaMott.” The runners-up for the Body Shop Image Award were as follows: Caliber Collision in Frisco, TX, CARSTAR Fort Collins North in Fort Collision, CO, and CARSTAR Russom’s Collision in Dyersburg, TN. For the 2014 Award of Distinction, two individuals were honored by being named co-winners. Mike Startz of Albert Kemperle, Inc. in RI was lauded for his selflessly heroic act in rescuing a woman and her two young children from a burning car. Also, Chet Bourdeau of Insurance Auto Auctions, Inc. (IAA) in Manchester, NH was recognized for the dedication and commitment he has shown in mentoring a 23-year-old man with autism as part of IAA’s new young adult internship program. Sulkala says, “selecting winners was challenging this year because of the record number of nominations we received in both award categories. At the same time, it is gratifying to hear about the many wonderful examples of how our auto body shops and collision industry professionals are making a positive different in local communities across the country.” NABC also elected their Board members and officers for 2015 in November. Nick Notte of International Paintless Dent Repair was named
Continued from Page 43
– As reported in CRASH Network (www.CrashNetwork.com), January 4, 2010. The Rhode Island Supreme Court later that year overturned the lower court’s ruling, saying that while the labor rate surveys must be conducted, they don’t have to be the sole determinant used by insurers in the state to determine a prevailing labor rate in a market.
Historical Snapshot
agency, and a lower court ruled in 2008 that the survey results must be “the sole determinant of the prevailing auto body labor rate.” The agency appealed that decision to the state’s Supreme Court.
President again, with Elizabeth Stein of Assured Performance receiving the role of Vice President. The 2015 Treasurer and Secretary will be Rick Tuuri of AudaExplore and Elizabeth Clark of State Farm Insurance, respectively. Enterprise Rent-A-Car’s Jon Faris will serve as Director-AtLarge, while Brandon Devis of Sherwin-Williams will remain NABC’s Past President. Many previous board members were re-elected, but three new members were also chosen for NABC’s 2015 Board of Directors and are as follows: Greg Clark of Caliber Collision, Keith Egan of RW Mallon Auto Paint, and Denise Hepler of Hertz. Returning Board members include Taylor Bowes and Domenic Brusco, both of PPG Automotive Refinish, Craig Camacho of Keenan Auto Body, Michael Jordan of Manchester Collision Center, Joe Lacy of GEICO, Bill Mayer of Insurance Auto Auctions,
David Merrell of PartsTrader, Jim Ocampo and Petra Schroeder from Axalta Coating Systems, I-CAR’s Jeff Peevy, Michael Quinn of uParts, Inc., 3M’s Renee Ricciotti, and Dan Young from CARSTAR. NABC’s returning Board President Nick Notte, says “we are pleased and excited to have such a strong roster of industry leaders make the commitment to help further the vision and mission of the National Auto Body Council. As we approach NABC’s 20th Anniversary, we are honored to join the ranks of many other dedicated volunteers whose efforts over the past years have helped make a positive impact in the collision industry.” NABC 7044 S. 13th Street Oak Creek, WI 53154 414-908-4957 www.NationalAutoBodyCouncil.org
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and the College of Alameda all re- is our chapter’s signature event, so ceived grants from the CAA East Bay having it back is a big deal,” Govette EB-CAA Model Truck chapter. “We want to support Efrain Gonzalez did the metal fabri- these schools in any way we cation. Ernie Eugenil, one of our other can, because they’re the fustudents won the evening’s big raffle ture of this industry,” Chapter prize—a 70” TV. So it was definitely President Tiffany Silva exa big night for the College of plained. “There is a shortage Alameda!” of qualified, well-trained The CAA East Bay chapter also body techs all over the coun- From (l to r), Lisa Daves, Mike Govette, Gigi Walker, Kathy gives several educational institutions try right now, so we want to Mello, Chapter President Tiffany Silva and Peter Lock, money for their auto repair programs, help them, so that we can hire head instructor of the auto tech department at Contra Costa College, were involved in the Model Truck Customizing Comderived from the sales of each cus- them when they’re ready to petition. Govette, Walker and Lock received recognition tomized truck. This year, Contra enter the field. The CAA East awards for their service to the EB-CAA Costa College, Mission Valley ROP, Bay chapter has always been an outstanding supporter of said. “We weren’t able to do the event these programs so we’re al- last year, because we couldn’t find ways happy to see all of the enough of these Nylint die-cast trucks schools represented here. The to customize. But, we found a source students always get into de- eventually, so we’re back on the right signing and building these track. It’s important for us to get tomodel trucks, and every year gether around the holidays as a chapwe see more and more top en- ter, but reaching out and helping tries from the schools in- people in need is really the most imvolved.” portant part of this evening. The truck Mike Govette, branch man- from the College of Alameda was exager for Finish Master in ceptional and the students really imThe evening’s organizer Mike Govette (center) with U.S. Concord, has been organizing pressed everyone with that truck. Marines Sgt. Richard Salas (left) and Sgt. Brendan the Toys for Tots Model Seeing so many students here was imLudington (right) were on hand to accept toy donations at the 16th annual Toys for Tots Model Truck Customizing Truck Customizing Competi- pressive, because they’re the future of Competition on Nov. 18 tion since its inception. “This our industry.” Continued from Page 23
Service King Surpasses 200 Locations with Acquisition
Service King Collision Repair Centers announced in December that the company now operates more than 200 locations with its recent acquisition of Kirmac Collision Services. Headquartered in Seattle, Washington, Kirmac Collision Services operates 12 locations capable of servicing 2,500 vehicles per month. “Entering the Pacific Northwest is an exciting step forward for us,” said Jeff McFadden, Service King’s President. “The integrity and vision with which founders Ian and Ken McIntosh built Kirmac Collision Services naturally drew us to their business. We’re excited to bring their team and the Pacific Northwest community into the Service King family.” With the Kirmac acquisition, Service King now offers collision repair services with 209 stores in 21 states throughout the country. “Entering our 21st state is a proud moment for the Service King family,” said McFadden. “We’re excited to bring the Service King standard of excellent service and superior collision repair to the Pacific Northwest community.” For more information, visit: www.serviceking.com.
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Successful Change
Once you get to know your people at a deeper level, you can have conversations with them about why such and such change initiative is important not only to the company, but also to them. To illustrate this, imagine speaking to your body tech about the importance of thorough disassembly and why it is critical to the success of blueprinting. This body tech is often negatively vocal about the quality of the estimates that are being produced at your shop, and commonly complains about all the delays it causes for him. This problem does create a financial impact for him, but what really ticks him off is that every time he gets started on a vehicle, he runs into a supplement or parts issue, and has to stop again. Too many leaders would write him off as a chronic complainer and not act further on the matter. He values smooth continuous production and it is your job as a modern day leader to connect the dots for him as to specifically why the thorough disassembly will help eliminate his pain. You have then connected his
intrinsic values (smooth continuous production) to key behaviors (thorough disassembly.)
3. Share the vision If you closely follow steps one and two and act with integrity while doing so, you will have built a foundation of trust and respect. This foundation may take months or maybe years to create, but it is this foundation that allows you to successfully share your why with your team. Your why, when connected to the intrinsic values of your people becomes a powerful culture. The vision of your why becomes the vision that your entire organization “lives.” You must paint this vision every day, so don’t be afraid to yell it from the roof tops, talk about your vision in your morning meetings, live it! Just don’t make the mistake of acting contrary to your vision. If your vision is to produce the highest quality collision repair work in your city, you better not turn a blind eye to even one poor quality repair job. Every time you turn a blind eye on your why or your vision, you quickly lose respect, and your integrity suffers. Having created a culture where everyone understands the vision,
TX Ford Dealer Sells Class Cars, Makes Millions
Dallas Ford dealer Sam Pack sold 132 of his 473 classic cars at an auction November 13-14 in Texas. The most expensive vehicle sold for over a million, according to chron.com. Pack’s total earnings came out to $11.5 million.
Summary Clearly there is much more to becoming an Influence Master than what is written in this article, but as I have stated, if you can just master the techniques I have described in this article you will seriously be miles ahead of the vast majority of shops in this country. Go get ‘em!
Photo credit: RM Auctions
Mazda Recall of Takata Airbags to be Expanded Nationwide
Mazda Motor Corp. will soon expand a recall of vehicles in the U.S. involving potentially defective airbags from Takata Corp., the automaker said Dec. 9. Mazda will make existing regional recalls nationwide, said spokeswoman Keiko Yano. Mazda has not yet determined the number of vehicles involved nor when it will launch the recall, she said.
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change initiatives such as those used in lean methods become much easier to pull off. If for example you want to implement a new Blueprint program, you gather your people, you explain why Blueprinting is important to the company’s vision. You connect the behaviors necessary for successful Blueprinting (such as thorough disassembly) to their intrinsic values (smooth continuous production, or whatever) and then you ask for their input on the best way to implement Blueprinting at your shop. (Buy-in)
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Aluminum Repair Tips & Techniques in Preparation for Ford F-150 by Stacey Phillips, Assistant Editor
With Ford’s new F-150 soon to be on the road, collision repair shops across the country are preparing for its release. During an SCRS seminar at SEMA, Larry Montanez of P&L Consultants discussed some of the new procedures and techniques shops will need to learn in order to repair this aluminum-bodied truck. Based in New York, P&L Consultants offers training programs for the collision and insurance industries. “Our mission is to make sure that everybody in the collision repair industry can work together towards making sure the vehicle is prepared properly,” said the company’s coowner Montanez. “There’s truly only one standard, which is what the manufacturer puts out.” He advised shops to learn about the new requirements that will be necessary to repair aluminum and to refer to the manuals provided by the dealer. During the seminar Montanez discussed the training options available for those in the industry, including vocational technical schools, third-party vendors, OEM training and the highest level of training in the au-
tomotive field – OEM welding certification. In a room filled with collision repair shop owners and technicians, he gave an overview of the types of steel and aluminum currently being used to manufacture vehicles. As a Larry Montanez of certified collision P&L Consultants damage analyst and ISO certified aluminum welder, Montanez said, “It’s a different repair process with aluminum than it is with steel. Aluminum is not as forgiving.” Aluminum melts at a much lower temperature than steel, 1,200 degree F versus 2,732 F, which he said changes the repair procedures with a vehicle. He stressed the importance of keeping the aluminum heated at the proper range. “Not staying within the repair heating range will cause the properties of the aluminum alloys to be lost and can anneal the component,” said Montanez. “Annealing is the process of heating the aluminum to the point that it is permanently softened and cannot be returned to its original state.”
Ford Begins Building All-New F-150 Truck
Ford began building their all-new F150 truck as the first one rolled off the line on Nov. 11 at the historic Ford Rouge Center in Dearborn, Michigan. Interest in the new Ford F-150 has steadily grown since the truck was revealed in January at the 2014 North American International Auto Show. More than 225,000 truck enthusiasts submitted their contact information for updates about the
be proud of and our customers can depend on,” said Bill Ford, Executive Chairman, Ford Motor Company. He said both the historic Ford Rouge Center and the all-new Ford F150 are hallmarks of innovation. Throughout the 20th and 21st centuries, Rouge has represented Henry Ford’s vision for lean, flexible and sustainable manufacturing. The 2015 F150 – the first mass-produced truck in its class featuring a high-strength, military-grade, aluminum-alloy body and bed. “The all-new F-150 is a showcase of innovation and class-leading capability for truck customers,” said Mark Fields, Ford’s President and CEO. “It underscores the The new Ford F-150 goes on sale in December in product excellence and innothe United States vation we are delivering in vehicle, and more than 250,000 cus- every part of our business as we actomers have built and priced their celerate our pace of progress toward own unique version of the all-new F- profitable growth.” F-150 is part of the Ford F-Se150 online – a record through 13 generations. The new model will be ries truck lineup. Now in its 66th year, the F-Series has been the best-selling in showrooms in December. “The all-new F-150 continues truck in America for 37 consecutive to advance my great-grandfather’s years and the best-selling vehicle in vision of building vehicles we can America for 32 consecutive years. 48 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
After teaching more than 40 classes over the past year, Montanez has found that most of the dents on a vehicle can be removed at a temperature of 200 to 300 degrees using MAP gas. He said that temperature-heating indicators, such as heat monitoring strips or a digital non-contact thermometer, should be used for measurement. Aluminum doesn’t change color like steel; instead it will just disappear, he said. “You can’t heat shrink a panel like you can with steel.” Due to aluminum softening at elevated temperatures, Montanez explained it allows the deformed areas to be straightened more easily. “Aluminum can be as strong as steel in a much thinner area.” He highlighted some of the other advantages of aluminum, such as its durability, strength, corrosion resistance, weight, recyclability and availability. Unlike steel, aluminum can be heated multiple times provided that the temperature remains within the heating range. He noted that quenching the panel with water or compressed air should be avoided and the panel should be allowed to cool naturally. Otherwise, there is a risk of crystallizing the
panel, which can lead to cracking. Regarding the heating equipment used on aluminum, Montanez said there are several options available, including a MAP torch, an oxyacetylene torch, an induction heater and a heat gun. He recommended the MAP torch due to its ease of use but advised against using propane gas. “Propane gas can only be used on a panel that is painted,” said Montanez. “The problem with propane gas is it will apply moisture to bare aluminum and can cause corrosion.” When working with aluminum, he recommended allocating a certain area or room to avoid cross contamination with steel. Ideally, shops should have a designated set of hand and power tools as well as separate equipment such as sandpaper and saw blades. In addition, shops will need vacuum extractors and a fan in the room that is explosion-proof. More information about P&L’s aluminum repair workshop can be found by contacting Larry Montanez at P&L Consulting: 917-860-3588 or info@pnlestimology.com
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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 49
Using Industry Statistics to Your Advantage with Mike Anderson by Victoria Antonelli, Online Editor
Statistics are a great way for any business, organization, or industry to figure out what areas need growth and improvement, and why. Mike Anderson of CollisionAdvice presented statistics helpful to every corner of the collision repair industry during his SCRS seminar at SEMA 2014.
The following industry statistics, both regional and national, were taken from Anderson’s PowerPoint. The original sources are credited in each section.
Studies by The Romans Group found: ● There are 13.3 million insured auto accidents annually ● Customers pay $3.2B (10.2% of total shop $) ● Insurers paid $28.2B ● Total repair revenue is $31.4B ● Up 2.2% from $30.7B in 2013
“A lot more people coming to your shops are paying out of their pocket,” said Anderson. “There are people in the industry looking to capitalize on that.”
Trends - Higher deductibles and more customer-pay work means shops are: ■ Offering no-interest financing ■ Offering 90 days same-as-cash ■ Suggesting gap insurance (www.4ubenefits.com) ■ Using tools to show how claim may impact rates ■ Offering good-better-best options
but up 3.1% from 2011 ● The 34,430 total does not include more than 6,300 dealership body shops, nor small shops without payroll
“Since 2011, we’ve been seeing an increase in shops and the number of people working in the collision re-
“According to a focus group study by 3M Automotive, the biggest complaint customers had was a lack of options,” said Anderson. “People want to feel like they have a part in the decision making. For example, a guy comes in with his 16-year-old who just crashed her car and needs the headlight fixed. Say, ‘we can fix it for $100, and it will still be safe and effective, but won’t look as good. The best option would cost $200.’”
Collision Shop Population Stats: (US Census Bureau, U.S. BLS, and Crash Network) ● Preliminary government data indicates 2014 will be third year in a row with growth in number of shops ● Still down from 5.7% peak in 2005,
in administration than ever before.”
‘Backyard’ Competition Stats: (U.S. BLS, CollisionWeek) ■ In 2011, 83,721 individuals reported wide variation in annual wages ■ Top painters average $70,420 compared to $25,700 for lowest 10% ■ Top body techs average $66,870 compared to $22,970 for lowest 10% ■ Top estimators average $83,990 compared to $32,390 for lowest 10%
Leasing Continues to Grow (Edmunds.com) ● Upside for shops: Leased vehicles tend to get repaired ● Potential downside for shops: Rising numbers of off-lease return vehicles in the coming years can drive down used car prices, which can drive up total losses
Mike Anderson of CollisionAdvice.com informs the packed seminar of industry statistics across the country
pair industry,” said Anderson. “The biggest area of increase is the office – we now have more people working
Labor Rates vs. Overall Inflation (Crash Network) ■ When looked at nationally, labor rates have not kept up with inflation. ■ Overall U.S. inflation 2006-2013 was 15.6%. ■ The national average rates for
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body/paint, frame and mechanical rose 14% or less during that period. ■ The national average rate for paint materials went up 19.7% from 20062013
Average Labor Hours per Claim: (Mitchell International) ● 2011: Avg. repair labor hours - 8.8, avg. removal of labor hours- 6.54, avg. refinish hours- 9.19 ● 2012: 8.78 hours, 6.85 hours and 9.23 hours ● 2013: 8.74 hours, 6.94 hours, and 9.25 hours ● 2014 (1Q): 8.31 hours, 6.94 hours, 9.13 hours
Uninsured Drivers (Insurance Research Council) ■ All but one state (New Hampshire) requires drivers to have insurance ■ Percentage of uninsured motorists rises or falls with unemployment (so percentage has fallen since 2009) ■ About 29.7 million drivers (12.6%) of drivers nationally lack insurance, down from 14.9% in 2003
Inflation Comparison (Collision Week) ● Over the last 12 months, price of auto
insurance and body work increased above the rate of inflation ● And since 2009, body work has risen 13.11%, slightly ahead of the overall inflation rate of 12.65% during that period ● But auto insurance costs have risen considerably higher, up 24.53% since 2009
Anderson says insurance companies need “service, speed, and accuracy” from body shops, in order to be as effective as possible. “Body shops should give extraordinary service, fix the car fast with quality, which is possible with a team system, allowing for more hands on deck and be accurate - know when the car is going to be returned to the customer, and stick with that time.”
The Romans Group studies show: ■ Of the largest 68 MSOs, almost 28% are in the West, and almost 26% are in the Southeast ■ The Northeast has the lowest MSO representation (just 5.6%) ■ Of the largest 68, more than half (39) do business in only one state
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(The Romans Group) ● Processed 15.5% of the $31.4 billion in collision revenue (up from 14.7% the prior year) ● When combined with four largest franchise branded consolidators, they processed 19% of all collision revenue ● Had sales of about $4.9 billion in 2013 (up $400 million from 2012 ● Have annual average sales of $3.5 million per location ● The top 10 MSOs include four dealerowned and six independent MSOs
CCC information services answers the question, “Why aren’t MSOs adding DRPs as much as they did 2000-2009?” ■ As larger insurers gain market share, more claims are going through fewer DRPs ■ One major insurer replaced traditional DRP by placing adjusters in shops, reducing many shops’ DRP counts by one ■ Some insurers are allowing more shops to write and upload an initial estimate even if not part of the insurer’s formal DRP program ■ During recession, drop in claims may have allowed insurers to process higher percentage of claims through staff appraisers rather than through DRP shops
■ Some of the “regional MSOs” with higher DRP counts may have expanded across state lines, shifting them into “national MSOs” and thus leading to reduction in the average DRP count for regional MSOs
“I think DRPs have made body shops lazy,” said Anderson. “What happens is once they’re certified by the DRPs, they stop worrying about servicing the customer, building that rapport, and marking their business, and then when things don’t work right and the DRP wants possession, the body shop gets all mad. At the end of the day, we need to take responsibility.” If you’re not happy with the way your shop is performing, Anderson says, “take responsibility – it’s not ‘we’ it’s ‘I;’ what can I do differently as a shop owner to impact my community and the industry?”
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A Lean Process Helps Shops Become More Efficient and Profitable by Stacey Phillips, Assistant Editor
Any collision repair shop can become more efficient and increase its profits by incorporating “Lean Processes” into their business, according to Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes. Feltovich shared his knowledge about the benefits of lean processes during a recent SCRS seminar at SEMA: Leaning on Process for Profit Improvement. As a consultant for the past 15 years to top industry executives at collision centers across the U.S., Canada, Central America and the UK, Feltovich often observed a difference of perspective between what a shop owner “thinks their business is” versus “what it actually is.” He encourages shop owners to ask themselves how to improve their business and then create a strategy to move forward. “The ideal state is what we should be pursuing for the business,” he said. Most shops have repaired cars the same way for years and when confronted with a problem, Feltovich said owners typically address it by adding people, space, equipment, inventory or data analysis. Instead, he said they should be addressing their process. “Process is just eliminating the traditional models because the leaner the shops get, the better it is for customer value.” He noted that Greg Horn, VP of Industry Relations for Mitchell International, recently discussed the growing trend toward lean process improvements. Horn observed, “There is continual market place pressure on collision repair centers for increased efficiency and enhanced customer service. As a result, many top shops have begun implementing what is referred to as ‘lean processes or lean management.’” Feltovich couldn’t agree more and cited the UK as an example. The average cycle time in the UK is three days versus 10.4 days in the U.S. In addition, 10 cars are painted per day per single booth in the UK and they have a six-hour average touch time per car each day. In comparison, three to four cars are painted per day per single booth in the U.S. and the average touch time per car is two and a half hours. Shop owners who do not embrace change, even the ones who consider themselves successful, are putting
themselves at risk in the future, said Feltovich. “Rely on that old success and tomorrow you will be obsolete, whether you want to be or not – you will be,” he said. “Businesses become obsolete every single day because they don’t progress forward, they don’t see the big picture.”
Steven Feltovich, Manager of Business Consulting Services for Sherwin-Williams Automotive Finishes
At the center of lean process is efficiency, which Feltovich defined as “achieving maximum productivity with the least amount of effort or expense.” He recommended mapping out how the business operates and asking the fundamental question: how well does the process actually accomplish its intended purpose? Some of the wasteful activities he mentioned that often take place at shops include: ● waiting for information, ● checking inventory levels, ● setup time, ● locating missing parts, ● repairing broken equipment, ● re-evaluating situations due to lack of communication, ● waiting for job assignments, ● unnecessary movement, and ● unused employee creativity. Feltovich used the example of “dead” vehicles just sitting in the production area not being worked on, and encouraged shops to cut back on the amount of time any vehicle sits idle. One suggestion is to detect all of the damage and repair requirements prior to loading the vehicle into the workshop, so there is only one parts order, saving both time and money. Other strategies he pointed out include bagging all vehicle parts for protection and staging parts for body repairs. “Parts carts” can also help by following the car throughout the repair process.
52 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
“Lean processes tie two critical components together – efficiency with effectiveness,” he said. “Now we’re not only doing things right, we’re doing the right thing.” Throughout his 35-year career, Feltovich has worked with dealerships, independents, insurance companies, OEMs and automotive refinish companies. “Our industry is changing in a very dynamic way,” said Feltovich. “If you’re not getting better everyday, you’re falling behind.” In order for shops to move forward, he stressed the importance of establishing a culture where all employees are actively engaged in improving the company. “Ninety percent is about culture and 10 percent is implementation,” said Feltovich. Over the years he has found that middle managers often get in the way of lean process improvement. “The idea of giving up control to employees doing it better than you is a frightening position to be in.” However, in order to create change in a shop, he said it is important to get all employees on board. “Everyone from the detailer to the front office person to the
owner should have one common goal – create customer value.” The lean process was pioneered by Toyota. Feltovich recommends that shops read “The Toyota Way,” written by Jeffrey K. Liker, for tips on management principles in order to get lean. “Tables and numbers only show us the result,” said Feltovich. “What we want to do is get ahead of the results and create a process that drives the financial results that we need in order to grow and stay in business.” He said customers want it “fast, free and perfect.” By delivering value from the customer’s perspective, continuously improving your process and eliminating waste, Feltovich said there are numerous benefits. These include reduced cycle times, higher quality at lower overall costs, better use of machine time and facility space, less internal stress and less inventory on hand. “Lean process absolutely works. It works in any business. Get it right, it’s incredibly sound. Get it wrong, it’s very disruptive.” For more information about lean processes, contact Steve Feltovich at steven.j.feltovich@sherwin.com.
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Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts
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San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net
Puente Hills Subaru City of Industry (626) 322-2555 (626) 322-2600 Fax Mon.-Fri. 7-6; Sat. 8-3 parts@puentehillssubaru.com tony@puentehillssubaru.com
Sacramento (877) 484-4870 (916) 484-4876 (916) 484-4878 Fax Mon.-Fri. 7:30-5:30 www.maitasubaru.com
Phoenix (866) 641-9880 (602) 776-6407 Fax Mon.-Fri. 7-6; Sat. 8-4 wholesaleparts@camelbackdifference.com
AutoNation Subaru Scottsdale Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4
Subaru Superstore of Chandler Chandler (877) 443-3239 (480) 268-2402 (480) 621-3805 Fax Mon.-Fri. 7-6; Sat. 7-5 subaruparts@shopsubaru.com www.shopsubaru.com
Shingle Springs Subaru Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com
Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 53
Fr
Mike Rose’s Auto Body Never Stops Giving Cars Away by Ed Attanasio
Mike Rose’s Auto Body presented a staff sergeant from Travis Air Force Base in Fairfield, CA and his family with a Hyundai Sonata as part of a
driving his six-year-old son Brandon Pearson to the medical specialists he needs at Stanford and eight-year-old daughter Jenna Pearson to and from school. In addition, the Rose family gave the Pearson family one year of
Mike Rose’s Auto Body gave a completely refurbished Hyundai Sonata to Staff Sgt. Kyle Pearson a as part of their Benevolence presentation on Veterans Day. That’s Owner Mike Rose second from left
Benevolence presentation on Veterans Day, November 11 at the company’s Fairfield location. Thanks to this refurbished vehicle, it will be much easier for Staff Sgt. Kyle Pearson to get to and from his duty at Travis AFB, as well as
insurance coverage and a trunk full of gifts for the children. The Mike Rose’s Auto Body Benevolence program is a “community give back program” whose mission is to present cars to deserving individuals or organizations during the
holiday season. Everything is donated, including the cars, parts, paint, mechanical inspections, tires and one full year of insurance. The body and paint technicians at Mike Rose’s Auto Body donate their time and skills to turn these cars into “new” used vehicles. The collision repair company, with 13 locations in the East Bay, has been participating in the Benevolence Program for the last 13 years and with this year’s 42nd Anniversary, it has donated 46 cars to the community. Mike Rose’s Auto Body will be presenting six fully re-furbished vehicles to those in need this year, with a second presentation to take place at their Antioch location in January. This year, Mike Rose’s Auto Body partnered with the Vintage Valley Blue Star Moms of Solano County, Travis AFB and GEICO Insurance during Veteran’s Day. Owner Mike Rose still gets a thrill when he sees a car going to a deserving family, he said. “It has been so rewarding over the last 13 years presenting the cars to deserving families and single parents who are working to improve their skills and become independent. We feel very honored to be able to do this and we will continue to do this as long as I am still around.”
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Allstate contributes $100,000 to CREF
Allstate Insurance Company announced in Dec. a contribution of $100,000 to the Collision Repair Education Foundation (CREF). The donation will help support high school and technical college school programs, instructors and students nationwide. The money will be allocated to CREF’s campaign fund that provides annual student scholarships, school grants, and the annual Ultimate Collision Education Makeover school grant, which is $50,000. “Education is a vital step in preparing the next generation of great technicians needed to repair vehicles that are becoming more complex by the day,” says Allstate’s Claims Vice President Pam Overton. “Contributing to the Collision Repair Education Foundation is an investment in the future and something we take great pride in at Allstate.” Collision Repair Education Foundation Executive Director Clark Plucinski said, “Allstate’s continued support has allowed CREF to help collision school programs graduate students who are productive, efficient and capable staff members day one on the job within the collision industry.”
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Trust your order to the collision parts specialists at these fine Dealers 54 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
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Collision Avoidance Technology Could Dramatically Change Repair Industry by Stacey Phillips, Assistant Editor
Recent research on collision avoidance technology found that an estimated 30 percent of collision repairs could be avoided when this type of equipment is fully adopted by car manufacturers, according to Carlisle & Company. This will not only affect drivers and save lives, but it will also influence the future of the auto repair industry. The Massachusetts-based company studied collision avoidance technology based on data from the Insurance Institute of Highway Safety (IIHS), The Highway Loss Data Institute (HDLI) as well as their own company research. Carlisle & Company provides aftersales strategic guidance and tactical solutions for the major motor vehicle brands. “Collision avoidance technology is any application that helps drivers and their cars avoid obstacles and other factors that may cause a collision,” said David Carlisle, Chairman of the Board at Carlisle & Company. The company’s 2014 research specifically focused on the following four types of technologies that are the most common in new vehicles: forward collision, side view assistance, lane departure and adaptive headlights.
The Highway Loss Data Institute estimated that by 2020 approximately 20 percent of all registered vehicles will be built with forward collision warning systems. Carlisle & Company conducted their own research and found that approximately 40 percent of automobiles will be deployed with similar technology by 2022. When the technology is fully adopted, Carlisle said forward collision systems will result in 3,335,000 avoidable repairs (20%); side view assistance will result in 1,006,000 avoidable repairs (6%); lane departure systems will account for 336,000 avoidable repairs (2%); and adaptive headlights will equate to 362,00 avoidable repairs (2%). If these estimates hold true, Carlisle predicts a major impact to the auto repair industry. “At this point, 15 percent of all collision repair jobs will be avoided,” he said. This will not only affect OEMs, whose collision parts make up 35 to 40 percent of their parts revenue, but the independent repair shops as well. “While collision avoidance ultimately is a good thing as it will save lives, it will certainly force aftermarket facilities and repair shops to adapt to a new market in order to stay afloat,” said
Carlisle. “Just because you have collision avoidance sensors on your car, does not mean you’ll rid your life of an auto collision for good,” said Carlisle. “One of the major challenges is testing this technology on the open road,” he said. “Many of these systems can be challenged on a test track and come back with great results, but nothing is like the real road. The only way to make collision avoidance systems as safe as possible is to test them in as many real-world situations as possible.”
Collision Avoidance on the Road Used in automobiles since the early 1990s, some of the earliest equipment included backup cameras. Now collision avoidance features are rapidly making their way into new vehicles in all price ranges. Some of these include the Mobileye technology that detects other vehicles and objects using only a camera and software and is used by BMW AG, General Motors and Tesla Motors; Subaru’s EyeSight Driver Assist System and Mercedes’ Collision Prevention Assist Plus. Honda said it is focusing its efforts in regards to collision avoidance technology in three main areas: passive safety technology which mitigates injuries; active technology that may
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help prevent accidents from happening; and connected and automated vehicles that could attempt to drastically reduce crashes and fatalities. “Honda is studying real world situations to develop vehicles with advanced collision protection and advanced safety and driver assistive technologies,” said Angie Nucci, Senior Environment and Safety Specialist for Honda Public Relations. Nucci said some of their technology includes the Acura Watch system available on the 2015 TLX and the Honda Sensing system on the 2015 Honda CRV Touring model. “Honda Sensing is an integrated camera and radar system to help detect vehicles and pedestrians in front of you,” she explained. This driver assist technology includes a Collision Mitigation Braking System, a Lane Keeping Assist System, Adaptive Cruise Control and Honda LaneWatch. Toyota Motor Corporation said it plans to launch new safety technologies in 2015 to help prevent or mitigate collisions across a wide range of vehicle speeds. They will be offered in two “Toyota Safety Sense” packages and rolled out across most passenger models in Japan, North America and Europe by the end of 2017. See Collision Avoidance, Page 59
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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 55
Toyota’s “Game-Changing” Recommended Repair Procedures Set to Launch in 2015 by Victoria Antonelli, Online Editor
At the 2014 SEMA Show, Toyota Motor Sales, U.S.A., Inc. exhibited their updated collision repair estimating system, which can be accessed from every web browser on any device. Tens of thousands of collision industry professionals were introduced to Toyota Recommended Repair Procedures (TRRP)—a tool that provides repair specialists with instant access to all the information needed to restore vehicles to their pre-accident condition. In the first quarter of 2015, Toyota will begin their release of TRRP with coverage for 29 Toyota and Scion vehicles dating back to 2005. “This program is a game changer for the industry,” commented Rick Leos, Collision Program Developer, Toyota Motor Sales, U.S.A., Inc. “By offering a solution that provides Toyota repair procedures, parts and technical information in one place, we help the industry by establishing a standardized approach to repair planning. Collision repair specialists will benefit from decreased cycle times, reduced supplements and greater overall work efficiency. It’s a win for our customers, repair experts and insurance companies alike.”
Toyota has integrated with Mitchell Estimating, which will be the online platform for repair shops and insurance carriers. Although Toyota is the first and only OEM currently providing Recommended Repair Procedures, the estimating platform is capable of writing an estimate on any vehicle in Mitchell’s database, according to Kenny Crumpler, Product Manager at Mitchell International.
and sub-models.” Toyota’s template-based program reduces the preparation of a repair plan from hours to a couple minutes, saving collision repair specialists’ time, while increasing the level of efficiency and accuracy at the front end of the repair process. Repairers no longer need to start from a blank sheet of paper; they begin with a detailed repair plan, and omit what isn’t needed rather than adding each operation individually. Additionally, TRRP includes recommendations on parts that manufacturers designate as non-reusable or one-time use, which by definition means they must be replaced rather than reused. “When you have 1.8 million claims a year, a The new Toyota Recommended Repair Procedures featured 500-shop network isn’t going to able to make a big in a web-based platform enough footprint,” said “All these years we’ve relied on Leos. “Ninety percent of our cars are insurance companies to guide us on fixed by the independent repair shops cars, and now it’s time for the OEMs to − we owe them this data, so they can push their data down to the street level have the documentation to get the job to get our cars fixed,” said Leos. “With done correctly and, most importantly, the technology nowadays you got to safely, for our customers,” said Leos, a have all the information... there’s no 25-year collision veteran who has way you’re going to have technicians been developing Recommended Reable to specialize in 30 OEM models pair Procedures since he entered the
Mitchell Fourth Quarter 2014 Industry Trends Report Provides Insights for 2015
Mitchell, a leading provider of technology, connectivity and information solutions to the Property & Casualty (P&C) claims and Collision Repair industries, announced on Nov. 5 the availability of its Industry Trends Report (ITR) for the fourth quarter of 2014. The report compares year-overyear data to analyze the key areas of growth within the industry and help P&C insurers, bill reviewers, payers and auto body repair shops make better business decisions. The ITR is delivered in two editions to address timely concerns for the auto physical damage and casualty industries. In the Auto Physical Damage edition, vehicle repair speed remains a hotbutton industry topic because turnaround time is a priority for all parties involved. Within that process, bumper covers are the most commonly damaged part and the first point where an appraiser exercises judgment to repair or replace. In the report, Greg Horn, Vice President of Industry Relations at Mitchell, analyzes the labor hours devoted to repair a bumper and whether time varies by the make of the vehicle or if bumper price impacts repair time. According to Horn, the industry “should be devoting more hours to
bumper cover repair because it is a demonstrable win-win-win for the shop, the insurer and the vehicle owner. But the repair must be a quality, durable repair. It also suggests that whether you are an appraiser or collision technician, you need to keep up with the latest repair products and materials. When was the last time you looked?” In addition to this trends analysis, readers will find the latest data on average rental car time and used vehicle market conditions. Mitchell offered a webinar, Industry Trends Live, on the Auto Physical Damage edition of the report. During the webinar, Horn provided a deeper look into the trends, information and studies highlighted in this quarter’s ITR on Wednesday, November 12. First published in April 2001, Mitchell’s ITR now reaches more than 33,000 collision and casualty industry professionals and provides visibility into data-driven trends in the P&C market. The complete report is available at: www.mitchell.com/industry-trends-report. For further collision repair and property casualty industry updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.
56 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
industry. Toyota’s long-term vision is to offer other OEMs the opportunity to leverage this patent-pending template technology, consequently shifting the industry paradigm to one with greater transparency and better access to factory-recommended repair procedures. As a result, OEMs will achieve a significant impact in maintaining the safety of their vehicles through greater visibility of the parts and procedures required to complete the repairs. “I hope this is the beginning of something that will catch fire,” said Crumpler. On November 4, Leos and Crumpler decided that the new template will be integrated into the legacy system, which they hope will make the transition to an upgraded platform smoother. TRRP is currently being tested at Beta certified Toyota locations. In an effort to broaden the reach of this template technology, it is being licensed under the name “OEM Recommended Procedures” to OEMs and data providers in the U.S. and internationally. To learn more about TRRP, contact Rick Leos, Collision Program Developer, Toyota Motor Sales, U.S.A., Inc. at (310) 468-3111.
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NO. CALIFORNIA East Bay BMW
Pleasanton 888-686-4580 M-F 7am-6pm Sat 7:30am-5pm Sun 10am-5pm
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Sonnen BMW San Rafael 415-482-2040
SO. CALIFORNIA BMW of Murrieta
Murrieta 888-805-2393 951-698-2086 Fax www.bmwofmurrieta.com
BMW of Palm Springs Palm Springs 760-324-8314
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Center BMW Sherman Oaks 818-990-9518
New Century BMW Alhambra 626-576-2867 www.ncbmw.com
www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 57
Enterprise’s ARMS Application Helps Shops Track Cycle Time and Benchmark Performance by Stacey Phillips, Assistant Editor
A website application developed by Enterprise Rent-A-Car 15 years ago has evolved to become an industry standard to help shops track their cycle time and benchmark their performance against others in the collision repair business. Enterprise’s Automated Rental Management System (ARMS) tracks length-ofrental (LOR) data, which Frank LaViola, Assistant VP of Collision Industry Relations, said can improve a shop’s performance by increasing operating efficiencies, enhancing customer service and streamlining communications with insurance companies and customers. With more than 13,000 users, ARMS was originally built in 1999 as a communication tool for auto body shops to report to Enterprise on the repair status of a vehicle. The information was then passed on to the insurance company. Prior to the introduction of ARMS, Enterprise would typically call the collision repair center for an update. “As the number of claims and customers in need of rental cars grew, it became more burdensome for the body shops and the insurance companies to manage the communication,” said LaViola. “When we launched ARMS, we were ahead of the time. Now, ARMS has become a mainstream tool for the majority of collision re-
pairers out there.” Enterprise began sharing LOR information with collision shops five years ago in response to requests from the industry. LaViola, who has worked at Enterprise since 1992, said they sat down with their business partners, individual collision repairers and MSOs and came up with a variety of ARMS reports. After tracking data for more than a year, they have found the cycle time is actually going up. The U.S. average length of replacement rental increased to 11 days in the third quarter of 2014, which was a slight increase over the average third quarter LOR for the last five years. “I think a lot of us would think it would be going down because there is more awareness,” said LaViola. He attributes the increase to several factors, including severe weather conditions. In addition, the number of shops in operation is declining, which he said has been an ongoing process. He said there were approximately 80,000 shops in the U.S. in 1980 and now there are about 34,000. The complexity of vehicles is also a big factor. “It isn’t like five years ago when you could just pound out a dent, and send a car on its way,” he said. “Now you’ve got sensors on vehicles that require you to only use so much paint. Too much paint can cause the sensors not to work because of
the mil thickness.” The free application can be integrated with over 20 body shop management systems, including Mitchell Repair Center, ProfitNet, Rome Management Software and Summit Software Solutions. LaViola estimated that 30 percent of shops currently have a management system that tracks cycle time. Although he said this is a great mechanism to measure productivity internally, the challenge has always been the interpretation of when the cycle time begins. “Three different shops using the same management system can actually have different interpretations of when cycle time starts and ends. Enterprise’s ARMS length-ofrental data helps give shops a more consistent measurement of cycle time.” Enterprise’s LOR has become such an important part of the industry, according to LaViola, because it’s based on the bill dates of the rental, which includes the open date of the rental contract to the last date they bill an insurance company. Using ARMS, shops are able to upload the date into their management system and it will automatically feed the repair status and estimated completion dates to Enterprise and the insurance company. They’ve received positive feedback from shops regarding the reporting, said LaViola. Not only has it decreased the phone calls made, it has also taken away a
lot of the double keying that is done. Chris Pohanka, VP of Operations for Pohanka Collision Centers of VA and MD, said ARMS has helped him shave off more than two days of cycle time. With 12 locations, Pohanka said they have been using ARMS since it was first introduced. “Currently, we utilize it to manage our cycle time by way of the LOR report,” he said. “With it, we can identify opportunities to reduce cycle time. We find it a tremendous tool.” He stressed how critical it is to have target dates entered correctly in the management system so it is seamlessly transferred into ARMS. “This gives a good indication of the forecasted cycle time and shows what vehicles and files are pending and which ones are closed,” he said. One of Enterprise’s goals is to input the year, make and model of the car into the ARMS application. Since luxury vehicles often take more time to fix than domestic vehicles, shops will be able to track cycle time based on their mix of vehicles. “You can’t improve what you don’t measure,” said LaViola. “When I show collision repair centers what their cycle time is, and they start evaluating their processes within the shop to reduce that cycle time, that’s when the homerun hits. That’s when they’re able to drive themselves to hit those numbers and achieve those goals.”
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58 JANUARY 2015 AUTOBODY NEWS | www.autobodynews.com
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Website Connects Collision Shop Owners & Auto Techs: TalentMonger.com
Continued from Page 55
Collision Avoidance
by Stacey Phillips, Assistant Editor
These include several of the company’s existing technologies such as the Pre-Collision System that helps prevent and mitigate collisions; Lane Departure Alert that helps prevent vehicles from departing from their lanes; and Automatic High Beam, helping to ensure optimal forward visibility during nighttime driving. In addition, there is an option for a millimeter-wave radar and camera that can detect pedestrians and Radar Cruise Control. “Toyota’s vision is of a world without traffic fatalities, and these advanced connected and automated vehicle technologies hold the potential to revolutionize automotive safety,” said Seigo Kuzumaki, Chief Safety Technology Officer Secretary for Toyota Motor Corporation. “We are committed to bringing advanced active safety systems to market as quickly as possible and will make them accessible to a broad range of drivers.” For more information about Carlisle & Company, visit: www.carlisle-co.com.
Finding and hiring new staff can often be a challenge for collision repair shops. Greg McVicker, a collision center manager in McMurray, Pennsylvania, recently launched TheTalentMonger.com website to help shops recruit employees based on their specific employment needs. “The whole premise of our site is that it’s proactive,” said McVicker. “You can go search for the person you are looking for versus spending the money to put an ad up and hoping that someone is going to respond to it.” Working at Budd Baer dealership and collision center in Washington, Pennsylvania since 2005, McVicker said one of their biggest challenges was to find qualified staff while their facility expanded. Established in 1975, they re-located in 2010 and added a two-story addition in 2014. “Through that time period I saw the same scenario play out over and over again where we tried to use traditional means of recruitment that are somewhat outdated for our industry,” he said. In addition to placing ads in the local classifieds and advertising on generic online recruitment sites, McVicker recalled spending nearly
$1,600 one week looking for technicians. After interviewing perspective employees who responded to the advertisements, he found that many didn’t have the necessary qualifications. Around that same time, McVicker became involved with the Alliance of Automotive Service Providers of Pennsylvania. He has been the local chapter President in Pittsburgh since 2008 and sat on the board of directors as the Collision Division Director of AASP-PA since 2012. Last year he began representing the association on the national board. As he was introduced to more and more shops, he noticed a recurring theme. “It became very clear to me that this wasn’t just an issue I was dealing with here in Pittsburgh,” said McVicker. “It was an issue that all over the country shops are struggling and trying to find and get connected with those people.” He said this led to the creation of the job search website. “That’s really the spirit with which TheTalentMonger.com came into existence,” said McVicker. “It was a way for us to eliminate the current recruiting process in the industry, save shop owners valuable time and money and get them connected with qualified techs.”
McVicker and his two partners, Erin Koen and Alan Shen, hired Impere Media in February to design the website. Seven months later it was launched nation-wide to the industry. Auto technicians are able to create a free profile highlighting their certifications, education and training. Owners and managers can also create a free profile for their shop, which allows them to search for potential employees who meet their specific criteria. Whether they are looking for a frame tech or a paint tech, when they are ready to contact a candidate, they can subscribe to the service to gain access to detailed information. As the site expands, McVicker said one of their goals is to reach out to the technical schools to give students a way to connect with the industry. Eventually, the plan is to give techs the option to relocate, which McVicker said would give shop owners access to a group of employees they might not otherwise have. They are also working with industry partners, such as SherwinWilliams, to help spread the word about the site. He encourages both job seekers and shop owners to check back regularly as TheTalentMonger.com continues to expand.
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www.autobodynews.com | JANUARY 2015 AUTOBODY NEWS 59
National Auto Body Council & Enterprise Rent-A-Car Partner with Progressive to Donate 117 Vehicles to Vets
Insurance Auto Auctions The 117 recipients were seand Copart. NABC mem- lected by local VFW chapters and ber repair facilities do- other veteran organizations with supnated time and resources port from VRC Investigations, a vetto repair the vehicles and eran-owned business. Vehicle titling Enterprise Rent-A-Car and registration processing was fadonated six months of in- cilitated by 1-800 Charity Cars surance for each of the which also donates its services for all 117 recipients. A number Recycled Rides events throughout of other NABC members the year. – paint, parts suppliers Since the inception of Recycled and service providers – Rides in 2007, NABC members have also contributed to the donated over 1,000 vehicles to deIn the largest, single-day car giveaway Color Guard and Pledge of Allegiance in Bridgeton, MO. nationwide project to serving individuals and nonprofit orever, members of the National Auto Photos courtesy of Progressive Insurance Body Council partnered with the Pro- families across the country with prac- thank and honor military gressive Group of Insurance Compa- tically brand-new vehicles on Veterans veterans. “Our congratulations nies, Enterprise Rent-A-Car and Day, November 11. Spearheaded by Progressive In- to Progressive for its leaderothers in the collision industry to present 117 military veterans and their surance, the second annual Keys to ship role in rallying our inProgress is part of the Na- dustry to help our veterans,” tional Auto Body Council’s said Nick Notte, President Recycled Rides program, a of the National Auto Body collision industry-wide col- Council. “These gifts of laboration to repair and do- transportation will make a nate vehicles. The number of significant impact in the vehicles in this year’s Keys lives of these service men to Progress is nearly double and women who have sacrithe number from Progres- ficed much for our country. Former Army Spc Jerold C. of Glen Burnie, MD.Photos sive’s program last year. This grand-scale generosity courtesy of Progressive Insurance Most of the vehicles from so many of our memfor this year’s Keys to bers truly exemplifies the professional- ganizations. NABC estimates close to Progress were provided ism and integrity of our collision $4 million worth of vehicles will be Recipient Jeffrey Z. and his family at the Buffalo, NY donaby Progressive, as well as industry.” donated in 2014. tion event. Photos courtesy of Progressive Insurance
Conviction of Saturn Ion Driver Thrown Out After 10 Years
As of Nov. 21, the GM compensa- tenced Anderson, agreed to throw tion fund had approved 35 death out the conviction. “She lives in a claims, each of which carries a min- small town, and her community imum payout of $1 million, and 44 thought she murdered someone that injury claims. A Texas judge has was held in high regard,” Anderoverturned a 7-year-old negligent son’s lawyer, Bob Hilliard, told homicide conviction against a Automotive News. “She was called woman whose boyfriend died when a murderer to her face.” In addition her Saturn Ion—now known to have to spending a decade thinking that had a defective ignition switch— she had killed her boyfriend, Ancrashed, her lawyer said. Candice derson, who was 21 at the time of Anderson was cleared 10 years and the crash, abandoned her ambitions nine days after the crash that killed of becoming a nurse because the 25-year-old Gene Mikale Erickson, felony conviction hindered her Wantwho towas Contribute to seat thiswhen Southwest Edition? in the passenger ability to apply for school and jobs, the Ion drove off a rural county road Hilliard said. and crashed into a tree. Anderson, “It’s overwhelming; it’s a range who police determined to be intoxi- of emotions,” Anderson told The New cated by illegal drugs, pleaded guilty York Times after the ruling. “I’m publisher@autobodynews.com to criminally negligent homicide and elated.” was sentenced to five years of probation. After your General Motors recalled Promote business with Promote your business with 2.6 million Ions, Chevrolet Cobalts anandexclusive article featuring an exclusive article featuring other small cars for the ignition-switch problem in February your products or services. your products or services. and March, the prosecutors who charged Anderson and the state trooper who investigated the crash conceded that the new evidence means she likely was not to blame. CALL: Joe Momber for details! Call for details! Van Zandt County District Judge Teresa Drum, who originally sen-
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