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

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

A panel during the Collision Industry Conference (CIC) in November included representatives of two automakers and two insurance companies addressing a topic that repairers and others discussed at a previous CIC: can an auto body shop participate both in direct repair and OE certification programs, and meet the requirements of both?

“I would never say that’s impossible, but it is very difficult at times,” said Ben Cid, collision business manager for Mercedes-Benz. “There are shops that do it. When you’re having to prove…why something needs to be done a certain way, there’s a lot more time invested in doing that. Again, it’s not that it’s impossible. But it definitely takes a lot more time on the shop’s side to really…prove what needs to be done.”

Sandee Lindorfer, auto line director at Allstate, said she sees it as less of a challenge.

“We have many [OEM-certified shops] within our Good Hands Network,” she said. “Between our network and the OEMs, we have more in common than we have differences. At the end of the day, we both want our customers to have a safe and proper repair. I don’t think that [needing to offer] proof of repair procedures is as great [an issue] as it may have been in the past when repair procedures weren’t easy to get your hands on.”

She said parts restrictions by the automakers are probably the primary area where there’s “friction when a shop is trying to appease both the carrier and the OE.” When those conflicts arise, she said, they are addressed “case-by-case,” based on such things as “the contract that we have with our customer” and state requirements.

“But there’s not too often that we can’t come to some sort of agreement,” she said.

With CCC Intelligent Solutions and others documenting changes in cycle time, “touch time,” parts costs and other metrics, are insurance companies adjusting the key performance indicators (KPIs) by which they are measuring direct repair shops?

In terms of cycle time and its impact on customer satisfaction, Lindorfer said insurers aren’t looking for shops to compromise repairs to return vehicles faster.

“We still want safe repairs, and sometimes safe repairs take longer for whatever reason may cause that,” Lindorfer said. “We’re not asking anybody to take a shortcut and not do what they should do.”

At the same time, she said, the growth of ADAS and other technology impacting repairs in late model vehicles shouldn’t impact all claims given the average age of vehicles on the road is 11 years.

“Let’s remember that not every car we repair is a new vehicle,” she said. “We need to be sure we’re repairing that vehicle, regardless of age, appropriately. As the market changes and we [see] more and more of the vehicles that are more complex, we’re going to see that the KPIs are going to change. We’ll change with those KPIs.”

She said Allstate has adjusted cycle time measures “over the years because of the complexity of repairs,” and good communication between shops and insurers will resolve issues about vehicles that are “out of the ordinary.”

“So I can’t speak for every insurer; I can only tell you that we do reevaluate KPIs regularly,” Lindorfer said.

Dan Tessadri, auto physical damage business consultant for CSAA Insurance, concurred.

“We look at the KPIs, at our scorecards, on a yearly basis,” he said. “We look at the market and the impact of the supply distribution and other factors like that.”

But panelist Pete Tagliapietra of NuGenIT said those companies’ practices don’t synch with what he sees in the auto insurance industry as a whole.

“When we look at scorecards 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

Shop Showcase equation” when it comes to automakers and insurers, saying that’s with Ed Attanasio 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 Social Media for Shops because the committee struggled to find people willing “to sit on the with Ed Attanasio 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 isSEMA Show Goes On sue in this industry that’s leading to shops being stuck in the middle.” with Ed Attanasio Media and Publicity for Shops with Ed Attanasio Shop Strategies with Stacey Phillips Body Shops Giving Back with Stacey Phillips Tips for Busy Body Shops with Stacey Phillips My SEMA with Stacey Phillips Shop Strategies with Victoria Antonelli FOLLOW US ON TWITTER: @autobodynews

310.221.9101 310.507.8595 Fax 22020 Recreation Rd Mon-Sat 7am-7pm Carson, CA 90745 Sun 8am-5pm

• Genuine Kia OEM Parts • Fast Free Delivery

The Right Part Makes the Difference. www.KiaofCarson.com Kia of Carson Serving Southern California

• Efficient Service on All Orders • Find Us On:

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

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 industry 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 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.”

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

FREE

4x Monthly E-Newsletter. Subscribe Today! www.autobodynews.com

SO. CALIFORNIA NO. CALIFORNIA

Kearny Mesa Subaru

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

Elk Grove Subaru

Elk Grove (877) 475-0659 (916) 509-8559 Fax Mon.-Fri. 8-6 shawnh@elkgrovesubaru.com www.elkgrovesubaru.com

Subaru of San Bernardino

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

Think Genuine Subaru Parts.

San Bernardino (909) 888-8686 (909) 571-5483 Fax Mon.-Fri. 7:30-7; Sat 7:30-5 parts@subarusb.com www.sbsubaru.com

Santa Cruz Subaru

Santa Cruz (888) 844-7131 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

We’re focused on getting you the Genuine Subaru Parts you need — fast and competitively priced. Put us to the test on your next Subaru repair or service job.