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ASA’s “How’s Your Business?” Survey Results Online The Automotive Service Association’s (ASA) “How’s Your Business?” survey for 2016 is now available online. Designed to provide a snapshot of the automotive service and collision repair industry, the survey data captures how repair facilities fared last year in terms of sales, profits and other key elements of their daily business operations. All ASA-member shop owners in good standing were given the opportunity to complete the survey about their business operations in the first six months of 2016, and the information participants provided offers some surprising new developments in the industry since the survey was last taken in 2014. In addition, ASA updated the survey with questions in new categories that offer data covering hybrid vehicle service, emission-inspection programs and hours and types of training shops offer, including the amount of live vs. online training for owners, managers, technicians and adminis-
trative staff. The survey also offers statements from participants indicating that, in general, business in the automotive service sector was up in 2016, but hiring and retaining qualified techs remains a challenging issue. “Keeping up with the changes in the automotive service and collision repair industries is a full-time job these days,” said Tony Molla, ASA’s vice president. “The latest survey results only confirm that we are in a dynamic, technology-driven cycle that is changing the way business models are evolving, while reinforcing the need for qualified talent to continue building on the success our member shops report.” The report is broken down by the Mechanical sector and Collision sector. For additional information about ASA, including past media releases, go to www.ASAshop.org or visit ASA’s legislative website at www.TakingThe Hill.com.
According to a new AAA survey, two out of three U.S. drivers do not trust auto repair shops in general—citing overcharges, recommendations for unnecessary services and poor past experiences for their lack of confidence. However, the survey also reveals that the majority (64 percent) of U.S. drivers have singled out an auto repair shop
that they do trust, suggesting that consumers have prioritized finding a reliable mechanic in an industry with imperfect reputation. AAA urges all drivers to identify a reputable repair facility well before one is needed. “To minimize the stress associated with vehicle repair and maintenance, it
Most U.S. Drivers Leery of Auto Repair Shops
See Leery of Auto Repair, Page 12
VOL. 35 ISSUE 2 FEBRUARY 2017
Insurance Commissioner Jones Wins Legal Fight as Supreme Court Affirms Regulatory Authority by Ed Attanasio
Within the last six years, the insurance industry has continually questioned the authority of the California Depart-
Insurance Commissioner Dave Jones. (file photo)
ment of Insurance to regulate its industry on several fronts. But in a sweeping victory for consumers, Insurance Commissioner
Dave Jones announced that on Jan. 23 the California Supreme Court, in a 7-0 decision, affirmed his authority against a major insurance industry legal challenge. Rejecting the insurance industry’s arguments, the Supreme Court ruled the insurance commissioner has broad discretion to adopt rules and regulations as necessary to promote the public welfare. The insurance industry lost their challenge to Jones’ consumer protection regulations that require insurers replacement cost estimates actually reflect the complete cost of rebuilding a policyholder’s home after a fire, according to the California Department of Insurance’s press release. The lawsuit by two statewide industry trade associations challenged a 2011 regulation that made it illegal for See Commissioner Jones, Page 8
Eleventh Circuit Refuses to Reinstate Dismissed Auto Body Shop Antitrust Case on Procedural Grounds by James Burns and Baker Donelson
In early December, the Eleventh Circuit Court of Appeals issued a one sentence decision refusing to reinstate the plaintiff/appellants’ appeal in Parker Auto Body v. State Farm Automobile Insurance Company. The appeal had previously been dismissed by the Court based upon the appellants’ failure to file their case Appendix (the records from the district court that the appellate court reviews when considering an appeal) on a timely basis. As a result of the Court’s most recent ruling, barring a successful appeal to the Supreme Court—which would seem unlikely—the Eleventh Circuit’s refusal to reinstate the appeal brings an end to the case for the auto body shop plaintiffs in that case. Notably, however, the Parker case is only one of a series of class ac-
tion proceedings brought by auto body shops in several states against many of the largest auto insurers in the nation. In each case, the auto body shops contended that the insurers had conspired to limit the reimbursement rates provided by the insurers for insured repairs. The cases were ultimately all consolidated before Judge Gregory Presnell (Middle District of Florida) as the In re Auto Body Shop Antitrust Litigation, and Judge Presnell subsequently dismissed the antitrust claims in most of the cases, many on a case-by-case basis, for failure to state a claim. The plaintiffs in several of the dismissed cases filed appeals with the Eleventh Circuit, with the Parker case being the earliest appealed action. Because the dismissal in the Parker case was on procedural grounds, it does See 11th Circuit Refuses, Page 24
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