February 2023 West Edition

Romans Group Releases 2021 Profile of the Collision Repair Marketplace

The Romans Group announced its 16th annual white paper, A 2021 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace, is now available.

The pinnacle year for the collision repair industry was 2019, with an alltime high total addressable market (TAM) of $38.3 billion. Repair facilities were flush with repairable vehicles and had the manpower and parts to service the demand.

The recovery years of 2021 and 2022 were and continue to be awkward and choppy, as the collision repair industry attempts to bounce back within the constructs of numerous macro industry challenges and opportunities, U.S. economic and geo-political headwinds despite the many post-pandemic recovery advances within the collision repair

industry and throughout the broader interconnected auto physical damage landscape.

In 2021, despite a continued reduction in repairable claims, the industry’s TAM recovered to $38.6 billion despite fewer repairable claims, which were primarily supported by an offset increase in higher severity.

Collision Repair Industry

Our near-term future view sees a coalescing of several trends that portend industry growth with both risks and opportunities.

From the beginning of the pandemic in 2020 and continuing throughout 2022, demand for collision repair services exceeded technician capacity for most of the

Resolution To Ban EVs in Wyoming Dies in Committee Soon After Introduction

By Kevin Killough Cowboy State Daily

A Wyoming Senate resolution to phase out electric vehicles in Wyoming has died.

If it had passed the full Legislature, Senate Joint Resolution 4 would have made it a goal that the sale of new electric vehicles (EV) in the state be phased out by 2035.

It requested that Wyoming industries and residents voluntarily limit their sales and purchases of new EVs.

It failed to gain traction with the Senate Minerals, Business and Economic Development Committee meeting Jan. 16, but not without some debate.

REGIONAL NEWS

Credit: Shutterstock.

Voluntary Compliance

The resolution was not a bill and, had it advanced all the way to becoming law, wouldn’t have had the force of a ban. Its sponsors have said the main purpose was to make a statement against states like California and New York, which are similarly banning the

l CONTINUED ON PAGE 16

Oka’s Collision Centers of Hawaii Purchases Island Fender in Honolulu, HI

Oka’s Collision Centers of Hawaii, a family-owned company with more than 50 years in business, announced the purchase of Island Fender in Honolulu, HI. The company also owns Oka’s Auto Body in Waipahu, a town in Oahu.

“We are very excited to have purchased Island Fender and grow our company,” said Brandon Okahara, co-owner of Oka’s Collision Centers of Hawaii. “We look forward to the challenges and the

l CONTINUED ON PAGE 22 l CONTINUED ON PAGE 4

added opportunities to build on the foundation that our family has built over the years.”

Oka’s Auto Body was established in 1965 by Eddie Okahara. Over

Index of Advertisers

Romans Group

larger MLO consolidators in the U.S. and Canadian markets, which resulted in high levels of work-in process. We see this extending into 2023 due to the continuing labor shortage. It is not a matter of demand, but a supply side lack of labor availability.

Labor shortages and technician skill deficiencies are creating competition to acquire those who are interested in receiving training to improve their skill levels. This situation is consequently increasing technician acquisition, retention and benefit costs.

Insurance carriers have taken additional steps to increase premiums to cover their rising costs. Historically, repairers had a difficult time pursuing labor rates with insurers. Today, the collision repair industry is aggressively pursuing labor rate increases and is hopeful that insurer premium increases will allow for their labor rate increases.

Insurance carriers, which continue to account for a significant volume of claims to repairers, tend to favor MSOs that offer largely predictive and standardized outcomes.

We do see a nascent movement by several MLOs to move away from DRP relationships while opting into a predominantly OEM certification preference model.

MLO scale remains a competitive advantage.

The groundswell of support and adoption of OEM repair standards continues to emerge as the preferred norm. However, the degree of influence and control by the OEMs in directing business remains limited. There is a better near-term chance for ROI with premium and luxury brands today due to their more active involvement and adherence to program standards and processes influencing where cars are repaired.

Vehicle telematics will become a more influential factor in the future control of the claims process.

Electric vehicle sales are trending upward toward 10% of new car sales by YE 2022. We expect EV sales to increase to between 30% and 40% of sales by 2030.

Despite the expectation of the onslaught of EVs, range anxiety will need to be addressed and overcome through increasing battery range capability coupled with growing the number of charging stations nationally.

Full digitalization of the estimating process for qualified repairable claims starts with less complex

repairs and eventually migrates to more complex damaged vehicles. The journey starts with photos and evolves to telematics, reliance on artificial intelligence coupled with insurer-driven rules and integration of supplier network connections. This throughput connected process will automatically initiate and populate the line-item detail necessary for predictive and actionable estimates.

Continued evolution of business segmentation strategies will have the largest consolidators marketing their “one national shop model/ platform” to insurers, boosting a large marketplace network of available collision repair locations throughout the U.S.

This one-national-shop model is further segmented within markets by various clusters of collision repair locations that can provide a broad range of segmented capabilities able to satisfy a wide range of repair types including glass installation, express same or next-day service, non-drivable/total-loss processing and disposition, OEM standards and luxury model certification, advanced material repair, mechanical repair, diagnostic services including pre- and post-repair scanning and calibration, and partnering and operating dealership collision repair centers.

Private equity continues to be highly committed to the collision repair industry. MLOs will continue to aggressively acquire and merge. Consolidation is active within all auto physical damage segments. There remains much opportunity for further consolidation and continued private equity investment.

Despite the growing market share of the larger platforms and segments we track and analyze, there is still a long tail of smaller independent repairer fragmentation in the market which will be the basis for the next wave of industry contraction and consolidation.

Multiple Location Operator (MLO) Consolidation

Within the broader automotive aftermarket landscape, private equity and institutional capital continue to invest in most of the satellite segments surrounding the collision repair industry such as parts, paint, body and equipment (PBE), tire outlets, carwashes, dealerships and technology.

Comparing the first six months of 2022 to the same period in 2021, we saw an unusually slow period for MLO collision repair acquisitions by most consolidators, with Crash Champions and Classic Collision being the exceptions. Both Crash

Champions and Classic Collision will most likely advance in the ranking at year end 2022.

While Caliber and Gerber did acquire some MLOs during this time period, much of their expansion was through single-location acquisitions, brownfields and greenfields.

The most significant acquisition event of 2022 came in July, when Crash Champions announced its transaction with Service King with its new private equity partner Clearlake Capital.

There are a number of secular trends that exist today that will continue to have a material impact and influence on the collision repair industry and within the broader auto physical damage industry segments.

Insurtech claims processing operating models reinforce insurers’ preferred business economics, which frequently is at odds with the OEM repair model.

Vehicle damage estimation with photos evolving to vehicle telematics, relying on artificial intelligence coupled with insurer-driven rules with integration of supplier network connections.

U.S.-Canada trans-border market entrance as reflected by companies such as Collision Solutions Network, which merged in mid 2020 with 1Collision in the U.S with its continued

onboarding of new members; Fix Auto with ProColor entering the U.S. in early 2021 with its expanding franchise network in 2021 and 2022; and Lithia Dealership Group entering Canada with the acquisition of Pflaff Automotive Dealer Group.

OEM certification programs’ continued evolution, importance and involvement in collision repair. Our five-year forecast to 2026 has the $20 million segment and the top three consolidators aggressively growing their businesses while maintaining their significant market share lead over the franchise networks and the $10 million to $19 million MLO segments. We expect that by 2026, the top three consolidators will grow from their 2021 market share of 18.4% to between 24% and 28%.

Our annual report, A 2021 Profile of the Evolving U.S. and Canada Collision Repair Marketplace, is now available. The report contains the complete results of our research and analysis for 2021, including over 90 charts and graphs throughout more than 130 pages with historical trends and a future view.

The report can be purchased by contacting Mary Jane Kurowski of The Romans Group LLC at maryjane@ romans-group.com.

Source: The Romans Group LLC

“The

“The ability to … track and, more importantly, provide an invoice and receive reporting based on that specific repair in regard to materials used is critical to the profitability of body shops.”

Mike Anderson, President and Owner of Collision Advice Group

main reason for implementing 3M™ RepairStack™ was to become profitable with my paint material and that happened right away. It’s cut my bill in half!”

Adan Ibarra, Owner of Leading Edge Collision

1Collision is excited to announce the addition of Bremerton Collision Repair in Bremerton, WA.

Ty Sunkel and his wife, Sarah, opened the facility about four years ago. Their daughter, Taylor, works in the front office and their son, Cole, is a technician.

at SEMA, I could tell that he had a real passion for our industry and that he was focused on repairing vehicles properly while running a very professional business model,” said Jim Keller, 1Collision president and CEO. “We are thrilled to have the opportunity to support a shop the caliber of Bremerton Collision Center.”

have seven employees.

“The building itself was a collision repair shop for 70 years,” said Ty. “We were able to secure the lease on it and bring it back to life. Now we’re seeing the fruits of our labor.”

than ourselves.”

“We’re a family-owned shop and care about customers,” said Ty. “We treat people like we want to be treated.”

The Sunkels learned about 1Collision after attending the 2022 SEMA Show in Las Vegas, NV, in November.

“During our initial conversation with Ty Sunkel at 1Collision’s booth

“I went to SEMA this year looking for someone to partner with,” said Ty. “I met Jim Keller and after an hour-long conversation, I said, ‘This is my guy. This is the guy who can help us get to the next level.’”Ty has worked in the collision industry for more than 30 years. In 2018, he opened Bremerton Collision. When business slowed down due to the pandemic, the Sunkels found a larger building to remodel in downtown Bremerton about five miles away from where they were operating. They moved into the 5,000-square foot location in May 2021. Since then, they have grown their business and currently

Part of the remodel included purchasing two new frame benches, a measuring system, a spot welder and a MIG welder. “We’re fully equipped,” said Ty.

The team is working on several OEM certifications. “Between 30 and 40% of our business comes from dealership referrals and auto repair shops,” he said.

The shop is also going through the process of becoming I-CAR Gold Class.

“I pretty much eat, breathe and sleep the business right now,” he said.

Recently, Ty and Sarah realized they needed to be part of something bigger to be successful in the future. “From my time working with an MSO, I knew I needed to talk to other shop owners and management for feedback,” he said. “The only way we can move forward in this everchanging collision industry is if we get to be part of something bigger

The shop is currently part of several DRPs. “We are looking to 1Collision to help us work more efficiently and streamline our processes,” Ty said. With 1Collision’s assistance, they also hope to increase insurance and vendor relationships and improve the health of their business.

“You have to get you keep your head up and look around and see what everybody else is doing,” he said. “One of the things I tell my guys all the time, especially my office people, is I’m not worried about fixing cars today, but how are we going to do a better job tomorrow and even better next month?”

The Sunkels recently acquired an office in a building adjacent to their current shop and are going to be moving the office into that location in January.

Long-term goals include opening a possible second location in 2023. “Hopefully between 1Collision and our other partners it will spearhead us into opening another location,” Ty said.

Source: 1Collision

Unlike

Alignments Too Critical for Collision Repair Shops to Not Do Them In-House

During a recent meeting I had with my SPARTAN 300 20 Group, we reviewed some vehicle crash test videos posted by the Insurance Institute for Highway Safety, like one showing a side crash test of a 2022 Toyota Corolla.

A preventative maintenance alignment what people were talking about years ago when they said, “Set the toe and let it go” are the typical $89 alignments to make sure the vehicle handles properly and the tires don’t wear unevenly.

trying to avoid that by putting some weight in the vehicle instead: Stop it! Follow the OEM procedures. I have seen only two automakers that give you procedures for how to do that instead of filling.

We may also have to do some advanced diagnosis. The subframe could be misaligned, for example. If you let the subframe bolts loose and it jumps, that tells you it’s got some pressure on it. You may also have to adjust a cross-member for torque steer.

There’s just a lot more that we have to do.

Being able to do alignments inhouse is also important because I believe that in order to write an

37% of shops said they were paid “always” or “most of the time” for a pre-diagnostic alignment by the eight largest national insurers. That was up to 45% in last year’s survey.

In the video, if you watch the tires on the vehicle as it gets pushed sideways by the sled, you can see they leave black marks on the floor just as they would if they scraped against the pavement in a real collision.

Watching this, the question came up: Could that create flat spots on the tires?

One of our group’s members checked the run-out on tires on collision damaged vehicles in their shop using the Hunter Road Force Elite, and found more than 27% of the tires they checked did have flat spots.

That led us to a discussion about alignments. We know more and more vehicle system calibrations require an alignment prior to the calibrations. And more and more alignments require a calibration of some system after the alignment. It won’t take you long looking through automaker repair procedures to know more and more automakers are saying an alignment is necessary any time a vehicle has been in an accident. Electronic stability systems are just one of the systems that rely on the vehicle being properly aligned.

Given all this, I believe in today’s collision world, you really need to be able to do alignments in-house.

I know some of you will say: But the bill-payer only wants to pay me $89 for an in-house alignment. But let’s remember there are at least four different types of alignments.

Still, about two in five shops acknowledge never having sought to be paid for this important process.

Mike Anderson — From the Desk of Mike Anderson

The black marks left on the floor of a crash test facility are an indication that accidents can result in tires having flat spots, something collision repairers need to be aware of.

“We know that more and more vehicle system calibrations require an alignment prior to the calibrations.”

MIKE ANDERSON COLLISION ADVICE

By Ed Attanasio Autobody News

Chris Slack manages a parts department at Ivan Gandrud Chevrolet in Green Bay, WI, that employs 30 people, including eight counter people and three service technicians.

part of Michigan with a fleet of 18 trucks.

Gandrud has been exhibiting at SEMA for the past four years, after attending it the four years before that. Autobody News asked him about the show and its impact on his business.

Q: What were the central issues that shops and parts suppliers were dealing with in 2022?

performance and collision customers at the show so that is nice also.

Q: How has SEMA changed since your first show?

A:I think there will be fewer collision shops and also fewer wholesale parts dealers.

The department carries an inventory of approximately $5.5 million, consisting of mechanical, collision and performance parts, and is an authorized Mopar dealer that sells genuine Mopar parts online. With 30-plus years of experience under his belt, Slack is succeeding in a very competitive marketplace. He’s well-known for being one of GM’s largest parts operations in the country, serving all of Wisconsin and

A: We have been dealing with a bunch of issues but the biggest is backordered parts. So many parts are unavailable from the manufacturer. We have been trying to make it seamless by buying parts for our customers from other dealers across the country. We have bought more parts from other dealers than ever before, but if that’s what it takes to get a car finished and out of our customer’s shop, then that’s what we have to do.

Q: Do you see value in a show like SEMA for dealer parts suppliers?

A: SEMA is a great show for us because we have a large Chevrolet Performance parts business. We see a lot of our

A: I think SEMA has changed from a performance show to a more complete automotive show. Now even the service manager and the collision shop manager should attend and visit all the vendors and attend training.

Q: Do you think parts availability will improve significantly in 2023?

A: No, maybe by the end of 2023, availability is improving but very, very slowly.

Those are definitely the three top concerns. We need a bigger facility because we need more inventory which means more people and more delivery drivers. We have had to cut back on our delivery area because we don’t have time to deliver to all our customers.

Q: What will your sector look like in 2025?

The parts dealers are under a lot of pressure right now. Our discounts from the manufacturers have dropped because of availability— many parts can no longer be ordered at a truckload discount but instead we have to special order it one at a time to get the part at a much lower discount. Delivery expenses have gone up, personal costs have gone up.

But as the large MSOs buy up all the collision shops, they are demanding bigger discounts. That’s a business model that doesn’t work. The collision shops should instead work on getting a higher labor rate from the businesses that control that.

Q:If a young person was going to enter this industry, what would you tell them?

A:Now is a great time to get into the parts and collision business. Demand for qualified people has never been higher. Every collision shop and wholesale parts department in the state is hiring right now.

Chris Slack manages the parts department at Ivan Gandrud Chevrolet in Green Bay, WI.

Tesla Not Allowed To Call Software ‘Full Self-Driving’ in California

By Johnna Crider Teslarati

California passed a new law banning Tesla from calling its software Full Self-Driving (FSD), after the state’s Department of Motor Vehicles claimed calling it FSD was false advertising.

Though Tesla is developing the technology for fully autonomous vehicles, it has never claimed FSD is there yet, and says drivers must be alert and ready to take over at all times when engaging FSD or Autopilot.

California lawmakers, however, disagree with the labels of FSD. Senate Bill 1398—one of hundreds Gov.  Gavin Newsom recently signed into law—takes effect in 2023 and specifically targets Tesla’s name for its software.

The bill was sponsored by Senate Transportation Committee Chair Lena Gonzalez, who claimed Tesla falsely advertised its tech and doing so is a safety issue.

An excerpt from the new law reads as follows:

“A dealer or manufacturer shall not sell any new passenger vehicle

that is equipped with any partial driving automation feature or provide any software update or other vehicle upgrade that adds any partial driving automation feature, without, at the time of delivering

any partial driving automation feature in marketing materials, using language that implies or would otherwise lead a reasonable person to believe, that the feature allows the vehicle to function as

in the future for FSD.

“The system is designed to be able to conduct short and longdistance trips with no action required by the person in the driver’s seat,” the website says. “The future use of these features without supervision is dependent on achieving reliability far in excess of human drivers, as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions. As these self-driving capabilities are introduced, your car will be continuously upgraded through over-the-air software updates.”

In November, a Tesla owner involved in an accident on Thanksgiving Day claimed FSD malfunctioned; police are still investigating the driver’s claims.

or upgrading the vehicle, providing the buyer or owner with a distinct notice that provides the name of the feature and clearly describes the functions and limitations of the feature.

“A manufacturer or dealer shall not name any partial driving automation feature, or describe

an autonomous vehicle, as defined in Section 38750, or otherwise has functionality not actually included in the feature. A violation of this subdivision shall be considered a misleading advertisement for the purposes of Section 11713.”

On its website, Tesla says all new vehicles have the hardware needed

In August, Tesla’s Autopilot Software Director Ashok Elluswamy shared data showing how the software prevents around 40 crashes daily that would have been caused by sudden unintended acceleration. Several owner accounts are crediting Autopilot and FSD for saving their lives.

As a family owned and operated dealership since 1909, Glenn E. Thomas Dodge has proudly been serving Chrysler, Dodge, Jeep and Ram customers for 105 years.

We have a long history of providing great service with honesty and integrity.

Auto Body Shops Struggle To Control Access To, Use of Estimate Data

By John Yoswick Autobody News

Denise Koukal, chief information officer for the LaMettry’s Collision chain in Minnesota, said her company, like others, has had a customer upset his vehicle repair generated an entry on a vehicle history report.

“We got a phone call as he was preparing to sell his vehicle at an auction and noticed that this had been reported to a third-party vehicle history report,” Koukal said during a data access and privacy discussion at the Collision Industry Conference

history report,” she said. “This customer was a repeat customer for us. We had done five repairs for him. We have done none since.”

Start of Estimate Enough to Send Out Data

Another panelist, New Mexico shop owner Scott Benavidez, said he has been working since 2016 to track down how some estimate data from his shop has made it to vehicle history reports He shared a flowchart similar to Koukal’s, but the estimate it tracks was not a customer-pay job but one involving an insurance company.

“As repairers know, we get information every day that says, ‘Add this vendor, add this vendor,’ so that they can continually look for the least expensive part,” Benavidez said. “That absolutely opens it up to people that I didn’t even invite….as a vendor, but now are in my platform because of the insurer relationship.”

Koukal agreed, noting insurer and automaker programs can similarly require the use of different customer satisfaction indexing services, “exposing that data to many more places.”

“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle,” Koukal said. “There’s probably been about 10 times that we’ve been called about it, so we

difference,” she said. “But the reality is [the agreements] are more of a punitive thing—only if we find out that something has happened—than something on the front-end that stops the data from going out.”

Koukal said her company falls between Benavidez’s and Caliber in terms of size, and has EULAs with some of its vendors but not others. She agrees with Denison’s view that such agreements have limited value.

(CIC) in November. “I’m sure many of you have had the conversation about ‘Why did you report my repair? Now it’s going to financially impact me with the sale of my vehicle.’ We didn’t report it, but we don’t know who did either. So it’s a very difficult conversation to have with a customer.”

Koukal shared a flowchart tracing everywhere data related to that repair—a customer-pay job—went from the shop, including to three different parts procurements systems that each searched for parts from multiple vendors; thirdparty scheduling and customer service indexing services; OEM repair procedure sources; an aftermarket scan tool system; a materials invoicing system; and an aftermarket clips and fasteners tracking system.

Koukal said other common places the data is sent—though not for this particular repair—include a rental management system, sublet sources and an online estimating program.

There was no way of knowing, Koukal said, how in all that data flow the repair made it to the vehicle history report. She said both her company and the customer asked to have it removed from the report for the vehicle.

“To my knowledge, the accident was never removed from the vehicle

Benavidez said once last year, he had entered about the first 20 lines of an estimate before he got called away to do other things.

“I came back to that estimate about an hour or two later,” he said.

“As I went through my emails, I had received one from Wheels America that said, ‘Hey, we have your wheel’ for that particular vehicle. I hadn’t locked the estimate. I had never done anything with that estimate other than start it. Wheels America is someone I’ve never done business

know it’s happened. But there’s probably a lot we don’t know about.”

Ashley Denison, chief information officer for the Caliber Collision chain, agreed, noting the company’s CEO even came to her about tracking down the issue because the repair of his own daughter’s car made it onto the vehicle’s CARFAX report.

Denison said Caliber has resources to try to address the issue, but she sees the need for an industry solution because if it happens to any shop, “it happens to all of us, it’s a knock on the industry.”

She said listening to what Benavidez as the owner of a single shop has done trying to track the problem down, she was “blown away by how much as an operator he had to know about all this,” when he should be focused on the quality repairs and customer service everyone wants from shops.

“So how do we as an industry begin to flip that,” Denison asked rhetorically.

Putting Things in Writing

Benavidez said he worked with the Automotive Service Association years ago to create an “end-user licensing agreement” (EULA) shops could require vendors to sign related to their use of the shop’s data.

“In order to do anything about them, you have to know where that data was shared and who shared that data,” Koukal said. “You’d also need to take it to a court of law in order to have anything done with it. I don’t think everyone is in a position to do that, nor do they want to do that. So I don’t know how much value [the EULAs] have.”

The panel was asked if some sort of government regulation, similar to those designed to protect patient information in the medical field, was the answer. Denison said that certainly would create compliance,

with. They were put in there by the insurance company. And I had no idea it was going to them.”

The panelists all agreed it’s difficult to know how often a shop’s data related to a repair somehow makes its way onto a vehicle history report.

“But I have yet to get one company to sign that,” Benavidez said. “I think the reason for that is even they don’t always know where [the data] is going. I’ve brought it up numerous times, but I’ve had zero response in getting anybody to sign that EULA.”

Denison said Caliber does have EULAs in place with its vendors.

“I think this is where size and scale makes a little bit of a

“But I absolutely believe that as an industry we can solve the problem without the government getting involved.”

In the meantime, Koukal and Denison each said their companies added verbiage to their repair authorization indicating the customer allows the shop to access and share vehicle data with third-parties as relevant to the repair of the vehicle.

“My concern is: Do they read it and understand what that actually means,” Denison said, acknowledging that if she knew little about the industry and was getting her car repaired, she would just check the boxes as necessary and sign the form.

Benavidez said his similar concern led him to create a second authorization related to the use of their vehicle data from scans.

“It’s really helped us with the consumer to gain their trust,” Benavidez said.

Denise Koukal, chief information officer for LaMettry’s Collision, said they recently lost a repeat customer after estimate data somehow made its way to a vehicle history report

Ashley Denison, chief information officer for Caliber Collision, said the company has agreements in place with its vendors related to use of estimate data

Credit: Shutterstock

“It’s really hard to say how frequently it happens because we don’t usually hear about it until a customer goes to sell or trade in their vehicle.”

DENISE KOUKAL CHIEF INFORMATION OFFICER, LAMETTRY’S COLLISION

The Boring Company

By Maria Merano Teslarati

Posts Impressive LVCC Loop Stats from CES 2023

The Boring Company released the stats of its Loop system at the Las Vegas Convention Center following CES 2023, which ran from Jan. 5-8.

Based on the numbers released by the tunneling startup and social media posts from CES attendees, the LVCC Loop is hitting its rhythm.

In a Twitter post, The Boring Company said it was grateful for the opportunity to provide transportation for Las Vegas Convention Center visitors during the highprofile event.

The company included a number of key stats about the system in its post, both during the event and during the fourth quarter of 2022. The average ride time in the LVCC Loop was less than two minutes, the average wait time for passengers was less than 10 seconds and the Loop was able to accommodate more than 94,000 total passengers, including more than 10,000 who traveled to and from Resorts World.

Overall, the Boring Company said the LVCC Loop’s Q4 customer

experience score has been more than 4.9 on a five-point scale, an impressive feat considering the age of the system.  While there will always be critics of The Boring Company, the LVCC Loop has attracted a lot of positive attention from attendees of the event. Social media posts about rides in the LVCC Loop abound, with a good number of users sharing their appreciation for the project. Author Marsha Collier, who attended CES, described the system as “super fast” and “efficient.” She also said the LVCC Loop had great employees.

Other users highlighted how the LVCC Loop saves a lot of time, as walking around the area typically takes 20 minutes. Another CES attendee, @rockynashlive, said she appreciated the fact she was able to network longer than usual with other attendees because the LVCC Loop saves time.

Videos of the tunnels from the LVCC Loop to the Resorts World station have also been shared online, and they hint that the first stages of the Vegas Loop are at least working well.

The winter registration period for the National Institute for Automotive Service Excellence (ASE) for testing and recertification is now open at ASE.com.

Those service professionals registering by March 31 will have 90 days to schedule an appointment to take their tests one of three ways:

1. ASE in-person testing is available throughout the year and is conducted days, nights and weekends at more than 450 test centers.

2. Those with unexpired automobile certifications (A1-A9) can use the ASE renewal app for recertification.

3. ASE now offers ProProctor remote testing as an online recertification solution for all recertification tests, excluding L1 and L2 tests.

To register and select an available option to take selected ASE certification tests, visit ASE.com, click on register and sign in. Once logged in, users can next click on “orders” and then “store” where they can find the tests they want to take, add those tests to the cart, check out and registration is complete.

Source: ASE

MINIMIZE LOSS

Material Usage Rate

Labor

Waste Theft Warranty

Re-work Indifference

Our team and systems work to minimize each

MATERIALS

Hundreds of supplier relationships

TOOLS TECHNIQUE SPEED / QUALITY

OPTIMIZED LABOR / IMPROVED CYCLE TIMES

Careful inspection, monitoring, measurement and reporting

Industrial Finishes has experts on staff

Industrial Finishes provides training, education & SOPs

LEARN MORE AT WWW.INDUSTRIALFINISHES.COM

sale of gas-powered cars.

“We didn’t want to make a bill that would say that the dealerships have to really quit selling vehicles,” said Sen. Jim Anderson, R-Casper, the resolution’s sponsor. “We just wanted to make a statement that there is a counter to stopping selling gas vehicles in other states.” While the resolution wouldn’t have the force of law behind it, it still sparked some spirited testimony against it from representatives of Wyoming’s automotive dealerships and the Wyoming Outdoor Council.

Ignores Benefits

Sen. Chris Rothfuss, D-Laramie, challenged the concern raised by some committee members that the adoption of EVs is a threat to Wyoming industries, including coal, oil and gas.

They still require energy, he said, which will be a challenge as EV use continues to grow. “It’s exactly the type of challenge that Wyoming stands to benefit from, because we produce all types of power,” Rothfuss said. The vehicles also require lithium and rare earth minerals, of which Wyoming has large deposits.

Speaking after the committee meeting, Rothfuss told Cowboy State Daily there’s an opportunity with EVs the resolution failed to grasp. “We’re looking for our opportunities, because we have traditionally been one of the top five energy-producing states,” Rothfuss said.

Risks And Hazards

Anderson introduced the resolution to the Senate Minerals, Business and Economic Development Committee, explaining SJ 4 was intended to support Wyoming’s oil and gas industries, which he said are under attack from states that move to outright ban the sale of new gas-powered vehicles.

“Our oil and gas industries are huge for Wyoming—and for that matter, every state in the West,” Anderson said.

He said electric vehicles pose a hazardous waste risk, as the batteries are difficult to recycle and dispose of. The state also has a lack of charging infrastructure to support them. “My friends that have electric vehicles are having trouble with charging stations. They do not have enough charging stations in Wyoming,” Anderson said.

Dealership Response

Marsha Allen, executive vice president of the Wyoming Dealers Association, testified against the bill, saying its message is “extremely concerning.”

“We fully understand the frustrations toward mandates, actions that are taken by other states and even the

federal level that trickle down to policy in Wyoming. We do not support those,” Allen said.

However, dealerships across Wyoming sign sales and service agreements with manufacturers, she said. These require dealerships to invest in charging stations, training and tools.

The resolution would put dealers in direct conflict with their manufacturers’ sales and service agreements, Allen said. As an example, Allen referenced Cadillac, which plans to produce only electric vehicles between 2025 and 2030. For dealers to keep selling the brand, they would need to make a minimum investment of $250,000 in infrastructure for charging stations and stronger lifts, as EVs are heavier than conventional vehicles.

She said she spoke to one dealership in Wyoming that is spending more than $500,000 to meet the manufacturer’s requirements.

Allen said even though SJ 4 was just a resolution meant as a statement, even making that statement would negatively impact dealerships in Wyoming. Besides asking them to violate agreements with manufacturers, it encourages people not to buy EVs from them.

“Casual statements can cause real harm,” Allen warned.

Freedom to Choose

Keith Rittle, representing the Wyoming Outdoor Council, said the challenges of the transition to EVs are manageable, and he argued there are benefits that EV adoption would bring to Wyoming and its existing industries.

Rittle said EV ownership comes with lower costs over the lifetime of the vehicle. They have “severe acceleration and handling” and the convenience of charging at home.

He also said their batteries could act as energy storage capacity to power homes during grid disruptions.

The resolution, Rittle added, seemed at odds with other interests in the state, such as the electrical generation industry, powered by Wyoming’s mining industries.

Rittle requested the committee reject the resolution in the interest of individual choice. “It’s best if … Wyoming citizens retain freedom to choose for themselves, like the vehicles they prefer to drive,” Rittle said.

Frozen Batteries

Bill Winney, a former U.S. Navy submarine captain and resident of Bondurant, spoke of the degradation in range EV batteries experience in cold weather.

“You should think of somebody going around Elk Mountain in February when it’s minus 20 or 30,” Winney said. With gas-powered cars, the heat for the cab and defroster is waste heat, he

said, whereas with an EV, it comes out of the battery, further reducing its range.

Winney suggested it would be practical for the Legislature to explore the options of closing roads to EVs during winter months, just as they close roads to high-profile vehicles during high winds. “You need to think in terms of a family that may be moving from Florida to California in February, going around Elk Mountain, and they just don’t understand how to manage loads on their battery,” he said.

Better Methods?

Speaking after the meeting, Rothfuss said there are better ways to push back against EV mandates that are spreading across the country without negative messaging and “fighting acrimony with acrimony.”

“I think over the past decade we’ve seen that adding more negativity to a challenging problem just doesn’t seem to lead to positive outcomes,” Rothfuss said. Rothfuss suggested a delegation from Wyoming could open a dialogue with legislators in California to explain that Wyoming education has benefited greatly from the industries that their laws seek to eliminate.

“Those are the kind of conversations that we could have, if we were willing to sit down together instead of just lobbing grenades over the wall,” Rothfuss said.

While the resolution died for lack of a motion, Anderson said the goal of starting a conversation with the statement it made has been achieved.

“It’s all over the nation now. Two major news outlets have asked me to interview this afternoon and tonight about 2 a.m.,” Anderson said. “So yes, we’ve got done what we needed to get done in informing the nation we’re supporting our industries.”

Sen. Ed Cooper, a supporter of the resolution, said he was fine with letting the bill die because it started a conversation that needed to happen.

He referenced the oath of office he took when he was sworn in as a member of the Wyoming Legislature to protect the state of against all enemies— foreign and domestic.

Phasing out gasoline-powered vehicles, he said, is a direct attack on Wyoming.

“When I see states making an open assault on the people of Wyoming, our industries and our way of life and livelihoods, I will push back,” Cooper said. “If they take pot shots at us, I’m going to push back,” he added.

Cooper said he was OK with dropping it.

“It’s promoted a lot of discussion,” he said. “I think that was the purpose of it and maybe here is where it ends.”

Spokane, WA, City Crews Scramble To Keep Up With Winter Road Damage

By RaeLynn Ricarte

The Center Square

Spokane, WA, Public Works teams have already completed three fullcity plows since early November that involved more than 10,000 lane miles. Now they are scrambling to fill potholes left behind by a series of winter storms.

“Infrastructure and maintenance are things people don’t really think about until there is a problem,” said Public Works Director Marlene Feist in a statement. “The last six weeks has really highlighted the many improvements that have been made over time and how our team and systems successfully work together to meet the needs of the community.”

The National Weather Service reported 34 inches of snow in Spokane as of Dec. 22. That has sent millions of gallons of snow and rain runoff into a network of tanks for processing to protect the Spokane River where it is released.

The aftermath of winter storms has been potholes in roadways

that street crews are chasing down and filling as they receive reports of problems from some of the 220,000 people that call Spokane home.

creating a path for melting snow, runoff and rain to reach drains along the street.

The Collision Repair Education Foundation (CREF) attempts to address education funding concerns through its Student Scholarship awards.

In order to be eligible for the foundation’s scholarships, applicants must visit a collision industry business—shops, suppliers, paint companies or any other segment.

Credit: Shutterstock.

Feist explained in a news release that potholes are created by water getting into the pavement and holes in the pavement and freezing, which causes it to expand. Once that happens, asphalt breaks up to leave a hole that is then filled with water when warming occurs, causing it to grow.

City officials are asking residents to report potholes at 3-1-1. And to help prevent pavement damage by

The city is also asking people to prevent motor fluids like oils and antifreeze from leaking on the ground and entering drains to pollute waterways.

Kirstin Davis, a city communications manager, also suggested people be neighborly and help each other out during a difficult time of year. That includes checking on vulnerable people when it is extremely cold, helping clear their sidewalks or offering to shop for groceries on difficult travel days.

CREF’s 2022 Student Scholarships provided 46 students with nearly $150,000 in financial assistance to ensure those students will be able to continue their education and that they are prepared to pursue a successful career in body shops around the country.

In addition to scholarships and tool grants, 50 veterans will receive toolboxes, valued up to $500 each, through CREF and 3M’s Hire Our Heroes initiative.

Applications opened Jan. 13 with a deadline of March 9. Apply for a Student Scholarship at www. collisioneducationfoundation.org/ student-scholarship-and-grantapplication/

Source: CREF

“Infrastructure and maintenance are things people don’t really think about until there is a problem,”

MARLENE FEIST PUBLIC WORKS DIRECTOR

Nonprofit Continues Mission To Connect Aspiring Collision Repair Students To Scholarships

By Abby Andrews Autobody News

Over the years, the University of the Aftermarket Foundation (UAF) has awarded millions of dollars in scholarships to high school and college students looking for a career in the automotive aftermarket and commercial vehicle industry, by making it easy for them to be considered for scholarships from more than 40 organizations by filling out just one application.

In 2022 alone, UAF awarded 461 scholarships totaling $731,350. This year, that single application is due March 31, and can be completed on UAF’s website, automotivescholarships. com/apply-online.

Full-time students at an accredited U.S. college or university, or an ASE/ NATEF-certified post-secondary automotive, heavy duty or collision repair school, as well as graduating high school seniors planning to attend any of the above full time are eligible for the scholarships. There is no GPA requirement.

Priority in awarding scholarships is given to those pursuing a career in the automotive aftermarket, and sons and daughters of aftermarket industry families.

Students who receive a UAF scholarship are eligible for a second grant upon graduation from their program and after completing six months of employment as a technician in the automotive or heavy-duty industries.

said.

Later, in 2001, the Global Automotive Aftermarket Symposium (GAAS) was formed, Pavey said, also to raise money for and distribute scholarships.

In 2016, GAAS became a part of UAF. Between the two organizations’ histories, both separately and since they combined, more than 5,000 scholarships have been awarded.

“We have scholarships today for every different part of the industry,” Pavey said. “We promote scholarships to anyone who has any kind of aftermarket interest, and work with different suppliers and distributors to make sure we are addressing the entire marketplace.”

about our industry when you see the quality of people trying to get involved.”

Pavey said he thinks little by little, the automotive aftermarket industry is being seen as a viable career option, as vehicle technology becomes more sophisticated, but he thinks it could still be better promoted.

“The need for techs has never been bigger; the shortfall is the largest it’s ever been,” Pavey said. “The average age of [existing] techs is getting higher. Certainly the numbers are still such that we need a lot more technicians.”

Scholarship recipients for the 202324 school year will be announced in June.

Larry Pavey, vice chairman of the UAF Board of Trustees and CEO of Automotive Parts Services Group, said UAF, originally known as the Automotive Warehouse Distributors Association (AWDA) University Foundation, was established in 1986.

“It brought together distributors and manufacturers who wanted to promote education and participation in the automotive aftermarket, with the feeling we were beginning to lose people coming into industry,” Pavey

Pavey said the UAF gets a few thousand applicants every year.

Teams of 10 volunteers review 100 or 150 applications each. Pavey said he has been managing one of the teams for the last 12 or 15 years, and has seen how the applications have changed over time.

More women are applying for the scholarships, and the educational credentials of the applicants has only increased.

“It’s a tremendously better group of students,” Pavey said. “Once you’ve spent a long weekend reviewing 150 scholarships, you feel really good

Pavey said the advantage to filling out a single UAF scholarship application means students might win a scholarship they didn’t even realize they qualified for.

“The cool thing about our process is there’s over 40 organizations offering scholarships, and they’re all different,” he said. “A student can be focused on collision, but could also get [a scholarship from] Women in Auto Care. If they’re from Kentucky, they could get one from KIAWA. We’re kind of a one-stop shop for the automotive aftermarket.”

UAF funds the scholarships through a combination of donations and fundraising events. For more information on how to donate, visit uofa-foundation.org.

The Univeristy of the Aftermarket Foundation’s Executive Committee.

Maaco Celebrates 50th Anniversary Milestone At 2022 Convention

By Abby Andrews Autobody News

Maaco looked back at 50 years in business—and forward to its next 50—at its 2022 convention, held Nov. 15-18 in Carlsbad, CA.

The second day of the gathering, Nov. 16, featured messages from Maaco’s senior leadership team, a message from keynote speaker Mike Anderson of Collision Advice and several breakout sessions for attendees. The recipient of the Tony Martino Hall of Fame and Vendor Partner of the Year awards were also announced.

The convention ran through the evening of Nov. 18, featuring a charity golf tournament, vendor trade show, fall festival and a gala.

“Let me be clear—we are proud to be celebrating the achievements of the past, but it is equally important to stay hungry, ensuring many more achievements for the future,” said Chris Dawson, president of paint and collision for Driven Brands.

Tony Martino Hall of Fame Award

The award was presented by Maaco founder Tony Martino’s son, Mark Martino, who shared memories of how his dad got the franchise started, opening the pilot location in Wilmington, DE, in 1972.

“I remember saying to Dad, ‘Are you sure anyone would want to do this for a living?’” Martino said. “He hesitated for a minute and then said emphatically, ‘Yes, I’m sure someday we are going to have hundreds of these Maaco centers all over the country.’

“His prophecy proved true and

here we sit, 50 years later, celebrating his foresight and dedication,” Martino said.

The Hall of Fame award named for Tony Martino is given to an owner who personifies Maaco’s founding values of providing quality service at a fair price.

This year, it was presented to Jay Patel, who owns 11 Maaco stores in four states and, over his 30+ years with the franchise, has gotten much of his extended family involved in the business.

“I am so grateful for this honor, and I give all the credit to Tony Martino,” said Patel. “He taught me so much that I have applied to my business to be successful. The most important thing was taking care of the customer. His saying was ‘paint a car, make a friend,’ and my goal and my team’s philosophy is to treat them like family, and the goal is always to make a customer for life, whatever it takes.

“I believe in the Maaco system,” added Patel. “Maaco has the successful formula, and all I have done is applied it. I don’t try to reinvent the wheel—they already invented it, and it works.”

Keynote Message

Mike Anderson of Collision Advice spoke about how franchisees should grow their teams to grow their business.

“Everybody on the collision side in the U.S. has a five- to eight-week backlog of work,” Anderson said. “What everyone does not have is people.”

To grow a team, owners have to either help existing staff get better at what they do, or bring on new hires. And to do that, owners must create an environment where people don’t love their jobs—they love the organization.

“You want them to love working for YOU,” he said. “Culture is your commodity, the goose that lays the golden egg every single day.”

Anderson said the industry has a whole does not have a staffing shortage—it has a “we don’t pay enough” problem.

“We have got to offer better compensation,” he said.

Another key is to lay out a career path for employees, so they see how they can advance.

The lines between collision work and what Maaco does are becoming more blurred, Anderson said, thanks to increased ADAS features on cars

that make recalibration necessary to complete what was once a simple paint job on a front bumper. Improper recalibrations can cause accidents, leading to liability issues.

“This is not a message of doom and gloom; it’s an area of opportunity,” Anderson said, noting Maaco owners might be able to expand their services to include ADAS calibrations for other area shops.

Anderson said Maaco owners also need to make sure their customer service is modern, not antiquated, offering conveniences like concierge service, email receipts and a 24/7 digital presence, so customers feel like they can start the repair process even outside of normal business hours.

Maaco’s Online Estimating Tool, launched pre-pandemic in 2019 and now on its fourth version, is a great way to do that, Anderson said.

“It’s difficult if not impossible to write an estimate based on a photo, but look at it as a marketing strategy to capture a hot lead outside of business hours,” when most crashes occur, he said.

Shops like Maaco also have to dominate online reviews, as voiceactivated searches for things like “best auto paint repair shop near me” only return the top result.

To do that, shops need “social proof,” like online reviews, to vouch for their ability to fix a car.

who have both partners for more than a decade.

Media Roundtable

Executives, including Dawson, Maaco COO Daryl Hurst, Porcelli and Driven Brands Senior Vice President of Marketing Hannah Whitesides, participated in a media roundtable.

Dawson opened the roundtable by saying 2021 was a stellar year, as Maaco assembled an incredible leadership team, listened to franchisees and leveraged data for the first time to look at what was happening and what needed attention within the franchise.

Shops like Maaco also need to regularly communicate with vehicle owners during the repair process, even if it’s a “no update” update.

“Keeping them informed drives the customer experience,” he said. “Let them know you’re still working on it, you haven’t forgotten them.”

Vendor

Partner

of the Year

Senior Vice President of Strategy and Franchise Administration Chris Porcelli presented the Vendor Partner of the Year award to cowinners Sherwin-Williams and 3M,

“Most importantly, we listened to consumers, started using research to find out what they were asking from us and putting together a plan, and the results are beginning to show,” Dawson said.

Porcelli said Maaco, as part of Driven Brands, is using scale to support its partners.

Whitesides talked about some of the ways Maaco has acknowledged its 50th year, including celebrating a shop-level employee every week and partnerships with other companies, like one with Ray Ban to give away 50 pairs of golden sunglasses.

Going forward, Hurst said Maaco will “stay true to our core, look at the evolution of vehicles and what the consumers need, and leverage data to help franchisees to do business in the future.”

In 2023, Porcelli said, Maaco will be focused on growth, specifically strengthening fleet partnerships.

“We just went through one of the most trying times as a nation,” Dawson said. “We didn’t just thrive, but Maaco was there for franchisees every step of the way. We came out in a better place. Existing franchisees want to open more stores, and we couldn’t be more excited for that growth.”

Pictured, left to right, are Driven Brands Collision and Paint President Chris Dawson; Mark Martino, son of Maaco founder Tony Martino; Maaco COO Darryl Hurst; franchisee Jay Patel, winner of the Tony Martino Hall of Fame Award; Maaco Vice President of Operations Bryan Jones; Driven Brands Senior Vice President of Marketing Hannah Whitesides; Maaco Senior Vice President of Strategy and Franchise Administration Chris Porcelli; and Maaco Vice President of Franchise Services Dave Gross

Sherwin-Williams was a co-winner of the Vendor of the Year Award

3M was a co-winner of the Vendor of the Year Award

Island Fender

the years, his three children, Brandon Okahara, Kyle Okahara and Marlo Vincenti, worked at the business and now own and operate the company. In 2020, they learned Island Fender, established in 1937 by Van Takemoto, might be available to purchase.

“It was not a prompt decision,” said Carl Vincenti, business development manager. “Fortunately, we belong to a North American Performance Group facilitated twice a year by our paint company, AkzoNobel. Through these meetings, we’ve developed relationships with other body shop owners in this group and the opportunity to purchase Island Fender developed.”

Carl said the two business owners, Eddie and Van, have been family friends for many years. “In Hawaii, we think everything is connected in the communities we live and work in,” he explained. “At some level, someone in the family knows someone else and the family is extended through these relationships.”

“Takemoto, whom we refer to as Uncle Van, is a successful businessman and has been a leading

figure in the collision repair industry for decades,” said Brandon. “Like Eddie, he is a wealth of experience and we’re thankful that he is willing to share information and consult with us as we continue to operate and grow.”

After months of planning, the purchase was finalized in October 2022. The business partners established a new company, Oka’s Collision Centers of Hawaii, which owns the two locations.

Kyle leads estimating and sales at Island Fender, Brandon leads estimating and sales at Oka’s and Marlo works with administrative team members, trains new employees and coordinates other aspects of the operation.

The owners are looking at best practices at the two locations and incorporating the best fit in each. They are also setting up a management system capable of tying the locations together, evaluating overhead and working to eliminate redundancy.

“Our long-range goals include growing our two facilities and possibly adding other locations,” said Carl. “We want to continue to build a certified, well-trained team of professionals.”

The company takes pride in providing customers with convenient service with compassion and ensuring a proper repair. This

Here’s What Happened in 8-Car Pileup in SF Blamed on Tesla’s FSD

By Iulian Dnistran InsideEVs

A Thanksgiving Day accident involved eight cars and injured nine people in San Francisco’s Yerba Buena Tunnel. The driver of the car that caused the pileup—a Tesla Model S—blamed everything on the company’s Full Self-Driving (FSD) feature. Now, surveillance footage of the accident, obtained by The Intercept, shows how it all happened. The Tesla Model S, which reportedly had Full SelfDriving active, signaled a lane change, moved to the fast lane and then suddenly stopped, without having any car or obstacle in front of it. Almost immediately, traffic backed up and collisions began, and in the end, nine people—including a 2-year-old child—needed medical attention. On top of that, traffic was blocked for more than an hour, according to the report published on The Intercept, messing up people’s travel plans for Thanksgiving.

To make matters worse, just hours before the accident happened,  Elon Musk, the CEO

of Tesla, announced on Twitter the EV maker’s Full Self-Driving Beta feature is available to anyone in North America who paid the $15,000 fee for the option.

The American car manufacturer states on its website FSD’s “currently enabled features require active driver supervision and do not make the vehicle autonomous.” At the same time, the National Highway Traffic Safety Administration (NHTSA) said it’s launching an investigation into the incident that puts another question mark next to Tesla’s ability to deliver reliable driving assistants. According to the NHTSA, Tesla vehicles were involved in almost 70% of the 392 crashes involving advanced driverassistance systems reported from July 2021 to June 2022.

In another investigation, the federal agency asked Musk for more details after he tweeted an update is coming in January that will allow users to turn off hands-onwheel alerts for its FSD software, after users of the feature told him they were annoyed with the high number of disengagements.

involves being certified by automotive manufacturers and training technicians. The company is certified by Automotive Service Excellence (ASE) and Assured Performance and is an I-CAR Gold Class shop.

“We feel it’s important for team members to be well-equipped with state-of-the-art tools and equipment,” said Kyle.

“We treat all employees like family and take pride in providing a professional, fun and safe place to work,” added Marlo. “We want to ensure all team members have the basic needs to grow in our company and care for their families.”

The owners also make it a priority to implement sustainability in their business practices.

“We think about sustainability from a commonsense perspective and live ‘PONO’ by participating in these types of programs,” said Carl. PONO is the Hawaiian word for proper. If a person is living PONO, he said, it means they are living in balance with other things, places and people.

Brandon said they were one of the first companies in Hawaii to switch to waterborne coatings and installed photo voltaic panels to reduce their carbon footprint. They recycle various materials, from automotive parts to plastic bottles and cans.

The Oka family is involved in the Auto Body Paint Association of Hawaii and participates in professional development programs offered by the industry organization. They also support the local community and regularly participate in school programs and community fairs. They assist various organizations, such as the Food Bank, Toys for Tots, disaster relief programs, emergency responders and military members.

“We are always looking for ways to be a responsible business and support the local community where we live, work and our children go to school,” said Brandon. “We feel everything is connected here and make it a priority to stay involved with fundraisers as part of our commitment to provide ‘Service to Others.’”

The business has received numerous awards in Hawaii, including the National Sustainability award, the State of Hawaii Woman Business Leadership Award and Painter Sharpshooter awards. In addition, Oka’s has been recognized as a responsible business in its community by the State of Hawaii House of Representatives and Senate members.

Source: Oka’s Collision Centers of Hawaii

California Investing $2.9 Billion To Double Number of EV Chargers

By Dan Mihalascu InsideEVs

The government of California has approved a $2.9 billion investment plant to accelerate the state’s electric vehicle charging and hydrogen refueling targets for 2025.

According to the plan approved by the California Energy Commission (CEC) on Dec. 14, the investment will add 90,000 new EV chargers across the state, more than double the 80,000 chargers already installed. The energy commission estimates that combined with funding from utilities and other programs, these investments are expected to ensure the state achieves its goal to deploy 250,000 chargers by 2025.

California will allocate $1.7 billion to develop charging infrastructure for medium- and heavy-duty zero-emission vehicles and $900 million for light-duty EV charging infrastructure. The plan also includes $118 million for ZEV manufacturing and $90 million for hydrogen refueling

infrastructure.

The agency said the funds will support the deployment of thousands of zero-emission trucks, school buses and transit buses “to communities hit hardest by the impacts of pollution from medium- and heavy-duty vehicles.”

Funding for the CEC’s Clean Transportation Program is increased by 30 times compared to 2019 with an additional $2.4 billion from the recent state budget that will be spent over the next four years. At least 50% of it will be targeted to benefit priority populations.

“This transformative investment will deploy charging and refueling infrastructure swiftly and equitably to make sure drivers of zero-emission cars and trucks feel confident they can refuel wherever they go,” said Patty Monahan, CEC’s lead commissioner for transportation. “The plan will increase access to charging and hydrogen fueling for individuals, businesses and public agencies, while supporting our emerging manufacturing

ecosystem and creating jobs.”

In November, the California Air Resources Board (CARB) approved a complementary plan for $2.6 billion in clean transportation incentives including consumer vehicle rebates and heavyduty and off-road equipment investments.

Both programs are part of Gov. Gavin Newsom’s overall $54 billion California Climate Commitment. In August, California introduced a mandate for all new vehicles sold in the state by 2035 to be either electric or plug-in electric hybrids.

On a federal level, the U.S. Department of Transportation approved the electric vehicle charging station plans for all 50 states, Washington, D.C., and Puerto Rico, covering about 75,000 miles of highways.

The $1 trillion infrastructure bill provides $5 billion to help states install EV chargers along interstate highways over five years. States now have access to more than $1.5 billion to help build EV chargers.

Crash Champions Names Chief

Crash Champions on Jan. 9 announced Bill Davidson has joined the senior leadership team as chief human resources officer.

Davidson, a visionary leader with more than 20 years of experience developing talented and engaged teams across multiple industries, joins Crash Champions after serving as senior vice president and chief people officer at Insurance Auto Auctions (IAA). As a senior leader at IAA, Davidson led the organization’s people strategy and played a crucial role in supporting IAA’s overall business plan. He led critical strategic initiatives, including talent, organization and performance management, team member engagement, training, career development, compensation and benefits. He also led the people strategy and change management efforts of IAA’s spin-off to an independent public company.

Davidson earned an MBA from the Krannert School of Management at Purdue University, a master’s certificate in human resources management from Villanova University, and a bachelor’s degree in business administration at Strayer University.

Source: Crash Champions

New California Laws Affect Auto Repairers

Every year, hundreds of new laws are enacted that impact California automotive repair dealers. Below is a brief summary of some of the key measures, in no particular order, that took effect Jan. 1, 2023, unless otherwise noted.

Minimum Wage Increase

Effective Jan. 1, 2023, the minimum wage increased to $15.50 per hour for all employers regardless of size, based on a cost-of-living provision in the state minimum wage law. (SB 3 of 2017). Please note local minimum wage ordinances may be higher.

Catalytic Converter Record

Keeping Requirements

This new law requires core recyclers that buy catalytic converters from auto repair dealers to maintain a written record that includes physical business address & phone number, business license number or tax I.D.

(AB 1740)

Prohibited Purchases of Catalytic Converters

Prohibits core recyclers from purchasing catalytic converters from anybody other than certain specified sellers, including automotive repair dealers. (SB 1087)

Vehicle Exhaust Systems

Requires a court to notify DMV to place a registration hold on a vehicle found to have a non-compliant modified muffler until the court is presented with a certificate of compliance from a referee authorized to test decibel levels, starting in 2027.

(AB 2496)

Wage Transparency

Employers with more than 15 employees are required to make pay range information for a position available to employees and include it in job postings. Companies with 100 or more employees are required to submit pay data and wage history to the state. (SB 1162)

Bereavement Leave

This new law requires employers with five or more employees to provide employees up to five unpaid days of bereavement leave upon the death of a family member. (AB 1949)Protection for Off-Duty Marijuana Use

This new law makes it unlawful for

an employer to discriminate on the basis of a person’s use of cannabis off the job and away from the workplace or based on an employer-related drug test that found nonpsychoactive cannabis metabolites in the person’s hair, blood, urine or other bodily fluids. The law takes effect in January 2024.

(AB 2188)

Expansion of Definition of Family Leave

Expands the list of individuals which an employee can take family care or medical leave to include a “designated person” who is either related by blood or whose association with the employee is equivalent to a family relationship. (AB 1041)

Employees May Leave Work during Emergency

This new law prohibits an employer in the event of an emergency condition, as defined, from taking or threatening an adverse action against any employee for refusing to report to, or leaving, a workplace within the affected area because the employee has a reasonable belief the workplace is unsafe. (SB 1044).

CalSavers Retirement Savings

Starting Jan. 1, employers with one to four employees, that do not offer a retirement savings program, can start to register with CalSavers. This segment of employers has until Dec. 31, 2025, to register their business with CalSavers. (SB 1126).

New Changes to Consumer Privacy Act

There are changes from the current California Consumer Privacy Act (CCPA) including that CCPA no longer includes an employee exception, which means employees have the same rights as other consumers when it comes to protecting privacy information.

Smog Check Equipment Security & Fraud Prevention—Biometrics

This BAR regulation requires smog check stations to buy and use biometric devices (e.g. palm reader and web camera) when performing a smog check inspection. This regulation took effect Oct. 1, 2022.

Smog Check STAR Program Updates

This BAR regulation amends STAR

eligibility criteria, provides STAR suspension process consistent with statute and deletes outdated Gold Shield Program requirements. This regulation took effect July 1, 2022.

BAR Disciplinary Guidelines

BAR updated existing disciplinary regulations by establishing laws and regulations training option as a rehabilitation option for automotive repair dealers as a condition to probation. This regulation took effect April 1, 2022.Smog Check Consumer Assistance

BAR passed regulations that increase consumer repair assistance by providing higher contributions based on vehicle model year, reducing pre-repairs diagnostic fees for low-income vehicle owners, and removes unnecessary eligibility restrictions pertaining to vehicle registration. This regulation took effect Jan. 20, 2022.

COVID-19 Supplemental Paid Sick Leave

This law extended California 2022

COVID-19 Supplemental Paid Sick leave to Dec. 31, 2022, and creates a program that will reimburse qualifying small businesses for costs incurred

providing employees with COVID-19

Supplemental paid sick leave. This law took effect Sept. 29, 2022. (AB 152)

COVID-19 Notice Requirements

This law requires, until Jan. 1, 2024, employers to notify employees of potential COVID-19 exposure by prominently displaying in the workplace a notice of COVID-19 caserelated information for a minimum of 15 calendar days. (AB 2693)

Three New State Holidays

AB 1655 adds June 19, known as a Juneteenth, as a state holiday. AB 2596 recognizes Lunar New Year as a state holiday and AB 1801 designates April 24 as Genocide Remembrance Day.

Greenhouse Gases

This new law declares California become carbon neutral by 2045 or earlier. It also requires the state to reduce statewide greenhouse gas emissions by 85% compared to 1990 levels. (AB 1279)

This summary has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice.

Source: CAA

Marketing Expert Sees a Future Without DRPs

By Ed Attanasio Autobody News

Direct Repair Programs (DRPs) were designed in 1963 for an era where all cars were pretty much built and repaired the same way. Lower rates meant the insurance companies would be satisfied, and everyone thought it was a good idea for a while.

Industry veterans say things changed when insurance companies began cutting costs by sacrificing quality. Many body shops were willing to jump through a few hoops to get the volume. When it became more competitive, shops were willing to use more aftermarket, used and reconditioned parts, and became more willing to negotiate on every repair.

Thomas Zoebelein, owner of Stratosphere Studio, recently discussed the future of DRPs in the collision repair industry. He said some compelling things that should interest any body shop owner in the country.

Initially, DRPs worked well because shops that wanted them had to step up their games.

“The DRP forced, or allowed, shops and insurers to focus not

2023 Women in Auto Care Leadership Conference

Join the Women in Auto Care community Feb. 27 - March 1 in Palm Springs, CA, for an another great conference focused on sharpening personal and professional development skills and providing the latest industry updates and trends.

The event includes dynamic speakers, engaging sessions and the chance to connect with colleagues and peers. This event will include one of the association’s largest fundraisers of the year to provide tools and training to women in the industry—while having fun doing it.

We’re on track for record attendance—don’t miss it!

To register, and for more information, visit www. autocare.org/networking-anddevelopment/communities/ women-in-auto-care/events/ women-in-auto-care-leadershipconference

Source: Women in Auto Care

on customer acquisition but production,” Zoebelein said. “Every shop tool, business method, marketing tactic and class was centered on production and how to make body shops more efficient.”

That road reached a dead end when vehicle construction moved from mild steel to ultra-high-strength steel a decade ago.

body shops out there scared to work without DRPs.

“The fear of dumping your DRPs is that if you jump out of a plane every day without your DRP golden parachute, you will crash and die,” Zoebelein said. “The work will dry up, and you will be out of business. The pandemic proved everyone wrong because the cars stopped coming for a while, but the non-DRP shops stayed open.”

Stratosphere Studio has developed a marketing plan, Capture the Keys’ “Dump the DRP” program, and forward-thinking shops are embracing it.

Zoebelein is not promising he can help collision repairers replace the volume of a DRP contract.

“That’s when the repair process changed, and OEM procedures became more and more necessary,” he said. “Now the big dilemma for shops is how to get off the DRPs and get paid more.”

The problem is there are a lot of

“So how do you dump a DRP and replace it with a system to get your shop in the hands of customers who need collision repair and keep cars coming into the shop?” Zoebelein said. “What’s the most efficient way to reach a person who you know has a collision repair need, where they are buying, when they are buying

but just before they make a final decision?

“Geofencing allows you to get in front of that customer, when they are shopping for collision repair, even if it’s at just one location,” he said. “We don’t care how they got there—DRP referral, family referral, convenient location, marketing, etc. We just need them to be there, and then geofencing will find them, collect their data and offer them a second opinion.

“I believe that the future of collision repair is fewer cars, more money, more profit,” Zoebelein said. “It’s a fact that vehicles will be getting into fewer accidents. The same ADAS systems that shops are currently repairing will be in more and more cars, so shops need to start rethinking tomorrow’s volume.

“Autobrake will reduce crashes. And every new vehicle sold now has it, and soon it’s going to be federally mandated,” he said. “The times have changed, and it’s time for shops to reconsider where the industry is right now. On top of everything, these issues with labor rates, supply chain issues and technician shortages is the proverbial straw that is breaking the camel’s back.”

Tom Zoebelein thinks DRPs will be extinct faster than many people believe

Driver of Tesla That Went Off a CA Cliff Arrested, Charged With Attempted Murder

By Simon Alvarez Teslarati

On Jan. 3, the internet was shocked by the news that all four people in a Tesla had survived a 250-foot plunge off a cliff at Devil’s Slide in California. The two children came out of the incident with minor to moderate injuries, while the two adults’ were more serious.

On Jan. 4, an update from authorities provided a dark turn to the harrowing and practically miraculous incident, as it appears it was intentional.

ABC7 News reported Dharmesh

A. Patel of Pasadena, CA, the father of the family, has been arrested on suspicion of attempted murder and child abuse.

Authorities believe he intentionally drove the Tesla off the cliff with his wife, Neha, and their two children, aged 7 and 4, inside the vehicle.

Following his release from the hospital, Patel will be booked into a San Mateo County Jail.

“CHP investigators worked throughout the night interviewing

witnesses and gathering evidence from the scene. Based on the evidence collected, investigators developed probable cause to believe this incident was an intentional act,” the highway patrol said.

CIF Announces 2023 Board of Trustees

The investigation into the incident is ongoing.

The reasons behind Patel’s actions remain unknown, though the incident has left those who know the family shocked.

The Providence Holy Cross Medical Center in Mission Hills, where Patel is listed as a doctor, released a statement.

“Providence Holy Cross Medical Center is deeply saddened to learn of a traffic incident involving one of our physicians and his family,” the statement said. “We are extremely grateful there were no serious injuries. We will not respond further, as this incident is under investigation.”

Neighbors of the family said the Patels seemed like a normal, happy family.

“They’re like ideal neighbors. It seemed like they had a great holiday. They went to go see both parents. It just seemed very happy and great,” said Sarah Walker, one of the Patels’ neighbors.

Another neighbor, Heather H., told ABC7 News something did seem off Jan. 3, and she was wondering why they did not come home.

“They’re lovely people. This is really heartbreaking,” she said.

The Collision Industry Foundation (CIF) is excited to announce the Board of Trustees and elected officers for 2023.

The board includes 15 individuals who have volunteered their time and made the commitment to serve the mission and vision of CIF.

The incoming 2023 officers, rounding out the executive leadership, are as follows: President Dan Risley of CCC Intelligent Solutions Inc., Vice President Casey Steffen of Saint-Gobain Abrasives, Treasurer Jim Ocampo of Axalta, Secretary Petra Schroeder, Collisionista, and Immediate Past President Michael Quinn of AirPro Diagnostics.

CIF also welcomes the following newly elected trustees for 2023: Martin Crowell of GEICO, Harry Hall of National Coatings & Supplies | Single Source, Paul Hill of I-CAR, Brenda Hogen of PartsTrader and John Webb of TenPoint Complete.

Trustees continuing their terms to serve CIF are: Yvette Burke of Enterprise, Jordan Hendler of Admin Concepts, Frank LaViola, Scott Walton of Sherwin-Williams and Jeff Wildman of BASF.

Source: CIF

Please contact these dealers for your Honda or Acura Genuine parts needs.

Barber Honda Bakersfield

661-396-4235

Dept Hours: M-F 8-5:30 bestchoice@barberhonda com

Capitol Honda San Jose

408-445-4412

Dept Hours: Mon-Sat 7:30-6; Sun 8-5 sbettencourt@penskeautomotive com

Concord Honda Concord

925-825-8016

Dept Hours: M-F 8-6 kevin valenzuela@concordhonda com

Galpin Honda Mission Hills

800-GO GALPIN

818-778-2005

Dept Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin com

Honda of El Cajon

El Cajon

619-440-5851

Dept Hours: M-F 7-6; Sat 7-5 parts@hondaofelcajon com

Honda of Hollywood Hollywood

800-371-3719

323-466-3205

Dept Hours: M-F 8-6 parts@hondaofhollywood com

ACURA

CALIFORNIA

Acura of Concord Concord

925-680-4233

Dept Hours: Mon-Sat 7-6 keith�whisten@cacargroup�com

Acura of Fremont Fremont

888-435-0504

510-431-2560

Dept Hours: M-F 8-6; Sat 8-5 mike ohare@acuraoffremont com

Acura of Pleasanton

Pleasanton

888-985-6342

925-251-7126

Dept Hours: M-F 7:30-6; Sat 8-6 mitch cash@hendrickauto com

Honda of Pasadena Pasadena

800-433-0676

626-683-5880

Dept Hours: M-F 8-6; Sat 8-4

Honda of the Desert Cathedral City

760-770-0828

Dept Hours: M-F 7-6; Sat 7-5 mpartridge@honda111 com

Keyes Honda Van Nuys

818-756-6549

Dept Hours: M-F 8-6; Sat 8-5 malvarez@keyeshonda com

Larry Hopkins Honda

Sunnyvale

408-720-0221

408-736-2608

Dept� Hours: M-Sat 8-5 parts1@hopkinsdirect com

Metro Honda Montclair

800-446-5697

909-625-8960

Dept Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda�com

Ocean Honda Santa Cruz

831-464-1800

Dept Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz�com

Pacific Honda San Diego

858-565-9402

jgardiner@pacifichonda com

AutoNation Acura

Torrance

310-784-8664

310-539-3636

Dept Hours: M-F 7-7; Sat 8-5 alvaradow1@autonation com

Bakersfield Acura

Bakersfield

661-381-2600

Dept Hours: M-F 7:30-5:30 bakersfieldacuraservice@yahoo com

Marin Acura

Corte Madera

800-77-Acura

415-927-5350

Dept Hours: M-F 8-5:30; Sat 8-4 parts@marinacura com

San Francisco Honda

San Francisco

415-913-5125

Dept Hours: M-F 8-5 partsws@sfhonda com

Scott Robinson Honda Torrance

310-371-8320

Dept Hours: M-F 7-6:30; Sat 7-5 mluna@scottrobinson com

Selma Honda Selma

800-717-3562

559-891-5111

Dept Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall com

Larry H. Miller Honda Boise

888-941-2218

208-947-6060

Dept Hours: M-F 7-6; Sat 8-5

Hinshaw’s Honda Auburn

253-288-1069

Dept Hours: M-F 7-6; Sat 7:30-4:30 rickb@hinshaws com

McCurley Integrity

Honda

Richland

800-456-6257

509-547-7924

Dept Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley net

South Tacoma Honda

Tacoma

888-497-2410

253-474-7541

Dept Hours: M-F 7:30-6; Sat 8-5 bgregory@southtacomahonda com

Metro Acura Montclair

800-446-5697

909-625-8960

Dept Hours: M-F 7:30-5:30 wholesaleparts@metrohonda com

Acura of Honolulu Honolulu

866-931-9086

808-942-4557

Dept Hours: M-F 8-5; Sat 8-4

Johara@lithia com

Tokuda@lithia com

RayleenGarcia@lithia�com

Hinshaw’s Acura Fife

253-926-3331

Dept Hours: M-F 7-6; Sat 8-5 johnny@hinshaws�com

Holidays Bring Gift of Falling Gas Prices

By Andrew Gross AAA

Holiday shoppers may have a little more jingle in their pockets this year thanks to plummeting gas prices.

The national average pump price slid 12 cents over the previous week to $3.14 as of Dec. 19. There are now about 20 states with averages below $3 per gallon.

“The cost of oil, gasoline’s main ingredient, has been hovering in the low-to-mid $70s per barrel, and that’s $50 less than the peak last Spring,” said Andrew Gross, AAA spokesperson. “Combined with low seasonal demand, gas prices could slide a bit more before leveling off.”

According to data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.36 to 8.26 million b/d the same week. This coincides with the arrival of the winter driving season, when fewer people hit the roads due

to shorter days and more lousy weather.

Meanwhile, total domestic gasoline stocks rose significantly by 4.5 million bbl to 223.6 million bbl. Increasing supply and lower gasoline demand are pushing pump prices lower.

The Dec. 19 national average of $3.14 is 54 cents less than a month ago and 16 cents less than a year ago.

The nation’s top 10 largest weekly decreases: Nevada (-20 cents), Indiana (-19 cents), Michigan (-17 cents), Arizona (-17 cents), Ohio (-16 cents), Washington (-16 cents), Delaware (-16 cents), Illinois (-15 cents), California (-15 cents) and Oregon (-15 cents).

The nation’s top 10 least expensive markets: Texas ($2.62), Oklahoma ($2.64), Arkansas ($2.69), Missouri ($2.71), Mississippi ($2.74), Tennessee ($2.75), Wisconsin ($2.75), Louisiana ($2.76), Georgia ($2.77) and Kansas ($2.78).

Source: AAA

U.S. EV Sales Grow by 65% in 2022 Despite Overall Auto Market Decline

By Joey Klender Teslarati

Sales of electric vehicles in the U.S. grew by 65% in 2022, despite a decline in total new vehicle sales for the first time since 2011, new data from Kelley Blue Book showed.

According to Kelley Blue Book, for the first time in just over a decade, Americans bought fewer new cars than the year before. However, EV sales grew year over year by a significant margin.

EV sales topped 800,000 units and will likely continue to rise for years to come. Cox Automotive suggested 2023 will be the first year EV sales will beat 1 million units.

Boosted by government incentives like President Joe Biden’s Inflation Reduction Act (IRA), which intends to push consumers toward EVs, 2023

market share from 70% in Q1 to 58.3% in Q4, Tesla still dominates the U.S. EV market. Over the past few years, many companies have come with competitive and more affordable options, but car buyers are still tending to stick with Tesla based on EV tech, charging infrastructure and performance.

Tesla is off to a hot start in 2023. After cutting prices in the U.S. market by as much as $13,000, demand seems to have increased as the company’s inventory is dwindling.

The Model 3 and Model Y were the automaker’s best sellers.

More positive news: the average cost of an electric vehicle fell 5.5% in December to $61,448.

By Brett Davis The Center Square

Todd Myers, environmental director at the free market Washington Policy Center, takes issue with officials touting the effectiveness of state climate change policies on greenhouse gas emissions.

“Going all the way back to 2006, our state has launched a range of initiatives designed to bring down carbon pollution and transition from polluting sources of energy,” a Dec. 28 Department of Ecology blog stated. “Long story short, a review of these policies shows that they are working as intended—but their biggest effects will be seen in statewide greenhouse gas emissions data for 2020 and beyond, which has yet to be released.”

Myers said that characterization is at odds with Ecology’s recently released emissions figures for 2019.

“The Washington State Department of Ecology released statewide CO2 emissions for 2019, showing an increase of about 7%

from 2018,” Myers wrote in a Jan. 1 blog. “Since 2012, Washington’s CO2 emissions have increased almost every year and total emissions increased about 10% to 102.1 million metric tons (MMT).

“Washington’s emissions are now 9% higher than 1990 levels. According to state law, emissions must fall to just 51.4 MMT by 2030, 50% below the 2019 emissions levels.”

In 2020, the state Legislature set new greenhouse gas emissions limits to combat climate change. Under the law, the state is required to reduce emissions levels as follows: 45% below 1990 levels by 2030, 70% below 1990 levels by 2040, and 95% below 1990 levels by 2050 and achieving net zero emissions.

Myers’ blog goes on to document a series of claims from Ecology over the last several years “that emissions would be declining. Instead, they have consistently increased.”

He even threw some cold water on what he labeled the state’s boasting about the fact per capita emissions have decreased over

the last two decades. While he acknowledged the U.S. Energy Information Administration’s confirmation that per capita carbon dioxide emissions are down 17% in the last 20 years, Myers pointed out the Evergreen State follows behind the nation in general.

“The U.S. as a whole, however, reduced per capita CO2 emissions by 22%,” Myers explained. “Washington is actually decarbonizing more slowly than the rest of the country.”

The Center Square reached out to the governor’s office for comment on Myers’ blog, which was also critical of Gov. Jay Inslee for claiming the state is on the right track in reducing emissions.

“The team at Ecology has done an excellent job sharing the results of the analyses done on the CCA and LCFS policies,” Jaime Smith, Inslee’s director of communications, replied via email.

She included a link to a Nov. 28 Ecology news release trumpeting the start of the Low Carbon Fuel Standard to cut greenhouse gas emissions from transportation, as well as a link

to a July 1 Ecology blog that said independent studies show new initiatives under the Climate Commitment Act will deliver significant benefits at minimal costs.

Passed by the state Legislature in 2021, the Climate Commitment Act directs Ecology to develop and implement a statewide capand-trade program to cut carbon pollution by requiring emitters to obtain “emissions allowances” equal to their covered greenhouse gas emissions. Similar to stocks and bonds, these allowances can be obtained through quarterly auctions hosted by Ecology. The cap-and-trade law went into effect Jan. 1.

Myers remains skeptical of the state’s efforts.

“Rather than continuing to follow the path of failed policy, legislators and agency staff should stop pretending they can effectively reduce state CO2 emissions and empower citizens and innovators to reduce emissions more sustainably and effectively,” he concluded in his blog.

North Bay Source for GM OEM

Central Valley Source for GM OEM Parts

Bay Area Source for GM OEM Parts

Event For Large Collision Repair Businesses Focuses on Labor Shortage, State of Consolidation

by John Yoswick Autobody News

During consultant Vince Romans’ annual presentation on the state of consolidation within the collision repair industry at the MSO Symposium in November, he noted there were currently 19 private equity firms or other investor groups backing 14 multi-shop operations.

Those MSOs have combined annual revenues of about $13 billion. That represents about 34% of the industry’s total revenues of $38.6 billion in 2021, according to Romans’ data.

“That’s not going to stop,” Romans said. “I get calls from private equity firms every week, looking to know about this industry, looking to know where they should invest. And that will continue.”

When the additional MSOs with $10 million or more in annual revenues are added in, multi-shop operators accounted for about 43.6% market share, he said, meaning more than half—about 56%—of total industry revenues are still captured “by individual or smaller operators.”

But that is going to flip in the coming years, Romans predicted. As he does most years at the annual symposium, he shared two five-year forecasts: A “more likely” scenario in which MSOs control 55% of the total collision repair market revenue in 2026, and what he call his “more aggressive” forecast, “based on dynamics that we don’t have a lot of control over,” showing MSOs capturing more than two-thirds (67.7%) of the market.

In either case, he doesn’t foresee any short-term end of business for smaller operators.

“Just like in other industries, it will take a couple more decades to get to scale where the smaller shops no longer exist,” Romans said.

By Romans’ count, there are more than 100 MSOs with annual sales of $20 million or more, and they are certainly most interested in the more than 400 with revenues above $10 million.

“That’s where consolidation will happen, just like in the hardware industry, just the like in the drug industry, which took decades to consolidate,” Romans said. “The collision repair industry will also take decades, but it will happen. So for those who decide to stay in it, you have to decide how you can be successful while deciding whether there’s an exit plan for yourself in the future.”

What’s Driving the Labor Shortage

Another speaker at the MSO Symposium, Andy Challenger, pointed to three key factors creating the current labor shortage in the U.S. Challenger, senior vice president of a Chicago-based firm that companies hire to help their laid-off employees find new positions, said the participation rate—the number of Americans age 16 or older either working or looking for work as a percentage of the population—has been declining over the past 20 years. At 62.3% currently, that’s down from 63.4% just prior to the pandemic, which equates to “about 3 [million] to 4 million people missing from the workforce.”

Because his firm, Challenger, Gray & Christmas, works to find new positions for laid-off workers, Challenger said he has regular data on what people most want from their employer. He said the ranking of employees’ priorities shifts. Last fall, for example, his company’s survey found “flexibility” remains the top priority, but “empathetic leadership” has risen to the No. 2 spot, higher than in the past.

Gerber Collision, said the “E” section of that company’s first ESG report, published earlier this year, outlines how Boyd is mitigating its impact on the environment. Its “Repair First” program, for example, was created “to repair more plastic parts to keep them from entering landfills,” and the company is committed to using waterborne paints in both its existing and newly-acquired shops.

The “social” aspect of ESG encompasses such thing as wages, employee and community engagement, and supply chain relationships. Boyd’s report, for example, highlights its talent development program started in 2018, which has provided a 12- to 18-month training program attributed with developing more than 100 new technicians, with a goal of doubling that number next year.

Challenger said three trends contribute to that. First, more Baby Boomers are retiring, and early retirements accelerated in 2020.

Second, while immigration numbers are back to pre-pandemic numbers, “what we haven’t made up for yet is the decrease we saw in 2020 and 2021, when we saw a real dip during the depths of the pandemic.” There are currently 1.7 million fewer new immigrants in the country than there would have been if the numbers had stayed on the trendline in 2019, he said.

Third, challenges and costs associated with care for children and the elderly have led more households to decide to get by with only one parent working.

The tight labor market could change if there’s a recession, and Challenger said his company’s surveys of employers last fall indicated about one-third say they were currently preparing for a recession.

“It’s not an extremely alarming number, but it’s more than nothing,” he said. “I think almost certainly it will be a cooler job market a year from now.”

“That wasn’t even on the list when we started taking this survey two years ago,” Challenger said. “But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”

Discussion about “wage inflation— and increases in the cost of living— have helped bump “higher wage” up from sixth on the list to the No. 3 spot, he said. And “upward career trajectory” remained the fourth highest priority.

“Employees today are saying they really want a path forward in the organization,” Challenger said. “Employers that are able to provide that are going to be rewarded in this strong labor market.”

‘ESG’ Concept Entering the Collision Repair Market

Although most collision repair organizations likely are not familiar with the term “ESG practices,” it’s something they may be increasingly asked about by insurance companies—or from larger MSOs looking at valuing and acquiring new locations.

ESG stands for environmental, social and governance practices. During a panel discussion on the topic at the MSO Symposium, Diane Kappas of PPG said ESG is a term created by the investment community to talk about a corporation’s non-financial impacts, risks and opportunities.

Susie Frausto of The Boyd Group, the Canadian parent company of

Governance, Frausto said, focuses on such things as how a company’s leadership is aligned in providing transparency in its ESG practices.

Eddie Hightower

Collision said one reason more collision repairers may want to focus on ESG is insurance companies’ interest in partnering with companies that do. Three years ago, he said, insurers would ask questions about Caliber’s focus on sustainability, for example, but Hightower said it seemed largely about checking a box.

“The last couple of years, they started to get more intense,” he said. “They’re asking many more questions. ‘Do you really have a program really thinking about this?’ That’s because if you have a well-thought-out sustainability program, you’re thinking about risk. If you’re thinking about risk, you’re a good risk for the insurers. So looking ahead, if you want to have access to insurance markets, you’re really going to have to think about sustainability. It really does have an impact on your bottom line.”

of Caliber

Eddie Hightower of Caliber Collision said insurance companies are increasingly interested in a collision repair business’ focus on sustainability.

“But this is something that employers are hearing from workers constantly, that they want to feel listened to, they want to feel like people, and they want to feel cared about.”

ANDY CHALLENGER SENIOR VICE PRESIDENT, CHALLENGER, GRAY & CHRISTMAS

Outplacing consultant Andy Challenger said the labor shortage is based on there being “about 3 [million] to 4 million people missing from the workforce,” compared to pre-pandemic.

ONLY MOPAR ® TESTS THEIR PARTS AS A COMPLETE VEHICLE SYSTEM TO PROVIDE OPTIMUM PERFORMANCE AND SAFETY.

CALIFORNIA

Autonation Chrysler Jeep Dodge Ram Roseville 200 Drive Roseville, CA 95661 (800) 872-2800

Cerritos Dodge Chrysler Jeep Ram 18803 Studebaker Road Cerritos, CA 90703 (800) 526-6727

CALIFORNIA

Glenn E Thomas Dodge Chrysler Jeep Ram 2100 E. Spring Street Signal Hill, CA 90755 (562) 595-9584

Michael Stead’s Hilltop Chrysler Jeep Dodge Ram 3291 Auto Plaza Drive Richmond, CA 94806 (510) 243-6110

Scott Robinson Chrysler Dodge Jeep Ram 20900 Hawthorne Blvd. Torrance, CA 90503 (310) 542-2349

Stoneridge Chrysler Jeep Dodge 2700 Stoneridge Dr Pleasanton, CA 94588 (925) 829-8749

IDAHO

Larry H. Miller Chrysler Jeep Dodge Ram 222 S. Auto Drive Boise, ID 83709 (208) 947-6554

NEVADA

Chapman Dodge Chrysler Jeep 3175 E. Sahara Avenue Las Vegas, NV 89104 (702) 457-3446

EVs Helped Keep Lights on At Dealership After Major Earthquake

By Iulian Dnistran InsideEVs

After a 6.4 magnitude earthquake shook Northern California and left about 70% of the homes and businesses without electricity, one dealership managed to keep the lights on with help from a couple of EVs.

Harper Motors in North Eureka, CA, which has operated in Humboldt County since 1912 and sells both new and used cars, including EVs, posted two photos on its Facebook page showing how it managed to stay open for business during the blackout.

Using the vehicle-to-load (V2L) feature of a Ford F-150 Lightning and Kia Niro EV, the dealership had plenty of power for its showroom and parts department.

“Powered by a Niro EV and F150 Lightning, we are open for sales, and parts if you need us,” wrote the business on its Facebook page.

The Ford F-150 Lightning’s V2L function, Pro Power Onboard,

can provide up to 9.6 kW of power from a total of 11 outlets, including four 120V outlets in the front trunk and a 240V outlet in the bed of the truck.

The Kia Niro offers up to 1.8 kW of power from its front charging port or rear trunk, but only if the car is specced in its top “wave” trim level.

This isn’t the first time owners have used their EVs to power homes or businesses during power outages. In November, after Hurricane Nicole hit Florida, an F-150 Lightning owner used his truck to cook some food and help out his neighbor. And in August, a pair of Lightnings helped with the clean-up efforts after the terrible floods in Kentucky.

Ford’s electric truck can power an entire house for several days if configured properly. The option pack is called Ford Intelligent Backup Power and it involves some modifications to the home’s electrical system, but it’s basically an automatic central home generator that turns on when the grid goes offline.

PepsiCo To Deploy 100 Tesla Semis in 2023

By Johnna Crider Teslarati

PepsiCo is planning to deploy 100 Tesla Semis in 2023 that it purchased in 2017, and will begin delivering products to customers such as Walmart and Kroger, PepsiCo Vice President Mike O’Connell said on Dec. 16.

In an interview with Reuters, O’Connell added the company was buying the large allelectric trucks “outright” and is upgrading its plants. He said this includes the installation of four 750-kilowatt Tesla charging stalls at its Modesto and Sacramento locations in California.

“It’s a great starting point to electrify,” he said. “Like any early technology, the incentives help us build out the program.”

He said there were several development and infrastructure

costs. Although the company didn’t share details on the price of the trucks when asked, O’Connell said it was a good investment.

“We keep the trucks for a million miles, seven years. The operating costs over time will pay back,” he said.

PepsiCo plans to begin rolling out the Tesla Semis in the central U.S. and then the East Coast. O’Connell also said Tesla didn’t help pay for the megachargers for the vehicles, but it provided design and engineering services for the facilities.

The megachargers are equipped with solar and battery storage systems. O’Connell said it will take 35 to 45 minutes to recharge a Tesla Semi after a 425-mile trip carrying Frito-Lay products, which should bring the battery down to around 20%.

More Tesla Semis Ready To Deliver After

Final Inspections

By Steven Loveday InsideEVs

More newly completed Tesla Semis were seen at the automaker’s Nevada facility, reportedly being readied for delivery.

Tesla still owes PepsiCo many more electric Semis, and while a great deal was learned at the recent electric semi-truck delivery event, there are still many unanswered questions.

Tesla is typically pretty quiet about the goings-on at the company. From time to time, it releases major announcements, especially if it’s good news, but that’s not the case on the daily. Instead, more news comes from hardcore Tesla followers and drone photographers. For these reasons, it’s not known for sure how many or how quickly Tesla is producing the Semis, and exactly when and where they’re headed.

According to a tweet by Zanegler (@HinrichsZane), shared by Teslarati, several finished Tesla Semis are waiting at the secret Nevada site near

Tesla’s original battery Gigafactory in Nevada. They reportedly need final inspections before they head out for delivery. While they’re not yet wrapped with a logo, it’s assumed they’ll be on the way to PepsiCo in Modesto, CA.

Zanegler just saw the Semis on Jan. 10. He said there were a total of eight new electric semitrucks ready at the factory. Only a few of the Semis can be seen in the video, but it appears there are many trailers ready for the others. Zanegler said just a few minutes before he shot the video, he saw two more new Tesla Semis on the nearby freeway doing test runs.

PepsiCo and Frito-Lay together were among the first companies to order the Semi from Tesla in 2021. PepsiCo aims to have 100 of the fully electric haulers in service sometime this year, and some of its current Semis have already been seen out on the road.

Teslarati reached out to PepsiCo to try to learn more, though the company didn’t respond to the request for comment.

2022 U.S. Car Rental Revenue of $36.1B Shatters Records

By Auto Rental News Staff

Despite continuing challenges around vehicle supply, staffing shortages, demand shifts and the cloud of a recession, the

Meanwhile, the estimated number of new vehicles sold into rental fleets in 2022 represents less than half the total number of vehicles sold in 2019. However, rental companies are holding their cars in fleets longer to compensate.

The high-pricing, tight fleet environment drove another new record for revenue per unit per month (RPU) of $1,424.

U.S. car rental industry earned an estimated $36.1 billion in revenue for 2022, based on data collected by Bobit.

That yearly total represents a 24.7% growth over 2019’s record year and is likely the highest yearover-year gain in industry history.

CALIFORNIA

Audi Burlingame Burlingame

888.737.5738

650.348.0883

650.348.0837 Fax

M-F 7:30am-4:30pm parts@rectormotors.com

Audi Rocklin Rocklin

866.948.0048

916.836.1286

916.836.1293 Fax

M-F 7:30am-6pm Sat 8am-5pm parts@audirocklin.com

Audi Long Beach Long Beach

562.597.4892

562.343.5088 Fax

M-F 7:30am-5pm wholesale@audilb.com parts@audilb.com www.audilb.com

“This year’s results are a testimony to the agility of the industry to change with the rapid fluctuations of market conditions and supply and demand,” said Chris Brown, executive editor of Auto Rental News.

“I never would’ve guessed the industry would’ve rebounded this quickly exiting the pandemic to reach record revenues. That said, the environment isn’t one to relax in, as those same pressures will ease only slightly in 2023.”

Niello Audi Sacramento

916-480-2851

916.483.1963 Fax

M-S 8am-5pm audi.parts@niello.com www.audi.niello.com

Santa Monica Audi Santa Monica

310.481.8216

310.393.6982 Fax

M-F 7:30am-5pm

wholesale@santamonicaaudi.com www.santamonicaaudi.com

WASHINGTON

Audi Seattle Seattle

206.634.8200

206.547.1581 Fax

M-F 7am-6pm parts@uvwaudi.com www.audiseattle.com

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers and are supported by a nationwide network of distribution centers to help ensure non-stocked parts are delivered the next day.

Credit: Shutterstock

Order Audi Genuine Parts from these select dealers.

Audi Part Professionals are experts on collision parts, replacement components and mechanical items

Auto Painter Invents Linear Blocking Tools While Looking For a Better Paint Job

By Ed Attanasio Autobody News

Autobody News runs into great stories like this one all the time, in which collision repairers invent things to do a better job.

Colten Davidson, a painter and now the owner of his own restoration shop in Birnamwood, WI, created Linear Blocking Tools, a sanding block system that can create a perfectly flat surface easily and consistently. His system is also designed to alleviate the wear and tear on the human body caused by hours of sanding.

Q: How did you get the idea for Linear Blocking Tools?

A: One day a few years ago, I was trying to get the clear to be literally like a mirror where there’s no ripple, no chop—nothing in it. And we were using a lot of foam blocks and different other types of blocks. Then I came up with a rough draft and made them.

I used them for a while and then I had a couple other people who said they wanted them. Then a distributor in Australia saw these on Facebook, and asked me how much would it cost for 10,000. I couldn’t even make that many, I thought. So, I got the ball rolling a little bit more and have applied for patents, and now we have a manufacturer in Minneapolis that makes them for us.

In September, we moved into a new building that contains two shops—one shop is like the clean shop; we’ve got the hoist and the paint booth on that side. And then we’ve got a dirty side that’s basically for sanding and welding. We’ve got everything under one roof. I am running the shop and my wife is running the product side, and it is working well.

I have two people working with me in the shop and my wife Brittany has some part-time help.

Q: How did you get where you are today?

A: Right out of high school, I went to tech school for auto body, where I completed a oneyear program. And then from there I started working at a Ford dealership doing mostly collision and some light restoration stuff. I worked there for about five years and then I worked for a shop that did both restoration, collision and some dealer work. We did a little bit everything and it was a great learning experience.

Then I had a great opportunity to work for a top shop here in Wisconsin, where I could work on high-end restorations. And that’s where I really progressed into knowing what I know now by pushing the envelope. I was the body guy and the painter there and I did probably 90% of the body work and all the painting, and then early last year I started my own

Q:You have created a whole universe around your tools, with online courses and an upcoming series of in-person classes. Tell us about those.

A:Yes, on June 22-25, I am hosting a four-day hands-on restoration class with Ryan Evans and world-renowned paint correction specialist Jason Kilmer. It will take attendees through everything from stripping old finishes, metal work, filler work, all the paint and cut/buff. We will be “restoring” a few different front clips from Auto Metal Direct, taking you through all the fine details, like perfecting gaps and panel-to-panel along the way.

Day one will cover stripping old finishes, metal work, perfecting gaps, prepping metal work for panel-topanel blocking, proper metal prep using the DX metal prep system, applying epoxy to bare steel and types of DTM primers. Day two will cover prepping epoxy for filler work, proper understanding of use

and types of body fillers, panel-topanel blocking, blocking techniques, proper application and types of primers over filler work and priming over filler work. Day three will cover proper blocking techniques of primer, paint prep, masking, painting, laying stripes, spraying candies and

hand really well. More importantly, they are hard but flexible and very flat. They’re made of polycarbonate, which is very flexible and extremely durable. You can drop them or even throw them at the wall and they won’t break. There are a few companies out there that make acrylic blocks, and if you drop them, they’ll shatter like glass. Our blocks are warrantied for life, much stronger and more flexible.

custom tri coats. Finally, day four will cover sanding and polishing finishes, curing clear before buffing, sanding techniques, buffing techniques and processes, with Kilmer. These classes will be held at Linear World Headquarters in Birnamwood, WI.

Q:Why are your Linear Blocking Tools so popular with painters worldwide?

A:One of the major benefits of using them is that they fit your

Linear blocks have slits in them that distribute the pressure from your hand to the entire block evenly. They create something like a slinky effect. In addition, all our blocks don’t have sharp edges. They cost a little more because there’s a lot of machine time going into them, but you get what you pay for, like anything else.

We did over $1 million in sales in our first year, which was pretty good. We have a distributor in the U.S. and Australia, and are currently working with a few in Sweden, Germany and from other parts of Europe. We have been getting awesome feedback from painters all over the world, so we are excited about more international distribution.

For more information, visit linearblockingtools.com.

Colten Davidson invented Liner Blocking Tools to make his job easier every day, and now they’re a hit

“One of the major benefits of using them is that they fit your hand really well. More importantly, they are hard but flexible and very flat.”

COLTEN DAVIDSON CREATOR OF LINEAR BLOCKING TOOLS

Auto Care Alliance Partners With Elite

Auto Care Alliance has partnered with Elite to offer online sales training for service advisors. Elite is offering a benefits package valued at more than $300 to ACA member shops who are new to the program.

Each ACA member that signs on with Elite’s Sales Master University will receive a full year of access to 16 lessons taught by Ratchet & Wrench All-Star Award winner Jen Monclus, including quizzes and activities to improve retention and accountability, and quality content developed by America’s top shop owners and service advisors with real-world applications that can be implemented immediately, ensuring consistent and profitable sales cycles.

Elite and Hamilton will host a 30-minute webinar on this benefit to member shops at 1 p.m. CT Jan. 24.

More information on the program and upcoming webinar can be found at autocarealliance. org/elite

Source: Auto Care Alliance

Auto Manufacturer Websites Becoming More Important To Vehicle Shoppers

As auto manufacturer websites become increasingly important to shoppers, overall satisfaction for manufacturer websites is also growing, up 11 points on a 1,000-point scale for the premium segment to 722 and 3 points for the mass market segment to 708, according to the J.D. Power 2023 U.S. Manufacturer Website Evaluation Study—Winter, released Jan. 9.

When shoppers use certain tools, specifically the build and price, vehicle compare, 360° viewer and payment/lease calculator, the likelihood of the shopper to consider the brand increases by 11 percentage points.

“In today’s shopping environment, manufacturer websites must have a robust set of tools for shoppers to use,” said  Jon Sundberg, director of digital solutions at J.D. Power. “Not only is it important to have the tools, they also need to be easily discoverable, well-designed and intuitive to use to significantly

CAWA Announces Manufacturers Advisory Council Appointment

Sun Hong of HL Mando has been appointed to CAWA’s Manufacturers Advisory Council.

“We are pleased to have Sun join our leadership team and contribute to our discussions of current and future industry issues,” said Young Suhr Jr., chair of the Board of Directors. “We look forward to his participation and contributions which will assist the association in achieving its goals as an effective and valuable automotive aftermarket industry organization.”

Hong is the chief operating officer of HL Mando’s Aftermarket North America, with more than 25 years of experience in the automotive aftermarket. In his current role, he is responsible

for the overall business strategy of HL Mando’s Aftermarket North America.

Hong began his automotive aftermarket career in 1994 with HL Mando. After six years with increasing responsibilities with HL Mando, he moved to AMPAC, where his spent nine years as sales, purchasing and product development manager. In 2010, he joined TYC (Genera) as product category manager to eventually manage TYC’s catalog pricing and some of TYC’s product categories. In 2019, Hong returned to lead the HL Mando’s Aftermarket North America team.

Source: CAWA

drive brand consideration.”

The J.D. Power U.S. Manufacturer Website Evaluation Study is a semiannual study that measures customer satisfaction of automotive manufacturer

premium manufacturer websites with a score of 749. BMW (742) ranks second and Infiniti (740) ranks third.

Jeep ranks highest among mass market manufacturer websites with a score of 727. Dodge (725) and Nissan (725) rank second in a tie. GMC (719) and Mazda (719) rank fourth in a tie.

websites during the process of shopping for a new vehicle by examining four key measures, in order of importance: information/ content, visual appeal, navigation and speed.

Study Rankings

Land Rover ranks highest among

The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 10,487 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded in October-November 2022.

For more information about the U.S. Manufacturer Website Evaluation Study, visit www. jdpower.com/business/resource/ us-manufacturer-websiteevaluation-study

Source: J.D. Power

Credit: Shutterstock

Classic Collision Acquires Shops in Las Vegas, Texas

Classic Collision announced new acquisitions in Las Vegas and suburban Houston, bringing its total number of locations to 209 in 15 states.

Las Vegas Collision Center is now the third Classic Collision location in Las Vegas, while Dennis Collision Center in Conroe, TX, expands the company’s footprint in the Lone Star State.

Las Vegas Collision Center opened in 2000.

“Our system of operation is streamlined to make it as convenient as possible for our customers and know that Classic Collision will operate in that exact manner,” said Anna Daniellyan, former owner of Las Vegas Collision.

Dennis Collision Center opened in 2002 approximately 40 miles north of Houston.

“We have always provided turnkey jobs—from start to finish, knowing it will be professional and right and believe Classic Collision will too,” said Dennis Gorrell, former owner of Dennis Collision Center.

Source: Classic Collision

WyoTech’s $16M Expansion Brings a

WyoTech, a leading U.S. automotive, diesel and collision trade school, seeks new instructors, following the construction of a new $16 million, 90,000-square foot expansion to its Laramie, WY, campus.

Need For More Instructors

highest quality education to its students. The school is looking for automotive, diesel and collision professionals passionate about teaching and mentoring the next generation of technicians.

Instructors will not just be spending time lecturing, but will also get to spend time in the shop getting their hands dirty along with the students. They get the reward of seeing the students’ eyes light up when they finally understand their passion and have the satisfaction of helping the students’ dreams become a reality.

of outdoor recreation, vibrant nightlife and a friendly community. No teaching experience is required to apply.

Completed in November 2022, the expansion allows the school to increase its capacity to 1,200 students.

Between 2018 and 2021, enrollment at WyoTech increased by 2,300%, prompting the need for additional space. The school’s current student enrollment is 850 students.

With this expansion, WyoTech is seeking new instructors to join its team and help provide the

“We’re thrilled to be able to offer more students the opportunity to pursue their dreams and learn the skills they need to be successful in the automotive, diesel and collision industries,” said Shawn Nunley, WyoTech’s vice president of training. “Now we’re looking for instructors dedicated to helping our students reach their full potential and are excited to be a part of the WyoTech team.”

All instructors will provide training at the Laramie campus, a lively college town with plenty

“It’s a great place to raise kids while offering a unique blend of natural beauty, small-town charm and opportunities for outdoor adventure. If you love the outdoors and value a sense of community, come on up, take a tour and do an interview,” said Levi Gemmill, automotive instructor at WyoTech.

For more information on the school and to apply for instructor positions, visit www.wyotech. edu/careers or contact Nunley at snunley@wyotech.edu.

S ource: WyoTech

“We’re thrilled to be able to offer more students the opportunity to pursue their dreams and learn the skills they need to be successful in the automotive

SHAWN NUNLEY

AWYOTECH’S VICE PRESIDENT OF TRAINING

5 Things Companies Must Do To Stay Engaged With Customers

By Ed Attanasio

They used to call it customer engagement, but now they should call it customer entanglement, because companies are more involved in their customers’ lives than ever.

Today, marketers are staying engaged indefinitely and as seamlessly as possible to keep their customers in the loop. Through social media, direct mail, online advertising, public relations, mobile apps and other channels, companies establish and maintain lifelong relationships with their customers and reap big rewards.

To keep the relationship going strong, businesses of all sizes need to think differently or be left behind. Here are five deliverables that must always be in the mind of any business that wants to attract customers.

Credit: Shutterstock

Let’s Listen More Closely

Developing effective tools to promote customer engagement is no longer simply a one-time thing, or something a company does quarterly or even monthly. Now you have to be in your customers’ minds all the time.

Let’s Devise a Plan

Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan, and to stick to it.

Every time you engage with your customers, have a clear goal in mind, whether it’s improving your product or adding benefits customers will want. Sixty-eight percent of Americans are willing to spend 13% more with companies providing superior customer service, according to Inc.com. This means all of your customer engagement endeavors must lead directly to some type of offer, decision or action, backed by a strategic approach.

Let’s Embrace More and More Mobility

More people use their personal devices to buy products and services online. Nearly 70% of all adults in the U.S. have a smartphone, and tablet computer ownership has edged up to 45%, according to a survey conducted by the Pew Research Center. If you are not engaging with your customers via their cell phones or tablets on a semi-regular basis, you’re still in medieval times.

To achieve this, marketers have researched and engaged with what their customers are doing, to stay ahead of trends and effectively identify fads, as well as to ride the former and discard the latter until the buzz begins to die down.

Companies always covet peerto-peer, one-on-one relationships. People love to share personal stories about products and services they like, and that’s the sweet spot every marketer wants to tap into.

By learning as much as you can through online reviews and social media, you can learn your customers’ habits quickly and respond promptly. Adapt or perish is the motto when it comes to customer engagement, and listening carefully is a vital part of that.

Let’s Develop 2-Way Relationships

If you truly want to stay engaged with your clients in an effective manner, treat them more like good friends instead of customers. Too many companies milk their customers dry with a different offer every other day. That’s overkill and you won’t won’t remain friends if you do it on a continual basis.

Your overall strategy shouldn’t be all about selling them something aggressively, but rather more about developing good friendships with your client base.

To this end, value all feedback you receive from your customers and

share it with your team. If you’re listening to what your clients are saying about you, you can respond quickly and improve your products, services or processes if needed.

Pivoting is not just for Stephen Curry of the NBA companies must be ready to do it on the drop of a dime.

Let’s Make it Easily Accessible and Visible

There’s a whole big world out there when it comes to all of the different approaches to stay engaged and entangled with your customers for the long run.

In-product messaging, email, mobile, social media and customer care/support are the five leading ways companies can consistently achieve top-tier results. The ones that truly excel at it have figured out how to do it all well.

The role of any smart marketer is to provide its customers with the correct tools to enable easy and natural communication. You should always be easily available and visible, but you should also offer options for varied types of interactions.

If you can offer your clients an intuitive tool, rather than just a platform for communicating with you, they will take the reins and do the rest themselves.

Simply periodically jumping in and out when it comes to your customer engagement efforts won’t work anymore. You need a well-designed strategy and a definitive plan and stick to it.

Financing a new or used vehicle is growing more expensive than ever for consumers, according to the car shopping experts at Edmunds. New data from Edmunds reveals:

Interest rates are continuing to rise. The average annual percentage rate (APR) on new financed vehicles climbed to 6.5% in Q4 2022 compared to 5.7% in Q3 2022 and 4.1% in Q4 2021. The APR on used financed vehicles climbed to 10% in Q4 2022 compared to 9% in Q3 2022 and 7.4% in Q4 2021.

A greater share of consumers are committing to monthly payments of $1,000 or more. 15.7% of consumers who financed a new vehicle in Q4 2022 committed to a monthly payment of $1,000 or more—the highest it’s ever been— compared to 10.5% in Q4 2021 and 6.7% in Q4 2020. 5.4% of consumers who financed a used vehicle in Q4 2022 committed to a $1,000+ monthly payment—also a record high—compared to 3.9% in Q4 2021 and 1.5% in Q4 2020.

Consumers are putting more money down on their purchases to offset rising costs. The average

down payment for new and used vehicles hit record highs in Q4 2022, climbing to $6,780 and $3,921, respectively.

A growing share of luxury shoppers are turning their backs on leasing and choosing to

on financing---which is the vast majority of car shoppers,” said Ivan Drury, Edmunds’ director of insights. “Although the last quarter of the year typically skews toward luxury vehicle purchases, this nearrecord percentage of vehicles that are being purchased rather than leased reflect tougher market conditions far more than affluent consumers shelling out a bit more than usual to treat themselves over the holiday season.”

purchase instead. Edmunds data reveals that new-vehicle lease penetration dropped to 16% in Q4 2022, compared to 29% in Q4 2019. Luxury new-vehicle lease penetration dropped to 26% in Q4 2022, compared to 53% in Q4 2019.

“Just as new and used car prices finally started to cool off in Q4, rapidly rising interest rates created an even greater barrier to entry for consumers who rely

Edmunds analysts caution the combination of costlier vehicle financing and cooling used car values could spell trouble for some consumers down the road if they do not budget or plan accordingly. Edmunds experts conducted a deeper dive into the share of new vehicle sales with a trade-in that had negative equity in Q4 2022, which reveals:

17.4% of new vehicle sales with a trade-in had negative equity in Q4 2022, compared to 14.9% in Q4 2021 and 31.5% in Q4 2020.

The average amount owed on upside-down loans was $5,341 in Q4 2022 compared to $4,141 in Q4 2021 and $5,059 in Q4 2020.

“Vehicle equity is really a tale of two gears for consumers over the past few years,” said Drury. “At the onset of the pandemic, consumers benefited from low interest rates and elevated trade-in values, helping shield even the more questionable financing decisions from resulting in negative equity. This unique confluence of market forces resulted in some vehicle owners being able to take advantage of positive equity on their loans and even their leases. But as we shifted toward an environment with diminished used car values and rising interest rates over the past few months, consumers have become less insulated from those riskier loan decisions, and we are only seeing the tip of the negative equity iceberg.”

As a 2023 resolution, consumers may benefit from resolving to more closely monitor their vehicles’ values so they are not shocked to find out later about potential significant negative equity.

Source: Edmunds

Pump Prices Creep Higher Amid January Doldrums

By Andrew Gross AAA

The short days and messy weather of January are combining to keep people off the roads, lowering gasoline demand. But the price of oil rose as fears of a global economic recession eased.

The national average for a gallon of gas rose by five cents over the previous week to $3.32 as of Jan. 17.

“Gasoline demand is usually lackluster this time of year,” said Andrew Gross, AAA spokesperson, “and it likely won’t start to tick up until spring break draws near. So the primary factor in this latest increase is the higher cost of oil, which accounts for more than half of what you pay at the pump.”

According to data from the Energy Information Administration, gas demand

total domestic gasoline stocks rose from 222.7 million bbl to 226.8 million bbl. Flat gasoline demand and increased supply are contributing to limited pump price increases.

The Jan. 17 national average of $3.32 is 17 cents more than a month ago and a penny more than a year ago.

The nation’s top 10 largest weekly increases: Colorado (+32 cents), Georgia (+30 cents), Indiana (+17 cents), Nebraska (+13 cents), Wyoming (+12 cents), Illinois (+10 cents), New Mexico (+10 cents), Texas (+9 cents), Washington, D.C. (+7 cents) and Utah (+7 cents).

The nation’s top 10 most expensive markets: Hawaii ($4.98), California ($4.42), Washington ($4.00), Nevada ($3.94), Alaska ($3.71), Oregon ($3.68), Pennsylvania ($3.64), Washington, D.C. ($3.53), Illinois ($3.52) and New York

Ford F-Series Is Best-Selling Truck For 46th Consecutive Year

Ford F-Series will surpass 640,000 trucks in 2022, making it America’s bestselling truck for 46 consecutive years and America’s bestselling vehicle for 41 years after selling an average of at least one F-Series Truck every 49 seconds in 2022.

From F-150 to F-550 chassis cab, entry level XL to well-equipped Limited, EcoBoost to the all-electric F-150 Lightning, lined bumper to bumper, all of the Ford F-Series trucks sold last year would stretch approximately 2,400 miles, or further than the driving distance from Los Angeles to Detroit.

“The Ford truck team’s ability to anticipate customer needs, continuously innovate and provide best-in-class levels of capability and performance has helped make F-Series the sales leader time and time again,” said Kumar Galhotra , president, Ford Blue. “We’re honored and humbled that our customers have helped

Kearny Mesa Subaru San Diego (800) 548-9124

(858) 300-3331 Fax

Mon.-Fri. 7-6

cguth@kmhyundaisubaru.com

www.kearnymesasubaru.com

Subaru of San Bernardino

San Bernardino

(909) 888-8686

(909) 571-5483 Fax

Mon.-Fri. 7:30-7; Sat 7:30-5 parts@subarusb.com

www.sbsubaru.com

Elk Grove Subaru Elk Grove (877) 475-0659

(916) 509-8559 Fax

Mon.-Fri. 8-6

shawnh@elkgrovesubaru.com

www.elkgrovesubaru.com

us achieve this milestone for more than four decades.”

F-Series celebrates its 75th anniversary in 2023 and continues to set the tone for innovation, leading the industry with the allelectric F-150 Lightning, which began sales in 2022 and immediately became the best-selling EV pickup on the market. Furthermore, the allnew F-Series Super Duty, with ground-breaking capability and features, has racked up an incredible 150,000 orders, further cementing F-Series as the truck of choice for heavy-duty truck buyers. First deliveries start early this year.

With Maverick, Ranger, F-150, Super Duty, all the way up to F-750, Ford offers America’s broadest lineup of trucks to best deliver on the needs of customers and is the only one that is Built Ford Tough.

S ource: Ford

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

Eastside Subaru Kirkland (425) 820-1676

Mon.-Fri. 7-4 ldarwin@eastsidesubaru.com

Kendall Subaru of Marysville

Marysville

Parts Hotline (866) 662-2819

(360) 716-2553 24 Hr Fax Mon.-Fri. 7-6; Sat. 8-4:30

wholesaleparts@kendallauto.com

scotteney@kendallauto.com

www.kendallsubarumarysville.com

Contact These Dealers For Your Kia Genuine Parts Needs

Citrus Kia

Ontario

(800) 583-7042

(909) 390-0948

(909) 390-0982 Fax

scunningham@citrusmotors.com

www.citrusmotors.com

M-Sat 7am - 6pm Free Local Delivery

Ask for Ike, Jimbo, Chris, Juan, Sean, Jeff Se Habla Español

Kearny Mesa Kia San Diego

(800) 635-6669

(858) 560-5033

(858) 560-9648 Fax

Largest wholesaler in San Diego with 17 delivery trucks

Kia of Alhambra

Alhambra

(626) 289-7803

(626) 289-8807 Fax

kip@kiaofalhambra.com

Kia of Carson Carson

(310) 221-9101

(310) 507-8595 Fax

M-Sat 7am - 7pm Sun 8am - 5pm

www.KiaofCarson.com

Kia of Downtown LA Los Angeles

(213) 342-0923

(213) 342-0980 Fax

M-F 7am - 7pm

www.kiaofdtla.com

Kia of Irvine Irvine

(855) 847-3592

(949) 777-2342 Fax

North County Kia

Escondido

(760) 945-9939

(866) 888-3074 Fax

parts@autogrp.com

www.northcountykia.com

M-F 7am - 6pm

In San Diego Over 10 Years

NEVADA

Jim Marsh Kia

Las Vegas

(877) 274-3820

(702) 946-6084 Fax

M-F 8am - 6pm

Sat 8am - 2pm

johnd@jimmarshauto.com

Towbin Kia Henderson

(702) 868-1234

(702) 567-0037 Fax

M-F 7am - 6pm

Sat 7am - 4pm

jmoore@towbinkia.com

www.tkwholesale.com

WASHINGTON

Car Pros Kia Renton Renton

(425) 204-6635

(425) 793-3889 Fax

M-F 7am - 6pm

Sat 8am - 5pm

jgaeir@carpros.com

Lee Johnson Kia Kirkland

(425) 823-0188

(425) 284-1790 Fax

M-F 7am - 5:30pm

Sat 7am - 5pm

tthompson@leejohnson.com

Genuine Kia Parts* are specifically manufactured from original engineering specs to ensure the same exceptional quality, performance and safety as when you first drove your Kia off the lot. Plus, they’re covered by our 12-month Replacement Parts Limited Warranty.

but not installed by an Authorized Kia Dealer are covered for 12 months from for the part only, and any labor charge is the consumer’s responsibility.

Speakers Offer Advice on Recruiting, Retaining Auto Body Shop Employees

By John Yoswick Autobody News

Presenters at online events this fall aimed at dealership service departments offered some information and ideas about employee recruitment and retention that could be equally helpful for collision repair businesses.

Meredith Collins of Carlisle & Company, for example, said that company’s research across multiple automakers’ dealerships found those companies lose an average of 29% of technicians annually.

“So almost a third are leaving dealerships each year,” Collins said. “We’re losing a great deal of money when we lose a single tech [let alone] when you extrapolate it to the whole industry.”

communication between service advisors and technicians. They found a significant disconnect on this topic, with the majority of service advisors thinking they communicate properly, but fewer than 30% of technicians saying that was the case from their viewpoint. This impacts performance, Collins said.

“The technicians who strongly disagree that they are communicated with well are much less productive than those who say they are,” she said. “They are turning fewer hours, and earning less money if they think that there’s not good communication.”

Most Employees Want a Clear Career Path

Another speaker, WrenchWay founder Jay Goninen, said the technician turnover at dealerships is even more problematic than it may seem at first glance.

said. “You’ve got to be able to be better as a manager and as a leader to really have their best interests in mind.”

Attracting Entry-Level Workers

A CRASH Network survey earlier this year found one in five collision repair shops had an opening for a detailer, and nearly twice as many were looking to hire a body or paint department apprentice.

Joel Fumo , founder and CEO of Citrin, said all industries are short on this type of hourly, 17- to 24-year-old employee, so collision repair businesses are competing not just with each other for such workers, but also with Target, Costco and Whole Foods.

organization that have moved up from the type of position you are offering them.

“Testimonials from people they can relate to is huge when it comes to attracting people,” he said. Employers also need to move quickly.

“Time to hire is everything,” Fumo said. “Make sure you’re quickly getting them on the phone or in for an in-person interview. Get them earning a paycheck as quickly as possible. We see [clients] having up to a two- or three-week hiring cycle. When it comes to hourly employees, they can’t wait around that long for a paycheck.”

She pointed to several factors driving that turnover. The company’s surveys of technicians found only about a quarter of them expressed satisfaction with their job.

“They overwhelmingly wouldn’t recommend this career, which has implications on our ability to recruit new technicians into this space,” Collins said.

One driver of that dissatisfaction appears to be pay methodologies. She shared a chart showing technicians paid hourly or by salary are more likely to express job satisfaction; those paid flat-rate were the group with the lowest percentage of job satisfaction. She noted those employees pointed to the time they spend at work for which they are not paid.

“What we’ve heard from technicians in the last year is that nearly one third of their time while they are at work is non-compensated time,” she said. “They estimate this is costing them about $17,000 a year on average. So it’s a huge amount of money they see they are leaving on the table.”

But Collins said it’s also not just about the money.

Carlisle & Company also surveys dealership service personnel about their perception of the

“What we’re hearing is that it’s not techs just leaving one dealership to go to another. They’re leaving the industry,” Goninen said. “When we’re already coming from behind, it really puts us in a bad position. They have a perception that all shops are the same, and that they’re going to get treated the same way. Some of them have probably experienced that.”

Employers, he said, need to find ways to portray themselves as a different and better place to work, with a well-designed career path for technicians.

“For the longest time, we pinned it on just Millennials wanting to know what their career path is,” he said. “But think about that 55-year-old tech out

His Ohio-based company specializes in recruiting for such entry-level positions, primarily for dealerships. He said it requires thinking about what these young people want in a job: a flexible schedule, competitive pay and opportunity for career growth.

“Our benchmark for wages is Chick-fil-A,” he said. “We try to be as close [in pay] as we can to Chick-fil-A in any market.”

Show them people within your

Other companies, he said, are converting applications to a new hire in three or four days.

Lastly, he said, your company has to be a place where people want to work.

“Culture is really everything that drives our ability to recruit and retain great people,” he said.

John Yoswick has covered the collision industry since 1988, is the editor of CRASH Network and can be contacted at john@CrashNetwork. com.

there, whose body may not be feeling the best right now. You have another 10 years to work. You probably want to know what your career path is more than anybody.”

Having a genuine interest in your employees’ goals and interests can’t be something you just talk about, he said.

“If you treat people like a number and are surprised when people are leaving, I think that’s on you,” Goninen

“If you treat people like a number and are surprised when people are leaving, I think that’s on you.”

JAY GONINEN WRENCHWAY FOUNDER

Ford Super Duty Lawsuit Alleges Roofs Crush in Rollover Crashes

By David A. Wood CarComplaints.com

A Ford Super Duty truck roof lawsuit alleges occupants are injured and killed in rollover crashes because the truck roofs are weak and dangerous.

The class action lawsuit includes 1999-2016 Ford F-250, F-350, F-450 and F-550 Super Duty trucks that allegedly have roofs that cannot handle the weight of the trucks in rollover incidents.

Even if the crash impact leaves truck occupants unscathed, the roofs allegedly collapse onto the occupants as the trucks roll over.

Ford truck roof-crush class action lawsuits began being filed following a Georgia court case where the jury awarded $1.7 billion to the family of two 2002 Ford F-250 Super Duty truck occupants.

The crash was allegedly caused by a Pep Boys service shop that installed the wrong size tire on the Ford F-250, which caused the tire to blow out. The truck rolled, which caused the roof to collapse.

The class action alleges the Ford Super Duty trucks are built

around steel frames which should maintain the form and structure of the trucks to keep occupants safe.

But the plaintiffs assert the Super Duty steel frames aren’t strong enough to support the weight of the trucks, which causes the roofs to collapse onto occupants in rollover crashes.

“The Roof Defect has caused serious injury, paralysis and death to vehicle drivers and occupants. Ford has repeatedly been found liable for injuries and deaths resulting from the Roof Defect in the over 160 wrongful death and personal injury lawsuits that have been filed against it regarding the Defect,” according to the lawsuit.

The lawsuit further alleges that with more than 5 million Super Duty trucks equipped with defective weak roofs, Ford has allegedly admitted more than “80 incidents of roof crush resulting from the Defect.”

According to the plaintiffs, the allegedly weak defective roofs also affect safety features such as the Safety Canopy System, which is advertised as a way to increase safety in rollover crashes.

Those plaintiffs also claim

their 1999-2016 Ford Super Duty trucks have lost their resale values because of the roofs.

According to the Super Duty roof class action lawsuit, “Ford must buy back these dangerous Vehicles or reimburse Plaintiffs and Vehicle Owners and Lessees for the serious risk inherent in continuing to drive them.”

The Ford Super Duty truck roof lawsuit was filed by these plaintiffs:

Curtis Bright, Washington, 2000 Ford Super Duty Extended Cab

William P. Griffitt, Oklahoma, 2000 Ford F-250 Lariat Super Duty

Desmond Rains, Oregon, 1999 Ford F-350 Super Duty

Ivan Tellez, California, 2016 Ford F-350 Super Duty

Kevin Thomas, Kentucky, 2002 Ford F-250 Super Duty

The Ford Super Duty roof class action lawsuit was filed in the U.S. District Court for the Northern District of California (San Francisco Division): Bright, et al., v. Ford Motor Company.

The plaintiffs are represented by Keller Rohrback L.L.P.

Jaguar Land Rover Joins I-CAR Program

I-CAR on Dec. 15 announced Jaguar Land Rover has joined I-CAR’s Sustaining Partner Program, designed to fund the various initiatives that drive I-CAR’s vision that every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate benefit of the consumer.

The move builds upon Jaguar Land Rover’s longstanding training partnership with I-CAR, which provides customized training programs to Jaguar Land Rover’s Authorized Repair Network facilities throughout North America.

Since the program’s founding in 2017, I-CAR Sustaining Partners has helped fund I-CAR curriculum and student fees in career and technical schools, which have become I-CAR fixed training sites; that funding exceeds $3 million. Sustaining Partners has also funded all Industry Training Alliance training credit fees for individuals who train with curriculum from approved Industry Training Alliance partners.

Source: I-CAR

Tesla Fremont Factory Pickup Center Packed With Cars Amid End-of-Year Push

By Simon Alvarez Teslarati

All signs are pointing to Tesla pushing deliveries to the end of the year. This was hinted at in a recent flyover of the Fremont Factory, Tesla’s California-based EV production facility.

Tesla’s Fremont Factory is no longer the company’s largest plant by volume, with the title now being held by Gigafactory Shanghai. Despite this, the Fremont Factory is still one of Tesla’s most important facilities, being the only one that produces the entire S3XY lineup. In 2021, it was also deemed the most productive auto plant in the U.S.

This is why it has become a tradition for the EV community to observe the Fremont Factory during Tesla’s typical endof-quarter delivery efforts. It provides a glimpse of Tesla’s activities, as well as the company’s momentum at the

end of a quarter.

A drone flyover conducted Dec. 28 suggested Tesla is hard at work producing and delivering as many vehicles as it can. The plant’s customer delivery area in particular is filled with vehicles ready to be handed over to their respective owners.

The busy nature of the Fremont Factory bodes well for Tesla’s fourth-quarter vehicle delivery results.

“Since we have a lot of cars arriving at the last minute, it is important to rally hard and do everything we can to get our cars to customers who have ordered them before midnight on Dec. 31,” CEO Elon Musk said recently in a message to employees. “Also, every incremental car we produce that can be delivered in time also matters. Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference!”

©2023 Porsche Cars North America, Inc. Porsche recommends seatbelt usage and observance of traffic laws at all times.

only at your local authorized Porsche dealer.

F-150 Lightning Wins 2023 North American Truck of the Year

The Ford F-150 Lightning is charging into the new year as the North American Truck of the Year™.

This is the latest award in the electric truck’s trophy case and marks the third straight NACTOY Truck of the Year award for Ford. It’s also the fifth NACTOY award for Ford in the past three years.

“Earning North America’s Truck of the Year is huge for the team that has been working so hard to build and deliver as many Lightnings as possible, as quickly as possible,” said Jim Farley, Ford president and CEO. “We’re moving fast to further ramp production to a 150,000 run rate this fall and pushing to improve every aspect of this truck. We’ve started delivering Lightnings from the factory with a fantastic new user interface update to improve the driver experience that we’ll also roll out to all of our Lightning owners over-the-air.”

The F-150 Lightning is the bestselling electric truck in the U.S. since its launch in May 2022, with sales totaling 15,617, helping Ford to become the No. 2 EV automaker

ASE Announces New Officers

The National Institute for Automotive Service Excellence (ASE) announced its officers for its 2023 Board of Directors. The officers were elected during the annual ASE board meeting held in Arizona.

The officers are Chair Homer Hogg, vice president of truck service, TravelCenters of America; Vice Chair Tom Trisdale, vice president of quality, Toyota; Treasurer Jason Rainey, vice president of NAPA AutoCare; Secretary John Wolf, president of Snap-on Business Solutions; and Past Chair Brad Pellman, president of Pellman’s Automotive.

“Volunteer leadership is instrumental in helping ASE set an agenda and fulfill the established mission each year,” said Tim Zilke, ASE president and CEO.

ASE also elected three new governors to its board of governors: Stacy Balzar, Ford; Elisha Huddleston, GM; and Gary Uyematsu, BMW.

Source: ASE

in the U.S. in 2022.

“When America’s best-selling vehicle goes electric you know the transition has momentum,” said Karl Brauer, NACTOY juror and freelance journalist for Forbes. “Ford’s effort to create an all-electric F-150 is remarkable because it combines the standard truck’s dimensions, which means it retains massive aftermarket support, with substantial upgrades to areas like storage and mobile power support. It’s really the best of all worlds, giving the F-150 Lightning a wide range of applications for both traditional and new-to-the-segment truck customers.”

To win the North American Truck of the Year, vehicles must be

new or substantially changed for the year. The jury of 50 professional automotive journalists from across North America choose a winner based on innovation, design, safety, performance, technology, user experience, driver satisfaction and value.

North American Truck of the Year is the latest award in the F-150 Lightning trophy case. Others include Motor Trend Truck of the Year, The Car Connection Best Car to Buy, Edmunds Top Rated, Detroit Free Press Truck of the Year, Green Car Reports Best Car to Buy, TIME Top 200 Invention of 2022, 2023 Kelley Blue Book Best Buy Award, 2022 Altair Enlighten Award, Sobre Ruedas 2022 Awards, Wards 10 Best Engines & Propulsion Systems, Internet Brands Best Car to Buy, Victory & Reseda Vehicle of the Year, TopGear.com 2022 American Car of the Year, Autoblog Technology of the Year 2022, Motor1 Star Awards, CarBuzz Save the Planet award and multiple Sabre awards.

Source: Ford

AsTech’s Rules Engine Now Available

asTech, a Repairify company, on Jan. 11 announced the full deployment of its patented Rules Engine, which presents users with the most accurate and cost-effective diagnostic scan type for the vehicle throughout the blue printing process and repair workflow.

The new feature gives asTech customers access to the most accurate way to identify the diagnostic and calibration scan tools that read all of a car’s OEM modules correctly—versus those that don’t— down to the year, make, model and trim. With the Rules Engine enabled, asTech users, insurance carriers and their customers can be confident with the accuracy and cost of the recommended scan type.

To build the Rules Engine, Repairify’s research and development team scanned tens of thousands of vehicles from different years, makes, models and trim levels with the leading aftermarket tools available, then compared the results to the relevant OEM tool. Researchers used like-for-like tools on the same cars at the same time to ensure accuracy.

Ram 1500 Revolution EV Concept Unveiled At CES 2023

The Ram Truck brand introduced a visionary road map Jan. 5 at CES 2023 with its Ram 1500 Revolution Battery-electric Vehicle (BEV) Concept, which provides a glimpse into the future and demonstrates how the industry’s leading truck brand will once again redefine the pickup truck segment.

The leading-edge Ram 1500 Revolution BEV Concept showcased a truckload of innovative features that will be seen in future Ram trucks and in particular on Ram’s electrification journey.

Ram will differentiate itself by offering a portfolio of fully electrified solutions to better meet customer needs, including a segment-redefining Ram 1500 BEV in 2024. The entire Ram lineup will offer electrified solutions with leading-edge advanced technology in the years to come. The Ram 1500 Revolution BEV Concept establishes how Ram will push past competitors’ future EV offerings.

“The Ram 1500 Revolution BEV Concept is our clearest signal yet that we’re on the precipice of something extraordinary at Ram and points directly to where we’re going on our electrified journey,”

Source: AsTech

“The Ram Revolution represents several important things to the Ram brand,” Koval added. “Of course, it’s our new Ram 1500 Revolution BEV Concept that serves as a roadmap to our electrified future. Yet Ram Revolution is also our philosophy as we redefine the pickup segment, with a steady drumbeat of announcements and initiatives as we embark on our electrified journey.”

said Mike Koval Jr., Ram brand CEO-Stellantis. “At Ram, we’ve redefined what pickup trucks can be, and we will do so again by pushing past what competitors are offering by delivering the best electric pickups on the market.”

The Ram 1500 Revolution BEV Concept is part of Ram’s significant contribution to Stellantis’ Dare Forward 2030 strategic plan to lead the way the world moves by delivering innovative, clean, safe and affordable mobility solutions.

Ram will once again redefine the pickup truck segment with its revolutionary Ram 1500 BEV production model in 2024. It will be the leader in a combination of areas customers care about the most: range, towing, payload and charge time. More news on the production version will be available in the coming months.

Source: Ram

DOWNEY NISSAN Downey

562-334-1188

(562) 334-1195 Fax

M-F 7-5

wholesaleparts@downeynissan com

NISSAN OF BAKERSFIELD

Bakersfield

888-402-6915

(661) 835-0389 Fax

M-F 7-6, Sat. 8-5 www nissanofbakersfield com

NISSAN OF VAN NUYS

Van Nuys

818-374-4421

(818) 787-8400

(818) 908-9520 Fax

M-F 7-6:30, Sat. 7-6 wholesaleparts@vannuysnissan com www�nissanofvannuysparts�com

TEMECULA NISSAN

Temecula

951-972-8430

(951) 972-8396 Fax

M-F 7-6, Sat. 7-6, Sun. 8-5

wholesaleparts@temeculanissan com

INFINITI

INFINITI OF VAN NUYS

Van Nuys

818-374-4493

(818) 787-8400

(818) 809-2727 Fax

M-Sat. 8-5

wholesaleparts@vannuysinfiniti com

www infinitiofvannuys com

GOLDEN STATE NISSAN

Colma

650-488-2873

(650) 944-0305 Fax

M-F 7-6

parts@goldenstatenissan com

FUTURE NISSAN

Roseville

916-677-5251

(916) 786-0743 Fax

M-Sat. 7:30-6

wholesale@futurenissan com

Parts FutureNissan com

GOLDEN STATE INFINITI

Colma

650-488-2877

M-F 7-6

parts@goldenstatenissan�com

LITHIA NISSAN OF FRESNO

Fresno

800-870-7779

(559) 436-6040

(559) 436-0743 Fax

M-F 7-6, Sat. 8-4 etaylor@lithia com

Genuine NISSAN & INFINITI OEM Wholesale Parts are Superbly Crafted to Strict Quality Standards. THE FOLLOWING DEALERS PROUDLY STOCK GENUINE PARTS FOR YOUR NISSAN OR INFINITI REPAIRS. THE FOLLOWING DEALERS PROUDLY STOCK GENUINE PARTS FOR YOUR NISSAN OR INFINITI REPAIRS.

S. CALIFORNIA

N. CALIFORNIA

NISSAN

S. CALIFORNIA

N. CALIFORNIA

No End in Sight: New-Vehicle Transaction Prices End 2022 At Record Highs

The average transaction price (ATP) of a new vehicle in the U.S. hit a record high in December at $49,507, an increase of 1.9% ($927) from November and up 4.9% ($2,297) from year-earlier levels.

New-vehicle inventory levels are increasing from historic lows earlier in 2022, but prices remain elevated, according to data released Jan. 11 by Kelley Blue Book, a Cox Automotive

low but trending upwards. Electric vehicles and luxury cars had incentives close to 6% of ATP, and both saw ATP decline in December as a result. Plus, with the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” added Rydzewski.

Average Non-Luxury Car Prices Increase to Record High

The average price paid for a new

jumping to a record 18.6% of total sales in December from 18.2% in November. The high share of luxury sales helps to push the overall industry ATP higher. Five years prior, in December 2018, luxury market share set a record at 16.5%. Every month in 2022, luxury share was higher.

In December 2022, the average luxury buyer paid $66,660 for a new vehicle, down $216 from November. Buyers continue to pay over MSRP for new luxury vehicles, but not by much. Luxury cars at all levels were selling below MSRP in December, along with luxury compact and subcompact SUVs.

Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price last month. Luxury brands Audi, BMW, Infiniti, Lexus, Lincoln and Volvo showed the least price strength, selling 1% or more below MSRP in December.

Electric Vehicle Prices, Led by Tesla, Decreased Notably in December, Were Down from Year Ago

by 0.6%. The average new EV sold for $61,448, according to Kelley Blue Book estimates, still well above the industry average.

The drop in pricing was driven by significant price cuts at Tesla, which commands more than 65% of the electric vehicle segment. Earlier in the year, Tesla was increasing prices, citing supply issues. In December, the company reversed course.

Auto Incentives Offered by Manufacturers Remain at Historically Low Level but Are Increasing

Incentives increased in December 2022 to 2.7% of the average transaction price, compared to 2.2% in November. In December 2021, incentives averaged 3.8% of ATP. In December 2019, before the pandemic and when inventory was plentiful, the average incentive package was 10.9% of ATP, according to Kelley Blue Book estimates.

company.

According to Kelley Blue Book calculations, new-vehicle ATPs have been above the average manufacturer’s suggested retail price (MSRP), also known as the sticker price, for more than a year. Sales volumes in December were up year over year by more than 5% but down from November, thanks in part to improved supply. Elevated prices and high loan rates are putting downward pressure on sales.

“The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.”

According to Cox Automotive estimates, new-vehicle inventory is steadily improving, though some brands have a noticeably larger supply than others.

“Incentives overall are still very

non-luxury vehicle in December was $45,578—a record high and up $994 month over month. The previous record high was in August 2022.

Truck sales were particularly strong in December, over 270,000 sold for the first time since the spring of 2021, and the average price paid for a new truck was over $59,000. The best-selling vehicle in the U.S. is the Ford F-Series pickup truck, and the average price paid for a new F-Series is well into luxury territory at $66,451, according to Kelley Blue Book estimates. In December, Ford sold more than 75,000 F-Series trucks, its best month in 2022.

Most non-luxury brands had stable pricing or declines in December. Honda and Kia showed the most price strength in the non-luxury market, transacting between 5% and 6% over sticker price in December.

Luxury Share Hits Record High, While Average Prices Fall in December

For most of 2022, strong luxury vehicle sales have been a primary reason for overall elevated newvehicle prices. Luxury-vehicle share typically increases in December, which was the case in the last month,

The average price paid for a new EV decreased in December by $3,594, down 5.5% compared to

Electric vehicles had the highest incentives in December, again influenced by changes at Tesla, at 6.2% of ATP, followed closely by luxury cars at 5.8% of ATP. Meanwhile, vans, minivans and full-size SUVs had the lowest incentives, all less than 1% of ATP.

Source: Kelley Blue Book

Auto Insurance Rates Will Rise Across the U.S. in 2023

Car insurance rates are expected to increase by 8.4% across the U.S. in 2023, amid the increase in drivers returning to the road. That’s the biggest jump in car insurance costs in the past six years. The average cost of full coverage car insurance across the U.S. is $1,780 per year.

ValuePenguin used the Quadrant Information Services database to analyze millions of quotes for drivers across the U.S. It also analyzed car insurance rate changes filed by top companies across the country to show the current and historical landscape of the auto insurance industry

Auto Insurance Cost by State

The average cost of full coverage car insurance for 2023 is $1,780 per year. Auto insurance rates in Michigan average $4,788 a year, the highest in the U.S. and 168% higher than the national average, largely due to the state having the highest minimum insurance requirements.

Florida ($2,856 per year—60% higher than the national average) and Rhode Island ($2,748—53% higher) are the second and third most expensive states for car insurance, thanks to high population density and

traffic congestion.

For cheap car insurance, drivers in Vermont ($1,104), Maine ($1,116) and Idaho ($1,188) typically have the most affordable rates across the U.S. Auto insurance in these states is 36% cheaper, on average, than the national average.

Average Car Insurance Rate Changes by State

Drivers are likely to pay substantially more for car insurance in 2023. The average annual rate increase across the U.S. is 8.4%—up from 1.3% in 2022.

increases are in Illinois (17.1%), Arizona (15.6%), Georgia (13.8%) and New Hampshire (13.6%).

The average cost of car insurance has increased 16.5% overall since 2017.

Traffic Violations Increase Car Insurance

Drivers with a traffic violation or accident could see an average car insurance rate increase of 52% in 2023.

North Carolina has the largest average increase (115%) in full coverage auto insurance rates for drivers with a ticket, accident or DUI on their driving record.

Nebraska auto insurance companies tend to be the most forgiving to drivers with an imperfect driving record, where rates only increase by 35% on average.

A DUI will have the biggest impact on rates, with an average increase of 84% nationwide.

value for many cars, which means insurance companies are paying out higher amounts for claims across the board.

Severe storms and hurricanes cause a rise in car insurance claims from cars that are flooded, damaged or destroyed. As the U.S. faces more extreme weather over time, car insurance rates will increase to match a higher risk of damage, especially in coastal areas.

The popularity of electric vehicles will only increase as technology improves. However, EVs cost around 28% more to insure than a new gasoline-powered car. Look for vehicle-specific insurance discounts, like electric car and safety feature discounts.

How Drivers Can Save Money in 2023

Every state is expected to see a rate increase of at least 1% this year except California, D.C., Hawaii, Vermont and Wyoming.

The biggest year-over-year rate

Cost of Car Insurance for Most Popular New Cars

The cheapest new cars to insure tend to be crossover SUVs and sedans, while pickups and larger SUVs cost more to insure. Smaller sedans and midsize SUVs like the CR-V and RAV4 are typically cheaper to repair or replace than larger cars, so they’re typically cheaper to insure.

Electric cars are growing in popularity. The Mini Cooper Electric is one of the cheapest EVs to insure, while Teslas are some of the most expensive. The Porsche Taycan is one of the most expensive cars to insure, as it’s both a sports car and an EV.

2023 Car Insurance Trends

Car insurance companies have begun raising rates for 2023 due to an increase in car repair costs and claims. Many drivers can expect to see a higher car insurance bill this year.

Car accidents and claims have increased as more people resume regular travel or return to their daily commute. More people driving means a higher risk of getting in a crash, which means higher car insurance rates.

Cars are becoming more expensive to repair, in part because replacement parts are becoming difficult to find due to supply shortages or more expensive due to inflation. The lack of availability for used and new cars has also increased the typical market

The most important part of searching for car insurance is comparing quotes from several companies. Quotes can vary by hundreds of dollars across companies, even for the same driver. Insurance companies offer many discounts to help lower rates. In the wake of increased remote work, many companies offer discounts or lower rates for driving less. Pay-permile car insurance can reduce rates even more for low-mileage drivers.

Switching from full to minimum coverage is a great way to save a significant amount on car insurance premiums if the owners doesn’t have a car loan or an expensive car. Full coverage is 157% more expensive than liability-only coverage. Removing optional coverages like roadside assistance can bring down the bill, too.

Insurance companies in most states evaluate credit as a factor for insurance rates. The difference between a good and poor credit score can change premiums by 80%, as people with poor credit may be more likely to file car insurance claims.

ValuePenguin has a mission to empower people with information and resources to help them make smarter financial decisions. Car insurance can be a difficult and timeconsuming topic to understand. This report attempts to unmask some of the critical issues.

In crafting the analysis, ValuePenguin reviewed more than 3.6 million quotes for different drivers, adjusting for various factors that affect auto insurance premiums. It gathered rates from 37 top insurance companies across the country since rates can vary widely by company.

Source: ValuePenguin

New Auto Body Shop Planned For Hesperia, CA

The City of Hesperia, CA, Planning Commission approved a conditional use permit to allow for the construction of a 14,010-square foot auto body shop building.

The proposed body shop will include four service bay doors, one display bay door area and a 2,447-square foot twostory office on approximately 1.2 gross acres, located at the southeast corner of Joshua Street and Caliente Road, the plans showed.

The subject property as well as the surrounding properties are within the Commercial Industrial Business Park (CIBP) zone of the Main Street and Freeway Corridor Specific Plan.

The site is currently vacant with the properties to the north, south, and east also vacant. The property to the west is Mag Bay Yachts, the map shows.

The development of the site will include the building, parking lot, asphalt paving, landscaping and off-site improvements on Joshua Street and Caliente Road, which include a curb, a

gutter and a sidewalk across the project frontage.

A portion of the site on the east side of the property will remain vacant, and the site will have a 28-foot-wide driveway approach from Caliente Road and from Joshua Street, according to city documents.

The project proposes 27 parking spaces for employees/ customers and a loading zone that is 10 feet by 20 feet.

“The architecture of the proposed automotive body shop complies with the architectural requirements of the Specific Plan. The exterior of the building includes variation in wall planes, above roof elements and variety of exterior architecture features,”

a document stated. “A steel tube tower element is proposed at the front corner of the building that will be viewable from Joshua Street, as well as the parking lot and along Caliente Road.”

The area surrounding the project site is oriented towards industrial-related uses including warehouses and manufacturing facilities, the newest completed project in the area is the 1 million-square foot Modway warehouse facility on Caliente Road.

The automotive and truck repair facility proposes to operate from 7 a.m. to 7 p.m. Monday through Saturday with approximately 12 employees anticipated to work at the facility.

Call or Email Now for Rates:

AUTOBODY

CARFAX Warns Odometer Rollbacks on the Rise

Alarming new numbers from CARFAX show odometer rollbacks are on the rise nationwide.

More than 1.9 million vehicles on the road have had their odometer rolled back—a 7% increase from the previous year.

Consumers lose an average of $4,000 in value from unknowingly buying a rolled back car, and that doesn’t include unexpected maintenance costs.

“Many people think odometer fraud disappeared with the invention of digital odometers,” said Emilie Voss, public relations director for CARFAX. “But that couldn’t be further from the truth. We’re still seeing the number of vehicles on the road with a rolled back odometer rise year-over-year. It takes con artists a matter of minutes to wipe thousands and thousands of miles off a vehicle’s odometer, and unfortunately these swindlers likely see this unprecedented used car market as a way to make quick buck.”

CARFAX offers a free Odometer Fraud Check tool and tips to protect yourself at www.carfax.com/odo.

Source: CARFAX

Nonprofit Launches ‘Virtual Power Plant Partnership’ With Support from GM, Ford

RMI, a nonprofit dedicated to accelerating the global energy transformation, on Jan. 10 announced the formation of the Virtual Power Plant Partnership (VP3).

In recognition of the critical work needed to tackle scaling the market for virtual power plants, initial funding of the VP3 effort was made possible by General Motors and Google Nest. As of Jan. 10, VP3 includes founding members Ford, General Motors, Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin and Virtual Peaker.

VP3 is an initiative based at RMI that works to catalyze industry and transform policy to support scaling VPPs in ways that help advance affordable, reliable electric sector decarbonization by overcoming barriers to VPP market growth.

Virtual power plants are portfolios comprised of hundreds or thousands of households and businesses that offer the latent potential of their EVs, smart thermostats, appliances, batteries, solar arrays and additional energy assets to support the grid.

VP3 follows in the path of successful institutional spinoffs in the electric sector space previously incubated by RMI, including the Clean Energy Buyers Association and the Energy Web Foundation.

“Virtual power plants are poised for explosive growth, and RMI is committed to being at the forefront of their success by launching VP3,” said RMI CEO Jon Creyts. “Our analysis shows that VPPs can reduce peak power demand and improve grid resilience in a world of increasingly extreme climate events. A growing VPP market also means revenue opportunities for hardware, software and energyservice companies in the buildings and automotive industries. For large energy users, VPPs can significantly reduce energy spend while providing new revenue streams.”

“The next 12 to 24 months are critical for policy and program development to seize the potential offered by virtual power plants, and VP3 is here to ensure that the energy transition doesn’t miss a beat,” said Mark Dyson, RMI managing director for carbon-

free electricity. “Policy change, customer and stakeholder education, and unilateral action by individual businesses or organizations all take time and resources. We’re excited to partner in this work with leading businesses in VPP-related sectors including electric vehicles, building controls, residential energy technologies, utility-facing software solutions and more.”

More About VP3’s Goals

With the guidance and support of its members, VP3 is working toward a future where businesses, households and communities are empowered through VPPs which can help to support cost-effective energy, emissions reductions and a more resilient electricity grid. To achieve this, VP3 will work to:

Catalog, research and communicate VPP benefits

Develop industry-wide best practices, standards and roadmaps

Inform and shape policy development

“Virtual power plants present an

exciting opportunity to unlock additional value for homes, businesses and communities, helping to drive greater energy independence and grid decarbonization,” said Mark Bole, GM VP and head of V2X and battery solutions. “This collaboration underscores GM’s commitment to creating a more resilient grid, with EVs and virtual power plants playing a key role in helping to advance our all-electric future.”

“Electric vehicles are introducing entirely new opportunities for consumers and businesses alike, creating a greater need for sustainable energy solutions to responsibly power our connected lifestyles,” said Bill Crider, head of global charging and energy services, Ford Motor Company. “Supporting grid stability through the introduction of technologies like Intelligent Backup Power is central to Ford’s strategy, and collaborating to advance virtual power plants will be another important step to ensure a smooth transition to an EV lifestyle.”

Source: RMI, Ford

INSIST ON GM GENUINE PARTS

No. California

Chase Chevrolet STOCKTON

209-475-6620

209-475-6708 Fax

M-F 7am - 5pm Sat 7:30am-4:30pm cesar@chasechevrolet.com

Dublin Chevrolet Cadillac Buick GMC DUBLIN

925-828-8251

925-829-2941 Fax

M-F 7am - 6pm Sat 8am - 4:30pm

FH Dailey GM Parts Center SAN LEANDRO

800-4A-GMPART

510-351-0534

M-F 8 am - 5 pm Sat 8 am - 4 pm parts@fhdailey.com www.fhdailey.com

Michael Stead Cadillac WALNUT CREEK

925-934-5022

925-934-0336 Fax

M-F 8 am - 5 pm Sat 8 am - 3 pm steadparts@gmail.com

American Chevrolet MODESTO

209-491-7810

209-575-2564 Fax

M-F 7:30 am - 5:30 pm Sat 9 am - 2 pm

gmparts@americanchevrolet.com www.americanchevrolet.com

Courtesy Chevrolet SAN DIEGO

800-336-1404

619-297-4023 Fax

M-F 7am - 6pm Sat 8am - 5pm www.courtesysandiego.com

Paradise Chevrolet VENTURA

888-5-CHEVY-5

(888-524-3895)

805-642-0134

805-644-7214 Fax

M-F 7:30am - 6pm Sat 8am - 3pm

Rydell

Automotive Group

SAN FERNANDO VALLEY

818-832-1660

818-832-1692 Fax

M-F 6am - 7pm Sat 8am - 5pm nrparts@rydells.com

Thorson Motor Center PASADENA

626-793-0454

626-795-6872 Fax

M-F 7:30am - 6pm Sat 8:30am - 2pm parts@thorsonmotorcenter.com

Montana

Denny Menholt Chevrolet BILLINGS

406-896-3111

406-896-3924 Fax

M-F 7 am - 6 pm tsoltis@dennymenholt.com

Nevada

Corwin Buick GMC RENO

775-333-8777

775-322-1837 Fax

M-F 8am - 5:30pm ahardie@corwinauto.com www.corwinbuickgmc.com

Michael Hohl Motor Company CARSON CITY

775-884-8619

775-884-8645 Fax

M-F 7 am - 6 pm Sat 8 am - 5 pm gmparts@michaelhohl.com

No. California

So. California

So. California

@GMParts.ACDelco GM Genuine Parts & ACDelco @GMParts_ACDelco @gmparts_acdelco

Publisher Jeremy Hayhurst

General Manager

Barbara Davies

Editor

Abby Andrews

Contributing Writers

Mike Anderson, Ed Attanasio, Stacey Phillips, Cole Strandberg, John Yoswick

Advertising Sales

Joe Momber, Norman Morano

Office Manager

Louise Tedesco

Digital Marketing Manager

Bryan Malinski

Art Director

Rodolfo Garcia

Senior Designer

Vicki Sitarz

Accounting & HR 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 autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher.

©2023 Adamantine Media LLC.

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

Ram Tailgate Recall Involves 1.4 Million Trucks

By David A. Wood CarComplaints.com

A Ram tailgate recall involves more than 1.4 million Ram trucks equipped with tailgates that may not latch correctly because the tailgate strikers may be misaligned. This can cause a tailgate to suddenly open while driving and allow unsecured cargo to fall out.

Stellantis (Fiat Chrysler) advises Ram customers to follow the owner’s manuals and make sure items in the truck beds are secured.

The Ram tailgate recall involves 2019-2022 Ram 1500, Ram 2500 and Ram 3500 trucks, but Ram 1500 Classic pickups are not affected by the tailgate recall. Additionally, Ram trucks equipped with sensors that alert drivers to insecure tailgates are also not included in the tailgate recall.

Chrysler opened an investigation in July due to

tailgates that opened while driving 2019-2021 Ram 1500 trucks. As of Nov. 22, FCA was aware of 736 warranty claims, 101 field reports and 15 customer assistance records regarding tailgates that dropped open.

However, the automaker is not aware of any crashes or injuries related to the tailgate problem.

Along with the 1.2 million recalled Ram trucks in the U.S., the tailgate recall involves about 121,000 Ram trucks in Canada, more than 26,000 in Mexico and more than 27,000 Ram trucks outside North America.

FCA expects to mail Ram tailgate recall notices Jan. 27, 2023, and dealerships will inspect the tailgate striker alignments to the box latches and adjust them if necessary.

Owners who have questions about the Ram truck tailgate recall may call 800-853-1403. Chrysler’s Ram tailgate recall reference number is ZB8.

Study: 90% of Households Would Save on Energy Costs Switching To EVs

By Scott McClallen The Center Square

A study from the University of Michigan says more than 90% of vehicle-owning households in the U.S. would reduce the percentage of income spent on transportation energy if they switched to electric vehicles.

However, more than half of the lowest-income U.S. households, or about 8.3 million households, would continue to experience high transportation energy burdens, defined as spending more than 4% of household income on filling the tank or charging up.

Study author Joshua Newell from the university’s Center for Sustainable Systems said the results confirm the potential benefits of widespread EV adoption. He called for “policy interventions” to increase EV accessibility for people with low incomes.

“However, EV ownership in the U.S. has thus far been dominated by households with higher incomes and education levels, leaving the most vulnerable populations

behind,” Newell said in a statement.

In 2016, 78% of federal EV tax credits flowed to taxpayers with incomes over $100,000.

In other words, the study says the government needs to subsidize EVs even more. Michigan taxpayers have helped subsidize EVs by $2 billion.

Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, said the study only accounts for the amount spent on gasoline or charging—not the initial purchase price of the vehicle, which is one of the most significant barriers to EV adoption.

“They can spend less money on transportation energy, but their overall transportation budget would go up,” Hayes said in a phone interview. “So it’s equivocation: you’re playing with words there.”

According to Kelley Blue Book, the average price of an electric car in September 2022 was $65,291. Meanwhile, the average price for a gas-powered vehicle was $48,100. Moreover, many used gas-powered cars cost between $5,000 and

$15,000.

The study says more than 90% of households that replace gaspowered vehicles with EVs would reduce the generation of climatewarming greenhouse gases.

The new study was published online Jan. 11 in Environmental Research Letters, an IOP Publishing journal. It considers the spatial variation of EV energy costs and greenhouse gas emissions nationwide.

EVs currently account for about 1% of the vehicles on American roads. If EVs replaced all vehicles on the road, the transportation energy burdens and associated greenhouse gas emissions would vary widely.

Some households could reduce their annual transportation-energy costs by $600 or more and cut their annual carbon footprint by more than 4.1 metric tons of carbon dioxide equivalents, by buying a new EV.

Very high EV transportation energy burdens, ranging from 10% to 64%, would persist for the lowestincome households and would be concentrated in the Midwest and the two states with the highest electricity prices: Hawaii and Alaska.

Hyundai Sets Massive 2023 Sales Growth Target Propelled by New EV Offerings

By William Johnson Teslarati

Hyundai announced it aims to grow auto sales by 10% this year alone.

Over the past two decades, Hyundai Motor Group has become a sizable competitor in the automotive industry. It is now a leader in affordable offerings and electric vehicles, along with the likes of Ford. Following this success, the Korean automotive group has set the ambitious goal of growing its vehicle sales by 10% in 2023.

According to Reuters, Hyundai Motor Group is already a massive seller of vehicles globally, selling 6.85 million in 2022. And while this achievement was off from its 2022 sales goal of 7.16 million vehicle sales, it was still a significant growth year despite numerous poor macroeconomic conditions.

A growth of 10% in sales would equate to roughly 7.54 million vehicles sold in 2023, an increase

of 685,000 vehicles compared to 2022.

Hyundai has good reason to be optimistic. While Tesla continues to dominate the EV market in the U.S. and numerous other markets globally, Hyundai Motor Group— which includes Hyundai, Kia and Genesis—has rapidly expanded EV offerings over the past three years and is now a leader in more affordable models. And with new models planned to be coming in the new year, it is poised to continue to find success.

In a statement to Reuters, a corporate spokesperson said, “Hyundai plans to expand market share and operate profitabilityoriented businesses by flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations and optimizing production, logistics and sales by region.”

Hyundai’s ambitious goal faces a couple of hurdles. Foremost, without EV manufacturing

operations in the U.S., none of the company’s EVs are currently eligible for federal EV tax incentives, a significant discount for many buyers.

Secondly, while Hyundai has performed admirably in the past year, tackling supply chain issues, due to the current COVID spike in China, many expect disruptions to continue.

Finally, while the EV market in the U.S. remains fairly sparse, European and Asian markets have become far more competitive over the past year, which could hinder the ambitious company’s growth. With EVs coming into the mainstream in most major markets, Hyundai Motor Group is in a fantastic position to seize the opportunity, and its ambitious goal is an excellent sign of optimism in a highly uncertain time.

Contributing factors to low EV savings include cold winter temperatures that hurt battery performance, electrical grids that rely largely on fossil fuels, or high electricity prices relative to gasoline prices.

The study evaluated three factors associated with the EV transition: transportation energy burden, fuel costs and greenhouse gas emissions. The researchers calculated transportation energy burdens and lifetime greenhouse gas emissions of new EVs and internal-combustion vehicles at the census tract level. Then they compared the energy burdens of the new vehicles to the energy burdens of the current on-road vehicle stock. Finally, they compared the spatial variation and extent of energy burdens and greenhouse gas emissions for EVs and internal-combustion vehicles nationwide.

Transportation accounts for the largest portion of the greenhouse gases emitted in the U.S., with direct emissions from passenger vehicles and light-duty trucks comprising roughly 16% of U.S. emissions.

Michael C. Buzzard, 20-year veteran of the automotive aftermarket industry, brings his wide range of executive leadership experience to the University of the Aftermarket Foundation (UAF) Scholarship Committee as its new chair. He will lead the nonprofit program that has awarded millions of dollars in scholarships to students enrolled in four- and two-year colleges as well as ASE/NATEF certified automotive, collision and heavy duty postsecondary schools.

Currently a partner with Schwartz Advisors, Buzzard has held leadership roles in marketing, sales management, corporate development and general management during his time with Auto Plus Auto Parts. Prior to his career at Auto Plus, he was an internal consulting services analyst at JP Morgan.

The deadline to apply for scholarships for the 20232024 academic year is March 31. To learn more, visit www. AutomotiveScholarships.com.

www.autobodynews.com

Source: University of the Aftermarket Foundation

UAF Scholarship Committee Chair Named