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VOL. 32 ISSUE 5 MAY 2014
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At CIC, Ford Outlines its Strategy to Help Repairers Prepare for the New F-150, Focus on Repairability by John Yoswick
Ford Motor Company representatives at the Collision Industry Conference (CIC) held in Portland, Ore., in April provided more information not only about the automaker’s 2015 F-150 pick-up, but also about the “Ford National Body Shop Network,” through which Ford hopes to promote both dealership and independent shops to owners of Ford vehicles needing collision repair. Paul Massie, collision product marketing manager for Ford, acknowledged that his company may have
fallen behind other automakers in developing a certification or recognition program for independent shops. But it also is clearly the new F-150, an aluminum-intensive vehicle expected to hit showrooms in November, that is behind Ford’s push to increase the Paul Massie number of body shops equipped and trained to work on aluminum. The F-150 has been the best-selling vehicle in the country for See Ford’s Plan, Page 22
Attorneys for Collision Repairers Respond to State Farm’s Request for Dismissal of Antitrust Case
automobile parts and services, adopted similar reimbursement policies and practices, and attempted to steer customers away from shops that refused to adhere to Defendants’ price limitations. The ‘crucial question,’ however, is ‘whether the challenged anticompetitive conduct stem[s] from independent decision or from an agreement, tacit or express,’’ State Farm’s attorneys write in their response. “As a general rule, businesses are free to choose the parties with whom they will deal, as well as the prices, terms and conditions of that dealing,” they claim. “Section 1 of the SherSee State Farm Requests, Page 48
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
Attorneys for repair shops that filed suit against State Farm and more than a dozen other insurers recently responded to the insurer’s request for the U.S. Middle District of Florida Court, Orlando division, to dismiss their antitrust and steering lawsuit, saying that there is “more than sufficient facts asserted to satisfy the pleading requirements.” The Florida repair shops sued State Farm and dozens of other insurers. See this issue and Autobody News April issue for more on the lawsuit, or search online at Autobodynews.com. “Plaintiffs allege that Defendants imposed maximum price limitations for
California’s Insurance Commissioner Dave Jones talks to Autobody News about the State of the Industry and the future by Ed Attanasio
California’s Insurance Commissioner David Jones was elected on November 2, 2010 with 4.7 million votes. He leads the California Department of Insurance (CDI), the largest consumer protection agency in the state, which regulates the $123 billion insurance industry. We recently sat down with Jones to find out what’s he’s achieved in the collision industry and what’s he’s learned since getting elected. Q: What were the very first collisionrelated things you did as Insurance Commissioner?
DJ: Shortly after becoming Insurance Commissioner, and even earlier as a
member of the California Legislature, I sought significant input on repair standards and aftermarket parts concerns from consumers, collision repair shops, consumer safety and advocacy groups, and other stakeholders. This information led to me take action so that consumers are protected from inferior repair standards and potentially defective aftermarket replacement crash parts. In late 2011, I held a public workshop on these issues and proposed new regulations. After receiving significant public comments from stakeholders, and making substantial changes to the proposed regulations, the Department submitted the final See Dave Jones Interview, Page 8
Indiana Autobody Association and Indiana Shop Owners File Suit to Block Tortious Interference The Indiana Autobody Association (IABA) along with fourteen Indiana Collision Repair Shops filed legal action against twelve Property and Casualty Insurance Companies and their subsidiaries on April 2, 2014. The suit seeks unspecified financial damages and names 27 insurers including Illinois-based State Farm, which has the largest market share in the state at about 25 percent. Others with large market share include Ohiobased Progressive Insurance and locally based Indiana Farmers Mutual Insurance Co. The suit accuses the insurers of “engaging in an ongoing, concerted and intentional course of action and conduct with State Tony Passwater Farm acting as the
spearhead to improperly and illegally control and depress the automobile damage repair costs.” In addition, “The insurance companies (“Insurers”) are improperly intruding upon the relationship between the Shops and consumers, and placing the driving public at harm by their practices.” As it pertains to DRP shops, the suit also accuses the insurers of “engaging in an ongoing pattern and practice of coercion and implied threats to the pecuniary health of the individual plaintiff businesses in order to force compliance with unreasonable and onerous concessions.” Tony Passwater, IABA Executive Director, states, “There’s going to be a battle. For decades the insurers have interfered with the collision repair professional’s obligation to reSee Tortious Interference?, Page 41
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
COLUMNS Attanasio - Automotive Marketing Company Garners Huge Kudos for its Website Clients. . 52 Attanasio - What Ever Happened to the Return Phone Call?. . . . . . . . . . . . . . . . . . . 32 Chaney - Buses of Yellowstone—How About These for Barn Finds? . . . . . . . . . . . . . . . . 50 Franklin - Gender Marketing Power is a Trend Already in Evidence. . . . . . . . . . . . . . 20 Sisk - Arkansas Collision Repair Association Seeks New Members for the Future of the Industry, Education on Technology a Focus . . 30 Sisk - Automotive Recyclers Association CEO Urges OEMs to Supply Crucial Parts Data at International Automobile Recycling Congress . 18 NATIONAL 3M Continues Funding Scholarships For 2nd Year in Collision Repair for Returning Veterans . . 58 American Honda Announces Two Body Repair Bulletins . . . . . . . . . . . . . . . . . . . . . 54 Are Aluminum Cars Really Better for the Environment? Study Says ‘Yes’ . . . . . . . . . 58
At CIC, Ford Outlines its Strategy to Help Repairers Prepare for the New F-150, Focus on Repairability . . . . . . . . . . . . . . . . . 1 Attorneys for Collision Repairers Respond to State Farm’s Request for Dismissal of Antitrust Case . . . . . . . . . . . . . . . . . . . . . . . 1 AudaExplore Enhances MAACO’s Operational Efficiency with Repair Platforms . . . . . . . . . 57 AutoBody-Review.com Improves Geo-Targeted SEO, Authority for Shops by Adding “Articles: to Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . 58 CCC Updates: Carwise Shop Finder Solution, Contact Center Solution, TRUE Parts Network Suppliers, and Crash Course 2014 Report . 46 Chief Opens New Specification Center in Malaysia to Provide Customers with Better, More Timely Specs . . . . . . . . . . . . . 60 CNN Recognizes NABC for Donating 200+ Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Collision Industry Foundation Announces New Trustees . . . . . . . . . . . . . . . . . . . . . . . 57 Colorado Springs Duo Develop ‘Ding Stinger’ App . . . . . . . . . . . . . . . . . . . 54 IBIS to be Held in Barcelona on May 19-21. . . 50 I-CAR News: New Board of Directors, Collision Repair Training for 2015 Ford F-150, Industry Support, Limited-Time Promo, and Revamped Steering/Suspension Course. . . . . . . . . . . . 26 Indiana Autobody Association and Indiana Shop Owners File Suit to Block Tortious Interference . . . . . . . . . . . . . . . . . . . . . . . . . 1 Industry Week Fundraiser . . . . . . . . . . . . . . . . 61 KS Body Shop Temporarily Closed for Tax Non-Payment . . . . . . . . . . . . . . . . . . . . 61 Limited-Time Promo on 2 New I-CAR Training Bundles. . . . . . . . . . . . . . . . . . . . . 61 Matrix System ‘15 Finishes Calendar Contest . . 61 MB Approves Elektron Spot Welders for HSS . 20 Missouri Shop Owner and Consultant Favors Common-Sense Solutions for Common Problems . . . . . . . . . . . . . . . . . . . . . . . . . . 42 NACE/CARS 2014 Website Live, Hotel Reservations Open for Detroit . . . . . . . . . . . 60 NJ KISS Bandits Arrested After $40,000 in Damages . . . . . . . . . . . . . . . . . . . . . . . . 59 PartsTrader Completes National Rollout, Now Available in All States . . . . . . . . . . . . . 25 Premier Services Donates $2.5K to the CRE Foundation . . . . . . . . . . . . . . . . . . . . . 50 SCRS 2014-2015 Board Elected in April 2014 . 56 SEMA Board of Directors Candidates Announced. . . . . . . . . . . . . . . . . . . . . . . . . 57 Sherwin-Williams Supports NASCAR Green Initiative, Applies Low VOC Paint to No. 51 . 60 Society of Collision Repair Specialists Open Board Mtg. . . . . . . . . . . . . . . . . . . . . . . . . . 56 Society of Collision Repair Specialists Roundtable. . . . . . . . . . . . . . . . . . . . . . . . . 59 Thousands Attend Record-Breaking Northeast™ 2014 Show . . . . . . . . . . . . . . . 36 WA Bill Exempts Collectibles from Emissions Testing . . . . . . . . . . . . . . . . . . . 56 Washington State Approves Tesla Direct Sales Model . . . . . . . . . . . . . . . . . . . . . . . . . 4 WIN Announces 2014 Conference Brochure, Most Influential Women and Scholarship Winners, Corporate Sponsors, and New Board of Directors Members . . . . . . . . . . . 16
from ALL of Us at AUTOBODY NEWS!
Where to? Now that Spring has finally sprung, we hope all shops see a return to normalcy in weather and business. We wish you all a prosperous and successful rest of 2014.
Indexof Advertisers
REGIONAL Almost Everything Autobody Sponsors Gunn High School’s ‘24 Hours of LeMons’ Project . 4 Attanasio - Interview with Dave Jones. . . . . . . . 1 Attanasio - WaterCar Has Body Shop Owner Swimming in Business . . . . . . . . . . . . . . . . 14 Auto Collision Center of Thousand Oaks, CA, Enters the Aluminum Age in Collision Repair. . 4 Bay Area Body Shop Mentors Future Repairers . . 4 Caliber Collision Opens New Location in Oxnard, CA . . . . . . . . . . . . . . . . . . . . . . . 10 California Autobody Association San Diego Chapter P-Page Negotiation and Education Workshop on May 20, RSVP . . . . . . . . . . . 10 CAWA Takes Neutral Position on California Telematics Legislation, SB 994 . . . . . . . . . . 13 Collision Repair Shop Refurbishes Car for Family in Need in Salinas, CA . . . . . . . . . . . 12 Mission District Auto Body Shop Sells for $8.7 Million. . . . . . . . . . . . . . . . . . . . . . 10 Monte Etherton Issues Appeal to Body Shop Principals to Support Dave Jones’ Re-election, Details Reasons to Support Jones . . . . . . . 48 New Allstate Service Center to Open in Draper, UT . . . . . . . . . . . . . . . . . . . . . . . . . . 6 New Auto Internship at Salt Lake Community College. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Pasadena Family Gets Recycled Ride from Seidner’s . . . . . . . . . . . . . . . . . . . . . . 10 Peoria, AZ, Shop Gifts Santa Fe to Deserving Family . . . . . . . . . . . . . . . . . . . . 10 Plea Made By Former Ceres Body Shop Owner After Body found in Closed Auto Body Shop’s Freezer . . . . . . . . . . . . . . . . . . . . . . 13 Provo, UT, Police Searching for Shop Robbery Suspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Shooting at N. Hollywood, CA, Shop Wounds Three . . . . . . . . . . . . . . . . . . . . . . . 6 Utah Auto Body Association Hosts Workshop for Maximizing Employee Potential . . . . . . . . 6 Vern W. Johns, 85, Passed Away in Mesa, AZ, March 25 . . . . . . . . . . . . . . . . . . 12 Yucaipa Benevolence Car Giveaway to be Held June 5 . . . . . . . . . . . . . . . . . . . . 12
Happy Easter
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Audi Wholesale Parts Dealers . . . . . . . .52 Automotive ID . . . . . . . . . . . . . . . . . . . .22 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .31 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Dealerships . . . . . . . . . . . . . . .19 BMW MINI of Escondido . . . . . . . . . . . .13 BMW Wholesale Parts Dealers . . . . . . .55 Bob Smith BMW . . . . . . . . . . . . . . . . . .30 Bob Smith MINI . . . . . . . . . . . . . . . . . . .30 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .33 Chapman Scottsdale Autoplex . . . . . . .16 Chief Automotive . . . . . . . . . . . . . . . . .8, 9 Classifieds . . . . . . . . . . . . . . . . . . . . . . .62 Colortone Automotive Paints . . . . . . . . .20 Completes Plus . . . . . . . . . . . . . . . . . . .14 Creative Metal Manufacturing . . . . . . . .32 DCH Chrysler-Jeep-Dodge-Ram . . . . . .24 DCH Kia of Temecula . . . . . . . . . . . . . . .24 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .43 Drew Hyundai . . . . . . . . . . . . . . . . . . . .49 East Bay BMW-MINI . . . . . . . . . . . . . . . .41 Elk Grove Toyota . . . . . . . . . . . . . . . . . .38 Enterprise Rent-A-Car . . . . . . . . . . . . . .38 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .51 Galpin Motors . . . . . . . . . . . . . . . . . . . .26 GlasWeld Systems, Inc. . . . . . . . . . . . . . .4 Glenn E. Thomas Dodge-Chrysler-Jeep .15 Glenn E. Thomas FIAT . . . . . . . . . . . . . .15 GM Wholesale Parts Dealers . . . . . . . . .61 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .34-35 Hyundai Wholesale Parts Dealers . . . . .46
Serving California, Nevada, Arizona and Utah. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
Contents
Innovative Tools & Technology, Inc. . . .64 Kearny Mesa Subaru-Hyundai . . . . . . .40 Ken Garff Automotive Group . . .17, 28-29 Kia Motors Wholesale Parts Dealers . . .47 Larry H. Miller Chrysler-Jeep-Dodge . . .12 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Los Gatos Luxury Cars . . . . . . . . . . . . .45 Maita Subaru . . . . . . . . . . . . . . . . . . . . .42 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Martech Services Company . . . . . . . . .10 Mazda Wholesale Parts Dealers . . . . . .58 Mercedes-Benz . . . . . . . . . . . . . . . . . . .23 MINI Wholesale Parts Dealers . . . . . . . .54 Mitsubishi Wholesale Parts Dealers . . .50 MOPAR Wholesale Parts Dealers . . . . .39 Moss Brothers Chrysler-Jeep-Dodge . .11 Mossy BMW of Vista . . . . . . . . . . . . . . .25 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .57 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 PreFab Ads . . . . . . . . . . . . . . . . . . . . . . .6 Replica Plastics . . . . . . . . . . . . . . . . . . .42 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .44 SATA Spray Equipment . . . . . . . . . . . . .27 Shingle Springs Nissan-Subaru . . . . . .36 Sierra Chevrolet-Honda-Mazda-Subaru .48 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .46 South Bay Volkswagen . . . . . . . . . . . . .18 Subaru Wholesale Parts Dealers . . . . . .59 Toyota Wholesale Parts Dealers . . . . . .60 Valspar Automotive . . . . . . . . . . . . . . . . .7 Volkswagen Wholesale Parts Dealers . .53 Volvo Wholesale Parts Dealers . . . . . . .56 Weatherford BMW . . . . . . . . . . . . . . . . .37
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 3
Auto Collision Center of Thousand Oaks, CA, Enters the Aluminum Age in Collision Repair
Together they congratulated Lampert and his staff for achieving the covOn March 19, 2014, Auto Collision eted Mercedes-Benz Tier I and Elite Center (ACC) in Thousand Oaks, CA, Tier II aluminum certifications along hosted an aluminum launch open house with an A & B Range Rover/Jaguar certo commemorate the shop’s aluminum tification.This Mercedes-Benz Certified program and its recent accreditation Collision Center has been recognized from Mercedes-Benz. by Mercedes-Benz USA as an “Elite Aluminum Certified” repair facility, a designation less than 600 collision centers possess. Being associated with a major elite brand like MercedesBenz means that Lampert and his shop are in a select group, he said. “We’re proud and honored to be working on these cars because they’re From left, Charles Camarillo (ACC), Melissa Chavez some of the finest in the (ACC), Greg Lampert (ACC), Ron Keller (Silver Star world,” Lampert explained. Mercedes), Don Ilic (ACC), Scott Stanley (Silver Star Mercedes), Swen Schraml (Silver Star Mercedes), “By working with Mercedesand Marty Casarelli (Silver Star Mercedes) Benz it says—hey we’ve got the training, knowledge, and Hosted by ACC owner Greg Lam- capabilities to make these repairs at a pert, the reception was attended by gen- high level. That’s how we’re able to diferal manager Scott Stanley from Silver ferentiate ourselves from the competiStar Mercedes-Benz and service man- tion because we always tell our ager Swen Schraml. Also in attendance customers that not all body shops are was Bill Carroll, general manager of created equal.” Thousand Oaks Jaguar/Range Rover in Westlake, CA, and the ACC certificawww.autobodynews.com tion sponsor for both Jaguar and Land Rover. CHECK IT OUT! by Ed Attanasio
Bay Area Body Shop Mentors Future Repairers
Car West Auto Body partnered with Mission Valley ROP and Silicon Valley ROP schools to enrich the auto body program for students and help develop and grow an organic workforce in the Bay Area. Car West proactively hosts field trips to its facilities and created a mentor program to connect with students. The field trips consist of a day of touring one of their six collision repair facilities and a meet-and -greet lunch with Car West president and CEO Craig Moe.
“Cars are changing just as fast as technology, and Car West needs educated and well-trained students to carry on the legacy of leading exceptional auto body repair work in the industry,” said Moe. In addition, Car West will continue to be an active member of the MVROP Auto Body Advisory Committee.
Washington State Approves Tesla Direct Sales Model
While New Jersey is kicking Tesla out of the state because of lobbying pressures from auto dealers, the state of Washington is going in the opposite direction: Governor Jay Inslee has signed a bill that explicitly allows Tesla to sell its electronic vehicles through its own stores in Washington. This not only removes uncertainty for Tesla in Washington, but it will allow it to expand beyond its two showrooms in Seattle and Bellevue. In a statement, Tesla said that the Washington legislation should serve as a “model solution” for other states. Musk has said on the company's blog that he doesn't want to break up the dealer franchise model, he's just not interested in participating. “The bill clarifies that a manufacturer that held a dealership license as of January 1, 2014, would be exempt from the prohibition on manufacturer ownership,” said Bryan Imai, senior general counsel at the Washington State Auto Dealer Association. Tesla held a dealership license in Washington as of January 1, 2014, he said.
4 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
Almost Everything Autobody Sponsors Gunn High School’s ‘24 Hours of LeMons’ Project Almost Everything Autobody (www.autobodyfremont.com) donated $600 toward the preparation of the Gunn High School Auto Tech 24 Hours of LeMons (www.24hoursoflemons.com) project—and painted it too. Gunn High School competed in the 24 Hours of LeMons 2014 Sears Pointless endurance race March 22– 23, 2014, at the Sonoma Raceway (formerly Sears Point Raceway) in Sonoma, CA. The real LeMans race is held annually in LeMans, France, with top auto manufacturers and the fastest gas, diesel, hybrid, and electric cars in the world competing and testing new automotive technologies. 24 Hours of LeMons was established in 2006 by car guy and raconteur Jay Lamm as “Endurance Racing for $500 Cars” (i.e. lemons). Events are held throughout the U.S. Gunn High School students chose to create a replica of the Pizza Planet delivery truck made famous by Pixar's “Toy Story” as their LeMons entry (www.gunnautotech.com/projects/class/pizzaplanet). “I try to keep it interesting with cool projects like the ‘Pizza
Planet Truck,’” said Mika Camicia, Gunn High School’s auto tech instructor.
Camicia and his wife are both Sports Car Club of America (SCCA) champions and something of racing legends themselves in the San Francisco Bay Area. Camicia would also like to thank Almost Everything for sponsoring the team once again. “It's very hard to find funding or support for this kind of stuff,” said Camicia. Frank Barnard, Almost Everything general manager, said, “Kids that learn to build and race cars for the 24 Hours of LeMons better understand the need for safety, the potential and limitations of cars in general, and the potential consequences of an accident. It's a great education.”
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 5
Utah Auto Body Association Hosts Workshop for Maximizing Employee Potential
By Chasidy Rae Sisk
On March 8, 2014, the Utah Auto Body Association (UABA) hosted the “Maximizing Employee Potential: Leadership and Coaching Employees Performance Workshop,” presented by Norman Rose of Excel Sales Consulting at the Salt Lake Community College Miller Campus in Sandy, UT. Developed for UABA and sponsored by PPG Industries Inc., the workshop emphasized the importance of developing strong, exceptional employees and aimed to equip participants with the skills and tools necessary to grow and develop their customer relationships and achieve immediate positive business results. Attendees learned to help employees maximize their potential and communicate their expectations effectively, and acquired empowering coaching techniques. The workshop also covered enhancing a positive work environment by establishing collaborative team action items, as well as how to improve customer service skills and selling.
Shooting at N. Hollywood, CA, Shop Wounds Three
Two men were arrested late April 16 after a shootout at a North Hollywood body shop left three men hospitalized, with one in critical condition. Around 2 p.m., police received a call reporting the shooting at the shop in the 12700 block of Sherman Way, according to Capt. Stephen Carmona of the Los Angeles Police Department’s North Hollywood division. Two victims were found at the auto body shop, one in critical condition, Carmona said, and taken to a local hospital. A short time later, a second shooting was reported about a mile away near Laurel Canyon Boulevard and Keswick Street, according to Officer Rosario Herrera. Officers found two men in a white BMW, and one of them had been shot. Investigators believe the two men were the primary shooters in the incident on Sherman Way, and consider both suspects. The injured man was arrested and taken to a local hospital and the second man was arrested at the scene, Herrera said. A gun was recovered at the scene where the two men were found in the BMW. Carmona said he did not yet know the relationship among the four men, or what led to the shootings.
Rose covered five topics: Developing the Coach Within You, Techniques to Create a Positive Work Environment, Coaching Staff, Managing a Professional Staff Meeting, and Defining the Goal-Setting Process. UABA held an Industry Issues Roundtable Discussion during lunch. With over 25 years’ experience in the automotive aftermarket industry, Rose has been involved in all levels of distribution, from manufacturing and warehouse distribution, to jobbers and collision centers. Since establishing Excel Sales Consulting in 2001, he has launched a full series of customized training programs and has trained hundreds of industry professionals. As an industry veteran, Rose is familiar with the challenges shop owners face daily. For more information about UABA, visit www.utautobody.com.
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Provo, UT, Police Searching for Shop Robbery Suspect
Provo police are searching for a man after he allegedly robbed a collision repair center and stole several cars. Provo police received a call of a theft at a collision repair center in Provo on March 24. A man had reportedly climbed the fence surrounding the business and entered the enclosed area. He then entered several vehicles in the compound then used a customer's vehicle to ram the gate. The man then stole another customer's truck from the compound and left the collision repair center, according to Provo police. The damage of the gate and the vehicle caused by the collision was estimated around $10,000. Police said the stolen truck was located in Salt Lake City on March 27. Several receipts of purchases were also found inside the truck. Anyone with information regarding the identification or whereabouts of the man is asked to call the Provo Police Department at 801-852-7306.
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6 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
New Allstate Service Center to Open in Draper, UT
Allstate Insurance Co. will open a new service center in Draper, UT. The South Valley facility—the second of its kind in the nation—is scheduled to open by the end of May 2014. “These centers directly serve our Allstate agency owners and their staff,” said spokeswoman Chelci Vaughan. “They're designed to help the local agencies quickly and effectively serve customers.” Initially, Allstate will fill 35 positions in Utah, with plans to hire up to 100 more in the next year. “Opening this office will expand Allstate’s service capabilities for our 9,400 agencies and help us better protect our customers,” said Bill Ballinger, Allstate senior vice president of Agency Contact Center Operations. Of the 35 open positions, 30 will be customer service representatives, and five will be leaders or administrative support staff. Starting pay for the new facility will begin at $12.50 per hour. Ballinger said employees from other local offices will eventually move into the new service center, which will house more than 300 employees by the end of 2015.
New Auto Internship at Salt Lake Community College
Salt Lake Community College (SLCC) interim president Dr. Deneece Huftalin announced that the school will offer a new, for-credit class the summer of 2014 through an automotive internship, fulfilling a wish of the late Roger L. Miller. Roger was “instrumental and inspirational” in the creation of the class, according to Rick Bouillon, dean of SLCC School of Technical Specialties. “His vision for on-thejob, real-world training will have lasting, positive effects for those seeking a career in automotive technology,” Bouillon said. Second-year students working toward an Associate of Applied Science degree in the SLCC Automotive Technician program will be able to earn six credit hours by taking the class. Through the ongoing class, which begins the summer of 2014, students will work in paid and unpaid internships at a variety of participating companies and receive at least 180 hours of on-the-job training. Students will need to meet specific requirements before taking part in the class.
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 7
Continued from Cover
Dave Jones Interview
rulemaking package to the Office of Administrative Law (OAL). OAL approved the regulations on December 31, 2012, and they became effective March 30, 2013.
This rulemaking addressed two primary issues: First, I determined that many insurers were not creating estimates that fully compensated claimants and repair shops for the cost to repair damaged vehicles in a workmanlike manner according to the standards of repair required of collision repair shops licensed by BAR and failed to provide support for adjustment made to body shop estimates. These amended regulations clarified that an insurer must use reasonable repair standards as the basis for estimating repair costs and that insurers must properly itemize and support adjustments made to estimates. Second, the amended regulations enhance and clarify an insurer’s obligations when it seeks to use Non-OEM (or aftermarket parts). I was made aware of non-compliant aftermarket parts, such as, bumper reinforcements, hoods latches, and other safety related parts being required by insurers. I also became aware of substantial costs borne by consumers associated with installing defective or poorly fitting parts required by insurers. These amendments clarified an insurer’s obligation when using an aftermarket part and what steps it must take when it identifies a non-compliant aftermarket part. Since these regulations became effective about one year ago, the Department has seen complaints on these issues decrease, but I’ve instructed my compliance team to be vigilant in monitoring insurer practices.
Q: Leaders in the state’s collision industry have told us that so far you’re the best Insurance Commissioner they’ve ever worked with because you’re talking the talk and walking the walk. What do you think you’ve done right and what still needs to get done?
DJ: I’m flattered that the collision repair industry feels that way, but I’ve always strived to be fair to all stakeholders on the issues I face as Insurance Commissioner. My mission as
Insurance Commissioner is insurance protection for all Californians—that includes ensuring consumers get a fair shake from insurers, and that small businesses (like collision repair shops, contractors, etc) who are vital to assisting insurance claimants repair and replace what was damaged, are treated fairly and paid a reasonable amount for these important services. As Insurance Commissioner, in the area of collision repairs, I have tried to strike a balance between the interests of consumers, insurance companies and repair shops. This philosophy has been successful in getting the Department, stakeholders in the repair industry and representatives of the insurance industry to work together to revise the Department’s Fair Claims Settlement Practices regulations regarding the standards for repair and the use of aftermarket parts, as previously stated. There is still more work to be done to better protect consumers. With regard to collision repairs, this includes addressing other issues brought to my attention by consumers and repair shops alike – the lack of fairness and consistency in how collision repair labor rate surveys are conducted by insurers (when they use these surveys to pay claims) and to prevent illegal “steering” of consumers to the insurers’ Direct Repair Program (DRP) shop. These issues cause consumers to pay more out-of-pocket for repairs and limit a consumer’s choice in selecting a collision repair shop.
Q: How have you been involved with the car repair industry and specifically the auto body repair industry while in this position?
DJ: I’ve been significantly involved both prior to and after becoming Insurance Commissioner. I’ve participated and worked collaboratively with the California Autobody Association (CAA), other collision repair associations, insurer trade groups, consumer safety and advocacy groups, OEM auto manufacturer groups and aftermarket parts certification groups to understand each point of view, and gather data and facts so that I ensure that consumers are protected and insurers are fulfilling the promises they made to pay collision repair claims. Q: Do you think the tug-of-war between the insurance co’s and body shops will always exist?
DJ: While I expect there will always be some level of friction between body
8 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
shops and insurance companies, I’ve also seen instances where they have been able to work together. For example, when insurers and body shops worked together to resolve the artificial capping of “paint and material” charges, with Department involvement, the result was a collaborativelycreated law (SB 1371 in 2008) that resolved this perennial dispute. My hope is that these types of collaborations can be extended to other areas of dispute. However, I’m not blind to the tensions that exist and so while I continue to urge collaboration, I’m prepared to act on what I determine to be the best policy for consumers, even in the face of insurance industry opposition.
Q: Back when I initially interviewed you, you said that you consistently refuse to accept donations from insurance companies or anyone associated with the insurance industry. I think it’s important that there’s not a conflict of interest, so I’m not soliciting or accepting contributions from the insurance industry.” Has that worked as you anticipated and how have you been able to avoid this conflict of interest?
DJ: I do not accept contributions from insurers, their directors, their employees, or agents and brokers. I think this has worked well to prevent a conflict of interest with those who I directly regulate. Q: What (collision-related) legislation came on your radar while in office and how have you responded?
DJ: In 2012, while my proposed regulations addressing repair standards and aftermarket parts were in the midst of the rulemaking process, some factions of the auto insurance industry attempted to counter my proposal by introducing bills that would create less consumer protection, cause vehicles to be repaired below reasonable repair standards, reduce insurance coverage to consumers, and increase the potential that unsafe aftermarket parts are used to repair vehicles driven on California highways. These bills included AB 1098 and SB 1460. This effort to under one my authority to protect consumers was done at the very end of the legislative session using a “gut and amend —which is when a bill is gutted entirely and new content added to it very late in the legislative process in
an effort to avoid public scrutiny and hearings. I was able to garner support from consumer safety and advocacy groups and the collision repair industry to oppose and stop these unfounded bills from becoming law. I will continue to use my authority as Insurance Commissioner to oppose any similar future attempts by the insurance industry.
Q: Do you think the relationships between the insurance companies and the body shops have improved since you took the position. If so, how?
DJ: In some respects, yes. I’ve heard that subsequent to my successful opposition to these bills and the adoption of my proposed regulations, insurers have been more willing to negotiate with collision repair shops on some issues. But, as I noted, there are still unresolved issues and areas of dispute between these stakeholders. I continue to urge collaboration and have offered the expertise of this Department to aid in this process.
Q: Aluminum is currently the big new thing in the collision industry. How do you think this will affect the
relationships between insurers and repairers?
DJ: I think with any new repair operation or process, or new type of material used in the repair process, there is a period of potential dispute. However, I’m hopeful that insurers and repair shops can get together, perhaps through the Collision Industry Conference (CIC) or other groups that might involve all stakeholders (insurers, body shop, repair estimating companies, etc) to resolve each of these differences with the goal of providing safe repairs by body shops and excellent customer service by insurers. Q: You’ve been very available to body shops and organizations like the California Autobody Association while some of your predecessors have been less transparent. How has it helped you to do a better job?
DJ: Without the valuable expertise and feedback of the collision repair industry, cost estimating companies, consumer groups, and insurance companies, I would be unable make informed reasoned decisions on how best regulate in this area.
Q: Where do you think the collision repair industry will be in 5–10 years?
DJ: I think with the growth in the use of technology, of both the repair process and the new technology placed in vehicles (i.e. automatic braking systems and other crash avoidance systems), the collision repair industry is being transformed before our eyes. The next 5–10 years we will see significant changes to the collision repair industry and to how the insurance industry will react to these changes. As Insurance Commissioner, my job to ensure consumers receive safe repairs without unfair out-of-pocket costs, that insurer fulfill their promise to pay for these reasonable repair costs now and in the future, and that repair shops maintain their independent nature that they are not unfairly influenced by the insurance industry. Q: Where do you stand on labor rate surveys and steering? DJ: As previously noted, I’ve determined that there is lack of fairness and consistency in how collision repair labor rate surveys are conducted by insurers (when they use these surveys to pay claims). This has caused con-
sumers to pay more out-of-pocket for repairs and/or repair shops not getting a fair price for the services they ably perform. In 2012, I held a public discussion on this issue to solicit feedback from insurers, repair shops, and other stakeholders. This is a very complex issue and so requires careful study. My team of experts and attorneys are currently studying this issue. Once they have completed their work, I will determine if it is appropriate and within my regulatory authority to initiate a second major rulemaking on collision repair issues. I expect to have a better idea of what direction the Department might go in and the appropriate timing, later this year. Q: Have you been able to enforce laws that are already on the books?
DJ: As noted, one thing I did to enforce the already existing laws was to make sure the current laws were clear on what an insurer is obligated to do in estimating repair damages and using aftermarket parts. This clarity has led to increased compliance and fewer instances of dispute in these areas. Also, I’ve used my Consumer Services and See Dave Jones Interview, Page 49
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 9
California Autobody Association San Diego Chapter P-Page Negotiation and Education Workshop on May 20, RSVP
The California Autobody Association (CAA) San Diego Chapter is hosting a procedural page (P-page) negotiation and education workshop called “That’s Included” on Tuesday, May 20, 2014, at Tom Ham’s Lighthouse in San Diego, CA. Check in and meet and greet starts at 6:30 p.m., and the workshop starts promptly at 7:00 p.m. Dinner is included. Jerry Gastineau from Mitchell and CAA members will discuss various P-page operations, whether they are included or not, and why. You will also learn about new insurance regulations that require insurers to allow for necessary non-included operations on their estimates and what options you have when they don’t. Recommended for estimators. Attendees will receive a discount if they register and pay for the work-
shop by Friday, May 16, 2014. In addition, attendees who have pre-paid will receive one raffle ticket for a chance to win two tickets to see Ringo and His All Starr Band at Humphrey's by the Bay in San Diego, CA, on July 11, 2014—a $300 value. The pre-paid price is $30 for CAA members and $100 for nonmembers. After May 16, the price is $60 for CAA members and $120 for nonmembers. Make checks payable to California Autobody Association or CAA and mail to: Hop Sanchez, 2214 Dante Terrace, Vista, CA 92084 For questions about the workshop, email Hop Sanchez at sanchezh@finishmaster.com. For questions about new CAA membership or renewals, contact Cindy Shillito at 1-714-9444028 or radiatorgirl@socal.rr.com.
Mission District Auto Body Shop Sells for $8.7 Million
Urban Group Real Estate announced the sale of 3140-50 16th Street, San Francisco, CA, a former auto body shop, for $8.7 million, according to a press release. Louis Cornejo, president of Urban Group, represented the seller, Jesse Henry, who grew up in the projects in Hunters Point and ran Superior Automotive in the Mission for 32 years. He closed it in September and began looking to either sell or lease it. The 56-year-old former Air
Force mechanic first opened an auto repair shop in Bayview, but his business grew and he needed more space. Walking on 16th Street one day in 1994, he passed by the two-story, 1920 Beaux Arts complex and saw the owner place a “for rent” sign on the door. He inquired about renting the space that day and ended up renting it for years before paying $2.5 million to buy the building in 2004. Cornejo said in the release that the 20,400 square-foot property received multiple offers and the selling price represented one of the Mission’s largest commercial sales of the year. The buyer, whose name was not disclosed, plans to “repurpose the building from its current use as an auto body shop,” according to the release. Read more about Henry’s history with the building at http://missionlocal.org/2013/11/two-mission-auto-repair-shops-two-views-of-thetech-boom.
Peoria, AZ, Shop Gifts Santa Fe to Deserving Family ABRA Auto Body & Glass in Peoria, AZ, recently gifted a refurbished Hyundai Sante Fe vehicle to a deserving woman and her family during the MDA Muscle Walk in Phoenix. The vehicle was gifted to Christina Fisher as part of the National Auto Body Council’s Recycled Rides program. The program features collision industry businesses working together to repair damaged vehicles and get them back on the road for use by deserving families or non-profit organizations. “We are absolutely thrilled and proud to partner with important charitable organizations like the MDA and Na-
tional Auto Body Council,” said Robert Mathis, general manager of ABRA – Peoria. “Offering our time and resources is the least we can do to help ease the financial burden on this extraordinary family.” Added Fisher, “Your generosity is truly amazing, and I thank you and the entire team that made this unbelievable gift possible for me.” Contributors included Larry Miller Hyundai, Aamco Arrowhead, Northwest Towing, J.J. Singleton’s Automotive Locksmith, First Quality Auto Glass, and Appearance Automotive.
10 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
Pasadena Family Gets Recycled Ride from Seidner’s
Caliber Collision Opens New Location in Oxnard, CA
On March 24, 2014, Seidner's Collision Center in Duarte, CA, presented the Llanto family of Pasadena, CA, with a refurbished 2010 Jeep Grand Cherokee and one-year State Farm in-
On March 28, 2014, Caliber Collision opened a new 8,200 square-foot collision repair facility at 1500 East Ventura Boulevard, Oxnard, CA— Caliber's 23rd location in the greater Los Angeles area. “Today’s opening of our new Oxnard Auto Center in Oxnard, CA, increases our total locations in the California market to 78 as we restore our customers to the rhythm of their lives,” said Steve Grimshaw, Caliber Collision CEO. “We are committed to adding centers in every Caliber market that provide increased customer choice and industry-leading metrics.” “Our new Oxnard Auto Center location brings Caliber Collision’s total locations to 163 as we continue to grow into the collision repair provider of choice in every community we serve,” added Mark Sanders, Caliber Collision president and COO.
Elena Llanto with her husband Hildebrand and their children with their refurbished 2010 Grand Cherokee. Photo by Walt Mancini/ Pasadena Star-News
surance policy as part of the National Auto Body Council (NABC) Recycled Rides program for low-income families. The Llanto family was one of five families nominated by Foothill Unity Center to receive a refurbished car. Seidner’s worked with State Farm, which donated the write-off, to choose the Llantos. Seidner’s mechanics repaired the vehicle. “We have a lot of plans and hopes,” Elena said. “Now that we have a car we’re going to shine.”
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Yucaipa Benevolence Car Giveaway to be Held June 5 Ben Clymer’s The Body Shop has partnered with PPG, Auto Club of Southern California, Spreen Honda, Yucaipa mayor Denise Hoyt, and Community Connect to give away a free car to a deserving family in Yucaipa, CA. Applications for the Yucaipa Benevolence Car Giveaway are due June 5, 2014, by 5:00 p.m. This is the third free car in Yucaipa by Ben Clymer’s The Body Shop and the 10th for the family business. The gift will come complete with one year of insurance, a trunk full of groceries, and possibly car seats. To be eligible for the car giveaway, the recipient must be a resident within the city limits of Yucaipa, eligible to be insured, have a valid driver’s license with a clean DMV record, and most of all be truly in need of a car.
Community Connect will be collecting the applications and making a recommendation for the recipient selection to Ben Clymer. The staff at Ben Clymer’s will make the final selection from the applicant that most demonstrates the need and life change that a car would bring to their family. Applications can be submitted by potential recipients, friends, family members, or by an agencies. The car will be given in a presentation on June 24, 2014, at 11:00 a.m. at Ben Clymer’s The Body Shop, 32247 Dunlap Boulevard, Yucaipa, CA. Yucaipa Mayor Denise Hoyt will assist in presenting at the ceremony. Email Bobbie Neff at bobbie@connectriverside.org for an application or additional information.
Vern W. Johns, 85, Passed Away in Mesa, AZ, March 25 Vern W. Johns was born April 29, 1928, in Hardin County, son of Allen and Anna (Steinblock) Johns. Vern graduated from Steamboat Rock High School in 1945. He owned and operated Johns’ Auto Body Shop, including lawn mower sales and service for many years until his retirement. He
was a former chief of the Ackley Fire Department, was lead guitar and vocalist for country western bands, enjoyed playing golf, was an avid small airplane pilot and a member of St. Johns United Church of Christ. Vern especially loved playing Cribbage and various card games with friends.
12 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
Collision Repair Shop Refurbishes Car for Family in Need in Salinas, CA
Central Coast News has teamed up with Malone’s Collision Repair to refurbish used cars and give them away to deserving families. Hundreds of nominations poured in. The Molina family was nominated by Jacob’s Heart, an organization that tries to improve the quality of life for children with cancer and ease the difficulties faced by their families. Victoria Molina has been working hard to take care of her three-year-old daughter Maria, who is battling leukemia. Recently, their car was stolen. Doctor’s appointments are not easy to get to, even with help from volunteers. Maria has to be driven to the Bay Area several times a week. Her life is at risk. The family didn’t have the insurance to replace their car and money is tight. A team of sponsors, friends, and supporters gathered at the Molina’s apartment complex in Salinas, CA, on April 17, 2014, to surprise them with a 2008 Hyundai Elantra. The gift was
made possible by Malone’s Collision Repair, My Dealers, Cal’s Motors, P&S Detailing, and Cardinale Auto Group. Other Jacob’s Heart parents showed up to show their support for Maria. One mother, Jennifer Watson, said she couldn’t imagine not having a car to be able to take her daughter Effy to her cancer treatments. “It’s already so hard and so challenging with the resources and if you take resources away from getting to the hospital for treatment, then that’s a lifesaving trip you have to make every month,” said Watson. “It’s amazing and an incredible program and such a gift for this family in need.” Joe Malone, with Malone’s Collision Repair, handed over the keys and paperwork proudly to the Molina parents. “We just try and reach out and give people a hand up when they are down,” said Malone. “I can’t imagine what they are going through and if I can give an extra hand and prayer, then I did my part.”
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CAWA Takes Neutral Position on California Telematics Legislation, SB 994
At the California, Nevada, and Arizona Automotive Wholesalers Association (CAWA) Public Affairs Committee meeting in early April 2014, CAWA officially took a neutral position on Senate Bill (SB) 994 brought by Senator Bill Monning. Sponsored by AAA, SB 994 seeks to create the “Consumer Car Information and Choice Act” by requiring manufacturers that generate or collect vehicle information through telematics technology to make disclosures to the owner about that information, provide the owner with access to the information for transmission to a third party, and prohibit a manufacturer from limiting or restricting the owner from accessing their vehicle information. Like the Automotive Af-
termarket Association (AAIA), CAWA remains neutral on the legislation because of unresolved concerns. “CAWA commits to continuing to engage in constructive dialogue with AAA to strengthen the bill and add the aftermarket perspective, but have decided to watch the bill’s progress through the legislative process and not take a formal position at this time,” stated Rodney K. Pierini, CAWA president and CEO. SB 994 was scheduled to be heard on April 22, 2014, by the Senate Transportation and Housing Committee. For more information, visit www.cawa.org or contact legislative advocate Gary Conover at gary@garyconover.com or 1-916233-9655.
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Plea Made By Former Ceres Body Shop Owner After Body found in Closed Auto Body Shop’s Freezer
The auto body shop owner suspected of killing a man found inside a freezer in his Ceres shop, The Shop Customs, pleaded not guilty in court April 17. Jacob Medina Cervantes, 26, of Modesto is charged with one count of murder in the death of the man, who is identified as “John Doe” in the criminal complaint. The man’s identity and age have not been determined. According to the complaint, the victim was killed sometime from Dec. 1 to April 10. Police have not said how he died, but the body was intact. The man’s body was stuffed inside a freezer at the auto shop. Police discovered the frozen remains the afternoon of April 14 while helping the property owner of the industrial complex off Railroad Avenue, south of Whitmore Avenue, with a civil complaint against Cervantes. Cervantes’ bail was set at $2 million. When asking for the higher bail, Deputy District Attorney John R. Mayne expressed concern about contacts the defendant has outside the country. Cervantes was arrested April 15 at the Ceres Police Department after he voluntarily went to the police station
for an interview with detectives after learning police were looking for him. Detective Darren Venn said customers had complained that they’d paid for work that had not been completed, and no one was answering the phone at The Shop Customs, which advertised custom paint jobs, frame restoration and mechanical work. Venn said detectives also are investigating Cervantes’ business history. The recent complaints about failing to render paid services were not the first. Cervantes has owned multiple auto body shops throughout Stanislaus County. Cervantes will return to court May 1 at 8:30 a.m. for a pretrial hearing.
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Western News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
WaterCar Has Body Shop Owner Swimming in Business with Ed Attanasio
Dave March, owner of Fountain Valley Bodyworks in Fountain Valley, CA, owns a busy body shop that repairs roughly 500 cars every month. When he isn’t wrestling with insurance companies and making sure every car leaves his shop in pristine condition, March is a dreamer and an inventor. He enjoys thinking outside of the ordinary. His brainchild is called the WaterCar, a hydro-friendly, amphibious vehicle that can be used to drag water skiers and tubers at more than 40 miles per hour. Inspired by the Amphicar of the 1960s, March started working on the WaterCar more than 15 years ago as a personal challenge to build the world’s fastest amphibious vehicle. He had no plans to ever offer it to the public, March explained, but as he began refining his creation, he saw a need and a market for the WaterCar. “We’ve designed several models over the years with the goal to make it better every time,” March said. “Our first version of the WaterCar was a purposebuilt vehicle, to be very fast on both land and water. But, when the WaterCar established the amphibious speed record with our Python model, our attention turned to reliability, and we began designing a vehicle to offer to the public.”
March, owner of Fountain Valley Bodyworks in Fountain Valley, CA, wants to sign up other body shops all over the country to assemble WaterCar kits as a new, exciting source of additional revenue.
After numerous successes and failures, 27 patents, and literally thousands of labor hours, March’s dream has been achieved. It’s called the Panther—and the very first WaterCar to be offered to the public. March and his all-star team consisting of top automotive designers and technicians have tweaked the WaterCar’s design, and, by using state-ofthe-art equipment at Fountain Valley Bodyworks, they’ve come up with the
ultimate vehicle for both land and sea. Is the WaterCar more automobile or more boat? Legally, amphibious vehicles need to be registered both as a car and as a boat in the U.S. and display both license plate and hull numbers. “In some states, the Department of Transportation is still a little confused about the concept, but more and more they’re embracing
People can fish, duck hunt, water ski, or even parasail behind the WaterCar
the WaterCar,” March said. “Arizona, California, and Nevada have been a little tough in getting on board, but we’re confident that they will eventually embrace the idea. We’re getting them approved, but, in some cases, we have to jump through hoops to get it done.” During its development years, March was continuously approached by people around the world who wanted to purchase a WaterCar, but he wasn’t ready to put them on the market for a wide range of reasons. “While we were flattered that people wanted the WaterCar, we just felt it wasn’t ready,” March said. “It was difficult to say no for all those years, but we figured hey—let’s not rush it. In 2013, we realized that the WaterCar was ready for the public, and pretty much right away the orders started coming in.” March received a ton of publicity when he drove his WaterCar all the way from his shop in Fountain Valley to Catalina Island in January 2014. The story, “Amphibious water car dives into land and sea market,” made page one of the Chicago Tribune and created a buzz worldwide. “We made the 30-mile trip at around 40 miles per hour, and we used about 10 gallons of fuel one-way. Typically, a boat will get around four miles per gallon, so the WaterCar isn’t just fast, it’s also green and very economical. When we pulled into that harbor, the people were shocked and
14 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
kits and believes that body shops would be ideal to assemble them. Since he has
surprised when we drove up!” Celebrities and billionaires are showing interest in the WaterCar, but anyone with $140,000 lying around can buy one, March said. “Wealthy folks are always looking for the newest toy, and the WaterCar definitely fits the bill. These famous people make us sign non-disclosure agreements, so I can’t tell you any names. But I can tell you that one individual who is awaiting delivery of his WaterCar is the founder of a very wellknown tech company.” (And his last name isn’t Zuckerberg, Ellision, or Wozniak!) “The attention this vehicle has received is pretty amazing, to say the least.” The hottest markets for the WaterCar are currently in Florida and Dubai, March said. “Millionaires with 200-foot yachts want to have a WaterCar so they can taxi around and then hit the streets. With all of those little islands, the WaterCar is perfect for Dubai, as well as in the Florida Keys.” March is now selling WaterCar
Celebrities all over the world want a WaterCar, but March can’t divulge their names for legal reasons
a backlog of orders and can’t make them fast enough, this might be the best time to jump into a sideline business by putting together WaterCar kits. “The kits cost around $75,000, so there’s plenty of room there for profit,” March explained. “We’d like to get body shops from different regions of the country involved, especially those See Swimming in Business, Page 24
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WIN Announces 2014 Conference Brochure, Most Influential Women and Scholarship Winners, Corporate Sponsors, and New Board of Directors Members The Women’s Industry Network (WIN) has several announcements leading up to the 2014 WIN Education Conference at Paradise Point Resort and Spa in San Diego, CA, May 5–7, 2014.
Electronic Conference Brochure To help reduce their carbon footprint, WIN created an electronic version of the conference brochure, which you can download at http://thewomensindustrynetwork.ning.com/page/2014conference.
Most Influential Women Winners On March 24, 2014, WIN announced the 2014 Most Influential Women (MIW) Award recipients: ■ Frederica Carter, President of F. Carter Events, LLC (former Communications Manager at AkzoNobel) ■ Jordan Hendler, Executive Director, Washington Metropolitan Autobody Association ■ Leanne Jefferies, Director, Collision Programs, AIA Canada The award is given annually to women
in the collision repair industry who exemplify qualities of business and civic leadership, vision, and commitment to excellence. “I was impressed with the energy, accomplishment, and commitment of all the nominees who spanned a broad range of responsiFrederica Carter bilities,” said Russell Long of Change Innovations, the leadership development and executive coaching firm engaged to evaluate the nominees. Established in 1999 by AkzoNobel, WIN acquired stewardship of the MIW program in 2013.The inaugural MIW Gala Dinner and Award Ceremony will be held in conjunction with the 2014 WIN Educational Conference. “It was our privilege to bring this program innovation to the industry and nurture it for 14 years,” said Doug Holmberg, director of vehicle refinishes for AkzoNobel Automotive & Aerospace Coatings North America,
who will speaking at the 2014 MIW Gala Dinner and Award Ceremony. “As we approach the final stages of planning for the first MIW Award Ceremony under WIN’s care, we are excited to carry on this important tradition begun by AkzoNobel,” said Margaret Knell, chair of the MIW Committee and director of corporate administration at I-CAR.
Scholarship Winners On March 27, 2014, WIN announced the 2014 WIN scholarship winners: ■ College Student Tuition and Conference Scholarship: Stephanie Baker, who will attend WyoTech in Blairsville, PA, and Suzanna Hernandez, who will attend Southeast Community College in Lincoln, NE. They will each receive $1,000 to continue their postJordan Hendler secondary education in collision repair, a one-year WIN membership, registration fee and travel
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Parts: 800.451.4760 | Fax: 801.257.3784 | Parts Manager: Dave Dawson | Email: daved@kengarff.com
MERCEDES-BENZ - SALT LAKE CITY
Parts: 800.451.4757 | Fax: 801.257.3064 | Parts Manager: Mark Curtis | Email: markc@kengarff.com
MITSUBISHI - SALT LAKE CITY
Parts: 800.451.4760 | Fax: 801.533.9810 | Parts Manager: Brent Christensen | Email: brentc@kengarff.com
NISSAN - SALT LAKE CITY
Parts: 800.888.1926 | Fax: 801.322.4907 | Parts Manager: Tim Astle | Email: tima@kengarff.com
NISSAN - OGDEN
Parts: 801.781.4540 | Fax: 800.390.1317 | Parts Manager: Karl Lutz | Email: karlL@kengarff.com
PORSCHE - OREM
Parts: 800.324.6725 | Fax: 801.221.9957 | Parts Manager: Greg Dimond | Email: Gregd@kengarff.com
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Parts: 800.451.4760 | Fax: 801.257.3564 | Parts Manager: Dave Dawson | Email: daved@kengarff.com www.autobodynews.com | MAY 2014 AUTOBODY NEWS 17
National Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Automotive Recyclers Association CEO Urges OEMs to Supply Crucial Parts Data at International Automobile Recycling Congress The 14th International Automobile Recycling Congress (IARC) was held at the Hotel Dolce la Hulpe in Brussels, Belgium, March 19–21, 2014. On March 20, Michael Wilson, CEO of the Automotive Recyclers Association (ARA), used the forum to discuss the necessity of OEMs providing professional automotive recyclers with access to important OEM parts data. During his presentation, Wilson called on manufacturers, “To become better economic, environmental, and safety partners by releasing OEM build sheet data to the professional automotive industry’s inventory management entities, just as they do for insurance companies and the collision repair industry…Auto manufacturers have placed major restrictions on the dissemination of this data so that it cannot be integrated into professional automotive recyclers’ inventory management systems, [and] without this important data about the parts that OEMs originally manufactured, professional automotive recyclers are not able to seamlessly integrate their OEM parts inventory into estimating and collision repair platforms, and consumers will have fewer choices when making important decisions about the repair of their vehicles.” Wilson began his presentation by focusing on the professional automotive recycling industry in the U.S., noting that 2010 saw $285.7 billion in automotive aftermarket sales, which consisted of replacement parts, accessories, lubricants, appearance products, service repairs, and the tools and equipment necessary for these repairs. In the first quarter of 2013, the average age of U.S. vehicles was 11.4 years with over 70 percent of light-duty vehicles being aged seven years or more, an increase from 63.6 percent in the second quarter of 2008. Emphasizing the importance of access to OEM build sheet and part information, Wilson explained, “Data drives almost every aspect of a professional automotive recycling business [and] provides the backbone to a sustainable business model for these important stewards of the environment.”
Moving on to the topic of data and inventory quality, Wilson stressed the value of automotive recyclers ensuring that their inventories use ARA damage codes and parts grading standards as well as ARA work to establish unified descriptions of recycled parts amongst all parties that sell, buy, and install these parts. Wilson also highlighted the need for greater integration of automotive recall information from vehicle manufacturers into inventory management systems. “The industry must be provided with safety information that can be automatically synchronized with recycled parts inventory so that important recall and service bulletin information is seamlessly integrated into the inventory management systems used by the automotive recycling industry.” In discussing the International Dismantling Information System (IDIS) that was developed to meet the legal obligations of the European Union’s End of Life Vehicle (ELV) Directive, Wilson recognized the importance of the system, but noted limitations as it only addresses what the auto manufacturers view as their legal obligations under the ELV Directive. “It really only covers the safe de-pollution and where to find hazardous materials with no reference to parts data.” Wilson also believes that the recent Memorandum of Understanding signed in the U.S. between automakers and other stakeholders involved in the Motor Vehicle Owners’ Right to Repair issue, while a significant development, does not go far enough ensuring access to this invaluable vehicle data. Wilson addressed the negative OEM campaign on the integrity of recycled parts before exploring areas of potential collaboration, including the potential savings for manufacturers on batches of secondary replacement parts as the use of genuine, recycled OEM parts increases, and greater communication on automotive recalls. In conclusion, Wilson challenged attendees to join efforts to obtain OEM
18 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
parts data by encouraging the OEMs to partner with professional automotive recyclers who promote reusing the parts originally brought to the market by OEMs. The 14th IARC also included sessions on the best-available recycling technologies, the European ELV Directive, E-mobility, the recycling capabilities of newly emerging technology, new financial instruments to boost take-back and recycling, and Green Circular Economy and Resource Efficiency. Keynote speakers included Peter Kronschnabl, president and CEO of BMW Group Belux, Belgium; Professor Duan Weng of Tsinghua University Institute for Energy and Environmental Materials; and Artemis Hatzi-Hull, Green Economy –Waste Management and Recycling Policy Officer of the European Com-
mission DG Environment in Belgium. Other events on the program included an exhibition and “Tool Box Talks,” commercial presentations focused on the recycling industry. Attendees also enjoyed a number of interesting tours to leading recycling companies and car manufacturers’ plants, including Toyota Motor Manufacturing in France, Groupe Comet’s ferrous metal recycling plant in Belgium, and ARN’s shredder residue process plant in the Netherlands. Currently, ARA continues to prepare for the 71st Annual ARA Convention and Expo (www.araexpo.org/ 2014), which will be held at the Gaylord Opryland Resort and Convention Center in Nashville, TN, October 22– 25, 2014. For more information about ARA, visit www.a-r-a.org.
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On Creative Marketing
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Gender Marketing Power is a Trend Already in Evidence with Thomas Franklin
Gender marketing; it sounds like it would be prejudicial and maybe even illegal. But in many collision repair shops the marketing is already heavily gender-oriented. A shop that focuses on race cars, muscle cars, classic cars and sponsoring events around these interests are already marketing to a mostly male audience. Add to that emphasis, all-male estimators, and you have a shop that has a definite male gender focus. Considering that as many as half of the collision repairs coming into the shop are brought in by female customers, adding a female focus to marketing would hardly be prejudicial. One huge, affluent segment wields more spending clout than any other: Baby-Boomer women born between 1946 and 1964, represent a portion of the buying public no marketer can afford to ignore. With successful careers, investments made during the “boom” years, and inheritances from parents or husbands, reports indicate they are more financially empowered than any previous generation of women. MassMutual Financial Group reports that senior women age 50 and older control a net worth of $19 trillion and own more than three-fourths of the nation’s financial wealth. 2.5 million of them have combined assets of $4.2 trillion. More than 1.3 million women professionals and executives earn in excess of $100,000 annually. 43% of Americans with more than $500,000 in assets are female. Can a shop afford not to market to these ladies? For shops that focus on luxury automobiles, a marketing emphasis on mature women can pay off. Pam
Danziger, president of Unity Marketing, says the mature luxury consumer places the highest priority in making memories and experiences. They don’t buy things to have more things; they want the experience to go along with it. Luxury consumers expect superior quality and are extremely discerning. The 55 to 75 year-old female has seen her role change from homemaker to purchaser of security, convenience and luxury items. Once the college bills are out of the way and children launch their own households, the discretionary spending power of 50-plus women soars. They spend 2.5 times what the average person spends. Women are the primary buyers for computers, cars, banking, financial services and a lot of other big-ticket categories. The shop that emphasizes security and convenience as part of the repair will be more likely to capture the attention of this customer segment. Shops that focus heavily on Internet marketing should be aware that affluent working women with family incomes of $75,000 or more are growing in number, and 94.3 percent access the Internet during an average month. “Ten Marketing Trends to Watch,” an article by Kim T. Gordon on Entrepreneur.com, stated that about half of these women are now considered heavy users of the Internet, while heavy use of radio, television, newspapers and direct mail has declined within this group. A female focus on Internet and social media sites could well pay off. Although it is generally assumed that a focus on sports is a male-oriented activity, 47.2% of major league
During National Volunteer Week in April 2014, CNN recognized a “littleknown industry group” whose members have donated over 200 vehicles worth over $3 million in 2013 to military veterans, homeless families, single parents, and others struggling to get back on the road to a stable life. The network went on to acknowledge the kind of work NABC’ Recycled Rides has accomplished.
Mercedes-Benz has approved the Elektron® MULTISPOT® MI-100control T resistance spot welder with C-pliers (model MTC-6000) for use in performing approved spot welding on high-strength steels like Boron, USIBOR, TRIP, TWIP and XIP. All approved workshop equipment is listed in Mercedes-Benz’s updated GSP Online Technics Information System (GOTIS).
CNN Recognizes NABC for Donating 200+ Vehicles
MB Approves Elektron Spot Welders for HSS
20 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
soccer fans are women as are 46.5% of MLB fans, 43.2% of NFL fans, 37% of NBA fans, and 40.8% of fans at NHL games. Women also purchase 46% of official NFL merchandise. Women are also involved in motorsports. Surprisingly in a motorsports survey, 74% of male respondents and 62% of female respondents agreed that “women racers bring fans out to the games.” Additionally, 40% of female respondents and 21% of male respondents stated that they would be “more” or “much more” likely to follow motorsport races if more females were involved. Shops that sponsor or tie marketing into motorsports should add a female focus. Women also rely more on wordof-mouth and sharing of experiences with friends than men do. A couple of shops I’m familiar with have brought in a woman to help with marketing. These new female marketers promptly joined some women’s networking
groups and sought out opportunities to speak to women’s groups on accident avoidance and long-lasting quality repairs. Another shop added a female estimator and found her closing rate to be one of the best. She kept photos of her children and pets on her desk and had small toys for kids that accompanied a parent whose car she was estimating. When calling women customers about customer satisfaction, the big question shouldn’t be “were you satisfied with your repair,” but rather would she come back for cosmetic work or a self-pay repair if her insurance company had originally referred her? Few women would be willing to risk a loss of face with friends if she just recommended a shop that provided an average or mediocre repair. To get a referral from one of today’s more discriminating females, a shop has to provide an exceptional service experience!
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Continued from Cover
Ford’s Plan
more than three decades; Ford sold more than 700,000 F-150 pick-ups last year alone. “The goal is to have enough capacity to be able to handle the F-150,” Massie said. “We know that roughly 80 percent of our customers are going to independent body shops. Less than 50 percent of our dealerships even have a body shops. Of those that have body shops, probably about 800 are really in really in the collision business. We realize we cannot have a mainstream repair process (for the F150) if we were to direct all our customers only to our dealers.” Massie reiterated that Ford will not be limiting sale of replacement parts for the new F-150 only to network shops. “You can’t mainstream something if you’re restricting the parts sales,” he said.
Network requirements But to qualify for the network and listing on Ford’s shop locator, Massie said, an independent shop must be nominated by a Ford dealer. Ford deal-
ers without a body shop will likely nominate the shop(s) to which it refers collision repair work, Massie said, and other shops may be nominated by the dealer from which they buy wholesale parts. Although the automaker is placing few limits on the number of shops a dealer may nominate nor the distance from a dealer an independent shop must be to participate, Massie acknowledged getting the right number of shops in the right locations is the “tricky” or “touchy piece of the whole idea of recognizing independents.” “It’s really difficult for us to bring in independent body shops but say we don’t want you within 5 or 10 or 50 miles of a dealership,” Massie said. “This is more about being consumercentric.” Massie said as the program grows over time, there may be issues the automaker needs to address in some markets if, for example, a dealer is resisting bringing enough independent shops into the program. But Massie said those who sell the vehicle know it’s not in their best interest to tell a customer they will have to wait long or go far to get it fixed. “To the top of the house at Ford Motor Company, they recognize that
22 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
we need to have independents involved,” Massie said. The initial requirements to join are focused on more general repair, Massie said, but to remain in the program in 2015, a shop must be “aluminum capable,” including having an area separated off (by curtains or walls) for aluminum work. A specific self-piercing rivet gun is currently required (though Ford representatives said a second brand may soon be approved) but otherwise the required equipment list allows for multiple brands or models as long as they meet the required specifications. The list includes an aluminum MIG welding system, a set of hand and power tools dedicated to aluminum work, and aluminum dent and dust extraction systems. One online Ford training course and two specific I-CAR training courses and welding certification are required. Shops are only required to have one technician trained, Massie said, but the goal is to train anyone repairing the F-150. In addition to about 800 Ford dealership shops, the automaker wants to add about 750 independent shops this year and each of the next two years for a total of about 3,000 shops
in the program by the end of 2016. The program is being administered by Assured Performance, which said the $2,950 annual fee can enable qualifying shops to participate in Chrysler and Nissan’s shop certification programs as well. There is an annual audit process to ensure a shop in the program still qualifies. Massie said independent shops with a Ford dealer sponsor can get more information about the program by calling (949) 221-0010 or visiting www.fordcertifiedshop.com. Is Ford planning for more use of aluminum in its vehicles that will help improve the return on investment for a shop becoming aluminum-capable? “Ford doesn’t speak about future vehicle programs, but you can see where the fuel economy has to be by 2025, so I think it’s fair to assume there will be more in the future,” Massie said. Repairability addressed Ford representatives at CIC continued the automaker’s efforts to ensure dealers, collision repairers and insurers that F-150 design engineers kept repairability in mind when developing the vehicle. See Ford’s Plan, Page 24
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 23
terns, the glue, all the steps you need to do in order to service that part.” Several repairers at CIC expressed concern that Ford is not limiting structural pulls on the vehicle as some European automakers do on aluminumintensive vehicles. “Is there a fear that if we make a pull on that body structure it will break the bonding Larry Coan agent on the other side of the car,” Dusty Womble of Roger Beasley Collision Center in Austin, Texas, asked. Kye Yeung of European Motor Car Works in Santa Ana, Calif., expressed similar concerns, noting that insurers may presume shops can make structural pulls on other aluminum vehicles. “Is it because your aluminum vehicle is mounted on a steel frame,” Yeung asked. “It is a big benefit to have this steel frame underneath the truck,” Tom Green, Ford body and chassis commodity manager, responded. “We’re finding with pulling that we’ll actually tear or rip out the rivets before the bonding comes loose. So (pulling is al-
Continued from Page 22
Ford’s Plan
Larry Coan, Ford’s damageability product concern engineer, said the new F-150’s high-strength steel frame will be sectionable. “You’ll have the very front stub, the front third, and the rear third available sections for service,” Coan said. “But we will also offer separately serviceable front lower control arm mounting brackets. So if those are damaged, they can be replaced separately from the frame.” The inner and outer rocker panels are sectionable (although the outer rocker on the crewcab model cannot be sectioned). The mounting tab for the B-pillar stops short of the roof, eliminating the need to remove or cut access in the roof. Two repair methods —welding, or a rivet-bond procedure—are acceptable for floorpan sectioning, Coan said. And every sheet metal replacement part for the vehicle will include an instruction sheet. “It will detail all the procedures to R&R that part, or where to section that part, for parts that are sectionable,” Coan said. “It will detail the rivet pat-
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lowed) most likely because we have more mechanical fasteners. But I really can’t speak for the other OEMs. All we know is we’re able to pull it. We’ve tested it out and we know it’s not compromised.” Massie agreed that shops nor insurers should not presume that one automaker’s guidelines apply to another automaker’s vehicles. “We all do things a little bit differently,” Massie said. “Follow the procedures you are given and you should be okay.” Ford will have a cut-away of the new F-150 and more information available for collision repairers at both NACE in July in Detroit, and at SEMA in Las Vegas in November. John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive inKye Yeung dustry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at: jyoswick@SpiritOne.com.
Continued from Page 14
Swimming in Business
that are close to lakes or the ocean, for example,” March said. “They already have all of the equipment needed to assemble the kits and paint them, etc. If you can assemble a Volkswagen, you can do this. You have to install the motor and transmission, do the upholstery, and paint it. A body shop can do the job in three to four weeks, and if they really want to fast track it, they can do it in a week. It might be a good additional source of revenue for them, and they will definitely get some attention for these WaterCars.” We asked March what the future looks like for the WaterCar and he said, “I think it’s definitely bright. Once people start seeing them more and more, they’ll want them. The next big thing we’d love to do with the WaterCar is take a trip down the English Channel by Big Ben and then all the way to the Eiffel Tower. I’m pretty sure that would get some attention from the people at the Guinness Book of Records!” To learn more about the WaterCar, visit http://watercar.fountainvalleybodyworks.com.
PartsTrader Completes National Rollout, Now Available in All States PartsTrader has announced the completion of the national deployment of its parts procurement platform which began in August 2013, according to a press release dated April 23. As of April 17, 2014 collision repairers and parts suppliers are active on the system in all 48 continental states and the District of Columbia. Throughout the initial pilot and subsequent rollout stage of the program, full adoption and use of the system has continued to grow each month. There are currently over 7,500 repairers and 8,500 suppliers active on the PartsTrader system. Of the active suppliers, over 75 percent are OEM dealers. “A dedicated field presence in each new market by knowledgeable PartsTrader staff has been a big help in assisting our customers adapt to a new parts purchasing process,” said Dale Sailer, PartsTrader’s Vice President of Business Development. “Our field staff has focused most of their effort on training users and listening bringing suggestions for new functionality and integration back to the product team that have increased our
value to users with each new release.” Since launching its initial pilot product 25 months ago, PartsTrader has processed over 750,000 quote requests, with an average response time from suppliers of less than 15 minutes. These quote requests have generated over 1,000,000 confirmed parts orders. PartsTrader says it has remained committed to its primary objective: to provide a platform that positions repairers at the center of the parts procurement process. Repairers choose which OEM dealers they invite to quote. Repairers choose who to order from after considering quality, service, delivery time, part types, the reputation of the suppliers, and price. Repairers choose when to order (the need may be so urgent that there is not enough time to seek competitive quotes.) All suppliers are given the same equal opportunity to compete for a repairer’s business Insurers do not have access to a repairer’s buy prices, other than for recycled parts, as they do today. “Our core application is now very different from when we started over
two years ago,” said Rob Cooper, PartsTrader CEO. “We are committed to giving repairers and suppliers a product of choice by continuing to adapt it to their changing needs. Earlier this year we introduced the industry’s first system for tracking two-way repairer and supplier performance feedback. For example, repairers now have the ability to rate suppliers based on service and quality of the parts delivered. This ensures that each party can make a fully informed business decision before placing or responding to an order. Most recently, we’ve enhanced vehicle mapping capabilities and improved integration with the estimating systems, and have many more exciting features on the near term horizon.” Driven by customer feedback and the increasing industry adoption rate, PartsTrader is available to all repairers and suppliers across the country, regardless of any Direct Repair Program (DRP) affiliation. Everyone can now benefit from robust and customizable parts procurement system. Repairers interested in utilizing PartsTrader for efficient procurement can
register their interest on the PartsTrader website and be up-and-running in the same business day, if desired. Suppliers who are interested in reaching parts buyers through the PartsTrader marketplace must be nominated by a participating collision repairer within the application. Once nominated, these suppliers can be up and running on a same day basis as well. “We’re excited about transitioning into the next phase of service for our current and future customers,” said Sailer. “One of the things we’ve been pleased to see is the growing number of repairers who have achieved process improvements and are now using our system for all their parts procurement needs, not just those related to a specific insurance company.” To learn more about PartsTrader, or to register for an informational webinar, visit www.partstrader.us.com.
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I-CAR News: New Board of Directors, Collision Repair Training for 2015 Ford F-150, Industry Support, Limited-Time Promo, and Revamped Steering/Suspension Course The Inter-Industry Conference on Auto Collision Repair (I-CAR) announced several milestone accomplishments made possible through its ongoing commitment to supporting the collision repair industry.
New Board of Directors The 2014 I-CAR International Board of Directors and Executive Committee was announced following the I-CAR strategic planning session and annual membership meeting in San Diego, CA, in March 2014. The Board of Directors is comprised of representatives from each of the following six industry segments: collision repair; insurance; OEM vehicle manufacturers; equipment, tools, and supplies; education, training, and research; and related industry services. The I-CAR executive committee includes: Bob Keith of CARSTAR as chair; Joe Laurentin, Esurance, vice chair; Chris Evan, State Farm Insurance Co., treasurer; Mark Woirol, Tech-Cor, secretary; James Roach, member-atlarge; Eugene Scambray, Copart, member-at-large; and William Brower,
Liberty Mutual Insurance Company, immediate past chair. The remaining Directors include: Mark Algie of 3M; William DeGrocco, GEICO Insurance; David Henderson, AudaExplore; Todd Chizmar, Chrysler; John Donley, IAnet; Robert Hills, Universal Technical Institute (UTI); Christopher Northup, Professional Parts Group, Education Foundation Representative; Richard Perry, Chief Automotive Technologies for Equipment & Tool Institute; Roy Schnepper, Butler’s Collision Inc. for Automotive Service Association; James Spears, USAA; Randy Stabler, Pride Collision Centers Inc.; Dale Tripp, General Motors Company; Ron Vincenzi, Oakland Auto Body; and Dusty Womble, Roger Beasley Collision Centers for Society of Collision Repair Specialists. Bob Keith stated, “I am truly honored to have been elected chairman of the Board of I-CAR. The time that I have spent on the Executive Committee has shown me that I-CAR leadership and staff are all committed to providing the highest quality training, certifications and resources to all seg-
26 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
ments of the collision inter-industry. The 2014 Board of Directors is a tremendous group of professionals who will supply strategic guidance to staff and keep them connected to the ‘heartbeat’ of all industry segments.”
Collision Repair Training Program for 2015 Ford F-150 In a groundbreaking collaboration, ICAR collision repair training experts worked alongside Ford Motor Company engineers during the 2015 Ford F150 design and development process. Two years of development culminates in a new six-credit hour 2015 Ford F-150 Structural Repair course (FOR06) that covers all aluminum topics and dives deep into vehicle-specific repair information. The instructor-led course uses discussion, education, and decision-making exercises to help technicians repair the 2015 Ford F150. Industry training for FOR06 opens June 1, 2014. “This is a game-changer in the way the collision repair industry approaches training; to be fully-prepared with the knowledge, skills, and solu-
tions needed before the vehicle debuts,” said John Van Alstyne, CEO and president of I-CAR. “Traditionally, repair solutions are not developed until after a vehicle is publicly launched, leaving a gap in repair readiness. ICAR commends Ford for its proactive approach, working together with ICAR to develop a repair solution that addresses complete, safe, and quality repairs for the new F-150, and doing so before the vehicle enters production.” Added Jason Bartanen, I-CAR director of industry and technical relations, “For a revolutionary vehicle like the 2015 Ford F-150, material-specific training that highlights the unique processes associated with aluminum repair is critical for the front-line professionals faced with safely repairing these vehicles. I-CAR’s proven track record of aluminum repair technical expertise and training development solidified Ford’s interest in an early partnership to formulate a vehicle-specific training program for the F-150.” Supporting and Giving Back to the Industry
In 2013, I-CAR committed to set aside $1 for every I-CAR class attended by students in 2014, which enabled ICAR to donate $170,000 to the Collision Repair Education Foundation. In March 2014, I-CAR taught its ten millionth student credit hour over its 35-year legacy. John Van Alstyne, I-CAR CEO and president, explained, “Our ten millionth credit hour represents the hard work and dedication that collision repair professionals put into their work every day. Through ongoing, role-relevant training, our vision is that every person in the collision repair industry has the knowledge, education, and solutions required to perform complete and safe repairs—for the ultimate benefit of the consumer.” Van Alstyne said, “The evolution and impact of I-CAR over the last 35 years is exciting and impressive,” he continued, “And as vehicle technology continues to evolve, you can count on I-CAR to do the same, expanding our relevance and the value we deliver to the collision repair industry.”
Revamped Steering and Suspension Course On April 7, 2014, I-CAR announced
that the popular Steering and Suspension Damage Analysis (DAM06) course has been completely revamped. DAM06 now includes up-todate information on damage analysis procedures for the range of steering and suspension systems and parts featured in vehicles being repaired today and a series of interactive classroom activities designed to engage students and enrich their learning experience. Josh McFarlin, I-CAR director of curriculum and product development, explained, “This course provides an understanding of steering and suspension repair considerations that can help eliminate the chance of compromising the vehicle’s integrity during the repair and reduce comebacks,” he continued, “Content included in this course is beneficial to repairers, business owners, and ultimately consumers.” DAM06 includes a detailed overview of steering and suspension systems and parts; an analysis of issues such as caster, camber, and toe; ride height difference and additional inspection methods; and how to use alignment angle readings. Students will participle in multiple activities throughout the course, including an interactive activity where they will de-
termine alignment angles. This instructor-led, live, threecredit hour course meets training requirements for estimators and auto physical damage appraisers in the ICAR Professional Development Program (PDP).
Limited-Time Promotion on I-CAR Intro to Collision Repair Series Training Bundles On April 16, 2014, I-CAR announced two all-new, limited-time training bundle promotions from the Intro to Collision Repair Series. The exclusive training bundles are specifically tailored to employee career paths in the insurance and collision repair segments,p including entry-level claims adjusters, call center staff, front office support, and career and technical school students. “Providing staff with foundational knowledge on the repair process can have a positive impact on everyone involved—from the customer, to the repairer or insurer, to the business,” stated Elise Quadrozzi, I-CAR director of Segment Development – Insurance. The Intro to Collision Repair Series includes an overview of vehicle
parts and terminology, reading damage reports, and repair and refinishing processes. Quadrozzi explained, “When your entire staff is trained, they can work together more productively, which can directly impact KPIs and CSI scores.” Both training bundles are comprised of eight of the most commonlytaken courses by the insurance and collision repair segments, including one of I-CAR’s most popular courses at no cost. Training bundles are $273 each for a limited time. Each online course takes approximately one hour to complete, is available on-demand, and has no expiration date once the bundle has been purchased. Visit www.i-car.com to learn more.
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Ken Garff Audi Manager: Greg Dimond gregd@kengarff.com Parts Direct: 800.324.6725 Fax: 801.221.9957 165 E. University Pkwy., Orem, UT 84058
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 29
Southwest Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Arkansas Collision Repair Association Seeks New Members for the Future of the Industry, Education on Technology a Focus with Chasidy Rae Sisk
On April 8, 2014, the Arkansas Collision Repair Association (ACRA) held their monthly meeting in the Pulaski Technical College Body Shop Department in Little Rock, AR. Members gathered to discuss current issues and network with their peers. Jay Scott, ACRA executive director, and Larry Golden, former ACRA president and current ACRA member, took some time to talk about ACRA.
ACRA began in 1986, “... When a group of independent shop owners were looking for a better way to get information on the latest technological changes and the equipment necessary to repair the unibody cars coming out,” Golden recalls. “They also wanted to work together to improve the image of the collision repair industry and to bring more professionalism to their image.” Since its inception, ACRA has progressed quite well. “We have experienced times of tremendous growth and other times where interest has faded, but we have always remained focused on education for our shop owners and vendors,” Golden elaborates. The ACRA mission is, “To provide education for shop ACRA members being instructed on aspects of aluminum owners and managers to help welding
them run more efficient and profitable businesses.” ACRA puts a lot of emphasis and concentration on the importance of continuing education within the industry, so they ensure that each meeting includes an educational segment presented by local vendors or faculty at the college. Their June 2014 meeting will feature an I-CAR class as part of their efforts to provide valuable education to ACRA members. ACRA services the entire state of Arkansas, but Scott notes that it’s challenging to attract shop owners and managers from all over the state because Arkansas is geographically diverse. To partially alleviate this dilemma, ACRA attempts to hold at least one meeting each year in a different part of the state. Currently, ACRA consists of approximately 31 members who attend monthly meetings to gain insight on
how to improve their businesses in an ever-changing market. In addition to their continual goal of providing education, ACRA also strives to grow the organization with engaged and enthusiastic members. Like most collision repair industry associations, ACRA contends with the struggle of attracting new members to rejuvenate and strengthen their organization. Golden explains, “Revenue is a challenge. We receive annual dues [from members] and donations from vendors, but we need to grow our base. We have transitioned from mailing our monthly newsletter to emailing our bulletins to manage our costs better.” ACRA holds member meetings on the second Tuesday of every month (except December) in the Body Shop Department at Pulaski Technical College. Scott and Golden are grateful for their great relationship with the col-
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lege, and ACRA reciprocates by offering support to students at the facility, who are invited to attend their educational meetings. This system also allows the shop owners and managers in ACRA to get acquainted with the students who will become future employees. Additionally, ACRA collaborated with North Point Nissan, who donated approximately $20,000 in damaged new parts over the past few years, allowing Pulaski Tech students an opportunity to get more hands-on experience. In turn, this also benefits ACRA members as it ensures that these future technicians acquire the necessary skills and experience to become effective employees. Because of their dedication to future technicians, ACRA tries to support their local SkillsUSA competitions. Scott takes pride that one of their students from Pulaski Tech placed seventh in refinishing at the SkillsUSA Nationals several years ago. In recent years, members of ACRA have participated in Recycled Rides, a charitable program that works to refurbish vehicles that are donated to families in need. Jody Gatchell, who heads their community-focused
committee, also contributed his serv- lenge to contend with, and because it ices to paint a fire truck pink for the was recently implemented in Arkansas, city of Conway, AR, to help generate ACRA is exploring various options for breast cancer awareness. dealing with PartsTrader. When questioned about the biggest To Golden, “PartsTrader is anchallenges impacting the industry today, other change in our industry. Moving Golden noted, “Changes in technology forward, there will be more vendors in and the advanced electronics on vehicles will continue to present shops with challenges. Staying involved with associations like ACRA will help shops see what equipment and training is necessary to correctly fix the cars of today. Historically, advancements in technology—from unibody cars to air bags to high-strength ACRA members and guests touring the newly-opened Harry Robinson Body Shop in Fort Smith, AR steels to drive-by-wire suspension—have always been the core chalthe future that work to develop softlenges for shops that want to provide ware to compete with PartsTrader and high-quality, safe repairs to their custo look at new ways to control parts. tomers.” In the past, we have seen manufacturScott believes that recent changes ers try to get into the recycled business in some insurers’ DRP requirements and many other attempts at change to the parts side of the business. Some also pose a challenge for collision repair facilities. In particular, he began have helped the industry, and some have fallen by the wayside. The parts monitoring PartsTrader about five years business is evolving as it always has, ago when it became effective in New Zealand and continues to keep an eye and each business will have to decide on the issues it presents. The program for itself what fits in with its business model and what does not.” has proven itself to be yet another chal-
Although rarely involved with legislation directly, ACRA closely monitors the bills introduced at the Arkansas General Assembly every other year. Scott clarifies, “Few of these bills impact our industry, though some affect dealerships. Our attorney explores these laws and their effects on our members when necessary, and those meetings are usually pretty well-attended. We also look at some national legislation to make sure our members are kept informed. For example, when 6H was instituted, we convinced the Arkansas Department of Environmental Quality to hold classes to educate our members on the new requirements.” ACRA has not taken an official stance on the Parts Act, but Golden notes, “In most conversations where parts are discussed, we talk about the need for high-uality parts that perform the way the vehicle was designed to perform. Today’s cars are very complex, and the systems within the car are designed to work together to ensure safety. Parts used in the repair process must ensure those systems continue to work together as designed.” For more information about ACRA, visit www.arkansascollisionrepair.com.
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 31
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
What Ever Happened to the Return Phone Call? with Ed Attanasio
I ran into someone at the 2013 SEMA Show who apologized profusely for not calling me back. “I was meaning to call you back,” he said. “I know you left a message.” “The one from 2012 or the one from 2013?” I inquired as nicely as I could. Why don’t people call each other back anymore? What is the psychology behind not returning phone calls? Do you have a group of friends or business associates in your life who will NEVER call you back, no matter what? The sad fact is that most of us do. Not returning phone calls has become an integral part of our society and a trademark of our times. And with all of the technology out there making it easier to connect (like smartphones, email, and text messaging), people have more ways than ever to not get back to you. So, the question is simple—is the telephone no longer the best way to connect with people and if so, what is the preferred method? In an attempt to analyze this phenomenon, I have spoken with a wide range of people about the subject, including body shop owners, insurance agents, parts managers, and general managers of large MSOs. Most people tell me that the anonymous nature of a phone call or phone message makes it very easy to disregard. Their attitude is that if the caller wants to contact me that badly, they’ll call back or text me or email me. Others believe that they’re already on the phone way too much as it is, so that’s why they only return those calls that seem pressing and/or important. “I spend an inordinate amount of time on the telephone, and I just don’t have the bandwidth to call everyone back,” one body shop’s marketing manager said. “Email is the best way to contact me, followed by texting— but phoning is a distant third.” “I get way too many sales calls,” a body shop owner claimed. “That makes me leery about returning any phone calls because I don’t want to sit through a sales pitch. I’m always doing five things at once, so if some-
thing needs to get cut, it’s probably going to be your phone call.” For others, it’s all about the quality (and brevity) of the phone call. “Some people are engaging and they know how to talk on the phone,” one insurance agent said. “Others get too chatty and for those people email is better. I don’t feel a need to respond immediately to an email, so it’s less stressful than a phone call.” While most people won’t rush to return a phone call, there are still a few “old school” types out there who will go out of their way to return a phone call, even if they’re busy or on the road. In my opinion, those people stand out because they’re the exception rather than the norm. I am often surprised by who returns calls because some of them are big names, yet they always make the time to reach out to me. In his book The Art of the Deal, originally published in 1987, Donald Trump discusses his theory surrounding the telephone and how it can be used as a tool. First off, Trump claims that he returns every phone call he receives because he realizes that each one represents an opportunity to make a deal. He talks to salesmen, office managers, and janitors because they can give him information he can possibly use to get any advantage in the future. In addition, Trump limits all of his phone calls to three minutes and actually uses an egg timer to do the job. That way he controls chatty callers and keeps everyone on point. I always ask salespeople about the subject of return phone calls because it’s their job to communicate with their customers, and most of them make multiple calls on a daily basis. When it comes to business, people have an entirely different theory about returning phone calls. If a salesman calls them, for instance, they will almost never call them back. “It’s their job to get a hold of me,” one collision center manager said when referring to salespeople. “If they’re selling something, they had better adapt to my schedule and figure out the best way to contact me. If I’m not interested in your products or services, I’m not going to call you
32 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
back because I don’t have time to call you and tell you no thanks. Not calling you back is my way of telling you exactly that. Some call it the ‘Hollywood Brush-off,’ but I call it reality.” In an article called “Don’t Call Me, I Won’t Call You” that Pamela Paul wrote for The New York Times in 2011, she announced the demise of not just the return phone call, but the phone itself. “I don’t think it’s just me,” Paul wrote. “Sure, teenagers gave up the phone call eons ago. In the last five years, full-fledged adults have seemingly given up the telephone—land line, mobile, voice mail, and all. According to Nielsen Media, even on cell phones, voice spending has been trending downward, with text spending expected to surpass it within three years.” Paul interviewed an interior designer who made some interesting points about phone calls and their diminishing role in today’s society. “I lit-
erally never use the phone,” Jonathan Adler told Paul. “I’ve learned not to press ‘ignore’ on my cell phone because then people know that you’re there. I remember when I was growing up the rule was, ‘Don’t call anyone after 10:00 P.M.,’” Adler said. “Now the rule is, ‘Don’t call anyone. Ever.’” I have come to the conclusion that you should not take it personally if someone does not return your phone calls. It doesn’t necessarily mean they don’t want to speak with you. And if you work on your phone skills and become more pleasurable to speak with, you’ll find that more of your friends will call you back. I wish that I could have done a more thorough study of this subject, but most of the people who I called to interview never got back to me. Everyone interviewed for this piece asked to remain anonymous because, sadly, they don’t want anyone calling them either.
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Northeast News
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Thousands Attend Record-Breaking Northeast™ 2014 Show with Chasidy Rae Sisk
--The 37th annual Northeast Automotive Services Show presented by the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) was held at the Meadowlands Exposition Center in Secaucus, NJ, March 21–23, 2014. Filled with useful and informative seminars, demonstrations on the showroom floor, and over 100 exhibitors from all segments of the industry, the 2014 show was well-attended and successful!
PartsTrader Panel Discussion The seminars kicked off with “PartsTrader Comes to the Northeast: NOW WHAT,” a panel discussion that included Barry Dorn of the Washington Metropolitan Auto Body Association (WMABA); Ed Kizenberger of the Long Island Auto Body Repairmen's Association (LIABRA); Tom Elder of Auto Body Distributing; Mitch Portnoi, Esq. of Post, Polak, Goodsell, MacNeill, and Strauchler,
PA (PPGMS); and Joshua S. Bauchner of Ansell, Grimm, and Aaron, PC. After AASP/NJ president Jeff McDowell welcomed attendees and Kizenberger read the “Anti-Trust
Barry Dorn of WMABA explains how PartsTrader has impacted his business
Statement,” Dorn began the discussion by noting that PartsTrader has been in effect in his market for approximately two months and has had a significant impact on shops and vendors, especially on the administrative
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aspect of their work. He explained that after writing the estimate, the shop submits a list of needed parts to their vendors and waits for the estimate, which should be received within an hour. The response may involve ordering four parts from four different vendors, and it’s causing quite a bit of confusion since shops cannot order all of the parts from their normal vendors. Because many local vendors signed up for PartsTrader, Dorn hasn’t experienced frequent delays or problems with returns. When an attendee asked if the shop must accept the least expensive bid—implying that the insurer only implemented the program to exert more control over the repair process—Dorn deflected the debate regarding the program’s merit by explaining that the shop chooses the aftermarket part based on quality and SLA time. Noting that he hasn’t heard of a single shop that thinks PartsTrader is a
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good thing, Kizenberger pointed out that the problem with any parts procurement system is its mandated use, indicating that State Farm should allow PartsTrader to stand on its own two feet, rather than requiring Select Service shops to use it and extorting parts vendors with the threat of losing business if they don’t sign up for the program. One attendee pointed out that though the mandate is currently specific only to Select Service shops, State Farm has only begun within their network because that’s where they can exert the most coercion and influence, and he believes the trend will expand to other carriers in the near future. Those attendees with shops where PartsTrader has been implemented disagreed with the State Farm claim that it improves efficiency, estimating that the administrative duties associated with the program take twice as much time as
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before. Shop owners also object to being unable to use the same vendors they’ve developed relationships with over many years.
The group proceeded to discuss ways to alleviate the mandated use of the PartsTrader program, such as injunctive relief and other legislative actions. Attendees expressed particular concern with the fact that the 1963 Consent Decree is not being enforced. The overall consensus was that the collision repair industry needs to show how the mandated use of PartsTrader impacts consumer safety to get the federal government inLIABRA’s Ed Kizenberger responds to questions about posvolved, and Bauchner noted sible litigation of PartsTrader that “we have to start a fire to Additionally, Elder mentioned get the government’s attention,” sugthat he has heard complaints from sev- gesting that the best method for doing eral non-DRP shops that have experi- so is to get consumer groups involved. enced delays from vendors that are too Because DRPs are voluntary, the busy dealing with PartsTrader to serv- main response to those objecting to ice their normal customers. Though no mandated parts procurement is to reshops have come forward claiming move themselves from the program. that PartsTrader is good for their busi- This led to a conversation about ness, the State Farm free trial period whether the lack of work resulting lures shops and vendors in, and this from leaving the DRP proves steering behavior of using the system becomes and how this is connected to anti-comstandard practice. A shop owner from petition laws. The group discussed the Mississippi proudly announced that he influx of MSOs and what that means withdrew from the State Farm DRP for independent shops as well, but, as because he owes it to his customers to the seminar concluded, the most use the best available parts. prevalent attitude among attendees
vehicle. The demonstration also served to highlight the new class-exclusive technology that has been used and the gains in fuel economy through the introduction of smaller displaceFord 2015 F-150 Collision Repair ment engines. Support Plan Demonstrations Ford representatives also disOver the course of the weekend, Ford held several demonstrations and meet- cussed the manufacturer’s support ings regarding their 2015 F-150 Colli- plan, which includes an enhanced sion Repair Support Plan. The demo workshop manual, instruction sheets, focused on the ease of repairability for training courses, and a list of the spethe new design, which is intended to cific tools and equipment necessary to be tougher, smarter, and more capable repair the new F-150. Aluminum is similar to steel and will require most of the same tools, but Ford recommends a second set of tools and equipment that can be dedicated to aluminum repairs to avoid steel contamination. The Ford representatives emphasized that repairing these vehicles will be different, but not more Douglas Sherman and Mitch Portnoi share some advice on difficult. They also lauded the buying and selling businesses variety of repairability opwith its military-grade aluminum tions that will save many vehicles body and high-strength steel frame. from being declared total losses. The aluminum body reduces the Throughout the designing truck’s weight by up to 700 pounds, process, Ford has been working with which, in conjunction with increasing several insurers to ensure they are the use of high-strength steel by 77 being trained on the proper repair techpercent, creates a lighter but stronger niques and that they have the correct seemed to be “the longer you stay on this program, the faster you’re going to kill your future.”
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cost information to keep repair costs down and standards high. In addition to developing instruction sheets, Ford ias developed an online training course and is also collaborating with I-CAR to offer training courses specific to repairing these aluminum F-150s. Ford plans to attend trade shows throughout the country—including the Collision Industry Conference (CIC) in April 2014, International Autobody Congress and Exposition (NACE) in July 2014, and the Specialty Equipment Market Association (SEMA) Show in November 2014—to disseminate this information throughout the industry.
Tactically Lean: Connecting the Dots Between High-Minded Concepts and Real-World Results Lee V. Rush, manager of business consulting services for Sherwin-Williams, presented “Tactically Lean: Connecting the Dots Between High-Minded Concepts and Real-World Results,” a seminar intended to alter the way the industry views the term ‘lean.’ Rush’s approach was developed with collision repairers for collision repairers, and one of the mysteries of the lean concept is that though many shops attempt to go lean, few succeed. While the in-
dustry has explored this idea for decades, not much has changed in the industry because there is frequently a disconnect between the architects of lean programs and the shop floor. Rush stressed that “lean is a way of thinking about how you operate!” Though Rush did not explore specific strategies in depth, he explained that lean is a set of concepts, principles, and tools used to create the most value for customers while consuming the fewest overall resources, and it is effective for any business that supplies a product or service. The lean strategy is all about changing the process to consistently deliver the right results. To make the lean concept work for them, shops must standardize their work and stabilize their process, but a shop can’t just flip a switch and go lean—they have to be strategic about implementing the process. “It’s a journey,” Rush explains. “By connecting the dots, we improve operational performance through the use of lean tools with the longer term goal of becoming a lean shop.” Because shop owners are already running successful businesses, there is a stigma about how the lean concept is viewed, so it’s imperative to change
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the way you think to reach the desired outcome of increased productivity and profitability. Rush insists there are two killers of the lean process: inaccurate repair orders and not having the correct parts.
John Niechowiadowicz talks about “Unleashing Your Secret Power” by tracking the 5 most important KPIs
The process begins with a 100 percent accurate repair order in the beginning stages of the repair as this will reduce the amount of supplements needed and the overall repair time. He believes this is best achieved by dedicating one specific employee and area to the damage analysis piece of the repair, and completing this process in its entirety upfront allows for shorter cycle times. Shops are already disassembling the vehicles, but doing it at
the beginning of the process, rather than over the course of several days, allows for an accurate repair order the first time around. The other process that shops should implement is checking all parts for correctness to ensure you’re ready for the repair, and Rush recommends mirror matching to ensure you have the right parts and to allow you to discover problems in advance. In closing, he encouraged attendees to standardize their processes by finding the one best way to perform a task and making that the standard upon which to improve.
Business Continuation Planning: Inside Buying or Selling a Business Mitchell Portnoi, Esq. and Douglas J. Sherman, Esq., from PPGMS presented “Business Continuation Planning: Inside Buying or Selling a Business.” Portnoi, a litigation attorney, gets involved when there are problems with a contract or agreement, but because litigation is such a huge expense for small businesses, business owners want to avoid potential litigation (“an ounce of prevention is worth a pound of cure”), and this is where Sherman, a specialist in transactions,
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 39
comes in. Even the best contracts can result in parties disagreeing on key terms, so using a transaction attorney is imperative, according to Portnoi. Sherman works with those buying and selling businesses, and he provided advice on the process. The most important step is to get your team together at the very beginning, including your attorney and your accountant as you need to know how much the business is worth. Begin by having an attorney draft a letter of intent to negotiate the key business terms of the deal (this letter is non-binding so either party can still walk away at this point if they are not satisfied). For family transfers, each individual should hire separate attorneys to avoid a conflict of interest and to ensure that both sides are adequately represented and protected. Portnoi and Sherman also discussed the benefits of buying the business under a company name to protect the owner’s personal assets and interests; establishing a company that owns the assets shields the business owner from liability so that if they are sued, their other assets cannot be lost. Sherman recommends a Limited Liability Company (LLC) to avoid double taxation, though a transfer tax does
apply. If the business and land are both being purchased, each should be placed in separate LLCs to provide the best protection from liability issues. After acquiring the letter of intent, the next step is to obtain a signed contract. There are two ways to sell a business: an asset purchase agreement or a stock transfer. Sherman recommends the former as it includes the acquisition of clients, permits/licenses, and equipment as well as the business name and brand because you’re buying the business in its entirety. Once the business is transferred, the asset purchase agreement provides a firm separation between the buyer and seller. In contrast, with a stock transfer, the buyer takes on the business as is, and though it sounds easier, it’s not the best idea from a liability standpoint because the buyer is now stepping into the seller’s shoes and assuming any issues that may arise. Regardless of the route you choose, Sherman stresses the importance of including indemnities and other provisions in the contract to ensure that the buyer continues to run the business in the same manner as prior to the sale, which will contribute to a smooth transition.
Unleashing Your Secret Power: Key Performance Indicators John Niechowiadowicz of QLC, Inc. and Jerry McNee of Ultimate Collision in Edison, NJ, presented “Unleashing Your Secret Power.” For shop owners interested in improving their businesses, the powerful information at their disposal that’s not being fully used is key performance indicators (KPIs), which allow shops to track their performance and compare it to industry benchmarks. Niechwiadowicz believes that tracking your KPIs is the first step to identifying the biggest areas of opportunity and creating action plans to improve your business. In addition to
improving your negotiating position, tracking KPIs is motivational for you and your employees! The best way to improve something is to measure it, while not tracking your KPIs can limit your success; Niechwiadowicz insists “you owe it to yourself, your team, your families, and the industry to track your KPIs and be as successful as you can be!” Niechwiadowicz advised attendees to review how each KPI is calculated, where the information can be obtained, and what the top performers achieve. Next, you must transform that KPI from a number into an operational action plan and, most importantly, get motivated to improve your business by tracking and acting on your KPIs. He focused on the top five KPIs that should be tracked:
● Average repair order (RO): You can impact your average RO by taking estimating classes and using available information, but the best way is to ensure an accurate, complete RO by performing a complete tear-down and writing a thorough blueprint at the beginning of the repair process. ● Total sales: Improve total sales by tracking them accurately and setting
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The contract should also include confidentiality provisions, a non-competition clause, and a due diligence period to allow the buyer at least one month to ensure that they are getting what they expect. Be sure to research the business and property to be certain that you are not acquiring any liens, and, if there are any environmental issues, make sure the seller handles those problems before you assume responsibility for the business; these conditions can also be included in your contract.
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goals to ensure your employees understand the importance of sales. ● Labor efficiency: Track labor efficiency as it is beneficial for everyone when efficiency increases. ● Total gross profit: Of course, it’s difficult to improve your business without discussing your bottom line, and focusing on the following categories will aid in impacting your total gross profit: labor, parts, paint and materials, and sublet. Monitoring these factors will help you maintain focus on the significant and beneficial impact it can have on your entire team’s lives. ● Touch time: Improve touch time by eliminating inefficiencies in the repair process and focusing on anything that causes repairs to start and stop. Improving touch time will positively impact sales, profitability, productivity, customer satisfaction, your working environment, and even the personal lives of your employees and yourself!
Niechwiadowicz concluded with the reminder that “the first step toward improvement is to track your numbers.” Learn more about the AASP/NJ 2014 Northeast Automotive Services Show at www.aaspnjnortheast.com.
Continued from Cover
Tortious Interference?
store the vehicle back to pre-accident condition as humanly possible. It has been well documented with the 1963 Consent Decree. Since then, over the last two decades, the pressure to compromise the repair quality and safety has increased with many insurer mandates and cost controls. It must stop, the driving public deserves a vehicle that has been repaired properly and is safe.” Passwater says, “I am sure that in the near future, possibly hundreds of shops will stand up and join this action, to allow our Industry to repair the vehicles properly for the safety of the consumer. It is unfortunate that the driving public are bombarded daily with billions of dollars of advertising the insurers are spending to convince them that they are a “good neighbor”, or “on their side”, but once this action begins to unfold, the real nature of what has been happening will certainly be revealed.” “John Eaves Jr., lead counsel for the actions across the country, is following a very organized and strategic plan to maximize the effect of the
lawsuit for the industry, Some of the top tobacco litigators in the country are now included as legal counsel for many states. Former attorney generals are counsel for many members. The fight is beginning to shift to a more even playing field.” When insurers don’t cover the full cost of repairs, “it’s such a difficult thing to pass on to a customer,” said Kevin Wells, who operates Quality Collision Inc. in Bloomington and is a plaintiff in the suit. Wells said he often just eats the cost the insurance company won’t pay. “I’m taking it in the shorts by about $6 an hour for every job I do,” Wells said. The lawsuit takes aim at State Farm, which uses its dominant and influential position among other insurers in “spearheading efforts to control and artificially depress damage repair costs,” the suit alleges. State Farm spokeswoman Missy Dundov denied the allegations but declined to elaborate, according to the AP. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” she said.
A spokeswoman for Indiana Farmers said the company had not received notice it had been named in a suit. A search of complaints against State Farm filed with the Indiana Department of Insurance did not reveal any filed by body shops, said department spokeswoman Alexandra Peck. Body shops say State Farm conducts surveys of the going labor rate shops charge in a given area. The data and methodology are not disclosed, shops complain. “Shops are simply required to blindly accept State Farm’s pronouncements regarding these matters.” The insurer attempts to prohibit shops from discussing the labor rates they provide as part of the surveys, “asserting any discussion may constitute illegal price fixing.” Shops that complain the labor rate is inadequate are often told they are the only body shop in the area to say so and that they don’t conform to the “market rate.” In fact, “State Farm knew multiple shops had attempted to raise their labor rates and advised State Farm of such,” the suit alleges. The shops allege insurers have See Tortious Interference?, Page 53
www.autobodynews.com | MAY 2014 AUTOBODY NEWS 41
Missouri Shop Owner and Consultant Favors Common-Sense Solutions for Common Problems by Ed Attanasio
Dave Tritz is the well–known owner of Don’s Auto Body in St. Charles, MO and a former president of Alliance of Automotive Service Providers of Missouri (AASP–MO) from 2006–2008. A second–generation body shop owner and with his son Adam now working in the shop, Tritz has a 40–year perspective on the collision industry and approaches the business with a common sense approach. His consulting business, Business Forward, helps body shops all over the country by advising them on what Tritz calls “the big three”—sales, operations and profit. AASP–MO Executive Director Ron Reiling calls Tritz “one of the best body shop operators not just in Missouri, but in the country.” ABN recently sat down with Tritz to tap into his huge reservoir of knowledge and experience in the collision industry in Missouri. Q: Okay, David—let’s get it out of the way. What are your feelings about PartsTrader?
Dave Tritz (right) was honored as the AASP– MO’s 2010 Outstanding Member of the Year for his service to the organization and dedication to the collision industry in Missouri. Presenting Tritz with the award is former AASP–MO President Greg Bartnett
DT: PartsTrader was implemented in St. Louis market later last year, but prior to that, I was asking around and the consensus is it hasn’t been a good thing. In Missouri just like in any state, we have specific concerns but in the end we’re all in this business to do good work and get paid fairly for it. But, one thing the industry has to be aware of is the fact that we’re in fluid motion here in this industry. This is not where we stop and then that’s it— we’re constantly changing and we’re a work in progress. One thing that I’m concerned about are these additional
processes that are now required. Some of them come mandated by the insurance companies and Parts Trader seems to be one of those types of things, and I think there will be more and more of those coming around, tied into DRPS. But, it’s not just about the processes; it also has to do with all of the other things that are attached to them. Somebody has to perform these tasks and in most cases, they will require more administrative staff to get them done. In Missouri, we’ve definitely seen that the ratio between shop employees versus front office administrative people has changed, because now the shops are requiring more of the latter. Back in the day, you could have one manager and 4–5 techs, but now we’re seeing more of a one–to–one ratio of techs opposed to office people, to accommodate all of this new paperwork created by the DRPs. For MSOs, it’s obviously an economy of scale situation, but I don’t care if you’re talking to a shop that’s doing $600,000 a year versus an MSO that is doing $7 million a year, the amount and costs of administrative work is
getting everyone’s attention, because it’s getting up there. I can foresee in the future that programs like PartsTrader will bleed into how we get other things like paint, for example. I can see an insurer that at some point will try to build relationships with paint companies from a direct buy type scenario. Those are some of the things that are concerns of mine. Another concern is the shrinking profit margins. If you look at those across the board and talk to people that have been in this industry for a significant amount, they’ll tell you the same. And I believe that one of the main reasons is this deluge of added procedures and all of the things that come with it. These guidelines that come along with many of these DRPs assure that we’re going to make less profit. There’s always going to be a little push–and–shove between the buyer and seller, regardless of the industry or the market. Somebody always wants too much and the other guy is telling him, I don’t want to pay that much. That’s business and it won’t ever change. But, I think the real issue as we’re
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going forward should be that collision shop owners are going to have to be continually improving their businesses and know what their product costs are and determine what they want to sell it for In this industry, we need to be better business people when it comes to knowing the cost and value of our product and charging a fair amount to fix these cars. Sometimes you have to say no—I can’t do it at that amount and draw the line. And that’s tough when you’re looking for work to do and stay busy. On top of it, we now have fewer cars to fix. There are more total losses now and fewer accidents and these new accident avoidance features are going to mean there will be even fewer accidents in the future. Q: When your father started in this business, DRPs were non–existent and you’ve seen them as they’ve evolved. Have DRPs helped or hindered the collision industry?
DT: When the DRP network system became prevalent, there was definitely a large undercurrent of bad feelings and many shops didn’t like the process. A lot of shops in this area es-
pecially just didn’t like it and to be honest, I was one of those people, including my father. It finally got to the point where we realized that if we wanted to be in this business we needed to participate in the DRP system and get involved in a few of these networks. The bottom line is that these DRPs bring you a steady flow of work, depending on who you’re talking to. The most important thing is keeping it all in balance, between DRP and non–DRP work.—and that’s been one of the biggest challenges in this industry. Many body shops have welcomed numerous DRPs, because it brings them business, but now that we’ve been in this DRP thing for 20 years or so, we’re starting to see there’s a cost that comes with this. So, we’ve had to re-learn some of the things we were doing before we could rely on these DRPs, like going out and meeting people, marketing to them and branding your shop—things that shops don’t feel they need in a DRP environment. So, in many ways, we’re reverting back to the old ways of doing things, because they work. The downside is that if you get almost all your work from your DRPs, what hap-
pens when you lose a few of them?
Q: Based on your experience, where do shops tend to drop the ball when it comes to marketing?
DT: One common mistake shops make is they don’t track the source of each customer or lead. We spend a lot of time and effort into finding out each and every customer through the door how they found us and what they saw or read that caused them to call us. Was it social media, a neighbor referral, an agent referral, an email blast, newsletter, advertising—or is our name of their insurance company’s list? What we learn is that usually it’s a combination of several things and rarely just one of them. The key is to keep your name out there, so that when there’s a dip in business for whatever reason, you’re prepared. Q: In some states, there is a still problem with unlicensed body shops operating under the radar and taking money away from legitimate operators. Does this exist in Missouri? DT: The old days of shady operators in this area of Missouri at least are a thing
of the past. They’ve gone away and what’s left are good shops that do good business. But, there are a ton of them and consequently, this is a very competitive market. The midnight body shops can’t survive now, because of the technology, specialized equipment and training. They couldn’t fix today’s cars or simply chose not to, probably because they could no longer tie on to an oak tree with a pull along and fix them that way. It’s better for the whole industry, because in the past these under the radar shops were doing unsatisfactory work, which gives us all bad name. Q: Body shops all over the country are setting themselves up to repair cars containing aluminum. Are you part of this movement wither currently or in the near future?
DT: As far as aluminum goes, I think I’m going to wait and see how this plays out. It is here and more of it is coming, but at what pace? The new Ford F–150 will bring a lot more shops to the party, but will all of the added equipment and training pay for itself over time? We’re interested, of course, but we want to do it in a smart way and not just rush into it just because the
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guy down the street is doing it. Q: Do you embrace new technology as part of your business model?
DT: We’re always trying to improve ourselves by continually looking for new technologies, but there are so many things out there that it’s a little overwhelming. So, we have to decide what works for us and what doesn’t, because it’s a big universe. Most of my employees are considerably younger than I am and we often have discussions about technology and how to use it. For a long time a young woman in our office said we need everyone to have dual computer monitors to be more effective and I fought it for a time. Then one day she was out and I sat down and could quickly tell why she wanted two monitors. As soon as she got back from vacation, everyone got two monitors, because it makes them more effective and they can do a better job.
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WIN Announces
by WIN, and I am even more honored to be a member of this amazing organization,” said scholarship recipient Megann Holbrook.
Corporate Sponsors On April 1, 2014, WIN announced the 2014 WIN corporate sponsors. Gold Sponsor ($10,000): ■ AkzoNobel Coatings Inc.
Silver Sponsors ($5,000): ■ National Institute for Automotive Service Excellence (ASE) ■ The 3M Company ■ Axalta Coating Systems ■ BASF Corporation ■ Enterprise Rent-A-Car Company ■ PPG Industries Inc. ■ State Farm Insurance ■ Valspar Corporation
Bronze Sponsors ($2,500): ■ ABRA Auto Body & Glass ■ Allstate Insurance Company ■ AudaExplore, a Solera Company ■ The Certified Automotive Parts Association
■ Car-Part.com ■ CARSTAR ■ CCC Information Services Inc. ■ FinishMaster Inc. ■ Fix Auto USA ■ GEICO ■ Insurance Auto Auctions, Inc. ■ MetLife Auto & Home ■ Mitchell International ■ Safelite Solutions ■ Sherwin-Williams Automotive Finishes ■ Sterling Autobody
“The importance of WIN’s mission to our industry is reaffirmed by the tremendous support we have received from our sponsors,” said Susanna Gotsch, chair of the Sponsorship Committee. “These sponsorships played a key role in our ability to expand our scholarship program in 2014, and extend our reach through programs such as the “There’s A Place For You” recruiting poster distributed to over 1,100 technical schools and colleges by the Collision Repair Education Foundation. We are extremely grateful for our sponsors’ support.” New Board of Directors Members On April 9, 2014, WIN announced that five new members were selected to
serve on the WIN Board of Directors: ■ Jaclyn Byers, Estimatics Team Manager, State Farm Insurance Co. ■ Jessica Rob, Communications Manager / Online Web Communications, Akzo Nobel ■ Marie Peevy, Owner, Automotive Training Coordinators, LLC. ■ Nina Pedraza-Zinna, Director of Field Operations, SCA Appraisal ■ Trish Gould, Controller / Human Resources, Keenan Auto Body
The WIN Board consists of various industry segments including collision repair shops, jobbers, suppliers, consultants, information providers, and insurance companies. Board members may serve up to two three-year terms. “WIN is honored to have such outstanding individuals who are willing to share their time and talents on our Board of Directors,” said Denise Caspersen, chair of the Board Development Committee. New board members will be introduced and officially welcomed by seated directors and WIN members-at-large at the 2014 WIN Educational Conference. To learn more about WIN, visit: http://thewomensindustrynetwork. ning.com.
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CCC Updates: Carwise Shop Finder Solution, Contact Center Solution, TRUE Parts Network Suppliers, and Crash Course 2014 Report Read about the latest news and announcements from CCC Information Services.
Carwise Shop Finder Solution CCC Information Services launched the Carwise Shop Finder solution (www.carwise.com), a free benefit to users of CCC ONE, on March 19, 2014. Carwise is a consumer-facing website that enables CCC ONE users to share repair status details with their customers. The new Shop Finder functionality allows shops to create a profile and share customer reviews, giving shoppers the information they need to find and select a collision repair partner. The Shop Finder functionality is integrated within CCC ONE so shops can manage and maintain their profiles from within their familiar application. “We see the Carwise Shop Finder solution as a great tool to showcase our shop and our offerings, and to provide us with another channel to connect with more potential customers,” said Karen Hansen, secretary treasurer of Hansen’s Auto Body & Paint.
Configuring a compelling shop profile only takes a few minutes. Shops can upload pictures of the repair facility, highlight services that might set them apart, share the shop history, and indicate the type of payment accepted. Shops that use CCC ONE Update Plus Status or UpdatePlus CSI can share customer reviews directly within their Carwise profile. Validated reviews and comments are presented in an unbiased manner ensuring others see what actual customers are saying about the shop. “CCC is focused on helping our customers be successful, and the Carwise Shop Finder solution will give shops a new channel to market their services to active shoppers,” said Joseph Allen, CCC general manager.
Contact Center Solution On April 15, 2014, CCC announced CCC ONE Contact Center solution, creating a single, central location for designated staff or call centers to view incoming assignments, contact customers, schedule jobs, and dispatch work quickly and easily.
“Visibility across our locations has been a challenge for us, but we don’t have the need or the resources for a call center,” said Lance Bartczak, general manager of Kniesel’s Collision Centers. “The seamless integration between the CCC ONE platform and Contact Center allows for a simplified user experience that results in instant callbacks, an increased positive customer experience, reduced cycle times, happier insurance partners, and increased profitability. To say it’s a win-win is an understatement.” “CCC ONE Contact Center was developed to serve MSOs looking to gain more control of their incoming opportunities. Integration, central visibility, and the ability to quickly and easily balance work were the key criteria shops said they needed, and that’s exactly what we’re delivering in CCC ONE Contact Center,” said Joseph Allen, CCC general manager.
TRUE Parts Network Suppliers On April 17, 2014, CCC announced that four additional parts suppliers
joined the CCC TRUE Parts Network: Brandywine Economy Parts, Carro Pacific Inc., ECO Automotive Distributors, and PAM’s Auto Parts, Inc. Once fully implemented, the new suppliers will be able to display their inventories, provide real-time quote price quotes, and sell their available parts through the CCC ONE platform, making it quick and easy for CCC repair shop customers to buy parts and receive electronic invoices. “We’re thrilled all of these great suppliers have signed on to join the CCC TRUE Parts Network and bring their parts inventories directly to collision repairers who look to purchase parts every day,” said David Boden, CCC vice president. “Since launching the CCC TRUE Parts Network, we’ve seen early adopters of the solution significantly reduce return rates on orders, which is a great benefit to our participating suppliers and the collision repairers that rely on them for parts.” Participation in the CCC TRUE Parts Network is open to all parts supSee CCC Updates, Page 49
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 47
Continued from Cover
State Farm Requests
man —Act does not preclude a party from unilaterally determining the parties with whom it will deal and the terms on which it will transact business. … At the pleading stage, ‘formulaic recitations of a conspiracy claim’ are insufficient, and ‘a conclusory allegation of agreement at some unidentified point does not supply facts adequate to show illegality.’ … The Complaint fails utterly to meet the standards set by the Supreme Court and the Eleventh Circuit for pleading conspiracy.” In response, the repair shops’ attorneys argue that the claims in their complaint are valid. “Defendant State Farm’s motion rests primarily upon the incorrect assertion the complaint fails to set forth sufficient facts to satisfy the pleading requirements,” attorneys write. “Repeatedly and throughout the motion, defendant State Farm misrepresents both the contents of the complaint and quite often the holdings of authority to which it cites. When the correct legal standards are applied, a See State Farm Requests, Page 53
Monte Etherton Issues Appeal to Body Shop Principals to Support Dave Jones’ Re-election, Details Reasons to Support Jones I ask that each of you make a contribution to re-elect Insurance Commissioner Dave Jones. He needs to know that everyone in our industry, from owners to techs to managers to vendors, appreciates him and that we want him back for another 4 years. As chairman of the CAA Legislative Committee, I have spent hundreds of hours of my own time working toward bringing fairness to various claims settlement practicesfairness that will help us all prosper in the collision repair industry. Before Dave Jones was elected, many of the hours I spent were wasted, but since he was elected it’s been a different story. Here are some examples of how we changed the law to be more consumer (and shop) friendly: 1. If an insurer prepares an estimate for a customer, and afterward (e.g. after teardown) your shop submits an estimate that is higher, the insurer must base any further adjustments on your estimate, not their own. This allows your customer to easily see the changes made by the insurer. 2. Insurers are now required to include estimating software p-page operations when those operations are
accepted trade standards or necessary for workmanlike repairs. A good example of this: “Feather Prime & Block” cannot be included in repair time. 3. If an insurer specifies an aftermarket part that turns out to be not equivalent to the OEM part, then the insurer: a. owes the cost to R&R the bad part and replace with OEM. b. owes the shop costs associated with returning the part. c. cannot continue requiring use of the part. d. must notify the distributor of the non-compliant part. Dave Jones has also helped all Californians by keeping insurance costs down: “We saved policyholders $1.4 billion in premiums by rejecting excessive auto, homeowners, and other property and casualty insurance rates, and we negotiated over $293 million annually in health insurance premium savings for individuals and small businesses.” We still need to fix some other inequities (e.g. labor rate surveys), but if Dave Jones isn’t re-elected, that won’t happen. If the insurer-backed candidate wins it’s likely that some (or all)
of the good work we have done will be out the window. We’ll be back to “the fox watching the henhouse.” My partner and I are contributing $1000 each. It’s not easy for us to do this, but we believe this is very serious matter, one that has a huge effect on our business and our lives. Please consider your future and make a contribution today. I’m going to see Dave Jones Thursday, and as I said, we want him to know our industry appreciates him. Please fill out the attached form and send a check, or use the fax and get some free miles on your credit card, but do it NOW. If you would like me to hand deliver your contribution, or if you have questions, contact me anytime. Sincerely, Monte Etherton Chairman, CAA State Legislation Committee, State Board Member, CAA SD Chapter President, Fender Mender Inc. 326 N. El Camino Real Encinitas, CA 92024 760.213.0202 Cell 760.436.5575 x11 760.436.0203 FAX
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SUBARU 1450 South Shamrock Ave. Monrovia, California 91016
HONDA 1450 South Shamrock Ave. Monrovia, California 91016
Continued from Page 9
Dave Jones Interview
Market Conduct functions to identify and address any issues raised by consumers, body shops, and though onsite audits of insurer claims practices. While not specific to just automobile insurance, in 2013, CDI has been to recover more than $63 Million for consumers and other claimants, as a result of these Consumer Services and Market Conduct functions, more than $188 Million since I became Insurance Commissioner. Q: How have you been able to stand up to the powerful insurance lobby?
DJ: I make decisions that are in the best interest of consumers. One of many examples where I opposed the powerful insurance industry lobby was, as noted, in garnering support from consumer safety and advocacy groups and the collision repair industry to oppose and stop the bills, which would have led to less consumer protection, from becoming law. Q: Is your initial feeling about why
you took the job still the same or has it changed/evolved?
DJ: I sought this important office in order to serve consumers and Californians. I still feel it’s a privilege to hold this office. Q: You told me back then that “This job is not stepping stone for higher office.” Do you still feel that way?
DJ: The office of Insurance Commissioner is a higher office—I am one of only eight statewide elected constitutional officers. I have been focused throughout my first term on being the best possible Insurance Commissioner. And I am running for re-election as Insurance Commissioner, because I believe I have done a good job and I would like to continue to serve California in this way. Q: How have you been different than your predecessor?
DJ: I will let my record and accomplishments speak for themselves.
Q: Thank you very much. Good luck in your reelection efforts.
Continued from Page 46
CCC Updates
pliers. Visit www.ccc-true.com for more information. Integrated parts quoting, procurement, and invoicing are available now, free of charge, to CCC ONE Repair Workflow customers. No setup is required.
Crash Course 2014 Report The CCC Crash Course 2014 report now includes an infographic and a live webinar series. Crash Course, an in-depth report that focuses on the factors driving auto collision repair and total loss costs, is compiled using research and information from a wide range of sources and an aggregated set of data from the CCC data warehouse, which includes approximately 140 million claims worth of information.
“The auto physical damage industry continues to move quickly as weather patterns, regulatory factors, advancements in technology, and consumer preferences for products and services evolve and converge,” said Susanna Gotsch, lead analyst for CCC. “This year’s report looks at these factors individually and together to help provide perspective on the overarching impact they are, and will continue to have, on our industry. We’re excited to extend the information reported on in Crash Course to other formats, which we hope will provide a more comprehensive view of the broader marketplace for collision repairers, insurance carriers, parts suppliers, and other industry participants.” To download a copy of the Crash Course 2014 report and infographic or to register for a webinar, visit: ccc.cccis.com/crashcourse.
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Associations Update
Janet Chaney has been a long-time contributor to Autobody News. She’s a former shop owner and now owns and operates Cave Creek Business Development in Stevensville, Montana. Janet supports many auto body associations can be reached at jchaney.cavecreek@gmail.com
Buses of Yellowstone—How About These for Barn Finds? with Janet Chaney
North Star Body and Trailer Repair in Billings, Montana, has a wonderful story to tell. Don Mueller and his brothers, T.J and John run this third generation business where the doors opened in 1928. The shop was at one time called North Star Body and Blacksmith Shop.
Bus 401 in its barn condition
group lovingly maintains an important part of American history. Mueller smiles through the phone when he talks about, ‘a great barn find.’ A bus they found that had been in a barn in Bozeman, Montana for 45 years, bus Number 401, a 1937 Yellowstone Park Bus . Bus Number 401 went through the Trust Preservation and is now back on the roads, taking eager visitors on day trips to the Beartooth Mountains or even longer trips back through Yellowstone Park. When Bus Number 401 rolled through the Park entrance last year, it was the first time it entered Yellowstone Park since 1960s. The Buses of Yellowstone Preservation Trust have rented a building in Red Lodge, Montana, where several buses are stored. Mueller states quite clearly, “These buses are Preservations, not Restorations.” “ We clean them up, do maintenance, tune-up’s, brake jobs, change belts and hoses and wires, clean cooling systems; whatever it takes to keep them running.”
In 2008, Don, T.J. and John, along with a few other ardent collectors started the, “Buses of Yellowstone Preservation Trust”. This began for Don Mueller 25 years ago when helping a friend restore a 1936 Yellowstone Park Bus. In 2000 they restored a 1938 Yellowstone Park Bus (which took two years) then another historic Yellowstone Bus came through their door, and another and even a Glacier Park Bus. And the rest, we may say, is Yellowstone history; the Buses of Yellowstone Preservation Trust was born. A group of interested, passionate bus owners made the commitment to build this American legacy. The enthusiasm is infectious when you hear Don Mueller talk about the Trust and the buses they have. This
The 5 buses in Red Lodge are operable and shown off in parades and events throughout the year. During the summer months the Trust takes day
IBIS, the International Bodyshop Industry Symposium, is once again bringing together the greatest global minds to share their knowledge and expertise. IBIS 2014 takes place at the luxurious Hotel Arts, Barcelona 19–21 May 2014. With the support of our partners—3M, AkzoNobel, Audatex, Automechanika, Axalta, EMM, Enterprise, Innovation, Quindell and Thatcham Research. Confirmed speakers include: Dr. Thomas Aubel, Sean Carey, and Michael Macaluso.
Premier Services has donated $2,500 to the Collision Repair Education Foundation to assist the charitable organization’s efforts to support high school and college collision school programs, instructors and students nationwide. “Premiere Services is pleased to support the initiatives of the Collision Repair Education Foundation as they assist the industry’s future,” said Joyce Kasmer, Premier Services executive director of sales and marketing.
IBIS to be Held in Barcelona on May 19-21
trips, with a picnic lunch, up the Beartooth Highway as a fund raiser for the organization. The Buses of Yellowstone Preservation Trust is a 501©3 non-profit organization and does depend on contributions to exist and keep those buses on the road back to our history. You can help keep these Yellowstone Buses on the road by sending a
tax deductible donation to this great American legacy. Learn more at their website, www.boypt.org. Contact: Buses of Yellowstone Preservation Trust P.O. Box 1522 Red Lodge, Montana 59068
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 51
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Automotive Marketing Company Garners Huge Kudos for its Website Clients with Ed Attanasio
For many years, body shop owners in three independent judges based on the general weren’t enamored with the idea following criteria: First impression/viof hiring a company to design and desual design, objective/ purpose, innovelop their websites, thinking that they vation, credibility, navigation, calls to with Ed not Attanasio cost too much and would bring action, consumer friendliness, technienough new customers to their shops. cal elements, and social media inBut now most of those naysayers and volvement. doubters realize that a good, easy-toSanchez and his company have read website that has intuitive navigadominated the ‘Top 10 Automotive tion and is leveraged for searchability Repair Websites’ list since 2007 and is a necessity, rather than a luxury. have captured 20 of the 60 available And that’s why companies such spots over those years. He and his 12as Autoshop Solutions, an automotive member team have been designing website design and Internet marketing websites and performing search encompany based in Apex, NC, are gine optimization (SEO) for a wide flourishing. Autoshop Solutions’ web- range of automotive repair companies sites have been named to the highly- (both mechanical and collision), parts respected “Top 10 Automotive Repair vendors and transmission shops, autoWebsites” list by AutoInc., the official motive glass companies, and performpublication of ASA, (www.autoinc. ance shops, according to Sanchez. org/top10.htm) for the last seven “I personally started designing years, including four wins in the 2013 websites for automotive companies allist. most two decades ago, and then in “We are honored once again to 1999 I opened the doors here at Auhave four of our clients’ websites toshop Solutions,” Sanchez said. “I recognized for being some of the recognized a definite need, because best in the country,” said Danny we saw that these companies were Sanchez, CEO and founder of Au- doing excellent work, but they didn’t toshop Solutions. “We congratulate know how to create a presence online. Atlantic Motorcar Center, Kinney’s Our first few clients were mechanical Automotive, Valley Automotive, and repair shops, and we realized rather Mike’s KARS for inclusion on Au- quickly that we could help them a lot toInc.’s list of ‘Top 10 Automotive by creating websites that are easy-toRepair Websites’.” use and optimized for search. One vicAutoshop Solutions has been tory led to another, and pretty soon we building website designs for the auto- were busy because repair shops need motive industry for more than nine our help and we know what they years and has won numerous awards, need.” but winning never gets old, according Early adopters have a distinct adto their vice president of operations vantage online, but those companies Margaret Klemmer. that are jumping in now can make “Website design trends and Interquick inroads if they decide to step up net marketing are constantly chang- and feature a top-notch site. “A siming,” she said. “We’re encouraged by ple site with three or four pages used the fact that our websites consistently to be enough, but no more,” Sanchez place in the ‘Top 10 Automotive Re- explained. “Five years ago, you could pair Websites’ across the country be- dominate your market because your cause we always work hard to make competition either had a weak site or sure our customers get websites that maybe even no website at all. But truly work for them. These awards now almost every shop out there is validate our ability to evolve and in- trying to get those top rankings, and novate our product for the benefit our the competition online is intense. our clients.” Those shops that dragged their feet Each year, AutoInc.'s judges reare scrambling, but everyone is in the view hundreds of websites from game now.” around the country to come up with the Sanchez said the old days of hir‘Top 10 Automotive Repair Websites’ ing your cousin or brother-in-law to list. These websites are evaluated by do your website are long gone for sev-
SEMA Show Goes On
52 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
eral reasons. “The sites out there now contain 10-15 pages that are full of fresh content and more bells and whistles than ever before, so hiring a friend or relative that designs template-type web sites part-time on the weekends won’t make it anymore. Consumers are much more knowledgeable and if they see an amateurish-looking site, they know what they’re looking at. For many customers, your website is the first thing they’ll see—before they visit your shop or even call, in many cases—so making a good impression with your website is much more crucial now.” Many shops launch websites and then forget about them, which is a mistake, Sanchez said. “I call it the ‘check the box’ syndrome. Shops figure hey—we did a whole new website five to six years ago, so let’s just leave it alone. The only problem is things are changing all the time, so if you’re not adding new content and refreshing
your site, you can be left behind. One thing we’ve done for many of our clients recently is softening up their approach and making the content more instructional, because we know that 60 percent of the people handling these repairs are women. Also, Google values fresh, original content more now, which means that blogs are more popular than ever.” Gail Bixler is the business development manager for Mike’s KARS, a mechanical repair shop in Gettysburg, PA. Capturing an award for its website (www.MikesKARS. com) was obviously a thrill for the shop, but the work isn’t done quite yet, Bixler said. “We’re still in the process of refining our site, and I imagine that will never end,” she said. “We will be making revisions on an ongoing basis because we realize that we need to continually make it better. It’s not rocket science, but you need to put in the necessary time and pay attention to things like
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social media, SEO, and the overall look and feel of the site.” Josh Fuller, co-owner of Fuller’s of Auburn in Auburn, MA, contracted Autoshop Solutions to design a website for his company (www.fullerautomotive.com) in 2012. It wasn’t an easy task because Fuller has six businesses all under one umbrella: towing, mechanical repair, collision repair, an express oil change service, a car rental fleet, and a used car sales company. But, by building a site that is easy-to-use and incorporates SEO, Fuller is pleased by the results and delighted about the positive reviews that he’s received from his customers. “We started our first website back in 2006, but the technology is so different now, and there is so much more competition fighting for top rankings these days,” Fuller said. “We’re constantly looking for the best solutions out there, and the people at Autoshop Solutions knew exactly what we were looking for because they know our industry inside-andout.” For more information about Autoshop Solutions, visit: www.autoshopsolutions.com
Continued from 41
Tortious Interference?
failed to abide by industry standards for auto repairs and repair-estimating databases. At the same time, many insurers pressure shops to reduce costs by using recycled parts. But used parts like doors can require hours of additional labor to be made to fit properly and to be reconditioned. Ultimately, shops are required to either make “less than quality” repairs or suffer a financial loss. Taking shortcuts raises the specter of safety issues, but once a vehicle is repaired, it’s not easy to spot problems such as improper welds that might be hidden by seam sealer. Neither scenario is palatable to many body shops. “There are a lot of them that have hung it up and said, ‘That’s it. I can’t take it anymore,’” Passwater said. “The guys can’t make it. It’s not that they are bad businesspeople,” said Scott Blake, of Blake’s Carstar Collision Center in LaPorte and president of the IABA. Some shops have survived cost pressures by adding services such as
applying sprayed-on bed liners for pickup trucks. Some shops have purchased others through a rollup strategy intended to improve efficiencies. Passwater said the state once had about 2,000 shops; there are now 800 to 1,000. The 34-page suit alleges insurers have violated the federal Sherman Act, both in price-fixing and through boycotting tactics. They contend the boycotting efforts include insurers telling policyholders that a certain shop will be more expensive and that choosing it also means they’ll be responsible for additional rental-car charges. Another tactic, body shops allege, is to tell consumers the work won’t be guaranteed by using a shop that doesn’t conform to a repair program agreement. That’s misleading, however, because insurers require all shops to stand behind their work for a period of time. The collision shops seek unspecified compensatory damages for under-payments as well as damage for lost business opportunities. They also seek an injunction that would require insurers to modify their practices.
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Continued from Page 48
State Farm Requests
straightforward reading of the complaint establishes there is more than sufficient facts asserted to satisfy the pleading requirements. “Defendant State Farm’s numerous misrepresentation of fact and law do not alter this. The motion to dismiss is without any merit, legal or factual. The plaintiffs respectfully submit it should denied in its entirety,” attorneys claim. The repair shops’ attorneys also responded to Geico’s request for dismissal, writing, “[Ge]ico’s motion rests primarily upon the incorrect assertion that the complaint fails to set forth sufficient facts to satisfy the pleading requirements. Repeatedly and throughout the motion, Defendant Geico misrepresents both the contents of the complaint as well as citations to authority, holdings of the cited courts and the procedural posture of those cases. When the correct legal standards are applied, a straightforward reading of the complaint establishes there is more than sufficient facts asserted to satisfy the pleading requirements.” The judge has not issued any decisions at press time.
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 53
Colorado Springs Duo Develop ‘Ding Stinger’ App Ever had a customer claim your repair technician dented or dinged his vehicle while fixing the original problem. The customer wants the dent/ding fixed for free—though it likely had been there for some time.
James Bishop, left, and Jake Durfee, coowners of The Ding Guy, have developed an application that helps auto repair shops eliminate paper work and cut the time needed to create repair estimates. (Credit: The Gazette, Christian Murdock)
Tired of dealing with such false claims, the owner of a Colorado Springs body shop and his brother-inlaw came up with a high-tech solution: an app. James Bishop, 42, and Jake Durfee, 30, invented The Ding Stinger app as an easy way to let auto body repair and mechanic shops scan car or truck vehicle identification
numbers, take photos of hail and other body damage, write estimates and share the information with customers and other auto repair companies. So if a customer comes back with a false claim - or takes it to another shop—the app can divulge the truth. Bishop says such false claims happen a lot, and that’s why he and Durfee came up with the idea. But the app also has saved Bishop’s company the time it took to fill out paperwork for orders and estimates. “We are literally four times faster,” he said. “Since we did this app, we have tracked where it has saved us 15 hours a week.” The app works on any Apple mobile device and can be downloaded and used for a limited time for free. After that, the app costs $30 a month to use, or $299 a year. So far, it’s been downloaded more than 2,000 times in all 50 states and five countries, Bishop said. It has been purchased 226 times since it became available in July. Durfee, a manager and repairman at Bishop’s repair shop, “The Ding Guy,” said he helped develop the app after the two men realized the flaws in their check-in procedures,
such as transposed VIN numbers and triplicate paperwork. He said they created the app so it can be shared with repair and other auto service shops within the city and elsewhere. Bishop started working in the auto body repair business in 1991 when he was 19. After attending trade school in Bentonville, Ark., he returned to the Springs in 1992 and opened his first shop. In 2006, he started “The Ding Guy” at 3001 East Platte Ave. Durfee started working with Bishop the same year Bishop opened his shop, and Durfee’s older brother, Matthew, coded the application. When asked why someone should buy “The Ding Stinger” app instead of just having employees take photos of damaged vehicles, Bishop says, “Because the app organizes everything into an information package that can be attached to any other program, sent to customers, and it saves time.”
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American Honda Announces Two Body Repair Bulletins
American Honda is pleased to announce two new Body Repair News bulletins. The first covers the 2015 Honda Fit model including new model body technology, body repair information, welding information, air bag systems, and more. Body Repair News summarizes new body and vehicle technology that may affect collision and other body repairs. It is not intended to replace the detailed information contained in the body repair and service manuals. Rather, it simply helps collision repair industry personnel understand why using the factory service information is so important to make safe and complete repairs. The second Body Repair News bulletin covers welding and sectioning guideline revisions that apply to all models. This is in response to industry requests for more information about the proper repair of Honda and Acura vehicles as the amount of high strength steel continues to increase in our vehicles. Body Repair News covering these and other topics can be accessed at: https://techinfo.honda. com/rjanisis/pubs/web/ABN51267. pdf and ABN51152.PDF
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54 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 55
SCRS 2014-2015 Board Elected in April 2014
Four members of the Society of Collision Specialists (SCRS) 2014-2015 Board of Directors were re-elected to the SCRS Executive Committee on April 8, 2014, during the SCRS annual meeting in Portland, OR. Six candidates ran for four positions, including four incumbents and two new individuals who were proposed by the SCRS Nominations Committee. All incumbents were reelected by members, so there were no changes to the SCRS Executive Committee. The re-elected board members are Andy Dingman of Dingman’s Collision Center in Omaha, NE, Ron Reichen of Precision Body & Paint in Beaverton, OR, Brett Bailey of A&B Body Shop Inc. in Kansas City, MO, and Dusty Womble of Roger Beasley Collision Center and Roger Beasley Auto Glass in Austin, TX. “We are excited the membership has recognized the efforts of our leadership team,” stated SCRS executive director Aaron Schulenburg. “The results of this election really instill a sense of confidence that we are serving our members in the appropriate manner, and that this strong and diverse group of thoughtful and articulate collision repair representa-
Society of Collision Repair Specialists Open Board Mtg.
On Tuesday, April 8, 2014, the Society of Collision Repair Specialists (SCRS) (www.scrs.com) held a two-hour open board meeting in Portland, OR, that included updates from SCRS staff, committees, and affiliate associations outlining current and future work initiatives. SCRS Education Committee member Gary Wano provided a report on information gathered from the BMW National Aftersales Conference including BMW plans relative to the Certified Collision Repair Center program, insurer relationships, and insight into repairability of the carbon fiber chassis, aluminum frame rails, and thermo plastic outer panels on the upcoming i3 and i8 electric vehicles. Toby Chess and committee chairman Kye Yeung presented about new products that can help collision repairers produce great repairs on modern cars. Barbara Crest, executive director of the Northwest Automotive Trades Association and Janet Chaney, executive officer of the Oregon Collision Repair Specialists, gave updates on the Oregonbased affiliations’ activities.
tives is well suited for their positions.” SCRS bylaws allow elected board members to hold executive positions for a maximum of two, one-year terms, and each member of the SCRS Executive Committee was eligible to maintain their current position.
receive such support and confidence from our members.” Though elected to a new threeyear term, Reichen is serving his final eligible year as chairman, and the remainder of his term will be appointed to a replacement candidate by the incoming chairman in 2015. In 2013, national director Jim Sowle was appointed to the remainder of immediate past chairman Aaron Clark’s term. “This past year has been such an enormous, eye-opening The 2014-2015 SCRS Board of Directors (left to right): CJ Vermaak, experience for me Domenic Brusco, Jim Sowle, Dusty Womble, Aaron Clark, Bruce into how engaged Halcro, Luis Alonso, Ron Reichen, Brett Bailey, Kye Yeung, Rodes this board is on the Brown, Andy Dingman, and Paul Val (Photo provided by Joel issues of national imGausten, TGP, Inc.) portance to the inSCRS chairman Ron Reichen dustry,” shared Sowle. “Like many of commented, “I’ve accomplished a our members, I attentively followed great deal in my career, but nothing the association’s activity, and worked quite compares to the work that we to be involved as frequently as I tackle at SCRS. I am fortunate to be could; but it wasn’t until I joined the surrounded by brilliant and hard- board that I really could appreciate working individuals who have dedi- how much work this group does quicated themselves to rolling up their etly in the background to make our sleeves and going to work for the in- industry, and our members’ busidustry we all love. It is an honor to nesses, more successful. For anyone carry forward with that work, and to who has a desire to be a part of some-
WA Bill Exempts Collectibles from Emissions Testing
A bill to exempt collectible vehicles of any age from emissions testing was signed into law by Washington state governor Jay Inslee. The new SEMA-supported law defines a collectible vehicle as a vehicle of unique or rare design of limited production and an object of curiosity that is maintained primarily for use in car club activities, exhibitions, parades, or other functions of public interest or for a private collection, and is used only infrequently for other purposes. The law requires that the vehicle have collectible vehicle or classic automobile insurance coverage that restricts the collectible vehicle mileage, use, or both, and requires the owner to have another vehicle for personal use. For details, email Steve McDonald at stevem@sema.org.
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thing bigger that makes a difference outside of your own four walls, this is where it happens.” Nominations committee chairman and second-generation SCRS national director Dusty Womble encourage those with similar interest in leadership positions to become engaged now. “Almost everyone sitting around this table was involved in SCRS activity long before running for the board of directors,” he shared. “This group is fortunate to have regular interest from new volunteers, and the position requires a great deal of commitment and involvement. Attending the quarterly meetings and interacting with the board and membership is one of the best ways to make sure that future potential candidates have the time, energy, and support at home necessary for board members to be successful in their term. I’m honored to be able to continue on in my service, and look forward to the opportunity to work with and welcome new individuals with similar passion for improvement.” For more information about SCRS, visit www.scrs.com.
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AudaExplore Enhances MAACO’s Operational Efficiency with Repair Platforms AudaExplore™, a leading data-driven solution provider to insurance carriers, repairers, dealerships and fleet owners, today announced that it has signed an agreement to provide its Driver Experience and Repair Platforms to MAACO® Collision Repair & Auto Painting. Customized specifically for MAACO’s franchisee owners, AudaExplore’s Driver Experience and Repair Platforms are designed to deliver unique customer moments and increase shop productivity through: ● Empowering customers via mobile devices to gain visibility into the entire paint and repair process; ● Improving productivity and generating accurate estimates faster; and ● Easily managing all aspects of the repair and paint workflow—from tracking sales and cycle time to managing employee productivity and parts efficiency. “We are excited about our partnership with AudaExplore, their stateof-the-art technology will help our franchisees streamline operations and enhance the overall customer experience,” said Jose Costa, President, MAACO. “As North America’s Bodyshop for more than four decades,
we are committed to leading the industry with new technology, quality products and providing the best service to our customers.” MAACO currently operates 450 auto painting and collision repair shops in the United States and Canada. With AudaExplore’s Driver Experience and Repair Platforms, MAACO shops are equipped with significantly more actionable and real-time operational data, resulting in positive gains in shop efficiency for franchisees, and a more satisfying paint and repair experience for their customers. “The collision repair market is highly competitive, so the quality of data—whether it’s an estimate or employee productivity rate—plays an advantageous role,” said Gordon Henderson, VP of Collision Repair Solutions, AudaExplore. “By offering improved visibility into its shops operation and delivering applications that create a differentiated customer experience, AudaExplore’s solutions enable the company to adapt and grow efficiently. We look forward to building out our partnership with MAACO and help the company achieve its expansion goals.”
SEMA Board of Directors Candidates Announced
The Specialty Equipment Market Association (SEMA) Board of Director candidates were announced on March 20, 2014 (one open seat available per category): Manufacturers Category ● Tim Martin, COO of K&N Engineering Inc. ● Rick Trudo, President and CEO of SCT Performance, LLC ● Steve Wolcott, President and CEO of ProMedia LLC Distributor Retailer Category ● Greg Adler, CEO of Transamerican Auto Parts ● Larry Pacey, President and CEO of National Performance Warehouse Voting will take place online May 14 through June 10, 2014, and is open to current SEMA member companies. Votes must be cast by each company’s primary contact. Details with ballots and links will be sent to the member company’s designated primary contact in May 2014. Winners will be announced in June 2014, and formally inducted into the SEMA Board of Directors at the SEMA Installation Banquet in July 2014. For more information, contact Judi Ritchie at 1-909-978-6671 or judir@sema.org.
Collision Industry Foundation Announces New Trustees
On February 10, 2014, the Collision Industry Foundation (CIF) elected three new Board of Trustees members: Casey Steffen of Saint-Gobain Abrasives, Nick Notte of Sterling Collision Centers, and David Henderson of AudaExplore/Autowatch. The new trustees participated in the annual planning meeting in Chicago, IL, on March 12, 2014. “I’m excited to be part of the CIF Board of Trustees, said Notte. “I strongly believe that it is the responsibility of every person who makes a living in our collision industry to give back to those in need. The CIF is a wonderful vehicle by which to do that.” Steffen stated, “I feel privileged to have the opportunity to become a part of CIF. I am excited to work with my fellow board members in accomplishing the foundation’s vision of providing emergency relief for collision repair professionals.” For more information about CIF or to donate, visit www.collisionindustryfoundation.org.
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www.autobodynews.com www.autobodynews.com | MAY 2014 AUTOBODY NEWS 57
Are Aluminum Cars Really Better for the Environment? Study Says ‘Yes’ One of the best way to make vehicles more energy-efficient is to make them lighter. Aluminum is often used to do that because it can be as strong or stronger than steel, but weighs a lot less. Initially, aluminum was mostly found in high-end models, like the Audi A8, but recently more of it has started to pop up in mass-market models, like the 2015 Ford F150 truck that will be mostly made of aluminum, reducing weight by 700 pounds compared to the previous model. So, are aluminum cars really better for the environment? Many people are still skeptical. But Oak Ridge National Labs has looked into the matter and seems to confirm that they are. Oak Ridge National Labs basically compared the whole life cycle of three different versions of the same vehicle: a normal, baseline vehicle; a lightweight, steel vehicle; and an aluminum-intensive vehicle. Their findings are that aluminum is absolutely worth it, with an energy break-even distance for their test vehicle of just 12,000 miles. That’s an energy payback of just one year for the average person, and after that all energy savings are 100 percent net gains over a traditional, steel-based vehicle. Oak Ridge Labs found that the aluminum vehicle has a mass that’s
about 25 percent lower than the baseline vehicle, which makes a pretty big difference on overall life cycle CO2 emissions (17 percent).
2015 Ford F-150
Aluminum also corrodes less than steel, so total useful life for vehicles could be lengthened, or at least money spent on maintenance and body work reduced. Another great thing about aluminum—and carbon fiber, which is also another great material to reduce weight without losing strength—is that it allows electric cars to have much longer range than if they were made out of steel. So, it looks like there is solid evidence backing aluminum as a material of the future in the transportation sector. Over time, as costs are reduced, carbon fiber could join it to help further reduce weight and save energy. Read the full story at: http://www.treehugger.com/cars/make -sense-make-vehicles-aluminum-howlong-energy-payback.html.
AutoBody-Review.com Improves Geo-Targeted SEO, Authority for Shops by Adding “Articles: to Profiles
AutoBody-Review.com announces the release of a new feature to their customer shop profiles with the release of “Articles” in all body shop profiles in advance of upcoming Google algorithm changes. The Search Engine giant has hinted at some upcoming changes to its algorithm in their latest “Webmaster Help” video. Google’s Head of Webspam, Matt Cutts, said they are working on some changes that will help Google better determine when a site is an authority on a topic such as auto body repair. Google continues to improve search results to allow for more accurate local rankings in the Hummingbird update, combined with upcoming algorithm changes that will determine which sites are more of an actual authority on a subject. AutoBody- Review.com has responded early with the addition of “Articles” to our customers shop profiles. Each client will receive one keyword-rich article written by our in house SEO writers that is targeted to each body shop’s local geography, and is included in each shop profile in a unique “articles” tab. From there, the body shops can continue adding their own articles as they see fit.
“The geo-targeted long tail keyword is crucial to ranking a local service business such as a body shop online, and now we have increased our ability to rank our customers on a local level through our nationally ranked website,” said Director of Marketing, Tom Zoebelein. “Our duty to our clients as a nationally recognized website is to get them found in a local search, by customers in their local area. After months of keyword research from our own web traffic, we discovered that we can leverage our ranking power, and our SEO expertise to assist our shops on a local level with the addition of our new articles feature,” said CEO Curtis Nixon. AutoBody-Review.com’s new articles feature will function much like a mini-blog on each auto body shop profile. While most auto body shops lack the knowledge or the staff to properly blog for their shop on a local level, AutoBody-Review.com has simplified this task for them.
3M Continues Funding Scholarships For 2nd Year in Collision Repair for Returning Veterans “Hire Our Heroes” program, 3M™ is funding special scholarship opportunities for veterans that want to begin a collision repair career by attending a collision repair community college or college. The scholarship awards will pay for tuition and required books/tools for veterans enrolling in school collision repair programs in the summer/fall 2014, therefore easing the financial burden of education. This is the second year for the program. Interested veterans can apply for the scholarship opportunities by visiting the Collision Repair Education Foundation’s web site: www.CollisionEducationFoundation.org, under “Students” and “Hire Our Heroes.”.The deadline for the application is September 30, 2014. As part of the application, a veteran would submit information for the collision school he/she would like to attend and if a veteran is not aware of what schools offer collision training, he/she can contact the Education Foundation directly for a list of available schools. Clark Plucinski, Executive Director of the Collision Repair Education Foundation said, “The Collision
Repair Education Foundation is once again proud and honored to partner with 3M and the Hire Our Heroes program to offer this grant. This is a great industry with many opportunities for returning veterans, and this grant is a great first-step for veterans to get the collision education needed to become successful members of the collision industry.” “We are excited to be able to continue the 3M Hire Our Heroes program in 2014 and expand it to provide more resources to our returning veterans who want to pursue education, training and careers in the collision repair industry,” said Dale Ross, U.S, Marketing Operations Manager, 3M Automotive Aftermarket Division. The winners of the scholarship will be selected by members of the Collision Repair Education Foundation’s Board of Trustees Selection Committee and notified by mail and phone in November 2014. For more information, please contact us at Scholarships@ed-foundation.org or 888.722.3787, Ext. 283.
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Society of Collision Repair Specialists Roundtable The Society of Collision Repair Specialists (SCRS) (www.scrs.com) hosted the Repairer Roundtable meeting on April 9, 2014, in Portland, OR, to create a forum for collision repair professionals with conversational agendas that promote healthy dialog surrounding important issues. See cover story. Dave Gruskos of RAE Inc. began by focusing on the growing use of alternative materials and repair designs found in today’s modern fleet, and how those design changes influence the way repair professionals need to approach collision repair.
“Dave is an excellent resource to expose our members and guests to the current technology boom we are seeing, and to underscore the requirements associated with preparation as these advanced high-production models enter our repair businesses. There is a great deal of commitment and investment involved in the pursuit of capability; and understanding what is, and will be, expected of repairers will help in the development of individualized strategy to serve the market,” said SCRS executive director Aaron Schulenburg.
NJ KISS Bandits Arrested After $40,000 in Damages
Saddle Brook, NJ, Police arrested four teenage boys on March 20 who are allegedly responsible for causing nearly $40,000 worth of damage to 25 cars parked at a Saddle Brook Maaco Auto Body lot. Two of the teens, one from Garfield and the other from Elmwood Park, were taken to Saddle Brook Police Headquarters and were released into their parents’ custody, police said. The other two teens, who are residents of Rochelle Park and Garfield, were later identified. All four are 16 and will be charged as juveniles, police said. Be-
cause 25 cars were damaged, they will each be charged with 25 counts of criminal mischief, the degree based on the extent of the damage to the vehicle. Saddle Brook Police had been searching for the four “hoodlums” in the KISS rock band masks who were recorded on Maaco’s surveillance video as they smashed and spray painted more than two dozen cars in the Fifth Street auto body lot on March 8. Several days after the incident, a man reported at least 24 KISS masks had been stolen from his van. NO. CALIFORNIA SO. CALIFORNIA
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www.autobodynews.com | MAY 2014 AUTOBODY NEWS 59
Sherwin-Williams Supports NASCAR Green Initiative, Applies Low VOC Paint to No. 51 Sherwin-Williams, the “Official Transportation Finishes of NASCAR” sponsor, is honored to support the second annual NASCAR Race To Green initiative (http://green.nascar.com/raceto-green), March 29–April 27, 2014.
Sherwin-Williams is also supporting NASCAR green efforts through education initiatives, promoting awareness of low volatile organic compound (VOC) paints—like Sherwin-Williams Automotive Finishes AWX Performance Plus waterborne refinish system, which meets the strictest VOC limits in North America—and initial application for select teams in the industry. Roush Fenway Racing uses AWX Performance Plus on each of its six race cars. The No. 51 Turner Scott Motorsports Chevrolet driven by Justin Algaier ran a special Sherwin Williams paint scheme in Darlington, SC, and
was also painted using AWX Performance Plus. “Sherwin Williams and NASCAR should be applauded for educating NASCAR fans and the marketplace more generally about the value and availability of low-VOC paints. VOCs are commonly used in paints and can cause cancer and neurological and reproductive harm. Once applied, VOCs evaporate into the air for months afterwards. By using its market and cultural influence to educate fans and other businesses about the availability of low-VOC paints and its ease of use, NASCAR and Sherwin-Williams are helping to move the marketplace towards a less toxic environment,” said Allen Hershkowitz, Ph.D., senior scientist for the Natural Resources Defense Council (NRDC). “More than a dozen NASCAR teams currently use Sherwin-Williams Automotive Finishes, and we aim to help teams cross the finish line and ensure that their cars and their sponsors always look good circling the track,” said Bobby Moody, director of motorsports for Sherwin-Williams Automotive Finishes. “We also want to assure them of our commitment to use the most environmentallyresponsible coating products in the world and plan to expand application and educational awareness of the lower VOC paint to more race teams.”
Chief Opens New Specification Center in Malaysia to Provide Customers with Better, More Timely Specs
Chief Automotive Technologies (www. chiefautomotive.com) opened a new training and specification center in Kuala Lumpur, Malaysia, with greater access to measure vehicles built in the Asia-Pacific region earlier in their life cycles. The facility will provide a home base for Chief staff to use when developing collision repair specifications, as well as a new location for Chief University training classes.
Chief Malaysia Spec Center Ribbon Cutting Team
Chief develops spec data for vehicles, giving technicians a single resource for accurate repair information. At the Malaysian spec center, Chief personnel will measure vehicles with the frames anchored and the suspensions unloaded to provide technicians with real-world data. “Many vehicle manufacturers operate out of Malaysia, so this center’s location gives us improved access to
their products for measuring,” says Lee Daugherty, Chief global data product manager. “It will also facilitate travel to India and other strategic locations in Asia, where we can remotely measure additional vehicles. Chief traveling measuring teams have operated in Malaysia over the last several years, and now they have the benefit of working in a shop outfitted specifically for their needs.” The Malaysian facility is equipped with a Chief impulse-E/VHT frame rack and a four-post vehicle lift. Using the Chief LaserLock live mapping system, technicians will measure new vehicle dimensions and enter the information into the Chief spec database. Chief specs include comprehensive frame and upper body measurements for thousands of cars and trucks from the 1970s through today. They include under-body frame measurements, under-hood measurements, and body openings, so repair technicians can compare a collision-damaged vehicle to OEM specifications. Details about targets, attachments, and anchoring points are also listed. Chief’s sales and support staff will also serve regional customers from the Malaysian training and spec center.
NACE/CARS 2014 Website Live, Hotel Reservations Open for Detroit The new website is now live for the International Autobody Congress & Exposition (NACE) and the Congress of Automotive Repair and Service
(CARS) (www.NACEexpo.com or www.CARSevent.com) at the Cobo Center in Detroit, MI, July 30–August 2, 2014. In addition, hotel reservations can be made through the Travel section of the NACE/CARS website. The 32nd annual NACE/CARS, sponsored by Automotive Service Association (ASA), will feature numerous opportunities for technical training, business education, demonstrations, networking, and technology showcases for stakeholders, owners, managers, and technicians in the collision and service repair industries. Along with NACE/CARS 2014, a series of automotive repair industry
events and co-located meetings will take place July 28–August 2, 2014. Dan Risley, ASA president and executive director, stated, “With so many new things happening around this long-standing conference and expo, it was important to roll out a new website. The event has so many positive changes in training, education, and displays, and they are now accurately reflected by this site.” Highlights of the new site include a modern look, easy navigation, quick response, and a parallel mobile site. Updates on the show can be found on the home page and via social media channels. The official hotel partner for NACE/CARS 2014 and Industry Week is Travel Planners. The best rates have been negotiated at nine hotels in the downtown area, and Travel Planners will manage those hotel blocks. There are other groups promoting hotel reservations during the week, but they are not affiliated with NACE/CARS.
60 MAY 2014 AUTOBODY NEWS | www.autobodynews.com
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Matrix System 2015 Finishes Calendar Contest
Matrix System Automotive Finishes is now accepting entries for its 2015 Award Winning Finishes Calendar Contest: Showcasing Color Beyond Imagination. Each year, the calendar features exceptional finishes designed by restoration, custom, and body shop painters nationwide. The competition is open to projects painted exclusively with Matrix System products. Entries can be, but are not exclusive to, street rods, custom cars and trucks, motorcycles, and other passenger vehicles such as semi-trucks, boats, and planes. Entries are judged on finish quality, technical difficulty, design originality, and artistic merit. Winners will receive a featured spot in the calendar, the opportunity to appear in various Matrix System promotional materials, a Matrix System jacket, and a permanent home in the Photo Gallery section of the website. In addition, the first place winner will receive $1,000 in products. All entries must be postmarked by August 15, 2014. Download the entry form at http://matrixsystem.com/docs/news/ 2015%20Award%20Winning%20Fi nishes%20Calendar%20Entry%20F orm.pdf.
KS Body Shop Temporarily Closed for Tax Non-Payment
A Haysville, KS, auto body shop was temporarily closed by the state for not paying state sales taxes. Kansas Department of Revenue civil tax enforcement agents and Sedgwick County sheriff’s deputies seized the business assets of Showroom Auto Motive, located in the 7400 block of South Broadway in Haysville. The Kansas Department of Revenue said the business owed $5,976 in state sales taxes from February to September of 2013. Officers seized all known bank accounts, on-site cash, business inventory and personal property belonging to business owners Samuel A. Valdez and Samuel J. Valdez. The Kansas Department of Revenue says it has reached a repayment agreement with the business. Assets seized by the department have been released back to the business. The revenue department said it made multiple attempts to collect the taxes owed before exercising a tax warrant. According to the Revenue Department, warrants such as this are served when all other collection attempts have been tried and exhausted.
Industry Week Fundraiser
The Collision Repair Education Foundation 13th annual golf fundraiser will be on Thursday, July 31, 2014, at the Northville Hills Golf Club in Detroit, MI, in conjunction with Industry Week meetings like the Collision Industry Conference (CIC), the annual Inter-Industry Conference on Auto Collision Repair (I-CAR), the International Autobody Congress and Exposition (NACE), and the Congress of Automotive Repair and Service (CARS). Funds raised assist the Collision Repair Education Foundation in providing support to collision repair students and school collision programs. The registration fee is $275 per player, which includes golf, lunch, dinner, contest holes, and more. In addition, you can sponsor the helicopter ball drop to win up to $7,000. You do not need to be present at the event to participate in the helicopter ball drop. To learn more, visit http://collisioneducationfoundation.org/2014collision-education-foundation-golftournament. For questions, email Brandon Eckenrode or call him at 1-847-4635244.
Limited-Time Promo on 2 New I-CAR Training Bundles
On April 16, 2014, I-CAR announced two new, limited-time training bundle promotions from the Intro to Collision Repair Series that are specifically tailored to employee career paths in the insurance and collision repair segments. “Providing staff with foundational knowledge on the repair process can have a positive impact on everyone involved—from the customer, to the repairer or insurer, to the business,” stated Elise Quadrozzi, ICAR director of insurance segment development. The Intro to Collision Repair Series includes an overview of vehicle parts and terminology, reading damage reports, and repair and refinishing processes. Training bundles are $273 each for a limited time and comprised of the eight most commonly-taken courses by the insurance and collision repair segments, including a popular courses at no cost. Each on-demand course takes approximately one hour to complete and has no expiration date. To learn more, visit www.icar.com/html_pages/training/intro_to _collision_repair.shtml.
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