February 2022 West Edition by Autobody News

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Ford Best-Selling Automaker in Q4 2021 Ford reported Jan. 5 it sold 173,740 new vehicles in the U.S. in December—a 17.1% decrease compared to the same month a year ago, but enough to make it the best-selling automaker in the fourth quarter of 2021. “Ford finished the year strong, as the only U.S. automaker hitting the half million sales mark in the fourth quarter, making Ford America’s best-selling automaker,” said Andrew Frick, vice president, Ford Sales U.S. and Canada. “On the strong success of Mustang Mach-E, Ford jumped into second place in U.S. electric vehicle sales behind

just Tesla. Last year was a foundational year for Ford in the electrified vehicle segment and this year we continue to expand, adding the F-150 Lightning and E-Transit to our electric vehicle lineup. Looking to the new year, Ford had just over 70,000 new vehicle orders in December, which will provide continued momentum into 2022.” Ford brand posted best-ever sales for full electric vehicles, second only to Tesla for 2021. Mustang Mach-E sales totaled 27,140 in 2021. Ford heads into the new year See Best-Selling Automaker, Page 18

Toby Chess Shares Best Practice Documents for Collision Repairers by Toby Chess

This is the first installment of Toby Chess’s newsletter, in which he will share more than 100 Standard Operating Procedures (SOPs) for auto body shops, tools, trends in repair and anything he thinks could help shops improve. Chess suggests printing out each SOP and putting them in a book. He said Steve Morris had a great idea to print them out for each operation being performed on a repair and have the technician sign and date them, and place them into the customer’s file.

These SOPs will standardize your repairs, increase efficiency and quality, reduce comebacks, improve estimate quality and add to the bottom line. Here are the first five in the series: 1. Best Practices Before Accepting Used Painted Parts 2. Best Practices for Applying Weldon Aluminum Studs 3. Best Practices for Preparing Aluminum for Repair and/or Welding Part 2 See Toby Chess Shares, Page 22

Vol. 40 / Issue 2 / February 2022

General Motors Launches Online Parts Sales GM is launching a new online parts marketplace, making its catalog of 45,000 repair and maintenance parts more convenient for Chevrolet, GMC, Buick and Cadillac owners. The newly available parts catalog includes oil filters, engine and cabin air filters, batteries, brake pads, accessory belts, cooling hoses and windshield wiper blades, among other parts. Building on General Motors’ investment in digital commerce, GM’s online parts store combines the most convenient aspects of online shopping and physical retail into one experience. Customers can choose

home delivery or pick up their order at one of more than 800 participating dealers, where staff is available to answer questions. Parts purchased through GM’s online store are eligible for Chevrolet, Cadillac, Buick and GMC rewards programs, earning customers points that can be used to pay for parts, accessories or Certified Service at participating dealers. Buying through GM’s online store also provides customers with confidence they are purchasing original equipment ACDelco and GM Genuine Parts compatible with their vehicles. See Online Parts Sales, Page 19

National Survey of Auto Body Shops Finds Revenues Going Up but Concerns Rising as Well by John Yoswick

A national survey of collision repairers in the final two months of 2021 found well over half of shops (58%) expected their full-year sales to outpace 2020, with nearly one in five shops predicting they would end 2021 with a year over year increase of 20% or more. However, the survey, conducted by CRASH Network, found about a quarter of shops (23%) predicted 2021 sales will fall short of their 2020 numbers, with nearly one in 10 saying they expect to be down 20% or more compared to last year. “Parts availability and increase in total losses has pushed business down,” said one East Coast shop owner. “We have plenty of work to increase our numbers, but not enough employees to get it completed,” said a shop owner in Oklahoma. “We are running a 10-week backlog with over 70 cars in-process.” “Business is picking up, but now sales are limited by parts and

lack of technician staff,” a Southern California shop owner concurred. “I need two body techs and another prepper in the paint shop.” The survey found the upward trend in business optimism over the past year came to a halt in the fall. The majority (61%) said they are “not very” or “not at all concerned” about their business still operating a year from now, and that was up from 43% a year earlier, but down slightly from 64% in mid-2021. Three in 10 of the shops acknowledged being “somewhat” concerned, up from 24% in two surveys earlier in 2021. About 10% described themselves as “very” or “extremely” concerned about their business viability, down from 26% a year ago, but unchanged from last spring. “Inflation is going to take a huge bite out of profits,” a Massachusetts shop owner predicted, saying he was “somewhat” concerned about the shop’s future. Still, most shops expect to make it through 2022. See National Survey, Page 25

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REGIONAL

Albert Kemperle, Inc. Joins Wesco Group �� 44

15 Suspects Arrested in Bay Area Catalytic

ASE Celebrates 50th Anniversary �� 51

4 Members Appointed to CAWA’s Manufacturers Advisory Council �� 8 Bistagne Bros. Body Shop Celebrates 75 Years with a Big Party, LA Style �� 31 California Man Arraigned on 14 Counts of

Author/Teacher Trains and Mentors the Insurance Adjusters of the Future �� 32 Auto Body Shop Owner Steps into World of Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2022 Adamantine Media LLC.

Audi Wholesale Parts Dealers �� 37

Kia Downtown Los Angeles �� 34

AutoNation Honda Costa Mesa �� 12

Kia Motors Wholesale Parts Dealers �� 38-39

AutoNation Infiniti Tustin �� 36

Kia of Carson �� 40

Axalta Coating Systems �� 5

Kia of Irvine �� 11

BMW Wholesale Parts Dealers �� 45

Larry H. Miller Chrysler-Jeep-Dodge-Ram �� 22

Car-O-Liner �� 7

LKQ Corporation �� 13

Car Pros Kia �� 14

Mazda Wholesale Parts Dealers �� 49

Car Pros Kia Renton �� 24

Mercedes-Benz Wholesale Parts Dealers �� 49

Certified Automotive Parts Association �� 10

Michael Hohl Motor Company �� 25

Classifieds �� 50

MINI Wholesale Parts Dealers �� 45

Colortone Automotive Paints �� 20

MOPAR Wholesale Parts Dealers �� 35

Courtesy Chevrolet San Diego �� 21

Niello Audi �� 31

DCH Chrysler-Dodge-Jeep-Ram-Fiat �� 18

Nissan/Infiniti Wholesale Parts Dealers �� 43

National Survey of Auto Body Shops Finds

Equalizer Auto Glass Tools �� 25

Porsche Wholesale Parts Dealers �� 48

Revenues Going Up but Concerns Rising

Fairview Ford-Lincoln-Mercury �� 8

Reno Buick-GMC �� 22

FH Dailey Chevrolet �� 28

Sandberg Volvo Cars �� 18

Ford Wholesale Parts Dealers �� 33

Santa Monica Audi �� 16

Future Nissan of Roseville �� 31

Spanesi Americas �� 15

Consulting �� 36 Auto Insurers Embrace AI at Scale in 2021 �� 4 BMW’s New Car Changes Color ‘With the

Insurance Fraud in ‘Paper Collision’ Scheme � 16

Touch of a Button’ �� 51

Classic Collision Acquires 6 Centers �� 8

Boyd Group Completes CEO Plan �� 51

Classic Collision Acquires Medford, OR,

Caliber Named to Best In Business List �� 16

Auto Body Shop �� 6 EV Range to Install 26 High-Powered EV Charging Stations in CA and NV in 2022 �� 16 First 15 Tesla Semi Units to Be Delivered to PepsiCo by End of January: Report �� 11 First Tesla Supercharger Opens in Hawaii, Last of the 50 States �� 12 Ford Launches Zero-Carbon EV Home Charging Initiative California �� 14 Industrial Finishes & Systems Adds Location � 10 Mike’s Auto Body Gives Away 4 More Cars to Hit 100 in 21 Years �� 24 NABC Recycled Rides® Program, Farmers®

Collision Engineering Program Gets Grant �� 45 Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 �� 48 DCR Systems Sponsors Matrix Trade Institute � 25 Energy Commodity Prices Increased by 59% in 2021, EIA Reports �� 46 Ford Develops Job Aids for ADAS with Glass and Without �� 20 Fortner to Retire as LKQ Corp. VP �� 19 G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving �� 42 General Motors Launches Online Parts Sales �� 1

to the YMCA of San Diego �� 10

Get Used to Chip Shortages: They are Not

Electric Vehicle Market Revs Up �� 14 Southern California Maaco Franchisee Wins Regional Award �� 6 Tesla Giga Nevada to Start Using Redwood’s Recycled Battery Components �� 8 The Boring Company’s LVCC Loop Ramps to 70 Cars as CES 2022 Kicks Off �� 10 COLUMNISTS Anderson - Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? �� 28

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Ford Best-Selling Automaker in Q4 2021 �� 1

Insurance, Fix Auto Poway Donate Vehicle Panasonic to Add Campus in Reno, NV, as

INDEX OF ADVERTISERS

Converter Theft Ring �� 12

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AUTOBODY

Going Away Anytime Soon �� 18 GM Aligns with California on Emission Rules, State Looks to Buy GM EVs �� 18 GM Begins Deliveries of GMC HUMMER and BrightDrop EVs �� 44 Island Concepts Opens Training Facility in Hawaii to Support Collision Repair Industry �� 34

as Well �� 1 Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company �� 50 Root Insurance Partners with Tractable �� 11

Yoswick - Do Automakers, Insurers See

SEMA Launches Online Library �� 14

Auto Body Shops Meeting Both DRP

SEMA President and CEO to Retire �� 28

Galpin Motors �� 23

Subaru Wholesale Parts Dealers �� 41

and OEM Certification Requirements? �� 40

Sony Getting Serious About EVs, Debuts

Garden Grove Kia �� 11

Symach �� 6

Glenn E. Thomas Dodge-Chrysler-Jeep �� 9

The Bay Area Automotive Group �� 29

GM Wholesale Parts Dealers �� 47

Valspar Refinish �� 2

Honda-Acura Wholesale Parts Dealers ��26-27

Volkswagen Pasadena �� 32

Used Electric Car Prices Soared in 2021 �� 36

Hyundai Wholesale Parts Dealers �� 44

Volkswagen Wholesale Parts Dealers �� 42

Volkswagen will Launch EV Bus on ID. Platform

Industrial Finishes and Systems �� 52

Volvo Wholesale Parts Dealers �� 44

Kearny Mesa Subaru-Hyundai �� 19

Wrenchers �� 17

Yoswick - Fully Automated AI Collision Repair Estimating ‘Not There Yet’ �� 30

SUV Concept at CES �� 20 Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras �� 46

NATIONAL ‘Cheap’ Volkswagen ID.4 Coming ‘in the $35,000 Range’ �� 33 2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge �� 4 Advantage Parts Solutions Appoints Executive � 46

Toby Chess Shares Best Practice Documents for Collision Repairers �� 1

March 9 �� 51

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 3

2 More Automakers Cross Finish Line in Race to Fulfill Automatic Braking Pledge Twelve automakers are ahead of schedule in meeting a voluntary pledge to equip nearly all the light vehicles they produce for the U.S. market with automatic emergency braking (AEB). Ford/Lincoln and Honda/Acura installed AEB on more than 95% of the vehicles they produced between Sept. 1, 2020, and Aug. 31, 2021, joining 10 other automakers that fulfilled the voluntary commitment in previous years. The others to cross the finish line early are Audi, BMW, Hyundai/Genesis, Mazda, Mercedes-Benz, Subaru, Tesla, Toyota/Lexus, Volkswagen and Volvo. Two additional automakers exceeded the 90% threshold. However, five of the 20 participating automakers equipped fewer than three-quarters of their vehicles with AEB. The 20 manufacturers submit progress reports annually until they meet the target as part of the commitment brokered by the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration (NHTSA). They pledged to equip at least 95% of their light-duty cars and trucks with the crash avoidance technology by the production year beginning Sept. 1, 2022. Light-duty vehicles are those with a gross vehicle weight rating of 8,500 pounds or less.

“The final sprint these lagging automakers are making shows that a rapid rollout of advanced safety features is possible,” said IIHS President David Harkey. “With the Ford and Honda brands hitting the target, this essential safety feature is now on a huge number of affordable, top-selling vehicles.” Though they fell short of the target, Mitsubishi and Nissan/Infiniti installed AEB on nine out of 10 vehicles they produced last year. Kia just missed that mark, equipping 89% of its vehicles with the technology. Maserati also made big strides, boosting its percentage of AEB-equipped vehicles to 72% from 48% a year earlier. The voluntary commitment doesn’t specify phase-in milestones. However, General Motors, Jaguar Land Rover, Porsche and Stellantis—the company created by the recent merger of Fiat Chrysler and Peugeot—will need big gains to meet the 2022-23 target for light-duty vehicles. In the past year, they equipped fewer than two-thirds of the units they produced with AEB systems that meet the performance requirements of the voluntary commitment. Along with Mitsubishi, two of those companies, Jaguar Land Rover and Stellantis, are among the three that made the most progress in 2021. Mitsubishi raised the portion

of its vehicles equipped with AEB to 92% from just 39% last year. Jaguar Land Rover boosted its tally to 60% from zero. Stellantis raised its total to 43% from 14% in 2020. “It is good news for consumers that city-speed AEB now comes standard across most models, but Stellantis, GM and the other lagging companies really need to pick up the pace,” said David Friedman, vice president of advocacy for Consumer Reports. “The next step should be for NHTSA to set standards that ensure all automakers’ AEB systems work effectively at highway speeds and stop for pedestrians, cyclists and other vulnerable road users both during the day and at night.” Separate from the manufacturers’ commitment, Consumer Reports also tracks the proportion of models on which AEB is standard equipment across all trim levels, as opposed to their overall production volume. Its latest information shows several automakers are making cityspeed AEB standard equipment on 100% of their models, guaranteeing the technology will be included on all new vehicles. To fulfill their present commitment, manufacturers must attest the AEB system on their vehicles meets certain performance standards. The forward collision warning feature must meet a subset of NHTSA’s current 5-Star Safety Ratings pro-

gram requirements on the timing of driver alerts. The AEB must earn at least an advanced rating in the IIHS vehicle-to-vehicle front crash prevention evaluation. To earn that rating, the system must slow the vehicle by at least 10 mph in either the 12 or 25 mph test or 5 mph in both of the tests. Many manufacturers’ standard systems earn a superior rating in the IIHS test. A significant portion of new vehicles can also detect and avoid pedestrians—a requirement for the IIHS TOP SAFETY PICK and TOP SAFETY PICK+ awards. Along with light-duty vehicles, automakers also committed to installing AEB on vehicles with a gross vehicle weight rating of 8,501 t0 10,000 pounds by September 2025. Six automakers reported producing vehicles in that range for the U.S. market in 2021. Among them, Ford equipped three-quarters of its vehicles with AEB, Stellantis 13% and Nissan/Infiniti 12%. IIHS expects the voluntary commitment to prevent 42,000 crashes and 20,000 injuries by 2025. The estimate is based on IIHS research that found front crash prevention systems with both forward collision warning and automatic emergency braking cut rear-end crashes by half. Source: IIHS

Auto Insurers Embrace AI at Scale in 2021 CCC Intelligent Solutions, the SaaS platform powering the P&C insurance economy, on Jan. 7 provided an update to its 2020 insurer AI adoption report, which shows significant growth in AI adoption in auto claims across key metrics. The company reports a 50% year-over-year increase in the application of advanced AI for claims processing. The company also reports more than 9 million unique claims have been processed using a CCC deep learning AI solution, growing more than 80% in 2021, and the number of claims using four or more of its AI applications grew 6X year-overyear.

CCC also announced insurer adoption of its industry-first AI-powered touchless estimating solution, CCC® Estimate–STP, has doubled to eight national insurers since launching the solution in October. Today, more than 95 U.S. auto insurers are actively using CCC’s AI-powered capabilities. “The data paints a clear picture of an industry embracing innovation and insurers activating AI at scale,” said Shivani Govil, chief product officer, CCC. “As our industry becomes increasingly complex and consumer demand for personalized experiences grows, AI has become essential. Discrete applications of AI are

4 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

giving way to broader use cases and more intelligent automation. The sharp increases in the use of multiple AI applications and the rapid adoption towards fully touchless estimating are evidence of the industry’s digital transformation, which CCC is proud to lead, supporting our customer’s ability to redefine the insurance experience.” The sharp growth in AI-powered claims is driven by an increase in the number of insurers using AI solutions and the expansion of applications for AI across their business, including estimating, audit, total loss handling, casualty and fraud detection. The number of insurers using at least one of CCC’s

AI-powered solutions grew nearly 30% year-over-year. A leader in AI-informed solutions, CCC’s application of AI expands beyond claims decision making. CCC’s solutions leverage AI to improve customer interactions, streamline operations and digitize assessments. Whether applying language recognition to better engage consumers, computer vision to assess medical bills, or deep learning to accelerate decisions across the claims lifecycle, CCC continues to apply AI to improve policyholder interactions and operations across the network. Source: CCC Intelligent Solutions

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Classic Collision Acquires Medford, OR, Auto Body Shop by Kevin Opsahl, Mail Tribune

For 17 years, David Husel gave “blood, sweat and tears” to his family business, New Stage Collision in Medford, OR. But earlier this year, he realized “life is short” and began to think about other things he wants to do. “I’ve really given this company my everything,” Husel said. On Jan. 3, it was announced Atlanta-based Classic Collision had acquired New Stage Collision. The company, founded in 1983, operates 173 repair centers up and down the West Coast and the East Coast—and now the facility at 573 Rossanley Drive will be plus-one. Toan Nguyen, CEO of Classic Collision, said in a prepared statement the Medford-based business, owned by the Husels for 49 years, having “nationally recognized certifications” and the “highest quality repairs” made them “our No. 1 choice to align with.” Classic Collision’s Oregon locations include Central Point, Eugene and the greater Portland area. Asked Jan. 3 about why he

chose to sell his company, Husel said timing was a factor. “The time to sell a business is when it’s operating at its absolute best,” Husel said. “I feel like that time is now.”

Atlanta-based Classic Collision has acquired New Stage Collision. Credit: Jamie Lusch/ Mail Tribune

When Classic Collision made him an offer, “it was an opportunity I just couldn’t pass up,” Husel said, noting he spent the better part of 2021 making it happen. New Stage Collision has 25 employees and, according to Husel, Classic Collision has offered all of them a job. “I’m confident they will stay on,” Husel said.

Classic Collision’s approach when it comes to human resources is partly what attracted him to making a deal with the company. “Out of all the national brands that made me offers, I felt Classic would treat my employees the best,” he said. “I’m incredibly humbled and blessed to have worked with such a great staff for so long.” Husel’s father, Bob, started New Stage Collision out of his garage in 1973 several years before David was born. And in 2003, when he was a young man, he joined the family business. Husel started off working in the parts department but soon took on a very ambitious task: constructing the building on Rossanley Drive. But once he acquired the business from his father, Husel became ambitious as a manager. “My goal was to take it from a good business to a great company,” he said. “I feel like I’ve succeeded in doing that, and I really don’t feel like there’s that much more for me to give.” Those accomplishments include aligning New Stage Collision with “top brands” like Mercedes-Benz.

“It’s important for body shops now to go out and get certification from manufacturers because you need to be able to provide a certified repair,” Husel said. “I saw the writing on the wall for that back in 2007, so I went after Mercedes very hard and was able to get certified.” When that happened, there were just over 200 certified Mercedes-Benz shops in the U.S., according to Husel. Now, New Stage Collision holds the distinction of being the only certified Mercedes-Benz and Sprinter repair facility in Southern Oregon. “That’s something I’m very proud of,” he said. Even though he is not a car collision repairman, Husel still understands what it means to take a car that’s been beat up and return it to “pre-accident condition.” “It’s always been extremely rewarding for me to repair vehicles in the valley for customers knowing we’re doing the very best repair in town,” Husel said. “We’ve always gone the extra mile and I think that’s the only reason we’ve been able to stay so busy for half a century.”

Southern California Maaco Franchisee Wins Regional Award Corporate downsizing in 2009 led Ron Hashemi to search for a new career, and his love of cars brought him to Maaco, America’s body shop and the leader in the $38 billion automotive paint and collision industry. Hashemi was recently recognized by Maaco for operational excellence and performance for 2021. “I had no experience repairing and painting vehicles,” said Hashemi, owner of Maaco San Diego, Maaco Oceanside, Maaco National City and Maaco San Marcos. “But I knew how to work with customers, and I knew that if I focused on satisfying customers with quality work and quick turnaround, Maaco could teach me the rest.” Hashemi purchased his first franchise in Oceanside, CA, in 2010. The next year, he received the Maaco Rookie of the Year award. He then purchased his second franchise in 2013 in National City, then a third in San Diego in 2014. He now has a fourth location in San Marcos, which opened in 2016. “Maaco has an outstanding

business model with a long history of successful operations,” said Hashemi. “I used their expertise and followed the playbook and the entire corporate team was very helpful along the way. They have the training, brand recognition and advertising support to help their franchisees be successful.” Hashemi has received several awards throughout his 11 years as a franchisee, most recently a 2021 regional Maaco Cup winner, recognizing him for outstanding performance in the southwestern U.S. Hashemi attributed his success to focusing both on customer and employee satisfaction. “We go out of our way to ensure that every customer is happy, and I make sure that our employees are happy as well,” added Hashemi. “I treat all my employees like family. When your team is happy, they work hard to keep customers happy. I find that to be a winning formula.” Visit Maaco.com for more information. Source: Maaco

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Classic Collision Acquires 6 Centers Classic Collision, LLC, a leading national multi-site collision repair operator based in Atlanta, announced a new closing Dec. 20—the acquisition of six Fix Auto Centers in Anchorage, Fairbanks, Juneau and Palmer, AK. Fix Auto has maintained a warm, friendly and inviting atmosphere for the great cities in Alaska since 2014. These shops are part of the fabric in their local market. They stay connected to and remain active in their communities. “We are grateful to have delivered world class collision repair experience in these towns and we are excited to carry this on with Classic,” said Kekoa Iaea, COO of Fix Auto Alaska. “We see this as an important time for our company in the Alaskan market,” said Toan Nguyen, CEO of Classic Collision. “This move will allow us to not only serve more families in Anchorage, but in other areas of Alaska. Fix Auto has a vital reputation, and we are pleased to welcome their team to the Classic Collision family.” Source: Classic Collision

4 Members Appointed to CAWA’s Manufacturers Advisory Council Scott Austin of the NA Williams Company, Autumn Lamb of GSP North America, Ken Dowler of LIQUI MOLY USA and Rod Umphreys of Total Specialties, USA, have been appointed to CAWA’s Manufacturers Advisory Council. Austin began his career in 1978 working at a Western Auto Store in a small town in Oregon. Since then, he has worked in several facets of the automotive aftermarket, from production engine rebuilding to buyer, operations manager to manufacturer’s representative. His 40-plus years in the industry gives him the experience needed in today’s competitive market. He has earned the respect of his customers, manufacturers, competitors and peers. Austin joined NA Williams in 2016 and handles the traditional market in the west for the company. Lamb of Corona, CA, will attend her first meeting at CAWA’s Leadership Days, Feb. 10-11 at the Silverado Resort & Spa in Napa, CA. Dowler graduated from the University of California at Santa

Tesla Giga Nevada to Start Using Redwood’s Recycled Battery Components by Maria Merano, Teslarati

On Jan. 4, Panasonic announced Redwood Materials would start supplying copper foil to its battery production facility in Giga Nevada. The Japanese tech giant announced the news during the 2022 CES tech trade show. “Our work together to establish a domestic circular supply chain for batteries is an important step in realizing the full opportunity that EVs have to shape a much more sustainable world,” said Allan Swan, president of Panasonic Energy of North America. Redwood Materials, which former Tesla CTO JB Straubel founded, will be supplying Panasonic with copper foil made from recycled materials. The company recycles scripts from discarded electronics like cell phone batteries, laptops, power tools and even scooters and electric bicycles. Redwood extracts materials like cobalt, nickel and lithium, which are usually mined, from discarded electronics. As for battery cell production,

copper foil is an essential component to the anode or negative side of batteries. The anode is typically made of copper foil and coated with graphite. In September, Redwood Materials announced plans to produce sustainable battery materials, specifically anode copper foil and cathode active materials. The cathode would be the positive side of batteries. According to Tech Crunch, Redwood revealed it had recently purchased 100 acres of land near Gigafactory Nevada. Straubel’s company plans to build a $2 billion factory. Redwood aims to produce 100GWh per year of cathode active materials and anode foils for 1 million electric vehicles by 2025. The deal with Panasonic suggests Tesla cars will be among the first to use Redwood’s cathode and anode materials, along with Ford, which forged a partnership with Straubel’s company on Sept. 22. Redwood will start producing copper foil by the first half of the year and will begin supplying Panasonic with the anode material by the end of 2022.

8 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

Barbara and has been in the automotive industry for 15 years, starting with Shell Oil selling branded lubricants such has Pennzoil, Quaker State and Rotella in the Southern California market.

He spent several years at a multi-branded bulk distributor in Southern California as a territory sales manager, and five years at Idemitsu Lubricants America as the deputy division manager of its aftermarket division. His focus there was on key national and regional distributor partners throughout

North America and is where he first got involved with CAWA. Dowler is now the key account manager at LIQUI MOLY USA focusing on growing its aftermarket business in bulk oil distributors and key warehouse distributors nationally. Umphreys started his lubricants career in 2001 working at McCollister and Company, a small independent lubricants manufacturer in Council Bluffs, IA. He worked in multiple facets of the lubricants business during his time there, including sales, technical and national accounts. In 2011, he joined Total Specialties as a territory manager in the upper Midwest and has since held various roles, including industry lubricants manager and his current role as the west region sales director. In his 20 years in the business working for the global company Total, he has developed a unique perspective on business, not only on the West Coast but all over the continental U.S. Source: CAWA

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Industrial Finishes & Systems Adds Location Industrial Finishes & Systems Inc., a leading distributor of automotive paint, equipment and supplies, is pleased to announce the acquisition of S&H Car Color, Inc., in Seaside, CA. “Seaside is a strategic market from both a geographic and business standpoint,” said Industrial Finishes & Systems General Manager Peter Deluca. “Seaside’s position contributes to our business growth in Northern California, and operationally allows us to provide exceptional service to customers in the area. “S&H Car Color is an established coastal location, and we look forward to serving their loyal customers and exploring future opportunities,” Deluca added. “We’re committed to the location’s very bright future.” The addition of the Seaside location brings Industrial Finishes’ total distribution centers to 33 nationwide. Industrial Finishes’ Seaside location is at 1583 Del Monte Blvd., Seaside CA 93955. It can be reached at 831-393-2074. Source: Industrial Finishes & Systems Inc.

The Boring Company’s LVCC Loop Ramps to 70 Cars as CES 2022 Kicks Off showcase some of their innovations in person at the Las Vegas ConvenThe Boring Company’s (TBC) Las tion Center. Vegas Convention Center (LVCC) As a popular tech event, CES Loop in Sin City recently increased 2022 undoubtedly drew many people its Tesla fleet to 70 vehicles as part of to the Las Vegas Convention Center, its efforts to cater to the influx of visi- meaning the LVCC Loop would be experiencing a lot of foot traffic. tors attending CES 2022. According to Mick Akers from the Review Journal, TBC increased its Tesla fleet to 70 cars, possibly to keep foot traffic between the convention center’s three halls flowing in preparation for the influx of CES 2022 visitors. In November, public documents revealed the Mick Akers posted this photo to Twitter with a caption LVCC Loop had not hit that said The Boring Company’s Las Vegas Convention some of its transportation Center Loop was handling the first day of CES 2022 targets yet. Documents with ease. Credit: Mick Akers/Twitter showed the manually-driv CES 2022 is one of the world’s en Teslas took nearly four minutes most influential tech events. This to transport passengers through the underground tunnels instead of the year, it kicked off Jan. 5. The event features prominent target of two minutes. exhibitors like General Motors, LG, However, the LVCC Loop has Panasonic and many more well- met its capacity goals. For instance, known companies. More than 2,200 TBC’s Las Vegas tunnel hit its capaciexhibitors confirmed they would ty target during a demonstration event by Maria Merano, Teslarati

in May, when it transported 4,400 conference attendees per hour. The CES 2022 tech event may be another opportunity for the LVCC Loop to achieve new targets and hit some of the goals it barely missed in 2021. Akers said 70 Tesla vehicles were the maximum for the LVCC Loop, meaning it is running at full capacity during CES 2022. Even so, it may take time to ramp operations fully. The Las Vegas Convention and Visitors Authority (LVCVA) board agreed to pay TBC up to $6.5 million for the operations and management of the LVCC Loop beginning Feb. 1, 2021, through June 30, 2022. The LVCC Loop does not charge fares as per the agreement with the board. The LVCVA generates revenue from the LVCC Loop through advertising, sponsorships and facility rentals. The board’s agreement with TBC also provides for an additional fee in the form of a base operations and maintenance fee for full operation of the system, which scaled for show size, with a maximum daily fee of $30,000 for the largest sized facility shows.

NABC Recycled Rides® Program, Farmers® Insurance, Fix Auto Poway Donate Vehicle to the YMCA of San Diego On Dec. 3, the Mission Valley YMCA, along with other YMCA branches throughout San Diego, received a special holiday gift—the presentation of a vehicle to provide transportation for the maintenance team that keeps their facilities running. The presentation was thanks to the National Auto Body Council (NABC) Recycled Rides® program, car donor Farmers® Insurance, local Farmers Insurance and Financial Services agent Daiju Yoshino and vehicle repairer Fix Auto Poway. The presentation was held at the Mission Valley YMCA, located at 5505 Friars Road, San Diego, CA, 92110. Yoshino, a board member of the Mission Valley YMCA, learned the maintenance team was stretched thin with limited resources to handle the repairs and upkeep of the facilities that serve so many families. Getting the team to all the facilities without transportation proved a major challenge. Yoshino spearheaded the ef-

fort to find a vehicle to help meet the YMCA’s needs and identify a local collision repair professional to refurbish it. The NABC Recycled Rides event included vehicle donor Farmers Insurance, collision repair partner Fix Auto Poway and board and staff members of the Mission Valley YMCA. A 2015 Dodge Grand Caravan was presented to YMCA board and staff members. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. Additional partners in the presentation include 1-800 Charity Cars. Source: NABC

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First 15 Tesla Semi Units to Be Delivered to PepsiCo by End of January: Report by Simon Alvarez, Teslarati In November, PepsiCo CEO Ramon Laguarta surprised the electric vehicle community when he said during an appearance on CNBC his company was looking forward to the first deliveries of the Tesla Semi in Q4 2021.

from the electric vehicle community have suggested PepsiCo may end up taking delivery of its first 15 Tesla Semis as early as this month. To prepare for the Tesla Semis’ arrival, the EV maker has reportedly started installing several Megachargers at PepsiCo’s Modesto, CA, facility.

The statement was shocking since even Tesla CEO Elon Musk has been very conservative about the release date of the Class 8 all-electric truck. Sightings of what appeared to be freshly built Tesla Semis were reported near Gigafactory Nevada in late 2021, though by the end of the year, it seemed PepsiCo would have to wait a bit longer before it could take delivery of its first electric trucks. This wait might not be very long, however, as recent reports

Images shared with EV publication Drive Tesla indicated the Semi’s Megachargers are connected to a Megapack battery. The power output of the Megachargers was reported to be a whopping 1.5 MW as well, which should allow the Tesla Semi to recharge its massive battery pack fairly quickly. Previous estimates suggested the Semi’s Megachargers would have peak rates of about 1 MW. While Tesla has been mostly silent about the progress of the Semi,

the development of the long-hauler has been going full throttle behind the scenes. New Semi prototypes showing evident updates from the Alpha units produced years ago were spotted across the country over the year. Tesla also set up a facility near Giga Nevada to produce the vehicle in limited quantities. Considering clients such as PepsiCo are only expecting a few Semis for now, Tesla’s Nevada site would likely be up for the job. Perhaps the most exciting factor about the Semi’s reported deliveries in January, however, would be the vehicle’s batteries. Expectations are high the Semi would be using Tesla’s new 4680 battery cells, unveiled on Battery Day. Tesla has been showing some encouraging signs with its 4680 ramp, with a Model Y test body in Giga Texas being spotted recently with what appeared to be a space for a structural battery pack. If Tesla could launch the Semi in limited numbers with 4680 cells this year, it could be yet another milestone for the company and its battery production aspirations.

Root Insurance Partners with Tractable Root Insurance, a leading U.S. insurtech, will use artificial intelligence (AI) to streamline and accelerate its claims operations using Tractable’s suite of AI solutions. Root will launch the partnership with the AI Subro solution from Tractable to enable Root to assess and respond to subrogation demands more accurately and efficiently. After testing market solutions head-to-head, Root chose Tractable, which specializes in AI for accident and disaster recovery, as its strategic partner to fulfill its ambitious AI strategy across its claims operations. By integrating Tractable’s AI, Root will accelerate its end-to-end claims process, beginning with subrogation. The collaboration joins together two of the most innovative players in the insurance industry. Source: Root Insurance

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15 Suspects Arrested in Bay Area Catalytic Converter Theft Ring On Nov. 16th, the San José Police Department concluded Operation Cat Scratch Thiever, a six-month investigation into catalytic converter thefts in the City of San José. The investigation was the result of a marked increase in catalytic converter thefts in 2020 and 2021. The operation targeted prolific catalytic converter thieves and the illegal underground market that has fueled the crime trend. Fifteen suspects, all of San José, have been arrested: Joe Chen, 81 William Collier, 54 Noe Antonio De La O Ramirez, 39 Robert Frank, 52 David Leaf, 29 Robert Lee, 29 Jorge Omar Flores-Meza, 25 Noah Muchera, 58 Waiyaki Muchera, 22 Casandra Ochoa, 37 Mario Zarate Sanchez, 49 Godofredo Lopez Serrano, 47 Jeffrey Smith, 36 Alton Walker, 49 Lacey Westgate, 36 The suspects have been charged with crimes ranging from grand theft

to receiving stolen property and from assault with a deadly weapon to possession of illegal weapons. Multiple search warrants were served over a period of several weeks and detectives recovered illegal weapons, more than $50,000 in cash and more than 1,000 catalytic converters believed to have been stolen from vehicles throughout the Bay Area. In addition, police shut down three San José businesses suspected of knowingly purchasing stolen catalytic converters from street criminals. Those businesses are being referred to the San José City Attorney’s Office. Since the start of the pandemic, the City of San José has experienced an increase in catalytic converter thefts. Many of these thefts have become increasingly brazen and suspects are often armed with guns. Suspects have shot victims and witnesses who have interrupted the thefts and in San José a catalytic converter theft has been linked to at least one homicide. The operation began approximately six months ago and involved

First Tesla Supercharger Opens in Hawaii, Last of the 50 States by Andrei Nedelea, Inside EVs

The Tesla Supercharger network already covers most of the U.S., making journeys from and to pretty much any major destination not only possible, but easy. There is even one in Alaska, located in the small town of Soldotna, population less than 20,000, but Tesla had missed one state—Hawaii. The Aloha State is the last of the 50 states to get a Supercharger, but now it has one, a six-stall station located in the Aiea part of Honolulu. To be precise, this is the first public Supercharger in Hawaii, because one was previously installed on Lanai island, most of which is owned by Tesla board member Larry Ellison, so it was more of a private station. Tesla has committed to continuing its Supercharger network expansion, which it says has reached around 3,500 stations with more than 30,000 charger stalls. The manufacturer is currently focusing on expanding the network in Canada, Mexico, Central and Eastern Europe, as well

as parts of Asia and the Middle East. The manufacturer also recently started opening up its Superchargers to be used by other EVs. It currently has pilot programs running and they have so far proven successful, so over time, the company may want to expand this program to more stations. Right now this is only happening in Europe, but Tesla will want to get a piece of the new $7.5 billion program started by the federal government with the aim of expanding and improving EV charging infrastructure in the U.S. In order to have access to this program, Tesla will have to build public charging stations, not ones that only its vehicles can use. This will certainly mean in the future, charging a Tesla via Superchargers may not be as easy, and you may have to wait for a non-Tesla to finish charging before a stall becomes available. However, in opening its chargers to other vehicles, Tesla will continue to have access to funds destined for charging network infrastructure expansions, and this may also be true outside the U.S.

12 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

three focus areas: Intelligence and Data, Education, and Enforcement. Detectives collaborated with outside agencies and the SJPD Crime Analysis Unit to develop intelligence and analyze crime data in order to identify prolific thieves and illegal purchasers of the stolen property.

Detectives provided training to patrol officers and to the Santa Clara County District Attorney’s Office regarding catalytic converter theft methods and trends. This education aided in the identification of additional suspects and in the successful prosecution of arrested individuals. The enforcement arm of the op-

eration involved thousands of hours of surveillance and follow-up investigations. The Santa Clara County District Attorney’s Office was an instrumental partner in this project and the objective was to charge suspects at all levels of the enterprise and to disrupt the crime trend. The operation culminated in multiple arrests and search warrants. This operation would not have been a success without the collaboration of many units within the San José Police Department, including patrol, the Financial Crimes Unit, the Street Crimes Unit, the Covert Response Unit, the Crime Analysis Unit and the Burglary Prevention Unit. SJPD would also like to acknowledge the invaluable assistance provided by the Santa Clara County District Attorney’s Office, the Sacramento County Sheriff’s Office, The San Mateo County Sheriff’s Office, the Bureau of Automotive Repair and Copart Inc. Source: San José Police Department

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SPONSORED EDITORIAL Sponsored by: The CAR Coalition

It’s Time to Protect Your Right to Repair America’s Vehicles Car ownership has long been a symbol of independence and personal freedom in American society. Thanks to the work of the independent auto care industry, which employs 4.7 million people and includes independent manufacturers, distributors, repair shops, and parts stores, car owners can feel confident making repairs and investing in the longevity of their car. However, due to embargoed technology solutions and anti-competitive behaviors within the marketplace, local auto repair shops and some dealerships are feeling the pressure of high costs and unnecessary burdens as a result of car repair restrictions.

affordable automobile collision repair parts,” says Justin Rzepka, Executive Director of the CAR Coalition. “It’s time for Congress to get serious about solutions, including the SMART Act, to ensure businesses can offer the auto repairs their customers want.”

Original equipment manufacturers (OEMs) are increasingly using a range of tactics, like patent thickets, controlling telematics data, position statements, repair procedures, and trademarks, to force repair shops and dealerships to use OEM parts and to steer more business to their preferred repair networks. These practices not only severely limit consumer choice, but cause economic ripple effects for businesses nationwide.

The good news is that an overwhelming majority (78%) of vehicle-owning voters support federal right to repair legislation that protects against design patent abuse in the automotive industry, such as the SMART Act. And only 25% of voters believe that design patents should be used for common car items, like side mirrors and bumpers.

Reform is critical to restoring competition in the marketplace. Six automakers were among the top 20 U.S. design patent recipients in 2020. These automakers have drastically increased the number of design patents they’ve applied for and been granted over the past 20 years – roughly 250% in at least one case!

Repair restrictions on cars and other items have been skyrocketing in recent years due to OEMs increasingly misusing design patents to crowd out competitors in the marketplace. On top of that, OEMs are tightening their grip on vehicle data. These restrictions make it harder for businesses to offer alternative parts during the car repair process. While some states, like Massachusetts and Illinois, have made promising strides in the growing automotive right to repair movement recently, there’s still work to be done. One national solution is the bipartisan Save Money on Auto Repair Transportation (SMART) Act (H.R. 3664), which would allow for greater choice of quality, safe, and affordable aftermarket car parts – putting business owners and consumers alike back in control. The SMART Act would: • Reduce from 15 years to 2.5 years the time that car manufacturers can enforce design patents on collision repair parts, such as fenders, quarter panels and doors, against alternative parts manufacturers; and • Maintain business owners and consumers’ right to choose from a multitude of brands, prices, and products when purchasing parts and making repairs. Importantly, the SMART Act maintains appropriate intellectual property rights for automakers by upholding the existing patent period in which automakers can enforce design patents against other automakers. “Local businesses and consumers lose when 15-year design patents keep independent manufacturers from offering safe, quality, and

The SMART Act is currently sitting before the House Committee on the Judiciary, as local businesses cope with stress due to the pandemic and while inflation continues to drive up vehicle maintenance costs. Alternative parts are 26-50% less expensive than OEM parts, while also helping to decrease the cost of OEM parts by 8% through competition. These are reasons why the SMART Act will not only increase choice, but will also translate to lower prices for car repair parts. In addition to the CAR Coalition, which includes American Property Casualty Insurance Association (APCIA), Automotive Body Parts Association (ABPA), AutoZone, and LKQ, the SMART Act is supported by the Consumers for Auto Reliability and Safety Coalition, National Association of Mutual Insurance Companies (NAMIC), Auto Care Association, RetireSafe, AARP, and more. Last year was one of the biggest years for right to repair, thanks to hard work from businesses, advocacy groups, consumers, and government officials alike. In 2022, it’s time to build on the momentum to protect your right to repair America’s vehicles. Learn more about the SMART Act and get involved today: www.carrepairchoice.org/ take-action. autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 13

Ford Launches Zero-Carbon EV Home Charging Initiative California Ford on Dec. 17 announced it is launching a new sustainable charging program that allows plug-in electric vehicle owners in California to opt into carbon-neutral charging at home, reducing their carbon footprint from energy used to power their vehicles. Ford is choosing to participate in the California Air Resource Board (CARB) Low Carbon Fuel Standard

through the FordPass app 2. Once enrolled, the FordPass app automatically tracks the amount of electricity used while charging at home 3. Ford generates, or buys, an equivalent amount of California-sourced Renewable Energy Certificates (RECs), an EPA-recognized program that records the generation and usage of green energy

“Ford’s electric vehicle customers are beginning to realize all the possibilities associated with their vehicles and sustainable energy management,” — Matt Stover (LCFS) to offer customers a new way to help reduce greenhouse gas emissions that contribute to climate change by matching the use of electricity used to charge plug-in electric vehicles at home with 100% local renewable energy. Here’s how the program works: 1. Owners of eligible plug-in electric vehicles opt into the program

4. Ford sends evidence of the matching amounts to CARB, ensuring that all home plug-in charging activity is matched with zero-carbon electricity “Ford’s electric vehicle customers are beginning to realize all the possibilities associated with their vehicles and sustainable energy management,” said Matt Stover, director of charging and energy services, Ford Motor Company. “By working with

regulators, utilities and customers for home integration services, we’re enabling EV drivers to lower their carbon footprints, potentially save money and help protect the grid, all through their smartphones.” The program is eligible for California-based owners of all current Ford all-electric and plug-in hybrid vehicles. The products currently include the Mustang Mach-E, E-Transit and Escape Plug-In Hybrid, and will be available with the F-150 Lightning in 2022. Ford is investing more than $30 billion in electric vehicles and batteries through 2025, supporting its longer-term goal to create a sustainable American manufacturing ecosystem, and to accelerate its progress towards achieving carbon neutrality no later than 2050, backed by science-based targets in line with the Paris Climate Agreement. Overall, Ford expects 40% to 50% of its global vehicle volume to be fully electric by 2030. Source: Ford

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batteries at Tesla’s Gigafactory 1 in Sparks, NV. While operations at Gigafactory 1 will continue, PENA intends to take advantage of the Reno location to expand local engineering capacity and talent acquisition and upskilling, further propelling its position in the electric vehicle market. “Panasonic has been a phenomenal member of the community and I’m thrilled they continue to drive growth in the area,” said Reno City Council member Oscar Delgado. “I share Panasonic’s commitment to contributing to society and look forward to partnering with Panasonic in the years to come to make a positive impact in Reno.” “IRG is excited to welcome PENA to the property. We had an excellent experience working alongside the PENA team and their brokers, Brian Armon and Tony Machabee,” said Stuart Lichter, president of IRG. “We are thrilled to reactivate the property and bring jobs and activity back to the site.” Source: Panasonic Energy of North America

14 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

SEMA launched a new online education library to provide the automotive aftermarket with easy and affordable year-round access to experts and leaders. From technical details about advanced driver-assistance systems (ADAS) and legislative and advocacy updates, to best practices and tips on common business skills and behind-the-scenes conversations with industry leaders, celebrities and icons, the new SEMA Virtual Education website at www.sema.org/education includes a comprehensive collection of educational webinars and resources targeted to the automotive aftermarket. Employees of SEMA member companies will have the distinct advantage of being able to access most education at no cost or at a discount, but all sessions are available to anyone in the industry—regardless of SEMA membership status. Visit www.sema.org/education. Source: SEMA

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Panasonic to Add Campus in Reno, NV, as Electric Vehicle Market Revs Up Panasonic Energy of North America (PENA), a division of Panasonic Corporation of North America, on Dec. 22 announced plans to expand in Northern Nevada with a new campus in Reno, NV, anticipated to open spring 2022. The 94,483-square foot existing building at 645 East Plumb Lane managed by Industrial Realty Group, LLC (IRG) in Reno is being renovated to become PENA’s division headquarters and will feature state-of the-art engineering labs, employee recruitment and training facilities, and other support functions. “Our new facility in Reno underscores our commitment to evolving and growing to stay at the forefront of the mobility market,” said Allan Swan, president, PENA. “Investing in innovation and workforce initiatives in the local community supports our mission of creating a future powered by sustainable energy.” The announcement comes seven years after Osaka, Japan-based Panasonic Corporation announced PENA would produce lithium-ion

SEMA Launches Online Library

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Caliber Named to Best In Business List Caliber, whose automotive service brands include Caliber Collision, Caliber Auto Care and Caliber Auto Glass, has been named to the Inc. 2021 Best in Business list. Inc. Best in Business Awards honor companies that have gone above and beyond to make a positive impact. By leading with its purpose of Restoring the Rhythm of Your Life, Caliber was awarded a gold medal in the Extra Large Company Size (500+ employees) category and is the only auto services provider to be recognized. Committed to its company mission to be the most trusted automotive service provider in every community it serves, Caliber led through the challenges of 2020 and 2021 by providing a safe workplace for teammates, continuing to serve customer needs and supporting each community it serves all of which continued to elevate the automotive repair and maintenance service experience. Source: Caliber

EV Range to Install 26 High-Powered EV Charging Stations in CA and NV in 2022 EV Range Inc., an EV charging network based in San Pedro, CA, is in the process of deploying a total of 26 high-powered (180350kW) electric vehicle (EV) charging stations across nine sites throughout California and Nevada in 2022. EV Range already owns and operates charging stations in California, but through grant funding from the Monterey Air Resources District (MBARD), CALeVIP, NV Energy and Mojave Desert Air Quality Management District (MDAQMD), EV Range is expanding its offering to provide fast, high-powered EV charging solutions to isolated regions and along major highway corridors. Each of EV Range’s high-powered EV charging locations are engineered ready for future scale and for renewable generation technologies, such as solar and battery energy storage. “Although California and neighboring States have been at the forefront of the shift toward e-mobility, large voids still re-

main that require both low (level 2) and high-power (Direct Current Fast Chargers or DCFC) public charging infrastructure,” said EV Range’s co-founder and CEO Carl Pancutt. “We are excited to announce these 26 stations coming in 2022, especially after all the work the team has put in to lay the foundation over the past year. “EV Range’s network development team analyzes areas that have a dire need for high-power infrastructure and work with local governments, utilities and incentive providers to fill these gaps with future-proofed EV site designs that are ready to scale as EV adoption continues to rise,” Pancutt continued. “It is through our own learnings of operating both DCFC and Level 2 electric vehicle chargers that we developed and now provide our EV Range network software and payment tools for partners to own and operate EV charging stations at their own properties, on their own terms.” EV Range’s Network Soft-

ware provides not only the power behind EV Range’s own charging sites, but extends their cloud-based Charging Station Management System (CSMS) to fleet operators and property owners to own, operate and manage their own chargers at their locations, with real-time data reporting such as charger status, energy dispensed and greenhouse gas/gasoline displacement metrics. EV Range was formed in early 2021 by Pancutt, formerly director of EV network development at Recargo Inc. aka PlugShare, and Kevin Schifrin, formerly executive director at EVO Payments. The EV Range team today consists of software developers, civil and electrical engineers, utility planners, real estate specialists and construction crews to ensure efficient turnkey solutions for EV charging station installations. Source: EV Range

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California Man Arraigned on 14 Counts of Insurance Fraud in ‘Paper Collision’ Scheme Farrukh Hussain, 37, of Eastvale, CA, was arraigned on 14 felony counts of insurance fraud after allegedly stealing consumers’ identities to file 14 fraudulent insurance claims with six different insurance companies using a “paper collision” scheme—meaning most of the accidents never occurred and only existed on paper. The California Department of Insurance launched an investigation after multiple insurance companies flagged claims they had received. An investigation reportedly found Hussain stole his victim’s insurance information and posed as that person to report accidents where he was the other party involved. While posing as his victims, Hussain would allegedly admit fault to the accident and request their contact information be updated to his own phone number so the insurance company would contact him regarding the claims instead of the real policyholder in order to get away with the scheme.

Detectives reportedly discovered Hussain obtained his victims’ insurance information while their vehicles were being worked on at a stereo and tint shop in Covina where he was previously employed for a short time as a “sales-helper,” and he is suspected of obtaining victims’ information while brokering vehicle purchases for them. Hussain reportedly used two BMWs, which he owned, that had pre-existing damage and presented the same damage on each claim he filed. Many of the claims were for “paper collisions,” but in one instance, Hussain was reportedly able to obtain one victim’s information from a traffic collision report through a legitimate accident. Hussain’s alleged actions resulted in a total loss of $17,293 to six different insurance companies. This case is being prosecuted by the Los Angeles County District Attorney’s Office.

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Continued from Cover

Best-Selling Automaker with strong electric vehicle momentum as customer deliveries for both the F-150 Lightning and E-Transit will begin, further growing Ford’s electric vehicle share. Ford electrified vehicles grew 36% faster than the segment overall in 2021, while achieving new sales records for the month of December and all of 2021. Ford sold a total of 12,284 electrified vehicles in December, up 121% from last year and growing at more than four times the rate of the overall segment for the month. Ford was the best-selling automaker in the fourth quarter. Ford sold 508,451 vehicles in the fourth quarter—a 26.8% increase over the third quarter, compared to an overall industry decline of approximately 3%. Ford begins 2022 with 247,000 vehicles in stock—up 22,000 from November and the best stock position in the industry. For the month, Ford took in 70,000 new vehicle retail orders,

GM Aligns with California on Emission Rules, State Looks to Buy GM EVs

up 58,000 vehicles from a year ago. Thirty-three percent of Ford retail sales were the fulfillment of customer orders for the month. Ford share of the retail SUV segment stood at an estimated 12% in Q4, up three percentage points over last year. Ford’s strategy to focus on SUVs and trucks is reaping benefits. Ford brand SUV sales were up 7.3% in December over November and were up 12.3% in 2021 over the previous year. Ford’s newest vehicles are hitting the mark with customers. Combined sales of Mustang Mach E, Bronco, Bronco Sport and Maverick totaled 23,825 vehicles in December, representing 14.2% of the overall Ford brand portfolio. All are turning in under 20 days on dealer lots. F- Series achieved best-selling truck for the 45th straight year and best-selling vehicle in America for the 40th year in a row. With 726,004 trucks sold, F-Series outsold its second-place competitor by 156,616. December F-Series sales totaled 62,496 trucks, up 3.4% over November.

Get Used to Chip Shortages: They are Not Going Away Anytime Soon by Loukia Papadopoulos, Interesting Engineering

There’s no denying there is a global chip shortage. In November, it was reported Japan had committed $5.2 billion toward providing support for semiconductor manufacturers in a bid to help solve the world’s ongoing chip shortage. But is that enough? It seems not. During a recent earnings call, Micron CEO Sanjay Mehrotra told investors it is clearly not. “Across the PC industry, demand for DDR5 products is significantly exceeding supply due to non-memory component shortages impacting memory suppliers’ ability to build DDR5 modules,” Mehrotra said. “We expect these shortages to moderate through 2022, enabling bit shipments of DDR5 to grow to meaningful levels in the second half of calendar 2022.” What does this mean for consumers? Cars are more expensive, computer makers are struggling to keep up with consumer demand, and many products have been se-

verely delayed, such as the PlayStation 5, which is still impossible to order a year after its launch, according to Yahoo Finance. COVID is partially to blame. Carmakers assumed people would not want to buy cars during the pandemic and slowed down production, only to discover the opposite was true. COVID also forced the slowdown of many production lines such as those of chipmakers. Companies are trying to do something about the crisis. Intel, TSMC and Samsung are investing in new factories but it will still take at least two years until they are up and running. Experts are estimating the shortage will continue well into 2022 and 2023. Intel CEO Pat Gelsinger said he expects the situation to continue till 2023. “COVID disrupted the supply chains, causing it to go negative. Demand exploded to 20% yearover-year, disrupted supply chains and created a very large gap, and that exploding demand has persisted,” he said to Nikkei.

Source: Ford Motor Company

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“Making our parts available online marks another step in transforming the ACDelco and GM Genuine Parts brands,” said GM Customer Care and Aftersales Global Vice President John Roth. “Our premium parts are engineered with

up a $40 billion total addressable market by 2030, and it anticipates significant revenue growth from its expanded e-commerce effort. GM launched online accessory sales in 2015 and sells all of its 5,000 accessory products online. GM plans to offer parts, accessories, digital products delivered over-the-air and subscriptions through a single digital storefront.

exceptional quality to provide assurance to our customers. The launch of this trusted online sales channel extends that peace of mind to the parts-buying experience.” GM forecasts online sales of parts and accessories will make

For example, customers may use the store to purchase upgrades such as improved capabilities for the Super Cruise advanced driver assistance system and personalization themes for in-vehicle screens. “We are placing software and

Continued from Cover

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digital services at the center of every part of our business,” said GM Chief Digital Officer Edward Kummer. “The future of GM retail lies at the intersection of digital and physical e-commerce. Whether it’s selling parts or vehicles, GM will meet our customers where it’s most convenient for them.” The parts and accessories online store is built on one of three platforms that form the foundation of GM’s digital commerce transformation. In the future, in partnership with dealers, GM’s digital retail platform will allow customers to shop, purchase and finance electric vehicles entirely online, with the option to transition to an in-store experience at any point in the process. GM is also extending its subscription services platform to support new recurring revenue opportunities with forecasts to grow that business. These initiatives ladder up to the $20 billion to $25 billion in annual software and services revenue opportunities GM announced at Investor Day in October.

Fortner to Retire as LKQ Corp. VP Justin Jude, president, North America, LKQ Corporation, released the following statement on the upcoming retirement of Terry Fortner, vice president of sales and marketing. As many of you may have heard, it is with mixed feelings that we announced on Jan. 4 the retirement of our vice president of sales and marketing, Terry Fortner, which will be effective at the end of July. It is difficult to sum up Terry’s achievements and contributions to LKQ for more than 12 years. We all recognize Terry’s unconditional dedication, hard work and overall optimism on life. I have enjoyed working with him for the past 12 years and am proud to call him a friend. Terry will be greatly missed, and his accomplishments will always be there to remind us of how important he was to LKQ’s success. Please join us in congratulating Terry on his retirement. Source: LKQ Corp.

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Sony Getting Serious About EVs, Debuts SUV Concept at CES by Dan Mihalascu, Inside EVs

When Sony unveiled the Vision-S electric concept sedan at CES 2020, everyone hoped it wouldn’t remain just a show car; after all, it looked production-ready and was too well thought-out to remain just a one-off. Now, Sony finally said it is exploring an entry into the EV market, which is no big surprise given it has been testing the Vision-S 01 prototype on public roads since its reveal. To remove any doubt about its intentions, the Japanese company just unveiled a second electric vehicle concept, the Sony Vision-S 02 SUV. Previewed at CES 2022, the Vision-S 02 uses the same EV/ cloud platform as the sedan prototype to offer a more practical vehicle with a roomier interior with seven seats. Sony said the Vision-S 01 and Vision-S 02 prototypes “will promote the accommodation of a large variety of lifestyles within a society where values are becoming increasingly

diversified.” Looking at the Vision-S 02, the resemblance to the Vision-S 01 is obvious as the SUV adopts the same design language and cues. While the sedan’s dimensions place it halfway between the Tesla Model 3 and Model 3, the SUV occupies the space between the Tesla Model Y and the Model X. The Vision-S 02 is 192.7 inches long, 76 inches wide and 65 inches high, with a generous wheelbase stretching at 119.3 inches. It rides on 20-inch wheels and weighs 5,467 pounds. Inside, the dashboard design is very similar to the Vision-S 01 as well, consisting of three giant displays. The one on the left acts as an instrument cluster, the one in the middle is the main interface for the infotainment system, and the one on the right is for the front passenger. Second-row passengers have two additional screens at their disposal. As with the Vision-S 01, the Vision-S 02 benefits from gadgets like seat speakers working with a streaming service compatible with

360 Reality Audio and a fully integrated digital video service, Bravia Core for Vision-S, which enables shared or individual video playback on the front panoramic screen and individual rear-seat displays. In-vehicle entertainment also includes the ability to play PlayStation games through a remote connection to a console at home, in addition to the ability to play streaming games through the cloud. Power comes from a dual-motor AWD powertrain making a total of 536 hp, enabling the electric SUV to reach a top speed in excess of 112 mph—37 mph lower than the sedan. The 0-62 mph sprint has not been revealed, but it likely takes more than 4.8 seconds needed by the Vision-S 01, which is 287 pounds lighter. Sony’s Vision-S prototypes also place great emphasis on safety, thanks to an array of sensors offering 360-degree vision around the vehicle. These sensors include high-sensitivity, high-resolution, wide dynamic range CMOS image sensors and LiDAR sensors that

accurately sense three-dimensional space. Sony said it is currently conducting functional verification tests in Europe toward the release of Level 2+ advanced driver assistance systems (ADAS) on public roads. This is truly exciting news for EV enthusiasts, as a giant technology company like Sony will no doubt help the segment grow further. In order to explore its entry into the EV market, Sony said it will establish an operating company, Sony Mobility Inc., in the spring. “The new company will aim to make the best use of AI and robotics technologies, help realize a world where everyone can live in harmony with robots on a daily basis, fill people with emotion and contribute to society,” Sony said. “With VISION-S, which contributes to the evolution of mobility, together with the autonomous entertainment robot aibo, and the drone Airpeak, Sony will seek to continue to create new value in a variety of fields.”

Ford Develops Job Aids for ADAS with Glass and Without by Rebecca Barnabi, glassBYTEs.com

Ford has developed three new job aids, two of which are for Advanced Driver Assistance Systems. The job aids are intended to assist in ADAS repairs of Ford and Lincoln models. On Target said information about the new job aids is intended as a reference only. Auto glass repairers are reminded when servicing or calibrating ADAS components, detailed procedures are available in the Ford Workshop Manual, and accessible on Motorcraftservice.com or the Ford Professional Technician Safety website. The new job aids for ADAS with and without glass provide component description and location and the required steps for each ADAS. The troubleshooting guides “identify specific ADAS components, all associated abbreviations and descriptions of how the systems operate, while the glass version further illustrates where ADAS components are in relation

to the windshield or other fixed glass, such as the head-up display module, which is located on top of the instrument panel on the driver’s side at the base of the windshield.” ADAS components may require additional calibration steps or programming after removal, replacement or service. “Concerning the electrified fleet of Ford vehicles, we wanted to make sure repairers familiarize themselves with the unique repair characteristics of these vehicles, as well as the specialized tools, equipment, materials and precautions needed to repair them accurately and safely,” Ford customer service division U.S. collision manager Chris Wallace said in On Target. “These job aids allow us to provide the critical information our technicians need upfront, before they even need it, though the job aids do not replace Ford OE repair procedures.” (C) 2022 by glassbytes.com. Reprinted with permission. All rights reserved. For more information contact www.glassbytes.com.

20 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

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Continued from Cover

Toby Chess Shares 4. Best Practices for Two-Sided Bumper Repair Using Adhesives 5. Best Practices for Using 2K Epoxy Primer Here is Toby Chess’s newsletter: On Oct. 15, Dana Caldwell wrote an article for Repairer Driven News about why people pick the collision repair shops they do. The results were an eye opener. You would think insurance driven would be No. 1, but in fact it was last in the survey. Sixteen percent choose their auto body shop due to word of mouth. As you know, I spend a lot of time in body shops for I-CAR welding tests and most of us are reactive instead of proactive. How many of you have a written SOP for checking in a vehicle? How many have a written SOP for keeping your customer informed? How many have a written SOP to do a 48- to 72-hour followup after the car has been picked up? How many have signed job descriptions for each position in your shop? With some people choosing word of mouth, we need to do things better, and the easiest way to accomplish this is the use of written SOPs. I have more than 75 SOPs, and I will be adding 50 more over the next couple of months. I have three example stories to drive my point home. This was a used door from a well-known wrecking yard. The dent at the molding reduced the price by $50. I put my PDR light on it and asked the owner “Do you think that is a one-hour dent?” His answer was, “Probably not, more like two hours.” I used my light to circle all the dents—five more. I asked him who is going to pay for the additional labor, prime and materials for the door. That door needed between five and six hours of repair. His tech made $50, he lost a couple hundred dollars of sales and he increased his cycle time because the tech was not working on the customer’s door but a used door instead. I have an SOP on handling used sheet metal in the future, so this does

not occur again. Moving on, the next example I would the highlight is aluminum dent repair using a weld-on pulling pin. I received a call from Erik Spitznagel, owner of Dent Fix Equipment. He sold an aluminum repair station to a shop in the Midwest. The body shop was trying to pull out a dent on a cab corner on a 2017 Ford F-150. The problem was the pins would not stick and they were “blowing” holes in the aluminum. I called the shop owner and asked him what procedures he was using. He did not know, but got his tech on the line. The technician said he sanded the panel to bare aluminum using a 120 grit DA sander. When the pin did not stick, he increased the voltage and blew a hole in the panel. He did another one with the same results. I told him the recommended steps. First and foremost, the aluminum needs to be cleaned with a stainless steel brush, to prevent galvanic corrosion. I explained the small brush works the best to remove aluminum oxide from the weld site. Next, the site needs to be cleaned with good wax and grease remover. Step three is to apply one silicon stud and one magnesium stud, turn the power setting to 3 and see which one sticks the best. After destemming the proper stud, load a pin into the gun, pushing it down with end of the stainless steel brush. Grease on your finger will contaminate the pin and it will not stick. I told the tech to make sure the pin was perpendicular to the metal. I asked the manager if he would like a best practice sheet on the proper steps needed for aluminum stud installation and removal, and he said sure. He also said if there was a problem, he would call, which he never did. I have included this best practice as an attachment. My third example deals with plastic repair using adhesives. Recently, I received a call from a Kent Automotive sales representative. One of his shops called and told him the bumper repair they performed failed. I made an appointment with the shop and I arrived a couple of days

later. I asked the gentleman who repaired the bumper what steps and products he used. He gave an abbreviated version and I explained I needed the step by step process he used. He said he removed the paint from the front side of the bumper with a 120 DA sander, but not the back side. He then cleaned the front and back side of the bumper with Prep-Sol. I explained to him that using a solvent-based wax and grease remover is designed to remove adhesives. The solvent will wick into the raw plastic and when the adhesive is applied, the solvent wax and grease remover will not allow the adhesive to stick. I explained a water-based wax and grease remover needs to be used. I also told him he needed to sand the backside with 80 grit DA to abrade the plastic so the adhesive would adhere to it. He showed me the product he used for the back side, which was the wrong material. He used another manufacturer’s product for the front, and that manufacturer requires an adhesion pro-

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moter before the application of the adhesive, which he did not use. We went into the shop and I did a clinic on plastic repair. He brought me a water-based wax and grease remover from a different manufacturer. I explained to him that is probably OK but he needs to use one manufacture’s system, and using or mixing other companies’ products may interact and cause the repair to fail. I have included this best practice as an attachment. If you want a bumper repair clinic on adhesives or nitrogen welding, I would be more than happy to come to your shop and conduct a clinic. There is not charge for this service. Just call 310-9957909 or send me an email at tcspeedster@gmail.com. In conclusion, if the three shops had SOPs in place and they were followed, these failures would not have happened. My next column will deal with creating your own SOPs. One final request: please let know what are your thoughts on this or if you have ideas that you want to share.

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Mike’s Auto Body Gives Away 4 More Cars to Hit 100 in 21 Years by Ed Attanasio

On Dec. 15, Mike’s Auto Body (MAB) gave away its 100th vehicle through its nationally-known Benevolence Program, at a presentation held at the Concord Pavilion in Concord, CA. It was a cold and rainy night, but the power of benevolence kept the crowd of approximately 500 people warm and fuzzy. To reach the milestone of 100 vehicles given away, MAB presented four families with “nearly new” completely refurbished cars.

The Hernandez family received a 2019 Chevrolet Malibu donated by Enterprise. Mia Hernandez discovered Christmas started Dec. 15 this year.

Enterprise donated a 2019 Chevrolet Malibu, repaired at MAB’s CFS Concord location, for Josue Hernandez and his family. Farmers donated a 2015 Ford Focus for LaTraina King, repaired at MAB’s North Broadway location, in conjunction with the National Auto Body Council’s (NABC) Recycled Rides program. Liberty Mutual/Safeco donated a 2018 Mazda 3 Sport for Robert Coston, repaired at MAB’s Concord VDM location. CSAA donated a 2019 Nissan Sentra for Ashley Fox, repaired at MAB’s Fremont Street location. The evening kicked off with an invocation and a brief description of the program by Sal Contreras, followed by a speech by owner and founder Mike Rose. Then, Concord Mayor Dominic Aliano said a few words of encouragement and thanked MAB for its charitable work for the community. Past recipient Tito Ramos, a soldier and family readiness specialist for the California National Guard who received a vehicle in 2014, also spoke. Daniel Herbst, director of sales, replacement and leisure division, for Enterprise, then presented the car to Hernandez, followed by a presentation from Dane Dearlove, a retired

member of the MAB team. Kevin Hennessey from Farmers Insurance and Financial Services presented the vehicle to King.

Liberty Mutual/Safeco donated a 2018 Mazda 3 Sport for Robert Coston.

Tom Donahue, claims manager of Liberty/Mutual/Safeco Insurance, gave the car Coston. Robert Luis, a 2019 recipient, spoke. Contreras talked about CSAA IG’s involvement with MAB’s Benevolence Program. Dustin Cooper, community impact manager for CSAA IG, presented Fox with her car. Finally, Contreras offered his closing remarks. CSAA IG has donated 19 cars throughout the years, so the people at MAB thought it appropriate to name CSAA IG’s car its official 100th giveaway. Contreras said he has seen every car presentation since the program’s inception, but never grows tired of them. “It has been so rewarding for the past 21 years, presenting these cars to deserving individuals and organizations who are working to improve their skills and become independent,” Contreras said. “We always say that at Mike’s, we are providing a hand up as opposed to a hand out. These deserving people are working towards making a better life for their families and all they need is reliable transportation to make it happen.” MAB’s Benevolence Program is an ideal charity model for auto body shops because it involves insurance companies and local nonprofits. Everything is donated—the cars, parts, paint, mechanical inspections, tires and one full year of insurance. The body and paint technicians donate their time and talents. “We are grateful for this presentation to have Farmers Insurance, Enterprise Rent a Car, CSAA IG, Liberty Mutual/Safeco Insurance and NABC Recycled Rides collaborating with Mike’s in presenting four refurbished cars to four deserving families,” Contreras said. “As of Oct. 25, 2021, we

24 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

have presented 96 cars over 21 years to deserving families, individuals and nonprofit organizations, and on Dec. 15 we gave away four more vehicles to hit the century mark!” Each year the collision repair industry comes across cars “written off” by either the owner or the insurance company. Often, these are older vehicles that just need some mechanical and body work to get them back on the road and perfectly safe to drive.

CSAA donated a 2019 Nissan Sentra for Ashley Fox.

Because the people at MAB strongly believe these cars are going to waste when there are people out there who really need them, the MSO with 17 locations in northern California’s East Bay decided to do something about it, starting in 2001.

“We feel very fortunate to be involved with such a wonderful program and are very excited to be able to give back to the area communities that have supported us for the past 49 years,” Rose said. “After receiving hundreds of applications over the years and reading the heartbreaking stores, we only wish that we could do more. But hopefully with increased publicity of our Benevolence Program other shops will adopt a similar program of their own.” Contreras is known now as the MSO’s Benevolence Ambassador because he has been associated with the program since it’s conception. He never tires of the tears of joy he sees every time someone gets a vehicle— including his own. “The gift of transportation is an amazing thing, and we have seen it transforms peoples’ lives,” he said. “We never get tired of helping others and this program is now part of our DNA. So, we will never stop doing it because we are honored to be in a position like this where we can help so many people in a very tangible way.”

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National Survey “Our business is currently stronger than it’s ever been,” a Missouri shop owner said.

“Scheduling out two months,” a North Carolina shop owner said. An optimistic Minnesota shop manager pointed to his shop’s fivemonth backlog of work and “plenty of business in our area,” though he did acknowledge concern that 75%

The survey found among the collision repair businesses that said they received a second-round Small Business Administration Paycheck Protection Program (PPP) loan in 2021, 70% said they have already received loan forgiveness. None of the shops surveyed reported having their loan forgiveness application rejected, but 20% said they still planned to apply to have the loan forgiven, and the remaining 10% were undecided about applying. Among those who said they received a first-round PPP loan in 2020, 84% said the loan had been forgiven; the balance either had not applied for forgiveness, were awaiting approval or were undecided about seeking forgiveness, but again, none reported having their loan forgiveness application rejected.

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“This company has made it through many ups and downs since it opened in 1984,” a Wisconsin shop manager said.

of the shop’s employees will retire within the next five to 10 years. “Need fresh faces ASAP,” he said.

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DCR Systems Sponsors Matrix Trade Institute DCR Systems announced Jan. 11 the company is the first corporate sponsor of the Matrix Trade Institute’s Collision Program as a Foundation Level Partner. The institute offers upskill industry efficiency training boot camps for employers that aim to help technicians reach the next level by improving their skills and learning efficiency techniques to help them become more productive and grow. The boot camps are paid for by employers. DCR Systems, also based in Ohio, develops on-site accident repair facilities for auto dealers seeking to outsource this function as an additional fixed operation. CEO Dustin Peugeot said the goal at Matrix is to align with forward-thinking operations like DCR Systems that have the vision to see a better way forward and the courage and commitment to deliver for their employees. Source: DCR Systems

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Can You Meet Collision Repair Shop Customers’ Changing Expectations of Service? I recently had the opportunity to meet in person with many of my 20 Group clients, and one of the things that came up was collision repair customers are not as patient as they used to be. At the beginning of the pandemic, if you told a customer a part was on backorder, or a part would take longer to arrive because the supplier had reduced how frequently they were doing deliveries, they were pretty understanding. What I’m hearing from auto body shops around the country is those same customers today are much more demanding, and they’re not so patient. They don’t care about supply chain issues or the shortage of employees. They just want their car repaired and back to them. And I hate to say it, but unfortunately I believe that’s only going to get worse. Which brings me to the topic of liquid expectations. You’ve probably heard that term. It basically describes that customer expectations in terms of service from a business are really shaped by their experiences with other companies. If I can use the Starbucks app to order and pay for my coffee and have it ready and hot on the counter for me when I walk in, why can’t the local coffee shop around the corner offer me similar convenience and service?

In terms of our industry, I’ve been thinking about things I used to go get that now get delivered to my door. Take groceries. I may spend $100 on groceries, maybe $300 sometimes. Either way, my local grocery store delivers that to my house for free.

I get a prescription filled that costs me $7.99. My local pharmacy delivers that to my house. For free. No delivery charge. I believe it’s just a matter of time before customers are going to start saying: “I spent $4,000 with you, and I have to leave my job early to come pick up my car?” I think it’s just a matter of time before they’re going to want the same type of pickup and delivery service they are getting from all types of other businesses. Now understand: I’m not saying I agree with this. I’m not saying it’s something we have to do or should be doing. But I believe collision repair customers are starting to

SEMA President and CEO to Retire Following more than 30 years of service to SEMA, President and CEO Chris Kersting will be stepping down at the end of January to enjoy retirement. The move comes as SEMA concludes a successful 2021, delivering two of the nation’s largest in-person trade shows since the start of the pandemic—the SEMA Show in Las Vegas and PRI Show in Indianapolis. Kersting joined SEMA in 1996 to lead the organization’s

Washington, D.C., office as vice president of legislative and technical affairs. He took the helm as SEMA’s CEO in 2002 and led the association through two decades of growth. Beginning Feb. 1, Kersting will transition into an advisory role through July. SEMA executives Bill Miller and Mike Spagnola will serve as interim co-CEOs. Source: SEMA

28 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

want and could start to expect and demand a “white glove” or “concierge” type of service experience from us. I was on a call recently with an insurer who said they’re seeing that sort of expectation from customers in terms of the insurer’s DRP shops. So what would that mean for your body shop? Well, it means having another one or two people, right? We need to make sure they have a clean driving record and can have good interactions with customers. We’ll have some added liability if we’re driving customers’ vehicles back and forth. We’re going to need to be profitable enough that we can offer that type of services. That goes back to a previous article of mine about employee wages where I said either

labor rates have to change, or shops have got to be paid for more not-included operations, or some combination of the two. Alternatively, it may also be something we could have a fee for. You pay $6.99 for a delivery by DoorDash. People spend that. So maybe it’s time we start offering pick-up and delivery for a certain dollar amount. Either way, it also means we’re going to need to do much better in terms of quality control inspections of vehicles, because we don’t want to get a repair vehicle out to the customer’s home and only then discover an issue. As I said, suggesting yet another challenge for collision repair shop operators isn’t something I like. But I just see this as one of the ways customer expectations are changing which we need to consider.

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Industry Insight with John Yoswick

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

Fully Automated AI Collision Repair Estimating ‘Not There Yet’

Shop Showcase

A panel discussion at the Collision procedures for the specific vehicle. Industry Conference (CIC) in Las “So not everything is AI. We comVegas in November included repre- bine it with the OEM procedures with Ed Attanasio sentatives from a number of technol- and our editorial data to produce that ogy companies touting the potential specific accurate estimate.” benefits—for auto body shops and In discussing what AI estimatinsurers—of artificial intelligence ing offers shops specifically, the (AI) estimating, but also acknowl- panelists noted the wide variance edging some of its current limita- in estimates often seen even when tions. with Ed Attanasio different estimators look at the same “We’re not there yet, 100%, vehicle. AI can help collision repair with straight-through processing,” businesses increase consistency in said Dune Pagaduan of Mitchell their estimating, Pagaduan said. International, referring to AI being Panelist Jason Verlen of CCC capable of completing all estimates Intelligent Solutions said it also offers shops access to photos and inwith Ed Attanasio formation even before the customer arrives.

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“So there’s huge increases and improvements in cycle time” and the customer experience, Verlen said. “But it’s not like AI solves all the world’s problems.” He noted the panel moderator talked about recently watching an estimating contest at a Texas trade show in which 16 estimators writing for a quarter panel replacement on a mainstream vehicle came up with 16 different estimates, ranging from 130 lines to 400 lines. “So someone may ask me: ‘Is your AI accurate? Does it match what a human would do?’ My answer is: Which one of those [16] guys do you want me to match,” Verlen said. “That’s why I say AI is no magical bullet. That’s why we combine AI with build sheet data, with business rules, with insurer guidelines, and that’s how we come up with an estimate that’s reasonable to the situation.” He suggested to “reduce skepticism” among new users, the systems’ thresholds should be set high at first so “virtually everything the AI generates on an estimate a human will agree to.” Then gradually loosen the thresholds to get more

Media and Publicity for Shops with Ed Attanasio

Shop Strategies

Dune Pagaduan of Mitchell International said AI can help collision repair businesses increase consistency in their estimating

with Stacey Phillips

Jason Verlen of CCC Intelligent Solutions said without human interaction. “So is about 22% of repairable claims are currently AI real? Sure, it assists us in making processed through AI photo-estimating and automating decisions, thousands at a time…more quickly so that we He noted as recently as three shrink cycle time. But you still need years ago, fewer than 1% of vehicle experts, humans, to complete the claims involved photo-estimating. with Stacey Phillips whole process.” “As of today, roughly 22% of He said AI systems can cur- repairable claims go through the rently write accurate estimates on process,” he said. “And we have “low-severity collisions.” some carriers on our system where “But when you get to higher over 70% of their repairable claims severity type collisions—more com- go through photo AI.” with Stacey Phillips CCC offers a product, Estiplex, more parts—then that’s the journey we have to go to get to that mate-STP, which, Verlen said, on 100%,” he said. “I think in the next low-impact collisions can write a two to three years, we’ll get there.” complete estimate with no needed The panelists were asked if any review or changes by a human. BeAI system built on historical data yond that, he acknowledged, it’s still can identify substrates, systems and “a joint process between the human with Stacey Phillips OEM procedures for nearly new ve- and the AI.” hicles often involved in collisions. But the AI does “make the pro “That is the challenge,” Pagad- cess much more efficient,” he said, uan said, noting historical data ide- in part by getting a consumer an esally needs to be paired with other in- timate faster, which in turn speeds formation in the system, like OEM their decision-making about choosbuild sheet data and OEM repair ing a shop and scheduling repairs.

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30 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

Jimmy Spears of Tractable said his company’s AI estimating system has become adept at quickly determining from photos if a vehicle is a total loss

complete estimates, he said, after skeptics have “been trained to see that it does work” even if there are at times a “difference in opinion.” Jimmy Spears of Tractable said his company’s artificial intelligence estimating system has become adept at quickly determining

from photos if a vehicle is a total loss. “One of things that AI does a wonderful job on is triage,” Spears said. “We’re in the high 90s of calling balls and strikes: Is this car repairable or is this car not repairable.” For insurers, he said, the system can produce 40% of initial estimates “without any further line items” needing to be added. An equal percentage require review of one or two line items—with the estimate annotated as to what an appraiser needs to review—while the balance will require being handled “old school: have it towed, take the car apart and go classic blueprinting.” Moving beyond that 40% of initial estimates “without any further line items” needing to be added will require greater access to vehicle-specific OEM build sheet data, he said. “If we get that, we’re going to have a greater understanding of that vehicle, the DNA of that car,” Spears said. “And then we’re going to have a much better understanding of what this car really needs, its repair process. We have got to solve the problem of build sheet data, and we’re in the right room for that.” In the interim, he said, AI estimating offers benefits to more than just insurers. Tractable has a test going with LKQ Corp., he said, using the technology in a bit of a reverse way: helping determine which parts are not damaged on salvage vehicles. It could also help collision repairers with the customer sales process, Spears said. Currently, estimators point a potential customer to a waiting area while preparing an estimate. “Instead, they’re going to be able to quickly take some images of the car, and then while the images are being processed, they can take the customer around the shop and show the investment that you have” in equipment, training and certifications, Spears suggested. “When they get back to the desk, here’s the estimate.”

AUTOBODY

Bistagne Bros. Body Shop Celebrates 75 Years with a Big Party, LA Style lot.” The shop’s iconic sign is now a landmark in Glendale, even though it confuses people sometimes.

by Ed Attanasio

When any business—auto body shop or otherwise—lasts 75 years and is still going strong, that’s surely something to celebrate. And that is exactly what the owners of Bistagne Bros. Body Shop in Glendale, CA, did when they threw a major bash to commemorate its 75-year anniversary at the Petersen Automotive Museum on Dec. 10. Rated by CNN, Octane and Top Gear as “the world’s greatest automotive museum,” the Peterson was the ideal setting for the 300plus people in attendance. How does an auto body shop survive for 75 years in an industry that has changed in so many ways? Chuck Bistagne has seen it all, as part of the company’s second generation. “It started with our love of cars and grew from there,” he said. “When you’re in a family business, it means more, and having our name on the sign out front means a

The Bistagnes produced a book to commemorate their 75 years of fixing people’s cars in Glendale, CA, since 1946.

“They think it’s a restaurant because of the sign, and we have actually gotten customers who discovered us that way,” Chuck Bistagne said. Bistagne Bros. Body Shop was founded in 1946 by brothers Tom and George Bistagne. After their service in the military during World War II, the brothers rented a tiny shop the size of a small studio apartment in Glendale, where they

performed collision repair and custom work. Two years later, the business expanded, and the brothers purchased the parcel of land where the business has been for the last 75 years. When the brothers opened their doors, DRPs did not exist, aluminum was found primarily in beer cans and computers were down the street at the Jet Propulsion Laboratory, but surely not in cars yet. The 1970s saw the second-generation of Bistagne brothers—Tom Bistagne’s sons—join the company, with Bob Bistagne joining the team in 1975 and Chuck in 1977. In 1999, an adjacent gas station was purchased and construction was started on expanding the business to encompass the entire southeast corner of the intersection. The new office headquarters opened in 2000. In 2003, Bistagne Bros. saw its third-generation, Robert Bistagne—Bob’s son—enter into shop management.

Today, each customer who comes through the doors will be greeted by one or more generations of Bistagnes. Chuck Bistagne, 66, is proud of what his family has achieved and still loves working in the collision repair industry. “We’ve been blessed with

From left, Chuck Bistagne, Brian Bistagne and Robert Bistagne hosted a 75-year anniversary soiree at the Petersen Automotive Museum in Los Angeles.

our longevity,” he said. “My late brother Bob and I were primed to take over the business back in the late 1970s when the industry was changing at a rapid rate. I remember when we went to San Francisco to meet with the first chief of the BuSee Bistagne Bros., Page 41

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Author/Teacher Trains and Mentors the Insurance Adjusters of the Future by Ed Attanasio

Some auto body shops appreciate insurance adjusters and their role in the collision repair industry, while others don’t necessarily feel the same way. But all seem to agree it’s a necessary job. In the end, everyone wants the same thing—the safe repair of a vehicle back to its pre-accident condition. According to Indeed.com, the responsibilities of an auto damage adjuster include evaluating the damage done to a vehicle and then determining what the insurance company will pay. They also add “a claims adjuster job is very stressful

Author/teacher/mentor Chris Stanley created a company, IA Path, to set up independent adjusters for future success. His IA Playbook Series has quickly become the industry’s Bible

as it comes with lots of highly demanding activities. However, when you put in the hard work and dedication, the rewards far outweigh all the tough demands of the job.” Chris Stanley, 36, is an author, career coach/mentor and the founder of Insurance Adjuster (IA) Path, a company that trains and mentors auto adjusters. He lives on a 42-foot sailboat with his wife and three kids—ages 12, 8 and 1—who are homeschooled. He enjoys the freedom and loves “traveling the open seas and feeling small in our big world,” he said. In addition to writing a series of books about insurance adjusters,

he also writes Christian devotionals, memoirs, kids’ books and a variety of non-fiction. Stanley was working as an adjuster for a PDR company in Colorado when he was recruited to become a supervisor at the same organization. “The business grew to the point where we were working with 100 shops and dealerships and they needed someone to oversee the work,” he said. “It was definitely a major mental shift, where I went from writing estimates to managing techs, and after a while I said I want my life back! Plus, it was cold in Colorado.” So, he purchased his boat and began enjoying better weather in Florida, with a career change in his immediate future. “One of the great things about this lifestyle is we can go to wherever we want to be—whether it’s the Keys or West Palm Beach,” he said. “Every year I always ask my children—do you want to live in a house on land or stay on the boat? They always go with the boat.” Around that same time, Stanley saw training programs for independent insurance adjusters were scarce or difficult to get into. “I tried to help a friend who wanted to become an adjuster, and no one would take him, even though I taught him the basics,” Stanley said. “They told him you don’t have any experience. So, I started looking online to see if there was any information about how to enter the industry, but it was all about property and nothing about cars.” Since 2016, Stanley has mentored more than 2,500 people, to create the next generation of independent adjusters and auto damage appraisers. His go-to book is called the “Auto Adjuster’s Playbook,” which Stanley called the industry’s Bible. “It is based on a proven method to teach new people how to learn to write estimates,” Stanley said. “It has been used to teach hundreds of students through IA Path’s online training course, called the ‘Auto Adjuster’s Path.’ “Most people who venture into being an auto damage appraiser

32 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

or body shop estimator are overwhelmed with learning about the parts of the car, repair processes and how to not look stupid,” he continued. “This book tells you what you

Stanley lives and works on a boat with his wife and three kids in Florida

need to know with plain English. The ‘Auto Adjuster’s Playbook’ is field tested and contains industry recognized training and instructions by a 13-year veteran and reviewed by top industry leaders prior to its release.” Other books in Stanley’s IA Playbook Series include “Audatex

Adjuster’s Playbook,” “Networking Adjuster’s Playbook” and “Hail Adjuster’s Playbook.” Stanley’s IA Path program is designed to get people up and running fast, he said. “Whether it’s a Millennial looking for their first career or someone looking for their second or third career, I want to see them get work within 90 days in a rewarding industry and write content to help them navigate their journey,” he said. “We bring them in and get them to the point where they’re doing their jobs correctly, doing mock claims and handling the entire process from start to finish. “Whether an adjuster who is working as a staff or independent adjuster handling property, auto or desk claims—liability, bodily injury, etc.—there will be always be companies looking for their skillset.” This past summer, IA Path hosted its first Adjuster Job Fair to allow adjusters and appraisers from all aspects of the inspection industry to get interviewed one-on-one with

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dozens of hiring companies. “One of the biggest hurdles for adjusters to getting work is getting in front of enough companies that have work opportunities,” Stanley said. “We decided to bring the companies to the adjusters so they wouldn’t have to track them down. The event was 100% online utilizing a state-of-the-art platform and interviews will be conducted using the industry-leading Zoom technology. Adjusters scheduled online face-to-face interviews with 30-plus nationwide and regional hiring companies.” The job fair was brand new territory for Stanley, but he’s never been afraid to take on new endeavors like this one. “This type of event has never been done before online in our industry, for adjusters,” he said. “Typically, events are centered around the hiring companies or technology companies, but we wanted this to be all about the adjuster.” The adjuster admission also included on-demand adjuster training, live adjuster workshops and speakers.

“We have big plans for this platform in the future, but we’ll start with this first event and the follow up during the first quarter of 2022,” Stanley said. “The pricing was designed to offer opportunities to the adjusters year-round, not just for the three days of live online interviews.” When he isn’t motoring around on his boat, Stanley is focused on creating the independent adjusters of the future. “It’s a good job that can lead to a long and wonderful career, so if you’re smart, fast on your feet and detail-oriented, this might be a good match for you,” he said. “And I can show you how to do it!” For more information, visit www.iapath.com.

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‘Cheap’ Volkswagen ID.4 Coming ‘in the $35,000 Range’ by Mark Kane, Inside EVs

Volkswagen closed 2021 with almost 17,000 ID.4 sales in the U.S. but the number could be four times higher, according to the company’s representative. The company has more than 40,000 reservations but is supply constrained, as the cars are imported from Europe. “We could have sold four times that amount,” Volkswagen Group of America CEO Scott Keogh said via Automotive News. “What VW dealers are saying is that this is the most excitement they’ve had on the shop floor since 1998, when we brought the Beetle back.” Currently, the Volkswagen ID.4 is offered in RWD and AWD versions, with a single 82 kWh battery version. In 2022, the car will get an upgrade, including range, while the lineup will be expanded by a new, less expensive version with a smaller battery, probably 62 kWh or so. This new entry-level ID.4 with RWD will start at around $35,000.

That would be about $5,000 less than in the case of ID.4 Pro. The key element of Volkswagen’s expansion of the MEB-based electric cars is the Chattanooga, TN, plant, which will start production of the ID.4 later this year using battery cells from the new SK Innovation’s SK On plant in Georgia. It will not be enough to replace 100% of the imports at the beginning, and made-in-Germany ID.4s will be sold through 2022: “VW will continue to import ID4s into the U.S. from Europe as it ramps up local production of the BEV compact crossover in Chattanooga this year, with locally produced versions beginning to appear in dealerships in the second half of the year,” Keogh told Automotive News. The good news for more than 4,000 employees in Chattanooga is a 10% wage increase in 2022. The average return on sales in the Volkswagen dealer network in 2021, according to the article, was nearly 5%--three times more than in 2020. Hopefully, it will encourage to push electrification.

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Island Concepts Opens Training Facility in Hawaii to Support Collision Repair Industry by Stacey Phillips

Collision repair facilities in Hawaii now have the opportunity to take part in a variety of industry educational classes, thanks to Island Concepts’ new training facility. “Our goal is to offer training throughout the year for management teams and shop employees,” said Scot Takemoto, partner and general manager at Island Concepts. Takemoto and his team moved into the new Honolulu facility in July 2021 and held their inaugural training class in October, “Estimat-

Island Concepts held its inaugural education class in the company’s new training facility in October 2021, “Estimating Consistency—Documenting Damage.”

ing Consistency—Documenting Damage.” The all-day course was taught by Tim Ronak, senior services consultant at AkzoNobel, and is part of AkzoNobel’s Acoat Selected program. The class aims to help auto body shops safely repair vehicles by identifying all the procedures needed to ensure safety systems perform as intended. The main focus of the seminar included information about the damage documentation process and how to get reimbursed for these procedures, to help shops improve profitability. In addition to being the exclusive paint distributor for AkzoNobel in Hawaii, Island Concepts offers products for body shops across the state. The company previously used a smaller storage facility located in downtown Honolulu, which lacked space for training. The new building includes a training room as well as a storage area to house the products they provide to collision repair facilities. In addition, there is a separate area where Takemoto plans to set up a spray booth or prep station for hands-on training. In the past, much of the instruc-

tion on the island was conducted by Honolulu Community College as part of its auto body repair and painting program. However, the program closed in the summer of 2021 due to a lack of enrollment because of the pandemic and Hawaii travel restrictions. As a result, Island Concepts took the initiative to offer educational opportunities in Hawaii. “We’ve always conducted shop training in the past as part of the services we provide, going out and supporting shops, but there were no formal classes because the college closed down,” he said. “Training is so important for the industry to help shops grow and keep up with new technology and repair procedures, especially because of the technician shortage in the industry.” Island Concepts was established in the early 1970s. When Takemoto graduated high school in 1981, he began working at the company and sold AkzoNobel Sikkens paint. “It was hard because I was selling a true basecoat/clearcoat to shops that were using lacquer or to high-end shops that had acrylic enamel,” he recalled. With no knowledge about paint or how to sell, Takemoto took steps to learn the skills himself. “It was an education process,” he said. He remembers one shop owner who owned a big facility on the island and changed his life. After explaining the benefits of the product to the shop owner, Takemoto learned he wasn’t going to buy the product. “I realized then that people are different and you have to use different approaches to sell to them,” said Takemoto. “I also learned how to ask the correct questions to understand and fulfill those needs.” Over time, Takemoto began selling additional shop materials and filling in for painters or technicians if they were out of town or unavailable to work. He and his team have continued this practice for the businesses they support. Takemoto also helps shop owners and managers monitor their financial data and paint and material key performance indicators (KPIs) with a material impact tracker to determine if and when improvement is needed.

34 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

“My intention has always been to help shops be more profitable and efficient,” he said. “I really enjoy helping the customers tracking their key performance indicators. I feel like I accomplish something and help the shop.” Takemoto said he is also very appreciative of his team, which includes two technicians, Todd Stogdell and Cliff Casem, as well as an office warehouse manager and driver Arthur Noda. “I love them like family,” he said. “I can trust them when I can leave and have no worries. We’re a team.” Stogdell joined Island Concepts as the technical director in January 2012, where his main area of focus is helping with product inventory at shops and conducting technical support and training. “Our job is to help shops. We’re the ones trying to keep an eye on the pulse of the business through KPIs, work in progress (WIP) and other key indicators to help them watch where they need to be,” said

Stogdell. “We want them to be able to paint with confidence and know they have support from their paint distributor to help them out with any issues.” Stogdell said an important part of this is encouraging them to use OEM procedures throughout the repair process. With the addition of the new training center, Stogdell said Hawaiian technicians won’t have to necessarily go to the mainland to learn new skills. “We’ll be able to do training here where we can hold classes… as well as eventually offer hands-on skills training,” he said. “We want to be able to provide painters a lot of guidance and assistance so they feel fully supported and have the trust of paint line behind them. I call it ‘painting with confidence.’” Takemoto and Stogdell also assist shop owners and managers address issues they are having in their businesses. One of the current challenges See Island Concepts, Page 45

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 35 1/5/22 3:32 PM

Auto Body Shop Owner Steps into World of Consulting by Ed Attanasio

I was at a California Autobody Association (CAA) meeting recently and I couldn’t help but notice a welldressed man at the front table. It was an informational meeting with the Bureau of Automotive Repair (BAR) and after a few minutes I assumed he was a member of the BAR. At one point, he scolded another auto body shop owner for asking a question. He said, “The customer is your customer, not the insurance company! I taught you that, but maybe you forgot?” I almost laughed. After listening to him for a while, I could tell this guy is passionate about collision repair, as well as being very knowledgeable. I told myself I needed to meet him. His name is Alex Kuang, owner of Redwood City Auto Body in Redwood City, CA. He wants to sell his shop to become a consultant and share his knowledge with the collision repair industry.

Kuang is the current president of CAA’s Golden Gate (San Francisco Area) chapter, and is trying to increase its membership by recruiting many of his friends who own or manage shops in the Bay Area. Kuang came to the U.S. from China at age 10 in 1988 for a better future. His father was originally a

The collision repair industry has been good to Alex Kuang, but now he’s ready to change hats from shop owner to consultant

butcher, but when he immigrated to the Bay Area, he became a chef specializing in Hong Kong-style cuisine. Today, Kuang wants the world to know he can cook, and if you don’t believe it, take a look at his Facebook page when you have a

moment, where he posts photos of his culinary creations regularly. Kuang’s first job was as a painter, but he quickly decided he wanted to sell the paint instead of spraying it. “I loved the product I was using and wanted to share the news, so I got a job with a distributor to educate other shops about it,” he said. “I did that for eight years and I learned so much because I was visiting multiple body shops every day. I was surprised to learn a lot of painters weren’t knowledgeable about the paint they were spraying. I told them the more you know the better you can be as a painter, and you could see it in the finished product. I enjoyed helping them to becoming better painters and better managers.” In 2010, Kuang made the move from employee to employer when he purchased Redwood City Auto Body. “One of my customers called me and said he wanted to get out of the business and he offered me a very good price,” he said. “I was selling paint and I didn’t really know how to run a shop, but I was ready to

Used Electric Car Prices Soared in 2021 by Andrei Nedelea, Inside EVs

While the new car market in the U.S. declined 13.4% in 2021, used electric vehicle sales went up year-over-year by an impressive 60%. Prices of used EVs also went up over the course of last year by more than 15%, and they remain higher on average than prices of used ICE vehicles, although this could just be because most EVs are newer vehicles and usually more expensive to buy. Recurrent, industry analysts that focus on EVs, said it was mainly stronger demand for electric cars that drove up prices, which came courtesy of a constant rise in consumers’ confidence, the reduced supply of vehicle prompted by the global chip shortage and other factors. “I look back at 2021 as an exciting year for electric vehicles in terms of overall market growth, as well as the all-electric commitments from manufacturers that will continue to spur adoption,” said Scott Case, CEO

and co-founder of Recurrent. “If price comes from the tension between supply and demand, let’s hope the industry can produce more electric cars this year because people certainly want them.” Another important conclusion drawn by Recurrent from analyzing EV sales through 2021 was that one third of used electric vehicles could be purchased for less than $25,000 and half for less than $30,000. This means they are more accessible than ever to car buyers, and their popularity is only going up as prices come down even more. GM’s recall for the Chevrolet Bolt EV did have a strong negative impact on sales of this model on the used market. Sales were down 74% and the source suggests this could have been because Chevrolet bought as many of them as it could from dealers, in order to keep them off the street. The plant that builds the model is currently idle and production is not expected to restart any sooner than March.

36 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

jump in. I was the new kid on the block in a competitive market, but I knew at least I could succeed by working harder than the guy down the street.” The numbers showed Kuang’s passion and incredible work ethic were going to lead to healthy profits. During his first month as the owner, the shop did $16,000 in volume, but within just five years, the number— pre-COVID—had grown to approximately $300,000 monthly. Kuang is a major advocate of the right to appraisal, to say the least. It’s a technique he’s perfected over the years by learning from the experts and through trial and error. Many shops stay away from it because they find out it’s complex and feel as though the insurance companies will win anyway, Kuang said. It’s not an old scenario that happens every day in shops from NYC to LA. The body shop writes an estimate to fix the car, and then the customer’s insurance company comes in with a lower number. A lot of body shops will bite the bullet

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and cover the difference, while others will figure out how to cut their costs to accommodate the insurance company’s appraisal. Kuang learned a long time ago eating the difference was no way to run a successful business, so he decided to educate himself and learn how to write what he calls the “perfect sheet.” His estimates are well-known for being thorough, accurate and designed to beat insurance companies when he goes up against them over short-pay claims. He builds a case even F. Lee Bailey would be proud of, with stacks of photos, texts, emails, OE repair documentation, schematics—you name it. It’s the appraisal clause, or the right to appraisal, and you will find one in most automotive insurance policies. It gives the customer a method to dispute the estimate provided by their insurance company when their vehicle has been damaged or totaled. It’s not new, but more shops are using it now because they can see it works as long as they dot their I’s and cross their T’s.

Kuang found out the hard way because the first few times he tried to implement the right to appraisal on a repair, he stumbled. “I realized you have to document everything in detail and then have the information on-hand or the insurance company will always prevail,” he said. “They are just waiting for you to make a mistake, and they know that many body shops aren’t skilled at performing this process. They got me a few times on storage fees, but never again. The appraisal clause is great for shops and customers, but insurers hate it.” Just like he said at the CAA meeting, Kuang’s mantra is built on the concept the customer is the shop’s customer—not the insurer. But many shops forget that or ignore it. When a policyholder decides to opt for the appraisal clause, it sets in motion an arbitration process that starts where both parties hire their own independent appraisers, Kuang explained. If the two appraisers are not able to agree on a specific number, which happens most of the time, they have to get a third-party involved to review their findings and

conduct an additional inspection and assessment in many cases. If two out of the three agree, that number is final and can’t be appealed. Kuang has become highly adept at helping his customers navigate this tricky process and presents cases with a 99.99% success rate. “We cannot do it ourselves, but we can assist the customer because otherwise the insurance company will eat them alive—I’ve seen it,” Kuang said. “The insurer and the policyholder are the ones who have to pay for the arbitration, so sometimes, customers are reluctant to do it. But we convince them that this is the only way for them to get paid for a proper repair.” Initially, the appraisal clause was a system that worked well for shops who knew how to use it, but now it’s a little more complicated, Kuang said. “The problems began when the insurance industry figured out how to beat it, and today some insurers have changed the wording in their policies to the point where it nullifies the appraisal clause altogether,”

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he said. Kuang is a maniac when following OE repair procedures to the tiniest detail because he knows his estimate will likely be analyzed in detail by at least two more sets of eyes. Often, he produces short videos highlighting OE repair procedures and calling out parts and processes often missed. As a consultant, Kuang will enable more shops to use the appraisal clause and other techniques he has developed to get paid fairly on each and every repair. The insurance companies won’t likely appreciate his new role, but it’s never been a warm and fuzzy relationship anyway. “Once they saw I knew how to succeed using this system, they started steering customers away from me—it was pretty blatant,” Kuang said. “The insurance companies have a long list of things they won’t pay for, and they don’t like it when they are smarter than they are.” Kuang said he has big plans for his consulting company, and helping his shop clients to be smarter will be one of the first things he wants to achieve in 2022.

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Industry Insight with John Yoswick

Do Automakers, Insurers See Auto Body Shops Meeting Both DRP and OEM Certification Requirements?

Shop Showcase

A panel during the Collision Indus- companies adjusting the key perfortry Conference (CIC) in November mance indicators (KPIs) by which included representatives of two au- they are measuring direct repair with Ed Attanasio tomakers and two insurance compa- shops? nies addressing a topic that repairers In terms of cycle time and its and others discussed at a previous impact on customer satisfaction, CIC: can an auto body shop partic- Lindorfer said insurers aren’t lookipate both in direct repair and OE ing for shops to compromise repairs certification programs, and meet the to return vehicles faster. requirements of with both? Ed Attanasio “We still want safe repairs, and “I would never say that’s im- sometimes safe repairs take lonpossible, but it is very difficult at ger for whatever reason may cause times,” said Ben Cid, collision busi- that,” Lindorfer said. “We’re not ness manager for Mercedes-Benz. asking anybody to take a shortcut “There are shops that do it. When and not do what they should do.” you’re having to prove…why some- At the same time, she said, the thing needs to be done a certain way, growth of ADAS and other technolwith Ed Attanasio there’s a lot more time invested in ogy impacting repairs in late model doing that. Again, it’s not that it’s vehicles shouldn’t impact all claims impossible. But it definitely takes given the average age of vehicles on a lot more time on the shop’s side the road is 11 years. to really…prove what needs to be “Let’s remember that not evdone.” with Ed Attanasio ery car we repair is a new vehicle,” Sandee Lindorfer, auto line di- she said. “We need to be sure we’re rector at Allstate, said she sees it as repairing that vehicle, regardless less of a challenge. of age, appropriately. As the mar “We have many [OEM-certi- ket changes and we [see] more and fied shops] within our Good Hands more of the vehicles that are more Network,” she said. “Between our complex, we’re going to see that network and the OEMs, we have the KPIs are going to change. We’ll with Stacey Phillips more in common than we have dif- change with those KPIs.” ferences. At the end of the day, we She said Allstate has adjustboth want our customers to have a ed cycle time measures “over the safe and proper repair. I don’t think years because of the complexity of that [needing to offer] proof of re- repairs,” and good communication between shops and insurers will repair procedures with is as great [an issue] Stacey Phillips as it may have been in the past when solve issues about vehicles that are repair procedures weren’t easy to “out of the ordinary.” get your hands on.” “So I can’t speak for every in She said parts restrictions by surer; I can only tell you that we do the automakers are probably the reevaluate KPIs regularly,” Lindorfprimary area where there’s “friction er said. with Stacey Phillips Dan Tessadri, auto physical when a shop is trying to appease both the carrier and the OE.” When damage business consultant for those conflicts arise, she said, they CSAA Insurance, concurred. are addressed “case-by-case,” based “We look at the KPIs, at our on such things as “the contract that scorecards, on a yearly basis,” he we have with our customer” and said. “We look at the market and the state requirements. impact of the supply distribution and with Stacey Phillips “But there’s not too often that other factors like that.” we can’t come to some sort of agree- But panelist Pete Tagliapietra ment,” she said. of NuGenIT said those companies’ With CCC Intelligent Solutions practices don’t synch with what he and others documenting changes in sees in the auto insurance industry cycle time, “touch time,” parts costs as a whole. and other metrics, are insurance “When we look at scorecards

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and KPIs across the industry, some of those KPIs haven’t been updated in 10 years,” Tagliapietra said. “So repairers [on those programs] are being held to the same KPIs.” He also noted while the average vehicle may be 11 years old, the average age of repaired vehicles is between 6 and 7 years old. “That puts us at OBD-II and well into the new realm of technology as we know it today,” he said. “I think we need to consider that…You can’t look at KPIs based on the way we repaired cars in 1999, and hold [shops] to the same level, especially in terms of cycle time.” Aaron Schulenburg of the Society of Collision Repair Specialists also told the panel he’s always surprised and concerned when anyone suggests it’s not more challenging now than it’s ever been for shops trying to “appease both sides of the

Media and Publicity for Shops

equation” when it comes to automakers and insurers, saying that’s the crux of nearly “every single call that I get every single day.” He said he appreciated the automakers and insurers who at least took part in the panel discussion because the committee struggled to find people willing “to sit on the stage to talk about the things that really matter.” “There should be more who do,” Schulenburg said. “If they’re not willing to, there’s a bigger issue in this industry that’s leading to shops being stuck in the middle.”

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Continued from Page 31

Bistagne Bros. reau of Automotive Repair (BAR). My uncle was one of the first members of the California Autobody Association (CAA), back when the shops didn’t like each other at all. He told me stories about body shop owners who had to be seated apart from each other because otherwise they would get in fights.” Shop owners in Southern California no longer throw punches, but the market is still highly competitive. Now it’s more about insurance relationships and OE certifications, and the Bistange family has stayed in the game by simply following the rules Chuck Bistagne learned when he earned an economics degree from UC Irvine in 1977. “My father and my uncle told us that if you’re honest and do quality work, people will recognize it and be loyal customers for many years,” he said. “People appreciate good customer service and Glendale is a tight-knit community, so now we’re serving a lot of

third-generation customers, which is really satisfying!” One of the reasons why the shop has survived for 75 years is the fact each generation was ready

Leslie, left, and Chuck Bistagne, right, enjoyed an evening attended by 300-plus customers, business partners and employees both past and present.

to take over the reins when the time came. “Each one of us has the passion, and that’s why we’re still here,” Chuck Bistagne said. “My nephew Robert is 36, so he can be here for another 30 to 40 more years if he wants to. He loves restoring vehicles and he is hungry to learn everything he can, so I wouldn’t be surprised that there will be a 100th anniversary in 2046.” Robert Bistagne is the shop’s newest generation, entering an in-

dustry changing dramatically. “I am excited about what the future will hold for us,” he said. “My family built a great business and we have a stellar reputation, so I feel that it’s my responsibility to keep it going.” It’s a whole new game now, with ADAS, autonomous vehicles and a larger emphasis on OE repair processes, but the youngest Bistagne is poised and ready to perform. The cars will likely be driving into the shop for repairs and telling the techs where the damage is 25 years from now. The SEMA Show will be held on Mars and there will only be one enormous insurance company, but Bistagne Bros. will still be fixing cars in Glendale the right way, whether they’re driving, flying or swimming themselves. The Bistagnes published a commemorative book to remember their 75 years in business, with Robert Bistagne writing the foreword. “Celebrating a 75-year anniversary is a landmark that is not often experienced,” he wrote. “I am

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overjoyed to be a part of an organization that is fortunate enough to meet this milestone. Bistagne Bros. has always been a family business, but that means more to us than a name on the building. Through many decades of perseverance, Bistagne Bros. has become a family. Our goal is to make everyone who comes through our doors feel like they are part of our family; everyone should feel at home. “In our world, business relationships last decades, customer relationships span generations, and staff members stay until retirement. Within our walls, family always comes first,” the foreword continued. “As Bistagne Bros. celebrates our 75th year, we want to extend a very heartfelt thank-you for the friendship and continued support of our staff and customers who are at the heart of our family business.”

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 41

G&C Auto Body Donates 7 Cars to Continue Gene Crozat’s Legacy of Giving by Ed Attanasio

The late Gene Crozat of G&C Auto Body died in 2016, but his sons have taken his zeal for helping others to the next level, and giving cars to those in need is a big part of it. The company has now presented more than 200 vehicles to deserving individuals and families within the last 20 years and the number keeps climbing. On Dec. 16, seven deserving Sonoma, CA, area residents experienced a life-changing event thanks

The Crozat family has given away more than 200 cars to deserving families within the last 15 years. In this photo, Shawn Crozat talks to the crowd while his brother Pat looks on

to the National Auto Body Council (NABC) Recycled Rides® program, along with car donor GEICO, G&C Auto Body and automotive refinish coatings partner PPG. The presentation was held at the Sonoma County Event Center at the Fairgrounds in the Garrett Building. More than 200 people were in attendance. G&C Auto Body CEO Shawn Crozat is proud to continue his family’s legacy and knows his father would be smiling from ear-to-ear watching the presentations. “Dad had a huge heart and wanted to help as many people as he could,” Crozat said. “He used to tell us that we are in a position to help others, and it’s a role we’re obligated to play. When you think about the fact that more than 200 people are driving vehicles around in the North Bay that they got through G&C, that is pretty amazing!” Bill Garoutte, president and CEO of the NABC, is ecstatic about what G&C has achieved through its philanthropy over the years. “What an honor to be part of a tremendous event with an organization that provides such incredi-

ble support for the community,” he said. “To gift more than 200 cars to area residents in need is an amazing milestone, and to present seven in one day by G&C Auto Body is truly remarkable.” The seven recipients of completely refurbished vehicles included Stephanie, a single mom to two young children, who received a 2014 Honda Civic. Her partner of 15 years recently and unexpectedly passed away. Stephanie was in need of transportation to continue her journey of stabilization with her children after the loss of their father. Stephanie and her son are living in a transitional house as they actively look for a place to live. She heard about the Crozat Family Foundation and its benevolent giving from a person who recently received a vehicle through the foundation. Sue, a single mom, was presented with a 2016 Nissan Versa. She has been a single mom from the time her oldest was 3 years old. Now, she is the matriarch of a multigenerational household consisting of herself, her two adult daughters and her grandson. She owns a 1996 Toyota 4Runner with 300,000 miles and a blown head gasket and relies on her youngest daughter to drive her to work and her oldest daughter’s boyfriend to pick her up. She has been trying to save for another vehicle, but this gift of transportation will help her be able to get to work and not rely on others. Cheyanne, a mother of two, was gifted a 2017 Hyundai Sonata. She and two of her three children were living in Lake County, CA, when their house was deemed uninhabitable and they had to leave. They also had to leave behind their older model vehicle that had stopped running. Cheyanne said they left that house with the clothes on their backs and a few other personal items. She will use this car to help get her and her sons to medical appointments, and her youngest to school. Shannon, a mother of three, received a 2016 Hyundai Elantra. She and her kids lost the home they were

42 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

renting to wildfires in 2017. They have been living with Shannon’s parents since, but the home environment has become unhealthy for everyone and she is currently looking for a new place to live. Shannon had two older, unreliable vehicles, one of which was a 2006 Chevy Tahoe with 246,000 miles and was falling apart. Shannon currently holds one full-time job and two part-time jobs to cover living expenses. The gift of transportation will allow her to manage her children’s schedule and get to her jobs. Mike, a single dad, received a 2017 Toyota Camry. Since his separation, he has been trying to rebuild his life while keeping up with legal fees, fighting for his share of custody of the kids, working full time and juggling the kids’ extra-curricular activities. He drives a used truck he is struggling to afford. He was in need of reliable transportation so he can comfortably sell the truck he has a payment on without relying on friends and family for rides to maintain his job and his

children’s quality of life. Eva received a 2017 Volkswagen Jetta and will be using it to make her life easier. Clara, a mom of three, received a 2018 Nissan Altima. She and her husband, Kristopher, and their three children are a blended family trying to get by with a vehicle that has been overheating and is constantly breaking down. She is working full time as a security guard at Graton Resort and Casino, while Kris has been staying home with their youngest son until he recovers from a recent surgery. Once all the follow-up doctor visits are completed, Kris will get back into the work force. The new vehicle will allow them to more effectively manage family life, jobs and medical visits. In addition to the vehicles, each recipient also received six months of full vehicle coverage from GEICO and six months of gas gift cards, six months of grocery gifts cards and $100 Target gift cards for each child See Legacy of Giving, Page 45

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 43

GM Begins Deliveries of GMC HUMMER and BrightDrop EVs A new era begins Dec. 17 for General Motors with the deliveries of its first next-generation electric vehicles, the GMC HUMMER EV Edition 1 Pickup and BrightDrop EV600 light commercial vehicle, both built on the Ultium Platform. This dedicated EV architecture and propulsion system is the foundation for GM’s all-electric future, giving the company the capability not only to build an entire retail and commercial portfolio, but also leverage the technology to expand its business to non-automotive applications. With 30 all-new EVs planned globally through 2025, two-thirds of which will be available in the North America, Ultium will be the key driver of GM’s expansion and next phase of growth. “This is the first chapter for Ultium—and for GM’s transition to a zero-emissions future,” said GM President Mark Reuss. “Both commercial and retail customers will benefit from the EV experience, from exhilarating acceleration to low cost of operation, versatility and ability to customize after the sale. GM is ideally positioned to provide EVs for every customer in every segment, retail or commercial.”

The Ultium Platform will: Enable GM to make nearly every type of vehicle—across its different brands and up and down the portfolio—by building everything from affordable, high-volume crossovers and passenger cars to full-size pickups and SUVs, performance and commercial vehicles. Feature competitive range, performance and overall customer-friendly integration of components compared to designs that retrofit electric propulsion systems to existing internal combustion vehicle frameworks. Greatly reduce proliferation of parts combinations used in today’s internal combustion lineups, helping enhance EV profitability. Enable mobility beyond GM’s own portfolio through third-party licensing of its EV technology, co-development agreements and partnerships.

Albert Kemperle, Inc. Joins Wesco Group

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Wesco Group, a leading paint, body and equipment distributor in the western U.S. and Canada, is pleased to announce Albert Kemperle, Inc. has joined the Wesco family of companies. Kemperle Auto Paint, Body & Equipment was founded by Albert and Mary Kemperle, who opened its first store in Brooklyn, NY, in 1940. Over the decades, generations of founding family members continued to expand that single store into more than 50 locations in the eastern U.S. Ronald Kemperle has joined Wesco as a principal partner and will continue to guide the group in the eastern U.S. The combined Wesco family of companies, which includes Wesco, Color Compass and Kemperle, is one of the largest privately-held PBE distributors in North America, servicing customers from more than 118 stores, 13 distribution centers, 12 equipment divisions and 11 training centers. Source: Wesco Group

GMC HUMMER EV The Ultium Platform also helps GM innovate in core areas like the interdependent body frame and battery structure of its all-new EVs. The GMC HUMMER EV Pickup’s combined battery pack and body

structure allows outstanding off-road proportions, strong protection of the vehicle’s battery, which doubles as a stiffening member of the body, and enough stability to enable features like removable Infinity Roof panels that would have been difficult to achieve on a conventional pickup. BrightDrop EV600 In addition to enabling dynamic allnew vehicles like the GMC HUMMER EV off-road supertruck, Ultium is helping GM to grow its business in new ways. BrightDrop, the new tech startup from GM, is on a mission to reimagine commercial delivery and logistics for an all-electric future through products like the EV600 light commercial vehicle. Ultium will allow BrightDrop to rapidly accelerate toward electrifying last-mile delivery and reduce vehicle emissions while also helping other companies meet their sustainability targets. BrightDrop is delivering its first EV600s to FedEx beginning Dec. 17, moving from concept to market introduction faster than any other GM vehicle in history.

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Ultium Ship-To-Commerce Factory ZERO in Detroit and Hamtramck, MI, will assemble multiple Ultium-based vehicles, including the fully autonomous Cruise Origin purpose-built for driverless ride hail and delivery, the GMC HUMMER EV Pickup and SUV, the Chevrolet Silverado EV and the recently announced GMC electric Sierra Denali. GM continues to expand and reimagine its manufacturing and development footprint, bringing together high-scale vehicle production expertise established over more than a century and passion to become a leading technology company. More than $4 billion has been invested specifically in EV production and another nearly $5 billion has been spent on battery cell manufacturing targeting at least 140 gigawatt hours of cell-making capacity in the U.S. GM’s next Ultium-based vehicle, the Cadillac LYRIQ, is expected to launch as scheduled in the first half of 2022 and will be assembled in Spring Hill, TN. The Chevrolet Silverado EV officially debuts in January at CES. Source: GM

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Continued from Page 42

Legacy of Giving to help make Christmas a little easier—all courtesy of G&C Auto Body and the Crozat Foundation. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. The late Gene Crozat started the Crozat Family Foundation in 2004 and it’s still going strong. He used to like to say, “It is our responsibility to help our fellow men.” It started as a “Car-A-Month Giveaway” on various local radio stations and has grown into a foundation that provides support to the individuals and families they encounter when they meet through the company’s various car giveaways, accord-

ing to the foundation’s website. There have been a few setbacks for the Crozat family since they lost their patriarch, but the business is still growing. Since Gene’s passing, the Crozat family has lost seven of their homes, which burned to the ground in two separate fires, including the house they all grew up in. One thing Gene taught his four children—Shawn, Josh, Jamie and Patrick—and his beloved granddaughter, Maddy, is to make helping people a priority. Crozat took philanthropy to the next level, giving people cars, cash and even jobs at one of his shops in some instances. The company has given away approximately 200 cars since it started the “Car-A-Month Giveaway” nearly two decades ago. “We hope to help the recipients get back on the road of life, giving a reliable ride and additional support to those who have fallen upon misfortune or endured catastrophic, unforeseen events,” Gene Crozat said when he established the program. “We strive to help create success where failure may have seemed inevitable.”

Collision Engineering Program Gets Grant The Collision Engineering Program has received a $700,000 grant from ECMC Foundation to support the growth and expansion of the industry-leading program’s efforts. With foundational support provided by the Enterprise Holdings Foundation, the program is designed to attract and develop entry-level talent to fill essential roles within the collision repair industry and enhance retention and advancement.With nearly 100,000 new entrant collision technicians needed between 2021 and 2025, according to the TechForce Foundation, the Collision Engineering Program addresses the ongoing technician shortage and skills gap. The program replicates Ranken Technical College’s unique two-year apprenticeship model at schools across the U.S., preparing students for success by treating them as professionals from day one. Students gain real-world education working alongside industry experts while also earning their associate degree. Source: Enterprise Holdings

Continued from Page 34

Island Concepts Stogdell has noticed since the pandemic is parts availability. “That’s really been a struggle for shops, to get parts in a timely manner because everything is on national backorder,” he said. “The problem is that you drive by a shop and there are a lot of cars but when you look closely, more than three quarters of the vehicles are torn down waiting on parts.” Another big challenge is the technician shortage. Stogdell said Island Concepts is encouraging mentoring programs in the shops they work with to help address this. “You don’t need an A tech to work with an entry-level kid,” he said. “You want a good solid B technician so he or she can start the migration where he becomes the A tech, the guy he seasoned is the B tech and then you bring up the next tech. If we can get those kind of establishments going on in a shop, then the shop becomes viable in itself.”

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 45

Energy Commodity Prices Increased by 59% in 2021, EIA Reports by Bethany Blankley, The Center Square

The prices of energy, crude and gasoline all increased in 2021 from 2020, the U.S. Energy Information Agency reported. Prices increased because of higher demand and a range of other factors. By the end of 2021, commodities on the energy index traded 59% higher than they did on the first trading day last year on the S&P Goldman Sachs Commodity Index (GSCI), the EIA reported. GSCI is a commodity index that tracks the performance of global commodities markets. It’s a weighted average that’s updated every year. In 2021, the energy index comprised 54% of the GSCI, with the two crude oil benchmarks, the West Texas Intermediate (WTI) and Brent, accounting for approximately 70% of the energy index. WTI crude oil accounts for the largest share of the overall GSCI of more than 21%. Most GSCI commodity indexes increased by roughly 20%, with only the precious metals index declining in 2021. On a percentage basis last year, the energy index increased by more than double than the industrial metals index did. The only GSCI commodity

Advantage Parts Solutions Appoints Executive Advantage Parts Solutions, a global leader in delivering strategic automotive parts solutions, is pleased to welcome Paul Gange as president of North America to its global team of executive leadership. Gange joins the organization to accelerate the brand’s global sales and marketing strategy and vision throughout North American markets. Gange, a seasoned industry executive, joins as Advantage’s president of North America. In his role, he is responsible for the company’s operations throughout Canada and the U.S. Over his 25-year career, Gange held various executive roles, most notably as president and CEO of Fix Auto USA and with Mitchell International, an Enlyte company, and Audatex, a Solera company. He is an accomplished keynote speaker at many U.S. and international events and has held several advisory board roles with information providers, insurers and various industry organizations. Source: Advantage Parts Solutions

that increased more than the energy index was coffee. Prices for petroleum products RBOB and ULSC increased the most in 2021, trading higher by 67% and 64%, respectively, compared to 2020. RBOB is a reformulated grade of gasoline used as the benchmark for gasoline trading; ULSD is ultra-low sulfur diesel used as a benchmark for heating oil trading. Prices for crude oils on the WTI and Brent increased slightly less, by 62% and 55%, respectively, in 2021. Several factors contributed to the higher energy commodity prices last year, the EIA noted, including weather disruptions such as the February freeze in Texas and Hurricane Ida, which greatly impacted production in the Gulf. Other factors included increased demand for gasoline and diesel and an ongoing demand for crude oil and natural gas greater than the rate of production. Crude oil prices increased in 2021 with the spot price of Brent crude trading at $50 a barrel at the beginning of the year, increasing to $86 a barrel by late October. The 2021 Brent annual average of $71 a barrel was the highest it had been in the past three years. The

WTI’s average was $3 a barrel less than Brent’s in 2021. According to EIA’s December 2021 Short-Term Energy Outlook estimates, U.S. crude oil production in 2021 decreased by 0.1 million barrels a day from 2020 and by 1.1 million barrels a day from 2019. The EIA also estimated petroleum inventories decreased by 469 million barrels globally in 2021, “likely the largest annual inventory withdrawal since 2007.” Rising crude oil prices and increased gasoline demand also contributed to the highest national average price for retail gasoline since 2014. The national average increased to $3.01 a gallon in 2021, with retail gasoline increasing by more than a dollar a gallon over the course of the year. At the beginning of 2021, the national average retail gasoline price was $2.25 a gallon. It then passed the $3 a gallon mark on May 17 after disruptions to the Colonial Pipeline. Gas prices continued to increase throughout 2021, with the average price peaking at $3.41 a gallon Nov. 8. The average retail price was $3.28 a gallon by the end of the year, more than a dollar more than it was at the start of the year, EIA reported. The lowest average of $2.67

a gallon was in the Gulf Coast states, with Texas reporting some of the lowest gas prices all year. The highest average of $3.70 a gallon was on the West Coast, with California reporting some of the highest gas prices. From Jan. 4 to Dec. 27, 2021, retail gasoline prices increased by 88 cents a gallon in the Midwest, $1.20 a gallon in the Rocky Mountains and $1.32 a gallon on the West Coast, the EIA reported. The spike in prices in the Rocky Mountains and West Coast resulted from refinery closures in those regions, which led to reduced output of gasoline and lower gasoline inventories, the EIA noted. Less production was compounded by the fact that demand increased due to more visitors traveling to national parks, also putting a strain on already lower gasoline inventories, causing prices for delivery and prices at the pump to go up. One major contributor to high retail gasoline prices last year was high crude oil prices, the EIA pointed out. The average crude oil price for 2021 was the highest it has been since 2018, due to reduced U.S. refinery capacity, and low gasoline inventories that couldn’t keep up with demand.

Tesla to Recall 356K Model 3 Cars with Malfunctioning Rearview Cameras by Joey Klender, Teslarati

Tesla is recalling more than 356,000 Model 3 vehicles based on potential issues owners may encounter with the rearview camera cable, which could be damaged when the trunk is closed. This can cause the camera to malfunction, documents state. The recall applies to 356,309 units, according to a Safety Recall Report shared with Teslarati by the NHTSA. Only 1% of the vehicles recalled are expected to have the defect, the documents state. It applies to Model 3 sedans manufactured between July 15, 2017, and Sept. 30, 2020. “The Model 3 trunk harness is equipped with a solid core coaxial cable that provides the rearview camera feed for visibility on the center display. Over time, repeated opening and closing of the trunk lid may cause excessive wear to the coaxial cable. If the wear causes the core of the coaxial cable to separate, the rearview camera feed is not visible on the center display,” the NHTSA’s description of the defect states.

46 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The agency said excessive damage to the coaxial cable can cause the unavailability of the rearview camera. This risk “may affect the driver’s rearview and increase the risk of a collision. If there is a

Credit: u/Mr_Tank on Reddit

loss of rearview camera display, the driver can continue to operate the vehicle by performing a shoulder check and using their mirrors when backing,” the NHTSA added. It appears the damage to the coaxial cable is caused by a harness on the trunk lid, which extends or folds as the trunk opens or closes. While the trunk is in its closed position, the harness can fold and experience a tight bend radius over an extended period, “stressing the core

of the cable.” Owners can observe visible material wear on the harness to see if their car is affected. The wear can cause flickering or intermittent rearview camera visibility on the center display. The issues were first observed by the Field Quality team, which observed “a potential trend in trunk harness consumption in Service and initiated an engineering study.” The recall determination was made Dec. 14, after the investigation came to a close Dec. 10. The NHTSA observed 2,301 warranty claims and 601 field reports related to this malfunction between October 2017 and December 2021. Tesla is not aware of any crashes, injuries or deaths due to the malfunction. This is the third recall on the Model 3 in 2021, the first two being related to seatbelt and brake caliper bolt issues. It is the second recall Tesla issued Dec. 30, the other relating to a frunk hatch on the Model S sedan. Both recalls will be repaired by Tesla free of charge, the company said.

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autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 47

Collision Repair Industry Thought Leaders Share Innovative Ideas During IDEAS Collide Showcase: Part 2 by Stacey Phillips

Total losses, the Database Enhancement Gateway, computer vision and sustainability were some of the topics discussed during the IDEAS Collide Showcase held during the 2021 SEMA Show. First introduced in 2018 by the Society of Collision Repair Specialists (SCRS) as part of its Repairer Driven Education (RDE) series, IDEAS Collide gives thought leaders from across the collision repair industry the opportunity to share innovative ideas. This year, eight speakers talked about creative ways to help the industry evolve. This is part two of a twopart series. Part one was printed in the January 2022 issue of Autobody News.

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA).

Sandy Blalock, executive director of the Automotive Recyclers Association (ARA), talked about the shared challenge the industry is facing with an increase in total losses. She hopes the different segments can generate thought-provoking ideas on how to make meaningful changes. “No matter what side of the issue we are, there is a consumer who has suffered a loss and it’s our collective job to find a way to make them whole again,” said Blalock. “Jeff Peevy [previous CIC chairman] will always remind us never to forget that empty chair; we all serve the consumer.” Blalock said total loss frequency has been rising over the last several years in the U.S. According to CCC Intelligent Solutions’ 2021 Crash Course report, 20.5% of vehicles were deemed total losses in 2020. “This means that shops missed out on the chance to repair one in every five vehicles,” said Blalock. This is up from 15% in 2010. The average totaled vehicle in 2020

had an actual cash value of $10,444; the average repairable vehicle was worth $16,657. In addition, repair costs have also risen. As insurance adjusters determine whether a vehicle is repairable or declared a total loss, Blalock said a number of factors weigh into the decision, including supplements and parts availability. With more electric vehicles and cars with ADAS coming into collision repair facilities, Blalock said scanning and calibration will be required, adding additional costs to the repair and determining whether the car is a total loss. Repair vs. replace and salvage values will also play a role. She shared some of the downsides to total loss, including the consumer owing more on the vehicle than it’s worth and fewer vehicles being fixed by the professional repair industry and auto recyclers. “Total loss does not mean endof-life for a vehicle,” she said. “Repaired vehicles will be repaired by someone.” From her research, Blalock has found as many as one out of 325 vehicles on U.S. roads today may be operating with a fraudulent title that has been “washed” to disguise the vehicle’s actual damage, flaws or identity. Research shows one in five vehicles sold outside of licensed dealer networks are not legal private property car sales, but are illegal sales of curbstoned vehicles. “Curbstoning is essentially a flipping of vehicles often posing as a private seller,” she explained. “Many of these vehicles have been purchased at salvage auctions by unlicensed entities, repaired and usually not to any industry standard, then sold to some unsuspecting consumer looking for a good deal.” Blalock advises the industry to be aware of these issues and work together to come up with ways to address them. As the administrator for the Database Enhancement Gateway (DEG), Danny Gredinberg shared information about the free industry resource.

48 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com

The DEG was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the collision repair industry and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating products. It is created, equally funded and maintained by the Alliance of Automotive Service Providers (AASP) and SCRS.

Danny Gredinberg, administrator for the Database Enhancement Gateway (DEG).

With today’s estimating databases being large and complex, the task of building complete and accurate labor times and labor notes for vehicles can be challenging. All three information providers use a variety

of methodologies to develop labor values. Gredinberg said this can often result in information that does not reflect real-world labor requirements of a repair operation. As a result, it can hinder the ability of an estimator to produce accurate repair estimates or blueprints that match the repair process. The DEG is designed to offer estimating system users a more standardized and streamlined process for generating Database Inquiries (DI). “It can help anyone to improve an estimate whether it’s a repairer, technician or even a bill payer,” said Gredinberg. “If they find an error in omission or accuracy in any of three estimating systems, we can help address those concerns and get accuracy.” As the DEG administer, Gredinberg receives a lot of inquiries. One of the biggest challenges he sees is when a repairer writes an estimate in one database program and receives an insurance company estimate from

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another database program and nothing matches. “The reality is that we’re never going to get an exact result from three different database products,” said Gredinberg. “They all talk differently and have different logic and P-pages. They will never line up to each other.” He said it’s the estimator’s job to understand the system they are using in order to explain and justify the estimate to the vehicle owner.

Pete Tagliapietra, product director at NuGen IT, an OEC Company.

Gredinberg encourages repairers to talk to vehicle owners on the front end, use the estimating system the way it is intended, and capture all of the included and non-included items. “At the end of the day, the goal is for the consumer to get their vehicle fixed with the least amount of

friction possible,” he said. Gredinberg strongly encourages the industry to share any database by submitting a database inquiry: https:// degweb.org/deg-database-parent/ submit-a-database-inquiry. Pete Tagliapietra, product director at NuGen IT, an OEC Company, talked about leading-edge technologies, such as machine learning, computer vision, robotics automation and artificial intelligence (AI). “What’s unfortunate to me is how these technologies seem to be left behind as far as collision repairers are concerned,” said Tagliapietra. He challenged collision repairers to think outside of the box. Tagliapietra shared an idea of using these technologies to capture images of a damaged vehicle and immediately access all of the OEM information required by a collision repairer to repair it. In the current environment, Tagliapietra said repairers have access to individual OEM repair information through the manufacturers’ websites. However, each OEM has its own format, and repairers often don’t know what to look for and where to

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find it. Alternatives include accessing information through OEM 1Stop; a third-party provider, such as ALLDATA or Identifix; or via estimating systems repair lines. He talked about the possibility of accessing OEM repair information via computer vision. In this scenario, digital images of the vehicle damage would be uploaded to a computer vision central server. Once the images are analyzed, a collision shop could have the information available through the OEM website or a third-party provider within seconds. “The premise of the idea is to give collision repairers all of the information needed to create a complete blueprint of the automobile before the estimate is written,” explained Tagliapietra.

Michael LoPrete, vice president of global operations at Plastfix Inc.

In addition, reporting capabilities would be available. “Over time, you would be able to look at a certain year, make and model and understand what repair procedures are typically being used to repair that vehicle.” Tagliapietra said all of this is possible with the technology available today. “When you look at all of the different repair information opportunities, none of them bring all of the information that you need as a collision repairer to have access to them,” he said. By using computer vision, Tagliapietra said collision repairers would immediately know all of the necessary repair procedures to include if a pre-and post-scan is required, as well as a recalibration. They would also have access to manufacturers’ position statements before writing the estimate and repairing the vehicle. He encourages the industry to leverage the same technology used by other industries, such as insurance. “Dreaming big is something we need to do in this industry,” said Tagliapietra. “Otherwise, we’ll fall behind and, in some cases, fall further

behind.” Michael LoPrete, vice president of global operations at Plastfix Inc., talked about sustainability and the future impact on collision repairers. LoPrete shared a broad definition of sustainability, which he described as meeting the needs of the present without compromising future generations’ ability to meet their needs. “I think about sustainability as a journey to a place where we are able to complete vehicle repairs while eliminating all of our current waste streams,” said LoPrete. “I don’t think that there is a point that we’ll ever be finished.” He shared what he referred to as the 3R’s of sustainability, in order of importance: reduce, reuse and recycle. Examples of reduce include repairing something rather than replacing it, and conducting online training rather than incurring travel time. Reuse also refers to repair vs. replace, and LoPrete used the example of purchasing a new cell phone as soon as it is introduced, even if a person’s current device is working perfectly well. Recycling is often the first thing that comes to mind when people think of sustainability, but LoPrete said it has the smallest impact on sustainability initiatives. He introduced the term “recoverability,” which he described as an item that has the capability of being recycled and then converted to a new product of the same type, such as glass or aluminum. “The recoverability rate on those items is nearly 100%,” he said. With plastics, recoverability is less than 5% and includes specific products such as water and soda bottles. The automotive aftermarket is reportedly the No. 2 generator of polypropylene waste globally and recoverability is close to 0%. LoPrete said green consumers are driving the increased awareness of sustainability, and Greta Thunberg is a leading spokesperson for Generation Z. “Generation Z looks at the world through the lens of the sustainability triple bottom line, which includes economy, environment and society,” he said. “Every decision they make tends to have filters that pass through all three of those things.” Many say Generation Z is de-

autobodynews.com / FEBRUARY 2022 AUTOBODY NEWS 49

manding industries be more responsible and accountable for their actions. “The ones who do it in a meaningful way are positioning their businesses well to move forward,” he said. “The ones who delay taking action will have to catch up eventually because that segment of the population is only going to become a larger and larger piece of the audience out there.” Moving forward, LoPrete encourages industry stakeholders to work together and make sustainability part of their strategic thinking to reduce the amount of waste being generated while still producing safe repairs. “While we can do things individually that will make a difference, the reality is that the greatest impact will come if we work together,” he said. “Sustainability needs to be a topic of discussion; it can’t be left undiscussed.” He challenged the industry to do the following: • Make sustainability an agenda item during meetings • Appoint a subject matter expert

within your organization • Track and record your current waste and look at trends • Identify pathways for improvement • Involve other stakeholders in your conversations • Share initiatives broadly across your organization “If we begin thinking about sustainability from this perspective, we can make progress that will shape legislative actions, rather than being subjected to requirements from outside of our industry,” said LoPrete. “There will be winners and losers across the stakeholder chain. The green consumer will make sure that happens. They will support the ones that make the right choices.” Learn more about the SCRS Repairer Driven Education series: https://rde.scrs.com.

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Rivian Ends 2021 with 1,015 Vehicles Produced, COO Retires from Company by Simon Alvarez, Teslarati

In a recent press release, Rivian announced it had officially produced a total of 1,015 vehicles by the end of 2021, 920 of which were delivered before the end of the year. The update comes as news emerged the company’s chief operating officer, Rod Copes, had retired from Rivian in December. Considering Rivian has only just started delivering its first vehicles like the R1T pickup truck, R1S SUV and its Amazon delivery van, the company’s 1,015 deliveries in 2021 is nothing to scoff at. Rivian announced before the end of the year it would likely fall “a few hundred vehicles short” of its 2021 vehicle production target, which was set at 1,200 units. The recent updates—particularly the departure of Copes— appear to have adversely affected RIVN stock. Rivian shares dropped about 2.3% in premarket trading on Jan. 11 as news of the COO’s departure spread online. As of writing, Rivian shares are trad-

ing at $80.93 per share, far below its all-time high in November when RIVN traded at nearly $180 per share, but still enough to give the company a market cap of more than $71 billion. The departure of Copes was extremely understated. While a company spokesperson told The Wall Street Journal the executive’s departure had been planned for months and his duties had already been absorbed by Rivian’s leadership team, there had been no press release announcing the retirement when Copes left in December. Rivian will likely have its hands full in 2022. The company is expected to ramp the production and deliveries of the R1T and the R1S. Deliveries of its Amazon electric delivery van are expected to increase as well. The electric truck market is also poised to become more competitive this year, with vehicles like the Ford F-150 Lightning and possibly the Tesla Cybertruck starting their customer deliveries sometime in 2022.

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Volkswagen will Launch EV Bus on ID. Platform March 9 German automaker Volkswagen will launch an all-electric take on its famous microbus from the 1950s on March 9. The all-electric Volkswagen ID.BUZZ will be the latest edition to the automaker’s expanding fleet of electric cars.

“We want to make Volkswagen the most desirable brand for sustainable mobility. The ID. BUZZ embodies this like hardly any other model,” VW brand CEO Ralf Brandstätter said. The ID.BUZZ will, of course, use Volkswagen’s MEB platform that has powered vehicles like the ID.3 and ID.4, which

Volkswagen Auto Group CEO Herbert Diess tweeted Jan. 6 that “The Legend returns on 03/09/22!” The graphic then showed an outline of the all-electric VW ID.BUZZ, which will be officially unveiled in about two months.

have been widely popular in the European region. Details regarding the vehicle are relatively scarce; Volkswagen didn’t offer an official press release or any media attention other than the listed tweets to give direction to the

by Joey Klender, Teslarati

vehicle’s imminent unveiling. We do know the vehicle will be released in the U.S. in 2023. Pricing options are not currently available, and there are no indications of how many trims or configurations Volkswagen plans to offer. However, writers at automotive publication Car and Driver believe the van could start at around $40,000. Volkswagen has made a valiant effort the past few years to expand its lineup of all-electric vehicles. Instead of pushing EVs out on a non-dedicated platform, as it did with the VW e-Golf, Volkswagen began developing the ID. platform several years ago. It had its kinks early on, but Diess has stressed the importance of software in the coming age, along with the crucial nature of an accelerated push to electrification. It has not won Diess many fans involved with German unions, but it has helped the automaker remain relevant as Tesla leads the industry, and other legacy companies, like Ford, continue to advance their platforms and product lines to be more competitive.

BMW’s New Car Changes Color ‘With the Touch of a Button’ by Grant Currin, Interesting Engineering

Personalization and self-expression are turning out to be major themes at CES 2022. BMW’s big announcement Jan. 5—a technology that changes the color of a car with the touch of a

duction model of the iX Flow will be available soon, but vehicles with color-changing paint won’t be hitting showroom floors at car dealerships for quite a while—if they ever do. BMW described the chameleon-like exterior as an “advanced research and design project.”

A concept version of BMW’s iX Flow with color-changing paint. Credit: Interesting Engineering

button—shows the storied German automaker understood the assignment. The company unveiled the tech on a concept version of its new 100% electric iX Flow SUV. A pro-

The color-changing paint is a new, flashy application of a familiar technology. Electronic ink, which enables the “electric paper” technology that powers e-readers like Amazon’s Kindle, drives the paint

BMW unveiled Jan. 5. The ink is impregnated with microcapsules, about as thick as a human hair. White pigments within these microcapsules are negatively charged, and black pigments carry a positive charge. Input from the user shifts the electric field around the capsules, nudging some of the pigments to the surface where they change the color of the paint. The technology is currently available in black, white and a few shades of gray. “This [technology] gives the driver the freedom to express different facets of their personality or even their enjoyment of change outwardly, and to redefine this each time they get into their car,” according to Stella Clarke, who led the project within the company. BMW also pointed to more practical applications. Since white paint reflects light, it could keep interiors cooler in hot weather, reducing the amount of energy needed for air condition. Black, on the other hand, absorbs light and could reduce the amount of power needed to keep a vehicle comfortably warm.

Boyd Group Completes CEO Plan Boyd Group Services Inc. on Jan. 4 announced the completion of its CEO succession plan, first announced in August 2019. Effective Jan. 2, 2020, Brock Bulbuck moved into an executive chair role, and Tim O’Day succeeded Bulbuck and became president & CEO. Bulbuck remained in the position of executive chair for a two-year term to support the transition. On Dec. 31, this term came to an end. Bulbuck will remain a part of Boyd Group Services Inc. as he continues to serve as a director on the board. “I would like to acknowledge Brock’s retirement from management at Boyd,” said O’Day. “Brock’s dedication and drive during his 28 years at Boyd were instrumental in building the business and consistently achieving the company’s growth goals.” Source: Boyd Group Services Inc.

ASE Celebrates 50th Anniversary The National Institute for Automotive Service Excellence (ASE) has kicked off a yearlong celebration of its growth and many milestones achieved since its founding in 1972 by industry leaders who sought to recognize competent professional technicians and the repair facilities where they are employed. For half a century, ASE has worked to improve the quality of vehicle repair and service by testing and certifying automotive professionals, becoming the renowned independent non-profit organization striving to uphold and promote high standards of vehicle service and repair. From its initial offering of four automobile tests in 1972, ASE today offers 57 tests and certifications from automobile and medium-heavy truck to transit and school bus, collision repair, parts, military and others. More than a quarter of a million individuals currently hold ASE certifications in these areas of the transportation industry. Source: ASE

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February 2022 West Edition

Articles inside

COO Retires from Company��

Collide Showcase: Part 2 ��

with a Big Party, LA Style��

to Hit 100 in 21 Years��

Hawaii to Support Collision Repair Industry ��

Estimating ‘Not There Yet’��

Collision Engineering Program Gets Grant ��

Insurance Adjusters of the Future ��

and OEM Certification Requirements?��

‘Cheap’ Volkswagen ID�4 Coming ‘in the $35,000 Range’��

February 2022 West Edition

Articles inside

COO Retires from Company�������������������������

Collide Showcase: Part 2 ����������������������������

with a Big Party, LA Style����������������������������

to Hit 100 in 21 Years����������������������������������

Hawaii to Support Collision Repair Industry ��

Estimating ‘Not There Yet’���������������������������

Collision Engineering Program Gets Grant �������

Insurance Adjusters of the Future ���������������

and OEM Certification Requirements?���������

‘Cheap’ Volkswagen ID�4 Coming ‘in the $35,000 Range’�������������������������������������������

COO Retires from Company��

Collide Showcase: Part 2 ��

with a Big Party, LA Style��

to Hit 100 in 21 Years��

Estimating ‘Not There Yet’��

Collision Engineering Program Gets Grant ��

Insurance Adjusters of the Future ��

and OEM Certification Requirements?��

‘Cheap’ Volkswagen ID�4 Coming ‘in the $35,000 Range’��