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Santa Clara CAA Hosts Parts Program Talk with Honda, Acura and Toyota Representatives by Ed Attanasio
Representatives from American Honda, Acura and Toyota were the featured speakers at Santa Clara California Auto Body Association’s meeting, held on FebruFrom left: George Turk, Fixed Operations Marketing ary 15 at the Three Flames Manager for Honda California Zones; Joe Stearns, restaurant in San Jose, Calif. With Assistant Zone Manager for Parts & Services more than 50 chapter members in Operations for the Acura Division; Toyota Wholesale attendance, George Turk, Fixed Development Consultant Ruben De Loera; and Terry Operations Marketing Manager Banks, Dealer Operations Consultant for Toyota. Turk and De Loera spoke about their respective for Honda’s California Zones, automaker parts programs. spoke first about CollisionLink, an OE Parts Ordering system devised and maintained by OEConnecSee Parts Presentation, Page 12
U.S. House Judiciary Members Introduce Auto Parts Bill, Aims to Limit Parts Patent Protection
on collision repair parts against alternative suppliers. Both members serve on the House Judiciary Committee’s Subcommittee on Intellectual Property, Competition and the Internet. Lofgren introduced auto parts patent legislation in the last Congress. The new subsection reads as follows: “It shall not be an act of infringement of such design patent to make or offer to sell within the United States, or import into the United States, any article of manufacture that is similar or the same in appearance to the component part that is claimed in See PARTS bill, Page 26
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The Promoting Automotive Repair, Trade and Sales (PARTS) Act, a new bill introduced to the U.S. House of Representatives, proposes to reduce the patent period car companies have on their collision repair parts from 14 years to 2.5 years (30 months). H.R. 3889 was introduced on Feb. 2 by Darrell Issa (R-Calif.) and Zoe Lofgren (D-Calif.) to the House Judiciary Committee. A similar bill is currently being prepared in cooperation with the U.S. Senate Judiciary Committee. The bill would amend title 35 of current U.S. design patent law whereby automotive manufacturers may enforce their design patents
VOL. 30 ISSUE 3 MARCH 2012
AASP/New Jersey to Kick Off 35th Annual NORTHEAST Trade Show in Secaucus, NJ The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) will hold their 35th annual NORTHEAST™ trade show March 9, 10 and 11 at the Meadowlands Exposition Center of Secaucus, NJ. The association announced the educational seminar schedule as well as a list of booth exhibitors. The weekend will start on March 9, with a Leadership Forum held by SCRS and the AASP/NJ. The East Coast Resolution Forum welcomes representatives from national and local automotive repair associations on March 9 at 1 p.m. The forum will go until 5 p.m. and will invite association leaders to discuss updates on their organizations’ activities as well as share industry news with their peers. The meeting provides associations from across the country with a chance to network and learn from other associations.
Then at 6pm, Mark Olson of VeriFacts starts the NORTHEAST™ seminars with "Shop Differentiation: How to Make Your Shop Stand Out, followed by Future Cure’s Tom Beck presenting Drying Waterborne: What You Need to Know NOW." Larry Montanez III of P&L Consultants / IACDA will also be on hand March 9 from 8 p.m. to 9 p.m., discussing OEM Repair Procedures vs. Repair Standards in the first of a two-part series. Kristen Felder and Elizabeth Blackman of CollisionHub will close out March 9’s seminars with SOS: A Social Media Intervention. For a full schedule of the weekend's seminars please see www.autobodynews.com. Then an after hours a Vendor Appreciation after party will be held from 10 p.m. to 12 a.m. “There isn’t anywhere within 500 See NORTHEAST, Page 18
State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting by John Yoswick
Speaking at the January Collision Industry Conference (CIC) in Palm Springs, State Farm’s George Avery said that PartsTrader, the electronic parts ordering system the insurer expects it will eventually require its Select Service shops to use, is currently being tested at one repair facility and soon will be at another location. He declined to identify the shops, saying that it is too early in the testing “to put those folks under the microscope and ask, ‘What do you think of the new system?’” The announcement was just one of the parts-related issues discussed at CIC. The CIC “Parts and Materials Committee” shared the results of a preliminary survey of 11 of the companies offering electronic parts locat-
ing and procurement systems to the industry. Committee member Mary Lou Lubrano of Car-Part.com reported, for example, that about the same number of those companies said insurers pay for use of their Ron Reichen, systems as those Oregon Shop that said they are Owner, said funded by parts carriers’ reported vendors; two of return rates don’t appear to match up the companies with those reported said shops pay for by vendors the systems. “I would argue that shops pay for all of them, because having nine disparate parts systems, some of which may be mandated by their insurance See CIC Report, Page 10
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Contents
NATIONAL “Evangelist Jerry Bratt” Scam Revived . . . . . 47 AASP/New Jersey to Kick Off 35th Annual NORTHEAST Trade Show in Secaucus, NJ . 1 ABRA Auto Body & Glass Announces New Vice President and Chief Financial Officer . 52 Allstate will open Agencies in Dealerships, from Test Program . . . . . . . . . . . . . . . . . . 47 ASA & Diamond Standard Product Liability on Website. . . . . . . . . . . . . . . . . . . . . . . . 39 ASA Announces 2012 Annual Meeting Dates and Location . . . . . . . . . . . . . . . . . 36 Chevy Volt Sees Stalled Momentum/Optimism . 61 China Auto Parts and Service Show to be
12 ne of 20 Ju d n a y a April, M l issues Coming in focus 3 specia
s will aga Autobody New paint technology this year. on paint and
s w il l e u s s i e Th : focus onSES • PAINT PROCESOLOGIES • PAINT TECHN RODUCTION PAINTERS • CUSTOM & P Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia
Audi Wholesale Parts Dealers . . . . .54 Automotive ID . . . . . . . . . . . . . . . . . .10 BMW Wholesale Parts Dealers . . . .43 Chief Automotive . . . . . . . . . . . . . . . .9 Classifieds . . . . . . . . . . . . . . . . . . . .62 Completes Plus . . . . . . . . . . . . . . . . .6 Crevier BMW . . . . . . . . . . . . . . . . . .26 CSS USA, Inc. . . . . . . . . . . . . . . . . .24 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .18 Drew Hyundai-Volkswagen . . . . . . .44 DuPont . . . . . . . . . . . . . . . . . . . . . . . .5 Elk Grove Toyota . . . . . . . . . . . . . . .35 Enterprise Rent-A-Car . . . . . . . . . . .57 Equalizer Industries . . . . . . . . . . . . .30 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .31 Galpin Motors . . . . . . . . . . . . . .27, 39 Garmat USA . . . . . . . . . . . . . . . . . . .36 Glenn E. Thomas Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . .11 GM Wholesale Parts Dealers . . . . . .52 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .51 Innovative Tools & Technologies . . .25 Kearny Mesa Subaru-Hyundai . . . . .48 Kia Motors Wholesale Parts Dealers .41 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63 Malco . . . . . . . . . . . . . . . . . . . . . . . . .2 Mazda Wholesale Parts Dealers . . .56
Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
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COLUMNS Attanasio, Garmat - Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations . . . . . . . . . . . . . . . . . . . . . . . 37 Evans - Barrett-Jackson DIY Event Draws Fans and Future Body Techs . . . . . . . . . . . 58 Franklin - Spotting a Newsworthy Opportunity . 22 I-CAR - Corrosion Protection to Structural Part Interiors . . . . . . . . . . . . . . . . . . . . . . 48 Insurance Insider - Getting a Guess-timate From the Real Experts . . . . . . . . . . . . . . . 20 Nigro - A Shop Owner’s Suggestions to Control Steering and Worse to Come . . . . 40 Schroeder - FCC Collision Continues Expansion in the Greater San Francisco Area . . . . . . . 16 Sisk - Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs . . . . . . . . 38 Sisk - Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World . . . . . . . . . . . . . . 42 Weaver - Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician . . . . . . . . . . . . . . . . . . . . . . . . 35 Williams - Jerry Ulm Dodge Chrysler Jeep, a Truly Distinctive Florida Dealer . . . . . . . . 14
Held June 2012 . . . . . . . . . . . . . . . . . . . . 57 Chrysler Recalls Police Cars . . . . . . . . . . . . . 57 Chrysler Reports 1st Full Year Profit Since Crisis. 57 Consumer Reports Says Brand Perception Narrows. . . . . . . . . . . . . . . . . . . . . . . . . . 57 CREF Sees Record $4.1 M in Industry Donations for 2011 . . . . . . . . . . . . . . . . . 44 Diamond Standard Launches Website for ASA Members . . . . . . . . . . . . . . . . . . . . . 62 DuPont Paint Unit Bidding . . . . . . . . . . . . . . . 57 Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud . . . . . . . . . . 44 Feds Escalate Jeep Airbag Investigation . . . . 61 Flag Football Tournament/Trade Show Highlights Van Tuyl Charity Super Bowl Weekend . . . 28 GM is Back on Top As the World Number One . 57 Guardian Auto Glass Continues Expansion into Colorado Springs Area . . . . . . . . . . . . 53 Honda Recalling 2008 and 2009 Odysseys for Liftgate Struts . . . . . . . . . . . . . . . . . . . 34 Honda’s Ridgeline Recall . . . . . . . . . . . . . . . 61 Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply . . . . . . . . . . . . . . . . . . . . . . . 60 KBB Gets New President. . . . . . . . . . . . . . . . 57 LA Police Crack Staged Crash Ring . . . . . . . 52 MOPAR Celebrates 75th Anniversay, 4 New Models . . . . . . . . . . . . . . . . . . . . . 61 NABC Plans At Least One Vehicle Gift in Each State This Year. . . . . . . . . . . . . . . . . 60 NHTSA Investigating Chevy and Toyota Models for Power Windows . . . . . . . . . . . 34 NHTSA Opened Ford and GM Van Investigations in January . . . . . . . . . . . . . 22 Nissan Leaf Software Upgrade Coming for 2011, 2012 Models . . . . . . . . . . . . . . . . . 34 Nissan Recalls 2012 Versa . . . . . . . . . . . . . . 57 NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances . 19 NSF Certifies PartsChannel Under Auto Collision Parts Distributor Certification Program . . . 34 Pa-based Keenan Auto Body Holds Facebook Jingle Contest . . . . . . . . . . . . . . . . . . . . . 39 Paint and Material Compensation and Cost Study, by Richfield Associates for Computer Logic . . . . . . . . . . . . . . . . . . . . 54 SAAB Dealers Still Looking at Options, Six Parties Still Contend . . . . . . . . . . . . . . . . 45 SCRS Offers Repairers Digital Member Services E-catalog . . . . . . . . . . . . . . . . . 57 2nd Toyota Driver’s Door Fire Probe Launched . 61 Several Crash Parts Bills Introduced to State Legislatures Countrywide . . . . . . . . . . . . . 25 State Farm Pays Costs for Two Cases by Ray Gunder . . . . . . . . . . . . . . . . . . . . . . . 39 State Farm’s Testing of Parts Ordering System Among News, Discussion at CIC Meeting . . 1 Study: 96% of All Repair Shops Recycle Scrap Metal . . . . . . . . . . . . . . . . . . . . . . . 46 Subaru Recalling 2012 Outback and Legacy Models for Air Bags . . . . . . . . . . . . . . . . . 34 Supreme Court Allows Lawsuits on Lack of Safety Equipment . . . . . . . . . . . . . . . . . . . . 6 The 2010 Pro-Con Argument For Patent Protection of Collision Parts . . . . . . . . . . . 27 This Year’s Chicago Auto Show Used New Media Technology. . . . . . . . . . . . . . . 46 Toyo Tires Recalls 69,000 Tires Due to Kink . 26 Toyota to Expand in US With GA Compressor Parts Plant . . . . . . . . . . . . . . . . . . . . . . . . 47 U.S. Auto Industry Bullish on ‘12, Sales up 11%. 61 U.S. House Judiciary Members Introduce Auto Parts Bill, Aims to Limit Parts Patent Protection . . . . . . . . . . . . . . . . . . . 1 UPDATE: Proposed Houston License Ordinance Stalls . . . . . . . . . . . . . . . . . . . 36 Utah Bill to Weaken Vehicle Inspection Requirement. . . . . . . . . . . . . . . . . . . . . . . 36 Val-Test Distributor Show Announces New Product Winners. . . . . . . . . . . . . . . . 13
Indexof Advertisers
REGIONAL AkzoNobel Holds Acoat Performance Group Meeting in San Diego . . . . . . . . . . . . . . . . . 6 Arizona Considers Charging Electric Cars Per-Mile Tax . . . . . . . . . . . . . . . . . . . . . . . . 8 BodyShopBids Expands to Offer Online and Mobile Auto Repair Estimates in California . 18 Caliber Acquires 101 Collision, Reaches 100-Shop Milestone . . . . . . . . . . . . . . . . . . 6 CA Attorney Wins $10,000 Claim v. Honda . . 47 CA Law Demands More Low Emission Vehicles. 61 California Plans to Tighten Emissions Standards By 2025. . . . . . . . . . . . . . . . . . 36 CARSTAR Holds Results/Goals Teleconference. 6 East Bay CAA Chapter to Host Motivational Speaker . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Fisker Lays Off Employees in California. . . . . . 4 Fix Auto Adds Two New Shops to Network in N. California . . . . . . . . . . . . . . . . . . . . . 36 Inland Empire CAA Holds Tech Appreciation and Education Night . . . . . . . . . . . . . . . . . . 4 Mitchell Partners with San Diego Work Readiness Program, New Collision Repair Course at San Diego City College . . 45 Next Glendale/Foothill CAA Meeting to be Held March 8 . . . . . . . . . . . . . . . . . . . . . . . 8 Orange County CAA Chapter to Hold Morning Meeting in February . . . . . . . . . . . . . . . . . 45 Phoenix Auctions Show Collector Cars’ Comeback . . . . . . . . . . . . . . . . . . . . . . . . 57 PPG MVP Spring Conference Set for Phoenix March 25–27 . . . . . . . . . . . . . . . . 9 San Diego Chapter of the California Autobody Association Swears in New Board by New President at Meeting. . . . . . . . . . . . . . . . . . 4 Santa Clara CAA Hosts Parts Program Talk with Honda, Acura and Toyota Representatives . 1 Separate Arizona Bills: HB 2394 “Strikes Everything” on Unlawful Practices Language for Repair Shops; SB 1134 Requires Changes to Handling of Unearned Premiums by Insurers. . . . . . . . 24
MINI Wholesale Parts Dealers . . . . .56 MOPAR Wholesale Parts Dealers . .23 Moss Bros. Chrysler-Jeep-Dodge . . .7 Nick Alexander BMW . . . . . . . . . . . .17 Nick Alexander MINI . . . . . . . . . . . .64 Nissan Genuine Parts . . . . . . . . . . .15 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .55 PCL Automotive . . . . . . . . . . . . . . . .12 Pro-Spray . . . . . . . . . . . . . . . . . . . . .13 Rare Parts Inc. . . . . . . . . . . . . . . . . . .4 RBL Products, Inc. . . . . . . . . . . . . . .19 RealParts.com . . . . . . . . . . . . . . . . .14 Replica Plastics . . . . . . . . . . . . . . . .40 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .47 Safety Regulation Strategies . . . . . .20 SATA Spray Equipment . . . . . . . . . . .8 Shingle Springs Nissan-Subaru . . .49 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .45 Solution Finish . . . . . . . . . . . . . . . . .58 Subaru Wholesale Parts Dealers . . .53 Timmons VW-Subaru . . . . . . . . . . . .46 Toyota Wholesale Parts Dealers . . .50 Van Tuyl Group . . . . . . . . . . . . . . . .29 VeriFacts . . . . . . . . . . . . . . . . . . . . . .22 Volkswagen Wholesale Parts Dealers .61 Volvo Crash Wholesale Dealers . . .60 Weatherford BMW . . . . . . . . . . . . . .21
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 3
San Diego Chapter of the California Autobody Association Swears in New Board by New President at Meeting
Monte Etherton, Fender Mender, Encinitas; Vice President, Simon Freese, Drew Collision Center, La Mesa; President, Shon Craft, Rancho Collision Center, San Diego; Treasurer, Hop Sanchez, FinishMaster, Vista; Sergeant at Arms, Kurt Liobl, Mossy Auto Group, San Diego. Dave Picton also presented the honorary lifetime membership award to Dale Delmege of Chelsea Group, Inc., and DD Partners, Inc., in recognition for his dedication to the collision inSwearing-in of CAA San Diego chapter 2012 Board dustry, the CAA, and the group’s Members (from left): Amanda Smith, Angie Hernandez, Monte Etherton, Simon Freese, members. Dale has donated Shon Craft and with microphone: Dave Picton. countless hours educating various (Not pictured: Hop Sanchez and Kurt Liobl) CAA chapters and members The 40+ people in attendance across the state with his thought prowitnessed the swearing in of the chapvoking presentations. ter’s new officers by Dave Picton, the For more information about the California Autobody Association’s CAAplease visit www.calautobody.com. (CAA) incoming President for 2012. Dave came down from Sacramento to swear in the officers and give a brief summary of the state of the collision industry. He also provided bullet points of what the state CAA is going to be working on and addressing as this year continues. The new CAA San Diego officers for 2012 are as follows: Secretary, Amanda Smith, Mitchell International, San Diego; Secretary, (l to r) CAA President Dave Picton, Lifetime Angie Hernandez, Mitchell InternaMembership Award recipient Dale Delmege and San Diego Chapter past president Larry Houk tional, San Diego; State Board Rep., The San Diego chapter of the California Autobody Association (CAA) held their first meeting of 2012 on January 24th at Tom Ham’s Lighthouse.
Inland Empire CAA Holds Tech Appreciation and Education Night The Inland Empire chapter of the California Autobody Association (CAA) held a Tech education and appreciation night on January 25th at the Spaghetti Factory in Rancho Cucamonga.
The 13 technicians in attendance all went home with prizes from CAA associate members
This was the first meeting of 2012 for the Inland Empire chapter. New President Tim Brown from Auto Center Auto Body in San Bernardino was on hand to introduce the night’s speaker, Tom McGee, the Collision Industry Relations Manager for ALLDATA. Tom spoke about ALLDATA Collision S3500, see alldata.com/collision/now/demo.html. This is a newer platform that is easier to navigate. Tom also guided attendees through the re-
Fisker Lays Off Employees in California
Fisker Automotive, an electric car maker, said February 6 that it has laid off workers in Delaware and California. The bulk of the layoffs will hit contractors and employees at Fisker’s Anaheim, CA, location. The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker has been refurbishing since last year. Another 40 contractors and employees in Anaheim, Calif., also have been cut, according to the Associate Press. “We hope we can reach a resolution soon,” said Fisker spokesman Roger Ormisher. “We are frustrated that Fisker and the DOE have been unable to
come to terms on revisions to their loan agreement in time to avoid this,” said Brian Selander, a spokesman for Delaware Gov. Jack Markell. Fisker received $193 million of a $529 million Department of Energy loan this year for work on its electric vehicle models. Fisker has said in the past it expects to eventually employ more than 2,000 people at the Delaware plant. In October of last year there were more than 100 workers were reconfiguring the plant. “We knew that this was always a possibility,” Delaware economic development director Alan Levin said of the layoffs.
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pair procedures and symbols to help ensure that techs have a better understanding of the procedures outlined by a vehicle manufacturer to perform a proper repair. There were 60 people in attendance and 13 were technicians. Very generous associate members of the CAA donated prizes to be raffled off to technicians only, and all 13 in attendance went home with some great prizes. Each Tech who accompanied an Owner or Manager to the event received a complimentary meal.
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The 60 or so in attendance for the meeting filled the Spaghetti Factory in Rancho Cucamonga, CA
For more information about the next Inland Empire meeting please contact Cindy Shillito, the Southern CA CAA Rep, at 714-944-4028.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 5
Supreme Court Allows Lawsuits on Lack of Safety Equipment
The Supreme Court has reversed course and ruled that the nation’s automakers can be sued for failing to install the most-effective safety equipment in their vehicles. The unanimous decision on Feb.23 clears the way for a California man to sue Mazda Motor Corp. because his family’s 1993 minivan did not have a lap and shoulder belt in a middle rear seat. Judges in California had thrown out his lawsuit, citing a Supreme Court ruling in 2000 that shielded automakers from lawsuits for their failure to install air bags immediately in all their vehicles. In a surprise outcome, the high court reversed the California courts and cleared the way for Williamson’s lawsuit to proceed. Its opinion also backed away from its earlier view that the federal motor-vehicle safety law blocks most safety-related lawsuits against automakers. Justice Stephen G. Breyer described the federal safety regulations as setting forth only “minimum standards,” not the “maximum standards” required by law. Lawsuits from injured motorists can play a “continued meaningful
role,” he added, by requiring automakers to go further in seeking safety. Breyer explained that air bags had posed a different issue because, at the time, federal safety regulators did not want mandatory installation of air bags because of early doubts about their effectiveness. By contrast, he said, federal regulators had no objection to automakers installing lap and shoulder belts for all seats. It is not clear whether the decision in Williamson vs. Mazda will open a door to many more successful suits against automakers. Much depends on the specifics of the federal motor-vehicle safety regulations. But the outcome is a surprise nonetheless. In recent years, the high court led by Chief Justice John G. Roberts Jr. has regularly sided with corporations and blocked many lawsuits. In this case, however, the justices took the view that lawsuits filed by injured people can lead to safer products. Moreover, these suits are not blocked simply because the federal government regulates the product at issue, they said.
AkzoNobel Holds Acoat Performance Group Meeting in San Diego
50 new US stores in 2012. CARSTAR did have a presence in California in the early 90s, but it did not last. Byers said that he thinks this current expansion into California will be more successful because CARSTAR now has an insurance department and a purchasing department which make the company more stable. Byers said the way CARSTAR is now is “a dramatic difference over where we were in the early 90s.” Byers discussed the affect this mild winter has had on locations that normally see an increase in repairs due to winter weather. He said although the mild winter has clearly affected business across the US, CARSTAR depends on KPIs and DRPs to continue driving its business. “The industry...has seen a softening in the third quarter of 2011 into this year” due to the absence of inclement winter weather, according to Byers. For more information about CARSTAR visit: www.carstar.com.
Caliber Collision Centers announced on February 1 the opening of its 100th collision center. The acquisition of 101 Collision, a five-shop operation based in Southern California, put the MSO at 100 shops in California, Nevada, Arizona and Texas. Caliber acquired all of 101 Collision’s five California facilities, which are located in Westlake Village, Burbank, Oxnard, Santa Barbara and Simi Valley. “Today’s announcement is a Caliber Collision milestone with an acquisition that brings Caliber to 100 centers. This acquisition further cements our strategic expansion plans across core markets as we provide our insurance clients with the customer focus, cost management and operational consistency they require in today’s competitive insurance market,” said Steve Grimshaw, CEO of Caliber. “Partnering with Caliber Collision Centers provides our management team with unlimited growth opportunities across the Southern California coast through operational efficiencies and best practices that only a company like Caliber Collision Centers can provide in today’s marketplace,” said Edward Mohr, founder of 101 Collision.
AkzoNobel held a gathering of the Acoat North American Performance Group from Feb. 15-17 in San Diego, CA. The event was held at the Omni Hotel in the historic Gas Lamp District of San Diego. The focus of the meeting is to discuss the use of sustainable business solutions in the collision repair industry. Attendees were able to participate in classes designed to promote actions centered around sustainable business models. The meeting consisted of several Early Bird sessions lined up for February 15, including topics on Sustainability, Team Building, Cycle Time, e-Marketing and the economy. The meeting’s Keynote Speaker was Kristin Andress, co-author of the bestselling book Imagine Being in a Life You Love! On February 16, attendees could also participate in the Dine Around, where guests went to the zoo. The trip included an after hours trip to the zoo with dinner, drinks and a private tour. For more information, visit akzonobel.com/aac.
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CARSTAR Holds Results and Goals Teleconference
CARSTAR held their annual outlook teleconference on February 9; CEO of CARSTAR Auto Body Repair Experts, David Byers, detailed the 2011 results for the MSO as well as their goals for 2012. According to Byers, 2011 was a “very solid” year for the MSO; sales totaled over $600 million and exceeded the group’s objectives for the year. 2011 was also a big year for continued growth and acquisition of new locations, which will also continue to be an objective for 2012. “We have acquired 17 new locations in the last few months,” said Byers. CARSTAR plans on focusing on growth in California especially for 2012. Byers also said that the new stores that were acquired in 2011 were very successful—seeing 50 percent higher revenues than stores acquired in 2010. Byers also said that changes coming for 2012 will “set the stage for growth.” In 2012 CARSTAR plans to grow existing store revenues and profits, add new stores especially in California, add new MSO insurance relationships, and fully deploy CARSTAR solution, the group’s new management system in partnership with Mitchell. The MSO aims to add
Caliber Acquires 101 Collision, Reaches 100-Shop Milestone
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Arizona Considers Charging Electric Cars Per-Mile Tax Less than one month after Arizona repealed their Clean Cars law in favor of less-stringent federal emissions standards, Arizona is now considering charging electric vehicle drivers a pay-per-mile tax. As introduced by Rep. Steve Farley (D-AZ), Arizona House Bill 2257 aims to charge electric car owners up to 1.43 cents per mile traveled, according to Green Car Reports. Like similar taxes being proposed in Washington, Kansas and Oregon, the proposed Arizona tax would be the electric car equivalent of the tax currently levied on gasoline purchases statewide. Like state gasoline taxes, any funds accrued from the pay-per-mile tax would be spent on maintaining the state’s road network. “One of the only ways we pay for our roadways is through gas tax,” said Rep. Steve Farley, D-Tucson, to the Cronkite News. “If they’re not paying into the gas tax system, we need to find a way of closing that loophole and getting them to pay for the roads they use.”
Jim Stack, president of the Electric Auto Association’s Phoenix chapter, said drivers of electric vehicles are willing to pay their fair share in anticipation of electric vehicles’ future popularity. “Someday it’s all going to be hybrids and electric vehicles,” he said. “It wouldn’t do us any good if we didn’t have any roads.” Diane Brown, executive director of Arizona Public Interest Research Group, said she supports Farley’s proposal but noted that electric vehicles protect air quality and public health and doesn’t want to do anything to deter their usage. “Any policy that is accounting for electric vehicles should be incentivizing, not discouraging, their use,” she said.
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8 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
Next Glendale/Foothill CAA Meeting to be Held March 8
The Glendale/Foothill chapter of the California Autobody Association (CAA) will hold their monthly members meeting on March 8th at LKQ Corp. in Santa Fe Springs, CA. The meeting’s social hour will start at 6 p.m. and the speakers will start promptly at 7 p.m. The topic of March’s meeting will be total losses. The speaker will discuss why total losses happen and where they are headed in the future. “One of the very important issues in our Industry is Total Losses. They are affecting our Body Shops every day and taking away repairs from us. Not to mention most of the customers really don’t want their cars totaled,” said chapter President Linda Holcomb. Meeting attendees will also hear about the Recycled Rides Program. Many body shops across the country have participated in the NABC’s Recycled Rides program. The NABC plans to give away one car in every state in 2012. Attendees will also take a tour of the LKQ facility and get a one on one look at their business behind the scenes.
East Bay CAA Chapter to Host Motivational Speaker
The East Bay chapter of the California Autobody Association (CAA) will hold their monthly members meeting for March on March 20 at Scott’s Walnut Creek. The meeting will be a dinner meeting so please RSVP to Gigi Walker at 925-383-1816 no later than March 15. The cost for the event will be $40 for members and $60 for nonmembers. The meeting’s speaker will be Mike Robbins, a best-selling author and motivational speaker. Robbins is the author of two bestselling books, Focus on the Good Stuff and Be Yourself, Everyone Else is Already Taken. For more information about Mike please visit www.mike-robbins.com. Sponsors for this event are LKQ, Diamond Standard and Enterprise Rent-a-Car.
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PPG MVP Spring Conference Set for Phoenix March 25–27 PPG has announced it will hold its annual spring MVP Business Solutions Conference March 25-27, at the Pointe Hilton Tapatio Cliffs Resort at 11111 North 7th Street, Phoenix, Arizona. The conference has a notable lineup of well-known, motivational keynote speakers, relevant seminars, and interactive workshops all focused on aiding attendees in improving their collision center performance. The conference is structured to give participants exposure to fresh approaches for advancing their competitive capabilities. “We all need to be reenergized periodically,” said Jim Berkey, PPG, director, MVP Business Solutions. “We recognize our customers appreciate the opportunity to get away from their businesses and continue the learning process, not to mention having a great time at a great venue.” Two prominent keynote speakers highlight the conference agenda: Vince Poscente and Joe Calloway. Poscente, a New York Times best-selling author, business consult-
ant, and Olympic skier, will talk about how to get down to business and up to speed for a competitive advantage in “Big Goals in Short Order: Learning to Thrive in a More-Faster-Now World.” Poscente speaks from experience in a style that communicates, entertains, enlightens, and motivates. His approach to attaining extraordinary outcomes has one central idea— do what the competition is not willing to do. Calloway, also an author as well as a performance consultant, has been called “an expert on developing customer-focused teams” and “one of the most innovative and compelling people in customer service.” His topic, “Minds Wide Open,” is a dynamic session of thinking, working, and engaging with new ideas that will let attendees in on how market leaders think and create success. “At every conference we work to acquire a balance of perspectives from both inside and outside the collision industry,” Berkey added. “Our seminars and workshops cover topics that range from Repair Planning Detail to
the emerging effects of the Health Care Reform Act on a collision business.” Attendees can participate in informative and insightful seminars and workshops including Poscente’s “Down to Business, Up to Speed” for a humor-packed and energetic overview of what it takes to meet ambitious goals quickly. Other seminar and workshop topics include: “Discovery and Parts Procurement: The Key to X-Ray Repair Planning Excellence,” which considers the increased accuracy of X-Ray Repair Planning for improved repair flow, reduced waste, and improved profit potential; “Paint Shop Throughput: A Quick Changeover Approach,” which uses the Lean Approach to setup reduction and quick changeover to maximize booth cycles and throughput; “Delighting Customers for Life,” which shows how unprecedented levels of customer service can provide a true competitive advantage; and “Zeroing In on Standardization,” which focuses on what we are really trying to accomplish with the devel-
opment of standardized work. The conference will also give participants networking time with their colleagues in a number of social events that include a golf tournament, a tour of Desert Valley Auto Parts, and a gala dinner at the Pointe Hilton Tapatio Cliffs Resort’s mountaintop restaurant, Different Pointe of View, featuring breathtaking views of the valley’s desert landscape and the music of Nashville recording artists, the Stacy Mitchhart Band. The conference is open to owners and managers of collision centers using PPG Refinish products. Prospective attendees are encouraged to visit www.ppgmvp.com for complete conference information and registration details. Additional information about PPG MVP Business Solutions and future conferences may also be obtained by calling (866) 237-8178.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 9
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CIC Report
partners, may require shops to train their people on potentially nine different methodologies to order parts,” consultant Matt Ohrnstein of Symphony Advisors responded during the committee’s question-and-answer period. Ohrnstein suggested the committee could help communicate to industry constituents that, just as the banking industry settled on a standard way to transfer funds worldwide, this industry would be better served by standardized parts-related electronic commerce systems. CIC Parts and Materials Committee member Aaron Lofrano also reported in Palm Springs on his admittedly informal survey of more than 120 people in the industry asking how use of different types of parts benefit or hinder their business opAaron Lofrano eration on a daily basis in terms of job performance and profitability. Lofrano shared some representative comments from the various constituencies included in his survey. He said non-OEM parts vendors, for example, expressed concerns about the number of parts returned, and questions about whether those parts really did not fit as the shops returning the parts might indicate (often without providing any specific information about the problem with the parts). Such returns occur, Lofrano said he was told, even though other shops in the same markets return few if any parts. The parts vendors also expressed frustration with parts being returned without boxes or packaging. Following Lofrano’s presentation, Oregon shop owner Ron Reichen said he’d like to have more detailed information about the vendors’ reported parts returns rates. “We are repeatedly told by the carriers that it’s about 2 percent,” Reichen said, saying that doesn’t seem to match up with Lofrano’s assessment of what he heard from parts vendors.
Info Providers Discuss Data Sharing The “Big Three” estimating system providers offered some response at the recent Collision Industry Conference (CIC) to a joint statement by three re-
pairer groups earlier this year voicing concern about collection and use of shop data. In that statement, the Alliance of Automotive Service Providers (AASP), the Automotive Service Association, and the Society of Collision Repair Specialists, said shops wishing to use any of the estimating systems have no choice but to agree to allow their data to be aggregated and sold or reported to third-parties, potentially “in ways that may ultimately be detrimental to the (shop) who generated the data.” The estimating system providers pointed out the benefits to the industry of having aggregated data from which all shop-identifying information has been removed. Greg Horn of Mitchell International noted that the associations are among those who have at times requested such aggregated data, and that it can help shops understand how they performing relative to their market. Jack Rozint of CCC Information Services said his company takes every effort to ensure it isn’t releasing information that “could be used to the detriment of our customer.” He said, for example, that CCC would never share shops’ profitability data - such as gross margins on profit or labor that it has access to through clients using its shop management system, even if a shop gave its permission to do so. “Because we recognized that ‘permission’ in this industry is not always ‘permission’ (because) it’s sometimes (given) when someone has a program being held over them (and) if they don’t do it they aren’t going to get any more cars,” Rozint said. “So we walled off that data and said it’s not going anywhere from our system.” But Rozint said even if the system providers gave shops a way to opt-out of having their estimate data aggregated, little would change. “Most of the work in this industry is paid for by insurance companies,” he pointed out. “If the insurance companies want that data aggregated, they have access to it because they paid the claim, so it will be aggregated. The only data you could exclude as a shop if that permission existed would be customer-pay data.” EMS vs. BMS debate continues The discussion came during a CIC Data Privacy Committee panel discussion related to when the industry will shift to a newer technology stan-
10 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
dard for the transfer of a shop’s estimate data to third-parties. The associations have been among those calling for a shift by the information providers away from using the older “EMS” standard for transferring estimate data to using the newer “BMS” standard, in large part because BMS gives the shop more control over what aspects of the estimate data are shared. If a shop, for example, orders parts electronically, the parts vendor receiving the parts list via the Jack Rozint EMS file gets not only what parts are needed but information about the customer and his or her insurance. A rental car company also might be getting all this information even if all it really needs is information on when a customer’s car will be repaired and the rental returned. CCC’s Rozint and Rick Tuuri of Audatex said more fully implementing BMS will require significant development resources for the information providers. And Tuuri said even if a shop could export data using the BMS
standard right now, it would be a little bit like being the only one with a phone or fax machine in that you couldn’t use it unless the other party was prepared to communicate that way as well. “If there’s no one prepared to receive BMS and understand it, there’s not much impetus to develop it,” Tuuri said. But Fred Iantorno of the Collision Industry Electronic Commerce Association (CIECA) said EMS is built on technology introduced in the 1980s; most programmers working today, he said, aren’t even familiar with it. He said there’s been no resources spent on the EMS standard since its last release a decade ago. “So yes, you will have to spend money to move to BMS because you’re not spending any money today,” Iantorno told the information providers. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 11
Continued from Front Page
Parts Presentation
tion, a technology company offering an original equipment (OE) replacement parts solutions. OEConnection connects more than 32,000 North American buyers and sellers to handle roughly 6 million OE part transactions every month. CollisionLink is used by carmakers such as Ford, GM Nissan, VW, and Mazda, in addition to the aforementioned Honda and Acura. Turk stressed three notable things about his company’s program and distilled it down into a discussion that targeted the most important aspects: 1) CollisionLink online orders are faster and more accurate than other programs, contributing to fewer returns while significantly reducing phone time and improving cycle times. 2) You can use OE parts more than you think on Honda and Acura repairs, because they’re able to convert them more than 68% of the time. 3) By submitting a minimum of four estimates monthly into the CollisionLink for Honda repairs, shops can qualify for the manufacturer’s Colli-
sion Select Program, in which they can reap a wide range of value benefits. Some of these include participation in the carmaker’s online dealer locator; linking the member’s shop to a web page that gets 6,000 to 8,000 hits daily and the support of Honda’s dedicated national field staff, which includes offering in-shop training and other forms of business consulting and support. To qualify for this coveted program, body shops must also par-
More and more body shops are tapping into Honda’s Collision Select to access all of the added features of the exclusive program, Turk explained. “This Select program is a lot more than just price matching parts. We want to help your business on several levels and Collision Select has been designed by Honda to do exactly that. We offer marketing and an online presence and we make ourselves available all the time From left, Steve Sturken (Owner of Sturken Auto to assist and consult our body Body in San Jose) Shawn Saidi (Owner of Active shop members. The main ob- Auto Body in Mountain View) and Alex Ornelas, jective is to incorporate more (Parts Manager at Palo Alto Magnussen’s Toyota) OE parts into your repairs, are celebrating Saidi’s award commemorating his but that’s only the begin- role as the SC-CAA’s President in 2011. ning.” on all parts that qualify. Veteran Toyota Wholesale DeDe Loera gave a quick tutorial on velopment Consultant Ruben De how to use Toyota’s PartsBridge by Loera then spoke to the SC-CAA taking the submission process through From left, 2012 SC-CAA President Randy Greenblatt membership about Auto Parts- an easy-to-understand step-by-step with David Mello (Owner Anderson Behel Body Bridge, Toyota’s electronic parts explanation. It’s as simple as: 1) Shop in Santa Clara) and Miguel Espana (Owner of Espana’s Body Shop in San Jose), celebrating ordering system that enables body Logon 2) Process Order 3) Validate 4) Mello’s Member of the Year award presented by the shops to tailor its parts ordering Create a Quote and 5) Complete order. CAA. process while easily incorporatHe also briefly instructed them ticipate in one of the big five paint ing more OE parts into their Toyota on how to get credit for ordering afprograms, offered by BASF, PPG, repairs. Launched three years ago, termarket parts with their insurance Sherwin-Williams, Sikkens Acoat or PartsBridge contains 7,600 parts in its companies that require a certain perDuPont, Turk outlined. system with a conversion rate of 70% centage of aftermarket parts in their
12 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
repairs. “It’s essentially a line in the estimate that notes the fact that OE parts were used, even though they can qualify for aftermarket parts pricewise through our program,” De Loera
market parts. “We will always try to get you better pricing whenever we can, so that you know where you stand and make your own educated decisions,” De Lorea said. Both speakers wanted to stress the fact that both programs cost body shops absolutely nothing. “The dealerships pay the freight, so why not give it a try if you haven’t already signed up?” De Lorea said. “Toyota goes the extra mile to help its shop customers Chilton’s Auto Body was well-represented at the and this is a prime example of SC-CAA meeting. From left, San Carlos location those efforts.” Manager James Burbank; Owner Mike Chilton and Upcoming events for the SCBurlingame Manager Bobby Carter were on hand. CAA chapter were announced at explained. “Each platform has a dif- the meeting. On April 18, CAA will ferent entry area for this function, but once again hold a Legislative Day in all are contained within a com- Sacramento and the chapter’s next ments/notes section. Once you can meeting will be held in San Jose on identify it, the rest is easy.” April 25. The chapter also announced De Loera said that with certain that they will once again be hosting their types of crash parts, such as front Industry Trade Faire, with a date to be bumpers and rear tail lights, Toyota is determined and slated for the summer. very competitive and can customarily match the aftermarket on those types of parts. With parts like air conditioning condensers, radiators, wheels, doors, hoods and fender liners, it is a www.autobodynews.com little more difficult to match the afterC
Val-Test Distributor Show Announces New Product Winners
The annual Val-Test Distributor Show and Meeting was held January 20–23, 2012 at The Naples Beach Hotel & Golf Club in Naples, Florida. Celebrating their 50th Anniversary, Val-Test is one of the nation’s leading buying and marketing group for distributors of hardware, sundries, and marine products.
(l to r): Heather Mingo and Shawn Orr accept the award for Sundry winner on behalf of Preval’s vFan Airbrush, while Matt Heiny (r) accepts for Shop-vac’s Toolmate
Vendors in attendance had the opportunity to spotlight their newest and most innovative products. The New Products were separated into two categories, hardware and sundries, and were on display for review and ballot vote by Val-Test members during the three-day extravaganza. This year’s Sundry winner is Preval for vFan Airbrush, the only device on the market that converts to an air gun and achieves both 3-inch fan and 1/16-inch
hairline spray patterns for detail. Amazingly portable, vFan can be used in all environments when powered by 150 feet of energy, Preval’s innovative, eco-friendly aerosol compressor unit containing 7 ounces of VOC-exempt propellant that powers more than 150 feet of linear paint coverage and up to 40 square feet of paint coverage per unit. The vFan Airbrush is also compatible with most workshop compressors. This product was represented by Sales Representatives Shawn Orr and Heather Mingo (877.753.0021). Visit their Web site for more information: www.preval.com. The winner for the Hardware, Plumbing, and Electrical Division went to ShopVac for Toolmate, a full size toolbox with detachable 2.5 gallon, 2.5 Peak HP wet/dry vac. The tool box includes removable tray with storage dividers, heavy duty aluminum handle and buckles. All vac accessories conveniently store inside the toolbox lid, including the supplied filter. This product was represented by Matt Heiney, Senior National Accounts Manager (570.321.7204). For more information: www.shopvac.com.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 13
Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com. To read all his columns go to http://www.autobodynews.com/columnists/williams-larry.html
Jerry Ulm Dodge Chrysler Jeep, a Truly Distinctive Florida Dealer with Larry Williams
When I think of a manufacturer who has had hard times over and over, and has still survived, the first name on my list is Chrysler. Of course we know that Chrysler is back from the brink. I would expect these dealers to be hardened, efficient and frugal, but I wasn’t expecting to be surprised.
However, I was very pleasantly surprised to encounter Jerry Ulm Dodge Chrysler Jeep of Tampa, Florida. This dealer is not only a survivor; they are the largest auto parts wholesaler I have ever interviewed. This is a long term family operation, with roots deep in the community. Jerry Ulm is the son of the original owner, and knows parts and service as well as sales. Rob Brenneke, the fixed operations manager, has been there for fifteen years. Their dealership philosophy is total service to their customers, and the service department will work on any vehicles their customers own. This dealer has earned the Chrysler Dealer of the Year award twice; and probably will again. This parts department services its customers to the tune of about a hundred thousand dollars in business every day! This is a major operation, requiring forty-five employees in two
buildings, and two managers. Their level of volume requires eighteen drivers, six days a week. But that’s not all; they also use an outside delivery service to take parts to their customers—not just in Florida, but also in Georgia, Alabama, and South Carolina.
I talked to Joe Galbraith, one of the two managers at Jerry Ulm. He told me that the secret to their success was in a word: service. This dealer provides a level of service to their customer that is amazing! They will provide parts not just for Chrysler, Dodge and Jeep, but for any vehicle, from any manufacturer. They want their customers to have one-stop shopping, and will pick up and deliver any required part, no matter what it is or where it is. Countermen use email and ALLDATA systems to order parts. Their drivers will stop at other dealers on their way back after deliveries, and pick up orders to be dispatched on the next run. I have heard of dealers providing this type of service before, but never on this large of a scale.
Fiat’s ownership of Chrysler has helped this dealer, too. The new line of Magneti Marelli parts services all manufacturers and all vehicles. This enables Joe to use his overnight ordering service and provide almost any part on a next day basis. But no matter how good the support might be, the strength of a dealership is the people on the front line, and the leadership of its managers. The dedication to provide service; and to retain customers is key to their success. This parts department staff has over 150 years of combined experience! The wholesale manager is Robert Springer, his countermen are Joe Lanzetti, Brian Garry, George Mowry, Jay Springer, Aaron Springer, and Eddie Chiovetti. The manager on the retail side is Joe Galbraith, and his countermen are John Piparo, Scott Brenneke, Adam Brenneke, Joe Scholtz, and Bill Usewick. Joe talked to me about his countermen, their loyalty to their long term customers, and the value of their rela-
14 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
tionships. He describes them as multitalented, and well-rounded. They always want to do better, and do more. They know how important it is to be honest and up front, in order to maintain the trust of their customers. Obviously this dealer is not a secret in the Tampa area, anyone with this kind of volume would be well known. This kind of success in the parts aftermarket business, however, is not common. It is the result of longterm dedication and hard work; and takes years in the making. I would like to point out to those of you in the parts business the value of the wholesale market. To those of you who have the desire, and the determination to be successful; and to grow your wholesale market, there is no limit to the success you can achieve. Jerry Ulm is an inspiration to all dealers. All you need is a desire to provide the best service avail-
able, and everything else will follow. Jerry Ulm Dodge Chrysler Jeep is truly a Distinctive Dealer, and an example of what hard work and dedication to service can achieve.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 15
Shop Showcase with Erica Schroeder
Erica Schroeder is assistant editor at Autobody News in Carlsbad, CA. She loves to talk with owners about their shops and goings on in their areas. Contact her at eschroeder@autobodynews.com, or 800-699-8251
FCC Collision Continues Expansion in the Greater San Francisco Area FCC Collision Centers, a multi-shop operation with three locations in Mountain View, Milpitas and Sunnyvale, CA,
FCC Collision Centers’ owners Matt, Adam and Jason Piper
started in 1975 when Adam Piper decided to start his own business. A repairman at the time, he purchased the locations in Milpitas and Mountain View and ran those until 1996. Then he decided to sell both of those locations to now-infamous group called M2 Collision Care Center, while maintaining ownership of the buildings the businesses were in.
The crew at the FCC Milpitas location
Then in 2005 M2 went bankrupt and since his two sons, Matt and Jason, were working at other collision repair centers in the area, Adam asked them if they’d go into partnership with him on the two stores. Now Matt currently manages the Mountain View location and Jason manages the Milpitas location; they both manage the new Sunnyvale location. “We worked really hard the first couple of years to build the businesses back up,” said Jason. M2 had burned some bridges in the industry before going out of business and the buildings also needed some repair, so the trio worked hard for the first few years to get the business to where it is now. During the economic recession in
2008 and 2009 the Pipers had to ride the slow economic wave just like the rest of the industry. According to Jason, one thing set their businesses apart from the rest during this time, “We push hard during the slow times to reinvent our business.” During the recession the group reinvented their marketing strategy, improved their operations and upped their training to get ready for the economic rebound. It paid off—the businesses have seen a 15 to 20 percent growth in the past few years and have added several new DRPs. Then, four months ago, the Pipers decided to buy a third location in Sunnyvale. They are currently working to get more DRPs as well as improving the building and image of that location. The Pipers hope to grow FCC to 4 or 5 locations within the next few years and see continued growth of locations as the best way to stay competitive. Industry consolidation is a major reason why FCC intends to stay competitive in the industry with their continued growth. “The market is fertile for consolidation right now,” said Jason. The Pipers are currently looking for a fourth location, but it’s got to be the right location. Ultimately the Pipers want their locations to complement each other, since the current three locations service adjacent communities. “One thing you can’t be in this industry is stagnant,” said Jason. Across all locations FCC currently has 40 employees, sees about 250 cars per month and grosses nearly $7 million annually. Mountain View is the largest location with 22,000 square-feet, then Milpitas with 16,000 and Sunnyvale with 8,000. The family trio works together well and has common goals when it comes to the businesses. Matt handles much of the training, production flow, estimate accuracy functions and daily management; Jason handles the accounting, HR, IT and daily management; and Adam handles the business development, marketing, industry relations and
16 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
“old guy” stuff, according to Jason. All three shops are equipped with state-of-the-art auto body repair equipment including Chief EZ-Liner Frame Machines and Velocity Computerized Measuring Systems. Each
structural repairs to ensure strict adherence to standards. This ‘tool’ allows us to provide the best, safest repair for our customers,” said Matt Piper. All three locations are I-CAR Gold certified. Management requires that all personnel enroll in any workshops or classes offered by original auto manufacturers or auto paint companies. The businesses are all currently in a direct repair partnership with several large insurers. They also do paintless dent removal, wheel alignment, glass replacement, detailing and glass tinting, towing and rental cars. Adam Piper has been very active FCC’s newest location in Sunnyvale, CA throughout the industry in his career; shop is also equipped with modern including sitting on the Board of Didowndraft SprayBake spray booths, rectors of the Santa Clara Chapter of and uses only Dupont paint. the California Auto Body Association All three shops are currently in since 1983, serving as Santa Clara contract with VeriFacts, who analyzes, Chapter President five times and servevaluates, trains and reviews ongoing ing as Committee Co-Chair of the work on a monthly basis. VeriFacts asDefinitions Committee for the Collisures that technicians maintain the sion Industry Conference in 1994–97. highest quality work through verificaFCC maintains membership in the tion and authentication of repairs acCalifornia Auto Body Association, the cording to industry standards and Society of Collision Repair Specialoriginal manufacturers’ guidelines, ists, the National Federation of Indesays Jason. All three owners feel that pendent Businesses and the Better Business Bureau. “We aspire to always provide our customers with a service and ownership experience that consistently satisfies their needs and exceeds their expectations,” said Adam Piper. The company’s logo is FCC’s first location opened in 1975 in Mountain View, CA “Quality, Service and Detheir contract with VeriFacts helps pendability.” them to maintain integrity in their reFor more information please visit pairs. www.fcc-collision.com. “Using VeriFacts is a big part of who we are. We’re always raising the FCC Mountain View bar on quality by following the most 177 East Evelyn Ave. recent OEM standards,” added Jason. Mountain View, CA 94040 FCC has archived the highest (650) 965-1440 level within the VeriFacts program: Medallion status. This attainment only FCC Milpitas occurs after a history of verified certi1416 S Main St. fication, training, equipment, quality Milpitas, CA 95035 and adherence to OEM standards has (408) 263-9999 been established. FCC is one of only a handful of shops that have attained FCC Sunnyvale this status across the US. 904 E. Arques Ave. “FCC utilizes ALLDATA and reSunnyvale, CA 94085 searches OEM specifications on all (408) 400-2440
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 17
BodyShopBids Expands to Offer Online and Mobile Auto Repair Estimates in California BodyShopBids, an online and mobile platform that enables consumers to solicit custom auto repair estimates by uploading a photo, announced February 21 its expansion to the state of California. Accessible for free via iPhone, Android and the Web, BodyShopBids connects consumers who need auto body repairs with body shops through a unique bidding system. Consumers upload a photo of their damaged vehicle and receive several custom quotes from nearby body shops within 24 hours. From there, the consumer can select an estimate and book an appointment with the body shop. Continued from Front Page
NORTHEAST
miles where you can get education and information along with so much new equipment and products that specifically deal with our industry,” AASP/NJ President Jeff McDowell said. “I’ve been saying it for 35 years and God willing, I’ll be saying it for another 35. If you’re in the automotive repair industry, you need to be at NORTHEAST™.” The association has named Auto Body Distributing Co. at booth # 400/402/404, Ikotec USA at booth # 226, Team PRP NorthEast (PRP-NE) at booth # 211, and Toyota of Morristown at booth # 301-303 as their must see exhibitors this year. “At this point, I think we have only a few booths left,” McDowell adds. “It looks like a lot of companies are making an effort to reach the huge marketplace we have in the tri- state area. That’s another thing that makes NORTHEAST™ 2012 unique. It’s the kind of show you can drive to, get some training and see all the latest gear. No need to for plane rides or traveling across the country. It’s all in your backyard.” For more information on NORTHEAST™ and AASP/NJ, please visit www.aaspnjnortheast.com.
The west coast move comes weeks after the company announced its expansion to the Pacific Northwest. The BodyShopBids network will initially focus on California’s major metro areas, including Los Angeles, San Francisco, San Diego, Sacramento, Oakland and Anaheim. “The response from body shop owners across the country has been outstanding,” said Brad Weisberg, founder and CEO of BodyShopBids. “Body shops are recognizing that this technology fills a void in the industry, and that consumers are demanding information in ways that have never before been possible.”
BodyShopBids is also evaluating other viable markets for its service, including Florida and parts of the southeast United States. “We’ve had shop owners from all over the U.S. reach out to us about joining the BodyShopBids network,” said Weisberg. “They want to bring in new business and make it repeat business, which is where BodyShopBids delivers.” Body shop owners who wish to join the network can sign up by visiting BodyShopBids’ Web page for shop owners. For consumers, the BodyShopBids smartphone app is available for download on both iPhone and Android devices.
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18 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
NJ Shop Questions State Farm’s Denial of Cost Accounting Based Paint Allowances In a letter to State Farm CEO Edward Rust Jr., Don Harvey, of International Collision Service in Englewood, NJ, questions why State Farm does not acknowledge cost accounting programs and practices in setting paint allowance rates. Harvey has previously contacted senior State Farm management to no avail. His letter follows: Feb 15, 2012
State Farm Insurance Co. Mr. Edward B. Rust Jr. One State Farm Plaza Bloomington, IL 61710 Dear Mr. Rust,
Please take a moment to look at an issue regarding customer satisfaction and a “Good Neighbor” responsible commitment to proper repairs. Paint material has been an issue often questioned and not properly acknowledged. Several years ago the Department [of Banking and] Insurance
Commissioner Steven M. Goldman issued a Bulletin #07-20 (copy enclosed for your review) encouraging insurers to utilize paint cost accounting software programs and manuals. Just after the issuance of this bulletin, State Farm (Northern NJ) changed their paint calculation from a multiplier of $23.00 per paint hour to $28.00 per paint hour. That was November 2007. Since that time, as we all know, all oil-derived product prices have dramatically increased, however State Farm has not acknowledged (NJ office: Mr. Charlie Holmes) any legitimate paint cost programs or software, holding [instead] to their antiquated $28.00 per hour calculation with no deviation. Automotive paints used on today’s advanced vehicles require many different tints to achieve the look and appearance duplicating the original finish. Therefore all pricing cannot be properly and FAIRLY determined by one multiplier, this is why the paint cost accounting software programs are so important: FAIRLY compensating the repairer
for materials used on the specific vehicle (color) being repaired. Mr. Holmes has repeatedly stated that State Farm holds true to their survey studies. What is interesting about that is twofold: 1) State Farm (northern NJ) hasn’t sent anyone out to survey the shops in many, many years, leaving it to the shops to call State Farm and get an authorization # before being able to even get to the survey. 2) I find it interesting that if State Farm only uses their survey to change rates and materials, why after a short time and no apparent survey, did the multiplier change in late 2007 after the Bulletin issued by the State of New Jersey, from $23.00 per hour to the current rate of $28.00 per hour? Most insurance companies are acknowledging the cost accounting software programs plus a mark-up as the programs use an average COST to the repair from the suppliers. In closing I hope that you will review this letter and change the way State Farm, NJ, is conducting business and [have] The Good Neighbor
do the right thing, properly and fairly returning vehicles to pre-accident condition. Respectfully,
Don W. Harvey International Collision Service Englewood, NJ, 07631
(Copy of Mitchell Refinishing Calculator Notes enclosed for your review.) To see additional attachments: NJ DOI Bullentin #07-20 and the Mitchell Refinishing Calculator Notes, search the article title at autobodynews.com. If you have any relevant information submit it to Don Harvey at dwharvey@1ics-usa.com, or write: Don W. Harvey international collision service 328 South Van Brunt St. Englewood, NJ 07631 Phone: 201.567.2124 Fax: 201.567.6644
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 19
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Getting a Guess-timate From the Real Experts with The Insurance Insider
Before you can begin repairing a vehicle, you need an estimate. It’s the easiest part of this whole deal, right? You have a computerized estimating system that allows you to accurately document everything that is needed to fix the car. Some say it’s so easy that you can do it remotely by merely looking at a picture. Now that does sound easy! Almost as easy as going fishing with the “Pocket Fisherman.” Ah, the memories. For those not old enough to remember, every man in the world wanted one of those little babies nestled in their glove box. Why do I reference the inspirational and ageless Ron Popeil and his company, Ronco? It has nothing to do with getting a sales commission. I mention him because he made the impossible seem possible. The trivial and difficult became simplified and logical. I believe that repairers and insurers view estimating through the neverinvented “Ronco Goggles.” (Sorry for another pathetic Popeil reference. If you can’t tell, I’m a big fan and proud owner of an original Pocket Fisherman and Mr. Microphone.) If estimating is so easy why is it the most misguided, challenged and subjective part of the process? There is an easy answer: It’s not really that easy. Repairers and insurers argue all the time about the estimating process. I’ve heard repairers say, “The cost to repair the car is the cost to repair the car. Insurance companies are just trying to write a low-dollar estimate. Let the experts write the estimates and repair the vehicle.” Does that sound familiar to anyone? It should. Estimating is best defined by the actual root of the word: estimate. No matter what any expert tells me, estimating isn’t an exact science. In fact, if it was an exact science it would be called a repair bill, not an “estimate.” Look at the cartoon with this article and tell me which one of the estimators is right. If you said, “All of them,” or “None of them,” you would be today’s lucky winner of a Popeil Pasta Maker. (Note to self: Add Pasta
Maker to this year’s Christmas wish list.) I hope this doesn’t insult anyone who makes their living writing estimates. My intent is to illustrate that any one of them could be right. The monkey was willing to do it for three bananas; does that make him wrong? To nobody’s surprise and to the delight of stockholders everywhere, the insurance company wrote the lowest estimate. If I were put on the stand, I could defend this estimate. It is a visual damage estimate without any tear-down. Does it make the insurance company wrong if there is additional damage behind some of those parts? That’s why it’s called an “estimate,” complete with a disclaimer at the bottom. I know that this article will result in some hate mail, but the fact is that it’s not an exact science and it’s wrong to say “the damage is the damage.” If that was the case, why does it cost more to have vehicles fixed at one shop compared to another one that’s a block away with the same labor rate? It is subject to opinion, experience, tear-down and a hundred other factors including whether or not it was raining out or 20 degrees below zero at the time of the estimate. By the way, those “other factors” apply to both repairers and insurers. I’m sure estimate accuracy at 4:45 p.m. on a Friday compared to 11 a.m. on Tuesday is worthy of another arti-
20 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
cle on Insurance Company Estimating 101. Here’s a good recipe to produce an accurate, consistent estimate. It should include a visual inspection, a
lift, tear-down, a thorough washing of the exterior of the vehicle, ample time, 3-dimensional measuring equipment, a preliminary pull if needed, updated estimating software, a live competitive parts database, an experienced flexible estimator, use of best-case repair scenarios, 75 degree sunny weather with no clouds, and of course 20/20 vision. If you were to have all of those things, you are guaranteed to get an estimate that gets you closer than the guess-estimate. So please stop using the term, “The damage is the damage.” If that was the case, don’t you think that Ron Popeil would have already simplified our estimating lives?
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
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On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Spotting a Newsworthy Opportunity with Thomas Franklin
This has been a year of extreme weather. Recently, fierce winds blew down hundreds of trees in one area I’m familiar with. Many of those trees damaged vehicles parked on the street or in driveways and those damaged vehicles wound up in a local collision center to be repaired. Those local shop owners obviously were pleased to get the business, but only one that I know of took the time to get some photos and get the story to a local newspaper to get the name of their shop in print. Perhaps if they had acted a bit faster, they could also have gotten their shop featured along with some of the TV news coverage of the wind damage, but any coverage is better than none. To take full advantage of a situation like this requires a real nose for news. Most shop owners are too busy taking care of business to constantly ask, “Is something happening that might get us free publicity and our name and picture in the news?” The amazing thing is every shop owner, manager or estimator is presented with potential news stories most every day. Many vehicle owners who bring a crashed vehicle in for repair have a story to tell. And many of those stories are bizarre and often funny. If the customer is willing to have the story told— and better yet if he or she has some photos—there could be some great material to pass along to the evening news or the morning paper.
People are especially interested in circumstances affecting pet animals or small children. For example, more than a million dogs are killed in car crashes every year. Many of these animals have been greatly loved by the driver or a family member. This could be a newsworthy story — especially if it was the pet of a small child. The important thing for a representative of the shop to keep in mind is to not give the impression that this is an attempt to exploit a sad situation. Unless the story is funny and the vehicle owner is laughing about it too, a sad story has to have a positive appeal. If a pet is injured or killed, a story could appeal to viewers or readers to take greater pains to have a proper pet restraint in the vehicle. The same appeal could be made if a child is injured or killed and the seat belt or restraint was not being properly used. The story then has a public service message, but it can also reveal the name and concern of the shop and its owner. A similar message could have value if the driver fell asleep at the wheel. Drowsy driving accounts for about 4 percent of all fatal crashes in the United States, or roughly 1,500 deaths each year. Researchers at the U.C., San Diego School of Medicine say that each year, potentially 980 lives could be saved and $11.1 billion in automobile-accident costs could be avoided if drivers who suffer from a disorder called obstructive sleep apnea
NHTSA Opened Ford and GM Van Investigations in January The NHTSA opened separate investigations into vans made by GM and Ford in January. GM is recalling some 2012 Express and GMC Savana vehicles made from June 2, 2011, through October 17, 2011. The second stage of the dual-stage air bag will not inflate in a severe frontal impact. The air bags fail to conform to the requirements of federal motor vehicle safety no. 208, “occupant crash protection.” Another GM investigation involves about 17,000 2003 Chevrolet Express vans with a door behind the driver’s side. On these vans, the fuel-
filler pipe is routed differently, going through the rear wheel well, which the agency said apparently exposed it to road debris and spray. The normal configuration for these vans is with side door behind the front passenger. The Ford investigation involves about 63,000 2004 Ford Freestar and Mercury Monterey minivans. The agency said it had seven complaints from owners who said the rear-wheel wells rusted so badly that in several cases the anchor mounts for the third-row seat belts “completely detached from the vehicle.”
22 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
were successfully treated. Half of the nation’s adults (51%) admit to driving while drowsy, reports the National Sleep Foundation (NSF). Among 18 to 29 year olds, nearly one-quarter report actually falling asleep at the wheel at some point during the past year, compared with 15% of those aged 30-64, and 6% of people 65 and older. There are about 5,000 fatal accidents a year involving big trucks, but there is no good way to know how many are due to truck-driver fatigue. “Driving while drowsy is no different than driving under the influence of alcohol or drugs,” says Richard Gelula, NSF’s Executive Director. “When you’re sleepy, your brain starts to shut down,” “But even before you actually nod off, performance slips.” Trying harder to stay awake may not help. Your thinking slows, you miss signals and risk-taking behavior increases. At 60 mph, if you close your
eyes for only one second, you’ve traveled 88 feet. Will a driver who crashed as a result of falling asleep be willing to reveal that? And if so, would he or she be willing to have that story publicized, even to provide a positive public service message? Possibly not, but it can never hurt to ask, and if the driver is willing, this could be a great story featuring the shop in a positive light. While these public service message stories may have the greatest value, the ones that are bizarre and often funny will be easier to get an agreement to publish. The driver who swerved and crashed to avoid hitting an armadillo that escaped from the zoo, or the homeowner who dropped a bucket of paint on his car while painting his house may be most willing to share in the laugh. The astute shop owner who thinks to pass these stories along to the press could enjoy an excellent bit of free publicity.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 23
Separate Arizona Bills: HB 2394 “Strikes Everything” on Unlawful Practices Language for Repair Shops; SB 1134 Requires Changes to Handling of Unearned Premiums by Insurers A proposed bill that would have changed the way collision repair shops in Arizona do business has been held over to the next legislative session. House Bill 2394, introduced by state Rep. Nancy McLain (R-3) in the Arizona House of Representatives, would have had a negative impact on auto body shops throughout the state with the original text. The bill used to read (key language in bold): It is an unlawful practice for a person who repairs motor vehicles to knowingly: Submit a false claim to an insurer for motor vehicle repair. Submit a claim to an insurer for fees not directly related to the repair of the motor vehicle unless required by law. All fees not required by law must be posted by the motor vehicle repair facility. The motor vehicle owner or lessee must acknowledge in writing that any fees that are not directly related to the repair of the motor vehicle or required by law may be the owner’s or lessee’s responsibility.
Submit a claim to an insurer for storage fees incurred up to the time the motor vehicle was determined to be a total loss if the motor vehicle repair facility was paid by the insurer for tear down or repair services. Storage fees may accrue from the date the insurer determined the motor vehicle to be a total loss. Supporters of the language sought to stop shops from charging storage fees at the same time collision shops were being paid for teardown to complete an estimate. This bill would have forced shops, in many situations, to absorb the costs associated with vehicle storage or bill it to the vehicle owner. The harmful language is not included in the current bill being considered. ASA-Arizona opposed the bill with the unlawful practices language. ASA alerted member shops about the proposed language and worked with the legislature to ensure the bill did not move through the legislative process as introduced. H.B. 2394
passed the House Committee on Banking and Insurance as a “Strike Everything” amended bill. A “strike everything” amendment (also called a “striker”) proposes to delete the entire text of the existing bill and substitute new language, essentially making it a completely different bill. ASA supports legislation that protects the consumer’s right to be fully indemnified under the terms of their insurance policy and is opposed to any type of fraud whether it is initiated by a repair shop or an insurer. The vehicle owner has a right to know all charges that he or she may be responsible for in the repair process. ASA believed the proposed legislation overreached, harming both consumers and repairers. Arizona repairers are encouraged to join ASA’s effort to ensure their voice is heard at the state capital and in Washington, D.C. Unearned Premiums Language When insurance policies are cancelled
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before the end of the policy period, several types of premiums are calculated. An earned premium is that portion of the policy period that the insurance has been in effect, and during which the insurer has been exposed to liability or loss. An unearned premium is the portion of the overall premium which is no longer due to the insurer. It is the written premium minus the earned premium. The unearned premium is to be returned to the insured, if the policy is canceled, using a pro rata cancellation method when the policy is cancelled with no penalty. Arizona’s SB 1134 has amended the unearned premium language in the statute to specify terms of refunds of unearned premiums: “the insurer shall either mail the notice and refund of unearned premium together at least ten days before the effective date or mail the notice before the refund of unearned premium if both the notice and the refund of unearned premium are mailed separately to the insured at least ten days before the effective date.”
THE CARCOON WORKSTATION
Several Crash Parts Bills Introduced to State Legislatures Countrywide Several crash parts bills have been introduced in state legislatures across the U.S. Crash parts bills have been introduced in Oklahoma, Hawaii, Massachusetts, New York, South Carolina, North Carolina and Washington. The ASA says two state bills are of particular importance for independent repairers. Oklahoma Senate Bill 1458 calls for consumer notice and consent language, and adds new policy provisions including “emissions part” and “safety part.” “Emissions part,” the ASA notes, requires the replacement of parts or systems related to the control, monitoring and release of waste gases and particles created as a byproduct of combustion. Those parts include oxygen sensors, catalytic converters, exhaust pipes, exhaust manifold, fuel distributor, electronic emissions control unit, onboard emissions diagnostic device (OBD), and related parts and components. “Safety part” requires the replacement of parts or systems essential to vehicle operation. Those parts include suspension, electronic control
units (ECU), brake parts, safety systems and supplemental restraint system (SRS) components, according to the ASA. In addition, Hawaii Senate Bill 2326 amends the state’s current law by removing provisions requiring claimants to pay additional costs for the use of original equipment manufacturer (OEM) parts. It also requires insurers to make available the use of certain used or aftermarket parts instead of “like kind and quality” parts in motor vehicle body repairs. The legislation reads as follows: “Original equipment manufacturers and like kind and quality parts; used or aftermarket parts: (a) An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a like kind and quality used or aftermarket part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work. If the insured or claimant chooses the use of an original equipment manu-
facturer part, the insured or claimant shall pay the additional cost of the original equipment manufacturer part that is in excess of the equivalent like kind and quality used or aftermarket part, unless the vehicle is currently under the manufacturer’s warranty or original equipment parts are required by the vehicle manufacturer’s warranty.” (b) A [like kind and quality] used or aftermarket part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the [like kind and quality] used or aftermarket part for not less than [ninety days or for] the same guarantee period as the original equipment manufacturer part, [whichever is longer]. The guarantee shall be provided by the insurer. (c) [Like kind and quality] Used or aftermarket parts, certified or approved by governmental or industry organizations, shall be utilized if available. At its fall board meeting, ASA approved a new crash parts policy to
reflect the collision marketplace changes occurring in the past few years. ASA’s new crash parts policy states: “ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types including, but not limited to, original equipment manufacturer, aftermarket, recycled, remanufactured, reconditioned and rebuilt crash parts. ASA supports quality parts, certified and verified in which the quality is determined based on empirical and measurable evidence equal to the standards of OEM parts. ASA recommends quality verification and testing related to metallurgy, fit, functionality and responsiveness. ASA believes a competitive parts marketplace, of tested and verified quality parts, is in the best interest of the motoring public. ASA continues to oppose parts policies that focus solely on efficiency without regard to certification, verifiable quality and safety.”
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 25
Continued from Front Page
PARTS Bill
such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured; and after the expiration of a period of 30 months beginning on the first day on which any such component part is first offered to the public for sale as part of a motor vehicle in any country, it shall not be an act of infringement of such design patent to use or sell within the United States any article of manufacture that is similar or the same in appearance to the component part that is claimed in such design patent if the purpose of such article of manufacture is for the repair of a motor vehicle so as to restore such vehicle to its appearance as originally manufactured.” “Competition is the hallmark of our free market system,” Issa said. “Consumers have dozens of choices in electronics, food, service, clothing and other products – this same array of choices, across all price points, should also extend to automotive repair parts.” Major aftermarket distributors and the Quality Parts Coalition have a vested interest in being able to manufacture and import aftermarket parts, however collision repairers in general should be leary of increasing the controversy over the quality of replacement parts specified on insurance estimates. Proponents of the bill note
that car manufacturers currently control 72 percent of the repair parts market and have been steadily increasing the use of design patents. Competition is reduced and consumers end up paying more than necessary for parts they say. Because of these elevated costs, insurers will sometimes consider vehicles totals instead of paying for repairs. The result is that consumers are forced to replace a repairable vehicle with a different car, an expense the QPC argues can be avoided if the PARTS Act becomes law. The bill has also received the support of the American Insurance Association a property-casualty insurance trade organization that represents nearly 300 insurers. Noted Melissa Shelk, AIA vice president for federal
affairs, “Consumers deserve access to high-quality alternative replacement parts. Increased competition means decreased prices and greater choice for consumers.” The AIA says that “quality” replacement parts for such collision parts including bumpers, fenders and hoods can cost consumers approximately 26 to 50 percent less. Insurance savings can be realized when consumers choose these alternative parts, but only if such parts are available. Shelk says that consumers pay an extra $1.5 billion annually because of the current patent restrictions on replacement collision parts. Not surprisingly, OEMs oppose this limitation on their design patents. In the past, groups opposing similar
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legislation have said that “copycat” parts are harmful to OEMs and consumers alike. At a March 16, 2010 hearing in front of the House Judiciary committee, Damian Porcari, attorney and director, Enforcement and Licensing, Ford Global Technologies, said, “The copyists want to eliminate design patent protection because that’s what they make. As soon as their business model includes engines, brakes and air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” See next article p. 27 for full text of Porciari’s 2010 testimony.
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Toyo Tire U.S.A. Corp. released a recall notice on January 31 for nearly 69,000 tires because of a possible kink near the rim area that could cause a crack and lead to tire failure. A statement released by the company says the recall involves the Toyo Extensa A/S tires that were manufactured at the Toyo Tires plant in Georgia and have a “Made in U.S.A.” mark on the sidewall, according to Insurance Journal. The faulty tires all have the last four digits ranging from 3809 to 4410 as the tire’s identification number. If the tire has the “Made in Japan” or “Made in China” mark on the sidewall, they are not part of this recall. The company will replace the recalled tires at no charge if returned on or before May 31.
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The 2010 Pro-Con Argument For Patent Protection of Collision Parts On March 16, 2010, the House Judiciary Committee heard Testimony on Replacement Parts Bill HR 3059, sponsored by California House Democrat Zoe Lofgren, and previously as SB 1368 by Rhode Island Democrat Sheldon Whitehouse. The 111th Congress (2009– 2010) considered HR 3059 (The Access to Repair Parts Act) to amend title 35 of the United States Code to “make it not an act of infringement of any design patent to make, use, offer to sell, sell, or import into the United States any article that is a component part of another article, if the sole purpose of the component part is for the repair of the article of which it is a part so as to restore its original appearance.” The bill never became law in the 111th Congressional term but has essentially been reintroduced in the current term as H.R. 3889 (see cover story).
Witnesses at the 2010 hearing included: • Jack Gillis, director of Public Affairs, Consumer Federation of America (CFA), Washington, D.C., testified for the bill. • Damian Porcari, director, Enforcement and Licensing, Ford Global Technologies, LLC, Dearborn, Mich, testified against the bill. • Robert C. Passmore, senior director, Personal Lines, Property Casualty Insurers Association of America, Des Plaines, Ill. testified for the bill. • Perry J. Saidman, principal, Saidman Design Law Group, Silver Spring, Md. testified against the bill. Lofgren opened the hearing by stating the purpose for her bill—to prevent price gouging combined with auto manufacturers not needing a monopoly over crash parts to spur innovation— but also recognized that “intellectual property rights exist to create incen-
tives for innovation—that’s why it’s in our constitution... these governmentcreated exclusive rights are crucial to the legal framework that promotes innovation in our country.”
Attorney Saidman Against the bill “I underscore the pernicious effect of the pending legislation (H.R. 3059). This bill does not say that design patents for repair parts are invalid. Nor does it say that they cannot be infringed. Indeed, there can be no argument that the design patents covering auto repair parts are not infringed because the knock-offs look identical to
patents that have been applied for, examined by skilled and qualified USPTO design patent examiners who have determined that the claimed design is novel, non-obvious, and nonfunctional, and then issued. “And why are we even discussing a bill that proposes this remarkable result? We are here because the proponents of this bill lost a hard fought design patent infringement lawsuit covering auto repair parts, and can no longer make, use, sell or import their knock-offs in the United States. “So, having been adjudicated as an infringer of validly issued U.S. design
“it will encourage every industry that loses a design patent lawsuit to petition the Congress to do the very same thing: to carve out an exception to their industry so that their infringement will not be actionable”—Attorney Saidman
the patented designs. Therefore, what this bill proposes is that valid and infringed design patents be renderedunenforceable. These are design
patents, these companies are asking Congress to carve out an exception to the design patent laws for auto repair parts... See Pro-Con Argument, Page 30
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Flag Football Tournament/Trade Show Highlights Van Tuyl Charity Super Bowl Weekend by Ed Attanasio
There are three sacred things dear to the hearts of Texans: 1) Football 2) NASCAR and 3) Bass fishing. And although there wasn’t any car racing or angling during the recent Super Bowl weekend, there was a lot of football and all of it was done Texas-style.
Van Tuyl Team #1 took the crown, while Van Tuyl Team #2 finished third. Sherwin-Williams (in white jerseys at the far right) battled V.T. Team #1 in the final, but ended up losing by a score of 5-3
On Saturday, February 4, one day before the New England Patriots met the New York Giants in the actual Super Bowl, 20 flag football teams competed in the Van Tuyl Group’s Super Bowl of Flag Football tournament followed by a trade show and two days of company meetings. The Irving-based company that operates more than 70 car dealerships’ collision centers nationwide hosted an activitypacked four-day schedule, bringing Van Tuyl management and employees, as well as collision vendors and local collision professionals together to eat BBQ, network and play some high-spirited flag football. The entire weekend was the brainchild of Van Tuyl Group’s National Collision Director Darren Huggins, who comfortably wore several hats in creating, overseeing and implementing all of the weekend’s events. Sponsored by Van Tuyl, PPG Refinish and Enterprise Rent-A-Car, the full-day flag football double-elimination tournament took place at the Stampede Sports Arena, a state-of-theart facility in Southlake, Texas that features three artificial turf fields. Autobody News and Collision Hub were also on hand to cover the event and all the fanfare surrounding it. Teams entered in the tournament read like a who’s who of leaders in the automotive collision field, including rental car companies (Enterprise entered three teams, representing three regions in Texas and Hertz was also on-hand); Paint companies and paint jobbers (English Color and Single Source, PPG and Sherwin-Williams); Body shop chains
(Caliber Collision had two teams) and several local Dallas-area car dealerships (Sewell Lexus, Town East Ford and Reliable Chevrolet). Huggins was happy to see that his weekend’s plans came off without a hitch, he said. “This weekend surpassed all of our dreams,” Huggins explained. “This is the first year we’ve done this and we’re already talking about making it an annual event. By bringing the industry together for a couple of days, it was exceptional. We achieved everything we expected and even more. The competition was unbelievable and some of the games were really close. And by helping a charity on top of it, that made it even more special. I’d also like to thank my co-director of the tournament, Russell Hamilton of Enterprise Rent-A-Car, who did all of the scoring and played an integral part of its overall success.” All four teams entered on behalf of the Van Tuyl Group were called “America’s Team” and coached by Darren Huggins himself. Led by V.T. Team #1, this championship squad consisted of standouts such as Captain Zachary “Huggy” Huggins, Darren’s son; MVP QB/DB Jared “Squid” Mosqueda and WR Matt Saoit, who “pretty much caught everything thrown his way,” according to Darren Huggins. Other stars for the superior team included WR/DB Heath “Chief” Baker; Johan “The Belgian Waffle” Huewart and WR Gregg “G-Unit” Strandberg. On defense, Bobby “El Natural” Ghanbari led the attack, intercepting multiple passes and taking them to the end zone more than once.
Van Tuyl Team #1 went undefeated throughout the tournament and beat Sherwin-Williams in an exciting final game. (At far right, National Collision Director Darren Huggins and at center flashing number #1 sign is Team Captain Zachary “Huggy” Huggins, Darren’s son.)
V.T. Team #1 went undefeated throughout the entire tournament, running the table and beating a strong team sponsored by Sherwin-Williams in the final game. One of Van Tuyl’s other teams (V.T. Team #2) finished in third place, led by Eric Payne, Taylor
28 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
Hoover and Eli Naylor, among others. Robert Shushi was the captain of the second place Sherwin-Williams’ team and proud of his squad, but perplexed by the dominance featured by V.T.’s Team #1. “We gave it our best and we played well, but in the end they were a little faster and a lot more organized. They had signals and plays and they practiced, something we didn’t really do that much of. In the end, they were a better team, so hats off to them. All of the Van Tuyl teams were really good and the fact that Darren coached them all didn’t hurt, I’m sure.” V.T. Team #4 was by far the oldest team in the tournament, totaling 449 years of age amongst the group, consisting of nine seasoned veterans who gave a very impressive and spirited performance.
A Trade Show took place at Van Tuyl’s headquarters on Super Sunday, featuring 44 exhibitors and attracting more than 400 people from the West Dallas area
If you’re not familiar with this full-speed, non-contact version of football, here’s a brief description of the rules, offered by Huggins. “You get five players on offense and four on defense. The quarterback cannot run past the line of scrimmage, so it’s primarily a passing game. The game consists of two 7.5 minute halves and the clock runs continually until the last two minutes of each contest. The fields are 30 yards long and each team gets four downs to score. You can’t get a first down and there are not any field goals or punts, so it’s all-or-nothing when you have the ball. The defense can’t rush the QB, but he only has four seconds to throw. And unless they collide while going for a pass, there is no contact permitted in this game.” By playing a safer, non-contact incarnation of football, you would think no one would get injured, but a few bumps and bruises did occur during the tournament, Huggins said. “Nothing serious, but we did see a few pulled groins, quad sprains, broken fingers and one bruised heel. Otherwise, everyone walked (or limped) away a little sore. Pretty much, with so many people play-
ing (in excess of 150) you would expect more injuries, so we were fairly lucky.” Huggins came up with the idea for flag football as a team building exercise, when he devised such a tournament while holding a series of company meetings last year, he said. “We were in Orlando when I came up with this idea. I’ve been a Dallas Cowboys fan my whole life and I’ve coached and played football for many years. Football reinforces a team approach and teaches people how to work well together for a common cause. When I saw how excited and competitive my guys were, I thought—wow, this can be used to build rapport and leadership on a larger stage. And that’s how it started!” Van Tuyl’s Super Bowl weekend raised more than $22,000 for Trinity River Mission (TRM), a West Dallas volunteer-based community learning center that sets up children (3-12 grades) for success. Standing for Tutor, Read, Mentor, TRM graduates 98% of its students, by creating a wide range of educational and support programs. By instituting programs to provide nutrition for its students through a Kid’s Café that provides hot meals and snacks four days weekly and conducting a Tutor Power Hour with 68 trained tutors on- site, TRM is successfully fighting illiteracy and combating low test grades in Texas.
The Van Tuyl Group raised in excess of $22,000 for the Trinity River Mission, represented at the flag football tournament by (from left) Elizabeth Franco (Outreach Manager), Alexandra Lopez (8th grader who has been with TRM since kindergarten) and Delores Sosa Green (Executive Director)
TRM’s Executive Director Delores Sosa Green, M. Ed., set up a booth at the Van Tuyl Super Bowl of Flag Football and met with spectators and players all day long. “We provide mentoring for at-risk kids to put them in a position to learn and grow as young people. We have children in our program who want to be engineers, teachers, architects— but the public system is failing them. Low graduation rates prove it.”
THE VAN TUYL GROUP WOULD LIKE TO THANK OUR SPONSORS AND OLLOWING DEALER TEAMS FOR PARTICIPATING IN THE THE FOLLOWING
CHARITY SUPER BOWL.
Proceeds and sponsorships benefit Trinity River Mission.
Grand Prairie Ford
Miles Chevrolet
Camelback Toyota
Grapevine Ford
Reliable Chevrolet (MO)
Cerritos Nissan
Gwinnett Place Ford
Reliable Chevrolet (NM)
Collision Center of Peoria
Joe Meyers Ford
Reliable Chevrolet (TX)
David Maus Toyota
Mall of Georgia Ford
Stonebriar Chevrolet
Grapevine Collision on
Town East Ford
Van Chevrolet
Kenny Kent Toyotaa
Westway Ford
Van Chevrolet (MO)
Reliable Toyota
Crest South/Plano Collision
Van Chevrolet (TX)
Toyota of Dallas
Crest/Plano Collision
Vandergriff Chevrolet - N
Toyota of Richardson
Husker GM
Vandergriff Chevrolet - S
Trophy Nissan
McKinney Buick GMC
ABC Nissan
South County Lexus Collision
Midway Chevrolet
Bell Honda
Grand Prairie, TX Grapevine, TX Duluth, GA
Houston, TX Buford, GA
Mesquite, TX Irving, TX
Plano, TX Plano, TX
Lincoln, NE McKinney, TX Phoenix, AZ
Decatur, IL
Springfield, MO
Albuquerque, NM Richardson, TX Frisco, TX
Scottsdale, AZ Kansas City, MO Carrollton, TX Arlington, TX Arlington, TX Phoenix, AZ
Phoenix, AZ
Cerritos, CA Peoria, AZ
Sanford, FL
Grapevine, TX Evansville, IN
Springfield, MO O Dallas, TX
Richardson, TX Mesquite, TX Viejo, CA
Phoenix, AZ
I would like to add special thanks for the following vendors for their charity contributions:
Enterprise Holdings-Dallas, Garmat USA, Dent Concepts, English Color, Gene Lopez, Kaesar Compressors, Car O Liner, All Data, Velox-Bed Liners, Reliable Chevrolet, Mo., Mitchell International, Becca, Summit Software Solutions, Auto House Technologies, Matrix Measuring, Auto Body Color and Autobody News.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 29
Continued from Page 30
Pro-Con Argument
“Why is this such a bad idea? Because it will encourage every industry that loses a design patent lawsuit to petition the congress to do the very same thing: to carve out an exception
parts. The exclusion order went into place on August 6, 2007, banning the importation of those parts and, until a legal settlement was reached in April of 2009, competitive choice was effectively eliminated in the United States for those seven Ford F-150 exterior collision repair parts. Therefore, for almost 2 years, the car company
“for almost 2 years [Ford] was the one and only source for the purchase of these seven collision repair parts...” —PCI’s Passmore
to their industry so that their infringement will not be actionable, so that they can continue to make, use, sell and import their infringing products without fear of liability to the design patent owner... There is almost no industry whose products or services will not cost less with increased competition. This argument, therefore, is much broader than an argument that design patents should not be permitted for auto repair parts. It’s essentially an argument that patents should be abolished, because patents allow the owner to monopolize a product and therefore reduce competition.”
PCI’s Passmore in Support of the Bill PCI’s Passmore, testifying in “strong support” of the bill, said the parts referred to were cosmetic and “the Insurance Institute for Highway Safety (IIHS) through crash testing and crashworthiness evaluations, consistently has found that, generally speaking, cosmetic, exterior parts “serve no safety or structural function . . . [t]hey merely cover a car like a skin.”Moreover, [IIHS] has found that whether a cosmetic collision repair part is a car company part or an alternatively supplied part ‘is irrelevant to crashworthiness.’ “ Passmore cited the chart on the cumulative number of crash part design patents owned by the major car companies. He also detailed that “in December 2005, Ford Global Technologies (Ford) took the unprecedented action of filing a Section 337 case at the International Trade Commission (ITC) against companies in the alternative parts industry for allegedly infringing design patents held by Ford on various exterior parts for the Ford F-150 (model years 2004–2007). On December 4, 2006, the Administrative Law Judge held that seven of the design patents were valid and infringed and issued an exclusion order on those
was the one and only source for the purchase of these seven collision repair parts for their trucks.” Ford’s Porcari testified against H.R. 3059, stating: “Copycat parts hurt Ford, our employees, our suppliers, our dealers and our customers. Ford customers rarely know that they are getting copycat parts because their use is frequently concealed.” Porcari added that the bill could lead to a slippery slope of more design patent exceptions in the future. “The bill’s proponents present no basis for treating visible repair parts differently than other items protected by intellectual property,” he said. “The copyists want to eliminate design patent protection because that’s what they make. As soon as their business model includes engines, brakes and air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs.” Porcari also accused insurers of basing insurance premiums on OEM parts pricing but pushing repairers to install cheaper, non-OEM parts to save money. “Some background about the insurance industry will illuminate what’s really spurring foreign parts copiers and unscrupulous insurance companies. Ford provides insurance companies with its genuine Ford replacement part pricing for every new Ford vehicle. Insurance companies use genuine Ford replacement part prices to set their insurance rates,” he said. “After state regulators approve these rates, insurance companies then refuse to pay for genuine Ford parts and steer body shops to use cheap, copycat parts... This entire discussion about consumer choice and right to repair is merely a distraction from the basic unethical business practice of
30 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
pricing insurance premiums and using genuine Ford parts and then giving consumers cheap foreign parts.”
CAPA’s Gillis in Support of the Bill Jack Gillis—director of Public Affairs, Consumer Federation of America, is also the executive director of the Certified Automotive Parts Association (CAPA)—testified in support of Lofgren’s bill. “For over 25 years, consumers have benefited from competition, albeit limited, between car company brand replacement parts and independently branded parts,” Gillis said. “Such competition, where it exists,
• Eliminating competition will increase insurance premiums for consumers. • Eliminating competition in crash parts could diminish safety. • Eliminating competition will result in more total losses. • Eliminating competition protects the automakers’ “double whammy,” which Gillis described as meaning “not only will the lack of competition allow car companies to charge whatever they want for the parts we need to fix our cars, but when they charge so much that the car is totaled, our only recourse is to go back to them and buy another one of their products.”
“In the early 1990’s, the car companies came to Congress and asked for special design copyright protection on these replacement parts and Congress said no... the car companies are now using design patents to prevent competition...” —CAPA’s Gillis
lowers prices, provides choices and improves quality.” Gillis cited reasons for supporting H.R. 3059: • Elimination of competition will increase the cost of repairs.
• Congress can preserve consumer access to affordable, competitive and quality crash parts by adopting a “repair clause” in the design patent law. See Pro-Con Argument, Page 49
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NSF Certifies PartsChannel Under Automotive Collision Parts Distributor Certification Program Autobody News
CALIFORNIA • NEVADA • ARIZONA
NSF International has certified PartsChannel Inc. under the NSF Automotive Collision Parts Distributor Certification Program, a program that certifies distributors who sell automotive collision parts. The NSF Automotive Collision Parts Distributor Certification Program requires that distributors have quality management systems in place that address parts traceability, service and quality. The program helps close the gap in the supply chain between parts manufacturers and body shops and was developed in response to the needs of collision repair shops, insurers and ultimately consumers.
PartsChannel Inc., a distributor serving the collision repair industry since 1985, is one of the first companies to earn this automotive parts distributor certification from NSF International. To earn certification, PartsChannel Inc. demonstrated that it has effective records systems and inventory tracking systems to track orders and parts through the supply chain. PartsChannel Inc. also met the following criteria as required by the NSF automotive distributor program: ● an ISO 9001-certified quality management system, ● a parts traceability and inventory tracking system,
● a defective parts procedure including a customer part complaint process, ● the ability to administer a manufacturer’s recall, and ● when necessary, a formal corrective action to complaints and an immediate recall plan. “Launched in July as an extension of NSF International’s Automotive Collision Replacement Parts Certification Program, the NSF automotive distributor certification program certifies the ability of distributors, including PartsChannel Inc., to meet rigid performance standards including having an effective system to track orders and parts,”
According to Consumer Reports, Subaru of America is recalling a small number of its 2012 Subaru Legacy sedans and 2012 Subaru Outback wagons due to an airbags issue. According to NHTSA, the cars have side air bags that might not deploy during a collision and increase the risk of injury to drivers and passengers. NHTSA says around 381 Subaru Outback and Legacy vehicles were manufactured last December with side air bag components that contain the incorrect propellant mixtures. The improper mixture in the
side curtain air bag initiators may prevent the safety devices from deploying during a collision. Subaru plans on notifying owners of these vehicles in early April. Owners will be instructed to bring in their vehicles to a local Subaru dealership where mechanics will replace one or both side curtain air bag initiators, free of charge. For more information, consumers can call Subaru’s toll-free customer support line (800-782-2783) and reference Subaru recall number WVZ-36 or visit NHTSA’s safety website: www.SaferCar.gov.
Nissan North America announced plans to update its all-electric Nissan Leaf car with new software that promises to improve performance—specifically, how the battery-powered car estimates its range, or distance it can travel before the car runs out of power, on February 21. According to the technical service bulletin released by Nissan, the software update will be available to owners of 2011 and 2012 Nissan Leaf vehicles free of charge. The best part is the free upgrade can be performed at an owner’s home or business “provided there is a suitable and safe work area,” said the bulletin.
Subaru Recalling 2012 Outback and Legacy Models for Air Bags
NHTSA Investigating Chevy and Toyota Models for Power Windows
The National Highway Traffic Safety Administration has opened an investigation into 2006 and 2007 Chevrolet Trailblazers SUVs as well as 2007 Toyota RAV4 SUVs and Toyota Camry sedans for consumer complaints of the power windows switches on the driver’s door melting or burning. According to NHTSA, there have been 12 consumer complaints and other reports from General Motors of the master window switch on the Chevy Trailblazer melting. Several of the consumer complaints re-
port the master power window switches have led to fires in the driver’s door. The door fires occurred while the SUVs were running as well when vehicles were left unintended and “key off,” according to the NHTSA. Engineers with the ODI and GM will investigate the issue further and determine if an official recall for 2006 and 2007 model year Chevrolet Trailblazer SUVs is warranted. Consumers can file a vehicle safety complaint with the NHTSA’s website, www.SaferCar.gov.
34 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
March 2012
said Bob Frayer, Director of NSF International’s Automotive Parts Certification Programs. “We are honored to be among the first in what we see as the most beneficial industry-wide program to help increase the professional standing of distributors,” said PartsChannel Inc. Chief Executive Officer John M. Palumbo. “We feel NSF International’s unique program, which continually monitors the stringent quality assurance processes within any parts distribution operation, will greatly benefit our customers.” For more information visit nsfautomotive.com.
Nissan Leaf Software Upgrade Coming for 2011, 2012 Models
Among improvements to range estimations of the electric car, the software update will also: add a new in-car safety feature, alerting Leaf drivers if a door is open while the car is not in “Park”, improve connectivity to CARWINGS, the wireless service that connects Leaf owners to their vehicles via the Internet, improve the car’s heating, ventilation and air condition control and operation, improve the Leaf’s in-car informational displays, improve the accuracy of charging time estimates displayed by the dash display and via the Leaf’s CARWINGS connection.
Nissan Recalls 2012 Versa Models for Side Curtain Airbags Nissan North America put out a recall notice for a small number of 2012 Nissan Versa sedans in February for issues with their side curtain air bags, according to the U.S. National Highway Traffic Safety Administration. According to Consumer Reports, the Nissan vehicles were made with air bag initiators that contain an incorrect mixture of propellants that may not inflate the safety devices during a collision. For this current NHTSA recall, Nissan is expected to notify affected
owners of recalled Altima and Versa sedans by Feb. 27. Owners will be instructed to bring in their recalled vehicles to a local Nissan dealership where mechanics will inspect and replace the flawed side curtain air bag initiators free of charge. For more information regarding this Nissan recall, consumers can check the NHTSA website: www.SaferCar.gov.
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Gonzo’s Toolbox with Gonzo Weaver
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
Code Talkers: It Takes More Than Reading Codes to Be a Good Automotive Technician
During World War II the US used a secret type of language to send and receive messages, so the enemy couldn’t find out what they were talking about. They enlisted the help of Navajo and Comanche Native Americans as radio operators. These guys used a combination of their language and relative terms as a way to disguise the real message over unsecured radio waves during World War II. Most of the coding was done by using a native word for each letter of the message. Such as, if you were going to say the word “ARMY” they would pick one of the native words that represented a word in English with the first letter “A” and the same for each letter after that. In other words the letter “B” would be sent over the radio waves as, “Toish-Jeh” which means, “barrel” in English. So the word “ARMY” would
have been transmitted something like this: “Wol-la-chee” (Ant) – “Gah” (rabbit) – “Tsin-tliti” (Match) – “Tsah-as-zih” (Yucca) Thus the word Army would have been spelled out and easily translated at the other end. A lot of times an entire phrase could be stated with one word, or a word that was often used had a selected native word that was used as a substitute. Then on other occasions an English word was thrown in just to confuse the whole thing even more. It was quite ingenious, and believe it or not, the code was never—ever—broken. To quote General Howard Connor (while at Iwo Jima), “Were it not for the Navajos, the Marines would have never taken Iwo Jima.” Trying to sound out those four Native American words (correctly) and translate it into the actual word was easy for these guys. They un-
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derstood it, it’s their language and they could send/translate and relay an answer faster than any machine available back in the day. They truly were code talkers. So you might ask where am I going with all of this? Well, think about it, doesn’t this sound something like the codes we have with today’s cars? It does to me. I read a code, translate it into working data, and solve a problem, all with a language that isn’t understood by everyone out there. I guess you could call me a modern day code talker. The big difference is you’ve got people with hand held scanners they bought at a local store or from the internet, and have the ability to “read” a code. Or some of them have been to a repair shop that has bought a scanner and read the codes for them. But, they can’t break the code. They can’t determine what to do with the information they have in front of them. Think about it… it’s World War II, and you’ve just copied down a message from your secret hiding spot on the side of the hill. You are about to relay the message to your superior officers. But, you still haven’t a clue what that gibberish means. It’s like reading a code on a car these days, and not having a clue what all that information means. That’s where a qualified automotive technician, (aka code talker) is needed. I have lost count of how many times a car has come into my shop with a customer standing at the counter. They have already been somewhere else, and the other shop has given them an invoice with the codes and the definition written down on it, and more than likely a big “goose egg” in the charge column of the invoice. And they still haven’t had their problem resolved. “Oh I see they didn’t charge you to read the codes… how nice of them (said a little sarcastically I might add). So, you need me to find out what it all means right?” I’ll ask. “Yes, but I won’t need it diagnosed; that’s already done,” the customer will tell me.
Of course it’s already diagnosed, and you know what is going to happen next. I’m going to tell them there is a charge to trace out the actual problem and determine the reason for the fault code. Any tests that are needed or extra equipment needed to diagnose the problem is all incorporated into the diagnostic fee, which of course ends up with a customer just about to grab all their paper work and head out the door. Because, oh you know what’s coming next, “It shouldn’t cost anything to find out what’s wrong with my car, because I already had that done.” This is when I break into my “code talker” story and inform the customer of what the process takes to actually find out what that particular code means. “There’s everything from a compression check to TSB’s that need to be considered when it comes to diagnosing a problem,” I’ll tell them. Let’s face it, an oscilloscope ain’t cheap, and as far as I know they aren’t giving away these scanners, not to mention the hand tools, meters, and specialty equipment you’ll need to perform some of these tests. I realize that the code information to them sounds more like “Comanche” or “Navajo” lingo than it does plain English, but then, I’m a modern day code talker. I can read it, I can interpret it, and I can translate it into English. That’s what I’m here for. The next thing to do is make the customer aware of the level of sophistication that is needed to decipher these coded messages from the car. It still amazes me that there are still a lot of people out there who assume replacing a part will always solve the problem, and that intensive research isn’t necessary. I don’t know about you, but there are times when I have a car in the shop that looks like it is on life support with the amount of gadgets I’ve got hanging out of the hood or from under the dash, and it all started off with a simple code. (This is one of those times a cell phone or a camSee Code Talkers, Page 36
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 35
ASA Announces 2012 Annual Meeting Dates and Location
ASA will hold its next annual business meeting May 7–8 at the Grand Hyatt DFW International Airport, located at the Dallas/Fort Worth Airport in North Texas. On the agenda will be open meetings of the ASA affiliate assembly and board of directors. Ron Pyle, ASA president and chief staff executive, will deliver a state-of-the-association address during a Tuesday luncheon, and a new chairman of the ASA board of directors will be sworn in during the event. In addition, ASA will again host an Association Leadership Summit event. All ASA members are invited to attend the open meetings during the event. Check out the Events section of www.ASAshop.org for the latest developments. Additional information about the event, including registration information, will be announced soon.
UPDATE: Proposed Houston License Ordinance Stalls
The mayor’s office in the city of Houston released new changes to the proposed ordinance to regulate the automotive repair and collision industry. The Houston City Council did not reach a final conclusion on the Valentine’s Day ordinance proposal but opted to refer the ordinance back to the administration. There has been no date set for the ordinance to be reconsidered. Automotive Service Association (ASA) members in Houston opposed the proposed ordinance and will continue to work to ensure that any ordinance approved by the city council will treat consumers and repairers fairly. To view information regarding ASA’s grassroots effort—including the letter sent to the mayor and Houston City Council members—visit ASA’s legislative website at www.TakingTheHill.com.
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Utah Bill to Weaken Vehicle Inspection Requirement
Utah House Bill 298 would abolish the requirement that all motor vehicles obtain a certificate of inspection prior to registration is headed to the House floor. The bill by Utah state Rep. John Dougall (R-27) would dilute the Utah State Motor Vehicle Safety Inspection Program if passed. The most important changes made were for the frequency of the safety inspection requirement, specifically the age of the vehicle based on the model year. The age of a vehicle would be changed from eight or more years old on Jan. 1, 2013 to 10 or more years old Jan. 1, 2013. Also, a vehicle safety inspection would be required every four years for each vehicle that is less than eight years old Jan. 1, 2013 in the fourth year and the eighth year. There were some omissions that were made to requirements as well. The bill, if passed, will take effect July 1, 2013. ASA opposes these changes. The bill’s effect would be to create less-safe highways in Utah there would be more accidents leading to more injuries and possibly more deaths. State government studies of vehicle safety inspection programs in MO and PA say inspection programs deter accidents, injuries and deaths.
Fix Auto Adds Two New Shops to Network in N. California
Fix Auto USA announced the addition of two franchise collision repair locations in Northern California on Feb. 20. The new Fix Auto locations include Fix Auto Gilroy and Fix Auto San Jose, which were formerly known as Springer Collision Centers. “Springer Collision Centers is celebrating its 20th year in business,” said Steve Springer, owner of Fix Auto Gilroy and Fix Auto San Jose. “We are excited to take the next step while committing our company to a market leader dedicated to improving the collision repair industry. We’ve been using Fix tools for 10 years—franchising is the next practical move to position ourselves for another successful 20 years.” Fix Auto first introduced its franchise model in January 2011. The company now operates 29 franchise locations in California, and 47 franchise locations overall. “The recent expansion in Seattle and now in Northern California is a clear indicator that a model like ours—which offers independent owners the infrastructure and support to be meaningful in today’s marketplace—is gaining momentum,” said Paul Gange, president and CEO.
36 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
California Plans to Tighten Emissions Standards By 2025
The California Air Resources Board (CARB) is planning to tighten its air pollution standards once again as federal regulations requiring a 54.5 mpg fuel economy standard by 2025 are still being debated across the nation. According to Consumer Reports, under federal law California has a special exemption to set tighter air-quality regulations than the rest of the nation. This is due to the warm climate throughout the state that makes certain areas hospitable to smog. The CARB is planning to tighten statewide air pollution standards by 75 percent by 2025. This will include exhaust pollution such as carbon monoxide, oxides of nitrogen and sulphur, particulate matter, and unburned fuel, as well as vapor emissions from refueling and fuel system leaks. CARB standards also govern emissions of carbon dioxide, and the state has signed onto a bargain with the Obama administration to set these targets at the same levels as the federal government’s 54.5 mpg requirement.
Continued from Page 35
Code Talkers
era comes in handy and sending a shot of the owner’s car to them so they can see what you’ve had to do to locate the cause of that simple code number.) I’m a modern day mechanic; I’m no grease monkey, nor am I the guy with a scanner who’ll read your codes and give you the definition. I’m the guy who will read the code, define it, and translate it into a solution. The cars of today are not the car of yesterday— nor are they the cars of the future. I’ve got to take care of what is here now, and that requires some understanding of the fundamentals of today’s cars. But in order to find out what that little service light means on your dash keep in mind… you don’t need a code reader, you need a code talker.
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Global Collision Uses Garmat USA Paint Spray Booths in All 8 Locations by Ed Attanasio
When you’re painting a substantial number of luxury cars every month in eight locations and many of them are top-name brands such as Bentley, Jaguar, Porsche, BMW, MercedesBenz and Aston Martin, you need to use the finest equipment and products available. By working with the best companies, hiring the best people and committing to best practices, Global Collision in Colorado is very happy with Garmat USA, a leading manufacturer of ecologically responsible, competitively priced, and code compliant paint booths, paint mixing rooms and vehicle prep areas. Global Collision’s Chief Financial Officer Tim Bator respects the Garmat booths for their reliability, versatility and easy maintainability, he told Autobody News. “We’ve established a great relationship with Garmat over the years. We have their downdraft booths and their regular paint spray booths in all of our locations. In the past eight years, we’ve purchased a total of 16, so we’re obviously committed to Garmat and appreciate their quality, service and support.” The 3000 Series spray booths that Global Collision uses are Garmat’s top-of-the-line downdraft spray booths. “We wanted superior airflow and the best lighting we could find. With ten foot-wide doors and a 27 foot cabin, it’s easy to get even large cars in and out of the booth.” Being proactive about maintaining and regularly servicing his Garmat equipment is a big endeavor with so many locations, but Bator knows the importance of doing it right. “You’ve got to take care of your paint booths, just like you do with your car. We perform our scheduled maintenance on all our paint spray booths on a monthly basis, to ensure the longevity of the equipment. We expect 20-25 years of service out of these Garmat paint spray booths, so it’s a big investment and we want to protect it.” Bator appreciates the fact that when he has issues or questions with his Garmat paint spray booths, he can call directly on the manufacturer located in Englewood, Colorado to attain easy fast answers. “They’ve been with us from the beginning and they’ve been very supportive in getting the paint spray booths up and running and working properly. When we ask them for something, they step up and get it done for us. You can’t really ask anything more from a vendor.” Early in 2008 Global Collision made the decision to convert to waterborne paint after much thought and
SHOP & PRODUCT SHOWCASE Global Collision
8 locations in Colorado
Telephone: 303-442-2047 www.globalcollision.com
Operations Manager Tim Bator. “When we ask (Garmat) for something, they step up and get it done for us. You can’t really ask anything more from a vendor.”
consideration, George Lilley said. “This decision was not made lightly nor with great haste. The major concern to the environment is from the VOCs (Volatile Organic Compounds) which include the kind of solvents that are used in conventional paints. These solvents escape into the air thus contributing to air pollution.” The switchover to waterborne has been a big hit among Global’s painters. Bator explained, “We used the solvent for so many years because it was the industry standard. We switched for the environment and two months later we asked our painters what they thought. ‘We’re not ever going back to solvent—we love the waterborne!’ they told us. They were quickly up and running with the waterborne and the Garmat paint spray booths have worked perfectly since.” Global Collision prides itself on using an internationally accepted waterborne paint system that adheres to the strict environmental guidelines of the European Union and officially approved by numerous automotive manufacturers. All eight shops are fully adept at precisely mixing approximately 23,000 solid, metallic, and pearlescent colors while accurately matching all major current and classic vehicle colors. Established more than 10 years ago, Global Collision has grown rapidly since George Lilley started the company in 2003. With an extensive career in the collision repair industry, he founded Lilley Group-UK, and worked with the Haggie Group in Scotland, and the Royal Automobile Club of Victoria to Australia, to establish multiple shops. One of Lilley’s signature creations is his Flow Line production system,
which he used with great success in the United Kingdom and central Europe before bringing it to Colorado. “The efficiency of the shop is maximized with the Flow Line system, because all of the space in the shop is utilized completely,” Bator said. “This way we don’t need a 40,000 square-foot body shop to produce what we’re currently doing. With the paint booths in the middle of the shop, it allows us to push more cars through the system, which gives us better cycle times and makes us more attractive to our insurance partners.” “When I first came to America, I performed market research on the local repair industry and identified a considerable difference between the level of customer care; types of equipment, training and technology being used here compared to Europe,” Lilley said. “My goal was to gain a greater understanding of the American procedures and mentality and combine the knowledge with European standards. I am pleased to say that I have experienced a magnificent response from my American colleagues, and together we work successfully as a team to provide the very best the collision repair industry has to offer from around the world.” Above all, Bator explained, the key factor to the system’s success is the seamless, limited movement of each vehicle. “Strict quality control procedures are in place to ensure that each stage of the repair process is documented and accounted for. As a result of the Flow Line concept, vehicles are repaired more rapidly than the industry’s average downtime, providing customers with a more efficient, timely repair without compromising quality.”
Jake Shaw, Body Shop Manager (right) with painter Anthony Romero in front of Garmat USA 3000 Paint Spray Booth. Anthony says “He really likes painting in Garmat Paint Booths.”
Operations Manager Tim Bator (left) and Painter Dave Behlow of Global Collision. “In the past eight years we have purchased a total of 16 Garmat Spray Booths, so we’re obviously committed to Garmat and appreciate their quality, service and support.”
Garmat USA Phone: (800) 442-7628 email: sales@garmat.com website: www.garmat.com
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 37
Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Checker Auto Body: A Small-Town Shop Offering Big-Time Repairs with Chasidy Rae Sisk
Checker Auto Body in Huntsville, AL is a small, neighborhood shop with a big reputation for quality and customer service. They like to know their customers by first name, and they offer pick-up and delivery services,
Additionally, the website details the specifics of how they determine what repairs are necessary and what they offer with their collision repairs, frame repairs, automotive painting, auto rebuilding, doors/windows and fleet body repair services. “Performing repairs to the highest possible standards, with absolute integrity, while meeting demanding timelines are the founding principles of the Checker Auto Body Repair business”, according to their website. Checker Auto Body is involved with repairs for the City of Huntsville’s Handiride and bus depots, Huntsville utilities and the Huntsville city garage. MeanAlan Andriakos of Checker Auto Body, a Huntsville, AL, while, Steve Locascio often shop that specializes in motorhome repair teaches evening computer especially for their older customers, classes at the local community coldemonstrating their dedication to lege, while Bill Goebel frequently volhelping members of the community. unteers as a chaperone and driver for Their website offers a shop “dedicated the local Catholic elementary school. to providing the Huntsville, Alabama The shop is also dedicated to preservcommunity quality body repair with ing the environment, recycling all mathe emphasis on integrity, honesty and terials that are used in their shop. value.” In discussing current trends in the The shop was founded in 2007 by collision repair industry, manager Bill Steve Locascio, Bill Goebel and Goebel notes that a positive trend has Alan Andriakos when they purbeen the improvement in the quality chased a long-running body shop after the owners decided to retire. Checker Auto Body has since built a reputation for quality repairs, superior customer service and dedication to the community. Their website is filled with information to assist the consumer needing a body repair. For starters, it informs customers that they are able to choose the body shop where they want to have their vehicle repaired and do not Co-Owner Bill Goebel need to allow the insurance company of aftermarket parts and the fact that to choose for them. parts delivery has become more Checkerautobody.com offers instreamlined. He is disappointed that formation about how auto body shops the industry has not been keeping up work, what to do at the scene of an acwith material inflation. cident and how to ensure great cus“It seems that all the price intomer service from an auto body shop. creases seen in materials over the last They also offer free estimates and ad- five years have been left to the shop vice to consumers who have been in owner to absorb; however, on the flip an accident. side, DRP involvement has also been
38 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
more streamlined and less obtrusive. I think computer knowledge and improved communication has helped that aspect of our industry,” Goebel said.
tified, and they are also current with their EPA certification. They participate in direct repair programs with Alfa and State Farm Insurance companies. Their equipment includes a Kansas Jack Magna III frame machine, Uni-cured infrared paint booth, rotary lifts, Eagle II dent repair, Robinair Cool-tech A/C machine and Lincoln 140 mig welders. Bill also notes that smart phones have become a huge advantage during the past five years, providing help in regards to communicating with customers and allowing the shop to send photos and text information quickly and efficiently. The shop uses BASF Diamont paint. They get a large mixture of vehicles, new and older models and var-
Additionally, customer expectations are quite high, even for lowcost repairs, while vehicles have become increasingly complex. Another problem is that many manufacturers are producing vehicles with proprietary SRS and ABS systems, leading to an increased cost for the consumer. Bill also notes that few young people are interested in the auto body repair industry. Noting that it is extremely rare to see a body technician under the age of forty, he believes shop owners must actively pursue the younger generation coming out of school or there will be a huge lack of qualified repair technicians in the future of the Tech Josey Corum inside the shop’s paint booth auto body repair industry. “Skilled labor is going to be very ious manufacturers. Bill Goebel much in demand with no bodies to claims “paint match will always be a fill it.” challenge in this industry. The conChecker Auto Body employs sumer does not understand that paint seven people, including office staff, has a definite ‘life’ to it. Today’s vehiwho specialize in fiberglass, metal cles can expect about ten years of fabrication, custom paint and the repaint life if the vehicle is left outside. pair of buses and motorhomes. The We always let the owner know that shop is 5000 square feet. In addition there is going to be a difference in to thirty to forty body repairs monthly, brand new paint and five, six or even the shop supplements their revenue ten-year-old paint. Once they know through their tow truck, storage facilthis up front, it is usually not an ity and paintless dent repair. As well, issue.” they offer a rebuilding service for totaled vehicles, and they possess a Checker Auto Body Repair, Inc. dealer license for wholesaling vehi6235 Mastin Lake Road NW cles. Huntsville, AL 35810 Huntsville, AL’s Checker Auto 256-489-0962 Body is ASE-Certified and I-Car Cerwww.checkerautobody.com
State Farm Pays Costs for Two Cases by Ray Gunder
After agreeing to pay in full for procedures and materials previously denied, State Farm has now also agreed to pay for all attorney fees and costs on two claims brought by Ray Gunder on behalf of his customers. Upon State Farm’s October 10th, 2011 written denial to provide consideration for a plethora of recommended and necessary repair procedures and materials, Gunder, owner of the 44 year old Gunder’s Auto Center in Lakeland, FL, instructed his legal counsel, Attorney Brent Geohagan, to prepare the necessary steps to file a lawsuit against the nationwide insurer at the request of and authorization by his customer. The lawsuit was prepared and filed on October 25th along with a Civil Remedy Notice (CRN) which was accepted by the courts on December 16th, 2011. State Farm’s legal counsel responded in a letter to Gunder’s Attorney dated January 19th, 2012 stating, in part, “at all times State Farm acted in good faith and fairly and honestly toward its insured, with due regard for its insured’s interest.” Furthermore the correspondence states, in part, “State Farm has decided to exercise its rights under
Pa-based Keenan Auto Body Holds Facebook Jingle Contest
Florida law to avoid unnecessary litigation. Accordingly, enclosed is a check made payable to you and Raymond Gunder in the amount of $1090.70—which is the amount demanded in the CRN, plus statutory interest. Again, State Farm’s payment should not be construed as an admission of any wrongdoing or liability on the part of State Farm who denies any liability, as well as the standing of Mr. Gunder to pursue any claims, but exercise of its right under Florida law to avoid protracted, vexatious litigation.” On receiving the news from his attorney, Ray Gunder said, “I am elated that State Farm has chosen to step up and pay what was due our customer and that State Farm elected to settle rather than proceed with a long drawn-out and costly litigation. They knew what they owed and why and that they would lose if it went in front of jury. They also knew, they would surely incur additional and significant legal costs and interest just as they have in the past. There are an additional 25 more in line behind those which are ripe to be filed for similar issues. We’ll just keep pounding that rock!”
Many shops use Facebook fan pages to engage with their communities, and Clifton Heights, Pa.-based multishop operator (MSO) Keenan Auto Body is creating buzz among its fans with a jingle contest with a cash prize, says Keenan President and COO Michael LeVasseur. Keenan Auto Body is looking to its Facebook community of almost 2,400 to come up with a catchy jingle to run as part of the MSO’s advertising campaign. “This is a first for us,” said Craig Camacho, Keenan Auto Body’s marketing director. “For the past six years, we have had a production company produce our storyline of TV commercials, but we felt this year was the year of change. Currently, we have almost 2,400 people who ‘Like’ Keenan Auto Body on Facebook, and we know there is a ton of talent out there.” Keenan is offering a first prize of $1,500 and a second prize of $500. The contest began on Thursday, Feb. 16 and ends on Tuesday, May 1, with the winner and runner-up being chosen and announced on Monday, May 21.
ASA & Diamond Standard Product Liability on Website
A website supporting the Automotive Service Association’s (ASA) $40 million Security Shield Product Liability Protection benefit through Diamond Standard Parts is now live, the ASA announced Feb 20. The ASA says the website, diamondstandardsecurityshieldASA.co m, is a result of the partnership it recently formed with Diamond Standard Parts to provide ASA members with expanded product liability protection from the use of the company’s collision repair structural replacement parts. The product liability coverage is intended to serve as added security against scenarios when the use of Diamond Standard parts results in injury to vehicle owners. The website provides access to the full program content, including background, coverage, a limited lifetime warranty statement, and a “Certificate of Coverage” that can be downloaded, according to the ASA. The Security Shield Product Liability Protection benefit is automatically available to all ASA-member shops, and does not require individual registration.
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The Community-Focused Body Shop
Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.
A Shop Owner’s Suggestions to Control Steering and Worse to Come with Domenico Nigro
Modern vehicles are complex and increasingly easily totaled; advances like anti-lock brakes and traction control have increased driver control, and increased consumer awareness has improved safe driving practices. This all translates into fewer repair jobs and collision shops must follow best practices to remain profitable. But what about business declines due to steering? Steering has existed since the beginning of the auto insurance industry and, while illegal, it may be here to stay unless something is done to change the awareness, standards within the industry and the laws that govern their behavior. Steering hurts both the shops and the customer, and if there is going to be progression in this industry, a solution must be found and regulations must be enforced. Good body shops are being forced out of business. Car owners are receiving sub par parts and service. A solution would benefit the entire industry and its customers. The shops trying their hardest to get work based on their reputation and work aren’t the only ones being affected. The customer is also affected by steering and it can be dangerous to more than the bottom line. Insurance companies can have agreements with shops and vendors where the car owner will get cheaper aftermarket or unexamined used parts, which can have hairline fractures or other structural issues that may be unsafe. Almost everyone agrees that this practice hurts the industry, but for decades no progress has been made to change it. Obviously a steered vehicle usually ends up at a DRP shop, rather than an independent one, and whether you see steering as good or bad depends on which type of shop you have. One reason there’s not enough opposition to steering is that the shops losing jobs are balanced by the DRP shops that benefit from it. Solutions must be evaluated and once one is agreed upon, implementation and enforcement must be carried out and monitored. So, what are the possible solutions? Unity Within the Community The auto body industry should come
together, DRPs and non-DRPs, as a community, to set a standard for repairs and claims. Standards for what procedures are covered must be made so that fair and accurate prices are charges industry wide. This level of communication and standard setting doesn’t currently exist and causes greater separation within the body shop community and resentment from non-DRPs who may not be able to match DRP prices because the influx of jobs coming to DRPs allows them to offer unnaturally low prices.
Change Method of Reporting a Claim Currently, the vast majority of claims are made over the phone. These phone calls often include a recommendation from the insurance company for a preferred DRP shop. Instead of phoning in a claim, improve the Internet claim submission process, so that the first steps of the claim can be done online and don’t require human interaction. This will eliminate the possibility that the car owner is manipulated into using a particular shop recommended solely by the insurance company. Another option is making the claim in person from the body shop of their choice. Instead of first calling the insurance agency, have the car owner call the insurance company after they choose a shop, and if possible, have them call from the shop.
Awareness We must let the car owners know that they do have a choice when it comes to who is repairing their car. The aggressive “recommendation” practices won’t intimidate or influence the car owner if they are aware that the practice is illegal, and by allowing the insurance company to influence their decision, they are partaking in illegal practices that can ultimately hurt the car owner.
Curtail DRPs, Stop Preferred Providers DRPs are the greatest source of friction between shops and insurers but worse could be on the horizon. “Preferred provider options” are proposed by the insurance industry to control costs by offering policyholders discounts in exchange for limiting their choices when
40 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
it comes to collision repair. Those limits include the use of specific repair shops and the use of aftermarket or non-OEM parts and sheet metal. If we eliminate DRPs we can start to re-establish free enterprise, allowing the best shops offering the most fair pricing and doing best quality work to get the job, which will restore a more natural flow within the industry.
Policy Changes and Regulation On a larger scale, the issue of steering can be addressed through legislation. Insurance agencies need to stop strong-arming their customers to take their car to a preferred shop which is an obvious conflict of interest. Steering is detrimental to free enterprise and doesn’t allow for the industry to react naturally to the laws of supply and demand. Just as the government created laws that regulate monopolies
that impede free enterprise, they can mandate changes to the auto insurance industry. Steering creates a whole set of problems that are in the consumers’ best interest to correct. Once a fair solution for all parties is reached, it must be followed up with enforcement. Insurance companies should be required to show full transparency when their customers report an accident. Monitoring will follow to ensure no shop is receiving unfair advantages and deals that exclude other shops or discourage free enterprise and will eventually be looked back upon as archaic, unjust and unhealthy. You can contact your local Representatives to let them know you care about this cause and ask what they are doing to fix the problem. Action must start from within, awareness needs to spread, and solutions need to be discussed.
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Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Prestige Auto Body in NJ—A Non-DRP Thriving in a DRP World with Chasidy Rae Sisk
Prestige Auto Body in Garwood, NJ always strives for excellence in their repairs and customer service. Owner Sam Mikhail’s efforts were recently brought to light when he was inducted into the AASP/NJ’s Hall of Fame in November, 2011.
(l to r): Bruce, Selvio, Frank, Sam, Chris, Morisio and Bill
About this, Mr. Mikhail states “It was a surprise to me. I’ve been on the board for a long time, but I am a minority shop when it comes to DRPs. I’ve been active and vocal when it came to DRPs and steering
Prestige Auto Body owner Sam Mikhail
so I know I am not the most popular guy among the DRP shop owners, so for me to get the award never came across my mind. I appreciate the honor and the people that nominated me. I know that my effort and hard work did not go unnoticed.” He is also happy with the fact that several local newspapers published the story where consumers can see that he practices what he preaches. Sam Mikhail attends the AASP/NJ tradeshow every year because he feels it offers great information about the industry. As a veteran in the auto body inS negdustry, Sam Mikhail sees many ative trends occurring lately. Because shops are being squeezed by insurers resulting in a lot of shortcuts and the use of inferior parts and materials,
bad repairs are predominant in the industry. Many insurers overlook procedures that need to be done, changing or altering data to fit their needs. Because of this, he believes many existing shops will go out of business. New Jersey has seen a decrease from 1700 to around 1200 shops in the past four to five years. Mr. Mikhail believes this is due to the need for updated, high-priced equipment as well as the conversion to waterborne paint and changes in car designs. Combined with depressed labor rates and underpayment for materials, this will make it difficult for a lot of small to medium shops to stay in business. Mr. Mikhail also notes that little new blood is coming into this trade. Most young people are going into other industries where they will be better compensated for their labor, leaving the auto body industry with an aging population. He believes insurance companies are driving this trend because they are looking to lower short-term costs without worrying about how this will affect the future of the industry. Prestige Auto Body does not participate in any direct repair programs, and Mr. Mikhail has no plans to do so in the future either. He is very outspoken about his concerns with the way direct repair programs dictate the materials used and result in lower quality repairs. Prestige Auto Body works for the consumers, not the insurance companies, and their “number one concern is to restore cars to its pre-loss condition as close as humanly possible.” In May 1979, Mikhail opened Prestige in Garwood. He had owned a franchised auto body shop for about eighteen months in Roselle in a difficult to locate area. The shop in Garwood was originally owned by a man who charged $300 for nearly every job, and when he left the area, leaving the bank with an unpaid $80,000 loan, the landlord bought the shop from the bank. Mikhail took the shop over from the landlord, cleaned the shop, replaced the old paint booth and added a frame machine. It took
42 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
two years for people to really return to the shop since many consumers
Prestige Auto Body is located in Garwood, NJ, on South Avenue
were afraid that the old owner was still in charge of the shop, leaving Sam with a struggle to rebuild his reputation. In order to do so, he wrote a detailed estimate on every car even if he knew he would not get the job, explaining to the customer what needed to be done to get the job right. He refused to take any shortcuts and gave every car the same amount of care, regardless of age, model or value. Any customer problems were ad-
Spray booths on the shop floor at Prestige
dressed promptly; “we always gave the customer more than they paid for.” Prestige now has an excellent reputation in the Garwood NJ community for superior repairs and customer service. This Garwood, NJ shop uses Spies Hecker paints on a mixture of new and older model cars. Mikhail notes that many of the older cars
end up being totaled, but if these same cars are sent to DRP shops, they will be repaired many times until the cost exceeds the car’s value, leaving customers with nothing more than junk. When asked whether he has any color matching problems with Spies Hecker, Sam Mikhail insists “there is no such thing as a problem in color match; if you try hard enough, you can match any color.” Prestige Auto Body boasts a 11,000 square foot shop and six technicians. The shop is complete with two downdraft spray booths, two EZLiner frame machines, one Chief Goliath frame machine and two Genesis Electronic Measuring systems. Additionally, the shop utilizes two Pro-Spot welders, three mig welders, one Hunter wheel alignment machine, a stationary lift, a portable lift and a flatbed. This shop repairs between fifteen and twenty vehicles each month, and additional revenue comes from DV appraisals and offering an expert witness service for local attorneys and consumers. The shop also offers Diminished Value Assessments. The technicians and estimators at Prestige Auto Body are ASE Certified, and the shop is I-CAR Certified. Besides his involvement with AASP/NJ, Sam Mikhail was also the first president of the Garwood Chamber of Commerce and is currently the treasurer. Prestige is also a member, as well as the founder, of the Goldcar Collision Repair Network. Out of concern for the environment, Prestige Auto Body is currently under contract to convert to solar power in the shop. Prestige Auto Body 7 South Avenue Garwood, NJ 07027 908-789-2020 www.goldcar.com/prestige
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 43
Federal Trial of Baltimore Police Kickbacks Involves Local Body Shop, About 60 Officers and Insurance Fraud
Writing in the Baltimore Sun, Justin Fenton has reported on the federal police kickback trial in which testimony implicates a shop owner and about 60 Baltimore police officers. Body shop owner Alex Moreno, of Majestic Auto Repair, has already plead guilty to his role, said he was approached in 2008 by a Baltimore police officer with an idea to help boost sales at his fledgling Rosedale business. The officer said, in exchange for a cut, he and fellow officers would funnel cars to the shop. According to police and federal prosecutors, the officers were circumventing the city’s system of authorized towing companies by referring cars to Moreno in exchange for payment. Majestic would often increase damage to the vehicles by smashing side panels with poles and breaking off mirrors to increase payouts from insurance companies, Moreno testified. Soon Majestic Auto Repair was getting customers almost exclusively from city police. Moreno testified Feb. 14 in federal court that more than 60 officers would ultimately get in on the scheme, receiving $300 for each referral. Business grew so fast that he
had to expand to new lots to store all the cars. In fact, growth was so fast that Majestic struggled to stay profitable, Moreno said. They often paid officers to bring their own cars in for repairs, did not require other customers to pay deductibles, and paid for rental cars. Moreno said the idea to pay police for referrals was hatched in 2008 by Officer Jhonn Corona, his neighbor and shop customer. Corona spread word of the plan through the department, Moreno testified, and officers called when they encountered accidents. Corona pleaded guilty to conspiracy and extortion last fall. Moreno also testified that a city officer named Osvaldo Valentine falsely reported that his personal vehicle had been stolen. Moreno said the vehicle was at his shop and that Valentine had reported it stolen because he couldn’t make the payments. Valentine pleaded guilty to conspiracy and extortion last fall. Moreno testified that at one point, his tow truck drivers joined another company and some of the officers started working with them instead. Those drivers have not been charged.
CREF Sees Record $4.1 M in Industry Donations for 2011 The collision industry came to the aid of its future workforce in 2011 by providing a record $4.1 million in donations to secondary and post-secondary collision school programs and their students through the Collision Repair Education Foundation. Through monetary and in-kind product donations, the 2011 Collision Repair Education Foundation donors helped to provide student scholarships, student tool grants, school equipment and supply grants, the 3rd annual Ultimate Collision Education Makeover school grant, and much more. Since 2008, when the Collision Repair Education Foundation became a purely philanthropic organization, the organization has provided $7 million in school and student support through industry donors. “The fact that the Collision Repair Education Foundation provided more support to collision schools and students in 2011 compared to the combined totals of 2008 through 2010 displays that the collision industry is one that cares for its future professionals,” said Scott Kruger, Collision Repair Education Foundation Executive Director. “This announcement of support
was made possible exclusively through our industry supporters and donors. On behalf of our staff, Board of Trustees, and the collision students we support, we would like to thank our continued supporters and donors.” “The Collision Repair Education Foundation has come a long way since becoming a purely philanthropic organization in 2008. The donation results of 2011 display that many industry members believe in the Education Foundation’s efforts to support collision schools and students,” said Doug Webb, Chairman of the Collision Repair Education Foundation Board of Trustees. “I want to thank the Staff for all of their efforts during 2011, all of the Board of Trustees, and of course, all the donors for their support during the year.” For a complete listing of the Collision Repair Education Foundation’s industry supporters, visit www.CollisionEducationFoundation.org. Inter-industry organizations and individuals who are interested in supporting CREF in 2012 should contact CREF Associate Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org or at 847-463-5244.
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SAAB Dealers Still Looking at Options, Six Parties Still Contend
Six parties are still reportedly considering buying Saab Automobile, but Saab’s dealer base also has options. Saab’s demise is not necessarily certain, a Bloomberg report suggests. While 200 Saab dealers worldwide have chosen to close up shop during the last two years, but the remaining are turning to competing automakers to land franchises as Saab’s fate becomes less promising, the report said. In fact, Saab National Dealer Council leader Kurt Schirm said each of Saab’s 188 U.S. dealers is considering other brands. Connecticut dealer Guildford Saab’s general manager Tom Backes is reported to have courted both Maserati and Mitsubishi. “I’ve reached out to quite a few brands,” Backes was quoted as saying. “Some have said, ‘We’re not expanding,’ and others have said, ‘We’ll take a look at it.’ It’s a slow process.” Garel Rhys, head of the automotive industry research center at the University of Cardiff, said: “These dealerships have a loyal clientele who might switch brands. They’re often in very good locations and well-established. So I’m quite optimistic about the prospects of Saab dealerships”
Orange County CAA Chapter to Hold Morning Meeting in February
The Orange County chapter of the California Autobody Association (CAA) will hold a morning meeting in February. The meeting will be held on February 28 at 8 a.m. at the Tustin Rancho Golf Club in Tustin, CA. The meeting’s speaker will be Chris Linford with Oozle Media. Chris will speak about social media and why it is essential to any business. Chris is the ‘Pay Per Click’ campaign manager at Oozle, which means he monitors the company’s pay per click campaigns with software that shows which keywords and phrases result in their customer’s phone calls and other forms of conversions. According to Oozle, relationships are the number one reason why social media is so effective for businesses; it allows customers to create personal relationships with a company, ultimately resulting in more business from them. The cost of the breakfast meeting is $40 for members and $60 for nonmembers. Please contact Cindy Shillito, Southern California CAA Rep, for more information at 714-944-4028 or radiatorgirl@socal.rr.com.
Mitchell Partners with San Diego Work Readiness Program, New Collision Repair Course at San Diego City College
Mitchell has established a community partnership with the San Diego County Office of Education’s Work Readiness Program. Mitchell is funding a collision repair program at San Diego City College, which introduces area youth to career opportunities in the industry. In this endeavor, the Company proudly continues nearly a decade of support of the local program, as part of its ongoing community outreach initiatives. “Mitchell’s long-standing support for this type of career gateway for our students is invaluable,” said Ed Rulenz, Project Facilitator and Instructor for San Diego County’s Office of Education’s Work Readiness Program. “Challenging economic circumstances make partnerships such as this one absolutely essential, and through Mitchell’s financial support, on-site collision repair facility visits, and provision of tool kits for students, we are able to empower such deserving young people to broaden their career opportunities and better their futures.” The collision repair class supported by Mitchell at San Diego City
College introduces students to basic vehicle paint preparatory techniques. The course is overwhelmingly popular, with a typical 150 person wait list. Students can go on to more advanced collision repair training at the school, and Mitchell also aids in internships and job placement at local repair shops. “It is tremendously gratifying and humbling to see how our partnership with San Diego City College has presented exciting collision repair career opportunities for local students, and we look forward to continuing to work together to encourage and support young people in our own backyard,” said Jack Farnan, Mitchell’s Senior Vice President of Human Resources. “For Mitchell, active involvement in our community is a personal endeavor for our team members and speaks to the integrity we try very hard to bring to every aspect of our business. We are proud to make more career opportunities a reality for more people and view partnerships such as this one as an opportunity for us to continually strengthen our community.”
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 45
This Year’s Chicago Auto Show Used New Media Technology
Study: 96% of All Repair Shops Recycle Scrap Metal
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The Chicago Auto Show (CAS) used a series of unique and creative social media events and formats to inform and engage attendees at the 2012 show, February 10–19, 2012. It is the first auto show in the U.S. to use such a complete package of social and digital media, highlighting the importance of these mediums for consumers and attendees. “We’ve used various forms of social media before, but we realized that we could do so much more than any other show to engage social media and excite consumers,” said Dave Sloan, President of the Chicago Automobile Trade Association. “In order to create this unique package, we hired Vivid Ascent, an integrated marketing agency that specializes in social and digital media. We have partnered with them to leverage their social media, video and creative skills in a way we have not seen in other U.S. auto shows.” Some of the unique social and digital media programs that were used in this year’s show included: 1. Daily “Webisodes” that share updates of special programs, contests and events that will be highlighted on the CAS website and distributed to social media 2. A “First Look for Charity” menu
tour for food bloggers and digital influencers that cover the Chicago food industry previewing the show’s annual charity event that is open to the public 3. A Blogger Sweepstakes specifically designed for bloggers to invite their readers to win an exclusive auto show experience 4. Facebook photo contest, called “How Sweet is Your Ride?” allowing followers to upload photos of themselves with their favorite vehicles and vote for the winner, who received a VIP Package 5. A special Foursquare page for checking in at the show 6. A Social Media Day for digital influencers and bloggers to preview the event before the public 7. A Drive-In Program designed for select digital influencers and bloggers to evaluate new vehicles 8. Unique Digital Media Releases containing video and digital assets providing news updates throughout the show 9. Twitter updates providing realtime news and information throughout the show “We wanted to make this show more exciting for the attendees,” Sloan added.
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Auto repair shops are playing a key role in protecting the environment with 96 percent reporting they recycle the scrap metal from automotive components, according to a study done by the Automotive Aftermarket Industry Association (AAIA). Shops are recycling the scrap metal from many auto parts, including alternators, brakes, engines and transmissions. The volume of material recycled annually in the United States includes 74 million metric tons of iron and steel, 4.7 million metric tons of aluminum and 1.8 million metric tons of copper, according to the Institute of Scrap Recycling Industries (ISRI). “Scrap metal recycling has an extremely positive impact on our environment,” said Rich White, senior vice president, AAIA. “It conserves natural resources, reduces greenhouse gas emissions and air pollution, saves energy and minimizes the amount of waste sent to landfills.” According to ISRI, recycling one ton of steel conserves 2,500 lbs. of iron ore, 1,400 lbs. of coal and 120 lbs. of limestone, and the energy saved using recycled materials versus virgin materials is up to 58 percent for iron and steel, 92 percent for aluminum
and 90 percent for copper. If the ferrous scrap that is recycled in the United States were put into rail cars, the train would stretch 11,349 miles, nearly halfway around the world. In addition to recycling scrap metal, automotive aftermarket companies, including auto repair shops, manufacturers, distributors, retailers and jobbers, routinely recycle tires, batteries, used oil and oil filters, parts cleaning solvents, plastics, cardboard and paper, a/c refrigerant, dunnage and wood pallets. The study is part of AAIA’s initiative to illustrate the automotive aftermarket industry’s widespread efforts on behalf of the environment. The information is presented in AAIA’s “Driving Toward a Cleaner Environment: The Automotive Aftermarket’s Green Story,” in the short video, AAIA Green, and in a Green Snapshot. For more information, visit www.aftermarket.org/green. AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tool, equipment, materials and supplies. AAIA represents more than 100,000 repair shops.
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California Attorney Wins $10,000 Claim v. Honda
A non-practicing California attorney won nearly $10,000 for herself in her small claims suit against Honda claiming the company knowingly misrepresented the mileage she would get with her Civic Hybrid. The Small Claims Court lawsuit is unusual in that some legal experts believe it could change strategies for both Small Claims Court and classaction litigation. A Los Angeles County court commissioner ruled that American Honda Motor Co. negligently misled Civic owner Heather Peters when it claimed the hybrid’s gas mileage could be as much as 50 miles per gallon. Honda had offered a couple hundred dollars and a $1,000 voucher toward the purchase of another Honda vehicle to complaining customers who participated in a class action lawsuit. Honda says they will appeal but many more owners of the 2006 Civic Hybrid may be going the small claims route. Some say Peters is suing the wrong party, since EPA oversees the mpg ratings and Federal law requires them to be used. Five states’ AGs have asked for more time to consider the settlement with 200,000 owners.
“Evangelist Jerry Bratt” Scam, Tow-for-Pay Revived
There is a new tow for pay scam going around and several shops have contacted ABN to alert us. The scenario described by fax and possibly email is that their car needs to be towed from another state to be fixed at your shop. But they need you to pay the tow bill before the car can be delivered. One shop received two faxes (in two different fonts) from someone calling himself “Evangelist Jerry Bratt” saying his wife had an accident in a 2007 Cadillac Escalade on her way to Kansas. And of course it asks that you only email him. And he’ll be paying cash. And of course you need to pay the bill. The fax asks for the address of your shop. The last time this went around shops were expected to pay a tow bill over a $1000 and they tell you the “wrecker” will only accept a money gram. Maybe also a request for a credit card. Don’t fall prey but alert us if you receive this fax. The sending fax number is/was 202-204-0669, a number traced to Washington, D.C. We don’t know if there is a real Jerry Bratt, or whether or not he is an Evangelist.
Allstate will open Agencies in Dealerships, from Test Program
Allstate has announced plans to open full-service Allstate agencies inside auto dealerships nationwide. Allstate says it will place agency offices on the showroom floor inside auto dealerships, which will operate during regular business hours of the dealership. Licensed insurance professionals and a team of support staff will work onsite to help customers assess their insurance portfolio. The goal of Allstate’s dealer program is to integrate the purchase and service of a vehicle with opportunities for consumers to price auto insurance with Allstate and work with a licensed insurance professional on their coverage needs, said Mark LaNeve, senior executive vice president and chief marketing officer for Allstate. “Our agency owners are at the heart of Allstate’s business and this program allows us to attract new customers at a time and location that’s convenient for the customer,” LaNeve said. Allstate said it tested the program for two years in 11 auto dealerships nationwide. The pilot test revealed that the dealer program offers the convenience and face-to-face interaction that customers want, according to the company.
Toyota to Expand in US With GA Compressor Parts Plant
Toyota Industries Corp. announced plans to open a $350 million automotive parts plant in Jackson County in northeast Georgia, creating 320 jobs, in early February. The plant will create automotive compressor parts and will be built near a related assembly plant off I-85 in Pendergrass, GA. The automaker expects the plant to be completed in late 2013, according to the Atlanta Journal-Constitution. “In opening this new Georgia manufacturing facility, Toyota Industries Corporation sends a very clear message about its confidence in our state’s ability to help them remain competitive in global markets,” Gov. Nathan Deal said in a news release. “Projects such as this underscore Georgia’s record of success in attracting international investment to our state,” Chris Cummiskey, commissioner of the Georgia Department of Economic Development, said to the Atlanta Journal-Constitution. Courtney Bernardi, director of economic development for the Jackson County Area Chamber of Commerce, expected the plant bolsters the area’s manufacturing base and to pay higher than the county’s average.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 47
I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
Corrosion Protection to Structural Part Interiors There has been a longstanding recom- Protection (CPS01), I-CAR asked several product and vehicle makers if mendation to apply epoxy primer, as well as anti-corrosion compound, on this is still the most frequent recomthe inside of rails and pillars and mendation. I-CAR was told it is not, rocker panels as a last step for struc- due to several reasons. These include possible primer adhesion problems tural repairs. Going back as far as the July/August 1988 I-CAR Advantage, in the article “Restoring Corrosion Protection,” is the following step for providing corrosion protection to enclosed interior surfaces: “Apply primer. Two-part epoxy recommended. Then apply anticorrosion compound.” The Figure 1. Anti-corrosion compound is applied to enclosed reason given, is that on areas interior surfaces with a wand using access holes where the coatings have been entirely removed, this is a twoon these surfaces, the lower prevastep process that is replacing the two lence of epoxy primer at repair faciloriginal coatings, zinc and E-coat. ities, the increased popularity of During research for the recently self-etching primer, changing primer updated I-CAR course, Corrosion chemistries, and an increase in the ef-
Primer Requires a Cleaned Surface Product makers have a concern with adhesion if these backside areas are not cleaned properly. Any surface to be primed must be cleaned, both mechanically and chemically.
If applying epoxy primer inside rails and other structural parts, the surfaces must be cleaned before the part is assembled. This requires sanding followed by a thorough chemical cleaning, especially the joint area backside to remove coatings. There might be access to a rail joint, if the joint is near the very tip of the rail and the rail is open-ended up through the joint location. Other than a situation like that, there isn’t enough access for proper cleaning after welding, so it must be cleaned before assembly. Anti-Corrosion Compound Alone The recommendation from the product makers and vehicle makers that ICAR communicated with during research for updating the I-CAR course, Corrosion Protection (CPS01), is to apply anti-corrosion compound See I-CAR Tech, Page 62
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fectiveness of anti-corrosion compound. E-coat is the best corrosion protection material that will ever be applied to a vehicle surface, and aside of the weld backside, the enclosed interior areas have E-coat. Still, there is a concern among repair facilities for longevity of repairs, retaining corrosion warranties, and assurance that there is one more layer of protection, especially in the rust-belt areas. For these reasons, and more, several facilities will continue to apply epoxy primer in addition to anti-corrosion compound to enclosed surfaces as a standard operating procedure.
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48 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
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4797 Convoy St. • San Diego, CA 92111
Continued from Page 30
Pro-Con Argument
Most of these points are contested by the OEMs, but collision repairers do not typically hear the case for patent protection directly from the OEMs. What follows is patent attorney Porcari’s full argument in front of the committee.
Damian Porcari’s Opposition for Ford “Chairman Conyers, Ranking Member Smith, and members of the Committee, my name is Damian Porcari. I am an attorney with Ford Global Technologies, LLC., a wholly owned subsidiary of Ford Motor Company. I am responsible for obtaining and en-
grilles, lights, and mirrors. “This legislation, if signed into law, would undo wins by Ford with the International Trade Commission against foreign manufacturers making copycat F-150 parts. The infringers purchased a single genuine Ford part and used low-cost laser scanners to make ‘photocopy-like’ copycat parts. Ford hosted representatives of the U.S. Patent and Trademark Office in our design studios and demonstrated how infringers are able to make tooling for a copycat fender in a matter of hours using this equipment. Ford, our suppliers and our dealers are losing $400 million per year in genuine part sales because of this flood of imported copycat parts.
“the increase in the number of design patents filed... is a response to the increased copying of parts. If this bill becomes law, part copying will continue to increase and negatively erode U.S. manufacturing jobs” —Ford’s Porcari
forcing Ford’s design patents, especially those directed to exterior components such as fenders, hoods,
“I freely admit that a company can save money by copying a design as opposed to creating, testing, mar-
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keting, and selling an original design. This is not a revelation. It has been and will always be cheaper to steal something than to pay for it. This applies to all markets and all products. Our opponent’s argument is no more Damian Porcari than a justification to deny all intellectual property rights across the board. “Copycat parts hurt Ford, our employees, our suppliers, our dealers,
factors are also important in repair decisions. But when this same customer takes his or her car to a body shop, they frequently receive non-Ford, non-U.S., non-UAW parts, all without any disclosure or warning. They take a Ford in for repair and given in return an untested experiment that may or may not function as intended. Ford doesn’t test how copycat parts work or what interaction various copycat parts have with each other. We test Ford vehicles with genuine Ford parts. “Copycat parts makers talk of monopoly pricing by automakers if
and our customers. Ford customers rarely know that they are getting copycat parts because their use is frequently concealed. Customers purchase a Ford vehicle for many reasons, including its features, quality, styling, and value. They also buy a Ford because of its high domestic content (Monroney sticker) or because it was made by UAW workers. These
parts can’t be freely copied. Yet there is no evidence for this argument. For over one hundred years, Ford has prided itself for selling vehicles with readily accessible and affordable replacement parts. If the pricing of genuine Ford parts made insurance unaffordable, we wouldn’t sell any cars or trucks. Everyone purchases insurance before they drive their new
“If this bill becomes law, a real car would have no protection against copies, but a cartoon car would be protected for 120 years”—Ford’s Porcari
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car home. This argument is a smokescreen to divert attention away from the fundamentally dishonest practice of purchasing a single Ford part and making cheap copycat parts in lowwage foreign factories that are sold to an unknowing American public. Technology transformed the copying of books in the 70’s, music in the 90’s, and movies this century. It is now transforming the car parts market. Virtual 3-D photocopiers are making it faster and cheaper to clone parts. Ford’s only recourse is to rely on an imperfect form of intellectual property protection—design patents—to stop the wholesale cloning of our vehicles. That’s why you are seeing a significant increase in the number of design patents filed in the U.S. Patent and Trademark Office. It is a response to the increased copying of parts. If this bill becomes law, part copying will continue to increase and negatively further erode U.S. manufacturing jobs. Auto companies, suppliers, and dealers will compete with cheap Taiwanese copycat parts by outsourcing manufacturing to other even lowercost countries.
to eliminate design patent protection on copycat parts because that’s what they make. As soon as their business model includes engines, brakes, and
“This bill encompasses more then car parts. Any replaceable component would be free game for foreign copying including battery packs, printer cartridges, razor blades, tires, and golf clubs. All forms of intellectual property are aimed at preventing copies. There is no fundamental reason to treat a fender differently than a drug, a purse, or a movie. To do so otherwise is to devalue design. I explain this comparison by describing an accident. The vehicle’s fender, brakes, and tires are damaged. The driver also breaks her sunglasses, a CD that was playing is scratched, some prescription drugs fall on the ground, and a $100 bill blows away. Which of these articles should be freely available to foreign copyists and why? What fundamental principle supports treating a fender differently? The bill’s proponents present no basis for treating visible repair parts differently than other repair parts or other items protected by intellectual property. The copyists want
The patent teaches others how to make something. If a patent is unenforceable against foreign manufacturers, the American inventor is left with nothing. This entire repair argument is a smoke-screen. Car companies don’t sue customers for pulling a dent from their fender. Razor companies don’t sue customers for sharpening a dull blade. Customers have the right to repair their car or sharpen their razor, but they don’t have the right to make copy fenders or copy razor blades. Far more importantly, foreign companies don’t have the right to sell millions of copycat fenders or razor blades into this country. That’s not “fair use”, that’s a large-scale foreign commercial enterprise stealing business from the American inventor through unethical copying. And that’s exactly what’s happening in the car business today. Dozens of foreign factories, employing thousands of workers are selling billions of dollars of copied car parts. Ford is working to stop this practice by enforcing its
Non-Original Equipment Aftermarket Label
air bags, we will likely hear the call for the elimination of patent protection on all types of replacement parts. And it won’t stop with cars. The denial of intellectual property rights will always reduce copiers’ costs. “Proponents argue that this bill is needed to restore “balance” between car companies and customers. The phrase: “It’s my car, I should be able to fix it” is used to suggest there should be a “fair use” right-to-repair. While the car indeed belongs to the owner, the patents protecting it do not. Patents have never needed a “fair use” concept because they involve commercial production of products.
“Proponents will tell you ‘a hood is a hood is a hood’... A hood is not a hood. If they were, why would foreign manufacturers be making exact copies rather than generic parts?”—Ford’s Porcari
50 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
design patents. Rather than restore balance, this bill would upset long standing US intellectual property law and would tell the world it’s OK to copy American products—both here and abroad. This issue is not one of allowing customers to repair their cars, they already have that right. The issue is, can foreign manufacturers freely copy America’s creations? “The timing for this bill couldn’t be worse. An International Trade Administration report entitled “U.S. Automotive Parts Industry Annual Assessment 2009” outlines the problems facing the domestic auto parts industry and shows increasing imports of aftermarket parts from foreign countries (Attachment 1, not reproduced here–Ed). The Bureau of Labor Statistics (BLS), U.S. Department of Labor, reported that the automotive parts industry lost more than 300,000 US jobs since 2000 (id at p. 35). Some background about the insurance industry will illuminate what’s really spurring foreign parts copiers and unscrupulous insurance companies. Ford provides insurance companies with its genuine Ford replacement part pricing for every new
Ford vehicle. Insurance companies use genuine Ford part prices to set their insurance rates. After state regulators approve these rates, insurance companies then refuse to pay for genuine Ford parts and steer body shops to use cheap copycat parts. Most insurance companies don’t tell drivers that they aren’t getting genuine Ford parts unless they are required to do so by state law. Consumers rarely know they’re getting copycat parts. What consumer prefers a copycat part over a genuine Ford part? This entire discussion about consumer choice and rightto-repair is merely a distraction from the basic unethical business practice of pricing insurance premiums using genuine Ford parts and then giving consumers cheap foreign copies. Foreign parts copiers also argue the basic “unfairness” of giving car companies 14-year protection on replacement parts. Let’s look at some basic fairness issues: Proponents want to retroactively reduce the period of design protection for car parts from 14 years to zero. However, Congress recently retroactively extended copyright protection for Hollywood movies to 120 years. If this bill be-
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comes law, a real car would have no protection against copies, but a cartoon car would be protected for 120 years. Somehow all of these “fair use” and “consumer choice” arguments don’t apply to saving American families money when it comes to movies. Foreign parts copiers also suggest that Ford should be able to protect the entire vehicle, but not individual components. Ford protects what’s copied. No one is making copy cars. Even Chinese car companies that were accused of copying didn’t copy everything. They copied the front of one car and the rear of another. The current law allows car companies to protect individual parts and prevents this behavior. This bill doesn’t address patentable subject matter under 35 USC 171, but instead focuses on what is an infringement. It will add confusion to an already unclear area of law. If Ford sells a vehicle having Goodyear tires, are Goodyear’s patents now unenforceable? Can foreign companies freely make specialty equipment parts such as those on a Saleen Mustang™? If a customer resells an automobile with specialty wheels, are those specialty wheel
patents now unenforceable? If Ford sells a vehicle with specialty parts such as a Ford Expedition Funk Master Flex™, are those patents also unenforceable? Proponents for this bill will tell you “a hood is a hood is a hood” and that the aftermarket is required to copy Ford parts by state insurance law. First, a hood is not a hood. If they were, why would foreign manufacturers be making exact copies rather than generic parts that fit Ford cars? Different hoods create a different visual impression and result in different sales for that vehicle. We sell different models of the same cars with different hoods, grilles, and lights to create a different visual impression and to garner more sales. Second, state insurance laws don’t trump federal intellectual property laws. We don’t allow states to create unique forms of intellectual property. And we don’t allow states to invalidate federal intellectual property protection or mandate patent infringement. Foreign parts copiers say that car companies are unwilling to compete. Not only do car companies vigorously
compete with each other for each and every sale, we also compete with salvage and specialty equipment makers on component parts. Beyond that, each of the Detroit 3 have existing restoration part licensing programs where we license our designs, knowhow, and brands to responsible companies that make high-quality parts. Ford has no objection to generic or specialty repair parts. Consumers are familiar with this concept and know what they’re getting when they buy generic razors or cereal. Generic items don’t look like the genuine article. Ford broke new ground and licensed LKQ to make and sell copycat parts. We did this primarily to end a series of very expensive lawsuits and to gain recognition that automobile parts were patentable. We also required LKQ to clearly label copycat parts as “Non-Original Equipment Aftermarket”. Attachment 2 is a sample label that is affixed to every copycat part to clearly distinguish them from genuine Ford parts. We also collect a fee for the use of our patents that we reinvest in new vehicle designs. This settlement gives Ford customers up to
five options when repairing their vehicle. They can buy: 1. a new genuine Ford part 2. a salvaged genuine Ford part 3. an approved restoration part made to Ford specifications (for older vehicles) 4. a generic or specialty equipment part that is not a copy (e.g., SEMA™) 5. an LKQ copycat part not made to Ford specifications This bill won’t give consumers more choices. They have five already. This bill would merely eliminate compensation to the original American designer and spur more foreign copying. “In conclusion, we believe retroactively targeting one group of intellectual property rights for unequal protection would be a dangerous precedent. And it would be particularly so, should it come from the Committee with the role to ensure that these rights are protected. We thank the Congress for taking on the difficult issue of design protection. We encourage it to tackle this issue in-depth and see how intellectual property laws can be used to level the playing field with foreign companies making copycat parts.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 51
ABRA Auto Body & Glass Announces New Vice President and Chief Financial Officer ABRA Auto Body & Glass, a Minnesota-based damaged vehicle repair company and industry leader, announced the appointment of Louis C. Berezovsky as Executive Vice President and Chief Financial Officer reporting directly to Duane A. Rouse, Chief Executive Officer. “Louis’ experience in high-growth companies and his leadership style will be an excellent fit with our growth plans and the ABRA culture,” said Rouse. “His extensive background in finance and acquisitions aligns well with
our national expansion plans and our mission to becoming the leading auto body and glass company in America.” Berezovsky’s experience includes over 20 years in finance and accounting along with 14 years of working in private equity environments and the completion of more than 50 acquisitions. “I am thrilled to be joining an industry leader. This is a tremendous opportunity and I look forward to uncovering a new range of possibilities for accelerating ABRA’s growth in the months and years ahead.”
Berezovsky received his B.S. in Accounting from the Carlson School of Management at the University of Minnesota and is a Certified Management Accountant (CMA). ABRAAuto Body & Glass is dedicated to repairing damaged vehicles right the first time…on time while providing an exceptional customer experience. The company is committed to becoming greener and environmentally friendly and participates in neighborhood activities and local events which continually enhance the community.
LA Police Crack Staged Crash Ring
Louisiana state police arrested four people on January 24 for allegedly staging traffic accidents in Ouachita Parish, LA, according to Claims Journal. Detectives told the Monroe News-Star that they investigated six of 20 crashes where individuals filed false bodily injury claims.State troopers said the insurance companies in two of the six crashes paid out more than $18,000 to the suspects. Seven warrants were signed January 23 and arrests were made January 24. State troopers also said they are still looking for three suspects.
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Guardian Auto Glass Continues Expansion into Colorado Springs Area
Guardian Auto Glass, LLC announced in February that it is expanding its operations into Colorado Springs, Colorado and has named Mark Campos to oversee that growth. The group’s newest facility will be located on Central Park Drive in Colorado Springs. Guardian Auto Glass provides glass repair and replacement services for automobiles, buses, trucks and recreational vehicles and now has more than 50 locations throughout the United States. Campos has more than 10 years of
auto glass retail experience and will be an equity owner and manager in the new Guardian Auto Glass location. “We are excited to begin operations in Colorado Springs with a great team headed by Mark Campos,” said Jerry Ray, vice president and managing partner of Guardian Auto Glass. “Mark will lead our sales effort and Rodney Schroth will provide operations management,” continued Ray. Schroth is currently an equity partner and manager in the company’s Denver operations.
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 53
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www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 55
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GM is Back on Top As the World Number One
General Motors said it is once again the world’s largest automaker with global sales of 9.03 million vehicles for a record $7.6 billion in 2011. That’s 11% higher than Volkswagen. In 2011, Volkswagen took second place with record global sales of 8.16 million, up 14 percent from the year before. But, it seems GM included sales by affiliates and VW did not. Toyota finished fourth in 2011 with 7.9 million vehicles sold. Toyota said in December that it plans to sell 8.48 million vehicles in 2012.
Chrysler Recalls Police Cars
Chrysler Group LLC recalled nearly 10,000 Dodge Charger police vehicles built last year due to overheating issues that may lead to headlamp and brake failure. The recall affects 9,688 Chargers for the 2011 and 2012 model years. The problems could lead to a loss of visibility or braking ability, increasing the risk of a crash, according to a NHTSA posting. In some police cars, the low beam headlights may fail because of an overheated bulb harness connector. In other vehicles, the antilock brake and electronic stability system may stop working due to an overheated power distribution center.
Chrysler Reports First Full Year Profit Since Crisis
Chrysler Group LLC reported a net profit of $183 million for 2011, swinging back into the black from a loss of $652 million in 2010. Higher sales of Jeeps and other new vehicles propelled Chrysler to its first annual net income since 1997, capping a pivotal turnaround that many thought would never happen. Chrysler’s U.S. sales increase of 44 percent last month surpassed eight analysts’ average estimate for a 32 percent sales gain. The company’s free cash flow was $1.9 billion last year, and has forecast a $1 billion free cash flow for 2012.
Nissan Recalls 2012 Versa
NHTSA says 36,608 2012 Nissan Versas failed to comply with the requirements of federal motor vehicle safety standard No. 114 titled “Theft Protection.” NHTSA discovered that due to interference between the shifter rod and the shift knob, the vehicles may be shifted out of the park position without depressing the brake pedal. The agency fears the operator can inadvertently shift the vehicle into gear without the brake pedal being depressed, increasing the risk of a crash or injury to a nearby pedestrian. Nissan told NHTSA it plans to begin notifying owners.
Phoenix Auctions Show Collector Cars’ Comeback
Consumer Reports Says Brand Perception Narrows
KBB Gets New President
DuPont Paint Unit Bidding
SCRS Offers Repairers Digital Member Services E-catalog
China Auto Parts and Service Show to be Held June 2012
RM Auctions were among six major classic and collector car auctions in Arizona in January. Like the rest of the car industry, collector cars are coming back. RM Auctions held its 2012 sale January 19-20 at the Arizona Biltmore Resort in Phoenix, resulting in $25.6 million in sales and a 90% sell-through rate. Their top seller was a 1957 Ferrari 410 Superamerica Scaglietti Coupe at over $1.8 million. Also a 1973 Ferrari 365 GTB/4 Daytona Spyder for $990,000, and a 1959 BMW 507 Roadster for $990,000.
Kelley Blue Book announced Feb. 14 that president Paul Johnson has resigned from his position effective immediately. Taking on the role as president for KBB will be AutoTrader.com vice president Jared Rowe. Rowe is currently vice president of product management for AutoTrader.com in Atlanta, Ga. Rowe’s new role is effective immediately. Kelley Blue Book was acquired by AutoTrader.com in October 2010. Rowe also held positions at Autobytel in business development and at Central Atlantic Toyota Distributors as a service and parts manager.
The Society of Collision Repair Specialists (SCRS) is offering collision repairers its 2012 First Quarter Digital E-Catalog. It includes information regarding SCRS member benefits and information about some of the services repairers can access at a discount as a member of SCRS. “It is our hope that you will find this material to be valuable and relevant by providing you with information on products and services available to SCRS members, from companies whose support throughout the year enables SCRS to represent you on a variety of issues,” said Aaron Schulenburg, SCRS executive director. “If you are a repair facility, we encourage you to share this with your friends and colleagues; if you are with an association, please pass it along to your membership.” Repairers can access the directory at http://www.zmags.com.
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For years, Toyota, Ford, and Honda have been the top names in Consumer Reports’ annual Car-Brand Perception Survey. They are still at the top, but they have seen double-digit drops in their scores. That has narrowed the gap between the top names and other brands. Only two points behind Honda this year was Chevrolet, followed by MercedesBenz, BMW, Volvo, Cadillac, Lexus and newcomer Tesla. “Dramatic events in the automotive industry seem to be affecting how consumers view auto brands,” said deputy editor Jeff Bartlett. DuPont has launched the process to sell its automotive paint unit, according to the Reuters news agency. DuPont is accepting bids for its automotive paint division. The report listed several private equity firms as being interested. It also claimed that Credit Suisse Group, serving as advisers, distributed information material among possible suitors. The business unit could garner more than $4 billion. It was reported in October that DuPont had thought about such a sale, but the latest is that the company has started taking bids. DuPont said it does not comment on rumors or speculation.
China Auto Parts and Service Show 2012, Auto Parts China co-sponsored by major organizers of the Beijing and Shanghai auto shows, will be held at Shanghai New International Expo Centre (SNIEC) in Shanghai, from June 12th to 15th, 2012. The exhibition will take place in SNIEC's new 70,000-square meter N-series pavilion equipped with the most comprehensive modern facilities. The event is expected to attract over 2,000 exhibitors from the auto parts, technical equipment, repair and maintenance and accessories sectors. More than 30,000 industry professionals from the domestic and foreign complete-vehicle OEM sector, auto 4S shops, auto repair, maintenance and refitting shops in the Chinese after market as well as wholesalers, agents and distributors of auto parts are expected to attend. The show aims to leverage the unique position of Shanghai as China's trade hub and one of the world's key trade ports, creating a market-driven international and comprehensive exhibition platform, which provides players in the Chinese auto parts and related industries with access to the country's domestic brands, industry chain-wide services, technologies and trade.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 57
Custom Corner
Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com
Barrett-Jackson DIY Event Draws Fans and Future Body Techs with Rich Evans
I was out at Barrett-Jackson He told me “we’ve got a in Phoenix last month with 12,000 square-foot DIY a good buddy of mine, Alan pavilion” inside a tent and Taylor, from Entertainment we’re going to have a Radio. I wrote about Alan project car there. It doesin last month’s column (aun’t matter to me what car tobodynews.com/columI’m working on because nists/rich-evans.html in regardless I’m going to try case you missed it) but that to do something cool with was about SEMA 2011. In it. When I found out it was Poster Phoenix at the Barrett-Jackan 1972 El Camino I sugson auctions Alan put together somegested a toned-down concept. Something clean, more modern. You know, thing called A World of DIY (as in ‘Do it Yourself’). simplify the car and give it that old Alan reached out to me and asked school look, a couple of rally stripes me to come there and show off some and choose a great color, add some tools and demonstrate building a car. I rims, and we’ve got a car that brings said ‘yes’ without hesitation, “I’ll pack back that 70s feel and some muscle. up some tools and drive out there and I put a concept together, sent it see what you guys have put together.” off to Alan, and he’s got feedback
58 MARCH 2012 AUTOBODY NEWS | www.autobodynews.com
right away. “Dude, can you put this blue color on?”, including a paint photo. We collaborated on a concept and a design. I like working this way because when I get there everybody’s not going to ask me what I’m building (because they’ll already have seen the concept.) I don’t like having to sound like a broken record answering the same question over and over and over. So for the week out there at Barrett-Jackson we’ve got participation from Craftsman, Chevrolet in the tent with us, we’ve got E-bay Motors with the modJOBS 2012 Mustang we did last month and I’ve got my Solution Finish. So this is a good chance for me to get out there, build a car, show off some new tools, some new products and connect with the public
and the garage builders. I didn’t know what to expect for a tool supply for DIY builders so I brought as much as I could cram in my truck and decide to figure it out from there. When we get
there and see the El Camino I’m thinking in my head, you know I’ve built cars on TV in 72 hours in front of millions of people, that’s already been done (Car Warriors). This event will be live, which is cool but I tell Alan “I want to shoot from the hip and see if I
can connect a little bit more with the end user and the garage builders by having the public work on the car.” 3M gave us some products which is great because here’s a chance to put product in people’s hands who haven’t used it before. Craftsman’s also got their tools and equipment there. I’m thinking “what’s better?: someone watching me use their tools or putting their tools in a potential consumer’s hands?” It just makes it that much more real. A lot of people will never know they can or can’t do it if they don’t try. So I’m going to bring some process out here and guide people through taking the car apart, stripping the car down, modifying it, pulling dents, even welding for beginners. I’ve got 8-year-old girls and boys that came up, got their hands on a welder for the first time. Of course I gave them safety equipment— which is also a great learning opportunity for them—and helped them do the job. So they walked in the tent not knowing they were going to weld or pull a dent and they walk out knowing something about how to weld and pull a dent. The look on their faces was ‘how cool is that’? It really took me back to when I was young and somebody introduced something new to me. Exposure to new processes is so important in our business. There are all kinds of ways to build a car and hundreds of different processes, but to learn from experienced builders the process of grinding and feathering and stripping the car down manually is invaluable for someone who’s new to everything. Not just newbies but also connecting with the garage builders. The message to them: If you don’t have it, use what you have because you don’t have to have all that expensive equipment to build a car. Back to the event: The news coverage was over 45 minutes broadcast, with 10 minutes on Channel 3 live, and then they did a 6 minute piece at night and then we did Channel 12, 5, CNN. If you search ‘Barrett-Jackson DIY Rich Evans’ on Youtube, you can watch a 2-minute piece that they put together. If you go to DIYlive.tv, we’ve got many segments on there. If you click through that site you can see all the people that participated. Craftsman, GM, 3M, Solution Finish, we had new types of nail guns available, we had a panel bonding product out there from 3M, different types of sandpaper, Bondo™, the dynamic mixing system, all sorts of products.
We had a group of Wyotech guys out there. WyoTech provides students with repair training in automotive technology, autobody, diesel, HVAC, chassis fabrication and high performance engines, street rod and custom builds. John and his crew—there were about five people from Wyotech there—were all heavily involved with the project.
The Crew from Wyotech
Equipment was a factor. We only had one air hose and one welder so we could only go so fast, which was actually good. We could control and
make sure everybody’s getting taught and stay safe. The whole concept of DIY at the show was a hit. I heard Barrett-Jackson’s head count through the door was 27% more than any other year. So they set records. The news coverage and the big hype about ‘hey come on out, get your hands dirty, help build this car.’ The car really was being built by the public and everybody there was invited to get involved. Everybody who came by touched or fixed a dent or welded a hole, or pulled a part off or sanded on it. They’re part of this build. It was great to see them all building the car, not just me. These photos tell the story too but to best appreciate this whole idea that Alan made happen, you have to go visit DIYlive.tv to see video of everyone that was involved with this build. It was so successful we’re going to be doing more of these. I’ll let you guys know more about it, or just follow us on DIYlive.tv. You can also go to richevansdesigns.com or huntingtonbeachbodyworks.com.Also, go to solutionfinish.com or watch our video on Youtube by searching ‘Solution Finish Rich Evans.’ The types of projects I’m doing this year are really connecting with the end-users and trying to bring my world to their world. It’s just so rewarding to see an 85-year-old woman
pulling dents, or an older dentist jumping in and working on the car. Also, they’re able to go home and take the techniques and steps that I taught them and actually be able to work on their own car. So with all that said, another great project, you’re going to hear more about it, we’re going to continue to tour this car to the next two or three Barrett-Jackson shows. I don’t have details on those yet but we’ll definitely be in Orange County and Las Vegas. So if you guys get a chance stop into the DIY Pavilion Craftsman Experience and check us out on the road. We’re going to be taking this car—stripping it down, cutting the roof off of it, painting it, cutting rust off of it, dropping an LS9 motor in it that Chevy has donated (the LS9 crate motor costs about the same as a base 2010 Ford Mustang) and Steel Rubber donated the rubbers for the car. 3M donated the product for the car. Craftsman provided the tools for the vehicle. We’ve got Woodward Fabrication teaming up with us along with a whole other list of sponsors and equipment so it’s going to allow us to really travel around and let people get involved and connect with more garage builders. So I’m really pumped up about this. I’m working on a new TV show so stay tuned. Go to Rich Evans Designs’ Facebook page, and like it, that way you can keep up with everything I’m doing. I went to the Grand National Roadsters Show, I did the NHRA, and I’m heading up to the Autorama in Sacramento, which I haven’t been to since I was 6 years old. I had some time in Sacramento and last year when I did CarWarriors I connected with a shop called Gearhead Garage. They actually beat us Allstars on the Corvette builds and I’m going to go up and visit them. They’ll have the Corvettes we did on the show there. That’s my old stomping grounds and I’m going to have a blast. 2012 is going to be a great year. I’m going to be traveling, building cars on the road, doing all kinds of cool stuff. I never know what’s around the corner for me. I’ll keep you guys posted on the DIY experience. Go to DIYlive.tv to learn more about it. Also search ‘Barrett-Jackson DIY Rich Evans’ on Youtube and watch that two minute clip. I think you guys will be stoked to see that. You can also see all the news coverage on DIYlive.tv. Keep wrenching. Keep building. I’ll see you guys next month.
www.autobodynews.com | MARCH 2012 AUTOBODY NEWS 59
Insurance Auto Auctions to Sell Salvaged Vehicles Directly to China, Could Impact U.S. Supply
Insurance Auto Auctions (IAA), a wholly owned subsidiary of KAR Auction Services, announced an agreement with Chen Jia, which will import U.S. salvage vehicles to China for recycling. This is expected to impact the number of salvage vehicles available to U.S. rebuilders and repairers. Chen Jia is a wholly owned subsidiary of Jiangsu Chenlong Resource Recycling Development Co. Ltd. in Zhangjiagang, Jiangsu, China. Chenlong Recycling is one of the first companies to obtain one of only a few recycling permits from the Chinese government, IAA said. “This agreement helps us achieve our growth strategy by expanding our global buyer base in a region with a fast-growing need for scrap metal,” said Tom O’Brien chief executive officer at Insurance Auto Auctions, Inc. “We are pleased that our long relationship with Chen Jia has added tangible value for vehicle sellers at our auctions. Their initial purchases at our locations along the West Coast have already created increased competition for vehicles and may eventually expand throughout the greater United States.” In 2008, when IAA first met with Chenlong Recycling in China, plans were drawn for them to build a multi- million dollar recycling center in Zhangjiagang. Today, the recently completed facility is capable of processing hundreds of thousands of tons of scrap iron. They are the first in China to complete the installation of a shredder built specifically for the processing of scrap steel that includes automobiles coming from the United States and other countries. Through this new agreement, IAA has the ability to be a major salvage provider to this operation - specifically, lowerend vehicles for the purpose of recycling. “There are several reasons why we chose IAA, including their 30 years of expertise in the salvage auction business and their global outlook,” said Gu Long Sheng, President of Jiangsu Chenlong Resource Recycling Development Co. Ltd. “The management team at IAA has been dedicated to seeing scrap vehicles legally enter the China market and their support of our efforts has been both encouraging and instrumental in helping us shape our business model in the U.S. Second, IAA is clearly a market leader and our relationship with them will help ensure our ability to source the salvage vehicles we need to meet our production demands.” One of the best results of recycling metal from salvage vehicles is
that it saves energy, conserves natural resources, and enables steel production with low pollution levels. According to the Institute of Scrap Recycling Industries, recycling one car conserves 2,500 lbs. of iron ore, 1400 lbs. of coal and 120 lbs. of limestone. Until recently, Chinese government laws prohibited the import of salvage vehicles from the United States into mainland China. Today, this recycling project is supported in China by the environmental protection body of the Chinese government. For the past 30 years, Insurance Auto Auctions has continued to develop and cultivate a mature and global customer buyer base in more than 100 countries. Its buyers include automotive body shops, rebuilders, used car dealers, automotive wholesalers, exporters, dismantlers, recyclers, brokers, and where allowed, non-licensed (public) buyers. IAA buyers have access to six languages through IAA's Auction Center including: English, Mandarin Chinese, Spanish, French, Polish and Russian. In addition, the IAA Buyer Services group is fluent in 10 languages to assist global buyers. An estimated 30 percent of IAA’s vehicles are sold and exported to foreign countries, which further strengthens its philosophy of choice and flexibility with “anywhere” access and mobile technology. IAA’s business model includes in-person and online auctions. IAA offers clients access to a comprehensive salvage auto auction network, and allow them to purchase in a manner that best suits their needs. IAA aims to offer end-to-end solutions and standardized quality assurance practices at its nearly 160 locations. IAA experts are on hand at each branch location to assist buyers and sellers. IAA follows strict regulatory compliance at the federal and state levels and is well versed in all state titling laws as well as buyer and seller licensing. For more information visit: www.iaai.com.
NABC Plans At Least One Vehicle Gift in Each State This Year
The National Auto Body Council’s (NABC) Recycled Rides® program, now in its sixth year, set a goal to gift at least one vehicle in every state in the country in 2012. NABC member collision repair facilities nationwide have provided hundreds of families and service organizations with the gift of reliable transportation. “So many of us take our transportation for granted,” noted NABC Executive Director Chuck Sulkala, “but the fact of the matter is, reliable transportation is more important than ever in these tough economic times. A dependable vehicle literally can provide a family a new lease on life.” In an effort to build upon Recycled Rides’ growth, the NABC is slightly refining its marketing approach. “This year, along with working directly through shops, we are reaching out to individual charities to help them meet their missions,” said incoming Recycled Rides Chair Jim Ocampo of DuPont Performance Coatings. “You could say that we’re working the program in reverse.” Indicative of this new approach is the fact that Donna Miller has joined the NABC’s Recycled Rides commit-
tee as the liaison between NABC and Family Promise, a charitable organization with 172 affiliates across the U.S. that is committed to help homeless and low-income families achieve sustainable independence. The year began auspiciously on January 11, 2012 during the National Auto Body Council’s fundraising golf tournament held in Palm Springs, Calif. Thanks to Pacific Collision and Hertz Rent-A-Car, and working through Variety Children’s Charity, Recycled Rides donated a 1999 Ford Freestyle crossover wagon repaired at the end of 2011. “Participating in the Recycled Rides program this year was a great experience for our entire team,” said Steve Vetel, owner of Pacific Collision Centers. “Having the ability to help a family in need gave everyone in our organization a great sense of pride and accomplishment. We look forward to participating in future gifting events.” The first Recycled Rides vehicle repaired in 2012 has been donated by GEICO Insurance and has landed at Caliber Collision Centers in Round Rock, Texas. It is being refurbished for the Temple, Texas Family Promise affiliate.
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U.S. Auto Industry Bullish on 2012, Sales up 11%
2012 is off to a good start for the U.S. auto industry as reported sales for January outpaced the best industry forecasts. Sales overall were up 11% at an annualized rate of 14.2 million units, the best since August 2009. Chrysler Group was up 44% and Ford Motor up 7.3%. GM sold the most units but sales declined 6%. VW Group was up 40%. The disasters in Japan seem to be digested with Mazda up 68%, Toyota up 7.5%, Honda up 9.3% and Nissan up 10%. Hyundai-Kia is up 20%.
California Law Demands More Low Emission Vehicles
The California Air Resources Board (CARB) called for a steep ramping up of zero- or very low-emission vehicles sold in state from 2018 onward. The goal is for them to comprise 15.4 percent of all vehicles sold by 2025, up from less than 1 percent today. The ruling called for a slashing of tailpipe emissions from the rest of the passenger vehicle population beginning sooner in 2015 and extending through 2025. At least one of every seven vehicles sold will be a plug-in hybrid, extended-range electric vehicle or pure battery-electric vehicle, or BEV.
Chevy Volt Sees Stalled Momentum, Also Optimism The Chevy Volt hasn’t quite caught on as expected by many. Although GM has plans and could produce as many as 60,000 Volts in 2012, GM will adjust production at the Hamtramck plant in Detroit to meet demand. Of the planned 60,000, about 75% or 45,000 are for the U.S. and the rest for Europe, built as the Opel Ampera, and China. GM has said they still don’t have a clear sense of how much demand there is for battery-electric vehicles. the government closed its investigation of post-crash fires in Chevrolet Volt batteries after further testing proved the changes General Motors has implemented better protect the batteries. GM announced in early January that it would retrofit 14,735 Volts already built and make permanent changes on the Volt assembly line at the DetroitHamtramck plant. In January GM boss, Dan Ackerson, faced Congress to defend the car and calm safety concerns. He also firmly stated that the car was engineered with plenty of technology and safety but was “not engineered to be a political punching bag.” GM is running full page newspaper ads and TV spots in a reputationrebuilding effort for the Chevy Volt.
MOPAR Celebrates 75th Anniversay, 4 New Models
Feds Escalate Jeep Airbag Investigation
Honda’s Ridgeline Recall
Second Toyota Driver’s Door Fire Probe Launched
MOPAR, Chrysler’s parts division, celebrated it’s 75th anniversary at their Performance and Accessory Lab in Center Line, MI with famous drag racer, “Big Daddy” Don Garlits blowing out the candles on the cake. MOPAR’s first branding was on antifreeze in 1937. Inspiring a great deal of loyalty, there are more than 400 MOPAR clubs worldwide. Four new special edition Mopar vehicles were unveiled, including the Chrysler 300, Fiat 500, Jeep Compass and even the 2013 Dodge Dart, not in showrooms yet.
Honda is recalling certain 2011–2012 Ridgeline vehicles for a discrepancy between the spare tire and the information on the vehicle’s tire information label. Honda Ridgeline trucks sold in the United States are fitted with a compact spare tire and, in some cases, placards may incorrectly indicate that the Ridgeline came with a full-sized spare tire. Honda will either provide Ridgeline owners with a spare that will match the information provided on the vehicle’s placard or it will install a new placard that reflects the spare tire installed by the factory. Tire pressure may not be correct.
The Jeep Liberty SUV is getting greater scrutiny from Federal safety regulators after 50 people reported they were hurt when the air bags inflated without involvement in a crash. The NHTSA started investigating Liberty SUVs from the 2002 and 2003 model years in September. There have now been 87 complaints, with 50 of them resulting in injury. Chrysler hasn't been able to nail down a single cause of, or even a single protocol for the problem; the airbags have deployed on startup and when the car is running.
Federal safety regulators are investigating fires in the driver’s side doors of Chevy TrailBlazers, the second such probe within a week. The latest inquiry involves more than 309,000 TrailBlazer SUVs from the 2006 and 2007 model years. The fires began in the power window switch or related electrical parts, the NHTSA said. U.S. safety regulators had opened aninvestigation into consumer complaints of driver’s side door fires in 2007 model year Toyota Camry sedans and RAV4 crossover SUVs.
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Continued from Page 48
I-CAR Tech
alone. Anti-corrosion compound, applied as a mist coat using a wand inserted through access holes or from the end of a rail, is designed to protect enclosed areas from corrosion (see Figure 1). The proper application technique should treat the backsides of the welds. Excess material should creep into the flange areas, sealing off those areas from moisture. At least one vehicle maker, Chrysler LLC, recommends a double application of anti-corrosion compound (see Video at www.i-car.com). Visit i-car.com to view the referenced video where Chrysler Collision Repair Manager Doug Craig explains that Chrysler recommends applying two coats of anti-corrosion compound. Do Not Use Self-Etching Primer It is still recommended to not use selfetching primer inside enclosed areas, because it doesn’t form a barrier like epoxy primer and would eventually
break down. Self-etching primer must be coated with another product, and it would be difficult to see inside an enclosed area whether or not the primer is completely coated by the anti-corrosion compound.
Conclusion The recommendation to apply epoxy primer followed by anti-corrosion compound inside an enclosed area is not included in the updated I-CAR course, Corrosion Protection (CPS01). When using this two-step process, the surfaces must be cleaned for the primer to properly adhere. The more general recommendation is applying anti-corrosion compound alone. The instructor-led (live) I-CAR course, Corrosion Protection (CPS01), has been refreshed. It includes updated manufacturer recommendations, as well as an updated presentation. Watch for this course in your area. For course details and to register, visit the I-CAR website. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.
Diamond Standard Launches Website for ASA Members A website meant to support the $40 million Security Shield Product Liability Protection benefit for ASA members is now live. The site provides convenient access to the full program content including background, coverage, a limited lifetime warranty statement and a convenient “Certificate of Coverage” download feature. This blanket protection, as co-insured under Diamond Standard Parts LLC, is automatically extended to ASA members and does not require individual registration. The website is a result of a recent ASA/Diamond Standard strategic alliance to provide ASA members expanded product liability protection from Diamond Standard. The significant member protection benefit of product liability coverage is intended as added security against the unlikely scenario of personal vehicle-owner injury directly related to use of Diamond Standard parts in the repair. ASA members may access the site at www.diamondstandardsecurityshieldASA.com.
Call (800) ASA-SHOP (2727467), ext. 361, to speak with an ASA representative about the benefit or to obtain access information or visit www.asashop.org for more information.
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