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Right to Repair Movement Made Strides in 2023, Looks Forward to 2024 As 2023 comes to a close, the CAR Coalition is looking back on key milestones in the effort to pass the federal REPAIR and SMART acts, as well as state bills that would address the right to repair issue.

majority—more than 80%—of Mainers voted “yes” on the state’s automotive right to repair referendum, adding momentum to the growing national push for right to repair protections.

Vol. 42 / Issue 2 / February 2024 REGIONAL NEWS

2024 California Auto Body and Collision Laws: Navigating the New Landscape By Jack Molodanof for Autobody News

Jack Molodanof, president of Molodanof Government Relations and an attorney and lobbyist for the California Autobody Association (CAA), explained the impending 2024 laws affecting the auto body and collision industry. What are some of the new laws auto body shops should know about?

Credit: Shutterstock.

December: REPAIR and SMART Act co-sponsor U.S. Rep. Marie Gluesenkamp Perez (D-WA) U.S. Rep. Jake Auchincloss (D-MA) and U.S. Rep. Jared Golden (D-ME) sent a letter to Secretary of Transportation Pete Buttigieg and National Highway Transportation Safety Administration (NHTSA) Administrator Sophie Shulman, warning that the agency’s proposed guidance for implementation of Massachusetts’ Data Access Law might unfairly harm independent repairers. November: Members of the U.S. House Energy and Commerce Subcommittee on Innovation, Data, and Commerce unanimously voted to advance the REPAIR Act to the full committee for consideration. Less than a week later, an overwhelming

October: At a White House National Economic Council (NEC) roundtable, key administration officials, state legislative leaders and industry representatives—including Federal Trade Commission (FTC) Chair Lina Khan, NEC Director Lael Brainard and Allstate’s Senior Vice President Don Jones, representing the CAR Coalition—highlighted growing bipartisan support for right to repair protections. September: During a U.S. House Energy and Commerce Subcommittee on Innovation, Data, and Commerce hearing, lawmakers and auto industry professionals expressed their support for federal right to repair legislation like the REPAIR Act. Earlier that month, the U.S. Bureau of Labor and Statistics

42 YEARS

Several new laws significantly affect auto body and collision repair businesses. Some notable changes include an increase in the state minimum wage to $16.00, though some local jurisdictions may have

higher rates; an increase in employee sick leave from three to five days; implementation of a workplace violence prevention plan; and the new Bureau of Automotive Repair (BAR) citation and fine program, which imposes fines of up to $5,000 on collision shops if an employee fails to comply with disclosure and documentation requirements. What is the BAR citation program? BAR oversees and regulates the auto repair industry in California, including the state’s approximately 6,000 auto body and collision facilities. The citation program is a new disciplinary measure, allowing l CONTINUED ON PAGE 4

REGIONAL NEWS

Washington State Unveils Bipartisan AI Task Force Legislation Washington is setting a precedent in the realm of artificial intelligence (AI) regulation with the introduction of bipartisan legislation aiming to establish an Artificial Intelligence Task Force. This initiative, announced by Attorney General Bob Ferguson in collaboration with Sen. Joe Nguyen, D-White Center, and Rep. Travis Couture, R-Allyn, seeks to convene a diverse group of stakeholders to navigate the complexities and potentials of AI technologies.

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INSIDE THIS ISSUE 8

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Columnist Mike Anderson: Increase Your Auto Body Shop’s Closing Ratio by Countering Customer Concerns Columnist Toby Chess: You Can Teach Old Dogs New Tricks

Columnist Stacey Phillips: CCC Brings in 2024 With New AI Solutions, Google Collaboration Columnist John Yoswick: Unique Collision Repair Training Program Shows Results

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Contents

COLUMNISTS Mike Anderson Increase Your Auto Body Shop’s Closing Ratio by Countering Customer Concerns 8

REGIONAL NEWS 2024 California Auto Body and Collision Laws: Navigating the New Landscape �� 1 California Bills Aim to Regulate Autonomous Vehicles �� 30

Keyes Motors Opens Honda Dealership in Van Nuys, CA �� 10

Toby Chess You Can Teach Old Dogs New Tricks �� 18

Mary Davis Returns to CAWA Manufacturers’ Advisory Council �� 9

Stacey Phillips Ronak ASE Education Foundation Updates HighVoltage, EV/Hybrid Safety Accreditation Standards ��6

California Cracks Down on Auto Insurance Issues �� 17

Washington State Unveils Bipartisan AI Task Force Legislation �� 1

GM Sues San Francisco for $121 Million Over Incorrect Tax Bill �� 27

West Coast Collision Centers Earn Toyota Certification �� 29

CCC Brings in 2024 With New AI Solutions, Google Collaboration �� 20 Hunter Showcases Award-Winning Ultimate ADAS™ at 2023 SEMA Show �� 22

Part 2: IDEAS Collide Presenters Encourage Collision Repairers to Think Differently, Outperform �� 12 John Yoswick CIC Committee’s Focus on New Technology Includes Looking for Training on OEM Software �� 16 Investment Banker More Bullish Than Ever About Collision Repair Industry �� 26 Unique Collision Repair Training Program Shows Results �� 14

NATIONAL NEWS ‘Who Pays’ Survey Finds More Shops Researching Battery Reconnect Procedures �� 29 ASE Education Foundation Names Officers, Board �� 17

I-CAR, Ford Launch New Repair Courses �� 37 John Bean Posts New ADAS System Videos �� 43

Index of Advertisers ADAS Calibration �� 10

Kendall Subaru of Marysville �� 28

American Chevrolet �� 29

Kia Downtown Los Angeles �� 44

Audi Wholesale Parts Dealers �� 32

Kia Motors Wholesale Parts Dealers �� 35

Auto Data Labels �� 13

Kia of Carson �� 4

Auto Chip Supply Shortages Now a Thing of the Past �� 27

Law Firm Preparing Class Action

Automakers Fulfill Autobrake Pledge for Light-Duty Vehicles �� 34

OPENLANE’s Launches Visual Boost AI �� 47

AutoNation Honda Costa Mesa �� 45

Kia of Irvine �� 27

Automakers with Large EV Portfolio Have Higher Website Satisfaction �� 46

Record-Breaking Auto Insurance Hikes

Axalta �� 7

Mazda Wholesale Parts Dealers �� 33

Expected in 2024 �� 33

BMW Wholesale Parts Dealers �� 37

Mercedes-Benz Wholesale Parts Dealers � 33

Right to Repair Movement Made

Camp Chevrolet �� 30

Michael Hohl Motor Company �� 17

2024 ��1

Car Pros Kia �� 40

MINI Wholesale Parts Dealers �� 37

Cummins Inc. Fined $1.675 Billion for Clean Air Act Violations �� 43

Rivian R1T Owner Says Truck Has

Car Pros Kia Renton �� 38

MOPAR Wholesale Parts Dealers �� 31

Been Out for Repairs for 8 Months �� 42

CCC Intelligent Solutions �� 11

Niello Audi �� 22

DataTouch Launches VINAnonymize to Prevent Reporting Services from Using Estimate Info �� 37

Romans Group Releases 2022

Certified Automotive Parts Association �� 20

Nissan/Infiniti Wholesale Parts Dealers �� 23

Marketplace �� 44

Chase Chevrolet �� 33

NorthAmerican Bancard �� 9

SATA Acquires Dan-Am Company �� 45

Citrus Kia-Ford �� 17

Porsche Wholesale Parts Dealers �� 43

Classifieds �� 46

ProSpot �� 2

Colortone Automotive Paints �� 26

RelyOn Technologies �� 5

Corwin Buick-GMC �� 34

Roseville Kia �� 36

High, CO2 Emissions Record Low in

Courtesy Chevrolet San Diego �� 15

Sandberg Volvo Cars �� 16

2022 Cars �� 41

Dublin Chevrolet �� 18

Santa Margarita Ford �� 42

Volkswagen Partners with AI Company

Fairview Ford Lincoln Mercury �� 45

Santa Monica Audi �� 36

FH Dailey Chevrolet �� 29

Southern California Collision Equipment �� 48

Ford Wholesale Parts Dealers �� 41

Subaru Wholesale Parts Dealers �� 47

Future Nissan of Roseville �� 20

The Bay Area Automotive Group �� 19

Galpin Motors �� 21

Vin Label Shop �� 28

Garden Grove Kia �� 27

Volkswagen Pasadena �� 40

GM Wholesale Parts Dealers �� 39

Volkswagen Wholesale Parts Dealers �� 43

Honda-Acura Wholesale Parts Dealers 24-25

Volvo Wholesale Parts Dealers �� 26

Hyundai Wholesale Parts Dealers �� 37

Zip’s AW Direct �� 8

CAPA Announces Executive Director �� 33 CIECA Announces New Member ShopLoaner �� 36

First Real-World Tesla Cybertruck Crash Raises Safety Questions �� 30 GasBuddy Predicts Lower Gas Prices in 2024 �� 36 GM Buys Out Nearly Half of Buick Dealerships �� 41 GM Tops U.S. Auto Sales in 2023, Surpassing Toyota �� 38 Honda to Launch ‘0 Series’ EV Globally in 2026 �� 40

Lawsuit Against Driven Brands �� 32

Strides in 2023, Looks Forward to

Profile of Evolving Collision Repair

SATA Showcases SATAjet® X 5500 Universe, SATA® QMR at 2023 SEMA Show �� 28 U.S. Fuel Economy Hit New Record

to Integrate ChatGPT in Vehicles �� 47

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New Landscape the BAR to issue fines for various paperwork violations, such as: Improper estimates Customer authorization Invoice requirements Deviations from BAR accepted trade standards Return of parts Sublet repairs Advertising and guarantee requirements Failure to maintain and produce records among other violations

complaints, assessing documentation to determine if any violations occurred and if a citation and fine is warranted. Penalties of this nature can lead to financial losses and pose a risk to your business reputation. The BAR citations are publicly accessible on their website, making them visible to insurers, customers and competitors. This

How the new BAR citation program operates If an auto body shop receives a consumer complaint, the BAR will investigate to determine if a citation and fine are warranted. In the event a citation is issued, the shop may have the option to appeal the citation and fine through a process involving a three-member panel representing BAR, the public and the automotive repair industry. If the collision shop is eligible, it may prevent public disclosure of the citation on the BAR website. This is possible by having the owner/principal and the employee involved in the violation complete an eight-hour course taught by a BARcertified remedial training provider, similar to traffic school. Should shops be concerned about the BAR citation and fine program? Absolutely. It’s crucial for body shops to pay attention to the BAR citation and fine program. Annually, the BAR receives approximately 16,000 consumer complaints related to automotive repair, with 19%— about 3,000 complaints—specially concerning auto body issues. The BAR thoroughly investigates these

No, they are not. Companies offering collision shop management software to California shops are not under the oversight of BAR. Reports indicate some software programs may expose auto body shops to compliance risks. Despite discussions in legislative hearings about the potential for BAR oversight of shop management companies, no action has been taken thus far. Auto body and collision shops bear the responsibility of compliance and have been advised by the BAR to verify the software’s compliance before use. If necessary, shops should override or overwrite the software to ensure compliance. What steps can a shop take to prevent BAR issues?

visibility threatens the standing and image of your business. Furthermore, these violations remain on the BAR website for a minimum of seven years. Does a shop need to worry if its collision estimators have years of experience? The answer hinges on whether a shop’s estimators and other employees have a comprehensive grasp of the laws associated with BAR disclosure and documentation requirements outlined in the Automotive Repair Act. Collision estimating courses may not prioritize instructing and testing on various BAR laws impacting a business. Instead, they often focus on boosting sales, customer retention and CSI scores. Customers anticipate the auto body shop they choose not only has the proficiency to fix their vehicle but also adheres to California consumer protection laws.

Proactively address consumer concerns to prevent escalation into BAR complaints. Avoid assuming employees, especially estimators, are well-versed in all the BAR laws and regulations, or that collision management software is automatically BAR compliant. Ensure employees undergo proper training and testing by a certified BAR training provider before a BAR representative visits the shop. This is crucial, as the BAR evaluates various factors before deciding to

issue a citation and determining its amount. If an employee was trained in the relevant subject matter and still violated the regulations, it may weigh in favor of finding “good faith” on the part of the shop and weigh against issuing a citation and fine. Conversely, inadequate training leading to a violation may show “bad faith,” influencing the fine amount. For more information on training and providers, go to the BAR website at https://www.bar.ca.gov/calarc Molodanof has specialized in automotive, administrative and regulatory law for more than 30 years. He is considered an expert in California for the automotive repair industry and represents several of the largest state associations, including the CAA, the Automotive Service Councils of California and the California Automotive Business Coalition. He serves on the California Bureau of Automotive Repair (BAR) Advisory Group, which provides input on BAR programs, and is a certified BAR remedial training provider, authorized to instruct on laws and regulations related to the Automotive Repair Act. He is also co-founder of EduTech, a company that offers online BAR educational courses. Contact him at jack@mgrco.org.

Are collision shop management software companies responsible for BAR compliance?

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ASE Education Foundation Updates High-Voltage, EV/Hybrid Safety Accreditation Standards By Stacey Phillips Ronak Autobody News

Since 1972, the National Institute for Automotive Service Excellence (ASE) has worked to improve the quality of vehicle repair and service by testing and certifying automotive professionals. More than a quarter of a million individuals hold ASE certifications developed by the nonprofit organization. The ASE Education Foundation works with more than 2,000 automotive technology training programs and more than 100,000 students nationally to provide a skilled entry-level workforce through its standards and accreditation. The foundation also offers career development through its partnerships. The ASE Education Foundation recently revised its accreditation standards for trucks and collision repair training programs, specifically focusing on the tasks, tools and equipment related to high-voltage (HV) systems. These include those found on electric vehicles (EVs) and hybrids. To learn more about the new highvoltage and EV/hybrid standards, Autobody News talked to Dave Johnson, ASE’s new president and CEO, and Donna Wagner, who transitioned from assistant vice president of the ASE Education Foundation to the role of vice president of industry and media relations for ASE. you share background Q:Can information about ASE? Johnson: ASE was founded in 1972 out of a concern about repair quality and honesty in the automotive repair industry. The U.S. federal government was considering requiring licensure as a national initiative. However, auto companies and the National Automobile Dealers Association (NADA) collaborated to regulate themselves. The aftermarket industry was invited to this unique entity. Out of that group, ASE was born. The nonprofit organization’s mission is to promote the recruiting, training and retention of professional automotive technicians, and advance the automotive service industry so that customers receive the kind of service care they deserve from quality, knowledgeable, certified technicians. ASE’s Board of Directors consists of what I call “a community of cats and dogs living together in harmony.” Representatives include OEMs, dealers, aftermarket repair industry

leaders, independent shop owners and tool and equipment suppliers. In the natural environment, they might be more interested in competing against each other rather than working with each other. Because of ASE’s mission, they recognize the benefits and work together marvelously. Initially, ASE was more focused on the mechanical side of the industry, but that quickly grew to include collision. With Advanced Driver Assistance Systems (ADAS) and new technologies, the industry recognizes that collision is just as important as mechanical.

of mechanical and collision repair capabilities. In the automotive service industry, some businesses may take the importance of whether somebody is really an ASE-certified professional lightly. While there are licensing boards in a few states that use the ASE certification process to satisfy their requirements, it is otherwise voluntary. Some businesses even advertise that they are “certified” without saying who certified them. This means they are not ASE-certified. That’s why we are focused on delivering an accreditation process for all training programs so customers get what they deserve: ASE-certified service professionals. is the importance of Q:What accreditation and certification?

The ASE Education Foundation works with more than 2,000 automotive technology training programs and over 100,000 students nationally. Photo courtesy of ASE

An indicator of the increased focus on collision is the ongoing collaboration with the ASE Education Foundation and the Collision Repair Education Foundation (CREF), as well as working even more closely with the Inter-Industry Conference on Auto Collision Repair (I-CAR) as we bring together ASE training program accreditation, I-CAR curriculum and ASE certification testing. The goal is to help provide the best-certified collision technicians from qualified training programs that meet collision industry standards. are ASE’s accreditation Q:How standards developed and used by the industry?

Johnson: One of ASE’s charters is to bring together subject matter experts (SMEs) from across the industry, which include OEMs and collision repair experts, to determine the appropriate levels of knowledge and capability to repair a vehicle. You have the best of both worlds with the OEMs that have spent years designing vehicles and those with actual on-the-ground repair experience. They work together to develop those standards, which are shared with educational institutions and trainers. Combine this with all the great work of I-CAR and CREF in the collision repair education arena, and you have the foundation for supporting this critical intersection

6 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

Johnson: ASE has developed accreditation standards to enable schools to prove that they have the wherewithal to teach and train to the standards set by the industry and facilitated by ASE. When students come out of those programs, they can say they have been trained with something relevant to the work that they’ll be doing. Unfortunately, there are too many schools that teach to their own standard. Sometimes, it’s what we call a hobby shop where they work on somebody’s favorite hot rod. They’re not learning the critical skills and receiving the knowledge that will enable them to enter the workforce once they’ve received their certificate or graduation diploma. It may not mean anything if they haven’t been teaching to standards.

What new ASE collision standards are being created?

Wagner: Every three years, we look at updating our standards in response to the changes taking place in the industry. We rotate between the collision, automotive and medium/ heavy truck programs. We recently looked at what was being taught and what the industry was asking for from entry-level technicians. Then, we developed an accreditation focused on the tasks and skills that entry-level technicians are expected to perform when they come out of their high school and college programs. With the shortage of technicians, it’s important that students are focused on what is most important for the businesses hiring them and they have entry-level skills they can build upon. The better prepared they

are to enter the workforce with some training, the easier it will be for them to move up their career path. It also allows businesses to hire someone productive from day one. We’re adding high-voltage standards for EVs to ensure safety for the person working on the vehicle and consumers. This new area of accreditation for collision is focused on entry-level skills. are some of the outcomes Q:What of ASE accreditation? Johnson: From the studies we’ve conducted on the mechanical side with a big aftermarket partner, there is about a 40% higher productivity of certified ASE-certified techs versus those who are not certified and about 60% lower comebacks or repeat repairs, which is huge. That’s up to two to three times the retention of those certified techs. is the importance of Q:What industry involvement in ASE to help create standards?

Johnson: There are real challenges facing the transportation industry, from the need to attract and retain service professionals to complex vehicle designs and advanced technologies that demand more knowledge and ability than ever before. Having lived with these challenges firsthand and working within one company to address them, I view ASE as the place where the industry can come together to multiply our efforts, influence and accomplishments and rise to meet these challenges. Wagner: ASE is industry-driven. For service professionals, industry SMEs help create certification test questions and task lists. In regards to secondary and post-secondary training programs, the industry creates accreditation standards and task lists that align with their needs. Every accredited program has an advisory committee made up of local employers. This is the industry’s opportunity and responsibility to show up and ensure that program meets their needs. ASE is “cradle to grave” for service professionals. Let’s get students into ASE-accredited programs, nurture them, treat them well, pay them well and give them a career path so that they have a positive experience and a long, successful career. For more information about ASE accreditation, certification and training resources offered, visit www. ase.com.

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Mike Anderson — From the Desk of Mike Anderson

Increase Your Auto Body Shop’s Closing Ratio by Countering Customer Concerns Whenever a shop approaches me looking for help with marketing, my first question is always, “What’s your closing ratio?” Because before you try to attract more potential customers to the door, you need to make sure you’re converting enough of the current “shoppers” coming to your door into “customers” who make an appointment to have their car repaired. So if you aren’t doing so already, track your closing ratio for 30 to 60 days. If you write 100 estimates and get 60 of those jobs, you have a 60% closing ratio. And if your closing ratio isn’t 85% or better, you need to focus more on “selling” than on “marketing.” Think about it: Let’s say you have a 65% closing ratio and you currently have annual sales of about $2 million. You can quickly estimate your potential sales from all your estimates is about $3.07 million ($2 million current sales divided by 0.65 closing ratio). If you could nudge up your closing ratio by capturing just 10% of those lost sales, you’ve added $307,000 to your annual sales without

spending a dime more on marketing. But to do this, it’s not enough to know just your closing ratio. You also need to know WHY people didn’t schedule repairs with you. What was their reason, their objection?

Shops should help their sales team develop scripts to counter the most common customer objections. Image via Shutterstock.

It could be because they felt they need to get multiple estimates. It could be because they need to check with their spouse. It could be because they think your shop is too expensive, or because their insurer told them you are hard to work with. It could

because they need a loaner car or want their deductible waived. Track these objections either manually or with your shop management system. Here’s why: In my shops, we were determined to keep our closing ratio high, to let as few of the potential jobs that came to our door get away. So once a month, I’d bring the office staff together and we’d look at our closing ratio number. We’d also look at the reasons we weren’t able to get potential customers to schedule appointments for repairs. We’d then brainstorm what we could do to overcome the objections we were hearing. We’d use those discussions to build sales scripts and training that address those objections, one at a time. Then we’d roleplay the scenarios so they could practice and learn how to overcome those objections. If the objection was that another shop has a loaner car, for example, we’d make sure the potential customer knew we offer them free pick-up and delivery within 10 miles of the shop, and estimators could

extend this range based on the job. We’d make sure they knew we could coordinate a rental they could pick up and drop off at the shop. We’d offer to contact their insurer if they weren’t sure if they had rental car coverage or not. We could offer them some mass transit passes, or as appropriate, take advantage of some of the free rental days our rental car vendor offered us. We built a whole series of these types of responses for a variety of different objections we encountered. While I think going through this process with your own staff is a valuable exercise, you can also download the “Overcoming Objections” document we developed at my shop from the “Forms, Tools and Links” section of my website, tinyurl.com/collisionadvice. So before you pour dollars or effort into marketing to get more potential business to the door, measure how much of that potential business you’re capturing. And if it’s not 85% or better, put some effort into helping your team overcome the objectives they’re hearing.

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Right To Repair

Mary Davis Returns To CAWA Manufacturers’ Advisory Council Mary Davis of Niterra has been appointed to the California Automotive Wholesalers Association (CAWA) Manufacturers’ Advisory Council, a notable return for Davis. “CAWA welcomes back Mary to the leadership of CAWA,” said Tom Ogaz, chair of the Board of Directors. “I am looking forward to her service and we appreciate her commitment to the industry and the association. I look forward to her participation and contributions to CAWA in assisting the association in achieving its goals as an effective and valuable automotive care industry organization.” Davis’s extensive experience in the automotive industry spans over three decades. Her journey with CAWA began as a member of the Board of Directors, where she served for six years. She then took on a more prominent role as chair of the Board of Directors in 2011. Her initial involvement with the Manufacturers’ Advisory

released its August Consumer Price Index (CPI) report, which showed vehicle repair prices had jumped 17% over the past year, outpacing the overall inflation rate by nearly five times. August: The NHTSA finally agreed automakers can comply with Massachusetts’ Data Access Law, a vehicle data access measure approved by more than 3 in 4 of the state’s voters in 2020. July: The U.S. House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet held a hearing that zeroed in on automotive right to repair and the need for bipartisan, federal solutions like the SMART and REPAIR acts. Earlier in the month, the Alliance for Automotive Innovation (AAI), a trade group representing nearly all major automakers, signed a memorandum of understanding (MOU) with the Society of Collision Repair Specialists and the Automotive Service Association stating “independent repair facilities shall have access to the same diagnostic and repair information that auto manufacturers make available to authorized dealer networks.” June: In a “rare step,” the U.S. Court of Appeals for the Federal

Council (MAC) lasted eight years, including three years as chair. Currently, Davis is at Niterra North America, previously known as NGK Sparkplugs, USA, as a regional sales specialist for the Western Division. She works closely with NAPA Auto Parts, leveraging her vast industry experience to foster growth and innovation. Apart from her professional commitments, Davis actively contributes to the cultural and historical aspects of the automotive world. She serves on the Board of Directors of the California Automobile Museum. Her leadership extends to cultural realms as well, where she is the president of the Croatian American Women’s Club and a board trustee of the Croatian American Cultural Center. Additionally, her love for vintage automobiles is showcased through her membership in the Vintage Car Racing Club.

Circuit granted an “en banc” review in LKQ Corp v. GM Global Technology Operations LLC, a case that could change how design patent validity is determined and, ultimately, help put a stop to anticompetitive OEM practices. May: Columns in both the Washington Post and the National Review underscored the strong and growing bipartisan appeal of the right to repair movement. April: At a U.S. House Energy and Commerce Subcommittee on Innovation, Data, and Commerce hearing, FTC Chair Khan detailed the agency’s ongoing commitment to rooting out automaker repair practices that harm consumers and small businesses. March: A group of 28 bipartisan attorneys general sent a letter to leaders of the U.S. House Committee on Energy and Commerce and Senate Committee on Commerce, Science, and Transportation urging Congress to advance bipartisan right to repair measures like the SMART and REPAIR acts. Throughout this year, the right to repair movement has been gaining steam, but the CAR Coalition is urging proponents to keep their foot on the gas in 2024, by telling their representative to pass bipartisan federal legislation like the SMART and REPAIR acts.

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autobodynews.com / AUTOBODY NEWS FEBRUARY 2024 9

l CONTINUED FROM COVER

AI Task Force The proposed task force is a response to the rapid development and increasing popularity of generative AI, exemplified by tools like ChatGPT. These technologies have shown exponential growth, becoming some of the fastest-growing consumer internet applications ever. A recent survey revealed 79% of North American respondents have encountered generative AI, with 41% using it regularly and 22% employing it in their workplaces. The proposed Senate Bill 5838 and House Bill 1934 envision a 42-member, bipartisan task force comprising legislators, state agency representatives, tribal members, technology experts, civil liberty advocates, consumer advocates, businesses and other relevant parties. This group will meet at least biannually and is tasked with delivering a preliminary report by Dec. 1, 2025, followed by a final set of findings and recommendations by June 1, 2027. Key areas of focus for the task force will include establishing guiding principles for the use of generative AI, identifying high-risk

AI applications, supporting and protecting AI innovation, educating the public about AI development and use, and reviewing a range of public policy issues. These issues span the benefits and risks of AI, its impact on historically excluded communities, racial equity considerations, workforce implications and ethical concerns. This legislative move places Washington among the forefront of states actively addressing the challenges and opportunities presented by AI. Already, at least 25 states have introduced AI-related legislation, with Colorado, Illinois, Vermont and Virginia establishing similar task forces or commissions. Ferguson introduces a series of Attorney General Request bills each legislative session, often getting bipartisan support.

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Keyes Motors Opens Honda Dealership in Van Nuys, CA Keyes Motors, Inc., a longstanding automotive dealer in Los Angeles, announced the opening of its latest venture, Honda Van Nuys, a dealership that promises to redefine the car buying experience with cuttingedge automotive technology and a commitment to community engagement.

Located at 6001 Van Nuys Blvd., the new dealership will offer customers a chance to explore the latest Honda models in a comfortable, modern setting. “We are thrilled to open our new state-of-the-art dealership in Van Nuys and be a part of

this thriving community,” said Howard Keyes, president of Keyes Motors. “We have created a dealership that embodies the excitement and innovation of the automotive industry.” Honda Van Nuys has introduced a unique giftmatching program, wherein employee donations to charities are matched dollar for dollar, up to $1,000, encouraging employee philanthropy and aligning with the dealership’s mission to positively impact the local community. For more than 75 years, Keyes Motors, Inc. has been a prominent name in the Los Angeles automotive scene, known for its customer-centric approach and extensive inventory. With the launch of Honda Van Nuys, the company seeks to elevate the standard of car dealerships, both in terms of customer experience and community involvement. “We look forward to welcoming everyone to our new home and being a positive contributor to the Van Nuys community,” Keyes said.

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Bowen’s Collision Drives Shop Confidence with CCC® Diagnostics Workflow For 27 years, Bowen’s Collision has been a pillar of the Columbia, South Carolina community, but it was only in the last two years that the family-owned and operated business experienced impressive growth, adding two new locations, with plans to open more in the next few years. General Manager Scott Austin attributes Bowen’s Collision’s success to their world-class customer service and top-quality repairs.

Putting customers first and delivering high-caliber repairs wouldn’t be possible without consistent performance, which is why Austin focused on developing more standardized routines and processes for his technicians to streamline things like diagnostic scans, which he believes gives Bowen’s Collision a competitive edge. In fact, the decision to scan every vehicle that comes into the shop was a “no-brainer,” according to Austin, because the benefits of doing so far outweigh the drawbacks. He said most manufacturers no longer recommend scans –– they require them, yet not every shop does them consistently. “Scans cover all the bases,” says Austin. “Pre-repair scans help us find out where the initial problems are and eliminate others right away. Documentation beats conversation and having all the information up front helps us know what we’re getting into and be prepared to have a discussion if we have to. It’s good for our customers and it’s great for our shops.” Austin says the benefits of knowing more about vehicle damage earlier in the repair process can help save everyone time,

money, and resources, which leads to happier customers. It’s also increased revenue and profitability for his shop, he said. The cost of a brand-new scanner quickly pays for itself because the shop can bill carriers or self-paying customers for each scan, and the scans aren’t time-consuming to perform. The problem shops often have with integrating diagnostics into their repair processes is “remembering not to forget” to scan or calibrate, sometimes even resorting to sticky notes to remind them of these critical tasks. Austin says that’s why he uses CCC® Diagnostics Workflow, because it helps his team integrate diagnostics into every single repair plan and keep track of every scan all in one place. The result? A diagnostics process that comes naturally to his technicians. They no longer need reminders, and they don’t even have to think about it –– it’s simply a required operation for every vehicle, every time.

“You’ve got to make sure you do it, because it’s the times you don’t that you get whistle bit,” Austin says. “We’re all about helping people –– that’s truly our mission, and if we can make a customer feel better about their repair knowing we did everything we could to diagnose the problem, well, then, we’re practicing what we preach.”

To learn more about CCC Diagnostics Workflow, visit www.cccis.com/diagnostics autobodynews.com / AUTOBODY NEWS FEBRUARY 2024 11

Part 2: IDEAS Collide Presenters Encourage Collision Repairers To Think Differently, Outperform By Stacey Phillips Ronak Autobody News0o

Editor’s note: This is the second part of a two-part article on the IDEAS Collide Showcase held during the 2023 SEMA Show. See the December 2023 issue of Autobody News for the first part. Collision repair professionals from a variety of backgrounds took part in the IDEAS Collide Showcase held during the 2023 SEMA Show in Las Vegas, NV. Participants shared their “grand schemes” for how the industry can improve and think differently. The presentations were part of the Society of Collision Repair Specialists (SCRS) Repairer Driven Education (RDE) Series. Three are summarized below. Death of the Estimator Role Andrew Batenhorst, body shop manager at Pacific BMW in Glendale, CA, shared his perspective on the transition from estimator to repair planner.

Andrew Batenhorst, body shop manager at Pacific BMW in Glendale, CA.

Batenhorst warned attendees about the problems the industry is facing with staffing shortages, needing to get paid more by bill payers and lack of a work-life balance. “That is all due to the pervasive influence of the estimator role,” he noted. “It’s time for it to change.” Batenhorst said there are hundreds of estimator roles waiting to be filled. “We’re unfortunately plagued with high turnover and we’ve become very complacent to it,” he said. Looking back, Batenhorst said the Ford Taurus was a best-selling car in 1993. Fast forward to 2023, and Tesla was one of the top sellers. “You can’t take the same mindset with assessing damage to that vehicle, understanding what it’s made out of with the same lens that we’ve been using for the past 30 years,” Batenhorst pointed out. “The market has dictated these changes in automobiles, but still, the estimator role persists the way it has.” With many estimators working an average of 10 or 12 hours a day, he said they are focusing on a

variety of tasks, including checking in customers, scheduling, verifying insurance coverage, taking payments and delivering vehicles. This is resulting in burnout, high supplement rates, lengthy repairs and unhappy customers, among other challenges. Instead, Batenhhorst said there are more valuable things they could be doing. “It really has become a catch-all position in most modern body shops,” he said. “I challenge all of you to take a seat, watch what is going on and what they’re doing throughout the day.” Batenhorst said it’s not too late to fix these problems. He shared a quote from Shigeo Shingo, one of the founders of the Toyota Production System: “The first step in improvement is dissatisfaction with the status quo.” Later in the week, Batenhorst gave a presentation outlining a system for separating the estimator role and shifting to more thorough repair planning. “I feel so strongly about this that I can’t be the only guy doing this anymore,” he said. “I genuinely feel this will bring a lot of positive change to the industry.” Growth Through Acquisition Bing Wong, managing partner of Collision Builders, talked about the key things body shop operators need to know when considering growing their business through an acquisition.

Bing Wong, managing partner of Collision Builders.

He said an acquisition avoids many of the costs of starting from scratch, such as finding a lease, buying equipment, waiting on permits and contractors and hiring staff. Some upgrades and changes might be required; however, Wong pointed out most “decent shops” have several weeks of work booked out. If the goal is to be part of a network, Wong said by purchasing an existing network shop, there won’t be any upfront franchise fees or rebranding costs. Another benefit of pursuing an acquisition is the ability to integrate a competitor in a key territory. His team often sees great acquisition

12 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

opportunities at affordable entry points in secondary and tertiary markets where the larger consolidators tend not to buy. When looking for an acquisition, Wong recommended focusing on location, capacity, staff, reputation and network status. Wong estimated set-up costs at the lower end of the market start around $250,000 in addition to the time it takes to upgrade the facility. Wong said most deals are being sold for three to five times adjusted earnings; however, there are outliers above and below that range. When purchasing a shop under $2 million in sales, Wong said it’s likely a family business, where the owner/ operator also paints some vehicles, may own the building and pay himself or herself rent and/or a salary, which might not show up in the financials. “You’ve got to have somebody go through the normalization of earnings so you know what you’re buying and there are no surprises,” he said. For shops in the $3 million to $5 million range, Wong said potential buyers are likely competing with big consolidators and/or private equitybacked businesses. “You need to understand how to come up with an offer quickly, whether you’re paying a premium or a discount so you can compete in that environment against the bigger buyers,” he explained. He also stressed the importance of determining financing. Wong recommended shop owners refrain from spreading themselves too thin during the process, hire the proper counsel, and most importantly, not share the purchase plan with others. “We’ve seen many deals go sour because the buyer or the seller couldn’t keep it a secret until the deal was done,” he said. The Culture Code Tracy Dombrowski, training manager at Collision Advice, talked about the importance of body shops building a strong culture in their businesses. Dombrowski said a team at Harvard University chose 10 body shops and analyzed their culture over 10 years. They found the net revenue of the businesses with a strong culture outperformed those with a weak culture by 756%. “That’s huge,” said Dombrowski. “The relationship between performance and culture is more than a mere coincidence, but implementing a strong culture in your business is not easy.”

During her presentation, Dombrowski shared tips from a book by Daniel Coyle, “The Culture Code.” First is to focus on safety and connection with teams. “As adults, we want to feel safe and comfortable in the environments we work in,” she said. “If leaders have all the status and privilege in a business, they’re unapproachable and we feel like we can’t bring them our ideas.” She said employees often don’t feel they can be candid when things aren’t going well and don’t take risks because they fear reprisals.

Tracy Dombrowski, training manager at Collision Advice.

“Businesses that have a good, strong culture have a do it with them versus a do it to them approach and treat people with respect,” she noted. “They ask for their advice and opinions, and they include team members in decisions that impact them.” Dombrowski stressed the importance of making sure everyone has a voice. “Never end a meeting without everyone on your team having spoken, and thank people for their contributions, no matter how big or small,” she shared. “When they can do that, powerful things start to happen in your business.” Step two is to share vulnerability. “This means that the leader in a business is willing to admit their mistakes and ask for help,” she explained. Dombrowski said when a leader can share their weaknesses and vulnerabilities, teammates can put aside their insecurities and ask for help. The final point from Coyle’s book is to talk about purpose. Dombrowski said this is a shared goal or vision for an organization that includes what you’ll do and why. “If you can remember to give everyone a voice, share vulnerability, ask for help, admit your weaknesses and share that purpose with your team, then you’ll be able to thrive and not just survive in your business,” she said.

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Unique Collision Repair Training Program Shows Results By John Yoswick Autobody News0o

Since 2020, a program in place at a handful of collision repair training programs at secondary schools across the country has taken a unique approach to increasing the quality— and hopefully, quantity—of new technicians entering the industry. The Collision Engineering Program, largely funded initially by the Enterprise Holdings Foundation and subsequently joined by Ford Motor Company, trains collision repair students by rotating them every eight weeks between school and working in a shop.

said. “That’s a problem, and I want to change that. I just don’t know that we can have the conversation about labor shortage if we don’t. I do feel the industry really is doing a really good job of isolating 50% of the population, just with its general culture. I think a program like this is exactly what we need to change that perception of the industry. It gives young women who want to enter the industry a very safe way to do that.”

together a family’s second-biggest investment. So I wanted to make sure that I’m not going to be picking up bad habits.” Having that in her mind didn’t necessarily result in a good fit with a shop at first, she said, but the program is a supportive environment for staying on course.

Tech Says Program Worked for Her Indeed, the CIC panel included a woman working in a shop after completing the Collision Engineering Program at College of Lake County Technician Karina Badillo said the format of the Collision Engineering Program led her choose to study collision repair.

A panel of students, instructors and shop employers at CIC discussed the success of the Collision Engineering Program.

Three years into the effort, which now involves seven schools, a panel of those involved with the program— students, instructors and shop employers—discussed what they see working about the program. Amber Alley, manager of Barsotti’s Body and Fender in San Rafael, CA, said she’s been involved with the program for about three years, now working with her second student from Contra Costa College. “Both have been so different personality-wise that it’s [led to] personal growth for me as a manager,” Alley said during the Collision Industry Conference (CIC) that took place in Las Vegas during SEMA week. “I think it’s made me better, more self-aware. You want to see these young people succeed. They’ve taken the first step. They have already identified this as being an industry that they want to pursue a career in. So there’s a call to action for us as shops. We have a problem, and we can complain about it, or we can look at this new idea and see if there’s something there.” Alley said when she attended the graduation ceremony for her first student completing the program, there was a woman graduating from the program at the same time. “I’ve been 30 years in a management position of some capacity in the industry, and I’ve never employed a woman technician,” Alley

in Illinois. Karina Badillo said the structure of the program contributed to her choosing the collision repair trade. “When I was picking a career, I knew I wanted to be passionate about it, but I also knew I wanted to make an impact, and the trades have that to offer,” Badillo said. “When I first started college, I bounced around through welding and through automotive technology, but they didn’t have a program that was similar to this. Once I saw that there was the eight weeks on and off, and that you can really connect the bookwork to the actual hands-on experience that the real world has to offer, I noticed that the rest of the classes weren’t amounting to as much. I personally felt like I could grow more. I’m very focused on wanting to continue learning, and this program had that to offer, so I fell right in line with it.” She knew what she hoped to find at the shop where she would be working during the program. “I wanted to know that the shop was just as eager to learn about what was coming with the next [vehicle] models as I was to learn about the cars,” she said. “In school, we were always learning about [OEM] procedures and looking everything up and printing it out and making sure that everything was done the right way. I mean, these are really important things. We’re putting

14 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

“I’m an example of [someone having] been in both a really good shop and one that was not so welcoming,” she said. “Instead of giving up, I was able to go back, I had a team [at the school] behind me, and they were able to help guide me into where I fit.” The Instructors’ Viewpoint Octavio Cavazos, a collision repair instructor and department chairman at the College of Lake County, said his program has two cohorts of students: one that does all of its training at the school, and another in the Collision Engineering Program. “The significant difference [with the Collision Engineering students] is how fast they are able to grow in their career,” Cavazos said. “There’s no difference between the two [groups] the first eight weeks. It isn’t until they enter the [shop] for that first week that they are able to see how all that learning they did for the first eight weeks is actually turning into handson skills. “Once they come back for that second semester, after being out for that first internship, that’s when you see the light bulb turning on,” Cavazos said. “That’s when they come back with more questions, more hunger for the knowledge. They want to learn. After that first semester, you have a completely new student cohort on your hands. You almost have to try to keep up with them.” What do the instructors in these programs look for in the shops where students are placed? “They generally have to be a certified shop,” said Laura Lozano, an instructor and chairman of the auto body department at Contra Costa College in San Pablo, CA.

“We appreciate that, and look for engagement with I-CAR training, OEM training, and that they’re properly equipped. We do a lot of meeting with the shops and getting to know their culture, getting to know their technicians who would be mentors of our students. The biggest piece in all of this is finding an employer, a manager, who is open to going through this process with the student and with the college. We call it a triangle of communication between student, employer and the school, being able to meet the student where they are, as they evolve through the program.” ‘This is the Solution’ Tiffany Silva of Accurate Auto Body in Richmond, CA, said her shop is working with its third student going through the Collision Engineering Program.

Shop owner Tiffany Silva said the Collision Engineering Program is part of the solution the industry needs to the technician shortage.

“This is the solution. We are here to tell you that it has worked for us,” she said at CIC. “The success of this program is something that we need to see nationwide, and then we will stop complaining about the shortage of techs.” Silva said the help and support from Lozano and the other staff at Contra Costa College where the students are enrolled has been awesome.

“This is the solution. We are here to tell you that it has worked for us.” — TIFFANY SILVA ACCURATE AUTO BODY

“It is just so vital when I think about it,” Silva said. “When you hire someone off the street, you get that technician. When you hire a Collision Engineering student, you get a whole team behind that student. Even now that two of my students have graduated, Laura is still helping to coach them and still has a presence in our shop. She comes through and checks in and sees how they’re doing.”

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CIC Committee’s Focus on New Technology Includes Looking For Training on OEM Software By John Yoswick Autobody News

The Collision Industry Conference (CIC) Emerging Technologies Committee this past fall wanted to see how easy it was for users of OEM scan tools and service information to locate training on their use. “So I picked six big car manufacturers and said, if I was a newbie and I went to their website, in four mouse clicks or less could I find a training video or a training module on how to use their factory software,” said Bob Augustine of Opus IVS, who co-chairs the committee. At the Mopar Tech Authority site, August searched for “wiTECH,” the automaker’s diagnostic system. “I immediately came up with at least a video for how to flash an ECU

within four clicks. His contact at Toyota first assured him the training was all there, but then checked himself and saw the link was no longer there. “He’s actually going to go fix that,” Augustine said. “So we consider that a small victory. And I was never able to find a training module on how to use HDS or I-HDS on Honda’s website, so we’ll have that conversation as well.”

New Skillsets Needed in Shops

During the CIC committee’s presentation at the meeting Las Vegas during SEMA week, Augustine said as more collision shops recognize they need a specialized diagnostic technician as much as most mechanical shops do, another needed skillset may be overlooked. Given the nature of accessing OEM repair information and diagnostic tools, he said, having IT expertise internally is “not only important, it’s actually necessary.” Keeping the laptops current, with the latest software versions, for example, is a necessary challenge, he said, given the OEMs “literally update their software every day.” “So you have to factor in that maybe you haven’t used that tool in a couple weeks,” Augustine said. Bob Augustine, co-chairman of CIC’s “Emerging Technologies Committee,” said shops are increasingly “The vehicle comes in, needing IT expertise in-house you’re going to have some delay time just getting up with wiTECH,” Augustine said. “So to the current [software] version. I considered that a success. If we Because they’re going to force you learn how to flash with wiTECH, we’re to always have the latest version. So, already in the software, we’re already software management skills, IT skills, using it.” security skills. And I say security not General Motors’ service in terms of vehicle security, but IT information site, Techline Connect, security on laptops. has a training page that includes an “A lot of these programs are very entire web-based course, Augustine finicky about virus programs and said. “This is the same one the dealers browsers and things like that. And use, for their entire Techline Connect so you have to be aware that it’s not suite. Very easy to find,” he said. simply install the software and you’re The Ford MotorcraftService. ready to go,” he continued. “A lot of com website has a class specific to times you’re going to have to have collision repair. “I thought this was some very specific expertise. If you pretty cool,” Augustine said. “Rather don’t have somebody in-house that is than a full-on training class on how really skilled in IT, you’re either going to use IDS (Integrated Diagnostic to need to add that skillset or you’re System), it’s very specific to how going to have to have a vendor or a collision repairer would use the somebody that can do this for you.” software. They’ve also got a module specifically on ADAS calibrations, Battery Registrations vs. Retrofitting and one on using their service information.” The committee also offered an Nissan’s site includes a quick link overview of what it sees as some top for e-learning modules, including scan tool functions as part of collision several about using Consult-III, he repair work, including battery said. registrations. But Augustine was less successful “BMW is one of the vendors finding training at the Toyota website where battery registration is super 16 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

important,” Augustine said. He noted “battery registrations” and “battery retrofitting” are two different functions in the scan tool. “They do different things,” Augustine said. “Battery registration is when you replace the battery and you have to tell the battery management system that the battery has been replaced. I have lots of firsthand

that system essentially the capability of the battery. When you don’t do that, again you will almost always end up with premature battery failure.” Skipping battery registration also will likely result in a charging system message in the instrument panel. “Because most European manufacturers use a strategy called load shedding,” Augustine said. “As they determine that the battery is starting to fail, they will systematically start turning things off in the vehicle that they consider non-essential. So radios will stop working, heated seats will stop working. And if the battery management system determines that there’s still not enough battery life, they’ll continue to shut the vehicle down. And the driver Accessing OEM information and software is putting will be given a message, more IT demands on collision repairers ‘Hey, you need to take this vehicle in for service.’ So you’ll experience to show you when this definitely get some indication on is not done properly, you will almost the instrument panel that there’s a always end up with premature battery charging system problem going on. failure because the system doesn’t You will almost always end up with know state of charge [and] lifecycle premature battery failure that may of the vehicle. not affect you when you’re working “Battery retrofitting is when you on the vehicle, but it’ll definitely affect put a different amp hour battery in the vehicle owner 12 months or 24 the vehicle,” he said. “You have to tell months down the road.”

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California Cracks Down on Auto Insurance Issues

ASE Education Foundation Names Officers, Board

California Insurance Commissioner Ricardo Lara recently initiated a significant move to safeguard Californian drivers’ rights to fair auto insurance coverage, in the wake of numerous complaints from consumers facing hurdles in obtaining proper auto insurance. “These alleged passiveaggressive tactics by insurance companies to slow down drivers’ access to coverage are unacceptable, dangerous and will not be tolerated,” Lara said. Lara aims to ensure insurance companies comply with existing laws and provide coverage at rates for which drivers qualify. The California Department of Insurance has been inundated with consumer grievances about various obstructive practices by auto insurers. These include prolonged waiting periods, intricate questionnaires and other methods that potentially contravene California law, including Proposition 103. Such practices present obstacles for eligible drivers seeking to acquire or maintain auto insurance. Central to the issue is the

The ASE Education Foundation recently announced the officers for its 2024 Board of Directors, as well as new board members. The new chair of the ASE Education Foundation is Joelle Pollak, cofounder of Promotive. Eric Kenar, manager, technician environment and service technical college for GM, will serve as vice chair. Dwayne Myers, president and CEO of Dynamic Automotive, will serve as treasurer, and Brian LaCroix, automotive instructor at Capital Region BOCES Career & Technical Education Center, will hold the role of secretary. Serving as past chair will be Trey Michael, senior director, office of career and technical education at the North Carolina Department of Public Instruction. New board members include Brent Franks, president, North Texas Automobile Dealers; Dennis Harden, chief, career and technical education for the Iowa Department of Education; Joe Oleson, director of fleet maintenance, support & equipment, FedEx Freight; Jason Ross, curriculum designer, Volkswagen Group of America; and Juwan Willis, program instructor, Oakland Schools NE Tech Campus.

requirement for auto insurance companies in California to submit comprehensive rate applications for review and approval by the insurance commissioner before implementing rate changes. The complaints suggest some insurers might be engaging in activities not covered in their previously filed underwriting guidelines. Additionally, insurers must file new practices, like the use of questionnaires, with the department before implementation. Another crucial requirement is for insurers to offer coverage to all individuals who qualify as “good drivers.” This includes those licensed for at least three years, with no more than one point on their driving record, and not at fault in accidents resulting in injury or death. Unfortunately, it appears some insurers may not be providing “good driver” discounts to all eligible individuals and might be imposing unreasonable application requirements unrelated to set eligibility factors. These unnecessary requirements include lengthy

and confusing questionnaires, verification of employment or school information, and demands for extensive personal documentation. Such practices have the potential to discourage and delay eligible drivers from obtaining insurance and the discounts they deserve. Lara’s recent action sets the groundwork for future enforcement if needed. Bulletins issued by the department aim to clarify insurance law and regulations for insurance companies. Following this directive, several insurers have already ceased their obstructive practices, revised their underwriting guidelines and restored coverage to affected policyholders. The department encourages California drivers facing issues with obtaining or renewing auto insurance to contact them at 800-927-4357. They also advise policyholders to comply with their insurer’s requirements and retain documentation for any necessary complaints.

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You Can Teach Old Dogs New Tricks By Toby Chess Autobody News

You have heard you can’t teach old dogs new tricks, but I want to refute that adage—you can. Gen Z—slightly under 30 years old—are constantly on the move and less patient, which leads to a higher degree of anxiety. They are more motivated by money than Millennials, the next generation up. They will not be motivated by the things we Baby Boomers and Gen Xers were. When I was growing up, I was always told by adults I needed to pay my dues before advancing to the next level in the business world. These young men and women were brought up with cell phones and computers and don’t want to wait around in a body shop sweeping the floor or washing cars—they want to make money.

Brandon Candelria uses a light to determine the size of the dent and what tools will be necessary to repair it

I remember when I was in 10th grade and tried out for football. I made the team and I needed a pair of cleats. I got on a bus, went to a store and bought my first pair. I was so excited, that night I slept in my cleats. The experience told me if we want to keep Gen Z employees, we need to think outside the box. I started giving tools to young men and women who want a career in the collision industry, and the shop furnishes a new tool box. The tools and tool box are free, but there is one condition—they need to stay at the shop for one year. To date, I have furnished tools for 32 young men and women. One young man at Scandinavian Coach Craft started to cry when he was told the tools were his and they were free. Last year, Tom Williamson, the owner of Marina Auto Body in Huntington Beach, CA, took his award-winning 1963 Pontiac Grand Prix to a car show in Orange County. Brandon Candelria was positioning the cars that were to be judged and struck up a conversation with Tom. He told Tom he wanted to become

a collision technician. Tom gave Brandon his card and told him to call Cyndi Osthus, manager of his Huntington Beach location, for an interview. He was hired on the spot. He was introduced to Jack Cook, his soon-to-be collision mentor. Tom knew about my program supplying tools for apprentices and wanted to participate. I ordered the tools and made a date to drop them off and train the techs on the KECO Level 2 Glue Pull Repair Collision System kit. I showed up the following week and gave Brandon his tools, and Cyndi gave him a new tool box. Jack and the two other technicians, along with Brandon, spent the next two hours understanding the Glue Pull Repair System. I have known Jack more than 20 years, and he is an excellent tech and mentor. Being in his early 60s, he is very set in his ways and did not think he would use it except on rare occasions, like when doing an aluminum panel repair. I have noticed younger techs will embrace this new technology, whereas older techs want to repair panels as they have done over their entire careers. About a year later, Cyndi called me and said Brandon was really progressing, and she wanted him trained on the KECO system. I set a date and arrived at the shop to train with just Brandon. We started by using the light to determine the size of the dent and what tools would be necessary. This is not an article on the steps for using the KECO system, but I thought it would to nice observe some of the training KECO offers. Last year, about two weeks before Christmas, I received a call from Jack Cook. He called to apologize to me. I didn’t have a clue why.

repairing the small damage using the system on vehicles after Jack finished the major repairs. “I realized from the start that Brandon was going to be a high level technician,” Jack said.

Gary Kasabian, left, and Juan Ruiz, right, with tools and new tool box

He said Brandon was recently able to flag 70 hours in two weeks. “I really was impressed that most of the repairs were metal finished. I finally realized that I was wrong about the glue tab system and that is why I called to apologize,” Jack said. “I asked Brandon to teach me how to use the glue tab system.” I laughed and said the mentee was now the mentor. Jack told me he fixed a quarter panel that had been damaged in the lot at a Toyota dealership. The sliding door would have needed to

be removed and a metal tab would need to be welded on to pull the dog leg out, but Jack, with his newfound knowledge, used the KECO system to pull out the panel, without removing the door and welding. I thanked him for his honesty and said call me any time if he needed any help. I have been teaching a number of these apprentices on how to use the Glue Pull Repair Collision System from KECO. The training the company offers is by far the best in helping these entry level young men and women learn how to repair dents. It keeps them motivated and accelerates their contribution to the repair process. If I can be of any assistance in future, send me an email at tcspeedster@gmail.com. Please type “apprentice” in the subject line.

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He said when I did the KECO training, he really was not interested. He told me Brandon, on his own time, would take damaged hoods and doors and practiced collision damage removal using the glue tab system,

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CCC Brings in 2024 With New AI Solutions, Google Collaboration By Stacey Phillips Ronak Autobody News

CCC Intelligent Solutions recently announced various developments for the collision repair industry, including new artificial intelligence (AI) solutions, a collaboration with Google and the expansion of its integration partners. Mark Fincher, vice president of product management, automotive services, and Dan Risley, vice president of quality repair and market development, shared details with Autobody News.

the industry, all while delivering exceptional service to consumers.” Repair Cost Predictor, a feature of CCC® Engage, applies AI to the digital photos of vehicle damage submitted by consumers and generates a predicted range of the repair cost. Fincher said this helps consumers determine if they want to file a claim,

New AI Solutions CCC launched two AI solutions, Repair Cost Predictor and Mobile Jumpstart. Both integrate into CCC ONE®, the company’s cloud-based platform. Fincher said the products were created in response to shop labor shortages and were designed to save estimators time by streamlining labor-intensive tasks. “We’re bringing Repair Cost Predictor and Mobile Jumpstart forward at a time when repairers are being challenged by labor shortages, supply chain disruptions and growing vehicle complexity,” said Fincher. “These tools will help repairers to meet the evolving demands of

Mark Fincher, left, and Dan Risley, right, during the 2023 SEMA Show

request a detailed estimate and/or schedule an appointment for repair. “Repair Cost Predictor streamlines the consumer experience, creates opportunities for new business and allows shops to differentiate themselves, all while allowing repair shop staff to focus on core tasks,” he said. With Mobile Jumpstart, a feature of CCC ONE® Estimating IQ, estimators can take photos of the vehicle onsite and use AI to pre-populate an initial estimate from a user’s mobile phone. It also

difficult to manage which vehicles have been completed,” said Risley. “CCC Diagnostics Workflow helps shops identify and be proactive about managing pre- and post-repair scans as well as calibrations.” Risley shared information about CCC’s expansion integration partners, including AirPro Diagnostics, asTech and Opus IVS. In October 2023, the company announced Elitek Vehicle Services, an LKQ company, joined the CCC Diagnostics Network to include the reporting automation of remote diagnostic services. As a result, shops will be able to view scan reports and invoices in CCC ONE, saving time and effort while standardizing the documentation of work being performed. “If you’re working with one of our integration partners, they’re going to be able to pass along scan reports as well as invoices into CCC repair workflow management system,” explained Risley. “This simplifies the process to make sure that the information is being communicated back into CCC ONE and is all in one place. Having documentation that the work was done correctly is so important to demonstrate the proper procedures were followed.”

provides recommendations to repair, replace or remove and install parts.

Google Collaboration CCC teamed up with Google to streamline the online appointment booking process for repair shops that use CCC® Engage. The collaboration includes a “Book Online” button on a repair shop’s Google Business Profile, helping to drive digital traffic. Customers can schedule appointments through CCC’s online platform, Carwise. “Through our collaboration, we’re helping to raise the profile of our CCC Engage shops among consumers searching for collision repair services,” said Fincher. “Our focus is on providing a practical solution that allows repair facilities to enhance their consumer experience, making appointment scheduling easier for both the consumer and the repair facility.”

CCC® Diagnostics Workflow CCC also released CCC Diagnostics Workflow, which provides shops the ability to manage the scanning and calibrations during the repair process. This additional product is available to all CCC ONE Customers. “With shops scanning more vehicles than ever before, it can be

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Hunter Showcases Award-Winning Ultimate ADAS™ At 2023 SEMA Show By Stacey Phillips Ronak Autobody News

From tire changers and balancers to alignment and Advanced Driver Assistance Systems (ADAS) equipment, Hunter Engineering Company is taking steps to ensure its products meet the needs of the collision repair industry. At the 2023 SEMA Show in Las Vegas, NV, the company displayed a variety of new equipment for technicians. This included Hunter’s Ultimate ADAS™, designed to eliminate errors common to static ADAS calibrations with manual layouts. During the show, Ultimate ADAS™ was named Best New ADAS Product 2024 as part of the New Product Showcase competition. The company also showcased the HawkEye® XL alignment system, scissor lifts and the 51M tire changer for mobile use. Tom Settle, Hunter’s director of field development and training, said this year’s 8,000-square-foot SEMA booth focused on showcasing equipment created to help with the recruitment and retention of technicians. “Technicians today must have a range of skills,” said Settle. “If you have someone who is very energetic and willing to utilize state-of-the-art technology, you’ll get a larger diversity of candidates.” He said Hunter has created a range of equipment that is easy to use and provides accurate results. “Not only will this help with technician recruitment, but it will also assist with retention and, ultimately, allow shops to be more efficient and profitable,” he added. Ultimate ADAS™ Ultimate ADAS™ combines Hunter’s standard-setting alignment technology with a guided target placement system for around-the-vehicle coverage. Pete Liebetreu, vice president of product management and marketing, said Hunter was proud to win the SEMA award. “Bringing this innovative product to market took a huge team of engineers, developers, U.S.-based manufacturing and of course, the interest of our customers and partners. It was a huge effort and the team at Hunter is very proud of this prestigious recognition.” Ryan Gerber, Hunter product specialist, ADAS, said the key component is the equipment’s use of gimbal-mounted lasers, which replace the guesswork of strings, plumb bobs and tape measures and can decrease setup time by 70% for some procedures.

Gerber explained the gimbals and onscreen guidance provided by Hunter’s award-winning WinAlign® software assist with target placement by compensating for non-level floors, monitoring for placement errors, and confirming accuracy with laser measurements.

Hunter Engineering Company team members at the 2023 SEMA Show included, left to right, Jon Giles, Jesse Mincer, Nick Montemayor, Jess Parrish, Noel Acevedo, Joe Donato and Tom Settle.

Many common and timeconsuming manual adjustments have been automated with the equipment, such as height, roll, pitch and yaw. Users can also do a full vehicle alignment. provides Ultimate ADAS™ documentation of the procedures performed and exact target placement, which can be accessed or printed via HunterNet® 2, Hunter’s customer portal. Designed with compact packaging, the equipment can be moved around the shop as needed. Honda and Acura dealers are currently using Ultimate ADAS™; Hunter plans to work with additional OEMs in 2024. HawkEye® XL Alignment System Hunter product manager Alan Hagerty said the new HawkEye® XL was designed for speed, durability and ease of use for commercial vehicles; it provides measurements in four minutes or less. “It’s perfect for heavy-duty shops looking to speed up and supersize their alignment capabilities,” he said. “With our old system, I was doing 15 trucks in one 10-hour day,” said Vernon Embree, a technician at Prime Inc., who tested the HawkEye® XL with their large fleet of newer trucks. “Now I’ve hit 26 trucks in one day. I would definitely recommend the XL to anybody.” The camera technology has extralong range and extra-large targets, expanded from the HawkEye® Elite alignment system. Hagerty said the lightweight, threedimensional XL targets are durable, low-maintenance and non-electronic. The high-definition cameras can

22 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

capture measurements in a single rolling compensation and display live alignment readings for up to three axles. Technicians can perform alignments on the floor or a lift. HawkEye® XL connects to the HunterNet® 2 customer portal, which allows shop owners to monitor alignment performance remotely in real time. Scissor Lifts To help repair large and small wheelbases, Hunter introduced two new, longer variations of its RX14 and RX16 scissor alignment racks that can accommodate up to 195-inch twowheel wheelbases. “We know that space is a premium, especially when we talk about ADAS calibrations,” said Settle. The RX14KL lift gains an additional 13 inches and the RX16KL has an additional 17 inches. Liebetreu said the longer wheelbase adds more medium-duty vehicle capability and more runway to perform rolling compensation on crew cab pickups and larger vans. The adjustable turnplate pockets provide 88- to 168-inch four-wheel alignment service range.

51M Tire Changer Hunter introduced the TCX51M to provide additional tire support for technicians. Designed specifically for mobile use and other tight spaces, Settle said the tire changer features a swing arm design with dual bead loosening rollers that can be demounted quickly without a lever. The adjustable center clamp was designed to protect wheels and never slip. The TCX51M’s twospeed inverter motor operates at 110V, allowing technicians to service modern complex assemblies. Training To meet the educational needs of the industry, Settle said Hunter is updating its training approach. The goal is to roll out a gamified style of its learning management system (LMS) in 2024 aimed at the next generation of technicians. This includes designing shorter modules that last between three and five minutes. “All of the courses will be more tailored to the current state of automotive,” explained Settle. For more information about Hunter Engineering Company’s products, visit www.hunter.com.

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Investment Banker More Bullish Than Ever About Collision Repair Industry By John Yoswick Autobody News

Back in 2013, investment banker Rex Green raised eyebrows at one of the first MSO Symposiums when he predicted that within a decade, the largest collision repair consolidators would have combined market share in the 30% to 40% range. At the time they had only about 5%.

Investment banker Rex Green projects the top MSOs will will have 50% market share within seven years, up from 30% currently

But the Top 5 consolidators— Caliber Collision, Boyd Group/Gerber Collision, Crash Champions, Classic Collision and Joe Hudson’s Collision Centers—today have about 3,500 locations and estimated revenues of $13.2 billion, or just over 30% market

share. Green’s prescience a decade ago had attendees at the most recent MSO Symposium this past fall anxious to hear his presentation at the event, his first since he made his accurate prediction in 2013. Green, now the managing director of automotive aftermarket investment banking at Jefferies LLC, said he believes the large MSOs will attain 50% market share within seven years—and more than double their combined current market share not long after that. “I don’t know, 10 years from now, what the list of names [of] the top players are going to be,” he said. “But I do know that in 10 or 15 years, there’s going to be 20 or 15—or pick a number—players that if you want to service 70% of the collision industry, you’ll have just 15 or 20 phone calls to make. That’s a very different world than it is today.” One thing that will impact smaller operators’ ability to compete, he said, is a change he’s seeing in a growing focus on scale. “Over the last few months, I’ve seemed to have had more and more conversations with vendors [selling] into this industry who have been talking about remaking their product

offering to just fit the large MSOs that are doing business differently than the smaller independents,” he said. Looking further out, 20 to 30 years from now, Green foresees those influencing, if not dictating, vehicle service and repair—insurers, fleet operators, OEMs—to want even more consolidated “curated networks” of service providers.

“I can’t think of any other class of service provider that has all of these things except collision.” — REX GREEN JEFFERIES LLC

“As you think about it, almost all automotive repair today is done in specialty locations: tires, general repair, collision, glass,” Green said. “What would be best would be if there was someone who could provide multiple of these services. What would a provider of comprehensive service in the future look like? National—and eventual international— scale and reach. Location density. Large locations not in high rent areas because you don’t need to be seen. A business-to-business service focus.

Well-invested in service technology. And with a range of technicians, including the very highly-skilled. Now, who can think of a class of service provider that has all of these things? I can’t think of any other class of service provider that has all of these things except collision.” Green said he’s among those who see this as among the best times ever to be in this industry, with nearly every shop filled to capacity. “I don’t see that stopping,” he said. “Every time I ask somebody [when it will], they always say two years. That means they don’t know either.” He recalled seeing a “preposterous” slide presented at an event in 2015 predicting an imminent and massive drop-off in claims because of autonomous vehicles. The decline could never happen as quickly as the chart indicated, Green said, if only because of how slowly the make-up of the vehicle population changes. “What’s clear and what’s important is that ‘existential threat’ was an empty threat, but it did leave us this wonderful gift of ADAS, which is probably the best thing, in the last 10 years, that we’ve had,” he said. “And it’s going to carry this industry greatly both in profit and sales going forward.”

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GM Sues San Francisco For $121 Million Over Incorrect Tax Bill By Chris Chilton CarScoops

General Motors is suing San Francisco, and though its Cruise division is central to the suit, the case has nothing to do with the red and white self-driving robotaxis being banished from Bay Area streets by regulators over safety concerns. Rather, the reason GM has gone to battle with San Francisco is all to do with taxes. The General thinks it’s paid too much over a seven-year period and wants a $108 million refund plus $13 million in interests and penalties to cover the period between 2016 and 2022, Bloomberg reported. Here’s where Cruise fits into the legal squabble: GM said tax officials used Cruise’s payroll data to calculate the tax liability, when in fact Cruise is a separate business entity from GM and generates few sales in the area. The suit argues GM’s “core automotive business does not

employ anyone in the city, has no plants or other physical locations in the city, has no dealerships in the city,” and only sells only a small amount of goods in the area, amounting to around $677,000 in 2022. The suit won’t do much to smooth over cracks in the fractured relationship between GM and San Francisco. GM was forced to pull its Cruise robotaxis from U.S. roads in the wake of a fatal accident in San Francisco in September, when a woman was dragged under one of Cruise’s autonomous Chevy Bolts. California’s Department of Motor Vehicles suspended Cruise’s autonomous permits following the incident and GM subsequently announced it was laying off 24% of the Cruise workforce, putting 900 people out of work.

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Auto Chip Supply Shortages Now a Thing of the Past Mobileye Global, a self-driving technology company, announced a forecasted downturn in its 2024 revenue, attributing it to a reduction in orders as customers manage excess microchip inventory, according to Reuters. The Israelbased company, whose clientele includes automotive giants like Volkswagen and Porsche, saw its shares plummet by 28.2%, reaching a more than one-year low at $28.52. Mobileye had previously navigated the challenges of the chip supply crisis of 2021 and 2022 successfully. Mobileye’s difficulties stem from a change in the buying patterns of its Tier 1 customers, who had aggressively stockpiled chip inventories to circumvent the shortages experienced in the past two years. However, with supply chain concerns easing, these customers are now using their accumulated excess inventory, leading to a reduced demand for new chip orders. The company’s internal estimates indicate an excess supply of 6 to 7 million units of its highest revenue-generating

product, the EyeQ advanced driverassistance chip. Consequently, Mobileye expects its Q1 revenue to be approximately 50% lower than the previous year. This decline in demand has not only affected Mobileye, but also caused a ripple effect across the sector. Shares of other auto chipmakers, including NXP Semiconductors, Onsemi, Texas Instruments and Wolfspeed, have dropped between 2% and 5.1%. Additionally, Intel, Mobileye’s parent company, experienced a share price decline of about 2.2%, falling to $46.02. Looking ahead, Mobileye anticipates a 2024 operating loss between $468 million and $378 million, a substantial increase from its preliminary 2023 operating loss of $39 million to $33 million. The company’s adjusted operating income forecast for 2024 is also projected to be lower, with expected revenues ranging from $1.83 billion to $1.96 billion. This projection falls significantly short of the previously estimated $2.58 billion, according to LSEG data.

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SATA Showcases SATAjet® X 5500 Universe, SATA® QMR At 2023 SEMA Show By Autobody News Staff Company representatives at SATA and Dan Am Company, the exclusive independent importer of SATA in the U.S. and Puerto Rico, strive to offer products that represent commitment, precision, appreciation and fun at work. Known by many collision repair professionals worldwide for their German-made spray guns, SATA showcased its products at the 2023 SEMA Show in Las Vegas, NV. These included the SATAjet® X 5500 universe and the SATA® Quick Material Regulator (QMR). The company also provides cup systems, breathing protection systems and compressed air technology. “We take pride in offering customers durable, reliable and efficient spray guns, as well as other products that meet their needs,” said Tony Larimer, Dan Am Company’s director of sales and marketing. Every year, the family-owned company designs a special edition spray gun. In 2023, SATA introduced the SATAjet X 5500 universe, a version of SATA’s premium spray gun. It includes a QR code that

grants owners access to SATA’s online universe portal. After entering the product’s SATA Authentication Label (SAL) number, they can receive access to promotions, competitions and content, such as early product information and technical tips. Larimer said the economical spray gun was designed to be used by a wide range of skill levels and is noticeably quieter than others on the market due to its whispering nozzle and optimized flow geometry. Using the X nozzle system, the spray gun is compatible with all paint systems. The SATAjet X 5500 was built to optimize material distribution for enhanced spraying uniformity. “The maintenance-free and easy-to-operate gun is suitable for application processes that require specific, reduced material flow rates on a regular basis,” explained Larimer. The spray gun has a constant fan size across the nozzle spectrum with linear increases in the material flow rate and no air distribution insert is required. Larimer said the spray gun also offers a wide range of nozzle sets. “It’s a very versatile spray gun,” he added.

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which can then be activated quickly, precisely and in reproducible fashion at the push of a button.” The SATA QMR offers the retrofit option for the SATAjet X 5500/ SATAjet 5000 B. It is available in one pack (1186213) or a two-pack (1162817). The company held a lottery Nov. 15 to give back to the painting specialists and fans of SATA’s products. Prizes included two 2024 SEMA Show Las Vegas trips (megaprize), one of three CDG guns (first prize), one of 10 SATAjet X 5500 (second prize), one of three 4400 B Lady Edition II (third prize), several SATA hoodies and more. “Right now, every job that you do in a shop needs to be more efficient,” said Larimer. “For us at Dan-Am Company, we are proud that SATA works hard to design products to help shops be more efficient with the repair and stop errors and redos.” SATA & Dan Am Company both offer a wide range of training on their YouTube channel. For more information about SATA products, call 800-533-8016, visit www.satausa.com or call your local distributor.

Company team members at the 2023 SEMA Show included, left to right, Chris Springer, Tony Larimer, Patrick Creaney, Joern Stoever, Brigitte Jorgensen and Knud Jorgensen..

“When application processes require frequently recurring adjustments between reduced and fully open material flow rates, the SATA QMR was designed to save time and money,” explained Larimer. “The material flow regulation device allows painters to preset the required reduced material flow rate,

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West Coast Collision Centers Earn Toyota Certification

‘Who Pays’ Survey Finds More Shops Researching Battery Reconnect Procedures

Capitol Auto Group Collision Center in Salem, OR, and Kniesel’s Collision in Rocklin, CA, recently achieved Toyota Certified Collision Center (TCCC) status, Toyota Motor North America, Inc. (TMNA) announced, exemplifying exceptional standards in vehicle safety and customer satisfaction. The certification is awarded to collision centers that meet Toyota’s stringent criteria, encompassing advanced training, facility evaluation, business practices, employee certifications, and equipment benchmarks. Scott Henderson, senior manager of collision operations at TMNA, called it a privilege to have both Capitol Auto Group Collision Center and Kniesel’s Collision “earn the prestigious Toyota Collision Certification for their professionalism and ultimate dedication to the safety of our customers. This designation represents their ongoing commitment to customer satisfaction, vehicle safety and quality, and factory

When collision repairers were asked recently how often they are researching the OEM procedures required after reconnecting a battery, 34% said they do it “all the time”—up from just 20% a year earlier—and another 22% said they do it “most of the time.” That was among the findings of a quarterly “Who Pays for What?” survey, conducted by Collision Advice and CRASH Network. Battery reconnect procedures vary by automaker, Mike Anderson of Collision Advice said, but sometimes include initializing sensors or clearing diagnostic trouble codes (DTCs). “I was analyzing the procedures called for by one Asian automaker recently, and found 11 procedures required after reconnecting the battery,” Anderson said. “Researching procedures needs to happen every single time on every single vehicle. Disconnecting the battery often will set DTCs that you can’t check for without doing a postrepair scan in conjunction with reconnecting the battery.”

recommended repairs to surpass customers’ expectations.” Modern vehicles, increasingly sophisticated in design, feature a growing array of components, parts, and advanced materials. These advancements necessitate rapidly evolving collision repair techniques and processes. Extensive training is required for collision technicians to ensure complete repairs for maximum vehicle safety. TCCC dealers are committed to enhancing collision repairs by adhering to Toyota’s specific repair procedures, benefiting customers. Achieving the TCCC status is no small feat, as only a select percentage of collision centers nationwide can fulfill Toyota’s rigorous training requirements for collision center managers, estimators, and repair and refinish technicians.

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In terms of reimbursement for the labor involved in battery reconnect procedures, the survey found more than half of shops (57%) that bill for it say they are regularly paid by the top eight largest national insurers---even while about 1 in 4 shops have never sought payment for these OEMspecified procedures. The latest quarterly “Who Pays for What?” survey is now open through the month of January. It focuses on not-included refinish labor operations. Shops can take the survey at www.surveymonkey. com/r/36MGRML Survey participants receive a free report with complete surveyfindings along with analysis and resources to help shops better understand and use the information presented. The survey can be completed in about 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.

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California Bills Aim To Regulate Autonomous Vehicles California lawmakers have introduced two bills as part of the California Automotive Regulatory Standards (CARS) Package, aiming to establish regulations on autonomous vehicles (AVs) and bolster road safety and job security, a legislative move applauded by the Teamsters union, which has growing concerns over AV operations and their impact on the state’s workforce. The first assembly bill, mirroring the previously introduced AB 316 by Assemblymember Cecilia AguiarCurry (D-Winters), mandates a trained human operator behind the wheel of any AV weighing over 10,000 lbs. The second, Senate Bill 915 (SB 915), introduced by Sen. Dave Cortese (D-San Jose), requires AV companies to obtain approval through a local ordinance before commencing operations in a municipality. Both bills have substantial support; AB 316 secured more than 90% affirmative votes in the last legislative session, and SB 915 is co-sponsored by the League of California Cities. Historically, California’s regulation

of AVs has been the responsibility of regulatory agencies like the Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC). However, municipalities have lacked control over AV operations, leading to increased road incidents and a lack of enforcement in AV safety measures. Peter Finn, Teamsters western region international vice president, emphasized the need for California to establish real AV safety standards and ensure local municipal input in AV deployment. He criticized the DMV and CPUC for their inadequate regulatory oversight, stressing that California cannot afford to leave AV regulation to Big Tech alone. Jason Rabinowitz, president of Teamsters Joint Council 7, highlighted the flawed AV deployment in 2023, marked by Gov. Gavin Newsom’s veto of AB 316 and poor decisions by the CPUC and DMV, which compromised public safety. Rabinowitz applauded the reintroduction of these bills as an opportunity for California to rectify past mistakes with common-sense safety measures.

A press release from the Teamsters also pointed out the DMV’s failure to track at-fault data for AV-related collisions and the immunity of driverless vehicles from traffic tickets. It cited several incidents involving AVs, including accidents with fire trucks, blocking emergency vehicles, causing traffic disruptions, and even a fatal accident involving a dog. These incidents have raised significant concerns about the safety and accountability of AV operations. “Gov. Newsom can continue to cower to Big Tech and put millions of good jobs in jeopardy, or he can grow a backbone and stand up for working people. Either way, the Teamsters are not backing down from this fight,” said Lindsay Dougherty, Teamsters western region international vice president and secretary-treasurer of Teamsters Local 399. “The Teamsters encourage all state lawmakers to join Cortese and Aguiar-Curry in prioritizing the well-being of Californians and the preservation of good-paying union jobs.”

The press release also highlighted the threat posed by AV technology to the livelihoods of professional drivers in California, estimating AVs could eliminate more than 15 million jobs nationwide, many in rural communities. Chris Griswold, president of Teamsters Joint Council 42, criticized corporate interests in AV technology, advocating for legislation that safeguards workers and communities.

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First Real-World Tesla Cybertruck Crash Raises Safety Questions A Dec. 28 collision involving a Tesla Cybertruck and a Toyota Corolla on California’s Skyline Boulevard sparked interest and concern regarding the safety and construction of Tesla’s innovative Cybertruck. The crash occurred in wet and cloudy conditions. According to the California Highway Patrol’s report, the Corolla, traveling south on SR-35, turned right off the road for an unknown reason, hit an embankment, veered back onto the road and collided with the northbound Cybertruck. The collision resulted in minor injuries to the Cybertruck’s driver, who shares a name with a Tesla engineer, and declined medical transport. The Cybertruck was registered with Texas plates to a Palo Alto, CA, address, hinting but not confirming it might be a company vehicle. The crash did not appear to involve autonomous driving mode, and the investigation is ongoing. Photos of the incident,

shared on Reddit, showed the Cybertruck with deployed airbags. The Toyota sustained significant front-end damage, particularly on the driver’s side. The damage to the Cybertruck is not entirely visible in the photographs, leaving some questions about the extent and the effectiveness of the truck’s unique construction in such collisions. Tesla’s Cybertruck, known for its large cast sections and stainless steel body panels, has been a subject of speculation regarding its crash safety. While designed to meet safety regulations, the real-world crash brings up new questions about how its hard stainless steel panels and chassis castings behave in collisions. The latest Tesla over-theair update, which includes an automatic 911 notification feature in the event of airbag deployment, might have played a role in the swift response to the accident.

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Law Firm Preparing Class Action Lawsuit Against Driven Brands Robbins LLP, a shareholder rights law firm, will soon be representing a shareholder who filed a class action lawsuit against Driven Brands Holdings Inc., accusing the largest automotive services company in North America of misling investors regarding its ability to integrate its auto glass business and the performance of its car wash segment. The firm said any other shareholder who may be interested in acting as lead plaintiff should contact the firm and submit paperwork by Feb. 20. For more information, call 800350-6003. Shareholders do not have to participate in the case to be eligible for a recovery. If they choose to take no action, they can remain an absent class member. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. A second securities lawfirm, Faruqi & Faruqi, LLP, is also investigating the claims against Driven Brands, and encourages any investor who suffered losses of more than $100,000 between

Oct. 27, 2021, and Aug. 1, 2023, to contact partner Josh Wilson at 877-247-4292 or 212-983-9330 (ext. 1310), or visit www.faruqilaw. com/DRVN for more information. Faruqi & Faruqi also encourages anyone with information regarding Driven Brands’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

The lawsuit was filed on behalf of all purchasers of Driven Brands common stock between Oct. 27, 2021, and August 1, 2023. According to the complaint, during that period, Driven

repeatedly touted its ability to execute and integrate acquisitions as a “core strength,” and assured investors it had made “significant progress” integrating the auto glass businesses it had acquired. The company also said the large scale of its car wash business served as a “competitive moat” that would preserve Driven’s competitive position. In truth, the complaint said, Driven was “several quarters” behind on integrating its auto glass businesses, and its car wash business was faltering and more exposed to a decline in demand from retail customers than it represented to investors. As a result, the company’s statements concerning its business and prospects, including its fiscal year 2023 financial guidance, lacked a reasonable basis. The shareholder who filed the suit alleges the truth began to emerge May 8, 2023, when Driven

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announced that four days earlier, its former CFO Tiffany Mason abruptly and inexplicably left the company, just one day after Driven reported its financial results for the first quarter of 2023 and Mason participated in the company’s corresponding earnings call. In the wake of Mason’s abrupt departure, Driven reaffirmed its financial guidance for fiscal 2023. Then, on Aug. 2, 2023, Driven reported earnings for the second quarter of 2023 that missed expectations, the complaint said, including disappointing results for both its paint, collision and glass and car wash business segments. The company also slashed its earnings guidance for fiscal 2023. Driven attributed its earnings miss and guidance cut to delays in the integration of its acquired auto glass businesses and increased exposure to “intensified competitive intrusion” in its car wash segment, which negatively impacted consumer demand and the company’s margins. These disclosures caused the price of Driven common stock to decline by $10.63 per share, or 41%.

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CAPA Announces Executive Director

Record-Breaking Auto Insurance Hikes Expected in 2024 Auto insurance rates in the U.S. are set to surge by an average of 12.6%, the steepest increase since 2018, according to the comprehensive “State of Auto Insurance in 2024” report by ValuePenguin.com, a LendingTree subsidiary. ValuePenguin’s report details a concerning trend for motorists, with auto insurance premiums consistently climbing. The average annual cost of auto insurance is projected to hit $1,984 in 2024, a 29% increase since 2018. This trend is nationwide, affecting drivers in all 50 states. Nevada leads the pack with a 28% rate increase, the highest in the country. Significant hikes are also anticipated in Washington state (18%), Arizona (17%), Connecticut (17%), Louisiana (16%) and Georgia (16%). On the flip side, states like Maine, New Hampshire and Idaho will enjoy relatively lower average premiums. The report further highlights the financial impact on drivers with traffic violations. These

motorists are facing an average premium jump of 52%, with those in North Carolina, California and Hawaii experiencing the most severe increases of over 90%. In a positive note, insuring electric vehicles is becoming more affordable, though premiums for new EVs are still 23% higher than those for new gasoline-powered cars. Tesla’s Model X, Model 3 and Model Y top the list of the highest insurance premiums in 2024, while the Honda CR-V and Ford F-150 emerge as the most economical options. Divya Sangameshwar, an insurance expert at ValuePenguin. com, emphasized the growing financial strain, particularly on Gen Z drivers who will face a 188% higher insurance rate than older drivers in 2024.

Sangameshwar pointed out that while inflation shows signs of slowing, the rising costs of car repairs or replacements, coupled with an increase in severe weather incidents and car thefts, including a 700% spike in catalytic converter thefts since 2019, are key factors driving these rate hikes. In response to these challenges, ValuePenguin. com offers practical tips for drivers looking to mitigate the impact of these increases. Recommendations include comparing insurance quotes, exploring various discounts, adjusting coverage levels, and improving credit scores. These strategies have proven effective, with policyholders who shopped around in 2023 saving an average of $398 annually.

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The Certified Automotive Parts Association (CAPA), an independent nonprofit standard-setting and certification organization for automotive crash parts, announced Terry Fortner has succeeded as CAPA executive director, as of Jan. 1. Fortner brings with him more than four decades of leadership experience and an intimate knowledge of the automotive aftermarket. After 32 years in leadership at Nationwide Insurance, Fortner joined LKQ Corporation in 2009. Over a 13-year tenure, he led industry relations and corporate accounts before serving as vice president of sales and marketing for the entirety of North America. Alongside his position as CAPA executive director, Fortner is chief advisor for Fortner Advisory and Development, LLC, where he acts as a consultant and advisor, specializing in the automotive industry, auto physical damage claims processes, leadership and executive coaching. Fortner has also served as chair and chairman emeritus for the Collision Repair Education Foundation as well as other collision industry organizations.

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Automakers Fulfill Autobrake Pledge For Light-Duty Vehicles All 20 participating automakers have fulfilled a voluntary pledge to equip nearly all the light vehicles they produce for the U.S. market with automatic emergency braking (AEB). Five new manufacturers installed AEB on more than 95% of the light vehicles they produced between Sept. 1, 2022, and Aug. 31, 2023, to meet the deadline set in the agreement. General Motors, Jaguar Land Rover, Maserati and Porsche all dramatically increased the proportion of their vehicles equipped with the technology to meet the target. Kia, which was already close last year, also crossed the finish line. “The successful completion of this milestone shows what can be achieved when automakers and safety advocates work together toward our common goal of eliminating as many crashes as possible,” said IIHS President David Harkey. Audi, BMW, Ford/Lincoln, Honda/Acura, Hyundai/Genesis, Mazda, Mercedes-Benz, Mitsubishi, Nissan/Infiniti, Stellantis, Subaru, Tesla, Toyota/Lexus, Volkswagen and Volvo fulfilled the voluntary commitment in previous years. The 2016 commitment was brokered by the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA). In it, the automakers pledged to equip at least 95% of their cars and trucks up to 8,500 pounds with the technology by the production year that ended Aug. 31. Consumer Reports agreed to assist in monitoring the pledges. “Car buyers today will find that almost any new vehicle they buy comes standard with a cityspeed AEB system, typically with pedestrian detection. This is significant progress, and it sets the stage for the strong federal safety standards that have been proposed,” said William Wallace, associate director of safety policy for Consumer Reports. To fulfill their commitment, manufacturers must attest the AEB system on their vehicles meets certain performance standards. The forward collision warning feature must meet a subset of NHTSA’s current requirements on the timing of driver alerts. The AEB must either be able to slow the vehicle by at least 10 mph in one of two tests conducted at 12 and 25 mph or by 5 mph at both speeds—the level of performance needed for an advanced rating in the IIHS’s original vehicle-to-vehicle front crash prevention evaluation. “Thanks to this cooperation,

automakers made this safety feature standard equipment years before there was a legal mandate requiring them to do so,” Harkey said. “Now that a regulation is on the horizon, the progress that we’ve made will be set in stone and expanded on to generate even bigger benefits.”

and heavier vehicles are included in the calculation. By the production year that begins Sept. 1, 2024, automakers will need to equip 95% of all their light vehicles, whether automatic or manual, with AEB. By the production year beginning Sept. 1, 2025, they will need to meet the

The 2016 commitment was brokered by the IIHS and NHTSA.

NHTSA unveiled a proposal May 31 to require all new passenger vehicles, trucks and buses with a gross vehicle weight rating of 10,000 pounds or less to have AEB capable of braking to fully avoid a crash with another vehicle at up to 50 mph, with a four-year grace period from the date the eventual rule is adopted. If the regulation is adopted in its present form, vehicles will also have to be able to stop for pedestrians from speeds up to 40 mph, and the pedestrian detection will have to work in dark conditions—a requirement for which IIHS had petitioned. In June, the agency proposed a regulation that would mandate AEB capable of preventing crashes with other vehicles for trucks and buses with a gross vehicle weight rating of more than 10,000 pounds. Pedestrian detection has been part of IIHS award criteria for several years running, and, as of 2023, a nighttime test was added to the battery of evaluations needed for TOP SAFETY PICK+. Next year, the IIHS plans to introduce a higherspeed vehicle-to-vehicle AEB test that involves motorcycle and large truck targets as well as passenger cars. Consumer Reports currently awards additional points to a vehicle’s Overall Score for models that have AEB with pedestrian detection as standard equipment and for AEB that operates at highway speeds. In order to be named a CR Top Pick, a vehicle must have both. Under the commitment, automakers have slightly longer to meet the 95% threshold when vehicles with manual transmissions

34 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

threshold for their entire production volume, including those vehicles in the 8,500-10,000 pound category. They are well on the way. More than three-quarters of the automakers already meet the 95% threshold with manual-transmission vehicles included in their production totals.

Four of the five automakers that produce 8,500-10,000 pound vehicles for the U.S. market—Ford, General Motors, Mercedes-Benz and Nissan—already meet the threshold with those heavier vehicles included. Stellantis is closing in on the target. Some manufacturers are reaching the overall benchmark while still leaving many of their 8,500-10,000 pound vehicles unequipped, however. So far, only Mercedes-Benz and Nissan have equipped all of their 8,500-10,000 pound vehicles with AEB, while Ford has equipped 78% and General Motors just 6%. Stellantis, which has yet to reach the 2025 goal, has equipped 47%. “We urge the automakers with heavier vehicles to make AEB standard right away,” said Wallace. “Whether you buy a small sedan or a large pickup, everyone should have the protection that AEB provides on the road.” IIHS expects the voluntary commitment to prevent 42,000 crashes and 20,000 injuries by 2025. The estimate is based on IIHS research that found front crash prevention systems with both forward collision warning and automatic emergency braking cut rear-end crashes by half.

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CIECA Announces New Member ShopLoaner CIECA welcomes ShopLoaner as a new corporate member. The Cincinnati, OH-based company traces its roots back to the 1990s, when one of the company’s founders wrote a disk operating system (DOS) software program to help car dealerships fill out rental agreements for their loaner vehicles. Over time, the software evolved into a modern, cloud-based solution to assist car dealerships and independent repair shops in managing all aspects of their rental or loaner vehicles. During the pandemic, the ShopLoaner brand was developed to meet the needs of repair shops. Today, ShopLoaner manages more than 1,000 loaner fleets across the U.S. and Canada. Laura Tierney, sales manager for ShopLoaner, said the company recently joined CIECA to offer collision repair shops an integrated solution to manage their in-house rental or loaner vehicles.

GasBuddy Predicts Lower Gas Prices in 2024 GasBuddy on Dec. 28 released its annual Fuel Price Outlook with some good news for drivers: expect lower gasoline and diesel prices in 2024. The outlook highlights key trends in gasoline and diesel prices, forecasting that, after two years of above average gas prices, 2024 will bring relief at the pump for consumers as several factors contribute to less of a pinch at the pump. GasBuddy expects the yearly national average will drop from $3.51 per gallon this year to $3.38 in 2024. Highlights from GasBuddy’s 2024 Fuel Outlook Gas prices still could fall below a national average of $3 per gallon this winter before potentially rising, getting close to $4 per gallon as summer approaches. Drivers in some West Coast cities could again briefly see prices above $6 per gallon, although most major U.S. cities will see prices peak near $4 per gallon in 2024. Americans are expected to spend a combined $446.9 billion on gasoline in 2024. Average

yearly spending per household will fall to an estimated $2,407, down 2% from 2023, and over 12% from 2022. Electric vehicles (EVs) and the 2024 presidential election have the potential to impact fuel prices in the year ahead, with a potential slowdown in the EV transition at stake.

for GasBuddy. “The global refining picture continues to improve, providing more capacity and peace of mind that record-setting prices will stay away from the pump in 2024. “I anticipate that we’ll still have some volatility, unexpected outages and disruptions, and potentially weather-related issues, but I do not expect it to lead to record prices,” De Haan continued. “Offsetting OPEC+’s production cuts is contributing to the rise of U.S. oil production, which now stands at record levels. Combined with Canada, North American oil production could further stabilize countries that have decided to curb oil production.” The outlook forecasts the highest prices will be seen at the peak of the summer driving season in May, with the national average potentially rising as high as $3.89 per gallon. More uncertainty is expected with hurricane season in late summer. Diesel prices are also predicted to fall incrementally from 2023, peaking at $4.13 per gallon in March 2024.

Memorial Day will be the priciest 2024 holiday at the pump, with the national average price of gasoline expected to be $3.56-$4.04 per gallon on the holiday. “As 2023 fades away, I’m hopeful those $5 and $6 prices for gasoline and diesel will also fade into memory,” said Patrick De Haan, head of petroleum analysis

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DataTouch Launches VINAnonymize To Prevent Reporting Services from Using Estimate Info DataTouch LLC announced the launch of VINAnonymize, a new technology that prevents collision repair estimate information from being used by vehicle identification number (VIN) reporting services such as CARFAX and AutoCheck. DataTouch provides intelligent data management services to collision repairers. The company designed the technology to allow a shop user to anonymize a VIN and help protect customers’ personally identifiable information (PII). “Many times, after creating an estimate, a customer’s vehicle repair information shows up on a vehicle history reporting site, like CARFAX, and the customer blames the body shop or dealer,” said Pete Tagliapietra, managing director of DataTouch. “The owner of the data should have the choice whether or not to opt out just like we have the choice to opt out when we buy a car.” Using VINAnonymize, Tagliapietra said collision centers will be able to select which customer estimates they do not want to be shared,

providing complete control of the process. Once an estimator captures the VIN, it is entered into the DataTouch Anonymizer. The estimator can then export the data with the anonymized VIN to the estimating system provider.

Using VINAnonymize, collision centers will be able to select which customer estimates they do not want to be shared, providing complete control of the process. Credit: Shutterstock.

Tagliapietra said the anonymized VINs entered will still successfully decode with all three estimating systems. Furthermore, VINAnonymize does not affect the ability to search and/or order new OEM, aftermarket or recycled parts.

DataTouch, a Software as a Service (SaaS) provider to the collision repair industry, was established in 2022 to help collision repair shops securely manage and control customers’ PII and protect estimate repair information from being misappropriated (sold) by thirdparty companies in the collision repair industry. In addition to VINAnonymize, DataTouch offers Data Analyzer and Data Auditor. Data Analyzer helps collision repairers identify who has data pumps running on their facility’s computers. Data Auditor helps identify what information and how often it is being swept from shop computer systems. “DataTouch supports standardization and CIECA Standards; however, we want to ensure transactions are secure and third-parties don’t proliferate PII,” he said. “VIN Anonymizer is the first step that puts a security blanket around EMS and BMS.” For more information about DataTouch, visit www.datatouch.us.

I-CAR, Ford Launch New Repair Courses I-CAR has collaborated with Ford to introduce four new Ford repair courses. These online courses were designed in alignment with Ford repair procedures to equip repair professionals with the skills needed to maintain and repair the latest Ford vehicle models. The courses include Ford 2023 Super Duty New Model Training, Ford 2024 Mustang New Model Training, Ford 2024 Ranger New Model Training and Ford 2024 Nautilus Training Overview. I-CAR and Ford’s partnership highlights their shared dedication to advancing the collision repair industry. By providing comprehensive training on vehicle-specific technology, I-CAR and Ford empower repair professionals to deliver safe, precise and efficient repairs, ultimately benefiting both customers and the industry as a whole. Ford is also a member of I-CAR’s Sustaining Partner Program. For more information, visit I-CAR.com/Ford.

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GM Tops U.S. Auto Sales in 2023, Surpassing Toyota General Motors reclaimed its position as the top-selling automaker in the U.S. in 2023, surpassing Toyota in the industry’s overall best year since before the pandemic. The Detroit-based automaker reported selling 2.6 million new vehicles in 2023, an increase of 14.1% from the previous year. In comparison, Toyota, its closest rival, saw a 6.6% rise in annual sales, amounting to about 2.25 million vehicles. According to Cox Automotive, the industry enjoyed its best year since 2019, with total U.S. vehicle sales reaching nearly 15.5 million, a notable improvement from the 13.9 million sold in 2022. Despite challenges like a costly auto strike, GM’s resilience is evident in its sales figures. “GM has tremendous momentum. We grew our market share in 2023, maintaining strong pricing and low incentives. We led the industry in trucks and had great success with our affordable SUVs like the Chevrolet Trax and Buick Envista, some of today’s hottest-selling vehicles,” said Marissa West, senior vice president at GM and president of GM North America. “In 2024, we expect industry sales to remain strong and we’re excited about the opportunities ahead as we expand customer choice with new vehicles like the Chevrolet Equinox EV and Cadillac Escalade IQ.” The sales resurgence was partly fueled by manufacturers ramping up production to meet sustained consumer demand for new vehicles. However, analysts caution the industry might face headwinds due to rising interest rates impacting demand in the coming year. In an effort to clear older inventory, car dealers offered significant incentives and discounts in December, a shift from the previous trend of holding back on promotions. This strategy reflects a slight easing in demand after robust sales in the preceding years. Electric vehicles (EVs) also saw a surge in popularity, capturing a larger portion of the market in 2023. Toyota reported a 30.4% increase in sales of its electrified vehicles, which comprised 29.2% of its total U.S. sales. GM sold 75,883 EVs, including models from its Bolt and Ultium platform ranges. As the automotive sector navigates these evolving dynamics, GM remains optimistic about 2024, projecting industry sales of 16 million units. The company’s shares initially dipped but recovered partially following the announcement of its full-year sales. Other automakers reported strong sales to close out 2023 as well.

Subaru Subaru of America, Inc. reported 57,764 vehicles sold in December 2023, a 1.8% increase compared with December 2022, when it sold 56,760. Subaru ended calendar year 2023 with 632,086 vehicle sales, a 13.6% increase compared with calendar year 2022.

December sales total in company history. Hyundai set total sales records in December for IONIQ 5 (+90%), Santa Fe PHEV (+3205%), Santa Fe HEV (+74%), Tucson (+8%), Tucson PHEV (+8455%) and Palisade (+95%). All-time total sales monthly records were set for Tucson PHEV, Santa Fe PHEV and Palisade.

ever for the Hyundai brand. Amongst several model records, Tucson established a new yearly sales record, selling more than 200,000 vehicles for the first time ever. 2023 was also a record year for retail sales, increasing 1% compared with 2022 and the third consecutive year setting a new retail sales record. During the year, Hyundai fleet sales were 10.9% of total volume. Mazda Mazda North American Operations reported total December sales of 39,518 vehicles, an increase of 44.8% compared to December 2022. Fullyear sales totaled 363,354 vehicles, an increase of 23.2% compared to 2022. With 26 selling days in December, compared to 27 the year prior, the company posted an increase of 50.4% on a Daily Selling Rate (DSR) basis.

GM sold 245,000 full-size SUVs in 2023, including the Cadillac Escalade, seen here.

For calendar year 2023, Outback was the top performer by volume with 161,814 vehicle sales (+10%). Crosstrek, a close second by volume, achieved its best year ever with 159,193 vehicle sales (+3%) and had its best December ever. Forester added 152,566 annual sales (+34%) in 2023. On the performance side, the automaker’s WRX model achieved annual sales of 24,681 (+32%), and the BRZ sports car added 4,188 sales (+25%) in 2023. The Solterra EV completed its first full year on sale with 8,872 vehicle sales. Kia December sales of 60,275 units capped the best-ever fourth quarter for fast-growing Kia America and wrapped the greatest annual performance in company history. Kia’s 2023 total of 782,451 units was up 13% year-over-year and 12% over the previous record set in 2021. In addition, the brand set an all-time record with 725,817 units sold through Kia dealers nationwide. Six Kia models set all-time annual sales records in 2023, including Carnival (+93%); Niro (+26%); Seltos (+17%); Sportage (+12%); Telluride (+11%); and Forte (+7%). Sales of Kia’s electrified models increased 41% and SUV sales increased 16% over the segments’ previous records. Overall, Kia’s rugged and capable SUVs accounted for 72% of 2023’s annual sales total. Hyundai Hyundai Motor America reported total December sales of 75,164 units, a 4% increase compared with December 2022 and the highest

38 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

In Q4, Hyundai sold 206,048 vehicles, a Q4 total sales record, and an increase of 5% compared with Q4 2022. Eco-friendly vehicle retail sales for Q4 grew 37% compared with Q4 2022. For the year, Hyundai sold 801,195 vehicles, an 11% increase compared with 2022 and the highest total sales

Honda American Honda reported 2023 sales of 1.3 million vehicles, a 33% increase from 2022, and December sales of 123,388, a 31.5% increase over the same month a year ago. Electrified models set an all-time sales record, with CR-V and Accord hybrids combining for 293,640 units—more than a quarter of the Honda brand’s total sales.

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Honda To Launch ‘0 Series’ EV Globally in 2026 Honda announced its new global electric vehicle (EV) series, the “Honda 0 Series,” set to launch in 2026. The announcement was made during the world premiere of two concept models, Saloon and Space-Hub, at the Consumer Electronics Show (CES) 2024. The Saloon, the flagship model of the Honda 0 Series, encapsulates the series’ ethos of “Thin, Light, and Wise.” It is built on a dedicated EV platform, embodying Honda’s “man maximum/machine minimum” design philosophy. This results in a vehicle that boasts a low and wide exterior, yet surprises with a spacious interior. The use of sustainable materials throughout and the incorporation of an advanced humanmachine interface (HMI) further underscore Honda’s commitment to sustainability and innovation. Adding to its appeal, the Saloon introduces new steer-by-wire and motion control management systems. These advancements, derived from Honda’s extensive expertise in robotics, promise an enhanced driving experience,

reaffirming the brand’s dedication to the “joy of driving” in the EV era. A production model based on the Saloon concept is expected in North America by 2026. The Space-Hub, developed under the theme of “augmenting people’s daily lives,” offers a vision

Honda also introduced a new Honda “H” mark, exclusively for its next-generation EV models. The redesigned logo, symbolizing two outstretched hands, represents Honda’s ambition for a historic transformation and its continuous pursuit of new challenges.

Honda’s Saloon concept.

of a vehicle that is more than just a means of transportation. It is envisaged as a ‘hub’ that connects people to each other and the wider world. Its design emphasizes space and visibility. The Space-Hub’s flexible interior can adapt to various passenger needs, reflecting Honda’s vision of vehicles that extend beyond traditional roles.

The Honda 0 Series not only marks a new chapter in vehicle design but also in technological advancements, it will feature an advanced driver-assistive system (ADAS) and, later in the 2020s, next-generation automated driving (AD) features. These systems, developed with Honda’s human-centric safety concept, will use AI, advanced sensing,

recognition and driver monitoring technologies to offer natural and precise risk predictions. This approach aims to make AD features more accessible and comfortable for users. In addition to these technological advancements, the Honda 0 Series will be characterized by enhanced aerodynamics and battery efficiency. The series will leverage Honda’s motorsports heritage, including Formula 1 experience, to deliver a sporty driving experience. The e-Axles system, along with a high-density battery, promises ample power and range while maintaining a compact size. To address common concerns around EVs, Honda is also focusing on reducing charging times and minimizing battery degradation over time. Honda’s commitment to the “Art of Resonance” design philosophy, integrating the environment, society and users, is evident in the Honda 0 Series. This holistic approach ensures the vehicles not only meet but enhance the needs and expectations of consumers.

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GM Buys Out Nearly Half of Buick Dealerships General Motors will end the year with 47% fewer Buick dealerships than it had at the beginning of 2023— about 1,000 nationwide—after nearly half declined to spend $300,000 to $400,000 to be able to sell EVs.

Buick’s Wildcat EV concept.

The Detroit Free Press reported a GM spokesperson, Scott Poppitt, said in an email, “We’ve given dealers who are not aligned with Buick’s future to exit voluntarily in a respectful and structured way; with the full support of our National Dealer Council.” Buick plans to only offer electric models by 2030. Poppitt told the Free Press that despite the loss, Buick sales are still up nearly 60% this year through November, meaning the remaining dealerships saw their average throughput triple. The voluntary buyout program is still open.

U.S. Fuel Economy Hit New Record High, CO2 Emissions Record Low in 2022 Cars The U.S. Environmental Protection Agency on Dec. 20 released its annual Automotive Trends Report, which showed that model year (MY) 2022 vehicle fuel economy reached a record high while emission levels dropped to record low levels. The report also showed that through the MY 2022 reporting period, all 14 large manufacturers are in compliance with the light-duty greenhouse gas program requirements. “As the United States accelerates towards a clean transportation future, today’s report highlights the historic progress made so far by the industry to reduce climate pollution and other harmful emissions,” said EPA Administrator Michael S. Regan. “We are thrilled to see manufacturers continue to innovate and develop technologies in multiple vehicle categories that have led to a substantial increase in miles per gallon, passing cost savings onto families across the nation.”• Key Highlights of the Report • New vehicle carbon dioxide

emissions and fuel economy had the biggest annual improvement of the last nine years, reaching record low CO2 emissions and record high fuel economy.

Since model year 2004, CO2 emissions have decreased 27% and fuel economy has increased 35%. Credit: Shutterstock.

• From MY 2021-22, average fuel economy increased by 0.6 mpg, more than double the annual rate of improvement in fuel economy over the last decade. • Most vehicle types are at their best-ever fuel economy, including SUVs, which increased their fuel economy by 2.4 mpg in MY 2022. • The average estimated realworld CO2 emission rate for all

new vehicles fell by 3% to the lowest level ever reported. • Since MY 2004, CO2 emissions have decreased 27% and fuel economy has increased 35%. • Electric vehicles and plug-in hybrid electric vehicles helped reduce the overall average CO2 emissions from the MY 2022 fleet by 22 grams per mile and improved fuel economy by 1.2 mpg in MY 2022. Most manufacturers have made improvements in fuel economy over the past five years, and they continue to use a wide array of advanced technologies to achieve CO2 emissions, fuel economy and performance goals. In MY 2022, the combined category of electric vehicles, plug-in hybrid vehicles and fuel cell vehicles increased from 4% vehicles produced for sale in the U.S. in MY 2021 to 7% in MY 2022, and are projected to reach 12% in MY 2023. This trend will likely continue as EV production is expected to grow across the industry in coming years.

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Rivian R1T Owner Says Truck Has Been Out For Repairs For 8 Months By Suvrat Kothar InsideEVs

signals to different components and systems: lights, switches, speakers, cameras. Disassembling the vehicle’s entire wiring harness to replace a small piece of equipment is unheard of. It appears Rivian isn’t the only one facing challenges related to

the vehicle was being returned to Holbrook fully restored—though the owner test-drove it recently and still found some problems. Rivian said this case was unique, and that the vehicle was determined to be ineligible for a buyback, after it was reviewed by a committee.

collision center and the customer. More collision centers are needed to repair Rivian vehicles. This year, we have doubled the number of Rivian certified third party collision centers, and continue to grow that number to give customers more options when selecting a body shop for their collision repair needs.” In eight months, Holbrook has driven three different cars. He picked up a rental Jeep Wrangler for the first two months, covered by Nationwide. For the third month, he continued driving the Wrangler but paid for it himself. Then for a couple of months, he drove his son’s 15-year-old Toyota Highlander. Rivian finally handed him a loaner R1T, which doesn’t connect to his phone and has some restricted connectivity features, but works fine otherwise, he said. Rivian seems to be aware of its wiring harness complications. CFO Claire McDonough indicated earlier this year the company expects some downtime in the summer of 2024 to shift to simpler network architectures and reduce the number of parts, primarily ECUs, by 60% for the R1T and R1S, which would lead to the shortening of the wiring harnesses by 25%.

When Michael Holbrook took delivery in Utah of his new Rivian R1T Launch Edition in June 2022, he was ecstatic. He was among the early reservation holders and had shelled out roughly $85,000 for the truck. Despite the three-year wait, it seemed all worthwhile. Between June 2022 and April 2023, Holbrook clocked approximately 7,500 miles on his R1T. “The truck exceeded my expectations in every way possible,” Holbrook told InsideEVs. What’s not to like, right? With quad motors, 835 horsepower and sports car-rivaling driving dynamics, the R1T was a delight from behind the wheel, he said. “I’ve used it to carry skiing and mountain biking equipment, and I even towed a 5000-pound snowmobile with it,” he said. But in April 2023, the R1T Photos provided by the truck’s owner show the damage and parts of the repair process. collided with a Jeep Cherokee at an intersection in Utah, after the Cherokee drove in from the right wiring harness design. In May 2022, Rivian gave InsideEVs an official and bumped into the front right Lucid recalled Air electric sedans statement: fender of the R1T. due to faulty cables linked to its “We recognize that an eight“We were both really slow, maybe gauge cluster. The cables risked month wait time for a collision repair 5 miles an hour,” Holbrook said. getting damaged due to steering is too long, and we have been in The R1T’s front right quarter panel column movements. Porsche, in contact with both the third-party suffered minor damage. 2022, recalled more than 40,000 Holbrook drove the vehicle to a Taycans after it found the wiring Rivian-certified body shop in Salt harness could be damaged during Lake City to replace the side camera seat adjustment, leading to and repair the damaged panel. But deactivated airbags and seatbelt that was eight months ago, and pre-tensioners, posing Santa Margarita Fordserious • Team of Professionally Trained Wholesale Parts Specialists Holbrook said his vehicle still hasn’t safety risks. Chevrolet Bolt EV Ready to Help You been returned. owners shared similar worries on Wholesale • Fleet of 5 Dedicated Delivery Vehicles After an initial assessment, the an online forum in Hotline 2021, where • 1.5M+ Inventory of Genuine Ford Parts Electronically Updated Daily body shop found the crash had wiring harness failures were causing pinched the cable linking one of • Competitive Pricing and Discounts safety concerns. the side view cameras. Ideally, Holbrook said the EV sat at the • Fast Free Same Day Delivery to All of Orange County that portion of the wiring harness certified collision center for four needed replacement to get the months because Rivian hadn’t www.santamargaritaford.com camera working again. The R1T handed over the necessary software. 30031 Santa Margarita Pkwy has 11 cameras in total, covering It was then shipped to Rivian, and it 949-888-6733 FAX Rancho Santa Margarita, CA 92688 the front, rear, both sides and bed, took two more months trying to sort Mon-Fri 7-6 providing a surround view of the out the problem. vehicle. “When the car returned, the body But here’s where things got pretty shop found that Rivian didn’t do it messy: To swap out the side view [the repair] correctly and damaged camera, the body shop had to take the vehicle further,” he added. “At apart the interior, yank out the seats that point, I called Rivian, but they and dismantle the dashboard to refused to speak to me. My vehicle replace the entire wiring harness. has been completely mutilated in The fix wasn’t a walk in the park; this process of being disassembled it needed Rivian’s specialized twice and reassembled twice.” diagnostic software, “Ride.” The InsideEVs reached out to Rivian, body shop didn’t have the software, and a company spokesperson nor were the mechanics there said the start-up is relatively trained to use it, according to new and still learning. Rivian has Holbrook. developed a service harness to rwallace@santamargaritaford.com Wiring harnesses are like the car’s solve this problem more easily. nervous system, sending power and The spokesperson also confirmed

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Cummins Inc. Fined $1.675 Billion For Clean Air Act Violations

John Bean Posts New ADAS System Videos

Cummins Inc. agreed to pay a safeguard American citizens from historic $1.675 billion penalty harmful pollutants. “Today, the to the U.S. and the State of Justice Department reached an California for violating the Clean initial agreement with Cummins Air Act by installing emissions Inc. to settle claims that, over defeat devices on hundreds of the past decade, the company thousands of engines, marking unlawfully altered hundreds of the largest civil penalty in the thousands of engines to bypass act’s history and the secondemissions tests in violation of the largest environmental penalty Clean Air Act,” Garland said. ever. According to the press release, Cummins Inc. allegedly equipped 630,000 model year 2013 to 2019 Ram 2500 and 3500 pickup truck engines with defeat devices. These devices are designed to bypass, defeat or render inoperative crucial emissions controls such as emission sensors and onboard computers. Additionally, the company is accused of installing undisclosed auxiliary emission The penalty is not just a control devices on 330,000 financial hit to Cummins Inc. but model year 2019 to 2023 Ram also a statement of the Justice 2500 and 3500 pickup truck Department’s aggressive stance engines. against environmental law U.S. Attorney General Merrick violations. Preliminary estimates B. Garland emphasized the suggest the defeat devices commitment to enforcing in question caused Cummins (no bleed) | 4˝tox 5˝ environmentalQuarter lawsPagethat engines emit thousands of

New videos have been added to the John Bean website to help users get the most out of the award-winning Tru-Point™ advanced driver assistance system (ADAS) calibration tool. The Tru-Point ADAS system coverage videos include topics such as the calibration procedure, radar, night vision, Lidar, lane watch, blind spot and front camera, as well as the front radar cone, front radar plate and side and rear radar. A one-stop solution for ADAS calibration, Tru-Point uses highly accurate advanced camera technology, targets and topof-the-line software to quickly uncover core ADAS-specific vehicle alignment issues, allowing users to perform accurate ADAS calibrations. Tru-Point performs a check of the ADAS-related wheel alignment values and closely monitors each step of the setup procedure, ensuring that OEM safety specifications have been met before an ADAS calibration is performed. Learn more at www.JohnBean.com.

tons of excess nitrogen oxides, significantly impacting public health and safety. Long-term exposure to these pollutants can lead to severe health issues, including asthma and respiratory infections. The Justice Department will work to incorporate this agreement into a consent

decree, which will be filed with the U.S. District Court for the District of Columbia. Garland expressed gratitude to the teams from the Environment and Natural Resources Division, the EPA and the State of California for their roles in investigating and prosecuting this case.

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Romans Group Releases 2022 Profile of Evolving Collision Repair Marketplace The Romans Group recently published its 17th annual white paper, “A 2022 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace,” analyzing a banner year for the industry and predictions for the future. The full white paper, containing the complete results of the group’s research and analysis for 2022, including more than 75 charts and graphs with historical trends and a future view, can be purchased by contacting Mary Jane Kurowski at maryjane@romans-group.com. Pre-COVID 2019 had been the apex year for the U.S. collision repair industry, with a total addressable market (TAM) of $38.6 billion, the highest in history— until 2022, which set a new benchmark for opportunity and success, with a TAM of $44.8 billion. Despite the continued technician shortage, this was possible due to the industry’s general improvement in better optimizing production throughput and the ongoing increase in severity throughout 2022 and continuing into 2023. The recovery from the pandemic’s downward impact in 2020 and 2021 continues to have near-term relevance for comparison purposes for the postpandemic years of 2022 and 2023. The recovery continues its steady growth despite the tightening economy for the North American collision repair industry and the broader auto physical damage landscape. The steady number of vehicles on the road and a consistent and stable number of car accidents continues to fuel demand for collision repair services without any significant decrease in sight. However, the collision repair technician shortage in the U.S. remains a significant challenge impacting the ability to repair and service these vehicles in a timely manner. Collision Repair Industry Some highlights of a generally recovering and improving collision repair industry: • As 2023 was the year for everything artificial intelligence, it was no different for the collision repair space. Its use and introduction as part of many organizations’ solutions to solve many of the industry’s problems has been announced and marketed throughout many of the segments within the broader auto physical damage landscape. • Some progress has been made between insurers and OEMs regarding the growing adoption and implementation of OEM vehicle repair standards and how to balance and resolve keeping the

repairer out of the middle of these two sometimes conflicting repair processes and procedures. • The collision repair space continues to deliver its long-term proposition of proven economics and growth supported by insurance-industrydriven demand dynamics that create cash flow stability and profitability for many of the best operators. Over the past decade, because of this value proposition we have seen the influence of private equity’s investment growth strategy targeting both larger and now smaller independent MLOs. • With regard to physical growth, the benefits and risks to all consolidators continue to be the ability to quickly, efficiently and effectively integrate expansion and acquisitions. This includes managing and navigating new market dynamics and scale, growing their client and revenue base, the ability to balance ongoing insurance DRP and OEM certification program requirements, leveraging supplier relationships and the economies of purchasing power, as well as their ability to effectively integrate their systems and business operating model within their new single-and multiple-location markets. • U.S. EV sales increased in 2022, versus an overall decline for total U.S. auto sales. While EV sales and inventory share grows, so does the total cost of repair and the number of parts replaced on EVs compared to non-EVs. While vehicle sales and market share growth continue their forward momentum, there is a possibility of a slowdown as EV inventory increases. • Industry growth and expansion creates the opportunity for an inevitable change and shift among MSOs, insurers and OEMs in the balance-of-power dynamics, especially in many of the more consolidated markets such as Dallas, Chicago, Los Angeles and Philadelphia. The industry is one step closer to a tipping point where the consolidated MSOs’ revenue outnumbers the remaining independent and dealer consolidated revenue and industry scale. • During 2022, a more aggressive group of mid-size privateequity-funded consolidators accelerated both their single- and multiple-location acquisitions and geographic diversity. The strategic focus at this time for many consolidators continues to be to pursue both new and existing market growth through single and multiple-location acquisitions.

44 FEBRUARY 2024 AUTOBODY NEWS / autobodynews.com

However, this expansion focus has been slowed by the economic realities associated with increased financing costs for acquisitions and re-capitalizing businesses. Multiple Location Operator, MLO, Segmentation Throughout the report, The Romans Group segments U.S. collision repair organizations in a variety of ways: • Independents • Dealers • Top three consolidators • >$20M Multiple-Locations Operators (MLOs) • $10M-$19M MLOs • <$10M MLOs • Fra n c h i s e / B a n n e r / M u l t i p l e Location Network (MLN) • Private equity and other investorsponsored MLOs • All other remaining relevant repairers The >$20M segment, especially the top three independent consolidators—Caliber, Gerber and Crash Champions—continue to grow steadily, underpinning the longterm collision repair consolidation trend. Their marketplace leadership continues due to: • Increasing levels of regional and national network scale. • Organic revenue growth based on

• • • •

•

market scale, brand recognition and network performance. Insurer DRP and OEM certification relationships. Customer acquisition segmentation. Multiple-location platform acquisitions. A steady number of strategically placed geographic singlelocation acquisitions coupled with greenfield and brownfield development. Ability to integrate acquisitions and implement operational and performance improvement. Ability to leverage capital expenditures for future growth and development.

Canadian Market During 2022-2023, the Canadian collision repair industry continued its uneven recovery from the pandemic. Many of the risks and challenges within Canada were similar to those in the U.S. market. Opportunities to increase revenue production have carried forward throughout the year due to an increase in sales driven by higher repair costs and parts inflation, vehicle repair complexity and increased scanning and calibration services. Despite this improvement, a constrained production environment

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continues due primarily to the ongoing technician shortage and increased delays with insurance company response times to appraise and adjust estimates and vehicles repairs. Starting in 2022, up to 70% of repair facilities began refusing to take nondrivable vehicles. Some shops were booking out for seven to nine months and the thought was that avoiding non-drivables would make more space for quicker turnaround repairs. When ranking all the types of repair organizations, the first two positions in the All-Repairers ranking are represented by one Franchisor and one Banner Group. The remaining companies reflect a combination of independent and dealer, banner and franchise organizations. Industry Trends The growing cost and complexity of vehicle repairs, as well as an increase in bad driving habits, are creating ongoing problems for the auto insurers. There were and continue to be several reasons for this unprecedented poor performance. • Total vehicles miles traveled, as tracked by the St. Louis Fed, have been on the upswing since early 2021 and are now approaching pre-pandemic levels, causing a spike in claims. • More severe accidents due to

increased bad driving behavior such as increased speeding, distracted driving and decreased seat belt use that began during the pandemic. According to Cambridge Telematics, there has been a 23% surge in distracted driving since 2020 resulting in an estimated 420,000 additional crashes in 2022. • Not all claims are accident related. According to Allstate, catalytic converter replacements jumped 1,155% between 2019 and 2022 nationally and by 6,400% in Oregon, Washington, Pennsylvania and Connecticut. • Average repair costs skyrocketed due to greater repair complexity, higher inflation-based labor expenses, more parts and higher parts costs coupled with supply chain issues, diagnostic scans and calibrations, and new costly materials such as aluminum and carbon fiber. The Romans Group’s five-year forecast to 2027 has the >$20 million segment and the Top 3 Consolidators aggressively growing their businesses while maintaining their significant market share lead over the Franchise Networks and the $10-$19M MLO segments. It expects that by 2027, the Top 3 Consolidators will grow from their 2022 market share of over 22% to up to 32%.

SATA Acquires Dan-Am Company SATA USA Inc. has signed an agreement to acquire Dan-Am Company, it announced in a news release Jan. 10. The deal comes after decades of successful cooperation between Dan-Am Company, based in Spring Valley, MN, and SATA USA’s parent company, SATA GmbH & Co. KG, based in Germany. Dan-Am has been the exclusive distributor of SATA equipment in the U.S. and Puerto Rico. “We are excited about this new chapter in the history of both Dan-Am and SATA,” said Mike Carlos Wolf, CSO of SATA GmbH & Co. KG. “This acquisition will allow us to continue to provide our industry partners and customers in the USA and Puerto Rico with the best equipment and outstanding service they know and love from SATA and Dan-Am now and, in the future.” The acquisition of DanAm Company is a significant milestone for SATA and part of the company’s strategic growth initiatives to strengthen

its presence in the whole North American market and expand its product portfolio. SATA is committed to making the transition process smooth while maintaining and strengthening DanAm Company’s existing relationships with customers, suppliers and employees. DanAm Company customers can continue to expect the quality, reliability and service they have been accustomed to. “We would also like to take this opportunity to express our sincere gratitude for the decades of excellent cooperation with the Dan-Am Company team and the Jorgensen family,” said Florian Kaiser, COO of SATA GmbH & Co. KG. “Their dedicated partnership and trust have been instrumental to the success and growth of both companies. We greatly appreciate the long-standing relationship and are grateful for the valuable contributions and support we have received from the Jorgensen family and their team.”

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Automakers With Large EV Portfolio Have Higher Website Satisfaction Co-President & Publisher Nathan Gregory

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Although overall satisfaction with car manufacturer websites remains flat, satisfaction among electric vehicle (EV) shoppers has increased since the last volume in summer 2023, according to the J.D. Power 2024 U.S. Manufacturer Website Evaluation Study—Winter, released Jan. 9. Specifically, of the six brands that experienced significant increases, five have a larger EV portfolio. “Previously, car manufacturers had difficulties showcasing the technological specifications for their EVs in an easily digestible way for shoppers,” said Eric McCready, director of digital solutions at J.D. Power. “Now, the tide has turned as the EV shopping experience has been elevated. Looking ahead, manufacturers that evenly distribute the focus and updates across all vehicle types will see higher satisfaction with vehicle shoppers.” The J.D. Power U.S. Manufacturer Website Evaluation Study is a semiannual

study that measures customer satisfaction of automotive manufacturer 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 Mercedes-Benz ranks highest among premium manufacturer websites with a score of 751. Tesla (749) ranks second and Cadillac (737) ranks third. Hyundai ranks highest among mass market manufacturer websites with a score of 728. GMC (727) and Kia (727) each rank second in a tie. The U.S. Manufacturer Website Evaluation Study, initially released in 1999, is based on responses from 12,481 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded from October through December 2023.

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OPENLANE’s Launches Visual Boost AI OPENLANE, Inc., unveiled its innovative Visual Boost AI™ technology. This cutting-edge tool significantly enhances vehicle inspection processes by employing artificial intelligence to detect and highlight exterior damage in dealerconsigned vehicles. At the heart of this innovation is the capability of Visual Boost AI to supplement traditional vehicle inspection data. By integrating AIpowered overlays directly into vehicle photos within the condition report, potential defects are now prominently and accurately displayed. This not only streamlines the inspection process but also provides buyers with a more intuitive and efficient way to assess vehicles before purchase. The AI overlays translate written condition report data into an easily interpretable visual format, effectively providing a second set of eyes for dealers. This feature is accessible whether on the road, on the lot or on a phone, offering a near in-person inspection experience from any screen. For more information or to schedule a demo, visit openlane.com.

Volkswagen Partners With AI Company To Integrate ChatGPT in Vehicles Cerence Inc. and Volkswagen on Jan. 8 announced a partnership to deliver an automotivegrade ChatGPT integration to Volkswagen drivers. Volkswagen will leverage Cerence’s new, generative AI-powered Cerence Chat Pro to enable drivers and passengers to engage the in-car assistant in fun and conversational chitchat, leveraging a multitude of sources, including ChatGPT, to provide accurate and relevant responses to nearly every query imaginable. Volkswagen will be the first automaker to roll out the new feature via cloud updates to cars already on the road. Cerence Chat Pro will go live in current MEB and MQB evo models from VW Group brands that use the IDA voice assistant. Cerence Chat Pro is the fastest and easiest way for automakers to integrate ChatGPT into their in-car assistant platforms with full flexibility, extensive customization and low integration effort. “With software at the core of

the Volkswagen of the future, it’s critical that we quickly deploy meaningful innovation powered by advancements in AI,” said Thomas Ulbrich, member of the Board of Management responsible for new mobility at Volkswagen.

“By leveraging Cerence Chat Pro, we are able to bring added value and a fun and engaging experience to our drivers with minimal integration effort and on a short development and deployment timeline, ensuring our customers are benefitting from new AI-powered conversational technology.” “We’re proud to build on our automotive expertise and

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our long-term partnership with Volkswagen to continue to bring new innovation to customers, even post-vehicle purchase,” said Stefan Ortmanns, CEO of Cerence. “It was impressive to see the agility and speed of the Volkswagen team as our companies collectively sprung into action to bring this project to life, marking our shared commitment to leveraging advancements in AI to enhance the in-car user experience.” Looking toward the future, Volkswagen and Cerence will explore collaboration to design a new, large language model (LLM)based user experience as the basis of Volkswagen’s next-generation in-car assistant. This unique user experience will combine voice and touch, allowing users to perform tasks across different applications in a single conversational thread for a safer and more joyful driving experience. The system will be built on Cerence’s first-of-its-kind, automotive-grade LLM fine-tuned with the company’s extensive automotive dataset.

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