Farmers Leads Insurers’ Rate Hikes with 17.6% Increase
Farmers Insurance Group of Cos. raised its private auto insurance rates by a weighted average of 17.6% across 43 states in 2023, outpacing the rate hikes of its competitors but part of the broader trend in the industry, where double-digit increases have become the new norm.
states like New Jersey, Vermont and Colorado experiencing increases below 10%.
This pattern of substantial rate hikes was not unique to Farmers Insurance. State Farm Mutual Automobile Insurance Co., another industry giant, reported a 16.0%
According to S&P Global Market Intelligence’s RateWatch, not only did Farmers Insurance lead this surge, but all 10 of the top auto insurers in the U.S. also imposed double-digit increases throughout the year, a shift from the more moderate rate changes observed between 2018 and 2021.
For Farmers Insurance, the 2023 rise was approximately 3 percentage points higher than its 14.5% rate change in 2022. Nebraska witnessed the company’s highest increase at a weighted average of 30.4%. In contrast, North Carolina had the smallest rate hike at 1.8%, with other
weighted average rate increase in 2023. Similarly, Berkshire Hathaway Inc.’s GEICO Corp., despite having the lowest effective rate change among the top insurers at 10.1% in 2023, had experienced the previous year’s highest at 17.2%.
The industry-wide trend of escalating rates was further evidenced by the nationwide effective rate change. In 2023, 43 states and Washington, D.C., reported an effective rate change greater than 10%, leading to a national average increase of 14.0%—a significant jump
REGIONAL NEWS
Idaho Bill Impacting Aftermarket Auto Parts Stalls
A proposed bill in Idaho has been held in a state Senate committee following concerted efforts by the Auto Care Association and its members.
SB 1233 would amend a section of Idaho state code to add headlamps, fenders, hoods, tail lamps and bumper components to the definition of aftermarket crash parts; add language to written disclosure statements telling consumers that non-OEM crash parts may affect safety and performance of a vehicle, and recommend consumers consult with a qualified industry expert or repair shop before making any decisions regarding the use of nonOEM crash parts.
The Auto Care Association
testified before the Idaho State Senate Commerce and Human Resources Committee, contesting SB 1233. Tod Moore, representing the association, spoke about the bill’s potential adverse effects on Idaho’s aftermarket sector, which is a significant contributor to the state’s economy.
“In Idaho specifically, our industry provides over 12,492 jobs, generates $1.6 billion in economic activity, and provides $679 million in wages,” Moore said. “SB 1233 would have immediate, detrimental effects on this otherwise vibrant aftermarket ecosystem, not to mention the negative effect it will have on consumers.”
l CONTINUED ON PAGE 17 REGIONAL NEWS
CA Insurance Official Speaks At SCRS Open Board Meeting
By John Yoswick Autobody News
The California Department of Insurance receives about 50,000 written complaints a year, about 42% of which involve auto insurance. Of those, about 10% come from shops.
“Yes, we do handle body shop complaints,” Tony Cignarale, the agency’s deputy commissioner of consumer services, told attendees at a Society of Collision Repair
l CONTINUED ON PAGE 10
INSIDE THIS ISSUE
Tony Cignarale of the California Department of Insurance said insurers in that state must identify what estimate line items were adjusted, and provide support showing the changes were reasonable
AK / CA / HI / ID / MT / NV / OR / WA / WY WEST EDITION YEARS 42 AUTOBOD YNEWS.CO M Vol. 42 / Issue 3 / March 2024
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Columnist Mike Anderson: How to Ensure You – and Your Techs –Have Adequate Business Insurance Coverage 4 Columnist Abby Andrews: Collision Repair Industry to Be Influenced by Supply Chain, Vehicle Complexity in 2024 18 Columnist Stacey Phillips Ronak: CES 2024 Unveils Future of Transportation Technology 6 Columnist John Yoswick: Mitchell Joins CCC, Audatex in Giving Users Flexibility with Blend Formula 12 PRESORTED ARANDST D S.U. AGPOST E AIDP P ERMIT 8#28 ,ANAHEIM CA P.O. BOX 1516, CARLSBAD, CA 92018 Change Service Requested
2 MARCH 2024 AUTOBODY NEWS / autobodynews.com
REGIONAL
autobodynews.com / AUTOBODY NEWS MARCH 2024 3 Contents Batenhorst Named President of CAA Glendale/Foothill Chapter 28 CARSTAR Jacobus in Washington Expands with High-Tech Facility 20 Consumer Watchdog Saves Californians $5.5 Billion in Insurance Overcharges 17 Idaho Bill Impacting Aftermarket Auto Parts Stalls 1 La Jolla Concours Set to Return in April 30 NABC’s Palm Springs Golf Tournament Raises Money for National Programs 34 Shell Shuts Down Hydrogen Stations Amid California Fuel Challenges 29
NEWS ADAS Find Joins CIECA 16 ASE Welcomes New Leadership 20 Autel, MOTOR Partner to Share OEM Repair Data 29 BASF Announces Blended Learning Approach 31 BASF Introduces One-Coat Clear 39 Biden Administration Pledges $5 Billion to Boost Semiconductor R&D 48 Driven Brands Hits Fundraising Milestone 40 Empire, TechForce Foundation Offer Scholarship 42 Farmers Leads Insurers’ Rate Hikes with 17.6% Increase 1 Ford, GM Taking Steps to Build More Affordable EVs 36 GOP Governors Want to Stop Biden’s EV Mandate 31 Hertz Pausing Polestar Purchases in Shift from EVs 44 I-CAR’s Collision Careers Launches Innovative Talent Drive 42 Lincoln Closes 100 Dealerships, Targets Further Reductions 44 Mitchell 1 Offers Scholarship 43 NHTSA Announces $350M in Grants to Improve State Crash Data Systems 49 Opus IVS Is I-CAR Sustaining Partner 38 PPG Introduces PPG ADJUSTRITE Tool 34 Self-Driving Cars’ High Accident Rate Sparks Concern 43 Summit Partners Invests in CollisionRight 38 Tesla Fan Drawing Imagines Reported Upcoming $25K EV 46 Toyota Issues ‘Do Not Drive’ Warning for 50,000 Older Vehicles 47 U.S. House Passes Tax Bill That Could Benefit Auto Repair Businesses 39 U.S. New-Vehicle Sales Slow in January Despite Price Drops 47 Vehicle Dependability Declines in 3-Year Ownership 40 West Virginia, South Dakota Introduce Bills Supporting ICE Vehicles 50 NATIONAL NEWS Index of Advertisers 3M 9 ADAS Calibration ������������������������������������� 10 AirPro Diagnostics 8 American Chevrolet 31 Audi Wholesale Parts Dealers 34 Auto Data Labels 19 Axalta 16 BMW Wholesale Parts Dealers 39 Camp Chevrolet 32 Car-O-Liner 2 Car Pros Kia 42 Car Pros Kia Renton 40 CCC Intelligent Solutions 17 Certified Automotive Parts Association 36 Chase Chevrolet��������������������������������������� 48 Citrus Kia-Ford 51 Classifieds 50 Colortone Automotive Paints ������������������� 48 Corwin Buick-GMC 36 Courtesy Chevrolet San Diego 21 DeDoes Industries, Inc 20 Dublin Chevrolet 18 FH Dailey Chevrolet 31 Ford Wholesale Parts Dealers 43 Future Nissan of Roseville 40 Galpin Motors 25 Garden Grove Kia 29 GM Wholesale Parts Dealers 41 Honda-Acura Wholesale Parts Dealers 26-27 Hyundai Wholesale Parts Dealers 39 Induction Innovations ������������������������������ 11 Kendall Subaru of Marysville 44 Kia Downtown Los Angeles 46 Kia Motors Wholesale Parts Dealers ������� 37 Kia of Carson 4 Kia of Irvine 29 Launch Tech 7 Lithia Honda of Medford 49 Mazda Wholesale Parts Dealers 47 Mercedes-Benz Wholesale Parts Dealers 47 Michael Hohl Motor Company 51 MINI Wholesale Parts Dealers 39 MOPAR Wholesale Parts Dealers 33 Niello Audi 28 Nissan/Infiniti Wholesale Parts Dealers 45 Nissan North America, Inc 23 NorthAmerican Bancard �������������������������� 30 Polyvance 28 Porsche Wholesale Parts Dealers 49 RelyOn Technologies�������������������������������� 52 Roseville Kia 38 Sandberg Volvo Cars 47 Santa Margarita Ford 44 Santa Monica Audi 38 SATA Spray Equipment 5 Southern California Collision Equipment 13 Subaru Wholesale Parts Dealers 51 Sunmight USA 15 The Bay Area Automotive Group 35 Vin Label Shop 46 Volkswagen Pasadena 42 Volkswagen Wholesale Parts Dealers 49 Volvo Wholesale Parts Dealers ���������������� 48 Advertise in our Classified Section for $50 per column inch! kcashman@autobodynews.com 800-699-8251 AUTOBODY www.autobodynews.com
Mike Anderson How to Ensure You—and Your Techs— Have Adequate Business Insurance Coverage 4 Abby Andrews Collision Repair Industry to Be Influenced by Supply Chain, Vehicle Complexity in 2024 18 Stacey Phillips Ronak CAA Glendale/Foothill Chapter Introduces President Andrew Batenhorst, Discusses SCRS Blend Study 22 Caliber Collision Technician Apprentice Program Shows Tremendous Growth 14 California Techs Get a Jumpstart on Tools Thanks to Toby Chess 16 CES 2024 Unveils Future of Transportation Technology 6 CIF Charity Event Raises Awareness, Funds for Collision Repairers in Crisis 24 Spanesi Americas Showcases Products at SEMA 2023, Shares Future Plans 8 John Yoswick CA Insurance Official Speaks at SCRS Open Board Meeting 1 Mitchell Joins CCC, Audatex in Giving Users Flexibility with Blend Formula 12 MSOs Use Variety of Models for Handling Scanning, Calibration Work 32
COLUMNISTS
How to Ensure You—and Your Techs—Have Adequate Business Insurance Coverage
One of my team members unfortunately lost her home to a fire a while back, and to this day, several years later, she’s still going back and forth with the insurance company, partially related to the personal property contents of her home. Put yourself in her situation: Would you be able to list every item in your home and know when you bought it? Do you have the receipts? I know I couldn’t do it.
That made me start thinking about this not just personally, but also for anyone who owns a business. Hopefully this will never happen, but if a fire or other catastrophe struck your shop, would you be able to list all of its contents and know when and what you paid for each item?
One good first step you need to take: Once a year you should absolutely ask your CPA for a copy of your asset list. Look it over for items you’ve added since it was last updated, and for items you no longer have that should be deleted.
Next, you need to have documentation related to all those items. Obviously, keeping your receipts for every asset purchase is the best way to document it all. Another set of copies—paper or digital—of those records should probably be kept off-site as well.
I would also encourage you to once a year to walk through your shop using your phone to create a video, narrating it as you go, as another way to document what you have. Again, keep a copy of that video in a safe, in the cloud or otherwise offsite. It could help remind you visually of all the assets in your shop, so that if the unthinkable happens, you’re not remembering assets you forgot about—a grinder, a torque wrench, air hoses, etc—until months after you’re already settled a claim.
The topic of business insurance is so important that I invited my friend David Willet from Spark Underwriters to come speak to some of my Spartan 300 20-groups. Spark Underwriters specializes in business insurance for our industry nationwide. As its website says, they are more than insurance people: they are ASE certified, I-CAR trained and involved with industry groups like AMi, the Collision Industry Conference (CIC), CIECA and many shop associations. David shared the suggestions I wrote about here regarding documentation of your assets, and
he agreed to review each member’s business insurance policy.
That led to a discussion about coverage for your employees’ tools. Your policy probably includes some
the business already has this.”
He said business owners should understand any co-insurance provisions in their policy. Those are provisions that imposes a penalty on
type of coverage for this, but as David has found in reviewing many shops’ policies, it’s often for only a small amount of coverage—sometimes as little as $500. We all know technicians who have tens of thousands of dollars invested in their tools. So any technicians reading this article might want to check with their employer about how much coverage the shop has for your tools.
“Getting their tools covered through their own personal insurance will likely be very expensive, and it adds to the challenge of getting good insurance on the rest of their personal lines,” David said. “So having adequate coverage for their tools through the business can be a nice employee benefit at a time when shops are challenged with finding and retaining technicians. Business owners should read their policy carefully when it comes to employee tool coverage. There are usually restrictions, such as a per-tool or per-employee limit. If there’s a $1,000 per-employee limit, that doesn’t go very far. The tool box itself far exceeds that amount.”
Just like a business or home owner, David recommends technicians, too, maintain good documentation of their tools at the shop.
“We recommend that in your policy handbook, you tell them about the insurance as a benefit, but require them to provide a list and video every year of the tools they have,” David said. “That way at the time of any loss,
an insured’s loss recovery if the limit of insurance purchased is not at least equal to a specified percentage of
the value of the insured building or business personal property.
“You need to understand what those provisions are, and if you can get the co-insurance removed, that’s key, because then all of a sudden, all you’re doing is trying to make sure you get paid for what you have,” David said. “Otherwise, you’re having to prove you had enough insurance, or you might get hit with a penalty.”
“Business owners should read their policy carefully when it comes to employee tool coverage.” DAVID
My Spartan 300 group members really appreciated receiving David’s insights about their business insurance policies. Now is a great time to take some steps to document your company assets, and to talk with your business insurance advisor about the details of your policy.
4 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Shop owners should maintain documentation of all of their business’ assets, and encourage their employees who own tools to do the same.
Mike Anderson — From the Desk of Mike Anderson
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CES 2024 Unveils Future of Transportation Technology
By Stacey Phillips Ronak Autobody News
Innovations in connected and autonomous mobility were highlighted this year at the CES 2024 Show, Jan. 9-12 in Las Vegas, NV. Owned by the Consumer Technology Association (CTA), CES showcases consumer technologies in various product categories, including artificial intelligence, augmented and virtual reality, robotics, smart cities and vehicle technology. More than 135,000 attendees had the opportunity to see the latest tech trends on display from more than 4,300 exhibitors.
Show organizers said CES is one of the world’s largest and fastest-growing auto mobility and transportation events. With more than 600 mobility exhibits, showgoers could view the future of autonomous and electric vehicles (EVs), micromobility, software-defined vehicles (SDVs) and flying cars, as well as assistive mobility and safety systems.
Automotive exhibitors included BMW, Honda, Hyundai, Kia, Magna, Mercedes-Benz, Paccar, Recaro, Sony, Supernal, Togg and VinFast.
Announcements were made by automakers throughout the week.
Honda introduced the “Honda 0 Series,” launching in 2026; Kubota showcased the new fully electric, multi-purpose Agri Concept vehicle; and VinFast unveiled VF WILD, a new electric pickup truck concept vehicle.
Radar Architecture for Autonomous Mobility Systems, which received a CES® 2024 Innovation Award.
“We are honored to be recognized with the prestigious award,” said Steven Hong, vice president and general manager of Radar Technology at Ambarella.
The award recognized the company’s investment and innovation in pioneering centralized 4D imaging radar processing, which Hong said enables significantly higherperformance radar systems through the combination of the company’s Oculii™ artificial intelligence (AI) radar technology and CV3-AD AI domain control system-on-chip (SoC) family.
“For the auto body industry, this innovation will provide a significant benefit to customers with 4D imaging radar sensors in their vehicles, as these radar modules are typically installed behind the bumper in several different locations,” Hong said. “Because Ambarella’s centralized radar technology enables radar heads without any processor inside, the cost of replacing those processor-less radar modules after an accident can be greatly reduced.”
ARaymond
ARaymond shared its fastening, electrical connection and cleaning systems solutions for future vehicle needs. The fastening department displayed wire harness and tube routing fasteners, as well as high strength clipping solutions for various EV applications. The cleaning systems group showcased sensor and camera cleaning system components and assemblies to demonstrate innovations made in that growing field.
“We’ve seen huge growth in the automotive and mobility area at CES, not only what you expect with mobility with cars, but we’re seeing it on land, air and sea,” said Gary Shapiro, CTA’s president and CEO.
Autobody News talked to some CES 2024 exhibitors and participants.
Ambarella
Ambarella demonstrated its developments in autonomous vehicle (AV) technology, including its Centrally Processed 4D Imaging
Daniel Marin, business development manager for Mobility/EV Solutions, ARaymond North America, said the automotive market is shifting with the push for EVs or electrification and challenges are becoming apparent with new or different assemblies being added to vehicles.
“As electric vehicles are ramping up in volumes on the market, there is a greater need for simplified assembly techniques and serviceability aspects that are challenging the standard way vehicles are constructed,” said Marin.
He said vehicle designs are going toward lightweight, simple designs that are fast to assemble while keeping in mind the need for service down the road.
OWL Autonomous Imaging
OWL Autonomous Imaging demonstrated its Advanced DriverAssistance Systems (ADAS) safety technology for nighttime pedestrian automatic emergency braking (PAEB). It combines the company’s digital high-definition thermal camera with artificial intelligence software trained to find pedestrians and measure their distances from the car.
“This combination provides ADAS computers with the information
SHM also announced its collaboration with Epic Games and unveiled technology that can simulate external environmental conditions such as information from other vehicles, pedestrians, terrain and weather.
Squad Mobility
Squad Mobility, a Dutch company founded by Robert Hoevers and Chris Klok in 2019, showcased the Squad Solar City Car and the special edition solar buggy.
The two-person car is about 6.5 feet long and automatically charges its batteries with solar energy from the integrated solar panel on the roof. The solar panel can charge up to 19.2 miles in Las Vegas. The vehicle is powered by 48-volt electric motors and batteries, which allows it to be used at night, in winter, or indoors, and can be charged at 220 volts or 110 volts.
they need to avoid collisions day or night, even when the road ahead is obscured by rain or snow, fog or smoke,” said Chuck Gershman, OWL AI CEO.
Gershman said the ideal position for a forward-looking thermal camera is behind the rear-view mirror.
“Since the infrared radiation detected by thermal cameras will not pass through glass, new windshields have been developed that include a small infrared transmitting insert in front of the camera,” he explained. “If the windshield must be replaced after a collision, this specific type must be used.”
Sony Honda Mobility
Sony Honda Mobility (SHM) exhibited its prototype vehicle, AFEELA, introduced last year and currently in the development stage for production.
The four-door sedan is expected to be produced at one of Honda’s 12 plants in the U.S. Its overall styling concept is based on movement, color and sharpness.
According to a company representative, “The AFEELA prototype invokes mobility that people can feel as an intelligent entity through new technology.”
During the show, Representative Director, President and COO Izumi Kawanishi discussed the company’s focus on “AI for ADAS” and “Mobility as a Creative Entertainment Space.”
The four swappable and portable batteries provide a range of 62 miles, excluding solar.
Regarding repairability, Hoevers noted the vehicle’s bodywork is injection-molded plastic. “It can be easily replaced and the solar panel is handled the same as a front windshield,” he explained.
Indy Autonomous Challenge
A CES highlight was the Indy Autonomous Challenge (IAC), in which university teams worldwide compete in a series of challenges. The goal is to advance technology that can speed up the commercialization of fully autonomous vehicles and deploy ADAS to increase safety and performance. TUM Autonomous Motorsport from the Technical University of Munich won this year’s challenge, reaching speeds of more than 150 mph.
IAC also announced the launch of its Next Gen Autonomous Vehicle Platform, the IAC AV-24.
“This cutting-edge platform represents a significant leap forward in autonomous hardware and software technology,” said Paul Mitchell, IAC’s president. “After three years and more than 7,000 miles of high-speed racing, the IAC and its industry partners have evolved the robot inside the IAC AV-24 to become smarter and more capable, providing the world’s fastest autonomous racecar with increased functionality that will enable AI drivers to reach new levels of performance.”
6 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Ambarella’s centrally processed 4D imaging radar architecture for autonomous mobility systems received a CES® 2024 Innovation Award
During CES, ARaymond team members shared fastening, electrical connection and cleaning systems solutions for future vehicle needs
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Spanesi Americas Showcases Products At SEMA 2023, Shares Future Plans
By Stacey Phillips Ronak Autobody News
At Spanesi Americas, COO Tim Morgan said the company is passionate about offering collision repair equipment and training to meet customers’ needs.
During the 2023 SEMA Show in Las Vegas, NV, Spanesi showcased various products. These included the company’s 106 EXT Bench,
and painting stations set up to provide attendees the opportunity to rate their skill level.
“Spanesi is always looking for new ways to innovate and always has things in the pipeline,” noted Morgan. “This year will be no different with exciting products to be launched throughout 2024.”
This includes additional process and course offerings that will be available at Spanesi’s research and training center in Naperville, IL, and regional centers throughout the U.S. and Canada.
multibench, Touch Measuring System and a line of MIG/MAG and spot welders.
Spanesi also featured its “Pull Up” Glue Pull system, which has many levels of kits.
New this year were virtual welding
The company’s roots date back to 1958 when Orazio Spanesi, a body technician with a passion for “the tools,” began working in a body shop in Italy when he was 14. After learning the required skills and techniques to repair vehicles, he opened a shop in 1969 to pursue high efficiency and OEM quality repairs. A decade later, Spanesi began developing and manufacturing equipment in Padova, Italy, to ensure it met the performance he strived to achieve.
Since then, the Spanesi leadership
Do you know Bob?
Bob’s a Shop Manager. Age 37.
team has stayed in contact with body techs to meet the needs of the collision industry. In 2019, Spanesi celebrated its 50th year in business by revamping its showroom and training center at the Italy factory that hosts educational events associated with the Spanesi Academy program.
Since Spanesi was founded, Morgan said it has stayed true to its mission of not offering tools that collision repair technicians have to adapt to, but instead, making tools tailored to technicians’ needs and meet OEM requirements. The company is part of 38 certified OEM programs in North America and 46 globally.
The company has a worldwide presence, providing sales, support and consulting. In addition to the U.S. headquarters in Illinois, the company operates offices in Bangkok, China, France, Germany and India, and has a global headquarters in Padova, Italy.
Spanesi also owns and operates a collision repair facility in Italy where products are tested daily.
These include Spanesi products and processes to improve repair efficiency.
Morgan said the company takes pride in continuing to innovate, design and manufacture a range of collision repair equipment, such as the Touch measuring system, multibenches, welders, paint booths and vacuums.
As the company grows, Morgan said they will continue to add staff internally and through distribution to meet customers’ needs.
“Spanesi is beyond an equipment supplier,” said Morgan. “With our many years of vast experience, we serve as coaches, trainers and advisors to our customers for longterm proven results.”
He hasn’t looked in the mirror and seen the ambitious young man he used to be in years. He’s stuck at the shop trying to troubleshoot DTC codes, pulling his hair out and missing target delivery dates.
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8 MARCH 2024 AUTOBODY NEWS / autobodynews.com
The Spanesi team at SEMA 2023
During SEMA 2023, Spanesi COO Tim Morgan, left, Fred Randazzo, center, and Constantine Uliano, right, demonstrated virtual reality training at the company’s booth
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Specialists open board meeting in Palm Springs in January. “I know some [state insurance] departments don’t, and there was a time a few decades ago when we didn’t either.”
Cignarale opened his presentation at the meeting by noting he’s an attorney but grew up in a body shop family.
“My first day at the shop was very interesting,” he said. “I was 3 years old, and my father was in the paint booth. I saw this bright green paint on the bench, and I thought, that’s cool. So I grabbed it, but there was no lid on the can. And I got showered with green paint. So it took about three weeks to get rid of the green. That’s when I think I really knew that this was not the career for me.”
Cignarale was asked about various aspects of state regulations involving body shops and insurers. One such regulation requires insurers in California to identify each line of an estimate that was adjusted and, if challenged, provide support showing that each of those changes was reasonable. But shops there say insurers often don’t provide any support for the changes, or just say some charge “isn’t customary in the
market.” Cignarale was asked if such a statement was an adequate support that an adjustment was reasonable.
“In our opinion, no,” Cignarale said. “Our first stop is: What’s in the software program that was used. ‘Not customary.’ What does that mean? Does that mean they have an agreement with their DRP shops
“We do get some tension… with regard to some of the outcomes because we’re not a judge, we’re not a jury.”
TONY CIGNARALE
DEPUTY COMMISSIONER OF CONSUMER SERVICES, CALIFORNIA DOI
that they’re not going to [charge for] those operations and then they’re using that as a basis? That wouldn’t be sufficient for us to accept. So it really kind of depends on the issue, but at the get-go merely that is not enough.”
But like two other state insurance commissioners who spoke at SCRS meetings last year, Cignarale said his department can only do what state laws allow it to do.
“We do get some tension…with regard to some of the outcomes because we’re not a judge, we’re not a jury,” he said. “We don’t say, OK, you want five hours for this operation,
they said two, so we’re going to split it the middle and say three. We don’t have that authority.”
Cignarale was asked how shops in other states could better get their state insurance department to regularly interact with the industry as his has. He said some of it can be a staffing issue. When he tells those from other states’ insurance regulatory agencies he has 190 people handling complaints—often specializing in auto, home or health insurance issues—those other states may point out they have only 50 people in their whole department, with three generalists handling all complaints. But he recommended having a state association try to set up a virtual meeting with insurance regulators as a way to “get a foot in the door.”
“Try to make that connection and maybe offer to put in most of the legwork” for setting up and promoting the meeting to the industry, Cignarale suggested. “We could put in the legwork [on virtual meetings held with the industry in California], but in other states, the associations may have to put in a lot of the work to get things rolling.”
from the 11.4% national average increase recorded in 2022.
States like Nevada, Minnesota and Washington faced some of the steepest increases, with Nevada topping the list with a 28.3% rate hike. At the other end of the spectrum, Hawaii and North Carolina recorded the lowest weighted average effective increases at 3.8% and 4.3%, respectively.
The continuous climb in rates over the past two years has resulted in substantial cumulative increases. Texas emerged as the state with the highest cumulative rate increase over the two-year period at 45.5%, closely followed by Ohio with a 38.9% rise.
The data was sourced from disposed private passenger auto rate filings collected by S&P Global Market Intelligence and submitted to the Department of Insurance in various states.
10 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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4. Mini-Ductor® Venom® HP (2020) – Power redefined. Packing a hefty 1800-watt punch, this latest release can quickly heat a bolt in 3-5 seconds, making work more efficient and faster.
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Induction Innovations’ Mini-Ductor® series was meant to free up components quickly using induction heat. When applied to ferrous metals such as iron and steel, an eddy current heats them within a mere 3-15 seconds. Our products leverage this by exciting the molecules, harnessing the resistance they emit to rapidly heat applications to free them up.
With the Mini-Ductor® series, you can tackle challenges like Loctite, rust, and more. Seized components are quickly freed up, saving time and frustration. Our Mini-Ductor® line is designed to help techs cut down on ticket times and say “Forget the Torch!”
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autobodynews.com / AUTOBODY NEWS MARCH 2024 11
SPONSORED EDITORIAL
Mitchell Joins CCC, Audatex in Giving Users Flexibility With Blend Formula
By John Yoswick Autobody News
Mitchell International said the company’s cloud estimating system will now allow users to set up at the profile level their own default settings for clear coat, three-stage, two-tone, blend, finish sand and buff, de-nib and finesse, and refinish adjustments.
“Being at the profile level, you can set up one for walk-ins, and a different one for each insurer, so giving a ton of flexibility to our customers,” Jack Rozint of Mitchell International said in making the announcement at the latest Collision Industry Conference (CIC), held in Palm Springs.
Rozint was asked if any of its formulas for those items will be changed.
a CIC committee presentation about the committee’s study of 26 vehicles—not connected to any particular automaker nor type of shop—for which significant repair problems were found during a postrepair inspection.
“About 50% of them had moderate to severe frame issues that were unaddressed,” said Daniel Rosenberger of BASF, a committee member.
Dent said the committee’s presentation highlighted the cost of bad repairs to everyone— shops, consumers, insurers and automakers—and demonstrates the need for all segments of the industry to work together on the problem.
“I think insurers and the OEMs probably should take this as an opportunity to get engaged to try to solve this,” he said. “I know that I want to have that conversation for sure. If there are insurers who’d like to share in that, I’d love to have it.”
ADAS-Related Refinish Issues
Another reason for the measurement: It can help document what was done to the vehicle since shops cannot rely solely on a successful calibration of the system as an indication that all refinish procedures were followed.
“We’re going to put our money where our mouth is in that sense because it is important.”
DAN DENT NISSAN MOTOR COMPANY
“If I don’t put it back to the condition that’s asked for by the OEM [and paint manufacturer], it can still pass calibration but not actually read correctly,” Brown said. “So we need to make sure we obtain the repair procedures, and we actually get them [applied] to all cars involved.”
The back of the bumper cover needs to be masked or protected during refinish, Wildman said. “You
Make the Industry a Better Place to Work
Also during CIC in Palm Springs, Andrew Batenhorst, manager of Pacific BMW Collision Center in Glendale, CA, said he personally was “extremely embarrassed and disappointed” at what a survey of collision repair technicians found last year. The survey, commissioned by I-CAR and SCRS, found that among more than 800 responding technicians, only about 7 in 10 said they were satisfied with their career, and as a group they have a negative “net promoter score,” meaning the majority would not recommend the career to friends or family. Only about 15% said their benefits included health insurance, paid time off or a retirement plan, and about a similar percentage said compensation plans lead to skipped steps during repairs.
“Our defaults have not changed at this time,” Rozint said.
Mitchell becomes the third of the Big 3 estimating system providers to provide greater flexibility to users on establishing blend times that differ from the default 50% of full refinish. The Society of Collision Repair Specialists (SCRS) has been among those calling on the information providers for a blend formula change since the association conducted a study in 2022 that showed blending takes more time than a complete panel refinish.
OEM to Check on Certified Shops
In another announcement at CIC, a Nissan Motor Company representative said this spring, the OEM will begin doing repair quality audits at its certified body shops.
“In April, we’re going to start doing inspections to make sure that our shops are doing what they’re told to do per our processes,” said Dan Dent, who oversees the certified collision repair network for Nissan. “We’re going to put our money where our mouth is in that sense because it is important.”
Dent’s announcement followed
Another panel discussion at CIC focused on some of the cautions related to refinishing bumper covers or other parts installed over ADAS-related radar sensors. Jeff Wildman of BASF and Ryan Brown of AkzoNobel noted “radar-approved” colors must not be tinted—doing so can impact the ability of the radar to perform as designed through the finish—and therefore more blending around such parts may be required. Film thickness must be consistent over the radar area—so no blending of base or clear coat can occur over these areas—and total film build must be within the range provided by the automaker and paint manufacturer.
“If it says two coats of base coat, it’s two coats of base coat, not a third coat because I have some paint left in the gun,” Wildman said. “It’s two coats because that third coat could make the radar not work.”
Brown and Wildman agreed the total film build should be measured after refinishing.
“Painters have kind of like a fingerprint or a DNA of how they spray,” Brown said. “And so they’re generally fairly consistent. But across a field of different technicians, they’re all going to be vastly different [from one another]. And whether a part is painted lying out flat or standing up can influence the amount of the paint layer that is on there.”
don’t want lot of overspray on the back of that bumper because that’s adding more material between the radar and whatever is out there that it’s bouncing off of,” he said.
Brown said all of this points to the need to make sure the refinish department has easy access in the paint shop to OEM and paint manufacturer refinish procedures related to underlying radar sensors.
“We really haven’t had a time in years past where the responsibility for refinish technicians has been the safety of the people driving the car,” Brown said.
“We have only one group of people, in my opinion, to blame for the technician shortage, and that’s us right here,” said Batenhorst, who serves on the SCRS Board of Directors. “We have not made this an attractive industry to work in. My food for thought would be: As a CIC body, we may want to consider how we develop leaders and the type of skills that are needed for the current influx of people that are getting into managing shops. Because that to me is the lowest-hanging fruit that’s out there. If you want to see people start coming into our industry, we ought to make it a lovely place to work. And that’s not just pay. It’s not just benefits. It’s how we as leaders make ourselves available, to be involved with quality control, with process, with repairs, with all aspects of running a shop. And to me, it was disappointing to see that kind of feedback come through on that survey.”
Batenhorst urged shops—whether at CIC or not—to take the issue seriously.
“The answers are out there. It’s just up to us if we’re going to make a difference or not,” he said, drawing applause from CIC attendees.
12 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Ryan Brown of AkzoNobel, left, and Jeff Wildman of BASF, center, discussed ADAS-related refinish issues during a panel discussion moderated by Aaron Schulenburg, right
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Andrew Batenhorst, manager of a Southern California shop, said the findings of a survey of 800 technicians show the industry could do a lot to improve working conditions for employees
autobodynews.com / AUTOBODY NEWS MARCH 2024 13 Providing premium collision equipment for mechanics and technicians WE SERVE Areas Scan H e MAN U FA C T U R E R S
Stacey Phillips Ronak — Solving the Tech Shortage
Caliber Collision Technician Apprentice Program Shows Tremendous Growth
Like others who want to make a difference in the collision industry, Caliber Collision recognized the critical need to address the technician shortage.
“We’re all affected by it,” said Eddie Hightower, Caliber’s senior vice president of sustainability/social responsibility. “The industry, drivers and policyholders are all impacted by not having enough technicians.”
Hightower said Caliber realized this problem would not get better unless someone took action.
now leads TAP.
The program consists of 16 competencies based on I-CAR training. It typically takes apprentices about 10 months to one year to complete.
About three to four months into the program, apprentices begin helping their mentors work on production vehicles. They must demonstrate they meet the required competencies before graduating.
However, the training doesn’t end there. Apprentices are watched closely for the next six months to ensure
“Given our position in the industry, we felt a special obligation to do our part,” he said.
After much research and discussion, the company created the Technician Apprentice Program (TAP) in 2022. The program was spearheaded by Yohanna Peet, Caliber’s TAP’s senior program manager.
“Scaling TAP across our organization is one of my proudest career moments,” said Peet. “I had the opportunity to engage with teammates across the country to understand what was important to them through their journey in TAP.”
She said the bottom line for all is purpose.
“Our mentors felt a responsibility to develop the next generation of technicians,” she said. “Many of them shared the same sentiment, ‘Someone taught me; now it’s my turn to teach.’ For many of us, TAP is our opportunity to give back to this industry that has given so many of us, so much.”
TAP was formally launched that year to Caliber’s 30,000 teammates at 1,700 locations in 40 states.
Unlike other industry programs, Hightower said TAP is focused on skills development.
“It is a competency-based program that is somewhat different from some of the other time-based programs available that are two to three years in length,” explained Hightower, who
vehicles are repaired to pre-accident condition and are safe to drive.
“We want to make sure that our apprentices know how to do the job of a technician,” said Hightower.
As the program began rolling out, experienced technicians were asked to help train body helpers to become fullfledged technicians.
Hightower said they pass on knowledge and expertise daily but often don’t realize they are doing it. By formalizing the program, supporting mentor techs and incentivizing them with a bonus, Caliber is finding mentors with much success.
After experiencing what it is like to help an apprentice, Hightower said mentors typically look forward to working with their next mentee.
“Our mentor techs benefit from the program because they have a person working on their team who is actually turning a wrench,” he said.
Another difference compared to other industry programs is apprentices are paid more than the typical entrylevel wage. They also receive health benefits and are eligible for a 401(k) retirement program with a company match. Upon graduating, they are provided with a tool allowance as a gift.
“They receive the benefits of being an actual teammate from day one, and when they graduate, their earning potential is around $70,000,” said Hightower.
Apprentices earn I-CAR and welding certifications, as well as the EPA AC certification.
Caliber has found these benefits have helped reduce the turnover rate among technicians.
Hightower said the program has really taken off; the goal is to continue building it out.
In its inaugural year, Caliber graduated more than 250 techs. In 2023, more than three times that number of technicians completed the program. About two-thirds of Caliber’s locations are now participating in TAP, which equates to 2,000 active apprentices teamed up with 2,000 mentors.
With the technician shortage worsening, Caliber’s goal is to continue producing 2,000 technicians a year for the industry.
“The only limiting factor is having enough mentors and technicians to fill the need,” he noted.
Throughout the country, field recruiters visit high schools and trade schools looking for participants.
Although the average age of apprentices is 18 to 21 years old, there are older participants looking to change careers, such as those in the technology sector. Caliber has also found many women interested in careers as technicians.
For students who are looking for a hands-on career focused on art and technology, Hightower said this is a perfect fit.
“We call them artisans because they can look at a crumpled fender on a car and see what they can produce,” he said.
Hightower said this is a big deal to apprentices.
“These are lifelong skills that are fully transferable,” said Hightower. “We’re changing their lives by setting them up with a skill they own.”
Landon learned about TAP while attending the collision repair program
at Tennessee College of Applied Technology. He has been enrolled in Caliber’s program for about a year.
“I have learned many of the nuances and procedures essential for the best outcomes possible while also managing my workflow and time,” he said. “Better time management leaves more room to produce better work.”
Since joining TAP and being paired with a mentor, Landon said he feels as if he can accomplish twice as much in the same amount of time without stress.
Gabriel, who has been at Caliber for nearly six years and currently works at Caliber Milpitas in California, decided to become a mentor to share his knowledge with the younger generation.
“As an apprentice myself in this industry, I understand how hard it is not having a mentor to help me improve,” said Gabriel. “I wanted to make a change by being there for someone like me.”
Gabriel has worked with a few apprentices, demonstrating basic teardowns and repair methods.
“We start with plastic welding and repairing bumpers, then move on to dents and using the correct tools to pull,” he explained. “I teach apprentices how to remove spot welds without damaging panels and allow them to practice.”
Gabriel shows apprentices how to rack up cars correctly on the frame machine when learning how to do sheet metal pulls. He encourages apprentices to keep an open mind when repairing vehicles and stresses the importance of organization and quality.
“I teach each apprentice the seriousness of safety while repairing vehicles, and that includes disconnecting batteries to make sure that we are safe during repairs,” he said.
Gabriel stressed the importance of mentoring the next generation by building their confidence.
“That way, when they go out on their own, they know they can do their work and not question their ability,” he said.
14 MARCH 2024 AUTOBODY NEWS / autobodynews.com
TAP was formally launched in 2022 to Caliber’s 30,000 teammates at 1,700 locations in 40 states.
About two-thirds of Caliber’s locations are now participating in the Caliber Technician Apprentice Program.
Caliber’s goal is to produce 2,000 technicians a year for the industry.
autobodynews.com / AUTOBODY NEWS MARCH 2024 15
California Techs Get a Jumpstart on Tools Thanks To Toby Chess
By Stacey Phillips Ronak Autobody News
When Mike Schaffer joined Selman Chevrolet in Orange, CA, as the collision center manager in 2012, he implemented the True2Form Collision Repair
specifically look for good people. We do not hire for aptitude; we hire for attitude and teach aptitude.”
He said taking this approach helps extend the careers of their best, most experienced people.
However, Schaffer said it can be challenging to confirm if they are good people and typically has
apprentice program at the 72-yearold dealership. Since then, he has focused his attention on attracting and retaining technicians.
“There is no shortage of good people,” said Schaffer. “We
employees begin helping in the detail department to ensure they will show up for work and be worth training.
He also finds it challenging to be profitable with an apprentice
within 30 days. As a result, the team teaches basic skills and efficiency.
“Giving each equal focus allows us to keep training and making money,” noted Schaffer.
Schaffer met Toby Chess when the first I-CAR welding certification class was held at Selman.
In support of Schaffer’s apprentice program, Chess provided tools and training to Schaffer’s apprentices.
“Toby is very supportive and inspirational to the new folks and the team leaders alike,” said Schaffer. “He includes everyone equally and goes out of his way to teach young and old alike.”
To encourage shop owners and managers to develop apprentice programs, Chess supplies a set of tools to the helper and asks shop owners to provide toolboxes. He also shares best practices documents he created that can be used in conjunction with OEM repair procedures and proper personal protective equipment.
Does your facility have an apprenticeship program in place? Autobody News would like to learn more. Email aandrews@ autobodynews.com.
CIECA welcomes ADAS Find as a new CIECA corporate member. Founded in 2023 by Owen VanEck and Aiden Foley , the Michigan-based company was established to provide the auto repair industry with a simple and affordable platform for identifying necessary ADAS calibrations and initializations.
VanEck and Foley learned about CIECA through extensive industry research and networking within the automotive repair sector.
VanEck said the company joined CIECA to actively contribute to advancing industry standards and connect with like-minded professionals.
For ADAS Find, adhering to CIECA standards is crucial in delivering high-quality, standardized solutions to theirclients, promoting trust and reliability in the industry.
By becoming a CIECA member, VanEck said they aim to actively participate in shaping and influencing industry standards.
16 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Mike Schaffer, center, with Alondra Salgado and her mentor Phat Troung, left, and Melissa Perez and her mentor Rod Perez, right.
ADAS
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Find Joins CIECA
Consumer Watchdog Saves Californians $5.5 Billion in Insurance Overcharges
Consumer Watchdog has successfully blocked more than $5.5 billion in insurance overcharges in California over the past two decades, according to the findings of a recent study into the organization.
Consumer Watchdog, a nonprofit citizen organization, has leveraged Prop 103—a voterapproved law that subjects insurance companies to public scrutiny—to challenge and prevent $3.16 billion in auto insurance overcharges, $2.25 billion in unjustified homeowners insurance increases, and $99 million in higher premiums for health care providers and small businesses between 2002 and 2023. The law empowers consumers to independently contest unwarranted rate hikes and other illegal insurance practices.
The organization’s oversight has not only resulted in substantial savings for policyholders, but has also ensured insurance companies reimburse its experts and attorneys a total of $11.6 million, which translates to less than 25 cents for every $100 saved for consumers.
Recent challenges by Consumer
Watchdog to proposed rate increases by major insurance companies like State Farm, Allstate, Pacific Specialty and GEICO have led to a combined savings of $885 million in just November and December 2023. These efforts come at a time when the insurance industry is seeking billions in new rate increases and pushing for the weakening of consumer protection rules.
“Consumer Watchdog has blocked insurance companies from overcharging homeowners, renters, drivers and health care providers by $5.5 billion over the last 21 years,” said Carmen Balber, executive director of Consumer Watchdog. “No wonder lobbyists for the insurance industry are working day and night to derail this crucial consumer protection tool.”
“The voters understood that the industry and its allies would do everything they could to undercut the protections of Prop 103, so they gave themselves the independent authority to monitor and enforce the law in all matters before the Department of Insurance and the courts,” said Harvey Rosenfield,
author of Prop 103 and the founder of Consumer Watchdog. “The goal of the opponents of public scrutiny and participation is to allow insurance companies to overcharge Californians. Make no mistake: paying the insurance industry’s ransom through unjustified premium hikes is not the way to address the shortages that the companies have created in the home and auto insurance markets.”
The study further illustrates the impact of Consumer Watchdog’s interventions, showing that when the organization challenges a rate increase, the approved rates average significantly lower than those unchallenged.
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Despite its recent introduction and quick progression through the Senate, the efforts by the Auto Care Association and its members, including letters of opposition to
the committee, led to the bill being held in committee. This decision effectively stalled its advancement. Similar legislation in Washington state is also being held in committee.
autobodynews.com / AUTOBODY NEWS MARCH 2024 17
l CONTINUED FROM COVER
Idaho Bill Stalls
The Auto Care Association testified on the bill’s potential adverse effects on Idaho’s aftermarket sector. Image via Shutterstock
Collision Repair Industry to Be Influenced by Supply Chain, Vehicle Complexity in 2024
By Abby Andrews Autobody News
The collision repair industry is poised for another year of change in 2024, according to Ryan Mandell, director of claims performance for Mitchell International.
Mandell was the featured guest for CIECA’s first webinar of the year, “Top Collision Industry Trends to Watch in 2024,” held Jan. 25 and available for viewing on at www.cieca. com/MEETINGS-EVENTS/ciecastwebinars.
Mandell said the four biggest factors affecting the industry this year will be the used vehicle market dynamics, increased vehicle complexity driving up repair costs, supply chain volatility and continued growth of electric vehicles’ share of the car parc. Used Vehicle Market Mandell said the used vehicle market is being affected by inflation, which is predicted to hit 2.4% in 2024, and high interest rates, which show little chance of declining this year. That affects customers’ ability to finance all types of loans, but especially ones to buy vehicles.
In 2023, total loss frequency was 19.2%, Mandell said. As vehicle values rose, repairers had more room to fix crash-damaged vehicles instead of writing them off. As vehicle values stabilize, Mandell said, total loss frequency will start to increase again.
“2024 is most likely going to be less volatile than recent years,” Mandell said, adding there are “so many variables at play here, we could see an increase in volatility if other things change.”
Increased Complexity
The increased complexity of vehicles – including more technology and a shift to lightweight materials to absorb crash energy and improve EV range and ICE fuel efficiency – is the biggest item driving changes.
Mandell said while data from 2023 is not yet complete, it has already shown a 6% increase in average severity in the U.S. and 9% in Canada compared to 2022.
As repairs get more complex, they average more labor hours to complete – while the average labor rate also increases, showing a one-year 6% increase in the U.S. in 2023, after remaining static sometimes for years at a time.
The cost of parts is also going up – in 2022, the cost of aftermarket parts rose 17%, while OEM parts
rose 10% — as is the average number of replacement parts per repair, up almost one full part in a single year as more systems require being brought back to pre-accident condition.
“It’s a perfect storm in terms of cost drivers that are contributing,” Mandell said.
In 2024, the average severity is forecast to be around $5,300 in the U.S. and $5,700 in Canada.
the downstream impacts on parts availability halfway through 2024. End user costs will likely rise as well as the average cost to move a shipping container increases.
“This new wave of supply chain disruption’s overall impact remains to be seen,” Mandell said. “Look at an action plan – repairing more parts, finding different sources. We need to have those conversations.”
EV Growth will Continue
As the number of EVs on the roads grows, so too is the number coming into repair shops.
ICE vehicles – but the likelihood of air bag deployment in an EV higher.
Mandell showed the results of a study conducted by Mitchell to compare repair costs for a 2022 Ford F-150 Lightning and a 2022 Ford F-150 XLT that had each suffered a moderate front end impact.
Both trucks needed a new bumper assembly, grille assembly, headlamps and a hood panel, and the left and right fenders blended.
Lightweight materials like aluminum, carbon fiber and magnesium can be repairable, but are more likely to crack than dent, requiring replacement. Mandell said currently 54% of lightweight metal parts are repaired, compared to 58% of mild steel.
Scanning is also on the rise. In 2023, 76% of vehicles repaired in the U.S. and 85% in Canada required a pre- and post-scan. About 35% of repaired vehicles in 2024 will require calibrations.
“How do you bring this into your business?” Mandell said. “You have to decide to make the investment to do it in house or partner with a third party, considering cost, cycle time and throughput.”
The Supply Chain
After seeing some improvement in supply chain woes in 2022, recent events, including the six-week UAW strike in late 2023 and current geopolitical conflicts in the Red Sea, could “really put a wrench in those trends,” Mandell said.
About 12% of global cargo goes through the Red Sea. Attacks on cargo ships has led some companies to use longer routes to avoid it, or bring in naval ships to escort them through.
“This will affect shipping times and cost,” Mandell said. “The rest of the network is going to be stressed. It has a snowball effect, and I think we will be grappling with it for some time.”
Mandell said he expects to see
Mandell said the average cost of repair of an EV is 37% higher compared to ICE vehicles, but there is a caveat – the average EV is only 3 years old, compared to 6.5 years for ICE vehicles. The average cost is only 14.5% higher when compared to ICE vehicles that are model year 2020 or newer. A lack of moving parts make EVs less likely to be determined non-drivable after a crash – 10.5% of EVs vs. 14.1% of
The Lightning’s replacement parts were more expensive, and it had an additional grille reinforcement and a bumper isolator, not present on the XLT. The Lightning also required the battery to be removed before the bake cycle in the paint booth, which added 3.5 labor hours. In all, the Lightning cost $3,500 more to repair than the XLT.
“EVs have less moving parts but more crash parts,” Mandell said. “The internal combustion engine in the XLT is integral in crash energy absorption, so they need to find other ways to absorb that in EVs. Adding these parts closer to exterior parts of EVs makes them more susceptible to damage.”
18 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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As used vehicle values stabilize in 2024, total loss frequency will start to increase again. Image via Shutterstock.
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Fuel: Gasoline ABZ
Californiaclass/stds: PC/ULEVqualified
Group: FGMXV01.80111.2L
Evap:SFI/HO2S/TWCFGMXR0095805 , OBD:II
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VEHICLEEMISSIONCONTROLINFORMATION
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California: Not for sale in states with California emissions standards.
VEHICLEMFD.BYFORDMOTORCO.INU.S.A.
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SEEOWNER’S MANUALFOR ADDITIONAL INFORMATION
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2.3L-Group:GFMXV02.3VJW
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autobodynews.com / AUTOBODY NEWS MARCH 2024 19
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02
ASE Welcomes New Leadership
The National Institute for Automotive Service Excellence (ASE) announced Dave Johnson, the newly appointed president and CEO, has taken the reins from Tim Zilke, who retired after a commendable 30plus year tenure with ASE.
In addition to Johnson, the ASE team welcomes Donna Wagner as the new vice president of industry and media relations. Wagner previously served as assistant vice president of the ASE Education Foundation. She replaces Trish Serratore, another long-serving member who retired at the end of last year.
The organization’s Board of Directors also sees fresh faces with Tom Trisdale taking on the role of the new chair. He is joined by Jason Rainey, who will serve as vice chair. The board’s new treasurer and secretary are John Wolf and Tom Palermo Homer Hogg, the previous year’s chair, will now serve as the past chair. ASE’s Board of Governors has been expanded with the addition of eight new members.
CARSTAR Jacobus in Washington Expands With
HighTech Facility
CARSTAR Jacobus in Vancouver, WA, is setting the stage for its next chapter nearly half a century after its inception. Founded by Dave Jacobus’ father in 1976, this familyowned automobile repair shop is not only thriving but expanding with plans for a new, cutting-edge facility slated to open in 2025.
Jacobus, who took over the business from his father Jerry, has seen the company evolve from its original incarnation as Vancouver Frame and Auto Body to a modern repair center with an all I-CAR certified staff and a full schedule of vehicles awaiting repair. The upcoming greenfield location is a testament to the company’s success and future aspirations. Spanning more than 10,000 square feet, the facility will boast advanced tools, wireless technology and ample space for 188 vehicles.
The design and planning of the new location have been a collaborative effort, involving key partners such as distributor Wesco, paint partner BASF, and paint
booth supplier Garmat, along with the CARSTAR team.
“They have all been tremendous resources in helping us plan for the equipment we need for the future, our power and technology needs, and how we create a footprint for excellent repairs and throughput,” Jacobus said.
This expansion will allow CARSTAR Jacobus to enhance its dedicated service for Subaru owners — a popular vehicle in the area — and strengthen its relationships with insurance partners like State Farm. The facility will also feature an improved customer lobby, offering comfortable waiting areas, meeting spaces for estimate reviews and vehicle repairs, and on-site car rental services.
In addition to the business’s growth, the Jacobus family continues to embrace its roots and values. Jerry Jacobus, despite retiring, remains involved as a volunteer, greeting customers and offering guidance. His passion
for model railroading, shared with his son, reflects the meticulous attention to detail and dedication to quality that has defined their business approach.
As CARSTAR Jacobus prepares for its next phase, the company remains grounded in its founding principles: prioritizing customer relationships, delivering highquality, cost-effective auto body repairs, and conducting business with honesty, integrity and fairness. Dave Jacobus credits his father’s teachings for the business’s enduring success, emphasizing the importance of hard work, attention to detail and taking care of employees and customers alike.
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CAA Glendale/Foothill Chapter Introduces President Andrew Batenhorst, Discusses SCRS Blend Study
By Stacey Phillips Ronak Autobody News
Members of the California Autobody Association (CAA) Glendale/Foothill chapter met Jan. 24 in Pasadena, CA, to network with peers and learn about topical industry issues. The event was sponsored by Annex Automotive and Industrial Finishes, and organized by Cindy Schillito, CAA Southern California representative for the Glendale/Foothill, San Diego and Los Angeles/Orange County chapters.
During the meeting, Andrew Batenhorst, body shop manager at
director of development and training.
Martinez, who has held the role of CAA president since 2018, said it was a pleasure to serve the CAA and its members.
“I like that fact that we were first to disseminate industry news and/ or trends to our peers,” he said. “I can’t wait to see how our industry will continue to evolve.”
As part of the evening agenda, CAA invited chapter members to share thoughts and ask questions about the SCRS Blend Study Report: A comparative analysis between full refinish and blend operations.
Pacific BMW Collision Center, was named chapter president. The new 2024 board members were also introduced.
In addition to Batenhorst, they include Treasurer Chuck Bistagne, senior advisor to the CAA Glendale/ Foothill chapter, past president of
This was a follow-up to the June 2023 chapter meeting, which included a presentation from Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS), focused on the
SCRS Blend Study.
the state association and owner of Bistagne Bros Body Shop; Secretary Oz Nieves, regional operations manager at Auto Collision Group; Past President Juan Martinez, CEO of European Coachworks; and board members Doug Holcomb, sales leader at Annex Automotive Paint; Larry Huckman, Annex Automotive Paint director of sales; and Gene Lopez, Seidner’s Collision Center’s
In addition, attendees at the January meeting had the opportunity to hear representatives from CCC talk about the revisions the company has made to CCC ONE based on MOTOR’s revised guidance on blend adjacent panels.
“Having access to the nation’s largest information provider for our industry is of major importance to our members,” said Batenhorst. “Specifically, CCC was able to provide knowledgeable representatives that understand the challenges we face in our shops.”
Batenhorst said the blend study by SCRS was a major success, and making sure shops know how to set
up their software to accurately bill for the refinish operations they perform came at the right time.
Another update during the meeting was shared by Roman Castaneda, director of business development for Midway Car Rental, who talked about the L.A. Auto Draft hiring fair, being held from 9 a.m. to 3 p.m. May 8 in Torrance, CA. Students and graduates from more than 15 training centers will showcase their work. Registered employers will receive a searchable database of resumes and portfolios. For more information, visit www.autodraft.org.
As president of CAA’s Glendale/ Foothill chapter, Batenhorst said he looks forward to his new role and getting to know members. Upcoming plans include holding in-person meetings and virtual webinars to help educate members and offer support.
“I love this industry,” said
Batenhorst. “With the interactions I have across the country attending meetings, including the Collision Industry Conference (CIC) four times a year, I want to bring back the great information that is shared.”
Batenhorst wants to hear from those who have attended meetings on what content they would like to see or the struggles they are facing. For those who have never attended meetings, he hopes to learn the barriers that have prevented them from joining.
Batenhorst has worked in the industry for the past 25 years. He
started as a detailer at Valencia Auto Spa Car Wash in Valencia, CA, in 1999. After graduating from California State University Northridge (CSUN) in 2006, Batenhorst was hired as a property damage specialist at Progressive Insurance. In 2010, he began working at Pride Collision Center in Van Nuys, CA, as a blueprinter; he was promoted to general manager of the Santa Clarita location five years later, managing the Creekside and Ruether locations.
When he learned about an opportunity to take over a struggling collision center, Batenhorst accepted the challenge and became the body shop manager at Pacific BMW Collision Center in 2018. As an active volunteer, he serves on the SCRS Board of Directors, the CIC Estimating and Parts & Materials committees and CIECA’s OEM Repair Procedures Committee.
Batenhorst said CAA has been an essential part of his career development and encourages other body shop representatives to attend meetings and get involved.
“To put it simply, ‘You don’t know what you don’t know,’” he said. “There is a vast amount of information out there for shop owners and operators, and our association helps you obtain what is needed for your success.”
He said there’s a strong chance someone in the room has experienced the same problems and can help navigate that mountain.
“It’s a true sense of belonging, and all the major industry stakeholders are there to support you,” he added.
As an industry, Batenhorst said success relies on the ability to collaborate to solve problems for stakeholders legally and ethically.
“This includes knowing our rights as repairers and ultimately being educated on everything that surrounds the idea of producing a safe and proper repair for the consumer,” he noted.
He said the networking aspect of CAA allows industry members to access a vast amount of information — whether they are new to the field or 40+ year veterans — and to get in touch with supporting sponsors who share the same vision.
“Although most of the collision repair space has changed drastically post-pandemic, there are more opportunities than ever to unite the industry and reinforce the importance of a safe and proper repair,” he said.
“Under my leadership, with the assistance of our Board of Directors, we aim to bring great content to our members and bring them true value that really helps their businesses.”
22 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Pictured, left to right, are Jen Lamb, Ben Clymer’s the Body Shop; Courtney Rae Martinez, Midway Car Rental; Tim Ronak, AkzoNobel; and Ben Clymer Jr., Ben Clymer’s the Body Shop
Treasurer Chuck Bistagne, left, senior advisor to the CAA Glendale/Foothill chapter, past president of the state association and owner of Bistagne Bros Body Shop; Cindy Schillito, center, CAA Southern California representative for the Glendale/Foothill, San Diego and Los Angeles/Orange County chapters; and Kevork Kahwajian, right, CSN Collision USA
CAA Glendale/Foothill Chapter President Andrew Batenhorst, left, Pacific BMW Collision Center; and Past President Juan Martinez, European Coachworks, with CAA Los Angeles/Orange County Chapter President Melanie Allan, Craftsman Collision USA
Mike Larrabee, left, and Sergio Rios, right, Puente Hills Toyota
Pictured, left to right, are Edwin Gonzalez, Rich Neubauer, Rocco Fasone and Nikki Fasone from Network Auto Body; Danard Crook, Martin Auto Color; and Steve Vlaszof, Precision Auto Body
Pictured, left to right, are Jeff Johnson, Markham Boling Collision; Idilio and Adela Sanchez, ABS Collision Center; and Doug Holcomb, Annex Automotive Paint
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CIF Charity Event Raises Awareness, Funds For Collision Repairers in Crisis
By Stacey Phillips Ronak Autobody News
Over the last two decades, the Collision Industry Foundation (CIF) has relied on contributions from collision repair businesses and individuals to aid hundreds of industry members in times of crisis. On Jan. 16, CIF hosted its 13th annual charity event, “Cocktails for a Cause,” in Palm Springs, CA, the day prior to the Collision Industry Conference (CIC). Nearly 200 attendees were at the function, many of whom were firsttime supporters.
“There were a lot of people who drove this initiative and made the event successful, including co-chairs Kelly Broderick and Cheryl Boswell, as well as Petra Schroeder,” said Dan Risley, president of CIF and vice
colleagues — many of whom have lost their livelihoods and need help from hurricanes, fires, COVID-19, etc.,” she said. “It takes minimal effort for something that means the world to people.”
Boswell, CFO of DCR Systems, served on CIF’s board for nine years and now volunteers for the organization. She and Broderick have co-chaired the annual fundraiser for many years and continue to do so, although they no longer serve on the board.
“It’s our annual fundraiser where we raise funds to assist industry members who have experienced a natural disaster so they can get back to work,” Boswell explained. “Our event includes great networking opportunities, a drawing for prizes and a live auction.”
president of quality repair and market development at CCC Intelligent Solutions.
Broderick, sales director of strategic accounts at The Sherwin-Williams Company, joined CIF’s board in 2013 as a trustee and later served as vice president. Although she retired from the board in 2022, Broderick remains involved in the organization.
“The annual CIF event is simply a great time to connect with others and raise funds for individuals within the industry we all love and belong to,” she noted.
Broderick added the event has grown over the past several years.
“I am happy to have been involved in that progression,” she said. “I appreciate those who come to the event, sponsor it and spread the word. It has been a tremendous way for CIF to give back.”
Broderick said many collision repairers have grown up in the industry, and CIF is a great organization that needs support and praise.
“Over the past 10 years, I’ve been privileged to raise funds for
She said CIF is fortunate to have many sponsor the cause.
“Attending the gala, sponsoring CIF and spreading the word are all ways you can help,” Boswell shared. “We want to make sure everyone knows that CIF exists for them!”
“Interest and support in the event are growing,” said “Collisionista” Petra Schroeder, CIF’s administrator and a member of the organization’s Board of Trustees. “At the same time, it is great to have familiar faces attend.”
Schroeder noted the charity event is an important part of raising money and awareness to further CIF’s mission to provide emergency relief to collision repair professionals who have experienced significant losses due to natural disasters or other catastrophes. At one time, it was planned as the primary fundraiser. In 2021, the CIF Annual Donor program was instituted, allowing individuals and companies to donate throughout the year.
“The awareness that we create by having these events is priceless because more people learn about CIF
and what we do,” said Schroeder. “As a result, we receive commitments for the Annual Donor program.”
In addition to monetary donations, Schroeder said the industry has helped spread awareness about CIF in various ways, such as liking and sharing social media posts. In recent years, birthday fundraisers have been initiated on Facebook, money has been raised through office competitions, and other creative ideas have been developed.
“There are many ways CIF can benefit from these initiatives,” said Schroeder. “It just takes a company to come up and execute ideas.”
CIF Treasurer Jim Ocampo, national strategic accounts sales manager for Axalta Coating Systems, said he always enjoys the evening of the CIF charity event.
“It’s refreshing to see everyone come together and contribute to a worthy cause,” said Ocampo. “While ‘Cocktails for a Cause’ is important to our fundraising efforts, the evening is about bringing awareness to CIF’s mission.”
During the evening, Ocampo handed out auction items and prizes with Paul Hill, vice president of sales and marketing for Headlights.com, which sells through the Original One Parts and Headlights Depot brand. Hill began volunteering for CIF in 2022 and joined the board of trustees the following year.
“The highlight for me is always the opportunity to be the auctioneer,” recalled Hill. “Standing up on the stage and seeing such a great crowd support CIF is an amazing feeling.”
Hill said CIF is the one charity singularly focused on assisting great individuals in the collision industry in their time of need.
“Once I understood the organization’s mission, I knew I needed to help CIF succeed,” he said.
“One of the many things that I love about the collision industry is how we all come together for a cause,” noted Nick Callum, business development
manager and platform manager for Headlights.com. “The CIF gala highlights that perfectly.”
Callum recently joined CIF’s Board of Trustees and he and Hill co-chair a new committee focused on CIF awareness.
“I have always gone out of my way to help people the best I can,” he shared.
“Joining CIF has allowed me to align with other like-minded individuals and contribute in a larger capacity.”
Kurt Lammon, president of Polyvance, is a new CIF Board of Trustees member who has donated to the cause and attended prior events for the past few years. This year, he and Cindy Reeves, vice president of sales at Enterprise Mobility, checked in those who hadn’t pre-registered.
“It feels good to volunteer because you know your efforts are going to aid others,” said Lammon. “It also gives you the feeling of the industry being like a close-knit family.”
Lammon said it’s a pretty small industry and he has noticed several individuals make job changes thanks to the network they built volunteering.
“[CIF] can be good for your career, too!” he added.
Jeff Wildman, BASF’s expert for the automotive aftermarket industry, has been a CIF trustee for seven years and served on several committees.
“With the increasing frequency of weather-related incidents, I’d like to think that people remember our mission and spread the word to collision repair professionals in distress that CIF is available to provide assistance,” he said.
Schroeder encourages people to reach out when they learn about someone in an emergency.
“The organization still does not receive enough applications when there is disastrous flooding, hurricanes and other damage,” she explained. “It’s very rewarding to give back but we need to find victims.”
For more information about CIF, visit www.collisionindustryfoundation.org or email collisionindustryfoundation@ gmail.com.
24 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Pictured, left to right, are Scott Walton, The Sherwin Williams Company; Mandy Wynn, DCR Systems; and “Collisionista” Petra Schroeder.
Pictured, left to right, are Chris White, KECO; Michael Bradshaw, K&M Collision; Barry Dorn, Dorn’s Body & Paint; Amber Alley, Barsotti’s Body & Fender; and Aaron Schulenburg, SCRS.
Pictured, left to right, are Kurt Lammon, Polyvance; Sabrina Thring, Driven Brands, and Jim Ocampo, Axalta.
autobodynews.com / AUTOBODY NEWS MARCH 2024 25
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autobodynews.com / AUTOBODY NEWS MARCH 2024 27
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Batenhorst Named President of CAA Glendale/Foothill Chapter
The California Autobody Association (CAA) announced Andrew Batenhorst, body shop manager at Pacific BMW Collision Center, as president of its Glendale/Foothill Chapter.
Batenhorst’s extensive background, spanning more than 25 years in the automotive and insurance sectors, positions him as a seasoned leader for the chapter’s future endeavors.
In his new role, Batenhorst is set to leverage his industry expertise to spearhead the development of strategies, policies and chapter meetings, all aimed at advancing the CAA’s core mission of advocating and safeguarding the interests of body shops across California. In addition to his tenure at Pacific BMW, a long-standing member of the CAA, Batenhorst is also on the board of the Society of Collision Repair Specialists (SCRS) and the Collision Industry Conference (CIC) Estimating and Parts & Materials Committees.
Batenhorst’s dedication to
the field is further evidenced by his involvement in educational advisory committees at both College of the Canyons and the University of Riverside, where he contributes to shaping the future of automotive education and training.
“I love this industry very much and owe most of my success to having great mentors,” Batenhorst said. “Organizations like the CAA were there for me in my formative years of my career, and I want to give back to the industry as it did for me. I look forward to bringing real-world experience and knowledge to the association and highlighting important topics that body shops need to know about to improve their businesses.”
28 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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Shell Shuts Down Hydrogen Stations Amid California Fuel Challenges
Shell announced the closure of its seven light-duty hydrogen fueling stations in California, marking a retreat from the state’s burgeoning hydrogen fuel market, as reported by S&P Global Commodity Insights. This decision, effective Feb. 6, comes amidst ongoing supply disruptions, other station closures and escalating hydrogen prices, further straining the developing fuel cell electric vehicle (FCEV) infrastructure in the state.
The closures reduce the number of operational light-duty hydrogen refueling stations in California to 61, per the latest figures from the California Energy Commission, which monitors FCEV sales and station availability.
Shell attributed its exit from the light-duty hydrogen market to “hydrogen supply complications and other external market factors,” as noted in a statement on the Hydrogen Fuel Cell Partnership’s hydrogen station tracker website. However, the company will maintain its heavy-duty refueling stations within the state.
The hydrogen supply chain in California is currently grappling
with multiple challenges, including increased costs of feedstocks due to geopolitical tensions, such as Russia’s invasion of Ukraine, unexpected operating expenses, and a decline in the value of LowCarbon Fuel Standard (LCFS) credits.
Brian Murphy, a senior hydrogen and low-carbon fuels analyst at S&P Global Commodity Insights, said the demand for hydrogen has not grown as anticipated, complicating the financial viability of refueling stations, particularly with LCFS credit prices remaining below $100/mt since mid-2022.
The announcement follows a series of station closures in 2023. California’s largest hydrogen provider, True Zero, closed 10 stations in October, and other providers like Iwatani and Messer followed suit in the subsequent months. These disruptions have led to a surge in hydrogen prices, with Platts assessing the pump prices at a record $34.11/kg on Feb. 1.
The light-duty FCEV market faced a tough year globally in
2023, with sales declining in key markets like South Korea, Japan and Germany. Although California saw a 10% increase in FCEV sales year over year, a significant sales drop in the fourth quarter and stagnant hydrogen usage since Q2 2022 indicated high fuel prices are deterring vehicle usage. FCEV sales accounted for just 0.7% of California’s total light-duty zeroemission vehicle sales in 2023.
Looking ahead, Murphy suggested the demand from heavy-duty FCEVs, including buses being delivered to municipalities, may catalyze market growth through 2030, shifting the focus away from light-duty FCEVs.
Autel announced it has partnered with automotive data provider MOTOR Information Systems to provide an improved experience for users and more streamlined access to OEM repair information using MOTOR’s TruSpeed Repair. MOTOR TruSpeed Repair will be available for integration into Autel’s diagnostics software on all North American Ultra series tablets including Advanced Driver Assistance System (ADAS) capable tools.
Autel Ultra series tablet users can access the most up-to-date automotive service and repair content within days of being published by the OEM. The TruSpeed Repair information will include component locations, diagnostic trouble codes (DTCs), maintenance schedules, repair procedures, specifications, technical service bulletins (TSBs) and wiring diagrams.
The paid subscription service will also provide OEM Position Statements and ADAS-related repair details. The software update and integration is expected to be released in the late first quarter of this year.
autobodynews.com / AUTOBODY NEWS MARCH 2024 29
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The La Jolla Concours d’Elegance, an event synonymous with luxury and classic automotive elegance, will return to the stunning coastline of La Jolla, CA, for its 18th edition. Scheduled for April 19-21, the prestigious event, presented by LPL Financial, will showcase an exceptional range of vintage vehicles from the transformative 1920s and 1930s.
This year’s Concours is unique in its celebration of various automotive Marques from the ‘20s and ‘30s, featuring legendary brands like Bugatti, Duesenberg, Packard, Bentley and Rolls Royce. The event promises to transport attendees back to an era when automotive craftsmanship was at its zenith, marked by sleek Art Deco designs and powerful engines.
A highlight of the 2024 Concours is the artwork of official artist Scott Jacobs, known for his photorealistic paintings of motorcycles and automobiles. Jacobs will be painting the 1937 Rolls-Royce Phantom III from Aaron Wiess’ collection for this year’s cover art, to be featured on posters, programs, tickets and more. The 1937 Rolls-Royce Phantom III,
a symbol of pre-war luxury, stands out as the only V12 Rolls-Royce until 1998’s Silver Seraph, showcasing an aluminum-alloy V12 7.32-liter engine and advanced features like Ace wheel discs and the Bijour lubrication system.
“This year, the Concours is a tribute
The 1920s and 1930s were pivotal in automotive history, marked by advancements in technology and accessibility. With rising wages and the introduction of installment payment plans, automobiles became more affordable, leading to increased demand and improved
to the Marques that symbolized the pinnacle of automotive elegance and engineering in the 1920s and 1930s,” said Chairman Michael Dorvillier. “The cars from this era showcase the craftsmanship and groundbreaking designs that defined the roaring 20s and glamorous 30s.”
road infrastructure. The design and functionality of cars evolved with these changes, transitioning from high ground clearance and slender tires to lower profiles and broader tires as road conditions improved.
This period also saw a surge in new car brands, from affordable models like the Ford Model T to luxurious
vehicles by Duesenberg and Rolls Royce. Many of these brands continue to thrive, while others have become cherished museum pieces or highlights at events like the La Jolla Concours d’Elegance.
The 2024 event will feature a stunning array of automobiles, including rarities like the 1932 Chrysler CP8, 1930 Ruxton from The Nethercutt Museum, 1937 Rolls Royce Phantom III V-12, 1965 Alfa Romeo Giulia SS, 1955 Jaguar D-Type, 1973 250 cc Husqvarna Trials Bike, the Aston Martin DB5, Fiat 1500 GT by Ghia, and the 1962 Triumph Italia 2000 Vignale.
The weekend events include the VIP Party at Ellen Browning Scripps Park, the La Jolla Concours Tour d’Elegance, and “Porsches on Prospect” in La Jolla Village. The main event April 21 will feature more than 200 rare vehicles, a Champagne and Honey Tasting Garden, live music and a vintage flyover along the coast.
Tickets for the 2024 La Jolla Concours d’Elegance are available at lajollaconcours.com, with various VIP experiences and packages offered.
30 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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All BASF customers go through a certification process. Until today, this process involved a twoday mandatory training where attendees completed in person classroom learning and handson training.
To reduce travel expenses and time away from the shop floor, BASF has converted one day of in-class instruction to online training hosted in its Learning University. This blended learning approach allows customers to start training whenever and wherever they are and still benefit from the face-to-face portion.
The online learning portion is comprised of eight to 10 modules, with an assessment after each module instead of a final exam. Once the online portion is complete, customers can schedule their in-person class at the location of their choice, where they will receive face-to-face training and assessment. Participants will have 45 days to finish this process and can access their certificate of completion online.
GOP Governors Want To Stop Biden’s EV Mandate
By Chris Woodward The Center Square
A group of Republican governors is calling on President Joe Biden to halt his electric vehicle mandate proposal.
In a letter to the president, the governors said they aren’t opposed to electric vehicles, but rather overreaching federal government mandates that “penalize retailers and do not reflect the will of the consumer” in the U.S.
“Even with deep price cuts, manufacturers’ incentives and generous government funding, federal mandates on electric vehicles are unrealistic,” the governors wrote.
The EPA is pushing for twothirds of vehicles in the U.S. to be battery-powered by 2032 in an effort to help combat manmade climate change and reduce America’s dependency on oil.
The administration has taken steps in recent months to build more charging stations, but lack of infrastructure is an issue for the governors. They add in the letter there’s a concern about “grid
capacity and reliability.”
Thousands of car dealerships have also signed on to a letter asking the Biden administration to “tap the brakes” on the EV mandate proposal, The Center Square previously reported.
are appealing, the reality is that the lack of a strong, domestic marketplace makes electric vehicles prohibitively expensive for the American consumer.”
“There are a number of reasons why consumers are leaving these cars on dealership lots—the cost, the infrastructure required, and the battery content requirements are untenable for today’s car buyers,” the governors’ letter said. “Even if consumers determine over time that battery electric vehicles
Republicans who signed on to the letter are Arkansas Gov. Sarah Sanders, Idaho Gov. Brad Little, Iowa Gov. Kim Reynolds, Louisiana Gov. Jeff Landry, Missouri Gov. Mike Parson, Montana Gov. Greg Gianforte, Nebraska Gov. Jim Pillen, Nevada Gov. Joe Lombardo, New Hampshire Gov. Chris Sununu, North Dakota Gov. Doug Burgum, Oklahoma Gov. Kevin Stitt, South Dakota Gov. Kristi Noem, Texas Gov. Greg Abbott, Utah Gov. Spencer Cox, Virginia Gov. Glenn Youngkin and Wyoming Gov. Mark Gordon
“Ultimately, we must continue to maintain consumer choice. Your mandates are unrealistic, costly and prescriptive solutions that harm American consumers,” the governors wrote.
autobodynews.com / AUTOBODY NEWS MARCH 2024 31
The letter said the governors oppose overreaching federal government mandates. Image via Shutterstock.
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BASF Announces Blended Learning Approach
MSOs Use Variety of Models For Handling Scanning, Calibration Work
ByJohn Yoswick Autobody News
As collision repair businesses of all sizes navigate how to best handle the growing amount of scanning and calibration work required on a daily basis, there’s indications there is no one best solution for all.
Among five multiple shop operators (MSOs) represented during a recent panel discussion of the topic, for example, each is handling calibration work in different ways, or combination of ways: mobile providers, their own stand-alone calibration centers, in-house at a subset of their locations, etc.
Moderating the panel at the MSO Symposium held in conjunction with the SEMA Show, Dan Risley of CCC Intelligent Solutions asked the panelists to discuss why they’ve chosen the model they have.
Crash Champions, which operates more than 600 shops in three dozen states, started a separate company, Automotive Technology Experts (ATE), doing mobile calibrations onsite for its shops that have the necessary site conditions, like a level floor, as well as doing some calibration work remotely.
Huggins, national collision director, was asked if those shops sublet their ADAS calibration work to the dealerships’ service departments.
“Absolutely not,” Huggins said. “In a dealer model, we’re all about trying to keep our work in-house, right? Even though we are a dealer, service operates in a different world than we do. And if you ever have to, as a dealer, send it to the service department, they have a tendency to take too long to do it. Even a basic alignment. Our mechanics in our own [collision] shops and our own collision centers are so busy, we don’t even really use our own mechanics for scanning and calibration. We have 19 of our 32 centers that have their own Tru-Point [ADAS calibration system] at this point and do all their own calibrations.”
without mechanical departments to do scanning and basic calibration work.
“All the more difficult, demanding calibrations go to our calibration center,” he said.
The company has invested heavily into calibration work because it’s too big a part of the overall repair not to.
“I remember a few years ago reading an article quoting a representative from one of the vehicle manufacturers who said, in the future, 60% of the cost of repairs will revolve around new technologies. And I’m not sure when ‘in the future’ is, or how you exactly measure that, but I found that terribly compelling. I was thinking to myself: How do you explain subletting 60% of your work in the future? To me,
that didn’t seem like a promising way to approach collision repair long term.”
Having the company’s employees conduct most calibration work has helped production even more than expected, he said.
“One of the things we’ve learned is we can cycle cars quicker than we thought,” Amberson said. “We can do more [calibration work] than what we first thought. We can do most jobs certainly within a day, and many of them same day.”
He said lots of other collision repair businesses tour LaMettry’s calibration center and ask what piece of equipment they should buy.
“I’m thinking to myself: We’ve got five calibration stations representing four different brands,” Amberson said. “This is not for the faint of heart, especially if you’re going to service all the major brands. So keep in mind, while we talk about all these advantages [of doing your own calibration work], it’s not for everybody. Maybe you’re a smaller shop. Maybe you can address certain brands. Maybe you can handle certain equipment. But if you’re going to be really serious about it and address all situations and all brands, it’s a large, large task.”
“We wanted to keep as much [business] as we can in-house,” said John Panagopoulos of ATE. “But it’s also customer satisfaction and cycle time. It’s quicker.”
ATE was founded as a separate business because it’s a different type of business, he said.
“A lot of times, folks who are running collision repair centers want to try to operate a [calibration] business kind of similar to collision repair, but it’s completely different, especially when you go mobile,” Panagopoulos said. “The technicians aren’t the same. The technology is different. Pricing systems. Everything we do is just a completely different business model.”
Not Using Dealership Service Departments
New-car dealer Berkshire Hathaway Automotive operates 32 collision centers around the country. Darren
How have they found staff for that work?
“We’ve had really good luck finding gamers that are in their parents’ basement that want to live there forever,” Huggins joked. “And they might Uber to work, but they’ll come because they’re really interested in technology. So we’ve had really good luck finding these type of people and training them to be our calibration scanning technicians. We’re really pretty much staying to our core business, and we’ve kind of created our own department within our department, and it’s working really well for us.”
Does the company using a huband-spoke model for their collision shops without a Tru-Point?
“No, not really,” Huggins said. “We’re partnered with asTech, so they’ll have mobile services for us, or there are some situations where asTech actually has an in-shop technician that will take care of that.”
Smaller Chain Keeping Work InHouse
Darrell Amberson of LaMettry’s Collision said that company has a mechanical department in four of its 10 locations in Minnesota, along with two stand-alone mechanical shops and a calibration center. The company sends employees into its locations
32 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Darren Huggins of Berkshire Hathaway Automotive said the company has specialty departments within its 32 collision centers to handle calibration work.
A panel discussion about calibration work included, from left, John Panagopoulos, Darrell Amberson, panel moderator Dan Risley and Darren Huggins.
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John Panagopoulos said Crash Champions started a separate company, Automotive Technology Experts, to do mobile calibrations onsite for its shops.
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PPG Introduces PPG ADJUSTRITE Tool
PPG announced the launch of the PPG ADJUSTRITE® Repair Management tool, the latest feature of the PPG AdjustRite commercial estimating system, which provides enhanced productivity for commercial vehicle repairs.
The mobile-friendly platform offers technicians a time clock system and automated tracking of work hours per repair order. Shop managers and estimators benefit from a centralized approach to delegate tasks, gain insights from productivity metrics and efficiency data, and use dynamic charts for a thorough overview of repair orders and technician activities.
The PPG AdjustRite system is the first and only commercial estimating tool that considers the overall repair process, including overhaul, overlap, included operations, additional operations and additional parts or materials associated with the repair.
Learn more at www. adjustrite.com.
NABC’s Palm Springs Golf Tournament Raises Money For National Programs
The National Auto Body Council® (NABC) successfully hosted its sold-out Palm Springs Changing and Saving Lives Golf Fundraiser on Jan. 16 at the Westin Rancho Mirage Golf Resort.
The fundraiser, presented by Hertz, attracted more than 150 players, sponsors and industry members, kicking off the 2024 season for the collision repair industry. A highlight of the event was the NABC Recycled Rides presentation, where four deserving Palm Springs families, encompassing three veterans and a single mother, received lifechanging assistance.
Held for the first time at the Pete Dye course of the Westin Rancho Mirage Golf Resort, the competition was fierce. Emerging victorious were Todd Highsmith, Dave Mollner, Robert Rucho and Leonard Lassik, who finished 19 under at 51. Following closely were Chris Chase, Bob Cornelius, Steve Widen and Alan Kirkpatrick, and in third place, Joe
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Special recognition went to Rob Riley, Alexandra Carney, Mike Harris, John Fernandez and Sandy Panduro for closest to the pin honors, with long drive accolades awarded to Robert Rucho and Keith Egan
“The real winners are those who we support through our programs—the families in need, military members, veterans and first responders,” said Scott Sampley, chairman of the NABC. “We’re honored to be able to give back to them and their communities through the collective work of the collision industry.”
The NABC has announced upcoming events, including the NABC Lone Star Changing and Saving Lives Golf Fundraiser on April 10 at the Texas Star Golf Course in Dallas, TX, and the NABC Boone Valley Changing and Saving Lives Golf Fundraiser on Sept. 9 at the Boone Valley Golf Club in St. Louis, MO. These events continue
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the NABC’s mission to positively impact communities across the country, with proceeds benefiting families in need, military members, veterans and first responders.
The Changing and Saving Lives Foundation, a 501(c)3 entity, ensures sponsorship and donations from these events are tax-deductible. Additionally, the NABC offers a multi-event sponsorship program, providing an efficient way for partners to support these charitable golf events.
For those interested in participating or sponsoring future events, contact Debby Robinson at drobinson@ nationalautobodycouncil.org or 312-505-4336.
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Ford, GM Taking Steps To Build More
Ford and GM both recently announced moves to help improve affordability – and profitability – of their electric vehicle offerings.
Ford is developing its nextgeneration EVs to “surprise customers and be profitable within a year of launch,” CFO John Lawler said during the company’s recent 2023 earnings presentation, while GM announced the appointment of former Tesla executive Kurt Kelty as the new vice president of batteries.
During Ford’s earnings presentation, CEO Jim Farley disclosed plans to concentrate on EVs in sectors where Ford holds a competitive edge, such as trucks and vans.
“Our next Gen 2 products will be profitable in the first 12 months of their launch,” Farley assured.
Farley said two years ago, Ford formed a “super-talented skunkworks team” tasked with creating a low-cost EV platform,
efficiency is not just about staying competitive; it’s a response to the evolving market dynamics and consumer expectations.
customers. “We learned that as you scale EVs to 5,000 to 7,000 units a month and you move into the early majority customer, they are not
“All of our EV teams are ruthlessly focused on cost and efficiency in our EV products because the
Feb. 19, will spearhead GM’s comprehensive battery cell strategy, encompassing the management of raw materials, advancement and commercialization of new battery technologies, and the lifecycle of batteries, aiming to address the industry’s critical challenge of balancing affordability with high performance at scale.
The hiring comes at a time when GM is under pressure to make its EV segment profitable, amidst reliance on revenue from its traditional gaspowered vehicles. CEO Mary Barra has projected profitability in the EV sector later this year.
willing to pay a significant premium for EVs,” he noted.
At GM, Kelty, known for his role in Tesla’s battery development, will bring more than three decades of experience, with the mission to enhance battery technology and reduce costs.
Kelty, set to begin his role
GM President Mark Reuss said Kelty’s background in battery chemistry development, supply chain establishment and system partnerships will be instrumental in achieving GM’s ambitious electrification goals and establishing the company as a frontrunner in EV technology.
The company plans to invest $35 billion in EVs and related technologies by 2025. Kelty’s addition to the team is expected to significantly bolster GM’s position in the rapidly evolving EV market.
36 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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A worker builds a Ford F-150 Lightning at the Rouge EV Center in Michigan.
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I-CAR announced Opus IVS™ has joined its Sustaining Partner Program.
Opus IVS’s commitment to I-CAR’s Sustaining Partner Program aligns perfectly with the increasing demand for advanced training and support in navigating the complexities of modern vehicle repairs. By investing in education and professional development, Opus IVS and other I-CAR sustaining partners are contributing to a safer and more proficient automotive repair ecosystem. Collaboration across the industry is crucial for relevant educational and technical solutions, particularly in response to the accelerating technological advancements requiring specialized knowledge and skills for proper repairs.
Sustaining partners play an important role in advancing I-CAR’s vision by actively contributing to the funding of I-CAR’s work, which in turn supports repair facilities and schools across the industry.
Summit Partners Invests in CollisionRight
CollisionRight, a collision repair shop consolidator in the U.S., on Jan. 30 announced a majority investment from Summit Partners, a growth equity investment firm.
The new capital will help support CollisionRight’s growth plan, which is focused on acquiring and operating highquality, customer-friendly collision repair shops across the central and Mid-Atlantic regions.
CollisionRight founder and CEO Rich Harrison will retain significant equity ownership in the business by investing alongside Summit, as will several other members of the company’s senior management team.
Founded in 2020, CollisionRight has acquired 89 shops in the past 3.5 years, establishing the company as one of the leading consolidators and providers of collision repair services in the U.S. The company and its skilled repair technicians aim to provide high-quality, reliable repairs for consumers, using modern technology, paint and parts, and to be an equally
reliable partner to the company’s insurance carrier partners who pay for the overwhelming majority of repairs undertaken by CollisionRight.
leader in the collision repair industry, and we are excited to help Rich and his team extend this leadership position,” said John Carroll, a managing
“Partnering with Summit will help CollisionRight enter a new and expanded era of growth,” said Harrison. “Summit’s growth focus and commitment to operational excellence align with our desire to continue to partner with the country’s best shop operators and provide the driving public with timely and high-quality repairs. Our goal is to create an industry leader that will set the standard for growth, excellence and customer service. We are confident that partnering with Summit will help us to achieve that goal.”
“CollisionRight has quickly established itself as a market
director at Summit Partners who will join Harrison on the CollisionRight Board of Directors.
“The collision repair industry remains highly fragmented, large and, in our view, very attractive,” said Robert Grady, an advisory partner at Summit who will also join the CollisionRight Board of Directors. “We look forward to working closely with the CollisionRight team to capitalize on this opportunity and enhance the company’s position as a growing, high-quality, customerfocused company.”
The terms of the transaction were not disclosed.
38 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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RM, a leading brand of BASF, has introduced the RMC1000, a groundbreaking one-coat clear solution in the refinish paint market, offering time savings and potential revenue growth.
Unlike traditional 1.5-coat clears that require a flashoff time and a second coat, RMC1000’s advanced formula enables application in just one wet coat, followed by 30 minutes of drying at 140 F°. This method eliminates the need for a second coat and flash-off time.
The impact of this time efficiency is substantial. With RMC1000, body shop owners can save at least 10 minutes per job, translating to more than $500,000 in additional annual revenue.
Beyond revenue, RMC1000 also offers notable environmental benefits. Swapping a 1.5-coat clear with RMC1000 can result in significant energy saving — about $2,000 annually — and a reduction of 7,000 pounds in CO2 emissions.
U.S. House Passes Tax Bill That Could Benefit Auto Repair Businesses
On Jan. 31, the U.S. House of Representatives passed HR 7024, the Tax Relief for American Families and Workers Act of 2024, by a vote of 357-70. It will now move on to the U.S. Senate.
The bill, introduced by House Ways and Means Committee
Chairman Jason Smith, R-MO, and Senate Finance Committee
Chairman Ron Wyden, D-OR, aims to alleviate financial strains faced by independent repair shops, grappling with rapid technological advancements and an evolving automotive landscape, as they will need to continue to invest in facility and equipment upgrades, some of which may require taking on debt.
This tax proposal would:
Reclassify interest paid on certain business loans as allowable deductions.
Provide for a 100% bonus depreciation allowance for qualified property—such as equipment and vehicles—acquired and placed in service between Dec. 31, 2022, and Jan. 1, 2026.
Raise the maximum amount a business may expense for qualifying property from $1 million (reduced by the amount by which the cost exceeds $2.5 million) to $1.29 million (reduced by the amount by which the cost exceeds $3.22 million), adjusting for inflation for taxable years after 2024.
“Advancing the Tax Relief for American Families and Workers Act closer to enactment is a huge win for independent automotive repairers.”
BOB REDDING
ASA’S WASHINGTON, D.C., REPRESENTATIVE
One provision in the framework of significant consequence to many repair business’ employees is the expansion to the Child Tax Credit. The bill would:
Change how the maximum refundable credit is calculated by including consideration for the number of children in a household.
Increase the maximum perchild limit from $1,600 to $1,800 for tax year 2023, along with annual increases to the cap adjusted for inflation each ensuing year through 2025.
The Automotive Service Association (ASA) applauded and expressed its gratitude to the U.S. House of Representatives for passing H.R. 7024.
“Advancing the Tax Relief for American Families and Workers Act closer to enactment is a huge win for independent automotive repairers. The U.S. House of Representatives sent a strong message, through yesterday’s vote, that small businesses—like those represented by ASA— deserve a chance to thrive,” said Bob Redding, ASA’s Washington, D.C., representative. “H.R. 7024 helps make that vision possible. Many thanks to U.S. House Ways and Means Chairman Jason Smith for his leadership in putting this package together. ASA eagerly awaits the Senate’s consideration and passage of this bill so that it may ultimately receive the president’s signature.”
autobodynews.com / AUTOBODY NEWS MARCH 2024 39
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Vehicle Dependability Declines in 3-Year Ownership
Owners are finding their vehicles less reliable over three years of ownership, a recent study by J.D. Power revealed. The 2024 U.S. Vehicle Dependability Study (VDS) showed an increase in problems per 100 vehicles (PP100), marking a concerning trend in long-term vehicle dependability.
The study, which spans 184 specific problem areas in nine major vehicle categories, found the industry average for problems has risen to 190 PP100, up from 186 PP100 in the previous year. This deterioration in dependability is surprising, given that J.D. Power’s VDS model results typically mirror those of the Initial Quality Study for the same model year.
“This can likely be attributed to the tumultuous time during which these vehicles were built, and owners are keeping their vehicles for much longer,” said Frank Hanley, senior director of auto benchmarking at J.D. Power.
Infotainment systems have emerged as a significant source
of frustration for vehicle owners, with issues in this category nearly doubling those in the next-highest category, exterior. Connectivity problems with Android Auto and Apple CarPlay, along with built-in voice recognition difficulties, are the most prevalent issues.
Additionally, the study highlights growing annoyance with driver assistance system alerts, which increase over time rather than becoming more familiar to the driver. This includes
alerts from features such as lane departure warning and forward collision warning.
Electrified vehicles, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), are reported to have more problems than their gas-powered and hybrid counterparts. BEVs, in particular, pose the most issues, with a significant number of owners having to replace tires within the first three years of ownership.
Despite the overall downturn in dependability, Toyota Motor Corporation stood out for its high number of segment awards, the most received by any automaker since 2017. Lexus, a Toyota brand, ranked highest overall in vehicle dependability for the second consecutive year.
The most improved brands in terms of reduced problems per 100 vehicles include Porsche, Mercedes-Benz and Toyota.
The 2024 study was based on responses from more than 30,000 original owners of 2021 model-year vehicles.
Driven Brands Hits Fundraising Milestone
The Driven Brands collision group, which includes Abra, CARSTAR US, CARSTAR Canada and Fix Auto USA, announced it has raised more than $5 million for cystic fibrosis (CF) research, care and advocacy across North America.
The journey began more than 25 years ago when CARSTAR started fundraising in Canada, following a CF diagnosis within a franchise partner’s family. This personal connection galvanized the entire network, inspiring a widespread and sustained effort. The fundraising activities, ranging from car washes and golf tournaments to charity walks and garage sales, have collectively contributed to this achievement.
In recognition of this $5 million milestone, the U.S. collision network sponsored 10 families, providing holiday gifts to alleviate the seasonal stress on parents. The initiative resulted in more than $3,000 in donations, encompassing toys, clothing and essential household items. Meanwhile, in Canada, CARSTAR commemorated this achievement with a $5,000 donation to Cystic Fibrosis Canada.
40 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Survey respondents reported nearly twice as many issues with their cars’ infotainment systems as in the nexthighest category, exterior. Image via Shutterstock.
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Empire, TechForce Foundation Offer Scholarship
Empire Auto Parts, a distributor of aftermarket collision parts for auto repair shops, announced the creation of the Empire Auto Parts Scholarship Fund.
Initially, each year the fund will award two $2,000 scholarships to two students enrolled in a post-secondary school collision repair program in an underserved community within Empire’s geographic market. The scholarship fund has been created as part of Empire’s celebration of Black History Month and will be administered by the TechForce Foundation.
In total, TechForce Foundation will be awarding $4 million in scholarships in 2024. To learn more about TechForce Foundation and apply for scholarship opportunities, visit https://techforce.org/ourwork/#scholarships.
The scholarships are part of a larger, multi-year financial commitment Empire has made in support of TechForce Foundation’s mission to champion students to and through their education into technical careers, including developing the next wave of collision industry professionals.
I-CAR’s Collision Careers Launches Innovative Talent Drive
I-CAR’s Collision Careers unveiled a digital advertising campaign aimed at attracting new talent to fill an estimated 100,000 skilled technician vacancies. The initiative, “Bolt Ahead with Collision Careers,” features a series of dynamic videos intended to draw interest to the field.
“The launch of this first-ofits-kind campaign is a natural next step on the critical work I-CAR has undertaken through its Collision Careers program to attract talent to the industry and to illustrate the benefits of this stable, growing, innovative career journey,” said Dara Goroff, vice president of planning and industry talent programming.
Developed in partnership with ad agency Push 22, the campaign is set to run primarily on YouTube, targeting both students and their parents in key markets such as Houston, Los Angeles, San Francisco, Chicago and Philadelphia. These areas were specifically chosen for their high demand for skilled technicians and their proximity
to leading collision repair educational programs.
The initiative not only aims to fill the current talent gap but also to establish a new way of marketing the collision repair industry to a younger audience.
social media.
Collision Careers plans to extend its reach later in the year by partnering with organizations and marketing leaders within the industry to co-create content and develop co-op advertising campaigns. This broader strategy is designed to further promote career opportunities within collision repair.
“We are taking a very current consumer marketing approach and applying it to an industry that has never approached positioning itself in this way to attract talent,” said Arianna Sherlock, senior director of marketing at I-CAR. The campaign seeks to engage Gen Z where they spend a significant amount of time—online and on
Launched in 2023 in collaboration with the Collision Repair Education Foundation (CREF) and the recipient of the 2023 SEMA Global Media Award, Collision Careers provides comprehensive resources for individuals considering a career in collision repair. This includes students, career changers, parents and school counselors. Through these efforts, I-CAR aims to unify the industry, align its initiatives, and effectively bridge the technician gap, ensuring a sustainable future for the field.
42 MARCH 2024 AUTOBODY NEWS / autobodynews.com
Credit: Shutterstock.
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Mitchell 1 Offers Scholarship
Mitchell 1 has opened applications for its annual Automotive Technology Scholarship, which includes a $2,500 award, an additional $500 check and roundtrip airfare and accommodations for the recipient and a guest to attend the North American Council of Automotive Teachers (NACAT) conference, July 22-25 in Indianapolis, IN.
Eligibility is limited to U.S. and Canadian citizens who are either high school seniors enrolled in auto shop repair courses or current college students majoring in automotive technology. Applicants must have a nomination from their NACAT instructor, maintain a minimum overall 3.0 grade point average, and plan to attend or be already enrolled in an accredited college or university.
By applying through the Automotive Aftermarket Scholarship Central website at www. AutomotiveScholarships.com, students not only apply for the Mitchell 1 scholarship but are also considered for multiple other scholarships for which they may be eligible. The deadline is March 31.
Self-Driving Cars’ High Accident Rate Sparks Concern
Statistics showing self-driving cars are involved in significantly more accidents per mile driven than their human-operated counterparts is contributing to deep-seated concerns and skepticism among Americans towards the burgeoning technology, Forbes Advisor reported.
According to the National Highway Traffic Safety Administration (NHTSA), selfdriving vehicles are involved in 9.1 crashes per million vehicle miles driven, more than double the 4.2 crashes involving conventional vehicles.
This high accident rate is a key factor behind the 93% of Americans who harbor concerns about self-driving cars, with safety and technology malfunctions being the primary worries, according to a study conducted by Forbes Advisor and OnePoll, which surveyed 2,000 Americans.
The survey also revealed a significant lack of trust in autonomous vehicles, with 81% of respondents admitting
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62% of consumers have lost confidence in Tesla.
Despite the challenges, 30% of Americans surveys expressed excitement about the future of self-driving vehicles. Potential benefits cited include enhanced mobility for the elderly and people with disabilities, increased efficiency in transportation logistics, and the possibility of multitasking while driving.
Safety and technology malfunctions were the primary worries among survey respondents. Image via Shutterstock.
they have never been in a selfdriving car. Moreover, 61% of Americans stated they wouldn’t trust a self-driving car with the safety of their loved ones or children, and more than half (51%) are somewhat or very unlikely to own or use a selfdriving vehicle within the next five years.
Tesla, a company often
However, the road to widespread adoption of self-driving technology appears long and winding. McKinsey & Co predicts that by 2030, only 12% of new passenger vehicles will be sold with advanced autodrive technologies, a figure expected to rise to 37% by 2035. High costs and consumer
M-F
M-F
autobodynews.com / AUTOBODY NEWS MARCH 2024 43
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In an effort to refine its brand presence and keep pace with luxury market dynamics, Lincoln announced Jan. 25 it closed approximately 100 U.S. dealerships last year, a record number for the company, as it aims to realign its retail footprint with that of other premium brands. Lincoln, the luxury arm of the Ford Motor Co., is undergoing this transformation through individual negotiations with dealers, said Anika SalcedaWycoco, a spokesperson for Lincoln. However, details of these buyouts remain undisclosed. The decision follows a period where Lincoln’s U.S. sales dipped by 2% in 2023, reaching nearly 82,000 vehicles, contrasting with a 9% increase in Cadillac sales and a near 24% surge for Lexus.
“Our priority is to be where the luxury clients are and where the luxury market is,” said SalcedaWycoco. The reduction in dealership count is part of a broader, multi-year consolidation strategy. Lincoln ended 2023 with about 500 dealerships, a significant decrease
from 685 in 2021. The brand’s goal is to bring this number down to approximately 400 by the end of this year. This shift is also seen in the brand’s focus on exclusive, luxury experience-oriented dealerships. Currently, Lincoln boasts 164 brand-exclusive locations, including 58 boutique-style “vitrine” stores, with plans to add 23 more this year.
The trend of dealership closures is not unique to Lincoln. Buick, part of General Motors Co., reported a 47% reduction in its dealer count after initiating a buyout program in 2022. This program brought down Buick’s U.S. dealers from 2,000. Cadillac also saw a significant reduction in its dealer count through a similar initiative. Automotive News initially reported these developments in the luxury automobile sector, highlighting the industry’s ongoing adjustments to meet changing consumer preferences and market conditions. Lincoln’s move mirrors a broader trend in the luxury automotive market, focusing on quality and exclusivity over quantity.
Hertz Pausing Polestar Purchases in Shift from EVs
By Zachary Viscont Teslarati
Rental car company Hertz has halted its plans to purchase EVs from Polestar, on the heels of slowing down its electrification strategy by selling off some of the EVs it already owned.
After a filing in January revealed Hertz decided to cut its EV fleet by around 20,000 vehicles, CEO Stephen Scherr reportedly asked Polestar CEO Thomas Ingenlath to pause purchases in 2024, according to a report from the Financial Times. Ingenlath said the automaker agreed to waive requirements to purchase a certain number of Polestar EVs this year, so long as Hertz agrees to avoid selling the vehicles early, or for significantly cheaper than they were purchased.
According to Ingenlath, the companies agreed Hertz would “keep the cars longer than a year, we work with them, and we have the right to first refusal whenever
they want to take them out of the fleet.”
Polestar has sold Hertz about 13,000 of the 65,000 units agreed upon in the 2022 deal. Despite the pause on 2024 sales, Ingenlath said the companies have a “clear intention” to reintroduce large-scale Polestar sales in the future, though they’ll “have to review at the time” whether to reboot the company’s EV sales in 2025.
In January, Hertz started selling off some of its Tesla inventory, ahead of the company’s filing stating it was looking to slash its EV fleet.
The news comes just days after reports suggested Polestar’s parent company, Volvo, could be preparing to off-load Polestar, with Volvo owner Geely set to take over. It also comes after Polestar announced plans to cut around 15% of its global workforce, and just months after the automaker entered production of the Polestar 4 crossover SUV.
44 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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Lincoln Closes 100 Dealerships, Targets Further Reductions
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Tesla Fan Drawing Imagines Reported Upcoming $25K EV
By Joey Klende Teslarati
Tesla’s rumored Redwood EV is now hitting the news cycle as a new report was released Jan. 24, indicating the car could make its way to market next year.
Naturally, the EV, which could potentially cost roughly $25,000 in hopes of reaching a lower price point to encourage more drivers to switch to a Tesla, has already been imagined in fan renders.
These renders were sent to Teslarati by Tine Rusc, who imagined the Redwood EV as a “Cyberhatch.” As the EV is being looked at as a compact crossover, this hatch-equipped EV seems to fit the bill as what Tesla could bring to market, and it would undoubtedly bring more space and cargo for owners.
Rusc drew inspiration from the Cybertruck, potentially somewhat of a template for this vehicle, according to CEO Elon Musk’s recent biography. Tesla could potentially design more than one vehicle based on the Cybertruck, including the $25,000 EV.
A fan of Musk, Rusc said it was easy to think of a car design that would fit what Tesla wants to bring to market.
The look he desired for this vehicle was an ode to the most brilliant minds in both automotive and science in the past 100 years.
Edison , Enzo Ferrari , Elon and similar, passionately push the limits of what’s deemed possible.”
“The company has always been a tremendous source of inspiration for me. I’ve closely followed Elon Musk’s interviews, learning a great deal and developing immense respect and admiration for him,” Rusc told Teslarati.
“These designs have to be not just special but slightly different, pushing the boundaries of excellence, possibly aiming to be the best in their class, if not the world. It’s a nod of appreciation to those who, like Nikola Tesla ,
A report from Reuters on Jan. 24 said Tesla has already started reaching out to suppliers to prepare for its affordable EV that would be built upon its nextgeneration platform.
Tesla plans to build about 10,000 units per week, according to the report, and production would begin around June 2025.
Tesla reportedly studied some affordable vehicles over the past few years to figure out where manufacturing could be simplified to reach low pricing.
The company is rumored to have torn apart a Honda Civic, a vehicle produced in a conventional way while being highly affordable and extremely popular.
It also could end up being the vehicle that leans into Tesla’s plans for a robotaxi fleet, which the automaker has hoped to develop for years.
46 MARCH 2024 AUTOBODY NEWS / autobodynews.com
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Tesla fan Tine Rusc drew what he thinks the Tesla Redwood might look like based on what he read in a recent biography on Elon Musk.
U.S. New-Vehicle Sales Slow in January Despite Price Drops
The U.S. new-vehicle market experienced a slowdown in sales pace in January, despite a drop in average transaction prices (ATP) and an increase in buyer incentives, per Kelley Blue Book, a Cox Automotive company. The report indicates a significant reduction in new-vehicle ATPs at $47,401, marking a 2.6% decrease from December 2023 and a 3.5% decline compared to January of the previous year. “It is common to see lower transaction prices and sales in January, as December typically is a hot month for luxury vehicle sales,” said Erin Keating, an executive analyst for Cox Automotive. “However, the year-over-year new-vehicle ATP decline of 3.5% is notable.” She added that prices have been on a downward trend for about six months, driven by automakers’ efforts to enhance deals to sustain sales. The seasonally adjusted annual rate (SAAR), an indicator of sales pace, was 15.0 million in January, a decline from 16.1 million in December 2023 and
below the 15.1 million rate from January 2023. This slowdown occurred despite dealers and manufacturers increasing discounts and incentives, which averaged 5.7% of ATP in January, up from 5.5% in December and significantly higher than the 2.8% average in January 2023 when new-vehicle inventory was considerably lower. Luxury vehicles and full-size pickup trucks saw some of the highest discounts, while incentives for small pickups, full-size SUVs and minivans remained below the industry average, at less than 3% of ATP. The luxury vehicle segment, in particular, witnessed a decrease in prices, with the average price for a luxury brand vehicle dropping to $60,978, the lowest since the summer of 2021, and year-overyear price declines in luxury cars and compact SUVs reaching 9.7% and 11.9%, respectively.
The report also highlighted the revised EV transaction price data, reflecting the ongoing downward pressure on electric vehicle prices.
By David A. Wood CarComplaints.com
A Toyota Takata airbag recall announcement warns owners of these older models to stop driving their vehicles until they are repaired:
• 2003-2004 Toyota Corolla
• 2003-2004 Toyota Corolla Matrix (Toyota Matrix)
• 2004-2005 Toyota RAV4
About 50,000 vehicles are involved in the Toyota Takata airbag recall do not drive warning. Calling the airbag recall “URGENT,” Toyota said the airbags could explode and shoot metal fragments into vehicle occupants, primarily due to the age of the vehicles.
Toyota Corolla, Matrix and RAV4 owners should stop driving the vehicles and call their dealerships.
A Toyota dealer can visit the location of the vehicle and perform a mobile repair, or an owner can arrange to have the vehicle towed to the dealership for free.
Toyota will cover the cost of vehicle pickup and delivery.
Toyota will repair or replace the airbags, and owners can learn if their vehicles are affected by visiting Toyota.com/recall or nhtsa.gov/recalls.
Toyota Corolla, Toyota Matrix and Toyota RAV4 owners with questions or concerns may call the automaker at 800-331-4331.
autobodynews.com / AUTOBODY NEWS MARCH 2024 47
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Biden Administration Pledges $5 Billion To Boost Semiconductor R&D
The Biden-Harris Administration recently announced a more than $5 billion investment in semiconductor research, development and workforce initiatives, aimed at reinforcing U.S. leadership in the critical technology sector. This move, part of the broader CHIPS and Science Act, seeks to revitalize America’s role in semiconductor innovation and manufacturing, addressing both national security concerns and the need for a skilled workforce.
Semiconductors, the cornerstone of modern technology, were once a domain where the U.S. led globally. However, current figures show the U.S. producing less than 10% of the world’s supply, including none of the most advanced chips. This investment aims to reverse the trend of declining government R&D investment, which has fallen below 1% of GDP in recent years, by leveraging the CHIPS and Science Act’s historic funding provisions. The National Semiconductor Technology Center (NSTC) is
the focal point of this initiative, representing a collaborative effort between government, industry, academia and other stakeholders to foster innovation and accelerate the commercialization of new technologies. The NSTC, supported by a public-private consortium, aims to ensure U.S. supremacy in next-generation semiconductor technologies through design, prototyping and piloting initiatives.
In addition to the NSTC, the investment plan includes significant funding for workforce development. The creation of a Workforce Center of Excellence and other programs aims to establish equitable training pathways, connecting Americans to high-quality jobs in this vital sector. These efforts are complemented by investments in other key R&D areas, such as the development of a semiconductor manufacturing digital twin institute and advancements in semiconductor packaging technologies.
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The National Highway Traffic Safety Administration (NHTSA) unveiled a new grant program aimed at upgrading and standardizing state crash data systems across the U.S. Backed by up to $350 million in grants, the initiative is designed to facilitate full electronic data transfer to NHTSA, fostering more efficient intrastate data sharing and enhancing the precision, timeliness and accessibility of critical fatality data.
“These grants will mean more state data coming to NHTSA faster, which means we can put this information to good use in pursuing our shared safety goal – saving lives,” said Sophie Shulman, NHTSA’s deputy administrator. “State data tells us what’s happening on our roads and allows us to develop effective and responsive strategies, countermeasures, research, rulemakings and consumer education campaigns.”
The State Electronic Data Collection (SEDC) program,
fulfilling a mandate from the Bipartisan Infrastructure Law, invites applications from all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Northern Mariana Islands and the Secretary of the Interior on behalf of Indian tribes. This widespread eligibility aims to ensure a comprehensive upgrade of crash data systems across the nation.
NHTSA’s approach involves awarding SEDC grants to states and territories that present a clear plan for modernizing and standardizing their data collection systems. Selected participants will be granted a five-year window to implement full electronic data transfers to NHTSA.
The application deadline is May 1, and NHTSA plans to distribute the grants by December. This new program aligns with President Joe Biden’s broader goals under the Bipartisan Infrastructure Law.
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autobodynews.com / AUTOBODY NEWS MARCH 2024 49
NHTSA Announces $350M in Grants To Improve State Crash Data Systems CALIFORNIA Porsche Burlingame Burlingame, CA 888.737.5738 650.348.0883 650.348.0837 Fax parts@rectormotors.com ©2023 Porsche Cars North America, Inc. Porsche recommends seatbelt usage and observance of traffic laws at all times. IDAHO Porsche of Boise Boise, ID 800-621-1775 208-672-3494 Fax partspc@lylepearson.com Porsche Genuine Parts and Service, only at your local authorized Porsche dealer. Porsche Long Beach Long Beach, CA 562-494-1911 562-343-5385 Fax ndavis@porschelb.com Quality repairs and the possibility for quicker turnarounds—Genuine Volkswagen Collision Parts help provide the work your customers need at the speed of satisfaction. Find an authorized Volkswagen dealership near you at vwwholesaledealers.com
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West Virginia, South Dakota Introduce Bills Supporting ICE Vehicles
Lawmakers in both West Virginia and South Dakota have introduced legislation that would prevent any county or city in the state from limiting access to internal combustion engines (ICE) and related technology.
would prevent limiting access to engines powered by any particular source, not only fossil fuels.
In South Dakota, the bill awaits consideration by the House Local Government Committee.
West Virginia and South Dakota are the first two states to introduce this legislation in the 2024 state legislative sessions, but follows seven other states—Texas, Oklahoma, Kansas, Wisconsin, Michigan, Ohio and North Carolina—that have previously passed similar legislation and resolutions.
SEMA supports both states’ bills, and believes those states’ residents, not the government, should be allowed to choose the type of vehicle technology that best serves them and their families.
In West Virginia, the bill was introduced by Del. Gary Howell, R-87, who is also chairman emeritus of SEMA’s State Automotive Enthusiast Leadership Caucus. His bill
SEMA enourages residents in West Virginia to send tell their representatives to support the bill by visiting p2a.co/fxqwxpn, and those in South Dakota to do so by visiting p2a.co/z3siWQ9.
50 MARCH 2024 AUTOBODY NEWS / autobodynews.com
The bills would prevent limiting access to internal combustion engines. Image via Shutterstock.
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