March 2021 West Edition by Autobody News

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GM to Idle 3 Plants in North America Due to Semiconductor Shortage by Jamie L. LaReau, Detroit Free Press

General Motors is idling three of its assembly plants in North America and running a fourth in South K orea at half capacity for one week as it struggles with the ongoing semiconductor shortage that has already impacted production at Ford Motor Co., Stellantis and others globally. On Feb. 8, GM will idle the following plants which run two shi ts for a week: • Fairfax Assembly and Stamping Plant in K ansas City, K S: About 2,000 hourly workers build the Chev-

rolet Malibu sedan and Cadillac X T4 SUV • CAMI, Ingersoll, Ontario Canada: About 1,500 hourly workers build the Chevrolet Equinox SUV • San L uis Potosí , Mexico: GM builds Chevrolet Equinox and Trax and GMC Terrain SUV s Some related GM plants that supply engines and other parts to the plants to be idled may be minorly impacted. For example, the engine plant at GM’s Spring Hill Assembly complex will reduce a shift on one See Semiconductor Shortage, Page 20

States Revive Push for Virus Liability Protections for Employers by Chris Marr, Bloomberg Law

More than a doz en states at the start of the 2021 legislative season are renewing a push to shield businesses from lawsuits over customers’ or employees’ COV ID-19 exposure. From Florida to Montana, state lawmakers have declared liability protections to be a top priority this year. Republican lawmakers are mostly leading the charge, but in a few cases they’re coordinating with Democratic legislators or governors. If these states enact liability shields, they would j oin more than a

doz en others that did so in 2020. These state laws broadly shield all or most types of businesses from coronavirus-related liability lawsuits, unless a plaintiﬀ can show the co pany was grossly negligent or guilty of intentional misconduct. After a federal proposal championed by Senate Republicans failed to win approval, the attention is back on the states and expected to stay there, now that Democrats will control both chambers of Congress and the White House as of J an. 20. “ We do not anticipate liability See Virus Liability Protections, Page 26

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President Biden Signs Executive Order to Strengthen Buy American Act Provisions by Roger Abbott and Karl Means at Miles & Stockbridge P.C.

On J an. 25, President Joe Biden issued an executive order on Ensuring the Future Is Made in All of America by All of America’s Workers. The order is part of his “ Build Back Better Recovery Plan” to strengthen American manufacturing and has potentially far-reaching effect. The order will tighten the federal government’s requirements to buy American products, support American j obs and rationaliz e the enforcement of the country’s patchwork of

“ Made in America” laws. Companies that supply goods and services to the federal governent ay no longer benefit ro statutes like “ Buy American.” The J an. 25 order will tighten agencies’ purchasing by increasing domestic content requirements and close loopholes for determining country of origin under Made in America laws. o panies that benefit ro domestic preferences now must re-examine whether they will continue to benefit under the proposed new regulations. Contractors and subcontracSee Buy American Act, Page 24

Proposed CA Bill Erroneously Includes Body Shops by Ed Attanasio

Every year at this time, Jac k Molodanof , a registered lobbyist for the California Autobody Association (CAA) and president of Molodanof Government Relations in Sacramento, CA, begins the process of reviewing hundreds of proposed bills. He needs to identify the ones that can potentially affect the collision repair industry, either positively or, more importantly, negatively. One particular bill, introduced by Assemblymember Miguel Santiago, immediately caught Molodanof’s attention for all the wrong reasons. “ AB 294 was introduced this year and is sponsored by the insurance co panies he said. t s definitely a big one, for the automotive repair industry, especially for auto body shops. “ It will create a new regulatory board for towing and storage companies under the California Departent o onsu er ffairs . Unfortunately, the bill is overly broad and captures auto body shops that are already heavily regulated by

the Bureau of Automotive Repair (BAR.) In addition, it prohibits auto repair shops from charging reasonable rates for storage. “ The bill weakens consumer protections and hurts small businesses, by stripping the BAR of its expertise and authority to regulate auto repair shops’ ancillary storage issues,” he said. “ It creates a new V ehicle Towing & Storage Board within DCA to oversee and enforce towing and storage issues in the state. “ This new board is overly broad and would place automotive repair dealers (ARDs), that charge ancillary storage, under separate regulatory j urisdiction.” It’s simply unnecessary to include ARDs in the bill because they are already subj ect to BAR oversight, Molodanof said. “ ARDs are not in the towing and storage business. The auto repair industry is in the business to diagnose, perform maintenance and repair vehicles,” he said. “ Storage service is ancillary to auto repair shops, but usually only comes into play on total loss See Proposed CA Bill, Page 18

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CONTENTS REGIONAL

C.A.R.Score Now on CARFAX Report .................18

2020: Another Successful and Productive

Caliber Makes Forbes List of Best Large

Year for CAWA ...............................................12 Amazon’s Rivian Custom Electric Delivery Vans Are Hitting the Road ................................6 California Opens Second Round of Small Business COVID-19 Relief Grants ..................10 California Pay and Workforce Reporting

Employers ....................................................54

Advertise in our Classified Section for $50 per column inch!

800-699-8251

CCC Information Services Inc. Merges,

ltedesco@autobodynews.com

AUTOBODY

Will Go Public ................................................63

www.autobodynews.com

Certified Collision Group Announces Significant Start to ‘21 ..................................58 Collision Industry Mourns the Loss of

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

American Icon Automotive Finishes ................. 20

Kearny Mesa Subaru-Hyundai ......................... 43

Audi Wholesale Parts Dealers .......................... 51

Kia Downtown Los Angeles ............................. 10

AutoNation Collision Parts ............................... 13

Kia Motors Wholesale Parts Dealers ...........52-53

AutoNation Infiniti Tustin ................................. 34

Kia of Carson .................................................. 26

Wage in California? .......................................42

AutoNation Roseville ......................................8-9

Kia of Irvine .................................................... 35

COLUMNISTS

Hyundai Isn’t Building the Apple Car After All .....50

BMW Wholesale Parts Dealers ........................ 59

Larry H. Miller Chrysler-Jeep-Dodge-Ram ....... 30

Anderson - How to Improve Paint Materials

Industry Members Share Their Predictions

Car Pros Kia .................................................... 38

LKQ Corporation ............................................... 5

Car Pros Kia Renton ........................................ 42

Malco ............................................................. 19

CARSTAR ........................................................ 21

Mazda Wholesale Parts Dealers ...................... 58 Mercedes-Benz Wholesale Parts Dealers ........ 58

California Supreme Court Rejects Ridesharing Appeal Case ..............................10 CARSTAR Port Orchard Opens in Washington State ............................................6 Coalition Withdraws from Lawsuit .......................6 Crash Champions Rebrands All Southern

Bano Ramirez ...............................................62 COVID’s Impact on Insurance Pricing, Coverage & Digital Trends .............................63 Distracted Driving Trend Persists Despite Passenger Complaints ..................................62 Edmunds Experts Forecast 15.5 Million New Vehicles Will Be Sold in 2021 ................60

California Fountain Valley Bodyworks

Ford, Google Partner ...........................................4

Locations ......................................................16

GM to Idle 3 Plants in North America Due

Davis, CA, Men Arraigned After Auto Insurance Fraud ............................................11 Nevada Looking to Close Classic Car Loophole..19

Reimbursement ............................................34 Attanasio - Social Media Strategist Identifies

to Semiconductor Shortage.............................1 Herb Lieberman—A Life of Service ...................44 How Can a Rookie Tech Survive on Minimum

for the Year ...................................................60 Jeff Peevy Shares Growth Plans Related to

INDEX OF ADVERTISERS

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Griffin Reinhard, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Portal to Open Feb. 16 ..................................11

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

Keys to Your Body Shop’s Online Success .....51

I-CAR Tech Center .........................................48

CCC Information Services Inc .......................... 25

Chess - The Numbers Game; Are You Winning?...28

Kia Niro EV Winner in Ownership Study .............63

Certified Automotive Parts Association ............ 12

Michael Hohl Motor Company ......................... 40

Phillips - COVID-19 Vaccinations in the

Merchants Fleet to Buy BrightDrop EVs .............59

Classifieds ...................................................... 62

MINI Wholesale Parts Dealers.......................... 59

Nearly 600 Hydrogen Fueling Stations

Colortone Automotive Paints ........................... 28

MOPAR Wholesale Parts Dealers ..................... 37

Courtesy Chevrolet San Diego ......................... 27

Nissan/Infiniti Wholesale Parts Dealers............ 61

Cutter Chrysler-Dodge-Jeep-Ram ................... 24

Parker LORD ................................................... 11

DCH Chrysler-Dodge-Jeep-Ram-Fiat............... 16

Porsche Wholesale Parts Dealers .................... 46

Eckler’s Automotive ........................................ 31

Reno Buick-GMC ............................................ 30

Equalizer Industries, Inc .................................. 18

Sandberg Volvo Cars ....................................... 44

FH Dailey Chevrolet......................................... 44

SATA Dan-Am Company .................................. 29

Ford Wholesale Parts Dealers .......................... 57

Sherwin-Williams Automotive Finishes .......14-15

Future Nissan of Roseville ............................... 36

Sierra Chevrolet-Honda-Subaru ...................... 39

at Its Own Service Centers ............................50

Galpin Motors ................................................. 49

Spanesi Americas ........................................... 41

2021 SEMA HoF Nominations Open ..................58

Toyota Remains R&D Patent Leader ..................16

Garden Grove Kia ............................................ 35

Steck Manufacturing Company ......................... 6

ABRA Auto Body Repair of America Adds

U.S. Electric Vehicle Market Poised for

Glenn E. Thomas Dodge-Chrysler-Jeep ............. 2

Subaru Wholesale Parts Dealers...................... 55

GM Wholesale Parts Dealers ........................... 47

Sunmight USA ...........................................22-23

Workplace: What to Consider for Your Collision Repair Facility .................................38 Sisk - ASA Northwest Hosts ASE for State of Collision Education Discussion ..................55 Sisk - CIECAST Prepares Collision Repairers for the EV Revolution.....................................36 Yoswick - Forecast: Expect More Private Equity Coming Into the Industry ....................47

Launched in 33 Countries .............................46 President Biden Signs Executive Order to Strengthen Buy American Act Provisions .........1 President Biden: We’ll Replace Entire Fleet of Federal Vehicles with EVs ............................4 States Revive Push for Virus Liability Protections for Employers ...............................1 Tesla Will Now Handle Collision Repairs

NATIONAL

Four New Facilities .......................................60 ASE Announces New Officers, Board Members..18 asTech Device Supports GM Network ................18 Auto Thefts Surge In 2020, National Insurance Crime Bureau Reports ...................................59

Record Sales in 2021: Edmunds .....................4 US Department of Labor Issues Stronger

Honda-Acura Wholesale Parts Dealers .......32-33

The Bay Area Automotive Group ...................... 45

Workplace Guidance on Coronavirus .............27

Hyundai Wholesale Parts Dealers .................... 54

Volkswagen Wholesale Parts Dealers .............. 50

WIN Calls for Board of Director Candidates........35

Industrial Finishes and Systems .................. 7, 64

Volvo Wholesale Parts Dealers ........................ 40

WIN Scholarship Open for Applications..............56

Insta Finish ..................................................... 17

autobodynews.com / MARCH 2021 AUTOBODY NEWS 3

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President Biden: We’ll Replace Entire Fleet of Federal Vehicles with EVs by Tom Moloughney, Inside EVs

President Joe Biden isn’t wasting any time in making his policy clear on electric vehicles. In a speech J an. 25, less than one week into his presidency, Biden announced he plans to replace all federal vehicles in service with domestically-made EV s. According to the General Service Administration’s 2019 Federal Fleet Report, that’s a total of 645,000 vehicles. However, the president didn’t lay out any plans or timeline whatsoever, only a co it ent to transition the eet to z ero-emission electric vehicles. “ Together, this will be the largest mobiliz ation of public investment and procurement infrastructure and R&D since World War II,” Biden said. Biden also added that all of the electric vehicles would be domestically made, which would narrow down the choices when ordering replacement vehicles. Tesla Model 3s have already proven to make great police cruis-

ers for some departments willing to give the vehicle a chance. It appears to be paying oﬀ as the Bargersville Police Department in Indiana announced the Model 3 saved $6,750 in only one year of service, as compared to a Dodge Charger cruiser.

Mail delivery vehicles are perfect candidates for electric vehicles because they have set routes, do a lot of stop-and-go low-speed driving and in many instances don’t need to cover many miles to complete their daily route. The 140,000 federal mail

“Together, this will be the largest mobilization of public investment and procurement infrastructure and R&D since World War II,” — Joe Biden We can only imagine how much the government would save by replacing more than half a million ehicles with e cient E s. Nearly 22% of the vehicles in the ederal eet are ail truc s which are long overdue for replacement. The average age of a Grumman mail delivery truck is 28 years, and they lack basic essential functions of modern vehicles including airbags, anti-lock brakes and air conditioning.

trucks currently in service should be the ﬁrst eet to be con erted. If we take Biden’s announcement literally, then we have to assume he means he’ll be ordering a new all-electric presidential limo, aﬀectionately nown as he Beast.” Perhaps it will be a custom stretched Hummer EV -based Cadillac SUV ? We thank I nside E Vs f or reprint permission.

Ford, Google Partner Ford and Google announced Feb. 1 a unique strategic partnership to accelerate Ford’s transformation and reinvent the connected vehicle experience. Ford has also named Google Cloud its preferred cloud provider to leverage Google’s world-class expertise in data, artiﬁcial intelligence and achine learning M . s part o this new si -year partnership beginning in illions o future Ford and L incoln vehicles at all price points will be powered by Android, with Google apps and services built-in. To drive ongoing innovation, Ford and Google are establishing a new collaborative group, Team Upshift. L everaging the talent and assets of both companies, Team Upshift will push the boundaries of Ford’s transformation, unlock personaliz ed consumer experiences and drive disruptive, data-driven opportunities. This may include proj ects ranging from developing new retail experiences when buying a vehicle, creating new ownership oﬀers based on data and more. Source: Ford, Google

U.S. Electric Vehicle Market Poised for Record Sales in 2021: Edmunds Electric vehicle sales are poised to hit their highest level on record in 2021, according to the car shopping experts at Edmunds. Edmunds data shows EV sales made up 1.9% of retail sales in the U.S. in 2020; Edmunds analysts expect this number to grow to 2.5% this year. “ After years of speculation and empty promises, 2021 is actually shaping up to be a pivotal year for growth in the EV sector,” said Jessic a C aldw ell, Edmunds’ executive director of insights. “ We’re not only about to see a massive leap in the number of EV s available in the market; we’re also going to see a more diverse lineup of electric vehicles that better re ect current consu er preferences. “ And given that the new presidential administration has pledged its support or electriﬁcation the U.S. is likely to see incentive programs targeted at fostering the growth of this technology further.” Edmunds analysts anticipate 30 EV s from 21 brands will become available for sale this year, compared to 17 vehicles from 12 brands

in 2020. otably this will be the ﬁrst year these oﬀerings represent all three maj or vehicle categories: Consumers will have the choice among 11 cars, 13 SUV s and six trucks in 2021, whereas only 10 cars and seven SUV s were available last year.

This diverse spread of EV oﬀerings should help encourage stronger loyalty among EV owners, which has dwindled over the years as shoppers have gravitated toward larger vehicles. According to Edmunds data, 71% of EV owners who didn’t buy another EV traded in their vehicle for a truck or SUV in 2020, compared to 60% in 2019 and 34% in 2015. ericans ha e a lo e aﬀair with trucks and SUV s, to the detriment of EV s, which have until recently been mostly passenger cars,”

said Caldwell. “ Automakers should have a much better shot of recapturing some of the EV buyers who they e lost now that they can oﬀer larger, more utilitarian electric vehicles.” Edmunds analysts note that this infusion of fresh new products comes at a time where the market is also seeing a positive shift in consumer interest in EV s. According to Google Trends data, consumer searches for electric trucks and SUV s have recently hit a high point after trending upward for years. esides aﬀordability one o the biggest barriers to increased EV sales has simply been tepid consu er reception it s been tough for companies that aren’t Tesla to crack the code of how to get shoppers hyped up for these vehicles,” said Caldwell. “ But in the past year we’ve seen automakers throw huge advertising dollars behind their EV launches in an attempt to drum up some buz z , and it’s promising that consumers seem to at least be more aware of the options out there.” As more consumers look to EV s as a possibility for their next

car purchase, Edmunds experts emphasiz e that shoppers should take extra time to consider their alternatives and do their research. “ Buying an EV is an entirely diﬀerent beast than a traditional car purchase, so extra research and diligence are key,” said I v an D ru ry, Edmunds’ senior manager of insights. “ Range and weather conditions play a huge factor in determining whether certain EV s make sense for your everyday needs, and whether you own a home with a garage or rent an apartment could affect your charging situation. “ Federal and state tax incentives are at play with these purchases. And with a number of manufacturers following Tesla’s direct sale model, there might not be opportunities to take a test drive, or even to trade in your current vehicle, like you would at a traditional dealership.” Source: Edmunds

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Coalition Withdraws from Lawsuit The Coalition for Sustainable uto oti e egulation a group supporting a single, national fuel economy standard, released a statement Feb. 2, after it withdrew from a lawsuit between California and the federal government. “ CSAR chose to intervene in a lawsuit between California and the federal govern ent to support a unified fuel economy and greenhouse gas program,” the statement said. “ We are aligned with the Biden Administration’s goals to achieve year-over-year improvements in fuel economy standards that provide meaningful climate and national energy security benefits reduce e issions and promote advanced technologies. “ In a gesture of good faith and to find a constructi e path forward, the CSAR has decided to withdraw from this lawsuit in order to unify the auto industry behind a single national program, with ambitious, achievable standards.” Source: CSAR

CARSTAR Port Orchard Opens in Washington State CARSTAR, North America’s largest multi-store network of independently owned collision repair facilities, announced the opening of CARSTAR Port Orchard, located at 2005 Sidney Ave., Port Orchard, WA 98366. This is the second CARSTAR facility for husband and wife duo Pat and W endy Mu rray, as well as Pat’s brother Tom. They are excited to add Pat and Wendy’s son, K yle Mu rray, as an owner to this second facility. Wendy’s parents owned a CARSTAR collision repair center in its early days and since then, the Murrays continued their legacy within the CARSTAR family. “ This has always been a family business for us, as we run it alongside my brother Tom and his wife,” said Pat Murray. “ We are thrilled for our son K yle to be as interested as we are in the business and he is now the general manager for both locations. Because we’re a family business, we sincerely j ust want to help our community with our premier repair abilities and make sure they are comfortable entrusting us with their vehicles.”

CARSTAR Port Orchard is an 11,000-square foot facility equipped with the industry’s latest tools to provide the highest level of excellence in repair quality.

The facility also has its I-CAR old certification an achie e ent that requires significant in est ent and training into a store’s operation, to ensure repairs of all makes and models are done correctly. “ Oftentimes a vehicle is the second most expensive purchase a person makes in their lifetime, only behind a home,” said D ean F isher, collision group president, Driven Brands. “ Our network of owners is trained to educate customers about the repair process so they eel confi-

dent in leaving this valuable investment in the hands of a CARSTAR facility.” he Murrays ade a signiﬁcant investment into the building to ensure CARSTAR Port Orchard represented their values and commitment to repair excellence. e deﬁnitely want to ta e a moment to shout out to the people of Port Orchard,” said Murray. “ Everyone has been supportive and encouraging telling us they are happy to see the positive changes we have made to the area. We feel very welcomed by Port Orchard already and are e cited to o cially be a part o this community.” Please j oin us in celebrating the opening of CARSTAR Port Orchard! C A RSTA R Port O rc hard 2005 Sidney Ave. Port Orchard, WA 98366 - 7 8 a.m. to 5 p.m. Monday through Friday For more information on CARSTAR, visit CARSTAR.com. Source: CAR ST AR

Amazon’s Rivian Custom Electric Delivery Vans Are Hitting the Road by Steven Loveday, Inside EVs

According to Amaz on, its deliveries in certain L os Angeles area neighborhoods may look and sound different going forward. This is because Amaz on has begun testing the Rivian electric delivery vans on routes. A year ago, Amaz on announced the purchase of a whopping 100,000 delivery vans to be produced by Rivian. The vehicles were part of the online retailer’s “ Climate Pledge.” Amaz on is also one of many maj or investors in the startup electric pickup truck maker. Not long ago, Inside EV s shared images and video of one of the Amaz on/Rivian electric vans out delivering packages, but now it has new details directly from Amaz on. The company says more people should expect to start seeing the electric vans as it plans to add the electric eet to new cities in . O er the next few years, Amaz on expects to have tens of thousands of the Rivian-made electric vans out delivering. Director of Amaz on’s Global Fleet and Products Ross Rac hey was quoted in Amaz on’s transpor-

tation blog.“ We’re loving the enthusiasm from customers so far—from the photos we see online to the car ans who stop our dri ers or a firsthand look at the vehicle,” Rachey said. “ From what we’ve seen, this is one of the fastest modern commercial electrification progra s and we’re incredibly proud of that.” hen a on first partnered with the electric truck maker, Rivian CEO RJ Sc aringe made it clear one of Rivian’s goals is to make products the world doesn’t already have. He pointed to the Amaz on delivery van as a key example. Amaz on and Rivian have been out testing the electric vans for four months. Now, it’s time to move on to actual customer deli eries. he current eet o i ian vans was manufactured at the company’s Michigan studio. The electric vans can travel up to 150 miles on a charge. Amaz on has already started prepping its facilities for the vans and adding thousands of charging stations at delivery centers throughout North America and Europe. We thank I nside E Vs f or reprint permission.

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California Supreme Court Rejects Ridesharing Appeal Case by Bethany Blankley, The Center Square

California’s Supreme Court declined to hear a case brought by a union group seeking to have Proposition 22 declared unconstitutional and unenforceable. Proposition 22 was approved at the election on Nov. 3 with 58.6% of the vote. The ballot initiative defined app-based transportation rideshare and delivery drivers as independent contractors and not employees or agents. The ballot measure overrode sse bly ill signed by Gov. G av in N ew som in September 2019, which became law J an. 1, which reclassified any independent contractors as employees eligible or benefits. he oter-approved measure provides an exception to AB 5 for app-based drivers to remain working as independent contractors and not employees. The Service Employees International nion E and our app-based dri ers filed suit in the California Supreme Court on J an. 12, 2021. Within less than a month, the court rej ected their case.

he case can still be filed in a lower court. For now, the ballot measure stands. Supporters of AB 5 argue that independent contractors should be treated as full-time employees and recei e benefits. laintiffs suing argued that Proposition 22 violates Section 4 of Article X IV of the California Constitution, which “ grants to the L egislature ‘ plenary power, unlimited by any provision of this Constitution’ to establish and enforce a complete system of workers’ compensation.” In response to the court’s ruling one plaintiff Hec tor C astellanos, said, “ Make no mistake: we are not deterred in our fight to win a livable wage and basic rights. We will consider every option available to protect California workers from attempts by companies like Uber and L yft to subvert our democracy and attack our rights in order to improve their bottom lines.” After AB 5 became law, thousands of independent contractors were put out of work, beginning an exodus from California, which for the first ti e in the state s history in

California Opens Second Round of Small Business COVID-19 Relief Grants by SEMA Washington, D.C., Staff

On Feb. 2, California began accepting round two applications from small businesses and nonproﬁts see ing unds ro the state’s Small Business COV ID-19 Relief Grant Program. The program is being administered by the o ernor s O ce of Business and Economic Development. Applications are due Feb. 8, Round one applicants who did not receive funds do not need to reapply. Grant recipients will be awarded between $5,000 and $25,000, based on annual revenue from the most recent tax return. Eligible recipients with annual revenue of $1,000 to $100,000 may be awarded $5,000. Those with revenue more than $100,000, up to $1 million, may receive $15,000. If a recipient’s revenue is greater than $1 million, up to $2.5 million, it may receive $25,000. Funds may be used to cover

eligible expenses incurred during the COV ID-19 pandemic, such as payroll expenses, working capital, costs associated with reopening and COV ID-19 mitigation expenses. Applicants will be scored based on priority criteria, including geographic distribution based on California’s Blueprint for a Safe Economy, impact of COV ID-19 on the applicant’s industry sector, and underserved small business groups served by the state supported network of small business centers. For more information on the program or to learn how to apply, visit https://careliefgrant.com/. For more information, contact C hristian Robinson at christianr@ sema.org.

2020 reported a population loss. “ AB 5 is a nightmare law that made it illegal for hundreds of thousands of freelancers to earn a living,” said Tom Manzo, president and founder of the California Business and Industrial Alliance. “ L uckily, the people of California delivered a verdict against it and in favor of the gig economy—speaking louder than the paid politicians and union interests that stuck us with in the ﬁrst place. assing rop is the ﬁrst step toward reversing the havoc this misguided law has wreaked in our state, and ensuring innovation and entrepreneurship have a chance at survival in California.” Uber and L yft challenged AB 5 and said if implemented they would be forced to leave the state. L yft’s plan to leave by midnight on Aug. 20, 2020, was halted by an emergency stay issued by an appeals court. Instead of being forced to reclassify their business or go out of business by a certain date, the companies were granted a reprieve until at least mid-October. Then voters

approved Proposition 22 on Nov. 3. K athy F airbanks, a spokesperson for Y es on Proposition 22, said, “ Meritless lawsuits that seek to undermine the clear democratic will of the people do not stand up to scrutiny in the courts.” So far, lawmakers in Connecticut, Illinois, New J ersey, New Y ork, Oregon and Washington have introduced similar legislation to California’s AB 5, although California’s is the most restrictive, according to an analysis published by Reuters. L abor unions are seeking ways to organiz e in other states against any ballot measures proposed like Proposition 22, NBC News reports. “ They are already thinking about how they can make their case for workers more palatable to voters.” , a spokesman for the California L abor Federation, told NBC News organiz ing against any ballot measures like Proposition 22 “ will intensify and spread to other states that may face similar battles with the companies in the future.” We thank T he Center Sq uare f or reprint permission.

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Davis, CA, Men Arraigned After Auto Insurance Fraud by Jordan Silva-Benham, Daily Democrat

Two Davis, CA, residents are facing multiple felony charges after being arrested on suspicion of being involved in an auto insurance fraud scheme.

Davis residents A aron C u rtin, 42, and A ndres C astellanos, 27, were arraigned on multiple felony charges, including arson and insurance fraud. Curtin reported his 2009 Audi A4 stolen April 20. Police later found the vehicle, which was incinerated. The California

Department of Insurance stated its investigation later showed Castellanos had assisted in burning the vehicle. The scheme caused an $8,362 loss to Curtin’s insurance company, according to the department. “ When Curtin filed an insurance claim, he told his insurance company he did not know who stole the vehicle, he did not loan the vehicle to anyone and didn’t allow anyone to drive the vehicle,” a statement from the California Department of Insurance said. “ Curtin also claimed the vehicle was in good running condition prior to the alleged theft.” The department investigated the case, and realiz ed Curtin’s Audi had previously had a blown engine, with estimated repair costs over $8,000. Curtin did not have the engine repaired, and his vehicle was towed from

the repair shop. The California Department of Insurance also said Curtin had multiple unpaid parking tickets, and four bridge toll evasion citations, costing an estimated $558. Additionally, the registration for the vehicle was in peril due to multiple unpaid parking tickets and the bridge toll evasion citations. The department stated Curtin owes $8,059 to the vehicle’s financer. “ Curtin was evasive and told them he did not have his cell phone with him in an attempt to hide his cell phone’s location services,” the statement claimed. “ After his cell phone records and bank statements were requested, Curtin withdrew his claim.” Curtin and Castellanos were arraigned at the Y olo Superior Court on Dec. 28, and both pleaded not guilty. Both are scheduled to appear Feb. 23 for a pre-hearing conference. We thank the D aily D emocrat f or reprint permission.

California Pay and Workforce Reporting Portal to Open Feb. 16 A 2020 law in California requires private employers with more than 100 employees to report certain pay and workforce data to the Department of Fair Employment and Housing E by March and annually thereafter. The Pay Reporting Portal will open for submissions beginning Feb. 16. DFEH has also published a Portal User Guide and reporting template to assist employers with their ﬁlings. nder the new law e ployers must report to DFEH pay and hours-worked data by establishment, j ob category, gender, race and ethnicity. The new measure is designed to motivate employers to consider pay inequities along gender, racial and ethnic lines within their own workforce and promote compliance with existing anti-discrimination laws. For more information on the program, visit DFEH’s FAQ webpage. For more information, contact Christian Robinson at christianr@ sema.org. Source: SEMA

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2020: Another Successful and Productive Year for CAWA In spite of the nuances of the corona virus, CAWA, in its adj ustments to a new and unusual reality, still had a very productive and successful year in 2020. Here are some of the maj or highlights of the year: Legislation, Legal and Regulaation Highlights Reviewed hundreds of legislative proposals in the three states we represent to ascertain their relevancy to the auto care industry and members of CAWA. In coalition with national and state automotive aftermarket associations and companies, developed and implemented a plan for pursuing a vehicle safety inspection program in California. CAWA was represented on the Bureau of Automotive Repair Advisory Group. Educated legislators on the value and importance of aftermarket replacement parts. Provided members with inforation regarding new laws aﬀecting their businesses. J oined coalitions with chambers of commerce and other business groups to speak out against unnecessary regulations and legislation that impedes the growth of business. Partnered with state administrative agencies to inform and educate consumers on their warranty rights, i.e., that parts and service outside their dealership would not void their warranty. Commissioned its attorneys in all three states to provide free legal consultation to members for a variety of legal issues. Provided daily vigilance on behalf of the industry in the state capitols—Sacramento, Carson City, Phoenix and our nation’s capitol Washington D.C., in partnership with our national colleagues at the Auto Care Association and CARE. CAWA was represented on the Auto Care Association’s Government ﬀairs o ittee to assess what was occurring nationally that could impact our members in the states we represent. Actively opposed a California ballot proposition that would have excluded business for Proposition

property ta protections and an income tax increase initiative in Ariz ona. Consulted during the legislative sessions with executives and lobbyists of other aftermarket associations to assure the industry would speak with one voice in the legislative process. Met with governmental regulatory agencies to research members’ issues so that the member could remain anonymous in the discussion regarding the issue. Communicated new laws, case law, compliance alerts, regulations and industry news to members to determine the impact on their business. CAWA promoted and lobbied our three state governments that our members were essential businesses and needed to remain open throughout the pandemic. Provided the membership with a certiﬁcate te plate or their wor ers to show authorities that they were essential during “ shelter in place” governmental orders. Gave direction on where and how to access government dollars to support members’ businesses. Training and Scholarships Awarded scholarships to deserving students either currently employed or seeking careers in the auto care industry. Developed a webinar in conj unction with other state aftermarket associations and the Auto Care Association on the “ State of the Aftermarket” that attracted several hundred participants. Provided free sexual harassment training for employees, required by law, for members through a partnership with CoreMark Insurance Services. Held training and informational programs for our members, including “ Digital Disruption and the Future of the Aftermarket; ” “ Collaboration on a Full Channel L evel; ” and “ Oh This Industry We Call the Aftermarket— What Now,” to name a few. warded scholarships the Motorcar arts o erica- elwyn oﬀe wards to auto oti e high school teachers to assure their programs remained vibrant and relevant. Supported career technical train-

ing in the states we represent. Actively provided information and training on new technologies, including telematics, e-Commerce, ADAS and cybersecurity to educate members and others regarding the impact on the industry. ro oted an industry specific online j ob board for companies and individuals through the CAWA Career Center. Endorsed Programs and Services Developed and implemented an insurance health trust in the state of Ariz ona and Nevada to provide quality and competitive insurance programs to the membership while reducing their premium payments. Continued to provide quality and competitive business services including free legal consultation, insurance programs, website development services, credit card processing, financial ser ices consultation and business forms, as examples. Offered e ber discounted workers compensation and general liability insurance to the membership.

Provided free access to V IP Employee eneﬁts er ices and an electronic human resource library to answer members’ questions regarding human resource-employment issues, personnel policies and practices, etc. Miscellaneous Continued to reach out to members of the Y oung Auto Care Network roup Y to encourage the to participate in association leadership meetings and training sessions, at no cost. Hosted a Y ANG Meet-Up in support of the organiz ation. Expanded a very active presence in social media to become a clear voice for the auto care industry out west. Educated the membership regarding resources available to them if their companies or employees sufered ro wild ﬁres. Answered many questions from the membership and directed them, as appropriate, to where their issue or questions could be resolved quickly. See Productive Year for CAWA, Page 16

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Toyota Remains R&D Patent Leader The U.S. Patent and Trademark O ce awarded oyota ore patents than any other automaker in 2020, according to an annual ranking by the Intellectual Property Owners Association (IPO). Toyota’s engineers and scientists were granted a total of 2,819 patents in 2020, up 4% from 2019 and far outpacing any other automaker in the U.S. Toyota continues to invest heavily in its robust research and development pipeline and has received more than 1,400 patents related to autonomous vehicle technology since . E ery hour, Toyota invests more than $1 million in emerging technology globally, and has invested more than $1 billion in R&D related to automated vehicles and robotics since 2017. Source: Toyota

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UPDATED DAILY Continued from Page 12

Productive Year for CAWA Continuously updated the association’s website to bring industry news and alerts to the membership. The website was exclusively sponsored by AISIN World Corp of America and Idemitsu L ubricants America. Continued promoting the Automotive Aftermarket Charitable Foundation and its mission to the industry. Encouraged e bers to host “ Cash in the Can Drive Thru and Cash In” events for collection and recycling small cans of R-134a refrigerant. Assisted the Auto Care Association in promoting “ Y our Car. Y our Data. Y our Choice.” Produced the association’s bi-monthly newsletter, “ Connections,” to keep members and the industry apprised of issues out west that could impact their business. The newsletter was exclusively sponsored by the Automotive Distribution Network. Provided networking opportunities to members of the automotive aftermarket to improve their skills

Crash Champions Rebrands All Southern California Fountain Valley Bodyworks Locations Crash Champions, L L C, one of the nation’s largest independent collision repair MSOs with a leading presence in the greater Midwest and Southern California markets, announced J an. 21 its successful rebrand of Fountain Valley Bodyworks. Formerly the largest family-owned MSO in Orange County with two of the highest-performing collision repair shops in the industry, Fountain V alley was acquired by Crash Champions in October of last year. Following the rebranding of Fountain V alley, all of the company’s Southern California locations will be under the Crash Champions banner. The company completed the success ul rebrand o aciﬁc Elite and its 23 locations last month. hen we ﬁrst opened our doors in 1974, our goal was to bring a better collision repair and customer service experience to Orange County,” said D av e Marc h, Crash Champions shareholder and the ounder and or er EO o ountain V alley. “ After 45-plus years of doing things the right way, we became the most trusted player in the

and knowledge so they could be the best they can be in the performance of their j obs. Our success as an automotive aftermarket trade association comes from an active and contributory leadership made up of the Board of Directors and a Manufacturers Advisory Council. The association thanks the or their ti e eﬀort and co mitment to CAWA and the industry we represent. Our general membership, too, gave the association the capability to make the industry’s voice heard throughout the west, as the industry’s ﬁrst line o de ense. Thanks, too, to the companies that sponsored CAWA events and programs in 2020. Given the continuing coronavirus uncertainties, CAWA still looks forward to another productive year in 2021 and wish our members the best in business and thank them for their support. Source: CAWA

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market and found a partner in Crash Champions who could help us build on that legacy for years to come. “ The Crash Champions name and brand are nationally recogniz ed not only for being leaders in collision repair, but also strong corporate and community citiz ens. Our aligned values and vision are what attracted us to Crash Champions, and our decision to unify under one banner re ects that. As part of the rebrand, all Fountain V alley branding and color schemes have been transitioned to Crash Champions. This includes employee uniforms, building signage and all marketing and administrative materials. The iconic smiley face will remain on the building at 17481 Newhope St. Additionally, as of Feb. 1, the Fountain V alley website (www. fvbodyworks.com) will begin auto-forwarding to the Crash Champions website (www.crashchampions. com). “ Bringing Fountain V alley under the Crash Champions brand is the ﬁnal step in ce enting our position as the leading collision repair

provider in Southern California,” said Matt E bert ounder and EO of Crash Champions. “ With each prospective acquisition, we look at numerous factors beyond j ust performance, including existing brand value and market recognition. “ Deciding whether or not to rebrand these high-performing shops is always a di cult decision but we know the unique value and power that comes with the Crash name and brand. Moving forward with this rebrand will be an incredible value-add to our new partners, and we look forward to growing their legacy on the West Coast.” Crash Champions is the ﬁ th-largest independent collision repair MSO in America, with 60 locations employing more than 900 team members across six states, including 18 locations in the greater Chicago area, nine in Missouri, seven in Ohio, two in Milwaukee, WI, one in Davenport, IA, and 25 in Southern California. To learn more about Crash Champions, visit www.crashchampions.com. Source: Crash Champions

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C.A.R.Score Now on CARFAX Report

Continued from Cover

Proposed CA Bill

C.A.R.Score, a division of Dealer pecialties announced an. its ehicle condition reports will now be available on the CARFAX V ehicle History Report. The vehicle condition details that C.A.R.Score captures will li e indeﬁnitely within the CARFAX V ehicle History Report for applicable vehicles. C.A.R.Score vehicle inspectors perform a full, cosmetic evaluation of the vehicle including photos of any visual damage. After the inspection is completed, the car is given a star rating for consumers to better understand the ehicle s current condition. C.A.R.Score reports display the e terior and interior condition of the vehicle including instrument and control panels, mirrors, upholstery and even reports the scent of the vehicle. These interactive condition reports show speciﬁc details that car shoppers are looking for, yet, until recently, were not available on vehicle history reports. Source: C.A.R.Score

vehicles, or when a customer does not pick up and pay for authoriz ed repairs in a reasonable amount of time. “ If an ARD is charging unreasonable storage rates or an issue arises regarding storage, a consumer can ﬁle a co plaint with to in estigate. has authority to take disciplinary action against an automotive repair shop that fails to comply with laws and regulations. “ Creating another unnecessary board to oversee auto repair and related storage issues not only depri es consu ers o s e pertise and oversight authority, but creates bureaucratic ping pong. The bill should e e pt s ro the new ehicle owing torage oard. Monte Etherton is the president of Fender Mender in Encinitas, CA, as well as chair an o s egislative Committee. “ With pandemic lockdowns, and fewer miles driven, body shops are already struggling to sur i e he said. “ Now legislators want to

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The National Institute for Auto oti e er ice E cellence E has announced the o cers and board members for the coming year, according to Tim Zilke, ASE president and CEO. Mark Polke osch or shop Concepts, North America, Robert osch will ser e as chairman, and Brad Pellman, ell an s uto oti e as ice chairman. Homer Hogg, Travel Centers of America, and Brian Szalk, FCA, will serve as treasurer and secretary, respectively. Bobby Bassett, formerly of Gates Corporation, will remain on the board of directors as past chair. Additional board members are John Hanighen, Cloyes Manufacturing; Ted Hayes, Hayes Chrysler, Dodge, J eep; Mark Miller, GM Global Technical Center; Tom Palermo, Preferred Automotive Specialists; Jason Rainey, NAPA/AAA; Tom Trisdale, Toyota; Jeff a er, Walker s uto oti e er ice John nap-on usiness olutions; and Z ilke. Source: ASE

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reduce what body shops can charge insurance companies for storing totaled cars ust so insurers can sa e a ew buc s. ut shops will lose more than a few bucks. “ Since insurers will no longer ha e ﬁnancial incenti e to o e their totaled cars out of shops, shops will lose space they need to keep repairable re enue-generating cars Etherton said. “ Storage rate income will not cover the cost of keeping employees. Only repairable cars can do that. “ If insurers want to save a few bucks, they should look in the mirror. ea ing totaled cars in body shops for longer than necessary is on the . Molodano pointed out also prohibits ARDs' ability to charge reasonable market rates for ancillary storage currently deﬁned as charges comparable to other shops in the local area, and instead caps storage rates based on the rate CHP or other local enforcement agencies pay under contract to towing/storage vendors. " CHP and local enforcement agency rates are negotiated and discounted with towing and storage co panies in e change or olu e

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re errals Molodano said. t is simply not fair to apply these negotiated rates to automotive repair shops who do not contract with these govern ent agencies nor benefit ro that arrange ent. The bill repeals V C Code section . c . introduced by the same assemblymember, created that section of code and too effect in addressing the issue regarding reasonable storage charges. he sponsors o and the auto repair industry recogniz ed auto repair businesses are different from towing and storage companies and negotiated this language in good faith, and so far, this newly enacted law is wor ing fine. During this unprecedented O - cli ate any auto repair businesses are struggling financially. Depriving repair shops the ability to charge a fair and reasonable rate only e acerbates the problem and will cause further harm to many small businesses. i ply stated should not repeal this new law and we strongly oppose it Molodano said.

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Nevada Looking to Close Classic Car Loophole by Steven Symes, Motorious

Certain members of Nevada’s state legislature have laid out their plans to close so-called loopholes in the state law dictating what constitutes a classic car. These changes could put at j eopardy enthusiasts’ ability to own and operate their beloved vehicle, and it’s all in the name of combating global warming. While nothing is set in stone— so far these are j ust ideas—it sounds like legislation will be presented for consideration this year. One of the people who spoke during a recent Z oom meeting with the Nevada Conservation L eague was Ru dy Zamora, who reportedly is working with Assemblyman How ard W atts on legislation which would odi y the classiﬁcation for classic cars. Currently, if a vehicle is more than 20 years old, it can be registered as a classic in Nevada. The report isn’t entirely clear how that classiﬁcation would be altered, so that’s something to scrutiniz e once the legislation is

unveiled. It does go on about how people supposedly skirting the law by following it negatively impacts low-income and minority communities the ost since high-tra c corridors” cut through their neighborhoods and they’re forced to breathe air from the older cars that aren’t forced to pass a smog test. Here’s where the reasoning gets a little foggy: in the report, Watts is quoted as admitting driving older vehicles “ is often something of a necessity [ for] small businesses and entrepreneurs and low-income families,” but those groups o ten can t afford to fi whate er a es their ehicle un the smog check. However, the goal is still to get the non-compliance vehicles repaired or off the road. hough there’s z ero mention how far back in age they want to go with this initiative, one would assume a 20-year-old car would no longer qualify as a classic and get the variance. Another part of the plan would be to increase the smog fee

for all vehicle owners in Nevada. Everyone loves paying more fees without getting anything for it, that’s Government 101. But wait, there’s more. Some would say everyone should j ust buy a new electric car since that solves everything, even though there aren’t enough EV s and even Tesla CEO E lon Mu sk admits the electric grid in the U.S. can’t charge all those vehicles, let alone use “ clean” generation methods. Instead of addressing that stark fact, Watts worries about people who can t aﬀord a new electric car. That’s where the funds from those increased smog fees would come into play. Essentially, that government-captured money would be used to pay for minorities and poor people to have their car repaired so it passes the smog test. Or the money could be used to replace an old gas-burning car with a shiny new electric vehicle. We’ll let you do the math on which would cost taxpayers more. Here at Motorious we’re fans of electrification, but not at

the cost of obliterating internal combustion engines. We’ve written about some cool, interesting electric cars in the past, including some classics being converted. However, we’re also all about people having choices and being able to enj oy their classic and collector cars reasonably. It’s up to you as the reader to decide if these proposed changes in Nevada would allow you to do that or not. That’s not an easy task, considering so many critical details are unknown at this time. Whenever state legislatures start talking about closing loopholes for cars registered as classics, our ears perk up. Car enthusiasts in Nevada and elsewhere would do well to watch what happens next closely, since these ideas could spread as other state legislatures try passing similar laws, even if this plan fails in Nevada. We thank M otorious f or reprint permission.

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Semiconductor Shortage engine line next week because GM sends that engine to Fairfax. In addition, GM will run its Bupyeong 2 assembly plant in South K orea at half capacity beginning the week of Feb. 8. GM builds the Chevy Malibu, Trax and Buick Encore SUV there for sale in the U.S. On J an. 22, Business K orea reported GM planned to cut vehicle production by suspending overtime and extra work at its Bupyeong plant because of the semiconductor shortage. It uses the chips in its electronic control units and infotainment systems. “ No production disruptions,” GM spokesman D av id Barnas told the Free Press the last week of J anuary. “ There were rumors last week from suppliers that our K orea operations were being disrupted. But GM K orea corrected those stories.” Barnas said GM will not idle Bupyeong, but will merely run it at half capacity for a week, starting Feb. 8. Workers get paid The UAW reacted to GM’s news by saying its leaders continue to work with maj or employers, the Biden administration, Congress and suppliers to address the semiconductor shortage. “ Over the past 30 years, production o se iconductors has been oﬀshored to South K orea, Taiwan and more recently, China,” said UAW spokesman Brian Rothenberg in a statement. “ Today, the United States only controls manufacturing for about 14% of all semiconductors.” The union negotiated worker protection in the event of parts shortages interrupting production in its contract, he said. Union workers will receive supplemental pay and unemployment that pays 75% to 80% of salary and continued beneﬁts. “ However, the UAW is working with employers to minimiz e the impact on auto manufacturing production as much as possible,” Rothenberg said. GM said union workers at CAMI, represented by Unifor, will be paid through the provisions of their labor agreements, noting that represented

seniority employees will receive about 75% of their compensation through a combination of unemployment and supple ental beneﬁts. Protect pickups and SUVs Demand for semiconductor use is up in part because of the coronavirus pandemic and an increase of laptop computers, which use the semiconductor chips. Cars also use them in a variety of parts and infotainment systems. The union said if the parts were made in America, the industry would have “ more ability to respond to these demand issues,” Rothenberg said. He added the UAW is calling on the government to develop trade and policy solutions to bring advanced technology production back to the U.S. GM’s Barnas said semiconductor supply for the global auto industry re ains ery uid and its supply chain organiz ation is “ working closely with our supply base to ﬁnd solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM.” GM is assessing the overall impact to production and Barnas declined to provide an estimated production impact from the planned plant closures. “ Our focus is to keep producing our ost in-de and products including full-siz e trucks and SUV s and or ettes or our custo ers Barnas said. GM builds its heavy-duty, fullsiz e pickups at Flint Assembly Plant and its light-duty, full-siz e pickups at the Fort Wayne Assembly Plant in Indiana. It builds its midsiz e pickups at Wentz ville Assembly in Missouri and its full-siz e SUV s at Arlington Assembly in Texas. All four plants will continue to run on three shifts and weekend overtime, Barnas said. GM builds the Corvette at Bowling Green Assembly in K entucky. GM’s assembly plants in L ansing and other parts of Michigan will continue to operate regularly. ue to the uidity around the availability of parts, our current plan is to update the plants each week,” Barnas said. “ Our intent is to make up as much production lost at these plants as possible. Importantly, this issue will not impact our commit-

ment to an all-electric future.” Ford impact GM will provide further details on the semiconductor issue when it reports its 2020 earnings Feb. 10. Ford has been hit hard by a global parts shortage with factory workers in several states receiving te porary layoﬀs or shi t reductions. Ford has reduced shifts at its Michigan Dearborn Truck Plant, which employs 4,600 hourly workers and builds the 2021 F-150 pickup. L ikewise, it has shortened evening and day shifts at K ansas City Assembly, which employs 7,300 hourly workers and builds the F-150. At the Chicago Assembly Plant, which employs 5,300 hourly workers and builds the 2021 Ford Explorer, L incoln Aviator and Police Interceptor, Ford is expected to announce a potential production disruption. Ford’s L ouisville Assembly Plant is down through Feb. 7 because of the shortage. hat aﬀects about hourly workers building the Ford Escape and L incoln Corsair. Stellantis planned to shutter plants

in Mexico and Canada, building the J eep Compass and Chrysler 300, Dodge Charger and Dodge Challenger, through the end of J anuary. A Stellantis spokeswoman said Wednesday that its North American facilities are running in February and the automaker continues to work closely with its global supply chain network to monitor the industry-wide issue. Automakers globally that have been impacted by the chip shortage and have cut production include Toyota, V olkswagen, Honda, Mercedes-Benz , Audi, Subaru and Nissan. GM’s Global Purchasing and Supply chain organiz ation has managed to end oﬀ plant disruptions until now in part due to getting a j ump start on the problem, a source familiar with the matter said, but declined to be named because he is not authoriz ed to share information with the media. The group also has a lot of experience from setting up ventilator manufacturing in a matter of days last spring and managing GM through the 2010 tsunami in J apan. We thank the D etroit Free P ress f or reprint permission.

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Buy American Act tors will need to closely monitor developments to implement the order to ensure compliance and maximiz e their ability to continue benefiting from these preferences. The federal government spends some $600 billion annually on goods and services. Federal law requires government agencies to give pre erences to erican fir s. In the past, Buy American requirements have not been consistently enforced and waivers of the requirements have become common. The executive order aims to “ strengthen and enforce ‘ Buy American’ so that the massive amount of taxpayer money the federal government spends every year on everything from defense equipment to steel to auto eets is used to help American manufacturers and their workers.” Among other things, the executive order will close loopholes that allow co panies to offshore production and j obs while still qualifying for domestic preferences. Federal agencies are directed to close current loopholes in how domestic content is measured and increase domestic content requirements. To accomplish this, the J an. 25 executive order: Directs an increase in the threshold amount of domestic content for a product to be made in the U.S. and qualify under the Buy America law. “ The content threshold of 50% isn’t high enough,” according to Biden’s remarks before signing the executive order. Directs a change in how domestic content is measured, basically changing how the government

decides i a product is su ciently “ Made in America”: “ The way we measure the content doesn’t account for U.S j obs and economic activity,” and that will change, Biden said. The new proposed test would measure domestic content by the value that is added to the product through U.S.based production or U.S. j ob-supporting economic activity. Creates a new Made in America O ce within the O ce o Manage ent and udget OM and appoints a new “ Director of Made in America” to oversee implementation of the executive order. Directs a central review of agency waivers of Buy American requirements, to reduce the number of unnecessary waivers. The review process makes issuing a waiver more cumbersome and time-consuming for agencies. It also includes the publication of waivers on a publicly available website. Directs an increase in the price pre erences or do estic goods the diﬀerence in price o er which government can buy a product from a non-U.S. supplier. This pricing premium was recently increased signiﬁcantly under a inal ule issued J an. 19, from 6% to 20% for large businesses and from 12% to 30% for small businesses. It is unclear whether the Federal Acquisition egulatory ouncil will propose additional increases. Directs the FAR Council to review existing constraints on the extension of the requirements in Made in America L aws to information technology that is a commercial item and develop recommendations for lifting these constraints. Supports enforcement of the J ones Act, requiring the use of U.S.agged essels carrying cargo between U.S. ports, to support U.S. pro-

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duction and U.S. workers. Although it is unclear whether the proposed changes will simplify compliance with the Made in America laws it is li ely they will signiﬁcantly aﬀect which products quali y for preferential treatment. That said, it is worth highlighting several important limitations to the scope of the order: The Administration’s goal to increase federal purchasing of domestic products is limited by a number of treaty obligations. Under the Trade gree ents ct oreign end products produced in certain countries must be treated as equivalent to U.S. products for purposes of the BAA if they are part of an acquisition that is equal to or exceeds certain monetary thresholds set forth in Section 25.402 of the Federal Acquisition egulations . The Department of Defense O has entered into reciprocal procurement agreements with 27 foreign counterparts, and has determined that it would be inconsistent with the public interest to apply Buy American Act restrictions on prod-

ucts from these 27 qualifying countries. nli e the offers that all under these blanket DOD waivers are not subj ect to any threshold. ithin days on or be ore uly the ouncil ust consider for publication and comment amendments to the FAR. However, recent history indicates that any changes will li ely not be effecti e for at least another year. Nonetheless, the executive order ulfills a pro ise o the iden campaign and is intended to ensure the federal government is investing taxpayer dollars in American businesses, both small and large. The administration’s policy is to buy ro all o erica including minority entrepreneurs and businesses so that Made in erica means “ Made in All of America.” Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. We thank J D Supra f or reprint permission.

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Virus Liability Protections protection popping back up” at the federal level, said A shley C u ttino, an attorney who co-chairs the COV ID-19 litigation practice for Ogletree Deakins. Wisconsin came close on J an. 12 to enacting the first liability protection law of 2021, but fell short because o differences between the sse bly and Senate versions of a broad COV ID-19 relief bill. Both include liability protections but differ in other pro isions such as the Assembly bill’s proposed ban on employers mandating COV ID-19 vaccines for their workers. Democratic Gov. Tony Evers said he would sign the Senate version if the Assembly agrees to it. Montana’s Senate passed a liability shield bill J an. 18 that now goes to the House for consideration. Republican Gov. G reg G ianf orte has said he supports the measure. State-level liability protections, unlike the federal proposal the Senate GOP promoted for much of last year, don’t shield employers from coronavirus-related claims under federal employment statutes, such as anti-discrimination or anti-retaliation laws, Cuttino said. They do provide an extra layer of protection against claims such as a workplace wrongful death lawsuit or a complaint of unsafe working conditions, she said. Those types of claims are often, but not always, preempted by workers’ compensation laws or federal Occupational Safety and Health Administration j urisdiction, she added. No Flood, But Litigation ‘Fear’ Chambers of commerce, restaurant associations and other business groups have been calling for liability protections since the pandemic gripped the U.S. last March. They contend that e en the threat o a ood o lawsuits would a e it di cult or businesses to reopen after virus-related shutdowns, and that litigation could lead some to close permanently. The American L egislative Exchange Council, an idea-exchange for conservative state lawmakers, last year drafted model legisla-

tion for states to use to enact liability protections. Cuttino and some state legislators advocating for the protections, including Florida Rep. L aw renc e Mc C lu re ac nowledged there still hasn’t been a rush of liability litigation, in line with evidence from litigation trackers and court dockets. But they say the threat remains significant. “ It’s the fear of liability. Our businesses have been through j ust an unbelievable, uncertain time. Once in a hundred years, right?” McClure, who’s sponsoring Florida’s H.B. 7, told a House committee that voted to advance the bill J an. 13. “ Although the courts aren’t packed, I’ll submit, it’s the fear of frivolous lawsuits as this evolves. e ha e the obligation to define that and put the business community at ease.” Trial lawyers’ associations, labor unions and worker advocacy groups oppose liability shields, arguing that limiting people’s ability to hold businesses accountable in court takes away an important incentive for companies to follow proper health and safety protocols to protect workers and custo ers a point that ennsylvania Gov. Tom W olf echoed when he vetoed a liability shield bill in November. The language in the Florida measure is unconstitutional because it would remove the right to trial by j ury, turn a j udge into the j ury and set “ an impossibly high standard, to be honest, to prove by clear and convincing evidence gross negligence on the part of the property owner in failing to follow the guidelines,” said C u rry Paj c ic , treasurer of the Florida J ustice Association and a past president of the American Board of Trial Advocates. The Florida AFL -CIO also obj ected to the bill on similar grounds. Eyes on Indiana, Texas Bills proposing COV ID-19 liability li its also ha e been filed or in Alabama, Alaska, Indiana, Missouri and North Dakota. Governors or legislative leaders have voiced support for enacting liability protections this year in Ariz ona and South Carolina, and business groups also are urging lawmakers to pass them in New Hampshire and Texas.

he specific language aries so ewhat ro state to state as with the laws that states passed in but any include protections or nonprofits indi iduals and go ernment entities such as schools and prisons. “ Our businesses, our health care providers and educational institutions should not be put at risk or competitive disadvantage through no fault of their own, particularly after following safety protocols,” South Carolina Gov. Henry Mc Master said in calling for liability limits during his J an. 13 State of the State speech. “ We should be careful not to let litigation kill what the pandemic could not.” In 2020, Georgia, Idaho, Iowa, K ansas, L ouisiana, Michigan, Mississippi, Nevada, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wyoming enacted broad liability restrictions that protect many or all businesses from COV ID-19 lawsuits. A number of other states adopted narrower restrictions to protect specific industries such as health care providers or makers of personal protective equipment, while a few

SOUTHE

governors issued orders to establish liability protections. A handful of those states could take further action this year. In Georgia, for example, a coronavirus liability shield law is due to expire in J uly, and House Speaker D av id Ralston has oiced an interest in extending it. In Arkansas, Gov. A sa Hu tc hinson has called on state law a ers to e tend and rea r his declaration of a state of emergency, which would allow his order imposing liability restrictions to re ain in eﬀect. With assistance from J ennifer K ay in Miami. We thank Bloomb erg L aw f or reprint permission.

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US Department of Labor Issues Stronger Workplace Guidance on Coronavirus The U.S. Department of L abor announced J an. 29 its Occupational Safety and Health Administration has issued stronger worker safety guidance to help employers and workers implement a coronavirus prevention program and better identify risks which could lead to exposure and contraction.

President Joe Biden directed OSHA to release clear guidance for employers to help keep workers safe from COV ID-19 exposure. “ Protecting Workers: Guidance on Mitigating and Preventing the Spread of COV ID-19 in the Workplace” provides updated guidance and recommendations, and outlines existing safety and health standards. OSHA is providing the recommendations to assist employers in

providing a safe and healthful workplace. “ More than 400,000 Americans have died from COV ID-19 and millions of people are out of work as a result of this crisis. Employers and workers can help our nation ﬁght and o erco e this deadly pandemic by committing themselves to making their workplaces as safe as possible,” said Senior Counselor to the Secretary of L abor M. Patric ia Smith. “ The recommendations in OSHA’s updated guidance will help us defeat the virus, strengthen our economy and bring an end to the staggering human and economic toll that the coronavirus has taken on our nation.” Implementing a coronavirus prevention program is the most effective way to reduce the spread of the virus. The guidance recommends several essential elements in a prevention program: onduct a ha ard assess ent denti y control easures to li it the spread of the virus dopt policies or e ployee absences that don’t punish workers as

a way to encourage potentially infected workers to remain home Ensure that corona irus policies and procedures are communicated to both English and non-English speaking workers ple ent protections ro retaliation for workers who raise coronavirus-related concerns “ OSHA is updating its guidance to reduce the risk of transmission of the coronavirus and improve worker protections so businesses can operate safely and employees can stay safe and working,” said Principal Deputy Assistant Secretary for Occupational Safety and Health Jim F rederic k. The guidance details key measures for limiting coronavirus’s spread, including ensuring infected or potentially infected people are not in the workplace, implementing and following physical distancing protocols and using surgical masks or cloth face coverings. It also provides guidance on use of personal protective equipment, improving ventilation, good hygiene and routine cleaning.

OSHA will update the uidance as developments in science, best practices and standards warrant. This guidance is not a standard or regulation, and it creates no new legal obligations. It contains recommendations as well as descriptions of existing mandatory safety and health standards. The recommendations are advisory in nature, informational in content and are intended to assist e ployers in recogni ing and abating ha ards li ely to cause death or serious physical harm as part of their obligation to provide a safe and healthful workplace. Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. Source: OSHA

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Hey Toby! with Toby Chess

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The Numbers Game; Are You Winning? Recently, I did an estimating class the backside and second, the time for a regional MSO. I had 7 estima- in the guide for the exterior only. I tors and they were given a simple do know why the information proestimate to write prior to the class. viders do not have a pop up like for The vehicle was a 2015 Toyota a hood, but you need knowledge to Camry. They had to replace the left charge for it. Honda recently issued quarter panel, 4 hours of repair to the a “ Body Repair News” dealing with with David McClune outer wheel house, 3 hours to repair corrosion protection for Honda V ethe rear bumper, 4 hours frame set hicle Repair (March 2020). up and pull, and a labor rate of $50 In it Honda states the followbody, frame and paint and $30.00 ing: “ The backside of the new rematerials. The estimates ranged placement panels (fender, door skin, from a low of $3900 to $4900. quarter panel, etc.) should be preI asked the group how many of pared and coated with 2K urethane you had on your estimate to paint the primer surfacer/sealer for corrosion backside of the quarter panel. One protection. This 2K urethane primperson did and he charged a grand er should match the factory inside total of half an hour for paint and .3 coating color and shade (inner reinwith to John to mask. I proceeded show Yoswick them forcement part of the quarter panel a picture of the back side of the is an example of this operation. A quarter (Fig 1) and the masking of mist coat of catalyz ed basecoat the interior prior to the refinishing o should be applied to match the facthe backside of the quarter (Fig 2). tory appearance using the removed part as guide”. Going back to my Camry example, let’s charge j ust 2 hours for painting the backside of the quarter panel and see how much this would add to our incomplete estimate. with Richard Steffen2 hrs @ $50.00 labor = $100, 2 hrs @ $30.00 paint materials = $60.00, ½ hour for color match @ $50.00 labor = $25.00 and ½ hour for masking @ $50.00 labor = Fig. 1 $25.00 plus $5.00 for cover of primer (material) gives you a grand total of $215.00. The back side of the rear body panel also needs to be addressed. There is probably removal and weld with John Yoswick damage on the backside of the panel, but even there is none, the panel will need to be refinished on the ront as well as the backside. CCC states in their guide under the topic of Weld Z one/Adj acent Panel, “ suggested refinish operation ti es do not include Fig. 2 addition time for repair of damage The estimating guide calls for to adj acent panels resulting from 3.5 hours to paint the outside of the normal cutting, welding and grindquarter panel. The premise for paint ing procedures”. Again, I asked who with Karyn Hendricks time is a new, exterior, OEM part on had on their esti ate to refinish the the exterior portion of the panel. The backside of the panel and you probustification or painting the bac - ably guessed it— no one had thought side of the panel is twofold. First, of it. The book time was 1.7 hours. the original panel was refinished on 1.2 hours @ $50.00 labor = $60.00,

1.2 hours @ $30.00 paint materials = $36.00, less .2 for overlap (combine labor & materials) $16.00 equals a total time and material charge of $80.00

CRIBs for this estimate. I am not going to list each one, but will highlight a few of them.

California Autobody Association

Year in Quotes

Fig. 3

J ust those two operations will give you a net of $295.00. L et’s look at the Toyota’s Collision Repair Bulletins for this repair. here are a total o diﬀerent

Fig. 4 - Note the gray epoxy primer on the bonding surface

CRIBs 63, 127, & 186 deal with epoxy primer (Fig 3).

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Toyota, as well as Honda, wants a coating of Epoxy Primer on all bare metal (Fig 5). If you are repairing a fender, you will add a coating

Fig. 5

of epoxy primer before you put on any body ﬁller. You will also coat

plication of seam sealers (put down a coat of epoxy primer before replacing seam sealer, See Fig 5), cavity wax, under coatings and body foams. In CRIB 159, Toyota states” corrosion preventative coating (seam sealers and chip guard) must replicate to match OE application (looks) and purpose”. None of the estimators in my class had a non-included line for labor to duplicate the factory applied seam sealer. CRIB 181 deals with welding speciﬁcations and substitutions. Is your shop doing destructive weld testing every time that you MIG plug weld or Spot Weld on a vehile. Probably no! Think about the multimillion dollar Eagle collision settlement and maybe it is time to change your company’s sop for this operation. I wrote an article in Autobody News dealing with this issue and if you haven’t read it yet, I

Fig. 8

and $40.00 for labor Estimate 3 $37.00 for materials and $28.00 for labor Fig. 7

I took three of the middle range estimates $3900 to $4300 and looked at the corrosion protection lines. The line items for this repair where as follows Estimate 1 $46.00 for materials and $20.00 for labor Estimate 2 $39.00 for materials

stongly advise you to do so (https:// www.autobodynews.com/images/ pdf/Hey%20Toby_West_0619.pdf). Destructive weld testing is covered by 7 diﬀerent OEMs on their web sites (Fig 7 & 8). This operation is a non-include operation. You will need to cut out pieces of metal from the vehicle to do the destructive test. Also, you will need to duplicate the same conditions when doing the destructive test as the welding operation being per-

Before moving forward, I want to show a simple business equation. Sale minus Cost divided by the sale equals gross proﬁt percent. Say a shop does 100 cars per month with an average repair of $2000.00, which would translate into $200, 00.00 per month. Using a cost of labor, materials, parts and Continue reading on-line at autobodynews.com

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Fig. 6

any bare metal bonding surface with epoxy primer (Fig 4) where the adhesive will be applied. I tell my shops to mix up the epoxy primer in a 4:1 cup for the day (Pot life is about 8hrs) and apply with a foam disposable brush. This operation is a non-included labor and material operation. Did you know that Toyota plastic clips are a onetime use? That information is located in CRIB 188. CRIB 82 & 159 discuss the ap-

formed on the vehicle. For example, if the repair calls for weld bonding on the vehicle, then the destructive test will be weld bonded too. Back to the estimator class, I want to look at what was on the estimate for corrosion protection items.

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800-717-3562 559-891-5111

888-471-7445 541-770-3763

Sunnyvale

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

Metro Honda

Sierra Honda

800-446-5697 909-625-8960

800-322-8540 626-932-5614

Montclair

Galpin Honda

Ocean Honda

800-GO GALPIN 818-778-2005

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Honda of Hollywood Hollywood

800-371-3719 323-466-3205

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

Selma

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

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

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

OREGON

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CALIFORNIA

Santa Cruz

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

jgardiner@pacifichonda.com

Hinshaw’s Honda Auburn

Dept. Hours: M-F 7-6; Sat 8-4 parts@sierracars.com IDAHO

888-941-2218 208-947-6060

800-456-6257 509-547-7924

Boise

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

San Francisco Honda 415-913-5125

702-982-4260

Las Vegas

San Francisco

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800-433-0676 626-683-5880

Scott Robinson Honda

Findlay Honda Henderson

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

Cathedral City

310-371-8320

Richland

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

South Tacoma Honda Tacoma

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

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

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McCurley Integrity Honda

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Torrance

253-288-1069

Larry H. Miller Honda

Honda of Pasadena Pasadena

Dept. Hours: M-Sat 7:30-6; Sun 10-5 medfordhondaparts@lithia.com WASHINGTON

Monrovia

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Medford

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760-770-0828

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ACURA CALIFORNIA

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autobodynews.com / MARCH 2021 AUTOBODY NEWS 33

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with Stacey Phillips

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

From the Desk of Mike Anderson with Mike Anderson

How to Improve Paint Materials Reimbursement I’ve been getting some phone calls recently from shops concerned about materials reimbursement when refinishing ehicles with three- or our-stage finishes. thought d address this and the subj ect of materials reimburseent in general here. First, it’s important to know all three estimating systems have forulas related to three-stage finishes. CCC Information Services and Mitchell International do not have formulas for four-stage. Audatex says it believes the three-stage formula should apply to a four-stage ehicle that s a whole con ersation for another day. As I outline any time I talk about negotiating payment for something, materials reimbursement comes down to four key questions: Is what you’re asking for required? Is it included? Is there a pre-determined time? And if not, what is it worth? Y ou can watch a new three-minute video I created with SCRS on those four questions here: https://www.youtube.com/watch?v = eGv9z J Hn6J g So let’s walk through those. First, is added materials reimbursement required for three- and four-stage vehicles? One way to document the answer is yes is to

and i it s a three or our-stage ﬁnish it lists that as a special color. But here’s another cool idea: Y ou can check online for sales literature from the vehicle manufacturer related to that vehicle. I’ve found Honda and Toyota brochures, for example, that clearly show new car buyers who choose vehicles with

I know Axalta Coating Systems, for example, gives an estimator the ability to print oﬀ ro the scale a guide to specialty colors. It’s a regularly updated list of what make, model and year vehicles have three- or our-stage ﬁnishes or that require a “ limited use toner.” Other paint manufacturers may

oﬀer so ething si ilar. t s another way to demonstrate why additional reimbursement for materials is needed for those vehicles. The next two of the four negotiation questions can be answered quickly. All of the estimating systems clearly state materials are not included in the reﬁnish labor ti es

The “Who Pays for What?” surveys have found a growing percentage of shops use invoicing systems to bill for refinish materials

certain colors pay a premium for those finishes. It seems to me that rather than telling shops they won’t pay more for the necessary materials when specialty finishes are in ol ed insurance companies should be assessing premiums based on the paint code gi en it ta es ore to refinish those vehicles.

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check the OEM repair procedures. When you decode a V IN in Toyota’s Technical Information System, for e a ple it identiﬁes the paint code

Another possible source of negotiation help when dealing with specialty ﬁnishes he anu acturer of the paint line you are spraying.

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34 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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and there’s no pre-determined “ time” for materials. Don’t forget you can always use the Database Enhancement Gateway www. E web.org i there s a question about whether something is included or not-included. o in ter s o refinish aterials it comes down to the fourth negotiation question: What’s it’s worth? We’ll have some of the very latest industry data on that in March, when the report on our “ Who Pays or hat sur ey related to refinish, which took place in J anuary, is compiled. But even the 2020 survey report offers so e good insights. lthough about 70% of shops still rely on the traditional ultiplier ethod dollars per refinish hour to atte pt to cover their cost of paint and materials, that’s been changing. The percentage of shops using invoicing syste s to bill or refinish aterials has steadily risen o er the past fi e years, from 19% to 28%. And the maj ority of shops who use them say they are paid by the eight largest insurers “ always” or “ most of the time” when they bill

based on the charges calculated by their invoicing system. Shops report with the exception of GEICO, the top eight insurers all agree to the invoiced amount 60% to 70% of the time. More than half of shops using a materials invoicing system say they use their paint company scale to produce these invoices; that’s more than twice the percentage that scale-produced invoices as recently as 2016. More than one in four shops using invoicing systems use Mitchell’s eﬁnish Materials alculator. nd about 15% say they use some other system, such as PMC L ogic, PaintEx, etc. I believe this shift toward using invoicing versus the multiplier method will continue, particularly as the use of three-stage, four-stage and other specialty ﬁnishes increases and as the paint companies continue to improve the integration of their paint scales and systems with the estimating and shop management systems.

AUTOBODY

WIN Calls for Board of Director Candidates The Women’s Industry Network is now accepting applications for its Board of Directors. WIN’s board consists of representatives from numerous industry segments including collision repair shops, distributors, suppliers, consultants, paint manufacturers, recyclers, insurance companies and others. Participants from all segments of the collision repair industry are welcome, with the only requirement being that applicants are WIN members in good standing. “ We are excited to continue to drive the future of collision repair through our amaz ing win members and volunteers. We are seeking new board members to help continue the great work of WIN,” said C heryl Bosw ell, WIN chair and chair of the Board Nominating Committee. “ The board could use all skill levels including marketing ﬁnance e bership relations and event planning, among others. WIN and the industry needs you!” The WIN Board of Directors provides overall strategic direction for the WIN and is responsible for making policy decisions that exe-

cute on WIN’s vision and mission. “ Each year the board updates its strategic plan and each member contributes to the execution of that plan,” said Jenny A nderson, WIN vice chair. “ The volunteer board members work together to foster an environment that encourages the recruitment, retention, education and networking of women in the collision repair industry.” New board members will begin their term and will be introduced to the organiz ation at large at the 2021 WIN V irtual Educational Conference, May 4-5. The deadline for applications is Feb. 28. For application requirements and further details, visit www.womensindustrynetwork. com. Completed applications should be submitted on the website at https://thewomensindustrynetwork. site-ym.com/general/custom.asp ?page= serve Source: WIN

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Midwest Associations with Chasidy Rae Sisk

National Associations with Chasidy Rae Sisk

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@gmail.com.

CIECAST Prepares Collision Repairers for the EV Revolution

Northwest Associations

As electric vehicles become increas- manufacture the vehicle. Regardless ingly pre alent the Edison Elec- of severity, follow the OEM procewith Chasidy Rae Sisk tric Institute anticipates 18.7 million dures without exception to ensure E s will be on the road by the vehicles are safe.” how will these vehicles impact the Barry asked about possible collision repair industry in general changes in the way OEMs commuand your shop speciﬁcally ow can nicate with the collision industry reyou prepare? garding repair standards. General Motors’ John E c k, “ We need to make it easier for with Ed Attanasio C hris E v ans from State Farm, and repairers to access; we want to work Pete Tagliap ietra of NuGen IT, an with the industry to ensure they can OEC company, answered these ques- repair these vehicles safely,” Eck

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Associations Assembling with Ed Attanasio

pact is damaged most frequently, rear impact damage seems to be more frequent in this population; however, a lot of the damage is on the front of the vehicle in total loss scenarios. “ Regardless of severity, most EV repairs require some sort of recalibration, and there’s a lot of movement and trending in the industry around OE repair procedures.” Mentioning that some OEMs have implemented security gateway modules that present a hurdle for repairers, Evans expressed excitement to see Ford and other OEMs opening their communication systems. “ The data that exists in event data recorders is going to become more relevant in the future,” Evans said. “ Communication from the vehicle is only going to increase. However, the data that’s captured is owned by the vehicle owner or lessee, so we have to contend with the added chal-

lenge of introducing consumers into the exchange of data.” Evans provided a brief synopsis of State Farm’s collaboration with Ford, announced in August 2020, in which the insurer is integrating directly with the car itself as they look at solutions around rating, policies and driving behaviors. “ The obj ective is to develop and understand the capabilities, leverage the sophistication, and use this technology to increase e ciencies in claims handling,” he said. “ There’s still a lot to learn.” Tagliapietra, business development leader for NuGen IT, rounded out the series of presenters. He began by discussing recent trends related to OEs’ involvement in the repair process. ith the rise o and reﬁne ent to certiﬁcation networ s there s an See CIECAST Prepares, Page 58

Association Meetings with Thomas Franklin

Old School Know How

tions and more J an. 26 during CIE- said. “ We are exploring better and CAST: Preparing for the EV Revolu- deeper integration of our content into with Ed Attanasio tion, moderated by CIECA Executive the wor ow process through a aDirector Pau l Barry. riety of means to make the process Eck, collision manager of GM’s easier.” customer care & aftersales wholesale Eck also advocates for imdealer channel, began by discussing proved collaboration among OEMs, some of the opportunities EV s create insurers and repairers, pointing out with Chasidy for vehicle manufacturers, such Rae as Sisk the many shared metrics as well the ability to work on new technolo- as the shared consumer everyone gy and an opportunity or di ersiﬁca- wants to serve. tion across the industry. Next, Evans, P&C claim con“ The build of the [ electric] vehi- sultant for State Farm Insurance cle is diﬀerent and though the i pact Companies, shared proj ections that may not be as with severeThomas structurally,Franklin it 20% to 30% of new cars on the road shouldn’t be very dissimilar to what will be an EV by 2030, noting State [ collision repairers] currently see,” Farm has seen the number of EV s Eck said. they insure quadruple since 2018. “ As long as shops follow the “ The market is signaling growth,” OEM repair procedures and safety he said. protocols, repairers should be able to “ From a claims standpoint, with Attanasio handle EV repair,” EckEd emphasiz ed. we’ve noticed an interesting dynam“ OEs know the vehicles better than ic with EV s,” Evans added. “ Unlike anyone we design engineer and most collisions where the front im-

Old School Know How

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with Ed Attanasio

Shop Strategies

Stacey Phillips is an award-winning freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

with Stacey Phillips

COVID-19 Vaccinations in the Workplace: What to Consider for Your Collision Repair Facility Body Shops Giving Back As COV ID-19with vaccines roll Phillips out and well-being best practices. Stacey across the U.S., employers must deRegardless of the approach taktermine whether they will require en, Cherveny said, there are foundavaccinations in the workplace and tional things to consider. She recomif they should set up a program to mended employers determine if their administer them. culture will sustain a workplace vacThere are essentially three op- cination progra the financial cost Stacey tions available,with according to C Phillips ar- of launching a program and complirie B. C herv eny, E sq . senior vice ance issues, as well as whether they president of strategic client will be able to recruit and solutions for the south reretain talent if they mandate gion of HUB International. a program. Employers can mandate vaccinations for all Employment Law with Stacey Phillips employees with some legalCherveny shared informaly required exceptions; motion about general employtiv ate and create voluntary Carrie B. Cherveny, ment law to understand programs with built-in mobefore building a vacciEsq. senior vice tivators to drive everyone to president of strategic nation program and some get the vaccine; or educate client solutions, for business and legal considerthe south region of staff about the accine and HUB International ations. This applies whether with Victoria Antonelli companies administer the then leave it up to them to choose. program themselves or bring in a “ Businesses have some really third-party vendor who is contracted big decisions to make, and while to deliver the vaccine. the safety conversation that we have all been having since March 2020 Americans with Disabilities Act was filled with a lot o nuances and The Americans with Disabilities Act EdtheAttanasio choices to make,with I think vaccine requires qualified e ployconversation is even more complex ees with disabling health or mediand di cult to na igate said her- cal conditions, under the ADA, are veny. “ Health care has been doing it provided with reasonable accomfor years, but these are new conver- modations. Although state laws may sations and topics for other indus- vary, Cherveny explained the ADA tries... This is unchartered territory.” typically applies to businesses with During a virtual pan- Ledoux 15 or more employees who with Gary el discussion focused on work for 20 or more weeks “ COV ID-19 V accine in the in the prior or current year. Workplace,” Cherveny and “ The employee and the two other representatives employer exchange inforfrom HUB International, mation to arrive at an aca global insurance broker, commodation that allows discussed some with of the Stacey rules Cory the employee to remain at Phillips Jorbin, Esq. and implications when setwork performing the essenchief compliance ting up a workplace protial functions of the j ob,” officer, employee gram. They included C ory benefits, west region, said Cherveny. “ The emJorbin, E sq . chief compli- HUB International ployer ultimately gets to deance o cer e ployee bentermine the accommodation efits west region and W endy K ing, that makes the most sense in light of director of health and performance. the medical information and docuwith Mike Anderson To help companies plan and mentation provided by the employee develop strategies, Cherveny, J orbin and the nature of the j ob.” and K ing shared their expertise about Under ADA guidelines, eme ploy ent law benefits regulations ployers are strictly limited in the

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medical information they can ask for also not considered a medical inquiprior to an oﬀer o e ploy ent. ry under the ADA, although the nec“ Y our conversation with a j ob essary and related pre-vaccination applicant is limited to the essential questions are. functions of what it takes to perform Regardless of the type of prothe ob she said. ter an oﬀer is gram established, once employers become aware there is a medimade and before an employcal condition that prohibits a ee begins working, compateam member from receiving nies have the most latitude to the vaccine, they must detergather medical information. mine if there is a reasonable In terms of the vaccine, accommodation available. Cherveny said asking workFor example, this could ers to provide proof of vacmean working remotely or in cination is not a medical inWendy King, quiry regulated or managed director of health and an o ce with a closed door or plexiglass or wearing adby the ADA. performance, HUB International ditional personal protective “ Y ou can simply ask an equipment, such as an N95 employee to provide proof of receiving the vaccine and it’s not or double mask. considered a medical inquiry under ADA Legitimate Business Justification the ADA,” she said. Administering the vaccine is If an employee chooses or is not able

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to g feels spre plac

to re in e wor the C ha e anal the dire

man eny ting polic mod only clud

ploy EE on struc wor the e

requ spec

to get a vaccine and the employer feels this represents a direct threat of spreading COV ID-19 in the workplace, Cherveny said to be cautious. “ Be very careful if you want to rely on the direct threat defense in excluding an employee from the workforce because they can’t get the COV ID vaccine,” she said. “ Y ou ha e to go through a ery specific analysis to determine whether or not the employee actually represents a direct threat.” One of the biggest questions management asks, according to Chereny is i staff can be fired or not getting the vaccine if there is a mandatory policy in place. If there is no accommodation available, Cherveny said, only then may an employee be excluded from the workforce. However, both the Equal Employment Opportunity Commission EEO and enters or isease ontrol and re ention instruct employers to explore remote/ work-at-home options before ending the employee’s employment. Additionally, ADA guidelines require businesses to go through a specific process be ore deter ining

if an employee cannot remain in the workplace. There are also local health and state rules to abide by. o not start firing e ployees for failure to get the vaccine without first tal ing to outside counsel and being sure that you are up to speed and up to date on any local requireents or prohibitions ro firing employees for failure to get the vaccine,” said Cherveny. “ Proceed with extreme caution!”

veny said there is no obligation to accommodate a pregnant individual. “ However, we very much reco end you be e ible with your pregnant workforce and allow them accommodation-like opportunities as well,” she said. Cherveny said to keep in mind some pregnant women may have medical complications associated with pregnancy that may qualify under the ADA.

Religious Exemptions In addition to the ADA, there are religious exemptions associated with the vaccine. “ There are many religions that are opposed to vaccinations and under Title V II of the Civil Rights Act,” said Cherveny. As a result, companies are required to engage in a cooperative, collaborative process to identify an appropriate accommodation, much like the ADA interactive process.

Medical Confidentiality While information is being gathered in the process of administering a voluntary or mandatory vaccination program, employers will become aware o conﬁdential pri ate edical information about their employees. Cherveny said there are a limited number of people whom it can be legally shared with, such as immediate managers and supervisors, and hu an resources those who need to know,” which is construed very narrowly.

Pregnancy Discrimination Act As of J anuary, the vaccine had not been tested or approved for pregnant women. When it is available, Cher-

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recommend people get vaccinated, so it would be unsafe not to vaccinate. “ Either way, it’s important to talk to counsel as you make these important decisions,” said Cherveny. “ Y ou may or may not stumble into some risk exposure or claim later that andating or not andating offering or not offering it created an unsa e working environment in your workplace.” Regardless of the approach taken, Cherveny reminded attendees that the CDC and OSHA guidance instructs employers to continue their COV ID-19 safety programs. This includes wearing masks, applying disinfectant, social distancing and following all safety protocols. Employee Benefits Regulations orbin addressed e ployee benefit regulations associated with the vaccine, including cost. “ Essentially, all health plans, except for grandfathered plans, need to cover the cost of the vaccine,” he said. This includes fully-insured and sel -insured plans non-E E ployees Retirement Income Security ct o 7 ME Mini u Essential o erage indi idual ar et plans, Medicare and Medicaid. While the federal government is funding the cost of the vaccine, the health plan must pay the administration fees. J orbin said the amount will vary based on provider, geographic area and contract negotiations. Those without health coverage will be able to obtain the vaccines for free, although the timeframe is currently unknown. “ Part of that will depend on the state they live in and what phase of distribution they fall into,” he said. When it comes to deciding between in-network and out-of-network providers, J orbin said in-network providers must be paid the negotiated rates under the insurance plan. If going out-of-network, the o cial language states ro iders must be reimbursed an amount that is reasonable, as determined in comparison to prevailing market rates for such service.” The federal government has set the minimum amount considered reasonable the same as what Medicare pays for the vaccine. In a situation when an out-of-

network provider doesn’t accept the price paid by the plan as reasonable, there is a potential for what is called “ balance billing.” This is where the provider seeks full payment of the charge. As a result, J orbin said it usually pays to go to an in-network provider.

For businesses that operate in multiple states, J orbin said there might be diﬀerent pre ailing ar et rates or the vaccine depending on location. Wellness Programs Employers must also decide if the fees associated with a vaccination program should be associated with a health plan or another cost center, such as a wellness plan or safety program. K ing pointed out depression and serious psychological distress are factors to consider. Prior to the vaccination being rolled out, depression and anxiety were at an all-ti e high she said anxiety rates were three times higher in 2020 than in 2019, and depression and diagnosis of depression quadrupled over the same period. “ We would be remiss not to start with the foundation around employee state of mind,” said K ing. “ The vaccine is a hot topic. It’s one more layer that many employees are stressing over right now.” While some feel it is the light at the end of the tunnel and the vaccination signals an end to what has been going on, K ing said others are hesitant. She encourages management to acknowledge many have anxiety and fear the unknown. However, people are beginning to think of the risk and reward like any other decision. “ They are going through the process to determine if it is worth the risk to get to the reward, which we know is getting back to some sense of normalcy,” said K ing. As businesses decide if they will

mandate a program or begin with a oluntary oﬀering ing reco mends approaching it in a way that treats people like people. “ Being cogniz ant that employees are already having a lot of personal anxiety around the vaccine will help you to really approach it in a humanistic way and balance your corporate goals with the culture goals in your organiz ation.” As of J anuary, about 40% of Americans say they will take the vaccine as soon as it is available, said K ing. According to the K aiser Family Foundation, another 30% will probably get it. “ Therefore, about 70% will get the vaccine whether or not you structure it as mandatory or voluntary,” said K ing. The top reason for hesitancy is the worry about potential side effects. However, statistics are showing interest is growing with time. “ The closest thing we have to co pare it to is the u accine but we can’t compare it equally to the u because it s a new accine she

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said. “ Today, studies show that physicians are the highest trusted authority, not the employer; people want to talk to a doctor, understand the facts and feel comfortable taking the vaccine,” she said. For businesses considering ofering indi idual financial incenti es K ing pointed out it can pose complexities. “ It’s not like rewarding an employee for going to an annual visit with a physician,” she said. “ This is a personal decision for many.” or those who decide to offer incentives, she recommends those with a lower financial alue such as gi t cards and water bottles, so individuals don’t feel they are missing out on a big incentive. Another option is to offer a group incenti e such as a lunch or a competition among departments. L ike most wellness programs, K ing said companies must think through the required steps to ensure that the engagement, medical information, appropriate disclosures and incentive limits are set up in a way See COVID-19 Vaccinations, Page 43

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How Can a Rookie Tech Survive on Minimum Wage in California? by Ed Attanasio

Every J anuary, the subj ect of minimum wage becomes a hot topic as lawmakers debate whether or not to raise it, with the goal of keeping up with the cost of living. Some people say a minimum wage is necessary, while others claim it negati ely aﬀects the econo y. Body shop owners and managers, as well as instructors and administrators at auto tech schools all over the country also chime in on the pros and cons of minimum wage. In California, which has the third-highest cost of living in the U.S, behind Hawaii and Washington, D.C., how can a young tech fresh out of school make a living on $14 an hour?

The TechForce Foundation reports the industry will need 80,000 new collision technicians between 2020 and 2024, with demand signiﬁcantly outpacing a progressi ely declining supply of post-secondary collision technician entrants. A brief history of minimum wage in this country: when President F ranklin D . Roosev elt signed the air abor tandards ct into law in early 1938, the mandatory federal minimum wage was 25 cents an hour in order to maintain a “ minimum standard of living necessary or health e ciency and general well-being, without substantially curtailing employment.” In addition to establishing a mandatory nationwide minimum wage, the Fair L abor Standards Act introduced many other worker protection laws still in eﬀect today including banning child labor and establishing workplace safety. In 1997, President Bill C linton introduced legislation allowing individual states to set their own minimum wage rates, and as a result many have minimum wages higher than the federal one. The Golden

State is at the top of the list at $14/ hour for companies with 26 employees or more. The numbers must be daunting for anyone entering any industry, let alone collision repair. If you’re a new graduate from an auto tech school, you’re likely already in debt, with student loans to pay on top of all of your other living expenses. A studio apartment is going to cost you $1,400 to $2,000 monthly, which means you will likely still be living at home or sharing the rent with roommates. Add in a vehicle and all of the costs associated with that and the question is will you have money left over to eat? Do the math. $14 per hour equals $560 for a 40-hour week. That’s $2,240 monthly, but as we all know Uncle Sam gets his cut. If the taxman takes 30%, now you have a grand total of $1,568 per month. Say goodbye to getting your own place and hello to things like macaroni and cheese and Top Ramen. Brandon E c kenrode, director of development for the Collision Repair Education oundation E witnesses this scenario every day. “ We hear all the time from high school and college collision instructors around the country that are having to ‘ compete’ with other technical trades compensation data to recruit students to their programs,” he said. “ CREF continues to educate students on both the any different career paths available to them and the compensation opportunities within the industry. We show them where they ight start off their career but also on what they could make with years of hard work, continued training, etc.” Jim Boyle owns R eg al Collision in V allej o, CA, and has hired many entry-level collision professionals over the years, and would never start an employee at $14 hourly. “ We want our new people to learn our processes and acclimate to our working environment, so we would never start them at minimum wage,” he said. “ I tell auto tech students that they should do the extra things to differentiate ro e eryone else. Get some additional safety training and develop some other skills, such as plastic welding, blue-

printing and diagnostics, for example. If you can bring real value to any shop, you’ll make more money initially and will move up faster.” L au ra L ozano, collision professor and auto tech department co-chair at ontra osta ollege is o -

Laura Lozano, auto tech department co-chair and collision professor at Contra Costa College (CCC), said some of her top graduates feel underpaid and have considered leaving the industry as a result

ten asked about starting wages for her graduates. “ It is something we don’t dis-

cuss with them honestly because we don’t really know the answer,” she said. “ The MSOs don’t disclose that information and many independents are reluctant to share it as well. “ Some of my top graduates are currently working in shops and a few of them feel that they’re underpaid and have thought of quitting. As a result, many of them will j ump from shop to shop to chase the best co pensation they can ﬁnd which is obviously not good for the shops that hire them, and for the industry as a whole.” L oz ano’s program at CCC and four other auto tech schools throughout the country recently entered into a pilot program designed by the Enterprise Rent-A-Car Foundation and Ranken Technical College. Its goal is to attract and develop entry-level talent to ﬁll essential roles within the collision repair industry, and enhance retention and advancement among collision repair technicians. Ranken Technical College in St. L ouis, MO; College of L ake County in Grayslake, IL ; Contra Costa Col-

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David Mello, owner of Anderson Behel in Santa Clara, CA, said he is competing against Starbucks and Amazon for new talent in many cases

well as the author of “ From Doing to L ending: Y our Guide for Inspiring People on the Front L ines,” written with A my Bradshaw , Ph.D. “ We always work hard to retain our new techs, and that’s is why our

body tech helpers start out earning a at rate that is higher than the prevailing minimum hourly wage,” he said. “ They start out doing lots of bumper j obs and then progress to larger single panel replacement j obs. “ Collision repairs today consist of a larger percentage of smaller repair j obs than a decade ago. Think about your shop’s workload and with the proper reallocation, you should find that you ha e enough work for the starting technicians to make a livable wage.” D av id Mello is the owner of Anderson Behel in Santa Clara, CA, and has been a o cer and board member for decades. “ In our market, pre-COV ID, we have ignored minimum wage and paid a competitive wage to bring in new techs,” he said. “ Most of our new techs have been graduates of our local [ Silicon V alley Career Technical Education] , where I have served on the advisory board since . sually we find oursel es competing with entry level j obs at the likes of Starbucks and Amaz on, e en though we are offering a career track versus a j ob.”

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COVID-19 Vaccinations that keeps the organiz ation compliant. In terms of vaccination distribution, as of J anuary, there is no national onside vaccination provider. V accine rollouts across the country currently differ depending on the state; even age requirements vary. Therefore, K ing recommends referring to state regulatory websites, connecting with local pharmacies and encouraging staff to reach out to their physicians. K ing said this is a good time to have conversations with managers about what’s in store and educate them. She said it could go a long way in ensuring they are going to embrace the approach and be a positive word of mouth in the organiz ation. “ However you decide to coordinate this within an organiz ation, whether it’s mandatory or voluntary and with or without a financial incentive, leadership is really going to need to get in front of the communications around it,” said K ing.

“ It’s a complex situation and going to require dedicated communications.” his ay include yers postcards and other educational materials offered by the and organiz ations like HUB International. L ooking ahead, K ing predicts there will be a lot more education circulating about the vaccine. hen tal ing to staff ing said to not ocus on the benefits to the co pany or the bottom line. “ Make it about the safety of your patrons, clients and the health of employees so from a corporate perspective, it’s not j ust about numbers or business goals, but more about how we can thrive together.” his is the first in a series o COV ID-19 vaccination articles. Next in the series is “ Implementing an Employee V accination Program: Cost, Access and Communication.” nternational offers an e-book with more information: https://www.hubinternational. com/-/media/HUB-International/ PDF/Employee-Benefits/beyondCOV ID-19-employment-laws-vaccines .pdf

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Herb Lieberman—A Life of Service and wholesale sales to the professional repair industry.” Many in the collision repair business L ieberman’s father and grandfaknow industry icon Herb L ieber- ther continued their side of the busiman from so many CIC meetings, ness, and L ieberman started buying and his well-known relationship late-model totals, mostly Chevrolets with the recycle industry and after- and Cadillacs because their parts market collision parts industries. were in the most demand at the time. L ieberman recently retired after Under L ieberman’s direction, a 60-plus year professional career. the business name changed to CADAutobody News caught up with him nCHEV Inc DBA L akenor Auto Salfor an in-depth look at his life. vage. he first car brought in Early Beginnings 1957 was a 1954 Pontiac… The L ieberman family has hit in the rear,” L ieberman been associated with the remembered. “ One of our auto wrecking industry maj or sources of totals was since 1904. But this story the Auto Club of Southern starts in 1952, at the corner California. They had a large of L akeland Road and Norlot in ardena and Herb Lieberman walk Boulevard in Santa Fe only sold to state licensed Springs, CA, near the intersection dismantlers and dealers.” of the now-super busy I-5 and I-605 freeways. Lady Bird Strikes At that time, the area was pretty Things started to change dramatidesolate. It was on this corner, in a cally for the auto-wrecking business 3.5-acre abandoned cow pasture sur- during the L yndon Johnson adminrounded by oil wells, where Herb’s istration, between 1963 and 1969. father, A lex L ieberman, and grand- First lady L ady Bird Johnson was father, W illiam L ieberman, found- on a highway beautification crusade ed The L akenor Scrap Metal & Auto to rid all federally-funded highways Wrecking Business. of unsightly billboards and “ j unkL ieberman’s grandfather re- yards.” This meant many wrecking mained on site while his father drove yards were issued “ conditional use around to industrial accounts collect- permits,” meaning the city could reing scrap metal. Eventually, the scrap move the yard by simply not renewroutes were discontinued and both ing its annual business license. father and grandfather worked on site “ This also led to city and state collecting metal and end-of-life cars. regulations of our industry as well as “ These were not your late-mod- federal regulations, such as federal el totals but true end-o -li e cars storm water permits and storm water j ust scrap, purchased as scrap,” run-off testing ieber an noted. L ieberman said. “ If any retail cus- personally, via the Automotive Reto er wanted to buy a part off one o cyclers Association, worked on the the cars, they pulled the part themighway eautification ct as well selves and it was plus-money.” as the federal act requiring the V IN In the early days, recycling was to be put on 16 maj or components of ery profitable noted ieber an. the vehicle by the OEM.” “ Y ou almost couldn’t lose money. Cost of inventory was low, cost Beyond Chevrolet and Cadillac of labor was low and there was little Initially, under L iberman’s direcgovernment interference.” tion, L akenor did business primarily L ieberman’s U.S. Army service with Chevrolet and Cadillac dealer ended in 1957. body shops. But the collision indus“ My father asked me to come try was changing. The DRP concept into the business as a partner,” he was growing and DRP shops were said. “ I told him that I really appreci- required to work on all makes. ated the offer but was not interested To stay current with the indusin the scrap metal side of the busi- try, L akenor adj usted its inventory ness. I wanted to move the company to all do estic brands fi e years into late-model total loss vehicles old and newer. But the growing U.S. by Gary Ledoux

eet also included any oreign nameplates, and L akenor could not carry every line and be “ inventory e cient. “ So we established respectful working relations with ten other good recyclers,” L ieberman said. “ We agreed to refer sales to each other with no mark-up in price and referred all potential sales to each other with the agreement that we would deliver direct and bill direct but not try and steal each other’s accounts. The group we formed was called TeleWrecker.” “ Only processing late model domestic vehicles,” L ieberman continued, “ allowed us to maximiz e our request-to-sales ratio. We turned our inventory four times per year. We also had long-term professionals on our team who knew their business and how they were expected to operate. “ Our sales volume was in the top 2% of our industry nationally. We also had a complete computeriz ed and priced inventory. Our employees were very loyal. At one

time, not including any L ieberman family members, the average longevity of our company employees was 20 years.” LKQ Comes Knocking L ieberman’s son, Barry L ieberman, was born in 1960. He completed high school, spent a few years at UC Santa Barbara and then decided school was not for him. Wanting to give his son the sa e opportunity oﬀered by his father and grandfather, L ieberman made Barry part of the family business, and he eventually became the fourth-generation family member to run the company. In fact, Barry was running the company, and L ieberman was semi-retired when L K Q came knocking in 1999. Being semi-retired, L ieberman thought it was not his place to make the decision to sell or not. His father, now fully retired, had started the business so he had a big sentimental stake in the company, and his son was now running it. L ieberman left

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the decision up to them. Barry enj oyed the recycle business, but hated the management side. With L ieberman soon to fully retire, Barry j ust didn’t want the responsibility. So, the decision was made to sell to L K Q . Barry stayed on for two years while L K Q found a suitable replacement. Barry went on to sell real estate in California’s beautiful L ake Arrowhead area. Herb L ieberman continued his work with the Automotive Recycling Association. A Lifetime of Service Never one to sit on the sidelines, L ieberman knew it would take involvement by himself and others in the recycle business to improve the industry. He is a past president of both the Auto Dismantlers of Southern California and the Automotive Recyclers Association, and past member of the California Auto Dismantlers Association Executive Committee. He was active in and helped establish the California Auto Body Association, and participated in many Collision Industry Conference com-

mittees, including the Parts and Best Practices committees. He was active with ASA and I-CAR, as well as working with several OEs on their recycling operations, including American Honda, Cadillac,

Ford and BMW North America. “ I was invited by BMW to visit and comment on their motor vehicle recycling operation in Germany,” L ieberman said. “ I very much enj oyed working with all of the industry associations, as well as the OEMs.” Lakenor Today The Santa Fe Springs property originally occupied by L akenor is now leased by Caterpillar’s parts division. The area is completely commercial-

Nearly 600 Hydrogen Fueling Stations Launched in 33 Countries The hydrogen fueling station market is witnessing a dramatic acceleration in growth, with 584 hydrogen stations deployed by the end of 2020, according to a study released by Information Trends, a market research company. The study, “ Global Market for Hydrogen Fueling Stations, 2021,” says the number of countries that have deployed hydrogen stations now stands at 33, with more countries gearing up to enter the market. The deployments are a positive sign for the uptake of hydrogen fuel cell vehicles from Hyundai, Toyota and Honda, said N aq i Jaffery, president and CEO of Information Trends. As hydrogen fuel cell buses and trucks gain greater market acceptance, hydrogen stations for heavy-duty transportation are increasingly being deployed aﬀery said. In the next few years, he added, hydrogen fuel cells will be widely used to drive trains, air-

craft and maritime vessels. J apan is a clear global leader in deployments with close to hydrogen stations aﬀery said, but the fastest growth is in China where more than a hundred hydrogen stations have gone into operation. By 2035, the study said, hydrogen stations will blanket most of the U.S., Western Europe, China, J apan and South K orea. The sums of money being poured into hydrogen station deployments are staggering, mostly raised through public-private partnerships. The 200-plus page study is based on extensive research spanning several months. It provides a comprehensive analysis of hydrogen station deployments. In addition to the study, Information Trends has put together a comprehensive database of hydrogen stations globally.

iz ed. The recycled parts business, now owned by L K Q Corp., has a 200,000-square foot warehouse in Santa Fe Springs, fed by a 45-acre dismantling operation in California’s high-desert area. Santa Fe Springs is now the L K Q distribution hub for Southern California. Today’s Market Asked about today’s challenges in the recycle business, L ieberman said, “ The industry today is fraught with challenges...very high cost of goods with total loss salvage no longer sold only to dismantlers and dealers by sealed bid. They are sold to the highest bidder anywhere in the world via open auction on the internet. “ Moreover, recyclable parts inventory availability and pricing is available to anyone driving prices down. So, we are forced to compete worldwide, pay the highest prices for our inventory and then sell our products for the lowest prices listed....and still try to be proﬁtable.

Of aftermarket collision parts, L ieberman noted, “ The quality is better than e er and the returns or ﬁt and or performance is way down.” Retirement L ieberman said he greatly misses all the people in the industry he worked with over a 61-year career. But these days, he spends time with the lady he married in 1957, his children and grandchildren, shoots some photography and is active in the street rod world with his 1938 Chevy two-door sedan and his 1952 Chevy short-bed pickup. Both vehicles are what L ieberman calls “ sleepers” with a “ tame” exterior but a potent small block Chevy engine under the hood, coupled with a Turbo 350 transmission. Carry on, Herb!

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AUTOBODY

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with Erica Schroeder

Industry Insight

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

with John Yoswick

Forecast: Expect More Private Equity Coming Into the Industry

Shop Showcase

During the MSO Symposium in No- one such company, Frontenac Com- significant ar et share this is still vember, industry consultant V inc ent pany, a Chicago-based private equi- a really fragmented market relative Romans said there are a doz en pri- ty fir loo ing to in est in the colli- to many others” where consolidation with Ed Attanasio has played out more, Sahney said. ate equity fir s with in est ents sion repair sector or the first ti e. During an MSO Symposium L astly, he said, “ Scale presents in U.S. collision repair organiz ations, including Caliber, Gerber, panel discussion, Sahney said three a real advantage in this space,” givService K ing, Crash Champions and things make the industry appealing en the investment needed because of vehicle technology, and the reto investors. Classic Collision. quirements of direct repair “ J ust a decade ago, there was progra s and OEM certifione, when ONCAP acquired Caliwith Ed Attanasio cations. ber,” Romans said. “ The players who conCollision repair businesses with tinue to generate scale will private equity investments currently have a real advantage over produce about $10.9 billion of revthe smaller players,” Sahney enue, or more than 28% of the total Neal Sahney and Jonathan Seiffer, representatives of predicts. market, according to Romans, who two private equity firms, said investors like the stability Another panelist, Jonforesees more investment in the in- and scale opportunities they see in collision repair with Ed Attanasio athan Seiffer of L eonard dustry forthcoming. First, it’s “ a highly stable space,” Green and Partners, a private equity “ I believe that we will see at least two or three more private eq- he said less in uenced than other in- fir in ested in aliber said scale uity fir s settling down with in est- dustries by economic shifts, and with can also help address the long-standments in MSOs within the U.S. in insurance reducing some of the “ risks ing human resources challenge in the industry in that people can find related to being paid.” the next six months,” said. withRomans Ed Attanasio Second, though MSOs now have advantages and security working for N eal Sahney is a principal at

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larger organiz ations.” eiffer and ahney spea ing a onth be ore the first O vaccine had received Food and Drug Administration approval, said the pandemic and its impact on vehicle miles traveled and auto claims haven’t deterred investors’ interest in acquiring shops. “ I think there was bit of hesitation as it relates to figuring out the deals, at the start of COV ID,” Sahney said. “ I think we’ve [ since] shifted now to, ‘ OK , this is the new reality that we’re going to live in for a while. So how do we adapt our deal-thinking to the reality we’re in.’ “ And I think folks have beco e ery creati e in finding ways to look at where businesses were pre-COV ID, what happened during COV ID and what do you believe about the future,” Sahney continSee More Private Equity, Page 56

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Jeff Peevy Shares Growth Plans Related to I-CAR Tech Center by Stacey Phillips

In 1979, the Inter-Industry Conference on Auto Collision Repair was established as a result of the introduction of the frontwheel-drive unibody vehicle, according to Jeff Peevy, vice president of technical products, programs and services for I-CAR. “ The industry came to the realiz ation that it didn’t know how to safely repair that type of vehicle,” said Peevy, who has been involved with the organiz ation for the past three decades. “ I-CAR came into existence to ulfill that need to teach the industry to help understand the correct way to repair the car.” ro there began offering welding training and certification to meet the needs of the industry. As new automotive features were introduced over the years, such as seatbelts, airbags and anti-lock brakes, Peevy said I-CAR has been a driving force in providing the industry with the knowledge and skills necessary to repair vehicles correctly. oday is no different. ith an increase in the number of electric and high-voltage vehicles on the road as well as the development of ADAS features that need to be calibrated so the car can function as designed, I-CAR has new challenges to take on. “ We need to make sure we are able to support the collision repairers out there with accessible, on-demand and relevant education,” said Peevy. “ We have to do this work as early as we possibly can to keep the industry on top of it.” I had the opportunity to talk to Peevy about his new role at I-CAR and its initiatives related to technical training and the growth of I-CAR’s technical capabilities and capacities.

Q: A:

Can you tell us about your new role?

I’ve been involved with I-CAR as a volunteer or instructor since 1990 and part of its staﬀ or 7 years. oined the organiz ation as a regional manager in 1998, and have also worked as a national ﬁeld anager director and ultimately, held a senior director position.

I temporarily left I-CAR in 2015 to help the Automotive Manage ent nstitute Mi rebuild its accreditation program and stayed there or ﬁ e years. Throughout my career, I always felt the role of technical training was very important to ensure a complete, safe and quality repair. Frankly, I missed working in this area, and rej oined I-CAR in J uly 2020. My current role was developed to help the organiz ation meet its

industry.

ship?

How will I-CAR meet this obj ective under your leader-

We never lose sight of our vision: “ That every person in the collision repair industry has the information, knowledge and skills required to perform complete, safe and quality repairs for the ultimate beneﬁt o the consu er.

The I-CAR Tech Center has extensive video and lighting equipment to produce the various training and information products for the industry

obj ectives in terms of technical positioning. This includes working on the future development of I-CAR’s curriculum and training to support the industry.

When it comes to technical positioning and training, what is I-CAR’s goal?

By nature, I-CAR is a natural collaborator in the industry. It’s in our DNA. We serve and are represented by all of the inter-industry segments. Although we’re already in a global leadership position, things are growing and changing so rapidly that we needed to get in another gear to keep up and ensure we are providing the knowledge, skills, testing and information the collision repair industry requires. Our technical obj ective is to increase I-CAR’s global leadership position and technical presence by expanding our technical capability, capacity and expertise to meet the growing needs of the collision repair

As a result, we took a hard look at what we needed to do technically to ensure our ision is ulﬁlled as well as expand how the information is delivered. It comes down to our strategic technical planning, expansion and overall execution. We face the very same things a collision repair shop faces in needing to add tools and equipment, space and expertise to keep up with the increasing momentum of change.

Q: A:

Can you tell us about the I-CAR Tech Center?

The I-CAR Tech Center, in Appleton, WI, houses the equivalent of a body shop with a spray booth, welding stations, lifts and a lot of equipment. Additionally, it has extensive video and lighting equipment to produce the various training and information products and services most of the industry sees. Since the main role of the center is to support the development of I-CAR’s curriculum and training,

there must be a higher level of understanding of technology coming down the road. From this facility, we support OEMs, suppliers and all industry segments in some capacity. I don’t believe the industry has had a chance to be exposed to I-CAR’s world-class technicians who typically work out of the Tech Center. They are the ones who do the research to understand vehicle and repair technology. Many have been with I-CAR for years. It’s an amaz ing group and it’s important to recogniz e the level of dedication and knowledge they have. They are really serious about their role in understanding the information and developing ways to teach it. In addition, our talented group of subj ect matter experts working with our instructional designers, video and graphics teams work year-round at the facility to develop I-CAR’s curriculum, which consists of both online, virtual and hands-on classes. We’re all working from home right now due to the pandemic, except when in-shop work is needed, but hope to be back in the center when it is safe to do so.

Q: A:

What are some of the expansion plans in the works?

Q: A:

What can we expect to see from I-CAR in the future?

We are currently building a world-class ADAS calibration lab, so we can expand our research and de elop ent speciﬁc to ADAS-related activities, and do so in an eﬀecti e and e cient way. This also allows us to expand our support of the car manufacturers. One of our next proj ects includes building a dedicated electric vehicle lab so we continue our leadership position in understanding the repairs of these vehicles and further support the OEMs. By keeping up with the latest repair procedures and collision repair information, it allows us to be the link between collision repairers and car manufacturers.

Not only will the quality of our courses continue to grow, but the industry is also going to see an increased level of accessibility

48 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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through online and hands-on learning. We have plans to do some very innovative things to help learners be ore engaged and learn ore e ciently. We’re blessed to have a lot of instructors who currently teach both virtual and in-person, and we want to make sure to support them. I also think it is important I-CAR continues to increase our technical leadership in light of the changes taking place. J ust as our industry is growing and our shops are taking more training to keep up with changes in technology, our organiz ation’s technical department has to do the same. We recently brought Dirk Fuchs onboard as I-CAR’s director of technical programs and services. He oversees the repair technical support and has a strong global understanding of electric vehicles, as well as ADAS calibration. We already have subj ect matter experts around those disciplines; however, coming from Germany, he brings deeper knowledge from other parts of the world. The changing technology in

these cars requires a close relationship with car manufacturers. As a result, I see us continuing to grow deeper relationships with OEMs and increasing our ability to support them, which will enable us to better support collision repairers. You will see us get ery speciﬁc on what we share with the industry. We’re currently working on a social media strategy to share information about our great technical team and all of the work they do behind the scenes. We’d really love the industry to have access to the inner-workings and get to know the personalities and the impressive level of expertise available. I think it will be very interesting to our industry. As we move forward with our initiatives, we will continue to collaborate with the industry and welcome feedback. We really want all stakeholders to understand what we are doing and get involved. It’s all about supporting the industry and those who are repairing ehicles which ulti ately beneﬁts the consumer with a complete, safe and quality repair.

Tesla Will Now Handle Collision Repairs at Its Own Service Centers by Steven Loveday, Inside EVs

Tesla alerted owners and customers at the end of the last week of J anuary its service centers will now offer collision repair. CEO E lon Mu sk mentioned this back in 2018, and it’s something people have been waiting for. The message was titled, “ Collision Repair is Here,” and it said Tesla Service Centers can “ Fix minor dents scuffs scratches and ore. The message also talked about collision repair, including “ suspension and axle damage, front and rear bumpers, hoods, liftgates and side mirror caps, along with doors, wheels and all glass repairs.” According to the report by CNBC, owners can simply visit their Tesla app to make an appointment. Choose the “ Collision & Glass Repair” tab from the app’s Service Menu. After an appointment is made, owners can track the progress on the app. A select few Tesla Service enters ha e been offering larger repairs for some time though; in

most cases, those repairs were reserved for Tesla-approved collision shops. Now that Tesla will move collision repair “ in-house,” it will add yet another consistent revenue stream to its bottom line. While EV s need less maintenance than gas cars, that doesn’t mean they don’t need repairs. In fact, esla has been specifically dealing with quality and fit and finish issues for years. We’ve heard and shared plenty of reports of owners dealing with service centers often. Moreover, there is now an increasing number of Tesla vehicles on the road that are out of warranty, which means Tesla could benefit significantly going forward. Tesla owns and operates j ust 140 service centers in North America. However, during the recent Q 4 2020 Tesla Earnings Call, President of Automotive J erome Guillen said the company has plans to open ore acilities in the first hal o 2021. We thank I nside E Vs f or reprint permission.

Hyundai Isn’t Building the Apple Car After All by Chris Bruce, Motor1.com

The Apple car is dead again. Hyundai Motor Group said it and the tech giant are no longer in negotiations to create a partnership on an automotive proj ect, according to Automotive News. In J anuary, Hyundai conﬁr ed the two co panies were in the early stages of discussing the collaboration. “ We are not having talks with Apple on developing autonomous vehicles,” Hyundai said in a statement to investors, according to Automotive News. It’s not clear which side suspended the negotiations. On Hyundai’s side, there was allegedly concern among some execs the automaker would j ust be a contract manufacturer for Apple, like the tech company does for Foxconn, making the iPhone. According to the rumor at the time, K ia was going to build the Apple car at a new factory in Georgia. There was speculation the companies might have even had a concept version of the ve-

hicle ready in 2022. Sales could have started as soon as 2024. While the news about the negotiations only came out in the last few weeks, these talks had apparently been happening since 2018, according to Automotive News, citing a Reuters report. As of early 2021, Apple reportedly still has a small, internal team working on its car. The crew allegedly includes some former Tesla engineers. A complete vehicle could be ready between 2024 and 2028 if the proj ect comes to fruition. Before Hyundai, V olkswagen Group was allegedly going to be Apple’s partner on the automotive proj ect. They were going to start by creating an electric, autonomous version of the V W Transporter van for use on the tech company’s campus. While this was heavily rumored, the collaboration was ne er o cially announced. We thank M otor1 . com f or reprint permission.

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50 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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with Ed Attanasio

Social Media for Shops

Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.

with Ed Attanasio

Social Media Strategist Identifies Keys to Your Body Shop’s Online Success In the old days, body shop marke- showcasing testimonials and speating and advertising was relatively king at events. hew where do you begin simple, with only a few things to consider directwith ail Ed phone boo Attanasio advertising, radio or TV advertising and, if you decided to think outside of the box, billboards or even sky writing. And don’t forget about putting with on Edyour Attanasio a big in atable gorilla roo Today, marketing and advertising is so much more sophisticated due to technology that changes daily. How can a shop owner or manager know what to do with so many options out there? with StaceyFacePhillips Owners have to navigate Joe Conte, CEO/lead strategist at Auto Moto book marketing and advertising, so- Digital (AMD) in Sausalito, CA, creates marcial outreach on multiple platforms, keting plans that grow exponentially using cutting-edge modalities such as Artificial reputation management, web de- Intelligence sign and development, Google Adwords and ratings, custom video, Autob ody N ews recently sat down with Stacey Phillips email marketing, online podcasts/ with Joe C onte, CEO and lead strawebinars, blogging and vlogging, tegist o uto Moto igital M

SEMA Show Goes On

www.auto otodigital.co in ausalito, CA, and discussed how his company uses digital marketing and social advertising to build a body shop s business aﬀordably and e ponentially, using their proprietary system. Conte grew up working on Porsches with his father, and began focusing on the collision repair industry more than a decade ago. AMD delivers AI algorithmic social data solutions for its client partners. SA data integrated process activates audiences and converts them into loyal brand supporters, via proven data mining analytics and algorithmic based solutions.

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t s not as different as you would imagine. As body shops differ ro s. nonco-branded vs. independent, etc., our approach for body shops has a lot of similarities in what we do across the board with clients we have worked with for years in other industries. Our initial goal is to define the story of who the body shop is and help tell that story to define their customers, and how best to create compelling content that engages with them on a personal level. We do this through a number o different strategies and solutions that enable us to learn more at each stage it is through this integrated and algorithmic learning solutions via “ social conversion strategies” that we can target specific types o individuals and their behaviors, that further help to create conversions of users into paying customers.

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West_Issue_0321.indd 51

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How can a small independent shop or mini-MSO compete with a large chain of shops with a huge marketing budget?

here are a lot o fir s out there that promise the moon and groups that create generic content, basic SEO, websites, etc., and strategies that are not specific to the body shop itself. Our goal is to work with the owners, no matter if they are a part of a larger MSO or mini-MSO, and help them create an online identity that galvaniz es consumers into action. It is through this identity-based social engagement strategy that we help them grow their online identity and their online presence. ey actor or this is defining who the body shop is and who they work with, from a business-to-business standpoint. The types of paint, paint booth, machinery, etc., all adds to the layers of who they are and how they do what they do. We are not solely focused on the body shop when we work with the we also wor with their partners to help understand the entire landscape and ecosystem that surrounds them. This philosophy helps to build a strategy that focuses not only on direct-to-consumer conversion solutions, but data marketing strategies for manufacturers, brands and distributors who work with the body shops. It is this multi-faceted promotional strategy that enables us to create a diverse, long-term growth solution not only developing bottom-up outreach to consumers, but cross-brand pollination strategies that help grow social engagement through the entire

landscape. This approach not only helps the shop itself, but all up- and downstream strategic partners that help build the network.

What can you say to a shop owner who claims that social edia is ineﬀecti e

The main goal with social engagement is to create a networ eﬀect. his enables the locations to grow and build relationships on the [ business to business] and business to consu er side giving body shops loyal customers that help promote and support the growth of their business. It is during this outreach process where we start to build customer loyalty. We also do it via online reputation management solutions that help to build a shop’s online credibility and shift the conversation that comes from the actual customer, and not j ust outreach from the body shop. This is what social engagement is all about and why working with smaller shops at times tends to be a greater value proposition for the shop than with the larger MSOs.

There are so many ways to go with digital marketing, with new social media coming out all the time. What social media do you suggest for your clients and why?

Facebook foundational work is where we begin, because the information you can discover with the ad-based network and ad manager sophistication they have is what feeds all other types of outreach techniques we oﬀer.

Caliber Makes Forbes List of Best Large Employers Caliber Collision was named to Forbes’ list of America’s Best L arge Employers for 2021, released Feb. 9. The 500 large employers that received the most recommendations from 50,000 employees in 25 diﬀerent industries ade the cut. Employees were asked openended questions regarding their employers, related to culture, beneﬁts growth de elop ent potential

There are a number of techniques ro location-specific ads and strategies like “ geo-fencing, geo-targeting” to behavioral analytics based micro-targeted ads that enable us to find who is clic ing on what and why all o these strategies are designed to create cost-effecti e ad spend solutions and the ost affordable conversion solutions and content, to really find what a es the consumer who they are and help align them to the right body shop. hat we find that resonates the most with today’s consumers is the story of the owner, their work ethic and philosophy, and the culture of their shop. Every shop is unique, and by sharing original content and educating body shop owners that being the voice of their shop matters, it not only empowers them to see their potential, but it ultimately helps customers make their decision easier because they can relate to the business and they see the shop as a partner who cares. That’s where the long-term loyalty comes in that helps a business grow. The beauty of all of this is the exponential factor; once you lay

and, new for this year, a company’s ability to adapt to sudden changes in its business development during the COV ID-19 pandemic. Caliber came in at No. 346, with 10,000 employees. V iew the full list at https://www. forbes.com/best-large-employers /# 63c84ed1fb3e.

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down the proper online and social marketing foundation, the right strategy and the right content are gifts that keep on giving. The data starts to come in, and the growth of the business and actual decisions about the future of the company come from this data. This is where it then starts to spiral, when one customer talks to another potential customer and the “ network effect” that we discussed earlier starts to take shape. In the end, it is not about the shop next door, it’s about the story. The best thing about a body shop is its story, and even if shops are next to each other, everyone has their own story. Our goal is to help them get to the right customer and help them build a strong in-bound customer base, while growing their car count exponentially.

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54 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Alth wes and of G eo the A Beth try Trad

tion cont colla age shor youn indu but tion addr

for p the n 2019

Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

ASA Northwest Hosts ASE for State of Collision Education Discussion drop in collision students Southeast signiﬁcant News but an increase in automotive ser-

Although On Feb. 2, ASA Northwest hosted a virtual presentation and discussion with on theChasidy current state Rae of collision education, featuring G eorge A rrants, vice president of the ASE Education Foundation, and Beth Ru tter, global director, industry and customer engagement, for Tradiebot Industries. with his Chasidy Rae Arrants began presentation by pointing out, “ The pipeline containing the future workforce is collapsing… We don’t have a shortage of entry-level techs; we have a shortage o qualiﬁed applicants with Chasidy Rae young people are interested in the industry and applying for positions, but they don t ha e the qualiﬁcations the shop needs. So, how do we address that?” Crediting with K yle Holt of S/P2 Chasidy Rae for providing data, Arrants explored the number of S/P2 student users in 2019 compared to 2020, showing a

vice trainees. Sisk

Western Associations Sisk

Southwest Associations George Arrants, vice president of the ASE

Sisk Education Foundation, shared statistics on the tech shortage crisis and discussed the importance of schools getting involved to save local education programs

Southeast Associations The U.S. Bureau of L abor Sta-

tistics’ report on occupational proj ecSisk

tions for 2019 to 2029 predicts 13,600 j ob openings in collision repair during this time period, yet it only anticipates

Northeast Associations

4,400 new collision professionals entering the field. More frightening, in a survey of collision graduates, ASE found 42% are no longer in the automotive or collision industries. “ Of the graduates surveyed, 18% are employed in the technical trades, so they are still working with their hands, j ust not with us,” Arrants said. “ I hear a lot of shops say that their new tech screwed up on the first day, but did they really? Or did they ust do things differently id you provide an experienced associate to mentor them on your organiz ation’s processes and procedures? If not, they weren’t the one who messed up.” Arrants next explored current trends in collision education. Over the past year, 17 ASE accredited programs went inactive, with another 26 potentially following suit over

the next few months. From 2019 to 2020, 241 collision programs did not renew their training with S/P2 Collision. The Mississippi Department of Education recently beca e the ﬁrst state to mandate all collision programs be ASE-accredited. Estimating there are nearly 1,000 collision programs in the U.S., “ the industry and education speak diﬀerent languages rrants said. “ Colleges need to produce students who can work in the industry as an entry-level technician, and the industry needs to create an environment where new technicians can grow. “ According to Spherion’s emerging workforce study, 35% of employees who do not receive mentoring look for another j ob within 12 months, while those who receive mentoring are 77% more likely to stay,” Arrants continued. “ This is a national concern

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with a local solution: get involved!” Rutter then discussed the Automotive Collision Engineering Pilot Program, an Enterprise initiative in collaboration with Ranken Technical College in St. L ouis, MO.

Beth Rutter, global director, industry and customer engagement, for Tradiebot Industries, encouraged shops to consider investing in their future by mentoring an apprentice through Enterprise’s Automotive Collision Engineering Pilot Program

The national program focuses on recruiting and training students, and then partnering them with local shops to provide students with additional learning opportunities through apprenticeships. Rutter recalled receiving a call

from an Iowa shop that wanted to put a technician through its local school’s collision program but was uncertain the curriculum would meet the shop’s needs. “ We met with the school’s dean, and now the school is in the process of buying the equipment they needed and starting down the path of ASE accreditation,” Rutter said. “ The instructors never had support before, but now they are getting the support they need. Behind every successful vo-tech collision program, there’s a group of active industry professionals on their advisory committee, supporting these educators and their students.” ASE, CREF, S/P2 and I-CAR have all been collaborating to identify collision programs around the country in danger of closing, so they can address the concern and gather support from the local industry. E ﬁeld anagers can help with advisory committees and gap analysis, but it starts with the local shops and other collision repair industry organiz ations. “ Businesses need students that

graduate these programs, but we are losing collision programs around the country. We have to stop the bleeding,” Arrants stressed. “ These

Continued from Page 47

“ There will be some subset of people who will be slow to return to mass transit and other forms of transportation, and I don’t think working from home is going to be an option ore er eiffer said. How does private equity view the potential longer-term impact of advanced driver assistance systems and autono ous ehicles Sahney noted it takes a long time for new technologies to be in place in a large percentage of the vehicle population on the roads. “ The feeling on it is we’re still decades away from that truly hammering away at the industry,” Sahney said. In addition, he said, MSOs are going to be in a much better position than a single-shop operation to make the investments in being able to service those technologies. eiffer agreed saying he sees ADAS as likely to have a bigger impact on personal inj ury claims than collision claims. “ So we pay attention to it, but people tend to overestimate how quickly the world will change,” eiffer said. e pay attention to it

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o en s ndustry etwor is co itted to financially supporting women who are eager to advance in the collision repair industry through the WIN Scholarship Program. Applications for the 2021 program will be accepted now through March 15. To apply or view scholarship requirement details, visit https://thewomensindustrynetwork.site-ym.com/page/ Scholarship offers scholarships that provide tuition assistance, educational opportunities and enrichment e ents to qualified applicants. Each scholarship applicant receives a one-year membership to WIN to further support their j ourney and provide an added sense of community as they chase after their goals. The program for 2021 will offer the ollege tudent uition and Conference Scholarship Award. This scholarship is presented to students enrolled in a post-secondary collision repair technology program. Source: WIN

ued. “ There’s all sorts of hypotheses about where we will land. I think we will land in a new normal that may loo different than where this industry was before COV ID, but it’s going to look something closer to that than where we’ve been the last six months.” eiffer agreed O is li ely not a long-term negative in this industry. “ Even if it lingers, people’s behaviors have adapted,” he said, acnowledging resu ption o tra c has rebounded to varying degrees around the country. “ If you’re looking for a platform, you’re presumably looking to build something much bigger over time. So a shortterm blip shouldn’t really change your view on the opportunity.” He said there will no doubt be permanent changes that will negati ely affect other parts o the economy, but there may actually be some upsides to the pandemic in the medium-term for collision repairers.

progra s need to produce qualiﬁed candidates, and ASE’s program impro e ent process will help ﬁgure out what they have and what they need.” “ We need to hold educators accountable for teaching our future employees, but we also need to adj ust our culture so new employees don’t feel like outcasts,” Rutter said. “ We want to create a community that onboards them well and makes them want to stay, and mentorship is a key piece of that. Instead of expecting a new tech to be productive immedi-

ately and know what you need them to now on their ﬁrst day your shop culture should focus on continuous improvement and learning.” “ Reach out to your local programs and determine how we can assist, and if you are involved with a program that is struggling or in j eopardy of closing, we need to know now,” Arrants urged. “ We can’t wait any longer; if we continue waiting, the programs will be gone, and once they’re gone, they’re never coming back. “ We need to see what we can do to salvage those programs, but they’re your programs, so we need your help. Get involved. We need to convince the school administration that this is a viable industry!” For more information about ASE’s Education Foundation, visit aseeducation.org. Stay up to date on ASA Northwest and its future events by visiting asanorthwest.com.

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but view it a little bit as noise, and try to focus on the bigger picture. “ There are going to be a lot of cars in the U.S. for a long time, and those cars are going to get into accidents because of weather, congestion and distraction. Cell phones ha e been a huge benefit or the industry.” Even if collision repair work declines over time, he said, well-run M Os will find other ways to use a network of bays with skilled workers. “ If you have talented folks, and a distribution network with points of access, there will be new business opportunities that arise if others start to go down eiffer said. Autonomous vehicles may result in a larger population of cars rather than smaller, and those vehicles will have service and repair needs beyond collision repair. “ The infrastructure that’s built ay o e a bit o er ti e eiffer said. “ Y ou may not need city center locations, or Main Street locations, but I think [ shops] will still have tremendous value to the automotive transportation infrastructure.”

56 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Continued from Page 36

CIECAST Prepares enhanced ability to interact with the networks the manufacturers are establishing and see how the vehicles are being repaired,” Tagliapietra said. “ There’s a changing paradigm of how OE repair information is utiliz ed and delivered, and following the OE repair procedures exactly as they’re written is absolutely critical for properly repairing EV s. OEM ertiﬁcation networ shops must follow repair procedures to be aligned in understanding what repairs are needed to restore EV s to their pre-loss condition,” Tagliapietra continued. “ The future of these networks is going to be j ust as important to insurers as they are to the OEMs, emphasiz ing the fact that there needs to be a level of collaboration and understanding between manufacturers and insurance companies that has not previously existed to the level that will be necessary with EV s.” Acknowledging shops’ struggle to obtain OEM repair procedures effectively, Tagliapietra suggested the

repair procedures should be available before the estimate is even written. “ Shops need to understand the safety measures that need to be considered before they touch the car, and we are e a ining different ways to deli er that in or ation ore e ciently. Education is vital,” Tagliapietra said. “ Repairers will be required to access OEM repair procedures on every single vehicle going forward, not ust or structural da ages we cannot continue down that path as an industry and stay in alignment. “ Insurers, as well as shops, need to understand and agree on these procedures so that shops can be fairly rei bursed or their efforts. Tagliapietra believes the data in the repair orders needs to be made a ailable to the different ey sta eholders in the industry. “ CIECA standards are essential to provide access to the data participants need to achieve their business obj ectives,” he said. “ So many entities participate in the repair process now, not j ust the insurer, OEM and collision repair shop. We need to evaluate how that information is accessed, ingested and memorializ ed

Certified Collision Group Announces Significant Start to ‘21 ertified ollision roup the OE certifications and - ocused solutions provider to the collision repair and insurance communities, announced J an. 31 the addition of 24 new locations in the first onth o .

“ With the coming of the new year, CCG is very mindful of the increasing challenges facing repairers nationwide,” said Marty E v ans, CCG’s CCO. “ We are also acutely aware that the highly reputable OE certified custo er-focused independent operator is vital for consumers; CCG will eep le eling the playing field or those operators so they can compete.” These 24 new locations are located in fi e states orth Carolina, Penssylvania, V irgina,

South Carlina and Wisconsin. CCG now operates in 39 states with more than 550 locations and 50 vendor provider partners. The focus remains providing the insurance community with a sustainable alternative that is differentiated by 2500+ OEM badges and the very best K PI results. “ The extraordinary support of our vendor providers and insurance partners allows us to continue delivering stability and long-ter proﬁtability to our best-in-class independent a liates,” Evans continued. “ We remain bullish on opportunity as we expand our internal team and infrastructure to maintain our position and outperform the marketplace.” ource

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so it can be played back to the industry or the beneﬁt o e eryone. “ Collaboration is critical. These relationships need to be fostered if everyone is going to succeed and win,” Tagliapietra continued. “ Everyone is dependent on collision repairers to complete a quality repair, but it s ﬁrst incu bent on anu acturers, insurers and information providers to facilitate that and share the information the shops need. “ We cannot allow a few to monopoliz e that information when it’s essential for the good of the whole industry.” CIECA then opened the webinar up for a question-and-answer session. As J anuary’s CIECAST concluded, Barry reminded attendees the webinar is eligible for credit through the Automotive Management Institute. The next CIECAST, scheduled for Feb. 25, will highlight the next generation of CIECA standards. The organiz ation is looking for interested parties to j oin in the development of those standards. For more information on CIECA and the next CIECAST, visit cieca. com.

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58 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Auto Thefts Surge In 2020, National Insurance Crime Bureau Reports A preliminary analysis by the National Insurance Crime Bureau shows auto theft took a dramatic leap upward in 2020 compared to 2019, reversing two years of auto theft declines. According to its initial study, there were 873,080 auto thefts in 2020, a 9.2% increase over 2019, which had 799,644 thefts, a boost of more than 73,000 thefts. “ Preliminary reports indicate a sharp increase in automobile thefts for 2020,” said NICB President and CEO D av id G law e. “ All indications are 2020 will be the largest theft year in the past decade by a significant margin.” ccording to the ﬁndings e ery month in 2020 showed increases compared to 2019. Overall, the yearly increase was 9.2%; however, each month from J une through December showed double digit gains. “ Based on the preliminary nature of the data, the cause of this increase will require a thorough intelligence assessment,” said Glawe. “ Considerations such as the pandemic, economic downturn, loss of j uvenile outreach programs and

public safety budgetary and resource limitations are likely contributing factors. “ Thieves exploit opportunities and may look for vehicles parked in the same location or citiz ens not taking proper measures to secure their vehicles.” If you see something, say something by contacting local law enforcement if you suspect questionable activity in your neighborhood. Given the unique circumstances of 2020, the NICB is distributing this data in advance of its much-anticipated annual Hot Spots report, to be released in mid-2021. Due to the scrutiny the data receives from NICB analysts, the Hot Spots report will li ely diﬀer to a s all e tent from this initial analysis. V ehicle owners must guard against complacency and remember to heed simple tips to safeguard their vehicles. NICB recommends drivers follow four layers of protection to guard against vehicle theft. Common sense: V ehicle owners should always remove keys from the ignition, lock doors and windows and park in well-lit areas.

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Warning devices: These include visible and audible alarms. Aftermarket alarms are available for all makes and models of cars. V isual devices include column collars, steering wheel locks and brake locks. I mmobilizing dev ic es: The third layer of protection prevents thieves from bypassing the ignition and hot-wiring the vehicle. Some examples are smart keys; fuse cutoﬀs ill switches starter ignition and fuel pump disablers; and wireless ignition authentication. Trac king dev ic es: Tracking de ices are ery eﬀecti e in helping authorities recover stolen vehicles. Some systems combine GPS and wireless technologies to allow remote monitoring of a vehicle. If the vehicle is moved, the system will alert the owner, and the vehicle can be tracked via computer. Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll- ree . E . or sub itting a or on the NICB website. Source: NICB

Merchants Fleet to Buy BrightDrop EVs Merchants Fleet, the nation’s fastest-growing eet anage ent company, announced Feb. 2 its plans to further electrify its portfolio with BrightDrop, the new business backed by General Motors, offering electric first-to-last- ile products and software services. Merchants Fleet is working with BrightDrop to procure 12,600 BrightDrop EV 600s, an all-new, electric light commercial vehicle purpose-built for the delivery of goods and services over long ranges. The EV 600 is powered by the Ultium battery system and combines z ero-emissions driving with segment-leading safety features. Merchants Fleet expects BrightDrop EV 600s to enter its clients eets starting in early 2023.BrightDrop is building a smarter way to deliver goods and services. Its ecosystem of electric first-to-last- ile products so tware and services are designed to help businesses deliver goods and ser ices ore e ciently while improving overall sustainability. Source: GM

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ABRA Auto Body Repair of America Adds Four New Facilities ABRA Auto Body Repair of America is celebrating its growth as the company added four new shops to its networ one each in Montana Minnesota, Iowa and Georgia. The company has been able to support its communities with the essential services it provides, despite the many challenges brought on by the pandemic. Franchisees within the network have continued to invest in additional capacity, bringing more value to their customers. “ I am deeply proud of our ABRA facilities, who have been able to adapt on the y to the changing demands of our industry,” said Mark W ahlin, V P of franchise development and operations, ABRA. “ The team has seamlessly enhanced its repair processes to include increased sanitiz ation on key touchpoints and has found ways to safely perform estimates---all to maintain a positive customer experience.” From South Carolina to Minnesota, ABRA facilities across the country have pushed themselves to enhance their ser ice oﬀerings

ﬁnd new areas o opportunities e pand their market reach and participate in additional training. “ Our owners’ commitment to exceptional customer satisfaction extends beyond the repair as they are actively involved in their communities,” said Wahlin. “ Seeing our franchisees host food drives, giving back to causes close to their customers during a challenging year for most shows why ABRA has been in the business for over three decades.” ABRA facilities throughout the country also took time to give back to the communities they serve in 2020. ABRA St. Cloud in Minnesota used its mobile glass vehicle for Meals on Wheels deliveries to support seniors in need. Facilities also gave back to the Cystic Fibrosis Foundation through fundraising initiatives throughout the year. V isit ABRA Woodstock, ABRA Billings, ABRA Duluth and ABRA North L iberty websites to learn more about the new facilities. Source: ABRA

Industry Members Share Their Predictions for the Year by Emmariah Holcomb, glassBYTEs.com

FY 2021 is in full swing and auto glass senior leadership and business owners have shared why they thin this year is ﬁlled with optimism. “ Forecasting for 2021 was quite di cult but we were ortunate enough to open up a couple of new stores, as we believe in the brick and mortar,” explained Jon L aski, CEO at City Auto Glass, during Auto Glass Week Preview Day held earlier in J anuary. L aski said that City Auto lass has increased its staﬀ a ter having a few promising months in 2020. But he’s not the only one who’s grown from the pandemic, as Peter Brow n, president of Tiny & Son’s Auto Glass, said he’s made changes to his business too. “ I j ust added two new trucks and have trained four new technicians,” said Brown. “ I think it’s going to be okay now that people know what’s going on and how to work with us [ since the start of the pandemic] .” Ted A ndersen, vice president

of franchising at Novus Inc., headquartered in St. Paul, MN, said he’s focused on bringing the company s ﬁnancials bac to what they were prior to COV ID, in 2019. “ As it pertains to forecasting we are going to do some expansion this year, we’re bringing our collision business into the U.S. and that’s going to allow us to grow on the collision and auto glass sides,” explained Andersen. Andersen also noted that the anticipated growth aimed for 2021 will be “ tricky” as many states are still issuing lock down orders, California being one of them. “ We’re fortunate enough that we were deemed as an essential service,” said Andersen. “ I think that [ now] everyone understands how to operate through this [ pandemic] and it’ll be good going forward.” We thank g lassBY T E s. com f or reprint permission.

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Edmunds Experts Forecast 15.5 Million New Vehicles Will Be Sold in 2021 The car shopping experts at Edmunds say the auto industry is on track for greater stability and healthier sales this year, forecasting 15.5 million new cars will be sold in 2021. Edmunds analysts note this would represent a 6.5% lift over 2020. “ 2020 was an incredibly tumultuous year for the industry, but some unique market conditions helped retail sales end up in a much stronger place than anticipated, and the good news is that these should serve as some decent tailwinds into 2021,” said Jessic a C aldw ell, Edmunds’ executive director of insights. “ Despite the economic hardships faced by so many Americans during the pandemic, there’s still a large population o well-oﬀ consu ers who have been taking advantage of faorable ﬁnancing conditions and sustaining healthy demand in the new car market.”Edmunds experts put together some of the biggest trends that they predict will shape the road ahead in 2021:The new vehicle market will continue to grow more pricey and exclusive as the

pandemic drives an income divide among Americans. New car prices are skyrocketing: In December 2020 the average transaction price for a new vehicle hit an all-time record high of $40,573. Edmunds analysts expect this nu ber to go up as a uent consu ers beneﬁting ro lower interest rates and healthy stock and housing markets continue buying bigger, more expensive new trucks and SUV s. t the sa e ti e ore aﬀordable options in the new car market are growing increasingly scarce as automakers shutter their car lines, which Edmunds experts say will create a barrier to entry for many consumers and force them into the used car market. COV ID-19 vaccines will help keep auto sales steady but won’t boost them dramatically. Unlike other industries such as airlines or entertainment, automotive sales are not expected to see a dramatic retail lift post widespread vaccination distribution in retail sales were down only 8.6%. However, Edmunds experts say that a return to an in-person work

environment should help maintain sales, and they anticipate a boost in daily rentals in 2021, which generally make up 12% of new vehicle sales but sank to 7.4% in 2020. Exciting new products will help breathe life into the automotive industry. 2021 will be a standout year for new vehicles. It will see the birth of a brand-new segment in EV pickup truc s at least se en new electrified s and so e popular off-road nameplate revivals including the Ford Bronco and J eep Wagoneer. “ It comes down to production cycles and a little bit of luck, but every so often there’s a truly exciting product year for the automotive industry like we’re about to witness in 2021,” said Caldwell. “ Between the GMC Hummer, the Tesla Cybertruck and a debut vehicle from Rivian, the EV pickup truck segment is about to explode and we’re going to see even ore electrified s enter the arket. “ And under the new presidential administration, there could be the possibility of new tax credits or incentives for individuals that could finally help o e the needle

for electric vehicles, which for years have been slow to grow in popularity in the U.S.” Although 2021 is looking to be an exceptional year for the industry from a product standpoint, Edmunds experts note there are a number of uncertainties that could negati ely aﬀect sales. he chip supply shortage could throw a big wrench in production for automakers, which have only j ust gotten back into a good groove after shutting down during the pandemic,” said Caldwell. “ And there is the bigger question about what consumer demand for vehicles is going to look like in a post-vaccine world. “ L ots of additional wealth and resources have been pushed into new car purchases for now, but people have been cooped up for nearly a year. They might choose to shift their spending to experiences rather than goods, which could be a threat to car purchases.” More insight into recent auto industry trends can be found in the Edmunds Industry Center at http://www.edmunds.com/industry -center/. Source: Edmunds

60 MARCH 2021 AUTOBODY NEWS / autobodynews.com

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Distracted Driving Trend Persists Despite Passenger Complaints by Steve Hallo, PropertyCasualty360

Incidents of distracted driving persist despite more than 97% of passengers confronting a motorist who had let their focus slip from the road, according to a survey of U.S. consumers by L eithCars.com. The survey also found 22.5% of respondents had been a passenger in a crash caused by a distracted driver. Texting and browsing the internet were cited as the leading accident-causing distraction by passengers who had been in a crash initiated by an unfocused driver. They were also the most common events leading to complaints from a passenger, as 52% and 33.3% of riders, respectively, said they confronted someone about these behaviors. The risks from distracted driving are so severe that L exisNexis Risk Solutions suggested distracted driving could potentially rival DUI violations as a factor in road safety and insurance rating. Concerning the latter point, insurer The Z ebra reported getting a ticket for texting, or otherwise using a phone while driving, can raise in-

surance rates by an average of 23%. In some states, that increase can be more than 63%. Drinking alcohol, falling asleep and using a cell phone to surf the web or text were among the distractions perceived to be most danger-

While most will speak up to family, friends or colleagues driving dangerously, more than 60% of people don’t address distracted and dangerous driving issues when in a taxi or rideshare. Credit: guteksk7, Shutterstock.com

ous, the survey revealed, with reaching around for an item rounding out the top ﬁ e. Comparing attitudes around drunk driving and texting risks, the survey found that baby boomers see using a cell phone while driving as being more dangerous than drinking

and driving, while millennials found the adverse to be true. When it comes to incidents of drinking and driving, more than one in four survey respondents had ridden with someone who consumed alcohol while driving, according to L eithCars.com. Y et, slightly less than 13% felt compelled to address the obvious danger. This comes on the heels of recent news that nearly half of U.S. motorists admit to drinking and driving. The survey also found an alarming number of rideshare drivers are also partaking in distracted driving, with nearly 85% of those surveyed saying they had experienced dangerous or distracted driving in a taxi or ridesharing vehicle. peeding wea ing through tra c and being too chatty were the most cited experiences. While most will speak up to family, friends or colleagues driving dangerously, more than 60% of people don’t address these issues when in a taxi or rideshare. We thank P ropertyCasualty3 6 0 f or reprint permission.

Collision Industry Mourns the Loss of Bano Ramirez It is with sadness that we announce the passing of Bano Ramirez, a member of Mitchell International’s Solution Specialist team, on J an. 25. Ramirez touched many lives in his over 40-plus years in the collision industry. He spent 12 years with Mitchell International and previously owned and operated Bob ’ s Body and Fender in V an Nuys, CA, where he was an active member of the community, hosting many industry training events. Ramirez was a longtime member of the California Autobody Association and an invaluable contributor to its Glendale/ Foothill chapter. His positive attitude, loyalty, integrity and hard work will be remembered by all. Ramirez is survived by his lovely spouse A lison, daughters Sylv ia, Rosie and A manda, eight grandchildren and seven great-grandchildren.

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COVID’s Impact on Insurance Pricing, Coverage & Digital Trends by Steve Hallo, PropertyCasualty360

As we move into 2021, the insurance sector should expect continuing hard market conditions, according to Jim Bramblet, managing director-insurance lead for Accenture’s North American operations, who explained the pandemic will shape pricing and coverage in the year to come.

Investing in a digital brand presence can help keep an insurer top-of-mind among its potential clients in the community, making social marketing even more important during a time when face-to-face interactions are limited. Credit: RAGMA IMAGES, Shutterstock

“ Carriers are going to have to continue to look at pricing vs. risk, and ask themselves what are the current consumption patterns for assets they typically insure,” he said, giving for example the number of rebates around personal lines seen in the past year. “ What is that

going to look like going forward?” He added even outside the pandemic, carriers should think about changing consumption patterns for personal lines, given the revival in home improvement investments and “ cocooning” trends. This makes it para ount that insurers ﬁnd the right pricing for these fundamental changes in consumption patterns. Concerning coverage, the past year exposed a gap in policies around pandemics and business operations. This is particularly true for business interruption claims, which might take a public-private partnership to cover. “ There has to be some collaboration between government and insurers, whether through primary insurance, reinsurance or a government backstop,” he said, adding more needs to be done than “ waiting for relief packages to run through the government.” As previously reported, the enormity of losses stemming from COV ID is believed to be beyond the abilities of the private market to cover. From consumer-facing technologies to in-agency systems, the pandemic has propelled the industry’s investment in digital tools, ac-

cording to Bramblet, with spending on distribution and customer-facing tools showing the best ROI. For the industry to capitaliz e on this, the transition from a digital environment to a more traditional insurer/policyholder connection should be seamless. Regardless of how a client wants to buy a policy in person, through a website or on a mobile app the insurance education and research process almost always start digital now, Bramblet explained. “ Y ou want to make it as easy as possible for them to bridge from the digital world into your carrier system,” he stressed. The ability to build a personal social brand digitally is also growing in importance because of the pandemic, according to Bramblet, who explained agencies cannot at this time have a presence in their communities through traditional means such as sponsoring little league teams or attending a family picnic. “ Make the investment in a digital presence and digital brands. They have to be built,” he cautioned. We thank P ropertyCasuatly3 6 0 f or reprint permission.

Kia Niro EV Winner in Ownership Study The K ia Niro EV has been ranked No. 1 among mass-market brands in the J .D. Power 2021 Electric ehicle E perience E Ownership Study. For this inaugural study, J .D. Power surveyed nearly electric ehicle E owners on factors including cost-of-ownership, battery range and driving enj oyment to determine the likelihood of repurchasing and recommending an EV . The U.S. EV X Ownership Study, driven by a collaboration with PlugShare, sets the standard for benchmarking satisfaction with the critical attributes that aﬀect the EV ownership experience. The overall EV X ownership index score measures electric vehicle owners’ satisfaction in premium and mass-market segments across seven factors: accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enj oyment; ease of charging at home; and vehicle quality and reliability. Source: K ia Motors North America

CCC Information Services Inc. Merges, Will Go Public CCC Information Services Inc. and Dragoneer Growth Opportunities Corp. on Feb. 3 announced a definitive merger agreement between Dragoneer and CCC’s parent holding company. Upon closing of the transaction, the combined company is expected to be renamed CCC Intelligent Solutions Holdings Inc. and is expected to be listed on the New Y ork Stock Exchange in the second quarter of 2021. CCC’s mission-critical SaaS platform provides advanced AI, IoT, customer experience and network anage ent wor ow solutions to the P&C insurance economy. CCC enables more than $100 billion of transactions annually among a vast ecosystem of interconnected businesses. CCC’s network includes thousands of customers including insurers, repair facilities, automotive manufacturers, parts suppliers and other industry participants who leverage CCC’s platform to digitiz e operations, improve business performance and power better decisions in an increasingly complex and rapidly

changing market. Under Chairman and CEO G ithesh Ramamu rthy, who will continue to lead the company following the close of the transaction, CCC expects to report approximately $600 million of revenue in 2020, and has delivered a consistent track record o proﬁtable re enue growth for 20-plus years by focusing on delivering best-in-class innovations for its customers. “ Today is an exciting day for CCC as our return to the public markets provides us with additional sources of capital to accelerate innovation and increase the value we provide customers,” said Ramamurthy. “ Throughout our history, CCC has developed pioneering technology solutions focused on enabling growth increasing e ciency and empowering new possibilities for all participants in the P&C insurance economy. “ We serve a large and interconnected market that is still in the early stages of digitiz ing its operations and is growing in complexity. We believe CCC is well positioned to support customer digitiz ation in this

dynamic market. “ We are incredibly excited to begin this new partnership with Dragoneer, one of the most highly respected investors in the world, and to continue our relationship with Adent who ha e been terrific partners for the past four years,” Ramamurthy continued. “ Together, I am confident will continue to generate meaningful value for our customers and shareholders.” “ Under Advent’s ownership, CCC has cemented itself as a leading SaaS platform for the P&C insurance ecosystem,” said Eric Wei, managing director at Advent. “ Since 2017, we’ve partnered with Githesh and the CCC management team to accelerate organic growth through a focus on innovation, and we believe this sustained investment in R&D will deli er significant O or customers for decades to come. “ Advent is excited to partner with Dragoneer, with its preeminent technology investing franchise, to support CCC’s continued focus on digitally transforming the insurance economy. We have strong conviction in CCC’s growth potential and are

not selling a single share as part of the transaction.” “ CCC is one of those rare software companies that serves as the bac bone o a critical industry the P&C insurance economy,” said Marc Stad, founder and portfolio manager at Dragoneer. “ As the products we use and the cars we drive become more and more sophisticated, insurers, consumers, manufacturers and service providers require increasing amounts of support and coordination whenever issues occur. “ CCC’s advanced technology platform enables the right groups to connect quic ly and e ciently and its twenty-plus years o proﬁtable growth are a testament to the value the company provides to its customers. The CCC team’s impressive trac record o e ecution and ﬁnancial performance speaks for itself, and we are thrilled to partner with them and Advent as they work to realiz e their ambitious vision for the business.” Source: CCC

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