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Gauging What Lies Ahead for the Collision Industry in 2017 Based on the Events of 2016 by John Yoswick

As another new year begins, the collision industry can expect more big changes in terms of vehicle technology, repair requirements, judicial and regulatory actions, state and federal legislation, and insurer involvement in the claims process. Here’s a look at some of what’s in store for the coming 12 months. Changes in insurance industry regulation. Look for insurers to see a Trump presidency and Republicancontrolled Congress as an opportunity to scale back federal regulation of the insurance industry.

The National Association of Professional Insurance Agents (PIA), for example, has already urged that the Federal Insurance Office (FIO), established following the Great Reces-

sion, be scrapped. “With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that

Happy a NEW Year

VOL. 35 ISSUE 1 JANUARY 2017

they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.” But Matthew Josefowicz, president of a Boston-based insurance technology consulting firm, cautioned that such reductions in federal oversight of insurers could embolden some state attorneys general and insurance commissioners, resulting in insurers “dealing with aggressive state regulators.” That could be good news for colSee Ahead to 2017, Page 12

Gene Crozat, Founder of Santa Rosa-Based G&C Auto Body, Dies at 72 Paul Payne, The Press Democrat

His success allowed him to construct a lavish, hotel-like headquarters Gene Crozat, the colorful founder of a near Corby Avenue’s Auto Row. Over Santa Rosa-based auto body empire five decades, he expanded the family who waged long-running batbusiness to 11 locations in tles with state and local offifour counties with more than cials, including one over a 200 employees. parking ticket that spawned a More recently, he became popular philanthropic misknown for his philanthropic sion— feeding parking meters work, forming his own charfor holiday shoppers—died ity for needy families and November 22 at the age of 72. supporting Sonoma County Gene Crozat Children’s Village, a haven Crozat opened G&C Auto Body with a partner in 1972 and built it for foster children, which closed in into a recognized North Bay brand, in 2015. part through ubiquitous radio advertisAnd each year at Christmas, he ing featuring his own folksy pitches. See Gene Crozat, Page 8

CDI Issues New Labor Rate Survey Regulations and Anti-Steering Measures to Take Effect Jan 1, 2017 California Insurance Commissioner Dave Jones’ office issued new collision repair labor rate survey regulations on Dec. 1 designed to increase consumer protections when a damaged vehicle is repaired. Jones also clarified new antisteering measures in an effort to prevent consumers from being misled or having claims delayed. Under regulations approved for 2017, insurers in California are set to face stricter rules to discourage the “steering” of policyholders to less expensive shops through deceptive or misleading statements. The State office of Administrative Law approved the regulations and they become law on Jan. 1, 2017. Insurers have until March 12, 2017, to adhere. A statement posted on the CDI website, insurance.ca.gov, says the Department of Insurance has worked on regulations protecting consumers who have filed automobile collision repair claims with insurance companies. The regulations went through a formal public review process required by state law, which included taking and responding to public input on the

regulations at public workshops, public hearings, and through written public comments. The regulations were drafted and revised with input from consumers, insurers, and repair shops. “Insurers limit payments for auto collision repairs based on labor rates derived from insurer created labor rate surveys which did not fairly measure labor rates. Consumers are left having to pay the difference between the actual labor cost of the repair and what the insurer was willing to pay based on its labor rate survey. The new regulation sets forth voluntary standards for insurers to accurately and reliably survey auto body repair labor rates to ensure they are paying the reasonable and proper amount. “Accurate and reliable labor rate surveys ensure that consumers are not left paying out-of-pocket for collision repairs, which should be covered by insurance, or worse, forced to leave the vehicle in disrepair creating a potential safety concern," said Commissioner Jones. The regulations outlined an example of how the prevailing auto body See CDI Regulations, Page 10

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Contents Attanasio - College of Alameda Dominates

EB-CAA’s Model Truck Competition Again. . 24

Attanasio - New California Laws That Will

Impact Your Business. . . . . . . . . . . . . . . . . 38

Attanasio - Service King Celebrates Grand

Opening of Milpitas Repair Center . . . . . . . . 26

Attanasio - Veterans Day is Always Benevolence

Day at Mike’s Auto Body . . . . . . . . . . . . . . 28

Auto Body Hawaii Attains Gold Class® Status . . 52

CDI Issues New Labor Rate Survey Regulations and Anti-Steering Measures to Take Effect

CAPA Introduces CAPA 701 Mirror Standard . . 71 Celphy Flies His Drone to Michigan. . . . . . . . . . 4 Collision Repair Education Foundation and AkzoNobel Announce Winners of

Sustainability Challenge Grant. . . . . . . . . . . 63

Collision Repair Education Foundation Requests Year-End Product Donations, Safety Kit

Sponsorship. . . . . . . . . . . . . . . . . . . . . . . . 62

CRASH Network Launches “Insurer

Report Card” . . . . . . . . . . . . . . . . . . . . . . . 66

Crashmax Takes Home 2nd Consecutive

Sales Leader Award . . . . . . . . . . . . . . . . . . 71

Jan 1, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . 1

DOT Says All Electric Vehicles Need to

Police to Impound Uber’s Robot Cars . . . . . 19

FinishMaster Acquires Autobody Supply Co.,

Seminar to ASA Northwest . . . . . . . . . . . . . 27

Ford Patents Self-Driving Car with a Drone . . . . 4

Jeremy O’Neal Presents Service Advisor

O’Reilly Auto Parts to Pay $9.86M Settlement

in Hazardous Waste Case . . . . . . . . . . . . . . . 6

Make Noise . . . . . . . . . . . . . . . . . . . . . . . . 68 Adding Nine Locations in Ohio . . . . . . . . . . 68

GAAS, University of the Aftermarket

Foundation Unite . . . . . . . . . . . . . . . . . . . . 71

Oregon’s Measure 98 Got Trade Association

Gerber Collision & Glass Opens Repair

Spotlight on: Premier Auto Body in CA . . . . . . 11

Honda Awards $36,000 to Three Collision

COLUMNS

Hyundai Selects OEC for Collision Parts

Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Antonelli - How to Integrate Millennials Into the Workplace- From Hiring to Training

and Beyond . . . . . . . . . . . . . . . . . . . . . . . . 32

Attanasio - Former Metal Technician Lands

Dream Job with his Animal Art . . . . . . . . . . 40

Attanasio - My Marketing Rap for 2017. . . . . . 50 Attanasio - Vintage Color Studio Features

Award-Winning Roadster at 2016 SEMA

at PPG’s Booth. . . . . . . . . . . . . . . . . . . . . . 46

Indexof Advertisers

Consumer Watchdog Calls on San Francisco

Locations in FL. . . . . . . . . . . . . . . . . . . . . . 64

Schools Through Education Foundation . . . 71

Ordering and Fulfillment . . . . . . . . . . . . . . . 60

IGONC Learns CPR. . . . . . . . . . . . . . . . . . . . . 62 Larry Montanez Plays Devil’s Advocate

on NE Labor Rates . . . . . . . . . . . . . . . . . . . 66

Last-Minute Court Ruling Delays New

Overtime Rules. . . . . . . . . . . . . . . . . . . . . . 18

Michigan OKs Operation of Autonomous Vehicles on Public Roads, Previously

Only Testing Allowed . . . . . . . . . . . . . . . . . 52

Phillips - Hawaii Collision Center Works Hard

Mopar Road Ready Powered by Dodge Teen

Phillips - How to Compete with Consolidation

National Auto Body Council Awards Recognize

for Customers While Living in Paradise . . . . 20 and Outmaneuver Your Competitors in 2017 . 48

Yoswick - Gauging What Lies Ahead for the Collision Industry In 2017 Based on the

Events Of 2016 . . . . . . . . . . . . . . . . . . . . . . 1

Yoswick - Retro News: CIC Ends Parts Test-Fit Demonstrations, Feds Launch New

Insurance Oversight Agency . . . . . . . . . . . . 42 NATIONAL

A 2015 Profile of the Evolving North American

Safe-Driving Program Begins . . . . . . . . . . . 59 Individuals Who Exemplify Professionalism

and Integrity of Collision Industry . . . . . . . . 68

National Auto Body Council: Golfing Can

Help Change and Save Lives. . . . . . . . . . . . . 8

New Michigan Law Raises Stakes for Others . . 4

NJ, NY & PA Collision Repair Shops Face Labor Rate Reductions Due to

State Farm’s Rezoning . . . . . . . . . . . . . . . . 31

PartsTrader® and Fix Auto USA Agree on

Parts Sourcing and Ordering. . . . . . . . . . . . 64

Collision Repair Marketplace. . . . . . . . . . . . 44

Rearview Cameras Reduce Police-Reported

of the Border . . . . . . . . . . . . . . . . . . . . . . . 58

Risky Routes Could be Newest Car Insurance

Assistance, Identity Theft Protection . . . . . . 58

Sherwin-Williams Automotive Finishes 2017

with Volvo for Diagnostic Data . . . . . . . . . . 68

U.S. DOT Advances Rule on Connected

7145A and Alesta® BK08 20 Gloss. . . . . . . 62

U.S. House Subcommittees Hold Hearing

Sketchbattle Experiment Los Angeles . . . . . 14

WIN Announces 2017 Educational Conference

ASA Midwest Presents 2016 VISION South

ASA Provides Access to LegalShield for Legal Autologic Enters into Licensing Agreement

Axalta Coating Systems Introduces Voltatex®

BASF Announces Winner of 2016 Middlecott

Cam Miller Wins SEMA Battle of the Builders . . 60

Backing Crashes . . . . . . . . . . . . . . . . . . . . 56

Rate Factor. . . . . . . . . . . . . . . . . . . . . . . . . 22

First Quarter Training Schedule Announced. . 67

Vehicle Tech . . . . . . . . . . . . . . . . . . . . . . . . 10

on Connected Devices . . . . . . . . . . . . . . . . 64

Location. . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor and Copywriter: Deana Cacus Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Content/Social Media Specialist: Cass Heckel

AMH Canada, Ltd. . . . . . . . . . . . . . .19 Audi Wholesale Parts Dealers . . . . .62 Automotive ID . . . . . . . . . . . . . . . . . .22 Axalta Coating Systems . . . . . . . . . . .2 BMW Wholesale Parts Dealers . . . .65 Bob Smith BMW . . . . . . . . . . . . . . . .43 Bob Smith MINI . . . . . . . . . . . . . . . .43 Capitol Subaru . . . . . . . . . . . . . . . . .72 Certified Automotive Parts Association (CAPA) . . . . . . . . . . .33 ChemSpec USA, LLC. . . . . . . . . . . .12 Chrysler-Dodge-Jeep-Ram of Seattle . . . . . . . . . . . . . . . . . . .46 Classifieds . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . .24 Completes Plus . . . . . . . . . . . . . . . .26 Dave Smith Motors . . . . . . . . . . . . .35 Del Grande Dealer Group . . . . . .16-17 Denny Menholt Chevrolet . . . . . . . .39 Diamond Standard Parts . . . . . . . . .25 DJS Fabrications . . . . . . . . . . . . . . . .8 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .45 Eco Repair Systems of North America, LLC . . . . . . . . . . . .5 ECS Automotive Concepts . . . . . . .28 Elk Grove Toyota . . . . . . . . . . . . . . .44 Enterprise Rent-A-Car . . . . . . . . . . .48 Equalizer Industries, Inc. . . . . . . . . .31 First Auto Group . . . . . . . . . . . . . . . .40 Ford of Kirkland . . . . . . . . . . . . . . . .46 Ford Wholesale Parts Dealers . . . . .53 Galpin Motors . . . . . . . . . . . . . . . . .21 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . .23 GM Wholesale Parts Dealers . . . . . .59 Herkules Equipment Corporation . .20 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .36-37 Hyundai of Kirkland . . . . . . . . . . . . .46 Hyundai of Seattle . . . . . . . . . . . . . .46

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Hyundai Wholesale Parts Dealers . .56 Infratech Corporation . . . . . . . . . . . .11 Kearny Mesa Subaru-Hyundai . . . . .51 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .57 Killer Tools & Equipment . . . . . . . . .13 Lusid Technologies . . . . . . . . . . . . . .9 Lyle Pearson Auto Group . . . . . . . . . .6 Maita Subaru . . . . . . . . . . . . . . . . . .32 Mazda Wholesale Parts Dealers . . .67 McPeek Dodge of Anaheim . . . . . . .18 MINI Wholesale Parts Dealers . . . . .64 Mitsubishi Wholesale Parts Dealers . .54 MOPAR Wholesale Parts Dealers . .41 Moss Bros. Chrysler-Jeep-Dodge . .29 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .69 Northside Trucks & Equipment . . . . .4 Polyvance . . . . . . . . . . . . . . . . . . . . .30 Porsche Wholesale Parts Dealers . .60 ProLine Tool & Supply . . . . . . . . . . .10 Puente Hills Subaru . . . . . . . . . . . . .52 Riverside Kia . . . . . . . . . . . . . . . . . .50 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .14 Roy Robinson Subaru . . . . . . . . . . .34 SATA Dan-Am Company . . . . . . . . . .7 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . .26, 27 Shingle Springs Subaru . . . . . . . . . .47 Sierra Chevrolet-Honda-Subaru . . .55 Subaru Wholesale Parts Dealers . . .61 Tacoma Dodge-Chrysler-Jeep-Ram .15 The Bay Area Automotive Group . . .49 Toyota Wholesale Parts Dealers . . .66 U-POL US . . . . . . . . . . . . . . . . . . . . .38 Valley Auto Dismantlers Association, Inc. . . . . . . . . . . . . . .42 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .63 Volvo Wholesale Parts Dealers . . . .58

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 3

Ford Patents Self-Driving Car with a Drone

Ford has registered 1,442 patents this year, most among the largest automakers, including one for a self-driving car that has its own drone. Based on data compiled by the U.S. Patent and Trademark Office, Toyota was granted 1,368 so far this year, followed by General Motors at 1,131 and Honda at 1,011. Ford had 25% more patents than in the previous year. Raj Nair, executive vice president for product development and chief technology officer, attributed the increase to the push to develop more semi- and fully autonomous technologies as Ford and its competitors position themselves for shared-vehicle mobility. “We are living the innovation mindset in all parts of our business across the globe,” Nair said in a news release. “Our employees are delivering exciting new technologies for our customers at record levels. The Dearborn automaker was granted 1,700 more patents in other countries, bringing the total to more than 3,100 patents granted worldwide this year. Among some of the brighter ideas: ● Self-driving cars with drones. Tony Lockwood and Joe Stanek for an invention that equips autonomous vehicles with drones.

New Michigan Law Raises Stakes for Others

Michigan’s new autonomous vehicle law (see story this issue) has received endorsement from automakers who are gives Michigan the broadest set of regulations in the country. GM, which voiced strong support for the legislation, would not confirm if it now plans to test autonomous vehicles in Michigan. But Pam Fletcher, GM’s executive chief engineer of global electric and autonomous vehicles, said the law “positions Michigan very, very well.” Ford has said it plans to deploy a fully autonomous vehicle without a steering wheel or pedals in 2021 for ride-sharing or ride-hailing purposes. Ford intends to sell 100,000 or more a year of the vehicles. “Without this, we wouldn’t be able to enable it here in Michigan,” said Wayne Bahr, global director of Ford Motor Co.’s automotive safety office. “Our headquarters is here, research is here, autonomous vehicle team is here and having the ability to do our testing in a four season environment and to do it right next to where our engineers are is absolutely phenomenal.” GM also is working with partner Lyft Inc. to develop a fleet of self-driving Chevrolet Bolt EVs that it would use for ride-hailing. While it is testing

Celphy Flies His Drone to Michigan

The system deploys a drone from an autonomous vehicle to map the surrounding area beyond what vehicle sensors can see. Passengers can control the drone using the car’s infotainment or navigation system. Mercedes-Benz showed off a similar idea in September, using the drone for parcel delivery from a van. ● Electric wheelchair for a car. Ford’s eChair could make life easier for wheelchair users. Developed by engineers at Ford’s Lommel proving grounds in Belgium, Gunther Cuypers, Robin Celis, and David Longin, the lightweight electric-powered eChair can load itself into a car. ● Water fountain in car. There’s also the idea called On-the-Go H2O, which puts a water fountain next to the cupholders in the car. It was developed by Ford engineers Doug Martin and John Rollinger, using water from condensation that is then filtered and pumped into a faucet located inside the car to provide drinking water. Earlier this year, Ford also introduced the Carr-E, a multipurpose, electric personal transportation device developed by Germany-based engineer Killian Vas. The Carr-E can carry humans, packages and heavy objects. Through this week about 5,500 Ford employees submitted invention disclosures, of which more than 2,200 were from first-time inventors.

autonomous Bolts in California and Arizona now, it hopes to test with Lyft’s service within a couple of years on public roadways. Uber is already operating driverless vehicles (see cover story this issue.) “We believe an orderly and safe introduction of autonomous vehicles is a key to success for public acceptance and really maximizing the benefit of these vehicles,” Fletcher said, adding part of the legislation for deploying selfdriving ride-hailing services without a driver is “the way we think this kind of technology needs to roll out.” Michigan is one of eight states along with Washington, D.C., that have laws allowing testing of autonomous cars, according to the National Conference of State Legislatures. California, Florida and Nevada have laws that allow for the “operation” beyond testing. Arizona and Massachusetts’ governors have signed executive orders related to selfdriving vehicles. The bills were amended to allow tech companies such as Google Inc. to test and ultimately operate self-driving vehicles without drivers on state roadways.

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Oregon’s Measure 98 Got Trade Association Support

Oregon voters passed Measure 98, formally called The Oregon State Funding for Dropout Prevention and College Readiness Initiative, which requires the Legislature to appropriate at least $800 per high school student, per school year, for districts to create or expand college-level educational opportunities, career and technical education programs and drop-out prevention strategies. The funding comes from a portion of unallocated revenue accrued in the past 10 years of economic growth, according to Pete Zuckerman, a spokesman for the Yes on 98 campaign. The measure has the support of the Northwest Automotive Trades Association (NATA). “Measure 98 will give high school kids better access to collegelevel classes and offers opportunities in technical career-based programs,” said Cathi Webb, NATA executive director. “The measure dedicates $147 million each year toward developing those programs without additional taxation on Oregon residents.” Oregon has a 74 percent high school graduation rate, third-worst in the nation.

O’Reilly Auto Parts to Pay $9.86M Settlement in Hazardous Waste Case

The San Diego District Attorney’s Office, along with 50 other California District Attorneys offices, announced a $9.86 million settlement against Missouri-based O’Reilly Auto Parts as part of a civil environmental prosecution alleging the company mishandled hazardous waste. The December 1 settlement was approved by the Alameda County Superior Court and led by the District Attorneys of San Diego, Alameda, Yolo, Ventura, San Joaquin, San Francisco, Monterey, Riverside, and Solano counties. The judgment, agreed to by O’Reilly Auto Enterprises, LLC, O’Reilly Automotive, Inc., O’Reilly Automotive Stores, Inc., and Ozark Automotive Distributors, Inc., resolves allegations made in the civil enforcement lawsuit, which claimed that more than 525 O’Reilly stores throughout California unlawfully handled, transported and disposed of used oil, used oil filters, and various hazardous wastes and materials over a five-year period. Those hazardous wastes and materials included automotive fluids, alkaline batteries, electronic waste, aerosol cans and other toxic, ignitable and corrosive wastes. “Protecting our environment and safely handling dangerous waste is

paramount for all businesses in California,” San Diego District Attorney Bonnie Dumanis said. “Our environmental protection team did an outstanding job prosecuting this case and collaborating with other agencies to arrive at today’s multi-million dollar judgment.” Environmental inspectors, investigators and regulators conducted a series of undercover inspections in 2013 and 2014 of waste bins originating at O’Reilly stores, finding they had been routinely sending used oil, oil filters, and hazardous waste to landfills throughout California, which were not permitted to receive the waste in question. The investigation also revealed that O’Reilly was routinely and unlawfully transporting hazardous waste from its stores to its California distribution centers without required licenses. The statewide waste inspections revealed that 42 out of 43 O’Reilly stores and both O’Reilly distribution centers were in violation of state law. There are 41 O’Reilly stores in San Diego County. O’Reilly was cooperative throughout the investigation and quickly enhanced its policies and procedures to eliminate improper disposal of used oil, used oil filters and hazardous waste

products in California. Stores are required to properly manage used oil and automotive oil filters, and to retain their hazardous waste in segregated, labeled containers, to minimize the risk of exposure to employees and customers and to ensure that incompatible waste does not combine to cause dangerous chemical reactions. Hazardous waste produced by California O’Reilly stores through damage, spills and returns is being collected by state-registered haulers. It is taken to proper disposal facilities and properly documented and accounted for. Under the settlement, O’Reilly will be bound under the terms of a permanent injunction prohibiting similar future violations of law. O’Reilly must also pay $6 million in civil penalties and $500,000 to reimburse the costs of the investigation. An additional $1.51 million will fund supplemental environmental projects, furthering consumer protection and environmental enforcement in California. In addition, O’Reilly will fund hazardous waste minimization and enhanced compliance projects valued at $1.85 million of which San Diego County’s share will be $406,000 in civil penalties, $57,900 in costs, and $31,400 in other penalties and costs.

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Continued from Cover

Gene Crozat

paid young people to drop coins in expired Santa Rosa parking meters in an effort to prevent people from getting tickets. The “Meter Beater” program was born in 1991 when Crozat got a ticket while Christmas shopping. “He was a guy who wanted what’s fair and right,” said son Shawn Crozat, G&C’s chief operations officer. “If he felt he wasn’t being treated fairly, he wasn’t someone who would back down.” Crozat was recovering from minor heart surgery at a Burlingame hospital when he suffered an allergic reaction to medication and died on the afternoon of November 22, said daughter Jamie Crozat, the company’s regional office manager. It was his second heart operation since March. He had been expected to be released on the 23rd, she said. His death shocked and saddened friends and former associates. Anjana Utarid, former Children’s Village executive director, said Crozat was a top donor who gave tens of thousands of dollars. For three years straight, he footed the bill for all the kids and staff members to vacation at Disneyland, Utarid said. “He was amazingly generous,” she said. “He helped so many people.

It gives me chills. I was very lucky and blessed to know him.” Pete Bezeck, a retired Allstate Insurance executive and consultant to the California Auto Body Association, said Crozat was ahead of his time, offering his own rental cars to customers before anyone else did and setting up contracts with insurance companies to make getting repairs easier.“I always called Gene a futurist,” said Bezeck, who knew Crozat for 35 years. “He was always one or two steps ahead of anyone else in the industry.” Born in Pennsylvania in 1944, Eugene Crozat moved west with his parents and attended Santa Rosa High School before dropping out to join the Air Force. He learned auto body skills in the military and worked at a Merced repair shop before returning to Santa Rosa. “I came to this town with $1.40 and a pack of Pall Malls,” Crozat recalled in a 1996 story in The Press Democrat. After working for a local auto dealership, he opened his own shop with partner Leo Gassel, who retired three years later. The business name got shortened from Gassel and Crozat to G&C Auto Body. By 1994, Crozat was opening the doors to a new, 26,000-square-foot facility on Bellevue Avenue with Mission-style architecture, a bubbling

National Auto Body Council: Golfing Can Help Change and Save Lives

According to the National Auto Body Council (NABC), golfing can help change lives. “When you sign up to play or sponsor NABC’s annual Golf Fundraiser this coming January in Palm Springs, you are helping to change lives for hundreds of individuals every year, providing reliable transportation through Recycled Rides™ to improve their quality of life,” said NABC Chair Domenic Brusco. “Funds raised from NABC’s golf event also impact many more lives through our First Responder Emergency Extrication (FREE™) and Distracted Driving programs.” NABC’s Annual Golf Fundraiser, was held Wednesday, January 11, in Palm Springs, CA at the Tahquitz Creek Golf Resort. Hertz Corporation returned for the 7th year as Presenting Sponsor for the Fundraiser and also provided a vehicle for the Recycled

Rides presentation to a local Palm Springs family immediately following golf. Other industry leader sponsors included: AR Direct, Axalta Coating Systems, Caliber Collision, Dent Concepts, Enterprise Rent-a-Car, Insurance Auto Auctions, Partners Supply, PPG Automotive Refinish, and The Collision Centers of New York. “We appreciate the incredible support of so many individuals and businesses in the collision industry who have helped make this a sellout event for the past several years,” said Keith Egan, Co-Chair of NABC’s Fundraising Committee. “Another great day of fun and camaraderie while raising funds to support community initiatives that can change and save lives.” Future event sponsorship opportunities are available at www .NationalAutoBodyCouncil.org

8 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

fountain and plush furniture. To get to his office, visitors passed through a set of $30,000 oak doors. It was unlike most car repair places. “An auto body shop doesn’t have to have motorcycles parked out front, Penthouse fold-outs on the wall and guys trying to hide beer cans in the shop equipment,” Crozat said. “This can be a place you’d send your wife to pick up the car and feel sure she feels comfortable.” Crozat frequently clashed with government, which he regarded as mostly unresponsive to people’s needs. After an unyielding Santa Rosa traffic officer gave him a parking ticket moments after his time expired, he paid teenagers to circulate downtown during the holidays, pumping coins into meters and depriving the city of fines. The jab at officialdom became an annual tradition that cost Crozat a few thousand dollars each season but netted him valuable publicity. In other disputes, he fought PG&E over plans to cut down madrone trees on his Hood Mountain ranch and sued Farmers Insurance over claims it channeled business to other shops. More recently, he criticized a decision by local authorities to stop impounding cars

from unlicensed drivers and sued a competitor whom he said defamed him to insurance companies. Bezeck said “friction” was a regular part of Crozat’s business life but he never let it ruin a friendship.“He saw things that were wrong and he wanted to correct those wrongs,” Bezeck said. That passion extended to helping people. Crozat gave more than 100 free cars over the years to people in need. He started the Crozat Family Foundation in 2013 and has assisted more than 100 families with money for housing, food and transportation, his son, Shawn, said. He was driven in part by his own humble beginnings. “As a young kid, he had to scrape and work his butt off,” his son said. “No one ever gave him anything. He really just cared for people.” In addition to children Jamie and Shawn Crozat, he is survived by sons Ricky, Josh and Patrick, as well as his wife of 38 years, Teri. A funeral [occurred] 4 p.m. Dec. 2 at the Church of Jesus Christ of Latter Day Saints on Badger Road in Santa Rosa. We thank The Press Democrat for reprint permission.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 9

Continued from Cover

CDI Regulations

rate should be calculated. The example was as follows: Assume that in a specific Geographic Area, the applicable surveyed labor rates charged by the six (6) Responding Qualified Auto Body Repair Shops (as defined in Subdivision (d)(8)(A)3 of this section) that are included in the geographic area are $64, $65, $66, $66, $71 and $73. The rate at or below which a simple majority of surveyed shops charge is $66, since four of the six shops (the simple majority) charge a rate of $66 or less. Therefore, the prevailing rate in this example is $66. Over the past several years, the Department of Insurance has worked on regulations protecting consumers who have filed automobile collision repair claims with insurance companies. The regulations went through a formal public review process required by state law, which included taking and responding to public input on the regulations at public workshops, public hearings and through written public comments. The regulations were

drafted and revised with input from consumers, insurers and repair shops. With regard to the anti-steering measures, it is illegal for insurers to require repairs at a certain shop, or to suggest a customer go elsewhere once they’ve chosen a shop, except under specific conditions, such as if a referral is expressly requested by the claimant. An insurer may provide the claimant with specific non-deceptive information regarding the services and benefits available to the claimant, such as information about the repair warranties offered. “Consumers who suffer from collision damage should not be misled by insurance companies or forced to wait weeks for an inspection in order to steer them away from their chosen shop and into insurer-contracted repair shops,” Jones said in a statement, “just so the insurance company can save money at the expense of proper and safe repairs.” In California it becomes illegal for an insurer to communicate false or deceptive information to the claimant including: advising the claimant that an inspection of the vehicle will occur at a date that is later than required; making a statement to the claimant

that a chosen shop has a record of poor service; advising the claimant that their chosen shop has a record of poor repair quality based solely on a labor rate survey. The law also gives first- and third-party insurers a six-day limit for inspections, and the insurers can’t force a claimant to travel more than 15 miles in areas with populations of 100,000 or more. An insurer who seeks photos for a supplement must request them within three days. The Office of Administrative Law (OAL), which independently reviews all new regulations, approved the Commissioner’s regulation on Nov. 30th. The regulation goes into effect by operation of law on Jan. 1st, 2017. However, these newly adopted regulations are part of the Fair Claims Settlement Practices Regulations, which contain a delayed compliance date in order to give insurers who choose to use these voluntary regulations additional time to comply. The earliest compliance date is February 28th, 2017.

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U.S. DOT Advances Rule For Connected Vehicle Tech

Citing an enormous potential to reduce crashes on U.S. roadways, the U.S. Department of Transportation issued a proposed rule that would advance the deployment of connected vehicle technologies throughout the U.S. light vehicle fleet. The Notice of Proposed Rulemaking would enable vehicle-to-vehicle (V2V) communication technology on all new light-duty vehicles, enabling a multitude of new crashavoidance applications that, once fully deployed, could prevent hundreds of thousands of crashes every year by helping vehicles “talk” to each other. Said U.S. Transportation Secretary Anthony Foxx. “This long promised V2V rule is the next step in that progression. Once deployed, V2V will provide 360-degree situational awareness on the road and will help us enhance vehicle safety.” The proposed rule would require automakers to include V2V technologies in all new light-duty vehicles. The rule proposes requiring V2V devices to “speak the same language” through standardized messaging developed with industry.

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Spotlight on: Premier Auto Body in CA by David Minsky, Santa Maria Sun

If you take a look around Northern Santa Barbara and Southern San Luis Obispo counties in the coming weeks, you might notice that the Sun’s newspaper boxes are repainted, some with fresh yellow paint and some adorned with murals. The artistry is the work of various art students at Allan Hancock College, who’ll be profiled in a future issue of the Sun. But before the boxes make it to Hancock, they first get a twice-over at Premier Auto Body in Santa Maria, where they get sandeddown and receive a fresh coat of primer paint. When the Sun put in the call, owners Hector Paz Sr. and Jr. were happy to oblige. But as you’ve guessed, Premier isn’t in the business of sanding and priming newspaper boxes. Premier is a collision repair and auto body painting facility that the Paz family has developed into one of the most reputable in Santa Maria. Make no mistake, they’re not mechanics; their business is bodywork, detailing, and making your car look good again. Their motto is: “Where we meet our customers by accident,” which is fitting, because it’s where

auto insurance companies send their clients’ damaged automobiles. It’s a saying that the elder Paz’s wife came up with.

“It was probably the craziest thing in the world to start a business at that time,” the elder Paz told the Sun. “It made for a much more difficult startup.” In order to get clients, the Pazes first needed to establish a reputation within the community. How did they do it? Quality work, integrity, and superb customer service, for starters, according to the owners. “We treat customers with white gloves,” Paz Sr. said. “Also, the fact that it’s family-owned helps a lot, and not a corporate name.” From left to right, Hector Paz Jr. and Sr. opened Premier And perhaps their miliAuto Body in August 2009, right in the middle of the recession. Despite facing hard times, the father-son team tary backgrounds helped a little, too. The younger Paz built a reputation for quality work. Credit: David Minsky served 10 years in the U.S. The shop is considered “VIP,” or a Navy as a gas turbine systems technishop recommended by insurance com- cian, deploying five times and receivpanies to their policyholders. It’s also a ing a slew of awards and promotions direct repair facility. Achieving this sta- for his time in service, which his fatus is not easy, the elder Paz said. ther said prepared him well for the job The Paz family began its business of running a business. in August 2009, right in the middle of Paz Sr. himself was a U.S. Army the recession. Starting a business is second lieutenant. He earned a comrisky to begin with, but in the middle mission through the reserve officer of an economic crisis is entirely differ- training corps at Cal Poly. He reloent matter. cated from Denver to the Central

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Coast in 1982, receiving work at Vandenberg Air Force Base. He worked 28 years in the aerospace sector, where he primarily did financing— skills that translated into his current gig as owner of Premier. Now, insurance companies seek out the Paz family and son for their work. Premier Auto Body is a dedicated facility for GEICO, Enterprise, and Ameriprise insurance companies. “We grew from nothing, hoping someone would stop and see us for what we are,” Paz Sr. said. “The experience is a lot sweeter now because we have a lot more business.” Premier Auto Body is located at 211 E. Mill St. in Santa Maria. The shop is open Monday through Friday from 7:30 a.m. to 5:30 p.m. and closed on the weekends. For more information, call the shop at (805) 922-8700. We thank Santa Maria Sun for reprint permission.

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Continued from Cover

Ahead to 2017

lision repairers. Perhaps in 2017 more state insurance commissioners will follow the lead of their counterpart in Illinois, who this past year conducted a market conduct survey that lead USAA to end the use of caps on paint materials in that state. Montana’s Insurance Commissioner this past year issued a reminder to insurers that a lower estimate from a shop in the same market does not define market price. In California, Insurance Commissioner Dave Jones also just finalized new rules for how insurers conduct collision repair labor rate surveys in that state, which could well impact what shops there get paid in 2017. But he also said shops don’t have to wait for those new regulations to go into effect if they have a concern about what they are being paid by an insurer. “If you believe that you’re being presented with a reimbursement based on a labor rate survey that you suspect is not accurately capturing what the labor rate is in your market, you can complain to us now,” Jones said. “We have pursued those complaints. We ask the insurer [for] their labor rate survey. We take a look to see whether in fact it’s designed in a way to provide a fair result. In some cases, we have concluded that it hasn’t been, and have gotten corrections.” More automaker involvement in collision repair. Certainly the six automakers (General Motors, Nissan, Honda, Toyota, Fiat Chrysler) that issued position statements this past year on pre- and post-repair scanning of collision-damaged vehicles are not the last to do so. The industry likely will see more such statements in 2017, along with continued debate and friction between shops and insurers in terms of what those procedures mean for claims. While scanning is perhaps the most talked-about subject involving automakers and collision repairers, there was also plenty in 2016 to indicate more OEM involvement in the industry in others ways is coming in 2017. Vehicle telematics, for example, could increasingly be used by either automakers or insurers to get immediate notice of an accident and potential early influence on where that wrecked vehicle is taken for repairs.

“Our experience in Europe has shown that our partners have…been able to reduce cycle time and actually drive down the costs of claims, seeing a noticeable difference in their loss ratios, attributable to the use of telematics,” John Kramer, a former Nationwide Insurance executive now with Octo Telematics, said last year

CA Insurance Commisioner Dave Jones

on automakers’ use of data from the vehicle as part of the claims process. “When there is a crash, there is a ‘first notice of loss’ that is provided to the insurance company within minutes of the observance of the [vehicle] behavior.” Other automakers may begin certifying collision repair shops in 2017 as well. “We are now moving into the research stage and development of a certification program for all General Motors vehicles,” GM’s John Eck said last summer. Legal battles over parts, steering will continue. Several lawsuits in the industry reached conclusions this past year, but there are plenty of courtroom battles ahead in the coming year. Four lawsuits pitting Ford Motor Company against the non-OEM parts industry, for example, continue to inch along in federal courts. All of the suits involve Ford’s design patents on crash parts, which limit the production and sale of non-OEM versions of those patented parts. The Automotive Body Parts Association (ABPA), which represents non-OEM parts manufacturers and distributors, is asking a U.S. District Court to invalidate those patents. The ABPA argues that the parts are functional rather than ornamental, and that other courts have invalidated design patents (on items such as toner cartridges) when the design is found to be primarily functional. The other patent-related lawsuits involve Ford and a Texas-based aftermarket parts distributor New World

12 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

International and two affiliated companies; Ford alleges those companies sold non-OEM crash parts that infringe on the automaker’s design patents, while New World has also sued to have Ford’s design patents invalidated. Also still pending in various degrees of appeals are some of the two dozen lawsuits brought by shops around the country suing insurers for allegedly conspiring to manipulate shop labor rates and compensation. There’s been little in the court decisions in this past year that indicate much hope for the suits still surviving a year from now. Virtually all have been dismissed, though some of those dismissals are under appeal; some such appeals, however, were dismissed this past year because of failure by the shops’ attorneys to meet appeals court deadlines. Perhaps most troubling about the lawsuits is if additional court rulings in 2017 will echo those issued last year by U.S. District Court Judge Gregory Presnell in the suit brought by shops in Tennessee. In dismissing the suit, Judge Presnell ruled that he saw nothing wrong in one of the instances of steering cited in the lawsuit, one in

which State Farm “required the vehicle be taken to its DRP shop.” Presnell ruled, in fact, that “Tennessee law allows an insurer to require that an insured take his or her vehicle to a particular shop for repair.” He reached this conclusion by pointing to Tennessee’s Unfair Trade Practices and Unfair Claims Act, which states in part that if an insurer “requires a repairer to be used,” the insurer must establish standards to “assure the repairs are performed in a workmanlike manner.” “The necessary implication of this language is that insurers can legally require that their insured patronize a preferred repair shop,” Judge Presnell wrote. Similar rulings like that in any of the other lawsuits could change the face of “steering” by insurers in 2017 and moving forward.

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network bulletin (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 13

BASF Announces Winner of 2016 Middlecott Sketchbattle Experiment Los Angeles John Frye, a principal designer and digital modeling group leader for Honda R&D Americas, Inc., was named the winner of the Middlecott Sketchbattle

2016 Middlecott Sketchbattle Experiment Los Angeles winner, John Frye, receives his championship belt

Experiment™ Los Angeles, presented by BASF. Known as the “Fight Night of Design,” the Sketchbattle experiments, which originated in Detroit, are held to help identify emerging automotive design talent. The Los Angeles event, which marked the first time the Sketchbattle was held outside of Detroit, coincided with the Los Angeles Auto Show. Seventeen contestants competed in the auto-

motive sketch battle, which was held in a high pressure format in front of a live audience. “The Sketchbattle competitions not only emphasize the skill and creativity of future talent, they also offer an energizing platform to help build enthusiasm for the automotive design community,” said Paul Czornij, Head of Design for the BASF Color Excellence Group and one of the event judges. “As a leader in color design for the auto industry, we enjoy supporting such a creative and thrilling event.” The Sketchbattle competitions consist of three rounds, with each round themed differently. Approximately half

The crowd watches as design contestants engage in a sketch competition at the 2016 Middlecott Sketchbattle Los Angeles presented by BASF

of the contestants are eliminated in each round as their sketches are judged by a panel of automotive design experts. Judges for the LA event included chief judge Chris Benjamin, Head of Interior Design at Fiat Chrysler North America, Bryan Thompson of Bryan Thompson Design and Paul Czornij. Additional special guest judges for each round included Michael DiTullo, Chief of Design for Sound United / Polk Audio, The winning sketch by John Frye from the 2016 Middlecott Scott Robertson of Design Sketchbattle Experiment Los Angeles Press, and designer Camilo Pardo. For the final round, the four re- rod – adding future thinking to a reinmaining contestants were asked to in- terpretation of classic proportion,” said corporate BASF’s 2017 Color of the Frye, who also studied at the Art CenYear – Reflexion Nebula, a color that ter College of Design before starting transitions from blue to gray depend- his career. “Winning the Sketchbattle ing on the vantage point – into their was stunning and energizing for me. I sketches. The four finalists were Frye, feel the experience is an endorsement defending Sketchbattle champion Omar of the skills and encouragement from Gonzales, Rodrigo Galdino, a designer the teachers and supportive people in at Karma, and Chris Lah, a student at my life. As designers, we do not evolve in a vacuum, we owe a lot to those who the Art Center College of Design. “During the final round, I didn’t teach us and mold our creativity.” have a specific plan other than using the BASF blue on something like a hot

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Last-Minute Court Ruling Delays New Overtime Rules by Shira Schoenberg, The Republican

A federal judge’s ruling in Texas could affect the way Massachusetts businesses calculate overtime pay. U.S. District Court Judge Amos Mazzant last week issued an injunction blocking new Department of Labor regulations from going into effect as scheduled on Dec. 1. The regulations would have increased the number of workers who are eligible for overtime pay by an estimated 4 million workers nationwide. “We saw this as a necessary change in the spirit of what the overtime law has always been, so we’re definitely disappointed with the impact of this ruling,” said John Drinkwater, legislative director for the Massachusetts AFL-CIO. Business groups generally opposed the new rules. “The stay is a bit of good news for employers,” said Steve Clark, director of government affairs for the Massachusetts Restaurant Association. By law, a worker who works over 40 hours a week deserves overtime pay—but not if they are working in an executive, administrative or professional capacity. Under current regulations, a worker must be paid at least $23,660 a year to qualify for that exemption. The rule proposed by Democratic President Barack Obama’s administration would lift the salary threshold to $47,476 annually, or $913 a week. The goal is to make low-paid managers, such as shift managers in fast-food restaurants, eligible for overtime pay when they work more than 40 hours a week. Advocates for the rule change say it will help these low-income workers earn more money or not have to work excessive hours. Critics say it will hurt businesses, and business owners will simply change the way they pay workers. For example, instead of paying a salary, they might pay an employee an hourly wage that takes into account overtime pay. The White House estimates that approximately 83,000 Massachusetts workers would benefit from the rule change. Twenty states, led by Nevada, along with 50 business groups, sued to overturn the rule. They argued that the federal government was infringing on states’ rights, and the regulation is not

what Congress intended when it wrote the underlying law. Mazzant, on Nov. 22, ruled in favor of the plaintiffs and granted an injunction blocking the new rules from going into effect. The ruling throws the future of the law into doubt. Although the U.S. Department of Labor is likely to appeal, an appeal would probably not be decided before Republican presidentelect Donald Trump takes office. If the Trump administration agrees with the businesses, it can drop the appeal and let the Texas ruling stand. Trump could also more easily repeal the regulations, since they will not be in effect yet.

18 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Massachusetts business groups opposed the change, although they say the last-minute ruling creates some confusion. Chris Geehern, a spokesman for Associated Industries of Massachusetts, said his organization had argued that the extent of the change was too radical. “We thought the doubling of the minimum was a little excessive,” Geehern said. But Geehern said if companies already made changes—for example, giving pay raises or making employees hourly rather than salaried—it might be difficult to go back. “We’re not telling employers you should go forward with changes you made or don’t go forward,

it is really up to the best judgment of the employer to determine what kind of effect going back and putting all this stuff on hold is going have on employee morale,” Geehern said. Restaurants are among the businesses most likely to be affected, since many restaurants have low-level managers. Clark said he believes most restaurant workers would be paid the same amount of money but would be reclassified—for example, by being moved from salaried to hourly with overtime pay factored in. Some companies may instead choose to give pay raises or limit worker hours. Like Geehern, Clark said the restaurant association felt the doubling

of the wage standard was “very aggressive.” But he said the late change is likely to cause confusion. “A lot of employers already began having conversations with employees, so it’s hard to put the genie back in the bottle,” Clark said. Drinkwater, of the AFL-CIO, said he does not know what most employers will do. But he is disappointed that the salary threshold is now unlikely to change. Drinkwater said the rules were one way to address growing inequality, in which workers’ wages are not keeping pace with the cost of living. “Part of that has to do with hourly wages remaining fairly stagnant in a lot of areas of the economy,” Drinkwater said. “Another big piece of the puzzle is fewer workers are eligible for overtime pay and are essentially working a lot of uncompensated hours.” We thank the Republican for reprint permission.

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Consumer Watchdog Calls on San Francisco Police to Impound Uber’s Robot Cars Consumer Watchdog has called on San Francisco police to impound Uber’s robot cars operating without a permit on city streets and asked City Attorney Dennis Herrera to file criminal charges against Uber CEO Travis Kalanick, according to a release from Consumer Watchdog. California Motor Vehicle Code re-

quires a permit for testing autonomous vehicles in the state. Violating the Motor Vehicle Code can be a misdemeanor criminal offense, punishable by up to six months in jail. “Uber is essentially driving without a license and its CEO Kalanick should be treated like anyone else who does that,” said John M. Simp-

son, Consumer Watchdog’s Privacy Project Director. “Kalanick’s willful violation of the law requires prompt response to protect the public’s safety There have already been reports of Uber’s robot cars running red lights in San Francisco. Prosecutors must hold Uber’s executives responsible for their company’s outrageous actions.” Testing autonomous vehicles in California requires a permit from the Department of Motor Vehicles. Currently 20 companies have permits to test autonomous vehicles in the state, demonstrating that following the rules is no barrier to innovation, Consumer Watchdog said. Among the DMV requirements are that the test driver behind a steering wheel be licensed and trained to operate the vehicle and a company must show insurance coverage of $5 million. Reports of any crashes must be filed, as well as an annual “disengagement” report spelling out circumstances when the self-driving technology failed and the human driver took control. Important information about the state of the robot technology comes from the disengagement reports. For

instance, Google’s driverless car unit, now renamed Waymo, said its selfdriving technology failed 341 times in 425,000 miles – 272 times because the software couldn’t cope, turning over control to the test driver and 69 times when the driver decided to intervene for safety reasons. The next disengagement reports are due to be filed with the DMV Jan. 1, 2017. “Uber is threatening public safety and trying to avoid providing important information about its activities,” said Simpson. “Using public roads as your laboratory carries responsibilities. Uber is ignoring them and shamefully flouting important safety requirements. It must be stopped immediately, said the release.

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 19

Shop Strategies

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

Hawaii Collision Center Works Hard for Customers While Living in Paradise with Stacey Phillips

On the Hawaiian island of O’ahu, The Tony Group dealership and collision center were founded by Tony Masamitsu more than 30 years ago. The family-operated company is currently owned by his son Stan and employs close to 400 at the dealership and 17 at the collision repair shop. The Tony Group Autoplex includes four stores: Honda, Nissan,

Located in Waipahu, Hawaii, The Tony Group Collision Center was founded more than 30 years ago

Hyundai and Volkswagen, as well as a full-service car wash. Autobody News recently spoke to Sabrina Dela Rama, manager of Tony Group Collision Center, about the body shop, which is located in Waipahu.

the ‘90s. We used to be able to fix cars and still make a small profit; now it’s fixing cars to break even. We have found that the insurance company’s DRP has made it difficult to do a correct repair as they question every procedure. We decided to get away from DRP relationships, but are currently part of two because they are very supportive of corrective repairs and they are fair when it comes to rates. Neither use aftermarket parts and one doesn’t even use recycled parts. First Insurance Hawaii is one of the best ones I like working with; the staff is awesomely fair. Although we live in Paradise, we have the same issues with insurance companies suppressing rates by an invisible survey they project they have and limiting payments, the strong push of non-crash-tested aftermarket parts and steering. We want to change legislation and hopefully with all the media and support of the industry, our council members will see what the big billion-dollar companies are doing to hurt the consumers.

What is your role at the shop Q: and what is it like operating in Are you part of any associaQ: tions? Hawaii? I am the collision center manI am the new 2017 president of A: ager and what can I say but that A: the Automotive Paint and Body it’s paradise! However, it’s very exAssociation of Hawaii (ABPAH),

pensive to live in Hawaii. Our cost of living is the highest in the nation but our pay is below average in the state. Our rates are determined by the billion-dollar insurance companies that control what and how much they will pay for a repair and the rates. Many times, parts are on back order and they could take five to seven days to arrive. Sometimes, the humidity plays a factor in the curing of the paint. The land and space in Hawaii are also very expensive so we are always fighting for room or space, but mostly we find it challenging to try and survive in this insurance-run business.

Is the body shop part of any Q: DRP programs? Being on a DRP program nowaA: days isn’t what it used to be in

which is the oldest active association in Hawaii. The mission of ABPAH is to provide our members with the tools and education necessary to attain a high level of expertise, allowing the

Sabrina Dela Rama, manager of Tony Group Collision Center, said the body shop prides itself on following the manufacturers’ procedures when repairing every vehicle

growth and prosperity of our members. We are looking into legislation and hopefully, we can start to move the industry on the right path.

20 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

ABPAH recently received a certificate from Senator Mike Gabbard in December for being ‘…dedicated to educating their members, providing professional results, and getting their customers back on the road in vehicles we can be proud of.’

How do you stay current with Q: new technology and procedures? It’s a combination of researchA: ing, talking to our peers and other shops, manufacturers, ALLDATA

and I-CAR. Billy Walkowiak and Larry Montanez have really helped educate me about this industry. Tim Ronak from AkzoNobel helps us with our goals and we have an upcoming seminar planned in Florida. Richard Doyle, the fix operations director for the Tony Group Autoplex who built our collision center, the carwash and the Hyundai store in Hawaii, and I fly out two times a year to attend classes and

seminars for collision education. We learn what other dealership body shops are faced with and what challenges

Tony Group Collison is a Honda Pro-First shop, and is also certified by Nissan, Hyundai and Chrysler

they have overcome. There’s so much learning to do and it seems to be an ongoing process.

Congratulations on the recent Q: awards the Tony Group has received for consumer satisfaction. What

is the importance of excellent customer service? See Hawaii Collision, Page 27

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 21

Risky Routes Could be Newest Car Insurance Rate Factor by Alex Glenn, NerdWallet, USA Today

Putting a price tag on car insurance has always been something of a guessing game. Insurers can’t monitor your driving 24/7, so they set rates using predictive factors such as your age and crash history. But some insurers have drawn up plans for analyzing risk that may change how they charge for auto insurance. Allstate recently became the latest insurer to file a patent application for a new pricing system that charges customers based on the riskiness of each trip — joining competitors such as State Farm and Travelers Insurance. Using sophisticated tracking technology, in the future, companies could customize drivers’ rates for each trip according to the roads they choose, the weather conditions and the number of passengers, among other factors. Drivers could check the recommended “cheapest”—aka less risky—route via smartphone or other device. While it remains to be seen what specific technology emerges, companies are signaling how auto insurance pricing might evolve with these patent applications.

Choosing which road to take will be-

come a bigger decision For most drivers, getting from point A to point B doesn’t take much thought. But under trip-based insurance, you’d have to navigate more carefully—or potentially pay more for the outing. Allstate’s patent application proposes assigning “risk values” to stretches of road based on information such as accident patterns, geographic traits, weather and more. For example, turning left at an intersection could be deemed riskier than going straight based on the accident history at that intersection. Road segments with higher risk values would carry higher insurance costs. The goal is to “promote and reward risk mitigation” among customers, according to the patent. In essence, you could end up planning trips based on how much you’re willing to spend. Instead of buying car insurance in six- or 12-month policies, you’d buy “risk units” and ration them however you see fit. For instance, the fastest way to your destination may be riskier, and pricier, than slower routes your insurer recommends. You’d have to decide whether the convenience of a shorter drive is worth burning through your risk

units and needing to buy more. Travelers Insurance describes a similar system in a 2014 patent application, proposing “risk zones” — areas rich in accidents, police activity, insurance losses and other issues—that drivers might face surcharges for using. In its 2015 patent application for trip-based insurance, State Farm outlines a plan for tracking a variety of factors, including the length of trips, time of day and the quality of your driving (such as hard braking and tailgating), all of which would determine your insurance price.

The end of traditional insurance premiums? Buying car insurance in “risk units” would benefit drivers who can stretch their units over long periods. Lowmileage motorists, for example, would make ideal candidates, says Jared Smollik, actuarial director at Verisk Insurance Solutions, an analyst group. Another possibility, Smollik says, is that insurers will still sell traditional policies and offer trip-based policies to incentivize better driving. Insurers might offer discounts to customers who consistently choose safe routes, he says, without penalizing drivers who don’t

fare as well. Smollik acknowledges it may be years before vehicles have the technology to support this new system. But he points out that current usage-based programs already can give drivers a rough sense for what a trip-based policy might be like. Several companies already offer such programs, which track behaviors such as speeding and hard braking to refine drivers’ rates. Customers who test the waters with usage-based insurance may realize its benefits, he says, and find it easier to transition to trip-based pricing. The bigger threat to implementing trip-based insurance is the challenge of collecting enough information about roads to accurately rate their risk level, as Allstate is considering. People have explored assigning risk scores to roads before, Smollik adds, but it’s a long and impractical process because of the amount of observation needed. “It’s not an issue of technology,” he says, “but one of data.” We thank USA Today for reprint permission.

www.autobodynews.com C

22 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 23

College of Alameda Dominates EB-CAA’s Model Truck Competition Again by Ed Attanasio

It is very hard for a team to win anything three years in a row. Just ask the 2002 LA Lakers, the last pro franchise to achieve it. To be at the highest level for three straight years is not easy, but the College of Alameda’s automotive tech department did exactly that by capturing first place for the third time in succession. This feat is even more impressive when you discover that the school also took the #1 runners-up award in this competition for the second straight year as well. It all took place at the California Autobody Associations’ East Bay Chapter’s (EB-CAA) 18th Annual and Final Toys for Tots/Model Truck Competition, where 130 people came out to support auto tech students from five Bay Area schools.

The College of Alameda wowed the crowd was this show-stealing extra long hauler, with a dune buggy-style car onboard

ing trucks,” Silva said. “These students are so imaginative and their work on these trucks has been amazing every

Another big part of the evening cited about these projects and winning was when the EB-CAA presented the makes it even better,” he said. “We alfive competing educational institutions ways bring eight students and two inmoney for their auto repair structors to the Toys for Tots/Model programs, derived from the Truck Competition every year and it’s sales of each customized truck always a fun evening. Watching as the and other fundraising events students work as a team to create someheld all year long. This year, thing impressive is a big deal for us and The College of Alameda, for the school.” Contra Costa College, TriValley ROP, Mission Valley ROP and Eden Area ROP all received $1,000 checks. The highlight of the evening The College of Alameda swept both first and second place awards at the 18th Annual and Final Toys for Tots/Model is always seeing the students Truck Competition where 130 people came out to support and networking with them, acContra Costa College took third place with auto tech students from five Bay Area schools this fish tank truck, with working lights cording to Silva. “We love foand a live fish year, so we are confident that we can cusing on the students, because they are find something new for them to use our technicians of tomorrow. It is always Peter Ha, the evening paint and retheir skills and creativity on whatever exhilarating to see the auto tech students finish instructor at College of Alameda we find.” competing against the other schools. and his classes work year-round to The room was filled with excite- They don’t get class credit for these build winning toy trucks, he explained. ment and enthusiasm as the student’s trucks, so they have to work on them ei“We go to Salvation Army stores, hobby truck creations were displayed. The ther before or after class, so it means a stores and even flea markets to find attendees all brought toys and two lot to them and for us as well.” things like wheels and other items for Marines were in attendance to collect Bill Andrews, the head instructor these trucks. The truck my class did this the toys as the chapter went over-the- at College of Alameda sees great value year was almost completely fabricated top to create a holiday atmosphere in in competitions like these and looks forfrom scratch, but we did retain some of the room. ward to its new reincarnation hopefully the original truck and it really came out well.” Mike Govette from FinishMaster next year. “The students really get exin Concord, CA was one of the initial organizers of this event and was pleased to be there as a judge this year. “A somewhat poignant realization by one of my fellow judges was Gigi Walker when she mentioned that the very first award-winning fish tank with live fish was done by Jeff Picolla of Walker’s Paints, Materials & Supplies Auto Body 18 years ago,” Govette said.

This year, the College of Alameda captured first in this competition again, with a truck they called “Heavy Hauler”– a white long hauler truck. In addition, the college also won second place with their wine truck. Contra Costa College took third place and the coveted People’s Choice award for their fish tank truck. Trucks submitted by Tri-Valley ROP, Mission Valley and Eden Area ROP didn’t finish in the top three, eliciting the chant of “Wait until next year!” Marking its 18th year, this will likely be the last competition of its type, primarily be- All of the five auto tech schools in the competition received cause the EB-CAA can no $1,000 checks from the EB-CAA, including The College of longer find Nylint model Alameda, Contra Costa College, Tri-Valley ROP, Mission trucks for its event. But, Chap- Valley ROP and Eden Area ROP ter President Tiffany Silva isn’t easily “It seems the event was bookended by discouraged, so she is looking for an alfish tanks!” The other judges for the ternative to the trucks. “Currently, the evening included Ron Arth, of George board is developing ideas to create a V. Arth and Son and Kirk Kapfenstein fundraising event similar to customizof Regal Collision in Vallejo, CA.

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Service King Celebrates Grand Opening of Milpitas Repair Center by Ed Attanasio

Service King Collision Repair Centers, together with automotive leaders from across Northern California, recently celebrated the grand opening of their new Milpitas location, which is one of the largest and most advanced

Market vice president for Northern California, was happy to unveil this facility officially. The shop opened for business in late August before the company publicly celebrated the grand opening in early November. Today, it boasts the capacity to repair more than 600 vehicles per month, which would

The grand opening at Service King’s new 70,000 square foot shop in Milpitas, CA was attended by more than 200 people

collision repair facilities in the state. The event was attended by local residents and leaders as Service King of Milpitas officially commemorated the completion of its 70,000 square foot “mega shop.” Wesley McAlester, Service King

make it the largest producer in the Bay Area, hands down. “The entire Service King family is proud of this repair center, and our grand opening was a special celebration as we took our first step in serving the entire Milpitas community with

superior collision repair service,” McAlester said. “We look forward to growing alongside our new neighbors now and well into the future.” This mammoth repair center is not only one of the largest of its kind in the state, but the City of Milpitas recently recognized Service King with its annual Beautification Award. Inside, the facility features an array of first-class amenities including an upscale waiting area, water features, and an open concept modern design. Meanwhile, Service King teammates are treated to a best-in-class workplace, including an oversized break room featuring stainless steel appliances, a luxurious locker room and the industry’s cutting-edge repair equipment. With a live band and tours of the new facility, Service King pulled out all the stops to make the grand opening a memorable event, McAlester said. “This was undoubtedly the most elaborate grand opening that we’ve ever done. The Mayor of Milpitas, Jose Esteves, was here and we received amazing feedback from local leaders and members of the commu-

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McAlester said. “The size of our crew right now in Milpitas is appropriate for the amount of work we’re currently doing, so we’re going to build our team as the demand grows. But we are finding out that the demand is growing quickly, which of course, is a great thing.”

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nity as well as many of our insurance partners and vendors who attended.” By opening in August, Service King was able to iron out all of the kinks before hosting its grand opening three months later. “Now that we have been open for a short time, things are going really well and we anticipate that this location will be carrying its own weight within a short time,”

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With two Service King shops in San Jose and others in Santa Clara, Fremont and Mountain View, the company is blanketing the Bay Area, be-

Designed to repair more than 600 vehicles monthly, this new location has already attracted a wide range of work from Milpitas and the rest of Silicon Valley

cause it is a growing area and the home of many high-tech companies, for example. “Santa Clara is one of our top

producers right now and I predict that Milpitas will be able to surpass their numbers, but it will take some time,” McAlester said. “We do anticipate that our Milpitas location will be the best location we have in this market. It may take a couple of years for the location to mature and reach its numbers, but we’re expecting big things for sure.” Northern California has been very good to Service King and McAlester hopes that it will continue in Milpitas, a city of approximately 67,000 people with a median income of roughly $85,000. After working for a long time to get its Milpitas location in operation, the company is happy to be up and running at last. “We had Milpitas on our radar for quite some time,” McAlester said. “But getting things put together,

including permits and all of the other things that have to happen before opening a shop require time. That is why it’s so satisfying to see this great shop and the incredible response we’re getting from everyone.” Service King traces its roots back to Dallas, TX and founder Eddie Lennox, who opened the very first Service King in 1976, and today, Service King operates 305 locations in 23 states across the U.S.

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Jeremy O’Neal Presents Service Advisor Seminar to ASA Northwest by Chasidy Rae Sisk

On October 28-29, Jeremy O’Neal from Advisorfix presented a seminar on “Transformational Service Advisors” to ASA Northwest members in Spokane, WA. Identifying the service advisor as the one who holds the key to success or failure for an automotive business, this course strove to help service advisors reach the next level of understanding in their vital role. David from Jerry’s Auto Repair in Pullman, WA, noted, “The class has given me the confidence to get the sale and move past the first ‘no.’ My skills have improved.” Herb from Autocraft Spokane in the Spokane Valley added, “I’ve been writing service for 23 years, and this class really helped me better understand today’s customer and polished my skills.” O’Neal’s seminar focused on understanding today’s consumer, building a database from leads, lead conversion fundamentals, delivering a professional sales presentation, five key traits of a trusted service advisor, how to get past the first “no” and more. Those who missed the October session will have another opportunity when O’Neal presents in Lakewood, WA on February 1011, 2017. Details and registration information is available at www.north west.com. Continued from Page 20

Hawaii Collision

Customer service is very imA: portant as they are who we work for. We work hard to ensure a

safe and corrective repair, to follow manufacturers’ procedures and make sure every customer has a fair dealing with us and their carrier or the insurer.

Tony Group Collison is a Honda ProFirst shop, Nissan, Hyundai, Chrysler certified collision center and I-CAR Gold class. We follow strict manufacturer procedures and we believe that customers’ safety is our NUMBER 1 priority. For more information, visit http:// www.tonygroupautoplex.com/ or email Sabrina Dela Rama, manager of Tony Group Collision Center, sdelarama@ tonygroup.com.

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 27

Veterans Day is Always Benevolence Day at Mike’s Auto Body by Ed Attanasio

Mike’s Auto Body presented a 2013 Ford Focus Titanium to Air Force Senior Airman Scott Woolridge from Travis Air Force Base and his family as part of their annual Benevolence presentation on Veterans Day at the company’s Fairfield location.

compelling. “My wife Jamie and I have an 11-month old son named Jase who was born 12 December 2015. I am currently an Aerial Porter in the 821 Contingency Response Support Squadron and serve under Lt. Col Gregory Cyrus. The 821 CRSS is a rapid mobility squadron which is capable of deploying anywhere in the

A 2013 Ford Focus Titanium went to Air Force Senior Airman Scott Woolridge from Travis Air Force Base and his family as part of their annual Benevolence presentation on Veterans Day, November 11 at the company’s Fairfield location

Mike’s has been in business for 44 years and participating in the Benevolence Program for 16 years of presenting cars to deserving families. The company’s third Benevolence presentation of 2016 is scheduled for December 14 at their Antioch ADAC location, where they will give away five more vehicles, bringing the total to 66 cars since 2000. Woolridge is a deserving recipient of this year’s Veterans Day Benevolence vehicle, according to Mike’s Auto Body’s Sal Contreras, who emcees every car giveaway for the company. “Senior Airman Woolridge is truly an inspirational young man,” Contreras said. “He is reenlisting again and is working toward a career in the Air Force. Listening to Lt. Col Gregory Cyrus, Senior Airman Wooldridge is a hero who saved a small village from burning down while deployed in Ethiopia by starting a water bucket chain bringing buckets of water from the river to put out the fires and pulling children out of the burning village.” The application letter the Vintage Valley Blue Star Moms selected and sent to Mike’s Auto Body earlier this year from Senior Airman Scott Wooldridge was both emotional and

world within 12 hours to set up a fully-operational airfield. My family will benefit greatly from the Benevolence program, as we do not currently own a vehicle of our own. “Having our own vehicle will make getting my son to and from his doctor’s appointments much easier as well as being able to pick up groceries and other items for our household. My father-in-law has generously lent us one of his cars, but we will not be able to keep it permanently. I’d like to

The Rose family has now given away a grand total of 61 vehicles in 16 years

thank you for considering my family for the Benevolence Program. It has helped out many families and I hope mine will be fortunate enough to be a part of it. My wife and I volunteer at the homeless shelter and soup kitchen. Having a car would give us the opportunity to help out more and to give back to the community while not hav-

28 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

ing to worry about public transportation,” the letter read. “Presenting the car to the Woolridge family was such an honor,” Contreras said. “It is an ideal way to thank him for his service and the sacrifices he makes in working towards keeping our country safe. It was also exciting to have two former recipients and their families walk with us and the Vintage Valley Blue Star Moms in the parade and attend the presentation.” The Mike’s Auto Body Benevolence program is a “community giveback 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’s Auto Body donate their time and skills to turn these cars into pristine “new” used vehicles. This year’s vehicle was donated by GEICO Insurance, and Woolridge received one full year of vehicle insurance donated by Mike’s Auto Body as well. Owner Mike Rose still gets excited when he sees a car going to a

deserving family, he said. “Every time we do this, I get a thrill, and usually some tears are involved. We feel honored to be able to do this and we will continue to do it as long as we can.”

The crew at Mike's Auto Body donated their time to refurbish the Benevolence car

The company’s Marketing and Sales Manager Dane Dearlove explained why Mike’s Auto Body has a Benevolence Program, and the value it brings to the entire community. “The Benevolence Program is about who we are as a company,” Dearlove said. “It is our culture. It is in our DNA. It starts at the top with the Rose family, and is a part of every employees understanding of what our team is about, and what they are a part of.” See Veterans Day, Page 60

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 29

30 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

NJ, NY & PA Collision Repair Shops Face Labor Rate Reductions Due to State Farm’s Rezoning ing a flat rate of $28 that further reduces the policyholder/claimant’s reIn July 2015, State Farm announced covery. We are receiving complaints its intention to make “market refine- that with these changes often come the ments” by refining market boundaries refusal by State Farm adjusters to neused to determine prevailing compet- gotiate the claims in good faith with itive prices to serve our customers and shops of varying capabilities and exto better align with government-defined pertise.” market areas,” State Farm Spokesman State Farm’s redefinition of parts of Justin Tomczak stated at the time. NJ, NY and PA was based on Census State Farm’s changed Bureau Core-Based Statistiapproach in determining precal Areas (CBSA), and Tomvailing competitive prices in czak confirmed that State certain metropolitan areas has Farm had ceased using labor resulted in decreased labor rate surveys to deduce the rates in certain parts of NJ and market rate in these areas NY with some collision repair with calculations now being facilities receiving $15–16 based on analysis of the cost Ed Kizenberger less per hour. of vehicle repairs for insurfile photo Ed Kizenberger, Execance work, excluding DRP utive Director of the Auto Body repairs. These four divisions include Craftsman’s Guild (ABCG) and the the Dutchess/Putnam Division, NasLong Island Auto Body Repairmen’s sau/ Suffolk Division, Newark NJ and Association (LIABRA), noted, “In our PA Division, and NYC, Jersey City current market area, State Farm esti- and White Plains Division. mates show a labor rate reduction Areas of Long Island and NYC from $65 to $49 per hour. These esti- have reported decreases of $15–16 in mates also show the change from hourly labor rates; this loss must be using a paint cost estimating system passed on to the customer, considered approved by NY State to now utiliz- a loss by the shop, or tested in court by Chasidy Rae Sisk

battles as a reasonable cost. Other impacted divisions have yet to report any significant changes in labor rates. According to Kizenberger, “We realize that labor rates are not governed or set by the state; however, State Farm has conducted their own survey for many years which resulted in a rate still far below an acceptable rate, but manageable, on average vehicles. The prior rates they were paying their policyholders was at least a starting point. With the new rate structure instituted by State Farm, they admit to ignoring their own survey results and moreover, to my knowledge, have not notified their policyholders of the rate changes. Consumers in NYS do not have to get their vehicles repaired to receive payment from their insurance companies, so a policyholder filing a claim after the changes is getting a smaller recovery because State Farm has chosen to ignore their own survey findings.” Angelo Palakis of Dale-Way Auto Body Center, in the Riverdale area of the Bronx, said, “As of Dec. 5th, State Farm dropped the body labor rates in our area from $65.00 to $51.00, the

frame labor rates from $75.00 to $52.00 and the paint materials from accepting Mitchell paint material calculator to paying $29.00 per paint hour. We were not aware of this till they appraised a car later that week. “About two years ago State Farm brought up the body labor rate from $55.00 to $60.00 and approximately two months after that they brought it up to $65.00 and frame $75.00, before these increases there labor rate since probably 2005 was body $55.00 and frame $60.00. State Farm has been paying paint materials using Mitchell calculator well before 2005. We haven’t seen labor rates and materials allowances this low from State Farm in more than 10 years which is unacceptable. “We are currently talking with the Auto Body Associations in our area to see what form of action we can take against these reductions from State Farm. One of their appraisers told me that they are no longer conducting their annual labor rate survey but instead are averaging out the labor rates that other insurers pay.” See NE Labor Rates, Page 55

www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 31

Shop Strategies

Victoria Antonelli is a freelance writer and editor for the automotive industry. She has a journalism degree from University of Rhode Island. She can be reached at vantonelli.autobodynews@gmail.com.

How to Integrate Millennials Into the Workplace- From Hiring to Training and Beyond with Victoria Antonelli

Mike Lanza, manager of business consulting services at Sherwin-Williams Automotive Finishes, led several Society of Collision Repair Specialist (SCRS) seminars during SEMA 2016. With over 30 years of industry experience, Lanza was able to give attendees detailed insight on what millennials think, how they work, and why it matters to body shops. He started his presentation off with a staggering statistic: in 2025, millennials—those born between 1980 and 2000—will make up 75 percent of the workforce. Therefore, body shops (or any businesses for that matter) that want to remain productive in less than 10 years time need to learn how to smoothly integrate this new generation into their work environment.

According to Lanza’s PowerPoint presentation: ● Millennials consider innovation a key purpose of business- just as important as profit ● 78 percent of millennials feel innovation is essential for business growth

● Higher paying jobs ● Apprentice programs

The General Social Survey, administered by the University of Chicago 40 years ago and continuing today, found that millennials identify with working class positions more than any other age group. In 2014, some 60 percent of millennials considered themselves to be working class. Half of all millennials with a bachelor’s degree in 2014 identified as working or lower class as compared to just 26 percent of their counterparts in 1974.

While money has been the driving force of motivation in the past, millennials operate best under different incentives: ● 95 percent of millennials work harder when contributing to a company mission ● 89 percent of millennials desire fun & social work environments ● Only 15 percent of millennials think a high paying career is important

Lanza said he believes it is important for body shops to choose a strong mis-

Credit: Mike Lanza, Sherwin-Williams Automotive Finishes, SCRS SEMA

● 71 percent believe business innovation improves society ● 66 percent say innovation is a critical requirement in choosing a potential employer ● 62 percent describe themselves as innovative

Lanza explained to attendees that more and more millennials are foregoing college for blue collar jobs, due to the following influences: ● Skyrocketing tuition costs ● Saturated career fields ● Insourced/outsourced ● More opportunity within blue collar sector

sion and culture over salary if they want to engage and retain millennials for the long haul.

What do millennials want? 1. The ever-increasing value of intangible benefitsThey know what they’re worth & they’re going to get it 2. Flexible schedule/balanceDon’t want to be tied to a 9-5 job 3. Autonomy - Don’t want to be micromanaged / want to be involved 4. Transparency - Don’t want to “go with the flow;” want to be “in the know” Lanza provided the following 11 tips

32 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Credit: Mike Lanza, Sherwin-Williams Automotive Finishes, SCRS SEMA

for managing millennials: 1. Provide structure Employers can provide structure to millennials by ensuring that reports have monthly due dates, jobs have fairly regular hours, certain activities are scheduled every day, meetings have agendas

and minutes, goals are clearly stated and progress is assessed, and assignments are defined as success factors. 2. Provide leadership and guidance Millennials want to look up to you, learn See Integrate Millennials, Page 34

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Continued from Page 32

Integrate Millennials

from you, and receive daily feedback from you. They want “in” on the whole picture and to know the scoop. Plan to spend a lot of time teaching and coaching and be aware of this commitment to millennials when you hire them.

change Boring is bad—they seek ever-changing tasks within their work. What’s happening next is their mantra. Don’t bore them, ignore them, or trivialize their contribution.

7. Multi-taskers on a scale you’ve never seen

The electronic capabilities of these employees are amazing. Use their abilities in social media.

9. Affinity for networking Millennials like to network around the world electronically. They are able to post resumes electronically as well as on web job boards. They are loyal, but

3. Encourage their self-assuredness Millennials are ready to take on the world. Their parents told them they can do it—they can. Don’t squash them or contain them.

11. Provide a fun, employee-centered workplace Millennials want to enjoy their work, enjoy their workplace, and make friends in their workplace. Help your long-term employees make room for the millennials. Next, Lanza discussed the best ways for employers to find and retain employees who perform with excellence, have a good skill set, and who are also reliable and trainable. He said employers need to mentor and motivate their new hires, as well as seasoned employees, by setting standards and managing them in the most profitable way.

4. Comfortable working with teams They are used to working in groups and teams in contrast to the “Lone Ranger” attitude of earlier generations. Millennials actually believe a team can accomplish more and better.

5. Listen to the millennial Millennial employees are use to loving parents who have scheduled their lives around their children’s activities and events. These young adults have ideas and opinions, and don’t take kindly to having their thoughts ignored. 6. They are up for the challenge and

lives with multiple activities. They may play on sports teams, walk for multiple causes, and spend lots of time with family and friends.

Millennial stereotypes explained. Credit: Mike Lanza, Sherwin-Williams Automotive Finishes, SCRS SEMA

Multiple tasks don’t phase them. Many will talk on the phone while answering emails and multiple instant messages; this is a way of life. 8. Electronic literacy

they keep they always keep their options open.

10. Life-work balanced workplace Millennials are use to cramming their

Interviewing and Hiring for Success Step 1: Forecast Needs Accurately forecast short and long term needs Step 2: Source Potential Candidates Identify potential sources for employee See Integrate Millennials, Page 54

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H OND A C AL I FO RN I A

AutoNation Honda Co sta M es a

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AutoNation Honda Roseville Ro se vi l l e

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First Honda Si m i Va l l e y

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AC U RA C AL I FO RN I A

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36 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. C AL IFOR N I A

CAL IFO RNIA

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IDAH O

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Dept. Hours: M-F 7-6; Sat 8-5 N EVAD A

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Metro Acura M o n tc l ai r

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 37

Western News

New California Laws That Will Impact Your Business with Ed Attanasio

Every year without fail, hundreds of new laws are enacted that will impact automotive repair shops throughout the state of California. From huge MSOs all the way to little mom and pops in tiny towns, these laws have the potential to influence body shops everywhere if they don’t adapt to them or adhere to them. Below is a list of some of the key measures that will take effect in 2017, unless otherwise noted. Jack Molodanof of Molodanof Government Relations, who has been representing the California Autobody Association (CAA) for 25 years, has offered his take on each new law and how they can affect your business.

Minimum Wage Increase: Effective January 1, 2017, the minimum wage for employers with 26 or more employees will increase to $10.50 per hour. The minimum wage for employers with 25 or fewer employees will increase to $10.50 in January of 2018. (SB 3)

“Since most technicians, estimators and painters customarily make considerably more than minimum wage, this law isn’t going to affect shops in most cases,” Molodanof said. “Maybe for some detailers or porters, this law can impact their incomes to a degree. Additionally, remember that if you don’t provide the proper tools to any employee, you will have to pay them twice the minimum wage.”

Lead Acid Battery Fee: Beginning April 1, 2017, a $1.00 California battery fee is imposed on a person who purchases a replacement lead-acid battery from a retail dealer (includes auto repair dealers). The dealer will be required to separately state (line item) the California Battery Fee on all invoices and collect the $1.00 fee. The Battery fee will be submitted to the Board of Equalization on a quarterly basis, similar to the current California tire fee. The dealer will also be required to ac-

38 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

cept used lead acid batteries without charging a fee. The retail dealer of batteries is also required to provide written notice regarding the California Battery Fee and refundable deposits; however, the notice requirements do not apply to an auto repair shop that does not sell lead-acid batteries directly to consumers (over the counter) but instead removes nonfunctional/damaged batteries as part of an auto repair dealer service. (AB 2153). “We always had concerns with this bill,” Molodanof said. “This law is a direct response related to the 2013 series of events at the Exide Technologies battery plant that contaminated an estimated 10,000 homes in southern California with hazardous waste derived from batteries. This new law will mandate a $1 fee for each such battery sold for placement into the Lead Acid Battery Cleanup Fund.” Tow Truck Requirements: This new

law makes a series of changes to provide relief to last year’s bandit tow truck law (AB 1222). Current law requires a business taking possession of a vehicle from a tow truck to document the name, address and telephone number of the towing company, the name and driver’s licenses number of the tow truck operator, the make, model and licenses plate or vehicle ID number and the date and time that possession was taken of the vehicle. This new law allows the business to accept the operator driver’s license number or driver’s identification number issued by a motor club or other government authorized unique identifier of the tow operator. If the business is taking possession of the vehicle from tow truck when the business is closed, the business must document reasonable efforts made to obtain the required information. (AB 2167) “This law provides relief by allowing shops to accept a government authorized unique identifier or motor

club driver’s identification number,” Molodanof said. “This way, they don’t have to present their driver’s licenses as identification, which is an identity theft protection issue for the drivers. This law protects shops, tow companies and consumers alike, because it documents the transaction and provides full accountability.”

Automotive Windshield Replacement: This new law requires that automotive repair dealers (includes sublets) to use windshields that meet or exceed Federal Motor Vehicle Safety Standards and vehicle manufacturer specifications when replacing windshields and to use adhesives that meets or exceeds manufacturer specifications. Auto repair dealers shall provide an estimate notifying the customer that the installation of the windshield will prevent the operation of the vehicle for a period of time (due to cure time) and whether the windshield is an OEM or non-OEM manufacturer part. The invoice shall notify the customer of the cure time, the date and the time upon which the installation was completed and whether the windshield is an OEM or non-OEM manufacturer part. (16CCR 3365.1)

“This law allows shops enough time to let the adhesives cure during the installation process so that customers would not be left in the dark and the windshields will not leave a shop until they are safe and correctly installed,” Molodanof said.

Counterfeit and Nonfunctional Airbags: This new law increases penalties for any person who knowingly manufactures, imports, installs, reinstalls, distributes, sells or offers to sell any device intended to replace a supplemental restraint system with a counterfeit supplemental restraint system component or a nonfunctional airbag as defined. (AB 2387) “The National Highway Traffic Safety Administration (NHTSA) reported in 2015 that more and more counterfeit airbags have been discovered as replacement parts in vehicles that have been involved in crashes, thereby leading to this law,” Molodanof said. “This one is fairly common sense. If you buy an airbag on eBay or Craigslist for $50, you can be fairly certain that it is not the real thing. Counterfeit airbags are obviously a major safety issue and now the penalties for selling them are tougher,

which is good.”

Criminal History in Applications for Employment: This law prohibits employers (in addition to existing laws) from asking applicants to disclose, or from utilizing as a factor in determining any condition of employment, information concerning or related to “an arrest, detention, process, diversion, supervision, adjudication, or court disposition that occurred while the person was subject to the process and jurisdiction of juvenile court law.” (AB 1843) “In the past, employers could go back and look at employees’ or applicants’ juvenile records, but those will now be sealed,” Molodanof said. “This was sponsored by the Juvenile Court Judges of California and the idea behind this law is that people should not have to pay for things for their entire lives that they may have done as juveniles. This does not affect adult criminal records that are still available to employers that want access to them.” Single-User Restrooms: Commencing on March 1, 2017, this new law requires all single-user toilet facilities in any business establishment, place of public accommodations or govern-

ment agency to be identified as allgender toilet facilities. (AB 1732). “If your facility isn’t open to the public, this law does not apply to you,” Molodanof said. “It’s not like with a restaurant where a restroom is required by law. In this case, you will likely only have to change some signage on your restroom to adhere to this new law.”

Smoking in the Workplace: A new set of laws were passed during the middle of the year (June 9, 2016) which increased the smoking age from 18 to 21; included electronic cigarettes and expanded the prohibition of smoking of tobacco products inside an enclosed place of employment. The law now applies to all employers regardless of size, including where the owner-operator is the only employee (i.e. owner-operated business). (ABX2-7) “This law was designed to some degree to deal with e-cigarettes, because they are new and many business owners don’t know how to deal with them,” Molodanof said. “Now, it is prohibited to vape inside a shop and that also includes customers. It’s a health issue, and even if you’re okay with smoking in your business, the state is not.”

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Day Job/Night Job Former Metal Technician Lands Dream Job with his Animal Art with Ed Attanasio

Body technicians often collect items while on the job, but most of them end up in their home garages where they languish forever. But what if one of them took these objects and used them to create amazing art that received accolades by art lovers and critics nationwide?

Known for his fish metal sculptures, Miller has also created other animals, like this ram’s head

then, I could hustle and make a lot of money, well before DRPs existed, because it was 100% flat rate. But over the years, the body shops in the Bay Area started paying salaries while costs kept rising in northern California.” Several years ago, Miller moved to Southwest Missouri, where he could purchase a large house on three acres while still working in the collision industry. During this entire time, he was doing his art, a passion he discovered while attending high school in Sunnyvale, CA. “I was throwing pottery and doing a ton of artwork while in school,” he said. “Then, as a senior, I started working at a local body shop and the art kind of faded into the background. Fixing cars is artistic in many ways, so I always have been looking at different shapes and forms that techs run into every day on the job. Eventually, I decided to make some sculptures from items I found while repairing vehicles.” One of his first pieces was for his mother, where Miller took an old can and cut it until it looked like a rose. He then painted it red, and people who saw it were immediately impressed. “I took some old metal and made it into something that looked like it was alive and the feedback was great,” he said. “That planted the seed, and then several years later, I started doing my fish sculptures, but I was always thinking about it and planning the pieces in my mind.”

A former metal technician, Gary Miller, 54, has done exactly that. By using things he finds during the course of any normal day at a body shop— small car parts, broken or tired tools, gears, housings, armatures, motors, windshield wiper motors, copper, chrome, aluminum, steel, etc. Miller has been able to create some amazing sculptures. Where most people think trash, Miller thinks art. Creating a menagerie of animals that Dr. Doolittle would be proud of, Miller has created a wide range of fish, insects, rams and other creatures that wow people and make them happy. A body tech for 37 years, Miller started in the industry The fish that Miller is now creating for Bass Pro Shops at age 17, when he began are more realistic, but still just as impressive learning the business from the ground floor. “I started out like other Why fish for his sculptures, we teenagers, sweeping floors and abasked Miller? “I have always been a sorbing as much as I possibly could,” wilderness guy, backpacking in Miller explained. “After 5-6 years, I Yosemite and spending weeks at a was doing a ton of combo work that time out there,” he said. “I have also was all strictly collision repair. Back been an avid fisherman for decades,

40 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

fly fishing for river trout all the way to deep sea fishing too. So, it was just a natural progression for me to use animals as subjects for my sculptures, be-

artful. “I knew that I had all of the skills to turn these parts into sculptures,” Miller said. “By doing my combination work for many years, I

A salmon made of parts found in a body shop has received amazing reviews for Gary Miller, a former metal technician who has found a second career with his art

cause they are beautiful creatures and my goal is to capture that beauty in my work.” For the past 37 years, Miller has been plucking things from the body shops he has worked for and accumulating a lot of objects that no one else could even remotely consider them

know how to cut the metal, weld, paint and shape these creations. At first, I was just doing them for friends, mostly for Christmas gifts. A few years ago, I made a salmon for my brother mostly out of nuts and bolts. Most of the parts that I used were from things I found,

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—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.

Historical Snapshot

CIC Ends Parts Test-Fit Demonstrations, Feds Launch New Insurance Oversight Agency with John Yoswick

including representatives of some companies that host NACE parties, said the proposal would be something they would strongly consider once some specific ways the money could be spent were developed. – As reported in The Auto Rebuilder.

20 years ago in the collision repair industry (January 1997) Also during the Collision Industry Conference (CIC) in January, Georgia shop owner Gene Hamilton proposed that the paint manufacturers and other companies that host large parties in conjunction with NACE (the International Autobody Congress and Exposition) be asked to redirect some of the money to address fundamental industry problems. “NACE parties are a lot of good drinking, a lot of good eating, and a few hours later it’s gone, but so are sizable amounts of money,” Hamilton said. “My proposal would be that we find a way to reallocate some of the money spent on us. I’d like to see the industry say, ‘I’m willing to forego a party, I’d rather try to solve a 365-day problem, and I’d like that money to be spent on the industry for training, or for attracting people to this industry.’” A number of NACE participants,

In 1997, Georgia shop owner Gene Hamilton suggested that the money industry vendors were spending on large parties at the annual NACE convention could be used to address larger industry issues

For a number of years, some companies adopted Hamilton’s suggestion, announcing donations to industry efforts in place of large parties during NACE. In recent years, large vendorsponsored events have returned both during NACE and during SEMA.

DiLisio, who led the Parts and Airbags Committee prior to becoming chairman of CIC last year, was among those calling for a halt to the test fits primarily because what he called the “misuse of the information gathered by the parts test fits.” As an example, DiLisio cited a press released issued by the Alliance of American Insurers last fall that stated, “Generic certified parts more often than not have received higher ratings than car company parts in blind parts demonstrations at CIC meetings. The attendees of the meetings are primarily owners of automobile body repair shops.” “There’s a couple of things in that statement that are obviously disturbing,” DiLisio said. “Number one, we’ve never had scientific tests; therefore data shouldn’t be used as if it were scientific results. Number two, more often than not, the aftermarket parts have not performed better than the OEM. And number three, the attendees

15 years ago in the collision repair industry (January 2002) After much debate at the Phoenix meeting, Collision Industry Conference (CIC) participants narrowly voted to suspend the vehicle test fits of OEM and non-OEM parts that have been held at most CIC meetings over the past three years. The test fits, coordinated by CIC’s Parts and Airbag Committee, have allowed CIC participants to rate the fit, finish and overall acceptability of OEM and non-OEM replacement parts – not knowing which were which – that were installed during the meeting on a vehicle.

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VADA Celebrates 37 Years Representing Dismantling and Recycling Businesses in Antelope Valley, Glendale, San Fernando, Ventura, Santa Barbara and Santa Clarita Counties. 42 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

at this meeting are not primarily collision repair shop owners.” Insurers and industry vendors are generally represented in equal or even greater numbers that collision repairers at most CIC meetings, DiLisio pointed out. Even more importantly, only six of the 16 certifiable non-OEM parts used in the CIC’s test fits over the past three years were rated higher than the OEM version (and in one case there was a tie). Over all CIC test fits, DiLisio said. OEM parts had an acceptability rate of 78 percent compared with 55 percent for the non-OEM parts. “For them to make a statement that more often than not the [nonOEM] parts perform better, I have a problem with that,” DiLisio said. “We started these test for one reason only: To emulate what a collision repairer goes through every day: Calling up on the phone to order certified parts to see what comes. Number two was to put these parts on a vehicle to see whether they fit, what the finish was like, etc. We’ve done that. We’ve given feedback to the distributors, to the OEs, to the Taiwanese. Many changes have been made. There’s no question in my mind that these test fits have proven to be positive. The question I raise: What

are we going to gain out of them in the next 12 months?” Massachusetts shop owner Chuck Sulkala was among those who supported the continuation of test fits. “We had to be able to show, ‘This is what is wrong with this part,’ and that is what the test fits have done,” Sulkala said. “As a result, we now have CAPA changing the way they are doing thing and are now doing vehicle test fits. We’ve had the Taiwanese come over to see what we’ve done. And we’ve also found that not every OEM part is perfect as I and many other repairers thought they were. As a result, we got the attention of the OEM as well. It’s unfortunate that people decide to take information and twist it and turn it, and they ought to be called on the carpet...but my vote would be that we continue the effort. I’m not sure that our work is completed yet.” Sulkala, however, was one of only three CIC participants who voiced support for continuing the test fits at nearly every meeting; although two dozen others supported limiting the test fits to two a year, a slightly larger majority voted to suspend the test fits altogether. – As reported in Autobody News.

10 years ago in the collision repair industry (January 2007) At the Collision Industry Conference “planning session” held in Phoenix in mid-January, Stacy Bartnik oversaw her first meeting as chair of the conference, leading about 200 attendees through the process of determining which topics CIC committees would tackle in the coming year. “I would like to see some discussion on the use of photographs to establish judgment times,” suggested Darrell Amberson, president of Lehman’s Garage, a six-shop collision repair business in Bloomington, MN. Amberson, who also serves as national director of the Collision Division of the Automotive Service Association (ASA), said such “desk auditing” practices now include using photos to determine, for example, whether a repair time should be two hours rather than three. “I would question the ability to accurately do that based on a 2-dimensional photograph,” he said. – As reported in Autobody News. Despite Amberson’s concerns, “desk audits” of estimates have become increasingly common in the past decade, as have services offering initial esti-

mates based solely on photos. Amberson is now president of operations for LaMettry’s Collision, another Minnesota-based MSO.

5 years ago in the collision repair industry (January 2012) The new Federal Insurance Office (FIO) has been seeking comments on how insurance should be regulated in the future, and two viewpoints are clearly emerging. The National Association of Insurance Commissioners is among those saying the current state regulatory system is working. “Property and casualty insurance proved to be among the best regulated financial-services sectors throughout the financial crisis,” Jimi Grande of the National Association of Mutual Insurance Companies said. But the Risk and Insurance Management Society told the FIO that more federal oversight is needed because state regulation allows insurers to stray from or misinterpret national standards. And the Financial Services Roundtable says the majority of its members “believe that the FIO must be a lead voice, not only in vetting options, but ensuring that a new era of See Retro News, Page 59

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A 2015 Profile of the Evolving North American Collision Repair Marketplace by Vincent Romans

Our 10th anniversary annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. Following is an executive overview highlighting our data and findings from the report.

It has been quite a ride to watch what has transpired during the past decade, not only within the collision repair industry, but throughout the entire auto physical damage ecosystem. The consolidation, convergence, and the structural changes we are witnessing within businesses, industry segments and markets, as we know them today, are now significant market factors to consider as part of our future planning. The high velocity and breadth and depth of change, coupled with the seemingly relentless introduction of innovative and disruptive products, services and business models, has required us to maintain an intense vigilance, to stay constantly informed, and to learn

■

And since 2012, the $10-$19 million MLOs Since 2006, the total revenue within these four segments has grown from $3.8 billion to $10.2 billion in market share, an 11.6 percent compounded annual growth rate. The top ten ranking of all ≥$20M segment repairers including independents, dealers and franchisors can be seen in the following chart. Under the All Repairers column, we see there are four independent consolidators, three independent franchise organizations and three dealer groups. Within this category, the four independent consolidators represent a significant 70 percent of the revenue processed in 2015. The four consolidators by themselves represent 11.3 percent of the total industry size for 2015. We estimate that by 2020, they could almost double their market share and represent just over 20 percent of industry market size. When combined, the four segments we track and analyze could represent almost 45 percent of the collision repair industry by 2020. The following chart reflects the ranking of the Top 10 multiple-location operators and networks for 2015.

Although the U.S. has seen an increase in consolidation within the multiple-location operator segments, Canada remains significantly more consolidated in the revenue generated by the combined franchise and banner and ≥$10 million MLOs. In Canada, this combined segment group represents a 71.8 percent market share versus the combined 29.8 percent share for the same U.S. segments. The combined 2015 revenue for the U.S and Canada ≥$20 million MLO

and franchise networks was $11.8 billion versus $10.8 billion in 2014. This represents 32.2 percent of total industry revenue for the U.S. and Canada. Within the U.S. market, the ≥$20 million independent and dealer MLO segment is the largest while the franchise and banner network MLOs remain the dominate business model in Canada. Both countries saw a continued downtrend for the number of collision repair facilities, although this downturn See A 2015 Profile, Page 51

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Parts 800-952-5307 and understand as we consider, adopt, avoid, or leverage these transformative or disintermediating forces in order to remain relevant and competitive. U.S. Collision Repair Industry As the basis for our research, we track and analyze four U.S. segments:

■

■ ■

Four top independent consolidators ≥$20 million multiple-location independent and dealer operators, MLOs Franchise and banner groups

Canadian Collision Repair Market The Canadian market continues to consolidate with the franchise and banner segment now representing a significant 52.0 percent share of the CAD $2.9 billion private insurance auto market. When including the ≥$10 million MLOs in Canada, the combined larger segment has a significant 71.8 percent of all the private passenger insurer and consumer-paid market. Under the All Repairers column, we see four banner and franchise groups leading the Top 10 ranking followed by five independents and one dealer MLO.

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SEMA Show Goes On

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

Vintage Color Studio Features Award-Winning Roadster at 2016 SEMA at PPG’s Booth with Ed Attanasio

When a major brand like PPG invites you to be part of its booth at SEMA, it’s definitely a big deal and an honor for any automotive painter. And even though Darryl Hollenbeck, the owner of Vintage Color Studio in Concord,

Darryl Hollenbeck and his wife Terri with their 1932 Ford High Boy Roadster, which wowed SEMA attendees who visited PPG’s booth during all four days of the show

CA, has won three America’s Most Beautiful Roadster (AMBR) awards and a handful of Pebble Beach Concours d’Elegance awards with his cars that are regularly featured on the covers of magazines such as Street Rodder and Rodder’s Journal, Hollenbeck has never become jaded or complacent due to his success. Along with other top car painters and fabricators, Hollenbeck’s 1932 Ford Highboy Roadster wowed SEMA attendees during all four days of the show. The 2016 AMBR winner differs slightly from your traditional Highboy approach while still retaining much of its original look. “Cory Taulbert at Webb Automotive Art handled the chassis fabrication and then we got it back to install its Edelbrock crate small block, and a T5 Borg Warner trans,” Hollenbeck said. “Once we were done with the paint, Bill Ganahl coordinated the final assembly, and friend Sid Chavers stitched the

leather and 1969 Cadillac fabric interior combo. I’ll guarantee you it’s the nicest roadster here with 10,000 miles on it.”

Hollenbeck's ‘32 Highboy won Vintage Color’s third America’s Most Beautiful Roaster award earlier this year

Darryl Hollenbeck, 49, grew up in Concord, CA with a family that was destined to paint or rebuild vehicles as a profession. Darryl’s grandfather,

uncle and father were all highly-regarded car painters, with his father Dale gaining national acclaim for his work before passing in 2003. Hollenbeck has been painting vehicles since he was a teenager. “I was using lacquer back when I started painting cars as a kid,” he explained. “The first car I ever painted was a 1968 Mustang done in black lacquer. When waterborne paint was mandated almost 10 years ago now, I struggled with it for a short time and was a little skeptical about it. I was wondering if the waterborne would last and questioned its longevity, but now I use the PPG Envirobase exclusively and it is outstanding. They are a great company and extremely supportive. Their products are user-friendly and they know what painters go through, which means that their customer support is exceptional across the board.” A veteran painter, Hollenbeck entered the industry on the collision side

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initially. “I worked with my uncle and my father at H&K Auto Body in Oakland, CA, and that is where I started working right out of high school,” he said. “I was there for about four years and then I bounced around working at body shops in the East Bay. I always had an urge to do complete customs, and pretty soon, I was able to do them. I always wanted to be strictly a painter, but at the beginning to break in, I had to do it all.” Hollenbeck’s career really gained momentum when he landed a job at Acme Custom Cars in Antioch, CA, a top customization shop with a great reputation for doing award-winning work. “I was able to really expand my horizons there and refine my painting skills,” he said. “They gave me the responsibility and I thrived on it.” Currently, Vintage Color Studio is booked for at least a full year, and Hollenbeck’s work is always in demand, it seems. If you want a classic car with an award-winning paint job, Hollenbeck’s name is a household word in northern California and many of the country’s top rod builders have his name right at the top of their list. When Hollenbeck gets a classic hot rod in his shop, it’s already down

to the bare metal, and that’s when Vintage Color Studio does its magic. “We fill in the gaps and prepare it for paint and then we paint it,” Hollenbeck said. “The car is then sent back to the restoration shop, which is usually Roy Brizio at Roy Brizio’s Street Rods in South San Francisco, CA. It is a great

and a few years ago he stumbled upon a niche that consists of rock stars including two guitar legends. He has now done four cars for James Hetfield, the lead singer of Metallica; two for Eric Clapton and one for Jeff Beck, who used to be in the Yardbirds with Clapton many years ago.

Hollenbeck painted this award-winning 1937 Lincoln Zephyr for James Hetfield of Metallica a few years back

relationship that works well, because they have an amazing track record of success between the two and are also related through marriage. Also, I am married to Terri Brizio, Roy’s sister, which surely does not hurt.” Hollenbeck has painted vehicles for car collectors all over the world,

Hollenbeck is a serious artist and businessman, but he also enjoys the camaraderie that comes along with the job. “One of the great things about this business is that I eventually become friends with many of our customers,” Hollenback said. “It just happens naturally, because they give me a ton of

responsibility with these vehicles and I value that. These are their children in a way, so I want to do an incredible job for them. That is also why I get a lot of repeat clients, because they know I am totally dedicated to every project I do.” After working on any car, Hollenbeck still gets a rush when he sees the finished vehicle right before the rest of the world gets to. “When we return it to the rebuilder, it’s all in parts, so we can’t really get a good idea what it is going to look like. But when we finally get to see it with all of the upholstery and driving it is always a thrill!” Hollenbeck still loves the business, even though the work schedule is often insane. “It’s tedious work with 10-14 hour days, but it sure beats collision repair, that’s for sure,” he said. “When you fix a car, you just return it back to what it was before. But when you rebuild a car, it’s like creating a whole new vehicle, and that’s why I love it. Getting in shows, winning awards and being featured in magazines is nice, but in the end, I am taking something old and making it look spectacular and that’s why I have not had a vacation in 17 years and don’t have any planned anytime soon.”

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Tips for Busy Body Shops

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

How to Compete with Consolidation and Outmaneuver Your Competitors in 2017 with Stacey Phillips

During a recent SCRS seminar at enue and margin benefits from conSEMA 2016, Brad Mewes began his solidation, said Mewes. presentation by asking a room full of These trends seem to be here to body shop owners to think back a stay. “They aren’t going to change; they decade ago when there were just a are only going to continue,” he said. handful of consolidators in the indusSo how is it possible to compete in try, such as Caliber. such an environment? Mewes shared “This was a time of much uncerfive ways shops can make more money tainty in the collision repair industry and outdo their competition in 2017: and a time when the power of the independent was very strong,” said Mewes, 1) Organic Growth: With this founder of Supplement, a company that model, Mewes said generally speakspecializes in strategic advisory serving, there is a potential to grow your ices to the automotive aftermarket. business five to 10 percent annually. “But there were changes that were hapSome of the advantages include diverpening in the industry.” sifying your customer base He recalled attending a and increasing your contribumeeting at that time when tion margin. However, he businesses came together to said there tends to be a maxdiscuss how to compete in an imum amount you can grow. environment that was con“One of the bigger challenges solidating around them. He growing organically is you remembered one of the succan only grow so much before Brad Mewes, cessful business owners sayyou run out of space. Addifounder of ing that if you ever suspect tionally, as you grow organiSupplement, during SEMA auto body to be run like Wall cally, you have to continue to 2016 Street, you are going to be invest in staff and working waiting a long time. capital,” said Mewes. “An ongoing inFast forward 10 years and the vestment is required.” largest four collision repair operators in the United States are all run like 2) Efficiency and Cost ReducWall Street companies and backed by tions: In terms of opportunities, Mewes some of the largest, most prolific pri- said that shops can improve both gross vate equity groups in the world, said margins as well as operating margins. Mewes. The Big Four include ABRA, “Buying right, minimizing waste, and Boyd (Gerber), Caliber and Service increasing throughput are all ways to King and own more than 1,400 loca- increase efficiency and boost profit,” tions combined. said Mewes. “But there is a natural Mewes said that from the end of limit to this growth and margins can’t 2011 to year-end 2015, the Big Four increase indefinitely. In other words, have collectively tripled in size. Serv- you can only sharpen the knife so many ice King, the fastest growing of the times.” four, increased in size six-fold. In the first three months of 2016 alone, the 3) New Development: New detop four consolidators added nearly as velopment is generally a low-cost opmany locations as they added in all of tion for businesses that want to expand. 2012. “They have clearly become exMewes said the new shop can be used perts at identifying, acquiring and inas a training facility to educate emtegrating repair facilities. This is ployees until operations ramp up; ususignificant because how they are doing ally over 18 to 24 months. If shop business is different than the way we owners invest a substantial amount of might be doing business,” Mewes told money into the business, they must fiattendees. nance the development over this time, Meanwhile, private equity firms as well as pay their employees during are investing in the body shop indus- the ramp up phase. This can be a costly try due to its scalable platforms and proposition as the shop gets up to full backable management teams where steam, and it is important to plan acthey believe there is substantial rev- cordingly.

48 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

4) Acquisitions: Many in the industry consider this a risky option; however, Mewes said there are advantages to making an acquisition. Not only can it diversify your risk, the business is already in place with employees, a customer base, insurance cash flow, revenue, etc. “Generating cash flow from day one makes it more attractive and manageable to grow,” said Mewes. However, acquisitions can be very complex and often require a substantial financial commitment.

5) Culture: Mewes said that the biggest advantage independent collision repairers have is the ability to drive culture. Although large companies in this industry spend a lot of time and money on developing a culture and education, he said it’s one of the biggest challenges they have because they simply cannot touch every employee in the organization. “The abil-

ity to drive culture is really one of the differentiating factors that a small organization can leverage and has to leverage in order to grow aggressively,” said Mewes. “Because you are a smaller operator, you can be flexible in a way that a larger operator can’t.”

As the industry continues to change and evolve, Mewes said there is still opportunity for independent shops to grow. “There are investors who want to invest in companies that are growing and expanding. It’s a huge opportunity,” he said. “In a consolidated industry, you effectively have one choice: grow fast or be acquired!” This article is based on an SCRS seminar during SEMA 2016.

For more information, contact Brad Mewes, founder of Supplement, at 714-658-5518, brad.mewes@supp-co .com or read his weekly insights at http://supp-co.com.

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Media and Publicity for Shops My Marketing Rap for 2017 with Ed Attanasio

In marketing, it’s always a good idea to mix it up and change your approach every once in a while. Maybe take your efforts out of social media and use direct mail or billboard advertising, for example. Some shops will do print ads only during their slow times and then drop out when they get busy. Other shops, however, have been sticking with the same old marketing techniques for decades because they still work, but how will they continue to perform in today’s ever-changing world of marketing? If you’re still advertising in the yellow pages or putting flyers on cars in parking lots, it’s time to make some changes and now is the ideal time to do it. So, in the spirit of change, I have decided to alter my writing style a little for 2017 to keep everyone on their toes—so I am writing this column at least partially with rap lyrics. I am surely not 50 Cent, but if my information about marketing is worth at least 15 cents, I’ll be good with it, although I don’t know how my editor is going to respond to my new approach.

1) S-E-O, Baby! Leverage your online presence or start paying your own severance before your shop starts to stumble and eventually crumble, because people are jammed for time and need to find you quickly online every time. That may sound dire and I don’t want to start a fire, but with consolidation gaining momentum, smaller independent shops should heed this proclamation. Search Engine Optimization (SEO) is a necessary evil in today’s world and many shop owners hate it, because they can’t understand it, to be honest. If you’re not one of Google’s top five shops when people search for your business in your town, that means you’re likely buried deep in the bushes and most consumers will not spend the time to chase you down. You don’t necessarily have to know what SEO is, but if you are on Google’s page three or four, you definitely need to do something pronto. Hire a reputable SEO expert and let them do their magic and most importantly, give them at least eight months to one year for it to go into effect. To move up the ranks via any search engine organically, you need to

give any SEO expert enough time for it to happen. Too many shops pull the rug out after only three months, thereby setting it up for failure.

2) Short Clips and Less Text With too many data downloads hitting our brains like driving rain, people are getting away from the written word and watching more videos to a point where it’s absurd. So, jump in the video game and don’t feel shame— you won’t need a Speilberg or Scorsese to make production easy. YouTube used to consist of mostly cute cat videos and recipes about how to make the world’s best Lobster Mac ‘N Cheese, but now there is a plethora of ones that were created by body shops all over the country. Some show shops fixing cars and educating consumers about the repair process, vehicle certifications, customer testimonials and other valuable and even entertaining information that can be easily and quickly disseminated to the public. If you think they don’t work, check out how many people have viewed some of the them on YouTube and then start producing a few of them yourself. With today’s technology, you can actually do videos with your smartphones and editing software is easier to use than ever.

3) Direct Mail is Back It used to end up in the trash pail, but now direct mail is back like kale, so it won’t fail for shops that can prevail by using this re-energized form that was once considered stale. If your design is spiffy and the message is profound, your customers will be happy and the piece renowned. In the old days before the Internet, smartphones and email, everyone did direct mail and caused major congestion in many of our mailboxes. But now, with so many shops competing for a strong identity online, direct mail is more less common. More and more large companies are gravitating away from direct mail and that’s why you’re getting less and less of it. This form of advertising has suffered from being called “junk mail” for decades, but now it’s back, because if done right, it works. First off, you can buy a list that tells you how many people in your region drive a

50 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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

name out there and shows that you care about the community.

specific car for which you might just have a certification for. Sending a nice succinct mailer to these people on a semi-regular basis without stalking them will keep your name in their brains for when their next accident occurs.

5) Show Some Love An occasional illustration of customer appreciation will ease their pain and retain them for the next time they get into a collision for whatever reason. Acquiring new clients is never an easy way to go, so why not stay in touch with the ones you already know? Many shops are great at customer acquisition but don’t do anything to retain them, which is a huge mistake. We know that people get into accidents every 7 to 10 years depending on who you’re asking, but they can also refer folks to your shop, etc. A satisfied customer can be a great advertising vehicle for your business, so why not put your name in front of them as often as you possibly can? Follow-up letters, email newsletters and even an annual customer appreciation day is how top shops show love to their existing customer base year-round.

4) Pay it Forward People have trouble saying philanthropy so in simple terms- it’s just charity. You don’t have to look too hard, because deserving people are in your own backyard. Do it for the right reasons and not just during the holiday season, and you will see results that are both satisfyin’ and pleasin’! If you are looking at the most successful shops in any area, I would bet they do more than a few charity-related events and programs every year. Giving away cars or raising funds for non-profits by sponsoring car washes, truck pulls, crab feeds, pancake breakfasts—you name it and they do it and more. Helping other people gets your

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Continued from Page 44

A 2015 Profile

has slowed in recent years. In 2006 there were approximately 45,000 U.S. collision repairers averaging $666,000 in

revenue annually versus about 32,900 locations in 2015 averaging $1,036,474 in annual revenue. Canada’s repair location population has seen a reduction of more than 50 percent since 2012, with 4,900 locations averaging about

$427,959 in 2015. When comparing the market size and share for the property and casualty insurance and auto repair segments for the U.S. and Canada, we continue to see two very different and divergent markets. The U.S. collision repair mar-

Both countries saw a continued downtrend in the number of collision repair facilities, although the decline has slowed somewhat since 2010. Although the U.S. has seen an increase in its consolidation within the MLO segments, Canada remains sig-

$36.4 billion is an increase of 3.9 percent versus 2014. Our annual research report, A 2015 Profile of the Evolving North American Collision Repair Marketplace, is now available. The report is the result of our ongoing propriety research, analysis

ket size is 15 times the size of the Canadian market. Canada’s Top 10 private insurers have a 78.7 percent premium market share, up from their 77.1 percent share in 2014, as compared to the U.S. insurers’ share of 71.1 percent.

nificantly more consolidated in the revenue generated by MLOs at 71.8 percent share versus 29.8 percent for the U.S. market. This represents increases versus 2014 of 1.9 and 3.3 percent for the U.S. and Canada respectively. The combined ≥$10M MLO, franchise and banner revenue of $11.8 billion is now just under onethird of the combined total market revenue. The combined market size of

and collaboration with specific market experts and leadership throughout various auto physical damage segments. It presents the complete results of our work for 2015 in over 40 charts and graphs in 47 pages and includes historical trends and a future view. The report can be purchased by contacting The Romans Group LLC at 847-382-6208 or Mary Jane Kurowski at maryjane@romans-group.com

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Michigan OKs Operation of Autonomous Vehicles on Public Roads, Previously Only Testing Allowed Michigan Gov. Rick Snyder has signed legislation that aims to put Michigan at the forefront for autonomous technology, testing and deployment for self-

MI Gov. Rick Snyder signs package of legislation. Credit: Governor’s office

driving cars. Proponents say the laws are important for the state’s economic development and talent retention, according to news releases and reports in the Detroit News. The new law clears the way for the public to use self-driving cars when they are available, and allows self-driving vehicles without steering wheels or pedals to be tested on public roads. Previously, only testing of the vehicles by manufacturers was permitted. The bill also allows automated vehicle platoons and on-de-

mand autonomous vehicle networks to operate on roads throughout the state. Previously, only testing of vehicles was permitted. The result should include more autonomous vehicles taking to Michigan roadways and quickening development of the technology State leaders say will make roads safer and cut down on accidents.

and use fully self-driving cars when they are available at the Automotive Hall of Fame in Dearborn. The laws would allow ride-sharing services without drivers to be operated by auto manufacturers or by ride-hailing services such as Lyft or Uber. The package of four bills (Senate Bill 995-998) passed through the

“Michigan put the world on wheels and now we are leading the way in transforming the auto industry,” Snyder said. “We are becoming the mobility industry, shaped around technology that makes us more aware and safer as we’re driving. By recognizing that and aligning our state’s policies as new technology is developed, we will continue as the leader the rest of the world sees as its biggest competition.” Snyder signed the package of bills that will allow the public to buy

House and Senate with near unanimous support. The main bill allows self-driving vehicles to operate on any Michigan roadway. It allows automated platoons of trucks to travel together at set speeds. And it allows networks of self-driving cars that can pick up passengers on demand. It also creates the Michigan Council on Future Mobility to make recommendations on statewide policy to keep Michigan ahead of the game. Joined by bill sponsor Sen. Mike Kowall and mobility leaders from

“Michigan put the world on wheels and now we are leading the way in transforming the auto industry” — Gov. Rick Snyder

Auto Body Hawaii Attains Gold Class® Status

Auto Body Hawaii has announced its achievement of obtaining Gold Class status, the industry standard for training that contributes to complete and safe vehicle repairs. Only 10 percent of collision repair businesses currently meet the rigorous training requirements necessary to earn the Gold Class designation; Auto Body Hawaii is the only repair facility on the Big Island to do so. Gold Class shops are required to have every technician involved in collision repair complete training that is specific to their roles. The technicians must continue with ongoing training each year in order for the business to maintain its Gold Class recognition, including classes in new technology. Today’s vehicles are increasingly sophisticated devices featuring an ever-growing number of components, parts and advanced

lightweight materials. The constant introduction of new vehicle technologies can result in repair procedures changing significantly from year to year, making current repair knowledge critical for the achievement of complete, safe and quality repairs. “Auto Body Hawaii is honored to be the first shop on the Big Island to be named a Gold Class collision repair facility,” said Dale Matsumoto, president of Auto Body Hawaii. “We are proud of our commitment to training because it is also a symbol of our commitment to professionalism and to the safety of our customers.” The Gold Class designation is awarded by I-CAR®, a not-for-profit training organization dedicated to improving the quality and safety of auto collision repair for the ultimate benefit of consumers.

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Ford and GM, Gov. Snyder signed Senate Bill 995 December 9. As a result of the passage of the bill, all safety requirements that pertain to the testing of autonomous vehicles will apply to autonomous vehicle operation, according to the news release. The bill allows for automated vehicle platoons, where vehicles travel together at electronically coordinated speeds, and authorizes on-demand autonomous vehicle networks. Gov. Snyder also signed three other bills sponsored by Sen. Kowall, Sen. Rebekah Warren, and Sen. Ken Horn, respectively, as part of the autonomous vehicles package: SB 996 outlines specific parameters for entities that wish to offer ondemand autonomous vehicle networks to the public. SB 997 recognizes the American Center for Mobility at Willow Run in statute and removes barriers to operating at the facility.SB 998 exempts mechanics from any damages to vehicles that result from repairs, if the repairs were made in accordance with manufacturer specifications.

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Continued from Page 34

Integrate Millennials

talent Work closely with sources to maximize productivity

Opening the interview: 1. Put applicants at ease 2. Arrange for privacy 3. Prevent interruptions 4. Greet candidate 5. Make some small talk

Closing the interview: 1. Re-describe the position of the company 2. Relate the positions responsibilities to the candidates strengths and background

Step 3: Plan for the Interview Formulate questions, review background information, and create the interview plan

Step 4: Conduct Interview Ask questions to collect appropriate behavioral information on candidates in order to make a more informed decision

Step 5: Market the Company/Opportunity Paint a positive and accurate picture of job responsibilities, career path, and employee benefits

Step 6: Assess Candidate Information Objectively analyze data collected on a candidate to detect trends, strengths, and/or weaknesses

Step 7: Hire the Right Candidate Use clear decision criteria and evaluate candidates against criteria Don’t compromise on candidate quality or fit

Credit: Mike Lanza, Sherwin-Williams Automotive Finishes, SCRS SEMA

6. Sit with no barriers between you and the candidate 7. Briefly describe the position 8. State basic tasks and responsibilities 9. Explain how the job is structured 10. Sell the company and explain how the position fits in 11.Promote Explain the interview procedure your business with 12. Explain that you will be taking notes an exclusive article featuring and the applicant may do the same your products or services. 13. Clarify confusing or incomplete items on the application resume 14. Begin with your interview questions

Lanza sharedfor withtimely attendees the The then source following methods for recruiting information that every employees more efficiently: body shop needs! ● Personal contacts ● Employee referral Processing infofor during the interview: Call details! CALL ● Signs 800-699-8251 1. Criteria for determining usefulness ● Industry contacts of information gathered: 800-699-8251 ● Tech school recruiting Ask yourself- is the information clear? Subscription ●Mail Insurance companies If not clear, seek clarification ● State/local agencies 2. Begin with open-ended questions ● Industry periodicals Switch to close ended questions to get ● Internet / Social media more information ● Local advertisements 3. If information becomes not rele● Review resumes and applications vant- redirect convo back to original ● Review work historyRegister Yourfocus – usefor open-ended Email Our questions to ● Compare candidates qualifications dig deeper to job description 4. If information given is not ade● Prescreen quate- ask questions in another criteria of the same example Lanza also provided tips for... 5. Ask for other examples of evidence

3. Answer questions candidly 4. Be positive and energetic 5. Do not make or imply any promises 6. Invite applicants questions 7. Explain next steps 8. Avoid building false expectations 9. Review next steps in selection process

and time frames 10. Tell how and when applicant will be notified of hiring decision 11. Thank applicant

Once a shop has hired a new employee, Lanza suggests the following methods for integrating him or her into the collision repair facility: ● Complete training plan ● Training dates ● Develop 30, 60, 90 day itinerary ● Use a tool such as a new-hire checklist to ensure all necessary information is provided/arranged 1. For customer service rep: design and implement customer communication plan by end of year 2016 2. For technician: identify system restraints in your department- develop correction plan and submit report to management by year end 2016 3. For production manager: identify sources of rework in production and implement a redo production program by year end 2016

To learn more, contact Mike Lanza at Michael.lanza@sherwin.com or visit www.sherwin-automotive.com/swa home.

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NE Labor Rates

Collision repair industry advocates fear State Farm’s decision could result in changes from other carriers trying to stay competitive, and they also fear that State Farm and other insurers may implement similar attempts to lower labor rates in other parts of the country as well. While State Farm has been “somewhat close in basic field estimates” in past estimating, Kizenberger worries that the insurer seems to be “looking at some alternative reality. Now, we’re going to have inaccurate dollars, and collision repairers are not about to go backward, for crying out loud!” Ironically, these changes come after a long-awaited labor rate increase from State Farm just a year ago. In a statement, Tomczak declined to address whether policyholders will see lowered premiums due to the reduced cost of repairs, yet he said, “A vibrant, profitable auto collision repair industry is in the interest of State Farm. At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe re-

pairer profitability and quality auto repairs that are reasonably priced can both be achieved. This change in our labor rates brings us more closely into alignment with the actual cost of vehicle repairs and is in the best interest of our customers.” Those who are unwilling to accept State Farm’s rate decision may be able to pursue a “reasonable” charge in court, but State Farm does not have to battle over reasonableness at all in NJ based on a state law which allows the insurance company to have a customer’s vehicle repaired at any nearby facility they choose at the price they want, though it makes the insurer responsible for the quality of the shop’s repair. Many impacted shop owners have reacted negatively to the labor rate changes, suggesting a variety of approaches to the problem, including billing the customer and engaging in legal battles for fair rates. Mike Orso, President of the New York State Auto Collision Technicians Association (NYSACTA), sees this as a more widespread concern, stating “We are very disappointed that State Farm has taken this illogical action to reduce labor rate

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allowances and limit paint materials, refusing to use a recognized paint calculator guide in parts of NY and NJ. Our concern is that other insurers are watching and will follow State Farm’s lead, if only to avoid subrogation conflicts. Auto body labor rate allowances are, without a doubt, controlled and suppressed. NY in particular has additional costs, such as higher taxes, higher utility costs, rent and environmental controls that other areas just don’t have. Auto body labor allowances are already suppressed by the monopsony (the ability to control the market by sheer size and financial size) power insurers wield, industrywide. The controlled/suppressed rates, which they call the “prevailing rates,” are well below mechanical rates. Mechanical shops and dealers I speak to admit that a body shop’s operational costs are three times that of any mechanical shop. Some are discouraged and quitting auto body operations. They are hard-pressed to find techs when faced with, as they put it, ‘irrecoverable soft and hard costs in an unsustainable marketplace.’ They are unwilling to obtain Certification or re-tool without a sustainable return on the investment, and we all are strug-

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gling to find techs that want do the work.” Expressing concern that shops will disregard OEM recommended procedures to reduce costs which could result in unsafe vehicles being returned to the road, Orso said “Some Insurance Companies, such as State Farm are spewing or spinning ‘control’ as an added service to their consumers for the ‘greater good of consumers.’ The goal: keep shops in line while keeping repair costs low. Translation: Control those nasty-greedy body shops so insurer profits are stable. As I look at the list of misdeeds by State Farm, it’s the insurance company who appears to need oversight and control. State Farm’s latest action is an insult to every body shop. That insult grows to a fever pitch for those who have invested in the latest round of training, technology and equipment. It does a disservice to State Farm insured’s by limiting repair options to the lowest cost provider that may or may not be qualified to repair today’s vehicles. Refusal to allow use of the paint guide violates part of the NYS Insurance Regulation 64. In my opinion, body shops are being made to be the scapeSee NE Labor Rates, Page 63

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HONDA www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 55

Rearview Cameras Reduce Police-Reported Backing Crashes Rearview cameras, soon to be standard on all new vehicles, can be expected to prevent nearly 1 in 6 police-reported backing crashes, an Insurance Institute for Highway Safety (IIHS) study concludes. The study compared rates of backing crashes for vehicles equipped with optional rearview cameras from four manufacturers with crash rates

Rearview camera image in 2017 Cadillac XT5

for the same models without the feature. On average, the cameras cut such crashes by 16 percent. Drivers ages 70 and older appeared to benefit the most. The study found that rear parking sensors also cut crashes, though results diverged for the two systems studied. More and more vehicles are being sold with rearview cameras, and all new vehicles under 10,000 pounds must have them by May 2018. The requirement is aimed at reducing backover crashes involving children and other pedestrians. Earlier IIHS research with volunteer drivers showed that rearview cameras dramatically reduce the size of blind zones behind vehicles in which a young child wouldn’t be visible. The research showed that cameras are more effective at helping drivers avoid unexpected objects than parking sensors. For the latest study, Jessica Cicchino, the Institute’s vice president for research, looked at police-reported crashes in 22 states for Buick Lucernes, Honda Pilots and various Mazda, Mercedes-Benz and Subaru models. All except the Lucernes and some Mercedes-Benz models had optional rear cameras. The Lucernes and some Mercedes-Benz vehicles had optional parking sensors. Using police reports allowed Ci-

cchino to identify crashes in which study vehicles were traveling in reverse. She used vehicle identification numbers to determine which crash-involved backing vehicles were equipped with the cameras or sensors. For the Pilot and the Subaru models, the presence of the cameras was tied to trim level and discernible from the VINs. That wasn’t true of the Buick,

Mazda and Mercedes-Benz vehicles. For those, the manufacturers supplied a list of VINs of vehicles with optional backing technologies, which made the study possible. Information from the Highway Loss Data Institute (HLDI) was used to control for other factors that might also have affected crash rates, including the vehicle’s garaging location and driver characteristics. The rearview cameras reduced the rate of backing crashes per insured vehicle year by 16 percent for all vehicles combined. When looked at by manufacturer, all the camera systems except for the ones on Mercedes-Benz vehicles reduced crashes. The reductions ranged from 14 percent to 23 percent. Mercedes-Benz vehicles equipped with only a camera had a 2 percent increase in backing crashes, though the change wasn’t statistically significant. The cameras had the biggest benefit for drivers 70 and older. Their backing crash rate fell 40 percent with cameras, compared with 15 percent for drivers younger than 70. “Older drivers often have difficulty turning their heads, making rear cameras particularly useful,” Cicchino says. Parking sensors cut the Lucerne’s backing crash rate by 34 percent but had virtually no effect for the Mer-

56 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

cedes-Benz vehicles. Crash rates for Mercedes-Benz models equipped with both cameras and parking sensors were 13 percent lower, but that result also wasn’t significant. Lucerne owners tend to be older than most drivers, and driver age seems to make a big difference in the effectiveness of parking sensors. When Cicchino looked at the Lucerne and the Mercedes-Benz vehicles together, she found the sensors reduced crashes by 36 percent for drivers 70 and older while having virtually no effect for younger drivers. “Judging distances becomes more difficult with age, so that could make sensors useful to older drivers in a different way from the increased visibility provided by cameras,” Cicchino says. Rear automatic braking could provide an even greater benefit. Unlike the parking sensors studied, which issue warnings when the vehicle gets too close to a vehicle or other object, it doesn’t depend on driver response to be effective. IIHS research on front crash prevention has found that systems with autobrake cut more crashes than systems that only issue warnings.

A limitation of the new study is that many minor backing crashes aren’t reported to police because they involve only a single vehicle and often occur in driveways or parking lots. Most of the crashes in the study involved one vehicle backing into another and therefore might not be representative of backing crashes in general. HLDI studies of insurance losses have shown that both rearview cameras and rear parking sensors reduce claim rates for damage to other vehicles. These effects are smaller and not as robust as the benefits identified in the latest IIHS study. That’s because the HLDI analyses include all types of crashes, not just backing collisions, which make up a small percentage of the total.

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ASA Midwest Presents 2016 VISION South of the Border by Chasidy Rae Sisk

On November 10-14, automotive service industry professionals traveled to Riviera Maya, Mexico for the 2016 VISION South of the Border educational and networking event. Attendees received vital industry training while enjoying networking opportunities and plenty of time for exploration and relaxation. Guests began their adventure on Thursday evening with a welcome party. Friday and Saturday mornings were filled with management and technical training sessions, while afternoons were left free for excursions. Management training was presented by Jeremy O’Neal, and Scot Manna headed up the technical training sessions. VISION South of the Border 2016 concluded with a farewell party on Sunday evening, November 13. More information can be found at www.visionsouthoftheborder.com.

www.autobodynews.com CHECK IT OUT! Continued from Page 40

Animal Art

but I also had to fabricate a few to bring it all together.” Miller’s fish sculptures require a To advertise lot of time to make, and he eventually call Advertising Sales at: wants to take his art to another level. 800-699-8251 “My goal is to set up a studio and pro-

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duce more of them,” Miller said. www.autobodynews.com “Each piece is like a huge puzzle and I never want to force it. I lay out the parts, but I always carefully look at them before I start welding. They take an average of 30 to 40 hours each to

ASA Provides Access to LegalShield for Legal Assistance, Identity Theft Protection The Automotive Service Association (ASA) recently announced that it has joined forces with LegalShield as its latest Sponsored Benefit Provider. According to a statement from the ASA, LegalShield can help your facility and its employees with any legal matter, from legal consultation and contract reviews to debt collection and more. Since a law firm is prepaid through LegalShield, its sole focus is serving, rather than billing. This allows ASA members to get the level of legal protection their companies need and provides the peace of mind they desire. Small businesses have big business problems without big business resources. LegalShield gives facilities like yours big business resources on a small business budget. Eric Morton, of LegalShield, is excited about partnering with ASA to offer this new service to its members. “Our plans provide an invaluable service,” he said. “They offer peace of mind in an otherwise hectic world. When a legal matter arises, or if you believe your identity may have been stolen, you are just one call away from vetted professionals who are ready and willing to help you resolve any concern or need you have. The majority of adults in the United States do The source for timely

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a profession would be a big step.” Call for details! CALL 800-699-8251 Monetizing his artwork got a huge boost when Miller was recently 800-699-8251 hired by Bass Pro Shops at their headMail Subscription quarters in Springfield, MO, as a metal technician to build retail displays and other metal items for the company’s 90 North American locations. It’s a dream job, and soon his fish sculptures will likely play a role in his new job, he said. “I fabricate things Register like retail Your Email for Our racks, special railings and I am also doing a series of more realistic-lookRight Part. Right Price. Right Now. ing fish for Bass Pro Shops. They www.autobodynews.com hired me in September, so I am still learning and growing in this position.” With his new career as an artist So. California Idaho and a metal technician for Bass Pro Register Shops, does that mean collision repair Your Email for Our is now in Miller’s rear view mirror? 4 have Times MonthlyNAN E-Newsletter NUYS BOISE “Absolutely,” he said. “I never to do collision repair ever again, unless I 818-778-2005 208-672-3402 www.autobodynews.com want to. Yes, I still have deadlines in 818-778-2090 Fax this job, but they’re not as crazy as the www.galpin.com ones I encountered in the body shops I have worked for. I want to use my creativity now in different ways. In collision repair, you return cars back to their previous condition, but in this role, I am creating things from scratch, Trust your order to the collision parts specialists at these fine Dealers and that is why I love it!”

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“Mopar Road Ready Powered by Dodge” Teen Safe-Driving Program Begins The “Mopar Road Ready Powered by Dodge” teen safe-driving program made its first stop in Texas, at the Circuit of The Americas facility in Austin on December 3rd and 4th. More than 3,000 teens and their parents—who are also eligible to participate in the program along with

their children—have learned safe and defensive driving techniques through “Mopar Road Ready Powered by Dodge” training. “Mopar Road Ready Powered by Dodge” classes are free of charge to registered teens and their parents or guardians. A $99 refundable registration deposit is required to secure a spot. The program is in its third year. “Mopar Road Ready Powered by Dodge” is aided by a collaboration with the National Hot Rod Association (NHRA) Motorsports Museum and B.R.A.K.E.S. (Be Responsible And Keep Everyone Safe), two nationally recognized non-profit 501(c)3 organizations that share similar missions of

promoting the importance of safe and responsible driving. “The Dodge brand wants all drivers to experience that visceral feeling that makes them fall in love with driving, and that includes making sure they feel comfortable in all driving situations,” said Tim Kuniskis, Head of Passenger Car Brands – Dodge, SRT, Chrysler and FIAT, FCA – North America. “The ‘Mopar Road Ready Powered by Dodge’ program gives new teen drivers the opportunity to learn important driving skills, gain valuable experience behind the wheel and fall in love with driving in the process.” The advanced driving program, designed to teach safe and defensive driving techniques, is available to teens between the ages of 15-19 with a learner’s permit or driver’s license and at least 30 hours of driving experience. Participants will benefit from a proven curriculum and skilled highcaliber instructors provided by the B.R.A.K.E.S. organization. It incorporates both classroom education and hands-on training with a 3:1 studentto-instructor ratio, allowing for quality time with each teen. Each teen driver’s participation in the training

program will include a companion experience for a parent or adult guardian who also will actively take part. “Mopar Road Ready Powered by Dodge” sessions provide a brief classroom review of core driving topics, including proper seat positioning, hand positioning and basic vehicle dynamics. Advanced behind-the-wheel training will then be provided to teens through a variety of on-track course modules, such as accident avoidance, distraction, panic stop, wheel drop and wet skid pad. The “Mopar Road Ready Powered by Dodge” program will continue its 2016-2017 slate of events with stops in Phoenix on March 3-4; Englishtown, New Jersey, on April 22-23; Metro Detroit on May 6-7; and Sarasota/Bradenton in Florida on May 20-21.

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Retro News

insurance regulation does not come with duplicative or layered regulatory requirements.” In letters to the FIO, both Liberty Mutual and the Property Casualty Insurers Association say federal involvement is needed to combat increasingly tough requirements by European governments for financial firms doing business internationally. – As reported in CRASH Network (www.CrashNetwork.com), January 2, 2012. Five years later, within weeks of last November’s election, the National Association of Professional Insurance Agents (PIA) called on the Trump administration and Republicancontrolled Congress to scrap the FIO. “With Congress poised to significantly roll back key provisions of the DoddFrank Wall Street Reform and Consumer Protection Act, we ask that they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.”

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Cam Miller Wins SEMA Battle of the Builders Cam Miller, working out of his shop HS Customs in Logan, Utah, took the big prize at the recent SEMA show in Las Vegas, claiming the prestigious

2016 Battle of the Builders award with a PPG-painted brilliant white 1969 Camaro. The award is a major part of the annual SEMA event and was announced Nov. 4 at the Las Vegas Convention Center. The Camaro, owned by Alex Short of Bluffdale, Utah, and dubbed “Under Pressure,” was painted exclusively with PPG refinish products. HS Customs painter Cort Sessions gave the car its gleaming finish using PPG’s DELTRON® DBC2000 Basecoat, GLOBAL REFINISH SYSTEM™ D8188 Glamor LV Clearcoat and custom mixes along with other Deltron, VIBRANCE COLLECTION® and ENVIROBASE® High Performance products. “Winning the Battle of the Builders is obviously a huge honor,” said

Miller. “I am humbled, relieved and excited that all our hard work has paid off. And I am grateful for all the wonderful technical support and guidance we received from PPG. Their team of experts made a huge difference.” Cristina Fronzaglia-Murray, PPG manager, marketing communications responded, “We’re as excited as Cam about this win. We’re constantly impressed with what our customers can do using our products. Supporting

started with 250 vehicles entered by elite car and truck customizers. Industry notables David Freiburger, executive producer, TEN: The Enthusiast Network; Fred Williams, editor-atlarge, Petersen’s 4-Wheel & Off Road; and RJ de Vera, customer engagement leader, Meguiar’s, Inc., served as the competition’s judges. The Camaro’s lustrous paint and style caught their eyes as they winnowed the field down to 10 finalists. The finalists then judged each other’s work and voted to determine the winner of the 2016 SEMA Battle of the Builders. The Camaro was no stranger to tough competition. Miller unveiled the car at the Detroit Autorama. It then went on to win Utah’s Finest at the Salt Lake City Autorama, finished in the 2016 SEMA Battle of the Builders winner “Under Pressure” top five for Street Machine Cam and seeing his imagination un- of the Year at the PPG-Goodguys leashed is its own reward. Under Pres- event in Columbus, Ohio, and took sure is an awesome car.” the Builders Choice award at the The Battle of the Builders com- Goodguys event in Loveland, Colo. It petition is open only to vehicles on ex- was also a finalist in the Hot August hibit at the SEMA Show and attracts Nights Cup contest in Reno this sumthe best builders in the country who mer. come to SEMA to display their talent For more information, visit www and creativity. This year’s competition .ppgrefinish.com.

Hyundai Selects OEC for Collision Parts Ordering and Fulfillment

OEConnection LLC (OEC), the parts ecommerce technology leader for original equipment manufacturers’ (OEM) distribution networks, announced today that Hyundai Motor America has added CollisionLink to its Hyundai Go Genuine Collision Conquest program.

Continued from Page 28

crease their OE part sales while also improving order processing efficiency and customer satisfaction.” Hyundai represents the twentysecond automotive dealer network in North America to use CollisionLink to facilitate their parts marketing program. With the addition of

Veterans Day

This year, Mike’s Auto Body partnered with the Vintage Valley Blue Star Moms of Solano County, Travis AFB and GEICO Insurance during Veteran’s Day. Special recognition goes to the Travis AFB and Family; Readiness Center; Travis Regional Armed Forces Committee; Vanden High School Jazz Band—Director Nicholas Cagle; Recycled Rides; IAA and Pink Heals of Solano County— Natalie Zell. Special thanks to Mike’s employees: Metal Technician Sheldon Ludlow, Paint Technician Thomas Wilson, Managers Missy Trolinder and Tony Castagnetto and the rest of the crew at the Fairfield location for helping to refurbish the vehicle. Thanks also go to Dean’s Auto Radiators, Pacific Rims, Enterprise, Napa Auto Parts, Enterprise, Lexus of Concord, Ron Dupratt Ford, Good Guys Gen, Fairfield Tire Center, Dan’s Glass, MAB Towing, Big Discount Tire Pros and Hertz for donating parts and time to make the car just like new.

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The CollisionLink parts ordering and fulfillment solution will allow Hyundai’s network of dealers to access competitive pricing on eligible OE parts and expand their market penetration in the U.S. By the end of the first quarter, 2017, Hyundai dealers will have access to the Hyundai Go Genuine Collision Conquest program via CollisionLink. “We are excited to bring Hyundai on board and to assist with the Hyundai Go Genuine Collision Conquest program,” said Bill Lopez, OEC vice president & general manager, Collision. “With our CollisionLink solution, Hyundai dealers can compete more effectively and in-

Hyundai, 99% of all consumer vehicles on the road in the U.S. are now supported by CollisionLink, and OEM parts marketing programs managed through CollisionLink now cover 3 out of every 4 U.S. consumer vehicles on the road. “CollisionLink is the missing puzzle piece. It will give us more complete coverage in the market,” said Frank Ferrara, executive vice president, Customer Satisfaction, Hyundai Motor America. “It will allow our dealers to offer their customers more competitive pricing and sell more Hyundai OE parts.” For more information, visit www .oeconnection.com.

60 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | JANUARY 2017 AUTOBODY NEWS 61

Axalta Coating Systems Introduces Voltatex® 7145A and Alesta® BK08 20 Gloss

Axalta Coating Systems recently introduced Voltatex® 7145A, a new generation of its THEIC-modified polyester wire enamel series. According to the company, the new product offers improved application on both horizontal and vertical application lines as well as on high-speed enameling machines. Voltatex 7145A is suitable for magnet wires used in everything from electrical motors, pump motors and refrigeration equipment, to transformers and ballasts for fluorescent lamps. “The advanced properties of Voltatex 7145A make a difference for our partners in the magnet wire industry,” said Andreas Vendler, Global Product Manager for Axalta’s Energy Solutions business. “Conductors coated with Voltatex 7145A and polyamide-imide (PAI) added as a top coat combine to provide high thermal stability, excellent mechanical properties, good chemical resistance and a high level of flexibility with outstanding application properties.” The new wire enamel can be applied by both convection and recirculation air ovens and is also formulated for application on dies. It is

approved and listed by Underwriters Laboratories (UL). The company also recently introduced Alesta® BK08 20 Gloss, a new semi-matte powder coating designed to offer an extremely smooth appearance while providing exceptional weatherability on a variety of surfaces.

“Our customers have requested a very smooth, low gloss polyester, which exhibits a consistent appearance and affords excellent abrasion and corrosion resistant properties,” said Craig Dietz, Axalta Market Product Manager. “The addition of this product illustrates our commitment to meeting our customers’ needs.” Additionally, Axalta Coating Systems recently celebrated the sale of its 40,000th spectrophotometer at the Specialty Equipment Market As-

Collision Repair Education Foundation Requests Year-End Product Donations, Safety Kit Sponsorship

The Collision Repair Education Foundation is requesting year-end in-kind donations of products, tools, equipment and spare parts that will be distributed to high school and college collision school programs. These taxdeductible donations will provide a great start to the spring school semesters during a time when instructors are facing limited program budgets and expected to graduate well-trained and productive entry-level staff for industry employment. Another year-end opportunity for support includes companies sponsoring student safety kits for local high school and college collision programs. For $50 per student, each safety kit includes a Cintas work shirt, work pants, safety glasses, ear plugs, and a disposable dust mask. Companies that sponsor at least (10) safety kits will have their corporate logo added to the work shirts, that the students would proudly wear around the school and local community. The Collision Repair Education Foundation would arrange a time for the sponsoring companies to present the safety kits to the local collision school students when they begin their spring school semester after the New Year.

Collision Repair Education Foundation director of development Brandon Eckenrode noted, “The holidays would come early to collision school instructors with local industry companies donating products, tools, equipment, and spare parts for their programs. Also, we have heard that the student safety kits transformed both the professional appearance and attitudes of the collision students as they look and feel like working professionals within the industry. Plus, as companies can sponsor these safety kits for collision school programs near them, they can directly see how their support is making a difference and can personally hand these kits out to the students at the beginning of the spring semester. We invite the industry to help the Education Foundation end the year on a strong note and getting in contact with us on either of these two year-end opportunities.” Industry members interested in making year-end product donations and/or sponsoring collision student safety kits for local high school and college collision school programs should contact Eckenrode at Brandon .Eckenrode@ed-foundation.org or 847463-5244.

62 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

sociation tradeshow in Las Vegas, Nevada. Mike Carr, Axalta President – North America and Michael Gogoel, BYK-Gardner USA President, unveiled a commemorative Acquire™ Plus EFX spectrophotometer painted in Axalta’s North American Automotive Color of the Year 2016 – Brilliant Blue. BYK-Gardner, a global leader in the field of measuring color and appearance and testing physical properties of plastic, coatings and cosmetics, manufactures Axalta’s spectrophotometers. “We’re proud to have worked with Axalta for many years to develop industry leading technologies that create value for Axalta and its customers,” said Gogoel. “By using Axalta color matching solutions, body shops have less rework and higher throughput, and the car owner gets a repair that is a perfect color match. We look forward to continuing our partnership with Axalta, and working together to develop new generations of color matching solutions that continuously improve profitability and customer satisfaction.” For more information, visit www .axalta.us/powder.

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IGONC Learns CPR by Chasidy Rae Sisk

On November 17, the Triangle Chapter of the Independent Garage Owners of North Carolina (IGONC) came together for a CPR class organized by Dean Bailey, chapter president, at a local community center. Bob Pulverenti, Executive Director of IGONC, states, “Our members felt it would be a great asset to have staff members who were certified in CPR at their garages in case an emergency ever arises.” Attendees earned their American Heart Association CPR certification while enjoying pizza and sweets with their peers. IGONC hosted this training session as part of their ongoing efforts to help association members stay current and competitive. According to Pulverenti, “I think everyone left feeling really good about themselves for having learned something that could benefit them both professionally and personally.”

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Collision Repair Education Foundation and AkzoNobel Announce Winners of Sustainability Challenge Grant The Collision Repair Education Foundation (CREF), in collaboration with AkzoNobel Vehicle Refinishes North America, has announced the five schools being recognized for efforts to advance sustainability within their respective automotive and collision repair programs. As a result of combined student teams and faculty

cation Foundation’s annual industry reception at SEMA. The recipients include:

Freedom High School (Freedom, WI)

Minot High School-Magic City Campus (Minot, ND)

Continued from Page 55

NE Labor Rates

goat, drawing attention away from the 300 pound Gorilla in the room. We are not fooled that the easiest entity to short change in order to recover the losses they face are the body shops.” State Farm’s decision should also raise concerns amongst consumers. “The average consumer has no chance at an insurer playing fair with them. The average consumer has no chance at a fair result.” Orso continued, “State Farm customers should be paying attention and talking to an independent agent because this company’s philosophy should be a big concern to every policyholder. Wide-spread cancellations need to happen. Maybe that’s what they want: to lessen exposure.” This battle is just beginning, but industry advocates are still determining the best course of action. Charles Bryant, Executive Director of AASP/ NJ, promised association members, “The AASP/NJ will not sit back and allow this type of beaten abuse to be inflicted on our members. We are working diligently to determine the best The source for timely avenue to address this issue.”

applaud AkzoNobel for involving the students and schools in such an important topic.” The program, initiated by AkzoNobel in an effort to support one of the core principles of the global

Norwalk High School (Norwalk, CA)

Steel Center AVTS (Jefferson Hills, PA)

derived submittals, each school will receive funds from the Sustainability Education Challenge Grant to implement their proposals and report on the success of their project. Schools from around the country submitted applications for this grant. Applications were evaluated by the Collision Repair Education Foundation Selection Committee on the ability to expand awareness of sustainability, advance continuous improvement, and create a positive impact within the local community. The recipients were announced at the Collision Repair Edu-

Thomas Edison CTE High School (Jamaica, NY)

Clark Plucinski, executive director of the Collision Repair Education Foundation, stated, “We are very proud to partner for the third year with AkzoNobel on the Sustainability Challenge Grant. Students—who will be the future of the collision industry—need to be informed and engaged on the topic of sustainability. While they are still in school is the best time to start the conversation, as it will be an important one for the industry and for the entire planet. We

corporation, was introduced in 2014. According to the company, the goal was to create awareness and educate students—with intentions of seeking careers within the collision repair industry—on the growing global imperative of sustainability and its ability to make a positive impact in all facets of life today and, more importantly, for the future.

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U.S. House Subcommittees Hold Hearing on Connected Devices On Nov. 16, the U.S. House Committee on Energy and Commerce’s Subcommittee on Communications and Technology, along with the Subcommittee on Commerce, Manufacturing and Trade held a joint hearing titled, “Understanding the Role of Connected Devices in Recent Cyber Attacks.” The hearing addressed the distributed denial-of-service cyberattack that occurred Oct. 21 and continued the Committee’s series on emerging technologies. Witnesses included: -Dale Drew, senior vice president, chief security officer, Level 3 Communications

-Kevin Fu, CEO, Virta Labs, and associate professor, Department of Electrical Engineering and Computer Science, University of Michigan -Bruce Schneier, adjunct lecturer, Kennedy School of Government, Harvard University, and Fellow

During the hearing, members and witnesses alike discussed the opportunities and threats posed by connected devices. Schneier reminded the com-

mittee that the term “computer security” now equates to “everything security.” He also warned against the inclination of issuing one-size-fitsall legislation. Schneier said, “If we want to secure our increasingly computerized and connected world, we need more government involvement in the security of the ‘Internet of Things’ and increased regulation of what are now critical and life-threatening technologies. It’s no longer a question of if, it’s a question of when. The Internet now affects the world in a direct physical manner. The Internet of Things is bringing computerization and connectivity to many tens of millions of devices worldwide. We are connecting cars, drones, medical devices and home thermostats. What was once benign is now dangerous.” Rep. Anna Eshoo, D-Calif.— ranking member of the Communications and Technology Subcommittee—agreed with Schneier and said, “The Internet of Things offers great potential for innovation, but recent attacks raise troubling questions about the security of Internet-enabled devices and their potential to be used as weapons by cyber attackers.” Eshoo also suggested incorporating cybersecurity guidance into

PartsTrader® and Fix Auto USA Agree on Parts Sourcing and Ordering

Fix Auto USA has signed an agreement for PartsTrader to be a recommended partner. PartsTrader’s platform will now be leveraged by Fix Auto’s independently owned and operated body shops for the direct benefit of their insurance carrier and vehicle owner customers. “Collision repair facilities using the PartsTrader platform to search and compare for parts within their mar-

ketplace can access more competitive quotes and significantly reduce their return rates,” said PartsTrader CEO Rob Cooper. “Fix Auto owner-operators will not only gain margin on parts purchases, benefit from accurate parts shipments, and improve their shop’s bottom line, they’ll be able to deliver increased value to their insurance partners by reducing cycle time, improving severity, and ultimately delivering a better experience to vehicle owner customers.” According to the company, with

increasing utilization of the Parts Trader platform, Fix Auto will begin to see greater efficiencies emerge as the workflow is standardized across the network. Fix Auto locations will gain access to PartsTrader’s supplier network as well as data analytics based on actual quotes and orders in a body shop’s specific market. This information is updated each time a parts-related transaction occurs and can be used by members as factual documentation to support purchases. “Entering into a partnership with PartsTrader is exciting since it allows our Franchise Locations continued operational improvements and our customers the opportunity to realize these efficiencies,” said Fix Auto president and COO Paul Gange. “Fix Auto is committed to help members succeed by making available to them the best possible tools and the PartsTrader suite stands as the latest example of that commitment.” For more information, visit partstrader.us.com. or www.fixauto usa.com.

64 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

national infrastructure legislation. Despite differing opinions on the methodology, members from both parties agreed that the security of connected devices must remain a priority. Members and witnesses were largely in agreement about the need for targeted security regulation. However, Republican members of the subcommittees stopped short of endorsing a new, dedicated agency. The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. For more information, visit www .ASAshop.org or visit ASA’s legislative website at www.TakingTheHill .com.

Gerber Collision & Glass Opens Repair Locations in FL Gerber Collision & Glass has announced the December 6, 2016 opening of three collision repair centers in Florida. The centers are located in Crestview, Fort Walton Beach, and Panama City Beach and previously operated as Factory Spec Collision Centers.

“These centers are great additions to our portfolio, as they strengthen our presence in the northwest region of Florida and complement our locations in Tallahassee and the New Orleans area,” said Tim O’Day, president and COO of Gerber Collision & Glass. “We have established a leadership position in collision repair in Florida and intend to build on this to best serve our insurance partners and ensure the Gerber brand of professional and friendly service is available throughout Florida.”

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Larry Montanez Plays Devil’s Advocate on NE Labor Rates, Citing Consumer Contract and Lack of Complaints Regarding Other Insurers

by Chasidy Rae Sisk

Many collision repair industry professionals have taken up arms in reaction to State Farm’s decision to lower labor rates in parts of NJ and NY, but amidst the outrage, a very recognizable voice is strangely absent. Industry advocate Larry Montanez of P & L Consultants has taken a contrarian stance on this situation as he appeals to the industry to consider what he thinks is a more logical approach. Montanez says, “State Farm is lowering labor rates to what they consider to be a reasonable amount based on what they say is their market research. Conversely, they did originally claim that their extensive market rate survey is what placed their labor rate at $65, and now a bunch of shops are crying foul as State Farm decreased their labor rate from $65 per hour to $50 per hour, because that’s what other insurance companies pay shops for the same work, but the shop’s contract is with the consumer, not the insurer. State Farm is a third party that has no control over what the body shop charges as a rate.”

“It’s a nothing story,” Montanez insists, reminding shops, “You are supposed to charge your posted rate, and if you’re doing that, you are probably already suing all the other insurance companies for their suppressed labor rates and unwillingness to pay anyway so there’s no difference in what State Farm is doing.” One big question Montanez asks is “How can you (any shop) complain about State Farm reducing their labor rate if you aren’t upset enough to sue other insurers for the same thing? It makes no sense, and a jury is not going to find in your favor—unless you’ve been suing for suppressed labor rates, you’ve got no leg to stand on!” Many of the shops that Montanez consults with charge their customers their posted rates which can range from $75 to $175 per hour for labor, depending on the type of operation, so this has no impact on how they do business. “State Farm has decided they belong at the same rate as everyone else is accepting. Basically, they gave many shops a gift by paying $65 an hour, but according to some financial experts for repair professionals, it was still short, and now

almost everyone is whining that they took the gift away. We as an industry need to condemn them all for doing the same things, not just complain about one, or it is smarter to keep our mouths shut so we don’t sound foolish!” Although Montanez may be the most forceful voice behind this logic, he is not the only industry professional who noticed that State Farm’s decision can be at least partially blamed on the shops themselves. When one industry publication printed this story online, there were a handful of people who pointed out the invalidity of their peers’ outrage. Names referenced are screen names. Ernie wrote, “I don’t pay attention to the pigeonholes insurance companies try to force us into. I’ll use estimating platforms to estimate but not to invoice. My bill is an accurate invoice for what is owed. I don’t care how the insurance company has to reinterpret my invoice—I just focus on the bottom line... More often than not, State Farm will pay as long as you are doing what you are invoicing for.” Matertech noted, “I see the prob-

lem as the shops themselves unfortunately. I don’t think they should complain about a decrease when they had already been accepting less ($16 per hour less) from other insurers. You have to know that State Farm would figure that out through subjugation and data mining the shop’s own estimating data.” Pete Suszczynski agreed, “Not playing devil’s advocate, but the same shops are repairing vehicles happily at GEICO and other insurance companies’ labor rates which is what State Farm dropped to. Maybe it’s the repairers’ fault as well.” Montanez believes, “They’re arguing the wrong thing! Why weren’t these shops suing other insurance companies for paying less than State Farm? Now, they’re crying because they lost a more reasonable rate from one company that they didn’t hold others to. Now, they have to work hard to obtain what is needed to operate their businesses instead of working smart by holding everyone accountable. They need to handle this the right way, but they don’t actually want to make a difference. If you will See Devil’s Advocate, Page 67

CRASH Network Launches “Insurer Report Card”

Collision repair professionals now have a unique opportunity to grade the performance of the insurance companies in their state with the launch of CRASH Network’s “Insurer Report Card.” “Insurer rankings based on surveys of consumers offer one, somewhat limited perspective on those companies’ performances,” John Yoswick of CRASH Network said. “Those consumers on average have an auto claim once a decade. But shop owners, managers and estimators interact with these companies every day. No one else is in a better position to know which insurers demonstrate an understanding of, and commitment to, quality repair for their customers. We think consumers should know that, too.” The “Insurer Report Card” gives collision repairers the ability to share their unique insight by grading each insurer based on how well those carriers’ policies and practices ensure quality repairs and customer service. By giving the insurers a grade from “A+” to an “F,” shops can help CRASH Network bring this information to consumers so they know which insurers will treat them the best—and which may have some room for improvement—when they have a claim.

“Because each state has a different mix of insurers, the Report Card allows repairers to grade insurers specific to their state,” Yoswick said. “To my knowledge, that makes this different than anything done before on a national basis. We will be collecting data on more than 120 different insurers across the country, not just the usual ‘Top 10.’ We want consumers to know, for example, if some smaller, regional insurer that may not run ads on TV constantly is really great at taking care of its customers so that drivers may consider that at renewal time.” The “Insurer Report Card,” open only to collision repairers, can be completed in as little as three minutes (though shops also have an opportunity to spend additional time to explain why they gave each insurer the grade they did), and all individual shop identification information will remain confidential. Shops that complete the Report Card and provide optional contact information will be sent results at no charge once they are compiled. Shops can click here (www.Crash Network.com/irc) to grade the insurers. For more information about the weekly CRASH Network bulletin, visit www.CrashNetwork.com.

66 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com

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Continued from Page 66

Devil’s Advocate

accept what the other insurance companies will give you, how can you complain about State Farm paying the same? This industry needs to step up and fight against all insurance companies who aren’t paying fair labor rates, or just suck it up and do what the insurance companies want! The problem is that most shops do not know what their hourly operating costs are or what a technician costs them per hour to work at their shop.” See related story on p. 31 of this issue.

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Sherwin-Williams Automotive Finishes 2017 First Quarter Training Schedule Announced

Sherwin-Williams Automotive Finishes has announced its first quarter training schedule starting January 23, 2017 through March 20, 2017 to be held at its training centers across the country.

According to the company, these training sessions provide participants with the skills needed to succeed in the automotive collision repair industry. Shop owners, managers and painters will learn through a combination of classroom, web and hands-on training settings. The following courses will be offered during the first quarter of 2017: ● Painter Certification

● Color Adjustment and Blending

● AWX Performance Plus™ Waterborne Refinish System Painter Certification

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● Ultra 7000® Refinish System Painter Certification

“As a shop owner, you want to be the source where customers come for expert and timely repairs, while still maximizing profitability by getting vehicles through the facility in a highly efficient manner,” said Rod

Sherwin-Williams Automotive Finishes 2017 First Quarter Training Schedule

Habel, Sherwin-Williams Automotive Finishes Director of Training Operations. “Sherwin-Williams understands that it takes more than just great paint to maximize the potential

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WIN Announces 2017 Educational Conference Location The Women’s Industry Network has announced that the 2017 Educational Conference is scheduled to take place in Denver, CO Monday, May 8th through Wednesday, May 10th, 2017.

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of any shop. That’s why we offer courses for owners and their employees to gain the additional knowledge required to be successful in this everchanging industry.” Further details regarding the 2017 first quarter schedule for training centers, dates, specific course descriptions and locations, are listed below:

The Westin Denver Downtown hotel has been selected to host the event. Located in the vibrant LoDo District, the venue will provide plenty of opportunities for attendees to experience many offerings of the Mile-High City. “Last year, we enjoyed our highest number of attendees at the conference,” stated Wendy Rogers, Co-Chair of the Conference Planning Committee. “With this exciting venue in Denver, we hope to exceed that number.” In addition to the professional development programming, the Educational Conference will once again feature the Most Influential Women (MIW) and scholarship awards as part of the celebratory

gala dinner, as well as the Annual Scholarship Walk fundraiser. Program specifics will be published as they become available. “The 2017 WIN Educational Conference marks the 11th year of successful collaborations among WIN volunteers, members and sponsors,” stated Petra Schroeder, who serves as WIN’s Chair. “Our goal is always to provide the WIN membership and the collision industry a highly professional educational experience centered on professional networking, advancing business acumen and growing collision industry connections. It’s exciting to see the plans underway by WIN member volunteers to deliver quality conference content, honor women in the industry, and connect WIN members.”

For more information about the Conference, MIW nominations and scholarship applications, visit www .womensindustrynetwork.com.

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DOT Says All Electric Vehicles Need to Make Noise The US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced recently that electric and hybrid cars will need to emit a sound at up to 19 mph in order to protect pedestrians. The soundemitting device will need to be in all new electric and hybrid cars manufactured starting in September 2019. A ruling on this issue has been in the works since 2013, when the NHTSA estimated that the odds of an electric or hybrid vehicle being involved in a crash with a pedestrian are 19 percent higher compared with a louder gas-powered vehicle.

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Autologic Enters into Licensing Agreement with Volvo for Diagnostic Data Autologic Diagnostics, the provider of the world’s first and only fully integrated cloud-connected vehicle diagnostic support solution, has announced that it has entered into a licensing agreement with Volvo Car Corporation. Under the agreement, Autologic will have direct access to Volvo diagnostic data and technical information, enabling the provision of a comprehensive repair and maintenance on models from 2000 to current year to date through Autologic’s Assist cloudbased, fully integrated diagnostic solution. The licensing agreement, which covers the United Kingdom, North America, Canada, and the European Economic Area (EEA), will provide customers within these territories the benefit of receiving guaranteed genuine Volvo data, thus ensuring improved aftermarket continuity of safe, accurate and effective repairs. According to the company, Autologic Assist’s suite of capabilities uses state-of-art technology to combine a superior diagnostic (AssistPlus) device with real-time access to

its award-winning Fault 2 Fix Team of dealer-trained Master Technicians providing vehicle diagnostic support. Autologic Assist simultaneously integrates expert knowledge and service, innovative software and a multi-faceted touch screen device, helping ensure that vehicle issues are diagnosed correctly the first time. “The arrival of Volvo data coincides with the adoption of our new centralized Autologic knowledge database (ADX), which has been developed specifically to secure VM licensed data and repair and maintenance information (RMI),” explained Mark Stamp, Autologic chief technology officer. “The licensed Volvo package will be available in January 2017 for customers to download directly to their AssistPlus device, ensuring that independent repair shops gain access to the latest validated information as provided to dealers. The Volvo data will feature heavily in the new customer journey, on a seamless route to gain accurate, secure, and safe diagnostic information, with access to our award-winning Fault 2 Fix Team pro-

National Auto Body Council Awards Recognize Individuals Who Exemplify Professionalism and Integrity of Collision Industry

Three industry professionals whose exemplary efforts and actions in 2016 best illustrate the vision and mission of the National Auto Body Council (NABC) were recognized recently at SEMA with the organization’s prestigious Award of Distinction, Body Shop Image Award, and Excellence in Community Service Award. According to the Council, the goal of the NABC awards is to recognize auto body shops and individuals that exemplify the professionalism and integrity of the collision industry. ● The Award of Distinction, presented to Gerald Wicklund of CARSTAR Wicklunds Collision in Liberty, Missouri, celebrates selfless acts by collision industry professionals that benefit others in their communities. Wickland has spent his entire life in collision repair and dedicated much of his time giving back to both the industry and his community. For the past 10 years, he has hosted an annual Military Appreciation Celebration, an extravaganza which includes dinner and a complete USO-style show. More than 130 veterans, active duty service members, law enforcement and first responders attended this year’s event, which also raised donations for Honor

Flight, a non-profit organization that honors America’s veterans by transporting them to Washington DC to visit and reflect at their memorials. ● The Body Shop Image Award, presented to CARSTAR Macon in Georgia, highlights facilities that have had a beneficial impact on their communities through building and design improvements.

In May, CARSTAR Macon moved into a new state-of-the-art facility and rebranded its business. Formerly known as CARSTAR Preferred Collision, shop owner Walter Lee upgraded from an 8,500 sq. ft. facility to a modern 23,000 sq. ft. building that showcases the sophistication of today’s body shops. The shop features a larger, up-to-date production area and convenient, spacious reception area while retaining the shop’s warm, welcoming feel. ● The Excellence in Community Service Award, presented to Kathy Mello of TGIF Body Inc. in Fremont,

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California, recognizes outstanding charitable efforts and volunteerism. Mello’s past and current volunteerism includes mentoring at-risk youth and disabled adults at Kainos Home Training Center and Bridges Intervention Services, serving on the boards of the Alameda County Work Investment as a volunteer in one of the business seats and the Regional Occupational Centers in Mission Valley, Eden & Alameda College. Her volunteerism extends in to the collision repair industry, serving on the Boards of WIN, the California Autobody Association, East Bay Chapter of the California Autobody Association and as a founding member of the Assured Performance Co-op Board. “Each of these award winners have made a positive impact in our collision industry and in their communities,” said Marie Peevy, NABC Awards Chair. “It was an honor to recognize this elite group of industry leaders who embody the spirit and ideals of each of NABC’s awards categories. Their efforts are wonderful examples of how our auto body shops and collision industry professionals are making a positive difference in local communities across the country.”

viding Vehicle Diagnostic Support.” The new agreement displays a significant investment by Autologic as it moves towards developing stronger direct relationships with vehicle manufacturers for the provision of genuine data. Jeremy Fry, Autologic chief executive officer, added, “As the only provider of a cloud-based, vehicle-connected, fault-to fix-solution, we have been vocal in advising the aftermarket sector of the momentous changes and challenges ahead, based on, among other industry influences, the Right to Repair Act, which requires vehicle manufacturers to provide the same information to independent repair shops as they do for dealers. The considerable investment in licensed data, by Autologic, accentuates our strategy for ensuring aftermarket repair shops can, through Autologic, easily access accurate data and expert vehicle diagnostic support, so that ultimately, they can find faults and fix cars faster. The Volvo agreement further cements our pioneering vision for aftermarket diagnostics.” For more information, visit www .autologic.com.

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FinishMaster Acquires Autobody Supply Co. CHECK IT OUT!

FinishMaster, Inc., a subsidiary of Uni-Select Inc., has announced that it has completed the acquisition of substantially all of the assets of Autobody Supply Company, Inc. This acquisiToFinishMaster’s advertise footprint tion increases with theAdvertising addition of 9 locations cencall Salesinat: tral and southwestern OH, including 800-699-8251 Columbus, a top 30 US metropolitan area. Since itse-mail: founding in 1959, ABS has been a family-owned business foadvertising@autobodynews.com cused on discovering the needs of body shops through partnership and open diwww.autobodynews.com alogue. ABS provides comprehensive solutions for their customers including products, services, and full support of equipment sales, maintenance, installation, and repair. “We are excited to welcome more than 60 new team members who share our value of partnership and unparalleled service,” stated Steve Arndt, president and chief officer of FinBe Seen byoperating Our Readers! ishMaster. “Together, we will continue to CALL Sales at: support our Advertising customers by generating outstanding value through innovative solutions.” “In addition to bringing further expertise and knowledge to our growadvertising@autobodynews.com ing team, this acquisition expands our coverage in order to better serve cuswww.autobodynews.com tomers in a key Ohio market,” added Henry Buckley, president and chief executive officer of Uni-Select.

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Crashmax Takes Home 2nd Consecutive Sales Leader Award

Crashmax was named VSG Collision Sales Leader for the second consecutive year at Chief’s annual distributor meeting on Oct. 31 in Las Vegas. Interstate Marketing was recognized for

Chief distributor Crashmax has earned the VSG Collision Sales Leader Award for the second year in a row. Accepting the award at Chief’s annual distributor meeting on Oct. 31 were Gary and Ann Schaberg. From left to right, John Cardell, Chief Eastern Division sales manager, Gary Schaberg, Ann Schaberg, and Mike Cranfill, vice president of global collision and new business development for Vehicle Service Group (VSG)

the highest percentage sales growth from 2014 to 2015. Professional Collision Equipment, serving New Mexico and Texas, was honored with the Exciting Newbie award. “Chief distributors are our front line, providing our customers with

the products, service, training and support they need to properly repair collision-damaged vehicles every day,” said Lee Daugherty, director of North America collision sales for Chief parent company Vehicle Service Group (VSG). “We’re very proud of our unmatched network of collision industry professionals, and honored to recognize some of our top performers.” The awards are based on full-year 2015 sales results.

2015 Sales Leader 1. Crashmax (serving Delaware, Maryland, New Jersey, Pennsylvania and Virginia) 2. Advanced Equipment (serving Alabama, Georgia and Florida) 3. Collision Tools (serving New England)

Highest Percentage Sales Growth 2014 to 2015 1. Interstate Marketing (serving Kentucky, North Carolina, South Carolina and Tennessee) 2. Advanced Equipment 3. Crashmax

Chief also recognized Walter Wiezorek of Walter Equipment for his 35 years of service and leadership in the industry.

Honda Awards $36,000 to Three Collision Schools Through Education Foundation

Honda has awarded $36,000 in grants to three schools through the Collision Repair Education Foundation. These schools are part of Honda’s Professional Automotive Career Training Program (“PACT”) designed to provide students with real world automotive repair education and training. These funds will help fulfill a wish list of needed tools, equipment, and supplies for the collision programs at these schools. The following schools are recipients of the award made possible by the Ultimate Collision Education Makeover grant: Cerritos College (Norwalk, CA) Fayetteville Technical Community College (Fayetteville, NC) Ranken Technical College (St. Louis, MO) “American Honda is proud to support the Collision Repair Education Foundation’s efforts to provide resources for deserving collision repair schools nationwide,” said Tammy Elliot, Assistant Vice President of Serv-

ice Marketing & Operations for American Honda. “We’re especially proud that three of our PACT schools were grant recipients. The tools and equipment they acquire through these grants will help guarantee that their graduates have the skills needed to repair today’s cars.” For additional information about the Honda PACT program, visit www .hondapact.net. Collision industry businesses interested in joining the Collision Repair Education Foundation in supporting high school and college collision school programs should contact director of development Brandon Eckenrode at (847) 4635244. Industry businesses can learn more about the organization and make a donation online by visiting www.CollisionEducationFoundation .org.

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CAPA Introduces CAPA 701 Mirror Standard

The Certified Automotive Parts Association has announced that its Technical Committee has approved the CAPA 701 Standard for the certification of aftermarket exterior mirrors and mirror components. This Standard specifies the certification requirements for passenger

Technical Consulting, Inc. and Vice Chair Nick Scheid of LNS & Associates. The Committee, responsible for CAPA’s Standard Development and approval, includes collision repairers, insurers, part distributors, manufacturers, and other industry experts.

and driver side mirror assemblies, mirror glass, mirror housings and covers. The CAPA 701 Standard specifications include compliance to applicable sections of Federal Motor Vehicle Safety Standard No. 111, Rear Visibility as well as requirements for performance testing, material composition, dimensions, appearance, function, construction and retaining features, and Vehicle Test Fit (VTF). The CAPA 701 Standard was approved this month by a vote of CAPA’s Technical Committee, led by Chair Rod Enlow of RENlow Auto

“Ensuring that all aspects of the collision repair industry has input into CAPA’s Standards, this comprehensive assembly of industry experts demonstrates CAPA’s industry-inclusive and fully public nature,” said Debbie Klouser, CAPA’s Director of Operations.

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GAAS, University of the Aftermarket Foundation Unite

Representatives from the Global Automotive Aftermarket Symposium, Inc. (GAAS) and the University of the Aftermarket Foundation have worked closely to bring the two organizations together. GAAS will dis-

solve as a non-profit organization and donate its net assets to the Foundation. An official confirmation vote was held during the recent University of the Aftermarket Foundation annual board of trustees meeting. Established with the support of Mort Schwartz, MAAP and the late Jack Creamer, GAAS was formed to raise funds for aftermarket scholarships and educational initiatives and thrived under the leadership of Schwartz, David Caracci, MAAP and Dennis Welvaert, MAAP. Due

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to an ever more crowded industry events calendar, leadership of the longstanding organization decided to stop holding its annual symposium in 2015 and focused its attention on Automotive Central, its scholarship program led by industry veteran Pete Kornafel, MAAP. Kornafel will continue to administer the scholarship program as chairman of the University of the Aftermarket Foundation education and scholarship committee. “Because GAAS and the University of the Aftermarket Foundation share a similar mission, and the foundation has been the largest source of funds for aftermarket scholarships, it only made sense to join forces to achieve a common goal,” said Tim Lee, MAAP, chairman of the University of the Aftermarket Foundation. “By donating its net assets to the University of Aftermarket Foundation, the proud legacy of GAAS will continue on. We thank Mort, Dave and Denny for 20 successful years of leadership and applaud Jack and Mort for their vision. Together, we begin the next chapter of their mission.” Promote your business with For information, visit www anmore exclusive article featuring .UofAFoundation.com. your products or services. | JANUARY 2017 AUTOBODY NEWS 71

72 JANUARY 2017 AUTOBODY NEWS | www.autobodynews.com