Autobody News February 2012 Western Edition by Autobody News

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California’s DOI Calls Meeting, Drafts Reforms to Labor Rate Surveys, DRPs, and Steering In a letter to ‘Certain Interested and Affected Parties’ the California DOI has taken a second step to address concerns of collision industry stakeholders. In November the DOI’s legal division hosted a meeting to discuss proposed revised aftermarket part regulations. The results of that discussion are under review by the department (see http://tiny.cc/ydvp6). Now the DOI, under Commissioner Dave Jones, is taking on the issue of Labor Rate Surveys, DRPs, and Steering. Departmental attorney, Teresa R. Campbell has organized a January 25th meeting (10–12:00 noon at the

DOI in Sacramento, and has drafted contemplated revisions to the California Code of Regulations, impacting Direct Repair Programs and Labor Rate Surveys. Steering is also addressed in language concerning insurer recommendations of automobile repair dealers. Although welcoming input and discusssion, the ‘rulemaking file’ will not be opened until formal notice is given by DOI and that comments must be submitted during the formal public comment period. The language (complete text follows) proposes that insurers shall reSee DOI Meeting Page 16

CARSTAR Launches Expansion Effort in California, Sees “Tremendous Opportunity” For drivers in California, the risk of an auto accident is higher than many other parts of the country because California has more licensed drivers than any other state—more than 22 million drivers on the road. It’s no wonder then that there are close to 6,000 active shops in California, and more that do some custom or occasional repair work. While some also say California is also the hardest place to run a profitable shop due to legislative and othe factors, CARSTAR is looking for franchise opportunities in the golden state. Last fall CARSTAR announced a

new business development team, appointing Mark Behrens, Director of Network Development for California, and saying he would focus on expansion of the CARSTAR brand into California and adding new franchise partners to existing CARSTAR markets. Now CARSTAR Auto Body Repair Experts has announced an agressive expansion effort in California to offer select body shop owners an opportunity to join North America’s largest MSO network with over 400 stores in the United States and

VOL. 30 ISSUE 2 FEBRUARY 2012

‘Standards’ Replace Non-OEM Parts as Focus of Debate at Latest CIC by John Yoswick

A report at the Collision Industry Conference (CIC) on the findings of a study into what consensus exists within the industry about the development and implementation of formalized repair standards led to as much discussion about the value and validity of the study as it did to discussion of standards themselves. “I do believe this has set us backward instead of forward,” Dusty Womble of Roger Beasley Collision Center in Austin, Texas, said of the study. “I’m sorry, but honestly, I don’t see any value in the research that has been done.” But Massachusetts shop owner Chuck Sulkala—who has not participated on the committee that organized the study but was one of those

interviewed by the consultant conducting the research—said some at CIC were incorrectly presuming that the committee was trying to make more of the report than it was. “Some of the conversations here are getting us down into the weeds right now when I don’t think we’ve even gotten in the boat yet,” Sulkala said. “We’re still looking to see where the boat and lake is, to see what’s going on rather than trying to catch fish. I think we’re still in the very beginning stages.” The Study and Findings Russ Thrall of the Repair Standards Advisory Committee (an off-shoot of CIC) was clear in presenting a portion of the study’s findings that it was never intended to be a statistically See CIC Palm Springs, Page 54

Rich Evans’ Charity Build for PatriotOutreach (see p. 58) and also Baby Cancer Foundation Autobody News custom columnist Rich Evans had a busy fall and holiday season at his shop in Huntington Beach, CA. As they have for the past four years, Rich and Patricia Evans held their Christmas party at Huntington Beach Body Works on Saturday, December 17. The party benefitted America’s

Baby Cancer Foundation. The party also included a special appearance from Santa with gifts,

See CARSTAR, Page 10

Rich Evans with party attendees showing off some of the gifts they received

Benefit attendees lined up for a chance to visit with Santa

food, drinks, and special motor sports themed entertainment. For more information please visit www.babycancer.org or www.huntingtonbchbodyworks.com. See Rich’s column this issue.

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2 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL ‘Standards’ Replace Non-OEM Parts as Focus of Debate at Latest CIC. . . . . . . . . . . 1 40 Technicians Honored at ASE 2011 Annual Meeting in Charlotte, NC . . . . . . . . 30 Airbags Changing Vehicle Scrappage Age Mix . 49 ANPAC Responds to Texas DOI. . . . . . . . . . . 61 ASE Announces New Officers, Governors for 2012. . . . . . . . . . . . . . . . . . . . . . . . . . 25 ASRW Calling For Presenters at NACE/CARS 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Automakers Forecasted to Add Thousands

January Sales to Improve Nearly 10 Percent Year-Over-Year Sales Volume

Market Share

Jan 2012

Jan 2011

Manufacturer

Jan 2012

Jan 2011

YOY%

Ford Motor Company Toyota Motor Corp.

144,900

126,981

14.1% 16.1% 15.5%

0.6%

70,993

31.8% 10.4%

8.7%

1.7%

65,002

23.2%

7.9%

819,394

9.8%

General Motors

Chrysler Group

American Honda Motor Co. Hyundai-Kia

Nissan North America Total:

169,200 121,500 93,600 81,000 80,100 79,200

900,000*

178,887 115,856 76,268 71,847

5.4%

18.8% 21.8% -3.0%

4.9%

13.5% 14.1% -0.6%

6.2%

9.0%

10.2%

8.8%

8.9% —

*Includes projections for brands not shown

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Audi Wholesale Parts Dealers . . . . .57 Autoland Scientech . . . . . . . . . . . . .35 Automotive ID . . . . . . . . . . . . . . . . . .26 BMW Wholesale Parts Dealers . . . .27 Buerge Chrysler-Jeep-Dodge . . . . .19 California Superstores . . . . . . . . . . . .7 CCC Information Services . . . . . . . . .2 Classifieds . . . . . . . . . . . . . . . . . . . .62 Crevier BMW . . . . . . . . . . . . . . . . . .25 CSS USA, Inc. . . . . . . . . . . . . . . . . .17 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .24 Drew Hyundai-Volkswagen . . . . . . .14 DuPont . . . . . . . . . . . . . . . . . . . . . . . .5 Elk Grove Toyota . . . . . . . . . . . . . . .42 Enterprise Rent-A-Car . . . . . . . . . . .55 Equalizer Industries . . . . . . . . . . . . .12 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .41 Galpin Motors . . . . . . . . . . . . . .31, 39 Garmat USA . . . . . . . . . . . . . . . . . . .10 GM Wholesale Parts Dealers . . . . . .43 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .53 ICE Institute . . . . . . . . . . . . . . . . . . . .4 Innovative Tools & Technologies . . .15 Kearny Mesa Subaru-Hyundai . . . . .23

YOY%

9.3%

-0.3%

8.8%

0.0%

—

1.0% —

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Western

COLUMNS Evans - Doing a Charity Build for Patriot Outreach on a Donated Mustang. . . . . . . . 58 Franklin - Creating A Readable Advertising Piece . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 I-CAR - Accessing and Repairing Body Mount Cage Nuts for the Ford F-150 . . . . . . . . . . 26 Insurance Insider - Legislating the “Bible” Not the Answer for Shops Tired of Being Told “No” . . . . . . . . . . . . . . . . . . . . . . . . . 40 Schroeder - The Elite Group Collision Centers Acquires Firestone Auto Body in Downey, CA, Increasing Their Locations to Eight. . . 28 Sisk - A1 Grand Auto Body in NY—A Family Commitment to Quality Repair . . . . . . . . . 60 Sisk - Customers Expect Quality in All Respects from The Body Shop of Athens . 56 Weaver - Check Engine Light Paranoia . . . . . 35 Williams - South Motors Automotive Group— Anything But Apathetic . . . . . . . . . . . . . . . 42

of Plant Manufacturing Jobs Over the Next 3 Years . . . . . . . . . . . . . . . . . . . . . . . 38 BMW Announces Nearly $900 Million Investment, Adding 300 Jobs at its South Carolina Plant . . . . . . . . . . . . . . . . . 55 CIECA Announces New Board of Trustees for 2012. . . . . . . . . . . . . . . . . . . . . . . . . . 38 Collision Hub Launches The Hub™ Your Social Media Toolbox . . . . . . . . . . . . . . . . 43 Diamond Standard Announces “Security Shield” Extends Product Liability Protection to Shops . . . . . . . . . . . . . . . . . 34 Erie Insurance Earns I-CAR Gold Class Professionals Badge. . . . . . . . . . . . . . . . . 15 Florida’s Auto Angels Host Second Annual Vehicle Giveaway, Already Planning for ‘13. 60 Heavy Duty Aftermarket Associations Join Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Meguiar’s Endows 676 Schools with $600K Product Donation Through Collision Repair Education Foundation . . . . . . . . . . . . . . . . 47 Mike Causey Announces Candidacy for Commissioner of Insurance Position in North Carolina . . . . . . . . . . . . . . . . . . . 16 Mitchell Announces Wicklunds CARSTAR as Winner of Get-a-Life Dream Vacation . . . . 52 Mitchell Parts Index Sheds Light on Parts Trends Post Japan’s Tsunami . . . . . . . . . . 44 Nissan and Daimler to Produce Engines Together at Nissan’s Tennessee Plant . . . . 57 NRC Releases Automotive Electronics Safety Report . . . . . . . . . . . . . . . . . . . . . . 55 Oregon Shop’s Parts Manager Performs Heroic Deed to Save a Life . . . . . . . . . . . . 12 Parts Distributor and Insurer Elected to CAPA’s Board of Directors . . . . . . . . . . . . 59 PCI Says Auto Body Legislation will be Priority for 2012 . . . . . . . . . . . . . . . . . . . . 47 Polk Says Average Age of Vehicles is at Record High . . . . . . . . . . . . . . . . . . . . . . . 47 Rich Evans’ Charity Build for PatriotOutreach (see p. 58) and also Baby Cancer Foundation. 1 Rotary Lift, Chief and Elektron Coming to National Automobile Dealers Association Expo . . . . . . . . . . . . . . . . . . . 51 Sales Rebound and Mix Change For New Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 23 SCRS Responds to Article on Insurer Involvement in Setting Rates . . . . . . . . . . 28 SCRS, ASA, AASP Release Joint Statement Regarding the Collection and Reporting of Repairer Business Data . . . . . . . . . . . . 48 Solera Announces Global Cooperation With Allianz . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 State Farm Concedes Another Lawsuit Brought by Gunder’s Auto Center of Lakeland, Fl . . 14 Three Developments Shaping ’11 Aftermarket . 46 Update: Delray Beach, FL, Shop Owner’s Opposition to GEICO’s 10% Charge on Domestic OEM Parts Pays Off . . . . . . . . . 15 UPDATE: Houston City Council Delays Vote on Auto Repair Ordinance, Draft Not Favorable to Shops. . . . . . . . . . . . . . . . . . 45 Used Car Drought Ignites Dealer Bay Competition . . . . . . . . . . . . . . . . . . . . . . . 52 Van Tuyl Group to Hold Charity Super Bowl Event in the Dallas-Fort Worth Area Super Bowl Weekend, Autobody News to Participate. 14 West Virginia v. Liberty Mutual Salvage Parts Lawsuit Moved to Federal Court . . . . . . . . 34 Women’s Industry Network Accepting 2012 Board Applications . . . . . . . . . . . . . . . . . . 39

Approximately 900,000 Units Expected for Month, 13.2 Million Seasonally Adjusted Annualized Rate

Indexof Advertisers

REGIONAL 2012 NABC Annual Fundraiser Held in Conjunction with CIC in Palm Springs, CA. . 8 4,000 Arrests Made of Suspected Drunk Drivers in AZ During Holidays . . . . . . . . . . . 6 AZ Repeals State’s Clean Cars Program Modeled After California . . . . . . . . . . . . . . 10 Bay Area Iraq Veteran Gets Car Makeover by Two Bay Area Body Shops . . . . . . . . . . . . 53 CA DOI Recovers $54 Million for Consumers in 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 CA/NV/AZ Automotive Wholesalers Association (CAWA) Delivers Rebuttal to Letter of Opposition to “Imitation” Aftermarket Crash Parts Legislation. . . . . . . . . . . . . . . 50 CAA to Hold Q1 2012 Board Meeting in Sacramento . . . . . . . . . . . . . . . . . . . . . . . . 9 California Names New Deputy Insurance Commissioner . . . . . . . . . . . . . . . . . . . . . 10 California’s DOI Calls Meeting, Drafts Reforms to Labor Rate Surveys, DRPs, and Steering. 1 CARSTAR Launches Expansion Effort in California, Sees “Tremendous Opportunity” . 1 CAWA Appoints Manufacturers Advisory Council for 2012 . . . . . . . . . . . . . . . . . . . . 4 Ford Launches Silicon Valley Presence with New Research Lab . . . . . . . . . . . . . . . . . . . 6 Full Text of California DOI’s Proposed Amendments to Insurance Code . . . . . . . . 18 Hitting the Streets with the G & C Auto Body Meter Beaters. . . . . . . . . . . . . . . . . . . . . . 36 Hyundai’s New U.S. HQ in Fountain Valley . . . 4 Insurance Commissioner Dave Jones Approves “Principally At-Fault” Regulations . . . . . . . . 9 Mike Rose’s Auto Body Adds Eighth Location in Lafayette . . . . . . . . . . . . . . . . . . . . . . . 10 Nevada Texting While Driving Ban Takes Effect. 4 Seven Western Fix Auto Collision Centers Provide Refurbished Vehicles to Families . . 6

Kelley Blue Book Forecasts 10 Percent Year-Over-Year Increase In January New-Car Sales

Kia Motors Wholesale Parts Dealers .29 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63 Mazda Wholesale Parts Dealers . . .52 MINI Wholesale Parts Dealers . . . . .50 MOPAR Wholesale Parts Dealers . .37 Moss Bros. Chrysler-Jeep-Dodge . .13 Nissan Genuine Parts . . . . . . . . . . .11 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .46 Preval . . . . . . . . . . . . . . . . . . . . . . . .64 RBL Products, Inc. . . . . . . . . . . . . . . .9 RealParts.com . . . . . . . . . . . . . . . . .20 Replica Plastics . . . . . . . . . . . . . . . .47 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .22 Safety Regulation Strategies . . . . . .18 Shingle Springs Nissan-Subaru . . .30 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . .8 Solution Finish . . . . . . . . . . . . . . . . .58 Star-A-Liner . . . . . . . . . . . . . . . . . . .16 Subaru Wholesale Parts Dealers . . .49 Timmons VW-Subaru . . . . . . . . . . . .38 Toyota Wholesale Parts Dealers . . .61 VeriFacts . . . . . . . . . . . . . . . . . . . . . . .6 Volkswagen Wholesale Parts Dealers .51 Volvo Crash Wholesale Dealers . . .48 Weatherford BMW . . . . . . . . . . . . . .21

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 3

CA DOI Recovers $54 Million for Consumers in 2011

The California Department of Insurance California Insurance Commissioner Dave Jones announced the California Department of Insurance's successful recovery of more than $54 million for consumers in 2011 on January 10, according to Insurance Journal. The CA DOI was able to do this through consumer complaint investigations and market conduct examinations of insurance companies. The consumer services division of the DOI operates the consumer communications bureau, which handles the (800) 927-HELP consumer hotline and other bureaus, including health claims, claims services, and rating and underwriting services. The division recovered over $49 million for consumers in 2011, according to the department. The market conduct division, which investigates insurance company operations, recovered roughly $5 million for consumers. The division performs examinations of insurance company claims, underwriting, rating and marketing practices.

CAWA Appoints Manufacturers Advisory Council for 2012

Chair of the CAWA Board of Director’s , Steve Sharp of WORLDPAC, has appointed five industry representatives to the Association’s 2012 Manufacturers Advisory Council. The new appointees are: ● Jon Holder, Magnaflow, Director of Market Development ● Frank Oliveto, ADVICS – North America, Industry Relations ● Ed Turnquist, Standard Motor Products, Zone Manager ● Tom Walsh Jr., Lucas Oil, Account Executive ● Carl White, BBB Industries, West Coast Regional Sales Manager “We are pleased to welcome these industry members to the CAWA leadership and look forward to their participation and contributions to the automotive aftermarket industry out west,” said Chair Sharp following the appointments. He went on to say “ we are pleased these individuals have stepped forward to give something back to our industry” CAWA is an automotive aftermarket trade association representing companies and individuals in California, Nevada and Arizona. For more information see www.cawa.org.

Hyundai’s New U.S. HQ in Fountain Valley

On Jan. 3, 2012 Hyundai Motor America released a rendering of its proposed new U.S. headquarters building in Fountain Valley, California, its U.S. base of operations for the past two decades. The new building will represent more than a $150 million investment, the largest amount ever committed to an office building in the U.S. by Hyundai Motor Company. “This new national headquarters represents Hyundai’s vision for the future and reflects the innovation and creativity that our brand has come to represent,” said Hyundai Motor America CEO John Krafcik. “It also reflects our commitment to invest in and benefit the communities in which we operate around the world.” Designed by world-renowned architecture and design firm Gensler, the building will be LEED-certified, targeting the gold level. Leadership in Energy and Environmental Design (LEED) is an internationally recognized green building certification process assessing the sustainability of a building’s design, construction and operations. The building design is sleek and modern, yet classic, and built on a structural pedestal foundation with floating translucent glass floors above. The focal point of the

building is its impressive two-story high entrance, which leads to an open-to-the sky public courtyard in the building’s center. A showroom of Hyundai vehicles will be visible from the freeway side of the new structure. The new headquarters building will be approximately 419,000 sq. ft. and six stories high. A one-story, 50,000 sq.ft. technical services facility connects to the main building. An adjacent parking structure will also be built on the site. Demolition of the old headquarters building along the 405 San Diego Freeway is currently underway. Construction of the new building is expected to begin in spring 2012, and is projected to generate approximately 1,530 direct and indirect jobs during the estimated 19-month building process. The building is slated for completion by the fall of 2013. During the demolition and construction, Hyundai Motor America employees are in temporary office space in Costa Mesa, California. For more information please visit www.hyundaiusa.com.

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Nevada Texting While Driving Ban Takes Effect

Back in June, Nevada became the 34th state to ban texting while driving. Nevada also passed a law banning handheld cell-phone use while behind the wheel, although hands-free cell phone use (such as through Bluetooth) remained legal. Officers began issuing warnings in October, although the law officially hit the books January 1, 2012. Las Vegas police wasted no time in enforcing the state’s new ban on driving while texting or talking on a handheld device, according to Insurance Journal. Police Sgt. Peter Kisfalvi told the Las Vegas Sun that officers wrote more than 230 citations in the first week of the year. Fines are $50 (first offense), then $100 (second) and then $250 (subsequent violations) now that the warning period is over. Enforcement of the Nevada bans is primary, meaning drivers can be stopped and cited for that reason alone. The bill behind the law, SB 140, was approved by Gov. Brian Sandoval, who had made it clear that he would support a statewide ban on text messaging while driving. The Assembly’s final vote came

May 30, 2011, and the Senate signed off June 4. Sen. Shirley Breeden, who authored the bill, added handheld cell phones to the 2011 version of the bill; her 2010 version failed to pass. The Senate lowered fines to match the Assembly’s version in order to get the distracted driving bill through.

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Ford Launches Silicon Valley Presence with New Research Lab Ford Motor Company announced plans on January 6 to create and open its first dedicated research lab in Silicon Valley early this year, saying it is growing the company’s commitment to make technology affordable for millions. “Ford has an incredible heritage of driving innovation in the transportation and manufacturing sectors during the past 107 years,” said Paul Mascarenas, Ford chief technical officer and vice president of Research and Innovation. “Now it’s time to prepare for the next 100 years, ushering in a new era of collaboration and finding new partners to help us transform what it means to be an automaker.” Ford President and CEO Alan Mulally will elaborate on the new areas of focus for the forthcoming Silicon Valley lab, plus Ford’s latest industry-leading technologies including SYNC®, EcoBoost™, MyKey® and inflatable rear safety belts, when he returns to the International CES on Jan. 11 for the Innovation Power Panel keynote. This will be Ford’s fourth consecutive keynote presentation at CES.

Ford Research and Innovation, the company’s advanced engineering arm, will open the new Silicon Valley lab in the first quarter, helping ensure Ford keeps pace with consumer trends and aggressively prepares for the future by developing mobility solutions to harness the power of seamless connectivity, cloud computing and clean technology. “An open attitude to new ideas is critical to solving the transportation, environmental and societal challenges we expect in the future,” said Mascarenas. “With increasing pressures from urbanization and the need to reduce energy use, we’re going to see energy storage, wireless connectivity, sensing systems and even autonomous vehicles as key parts of the solution.” The new Ford lab will be located in the San Francisco Bay area of California and will serve as a hub for independent technology projects and identification of new research investments and partners located along the west coast. Ultimately, the lab will create an “innovation network” connecting Ford’s Advanced Design Stu-

Seven Western Fix Auto Collision Centers Provide Refurbished Vehicles to Families

Seven Fix Auto repair center locations participated in Recycled Rides in 2011, a National Auto Body Councilsponsored program that connects body shops with charity organizations helping people in need. The program allows body shops to repair and donate vehicles to families and service organizations. The program was able to donate over 150 vehicles in 2011 thanks to the efforts of willing body shops. Three Fix Auto locations in Southern California—Escondido, Oceanside, and Riverside—and one in Denver, Colo., donated cars through Operation Homefront; an organization that provides emergency financial and other assistance to military families and wounded warriors. In Pasadena, California, Fix Auto donated a vehicle through Foothill Unity Center—a source of

food, health services and crisis assistance for more than 4,000 local, lowincome families. A Portland, Oregon, Fix Auto location donated a car to a family with a sick child at OHSU Doernbecher Children’s Hospital. Fix Auto will be gifting the final car to an Operation Homefront family in Santee, California, in mid-January, 2012. “We are honored to participate in this program and we hope to expand our participation to include even more cars next year,” said Paul Gange, Fix Auto president and chief operating officer. He also said these locations went above and beyond the definition of the donation, “in some cases, the families walked away with gas cards, car seats, toys and car insurance,” in addition to their recycled ride.

4,000 Arrests Made of Suspected Drunk Drivers in AZ During Holidays A statewide DUI holiday task force in Arizona made more than 4,000 arrests of suspected drunk drivers from November 24, 2011 to January 1, 2012, according to Claims Journal. The Governor’s Office of High-

way Safety, the office responsible for the task force crack down, said in a news release on January 1 that 1,085 drivers were been arrested for extreme DUI and 385 people were arrested for aggravated driving under the influence.

6 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

dio in Irvine, Calif., and Ford employees working with connectivity platform partner Microsoft Corp. in Redmond, Wash. “Silicon Valley represents a deep and dynamic technology neighborhood and is far from Dearborn,” said K. Venkatesh Prasad, senior technical leader for open innovation with Ford Research and Innovation. “With so many opportunities and so much potential, our new lab will allow us to scout new technologies and partners in their own environment and continue our expansion beyond the traditional automaker mindset to drive innovation for a better mobility experience.” Prasad—a Silicon Valley veteran himself—will travel from Dearborn to the Bay area regularly to shape the lab. The new research lab’s employees will be recruited both locally and rotated-in from the global network of Ford employees and will spend their time developing and discovering new technologies, trends, partners and collaborative research projects, said Prasad.

The number of Ford employees at its new lab will be comparable to what you expect of a startup, with an emphasis on quality over quantity, said Prasad. Prasad added that the establishment of Ford’s all-new Silicon Valley lab will not duplicate or replace work being done at the company’s Research and Innovation Center in Dearborn, its European facility in Aachen, Germany, or the recently established technology office in Nanjing, China. Ford’s global Research and Innovation team is already working in several key areas that will be supported by the work of the Silicon Valley lab. “Ford integrates technologies, software and electronics at the same pace as the most innovative companies in the world—our platform just happens to be the car,” said Mascarenas. “The new Silicon Valley lab will propel us further as we look at the many facets of life where mobility interacts with society and see how we can make those experiences better for millions of customers around the world.”

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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 7

2012 NABC Annual Fundraiser Held in Conjunction with CIC in Palm Springs, CA The National Auto Body Council (NABC) held their annual golf event fundraiser on January 11, 2012, at the Tahquitz Creek Golf Resort in Palm Springs, California. A total of 133

of funding for the group. Not only does it help NABC implement the programs and activities that define it and give shape to this purpose, it helps reduce the cost of NABC’s programs

stated David Merrell, NABC golf committee chair. “I would like to thank all our sponsors, including presenting sponsor Hertz Rent-A-Car, for giving the

golfers registered for the scramble format. The event was able to raise $55,000 this year and was held in conjunction with the NABC’s open board meeting, which took place the previous day, January 10, as well as the Collision Industry Conference (CIC), which took place January 11, 12, 13. The annual fundraising event plays an integral part in providing the resources that support the organization in its mission of improving the image of all dedicated collision industry professionals because it is a major source

Golfers had the option of playing individually or in teams during the fundraising event

National Auto Body Council much needed support,” said National Auto Body Council Executive Director Chuck Sulkala. “We are extremely grateful they find our mission to magnify the good works of the industry in the view of the general public worthwhile enough to give so much of themselves. It fuels our inspiration to keep doing what we do in new and innovative ways.” The fundraising golf event was open to both individuals and teams, and was played using a four-person

for participants, making them more affordable. The fundraising committee comprised of current NABC board members worked together throughout last year in setting higher goals and expectations for this year’s golf fundraiser, success that translated into additional revenue. “Every sponsorship opportunity available was taken advantage of and every golf slot was filled equating to the higher revenue,”

scramble format. The event concluded with a buffet reception, awards ceremony, and prize package drawings. An earlier tee off time and a complimentary breakfast, together with a more relaxed atmosphere, seemed to resonate with attendees and build additional enthusiasm for the golf fundraiser. Making the event that much more special was a Recycled Rides gifting ceremony in which a 1999 Ford Free Star mini-van was presented to a single mother of two, Maria Mendez, a home health care worker from Indio, whose son is disabled. His wheelchair was difficult for Maria to load into her old station wagon. The Free Star is better suited to accommodate it and is more reliable, relieving Maria of some of the daily stress that is part of her life. Pacific Collision Centers of Cathedral City, California, was the collision repair facility responsible for refurbishing the vehicle, which Hertz Rent-A-Car provided. Javier Lopez, manager of Pacific Collision Centers, oversaw the project in his shop. Visit www.autobodycouncil.org to learn more.

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8 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

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Insurance Commissioner Dave Jones Approves “Principally At-Fault” Regulations California Insurance Commissioner Dave Jones announced December 26 the final approval of amended regulations that simplify the requirements for determining whether a driver is principally at-fault (PAF) for an accident, which impacts consumers’ ability to obtain “Good Driver Discounts” under Proposition 103. The amended regulations prepared by the Commissioner cleared the final administrative hurdle, having obtained approval from the Office of Administrative Law. The amended regulation also allows an insurer to rebut presumptions concerning circumstances where a driver should be considered at-fault because the insurer may have evidence that the driver's acts or omissions caused the accident. The amended regulation also corrects problems with the PAF definition by including accidents involving bodily injury or death, restoring "total loss or damage" language, and raising the threshold for property damage, which has not been adjusted in nine years.

In addition, it allows insurers to rely solely on Comprehensive Loss Underwriting Exchange (CLUE) and Insurance Services Office (ISO) reports. LexisNexis® C.L.U.E.® Auto and ISO's A-PLUS™ are subscribing loss underwriting exchange carriers databases containing personal automobile claims information. In response to the amended regulation, CLUE and ISO have modified their databases to include information pertinent to insurers’ principally atfault determinations. With this additional information, an insurer's use of CLUE reports should be a reliable source of information and will allow insurers to make timely auto insurance quotes to consumers. “Today we obtained final approval of the Department of Insurance’s amended “principally at-fault” regulations,” said Commissioner Jones. “The amended regulations include important consumer safeguards.” Chief among the consumer safeguards are: ● The clarification and requirement of

a consistent procedure that a driver’s insurer at the time of an accident and any subsequent insurer must follow to determine that the driver is principally at-fault for the accident. ● The prohibition of insurers from relying solely on Department of Motor Vehicle Reports, which do not contain enough information for insurers to make a principally at-fault determination. ● The disapproval of the right of an insurer to charge a driver with a principally at-fault accident when the driver does not provide enough information. ● The requirement of subsequent insurers to accept a driver’s declaration of his accident history if no other information is available.

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CAA to Hold Q1 2012 Board Meeting in Sacramento

The California Autobody Association will hold their 1st Quarter 2012 Board of Directors’ Meeting on February 10th and 11th, 2012, at the Embassy Suites in the Sacramento Riverfront Promenade, Sacramento, CA. Quarterly Board Meetings are open to all CAA members. Call Hotel Reservations now at 916-326-5000 (or 1-800-EMBASSY) and ask for the California Autobody Association group block to book your stay.

Schedule of Events: Friday, February 10th , 2012 6:00 p.m. - 7:30 p.m. Reception (Embassy Suites Riverfront Promenade)

Saturday, February 11th, 2012 7:00 a.m. - 8:00 a.m. Continental Breakfast 8:00 a.m. - 12:00 p.m. CAA Board of Directors’ and Membership Meeting 12:00 p.m. - 1:30 p.m. CAA 2011 Awards Luncheon and Guest Speaker 1:30 p.m. - 4:00 p.m. CAA Board of Directors’ and Membership Meeting For more information please visit www.calautobody.com.

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 9

Mike Rose’s Auto Body Adds Eighth Location in Lafayette Mike Rose’s Auto Body, an MSO in business for 40 years, with shops in the San Francisco Bay Area, announced the addition of their eighth location on January 17. “We are excited to have the opportunity to open a shop in the city of Lafayette. We will be able to make it more convenient for our customers in the Lafayette, Orinda, Moraga and Rossmoor areas,” said Mike Rose, founder and owner. The shop’s hours are Monday through Friday, 7 a.m. to 6 p.m. The shop’s manager is Jason Laus. The other seven facilities in the San Francisco Bay Area are located in, Walnut Creek (2), Concord (2), Pittsburg, Antioch, and Brentwood. Mike’s has a direct repair relationship with the following insurance companies: 21st Century, AAA, Allstate, Bristol West, Encompass, Esurance, Farmers, GEICO, GMAC, Liberty Mutual, Mercury, Progressive, Safeco, Travelers, Unitrin and USAA. Mike Rose’s Auto Body was formed in 1972 by Mike Rose at age 19, to serve communities throughout

the Contra Costa County. At that time, there were 5 employees working in 3000 square feet. Today, Mike’s employs 195 people working in over

Continued from First Page

CARSTAR says that California shop owners who become CARSTAR franchisees will benefit from the CARSTAR Management Systems, which provide resources to improve key business metrics such as cycle time, participation in CARSTAR’s 17 corporately managed DRP programs and improved purchasing power from 44 corporately managed purchasing programs. California shop owners who become CARSTAR franchisees will benefit from the CARSTAR Management Systems, which provide resources to improve key business metrics such as cycle time, participation in CARSTAR’s 17 corporately managed DRP programs, and improved purchasing power from 44 corporately managed purchasing programs. California shop owners interested in learning more about opportunities with CARSTAR Auto Body Repair Experts can contact Keith McCrone, CARSTAR Director of Network Development–California, at (858) 859-1511. Interested shops can also visit www.carstar.com for more information.

CARSTAR

Canada. As a member of CARSTAR, the company says franchisees can offer an array of services and products for collision repair, including the latest in repair technology, rental vehicles, nationwide warranties on repairs and turnkey service for their customers. “There is a tremendous opportunity for body shop owners in the California marketplace, as the heavy traffic and enormous number of drivers create a constant need for quality collision repair,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “But it’s a competitive environment where store owners must meet strict environmental standards, manage insurance relationships and deliver high KPIs, drive sales and margin improvement on tight budgets and continually provide excellent auto body repairs. These store owners are looking for the business services and resources that only CARSTAR can provide, and we’re looking forward to adding a select group of these shop owners to the CARSTAR Nation.”

Mike Rose’s Auto Body’s eighth location at 3430 Mt. Diablo Blvd, in Lafayette, CA

135,000 square feet. Rose believes his commitment to providing a quality product, community involvement and genuine concern for his customers’ repair experience has led to more than four decades of growth. Mike Rose’s Auto Body 2260 Via De Mercados Concord, CA 94520 (925) 689-1739 www.mautobody.com

10 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

California Names New Deputy Insurance Commissioner

California appointed John F. Finston to the position of Deputy Commissioner for Corporate & Regulatory Affairs at the California Department of Insurance on January 5. Previously Finston was the head of SNR Denton’s insurance regulation practice, accruing more than 30 years of experience in insurance regulatory, insolvency and transactional issues for insurance companies and their customers, according to Insurance Journal. Finston will serve as a top advisor to Insurance Commissioner Dave Jones on issues related to state, federal and international oversight of insurance and reinsurance.

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AZ Repeals State’s Clean Cars Program Modeled After California

The Arizona Governor’s Regulatory Review Council voted January 17 to repeal the state’s Clean Cars program, a set of tailpipe-emissions standards adopted in 2008, in favor of less-stringent federal regulations. The regulations went into effect in 2011. According to the Cronkite News, environmentalists argued that the repeal would discourage zero-emission vehicle development and harm the state’s air quality, but supporters of the change said it would have negligible environmental impact and no economic impact. “We believe this was the best course of action,” Henry Darwin, director of the Arizona Department of Environmental Quality, which called for the change, said to the Cronkite News. The program was supposed to mirror standards in California and required car companies to lower emissions that harm air quality, reduce greenhouse gas emissions and sell and develop infrastructure for zeroemissions vehicles. The state will now follow federal emissions standrads, which are much less stringent. Members of the council voted 51 to repeal Clean Cars.

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 11

Oregon Shop’s Parts Manager Performs Heroic Deed to Save a Life by Ed Attanasio

Would you step up and be a hero if you were in an emergency situation with little time to think? Many of us have asked ourselves this same question, but few ever get the opportunity to find out. James Bray, a parts manager at Fix Auto Portland East in Oregon was tested in a big way when he was called upon to pull a man out of a burning car and save his life. If Bray ever had any doubts about his courage or his ability to act heroically, they were all answered at 2 a.m. on December 3. In a highly stressful situation requiring quick James Bray is the thinking and parts manager at Fix quicker action, Auto East in PortBray was able to land, Oregon. By moving quickly and think fast and take being prepared, he lifesaving action. saved a man from a That early mornburning BMW that ing a BMW hit a crashed into a utility utility pole right in pole front of Bray’s house in Vancouver, Washington. Normally, Bray would have been asleep, but luckily for the driver, he was still awake, playing computer games. Sounds in the night are mostly weather or animal-related in Vancouver, but this one caught Bray’s attention immediately. “It was a very deep pop sound and I had no idea what it might be. So, I went to the window in the living room and that’s when I saw the car wrapped around the light pole.” With an orange glow coming from under the hood, Bray instantly knew it was more than just a fender bender. “So many things went through my mind. Is someone in there and will the car explode? So, I said to my wife call 911. I got dressed as fast as I could and ran out to the vehicle.” Bray assessed the scene quickly and it didn’t look promising at the outset. He explained, “one guy got out through the back seat, and another guy jumped out through the front passenger-side door. The BMW’s windows were tinted and the car was quickly filling up with smoke. I asked the two guys if anyone was still left in the car,

but they weren’t making any sense. They were basically incoherent.” Rather than wait for a response that wasn’t forthcoming, Bray acted. “I hit the driver’s window with a flashlight that I always carry with me, but it wouldn’t break. So, I smacked it again and this time it shattered. I could see there was a driver stuck in there and he was yelling, because his legs were on fire. I told my wife Mindy to bring the fire extinguisher.” Bray could see that the door was unlocked, but it wouldn’t open. “I tried to open it a few times, but it was jammed, so I asked the two other guys to help me, but we still couldn’t get it open.” Bray handed his folding knife to one of the passengers and told him to cut the driver’s seat belt while he tried to put out the flames in the car with the fire extinguisher. But every time the flames subsided, they instantly returned. “I figured it must be the fuel line, because the flames wouldn’t stop,” Bray said. “At that point, I realized we had to get this guy out of the car right now or he would burn up. So we cut the seat belt, but he still couldn’t get him out. He was stuck in there.” Bray’s quick thinking and common sense kicked in at that point. “We cut the shoulder belt, not thinking about the lap belt and that’s what was holding him in. I gave my knife to one of the two passengers earlier, but he lost it. But I always carry a Leatherman multi-tool on my key chain and it has a knife. I just reached in there and cut the strap pretty easily.” After several attempts, the three men pulled the driver from the car through the window, burned but still alive, Bray said. “His shoes were melted to where I couldn’t recognize them and his pants were on fire. Within seconds, there was an explosion in the vehicle and pretty soon it was completely engulfed in flames. The whole thing took around three minutes, that’s all it was.” The next day, the Vancouver Police reported that the driver was Brian J. Hall, 22. He was transported to the Legacy Health System’s burn unit in Portland with third degree burns and in serious condition. He and his friends were returning from a University Oregon football

12 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

game that evening when the accident occurred. Whether alcohol or drugs were involved is still under investi-

said. “I am very proud of James for his selfless and level-headed reaction. He always carries a keychain Leatherman

It’s a family affair at Fix Auto Portland East in Oregon, including (from left) Parts Manager James Bray; Operations Manager William Bray; Retired former Owner Jim Eber; Owner Camille Eber (James’s aunt) and Office Manager Iala Bray

gation, according to the Vancouver Police. Bray’s Aunt Camille Eber is his boss at Fix Auto East Portland and she’s extremely proud of what her nephew did on December 3. “He did an amazing thing,” she

Tool, a pocket knife and a flashlight. He had all of them that morning and that is why the driver is now alive. We never expect to be in a situation like that, but James did not hesitate and was prepared. He will always be a hero in my eyes.”

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 13

Van Tuyl Group to Hold Charity Super Bowl Event in the Dallas-Fort Worth Area Super Bowl Weekend, Autobody News to Participate The Van Tuyl Group, an Irving, Texasbased company with more than 70 automotive dealerships across the country, has announced the first annual Charity Super Bowl flag football tournament to be held in the DallasFort Worth area. The event will be held Saturday, February 4, 2012 Ed Attanasio at the Stampede Sports Complex in Southlake, Texas— the day before Super Bowl XLVI takes place in Indianapolis. The Charity Super Bowl will be co-sponsored by the Van Tuyl Group, PPG, and Enterprise Rent-A-Car®. All proceeds are to benefit Trinity River Mission, a volunteer-based, community learning center dedicated to supporting the development of educational success in the children, youth, and families of West Dallas. The day-long Charity Super Bowl will feature 30 4-on-4 teams

competing in a double-elimination tournament. There is an entry fee of $350 per team, with each team allowed to carry a roster of up to eight players. An awards presentation will be held at the end of the day. In addition to enjoying the games, fans attending the Charity Super Bowl can win raffle prizes and participate in a silent auction. “This is one of the most exciting weekends of the year for football lovers,” said Darren Huggins, national collision director, Van Tuyl Group. “We wanted to take that football frenzy and give something back to the community, especially to a charity that does so much good and needs our support. We’ll play 59 games in about 10 hours. We’ve even invited our competitors to take part, and they’ve accepted the challenge. Fans can come out and have a great time cheering on the teams, all while knowing they’re helping a worthy organization. This is going to be a great—and very competitive—day.”

The Van Tuyl Group has long been associated with PPG. Today, PPG Automotive Refinish supplies the company with a wide variety of innovative coating products for its dealerships. Kristen Felder of collisionhub.comwill co-host the bowl’s broadcast with Autobody News’ Ed AtKristen Felder tanasio. For details about the first annual Charity Super Bowl, call 972-670-2948. To learn more about Trinity River Mission, visit www.trinityrivermission.org. For more information about PPG, call (800) 647-6050 or visit www.ppgrefinish.com.

www.autobodynews.com CHECK IT OUT!

State Farm Concedes Another Lawsuit Brought by Gunder’s Auto Center of Lakeland, Fl Upon State Farm’s October 10th, 2011 written denial to provide consideration for a plethora of recommended and necessary repair procedures and materials, Ray Gunder owner of the 44 year old Gunder’s Auto Center instructed his legal counsel, Attorney Brent Geohagan, to prepare the necessary steps to file a lawsuit against the nationwide inRay Gunder surer at the request of and authorization by his customer. The lawsuit was prepared and filed on October 25th along with a Civil Remedy Notice (CRN) which was accepted by the courts on December 16th, 2011. State Farm’s legal counsel responded in a letter to Gunder’s Attorney dated January 19th, 2012 stating, in part, “at all times State Farm acted in good faith and fairly and honestly toward its insured, See Gunder, Page 50

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14 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

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Erie Insurance Earns I-CAR Gold Class Professionals Badge I-CAR has announced that Erie Insurance, an I-CAR Gold Class Professionals business, has equipped its staff of auto physical damage appraisers with the latest training available in the industry, providing them with the knowledge and skills needed to help increase CSI scores, improve operational efficiencies and minimize repair mistakes. I-CAR said that Erie Insurance is now one of only five insurance organizations to have achieved the industryrecognized I-CAR Gold Class Professionals designation as a corporation. Insurance businesses can earn the Gold Class designation at a corporate level, as Erie has, or at a business location. I-CAR CEO and President John Van Alstyne said, “By achieving the Gold Class designation, Erie Insurance has shown a dedication to both customers and employees by investing in training that will provide valuable services. Through Erie's commitment to I-CAR training, Erie Auto Physical Damage Appraisers now possess role-based knowledge that can improve estimating accuracy and help reduce cycle time, both of which lead to increased customer satisfaction.”

Van Alstyne added, “With the rapid rate of change in vehicle technology, continuous role-relevant training is essential. It is another key driver to customer satisfaction, and, ultimately business success.” Jim Brown, Erie VP and manager, material damage, said, “Erie Insurance is committed to delivering top notch service to our customers and is focused on providing our staff with the training and resources needed in today's collision repair industry. By providing our customers with accurate estimates, we can improve claims accuracy, which will allow us to continue providing our policy holders that have been in automobile accidents with the best repair plan possible.” Businesses that have earned the I-CAR Gold Class Professionals business designation are required to achieve high levels of training as well as maintain ongoing annual training, according to I-CAR. “I-CAR is pleased to designate Erie Insurance as a Gold Class business and provide the staff at Erie with a training path that will improve their overall operational efficiencies,” said Joyce Kasmer, I-CAR director of business development.

Update: Delray Beach, FL, Shop Owner’s Opposition to GEICO’s 10% Charge on Domestic OEM Parts Pays Off Eddie Quintela, the shop owner from Delray Beach, FL, who wanted to know why GEICO was charging his

Eddie Quintela sent multiple email letters to GEICO’s local claims supervisor seeking refunds (or at least an explanation) for his customers who are being charged an additional 10% on all domestic OEM parts appearing on estimates. Quintela was vindicated when GEICO removed the 10% deductible on their client’s estimate.

customers a 10% deductible on their domestic OEM parts and other labor operations, regardless of fault, and in addition to regular deductible and/or applicable betterments, has been vindicated. Quintela was finally able to get GEICO to remove the deductible off one of his customer’s estimates.

Quintela, who owns Collision Concepts Inc., asked why GEICO was apparently assessing this fee in Palm Beach county but not in nearby Polk county; and why an insured driving a foreign made vehicle was not deducted 10% for OEM parts, but one driving a vehicle made in the United States was made to pay 10% extra for their parts. Other labor operations were defined as wet sand and buff and all clips and bolts. GEICO claimed it was customary in his market, while Quintela disagreed with proof from surveying other shops in the area. Collision Concepts is not a DRP for the insurer. “Just want to say thank you to Geico for paying what is fair and reasonable to repair our mutual customer’s vehicle,” said Quintela, “It is a good start to what I hope is a new and improved relationship between Geico and all collision repair facilities.” To view the full text of the email exchanges between Quintela and GEICO please see Autobody News January 2012 Edition or www.autobodynews.com, search ‘Quintela’.

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 15

Mike Causey Announces Candidacy for Commissioner of Insurance Position in North Carolina Mike Causey, a sometime Autobody News columnist, announced his candidacy for North Carolina’s Commissioner of Insurance position in Greensboro in early January. Causey chose Dare County to launch his campaign he said, “…to bring focus on the problem of insurance in the coastal Mike Causey counties. Premiums for household insurance, especially windstorm insurance, have skyrocketed in recent years in eastern North Carolina, worse yet in the coastal counties.” Causey said he was urged by North Carolina Republican leaders to seek the office this year because of widespread and bipartisan criticism of how the State Office of Insurance has been administered. Causey is also known as a consumer advocate and lobbyist for the Independent Auto Body Association (IABA) as well as healthcare groups and Organic farming and Healthy Eating advocacy.

This will be Causey’s fourth attempt at the position, after losing in the general election in 1992, 1996 and 2000 to Democratic incumbent Jim Long. Causey, a Greensboro native, will run under the Republican ticket. He currently serves as commissioner on the North Carolina Public Officers and Employees Liability Insurance Commission and is a member of the Guilford County Agricultural Advisory Board. Current Democratic Commissioner Wayne Goodwin is also seeking re-election. In an interview in the Beaufort Observer, the interviewer expressed a “high level of frustration of residents of Beaufort County with the insurance business in our county. Many residents in Beaufort County experienced severe problems with insurance companies following Hurricane Irene and even more have experienced difficulty in obtaining satisfactory coverage at a reasonable price. We asked him what he proposed to do about those problems if elected.” “One of the main reasons I’m running is that I want to help people

16 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

who are having problems with insurance companies,” said Causey. “That would be one of my top priorities in building a “customer-oriented” Insurance Department. As for the problem of difficulty in getting reasonable coverage, particularly comprehensive homeowners’ and mobile homeowners’ policies, I would work with the Legislature to address that problem. One of the specific things I would want to look at is the idea of making every policy equally available across the state. That would broaden the risk pool and I think that is something we need to take a hard look at.” He added: “we need a more competitive insurance industry in North Carolina and that is another thing I would want to work on.” Mike Causey is not to be confused with another Mike Causey, who is a senior correspondent for Federal News Radio. He covers federal employee pay and benefits issues and writes a daily column about these topics. You can read our Mike Causey’s columns at autobodynews.com/columnists/causey-mike.html.

Continued from Front Page

DOI Meeting

port the results of any labor rate survey within 30 days to the department which will in turn make the results available. The survey information will include names and addresses of the auto body shops and the total number of shops surveyed. The 16 current unfair claims settlement practices detailed in Section 790.03(h) of the California Insurance Code will be prohibited, including ‘failing to the attempt in good faith to effectuate prompt, fair, and equitable settlements of claims’. Following are selected quotes from the proposed language: “A survey, conducted pursuant to Insurance Code section 758, shall not be used to cap or reduce the labor rate charged on an estimate or repair order prepared by the claimant’s chosen auto body repair shop or to support the presumption of reasonableness of an insurers’ adjustment of a written estimate provided by a claimant. “Nothing in these regulations shall preclude an insurer from voluntarily negotiating and/or contracting

with an automobile repair facility for a specific labor rate. “Nothing in these regulations shall require an insurer to conduct an auto body labor rate survey. “Nothing in these regulations shall require the insurer to use the posted labor rate of a shop surveyed. “the Department may consider this survey in determining whether an insurer has offered a fair and reasonable claims settlement and/or whether the insurer has supported the reasonableness of its adjustment of a written estimate provided by a claimant. “the Department will not consider any survey submitted to the Department more than one calendar year prior to the date of the written estimate provided by the claimant. “the insurer must survey all known auto body repair shops licensed to perform collision repairs by the Bureau of Automotive Repair in a specific geographic area. All [qualifying] shops that respond to the survey shall be used to determine the prevailing auto body rate in that geographic area. “The survey shall only use labor rates of auto body repair shops licensed by the Bureau of Automotive Repair

“An insurer may only use labor rates in a survey reported by shops that meet specific standards. (see full text for standards). “the following non-public information shall be separately included in any submission to the Department: (1) the labor rate reported by each shop that responded to the survey; (2) the name and address of each shop sent a survey, but did not respond tothe survey, reported for each geographic area surveyed; (3) a copy of the survey questionnaire used to survey the auto body repair shops. (g) For purposes of a survey compliant with this section, “prevailing auto body rate” means the greater of: (1) the mean average labor rate charged by auto body repair facilities in the specific geographic area or, (2) the rate, at or below which, the majority of surveyed shops charge in a specific geographic area. Other statistical methods may be used by an insurer if they are approved by the Department.” “If an insurer submits a survey pursuant to this section, the Department may require the insurer to submit a public version.

“Insurers shall not use any discounted rate negotiated or contracted with members of its Direct Repair Program, or any other Direct Repair Program... as part of a labor rate survey” “a geographic area used by an insurer in a survey shall be no smaller than a United States Postal Service Zip Code and shall not be larger than a thirty (30) mile radius from the center of the geographic area being surveyed.”

Steering With regard to Steering, supplemental language is added to the Insurance Code Section 758.5, expanding the definitions a claimant has chosen an automotive repair dealer when the claimant has specified to the insurer a specific automotive repair dealer... which he or she wishes to repair the vehicle. “Suggest or recommend” means that the insurer has communicated the name or names of one or more automotive repair dealers, has requested that the claimant choose a shop that is different than the shop chosen by the claimant. or communicates any information to the claimant which is rele-

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vant only to the choice of the automotive repair dealer. The insurer shall not communicate false, deceptive, or misleading information to the claimant. including, but not limited to: A. Advising the claimant that the claim payment will be reduced by a lower labor rate, when the insurer has not· conducted an Auto Body Repair Rate Survey. B. Advising the claimant that an inspection of the vehicle will occur at a date that is later than the reasonable time necessary to inspect the damaged vehicle. C. Advising the claimant that the automobile repair dealer chosen by the claimant has a record of poor service or poor repair quality, or of other similar allegations against the dealer, without clear documentation in the claim file supporting these statements. D. Requesting or requiring that the claimant have the vehicle inspected at or by an automobile repair dealer where the insurer has a Direct Repair Program or by any other automobile repair dealer identified by the insurer, after the claimant has chosen an automobile repair dealer. (See full text next page.)

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Full Text of California DOI’s Proposed Amendments to Insurance Code Proposed additions to the current text of regulations are in blue text and proposed deletions to the current text of regulations are indicated in red text.

Title 10, Chapter 5, Subchapter 9, Article 7

Amend section 2698.91 as follows: Section 2698.91

Auto Body Repair Labor Rate Surveys (a) Section 758(c) of the Insurance Code provides that any insurer that conducts an auto body repair labor rate survey to determine and set a specified prevailing auto body rate in a specific geographic area shall report the results of that survey to the department which shall make the information available upon request. The survey information shall include the names and addresses of the auto body repair shops and the total number of shops surveyed. Section 790.03(h) of the California Insurance Code enumerates sixteen claims settlement practices that, when either knowingly committed on a single occasion, or performed with such frequency as to indicate a general business practice, are considered to be unfair claims settlement practices and are, thus, prohibited. The practices prohibited include failing to the attempt in good faith to effectuate prompt, fair, and equitable settlements of claims Section 790.10 of the California Insurance Code provides that the commissioner shall, from time to time as conditions warrant, after notice and public· hearing, promulgate reasonable rules and regulations, and amendments and additions thereto, as are necessary to administer this article 6.5 (Unfair Practices). The Insurance Commissioner has promulgated these regulations in order to accomplish the following objectives: (1) To define certain terms in Section 758(c) of the Insurance Code and to delineate the limited purpose, limited use and minimum standards of a survey conducted pursuant to this Insurance code section; (2) To delineate the purpose, use and minimum standards of a·survey, which the commissioner may consider to be reliable evidence that an insurer has settled or paid

automobile repair insurance claims in a fair and equitable manner; and (3) To promote the good faith, prompt, efficient and equitable settlement of claims.

(a) (b) An “auto body repair labor rate survey” or “survey” is any gathering of information from auto body repair shops regarding what auto body repair labor rate the repair shops charge, used to determine and/or set a specified prevailing auto body repair rate in a specific geographic area. (b) (c) For purposes of a survey conducted pursuant to California Insurance Code Section 758(c), “prevailing auto body rate” means the rate determined and/or set by an insurer as a result of conducting an auto body labor rate survey of auto body repair shops in a particular specific geographic area and used by the insurer as a basis for determining the cost to settle automobile collision, physical damage, and liability claims for auto body repairs (c) (d) Any labor rate survey results reported to the Department of Insurance pursuant to Insurance Code section 758 shall include the following information that will be made available to the public upon its request: (1) The name and address of each auto body repair shop surveyed in responding to the labor rate survey; (2) The address of each auto body repair shop surveyed in the labor rate survey Date the survey was completed; (3) The total number of shops surveyed in the labor rate survey and the total number of shops that responded to the survey, reported for each geographic area surveyed; (4) The prevailing rate established determined and/or set by the insurer for each geographic area surveyed; (5) A description of the specific geographic area covered by the prevailing labor rate reported. (6) A description of the formula or method the insurer used to calculate or determine and/or set the specific prevailing auto body rate reported for each specific geographic area. Any confidential information not required by this section should be removed from the labor rate survey results prior to submitting the survey to

18 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

the Department of Insurance. (e) Insurers shall either conduct the survey in writing or maintain written records of the information gathered by any method other than writing. Upon request. the department shall have access to all records, data, computer programs, or any other information used. by the insurer or any other source to determine geographic area labor rate information. This information will be held confidential pursuant to the provisions of subsection 2698.91(g). (f) Insurers shall send the results of their labor rate survey to the Department of Insurance within 30 calendar days of completing the labor rate survey. The Department shall designate the unit within the Department that will receive labor rate surveys. In cases where the survey data used by an insurer is changing on a regular basis, the survey shall be submitted no less than annually. In order for the Department to more effectively make survey information available to the

public, the Department may require that a survey be submitted in a standard electronic or other format in order to publish survey data on the Department’s public web site. (e) (g)The Department of Insurance will make the public portions of the survey reports available upon written request to the Custodian of Records pursuant to the California Public Records Act, Government Code section 6250 et seq. The additional nonpublic records and other information used by the insurer to conduct the survey shall not be the subject of a Public Records Act request, pursuant to the California Public Records Act, Government Code section 6250 et seq nor subject to other disclosure by the Department except where required to do so by a valid subpoena or court order. (h) The primary purpose of a survey submitted pursuant to Insurance Code section 758 and compliant with this· section is to inform the public about the prevailing labor rates charged ina specific geographic area and to provide insur-

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ers with a starting point in negotiating labor rates with auto body repair shops for a direct repair program. A survey, conducted pursuant to Insurance Code section 758, shall not be used to cap or reduce the labor rate charged on an estimate or repair order prepared by the claimant’s chosen auto body repair shop or to support the presumption of reasonableness of an insurers’ adjustment of a written estimate provided by a claimant pursuant to section 269S.8(f)(3) of California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5, except as provided in Section 2698.92 of these regulations. (i) Nothing in these regulations shall preclude an insurer from voluntarily negotiating and/or contracting with an automobile repair facility for a specific labor rate. (j) Nothing in these regulations shall require an insurer to conduct an auto body labor rate survey. (k) Nothing in these regulations shall require the insurer to use the posted labor rate of a shop surveyed, unless that shop responds to the survey that it charges its posted labor rate in the majority of repairs that it effects, not including what that shop charges through its direct repair program with insurers or other wholesale accounts. Note: Authority cited: Sections 758, 12921, and 12926, Insurance Code. Reference: Sectiong 758 and 790.03, Insurance Code; Section 6250-6276.48, Government Code; and Section 2695.8(f)(3) of California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5. Adopt section 2698.92 as follows: Section 2698.92

Additional Standards for Auto Body Repair Labor Rate Surveys (a) If a survey complies with the standards set forth in Section 2698.91 and the additional standards set forth is this section, the Department may consider this survey in determining whether an insurer has offered a fair and reasonable claims settlement and/or whether the insurer has supported the reasonableness of its adjustment of a written estimate provided by a claimant pursuant to section 2695.8(f)(3) of California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5. In in-

stances where the standards in this section and Section 2698.91 conflict the provisions of this section shall supersede the provisions of Section 2698.91. (b) Unless otherwise authorized by the Department in determining whether an insurer has offered a fair and reasonable claims settlement and/or whether the insurer has supported the reasonableness of its adjustment of a written estimate provided by a claimant pursuant to section 2695.8(f)(3) of California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5, the Department will not consider any survey submitted to the Department more than one calendar year prior to the date of the written estimate provided by the claimant. (c) To be a statistically valid survey, the insurer must survey all known auto body repair shops licensed to perform collision repairs by the Bureau of Automotive Repair in a specific geographic area. All shops that respond to the survey, and which meet the standards set forth in subsection 2698.92(e) of these regulations, shall be used to determine the prevailing auto body rate in that geographic area. (d) The survey shall only use labor rates of auto body repair shops licensed by the Bureau of Automotive Repair to perform auto body collision repairs. This subsection shall not require an insurer to verify the licenses status of surveyed shops with the Bureau of Automotive Repair, in cases where the survey questionnaire asks the repair shop to respond as to whether it is duly licensed to perform auto body collision repairs and, if so, to provide its license number. (e) An insurer may only use labor rates in a survey reported by shops that meet the following specific standards. This subsection shall not require the Insurer to inspect surveyed shops, in cases where the insurer has asked the repair shop in the survey questionnaire whether it meets the specifically identified standards. Failure of a shop to meet the identified standards shall not void a claimant’s right to select that auto body repair shop to effect repairs, as provided in Insurance Code Section 758.5. The fact that a shop does not meet these standards

20 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

should not be construed as permission for an insurer to imply that the shop is inferior or should not be used by the claimant to perform repairs, but only that this shop’s labor rate may not be used in a survey. In order for a shop labor rate to be used in a survey it must: 1. Meet all equipment requirements for auto body repair shops, as required by the Bureau of Automotive Repair and as described in California Code of Regulations, Title 16, Division 33, Chapter 1, Article 6, Section 3351.5, Equipment Requirements for Auto Body Repair Shops; 2. Have proof of garage keeper’s liability and workers’ compensation insurance or equivalent; 3. Have a gas metal arc (GMA/MIG) welder and technicians qualified or certified in proper welding techniques; 4. Have the ability to hoist a vehicle for inspection and repair; 5. Have a four-point anchoring system capable of holding a vehicle in a stationary position during frame and/or unibody pulls which is

suitable for the specific type of vehicle being repaired; 6. Have electrical or hydraulic equipment capable of making simultaneous multiple body or structural pulls; 7. Have a pressurized spray booth equipped with a fresh airsupplied respirator system that meets current federal, state and local requirements; 8. Have the ability to complete and verify four-wheel alignment through computer printout either from an in-house alignment system with at least one technician that is ·certified or qualified or utilize a qualified sublet provider; 9. Offer a written limited lifetime warranty against defects in workmanship; 10. Have the ability to remove and reinstall frame, suspension, engine and drive train components; 11. Have the ability to evacuate, reclaim and recharge vehicles air conditioning system using EPA compliant in-house equipment and certified technicians or use a qualified sublet provider; and 12. Subscribe to a provider of

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structural specifications with periodic updates covering the vehicle structure for the make, model, and year of the vehicle(s) being repaired and wheel alignment specifications for the make, model. and year of the vehicle(s) being repaired. (f) In addition to the public information, as described in section 2698.91(d), the following non-public information shall be separately included in any submission to the Department: (1) the labor rate reported by each shop that responded to the survey; (2) the name and address of each shop sent a survey, but did not respond tothe survey, reported for each geographic area surveyed; (3) a copy of the survey questionnaire used to survey the auto body repair shops. (g) For purposes of a survey compliant with this section, “prevailing auto body rate” means the greater of: (1) the mean average labor rate charged by auto body repair facilities in the specific geographic area or, (2) the rate, at or below which, the majority of sur-

veyed shops charge in a specific geographic area. Other statistical methods may be used by an insurer if they are approved by the Department. (h) The additional data and survey information provided in accordance with this section shall not be the subject of a Public Records Act request, pursuant to the California Public Records Act. Government Code section 6250 et seq. (1) If an insurer submits a survey pursuant to this section, the Department may require the insurer to submit a public version, containing the public information required in Section 2698.91 of these regulations and a version containing the nonpublic information. (i) Insurers shall not use any discounted rate negotiated or contracted with members of its Direct Repair Program, or any other Direct Repair Program, as defined in section 2698.90, as part of a labor rate survey to determine and set the prevailing auto body rate in a specific geographic area. Nothing in these regulations shall be construed to preclude an insurer from includ-

ing the non-discounted or non-contracted posted rate of a Direct Repair Program shop in its survey. For purposes of this section, a geographic area used by an insurer in a survey shall be no smaller than a United States Postal Service Zip Code and shall not be larger than a thirty (30) mile radius from the center of the geographic area being surveyed. Other geographic areas may be used, if statistically valid and which represent a reasonable economic or market area, if approved by the Department. (ii) (iii) Note: Authority cited: Sections 758, 758.5, 790.03, 790.10, 12921, and 12926, Insurance Code. Reference: Sections 758, 758.5 and 790.03 of the Insurance Code; Section 6250- 6276.48, of the Government Code; and Section 2695.8(f)(3) of California Code of Regulations, Title 10, Chapter 5, Subchapter 7.5. DRAFT TEXT REGULATION FILE: REG-2011-00024 Steering Title 10, Chapter 5, Subchapter 7.5,

Article 1 Amend FCSPRs section 2695.8(e) as follows: (e) No insurer shall: (1) require that an automobile be repaired at a specific repair shop; or, (2) after a claimant has chosen an automotive repair dealer, suggest or recommend that an automobile be repaired at a specific repair shop(s), unless all of the requirements set forth in California Insurance Code Section 758.5 have been met, except when a referral is expressly requested by the claimant. For purposes of California Insurance Code Section 758.5 and this subsection, a claimant has chosen an automotive repair dealer when the claimant has specified to the insurer a specific automotive repair dealer registered with the Bureau of Automotive Repair pursuant to sections 9884 and 9889.52 of the Business and Professions Code which he or she wishes to repair the vehicle. For purposes of California Insurance Code Section 758.5 and this subsection, “suggest or recommend” means that the insurer has communicated the name

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or names of one or more automotive repair dealers, has requested that the claimant choose a shop that is different than the shop chosen by the claimant. or communicates any information to the claimant which is relevant only to the choice of the automotive repair dealer. The insurer shall not communicate false, deceptive, or misleading information to the claimant. including, but not limited to; A. Advising the claimant that the claim payment will be reduced by a lower labor rate, when the insurer has not· conducted an Auto Body Repair Rate Survey, compliant with CCR Section 2698.92; B. Advising the claimant that an inspection of the vehicle will occur at a date that is later than the reasonable time necessary to inspect the damaged vehicle, as referenced in paragraph (3) of this section. C. Advising the claimant that the automobile repair dealer chosen by the claimant has a record of poor service or poor repair quality, or of other similar allegations against the

dealer, without clear documentation in the claim file supporting these statements. D. Requesting or requiring that the claimant have the vehicle inspected at or by an automobile repair dealer where the insurer has a Direct Repair Program or by any other automobile repair dealer identified by the insurer, after the claimant has chosen an automobile repair dealer. (3) require a claimant to travel an unreasonable distance or wait an unreasonable period to either to inspect a replacement automobile, to conduct an inspection of the vehicle, to obtain a repair estimate, or to have the automobile repaired at a specific repair shop. For purposes of this section, an insurer shall inspect the damaged vehicle within seven (7) business days after receiving the notice of loss, provided the vehicle is made available for inspection. For purposes of this section, an unreasonable distance shall be no more than thirty (30) miles from the claimant’s residence, unless the nearest repair shop is further than this distance.

Car and light truck 2011 sales in the U.S. continued to rebound, up nearly 1.2 million units in annual sales over the previous year. Nevertheless, the new light vehicle market in the U.S. has a long way to go to match the nearly 17 million annual sales averaged between 1999 and 2007.

Domestic Nameplates Gain Share General Motors, Ford and Chrysler increased their combined sales 15.1%, besting by half the overall 10.3% gain in new vehicle 2011 volume. Chrysler finished the year strong, up more than 26%; while General Motors recorded 13% sales growth during 2011, with Ford climbing 11%. Korean Nameplates Pass Germans Hyundia and Kia combined for a 26.5% increase in 2011 volume, nearly nine times stronger growth than all other foreign nameplates. The strength of Hyundia and Kia is underscored by their passing German nameplates in total U.S. unit volume. Just four years ago (2007), German light vehicle U.S. sales topped Korean volume by more than 35%. Toyota and Honda Volume Down 2011 was a down year for Toyota and

Honda which together shed more than 200,000 vehicles in 2011 volume from their combined 2010 sales. During November and December, however, Toyota posted a 3% increase; while Honda continued to struggle. Nissan, on the other hand, had a strong 2011, up 15%.

Rebounding Foreign Share With Toyota and Honda likely to rebound in 2012 and continued strong growth from Korean and German nameplates, Lang Marketing expects foreign nameplate 2012 share will turn upward, returning to approximately 55% of light vehicle 2012 volume.

Historic Mileage Downturn in 2011 Mileage by all types of vehicles on U.S. roads will suffer at least a 1.3% decline, with car and light truck mileage down even more. This will be the second largest U.S. mileage plunge in more than 55 years (since WW II). Traditional Growth Drivers Absent Aftermarket car and light truck growth in the U.S. traditionally has been propelled by two factors: an increasing number of light vehicles on U.S. roads, and more miles driven by cars and light trucks. In 2011, neither of these two growth factors were in play.

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On Creative Marketing

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Creating A Readable Advertising Piece with Thomas Franklin

I recently received an advertising booklet in the mail. Most of the ads in the booklet were for local cleaners and various personal and home services. There was also one ad for a collision repair shop, but the shop was located many miles from my mail service where I received the booklet. The shop owner had obviously been pressured into buying an ad that was being delivered far out of his effective neighborhood. And even worse than that, it was buried in a booklet that is mostly read by housewives looking for household deals at local businesses. The shop’s ad didn’t even have a coupon that might have gotten at least a couple of people to notice it. The odds of the shop getting a single job out of this ad were probably as remote as the chance of winning the Publisher’s Sweepstakes. Unfortunately, even if this ad had appeared in a newspaper or other widely read publication, it was still unlikely to get many people reading it. There were several reasons for this. First of all, most of the print was too tiny for mature readers to read without a magnifying glass. In a space three and a half inches wide by oneinch deep, fifty-two words were crammed closely together. The shop owner had probably provided the advertiser with a list of services he wanted included in the ad. Ad sales people just want to sell the ad. They’re practically never professional ad design people, so they’ll cram anything into the ad the buyer says he wants. There could have been more space for showing the shop’s many services if half the ad hadn’t consisted of a huge photo of a late model new car. A quick glance at the ad (which is all most people would give it) would suggest the ad was selling a late model vehicle. There was not even a slight indication that this car needed or had ever had collision repair. In the space allocated to this vehicle, there could have been two photos of the same vehicle showing it before and after repairs. Given the brief attention span of most people today, any photo has to tell the desired story very quickly. A good choice of photos

might actually have compensated for the poor quality of the print message. The next problem with the ad was the choice of colors. The lettering spelling out the shop’s services was red on a blue-black background. Reverse type can be very effective, but unless the type is huge, only white or yellow or some tint in-between will stand out enough to be easy to read. Blue type would have been almost invisible and the red wasn’t much better.

Ad composition has to take into account the wide variety of people who will read it. Older people will generally have a problem with small print. Men are often slightly colorblind. The colored type would be doubly difficult to read for an older man who might be a likely prospect with an expensive vehicle to repair. One modification could make red, blue or green stand out on a dark background: That would be a slightly larger outline type in white or yellow behind the

darker lettering putting a bright outline around each letter. But this is a fairly complex type process, probably not even known to this advertiser. Publications always send a copy of an ad before printing it for the buyer to proofread. But shop owners are often rushed and would probably not take much more than a quick look at it. It’s unlikely this shop owner gave this ad much thought or looked it over at all. Print advertising, whether on paper or displayed in a website, must

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be instantly readable and provide a compelling reason for the reader to respond to the ad and come in for a service. A restaurant can send out a menu listing all of the selections they offer, but a list of a shop’s services isn’t an ad—it’s a menu and belongs in a brochure, not an ad. Ad readers are motivated by price, speed of service or quality. For a body shop, price is only relevant for self-pay services, but speed of service can be very important. The quality of a collision repair is assumed to be good if one’s insurance company is paying for it. When quality is mentioned, the reader’s question will be, “Compared to what?” To establish quality, an ad could refer to on-line reviews, prior customer comments or even just the

length of the shop’s warranty, but these would require a much larger ad than one-by-three inches. When it comes to print ads, less is more. If someone can be enticed to read an ad with fifty words or less (and that is already doubtful), those words had better convince the reader that this is a unique shop, so significantly better than the competition that he or she would be a fool to go anyplace else.

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ASE Announces New Officers, Governors for 2012 The National Institute for Automotive Service Excellence (ASE) announced in December the officers for its Board of Directors for 2012. Mike Phillips, V.P, Organizational Development, NAPA Auto Parts/Genuine Parts Company, Atlanta, Ga., is Chairman; Rob Barto, Manager, Technical Training Design, Nissan North America, Franklin, Tenn., is Vice-Chairman; Glenn Dahl, Senior Coordinator, Technical Education, Bridgestone Retail Operations, LLC, Bloomingdale, Ill., is Treasurer, and Greg Gaulin, Owner, Gaulin’s of Williamsville, N.Y., is Secretary. John Pfennig, Manager, Service Education for Navistar, Inc. in War-

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renville, Ill., serves as Past Chairman. “2011 was a milestone year for the ASE certification program as we completed the move to our new computer-based testing (CBT) format,” said Tim Zilke, ASE President. “The leadership and guidance of the ASE board is vital to ensuring the ASE program keeps pace with our changing industry. Through the outstanding commitment of ASE’s all-volunteer board and the support by the companies that encourage such talented people to serve, ASE will continue to offer our automotive professionals the high-quality credentialing program they have come to expect.” Also announced were newly elected members to ASE’s Board of Governors, representing various segments of the industry. The new Governors are: Bobby Bassett, Manager of Training North America Automotive Market, Gates Corporation, Ridgeland, Miss., and John Prosser, Manager Technical Training Operations, American Honda, Torrance, Calif. “I’d also like to take this opportunity to thank our outgoing board members for their service over the years,” Zilke continued. Stepping down as their terms expire are Al Duebber, President, Duebber’s Automotive Service, Inc., Cincinnati, Ohio; Joe Torchiana, President, One Stop Tire and Auto Service, Inc., West Chester, Pa., and Lori Blaker, President, Technical Training Incorporated (TTi), Rochester, Mich. “Each of these individuals volunteered their time to serve on the ASE board to the benefit of our industry and the thousands of automotive service professionals who proudly wear the ASE Blue Seal. We thank them for their service and wish them continued success,” said Zilke. The National Institute for Automotive Service Excellence was established in 1972 as a non-profit organization to help improve the quality of automotive service and repair through the voluntary testing and certification of automotive technicians and parts specialists. Today, there are more than 360,000 ASE-certified professionals at work in dealerships, independent shops, collision repair shops, auto parts stores, fleets, schools and colleges throughout the country. For more information about ASE, visit the ASE web site at www.ase.com.

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 25

I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Accessing and Repairing Body Mount Cage Nuts for the Ford F-150 Beginning with the 2009 model year Ford F-150, the cab body mount bolts are secured with a cage nut. The cage nut is held in position inside a cage nut retainer that is attached to the inside of a floor crossmember.

pan at the cage nut location. Be careful not to drill into the cage nut retainer. Ford service information specifies using a 50 mm (2") hole saw for this procedure (see Video at www.i-car.com). Accessing the drilling locations on the floor pan will require removing certain parts, and pulling back the carpeting. Depending on the cab style, parts that may require removal include the scuff plate trim panel, console, and seats. The locations of the body Figure 1 - The body mount bolt cage nut is secured in mount cage nuts vary deposition inside a cage nut retainer by tabs that are folded pending on the F-150 cab against the cage nut style. Locations for the ReguThe crossmember is attached to lar Cab model will differ from those the underside of the floor pan, which of the SuperCab and SuperCrew modcreates an enclosure for the cage nut. els. The retainer has two nut retaining Locations for the SuperCab and Sutabs, one on each opposing side of the perCrew are the same (see Figure 2). nut that are folded against the nut to Refer to the appropriate service inforhold it in place (see Figure 1). mation for the specific location and In some instances, the cage nut procedure for drilling the hole. may spin when attempting to remove or install a body mount bolt. If the nut Repair Considerations spins, it will have to be accessed and Through the drilled hole, locate the cage nut retainer tabs and bend them upward to allow access to the cage nut (see Figure 3). Use a suitable tool to hold the cage nut and remove the body mount bolt. The cage nut may be reused if the threads are not damaged. If damaged, it must be replaced with the correct part number (#78101C38). Ford service information warns Figure 2 - Shown are two of the body mount/cage nut against using a standard locations on the floor pan of this F-150 SuperCrew nut as a replacement, as secured in order to complete the bolt this may result in damage to the vehiremoval and the installation process. cle. Accessing the Cage Nut The body mount bolts are oneAccessing the cage nut will require time use, and must be replaced once drilling a hole from the top of the floor removed. Be sure to replace these

bolts with the correct part number. The bolt part numbers vary depending

Conclusion When attempting to remove the body mount bolts on some Ford F150 models, be aware that there may be situations when the cage nut may spin preventing removal of the bolt. Removing the body mount bolt will require using a hole saw to provide access to the cage nut in order to secure it to prevent it from spinning when turning the bolt. Locations of the cage nuts vary depending on the F-150 cab Figure 3 - Shown is a cage nut retainer with the tabs bent upward allowing access to the cage nut style. Ford service information includes proceon the cab style. Torque the new bolts dures for locating and drilling the holes. to 115 Nâ&#x20AC;˘m (85 lb-ft). For comments or suggestions on A service plug (part #W651023S300) is available to cover the hole the Advantage Online, please contact I-CAR at following installation of the body advantage@i-car.com. mount bolt.

Give us your opinion on matters affecting the industry.

write us! publisher@autobodynews.com

26 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 27

Shop Showcase

Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251

The Elite Group Collision Centers Acquires Firestone Auto Body in Downey, CA, Increasing Their Locations to Eight with Erica Schroeder

The Elite Group Collision Centers is a group of eight collision centers in the Los Angeles, Orange County and Palm Springs area owned by Mike Salyards and Tim Mullahey.

ange, Harbor Collision and Signal Hill Auto Body were combined into Prestige Too Collision Center of Long Beach, and most recently, Firestone Auto Body in Downey. 5 months ago the group also went into partnership with Steve Vettel of Pacific Collision Centers on a location in Cathedral City. The group also has owned Central Coast Collision in Arroyo Grande for several years but only recently brought it under the Elite Group brand due to its distance from the Cone Collision Center in Fullerton, CA, was the first location rest of the locations. Central in the Elite Group of Collision Centers, it still remains the Coast is located near San business’ headquarters today Luis Obispo, CA. “We take a lot of pride in the Mike managed Cone Collision Center in Fullerton, CA, for 15 years names of our collision centers,” said when Tim bought the dealership Cone Mike. The locations Elite Group has was connected to, Cone Chevrolet— acquired had great reputations in later changed to Mullahey Chevrolet. their communities before being Tim and Mike decided to go into partbought by Elite Group, so they mainnership together starting with Cone tained their original names and thus Collision Center; and as they grew their prestigious reputations, merely they branded their group of collision adding the Group brand name as supcenters under the Elite Group Brand, port. but kept the collision centers’ original The group is able to see about names due to their great reputations 1000 cars per month and grosses in acquired over time. excess of 25 million per year. They have about 165 employees across all locations that work on vehicles for several insurance companies through DRPs. “There are very few Insurance Carriers we aren’t aligned with,” said Mike, referring to Direct Repair Relationships. Following in the footsteps Cone Collision Center has a state of the art reception area of the original Cone ColliSince going into partnership, sion location, all of the locations acMike and Tim have bought seven quired are large locations. reputable collision centers. Over the Cone Collision has remained the hub of the group’s locations, where past 10 years they bought Crenshaw they have a full Korean and Hispanic Collision Center in Los Angeles, marketing team in order to reach out Prestige Too Autobody in Torrance, to those communities near their locaAmerica’s Collision Center in Or-

all of the other locations Elite Group has acquired, and is able to do about $400,000 in work each month with 22 employees. “We really take a lot of interest in our employees,” said Mike. When Elite acquires a locations, they usually keep most everything about the business the same, due to their The Elite Group acquired Firestone Auto Body in Downey, CA, at the acquisition of beginning of 2012, in order to service their nearby dealership well-established Being a family-oriented busi- locations. This includes most of the ness, Mike’s two sons also work at staff. According to Mike, a lot of the the Fullerton location; Travis has employees at Cone Collision have been the General Manager there for been there since he began there 17 about 5 years and Michael “Cole” is years ago. a Service Advisor who handles the “We take a lot of pride in having GEICO insurance account. some of the best techs in the industry,” said Mike. Elite Group also sends a lot of their employees to training, mostly through Cerritos College, a local junior college. According to Mike, Elite Group’s employees have been very successful in those classes and they have been able to create some reFirestone Auto Body’s reception area ally good, new employees. Tim also owns two Ford dealerThe Elite Group’s employees also ships, one being Central Ford of Los maintain their I-CAR Gold and PlatAngeles. The dealership is a few inum statuses. blocks away from Firestone Auto The Elite Group of Collision Body, so the group decided to buy Centers’ mission is to satisfy 100 perFirestone in January of 2012 to serv- cent of their customers, 100 percent ice this dealership. of the time. According to Mike, they “We wanted a location to service achieve this goal by having the best that dealership and because of Fire- employees working together with a stone’s reputation we decided to ac- common purpose. quire it,” said Mike. Elite Group will keep Firestone Cone Collision Center under the same name that it has al- 600 W. Commonwealth Ave. ways operated in order to keep their Fullerton, CA. 92832 existing, faithful clientele. (714) 871-2545 The location is quite large, like www.elitegroupcc.com

In a letter released December 20th, 2011, the Society of Collision Repair

Today contributing editor, Adam Belz, and entitled, Auto body shops say they,

tions. Mike’s daughter, Megan, runs the marketing department for the group.

SCRS Responds to Article on Insurer Involvement in Setting Rates Specialists (SCRS) provided commentary on an article written by USA

28 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

not insurers, should set costs.

See SCRS, Page 40

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40 Technicians Honored at ASE 2011 Annual Meeting in Charlotte, NC Forty automotive professionals were recognized on November 16, 2011, at the Fall board meeting of the National Institute for Automotive Service Excellence (ASE) held at the Marriott City Center in Charlotte, NC. The annual awards banquet spotlights top scorers on the ASE Certification Tests. Thirty different companies from both OEM and Aftermarket segments sponsored the individual technician recognition awards in the Auto, Truck, Collision and Parts categories, along with three instructor awards. In addition to looking for top scores on ASE tests, award sponsors examine on-the-job excellence, community service and other factors when selecting honorees. This year’s celebration in Charlotte was enhanced by a visit from five former Team ASE drivers, who volunteered their time to sign autographs and meet the award winners in person. NASCAR drivers Kasey Kahne, Jason Leffler and Mike Bliss were joined by Ted Musgrave and Jimmy Spencer to help make the reception a memorable affair. In addition, there

Zilke, ASE President & CEO. “We couldn’t do this without the support of our many award sponsors, whose ranks include some of the best-known names in the industry. Their commitment to excellence is reflected in the talented individuals we recognize each year.” The National Institute for Automotive Service Excellence was established in 1972 as a non-profit organization to help improve PHOTO CREDIT: ASE, ASE 2011 Technician Award the quality of automotive Winners: Top row: Steven Sass, Brad Dressen, Ken Passmore, Adam Russell, Mike Hunkler, John Roderich. 4th service and repair through row: Warren Butrim, Pat Nicoll, Kevin Treichel, Anthony the voluntary testing and Bausano, Scott Rosencrantz, Noel Barnhart, Andreas Miller. certification of automotive 3rd row: Steven Ray, Collin Harris, John Gillies, Dan Walsh, technicians and parts speRob Bender, Neal Nuce, John Kasper. 2nd row: David White, cialists. Today, there are Sandro Giordano, Alan Davis, Shawn Lehman, Jesse Berryman, Rob McNees, Jack Harlan, Joseph DeLap, John, more than 360,000 ASEWood, Glenn Ferrer. 1st row (seated): Joseph Londo, Dan certified professionals at Pratt, Joseph Young, Mike Baker, MSgt. Andrew Slater, work in dealerships, indeMike Byer, Leo Dufault, Andy Olson, Jeff Heinz, Mark Regan pendent shops, collision re“ASE has been honoring the best pair shops, auto parts stores, fleets, of the best in our industry for more schools and colleges throughout the than 30 years, and this year we recogcountry. For more information about nized forty outstanding individuals ASE, visit the Web site at from all across the nation,” said Tim www.ase.com. were two new award sponsors this year, one being the first ever from the military, representing the US Air Force.

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30 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

ASE 2011 Award Winners ASCCA/ASE Master Automobile Technician of the Year: Patrick Nicoll, Pat’s Automotive, Santa Maria, Calif. AYES/ASE Instructor of the Year: David White, Parkside High School, Willards, Md. BodyShop Business/ASE Master Coll. Repair & Refinish Tech of the Year: Michael Baker, Pro-Tech Collision, Pacific, Mo. Bridgestone Retail Operations/ASE Master Automobile Tech of the Year: Noel Barnhart, Firestone Complete Auto Care, Delmar, Iowa. Chrysler/ASE Master Automobile Technician of the Year: Scott Rosencrantz, Garber Chrysler Dodge Jeep Ram, Flushing, Mich. Chrysler/ASE Master Collision Repair & Refinish Technician of the Year: Mike Hunkler, Larry Hillis Chrysler Dodge Jeep Ram, Poplar Bluff, Mo. Delco Remy/ASE M/H Truck Electrical/Electronic Sys Tech of the Year: Joseph DeLap, Ryder, Dakota, Ill. Delmar Cengage Learning/ASE Auto-

GENUINE SERVICE & PARTS

mobile Technician of the Year: William Davis, JD Byrider, N. Baltimore, Ohio. Freightliner/ASE Master M/H Truck Technician of the Year: Robert McNees, Jr., Truck Centers, Inc., Middle Brook, Mo. Sterling/Western Star/ASE Master M/H Truck Technician of the Year: Kevin Treichel, Don’s Truck Sales, Greene, Iowa. Gates/ASE Master Automobile & L1 Technician of the Year: Andreas Miller, Stonum Automotive, Longmont, Colo. GM/ASE Master Automobile Technician of the Year: Jeffrey Heinz, Hendrick Auto Mall, Apex, N.C. Honda/ASE Master Automobile Technician of the Year: Joseph Londo, Bianchi Honda, Erie, Penna. Acura/ASE Master Automobile Technician of the Year: Sandro Giordano, Acura of Turnersville, Blackwood, N.J. Identifix/ASE Aftermarket Drivability Technician of the Year: Andy Olson, Courtesy Car Care, Holmen, Wisc. Midas International/ASE Automobile Technician of the Year: John Gillies III, Midas Auto Service Experts, Lud-

ington, Mich. Mitchell 1/ASE Technician of the Future: Steven Ray, The Automaster BMW, Essex Junction, Vt. Motor Age Training/ASE Master Automobile & L1 Tech of the Year: Joseph Young, San Diego Miramar College, San Diego, Calif. NATEF/ASE Instructor of the Year: Bradley Dressen, Butte College, Orland, Calif. Navistar/ASE Master M/H Truck Technician of the Year: Shawn Lehman, Tri County Motor Sales, Stoystown, Penna. Navistar/ASE Master School Bus Technician of the Year: Kenneth Passmore, Midwest Transit Equipment, Indianapolis, Ind. Navistar/ASE Parts Specialist of the Year: Adam Russell, Sr., Goodman Truck & Tractor, Amelia, Va. Navistar/ASE Truck Paint & Refinish Technician of the Year: Collin Harris, Int'l Truck Sales of Richmond, Manquin, Va. Nissan/ASE Master Automobile Technician of the Year: Glenn Ferrer, Nissan of St. Augustine, Palm Coast, Fla. Infiniti/ASE Master Automobile Technician of the Year: John Roderich,

Fields Infiniti of Glencoe, Phillips, Wisc. Pep Boys/ASE Master Automobile Technician of the Year: Mark Regan, Pep Boys, Walpole, Mass. Peterbilt/ASE Master M/H Truck Technician of the Year: John Wood, Interstate Truck Center, Oakdale, Calif. PPG/ASE Master Refinish Technician of the Year: Robert Bender, Bender Auto Repair, Saltsburg, Penna. Snap-on/ASE Master Automobile Technician of the Year: Jack Harlan III, Harlan’s Auto Care, Canfield, Ohio Snap-on/ASE Master Coll. Repair & Refinish Technician of the Year: Neal Nuce, Precision Collision Repair Center, Wake Forest, NC Snap-on/ASE Master M/H Truck Technician of the Year: Steven Sass, Sr., A.N.D. Service, Inc., Carlstadt, NJ Standox/ASE Refinish Technician of the Year: Daniel Walsh, Boch Collision Center, West Bridgewater, Mass. Subaru/ASE Master Automobile Technician of the Year: Daniel Pratt, Flatirons Subaru, Firestone, Colo. TECH-NET Professional/ASE Master Automobile Tech of the Year: Michael

Byer, Mike Byer Auto & Truck Repair, Asheville, NC. Toyota/ASE Master Automobile Technician of the Year: Warren Butrim, Koons Toyota of Annapolis, Arnold, Md. Toyota/ASE Master Coll. Repair & Refinish Technician of the Year: Leonel Dufault, Toyota of North Dartmouth, Westport, Mass. Lexus/ASE Master Automobile Technician of the Year: Anthony Bausano, Lexus of Smithtown, Huntington, N.Y. USAF/ASE Technician of the Year: Msgt. Andrew Slater, Ramstein Air Base, Germany, US Air Force. Valvoline Career Tech/ASE Instructor of the Year: John Kasper, Millington High School, Memphis, Tenn. Volvo/ASE Master Automobile Technician of the Year: Jesse Berryman III,Koons Volvo, Westminster, Md.

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The Honda and Acura Dealers Listed Here are HO ND A CA L IF O R N I A

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Galpin Honda M i s s i o n H il l s

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Honda Cars of Corona Corona

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Reseda

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ARIZONA

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Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 33

Service, Service, Diagnostic Di Diagnostic gnostic and an d Mechanical M e chanical ch aniccal al NEWS nd Mec echanical Mech ech ec hanical ca

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Diamond Standard Announces “Security Shield” Extends Product Liability Protection to Shops

Diamond Standard Brand Parts has announced a program of extending product liability protection to approved collision centers free of charge to address major concerns about liability on parts. Diamond Standard says its “Security Shield” provides the collision center leverage and protection against structural parts usage demands into repair, the various levels of parts quality which continues to exist, substitution of parts and the growing reality of aftermarket structural parts produced by manufacturers with no U.S. assets or product liability coverage putting the shop in the position of being the “manufacturer” in a potential lawsuit seeking damages due to a part defect or failure leading to serious injury. Program reaction has been highly positive among the major associations with the Automotive Service Association (ASA) and its collision members being the first association to participate in the program. ASA and Diamond Standard announced in January a strategic alliance based on ASA member product liability protection from Diamond Standard. This unique program underscores ASA’s focus on exacting standards for a complete and safe repair, and provides clear and

meaningful evidence of Diamond Standard’s confidence in standing behind the highest quality parts and parts policies. A unique website supporting the strategic partnership and coverage benefit will debut Feb. 1, 2012 providing ASA members access to the full program content including background, coverage, a limited lifetime warranty statement and a convenient “Certificate of Coverage” download feature. The Diamond Standard Security Shield site will also debut Feb. 1, 2012 (www.diamondstandardsecurityshield.com). The issue of shop liability and timeliness of the Diamond Standard Security Shield program cannot be understated and takes on greater importance as evidenced by a feature story earlier this week regarding shop liability. In the January 9, 2012 – Vol. 19 addition of Crash Network (www.CrashNetwork.com) the feature story “Liability Questioned” was published based on New Jersey shop owner Joe Lubrano’s expressed concern related to non-OEM parts. Specifically Mr. Lubrano posed the question of a shop being held responsible for diminished value or liability claim if a non-OEM absorber, reinforcement or hood does not function

properly in a subsequent accident, possibly causing body injury in a litigious society and called on the Collision Industry Conference meeting this week to take this matter as seriously as he does. Diamond Standard Security Shield product liability protection firmly addresses Mr. Lubrano’s concerns. Diamond Standard Security Shield product liability protection in total, represents $40 million in product liability coverage as added security to the collision center owner against the unlikely scenario of personal vehicle-owner injury directly related to the failure of new Diamond Standard parts in the repair manufactured by Reflexxion Automotive Products or Production Bumper Stampings Inc. $15 million in product liability coverage is extended by the specific manufacturing group member for its Diamond Standard Brand Parts. The incremental $25 million is premiere coverage extended to approved collision centers as co-insured totaling $40 million in total coverage directed to quality, industry best practice shop associations, DRPs, MSOs, facilitators and consolidators recognized by the industry as ordering and installing only the highest level quality structural components.

“Giving back to the industry front line is a central premise of Diamond Standard throughout the year and pivotal piece in our development of a unique branding program addressing the major issues in our industry. To receive the honor and distinction of ASA’s strategic partnership and support of Diamond Standard Security Shield validates the singleminded purpose of Diamond Standard—not only manufacturing and marketing the safest and highest quality parts available, but also precision parts using correct material, tool building, stamping and process controls here in America,” said Mike O’Neal, President of Diamond Standard Parts, LLC. “It is Diamond Standard’s ‘Culture of Quality’ that permeates its very fabric with a commitment to the industry of ‘One Quality of Manufacturing’ consistency that separates Diamond Standard from other Manufacturers. It is the “One Quality” part manufacturing commitment with USA assets in place that uniquely enables Diamond Standard to provide the collision shop owner with the solution and avoid risk due to the use of structural parts from foreign manufacturers offering no product liability protection.”

West Virginia v. Liberty Mutual Salvage Parts Lawsuit Moved to Federal Court

A lawsuit alleging that insurance company Liberty Mutual implemented policies that called for body shop owners to repair new vehicles using “junkyard” parts has been moved to federal court. State Attorney General Darrell McGraw filed the lawsuit against Liberty Mutual and St. Albans body shop owner Greg Chandler last month, alleging that the body shop followed an illegal insurance policy to install used or aftermarket crash parts on vehicles manufactured within three years of the date of the crash. The West Virginia Attorney General’s office calls it an effort to “buy time” in the lawsuit brought by the state’s Attorney General against it and one of its DRPs—Greg Chandler’s Frame & Body LLC (Greg’s Body

Shop)—over the use of salvage parts moved to federal court. The change forced the cancellation of a hearing in which a circuit court judge could have ordered Liberty Mutual to temporarily discontinue the practice of calling for the use of salvage parts on vehicles three years old or newer, a violation of state law (which similarly prohibits the use of non-OEM parts on such vehicles without the owner’s consent). Attorneys for Liberty Mutual argued the case belongs in federal court because they say it involves issues related to the federal Magnuson-Moss Warranty Act. West Virginia Attorney General McGraw sued Liberty Mutual Insurance Company and Greg’s Body Shop, for repairing vehicles with salvage parts in violation of state law.

34 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

Attorney General McGraw’s suit, filed in the Circuit Court of Kanawha County, details repeated violations of the West Virginia Consumer Credit and Protection Act by Liberty Mutual and Greg’s Body Shop. McGraw’s office alleges that Liberty Mutual required body shops to repair vehicles with reconditioned, remanufactured, and used parts in violation of West Virginia law. In addition, Liberty Mutual failed to provide the proper notices and written statements to consumers. In West Virginia, it is unlawful for an insurance company to require the use of salvaged, used, or reconditioned OEM crash parts when negotiating repairs of motor vehicles within three years of manufacture, without acquiring the motor vehicle owner’s

consent. McGraw’s office began investigating Liberty Mutual and Greg’s Body Shop after receiving evidence that new vehicles were being repaired with “junkyard parts.” The investigation by McGraw’s Consumer Protection Division confirmed that Liberty Mutual employed a policy that violated state law. McGraw’s lawsuit asks the court to enjoin the defendants from engaging in this unlawful activity in the future, seeks restitution for consumers whose cars were illegally repaired with “junkyard” crash parts, and asks for civil penalties. Consumers who think they have been a victim of Liberty Mutual should contact Attorney General Darrell McGraw’s consumer protection hotline at 1-800-368-8808.

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

Check Engine Light Paranoia with Gonzo Weaver

Charlie comes in every now and then. I guess you could say he’s a regular but I think I would call him more of an opportunist when it comes to his car repairs. He’ll go to an oil change place for oil changes, a tire shop for tires, a transmission shop for transmission, so on and so on. If there is an opportunity to get his car into a shop he’ll make an appointment and get it in. But, the one thing he seems to always use me for is the check engine light. Normally, most people don’t pay that much attention to the check engine light unless it’s staying on. Not Charlie, he’s absolutely paranoid it will come on and stay on. Somehow, some way somebody has told him that the check engine light is not a warning of a problem with the exhaust emissions or related engine/transmission problems but the precursor to a ticking bomb that will

bring an end to his ride of rides. It’s as if the check engine light is the trigger to the doom and gloom of his car. At times, Charlie thinks the check engine light has stayed on a longer than it should when he starts it up in the morning. This prompts an immediate phone call and a trip to the repair shop. With all these trips he’s seen me use several different code readers, scanners, O-scopes, and laptops that I have at my disposal to check codes and related engine systems. There’s times I think he just wants to see what new gadget I’ve got that I can hook up to his car. The more bells and whistles I throw out there the more he seems to show up with another reason for me to recheck his car. He can probably name a bunch of the scanners that I’ve used, seriously, he’s been to the shop that many times. Sometimes I wish he would take up antique car collecting; go buy

something old enough that it doesn’t have a check engine light in it and see if he gets the idea that the entire universe doesn’t revolve around a service light. It’s not like he doesn’t remember cars without check engine lights he just doesn’t seem to understand that a car can operate without one anymore. Why he’s even told me about an old car he drove while he was in college that leaked oil so bad that he had to keep a can or two with him at all times. Talk about something that sounds like it was on the verge of doom and gloom, also sounds like the typical college kids car. So you would think he would have some understanding of the inner workings of the automobile, but apparently once the service light came into the everyday vocabulary his understanding has wasted away just like the oil in that old car from college. I’ve tried to explain to him about

the meaning of the service light and about the various reasons for it to come on but it just doesn’t seem to sink in. I’m hoping the day never comes that his old car actually does turn on the check engine light, because if it did he’d probably worry himself all the way to a coronary and he would have to have the car towed in while I’d have to make a call to 911 and have him towed to the emergency room. Of course I hope that never happens, but with him I could see something along those lines. I generally let him watch the scanners do their work or have him watch a graph while I check things under the hood. The other day he was concerned about his O2 sensors and wanted to know if they were working correctly because he thought he saw the check engine light pop on and then go right back off. There were no See Check Engine, Page 39

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 35

Hitting the Streets with the G & C Auto Body Meter Beaters sitting there waiting for the meter to expire,” Crozat said. “She saw me coming, but she gave me the ticket It all began 20 years ago as a knee-jerk reaction to a bad experience with a anyway. I was really mad, so I went to the bank and got a bunch of quarters. parking meter maid, but today it has been lauded as a successful social ex- I told my kids—get out there and put periment while evolving into a highly money in all these meters before they expire. That’ll show ‘em.” effective viral marketing endeavor. But brilliant ideas don’t always The G & C Meter Beaters are a Santa Rosa, California, based creation of gain traction overnight and the Meter Beaters were a prime example. To say that the powers-that-be in Santa Rosa weren’t enamored with Crozat’s idea was a major understatement. “They threatened my kids and told them ‘your daddy is going to jail’, ” Crozat explained. “They didn’t like the fact that we were stopping people from getting parking tickets and said we were interfering with their opThe Meter Beaters (from left) include Brendan Harris, MB Chief eration. The media Johnny Reguera, Monique Grayson, her son Jerome Grayson and Dawn Marie Vance, as they hit the streets of Santa Rosa, flocked to the story and Calif. every holiday season for 10 days to pay for people’s parkpretty soon the city ing and avoid parking tickets backed off.” Over the years, Crozat and his Gene Crozat, the owner of G & C Auto Body, with seven locations in the Meter Beaters have touched many Northern Bay Area, with an eighth lives positively, he said. “Once people get our flyers on their windshields opening in June. telling them they’ve just saved them During the 10 days right before from a parking ticket, they’re so Christmas, the G & C Meter Beaters save drivers from getting parking thrilled they send us money, which we donate to charity. I have some incredpenalties by feeding their meters before the City of Santa Rosa’s parking ible letters here from people, includenforcement officers are able to nail ing one gentleman who thought he was getting a ticket when he returned to his car after being at the hospital. His doctor had just informed him that he was dying, so when he saw the ticket it really hit him hard. But, then when he realized there was no ticket, it made his day. Here was a guy with tragic news, probably still in shock, but avoiding that parking ticket was a big deal for him.” When people return to their vehicles and see something on their windshield resembling a parking ticket they’re obviously upset, but instead One of the proud Meter Beaters is Dawn Marie they get this little holiday greeting Vance, whose father works for one of G & C from the Meter Beaters of G & C Auto Auto Body’s shops Body: them with a $33 parking ticket. It’s a program that Crozat began when he While you shopped was upset over what he felt was an un- The Meter Maid stopped fair parking ticket he received two To give you a Christmas Treat decades ago. The price of this gift “I was rushing back to my car Could cause you a fit after shopping and the meter maid was As well as a present so neat by Ed Attanasio

36 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

The G & C Elves Thought your rage could be shelved If the system could just be beat So we put in a dime To add to your time And keep that maid in her jeep. Your expired meter was paid for by: G & C Auto Body “Meter Beaters” Happy Holidays

Steve P. from San Francisco happily displays his parking voucher, purchased on his behalf by the Meter Beaters, sponsored by G & C Auto Body in Santa Rosa

To see the Meter Beaters in action for ourselves, we walked around downtown Santa Rosa with them one sunny, warm December afternoon. The crew consisted of eight high school students earning extra money during the holidays. By skillfully feeding electronic parking machines and distributing the vouchers on cars whose time was about to expire, The Meter Beaters take their jobs seriously. Just ask the leader of the pack, Johnny Reguera, who runs G & C’s towing division and oversees the Meter Beaters efforts every holiday season. “We get better at this every year,” Reguera explained. “It’s an art form actually. With the old parking meters, it was all about feeding coins into them and now we have to pay for the vouchers and continually check the times. But, it works well and we know that we’re saving shoppers and residents from getting parking tickets. Some people know when we’re coming, so they don’t pay for their parking during that time. They know we’re going to beat the meter, so they rely on us. I wouldn’t recommend it, but it seems to work for some.” As we observed the Meter Beaters in action, we encountered several people right after avoiding a parking ticket, courtesy of G & C. A shopper

named Odessa J. was upset and holding what she thought was a parking ticket in her hand when she approached us. When Reguera told her to look again, she screamed out in joy. Would you now take your car to G & C if you get in an accident, we asked her? “Definitely,” she exclaimed. “What a nice thing for them for do, especially during the holidays!” And that was pretty much the same thing we heard from every one we ran into. Toni Guanella is the Manager of Parking for the City of Santa Rosa. She explained that at one time the city wasn’t happy with Crozat’s Meter Beaters, but now they embrace them for obvious reasons. “We love them, because in the end it brings more money to the city. With a staff of just five, we can’t catch everyone. I know there may have been some issues with the Meter Beaters in the past, but now we appreciate it and never interfere. By filling these meters before they expire, we’re getting a boost in revenue

Meter Beater Brendan Harris purchases parking vouchers to distribute them on car windshields throughout downtown Santa Rosa, Calif.

for Santa Rosa. I know they spend a lot of time and money on this project, but in the end the goodwill pays off, I’m sure. I tell my people to stay out of the Meter Beaters’ way and let them do their jobs. I know that people in town anticipate it every holiday season and we do too, honestly.” Do the G & C Meter Beaters make a difference in Santa Rosa every year, we asked Chief Johnny Reguera? “No doubt about it,” he said. “I can tell by the smiles and the warmth we get from people right after we’ve saved them a ticket. It’s not cheap doing this—we’re going to spend around $10,000 this year—but for us, it’s worth every quarter…or dime!”

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 37

Automakers Forecasted to Add Thousands of Plant Manufacturing Jobs Over the Next 3 Years Due to continually increasing auto sales since the government auto bailouts in 2009 have spurred growth and optimism with US automakers. According to the Los Angeles Times, the U.S. auto industry plans to add thousands of jobs this year. Foreign automakers are also suspected to build more U.S. factories due to unstable economies overseas. “The yen, the euro, all the currencies that affect the manufacturers’ balance sheets, except for the dollar, are in flux. So the only way to hedge is to build where you sell,” Rebecca Lindland, an analyst with IHS Automotive, said to the Los Angeles Times. Mercedes-Benz announced the company would add about 1,500 jobs at plants in the Carolinas this year in early January. Ford Motor Co. and Chrysler Group also announced plans to add hundreds of workers to their Michigan, Kentucky and Illinois plants. Audi executives have also talked about building a factory in the U.S., possibly at the Volkswagen complex

in Chattanooga, Tenn. Audi is also rumored to be mulling sites for its own North American manufacturing plant beyond parent Volkswagen’s factory in Chattanooga, Tennessee, Audi CEO Rupert Stadler told a German newspaper. Audi plans to grow substantially in North America and building its own production facility is part of that strategy, Stadler told the paper. “It is not a question of if, but only of when,” he said. Nissan is in the process of adding about 1,000 workers in Tennessee as it gears up for production of the Leaf electric vehicle and its batteries, as well as new Pathfinder and Infiniti SUVs. Automakers sold an estimated 12.8 million vehicles in 2011, a 10.3 percent increase from 2010 and the highest numbers since 2008. Automakers expect sales to reach about 13.8 million in 2012. As recently as a decade ago, the industry employed about 1 million workers. It then fell into a steady decline that included layoffs of 200,000 workers during the 2008 and 2009 re-

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CIECA Announces New Board of Trustees for 2012

The Collision Industry Electronic Commerce Association (CIECA) Board of Trustees has elected the following officers for the year 2012: ● Chair – Denise Caspersen, Automotive Service Association ● Vice Chair – Troy Weaver, DuPont Performance Coatings ● Treasurer – Paul Barry, Performance Claims ● Secretary – Kathy Goddard, Safelite Corporation Each of these officers will serve on the Executive Committee, which oversees CIECA business matters between board meetings and maintains the Board’s agenda. Michael Lloyd, California Casualty Management Company, will assume the title of Past Chair on the CIECA Executive Committee. More information about CIECA can be viewed on the CIECA web site: www.cieca.com.

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Women’s Industry Network Accepting 2012 Board Applications

In keeping true to their motto, “Driving the Future for Women in Collision Repair,” the WIN Nominating Committee is now accepting applications for seats on the WIN Board. The Board consists of various industry segments including but not limited to: shop owners, jobbers, suppliers, consultants, paint companies and insurance companies. Aside from the WIN annual Conference in May volunteer WIN Board members work together to foster an environment that encourages the education, recruitment, retention and networking of women in the collision repair industry. “Within a short time, the Women’s Industry Network has grown in size, produced informative and motivational events, and become a recognized industry association through volunteer efforts, industry sponsorships and the enthusiasm of the WIN membership. WIN is all volunteer. Volunteering for the WIN Board is an outstanding opportunity to have a present and future influence on our industry. If you are motivated to “drive the future for women in collision repair, apply for the WIN Board.” said Denise Caspersen, of ASA,

Continued from Page 35

Check Engine

chair of the WIN Nominating Committee. The deadline for applications is February 24, 2012. For application requirements and further details go to womensindustrynetwork.com. Completed applications should be mailed or PDF copy emailed to WIN Nominating Committee; c/o ASA – Denise Caspersen; 8190 Precinct Line, Suite 100, Colleyville, Texas 76034. For further information please contact Denise Caspersen, phone: (817) 5142906; email: denisec@asashop.org To find out how you can become involved and support WIN or for information on becoming a member or sponsor of WIN, please contact Victoria Jankowski at victoria.jankowski.gsfg@statefarm.com or Jeanne Silver at Jeanne@carstarmundelein.com. WIN is also offering scholarships to female collision industry students, instructors and shop employees to attend its 2012 conference May 6-8 in Atlanta. Scholarship applications must be submitted through mail by March 9. Visit womensindustrynetwork.com for additional details on scholarship requirements and the application mailing process.

codes stored and I asked him if it happened when he first started it or after driving several miles. It was while he was driving for a bit and not when it first started. “What difference does that make?” he asked. I then explained to him about how the heater circuit operated to warm up the sensor and what the sensor actually did in relation to the fuel mixture. This only made him even more curious to what they did. “Watch this Charlie. I’ll graph the O2 sensors here on this scope and I’ll show you the front sensor and its corresponding rear sensor. You’ll see the voltage changes on the screen as well as the differences between the front and rear sensors at the same time on the screen,” I told him. “Fascinating, simply fascinating,” he said, “But I don’t see how that translates to fuel?” The more I explained the more he seemed to be lost. He still seemed to be more concerned about what was

going to happen with that check engine light. I kept up with the explanation until I got to the point where he was just staring off into space and lost interest in me, the check engine light and the little graph moving up and down on the screen. I don’t know if he ever understood a thing I said, or for that matter has reconsidered the importance of the check engine light. All I know is that at some point in time somebody is going to tell him something stupid regarding the check engine light and he’ll make another trip to the shop and watch the fascinating little lines bounce around on my scope screen. No matter what I say, no matter what I do, old “Check Engine Charlie” will still listen to some B.S. from somebody out there and then head over to my shop for another diagnostics that will amount to nothing. Maybe I need to come up with my own B.S. to counteract what everyone else keeps telling him. I guess it comes down to the old saying: If ya can’t dazzle them with brilliance, buffalo them with a little bull.

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Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Legislating the “Bible” Not the Answer for Shops Tired of Being Told “No” with The Insurance Insider

When the repair industry (later than most) finally moved into the 21st century and started writing estimates by computer, shops and insurance companies alike likened computerized estimating to the advent of the washing machine. Why a washing machine? Some of you might be old enough to remember the days of washing your clothes by hand. Although I never had the pleasure, I recall my parents talking about the painstaking process of washing clothes in a bucket when they were kids. It was an arduous process that consumed a lot of your time if you did it right. I did write estimates by hand and I can assure you that it too was a long painful process. What made handwritten estimates worse was having to go back and try to translate what you scribbled while clutching a clipboard. If you are a member of Generation X or Y (or any other letter of the alphabet), you probably can’t relate to these old-man war stories. That said, I will try to offer a correlation you can appreciate. That’s what we’re supposed to do with the younger generation, right? Entertain them and cater to them and give them a ribbon just for participating even if they finished in last place. So for them: Handwritten estimates is like having to get up and change the channel on the TV because you can’t find the remote control. If you read the title you probably are wondering what legislation and the Bible have to do with this article? Well, the Bible is exactly the term repairers often use to affectionately refer to the estimating guides. Ooops, I mean estimating systems. If you didn’t understand my attempt at sarcasm, then reread the last sentence. Repairers affectionately referring to the “estimating systems” as Continued from Page 28

SCRS

The letter from SCRS counters points raised in the initial article, and provides information supporting the assertion that the property & casualty

the Bible is my best impression of a disheveled body shop owner who isn’t getting paid enough to repair a vehicle. Let’s be honest: Have you ever complained about an adjuster holding the line on a labor time because that’s what the estimating system says it is? If I had a nickel for every time a shop complained to me about one of my staff upholding the estimating systems’ labor time, I would already be

everyone knows it’s just a guide. Even the estimating system providers will tell you that they produce merely a guide and not the word of God. Insurers should be working with the shops to discuss and negotiate discrepancies instead of hiding behind scripture. But for every shop who insists it’s a guide and not the Bible (and complaining when it’s used against them), others are saying the same

retired. (Don’t worry: I won’t be able to retire for a few more years, which translates into more Insider articles for your reading pleasure.) When there is a conflict about the labor time on an estimate, the Bible becomes the deciding factor. The Holy Estimating System tells shops and insurers an approximate time to complete a specific repair operation. If the shop wants more time, the adjuster says no. Why? Because the estimating system says so. Do you question the almighty written word? Shops hate insurance companies for holding the line on the time for a specific labor operation because

thing but talking out of both sides of their mouths. How? Through legislation. That’s right. Over the past several years, shops in some states have worked fervently to legislate the guide as the Bible. The thing that repairers curse and despise is actually being put into law in a few states. Is this the work of a evil genius, a mad scientist or just short-sighted repairers? If we were on American Idol, I would be asking you to text 3 to vote for shortsighted repairers. Under some state legislation, the estimating system will serve as the final answer to all questions and dis-

insurance industry’s direct influence over collision repair market pricing, has impacted both the consumer and the small businesses that make up the collision repair industry. Several key components of the letter identify that: ● Property and casualty insurance carriers have become increasingly in-

volved in activities that extend beyond the business of insurance, while interjecting themselves into collision repair business activities. ● The responsibility to compensate for fair and reasonable costs of the loss is significantly different than defining what is fair and reasonable.

40 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

crepancies. The legislation states that one can’t deviate from the information provided in the estimating system. Why would anyone want to mandate legislatively something that is only a guide, especially considering the information about inaccurate labor times in the guides that has been brought to light in the past few years? There are examples of labor times that eventually have been increased by as much as 100 percent from the original times in the guide. Why would repairers do this to themselves? If you were on Family Feud, Richard Dawson would shout, “The survey says: The P-Pages.” Repairers are fighting back. They have grown tired of being told by insurers that they don’t pay to mask the door jambs or any other non-included labor operation. You can almost hear one repairer saying, “Dammit, we want our 0.2 to mask the jambs,” or another one stating, “You can’t pick and choose what you want to pay for!” Their answer to all of this madness: We’ll legislate the use of the estimating systems. Now insurers will have to pay us exactly what’s in the estimating system. I could swear I’m watching, “Shop Owners Gone Wild.” I offer these words of advice after decades of committed service to the insurance industry: Be careful what you ask for, because you just might get it. You can legislate adding pennies to your estimates and lose dollars in the process. Instead, advocate for getting paid for what you do. Don’t advocate legislating something that is as accurate as the last estimate you wrote only to have to add a $3,000 supplement. Got a comment or question you’d like to see the Insider address in a future column? Email him at Auto.Insurance.Insider@gmail.com. ● Average gross collision appraisal values have remained stagnant comparing the first and third quarters of 2009, 2010 and 2011, and older data indicates that the average appraisal value has remained flat for at least the last 7 to 8 years; meanwhile, consumer auto inSee SCRS, Page 44

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www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 41

Parts Profiles

Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html

South Motors Automotive Group—Anything But Apathetic with Larry Williams

This month’s distinctive dealer is South Motors Automotive Group in Miami, Florida. This dealer services Honda, BMW, VW, Suzuki, Mazda, Mini, and Infiniti. Parts manager Mike Franceschi contacted me after reading my article on “Apathy, the Real Opponent in the Wholesale Business.” For a link to the article see the last paragraph or just go to autobodynews.com and search ‘apathy’ What I wrote in that article was: “Now is the time to be positive. Shake off that dull, negative attitude. Aggressive solicitation of new customers will pay off for those dealers that move now. Take some time and visit your best customers. Congratulate them for their tenacity and tell them you will be with them for the good times ahead. Partners who survive hard times always find their bonds stronger. Keep an eye out for customer opportunities that you may have overlooked. Be ready to serve the new customers that will be calling you. “There is another major negative assumption to overcome. Several parts managers have told me of their loss of interest in the wholesale market. The main reason for this is the lack of profit. It seems that there is constant pressure to reduce costs, starting at the corporate level. I am talking about the insurance companies that cover most of today’s repair costs. In a never-ending search for investor earnings, quality, care, workmanship, and pride are considered to be unnecessary. The only thing that matters to these corporations is their bottom line. They constantly push the repair shop to reduce the cost of the repairs. The shops cannot reduce their labor cost any lower; employees are already at the poverty level. The only place to cut is the cost of materials. The solution for some shops is the use of cheaper parts. These shops adopt the practices of the corporations, and consider only the cost of materials. Save a dollar, no matter what method you use. “We need to fight back! Quality in both parts and service needs to be worth more than a 5% discount. For example, sheet metal has been a cen-

ter of concern for several years. Cheap replacement imported metal has found customers, at the cost of quality. Numerous organizations have come out to support the use of original parts only. We all agree on the value of quality in this area. How about the rest of the operation? How about quality of service? “I have never advocated sacrificing service and quality for cost. I believe if you pay less, you get less. There is a minimum everyone must pay for quality service. The competition should be for better service, not cheaper prices. I believe that servicing the wholesale market is still a rewarding job. Our final goal, happy customers, is a worthy goal and customer satisfaction brings us our own happiness.” Mike shared the article with his countermen, and was pleased to be able to say to them: “I’m not the only one who talks about this every day!” This comment, in my opinion, is the key to understanding Mike’s success in these troubled times. He talks to his men every day, encouraging them and keeping their spirits high. There are four full time wholesale countermen, Ozzie, Rudy, Alex, and Danny. Professional, knowledgeable men, with more than a hundred years of experience available to their customers! This team keeps five drivers constantly on the road. Belinda, Carlos, Jose, Luis and Noel make three runs daily, and will go as far as sixty miles to service their customers. An inventory of over half a million dollars ensures “on hand” status of fast moving parts. A daily ordering system means needed parts are almost always available the next morning. Body shops in this area have had a hard time the last few years, but sales at this dealership have held steady, and even increased slightly despite the recession. Collision Link is used by this dealer, of course. This program allows Mike to be competitive on pricing, ensuring repairs are always made with quality, original parts. Every dealer I have talked to mentions Collision Link as one of their most valuable tools in the wholesale market.

42 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

Mike has been at South Motors for twenty years, fifteen of them as parts manager. He says his “secret to success” is his focus on sales. His office is near the front counter, and he talks to his customers as often as possible. He watches his daily sales, staying on top of his business with his friends. He calls one or two each day, checking to make sure he has filled their orders properly, and that they are satisfied with his service. Mike takes his job very personally, and talked to me about the value of long term relationships, and the feeling of “family”, not just customers. He spoke about trust, sincerity, and respect. He spoke of service over price, wanting happy customers, and close partnerships with valued customers. These philosophies, of service, and partnership are common to all the successful managers I have talked

with in the last year. They all consider their customers as friends, and make price a minor condition to the business of auto repair. I believe that success is not determined by a building, a location, advertising, or price. Success is a reward to those people who want it, work for it, and are never stopped. Mike Franceschi is successful because his desire to be the best knows no boundaries. I recommend this distinctive dealer to any auto body shop in the Miami area that wants the best service available. You can do no better than the South Motors Automotive Group. You can read Larry’s apathy article online in its entirety at: http://www.autobodynews.com/columnists/williams-larry/item/5198apathy-the-real-opponent-in-the-whol esale-parts-business.html.

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Collision Hub Launches The Hub™ Your Social Media Toolbox Collision Hub announced the launch of The Hub™, a monthly Social Media consulting tool delivered to customers each month as a graphic and video rich eMagazine. The Hub will be content-rich with industry-relevant material that encourages localized and internally managed social media strategies. The Hub will include columns and video blogs from Kristen Felder, Founder and CEO of Collision Hub,

as well as Liz Blackman, Collision Hub’s Social Media expert and Operations Director. The Hub will also provide subscribers with direct access to Collision Hub’s social media consultation team as well as ongoing support and guidance at every level of their social media journey. Each month the CH team will give shops step-by-step action plans to implement, suggested social media postings based on a calendar of events, creative marketing

ideas to employ and pre-packaged video content for shops to download and share in their social media outlets. These tools will allow shops to increase page engagement, followers and improve their SEO rankings. According to The Hub Editor and Collision Hub social media expert Liz Blackman, “during our three years of traveling and speaking on Social Media we were asked over and over to become the marketing consultant of

Collision Repairers across the country. However, at Collision Hub we believe the best person for any social media campaign is the business staff themselves. By tackling the ‘hows’ of Social Media and by helping shops to keep their social media in house, it is our belief that The Hub will rocket launch Collision Repairers to the fore front of their communities.” To learn more visit: www.collisionhub.com/thehub.

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Mitchell Parts Index Sheds Light on Parts Trends Post Japan’s Tsunami by Greg Horn, Vice President Industry Relations Mitchell International

When we created the Mitchell Collision Parts Price Index (or MCPPI) a few years back, it was to serve as a barometer to measure parts inGreg Horn flation both in aggregate and split out by part type and vehicle country of origin. The MCPPI was created with the Consumer Price Index as its model as the Consumer Price Index (CPI) is best known to most Americans as the general rate of inflation. The CPI is one of the most closely watched economic indicators because it tracks the rate of inflation for a wide sampling of goods we routinely buy. Just in the way the CPI

The Mitchell Collision Parts Price Index for 2011

measures a “basket” of goods and services and compares the prices month to month. This basket contains hundreds of different types of goods and services ranging from the inexpensive to very expensive. In creating the Mitchell Collision Parts Price index, we used a similar approach of taking a collision ‘market basket. We selected the top 20 most replaced collision parts for the following categories: Hood, fenders, headlamps, turn signals and side marker lamps. We pulled data from Continued from Page 40

SCRS

surance premium costs continue to rise and the Insurance Information Institute recently reported that private auto insurance is the most profitable line of insurance coverage in the United States.

2003 through the third quarter of 2011. We then created weighted average prices for these parts in aggregate, setting the base year at 2003 and equal to 100. This allows us to compare inflationary trends by part type. All part types are retail prices, in the case of LKQ/used parts, are calculated with the mark up included in the pricing.” In the most recent edition of the Industry Trends Report, this useful tool also allowed us to evaluate the impact of the Japanese Tsunami on collision parts prices. What we found was that despite some industry experts predicting parts shortages, repair delays and hoarding of used parts, there was virtually no impact on collision parts prices. What always intrigues me as I evaluate the data from this index, is that there are several other factors in play. When I looked at the overall index over time, what is interesting is the rapid increase in recycled parts prices for all vehicle types, and that salvage parts and aftermarket parts, drove the inflation index for 2011. OEM parts pricing, by contrast; decreased in the aggregate. How did the OEM parts index decrease? It was in large part a result of the expansion by auto makers ‘match the competition’ programs, wherein they will match or adjust their pricing to compete with top selling aftermarket parts. The primary aim of the OEM’s to match the competition is to maintain parts sales and stem the tide of aftermarket parts use in collision repairs. Have they been effective? As evidenced by chart 3, showing the number of collision parts used by part type, the increase in matching programs has not stemmed the decline in OEM parts use, but interestingly; af-

2009 and accelerating rapidly in 2010, but still below the base year of 2003. What is behind this phenomenon? If we look back, the recycled parts distribution channel experienced the most advances of any parts channel. Large internet vendors began online and ‘near real time’ inventory displays in the estimating platforms as

tion of supply for recycled parts, as the impact of slumping new car sales and high used car prices that began in 2008 (and continues today) begins to ripple through the salvage parts supply world. Aftermarket parts producers hold an advantage here, as they can custom tailor output to demand, a luxury that recyclers do not have.

● The insurance industry’s approach to establishing a singular prevailing labor rate charge for all businesses within a market fails to recognize the existence of reasonable variance between competitive businesses. ● When the repair shop has entered into both the DRP contract with the carrier, and an authorization to repair contract

with the vehicle owner, it is not necessarily as simple as insurers “promoting poor quality work,” but it becomes a question of who has more influence over the repair facility’s decision making in the repair process, and whose interest drives those decisions. In summary, the association states that, “the question is not IF insurance

carriers directly impact collision repair market pricing, but rather IF their approach and purpose is appropriate. Are we really talking about saving consumer’s money, or are we talking about increasing insurance company profits at the expense of their policyholders and the small businesses who serve them?”

44 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

termarket parts use also declined during the same period. By looking at the repair labor hours for the same period, we see an increase in the number of average repair hours, indicating a shift to repairing panels rather than replac-

well as standalone applications. Large acquisitions happened in this arena as well, all allowing for more rapid market feedback of demand and pricing. I believe this lead to a market correction of pricing in the years leading up

Mitchell Collision Parts Price Index by Part Type – All Vehicles

ing them. An increase of repair hours is good news for collision repairers, and it remains to be seen if this increase is sustainable. Let’s examine recycled parts as well. The MCPPI shows an increase in pricing of recycled parts, starting in

Part Use by Number of Parts

to 2009, and what we are now experiencing is an acceleration of prices because of the increase in overseas and rebuilder sales, and decreasing the population of parts harvested vehicles. What will the future hold? I believe we will continue to see a restric-

UPDATE: Houston City Council Delays Vote on Auto Repair Ordinance, Draft Not Favorable to Shops The city of Houston delayed voting on an ordinance to regulate the automotive repair and service industry affecting every type of business that touches a car, whether it’s a body shop, an independent auto repair shop, a dealership or a big store like Wal-Mart. The council rescheduled the vote for February 15, 2012, after more issues were raised at a hearing held on December 20, 2011, when the council was originally supposed to vote on this ordinance. This delay presents some new problems to both sides lobbying over the bill—they now have an entirely new council, sworn in January 3, 2012, to update on the issues and convince to vote one way or another. A new list of council members by district can be seen at www.autobodynews.com, find out which district you reside in by visiting http://www.houstontx.gov/planning/2011/index.html. The Houston Auto Body Association (HABA) would like its members to reach out to the new council and make sure their opinions on this matter are heard. Kathryn van der Pol, Past President of ASA, Houston Chapter, and co-owner of Adolf Hoepfl & Son Garage, is working with the HABA on writing their own version of the ordinance, incorporating what’s good about the City’s version to present to the new council since Houston Mayor Mayor Annise Parker, wants to pass an ordinance on this issue. Mayor Parker also made some changes to the ordinance, and the version that will be voted on February 15, 2012, can be viewed in its entirety at www.autobodynews.com. “While this ordinance has good intentions, it paints the entire industry with one stroke. The proposed ordinance stems from an effort to eliminate a problem that comes from a small percentage of unscrupulous collision-repair shops, which is one segment of the automotive repair trade. This attempt at a solution will wrap an already difficult business in more red tape,” says van der Pol. Writing in the Houston Chronicle, Van der Pol says there are some good features for the consumer in this ordinance: “The ordinance will require all auto-repair facilities to post their license number on their advertising and

invoices so that the consumer will know which companies are city-licensed repair facilities. “It will also require auto-repair facilities to carry a minimum amount of liability insurance. Currently, there is no local or state law that requires a repair shop to have insurance. In an uninsured shop, car owners are liable for anything the garage owner does with their car. Good shops already purchase insurance, but virtually all shops that lack integrity will also lack insurance. “Giving approval over the phone for any collision work will be illegal and limits will be placed on certain fees charged by collision shops. There is a good reason for this. Repairs resulting from accidents usually cost thousands of dollars. While we are hesitant to say that the city should set pricing for any private business transaction, we agree every approval for collision repair should be in writing. The ordinance includes pages and pages that regulate how records will be kept, how repair shops may gain approvals from customers and establishes fines for sometimes honest mistakes that must be paid to the city. If this new law takes effect, phone approvals for mechanical work will be allowed only if the customer provides a third signature permitting an estimate either to be given orally, in person, or over the phone. Records of that approval have to be maintained for two years. Automotive professionals are concerned about this for a few reasons. “Our main concern,” continues van der Pol, “is that if your car is towed in to a mechanical shop, the facility can’t even look at the car until the owner comes in or faxes or emails a signature. If you are a business owner with a fleet account, you will have to email, fax or come to the shop to give approval of authorization or to sign a waiver. This will slow down the repair process and be an inconvenience for everyone involved. “Mechanical work is entirely different from collision. It differs in that it’s quick, less costly and customers depend on our efficiency so they can get their autos back. The city’s proposal will slow down this repair process. If it sounds complicated, it will be even worse when customers are confronted with the legalese. If they refuse to sign the

waiver authorizing estimates by phone, the customer will have to return to the shop, find a fax machine or send an email. “While the Automotive Service Association (ASA) fully supports efforts to root out bad players in our industry, we believe this ordinance overregulates and will be a burden to our customers who don’t own fax machines, have access to email or have a second car to come back to the shop for a signature. This is going to affect senior citizens, the disabled, those with lower incomes, and those who depend on one vehicle the most. “Another provision is that no authorizations are required for repairs under $100. As long as your bill is $99.99, the repair shop does not need your permission to make repairs or perform maintenance on your vehicle. Our concern is that if you are dropping off your car for an oil change and the technician calls because he determines your coolant needs to be flushed, the work will exceed $100. Then you will have a delay in repair if you did not sign the waiver - even though we still have the two signatures required by the state. This provision seems unnecessary and could lead to confusion and abuse. “If a shop neglects to put the license plate number, vehicle identification number, or mileage on a work order, or records it inaccurately, it could result in a criminal misdemeanor charge with a $200 to $500 fine. “Why do the mayor and some members of City Council feel this ordinance is needed? “The ASA was told it was necessary because there were some bad body shops taking advantage of insurance companies, resulting in a rise of insurance premiums. “ASA requested information through an open records request about the complaints so that as an industry, we could better understand what problems the city is trying to address. The complaints did indeed support that there are some bad players in the collision repair industry who are charging excessive disassembly fees, administrative fees and are holding cars hostage. We were given 257 complaints filed over a three-year period with the Houston Auto Dealers, a division of the Houston Police Department

that enforces automotive repair facility licenses. Of those, 61 complaints concerned excessive fees from collision shops—none from mechanical. It is a problem, but, “it’s like killing flies with a cannon instead of a flyswatter,” as Councilmember Jolanda Jones said. “Last, there is the concern about increased costs of implementation that will be passed on to consumers. All our paperwork will have to change to comply. Not to mention all our fees and permits were increased this year. For example, in 2011 a Houston automotive repair facility license increased 147 percent, from $200 to $495. “What do we recommend? Ideally, the city should create two separate automotive licenses, one issued to regulate the collision industry and another, simpler one, for the mechanical industry. Many at City Hall acknowledge that this would be a real fix, but there is a rush right now to pass the ordinance before the end of the year. What’s the rush? ASA has known about this proposal for less than a year, and we have been working diligently with the city to help. The Automotive Service Association wants City Hall to slow down, listen to both industry and consumers and do it right the first time. Houston City council also approved changes to the city’s ordinance on Nov. 30 covering towing companies and auto shops geared toward “trying to make sure that an unhealthy relationship between the tow truck drivers and collision repair shops is monitored more closely,” Mayor Parker said. “There are lots of reports that after accidents, tow trucks may be being paid bounties to take cars to particular collision repair shops.” Other key industry representatives, including the Houston Auto Body Association (HABA), applaud some of the proposed mandates but are quick to say others may end up bogging down reputable businesses, slowing their ability to serve customers. James Brown, President of the Houston Auto Body Association (HABA), testified before the Mayor and City Council on behalf of HABA on November 29, voicing the HABA’s concerns with the current language in the ordinance. Brown was pulled into a private meeting with the Mayor’s Assistant, the City Attorney, and See Houston Ordinance, Page 46

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 45

Continued from Page 45

Houston Ordinance

members of HPD Auto Dealers Division (Capt Baimbridge & Sgt Provost) following his testimony. The meeting lasted around an hour and a half and the group informed Brown that none of the latest revisions HABA requested would be honored for one reason or another. “We do think there’s a lot of good things in there, said Brown to KHOU 11 News Houston. “But there are a lot of things that still need some work. There are a lot of things in there that give the insurance companies the same authority as the consumer—the owner of the vehicle—which we would like to see taken out.” “HABA has been working with HPD Auto Dealers Division for over a year and that has resulted in a lot of positive changes,” said Brown, “HABA has also worked closely with ASA on the revisions and we have made a lot of progress but still have a ways to go.” Councilwoman Sue Lovell, who spent a year meeting with auto repair

industry representatives to craft the changes, said that once a car arrives, some unscrupulous collision repair shops charge more than $1,000 just to generate an estimate. She brandished a binder full of complaints to back her assertion that while most merchants are honest, there have been enough cases of abuse to warrant the city’s intervention. “It’s really about consumer protection,” she said. Jeanette Rash, owner of Fast Tow and leader of a consortium of wrecker companies that clears freeway breakdowns for the city, supported the revisions in part because it will allow storage yards to increase daily rates for the first time in a decade, from $15 to $20.

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Three Developments Shaping 2011 Aftermarket Three major forces emerged which drove 2011 aftermarket growth and will continue to shape the car and light truck aftermarket for many years.

More Product Use Per Vehicle During 2011, aftermarket product volume for the average car and light truck in the U.S. increased approximately 3%. This drove-up total aftermarket light vehicle product sales at a time when total miles declined and car and light truck population was stagnant. This is the second consecutive year of increased product use per vehicle and reverses a trend of diminishing product consumption by the typical car and light truck in the U.S. between 2000 and 2009. Foreign Nameplate Juggernaut Lang Marketing, in its preliminary analysis, estimates foreign nameplates generated nearly two-thirds of car and light truck product expansion in the U.S. during 2011 at user-price. With foreign nameplates accounting for over 50% of new vehicle sales since 2008, conditions are set for continued foreign nameplate aftermarket growth. Soaring gas prices during first half of 2008 sent foreign

nameplate share soaring from 50% to more than 56% of new vehicle volume in just a few months. Cash For Clunkers ignited a second-stage of foreign nameplate sales growth during the third quarter of 2009, when foreign cars and light trucks posted a record-high 58% new vehicle share. However, the 2011 tsunami caused production problems for many Japanese carmakers and also created parts shortages. To compound matters, Toyota experienced safety and quality problems in 2011 which drove-down their U.S. sales. The likelihood of higher 2012 gas prices and returning to normal supplies of Japanese cars and light trucks in Dealer lots and a fading of Toyota’s negative consumer perceptions will combine to boost foreign nameplate 2012 sales share. Independent Service Outlet Strength All light vehicle service market (DIFM) product growth during 2011 was generated by Independent (nonDealer) car and light truck Service outlets. This marks the third consecutive year in which non-Dealer outlets expanded their light vehicle aftermarket product share.

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Polk Says Average Age of Vehicles is at Record High The average age of cars and light trucks currently in operation in the United State has increased to 10.8 years, according to Polk, an automotive market intelligence firm. Passenger cars showed a modest increase in age since 2010, from 11 years to 11.1 years at the end of June 2011. Light trucks (including pickups and SUVs) show a more sizeable gain in the same time frame, from 10.1 years to 10.4 years. Overall, average vehicle age has been increasing quickly over the past five years. Polk reports average age based on an analysis of national vehicle registration data. The slowdown of the aging of passenger cars directly correlates to the low sales volumes and the mix of car and truck sales in the U.S. market in 2008 and 2009, a time in which more trucks than cars were registered. While more trucks were sold over the same timeframe, they showed a faster aging rate. Polk expects this trend may change in the coming years as CUV and small SUV populations in the U.S. market have risen in 2010 and 2011 due to their continued success in the market.

Additionally, the rebound in new vehicle sales in 2011 and for the next couple of years will most likely slow down the aging rate seen in the market over the past three years, according to Polk. “The increasing age of the vehicle fleet, together with the increasing length of ownership, offers significant business growth opportunity for the automotive aftermarket,” said Mark Seng, global aftermarket practice leader at Polk. “Dealer service departments and independent repair facilities, as well as aftermarket parts suppliers, will see increased business opportunity with customers in need of vehicle service.” Year-over-year Light Vehicle Population Declines Come to an End 2011 marked the end of the U.S. vehicle population decline that has occurred annually since 2008. According to Polk, the total vehicles in operation (VIO) in July 2011 was just over 240.5 million, an increase of 500,000 units over July in the previous year, and nearly equal to 2009 VIO. The highest VIO on record was achieved in July 2008, when more than 242 million passenger cars and light trucks were on America’s roads.

PCI Says Auto Body Legislation will be Priority for 2012

The Property Casualty Insurers Association of America’s (PCI) said auto body legislation would be one of its key priorities for 2012. PCI said it anticipates the major auto body repair and glass issues for 2012 will involve aftermarket parts, labor rates, steering and estimating systems. To help control costs and promote customer service, PCI said it will oppose legislative efforts that would restrict insurers’ ability to make recommendations or suggestions to consumers on individual repair facilities or that would impede insurers’ ability to manage the claim repair process and control costs on behalf of consumers. “PCI is committed to advancing a pro- consumer agenda that supports healthy, competitive insurance markets across the nation,” said Paul Blume, senior vice president of state government relations for PCI. “In these tough economic times consumers are best served by measures that address the cost drivers of insurance and provide individuals with choices. Our agenda will also help modernize state regulatory environments and improve insurance marketplaces.” In addition to auto body legislation, other priorities include protecting

and promoting the viability of a competitive private insurance market, curbing fraud and abuse in several no- fault auto insurance systems, addressing auto body repair and coastal property insurance issues, as well as advancing cost containment measures in state workers compensation systems. In addition, PCI anticipates credit-based insurance scoring and tort reform to once again be legislative issues during 2012. PCI said it made significant progress at the state, federal, and international levels last year on many issues, despite facing an anemic economy, increasing political and regulatory pressures, and historic natural disasters. Looking forward to 2012, PCI said it anticipates facing many of these issues again, with the additional challenge of advancing its advocacy agenda during a watershed presidential election year.

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Meguiar’s Endows 676 Schools with $600K Product Donation Through Collision Repair Education Foundation

Meguiar’s Inc., a 3M Company, has come to the aid of 676 secondary and post-secondary collision programs across the country by donating sets of their Unigrit Fine Grade Blending and Finishing Discs through the Collision Repair Education Foundation. The donation, in total equaling a retail value of $600,000, will ease collision department budgets by providing students the opportunity to work with up-to-date supplies. The gift from Meguiar’s helped the largest amount of schools in one donation in the Collision Repair Education Foundation’s history. “Since 2008, 3M has provided over $2 million in product donations to the Collision Repair Education Foundation and these have greatly impacted instructor’s ability to properly instruct collision students,” stated Collision Repair Education Foundation Executive Director, Scott Kruger. “On behalf of collision students and instructors nationwide, we thank Meguiar’s and 3M for their continued support and invite additional collision industry businesses to follow 3M’s lead in providing product donations to secondary and post-secondary collision school programs.” Northern Virginia Community College (Alexandria, VA) Collision Repair Instructor Geoffrey Brown said,

“Thank you so much for Meguiar’s very generous donation. These sorts of donations really help our program by being able to expose our students to products and techniques that we could not afford to provide out of our limited budget. The students are already excited about being able to get to use them and are now looking forward to next semester where I am sure we will put them to good use. Thank you Meguiar’s!” “Being able to assist in the development of our nations young professionals is an extremely gratifying feeling and one that our company is proud to be able to take part in” explains John Dillon, Global Vice President of Meguiar’s Professional and Marine Division. “We are excited at the ability of collision repair students that are supported by this foundation to have the opportunity to have first hand experience with our product and to learn the proper techniques to use them. It is a complete win-win opportunity for everyone involved.” For additional information about Meguiar’s Car Care Products visit www.meguiars.com. Industry members and companies interested in supporting collision programs should contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or 847-463-5244.

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 47

SCRS, ASA, AASP Release Joint Statement Regarding the Collection and Reporting of Repairer Business Data by SCRS, ASA, AASP

The issue of data ownership is of everincreasing importance to both consumers and businesses as technology expands the landscape of digital trade, and the collision repair industry is not immune to concerns relative to ulterior use of business generated data. During the past several decades, the estimating and management system companies have increased their product offerings beyond core estimating and management functions for repair facilities. Their scope of services presently includes the collection, generalized aggregation, analysis, and sale or provision of repairer data to third parties. Collision repairers contend that: ● The collection of data is unilaterally demanded as a point of sale requirement for every estimating system option offered in the market, barring repairers that wish to provide electronically generated estimates from having the option of keeping their business data from being utilized for unauthorized purposes.

● The information that is harvested from the collision repairer’s system is being used for purposes other than those that the subscriber had intended when contracting to use the estimating system software. ● The information is used by secondary customers in ways that may ultimately be detrimental to the subscribing end-user who generated the data. When this issue was first broached several years ago, one primary response on the part of the estimating system providers was that the only data being captured was that obtained via the upload of Direct Repair (DRP) estimates, and those end-users had implicitly waived any data ownership rights by agreeing to upload estimates as a condition of their participation in the (DRP) program. They also claim that no privacy rights have been violated since the information is all collected in a depersonalized manner, and presented as an overall aggregation of data collected. While we continue to contest the validity of both positions, the advent of cloud based platforms has

ASRW Calling For Presenters at NACE/CARS 2012

ASRW | NACE | CARS is committed to meeting the needs of collision repair and automotive service professionals. The ASRW Conference Program has a long and rich history of bringing industry experts and professional speakers to the ASRW attendees with important, relevant and leading edge information. ASRW attendees depend on the seminars to keep them motivated, current with technology and industry trends, expand their horizons and explore new opportunities. If you are an industry speaker, subject matter expert or professional speaker interested in helping collision repair and automotive service professionals grow and prosper, you are invited to submit your presentation(s) for consideration to be included in the 2012 ASRW Conference Program. The expos will take place October 10 through 13, 2012 at the Morial Convention Center in New Orleans, LA. Sessions are selected to fit one of the following tracks: Management, Technical or Women’s Professional Development. Time slots available for the sessions are 90 minutes or 3 hours. All 3 hour sessions are scheduled for Wednesday, Oct. 10. The 90 minute sessions will be scheduled for Wednesday, Oct. 10 through Saturday, Oct. 13. Presenters should be

available to speak on any day of the conference. All presentations selected for the Management and Women’s Professional Development tracks will be submitted to the Automotive Management Institute (AMI) for approval and attendees will receive AMI credits for their participation. The deadline for submitting presentations is Friday, February 10th. Show Management and the ASRW conference planning committee will review all proposals and base evaluations on originality of proposal, past speaker performance or references, timeliness of topic, practical application of concepts or information, and/or relevance of content to the collision repair and automotive service industries. Final selections will be made by Show Management. Speakers must agree to meet deadline requirements with a signed speaker agreement. Please go to www.naceexpo.com to submit presentations for consideration.

expanded the data collection potential to include any businesses utilizing the server-based programs. It has also expanded the potential of data mining from only estimating programs to the possible inclusion of information generated from business management programs or other technology based service platforms. The Information Providers may seek to reassure the collision industry that they have taken all necessary steps to safeguard repairer/consumer information from data privacy breaches. While the data may remain safeguarded from threats in the traditional sense of electronic security, the members of the collision industry remain concerned that the information is not necessarily safeguarded from the technology firms themselves who have built in contractual permissions to force the industry to permit utilization of the data in ways that were not intended or expressly approved by their customer base. We believe it is long overdue for our industry to have the express op-

tion to either “Opt In” or “Opt out” of allowing technology firms to have access to ancillary uses of our data as a point of sale requirement to utilize the necessary tools once intended to aid the industry in running our businesses. This statement serves as a public request from the collision repair industry to Audatex, CCC, Mitchell and other technology firms who collect data. The industry seeks removal of contractual clauses within End User License Agreements which require permissive access to aggregate and collect end-user data as a point-of-sale requirement to purchase those programs. Further, we believe that if a business is to permit their data to be mined, they should be entitled access to an annual report specifically indicating where that data was used, and a list of parties that received reports utilizing data from the user’s system. We believe the ability for businesses to choose participation in the data collection process is a reasonable solution, and we look forward to your response.

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48 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

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Trust your order to the collision parts specialists at these fine Dealers

Airbags Changing Vehicle Scrappage Age Mix Jim Lang, of Aftermarket Insight, says that “Car and light truck scrappage (vehicles removed from operation) declined as a percent of vehicles on U.S. roads during 2009 and 2010. These low scrappage rates helped boost car and light truck average age. “Not reflected in overall scrappage rates is the ongoing shift in the age of vehicles scrapped in the U.S. As a result of airbag deployment, many vehicles which on the basis of collision

damage alone would not be scrapped are heading to the junkyard. Deployment of a single airbag will cause most vehicles at least seven years old to be scrapped.” Last year in the U.S., airbags deployed in over 1.2 million vehicles. Vehicle damage resulting from airbag deployment ranges from $1,200 to over $6,000 per bag depending on the location of the bag (dashboard, door, etc.) and the type of vehicle. Government re-

ports indicate that virtually all vehicles at least seven years old in which a single bag deploys are scrapped. Increasing damage from multiple airbags (as newer vehicles have more airbags) is scrapping many vehicles which would otherwise be repaired and returned to operation. If multiple bags deploy (some new vehicles have up to eight), airbags can cause additional damage (beyond the crash itself) sufficient to scrap even new and expensive vehicles.

Subaru of Glendale SO. CALIFORNIA

Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net

Sierra Subaru of Monrovia Monrovia (626) 359-8291 (626) 932-5660 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@sierracars.com www.sierraauto.com

Timmons Subaru

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! Galpin Subaru

SO. CALIFORNIA

Van Nuys (818) 778-2005 (818) 778-2090 Fax www.galpin.com

Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts

Long Beach (888) 489-5001 (562) 426-3550 Fax Tue. 7-8; Mon., Wed.-Fri. 7-6; Sat. 8-4, Sat. No Delivery Parts@timmonslongbeach.com www.timmonssubaru.com

Marin Subaru

San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net

As newer vehicles are scrapped because of airbag deployment, increasing scrappage rates will not necessarily reduce the average age of vehicles. As long as new vehicle volume remains relatively low versus the nearly 17 million average-annual sales from 1999 to 2006 and scrappage remains relatively moderate, a growing share of scrappage will occur among vehicles below the 10.6 year average-vehicle age. This will boost the age level of vehicles in the U.S.

Subaru of Santa Cruz NO. CALIFORNIA

Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

ARIZONA

Power Subaru

Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4

Subaru Superstore of Chandler Chandler (877) 443-3239 (480) 268-2402 (480) 621-3805 Fax Mon.-Fri. 7-6; Sat. 7-5 subaruparts@shopsubaru.com www.shopsubaru.com

NO. CALIFORNIA

Shingle Springs Subaru Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 49

CA/NV/AZ Automotive Wholesalers Association (CAWA) Delivers Rebuttal to Letter of Opposition to “Imitation” Aftermarket Crash Parts Legislation The CA/NV/AZ Automotive Wholesalers Association (CAWA) announced their response to a letter of opposition to “imitation” or aftermarket crash parts legislation written by the Alliance of Automotive Manufacturers, CA New Car Dealers Association, California Autobody Association and Consumer Attorneys of CA to CA senators and assembly members on December 5. The letter sent by these organizations to their senators and assembly members states; “The above-identified organizations and signatories write to inform you of their collective opposition to legislation that promotes non-OEM (original equipment manufacturer) crash parts as the functional equivalent of OEM parts. [Nonoriginal Equipment Manufacturer (NonOEM) crash parts are parts made by a party other than the original car manufacturer without the dimensions, design specifications, tolerances or other information known to the original equipment manufacturer.] “Existing law requires insurers that compel consumers to accept nonOEM parts when vehicles are repaired to inform consumers that “imitation” parts will be used and to warrant the “imitation” parts are “oflike kind, quality, safety, fit and performance” as OEM parts. For years, the insurance industry and off-shore, aftermarket parts industry have tried to weaken the law so they may compel unsuspecting consumers to accept inferior nonEOM parts. Continued from Page 14

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with due regard for its insured’s interest.” Furthermore the correspondence states, in part, “State Farm has decided to exercise its rights under Florida law to avoid unnecessary litigation. Accordingly, enclosed is a check made payable to you and Raymond Gunder in the amount of $1090.70—which is the amount demanded in the CRN, plus statutory interest. This amount is paid to ensure that any alleged violations are cured in accordance with the statute of Florida law and to preclude unneces-

“We support existing law and oppose efforts to weaken it for the following reasons: ● Existing law promotes disclosure and fair repair practices. ● Too many non-OEM parts are

clearly inferior to OEM parts. For example, see the Bureau of Automotive Repair study on this issue. Also, Consumer Reports has debunked the argument that aftermarket “tin” parts are comparable to OEM parts. ● Use of non-OEM parts may impair warranties and reduce the value of used vehicles. ● Vehicles are increasingly complex, designed to dissipate crash energy by collapsing as engineered, and rely on multiple sensors to immediately deploy airbags upon contact. The use of “imitation” parts may impair these highly-integrated functions and endanger passengers. “If approached to author legislation to sary litigation. Again, State Farm’s payment should not be construed as an admission of any wrongdoing or liability on the part of State Farm who denies any liability, as well as the standing of Mr. Gunder to pursue any claims, but exercise of its right under Florida law to avoid protracted, vexatious litigation.” On receiving the news from his attorney, Ray Gunder said, “I am elated that State Farm has chosen to step up and pay what was due our customer and that State Farm elected to settle rather than proceed with a long drawn-out and costly litigation. The word “vexation” means harassing; and/or annoying as if the settleSee Gunder, Page 54

50 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

unfairly promote the use of “imitation” crash parts, please contact us. We request the opportunity to discuss this important consumer protection issue with you before introduction.” The CAWA responded by releasing a statement that reads, in part, “For the first time, in our memories history, the car manufacturers and their new car dealers have joined with the trial lawyers and a sister aftermarket organization, the California Autobody Association, to collectively suggest to legislators that aftermarket replacement parts are inferior, imitation and their use could negatively impact warranties and compromise motorist safety. “In reviewing the enclosed letter, notice the disparaging remarks about replacement parts, and recall that a legislator does not distinguish, in their minds, between crash or hard parts as manufactured and distributed by the aftermarket. Please

know that CAWA will continue to defend the aftermarket’s reputation as a necessary option that is in the public good when it comes to replacement parts and service. We will continue to drive home our quality, availability and competitive advantage with legislators and their staffs through meetings, in district visits to parts stores and warehouses, in our everyday processes of lobbying on behalf of our industry and in our political action funding. “This new and bolder attack by the car companies and their new car dealers will not go unnoticed and will be challenged with the resources available to us. Rest assured CAWA will continue to promote and protect the interests of the aftermarket industry and your ability to do business in the states we represent. Please contact admin@cawa.org or 800.332.2292, ext. 1 should you have any immediate questions or comments regarding this recent miss-representation of aftermarket parts and service.” Please see www.cawa.org for more information.

YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Choose Original MINI Parts. Because you can’t repair your reputation.

S Hardtop 2011

These Dealers Below Are Original MINI Parts Distributors:

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Nick Alexander MINI Los Angeles

800-800-NICK 323-583-4109 Direct www.alexandermini.com

South Bay MINI Torrance

310-939-7342 310-939-7343

Rotary Lift, Chief and Elektron Coming to National Automobile Dealers Association Expo Rotary Lift, Chief Automotive Technologies and Elektron will introduce equipment designed to help dealers increase their fixed operations productivity and profitability at the 2012 NADA Expo at the Las Vegas Convention Center, February 3 through 6, 2012. The Rotary Lift Shockwave™equipped SmartLift® environmentally friendly inground lift and Elektron® Multispot MI-100control T squeezetype resistance welders from Chief will make their industry debut at the show. Shockwave-equipped SmartLift inground lifts and two-post surface lifts are the world’s fastest lifts. Their 25-second rise and 19-second descent times are twice as fast as traditional lifts’. These DC-powered lifts also cost less to install and operate, for even speedier return on investment. Time and motion studies have found that Shockwave-equipped lifts can drive an additional $3,259 of profit per bay annually. Rotary Lift will run side-by-side speed demonstrations of standard vs. Shockwave-equipped

lifts in NADA Booth 718 throughout Expo show hours so dealers and fixed operations managers can see the power of Shockwave for themselves. The Elektron Multispot MI100control T resistance welder is the “smartest” welder on the market today. Designed specifically for spot welding vehicle structural body damage to areas manufactured with highstrength and advanced high-strength steels, the MI-100control T constantly monitors the materials being welded and automatically adjusts the welding parameters during the repair process to ensure uniformity. The welder detects and compensates for interference factors such as dirt, adhesives or protective coatings, as well as a change in materials. The welder will even adjust electrode pressure as needed. “Fixed operations remain an important factor in dealer profitability,” says John Rylee, marketing director for Rotary and Chief parent company Vehicle Service Group (VSG). “As dealers increasingly heed OEM sug-

gestions to add express service lanes, improve service times and bring collision repair back ‘in house,’ we’re providing equipment that enables them to maximize these investments for greater customer satisfaction and overall profitability.” For more information about Shockwave, visit www.rotarylift.com/shockwave. To learn more about the full line of collision repair equipment from Chief, including Elektron welders, visit www.chiefautomotivetechnologies.com. You can also find the brands on Facebook, Twitter and YouTube. The Rotary Lift booth number is 718. Rotary Lift is a brand of vehicle lifts and equipment designed to increase technician productivity. Founded in 1925 by the inventor of the first automotive hydraulic lift, Rotary Lift offers the broadest line of lifts for use in professional automotive service, commercial truck and transit, and enthusiast/residential customer segments. There are more Rotary Lift products used in vehicle repair shops around the world than any other brand. Chief Automotive

Technologies is one of the world’s largest manufacturers of collision repair products and services, including frame-pulling equipment, vehicle anchoring systems, computerized measuring systems, and vehicle frame specifications. Chief is also a provider of comprehensive training on structural analysis, computerized measuring, collision theory and design based repair. Additionally, Chief is the exclusive supplier of Elektron welders, battery chargers and plasma cutters in North, Central and South America. Rotary and Chief are Vehicle Service Group (VSG) brands. VSG comprises eight major vehicle lifting and collision repair brands: Rotary Lift, Chief Automotive Technologies, Forward® Lift, Direct-Lift®, Hanmecson®, Revolution® Lift, Blitz® and nogra®. Based in Madison, Ind., VSG has operations worldwide. VSG is part of the Engineered Systems segment of Dover Corporation (NYSE: DOV), a multi-billion dollar, global producer of innovative equipment, specialty systems and value-added services.

Want every job to be a bang-up job? These dealers are Genuine VW Parts Wholesale Specialists.

So. California City Volkswagen SAN DIEGO

800-927-2277

FAX: 619-276-2414 M-F 7:30am - 6pm; Sat 8am - 5pm

WE WANT TO BE YOUR SOURCE FOR REAL VOLKSWAGEN PARTS. We have the Real Volkswagen Collision Parts that make your job easier and your customers happier. With your skill and our parts, every collision repair will be a bang-up job. And that will add up to more repeat business for both of us. Call your order in today.

www.cityvolkswagen.com

Drew VW

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888-839-0777

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Timmons Volkswagen LONG BEACH

1-888-489-5001

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Volkswagen of Downtown LA LOS ANGELES

213-747-7246

FAX: 213-222-1272 Ask for Carlos or Erasmo

No. California Dirito Bros. Walnut Creek Volkswagen WALNUT C REEK

1-800-VOLKSWAGEN FAX: 925-934-0786 diritovw@aol.com

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 51

Mitchell Announces Wicklunds CARSTAR as Winner of Get-a-Life Dream Vacation Mitchell, a San-Diego-based provider of technology, connectivity and information solutions to the Property & Casualty claims and Collision Repair industries, announced the winner of Mitchell’s Get-a-Life Dream Vacation contest held in 2011. Mitchell’s RepairCenter™ team presented Gabrielle Kephart of Wicklunds CARSTAR and Glass in Liberty, MO with a check totaling $5,000 in late December 2011, for an all expenses paid trip to Maui, Hawaii. RepairCenter is the industry’s first Shop Workspace™ solution that manages the repair, the customer, and the business, all from a single personalized workspace, helping body shops manage their businesses so well that they have time to “get a life.” “Congratulations to Wicklunds CARSTAR for winning Mitchell’s Get-a-Life Dream Vacation,” said Jim O’Leary, Mitchell’s Vice President of Repair Solutions. “We are pleased to empower shop employees to ‘get a life’ by simplifying every aspect of complex auto collision repair business environments. Mitchell’s Repair-

Center auto shop management software streamlines key repair processes to help body shops be more efficient.”

Receiving Mitchell’s Get-a-Life Dream Vacation contest prize from Stephan Brisard, Director of Product Marketing, Mitchell Repair Solutions, right, are (from left): Rochelle Wicklund, Collision Repair Consultant, Gerald Wicklund, Owner/General Manager, Gabrielle Kephart, Collision Repair Consultant at Wicklund CARSTAR and Glass, the winner of the trip to Maui, Hawaii

O’Leary added, “We believe that a trusted partnership―founded on listening, responsiveness and collaboration―is the cornerstone of Mitchell’s and our clients’ success, and we will continue building on the value we deliver to the collision repair industry.”

Used Car Drought Ignites Dealer Bay Competition

With new car and light car sales plunging from an average of nearly 17 million units per-year (1999 to 2007) to less than a 12 million new vehicle annual average between 2008 and 2014, there will be a rapid drop in used vehicles seven years and newer through 2017, with used-vehicles shortages in key model years continuing to 2020.

Major Dealer Profit Streams Virtually all Dealer profits come from two sources: used-vehicle sales along with parts and labor volume. For most Dealers, new car and light truck sales do not contribute to the bottom line. With the coming plunge in used vehicles available for Dealers to sell, Dealer profits from used-vehicle operations will crater. To compensate for this income loss, Dealers need to drive other sectors of their business. The only major opportunity for Dealers to expand profits (to compensate for the loss of income from lower used-vehicle sales) with be to promote parts and labor sales, primarily through their bays. Renewed DIFM Competition From Dealer Bays This means Independent (non-Dealer) service outlets will face renewed competition from Dealers who are being squeezed by a lack of used vehicles

and dwindling warranty dollars (resulting from improved vehicle quality and reduced new vehicle sales).

Repair Specialists While many Repair Specialists are expanding their menu of repair jobs, their business still remains more concentrated among a core group of repair operations than general repair shops such as Service Stations and Garages.

Ten-Year DIFM Growth Run Between 2000 and 2010, Repair Specialists expanded their DIFM product volume at an annual rate more than twice the pace of overall Service market growth. Their share of Service market product volume increased nearly one-quarter between 2000 and 2010 as their combined DIFM product volume soared over 50% at user-price.

Foreign Specialists Outlets focusing on the repair and maintenance of foreign nameplates operate a smaller number of outlets and service bays than Repair Specialists. Foreign Specialists achieved nearly 5.0% Service annual market product expansion during these 10 years, higher than the growth pace of Repair Specialists which account for a much larger share of total Service market product volume than Foreign Specialists.

52 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

“I’m thrilled that I won Mitchell’s Get-a-Life dream vacation – I couldn’t believe that I won,” said Kephart, Collision Repair Consultant for Wicklunds CARSTAR. “Mitchell RepairCenter is a great program that helps me daily in my job, from managing and navigating through files to get info on a certain file. I’m looking forward to having an amazing time in Maui with my mother.” RepairCenter is the industry’s first Shop Workspace, building on the strength of Mitchell’s market-leading business management systems, repair information content, and customer satisfaction services functionality. RepairCenter’s flexible design allows auto body shops to select the tools they need to create a customized Workspace that meets their exact needs, and then add modules as their businesses evolve. To learn more about RepairCenter and Mitchell’s other solutions for collision repair facilities please fill out the contact us form on Mitchell.com or contact your Mitchell representative.

Wicklunds CARSTAR & Glass of Liberty, MO was the First CARSTAR Franchisee. Founded on the principle of raising the standards of the collision repair industry, Wicklunds CARSTAR Collision Repair Center must meet strict requirements concerning quality of work, training and customer satisfaction. Wicklunds CARSTAR & Glass has earned The CARSTAR President’s Platinum Award for Excellence in Customer Satisfaction. Customers have given Wicklunds a Customer Satisfaction Index Rating of 97% or greater since the program’s inception in 2002. Quality repairs combined with an exceptional warranty and excellent customer service. For more information, visit www.wicklundscarstar.com. For more information about Mitchell, visit www.mitchell.com.

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Bay Area Iraq Veteran Gets Car Makeover by Two Bay Area Body Shops As a sign of gratitude, two Bay Area body shops and Enterprise Rent-a-Car made an Iraq war veteran’s homecoming a little more special, by restoring his car for free, according to reports by CBS News and The Saratoga News in December last year. The car belongs to Army Specialist Anthony Gadd, who bought it off Craigslist while serving in Iraq. At $1,300, he got what he paid for. The formerly beat-up 1996 Volkswagen Golf with a messed-up bumper, had been completely restored, inside and out, all for free. With a refurbished body and new paint, it has never looked better after 89,000 miles. The restored car was revealed to Gadd on Dec. 3, 2011, who came home from Iraq on November 8. “Wow! It looks amazing,” Gadd said. “Oh my gosh, it’s gorgeous.” Over the past four months, a small army of craftsmen, painters and mechanics donated the materials and a hundred hours of their time. Anderson Behel body shop in Santa Clara did the paint. “I have a huge appreciation for the soldiers that are on active duty and those

who have served in the past,” said David Mello of the body shop. “And so I think I got the easy part, painting somebody’s car.”

Army Specialist Anthony Gadd, an Iraq War veteran, sits inside his restored Volkswagen Golf. Gadd’s car was restored by a group of body shop mechanics who donated materials and their time. (courtesy CBS)

FCC Collision center in Mountain View said the 15-year-old car had a lot of problems. Altogether, it was $7,000 of work. The 26-year-old is now unemployed, looking for work in computer science. Gadd’s mother, Anne, said her son was initially hesitant to accept such a gift. because he said other soldiers are more deserving. But he eventually came

around. “People in our country are so patriotic and love you for serving our country,” she told her son. “They are so grateful and want to stand with you. And this is the way they know ho “I don’t think I did anything special. I didn’t do anything courageous or anything like that,” Gadd said. “I just did my job.” After Gadd bought the beat-up car, which was parked on the family’s street in Saratoga, the Gadd’s next-door neighbor Chad Iken, a Bay Area regional vice president at Enterprise Rent-A-Car, offered to talk to a few people he knows in the body shop business to help out. He found Matt Piper of FCC Collisions Center in Mountain View and Anderson Behel in Santa Clara, both of which offered to refurbish and repaint the car for free. Neither did it for the publicity, and are shy about taking credit for their work. “We don’t get an opportunity to interact with a lot of veterans,” Piper said. “But we feel for people who have to leave our country and spend time in a not very pleasant place away from family. It’s a lot tougher than a 9 to 5 job.

And it’s just our token attempt to help out.” As Gadd tells the story, he found the car by searching on Craigslist while he was still in Iraq, knowing he’d need wheels to be able to drive to UC Davis in January to finish up his degree in

FCC Collisions Center in Mountain View and Anderson-Behel in Santa Clara complete redid this VW Golf for Army Specialist Anthony Gadd. (Courtesy of Anthony Gadd)

computer science engineering. At the time, he was overseeing helicopter missions in Iraq with the National Guard’s 40th Combat Aviation Brigade, based out of Fresno. “They did all this work, like $7,000 on a $1,300 car,” Gadd said. “They redid every panel. They replaced every part. It’s really important for people to know that there are people in the community who do good things for vets.”

See these Hyundai dealers below for all your collision parts needs! ARIZONA

SO. CALIFORNIA

NO. CALIFORNIA

Chapman Hyundai

Kearny Mesa Hyundai

San Leandro Hyundai

PHOENIX

SAN DIEGO

SAN LEANDRO

877-684-5803

800-469-9731

510-347-3010

858-300-3331 Fax

510-895-1027 Fax

Mon-Fri 7am - 6pm Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com

Lithia Hyundai

602-866-6166 602-866-6196 Fax Hyundai Sonata 2011

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

Mon-Fri 7am - 6pm Sat 8am - 3pm rockygray@chapmanchoice.com

FRESNO

800-462-2231 559-436-6041

Tuttle Click Hyundai

559-436-0743 Fax

SO. CALIFORNIA

IRVIN E

Drew Hyundai

800-428-7485 949-472-7430

Mon-Fri 7am - 6pm Sat 8am - 1pm etaylor@lithia.com

SAN DIEGO

888-839-0777 619-668-7782 Direct 619-460-4082 Fax importorder@drewauto.com www.drewhyundai.com

949-586-5104 Fax 949-586-7093 Fax Mon-Fri 7am - 7pm Sat 8am - 5pm snielsen@tuttleclick.net www.tuttleclick.com

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 53

Continued from Front Page

CIC Palm Springs

valid survey of the industry. “You can’t project the findings to the industry as a whole,” he said. Rather, he said, the committee hired a consultant to do more of a type of focus group: Hourlong conversational interviews with more than 40 indusRuss Thrall try representatives to develop some sense of the industry’s opinions regarding repair standards. Though a more in-depth report on the study’s findings is expected to be released in the coming months, the committee released a 21-page summary (posted online at http://tinyurl.com/7tysey4) of some of the more quantitative findings, the responses to the questions asking participants for yes-or-no or ranking responses. In 42 interviews with shops, insurers, associations, automakers and suppliers, the consultant found that all 18 shop representatives interviewed said they would support the standards effort; generally less than 65 percent of those in the other segments (which included six shop associations or networks) concurred. While not quoting interviewees directly, the report offers a sense of some of the comments made. Shop association representatives, for example, questioned what such a program is going to do for shops, and said insurers should not be in a position to influence how vehicles are repaired. Two of the six insurers interviewed also said that insurers shouldn’t be involved and that shops should drive the effort. The last question in the draft report issued by the committee asked survey participants what they see as the likelihood that the repair standards initiative would be implemented within the next five years. Thrall said using a scale of 1 (no chance) to 4 (definitely), most respondents were somewhere in the middle. Continued from Page 50

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ment was settled merely as a nuisance claim. I’ve never once found where

“It’s leans toward ‘likely’ (a 3 on the survey’s scale), but it’s more ‘perhaps (a 2 on the scale),’” Thrall said. “So people definitely aren’t sure it will be possible to implement this within the next five years.”

CIC Participants Speak Out Though the discussion that followed the committee’s report at CIC, held in January in Palm Springs, Calif., included some discussion of the issue of standards, much of it focused on criticism or defense of the research study itself. Some of the CIC participants who spoke included: ● Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), who said he felt the survey questions seemed less focused on “determining the appetite of the industry” for a formalized standard program and more on “carving out the menu.” He said the consultant, in addition to the 42 interviews, participated in a conference call with more than a dozen of SCRS state affiliate groups. “I think it was very clear from our folks on that call that (standards) are something that is valuable to be done by collision repairers for collision repairers, but that there was skepticism of having involvement among entities such as insurance carriers involving the establishment of repair standards.” ● Paul Massey of Ford Motor Company said that although OEM repair procedures are the logical basis for repair standards, it’s really up to shops, insurers and consumers to decide if there’s value in developing a formalized standards program. The Paul Massey study, he said, didn’t answer the questions he thinks the industry needs to ask itself. “At the end of the day, if you put in standards would a lot more customers choose you over the next guy,” Massey said. “If you put in standards, do you run a better, more competitive and profitable business? And if you put in an insurer has ever overpaid a claim and they didn’t in this matter either. They knew what they owed and why and that they would lose if it went in front of jury. They also knew, they would surely incur additional and sig-

54 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

standards will the insurance companies use you versus the other guy?” ● Steve Nantau of Ford said he thinks many shops misunderstand “repair standards” as just dealing with the process of the actual repair, when he and the committee envision a more inclusive program that includes standards for training and equipment, and a third-party certification or auditing entity like one in the United Kingdom. “If you don’t have a third-party doing this, I can guarantee you that the OEMs are going to have certification programs for independent shops,” Nantau said. “We’re seeing that already. And it’s not going to be open to just anyone who’s qualifies. They’re going to be chosen. If you qualify and you weren’t a chosen one, you’re not going to be able put a (certified) sign above your door like you could if the industry create a third-party that certifies all who qualify.” ● Consultant Matt Ohrnstein of Symphony Advisors urged proponents of standards development not to “allow intermediaries to profit by taxing collision repair shops around the country for training, certificaMatt Ohrnstein tion, OE-specific equipment and third-party verification.” ● Committee member and current CIC chairman Mike Quinn emphasized that the committee sees the study as information-gathering, not a license to push something forward. “This conversation is the beginning of many conversations,” he said. “There’s no Mike Quinn plans of any kind to move this forward any further from this study. It’s up to the industry to decide what happens next.”

styne said his organization hopes to respond by April to a joint request from multiple repairer associations that I-CAR play a role in standards formation. Last fall, a number of industry associations issued a statement calling published automaker repair procedures the “official industryrecognized repair standards for collision repair.” In the statement, the John Van Alstyne groups acknowledged that OEM repair procedures are “incomplete in comparison to the full scope of vehicles and repair operations that exist in the marketplace,” but they should serve as a baseline from which further development of procedures occur. The associations called on I-CAR to create an industry council “to identify gaps in existing OEM procedures” and to develop processes to close those gaps, vetting any industry-proposed alternatives, modifications or additions to OEM procedures. At CIC in Palm Springs, Van Alstyne reiterated what he said last fall, that he sees merit in the proposal given I-CAR’s current involvement with the automakers. But he also has said I-CAR’s board must decide what role it’s appropriate for the organization to play, and that he has personally been in touch with I-CAR stakeholders to gather feedback. He said the I-CAR board’s “strategic planning committee” will review that compiled feedback and make a recommendation to the board—with a decision, he said, likely by CIC’s April 25-26 meeting in Oklahoma City, Okla.

I-CAR promises response Also at the CIC meeting in Palm Springs, I-CAR CEO John Van Al-

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at: jyoswick@SpiritOne.com.

nificant legal costs and interest just as they have in the past. I don’t care what they say their motivation was as long as they pay us so we can pay our team-members for every drop of sweat they drop in the repair of our

customer’s vehicles.” “It will be interesting to see how the other three active lawsuits we have filed against State Farm on behalf of our customers turn out,” continued Gunder.

BMW Announces Nearly $900 Million Investment, Adding 300 Jobs at its South Carolina Plant On January 12, BMW announced that the company will invest nearly $900 Million and add 300 new jobs in 2012 in its South Carolina plant. This announcement was made during a ceremony to commemorate a major production milestone—2,000,000 vehicles have rolled off the assembly line since the company began U.S. production in 1994. Frank-Peter Arndt, BMW Group Board Member responsible for Production, revealed the company’s intention to expand its X-model family. He revealed that production of the new BMW X4 will occur at the Spartanburg plant, spurring significant investment and job creation necessary to prepare the facility for the new model. “I am delighted to announce today, over the next three years, we plan to invest nearly $900 Million U.S. dollars. With this investment, we will be able to produce 350,000 units here in the mid-term,” said Arndt. “This is one reaction to the rising global demand for our BMW X Models.” Governor Nikki Haley spoke at the ceremony saying, “BMW has once

again provided tremendous evidence that South Carolina is a blueprint for significant economic development success. The partnership between this company and our State is an enduring example of how to attract, retain and grow business to stimulate perpetual job creation.” “Two million vehicles have prepared our team well to meet the new opportunities that lie ahead for our plant. We look forward to a new model with great anticipation. For nearly 20 years, this team has always proven their steadfast commitment to producing quality vehicles for our customers around the world,” remarked Josef Kerscher, President of BMW Manufacturing. “I am thrilled to celebrate the two millionth BMW today,” said Bobby Hitt, Secretary of Commerce for South Carolina. “BMW’s impact on South Carolina’s economy and overall competitiveness is always worth celebrating. This new economic investment and commitment of jobs is a testament to South Carolina’s strong automotive manufacturing industry.”

With the addition of 300 new jobs this year the plant will raise production capacities up to 300,000 units. By the end of the year, the plant will employ nearly 7,500 people at its more than 4.0 million square foot facility. Since the original 1992 decision to build BMW’s only U.S. plant in South Carolina, this announcement brings BMW Group’s total investment in the state to nearly $6 Billion U.S. dollars and represents its largest, single investment to date in its South Carolina plant. In 2011, the plant produced 276,065 vehicles for over 130 markets around the world representing a 73% increase versus 2010. Seventy percent of the vehicles produced (192,813) were exported making BMW the largest automotive exporter to the non-NAFTA countries. Sales of the vehicles produced at the plant have met with continued high demand. According to Arndt, throughout the world, more that 117,000 X3’s were sold in 2011 representing a 156% growth of this vehicle versus its predecessor.

The 2 millionth vehicle to roll off the line in Spartanburg was a Vermillion Red Metallic X3 xDrive35i driven by BMW Associate Terry Gardner, a 16-year BMW veteran. Accompanying the driver, were associates: Renita Williams, Trung Phan and Olga Yurchenko. These associates represent teams from each of the plant’s manufacturing technologies: Body, Paint and Assembly. While all vehicles are custom ordered prior to production, this symbolic vehicle will remain on display at the Spartanburg Plant to commemorate the milestone. Also making remarks at the milestone event were German Ambassador to the United States Peter Ammon, United States Congressman Trey Gowdy and Spartanburg County Council Chairman Jeffrey Horton. Since 1994, the plant has undergone four major expansions and produced 6 different BMW models. Employment has grown from 500 in 1994 to more than 7,000 today. Visit www.bmwusfactory.com for more information.

NRC Releases Automotive Electronics Safety Report The Automotive Service Association (ASA) has noted the National Research Council’s (NRC) Transportation Research Board recently released a study reviewing automotive electronics safety, which will likely result in electronics safety policy changes. The committee that produced the report found that the increasingly capable and complex electronics systems being added to automobiles present many opportunities for making driving safer but also present new demands for ensuring their safe performance. These safety assurance demands pertain both to the automotive industry’s development and deployment of electronics systems and to NHTSA’s safety oversight role. With regard to the latter, the committee recommends that NHTSA give explicit consideration to the oversight challenges arising from automotive electronics and that the agency develop and articulate a long-term strategy for meeting these challenges. ASA said the study—which was requested by the National Highway Traffic Safety Administration (NHTSA) after the 2009–2010 reports of sudden acceleration problems in Toyota vehicles—was meant to iden-

tify how the NHTSA’s regulatory, research and defect investigation programs can be strengthened to meet the safety assurance and oversight challenges created from the use of automotive electronics. The ASA said key findings from the study include the following: • Electronic systems have become critical to the functioning of modern automobiles. • Electronic systems are being interconnected with one another, and with devices and networks to provide their desired functions. • Proliferating and increasingly interconnected electronics systems are creating opportunities to improve vehicle safety and reliability, as well as demands for addressing new system safety and cyber security risks. • By enabling the introduction of many new vehicle capabilities and changes to familiar driver interfaces, electronics systems are presenting new challenges for system design and vehicle-level integration. • Automotive manufacturers implement many processes during product design, engineering and manufacturSee NRC Report, Page 57

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 55

Shop Showcase

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

Customers Expect Quality in All Respects from The Body Shop of Athens with Chasidy Rae Sisk

From the moment I came across the Body Shop of Athens’ online, I could tell there was something special about this shop. Their offer of insider tips, latest news updates and the detailed description of the repair process hinted at a shop dedicated to educating the customer and keeping current in the industry, but I had no idea how dedicated owners Carl and Carla Colquett also were to their Georgia community and the environment. In November 2008, the Body Shop of Athens in Athens, GA, was the first in their market to convert to a wa-

The Body Shop of Athens Owners Carl and Carla Colquett

terborne paint system. They also recycle all paper, plastic, cardboard and metal materials, providing recycle containers for each employee, and they have three separate dumpsters to accommodate their efforts, including one that is made of recycled materials itself. The Body Shop of Athens volunteered to be the first shop inspected in their area for 6H compliance, and Carla sat on the EPA/EPD Stakeholders Federal 6H Rule Committee for the state of Georgia, representing the collision industry segment. Carl and Carla also support local green energy expos by hosting a booth to explain waterborne paint and recycling. The shop shows its community efforts in many ways. In addition to sponsoring and donating to many organizations, such as Junior League of Athens, Athens Area Cancer Auxiliary and Business Network International, they also sponsor their local Boy Scouts and Food 2 Kids organizations. They participate in Toys for Tots as well and are in collaboration with the State Police for free child seat safety checks at their shop. They offer free meeting space in their conference rooms to the community, and they

subsidize space for the International Office of Women to the World, where Carla also serves as a board member. Even though they are busy with the day-to-day business of running a successful body shop, Carl and Carla also take time out of their hectic schedules every Saturday morning to record a radio show on 1340 Newstalk AM and Bulldog 103.7 FM called “CarChat with Carl and Carla” where they discuss details consumers should know about their vehicles as well as current events in the community. Carl Colquett founded the Body Shop of Athens in 1995 after graduating Athens Technical College and spending fifteen years at the local GMC/Cadillac dealership. Carla became active in the business about four years ago, using her background in sales, marketing and upper management to improve the business. Since the shop was dated and located on a side street, when they decided they wanted to grow in the last quarter of 2010, they moved 1.5 miles down the road to their current location on a main highway between downtown Athens and the mall. According to Carla, “we relocated because of the customer experience and to meet and exceed the environment required by insurance providers.” Their dedication to customer service can be seen in each repair that leaves their shop. Expectations are high as evidenced by a sign in their estimator’s office reading “Always Expect Excellence.” They even have a climate-controlled drive-through estimating and delivery area. They have also opened a sizable Jittery Joe’s Coffee Shop in their lobby for customers. It’s more than a caffeine fix, it’s a socializing hub for the whole community. As a final “chocolates-on-thepillow” gesture, each repair is delivered with a care package consisting of a car-shaped cookie, a logo bag, logo bottle of water and a rose with a handwritten thank you card, along with the customer’s final paperwork and warranty information. The CSI scores, not surprisingly, are near 100%. The Body Shop of Athens offers on-site rental vehicles as well as a

56 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

smartphone application called “Help I Crashed My Car,” an car accident emergency assistant where drivers can store all of the information they need in case of an accident. The shop is also in the process of obtaining their Female Friendly Certification through askpatty.com, and they embrace modern social media by frequently updating their Facebook page. Since opening, the shop has nearly doubled their revenue by building relationships, experimenting with new ideas and expanding their view of what it means to be a quality auto

The Body Shop of Athens occupies a 4,000 square-foot building on Atlanta Highway

body shop. Carl and Carla attended the NACE expo in Las Vegas in 2010, and they found the amount of educational and networking opportunities to be amazing. It was enjoyable for Carla because “we were able to spend time working on our business, not in our business.” In regards to the modern business practices, the shop has been embracing the current trends of meticulous disassembly and lean processes which lead to more efficient repairs. They note that the trend towards waterborne paint products is good all around, from the environmental benefits to the exceptional color matching. Additional sources of revenue include glasswork, paintless dent repair, storage and mechanical work. They are also currently working on an express bumper repair lane. When asked about challenges the shop has experienced lately, Carla noted that many consumers do not understand their rights of repair choice and that the shop provides a warranty of the workmanship, not the insurance company. Also, with the influx of new technology, many customers are re-

questing estimates by emailing or texting photographs of their damaged vehicles. Carla noted the tendency of consumers to delay repairs and use funds for other obligations due to the current economy as well as challenges concerning aftermarket parts. The Body Shop of Athens is ASE and I-CAR certified. Carl and Carla Colquett are both AMI graduates (Accredited Automotive Managers), and both sit on the Athens Tech Advisory Board for the Collision Division. Additionally, Carla is a state certified continuing education instructor for insurers, the vice president of Collision ASA NE Georgia and a member of WIN, Womens’ Industry Network. The Body Shop of Athens is a 14,000 square foot shop of which 4000 sq. ft. is dedicated to the lobby. There are nine employees working in the shop. The shop uses a Saico Downdraft Paint Booth, Chief Frame Machine, Rotary Lifts and Spot Welders. Their CCC One estimating and management system has been especially useful in enhancing productivity, and Carla also credits the waterborne paint system as a major benefit to their business. In the last quarter of 2011, the Body Shop of Athens averaged seventy vehicle repairs monthly. They utilize PPG Aquabase paints, and though they get a mix of older and newer model vehicles, they do not have any difficulty matching the paint on older vehicles. Carl and Carla strive to educate customers on all aspects of the refinish process. The Body Shop of Athens currently does not participate in any direct repair programs. Although they are in favor of obtaining such relationships, they are doing their research before securing any agreements for fear that mandates on parts and procedures can jeopardize the quality of their repairs. As always, Carl and Carla think about the customer first. The Body Shop of Athens 2950 Atlanta Highway Athens, GA 30606 (706) 546-1158 thebodyshopofathens.com

Nissan and Daimler to Produce Engines Together at Nissan’s Tennessee Plant In the latest step forward in the collaboration of the Renault-Nissan Alliance and Daimler, Nissan’s Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014. Nissan and Daimler will produce Mercedes-Benz 4-cylinder gasoline engines together at Nissan’s powertrain assembly plant in Decherd, Tenn. Production will begin in 2014, with installed capacity of 250,000 units per year once full ramp–up is achieved. The Decherd facility will produce engines for Mercedes-Benz and Infiniti models. “This is the newest milestone in our pragmatic collaboration and our most significant project outside of Europe so far,” said Renault-Nissan CEO Carlos Ghosn. “Localized capacity reduces exposure to foreign exchange rates while rapidly enabling a good business development in North America—a win-win for the Alliance and Daimler.” The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade re-

gion. The Tennessee plant’s strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Tuscaloosa, Ala. “In the context of our MercedesBenz 2020 growth strategy, we have decided that we will expand the production capacities required for this close to the customers. Through the strategic extension of our cooperation with Renault-Nissan we can realize near-market engine production in the NAFTA region on attractive economic terms and make optimum use of synergies arising from the cooperation,” Dr. Dieter Zetsche, Chairman of the Daimler Board of Management and Head of Mercedes-Benz Cars, said. “Thus we are systematically broadening our manufacturing footprint in this important growth market.” Nissan began powertrain assembly in Decherd in 1997. Today it manufactures 4-, 6- and 8-cylinder engines for the complete lineup of U.S.-produced Nissan and Infiniti vehicles. The plant also houses crankshaft forg-

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ing and cylinder block casting operations. In 2011, Decherd produced more than 580,000 engines on a covered area of more than 1.2 million square feet (111,000 square meters).

3. Powertrain cross-supply: The Alliance is supplying Daimler with compact three-cylinder gasoline engines to be used in smart and Twingo vehicles and four-cylinder diesel engines to be used in the jointly developed light commercial vehicle and in MercedesBenz’s next generation of premium compact cars. Daimler will supply Nissan and Infiniti with four- and sixcylinder gasoline and diesel engines from the current and future engine portfolio as well as with automatic transmissions. Since its founding in April 2010, the collaboration has been gradually expanded. In addition to the announcement this week about North American engine production, the companies also decided to partner on: Platform sharing: Infiniti plans to base a premium compact vehicle on the Mercedes compact-car architecture, starting in 2014; Zero-emission vehicles: Daimler will provide batteries from its production facility in Kamenz, Germany, and Renault-Nissan will provide electric motors for the use in electric vehicles.

Continued from Page 55

tigate safety deficiencies in electronics-intensive vehicles. A regular channel of communication should be established between NHTSA’s research program and ODI to ensure that recurrent vehicle safety problems are the subjects of research. • Event data recorders (EDRs) should be commonplace in new vehicles. • NHTSA should initiate a strategic planning effort that gives explicit consideration to the safety challenges resulting from vehicle electronics. “This report likely assures that NHTSA will proceed with policy changes relative to automotive electronics review and safety. The recent security breaches or hacking activities in some vehicles increases the need for automotive repairs to be done by professionals,” said Bob Redding, ASA’s Washington, D.C., representative. “The automotive industry’s effort with the National Automotive Service Task Force’s (NASTF) Secure Data Release Model is an example of independent repairers working with automobile manufacturers to ensure vehicle security. We are hopeful that NHTSA will include independent repairers in the strategic planning process for automotive electronics safety.”

Project portfolio expands Daimler and the Renault-Nissan Alliance launched their strategic collaboration in April 2010, including an equity exchange that gives the RenaultNissan Alliance a 3.1 percent stake in Daimler and Daimler a combined 3.1 percent interest in Renault and Nissan. The collaboration began with three project pillars: 1. Joint smart/Twingo architecture: The project is on track for launch in the early first quarter of 2014. Twoseater smart vehicles will be produced at Daimler’s plant in Hambach, France, and four-seater smart and Renault production are slated for Renault’s plant in Novo Mesto, Slovenia. 2. All-new entry-level city van project for Mercedes-Benz: The project is on schedule with expected launch in late 2012. Manufacturing at Renault’s plant in Maubeuge, France.

NRC Report

ing intended to ensure that electronics systems perform as expected, and to detect failures when they occur. The ASA said the 16-member committee that conducted the study made the following recommendations to the NHTSA: • NHTSA should become more engaged in standard-setting and other efforts aimed at strengthening the way auto manufacturers ensure the safe performance of their automotive electronic systems. • NHTSA should convene a technical advisory panel comprised of individuals with backgrounds in the design, development and safety assurance of automotive electronic systems. The panel should be consulted on relevant technical matters that arise with respect to all of the agency’s vehicle safety programs, including regulatory reviews, defect investigation processes and research needs assessments. • NHTSA should undertake a comprehensive review of the capabilities that the Office of Defects Investigation (ODI) will need to monitor and inves-

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 57

Custom Corner with Rich Evans

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Doing a Charity Build for Patriot Outreach on a Donated Mustang

Alan Taylor from Motor Trend Radio called me last fall to say he had partnered up with eBay Motors to ‘personalize’ a 2012 5.0L Mustang donated by Galpin Ford, and auction it during SEMA 2011. He wanted to put a team together to take the car from “stock towith extreme,” but still Thomas Franklin street legal. I was in. They also wanted to do a videofor-the-web program about personalizing the car from start to finish. The program is called modJOBS, and you can go to eBay Motors and watch our 6–8 minute episodes at cc.ebay.com/ The 2012 Ford Mustang, seen here at SEMA 2011, was built by the modJOBS team to benefit Patriot Outreach. The car was auctioned off on eBay Motors and yielded $50,100, all of which mod-jobs. It’s narrated by Alan and will go to Patriot Outreach to support treatment for PTSD Dennis Pittsenbarger from Hot Rod Magazine Live. (I come in on episode it to represent the men and women with my design concept I came up #3, Sweet and Low.) So modJOBS that serve our country and provide with, I want to make the car look like makes it fun, everybody gets to team some benefits when they get back it’s going 100mph and then I want to Dickalong Strom from serving. represent Patriot Outreach and design up and you getwith to follow by Basically we’re going to take this a really cool rim. I came up with a rim watching the episodes of how to build a vehicle and how to add accessories car and partner with a lot of people and for you guys to see it you’re going and what’s available out there for from the performance, the wheels, the to have to go visit modJOBS and see braking, paint, parts, concept, and exthese new vehicles. haust. So 2012 Mustang, basically bringing it over to get the performance handled by Edelbrock so what a better way to get the performance done. So they put a supercharger in this thing, which gives you another 100150 horsepower to bring it up to 550at the flywheel. I don’t want to give with Lee AmaradiohpJr. you all the inside scoop on it because I really want you guys to watch our modJOBS episodes and follow us With Dennis Pittsenbarger (l) checking out the along the build that way. caliper covers by MGP Caliper Covers I reached out to a team of guys to Alan said the car would be auc- help me so I didn’t have to carry the tioned on Ebay and the proceeds whole weight of this build. We got would go to a charity called Patriot Ryno Templeton from Blast of Air, a Outreach (www.patriotoutreach.org) lot of you guys will know him from to contribute to treating PTSD. The ul- my Allstar team on Car Warriors. I timate team would include Vick Edel- also reached out to Revo Reeves who brock, Jr. (supercharged engine); with Sheila Loftusowns Stitch Craft Interiors. Revo did Revo Reeves (interior), Ryan ‘Ryno’ the interior and the audio and Ryno Templeton (paint), and me (modified did the airbrush art on the headliner and the paint. We did a logo for Patriot design and fabrication). I love building cars and was Outreach on the fiberglass headliner happy to put time and effort to benefit that I made. We don’t really want to the people that have served our coun- get real loud with this car but we want try and are the real heroes. They go to make it kind of subtle and cool. over and risk or sacrifice their lives to Everybody knows me, I’m always real loud, so I’ve got to tune it down and make better lives for us. Here was a back a little bit, which you’ll see by chance to give something back. So we started off with Galpin’s watching the modJOBS videos. With the interior we’re just going 2012 5.0L Mustang with the goal of to do it real subtle but real cool. So putting some more personality behind

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the episode. I basically took a wheel with the Chevron stripes incorporated in it and it’s also got Army, Air Force, Coast Guard, Marine and Navy representation on it to represent what these guys do in a nutshell. What a better way to give back and show our thanks than to really put some heart to it and

Ryno Templeton airbrushed the tribute to the armed forces on the headliner

that’s what I did in that wheel design. I’ve got Brian with Onward Coating cutting my wheels and I want to thank

watch it, just go to Ebay Motors and click modJOBS and follow along. Another cool thing was that we got to interact with eBay customers and let them choose. I created three concepts with the help of Ryno and let them choose which concept and paint job to go with. If we do more of these we will probaThe set of modJOBS’ production in my shop, Huntingdon Beach bly incorporate Body Works wheels, body kits, him for being able to get these wheels and stuff like that and make it a build out on time. It came down to a pinch your own car. It makes it unique when where we had to put these wheels on a you’re interacting with the viewers plane and get them out here in time to and the customers in finding what make it for the big unveiling at 2011 they want. After creating all this and SEMA. I wanted to incorporate its building this car, the journey was cool. own stand alone grille, so I created a Benchmark Productions are the peogrille kit for it, and also a scoop. And ple that produced everything. We did from there we’re incorporating a racmost of the build here at Huntington ing stripe down the side, a graphic, and then Ryno’s going to do his thing with some stars and stripes. The process is really cool. It’s about people getting together. We called on Hurst Shifters. My buddy Nate over there sent over a shifter for the project and also reached out to Magna Flow. They also sent out some product for Bolt on and we were actually able to take it over to them and have them inSetting up for the video stall it. There were a whole lot of other sponsors that came together on this, Beach Body Works, where we have I’d really like you guys to tune into Rich Evans Designs, my shop. MGP modJOBS, that’s the whole purpose Caliper Covers provided some Rich behind this story. I can tell the story Evans One Off Caliper Covers. To see but being able to circle back and them go to mpgcalipercovers.com and

get your own covers that you can install within 20 minutes max. That’s an easy way to personalize your car. It’s very inexpensive and it looks really cool. I need to thank my sponsors for everything they do: BF Goodrich always comes to play with a set of tires. G Force is what we used on this build. They have a new tire coming out as well so look for that it’s going to be really cool. I don’t want to spill the beans before I’m able to but BFG is really working hard and keeping you safe on the road. The guys that participated in this, Gil did a lot of work on the finishing part of it, the buffing and then we had to come in where we got some white compound on the plastic so I can’t forget to mention Solution Finish. All you body shop guys out there having problems catching that white spit off when you’re buffing the cars and it’s getting in the black and

you’re using laquer thinner to clean it out and it turns it white. SolutionFinish.com, check it out. It will resolve your oxidation problem. Wipe it on, wipe it off, you’re good to go. No mistakes had and you don’t have to buy parts and this and that. You can go to my website, huntingtonbeachbodywork.com and/or richevansdesigns.com, or go to Ebay Motors, huge site for used and new parts and the sale of cars. So check out

I’ve got some really cool stuff coming up for you guys next month. 2012 is going to be a good year and I’ve got a lot of good things going on. I’m fortunate enough to have projects that I can pick from and when you can bring the cool into building projects it makes life that much better, especially when you love what you do. I eat, breathe, live, sleep, what I do and I was fortunate enough to find it young and here I am. Hopefully you guys can keep it all positive and keep consistent and always try to better yourself at what you do. Peace out!

The Certified Automotive Parts Association is pleased to announce the election of John Palumbo of PartsChannel, Inc. and Bill Brower of Liberty Mutual Insurance to CAPA’s Board of Directors. John Palumbo is a widely recognized leader in the collision repair industry. Palumbo’s 15 years of experience began in 1996 as chief financial officer at Keystone. His responsibilities included strategic planning, mergers, acquisitions, banking, insurance, benefits, finance, accounting, tax planning, compliance, and investor relations. John is currently the chief executive officer for PartsChannel, Inc., a privately held distributor of aftermarket collision replacement parts. He received his BS degree from Canisius

MBA which he expects to complete in 2013. Bill began his career as a repair technician at his father’s body shop in Liberty, North Carolina in the 1970s. He served on CAPA’s Technical Committee for six years, holds positions on the PCI Physical Damage Committee, and is Vice Chairman of the I-CAR Board of Directors. “CAPA is fortunate to have both of these gentlemen on the CAPA’s board. Their expertise and guidance will be invaluable in our effort to ensure market has continued access to high quality alternative certified parts,” said Jack Gillis, Executive Director of CAPA. “Our Board provides CAPA with a unique insight into issues facing the

aftermarket parts industry and has contributed enormously to the nation’s foremost part quality certification program,” he continued. CAPA’s Board now includes: Bob Anderson, Anderson’s Automotive Services; Bill Brower, Liberty Mutual Insurance Company; Bill Daly, Allstate Insurance; Warren Farrar, State Farm Mutual Insurance; Jackie Gillan, Advocates for Highway and Auto Safety; Jack Gillis, CAPA; John Palumbo, PartsChannel, Inc.; Clark Plucinski, True2Form/Boyd’s Group; Ed Salamy, K.S.I. Trading Corp.; Ben Steinman, Ben's Auto Body; Mike West, Southtowne Auto Rebuild For more information please visit www.capacertified.org.

my new parts, check out the new car, check out my new wheels. You don’t have to do a lot to change and personalize a car, and that’s proven by what we’ve got going on here with this project. The biggest thing is I want everyone to check out is PatriotOutreach.org and if there’s anything you can do to bring awareness to that organization, do it. For every set of wheels I did for this project that are sold, a portion is going to that charity. I like to tie myself to projects where we’re not just thinking of ourselves. That’s what makes projects like this fun and it makes getting up in the morning feel great.

Another daylight view

A daylight view

Parts Distributor and Insurer Elected to CAPA’s Board of Directors College in Buffalo, New York and graduated with an executive master of business administration from Peter F. Drucker Claremont Graduate University in Claremont, California. He is also a certified public accountant. Bill Brower is a highly respected property and casualty claims management professional with extensive claims experience and a long established background in auto physical damage claims. Since 2004 Brower has been the Assistant Vice President & Manager Auto Physical Damage for Liberty Mutual Insurance. Bill graduated Magna Cum Laude from Franklin University in Columbus, Ohio in 2005. He is in the process of studying for his

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 59

Shop Showcase

A1 Grand Auto Body in NY—A Family Commitment to Quality Repair with Chasidy Rae Sisk

A1 Grand Auto Body of Garden City Park, NY focuses on family oriented business onquality repairs. This emphasis on quality dates back to owner, Brian Hogan’s early interest in auto

Brian Hogan and his daughter, Ariel

body repair. When customers hand their keys over to Hogan, he wants them to know and be confident that they are putting their vehicle in the hands of a man who has been working on cars for most of his life and whose passion for automobile restoration guarantees their car will leave the shop looking much better than when they drop it off. When his staff is short-handed, Hogan is always eager and willing to pick up the tools to help restore his customers’ vehicles. His children are following in his footsteps as he did in his father’s. Hogan’s daughter, Ariel, works in the front office, and his son, Joseph, will begin working for his father later this year as part of a workstudy BOCES program. In fifth grade, Brian Hogan would take a bus to his father’s shop after school in order to sweep the floors and park cars. The ten-year-old found the job very exciting. A year later, he learned to sand body surfaces, and this was followed by his first real project. At the age of thirteen, Brian Hogan purchased his first car, a Cut-

lass Supreme, for $50. He spent a lot of time on that car, ultimately changing the color three times. Hogan recalls, “I made it my perfect first car. That was my project car.” Since then, Hogan has owned hundreds of cars. One of his best memories is helping his son restore a 1999 Ford Mustang with front-end damage to the point that it won Best in Show at a competition in Commack, NY. He also rebuilt a Chevy Corvette and an early-model Mustang for the Fraternal Order of Police as touring vehicles for their antidrug and anti-DWI campaigns, complete with custom paint jobs. From the beginning, Hogan’s pastime was destined to be his career. His grandfather, William Benson, had opened an auto body shop in Queens in 1939 where Brian’s father, Joseph Hogan, worked in the 1940s until he opened his own shop, Grand Body Auto, in 1953 on Jamaica Avenue. Hogan continued to work for his father after high school, finally opening his own shop in 1997 in Garden

A1 Grand’s tow trucks promote their services

City Park. He still gets a thrill from restoring a damaged vehicle, and he tries to uphold his father’s stated goal of restoring the vehicle to look like it is brand new. Like his grandfather, Hogan guarantees his work for the lifetime of the vehicle, stating “if you

fix the car right, there should be no problem in guaranteeing it. If you prep and prepare each part you put on properly, it’s going to last.”

In addition to his Garden City Park facility, Hogan also owns a 4000 square foot shop in Hempstead, but due to his customer database which includes around 60,000 customers, he is currently in the process of opening a third shop of 1600 square feet on Denton Avenue in New Hyde Park. Each location employs six auto body technicians. Hogan’s businesses utilize a Shark measuring system from Italy and all of the latest frame equipment. The shops are ASE and I-CAR certified. They do not participate in any direct repair programs currently, but Hogan has been approached by GEICO and is considering joining their DRP in his new shop. The technicians paint with RM Diamont. They report no difficulty with color matching as most of the vehicles they repair are newer models, specifically 2011 and 2012 vehicles. Hogan notes that the restoration business has taken a nosedive, but his shops specialize in heavy collision repairs, even receiving referral work from other shops. Due to the damage from August’s hailstorm, each of Hogan’s shops are currently averaging

repairs on 15–20 cars each week. One thing that A1 Grand boasts that no other shop can is Hogan’s Raising the Bar Code software which he created to help integrate several shop management systems. Using this system, Hogan is able to scan the vehicle registration, allowing pertinent information to populate within a few seconds, updating the database to provide an estimate for the customer. This allows A1 Grand Auto Body to provide an estimate to customers within five minutes of entering the shop. Hogan’s software is just one way in which he strives to keep in touch with customers and provide quality service. Though several companies have offered to buy the the software, Hogan refuses to sell his competitive advantage. Hogan shows his dedication by closely monitoring customer satisfaction with the paintless dent repairs many shops used to repair cars dented by the uncharacteristically severe hail storm in August 2011. Using this method, many dents reappear, but Hogan is busy contacting the customers in his database to inform them that their insurance companies will cover further costs to permanently repair this damage. This second round of dent repairs has kept his shops busy for the past several months. A1 Grand Auto Body is a shop that can guarantee quality because Brian Hogan stands behind it. Quality auto repairs are definitely a family commitment from the Hogans and A1 Grand Auto Body. A1 Grand Auto Body 105 Herricks Road New Hyde Park, NY 11040 (516) 294-4200

Florida’s Auto Angels Host Second Annual Vehicle Giveaway, Already Planning for 2013 On Tuesday, December 20th, the Auto Angels group, in association with The Mid Florida chapter of the Florida Auto Body Collision Alliance (FACA), presented 12 reconditioned vehicles to a dozen local families to make for very special Christmas for all involved.

Cheers and tears erupted throughout the ceremony as keys to newly reconditioned vehicles were presented and the pre-selected and notified men, women and children were led to their newly reconditioned vehicle by an Auto Angel. David Stewart, this year’s Auto

60 FEBRUARY 2012 AUTOBODY NEWS | www.autobodynews.com

Angels Chairman stated: “Getting twelve vehicles ready turned out to be a massive undertaking and couldn’t have been accomplished without the hard work and resources of many dedicated professionals; but the sacrifices paled in comparison to the feeling of accomplishment each of us

felt in seeing the faces of the recipients. It was amazing and the true spirit of Christmas giving was felt by all. A special thank you to the Auto Angels’ committee, whom without their hard work and dedication, this very worthwhile program couldn’t See Auto Angels, Page 62

Solera Announces Global Cooperation With Allianz Solera Holdings, Inc. a leading global provider of software and services to the automobile insurance claims processing industry, announced a new agreement making Solera the exclusive preferred global provider of automobile insurance claims processing software and services for Allianz SE, a leading global financial services provider. Solera’s mission with this agreement is to provide Allianz with essential software solutions, data services and support in 28 markets in which Allianz and Solera work together and to continue to focus on innovative products and services that help motor insurance policy holders receive a world class claims handling experience. “It is a real privilege to be awarded this exclusive agreement by Allianz. We are very excited about Allianz’s commitment to innovation and the importance it places on technology. As its exclusive preferred global provider of automotive claims software and services, we will work tirelessly to enhance its global value proposition. The Allianz commitment

to global growth and approach to standardize processes while giving its operating entities the freedom to build local businesses is one we admire and follow at Solera. This agreement is the single largest global agreement Solera has ever signed and will create substantial value for Allianz and Solera,” said Tony Aquila, founder, Chairman and CEO of Solera. “The agreement will continue to strengthen relationships among our respective local companies, resulting in an acceleration of benefits for all stakeholders.” Pursuant to the agreement, Solera will provide Allianz with essential software solutions, data services and support. At the same time, Solera will be able to work closely with Allianz at a global and local level both on product development and delivery at the local country level. There will also be enhanced cooperation agreements between the local Allianz companies and local Solera companies, including establishing a framework for new agreements in countries where the two local companies did not have an agreement previously.

Heavy Duty Aftermarket Associations Join Forces The Commercial Vehicle Solutions Network (CVSN) and the Heavy Duty Distribution Association (HDDA) announced a collaborative agreement designed to strengthen the independent heavy duty distributor aftermarket. The announcement was made at a press conference at the opening of Heavy Duty Aftermarket Week at The Mirage Hotel in Las Vegas, NV. Organization leaders explained that while both groups will remain separate and distinct entities, they will share a number of benefits and programs by virtue of HDDA’s segment affiliation with the Automotive Aftermarket Industry Association (AAIA). These include market research, public relations, communications, education, governance, publications and legislative and regulatory affairs. The collaboration will be a major step in expanding AAIA’s involvement in the commercial vehicle aftermarket through a closer and stronger partnership with CVSN, according to AAIA. “AAIA is extremely pleased to work more closely with CVSN, which will help expand our association’s footprint in the overall motor vehicle aftermarket,” said Kathleen Schmatz, AAIA president and CEO. “We have seen the

recent benefits of collaborating on legislative issues so this greater ‘coming together’ will be a real win-win.” “CVSN shares common goals with HDDA and AAIA for the success of our industry segment through education, growing strategic relationships with our supplier partners, and a strong activism to counter unfair competition and regulations that threaten us,” said Marc Karon, of CVSN and Total Truck Parts. “For the first time in 45 years, the independent heavy duty aftermarket will speak with one strong voice.” “CVSN has found that partnering with HDDA and AAIA has delivered positive results,” said Karon. “We have found true synergy in working together on projects like Heavy Duty Aftermarket Week and the CVSN Legislative Summit that have benefited our members and the industry.” “The greater collaboration between CVSN and HDDA will leverage the economies of scale from greater access to the valuable resources at AAIA,” said Dave Scheer, HDDA chair and president and CEO, Inland Truck Parts. “This new ‘coming together’ will strengthen all three associations.”

ANPAC Responds to Texas DOI

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Last month we reported that John Borek, General Manager of Autocraft Bodywerks in Austin, Texas, has filed a complaint with the Texas Department of Insurance against American National Property and Casualty Company (ANPAC) and a claims services company, American Claims Services, alleging that they “knowingly used a fraudulent document to justify their short-pay” of a claim. In filing his complaint with the Texas DOI Property and Casualty Complaint Department, Borek wrote: “We believe that based on this document, ANPAC/ American Claim Service is knowingly using a fraudulent document to justify their short pay to limit the price paid for repairs to [the] automobile. By not performing these necessary operations, it will result in an incomplete repair. I have spoken today with the field appraiser assigned to this file and he confirmed that he put the needed repair operations on the original estimate although a document generated from ANPAC/American Claim Service shows a zero by all these operations.

In a letter of response to the Texas Department of Insurance, ANPAC said an appraiser working on its behalf used “an outdated document” when denying a supplement for color sand and buff from Autocraft Bodywerks in Austin, Texas, and that the supplement has now been paid. John Borek of Autocraft filed a complaint with the regulator last month after receiving a document that the American Claims Services appraiser indicated was from Audatex showing that color sand and buff is included in refinish times. In his complaint, Borek called the document “fraudulent” given that Audatex, after searching its “Database Reference Manuals” back to 1993, concluded that the document is “most certainly not from ADP/Audatex.” After a call asking for an update or comment on the complaint, the Department of Insurance sent Borek a copy of ANPAC’s December 27 initial response letter, saying it will notify him “once we receive additional information that was requested.”

www.autobodynews.com | FEBRUARY 2012 AUTOBODY NEWS 61

Continued from Page 60

Auto Angels

have been possible.” The Auto Angel’s committee members include: ● David Stewart, Chairman, Stewart’s Auto Repair ● Ray Gunder, Past Chairman, Gunder’s Auto Center ● Barrett Smith, Auto Damage Experts, Inc. ● Cherri Surrency, Stewart’s Auto Repair

12 reconditioned vehicles lined the entrance to Victory Church in Lakeland, FL, awaiting their new, very appreciative owners

● Nick McLeisch, Maurice’s Body Shop/Towing ● Doc Jenkins, Jenkins Lincoln Mercury Collision Center ● Michael Meisner, Meisner’s Paint and Body ● Paul Hawk, Bernie’s Body Shop ● Mike Maskolunas, Bartow Ford For more information or on how you may participate in next year’s Auto Angels program, contact David Stewart at:

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The families chosen to receive these vehicles waited as each car was matched up to the family it would go home with

david@stewartautorepair.com or call (863) 965-2030.

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