Western May 2015 Issue by Autobody News

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VOL. 33 ISSUE 5 MAY 2015

Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller Who Was Killed Overseas

Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’

Carl and Marsha Mueller, retired body shop owners in Prescott, AZ, recently formed a foundation to help

Seven California auto body repair technicians have filed a lawsuit against G & C Autobody, a medium-sized MSO based in Santa Rosa, CA. The plaintiffs claim they were misclassified as independent contractors by the company

by Stacey Phillips, Assistant Editor

Kayla Mueller and her mother Marsha

those in need locally and internationally. The foundation, called Kayla’s Hands, was created in memory of their daughter Kayla, who traveled the world with a goal to end suffering. When Autobody News recently spoke to Carl, the former owner of Preferred Auto Body in Prescott, AZ, he and his wife Marsha were preparing for a trip to Dearborn, MI, to speak at the American Human Rights Council’s convention and accept an award in honor of Kayla. Kayla, a 26-year-old humanitarian aid worker, moved to the TurkishSee Kayla Mueller, Page 22

MS Attorney General Jim Hood asks U.S. for Probe of Steering of Customers By Insurers

See MS Atty General, Page 24

P.O. BOX 1516, CARLSBAD, CA 92018

Mississippi Attorney General Jim Hood has asked U.S. Attorney General Eric Holder to investigate allegations that some insurance companies’ are “steering” auto policyholders to certain repair shops and coercing those shops to use inferior replacement parts. The intent of those practices is to pad the insurers’ bottom line, Hood said in the letter dated March 13. Hood’s letter is part of a broad legal challenge to such practices and can be viewed at autobodynews.com. It comes during an election year in Mississippi in which the incumbent insur-

ance commissioner has a challenger. John Arthur Eaves Jr. of Jackson is the lead attorney representing 17 states thus far and 500 body shops across the nation in cases being adjudicated in the U.S. District Court for Middle Florida. The cases are being tried as multi-district litigation because of their similarities. A Mississippi case, Capitol Body John Eaves Jr. Shop Inc. et al v. file photo State Farm Mutual

Change Service Requested

by Jack Weatherly, msbusiness.com

by Stacey Phillips, Assistant Editor

five former G & C workers have joined the case, all alleging they were misclassified as independent contractors: Phil Bill, Jeff Edwards, Luis Mata, Jose Sanchez and Scott Steiner. According to the complaint, “Unlawful and unfair business practices included the failure to pay earned

G&C says suit is without merit, p. 10

and allege a violation of the CA wage and hour laws, unfair competition and unfair business practices. Joseph Lippard and Vaughn Medeiros filed the original complaint in the Superior Court of California County of Sonoma on March 17. They both worked at G & C as automotive technicians at the company’s Santa Rosa location. Since then, an additional

wages including overtime wages; the imposition of paycheck deductions and paybacks to Defendant from its workers for routine and ordinary business expenses for its automotive technicians’ shop space, equipment and other overhead costs.” “The case is essentially challenging G&C’s long-standing practice of See G&C Responds, Page 10

Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available by Colin Calvert and Todd Scherwin

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service Advisors employed by automobile dealerships do not qualify for the Section 13(b)(10)(A) overtime exemption under the federal Fair Labor Standards Act (FLSA). It is the first court to have held this way.

“Service Advisor” Status under the FLSA Section 13(b)(10)(A) exempts from the FLSA’s overtime requirements “any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a

nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.” Historically, this exemption has been extended to Service Advisors. Beginning in 1973, in the federal appellate decision in Brennan v. Deel Motors, Inc., and continuing to as recently as 2013 in the Montana Supreme Court’s decision in Thompson v. J.C. Billion, Inc., courts have uniformly held that Service Advisors are covered by that exemption. The Department of Labor’s Revision to its Administrative Regulations However, the U.S. Labor Department’s (USDOL) track record in this area has been inconsistent. At some times in the past, it has said that Service Advisors could qualify; at other See Advisors Non-Exempt, Page 33

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL ABARI-Supported Legislation Introduced to Rhode Island General Assembly . . . . . . . . . 61 American Honda Launches ProFirst Certified Program . . . . . . . . . . . . . . . . . . . 28 ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress . . . . . . . . . . . . . . . . . . . 70 Auto Salvage Yards in NC Searchable for Parts Pricing . . . . . . . . . . . . . . . . . . . . . . . 60 Automotive Art Refinish System Comes to the U.S. . . . . . . . . . . . . . . . . . . . . . . . . . 34 Axalta Announces Sale of Shares to Berkshire Hathaway. . . . . . . . . . . . . . . . . . . . . . . . . . 25 BASF Awards Employee and Salesperson of the Year . . . . . . . . . . . . . . . . . . . . . . . . . 60 BMW Settles FTC Charges that MINI Illegally Conditioned Warranty Coverage on Use of Its Parts and Service . . . . . . . . . . . . . . . 64 Buffalo, NY, Native Who Competed in WorldSkills Competition Discusses Lack of Education in Collision Repair Field . . . . . . . . . . . . . . . 58 Candidates Announced for 2015 SEMA Board Election; Online Voting May 13-June 9 . . . . 66 Car-O-Liner® Names New OEM Account

“Participating in the vehicle emissions inspection (VEI) program is one of the most valuable ways Arizona residents can help improve air quality and protect public health. I appreciate the diligence of ADEQ staff and the VEI contractor, Gordon Darby, who supported the AG’s investigation and helped bring this case to a successful end,” ADEQ Director Henry Darwin said. On March 19, Montemayor was sentenced to nine months in jail as a term of supervised probation and ordered to pay $10,000 to the Attorney General’s Anti-Racketeering Fund. Anyone who believes they are a victim of fraudulent business activity is urged to contact The Attorney General’s Consumer Protection and Advocacy Division by phone at (602) 542-5763 (Phoenix), (520) 628-6504 (Tucson), or toll free outside metro Phoenix, (800) 352-8431, or by email at consumerinfo@azag.gov.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

Alfred Matthews Buick-GMC-Cadillac . . .9 Audi Wholesale Parts Dealers . . . . . . . .56 Automotive ID . . . . . . . . . . . . . . . . . . . . .8 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .24 Axalta Coating Systems . . . . . . . . . . . . .71 BMW Wholesale Parts Dealers . . . . . . .67 Bob Smith BMW . . . . . . . . . . . . . . . . . .16 Bob Smith MINI . . . . . . . . . . . . . . . . . . .16 Capitol Subaru . . . . . . . . . . . . . . . . . . . .72 Car-Part.com . . . . . . . . . . . . . . . . . . . . .30 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .49 Chicago Pneumatic Compressors . . . .10 Chief Automotive . . . . . . . . . . . . . . .19, 23 Classifieds . . . . . . . . . . . . . . . . . . . . .68-69 Colortone Automotive Paints . . . . . . . . .18 Completes Plus . . . . . . . . . . . . . . . . . . .22 Del Grande Dealer Group . . . . . . . . .20-21 Diamond Standard Parts, Inc. . . . . . . . .15 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .53 Earnhardt Buick-GMC . . . . . . . . . . . . . .14 East Bay BMW-MINI . . . . . . . . . . . . . . . .33 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .25 Elk Grove Toyota . . . . . . . . . . . . . . . . . .48 Enterprise Rent-A-Car . . . . . . . . . . . . . .34 Equalizer Industries, Inc . . . . . . . . . . . .26 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .55 Galpin Motors . . . . . . . . . . . . . . . . . . . .43 Glenn E. Thomas Dodge-Chrysler-Jeep .11 GlobalJig North America . . . . . . . . . . . .31 GM Wholesale Parts Dealers . . . . . . . . .54 Honda-Acura Wholesale Parts

Search: Autobody News on Facebook 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. ©2015 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

COLUMNS Attanasio - Tracking Your Success (or Lack of) Using Google Analytics. . . . . . . . . . . . . . . . 42 Franklin - Story Power For Shops . . . . . . . . . . 44 Sisk - ARA Attends 15th International Automobile Recycling Congress . . . . . . . . . 50 Yoswick - SCRS Event brings shop associations together to discuss efforts, share ideas . . . 38 Yoswick - State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT . 46

Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . 65 CCC Information Services’ 2015 Crash Course Report . . . . . . . . . . . . . . . . . . . . . . 52 Chief Names Richard Perry OEM Liason Sales Manager . . . . . . . . . . . . . . . . . . . . . . 69 Chief University Introduces Updated Interactive Design Based Repair Course . . . . . . . . . . . 45 CIF Elects Jeff Peavy to Board of Trustees . . . 70 CO Police Devise Plan to Halt Hit-and-Runs with Body Shops . . . . . . . . . . . . . . . . . . . . 16 Consumers Pay Repair Bills with Openbay and Apple Pay . . . . . . . . . . . . . . . . . . . . . . . 64 Coverage of the 2015 Resolution Forum and Leadership Meeting at NORTHEAST™. . . . . 56 Fantasy Collision & Customs Focuses on 2010 Camaro. . . . . . . . . . . . . . . . . . . . . . . 51 GM Names BASF 2014 Supplier of the Year. . . . 66 Herbie, Hollywood’s Most Beloved Volkswagen Beetle, Sold at Barrett-Jackson, Palm Beach, FL, on April 17 for $32,100 . . . . . . . . . . . . 60 Honda Adds More Recalls on Takata Airbag Flaws . 66 Lawyers Picked to Lead Posts in Air Bag Lawsuits . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now. . . . . . . . . . . . . . . . . 26 LKQ 2015 ‘Get Green’ Winner Announced . . . 54 LKQ and Ford Renew Patent License Agreement . 34 LORD Fusor Joins NABC as Diamond Member . 44 Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks . . . . . . . . . . . . . . . . . . . . . . 32 Miller’s Optimized Welding System for AL Repairs . . . . . . . . . . . . . . . . . . . . . . . . . 65 MS Attorney General Jim Hood asks U.S. for Probe of Steering of Customers By Insurers . 1 NABC Awards for Distinction and Shop Image, Nominations. . . . . . . . . . . . . . . . . . . . . . . . 64 NABC Says “It Can Wait” to Students in Grad Season . . . . . . . . . . . . . . . . . . . . . . . 64 National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles . . . 69 New Data: U.S. Drivers Did 3 Trillion Miles Last Year . . . . . . . . . . . . . . . . . . . . . . . . . . 70 New GM Silverado Engineered for Better Serviceability During Collision Repair . . . . . 48 Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership “Salesman” Exemption; Section 7(i) Exemption Is Still Available . . . . . . . . . . . . . . . . . . . . . . . . 1 Nissan Expands Recalls Tied to Takata Air Bag Flaws . . . . . . . . . . . . . . . . . . . . . . . 66 Owner of El Paso, TX Body Shop Guilty of Deceptive Trade Practices; Ordered to Pay $2,000 to Victims . . . . . . . . . . . . . . . . . 51 PartsTrader Says Integration to Help Dealers Quote Parts . . . . . . . . . . . . . . . . . . . . . . . . 69 Progressive Plans to Charge Risky Snapshot Drivers More . . . . . . . . . . . . . . . . 69 Record360 App Documents Damages in One Step, Saving Industry Members Time and Money . . . . . . . . . . . . . . . . . . . . 62 Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’. . . . . . . . . . . . . . . . . . . . 65 Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager . 62 TX Driver Sentenced for Possession of 160lbs of Marijuana . . . . . . . . . . . . . . . . . . 48 TX Scam Artist Used Deceased MS Man’s Identity to Sell Truck . . . . . . . . . . . . . . . . . . 32 Waiting List for CREF’s 14th Annual Golf Fundraiser . . . . . . . . . . . . . . . . . . . . . . 29 Wedge Clamp Releases Anti-Static Device Called the Stat-Gun. . . . . . . . . . . . . . . . . . . 29 Willets Point Shops Settle Lawsuit, Vacate Queens, NY, to Allow Construction of $3 B Mall . . . . . . . . . . . . . . . . . . . . . . . . . . 54 WIN Educational Conference May 4–6 in Baltimore . . . . . . . . . . . . . . . . . . . . . . . . 13 Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award . . . . . . . . . . . . . . . . 40

On April 2, the manager of an emissions repair shop in Glendale, AZ, pleaded guilty to Illegally Conducting an Enterprise. Bani Montemayor, 31, admitted to using electronic devices to generate fraudulent results for motor vehicle inspections while working at Emissions Only LLC located at 7225 N. 110th Ave, Suite 9, Glendale, AZ. An investigation conducted by the Attorney General’s Office and the Arizona Department of Environmental Quality (ADEQ) revealed that Montemayor took payments from undercover investigators posing as consumers to repair vehicles that should not pass the state required emissions test. Instead of performing the appropriate repairs to correct underlying problems, the staff would install an electronic override device to create a false passing result. Undercover investigators confirmed the fraudulent activity was taking place in 2014. “The defendant violated the trust of law-abiding consumers who were seeking required vehicle repairs,” said Attorney General Mark Brnovich. “He put his personal gain before the health and safety of our community by bypassing laws that help keep our air clean.”

Indexof Advertisers

REGIONAL 1-800EveryRim–OEM Wheels Acquisition of Capital Wheels & Auto Salvage in CA . . . . . . 4 ASA-AZ Tucson Chapter Learns from BBB at 3/11 Dinner Meeting . . . . . . . . . . . . . . . . . 4 Assured Performance Hires Michael Quinn as Exec. VP . . . . . . . . . . . . . . . . . . . . . . . . 65 Attanasio - Aaron Clark from Assured Performance Gives SC-CAA Members the Facts . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Auto Battery Provider to Close CA Facility “After More Than Nine Decades of Lead Contamination” . . . . . . . . . . . . . . . . . 17 CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes. . . . 30 CA Department of Insurance Holds Pre-Notice Public Discussions Regarding Labor Rate Surveys & Anti-Steering Regulations. . . . . . . 9 CA EV Automotive Company Pre-Qualified for USPS Next Generation Delivery Vehicle . . . . 39 CA Judge Dismisses One Claim Against BMW, Upholds Two Over Alleged Sunroof Defect . 16 Da-Les Auto Body in Sunnyvale, CA Gives Away First Aid Kits to First 10 Customers. . . . . . . . 6 Glendale, AZ, Mechanic Faked Emissions Repairs. 3 Lawsuit Filed Against G&C Auto Body Cites Unfair Business Practices, G&C Responds ‘No Merit’ . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Mike’s Auto Body Donates 53rd Car at New Fremont Location . . . . . . . . . . . . . . . . 14 Owner and Auto Tech at Lakeport, CA, Shop Charged with Grand Theft, Insurance Fraud. . 8 Pacific Collision Equipment Company in CA Holds Classes in Damage Analysis & Aluminum Dent Repair . . . . . . . . . . . . . . . . 52 Pacific Elite Collision Centers in CA Promotes Shirin Hezar to CEO . . . . . . . . . . . . . . . . . . 60 Retired Body Shop Owners Form Foundation in Honor of Daughter Kayla Mueller Who Was Killed Overseas. . . . . . . . . . . . . . . . . . . 1 Service King Finalizes Autobody USA Acquisition . 4 Sierra Auto Body in CA One of 375 Shops Recognized for Being in Top Five Percent in Customer Service by Mitchell . . . . . . . . . . 6

Glendale, AZ, Mechanic Faked Emissions Repairs

Dealers . . . . . . . . . . . . . . . . . . . . .36-37 Hyundai Wholesale Parts Dealers . . . . .70 Kearny Mesa Subaru-Hyundai . . . . . . .45 Kia Motors Wholesale Parts Dealers . . .59 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Los Gatos Luxury Cars . . . . . . . . . . . . .28 Maaco Franchising, LLC. . . . . . . . . . . . .13 Maita Subaru . . . . . . . . . . . . . . . . . . . . .50 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .44 Mazda Wholesale Parts Dealers . . . . . .60 MINI Wholesale Parts Dealers . . . . . . . .66 Mitsubishi Wholesale Parts Dealers . . .61 MOPAR Wholesale Parts Dealers . . . . .41 Moss Bros. Chrysler-Jeep-Dodge . . . . . .7 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .51 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Puente Hills Subaru . . . . . . . . . . . . . . . .42 Riverside Kia . . . . . . . . . . . . . . . . . . . . . .4 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .39 San Bernardino Mitsubishi . . . . . . . . . . .6 SATA Spray Equipment . . . . . . . . . . . . . .5 Shingle Springs Nissan-Subaru . . . . . .32 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .29 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .38 Subaru of San Bernardino . . . . . . . . . . . .6 Subaru Wholesale Parts Dealers . . . . . .63 The Bay Area Automotive Group . . . . . .35 Toyota Wholesale Parts Dealers . . . . . .64 Urethane Supply Company . . . . . . . . . .12 Valspar Automotive . . . . . . . . . . . . . . . .27 Volkswagen Wholesale Parts Dealers . .57 Volvo Wholesale Parts Dealers . . . . . . .65

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 3

ASA-AZ Tucson Chapter Learns from BBB at 3/11 Dinner Meeting by Chasidy Rae Sisk

On Wednesday, March 11, the Tucson Chapter of ASA-AZ gathered at the Hotel Tucson InnSuites for an evening of networking and educational training. The chapter holds a meeting on the second Wednesday of each month. At the March meeting, Robert Boettcher and Alan Schultz from the Better Business Bureau serving Southern Arizona (BBB) were the guest speakers. With 30 people in attendance, Julee Baxley, State Chairman of ASA-AZ, notes that they received “a good response from attendees, and the information presented was really good. We talked about customer reviews as well as how the BBB handles complaints for both Accredited Businesses and non-Accredited Businesses.” The BBB recently started allowing customers to post reviews online, and have implemented a system to make sure that the comments are legitimate. BBB wants to ensure the individual posting a review is indeed a customer. Therefore, BBB reviews each reviewer’s email address and gives the business an opportunity to respond if desired. Baxley notes that

there are always mixed reactions from association members when it comes to joining the BBB, but attendees enjoyed the information presented. She believes it also served as a useful reminder to respond to any complaints logged with BBB since many shops don’t. The Tucson Chapter also encourages vendors to set up their own table so they can display any special information they wanted to share, plus gives each vendor a 30 second update before the speaker. The chapter began planning for a fun evening of GoKarting and networking on April 24, and they also discussed plans for ASA-AZ’s Automotive Training and Expo in June. ASA-AZ members also discussed their fundraising plans for their upcoming golf tournament on April 12, which benefits the JTED program, providing scholarships to deserving students. Baxley states, “We normally give out four scholarships each year, but my goal this year if that every student gets some form of scholarship to help them pursue an automotive education.” Baxley believes that holding monthly member meetings is very important because “it shows consistency

Norm Huniu and Billy Eordekian

of 1-800EveryRim–OEM Wheels. 1800EveryRim formally took over the 60-year-old company on March 23. “This is fantastic for Capital customers because of the impeccable service that my old friend Billy’s company has always provided,” said Huniu who went on to say, “I have worked hard running the family business since 1982 and it has gone into the right hands. I plan on playing, traveling and vacationing with

my beautiful wife Julie along with family and friends. But, the first thing I am going to do is grab a beach chair, an umbrella, a large iced green tea, and watch the waves crash on the beach.” Eordekian commented, “This is not like Carnegie steel selling out to J.P Morgan but for us in the specialized world of used and reconditioned OEM wheels it is huge, or at least for us it is! The best thing about this deal is that we have added more stock wheel pros to our staff making a total 24 great people. Maybe it will be 25 if my pal Norm gets bored with retirement!” 1-800EveryRim operates out of a 30,000 square foot warehouse in Pico Rivera, CA. (Los Angeles) and has been in business since 2007. Prior to that, Eordekian had founded USED RIM, Inc. in 1987 which he later sold. For more information, visit 1800EveryRim.com.

Service King Collision Repair Centers, a multi-state operator of collision repair services, announced further growth in southern California with the acquisition of Autobody USA. The Orange County expansion comes as Service King and Autobody USA officially finalized the partnership March 19. Under the terms, Service King officially acquires four Orange County locations and offers collision repair services at 14 southern California locations. Service King now operates 234 locations in 21 states. “This is a great step forward for both Service King and Autobody USA as we continue to provide customers in southern California with the very best in collision repair services,” said Alan Saviano, Service King Market Vice President. “We’re excited to bring Autobody USA and its great teammates on board and look forward to an exciting future.” Autobody USA first opened in 1998 and grew to four Orange County locations. The four collision repair facilities service nearly 600 vehicles per month.

@autobodynews1 Accept no Substitutes!

1-800EveryRim–OEM Wheels Acquisition of Capital Wheels & Auto Salvage in CA

An acquisition agreement has been consummated in California by longtime friends and competitors Norman Huniu of Capital Wheels & Auto Salvage and Billy Eordekian

Service King Finalizes Autobody USA Acquisition

to have our meetings at the same time and in the same place each month. It’s also a great opportunity for shops to network with vendors, and it creates a safe environment for members to discuss their frustrations and triumphs related to being in the industry. We’ve also recently changed our message to focus on the association’s goals being about the health of the whole business; we are here to train everyone from managers to service writers to techs.” These meetings always exceed Baxley’s expectations. “There are great questions posed and a lot of interaction between attendees. They may be tired when they arrive, but they quickly get into the meeting and learn something new each time they walk away.” For more information, check out the ASA-AZ website: www.asaaz.org, http://www.asaaz.org/ or call 602-5442600.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 5

Sierra Auto Body in CA One of 375 Shops Recognized for Being in Top Five Percent in Customer Service by Mitchell by Stacey Phillips, Assistant Editor

Sierra Auto Body in Grass Valley, CA recently received Mitchell’s 2014 Au-

toCheX Premier Achiever Award for exemplary customer service. Owned by Mike and Astrid Cebollero, the business was one of 375 collision repair shops across North American that was honored. “This is an important measure for shops in helping to make sure they are delivering a good experience to their customers,” Jim O’Leary, Mitchell’s Vice President of Product Management, recently told Autobody News. The company’s 13th annual Premier Achiever Awards honored repairers that consistently earned customer satisfaction scores in the top five percent of their programs measured by AutocheX. “One really important part of Mitchell’s AutocheX program is having a baseline of the same data collected so that we can compare one shop’s results to another and one in-

surance company’s results to another so they can benchmark themselves against the industry,” he said. Mike Cebollero’s family opened Sierra Auto Body in 1978. Mike and his wife Astrid have owned the shop since 2008. It is an I-CAR Gold Class Professional Shop with Platinum Individual technicians and currently employs two body technicians and two painter technicians. The company began using AutocheX when it signed its Direct Repair Network contract with CSAA Insurance in 1996. Cebollero said it has been great having a way of knowing how customers feel about their

we are running our shop is working for the customer,” he said. “We try hard to remember that a customer does not schedule a car crash into their week. We try to cater to each customer’s needs and keep the repair process simple and easy for them. We try to keep the interruption to their normal routine as minimal as possible.” Mitchell, a provider of technology, connectivity and information solutions to the Property & Casualty claims and collision repair industries, conducted the surveys by phone and on the web. O’Leary said, “There is one question that we believe is most indicative of the consumer’s experience with the repair; ‘Would you refer this shop to a friend or family member on a scale of one to 10?’” Based on the results of the surveys, Mitchell selected the award recipients, which represent 41 states and provinces across the United States and Canada. They Mike and Astrid Cebollero at Sierra Auto Body range in size from small, familyrun businesses to large consolidaprocess after a repair has been comtors. pleted. Sierra Auto Body also received “The AutocheX program keeps the award in 2009 and 2010. “It was us informed as to whether or not how awesome to find out that all of our at-

Da-Les Auto Body in Sunnyvale, CA Gives Away First Aid Kits to First 10 Customers

Subaru of San Bernardino

tention to detail and hard work to keep the repair process as painless and hassle-free for our customers has paid off with another AutocheX Premier Achiever Award,” he said. In addition to the recognition, the recipients receive a trophy, signage for their shops and access to a website that provides promotional materials and congratulatory messages from industry leaders. Nearly 4,000 Premier Achiever Awards have been presented since the program was launched in 2002. O’Leary said that 7,500 shops currently participate in AutoCheX. He said that some of the main advantages of the program include improved communication and loyalty with customers as well as maximizing repeat and referral business. “The benefit is providing them with very actionable, timely feedback that helps them to improve their operations,” said O’Leary. “It’s also valuable to the shops to have an objective third-party measuring their results and then use those results to make a case for receiving more business from their insurance partners.” For more information about Mitchell and the AutocheX program, visit www.mitchell.com.

San Bernardino Mitsubishi

Da-Les Auto Body, a full service auto body repair facility located in Sunnyvale, CA, launched a special giveaway on March 22. The first 10 customers who checked in on Yelp while waiting in

Laser Measuring System that gives accurate feedback when re-aligning a vehicle. “Our paint shop features three spray booths,” noted a spokesperson for Da-Les Auto Body, adding that each booth has a downdraft of clean, filtered, heated air for optimal painting conditions. “Once painting is complete, the paint is oven-baked, which is similar to the process used by vehicle manufacturers. This process creates a durable, high-quality finish.” For detailing work, Da-Les features two areas where panels are painted and polished. Vehicles are cleaned, including the tires. Da-Les Auto Body in Sunnyvale, CA operates The body shop has been named six frame racks the number one collision repair fathe lobby for their vehicles, received cility for the past four years by Cona free first aid kit. The first aid kits sumer Business Review. The Certified are designed to be carried in a car, Green Investment shop has a green program in place and is an award winand contain basic supplies. The owners of the body shop ner from the City of Sunnyvale for were inspired by their commitment “Outstanding Commitment to Envito safety to give away the free first ronmental Protection.” For more information, visit aid kits. The body shop features six frame racks and a “Chief Velocity” http://da-lesautobody.com/ 6 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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Owner and Auto Tech at Lakeport, CA, Shop Charged with Grand Theft, Insurance Fraud by Elizabeth Larson, Lake County Times

The owner of a Lakeport automotive repair shop and one of his employees have been charged with several felony counts of grand theft and insurance fraud after a state investigation found that they had billed for repairs they hadn’t made and overcharged for replacement parts. Jeff James Havrilla, 63, and Scott Allen DeWeese, 49, both of Lakeport, CA were arraigned on April 10 in Lake County Superior Court before being booked into the Lake County Jail and released. Deputy District Attorney Rachel Abelson said a visiting judge heard the case, as all local judges have disqualified themselves. Both Havrilla and DeWeese were set to return to court on April 24 for further arraignment, which Abelson said will give them the chance to hire attorneys. Havrilla is owner of Coach Craft Auto Body Repair and Towing Inc., located at 440 N. Main St. DeWeese works as an auto body technician at the shop. Havrilla and DeWeese each have been charged with five counts of felony grand theft and three counts of

felony insurance fraud, according to court records. Lake County News reached out to Havrilla at Coach Craft to offer him the chance to comment on the case. He did not respond to the request. Online Bureau of Automotive Repairs records show no disciplinary actions against Coach Craft, which has a valid automobile repair dealer license with the agency through Aug. 31. Abelson said the case began when Farmers Insurance launched an investigation into allegations that Coach Craft had billed for work it didn’t do. That investigation eventually was submitted to both the Lake County District Attorney's Office and the California Department of Insurance, Abelson said. California Department of Insurance spokeswoman Madison Voss confirmed to Lake County News that the case initially was brought to them by an insurer. While Daniel Breitbach of the Bureau of Automotive Repair acknowledged that the agency forwarded a case to the District Attorney’s Office, he declined to offer specifics because the case had-

8 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

n’t been adjudicated. “The Bureau of Automotive Repair regulates automotive repair and investigates consumer complaints,” said Breitbach. “We enforce the Automotive Repair Act.” Representatives from both the California Department of Insurance and the Bureau of Automotive Repairs sat down with Abelson at the onset to discuss the case, even before the investigation had been put together. As such, “This was a very unusual case for me,” she said. Between March 2011 and July 2013, it’s alleged that Havrilla and DeWeese billed for work they didn’t do and charged for specific auto parts but instead would use cheaper, inferior aftermarket parts, Abelson said. In one case, the shop was to have replaced a metal bar needed as a safety feature in a vehicle’s bumper. When investigators checked the vehicle, the metal bar hadn’t been replaced, according to Abelson. The five felony grand theft charges for each man are based on instances where the alleged theft totaled more than $950, Abelson said. Abelson said that $950 amount —or above—for a felony is a result of

last November’s passage of Proposition 47, which reduced some crimes from felonies to misdemeanors if they fell below that monetary threshold. Overall, the thefts totaled just over $7,500, Abelson said. The victims in the case are listed as Farmers Insurance, for false billings submitted between March 2011 and July 2013; Larry Fredricksen, August 2012; Vivian George, June 2012; Juan and Priscilla Ballentene, October 2012; and Diana Mongi, October 2012. Voss explained that one of the main ways the California Department of Insurance finds out about fraud is the way it happened in this case— from an insurer. Reports from consumers also are key, Voss said. “We do receive a lot of referrals from insurers and consumers letting us know they suspect that some fraud is going on,” Voss said. “At that point we will open an investigation.” Abelson said that, if convicted, Havrilla and DeWeese could face a maximum of five years in local jail, along with fines and probation. Autobody News thanks Lake County News for permission to reprint this article.

CA Department of Insurance Holds Pre-Notice Public Discussions Regarding Labor Rate Surveys & Anti-Steering Regulations by Stacey Phillips, Assistant Editor

The California Department of Insurance held two pre-notice public discussions in April regarding contemplated Labor Rate Surveys and Anti-Steering Regulations. Autobody News recently spoke to Geoffrey Margolis, Deputy Commissioner with the California Department of Insurance, about the discussions. Margolis said the informal discussions were held between the department and interested stakeholders in Los Angeles on April 3 and in Sacramento on April 16. Approximately 60-70 representatives from the insurance industry and the collision repair industry attended each. “The commissioner is considering issuing regulations that pertain to labor rate surveys and steering,” said Margolis. “The purpose is to ensure that the labor rate survey used by insurance companies to settle insurance claims are done in a fair and reasonable manner.” Margolis said the discussions were held to receive feedback from interested stakeholders about how to best address the issues.

“The department will then take the information it received at the prenotice public discussions as well as any other information it has on the issues and advise the commissioner as to whether or not to proceed to issue a regulation,” said Margolis. “We’re so early in the process we want a free flow of information between the department and those outside of the department.” The Department of Insurance outlined the benefits to the contemplated Auto Body Labor Rate Surveys Regulation and Anti-Steering Regulation below.

The benefits to the contemplated Auto Body Repair Labor Rate Surveys Regulation are:

1. The fair and equitable settlement of claims involving auto body labor repair rates. 2. Prevent insurers from improperly deflating claims using invalid labor rate surveys. 3. Provide consumers accurate, truthful, and consistent information during the insurance claims process when their automobiles are repaired at auto

body repair shops. 4. Provide clear and reliable standards to insurers for use when conducting auto body labor repair surveys. 5. Ensure that consumers are not forced to bear the costs of reasonable auto collision repair labor rates that go unpaid by insurers. 6. Ensure that insurers do not deflate auto body repair labor rates by biased sampling or surveying auto body shops with a discounted or lowered rate for which the insurer has previously contracted. 7. Ensure that insurers use specified consistent and pre-defined geographic areas so that shops within other geographic areas with lower labor rates are not included in the survey rate for the area in question. The benefits to the Anti-Steering Regulation are:

1. Prevent insurers from making untruthful and deceptive statements that unreasonably influence a claimant’s right to select their auto body repair facility. 2. Prevent insurers from making untruthful and deceptive statements dur-

ing the claims process when repairing automobiles. 3. Ensure that insurers not advise consumers that inspection of their automobiles will take longer if the consumer does not take their automobiles to a specific shop. 4. Ensure that disparaging and discrediting statements as to a record of poor service of a specific shop cannot be conveyed to consumers without specific documentation. 5. Set a reasonable time limit for insurers to inspect damaged automobiles to conduct an inspection of their automobiles in the fair settlement of claims. 6. Prohibit insurers from requiring consumers to drive an unreasonable distance to have their automobiles inspected for the fair settlement of claims.

The CA Department of Insurance welcomes suggestions for more costeffective alternatives to the regulations. Comments can be sent to: cdiregulations@insurance.ca.gov Autobody News will continue to keep readers updated about new developments about the regulations.

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Continued from Cover

G&C Responds

misclassifying all of their autotechs, the guys who do the body repair work and painting, as independent contractors under the law,” said Jeffrey Beeson of Beeson Terhorst in Santa Rosa, CA, who is the lead attorney for the plaintiffs. “Our position is that they should be classified as employees.” When they were hired, Beeson said his plaintiffs were told they could set up their own businesses; however, their lawyer said there was nothing closely resembling an independent business. “All of the economic realties of the plaintiff’s working relationship with G & C and their continued, ongoing dependence on G & C Auto Body as their sole source of income, demonstrated an employment relationship,” said Beeson. According to the complaint, the plaintiffs only provided automotive repairs for G&C customers, had virtually no contact with them and had no customers of their own. “This is completely contrary to G&C Auto Body’s fiction that plaintiffs ‘ran their own business.’ They had no customers other than those of G&C Auto Body and when they brought in a customer, G&C Auto Body made the assignment of the work, set the labor rate and amount to be charged and collected the payment from that customer. In short all customers were G&C Auto Body customers,” the lawsuit states.” In addition, Beeson said the shop purchased and supplied all of the parts, materials and supplies used in their work, determined which part would be installed on a customer’s car and controlled the details on how the work was performed and when it was completed. “Even though G&C required the plaintiffs pay weekly ‘rent’ for their work stall, G & C prohibited the plaintiffs from performing work for customers other than G & C customers at their workspace at the G & C shop,” said Beeson. The plaintiffs allege that “G&C Auto Body created an elaborate fiction in order to convince the employees they were independent contractors.” Although Lippard and Medeiros acknowledge signing documents saying they were independent contractors, they say they were in fact standardized forms used by the defendant when hiring auto body repair technicians. “…these statements were belied

G&C Attorney Daniel Beck Responds to Charges by Ed Attanasio

Daniel Beck is the attorney defending G & C Auto Body and is the managing partner of Beck Law, P.C. in Santa Rosa, CA. When Ed Attanasio spoke to Beck regarding the charges against G&C Auto Body, Beck said he is confident that the shop can successfully defend this action, as the plaintiffs have not suffered any financial damages as they are alleging in their complaint. “This is a case of unbridled greed. Five former independent contractors claim that they were employees of G&C, although they knew very well that they were independent contractors operating their own businesses. Each one of the plaintiffs/ claimants signed contract agreements each year they were contracting with G&C, stating and confirming that they were independent contractors and not employees. There were no gray areas there, and their roles were spelled out to them time and time again. Their company names were Lippard Enterprises, Vaughn Mederios Auto Body, etc.—and they had the ability to hire people to assist them in the repair jobs, and several of them did. They had individual business licenses that were issued through cities in which by actual practice,” the complaint states. “In fact, these statements were but thin veneers designed to gain advantage over the worker and gain a significant competitive advantage over other auto body repair shops.” Beeson said that as far as they have determined, G & C is the only repair facility in the area that classifies their technicians and painters as independent contractors. Founded by Gene Crozat in 1972, the family-owned and operated business has nine auto repair facilities in Northern California; Fairfield, Novato, Petaluma, Rohnert Park, San Rafael, Santa Rosa, Ukiah, Vacaville and Windsor. “No one else does it like G & C and its practices are contrary to industry practice,” he said. The plaintiffs claim that the “Defendant intentionally and unlawfully misclassified its automotive repair technicians performing auto body repairs as independent contractors to evade its obligations under California’s employment laws.” According to California Labor Code, any person rendering services for another is an employee. Labor Code 3351 states that an employee is “every person in the service of an employer under any appointment or contract of

10 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

they were operating; and they used all of their own tools, materials and equipment in repairing vehicles at G&C Auto Body. They were small businesses operating completely separate from the rest of the company. The plaintiffs are now trying to take advantage of the new trend in litigation; labor cases alleging misclassification and then damages for unpaid breaks and overtime. In the case here, the Plaintiffs and claimants should not be allowed to reap the rewards of having their own businesses, and then later claim they are entitled to any unpaid wages, and compensation for missed lunches and breaks. In fact, when they were contracting for G&C Auto Body they were making way more than they would have as an employee of G&C. Joseph Lippard made more than $350,000 annually during several of the years for which he worked with G & C, and the other plaintiffs all made much more than they would have made as employees. The plaintiffs in this case want to get paid twice. They were already paid handsomely for their work and now they want to “double-dip” for money they have already received. Based on the evidence that we See G&C Attorney Responds, Page 12

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 11

hire or apprenticeship, expressed or implied, oral or written, whether lawfully or unlawfully employed.” Beeson said that by classifying them as independent contractors, the company did not have to take out paycheck deductions, pay business expenses, social security, payroll taxes, Medicare or cover them under workers compensation for any job injuries. They also did not have to pay for overtime, breaks or anything else California law requires of an employer. The plaintiffs said they were required to pay for all of their own mandatory I-CAR training, their own tools and any helpers G & C required they hire, supervise and train. “G & C frequently then hired away these socalled ‘helpers’ after they were trained by the plaintiffs and made them G & C employees or contractors, thereby saving all the hiring and training costs,” said Beeson. He said that by not having to pay overtime, there were enormous costsavings for G & C, in the millions of dollars. Scott Steiner, the largest producer at the Santa Rosa shop, worked between 3,393-3,575 hours per year – all for G & C. He and the other plaintiffs averaged 65-70 hours per week,

Continued from Page 10

G&C Attorney Responds

have, we’re fairly confident that any judge and jury will be able to see that their case has no merit, there are no damages, and the plaintiffs/claimants are greedy by trying to take advantage of a successful business. Joseph Lippard worked with G&C Auto Body for seven years, and he often bragged to people that being an independent contractor allowed him to make more money, while controlling his hours and income without the restrictions of being an employee, according to Beck. In September 2011, Joseph Lippard provided comments for an article in Auto Body Repair News (ABRN) titled “Outspoken Entrepreneur Succeeds by Stressing Excellence and Value” by James E. Guyette, written about G & C Auto Body and its owner Gene Crozat. In Monday-Saturday, including holidays, 52 weeks a year. “Many worked after suffering onthe-job injuries for which there was no workers’ compensation coverage,” said Beeson. For example, Lippard injured his leg at work and continued

12 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

that article, Joseph Lippard confirms he is an independent contractor and that he is the owner of Lippard Enterprises. Lippard has had as many as six people working for him within the facility, where he rents two stalls. Some crews work day and night on big jobs. According to Lippard, he was very happy as an independent contractor, and he claimed “I never want to work hourly again,” acknowledging that he grosses $4,000 to $6,000 a week in the ABRN article. On April 14, 2012 Joseph Lippard posted on Facebook: “…Another Saturday at the shop!!! I love having free reign to work as much as I can!!!” Actual damages are paid for actual losses, but these plaintiffs lost nothing. In fact, they made many times more than what they could have possibly made as employees of G&C, and they enjoyed the lifestyle that came with owning and operating their own businesses.”

working while in a wheelchair. “One G & C manager then told him if he got injured again he would be fired,” said Beeson. “If they had been paid overtime pay as the law required, they would have earned substantially more income.”

Beeson said, “the pay appeared great on the surface because lump sums were paid with no tax withheld. Yet once plaintiffs stepped back and looked at their excessive work hours and did some calculations they realized if they had been treated as employees, their

compensation and employment conditions would have been significantly enhanced.” Beeson also said they were never paid for all of their hours worked and “G & C regularly dumped work assignments on the techs for which they got no pay at all.” He said many were left with large tax liabilities they did not anticipate or understand. He said Lippard never had take home pay of $350,000 (see accompanying sidebar p. 10) “This gives them a huge competitive advantage over other auto body shops and we allege in our case we think it’s an unfair business practice in California to engage in these kinds of tactics,” said Beeson, who has covered labor law for 33 years. “We’re seeking to have our clients be given all of the wages and overtime pay, premiums for meal breaks, rest breaks that they weren’t given for four years, which is the statute of limitations,” he said. “We’re seeking to have them classified as employees and then G&C to pay them the money they would have been paid if they had been classified as employees.” According to the complaint, G&C employed approximately 50

workers in 2012 that it classified as independent contractors. There were between 15-20 automotive technicians at its Santa Rosa location, some as independent contractors and others as employees. Beeson said that over the years the company has arbitrarily changed its classification of automotive technicians from employees to independent contractors and independent contractors to employee status with no changes in their job duties, work location or working conditions. “For example, Medeiros was at one time categorized as an employee and then was re-categorized as an independent contractor with no change in his essential work duties,” said the complaint. “Bigger shops like G&C are taking over the mom and pop smaller shops. This is all part of it. They save millions of dollars by not having to pay all of the compliance requirements for employment law that all of their competitors do,” said Beeson. “They should be treated as employees and given all of the protections of employees under California law.” The case is set for trial September 15, 2015. Autobody News will continue to report on its developments.

WIN Educational Conference May 4–6 in Baltimore

The Women’s Industry Network (WIN) announced the complete lineup of programming is now set for the 2015 Educational Conference Create and Cultivate, being held May 4–6 at the Baltimore Waterfront Marriott. The schedule of presenters includes some inspiring leaders from around the collision repair industry who have powerful messages to share. Building on Mike Anderson’s keynote address, Choosing Your Destiny, the mainstage program schedule includes: ● Change Makes Me Happy… Or is it the Other Way Around? by Paul Gange, Fix Auto USA ● The Sustainable Competitive Advantage by Jeff Peevy of I-CAR ● What the Future Holds for Our Industry by Susanna Gotsch, CCC Information Services Inc. ● Connected Cars/Connected Claims by Sean Carey of SCG Management Consultants LLC ● Time Management – There’s No Such Thing by Ruth Weniger of Powerful Business Strategies, LLC In addition to these topics, breakout sessions will include: ● Reality Marketing facilitated by Cheryl Senko of Cherly Senko Consulting ● Bridging Silos: Using Marketing

Concepts to Attract, Retain and Grow Talent facilitated by Sandra Herron of MiddleEdge Consulting ● Feedback: Giving and Receiving facilitated by Marianne Godwin & Natalie Lindsey, Mitchell International. “We are extemely proud of the program that has been assembled for the 2015 Educational Conference,” said Jessica Rob, co-chair of the WIN Conference Planning Committee. “This year’s program not only focuses on topics that are most requested by our members, but also showcases a diverse and talented group of individuals from within the collision repair industry.” Rounding out the three days of education will be the celebration of the 2015 Most Influential Women honorees, the Annual Scholarship Walk raising funds for the WIN Scholarship Fund, and the Annual Membership Meeting. Visit http://thewomensindustry network.ning.com/page/2015-confe rence or contact Jessica Rob at jessica.rob@akzonobel.com or Yolanda Sandor at yolanda.sandor @basf.com.

www.autobodynews.com C

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 13

Mike’s Auto Body Donates 53rd Car at New Fremont Location by Ed Attanasio

On Thursday, March 26, 2015, Mike’s Auto Body hosted a Grand Opening at its newest location in Fremont, CA. In addition to a ribbon cutting, Mike’s Auto Body presented a “new” completely refurbished car to Nicollette

as complimentary food and beverages, including a churro stand. After the ribbon cutting, Sal Contreras, the Marketing Director for Mike’s Auto Body welcomed the 200 people in attendance. CFO Ragen Ortland made a presentation about the history of Mike’s Benevolence pro-

Nicollette Paredes and her daughter Hailey with their 2015 Hyundai Elantra, donated by Mike’s Auto Body and presented during the Grand Opening of its new Fremont, CA location

Paredes and her daughter Hailey as part of the company’s ongoing Benevolence Program. This giveaway marked the 53rd car that Mike’s Auto Body has presented to admirable individuals, families and non-profit organizations since the program’s inception 15 years ago. Everything is donated, including the cars, parts, paint, mechanical inspections, tires and one year of insurance. The body and paint technicians at Mike’s Auto Body donate their time and talents to make these vehicles the best they can be. Hertz Rent A Car donated the vehicle, a 2015 Hyundai Elantra. The Mayor of Fremont Bill Harrison, ambassadors from the Fremont Chamber of Commerce and other dignitaries were on hand to participate in the ribbon cutting and celebrate the opening of Mike’s Auto Body’s 13th location in northern California. There was also music performed by the American High School band as well

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gram, followed by a welcome from Mayor Harrison and KK Kaneshiro, Chamber Director of Member Services. Then the big moment arrived when Casey Perkins at Hertz RentA-Car presented the Benevolence car to Paredes and her daughter. Paredes shed tears of joy when she saw the car roll onto the shop floor. In addition, Mike’s Auto Body donated one year of car insurance, Hertz Rent-ACar donated a car seat, and all sponsors contributed to gas gift cards and Easter baskets full of candy for Hailey. Mike’s Auto Body went through a stack of application letters to determine the recipient, as it does for all of its Benevolence presentations. The one that really stood out was written by Nicolette Beardsley, Eden Property Manager on behalf of Paredes really stood out. “In working with Ms. Paredes, I have seen that she is simply a young,

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single mother trying to give her daughter the best life possible. Ms. Paredes is a great resident and part of our community here at Eden House. Her rent is always on time and her home is clean and well-kept. Before her car was stolen, Ms. Paredes was attending school, but since had to drop out since she does not have transportation. I know that it if she had a working vehicle, she would be able to continue her education, as well as take on more clients at work to provide extra income for her family. The Benevolence Program through Mike’s Auto Body is a great opportunity and if awarded to Ms. Paredes, I know it would be benefitting a wonderful and deserving person.” Contreras is happy that the 53rd car went to a Paredes, for several reasons. “I read every letter that is emailed or faxed in for consideration for our Benevolence Program,” he said. “When I received Nicollete’s letter telling us about her story, I knew this was the type of recipient we wanted. She has the strength and fortitude to continue to try to better her life for her and for her family even

though it would have been easier to give up! I gave our Fremont’s team a handful of letters to read to select ‘their’ recipient. I was very happy to hear that our Team unanimously selected Nicollette!” In September of last year, Mike’s Auto Body acquired Central Collision in Fremont, CA, making the 30,000 square foot second-generation body shop its 13th location. With two locations in Concord and Walnut Creek and one in Lafayette, Pittsburg, Antioch, Brentwood, Richmond, Fairfield, Napa, San Ramon and now in Fremont, Mike’s Auto Body is well-known for being an outstanding business partner in every city where it serves the public. In addition to Hertz Rent-A-Car, Antioch Auto Center Hyundai and Finish Master were major sponsors. Other automotive companies helped in the refurbishment of the vehicle are Ann’s Auto Master & Max Auto Lab, Guaranteed Muffler & Brake, Star Autopia Car Wash, Wheel Repair Solutions, 3M Automotive, DGDG, Allied Auto Parts, D&A Bumpers, Central Towing and LKQ Corp.

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CA Judge Dismisses One Claim Against BMW, Upholds Two Over Alleged Sunroof Defect by Jenna Reed, glassbytes.com

A judge for the U.S. District Court for the Northern District of California has upheld two claims and dismissed one claim against BMW in a complaint brought against the company by two vehicles owners alleging a sunroof defect. The plaintiffs in the case are two BMW owners, Monita Sharma and Eric Anderson, who filed a class action lawsuit against BMW alleging their vehicles suffered water damage after the drainage tubes installed to pull water away from the sunroofs did not work properly. “This is a class action lawsuit brought on behalf of individuals [California residents who have owned or leased any BMW X5 series vehicles, X3 series vehicles and 5 series vehicles] … that were manufactured between 1999 and 2008. The plaintiffs allege that the class vehicles were manufactured with a serious safety defect that may cause the vehicles to lose power while driving, rendering them unmerchantable,” plaintiffs’ attorneys allege in the third-amended complaint. In her decision, the judge explains, “[P]laintiffs contend they have now alleged sufficient facts to support a finding that BMW was aware of the asserted

defect at the time plaintiffs purchased their vehicle. … The court agrees. “Specifically, plaintiffs now rely on a service information bulletin issued by BMW in February 2009, which predates plaintiffs’ respective purchases,” the judge writes. “The bulletin pertains to the E60 (5 Series) model, describes its subject as ‘various electrical problems caused by water ingress,’ and, in the portion of the bulletin titled ‘situation,’ states that ‘[w]ater ingress into the luggage compartment may cause various electrical problems or faults associated with [various specified components.]” The judge writes that the bulletin is “sufficient at the pleading state to show BMW’s awareness of the existence of the asserted defect prior to the dates on which plaintiffs purchased their respective vehicles.” While the bulletin only pertains to the 5 Series, the judge writes it is sufficient since both models involved in the lawsuit have the same asserted design defect. The judge also ruled that the statute of limitations for the complaint had not lapsed since the owners did not discover the alleged issue with the sunroof until late 2012 and early 2013, though they purchased the vehicle earlier.

For the third claim, BMW’s attorneys contend plaintiffs failed to state any facts to support a breach of implied warranty of merchantability. “Given that the plaintiffs purchased used vehicles covered by express warranties with durations in excess of three months, the duration of the implied warranty of merchantability applicable to each such vehicle is three months from the date of the sale,” the judge writes. “Consequently, Sharma purchased her vehicle in May 2009, the duration of the implied warranty of merchantability applicable to her vehicle ended no later than the end of August 2009, and as Anderson purchased his vehicle on March 12, 2010, the duration of the implied warranty applicable to his vehicle ended on June 12, 2010. “The court finds unpersuasive plaintiffs’ argument that where a product has a latent defect, the manufacturer breaches the implied warranty of merchantability on the date of the sale,” she writes. The judge dismissed the third claim for relief in favor of BMW; however, the other two claims by the plaintiffs were upheld. We would like to thank glassbytes .com for permission to use this article.

CO Police Devise Plan to Halt Hit-and-Runs with Body Shops by Ryan Severance,The Pueblo Chieftain

The Pueblo Police Department in CO and local auto repair shops are teaming up in an effort to help solve hit-and-run crimes. The initiative—dubbed the Pueblo Auto Body Alert Program— resembles a program started by the Denver Police Department last year. It creates a partnership with automotive repair professionals to assist with identifying hit-and-run damaged vehicles, according to a release police department sent out. Through the program, auto repair shops will receive email and/or fax transmissions from the police department traffic section/hit-andrun unit when they are investigating hit-and-run accidents. Police will provide as much detailed information as possible about the vehicle they are attempting to locate. Repair professionals can call the police department’s non-emergency number at 719-553-2502 or call the hit-and-run unit at 719-553-2521 or 719-553-2536. They can also email puebloautobodyalert@pueblo.us. Thank you to The Pueblo Chieftain for permission to use this article.

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Auto Battery Provider to Close CA Facility “After More Than Nine Decades of Lead Contamination” The United States and Exide Technologies reached an agreement on March 11 that calls for the manufacturer to close a battery recycling facility in Vernon, CA. Exide Technologies is also required to pay $50 million to clean-up the site and surrounding neighborhoods, which have been affected by environmental toxins for close to a century. The agreement states that the plant has produced a host of hazardous wastes, including lead, cadmium, arsenic and volatile organic compounds. “The reign of toxic lead ends today,” said Acting United States Attorney Stephanie Yonekura. “After more than nine decades of ongoing lead contamination in the City of Vernon, neighborhoods can now start to breathe easier.” Exide had planned to resume operations at the recycling facility as early as next month, but the agreement calls for the facility to be shuttered, demolished and cleaned up. Exide is also required to make expedited payments that will complete funding of a $9 million trust fund that will be used to clean up 216 nearby residences in the Boyle Heights neighborhood and the City of Maywood. The deal to close the recycling fa-

cility is contained in a Non-Prosecution Agreement (NPA). It is estimated that the Exide’s direct costs of compliance are well in excess of $100 million. These costs include the company walking away from recent improvements to the facility and incurring new costs for lead and plastic that must now be purchased to manufacture new batteries. The United States Attorney’s Office entered into the NPA because negotiations with the bankrupt company revealed that even the threat of a criminal prosecution would almost certainly force the liquidation of the company. The NPA opens the door to new funding for the company, which employs thousands of workers in the United States and around the world, and ensures that money will be available to pay for the clean-up of the Vernon site and several other toxic sites around the United States. “The agreements with the USAO and the Department should allow us to resolve key conditions to funding of the backstop commitment agreement, and to continue to pursue plan confirmation,” said Robert M. Caruso, President and Chief Executive Officer of Exide Technologies. “We recognize the impacts that closing the Vernon

Facility will have on our approximately 130 employees and their families. On behalf of the company, I thank them and the United Steel Workers Union for their commitment and dedication.” Without the NPA, prosecutors believe, Exide would cease to exist as a viable company and responsibility to clean up toxic sites like the recycling plant in Vernon would revert to governmental agencies. “The agreement with Exide ensures that the Vernon site will be permanently closed, while guaranteeing that the company will survive to adequately finance the clean-up of this long-suffering community,” Yonekura said. Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest, stated, “The closure of this facility is a victory for the residents of Vernon who have suffered from decades of toxic pollution. This historic action was made possible because of the tireless efforts of local community members, including parents, environmental groups and religious leaders. Today’s announcement shows that companies who fail to meet federal environmental laws will face serious consequences.”

In addition to the commitments to close the Vernon facility and pay for associated clean-up costs, “Exide admits that it knowingly and willfully caused the shipment of hazardous waste contaminated with lead and corrosive acid in leaking van trailers owned by Wiley Sanders Truck Line, Inc. and operated by Lutrel Trucking, Inc. and KW Plastics of California, Inc., from the [Vernon] facility to Bakersfield, California, a significant number of times over the past two decades, in violation of federal law. Each incident could be charged as a felony violation of the federal Hazardous Materials Transportation Act.” Exide agreed that it could be prosecuted for the felony environmental offenses it previously committed at any time over the next 10 years if it fails to abide by the terms of the NPA. A violation would include failing to adequate finance clean-up efforts at the recycling facility, a program that will be overseen by the California Department of Toxic Substances Control (DTSC). The company is requesting that the Bankruptcy Court approve the agreements as well as authorize Exide to close the Vernon Facility at a hearing scheduled for March 27, 2015.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 17

Western Associations

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

Aaron Clark from Assured Performance Gives SC-CAA Members the Facts with Ed Attanasio

Vice President of Technical Compliance for Assured Performance Aaron Clark imparted a wealth of useful information to the members of the California Autobody Association’s Santa Clara chapter on March 25 at Three Flames restaurant in San Jose, CA. In the restaurant’s lounge there was karaoke going on but in the main Vice President of banquet room Clark National Certificawas singing a tune tion for Assured that every body Performance Aaron Clark was the shop in the country evening’s featured should listen to— speaker certification is here now and those that don’t or won’t step up may be stepped over. Clark’s fast-moving presentation covered a lot of territory, with topics ranging from aluminum to the right welders to use, to rivets and everything in between. To distill his message, here are five deliverables Clark emphasized during his 45-minute talk, followed by a Q&A session.

1) You May Be Too Late Already Many of the OEs don’t offer protected territories for certified shops (Ford, for example), which means that the shop down the street may already be one step ahead of you on the road to certification. Assured has had nearly 2,700 shops that have already applied and are in the process of becoming compliant, so if you’re waiting for an invitation, here it is.

“You are late, but not too late if you jump on now,” Clark said. “Others are gaining a head start by learning to leverage the credentials and marketing edge they gain by becoming certified. However, shops are not locked out of most markets by most OEM’s. Therefore, shops can still get certified and protect their market position by leveraging the credentials and the powerful marketing advantage.”

2) CAFÉ is Here to Stay The politicians are trying to modify the stringent CAFÉ standards, but it’s not going to happen, which means our cars are going to have to get lighter and faster pronto. Ten years from now, The new chapter’s new cars will have President Ray to get 54.5 mpg, so Heldari, owner of Fix Auto South there is much work San Jose received to do. This is good a hearty welcome news for shops with from the SC-CAA the proper tools, famembership after cilities and training being announced by 2014’s President including certificaShawn Saidi tions, but not for those that aren’t prepared for this rapidly evolving segment of the industry.

3) Not All Will Make the Grade Not every shop is suited to repair aluminum vehicles and not every shop wants to. Not every shop covets certifications or is willing to get the required tools, equipment and training to get there. The fact is that nearly

40% of all the shops that apply for certification with Assured Performance don’t make it for varied reasons.

technology, consolidation and more discerning customers that can research any shop online with a few clicks of a mouse. If you can’t build trust with your customers, they will flee—stats prove that 60% of all consumers will switch to another shop within 12 months if they lose confidence in any way and not being certified to work on their car might definitely be one.

Jalene Welch associate field rep for CollisionLink and Marjo Brough, owner of Premier Wholesale Parts networked during the SC-CAA’s April meeting in San Jose, CA

Clark added that “It is a business development process that has a prize at the end and a return on investment for many years to come. Now it the time for shops to step up.” “Curb appeal” is becoming more important, as the collision industry continues to spruce itself up across the board, primarily in response to the new

4) Cars are Changing While You’re Reading This Within the last three years, carmakers have debuted new cars or redesigned existing brands 240 times, with Honda/Toyota, GM and Chrysler/Fiat leading the way. To meet CAFÉ standards, how many more of these debuts and redesigns will happen before they reach 54.5 mpg by 2025? You See Aaron Clark, Page 32

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Continued from Cover

Kayla Mueller

Syrian border in 2012 to work with Syrian refugees. She was abducted in 2013 after leaving a hospital and held captive by the terrorist group Islamic State of Iraq and Syria (ISIS) aka Is-

When Kayla returned from the refugee camps in Turkey in May 2013, she told the Prescott Kiwanis Club, “As long as I live I will not let this kind of suffering be normal, something we just accept.” Carl said his daughter was a prolific writer and kept daily journals from the time she was a senior in high

Kayla visited Carl in his body shop. She washed cars, ran errands, and helped out wherever she was needed.

lamic State in the Levant (ISIL). The Islamic State claimed she was killed by Jordanian bombers. Her family confirmed her death on Feb. 10 of this year, without commenting on the cause. Kayla grew up in Prescott. An active volunteer, she often helped at women’s shelters, local needs clinics and worked with youth. From the time she attended middle school, she volunteered for local Kiwanis Club events and homeless shelters. When she was a senior in high school, she received the 2007 Gold Presidential Volunteer Service Award for her work with groups such as Americorps and Big Brothers Big Sisters. In college, she set up the student chapter of Amnesty International at Northern Arizona University and organized a rally to raise awareness about genocide in Sudan. “She always had the heart to help and I always told her she had a gift from God and that she should use it,” said her dad Carl. “She was literally tormented by the suffering of mankind.” Considered by family and friends alike as a devoted humanitarian and activist, Kayla had previously worked with refugees overseas including Tibetans in India, Africans in Israel, and Palestinians in the Occupied Territories.

school. “One of her quotes was that she’s known for quite some time now what her life’s work is – using her hands to relieve suffering,” said Carl.That was what inspired her parents to name the foundation Kayla’s Hands. “What Marsha and I intend to do now is to move forward and do the things that Kayla couldn’t do on her own … without support and money,” said Carl. “We’re going to try to establish the foundation and fill the endowment so we can do the things that she gave her life to try to get done.” Their plans include traveling throughout the U.S. and abroad to spread the word about Kayla’s Hands. Last month, Carl attended a Kiwanis meeting in Farmington, NM, to thank the organization for its tremendous support. Carl is a past president of the Prescott Kiwanis Club. He and Marsha traveled to Madrid, Spain in mid-April to speak at a religious conference. “Everyone seems to be very interested in learning about Kayla so we’re going to try to introduce them to Kayla and thank them for the award,” said Carl. “… and promote Kayla’s Hands as much as we can so we can do the work that she was so desperate to have done.” Up until recently Carl and Mar-

22 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

sha ran Preferred Auto Body in Prescott. They sold it to Cameron Snow and his wife Erika in January 2014. Carl said the new owners have been very supportive of the Mueller family and are doing a great job with the business they ran for so many years. Carl said his first introduction to the auto body industry came in 1967 during his junior year of high school. He participated in a work program where he attended school for half the day and worked at a Ford dealership in Champaign, IL, for the remainder. He started out sweeping floors and keeping the paint room clean and eventually helped in the shop sanding and painting. He credits much of his learning from his peers. In 1981, he said business was slow due to the poor economy. Carl and the painter in the shop, Tom Gordon, decided to start out on their own and opened Preferred Auto Body. After renting a facility for three years, they purchased property in Prescott and relocated their shop. Tom sold his half of the business to Carl in 1998, which he ran with his wife and six employees until 2014. Now retired,

Carl and his wife can devote more time to Kayla’s Hands. “Our foundation is basically going to help suffering people, not just in the United States, but all over the world.” On the website created by her friends (www.forkayla.org) Kayla was quoted as saying, “It’s important to stop and realize what we have, why we have it and how privileged we are. And from that place, start caring and get a lot done.” There is an upcoming fundraising event being held in Tucson, AZ, on May 2: Celebration of Life and Fundraiser benefitting Kayla’s Hands. For more information call 520225-9786. There is also a Newsboys concert being held in Flagstaff, AZ, on May 24 to raise money for the foundation. For more information about Kayla’s Hands, email: carlmarsha muellerfamily@gmail.com or visit: www.kaylashands.org.

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Continued from Cover

MS Attorney General

Automobile Insurance Co. et al, faces a Friday deadline to be refiled after Judge Gregory Presnell sent it back “without prejudice,” meaning it could be resubmitted with changes. Eaves noted that in 1963 the Department of Justice entered a consent decree with insurance trade associations to halt the “steering” practice. That point is raised in Hood’s letter to Holder, which also states that “insurers are implementing programs which require the use of after-market parts or re-manufactured parts, without disclosing the use of such to consumers and in spite of the fact that such parts are not of the same like, kind and quality of the original equipment manufacturer. This practice risks both the safety of the consumer, as well as the integrity of any vehicle warranties that the consumer may have otherwise.” For example, Hood said, “body shops have reported to my office that they are pressured into accepting bids from [State Farm’s] . . . online system,” Parts Trader, “which “State

Farm requires its ‘Select Service’ shops to use for obtaining parts. “Body shops have reported to my office that they are pressured into accepting bid from Parts Trader for after-market or remanufactured part that are unsafe and far below the quality of the original equipment manufacturer.” Hood asked Holder to see if such practices not only violate the 1963 consent decree but also federal laws and regulations. Hood said on “Anderson Cooper 360” on CNN last month that insurers that use such practices attempt to “use their economic power to grind down working people.” He said in response to a question that he is “reviewing options” as to which actions he might take. State Farm issued this statement to the Mississippi Business Journal: “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service program while at the same time making it clear they can select which shops will do the work.” Meantime, the owner of Clinton Body Shop has the distinction of being a litigant against State Farm and also

24 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Republican candidate for state insurance commissioner. John Mosley is challenging twoterm Commissioner Mike Chaney in the Aug. 4 party primary. There are no Democratic candidates. Mosley would like to see changes in how the department is run, and how campaigns for the office are run. For starters, he said that if he is elected, he would ask the Legislature to prohibit campaign contributions from insurance companies. Turning to auto insurance, he noted that the department website states that “the most an insurance company shall be required to pay for the repair of a John Mosely vehicle . . . is the file photo lowest amount that such vehicle . . . could be properly repaired or replaced . . . within a reasonable geographical or trade area of the insured.” “Most insurance policies actually provide for greater payment than what is statutorily required . . . .” Mosley said in an interview that “you don’t know what a struggle that

is” to find one of those insurers that would pay beyond the minimum. He recommends changing the wording of the guideline and the state law it is based on to include a definition of “properly” by adding language to the effect of “adhering to all manufacturers’ specified repair procedures.” Also, he would like the see the licensing of body shops. Currently shops may voluntarily subscribe to the standards of I-CAR, or the Interindustry Conference on Auto Collision Repair, an international not-for-profit organization. Moving to another area, Mosley said that property and casualty insurance needs more transparency. He supports the latest attempt to pass what has been called the Clarity Act, which would make it easier to determine how insurers received in premiums and how much they pay out in each zip code. The effort was launched after Hurricane Katrina and coastal homeowner’s policyholders felt that they were paying a disproportionate share. He said that Chaney has been reluctant to support the measure till this election year. He said the information is available in the commissioner’s office, but “it’s not an easy task to look and see

what the losses are by zip code.” “These folks on the coast are still paying higher premiums 10 years after Katrina. And folks in the other parts of the state think their premiums are higher because they think they are subsidizing the Gulf Coast.” Chaney said that he “killed” two earlier versions of the act in the past because using the zip codes would have been too fragmentary. He said he and others started working on the bill last year and reframed measure, which also tracks claims and premiums by county. Gov. Phil Bryant signed House Bill 739 on March 13. If he were to become commissioner, Mosley, 61, acknowledged in response to a question that he could be seen as in a potential conflict of interest of regulating the auto insurance industry while depending on it. He agreed the best thing would be for him to put his business in a blind trust where he would have no dealings with it as long as he held office. Chaney, 71, is the 11th person to hold the position of commissioner since the department was established in 1900, he said. The department benefits from the stability of having a strong continuity,

Chaney said. He said that the body shops have some valid points about what kind of parts they use, “but in many cases the original parts are not as good some of the replacement parts they’re using. You have to worry about the safety of automobiles.” Meantime, the labor rates in Vicksburg, where he lives, are typically $50 to $55 an hour, Chaney said, adding, however, that in some cases department investigators have found that “shops are trying to get $70 to $75 an hour.” Chaney believes that the current outbreak of hostilities between body shops and insurers—at least in Mississippi—was fed by a horrendous hailstorm two years ago. The storm “did $500 million in damage from Vicksburg to Meridian in a band about 15 miles wide. A hundred and 80 million of it was in automobiles in the Jackson metro area. About 20 body shops were making all that money. That’s when our nightmare began with the body shops . . . which were billing without preauthorization” from the insurers.” “It basically was a spitting contest between the body shops and the insurance companies. We didn’t have

a lot of complaints from consumers. We were able to take care of them. John [Mosley] made a lot of money during that time.” As for contributions from insurance companies regulated by the state, he said his position is “you’ll still get good government whether you contribute to me or not.” He conceded that it takes a lot of money to run for the office. He’ said he’ll need $300,000 to $400,000 this year. As of Jan. 30, his campaign has received $136,084.13 and had cash on hand of $267,921.99, according to the secretary of state’s office. But in point of fact Chaney said: “We don’t take money from big insurance companies.” Otherwise, “if I see where I have to regulate somebody who has given me money, I’ll refuse it,” Chaney said. Or if someone is offering a campaign contribution to curry favor, “I’ll prosecute ‘em.” Mosley’s campaign was not started till late February, and so his first reporting deadline will be May 8.

Autobody News thanks the staff of msbusiness.com for permission to reprint their article.

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Axalta Announces Sale of Shares to Berkshire Hathaway

Axalta Coating Systems Ltd. announced on April 7 that an affiliate of Berkshire Hathaway Inc. has entered into a definitive stock purchase agreement with certain affiliates of The Carlyle Group for the purchase of a total of 20 million of Axalta’s common shares. The aggregate purchase price is $560 million, or $28.00 per share. Axalta will not receive proceeds from the sale of the shares. Berkshire Hathaway agreed that it would not dispose of the shares for 90 days following the sale. Axalta has agreed to provide Berkshire Hathaway with certain registration rights following the expiration of that 90-day period. The shares are being offered and sold in a private placement pursuant to Section 4 of the Securities Act of 1933, as amended. The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. “We are pleased to have Berkshire Hathaway Inc. take this share ownership position in Axalta,” said Charlie Shaver, Chairman and CEO.

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Limited Repair Data Has Little Impact So Far on Aluminum 2015 F-150, Insurance Rates Steady for Now

When news originally broke that the 2015 F-150 would have an aluminum body, there was speculation that the cost of collision insurance would go up because repairs would be more costly and require special body tools. But Ford has subsidized repair training and new tools for dealers with body shops to help ensure competitive rates. “It’s too soon to tell whether the new F-150 is going to have higher insurance losses than the previous generation model,” Russ Rader, spokesman for the Highway Loss Data Institute affiliate of the Insurance Institute for Highway Safety, said in a January interview with the Detroit News. “We’ll need to have enough of them on the road getting into enough crashes to gather data on repair costs.” Online insurance quotes from two Metro Detroit agencies priced the 2015 F-150 XLT anywhere from $27-$54 higher than a comparable 2014 model over a 6-month period. Of course, insurance rates vary greatly, and depend on a number of factors including age, location, driving history and past driving record, as well as credit ratings. Rader’s office conducted studies comparing aluminum-bodied luxury vehicles like the Audi A8 against their steel-bodied counterparts like a BMW 7 Series and found costs for aluminum vehicles were anywhere from 9 to 20 percent greater. “Since the F-150 is a mass-market, high-selling vehicle, it’s collision claim experience could be different,” Rader said. “As more repair shops become equipped and receive training to handle aluminum, the increased volume could drive costs down. In addition, Ford has stated that they have incorporated modular designs to facility replacement to damaged parts which may save on labor costs.” For now, motorists’ yearly insurance premiums for the 2015 aluminumbodied F-150 are about the same as for the 2014 steel model—good news for Ford, according to Hannah Lutz, writing for Automotive News. But premiums could change once insurance companies study accident repair data for the redesigned pickup. To set rates for 2015 models, insurance companies use the latest data they have—from 2014 model claims. It could take about a year or more to get repair and other data useful to set rates for the 2015 model, insurers say. “The cost to insure the F-150 may

go up, or it may go down,” said Progressive Corp. spokesman Jeff Sibel. “We won’t have [enough] data until we have claims experiences.” Insurance premiums won’t make or break sales of Ford’s highly profitable full-size pickup. They are about 10 percent of an owner’s operating costs in the first five years of ownership, Consumer Reports estimates. Ford is confident that insurance premiums for the new pickup will be similar to those for the steel model, even though some parts costs are higher, aluminum repair techs require special training and special repair equipment is needed. For instance, repairing a front door for the 2015 F-150 Crew XLT costs $1,020.95, a $166.02 increase from the 2014 model, says Consumer Reports. Ford expects insurance premiums for the 2015 model will remain under control, in part because company engineers designed the pickup so that repairs could be made to the aluminum body without replacing entire panels. “The 2015 Ford F-150 is designed so sections of the truck are easier to repair in the event of an accident, significantly reducing time of repair and saving costs,” Ford spokesman Mike Levine said. Spot checks by Automotive News show insurance prices for the 2015 F150 match those of the 2014 model. At Esurance, a unit of Allstate, quotes for 2014 and 2015 F-150 base models were exactly the same: $629.50 for six months for the same Ann Arbor, MI, driver and $649.60 for the same Birmingham, MI, driver. Progressive’s figures differed slightly. The Birmingham driver’s 2015 F-150 would cost $1,044.50 for six months of basic insurance, $39 more than that of the 2014 model. At Allstate, F-150 insurance rates change little from those of the 2014 model, spokesman Justin Herndon said. He agreed that insurers lack sufficient 2015 F-150 claims to provide fully accurate rates. As sales of the 2015 aluminumbodied truck increase, there will be more accidents. The vast majority of F150s being sold still are the previousgeneration steel-bodied pickups. In March, 21 percent of F-150s sold were aluminum, said Ford’s chief sales analyst, Erich Merkle. The number of 2015 pickups that have been built and shipped since production started late last fall is about

26 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

72,000, according to estimates by the Automotive News Data Center. Ford says the 2015 F-150’s insurance premiums will remain steady. Ford’s repair parts program “is going according to plan,” a spokeswoman said. The experiences of vehicles that recently switched to aluminum support Ford’s view. For example, insurance for aluminum-intensive vehicles, such as the 2004 Jaguar XJ, 2013 Range Rover and 2012 Audi A6, saw “no significant change” from the rates for the steelbodied versions of the previous model year, State Farm Insurance spokesman Dick Luedke told Automotive News. “Insurance rates represent only about 11 percent of the average cost of ownership for F-150 customers, while fuel and depreciation costs represent about 68 percent of ownership costs,” Ford said in a statement. “With improved gas mileage and a higher residual value expected from the use of advanced powertrains and high-strength materials, we expect cost of ownership for the all-new F-150 will remain similar to or less than today’s levels. Reduced repair times for certain major collision repairs are ex-

pected to help keep insurance rates competitive as well.” The new truck weighs about 700 pounds less than prior models, and can get up to 26 mpg on the highway — tops among all gas-powered full-size pickups. Because the F-150 is such a highvolume seller—F-Series has been America’s best-selling vehicle for 33 straight years—Ford offered dealers with service shops a voluntary Collision Repair Program that trains workers how to repair the new vehicle. Ford said more than 1,500 dealers have participated in the program as of January, which includes tooling upgrades that will cost between $30,000 and $50,000. Ford will chip in up to $10,000 in rebates to purchase equipment for aluminum repairs to any interested dealer with a service shop. “It is important to note that less than 50% of our dealers have body shops, although we expected that only 20–30 percent of our dealers needed equipment and training due to the larger volume of collision work those dealers do,” spokeswoman Elizabeth Weigandt said in an email to the Detroit News. “The majority of collision work (80 percent) is done by independent shops.”

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 27

American Honda Launches ProFirst Certified Program by Victoria Antonelli and Stacey Phillips

After more than two years of research and development, American Honda Motor Co. announced the launch of the ProFirst Certified body shop program in March. “Today’s vehicles are more complicated and more sophisticated with a higher degree of technology than ever before in the way they are designed, built and the materials used,” said Gary Ledoux, Assistant National Manager for American Honda Motor Co. “Honda and Acura are no exception.” Ledoux said collision technicans cannot repair “tomorrow-tech” vehicles with “yester-tech” knowledge, training, tools and equipment. “That’s what ProFirst Certified is all about—proper, complete and safe repair of Honda and Acura vehicles through proper training, repair information and equipment.” The program is open to independent and dealer-owned collision shops. To qualify, shops must be either an I-CAR Gold Class shop or a VeriFacts VQ or Medallion shop. In addition, shops must complete Honda/Acura-specific training hosted by I-CAR, meet tool and equipment requirements, meet facility requirements, and have a CSI system in place. “I think this is going to help raise the bar for all shops inasmuch as the quality of the repair they provide,” said

Ledoux. “With the advent of the unibody car in the early 1980s, technology changed dramatically and shops had to change to keep up.” He said the same thing is happening today. “But the person who will benefit the most, is the person who should benefit the most—the Honda and Acura owner when their car is repaired by a ProFirst Certified shop.” He added that car-building technoloogy is not going to stand still. He predicts that “Ten years... or maybe even five years from now, we may be driving cars that use a technology that hasn’t even been invented yet. ProFirst Certified will change and adapt with the collision industry and business needs of American Honda to help bring value to participating shops, and proper repairs for Honda and Acura owners.” “No brand earns more Top Safety Pick awards than Honda,” said Steve Osborne, Assistant VP of the Parts, Service & Technical Division. “It is only logical that we support safe and proper collision repair of our customers’ vehicles and that we identify repair shops that are certified to possess the necessary skills, training and equipment to perform those repairs.” During its development, the ProFirst Certified program involved people and departments with American Honda including parts marketing, service training, service engineering, and service publica-

tions. The company worked with several of their business partners, including Axalta Coatings, I-CAR and VeriFacts. I-CAR worked with Honda several years ago with the initial launch of the Honda ProFirst program. Gold Class was, and still is, the principle training requirement for body shops looking to get ProFirst Certified. “Partnering with Honda to bring a portfolio of training modules to the industry, and recognizing Gold Class designated businesses as a path to the ProFirst program builds upon what they have already been doing to help assure the total capability of a repair shop to perform complete, safe and quality repairs,” said John Bosin, I-CAR Director of OEM Segment Development. “Honda is one of the earliest and most significant contributors to I-CAR’s Repairability Technical Support (RTS) Portal and they continuously work with ICAR to ensure their information on the ‘RTS Portal’ is comprehensive and a valuable resource to the industry.” Verifacts shops are also eligible. “VeriFacts is excited and honored to be a preferred program partner for the Honda ProFirst Certified Program,” said Nancy Fiorino, the National Director of Sales for VeriFacts Automotive. “Honda clearly shares our passion for excellence, earning IIHS recognition as 2015 Top Safety Picks in virtually all vehicle categories.

“Similarly, VeriFacts VQ Medallion and VQ facilities are recognized by Honda and consumers alike for their sustained excellence in collision repair. These exceptional repair facilities open their shops to independent thirdparty verification, giving the vehicle owner complete peace-of-mind that their vehicle was repaired using the latest repair methods, technology and procedures—tested and backed by Honda and industry best practices.” She added that the program will help ensure a safe, smart and transparent repair process. Some of the benefits include a plaque for display plus free online access to all Honda and Acura service and repair information and parts catalogs. The shop’s contact information will be placed on the American Honda body shop locator website. Qualified shops will receive exterior signage, collateral promotional materials, and free access to a collision tech-line for help via telephone. The cost of the program will be $2,700 annually. A limited number of shops will be awarded ProFirst Certified status in select U.S. metro areas. Axalta Coating Systems will provide inspection services to audit shops initially and then on an annual basis to confirm consistent compliance with program requirements. For info, contact profirst@ahm.honda .com.

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28 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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Waiting List for CREF’s 14th Annual Golf Fundraiser

The Collision Repair Education Foundation’s (CREF) 14th annual summer golf fundraiser, taking place July 22 in Detroit, MI has sold out and a waiting list has been created for those interested in playing. Golfers will play a round of golf at the Arnold Palmer designed Northville Hills Golf Club and can register online. This fundraiser takes place in conjunction with the NACE and Collision Industry Conference (CIC) industry meetings being held that week in Detroit, and funds raised through this event assist the Education Foundation in providing support to collision repair students and their school’s collision programs. Additional registration spots are anticipated to open up and those who contact the CREF will be included in the event on a first-come, first-serve basis. Industry members not able to attend this event are encouraged to participate in the LORD Corporation sponsored helicopter golf ball drop that is taking part in conjunction with the event as one individual will win up to $12,000. Those interested in being added to the waiting list, should contact Director of Development Brandon Eckenrode at Brandon.Eckenrode@edfoundation.org/ 847-463-5244.

Wedge Clamp Releases Anti-Static Device Called the Stat-Gun Wedge Clamp Systems have released a new anti-static device called the Stat-Gun to solve a long-time body shop problem. The company said that even the best paint booths are vulnerable to the buildup of static electricity and its side effects: inconsistent lay down, mismatched blending, dark edges and patchiness. Static buildup—caused by routine body shop tasks like sanding, masking, tacking and panel wiping— can turn a vehicle’s exterior into a giant electromagnet, attracting so much dust, dirt and other airborne impurities that painters are forced to compensate. That usually means adjusting flow volume from one area to another, resulting in problems like over painting, running and sinking. The most common solution is anti-static wipes, but their added time, effort and ongoing material costs can penalize the average body shop thousands of dollars a year. Wedge Clamp’s Stat-Gun is a new solution that eliminates static on a vehicle by neutralizing imbalances in negative and positive charges on its surface. It does this by using built-in microprocessors and tungsten emitters that generate an invisible ionizing

spray that effectively neutralizes surface charge, according to a Wedge Clamp press release. “I couldn’t believe what a difference the Stat-Gun made, especially on silver and gold metallics,” said Dave

the base and clear coats. The vehicle is then ready to be painted. Battery power eliminates the need for cable and lasts for 12 hours. Instead of standing up, tiny paint globules now cling to the surface. Halos become invisible on the newly static-free surface, according to the press release. With their irregular static charges, plastic bumpers and grilles can present a problem. But once the static charges are eliminated and no areas are either attracting or deflecting paint particles, plastic becomes easier to paint. The Stat-Gun is also the only battery-powered antiThe Stat-Gun in action, removing static buildup from a static device approved for vehicle before paint is applied flammable environments, Naismith, Painter at Craftsman Col- according to the press release. It is delision. “I didn’t get any halos on signed to the highest safety standards, blends at all, and I never had to denib. as evidenced by its European ATEX Instead of adding a step to the process, approval for class 1 flammable area, the Stat-Gun actually removed a step including paint spraybooths. by eliminating the need for anti-static For more information about the wiping. I got my jobs done faster.” Stat-Gun or NitroHeat, call today at 1The Stat-Gun hooks up to the air 800-615-9949, email at nitroheat@ supply like a conventional blow gun wedgeclamp.com, or visit their webfor cleaning the vehicle surface before site at www.wedgeclamp.com.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 29

CA Body Shop Sees Almost 30 Percent Increase in Profit After a Year of Lean Processes lize her inventory management system. “There are visible indicators of lean and there are also some invisible M & M Paint & Body Shop in El Centro began transitioning to a lean shop indicators. Customers who get to see after attending a Sherwin-Williams Authe body or paint department can only tomotive Finishes (SWAF) “Ecolean see the visible indicators,” explained Course” about a year ago. Nuventory, the independent shop’s co-owner, an inventory management software soRosy Magos. “In a small town like lution for the collision repair industry, ours, most people walking into a body and 3M Automotive, also aided in the shop expect to see a dirty place where shop’s “lean journey,” which started 13 everyone is tripping over parts, untidy months ago. The course focused on technicians, etc. Our shop has never three central tasks that, according to been that bad, but focusing on the 5S SWAF, help increase profitability on part of lean has made us prouder to all fronts: allow customers to see their vehicles 1. Making sure everything is put during repair. The shop in general away in the correct place after each looks like a dealership.” job. Magos said her ‘internal cus2. Ensuring that all workers use tomers’ (employees) are the ones who an accurate amount of each material get to react to the individual indicators, in order to prevent waste. which include a more profitable shop, 3. Holding employees account- more money in the tech’s pockets, veable for their actions. hicles driving out in a shorter amount of time than before, and a lot less unThese three tips fall in line with the 5 happy customers. S’s—sort, set in order, shine, stan“Technicians are now more endardize, and sustain—that were em- gaged in what makes them money verphasized during the SWAF courses. sus moving around clutter to try and The California shop adopted and move a car, get a part, or find a part, or implemented Nuventory’s Standard worrying about running out of a speOperating Procedures (SOP), which cific material when you need it the most, etc.,” said Magos. “This translates to less frustration for them and less work for me.” Magos added that, not only are jobs completed a day or two ahead of the previously scheduled out date, but profit has increased 27 percent in the last year. “It took a good three months to start seeing real results and The lean process puts emphasis on organization and start calling ourselves ‘lean,’ labeling but one thing I learned at the allows them to manage their materials, Eco-Lean Courses from Sherwintrack usage, and streamline ordering to Williams was that this is a journey and “just-in-time” inventory, according to not a destination. Which Nuventory CEO Leslie Ross. means…we’re not there yet,” said “Using Nuventory’s technician Magos. “We’ve made tremendous usage tracking, M & M is able to gain progress ... but we’ll never arrive to visibility on materials per hour and perfection. Products keep changing, pinpoint where there might be waste, vehicles keep changing, and new ideas or needed training,” added Ross. on how to save time, space, materials, “There is no need to hand out and money keep popping up in your whole boxes of sand paper or gallons minds. Every new job is another chalof body filler,” and if too much waste lenge to pair up the right technician, is being produced by an employee, the with the right tools, using the right issue can be corrected in an efficient materials at the best price, getting the manner, explained SWAF sales asso- right parts undamaged and on time, ciate Hilary Castro. the right timing to get to paint, the Ross trained co-owner Rosie right time to have it washed and up Magos on how to most effectively utifront for the customer to pick up withby Victoria Antonelli, Online Editor

30 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

with a shop’s journey.” 3M Account Representative Armando Munguia has helped train each department on OE recommendations for tracking waste with a new program that the company has developed called Performance Analysis Tool (PAT). “Utilizing PAT, we were able to measure and control cost, capitalize on potential revenue opportunities, drive productivity, cycle time and CSI improvement, explained Munguia. “We created an Approved Product List (APL) based on 3M SOPs in each department. With the proper training, willingness and ability to make changes, our goal Color-coding helps identify what repairs are needed for was to increase sales-reduce each job cost and improve profitability.” consolidators growing at a rapid pace, it Magos offered the following adis vital for independent shops to become vice to shops looking to begin their as lean as possible. lean process: “M & M has had to rethink how ■ Inquire where to get the training. they run their business. The old tradiYour paint rep should be able to contional way of running a collision shop nect you to lean seminars offered all has changed dramatically,” said Casover the country. We were approached tro. “It is more important than ever to by Hillary Castro, our paint rep, reutilize trusted vendors that can assist garding attending Eco-Lean I Semiout disturbing their plans for the day, etc. We keep working at it. Everyone participates in the brainstorming of new methods, tips, tricks, etc. and we keep making progress day-to-day.” Castro explained that with insurance demands at an all-time high, as well as

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 31

nar. We were very glad we did. In fact, we were so excited about the whole concept of “lean” (not just the 5S part), that for the Eco-Lean II we also took with us our Production Manager and our Parts Manager all the way from California to Florida. The investment was well worth the cost. ■ Put your seat belt on and be ready for a rough ride. But if you concentrate on the PRIZE instead of the PRICE, the rough ride will be more bearable. Tough times don’t last, tough people do. ■ Be patient and persistent. The hardest thing is changing habits. If it’s hard to change your own habits, try changing all your team at once. Be very patient. As the saying goes, “A swift sea never made a skillful sailor.” Magos concluded, “I went about

this the hardest way. I knew I wouldn’t get a buy-in from the techs until they started noticing that there was any benefit for them; the typical ‘What’s in it for me’ mentality. As John Maxwell stated, ‘A manager says: ‘go,’ a leader says: ‘let’s go.’ I led the way by making many changes until there were measurable results, and then they bought into the concept. I’ve heard of shops doing this in a weekend. I don’t see how that would have been possible for us. Maybe just the 5S part, but the habit forming and the total buy-in takes time, patience, focus, a true love for what you’re doing and your people and perseverance.” M & M Paint & Body Shop is located at 503 E Main St, El Centro, CA 92243. To learn more about the shop, visit their website at: http://mmbodyshop.com/.

TX Scam Artist Used Deceased MS Man’s Identity to Sell Truck

A Texas man was sentenced to five years in prison for pulling off an internet scam that involved selling a non-existent 2003 Ford F350 using a deceased Mississippian’s identity. John Wiggins, 52, of Round Rock, TX pleaded guilty on April 15 in Lafayette County Circuit Court in Mississippi to two counts of Fraudu-

lent Use of Identity involving a Craigslist scam. He was ordered to pay full restitution of $3,500 to the victims of the scam, one a resident of Colorado and the other a resident of Oklahoma. Wiggins was able to obtain money from the victims who were trying to purchase the truck.

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Mercedes-Benz Recalls To Fix Tail Lights and Gas Leaks

Mercedes-Benz has announced two recalls that will see over 33,000 vehicles recalled. The largest of the two involves 30,141 cars that can suffer LED tail light failures. Mercedes-Benz says over 30,000 cars have LED tail lights that may not illuminate on the sides, a violation of U.S. federal safety standards. The automaker says the affected model years include the 2015 CLS 400 and CLS 400 4matic, 2012-2015 CLS 550 and CLS 550 4matic, 2012-2013 CLS 63, 2014 CLS 63 and 2014-2015 CLS 63P. Mercedes first learned of the problem in December 2014 during a routine quality check on CLS-class cars. An investigation found a possible problem with software coding, then a later investigation confirmed inaccurate coding caused the LEDs in both tail lights to fail. Dealers will make sure the LED tail lights keep working by updating the lighting controller software. Over 3,000 model year 2015 Mercedes-Benz C300 4matic and C400 4matic cars are recalled to fix gas leaks that could cause a fire. Mercedes says the fuel delivery module might not be properly attached to the gas tank. In addition, electrical wires used to connect the delivery module might have been pinched between the gas tank and the delivery module.

Aaron Clark

don’t need to be a mathematician or a car designer to know that today’s vehicles will be much different in a decade, and even two to three years from now.

5) The Age of Differentiation With so many players’ names on the scorecard, how do you stand out from the rest of the bunch? Unless you’re Mike Trout, you may need the right tools, equipment and training to get noticed by the consumers, community and insurance companies—all of which are crucial to the success of your business. When a consumer is doing its diligence and looking for the best shop to work with, certifications can surely be the tipping point and often are. In closing, Clark made the statement that, “Any shop will always be able to fix a vehicle wrong—but without the proper tools, equipment and training they will never be able to fix it right. Do you have what it takes? If so, make sure that the consumers know this and get certified.”

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32 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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Advisors Non-Exempt

times, it has said that they could not. At one point, USDOL issued an interpretative provision at 29 C.F.R. § 779.372(c)(4) in which it took the position that Service Advisors were not within the exemption. But after several courts nevertheless applied the exemption to them, for many years USDOL said that it would no longer dispute the issue. In April 2011, USDOL deleted Section 779.372(c)(4). In accompanying commentary, it said that the change was made to reflect its view that the exemption is limited “to salesmen who sell vehicles and partsmen and mechanics who service vehicles,” and that Service Advisors did not fall within this description.

The Ninth Circuit’s Ruling In Navarro, Service Advisors challenged the overtime exemption’s application in light of USDOL’s revision and statements. The lower federal court dismissed their claims, finding that they did fall within the Section 13(b)(10)(A) exemption.

On appeal, the Ninth Circuit first found Section 13(b)(10)(A) to be ambiguous on the issue. The court said, “It is not clear from the text of the statute whether Congress intended broadly to exempt any salesman who is involved in the servicing of cars or, more narrowly, only those salesmen who are selling the cars themselves.” The Ninth Circuit then evaluated whether it felt that USDOL’s revised administrative interpretations represented a reasonable reading of the exemption. Despite USDOL’s shifting positions, the Ninth Circuit found: Here, the Department of Labor has interpreted the statutory exemption to exclude service advisors by choosing the narrower definition of the term “salesman.” * * * [W]e conclude that the agency has made a permissible choice. The interpretation accords with the presumption that the § 213 exemptions should be construed narrowly. On this basis, the court concluded that the Service Advisors are not exempt under Section 13(b)(10)(A). The Court specifically acknowledged that its holding conflicted with decisions of the Fourth and Fifth Circuits, of several district courts, and of

the Supreme Court of Montana.

Practical Impact of the Court’s Ruling Employers in states outside of the Ninth Circuit should note that its ruling applies only within its jurisdiction. And while in the Ninth Circuit the case undercuts the Section 13(b)(10)(A) overtime exemption where Service Advisors are concerned, even there it does not mean that Service Advisors can never be exempt from FLSA overtime. The FLSA’s Section 7(i) provides another overtime exception for certain employees paid under a bona fide commission pay plan. It applies to an employee:

● Of a “retail or service establishment” (meaning a location 75% of the annual dollar volume of sales of which (i) is not for resale and (ii) is recognized as retail sales in the particular industry); and ● More than half of whose compensation for a “representative period” (of not less than one month) represents commissions on goods or services; and ● Whose regular hourly rate of pay for each overtime workweek is more than

1.5 times the FLSA’s minimum wage.

Of course, an employer must determine whether the applicable overtime laws of a state or another jurisdiction include any exception like Section 7(i), or whether any similar provision is different from Section 7(i) in important ways. Thus, although automobile dealerships in the Ninth Circuit cannot rely upon Section 13(b)(10)(A) for Service Advisors (unless Navarro is later reversed or overruled), it is possible that those employees can be exempt from FLSA overtime under Section 7(i). Those dealers should evaluate whether Section 7(i) provides a viable alternative. For more information, www.labor lawyers.com.

Autobody News thanks Fisher & Phillips LLP for permission to reprint their article.

@autobodynews1 Accept no Substitutes!

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 33

Automotive Art Refinish System Comes to the U.S. by Chasidy Rae Sisk

Some collision repair facilities in America may be noticing a new option in the selection of refinishing systems—Automotive Art has begun distributing their European paint line in U.S. markets over the past couple years. Glenn Camacho, President of Logicar, Inc., the company that distributes Automotive Art, states, “For the past ten years, we have been operating on the doorstep of one of the largest refinish markets, North America, and exporting to over 30 countries from our Miami distribution center. During this period, we have been restricted from selling our product in the U.S. due to licensing agreements with our primary factory, but a couple years ago, we acquired a stake in a European factory which opened up the ability to supply to the North American market.” Automotive Art is expanding throughout the U.S. and Canada, and their current focus is on the California market. They are achieving this expansion “by opening jobbers and giving them protected areas of distribution,” Camacho explains. They have also appeared at industry events to promote their refinishing line; in March, Automotive Art exhibited at AASP-NJ’s 2015 NORTHEAST Automotive Services Show. Their booth allowed Camacho and others to demonstrate the product’s usability and superior color matching technology. Automotive Art was founded in 1990 in Barbados, supplying the Caribbean market with the latest in European automotive paint. The company began as a distributor of Glasurit Refinish systems, but their founders saw a need to develop a complete line of products using world class technologies to target the industry’s value segment, while delivering high quality refinish results. Automotive Art’s website boasts that they are “one of

Caribbean’s best recognized brands with a reputation for high-quality products at exceptional prices;” however, “our brand and product line is new to the U.S. market, as we introduced the current Automotive Art product line to the U.S. market two years ago,” Camacho notes. The Automotive Art Refinish System was developed to offer body shops a complete line, from fillers to topcoats, of high-quality products under one brand, and factory testing ensures they achieve their mission of ensuring that all of their products work well together to achieve perfect results. Their world-class color documentation includes tools for accurate color matching, while their color formula retrieval software provides a listing of all vehicle manufacturers’ colors, and contains scale interfaces to ensure perfect color mixing in both their low-VOC and standard basecoat systems, along with a full line of ancillaries. The company also boasts minimal start-up costs, full technical support and in-depth product training. Camacho believes that Automotive Art distinguishes itself from the competition because, “We provide a European high-quality, low-VOC solvent basecoat refinish solution that is superior to what our competitors offer, that is positioned to deliver significant value compared to the established Abrands, while being competitive with value brands in the market. Since it is low-VOC solvent-based, it is very productive over water-base products, and shops do not need additional investment in equipment or training,” Camacho explains. “In summary, we offer a compliant basecoat system that shops will not need to change when legislation changes in their market, which enables large and small shops to save significant money AND get a superb refinish results. Our state-ofthe-art chromatic colour tool offers a

LKQ and Ford Renew Patent License Agreement

LKQ Corporation and Ford Global Technologies, LLC renewed their design patent license agreement, which was first entered into in April 2009. The license agreement grants to LKQ the exclusive right to distribute aftermarket replicas of Ford automotive parts covered by U.S. design patents. The renewal is on substantially the same terms as the previous agreement except that

the term now extends until March 2020. “I am pleased to announce the signing of this renewal,” said Robert L. Wagman, President and Chief Executive Officer of LKQ. “LKQ and Ford have forged a mutually beneficial relationship that helps ensure that consumers continue to have the choice between original equipment and non-OE automotive parts.”

34 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

best-in-class colour matching solution, while saving valuable time for our customers. Finally, our customers enjoy being vested in a truly comprehensive product range that boasts a line-up that starts from Body-Fillers through to Top Coats, which results in better overall performance.” Furthermore, Camacho believes Automotive Art’s customer philosophy is different because, “We do not buy shops and lock them into contracts with high prices. We want our brand to deliver value to our customer’s operations, allowing them to save money while delivering world class refinish results. In so doing our experience has been that we make our customers more profitable and competitive, and create true ambassadors for our brand, because their shops will save multiple times any upfront money given by the big brands over the course of the contract that they are locked into. We want our customers to use our products because they believe in the value and performance Automotive Art delivers; we don’t want to buy their loyalty, we want to earn it.” Camacho encourages anyone in-

terested in learning about or switching to Automotive Art to contact them at their toll-free number. “We have several programs to assist shops in setting up Automotive Art in their shop and in training their staff, and we will identify a jobber in their region that can supply their needs. Since our system is a user-friendly, solvent basecoat system and we offer superb colour tools to get the right colour match, the conversion is quick. A shop can be up and running with our new system in only a couple days.” So why would you consider switching to Automotive Art’s line? According to Camacho, “Our brand delivers colour matching solutions that rivals those of the big A-brands, while delivering outstanding refinish results, saving our customers money, AND making them more competitive; surely this promise is one worth looking into?” Automotive Art 1361 NW 155th Drive Miami, FL 33169 888-815-2278 www.automotiveartpaints.com

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Avery Greene Honda Vallejo

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Barber Honda Bakers field

661-396-4235 Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com

First Honda Simi Valley

888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com

Galpin Honda Miss ion Hills

800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 blemen@galpin.com

Honda Cars of Corona Corona

800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com AC U RA C AL I FO RN I A

Acura of Fremont Fremon t

888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com

Acura of Pleasanton Pleas ant on

888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com

Acura of Riverside Riv ersid e

888-701-0725 951-688-1500 Dept. Hours: M-F 7-8; Sat 7-5 Ricardo.pena@hendrickauto.com Mark.reed@hendrickauto.com Jason.torres@hendrickauto.com

Please contact these dealers for your Honda or Acura Genuine parts needs. C AL IFOR N I A

CAL IFO RNIA

C ALIF OR N IA

AR IZONA

Honda of Hollywood

Ocean Honda

South Bay Honda

Ho lly wo o d

S a nt a C ru z

M il pi ta s

Tem p e

800-371-3719 323-466-3205

831-464-1800

877-475-1142 408-324-7460

800-571-7019 480-421-4860

Dept. Hours: M-F 7:30-5 parts@southbayhonda.com

Dept. Hours: M-Sat 7-6 Jdodge@penskeautomotive.com

Dept. Hours: M-F 7:30-6; Sat 8-5 parts@hondaofhollywood.com

Honda of Oakland

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

Robertson Honda N o rt h H o l ly wo o d

University Honda

510-547-8047

800-508-3894 818-301-3511

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

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

800-585-8648 530-758-8770

Honda of Pasadena

San Francisco Honda

Dept. Hours: M-Sat 8-6; Sun 8-5 dfortier@uhdavis.com

Oa k la nd

P as ad e n a

S a n F ra n ci sc o

800-433-0676 626-683-5880

415-913-5125

Davis

N EVAD A

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

Dept. Hours: M-F 8-5:30 partsws@sfhonda.com

Findlay Honda

Kolbe Honda

Scott Robinson Honda

702-982-4260

R es ed a

800-735-1424 818-609-7441 Dept. Hours: M-F 7:30-6; Sat 7:30-5 carparts@kolbehonda.com

Larry Hopkins Honda Su n n y vale

408-720-0221 408-736-2608 Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com

Metro Honda Mo n t c la ir

800-446-5697 909-625-8960 Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com

C AL IFOR N I A

AutoNation Acura of South Bay

To rran ce

310-371-8320

Selma Honda

888-234-4498 702-568-3531

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

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

CAL IFO RNIA

AR IZON A

Chapman Honda Tuc so n

800-461-6744 520-202-5770 Dept. Hours: M-F 7-6; Sat 8-4 robertevenson@chapmantucson.com

AR IZON A

U TAH

Acura of Peoria

M o n tc l ai r

Pe o r i a

800-446-5697 909-625-8960

866-347-4507 623-792-2559

Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com

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

Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com

Cerritos Acura

Santa Monica Acura

Acura of Tempe

310-784-8680

Ce r r it o s

855-895-2678 562-207-0554 Dept. Hours: M-F 7-7; Sat 7-6 srandall@browningautogroup.com

Marin Acura C or t e M ad era

Dept. Hours: M-F 7-7; Sat 8-6 Scott.p@santamonicaacura.com NE VA DA

Mike Hale Acura Murray

800-292-4595 801-263-0202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com

Te mpe

866-455-6601 480-344-6703

S a nt a M on ic a

866-332-4950 310-449-0064

Dept. Hours: M-F 7:30-6 smiles@kengarff.com

Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com

Metro Acura

To r ra n c e

Og den

800-821-8797 801-627-6762

He nde r s on

M o nr ov i a

800-322-8540 626-932-5614

Ken Garff Honda Ogden

Dept. Hours: M-F 7:30-5:30; Sat 8-5 fsanchez@findlayauto.com

Findlay Honda Henderson

Selma

U TAH

L a s Ve g as

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

800-717-3562 559-891-5111

Tempe Honda

Dept. Hours: M-F 7-6; Sat 8-5 acuraparts@acuraoftempe.com U TAH

Jody Wilkinson Acura

800-77-Acura 415-927-5350

Findlay Acura

Dept. Hours: M-F 8-5:30; Sat 8-4 parts@marinacura.com

877-770-5873 702-982-4160

H e nd e rs on

Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com

S al t L a ke C ity

800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com www.autobodynews.com | MAY 2015 AUTOBODY NEWS 37

Industry Insight

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

SCRS Event Brings Shop Associations Together to Discuss Efforts, Share Ideas with John Yoswick

Collision repair association leaders from around the country met in Secaucus, NJ, in mid-March to share ideas and discuss state legislative or regulatory successes and efforts. The “2015 East Coast Resolution Forum,” an event sponsored by the Society of Collision Repair Specialists (SCRS) and the Alliance of Automotive Service Providers (AASP) of New Jersey, was held in conjunction with AASPNew Jersey’s NORTHEAST™ 2015 trade show. Ed Kizenberger, executive director of the New York State Auto Collision Technicians’ Association (NYSACTA), moderated the meeting and told attendees about the legislation his association is supporting that would prohibit insurers from requiring repair shops to use specific vendors or processes for the procurement of parts or other necessary materials. The bill (SB 1207) is similar to one introduced in New York in 2013, and to bills introduced this year in Illinois and Minnesota as well. Kizenberger also shared a letter he wrote to New York Attorney General Eric Schneiderman, asking him to view the February 11 “Anderson Cooper 360” segment on CNN examining insurer involvement in the collision repair industry. He urged Schneiderman to join other state attorneys general in either filing a lawsuit against insurers regarding some of their practices, or to join Sen. Richard Blumenthal (D-Conn.) in urging U.S. Attorney General Eric Holder to examine consumer steering and other insurer practices. Such efforts can pay off, Oklahoma shop owner Gary Wano said at the meeting. He said he was among a handful of repairers who met with representatives of his state’s Attorney General’s office last fall to discuss several issues, including “steering.” The timing, he said, was fortuitous. “The Assistant Attorney General looked at us and said, ‘Wow, that just happened to me,’” Wano said. “Her son had just been involved in an accident, and GEICO Insurance told her to go to a shop 20 miles away from her home, after she already said she had a particular repair facility she liked to

use in her neighborhood.” The information from the shops led Oklahoma Attorney General Scott Pruitt to issue a warning to consumers about steering, and to a subsequent public service announcement on the topic produced by the state insurance department. The phone number listed in the public service announcement connects consumers with a taskforce that can take verbal as well as written complaints from consumers. “This is the most action we’ve seen in Oklahoma since the early 1990s,” Wano said. SCRS’ Aaron Schulenburg said such efforts help those in other states as well; the Oklahoma public service announcement, for example, helped prompt a nearly identically-worded one in Montana. Legislation is a big focus of the Alliance of Automotive Service Providers (AASP) of Massachusetts. House Bill 857 would change two currently-required consumer disclosures. Under the bill, the current disclosure on any estimate that includes nonOEM parts would have to be in at least 12-point type rather than at least 10-point type; it would also be extended to say that use of such parts may void existing warranties, and would have to include notice of the consumer’s right to use the shop of their choice. The second change would require any insurer recommending shops to also tell the consumer verbally or in writing that, “Under Massachusetts law, you have the right to choose a registered repair shop of your choice. All registered repair shops must guarantee their repairs.” Another Massachusetts bill (HB 883), similar to one introduced two years ago, would require the state’s insurance commissioner to establish a minimum labor rate insurers must pay to shops based on the average of the hourly rates paid by insurers in five surrounding states (where labor rates are as much as $10 higher). The commissioner would have to review the minimum hourly rate once every three years. AASP-Massachusetts is also backing two other bills that will

38 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

make changes to the state’s Auto Damage Appraiser Licensing Board (ADALB). One bill would shift oversight of the board from the Division of Insurance to the Division of Professional Licensure. Jillian Zywien, executive director of AASP-MA, said all other state licensing boards are under that division, and the association believes the ADALB should be as well. The second bill (H 816) would add two additional members to the 5member ADALB. The board currently includes two representatives affiliated with the body shop industry, two affiliated with insurance companies, and a chairman (appointed by the commissioner of insurance) who is not affiliated with either industry. Under the proposed legislation, the state attorney general would appoint two additional board members, one representing the attorney general’s office and one representing consumers.

“The ADALB oversees all licensed appraisers in Massachusetts and is a place where repairers and consumers can seek remedy for improper repair appraisal negotiations,” Molly Brodeur, president of AASP-MA, said. “The Board’s current configuration has eroded its mission. There is also undue influence from the Division of Insurance, which further complicates the ADALB’s ability to act. Our legislative and regulatory agenda is focused on bringing order and functionality back to the ADALB.” Representatives from Connecticut at the meeting discussed the awaited decision in The Hartford’s appeal of the $34 million dollar judgment against the insurer in a class action lawsuit brought by the Auto Body Association of Connecticut (ABAC) and several shops in the state. The two sides in the case squared off before the Connecticut Supreme Court in January, with The Hartford appealing the Original BMW Parts

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2013 judgment that awarded repairers millions in compensatory and punitive damages after a jury agreed The Hartford suppressed labor rates through unfair trade practices. “There’s no specific timeframe, but my sense is probably within the next three to six months we’ll have a decision,” said attorney John Parese, though he is not personally involved in the case. With interest, a ruling in the shops’ favor would probably result in a net award of close to $40 million. Tony Ferraiolo, the president of ABAC, was asked at the meeting if he feels that’s enough to change the insurer’s behavior. “It’s taken 14 years since we filed the case to get to the final decision on this thing,” Ferraiolo said. “Even if they do have to pay that amount, can you imagine what they made by not having to change the way they do business for the 14 years?” Ferraiolo said the association also is supporting legislation (5655), introduced on behalf of a jobber in the state, that calls for clarification of state sales tax regulations on automotive paint. Ferraiolo said his state is one of five with a “double-taxation

issue, where we are paying tax to the jobber on paint-related materials, and then charging customers a tax on it on the other end.” Tony Passwater of the Indiana Auto Body Association said he has created a website (www.iHaveBeenSteered.com) and a toll-free phone number (855-No-2-STEERing) to allow consumers to decribe their interactions with an insurer related to shop choice. Passwater said consumers who may be hesitant to fill out a “complaint form” may be more apt to “share what their experience has been.” He said sharing the CNN story as well as others on social media is helping build consumer awareness. “I think we’re making some inroads with consumers, which is what we’ve never been able to do very well in the past because it’s hard to reach consumers,” Passwater said. “I really believe that social media is our equalizer.”

www.autobodynews.com

CA EV Automotive Company Pre-Qualified for USPS Next Generation Delivery Vehicle ZAP, an Electric Vehicle (EV) automotive company in the California Bay Area, received a pre-qualification notice from the United States Postal Service (USPS) on April 10 for its Next Generation Delivery Vehicle (NGDV). USPS will be working with ZAP to develop new energy efficient postal delivery vehicles.

should be done with completely new trucks or vans more suitably designed to be powered by clean energy. This latest Request for Information pre-qualified ZAP to participate in the formal response for proposal and to begin a trial with the new product in first quarter 2016. ZAP Jonway is working with a couple of large truck manufacturers and is in the process of finalizing its partnerships to support the repurposing of the truck’s body to meet the specifications for this USPS opportuA prototype for the USPS’s new delivery vehicle, which will be created with the help of ZAP, electric vehcile automotive nity. This repurposed clean energy truck will company have models in both ZAP had been working with electric as well as Compressed NatUSPS toward their green initiative ural Gas (CNG) to expand into the since 2009. ZAP was at that time se- US clean energy delivery fleet marlected as one of a few vendors to un- ket. After getting the products qualdergo trial to be selected to supply USPS with electric power train con- ified and type approved in the US version of their traditional USPS for the USPS, ZAP hopes to target trucks. After several years of trial, other delivery companies interested USPS decided last year that this proin the same kind of products for gram to adopt clean energy vehicles their fleets.

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Women’s Industry Network Announces Winners of the 2015 Most Influential Women in Collision Repair Award The Women’s Industry Network (WIN®) recently announced the winners of the 2015 Most Influential Women (MIW) in Collision Repair Award. The award recognizes women who have enriched the collision repair industry with their leadership, vision and commitment to excellence. The following four women were selected to receive MIW honors. They will be recognized at a gala dinner celebration held in conjunction with the WIN Educational Conference being held May 4-6 in Baltimore, MD. “The nominees this year showcased a breadth of responsibilities,” stated Russell Long, President of Change Innovations. “I was impressed with their dedication, creativity and accomplishments. The Award recipients reflect well-rounded profiles of achievement in their jobs, in the collision repair industry and in their communities.” Long’s organization, a business consulting and executive coaching group, was contracted as an independent third-party entity to conduct the interviews and select the honorees. “Each year, women from different facets of the collision repair industry are selected for their passion and commitment to progressive and positive evolution of the industry,” stated Denise Caspersen, WIN chair. “There is so much opportunity for women to have rewarding careers—the sky is really the limit for those with skill, creativity and a strong work ethic.” The MIW program’s charter aligns with WIN’s mission to “enhance the role of women in the industry.” For more than 14 years it has recognized more than 80 women for their professional accomplishments and for going beyond requirements of their positions to give back to their communities. “We are proud of the fact that MIW recipients are active and visible in the industry for years after they received Cheryl Boswell the MIW award,” said Margaret Knell, Director of Corporate Administration at I-CAR, a 2001 MIW Honoree, and Co-Chair of the 2015 MIW Committee. Established in 1999 by AkzoNobel, WIN acquired stewardship of the Most Influential Women program in 2013.

Cheryl Boswell Cheryl Boswell is constantly asking this question, “Can we do it better?” Boswell is the manager partner and CFO of DCR Systems, LLC in Duluth, Georgia, a company that develops outsourced, turnkey accident repair centers based on ‘lean manufacturing’ principles. Boswell provides strategic leadership for DCR Systems, overseeing the company’s financial functions while developing best practices. She is also a recognized Process Improvement (“Kaizen”) leader who has volunteered her time working with repairers and insurers on process improvement in both the United States and Canada in order to foster better relations for the benefit of the consumer. Embedded in the concept of lean is the principle of continuous improvement, which is why she’s always asking, “Can we do it better?” WIN said what is unique about Boswell is that not only does she have the insight to ask the tough questions, she has the ability to explain difficult concepts in a way that resonates for a diverse audience. When asked about what the MIW award means to her, Boswell said, “It means I have an obligation to push myself and ask, “What more can I do for the industry?” She is an active volunteer in her community and in the industry. She has lent her time to the WIN Membership Committee and the Collision Industry Foundation (CIF), where she has served on the Board of Trustees since 2013 and also serves as the organization’s treasurer. In March, she was Lauren Fix elected to the WIN board of directors. Said Petra Schroeder, a fellow CIF Trustee and WIN board member, “Cheryl is a doer—someone who makes things happen. Coming up with new and better ways to get things done, seems to be second nature to her. I have great admiration for her.” Lauren Fix Lauren Fix, President of Automotive Aspects Inc. in Lancaster, NY, said that she wants to educate drivers across America… and she’s doing it. Fix comes from a long line of automotive professionals and began working on cars at the age of 10. It wasn’t

40 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

long before she was immersed in the car culture, restoring and driving her own beloved rides. Fix soon realized that she might be able to share her “I can do that” enthusiasm to motivate others to think differently about vehicle maintenance and safety. Working as The Car Coach, Fix has become a nationally recognized automotive expert, author, spokesperson, media guest, keynote speaker, television car host, race car driver and ASE certified technician. A trusted Lisa Siembab car expert, Fix is a top woman in the automotive world and provides an insider’s perspective on a wide range of automotive topics and safety issues. In the past several years, Fix has expanded her audience across the country in person, print, and on-air to educate people about a wide-range of automotive topics and issues. Highlights of 2014 include multiple national appearances (CNN, Fox Business News, NewsMax TV, Arise America, HLN, Al Jazeera America, and Inside Edition) covering the latest trends in automotive technology, and information for consumers on proper car maintenance, travel and repairs. WIN said that Fix stands out among other automotive professionals because of her high visibility in the public spotlight, her strong drive to educate others and her unique role as a liaison between the repair shop, the automotive boardroom, and the average driver’s home garage. A recipient of multiple industry awards and recognitions, she said she is most proud of her credibility with consumers. Her contributions bridge the growing gap between specialized technology and the average driver. Fix said that she lives the saying posted over her desk: “Do what you love, love what you do.

Lisa Siembab Lisa Siembab, Owner of CARSTAR Berlin in Berlin, Connecticut, said she likes to “fight the status quo.” Eight years ago, dismayed with the friction and contentiousness of other collision repair groups in her state, she founded and served as Executive Director of the Connecticut Collision Repair Specialists (CCRS) Organization, with the goal of bringing all

constituents of the industry together in a more cooperative environment. Recently, CCRS became ASA Connecticut. Siembab entered the industry 20 years ago as a marketing professional with the CARSTAR organization, ultimately becoming Marketing Director for CARSTAR Corporate for over 225 locations. In 2008, she was drawn back to the shop environment, and is now overseeing day-to-day operations at the CARSTAR Berlin location in Berlin, Connecticut. “I’ve known Lisa for over 10 years,” said Dan Young, Senior Vice President of CARSTAR. “If I’m choosing sides for a team and I want to win, I’m picking Lisa. She’s professional. She’s competitive. She perseveres through tough times and can be as compassionate as any person I know.” WIN said her compassion is shown in the volunteer work she does to benefit the collision community and her local community. Siembab said she believes strongly in helping those who are often overlooked, especially where language may be the barrier. To this end, she volunteers at Literacy Volunteers of Greater Hartford, a non-profit organization providing adult literary services to the Greater Hartford Ruth Weniger Community, and teaches for English for Speakers of Other Languages (ESOL), a program that focuses on literacy and speaking skills to assist the student in entering the workforce. Siembab said she loves working with her students and providing them with the skills that will enable them to thrive and compete in the workforce. She has also served on the National Auto Body Council’s In-Language Committee, which focused on translating a glossary of collision industry terminology and translating it from English to Spanish.

Ruth Weniger When Ruth Weniger was asked, “What does it mean to be named a Most Influential Woman?” she answered, “I hope it means I’m leaving something good behind?” For those who have worked See WIN 2015 Winners, Page 45

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 41

Social Media for Shops Tracking Your Success (or Lack of) Using Google Analytics with Ed Attanasio

Body shop owners as a rule are adept at studying and interpreting all kinds of numbers and statistics, and that’s why the successful ones are very good at tracking their performance. They calculate each minute that goes into every vehicle and what exactly their profit will be at the end of each day. They know how to read Excel sheets and decipher the numbers and use them to refine their processes. It’s in their DNA and in a fast-moving, highproduction environment having useful numbers at your disposal is vital. So, when it comes to online marketing, website development and SEO, the average body shop out there wants to know where their money is going and how many customers they are engaging through the Web and other online endeavors. They want to know where the buck starts and ends, in clear terms and with data they can use. “I have been doing a blog now for eight months, but I have no idea whose reading it,” one shop owner told me recently. “People tell us they visit our website all the time, but how much time do they spend there and is it leading to new customers?” is another question pretty much anyone in the collision repair industry would want answers to. Body shop owners and managers have 1,600 different things going on every day, so worrying about their results through their online marketing efforts is probably issue #1,601. But, even if they’re making good money and the shop is full of cars, they’re always keeping both eyes on the bottom line. The worst thing for a body shop owner is to think he or she is not getting good value for his or her money. And that’s why Google Analytics can placate the troubled minds of collision repairers all over the world, because it provides real, concrete and undeniable numbers that can tell you whether you’re succeeding or floundering online. What exactly is Google Analytics? Google Analytics is a free web analytics tool that generates detailed statistics about activity on a website. On its website, Google explains that the system “helps you analyze visitor

traffic and paint a complete picture of your audience and their needs, wherever they are along the path to purchase.” As the world’s most popular web analytics tool, Google Analytics is currently installed on over 10 million websites, including 60% of the top 10,000 websites on the planet and 50% of the top 1 million websites in the world. Website owners use the service for two main reasons—it’s 100% free to use and also highly reliable. Another plus is the fact that Google made it as simple as possible, so that body shop people that are on the lower-tech side can quickly use it and make it a part of their overall online marketing package. To learn how to use it, there are a ton of very useful videos on YouTube. David Moore, owner of Collision Websites in Tulsa, OK, has been using Google Analytics for all of his body shop clients since day one and has used it as an invaluable tool for their success online. “When I show shops how it works, the light goes on,” Moore said. “It is a tool and if you really learn how to use it, you can do some great things with it. For instance, many of my clients use it to track the results of some of their marketing efforts, such as e-mail marketing, online ads and other promotions. By referring to Google Analytics right after sending out 2,000 email newsletters, for example, you can see if it works or not. If your traffic does not increase, then obviously you have to come up with a new approach. Maybe the graphics didn’t draw people in or maybe the timing of the newsletter was poor. Google Analytics can help you to re-calibrate your marketing, based on real results.” The reports you’ll receive from Google Analytics are many, but here are the main measurable factors that you will surely want to know and refer to often: ● A graph showing the daily traffic the website receives. ● The number of visitors who came to the site during a specific time period. ● The average number of pages that visitors viewed while on the site. (The industry average is approximately 1.8

42 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

pages.) ● Bounce rate: What a visitor does once they land on the homepage. If they leave the homepage without looking at any other pages, that’s considered a “bounce.” ● The average amount of time a visitor spends on the site ● Depicted in a pie chart, Google Analytics will tell you how much “Direct Traffic” you’re getting. This means that the user knew the URL, typed it in and hit “Enter.” ● Content View shows what pages visitors are visiting. Watch this section to measure how many people are doing what you want them to do, such as clicking on pages like “Locations,” “Map,” or “Blog.”

caught up in how many visits their site is getting and I tell them they should be more concerned about the quality of the visits,” he said. “When someone visits your site or your blog, how many pages are they looking at and how long are they staying on each page? If people are looking at your site for less than a minute and only visiting one page, maybe you need to re-design your site, so that people will stay for a while.” So, if information is key and the numbers tell the story, sign up for Google Analytics today and start knowing rather than guessing when it comes to your success (or lack of) online.

We asked Moore, What are the most significant numbers to be looking for when studying monthly Google Analytics reports? “Some body shop owners get all

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On Creative Marketing

Story Power For Shops

with Thomas Franklin

Most people think they know what “P.R.” means when they see it. Movies, TV, recorded music and other forms of entertainment rely heavily on promotion and most people think that P.R. is just a synonym for “promotion.” But the fact is P.R. stands for “public relations,” a very distinct aspect of marketing. The dictionary tells us “public relations” consists of “methods and means by which a person or an organization seeks to promote a favorable relationship with the public.” It is often confused with “publicity” which is the effort to get favorable mention is media and the press. Some shops create favorable public relations by holding events, sponsoring schools, sports teams and family oriented activities that will reflect well on the concerns and generosity of the shop. Very few are successful in obtaining broad media, publicity, and press coverage of their P.R. activities. The heart and soul of good publicity is the attention-grabbing story. Children, pets and traumatic experiences are some of the favorite subjects of publicity stories. This is where a typical shop could excel at adding powerful publicity to its spectrum of marketing tactics. Day in and day out shop estimators are presented with stories of accidents and driver and passenger trauma. Probably the majority of these stories are uninterestingly similar, but the occasional oddball story can be just what is needed to put a spark of life and interest into the shop’s marketing messages.

It’s well known that attracting repeated, ongoing visits to one’s website, will require regular updating with content that is attention-grabbing. A shop’s site that is heavily into promoting its state-of-the-art equipment and technical knowledge may be of interest to insurance executives looking for a DRP shop, or a dealership principal choosing an authorized collision shop, but few average drivers will pay much attention to this technical detail. But adding an additional dimension to the site with newsworthy stories of accidents, drivers and events could bring new, regular traffic to the site. There is a problem in getting a goal like this realized in most shops. Estimators are focused on getting the necessary information needed to present the estimate, capture the job, collect the keys, and then get the job in process. Adding a requirement to draw out the accident story could be regarded as interference with their job or just a waste of time. The entire process has to be made painless and trouble free. Fortunately today’s smart phones all have a memo-recording feature. All the estimator need do when the conversation begins is switch on the memo-recording feature on his or her smart phone. If desired, the customer can be asked to listen back to check for any errors in understanding. Or the story can be forwarded to the shop’s marketing person to see if the story really has P.R. potential and to clear it with the customer for use on the shop’s site and other media. Customers that don’t ob-

LORD Fusor Joins NABC as Diamond Member

The National Auto Body Council (NABC) announced the addition of LORD Corporation, manufacturer of aftermarket repair adhesives, to its top-tier Diamond level membership. LORD Fusor joins 31 Diamond members and nearly 300 total National Auto Body Council members across the country who donate time and resources for community service programs that help change lives and impact thousands of individuals. “We enthusiastically support the National Auto Body Council’s vision and mission. They are a perfect complement to our company’s core beliefs and

citizenship initiatives to contribute positively in the communities where we work and live,” said Tim Jackson, Regional Manager/I-CAR Liaison at LORD Fusor. “We look forward to collaborating with our colleagues to promote the positive impact our industry makes in local communities nationwide.” NABC members represent companies from all facets of the collision industry—independent body shops, MSOs, insurance companies, rental car companies, parts and material suppliers and manufacturers, and industry consultants.

44 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

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

ject to the use of their story may also be willing to provide photos, or allow shop photos of their vehicle along with the story. At this point the entire story may be appropriate for YouTube, Facebook and other media. While the customer stories can provide good update content for media, weekly or monthly, another story has great potential to build customer loyalty. Most shops were started by one person or siblings or by an entire family. Very often that story is one of overcoming difficulties and possibly even hardships to arrive at the thriving, stable enterprise it is today. It is often a story of help received, from family, friends, suppliers and even potential customers. People are drawn to stories of perseverance and deeply felt caring. An effective story can make the viewer feel he or she is a participant in the struggle and trauma that evolved into the customer friendly business that it has become. I recall one shop that had

photos of three generations that built the business posted in the waiting area. Naturally these photos on the website and related media will add great depth to the story. Of course this story should have a special, permanent place on the shop’s site, but it can have even more P.R. value if it is told to audiences whose members’ vehicles could one day become jobs. Owners who belong to chambers of commerce, civic government or social groups, or other organizations that meet regularly, could have an opportunity to tell their growth and development stories. Especially young people with an entrepreneurial bent can be inspired by speakers willing to talk about their struggles to get where they are today. The purpose of P.R. is to promote a favorable relationship with the public. There’s no better way to create a favorable impression than telling an inspiring or entertaining story.

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Continued from Page 40

WIN 2015 Winners

with Ruth Weniger, her influence is unquestionable. Said Denise Caspersen, WIN’s Chairwoman, “Working with Ruth is an opportunity to learn from a mentor, a professional coach, and an outstanding leader with great integrity, composure and diligence. Ruth’s attention and dedication to what she believes in is beyond measure.” Weniger is the CEO of Airbag Solutions in Ivins, Utah, the leading restraint system resource in the country and an early adopter of all on-line information delivery for the collision industry. The company regularly donates subscriptions of their content to technical schools and colleges around the country. She has also become a recognized presenter in the industry on such topics as personal development planning tools for CEOs and time management. Weniger has been a tireless volunteer for WIN who has taken an active role in the Conference Committee and Communications Committee for several years, serving as the Chair of the Communications Committee since 2011. She

has also been a member of the WIN board of directors since 2011. In her various roles within WIN, she is viewed as someone who knows how to lead without pushing others aside, and who has also raised the level of professionalism within the organization by being herself. She also serves on the Collision Repair Education Foundation (CREF) Scholarship Selection Committee. A woman of many professional accomplishments with exposure to influential leaders within the industry, she said she is inspired most by those who persevere, even in the face of adversity. As a long-time volunteer with organizations that assist victims of domestic violence and rape, she is moved by the spirit and accomplishments of the people who are served by these organizations. For more information about WIN and the 2015 WIN Educational Conference, visit www.womensindustry network.com.

www.autobodynews.com CHECK IT OUT!

Chief University, the training arm of Chief Automotive Technologies and Elektron, has updated its Design Based Repair course to cover the advanced metals and construction methods used in today’s vehicles. The new course is offered as part of Chief University’s 2015 schedule, which includes more than 80 collision repair and estimating classes held across the country. “Design Based Repair, one of our flagship courses, provides an indepth look at new vehicle materials and design,” said Ken Boylan, global training manager. “The information presented better equips collision repair professionals to return damaged vehicles to original specifications. Since OEMs are continuously utilizing new metals and manufacturing techniques, the Design Based Repair course must be regularly updated with new procedures.” Changes to the Design Based Repair course for 2015 include the introduction of new sections covering advanced high-strength steels and structural aluminum. In addition to providing an overview of the grow-

ing uses of these metals in vehicle construction, Design Based Repair includes proper welding techniques for each. The updated content focuses on new vehicles up to and including the 2015 model year. The two-day course also features a new presentation designed to maximize attendees’ time in the classroom. “We completely revamped the Design Based Repair presentation to be more interactive, so technicians, estimators and appraisers leave with a better understanding of the vehicles they are going to encounter in their shops this year and beyond,” said Boylan. The fee for the course is $655, which includes training materials and a certificate of completion. For a complete schedule, visit www.chiefautomotive.com/ChiefUniversity. Call (800) 445-9262 for more information. Chief is active on Twitter, www.twitter.com/ChiefAutomotive and Facebook, www.facebook .com/ChiefAutomotive. For video, visit Vimeo channel, http://vimeo .com/groups/chief.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 45

Historical Snapshot

State Farm’s Service First Program, NABC, MT Requires DRPs, Unfair Trade in CT with John Yoswick

20 years ago in the collision repair industry (April 1995) Members of the Automotive Service Association (ASA) Collision Operations Committee are optimistic about “Service First,” an enhanced claims handling program introduced by State Farm. According to a State Farm news release, the pilot program was scheduled to be introduced in several states by mid-May. It would streamline auto damage claim handling and repair processes, allowing customers to go directly to qualified facilities for inspections and estimates without visiting State Farm drive-in claim service centers. The news release states that the program would also allow repair facilities who discover damages after the initial estimate to make repairs without reinspection by State Farm claims staff. “We don’t think another inspection is automatically required when the work is being performed by a well-qualified expert with whom we have a solid business relationship,” said Bill Hardt, State Farm assistant vice president of claims. “We see this as a very progressive and much needed addition to the process to provide quality repairs for the consumer, and believe it supports the historical focus of all honest and ethical repair facilities,” said ASA’s Collision Division Director Russ Verona of East Rockford Collision Center in Rockford, IL. – As reported in Collision Expert. State Farm continued the “Service First” program for about a decade, but by 2001 had already begun rolling out “Select Service,” the program that eventually succeeded “Service First.” Verona died in 2006 at the age of 73.

15 years ago in the collision repair industry (April 2000) On the same evening that ABC’s “20/20” news program was blasting the collision repair industry for consumer deception and insurance fraud, a Kansas City family received the keys to a new home built by industry volunteers. In a presentation during a Collision Concepts reception, Massachu-

setts shop owner Chuck Sulkala said the project, coordinated by the National Auto Body Council (NABC) and Habitat for Humanity, was a public demonstration of the many positive

ingly passed a bill that requires insurers to admit any qualified collision repair shop into their direct repair program (DRP). Senate Bill 388, which was signed by the governor, is intended to help ensure that non-DRP shops can compete with DRP shops for customers, and is in some ways an anti-steering law because it will remove barriers that can develop from DRP relationships. “I think it will go a long way toward leveling the playing field,” said Gene Dziza, Chuck Sulkala led a National Auto Body Council (NABC) owner of Collision Craft in project in 2000 to build a Habitat for Humanity home for a Kalispell, MT, who pushed family in need. The NABC raised $67,000 in donations for the project, and more than 300 volunteers from the indusfor the bill for six years. “I try helped build the Kansas City home from the ground up think that in our industry, it’s over the course of 10 days a really good idea to have us efforts undertaken by members of the going back to open competition based industry. on the merits of the service you proThe NABC needed to raise vide, not who you are affiliated with. $50,000 to fund the project, but more It will give our customers a lot more than $67,000 in contributions had choice.” been received as of last month, Sul– As reported in Auto Body Rekala said. More than 300 volunteers— pair News. Interviewed three years from shops, insurers and industry sup- later, Montana shops said the state’s pliers—helped build the home from unique law was working. “We can’t the ground up over the course of about change the [DRP] criteria, but we 10 days. have the right to see it and decide if Sulkala admitted the project got we want to meet it,” Donna Fastenau off to a rocky start because the foun- of Hank’s Body Shop in Billings, MT, dation for the home—poured by con- said. “The companies that had previtractors prior to the arrival of industry ously removed us…had to open the volunteers—was more than five door and let us back on,” agreed Max inches out of square. Yates of Yates Body Shop in Butte, “The key word is ‘was,’” Sulkala MT, who said his shop had been resaid. “We fixed it. It’s the same thing moved from multiple DRPs because we do in our businesses every day of his insistence on including neceswhen we take a wrecked car and put it sary procedures on his final bills that back into the shape that it needs to be. other shops may not. That’s what we did to a foundation that was off. That set us back by a day or 5 years ago in the collision repair two. But that house is a solid, quality industry (May 2010) house, and the woman who’s moving Connecticut Attorney General Richard in there with her three kids is abBlumenthal has voiced support for a solutely thrilled and delighted about it.” court injunction being sought by the – As reported in Autobody News. Auto Body Association of Connecticut The NABC went on to even larger (ABAC) to halt The Hartford’s unfair projects, including raising $500,000 in use of in-house appraisers. 2003 for a medical facility at a camp Last November, a Connecticut in Montana for children with cancer. Superior Court jury found The Hartford had engaged in unfair trade practices, and awarded nearly $15 million 10 years ago in the collision repair to shops in an ABAC-led lawsuit industry (May 2005) The Montana legislature overwhelmbrought against the insurer. The asso-

46 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ciation subsequently filed for punitive damages and for a court injunction to end The Hartford’s exclusive use of in-house appraisers, which the association says excludes independent appraisers and forces shops to accept artificially low labor rates. In Blumenthal’s filing with the court, he said “the state has an interest in preventing the unfair suppression of labor rates that significantly harms the state’s economy and results in extreme economic hardship for independent automobile body repair shops.” A spokesman for The Hartford, which has denied any wrong-doing and has said it will appeal the jury award, told The Hartford Courant newspaper that the insurer was “disappointed that the attorney general has chosen to support a position that the body shop owners admit is intended to increase costs for Connecticut consumers,” and that it “is important to us that our customers have access to a repair program that provides great service at a fair price.” – As reported in CRASH Network (www.CrashNetwork.com), May 1, 2010. A final decision in The Hartford’s appeal of the lawsuit is expected later this year from the Connecticut Supreme Court. At stake are: $14.7 million in compensatory damages the jury awarded to the shops; $20 million in punitive damages against The Hartford added by the judge; interest that could bring the total to close to $40 million; and the injunctive relief that Blumenthal was supporting. Following his election to the U.S. Senate in 2010, Blumenthal became largely silent on auto insurance issues, until earlier this year when he announced that he is urging the U.S. Department of Justice to investigate whether insurers are directing consumers to collision repair shops that have agreed “to use cheaper and possibly more dangerous parts.”

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 47

New GM Silverado Engineered for Better Serviceability During Collision Repair by Stacey Phillips, Assistant Editor

When General Motors initiated the redesign of the Chevy Silverado 1500 full-size pickup truck several years ago, an important aspect of the project was to incorporate features to reduce the time, cost and complexity during the collision repair process. “When we design trucks, we don’t only consider what features our consumers demand from a full size-truck,” said Mark Szlachta, Advanced Service Design Engineer for General Motors. “We also approach the process with our technician hat on, ensuring we engineer a truck that is straightforward and cost-effective to repair.” When Autobody News asked Szlachta the various requirements that went in to redesigning the truck, he said that one of his primary goals

as a service engineer was to look at the project from a body repair perspective. “I’m looking at the vehicle from the perspective not how it’s going to look when it’s done, or how it’s going to be built, but how it will fare in the event of a crash. How we are going to take it apart, how we’re going to put it together and try to make sure that at the very least we don’t lose any serviceability,” said Szlachta, who has a background in collision repair. “In fact, our job is to always improve serviceability.” Szlachta said a full-size pickup truck is typically re-engineered every five to seven years. “The reason why we change is because technology changes,” he said. These new technologies help make the truck quieter, stronger, lighter and more fuel efficient.

Tom Wilkinson, communications manager for Chevy Trucks, said, “The other thing that continually evolves are safety standards and crash testing, such as new roof crush standards and new offset front impact

The 2015 Chevrolet Silverado truck

standards. We have to do a lot of reengineering to make sure that you’re doing well in those tests.” The new Silverado is constructed using significant amounts of highstrength steel, particularly in the frame and cab structure. He said this makes the truck stronger and more rigid for improved safety, ride and vibration control, and helps reduce mass for improved fuel economy. When Autobody News asked

Wilkinson if there were any plans to change the Silverado’s body components to aluminum during this midcycle update, he said there are no plans to do so. “We already use aluminum hoods on full-size and midsize trucks,” said Wilkinson. “Given the ongoing wave of new, refreshed and redesigned vehicles being introduced each year, it’s more important than ever that automakers focus on design for affordable reparability,” said John Van Alstyne, President and CEO of I-CAR, the Inter-Industry Conference on Auto Collision Repair. “Understanding and adapting to the issues and opportunities associated with advanced materials and technologies is not only a key consideration in the early stages of the design and engineering process, but the impact on repair must also be considered upfront to ensure complete, safe and quality, and affordable repairs throughout a vehicle’s total lifecycle.” The 2015 Silverado is currently being sold by Chevrolet. For more information, visit Chevrolet.com

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TX Driver Sentenced for Possession of 160lbs of Marijuana

A woman who was found to have more than 160 pounds of marijuana in her rental car on Christmas Day 2013, was sentenced on April 2 to 24 months in federal prison, announced John Parker, Acting U.S. Attorney for the Northern District of Texas. Christini Lynn Brashear, 45, of Rocklin, California, pleaded guilty in November 2014 to an indictment charging one count of possession

with intent to distribute marijuana. on April 2, Judge Cummings ordered that she surrender to the Bureau of Prisons on May 8, 2015. According to documents filed in the case, on December 25, 2013, the Abilene Police Department received multiple calls regarding a small sport utility vehicle that was on Interstate 20 traveling east at approximately five miles per hour.

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National 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.

ARA Attends 15th International Automobile Recycling Congress with Chasidy Rae Sisk

On March 25-27, the 15th International Automobile Recycling Congress (IARC) was held in Berlin, Germany, and the Automotive Recyclers Association (ARA) interests were represented by ARA CEO Michael Wilson and ARA Past President Ed MacDonald. Because ARA represents over 4500 professional automotive recyclers through direct and affiliated chapters in the US and 15 countries internationally, “an ARA presence at international automotive recycling events is important,” Wilson states. “The IARC is an opportunity to hear directly from our international members and grow ARA’s voice internationally. While ARA members’ business facilities differ from facility to facility, there is significant commonality in the global issues facing the professional automotive recycling industry. Additionally, the automotive industry worldwide is becoming more and more integrated. Specific automotive recycling activity is no different, with a number of entities within the industry expanding internationally.” Conference sessions at the IARC focused in detail on the 95 percent recycling target rate set under the European Union End-of-Life Directive for 2015. The subject was widely discussed both in and out of the educational seminars. Wilson notes, “Given the January 1, 2015 deadline for countries to achieve a 95 percent recycling rate established by the European Union’s End-of-Life Directive, it was expected that this would be a topic of much discussion. Many of the countries have met these targets but there are several that have to yet to do so. Revised guidelines and improved scrutiny are to be put in place so that all EU members meet the required targets. These events also allow us to see into the future of recycling for North America where more and more stringent regulations are expected on the reuse of the final elements within the automobile, including carbon fiber, nickel, plastics etc. These meetings give us a window of opportunity and knowledge in developing processes for the extraction of these products from the automobile. At the same time we continue to promote our North American recycling model

that is the reutilization of the component parts of the automobile, total reuse. A higher sale and reutilization of recycled OEM automotive parts as in North America by Europe and Asia and

ARA Past President Ed MacDonald speaks at the 15th International Automobile Recycling Congress in Germany

more ‘urban mining’ of the component parts by the North American recycling process would certainly be a target to strive for in the future.” For over 250 automotive recycling professionals in attendance, IARC 2015 offered educational sessions on a variety of topics, including how manufacturers and the recycling industry close the recycling loop; best available recycling technologies; auto manufacturer feedback from Asia, the USA and Europe; next-generation recycling processes and equipment; and recycling challenges presented by new automotive materials, such as nickel metal hydride, lithium-ion batteries, carbon fiber, glass, lamps and catalysts. While participating in a panel discussion with speakers from Mexico and India, MacDonald shared an overview of the North American automotive recycling model, detailing the Automotive Recyclers of Canada’s activities. Special focused was placed on their “Take Back the Tundra” pilot end-oflife vehicle processing program in the Canadian arctic. MacDonald said his presentation “emphasized the differentiation between the European/Asian automotive recycling process, generally defined as ‘urban mining,’ which stresses and relies on a far deeper extraction process of the vehicles elemental properties such as copper, aluminum, steel rare elements, magnets, etc. than in North America which utilizes a very robust, active and profitable parts resale indus-

50 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

try through our professional recyclers.” The presentation was well-received and many follow-up questions were asked during the remainder of the conference. The event’s keynote speaker was Erik Jonnaert, Secretary General of the European Automobile Manufacturers’ Association, who addressed the automotive industry’s role in the context of end-of-life vehicle recycling. Wilson recounts, “During his presentation, Jonnaert alluded to the need to focus on the planet, profits and people as well as the importance of keeping environmental goals in proper prospective. Jonnaert remarked that recycling targets should be balanced versus targets set to reduce the bigger environmental footprint of vehicles during use. He stated that there was not a need for new legislation in Europe regarding end-oflife vehicles and thought further cooperation between stakeholders would produce more beneficial outcomes.”

Following Jonnaert’s presentation, Wilson referenced ARA’s call for OEM parts data that was the topic of an ARA presentation at the 2014 IARC, and asked about ACEA’s commitment to providing this information which is required under European regulations. Although Jonnaert’s response was vague, Wilson followed up with the Secretary General of ACEA to engage in further dialogue on this imperative matter. In reference to this initiative, Wilson states, “ARA is calling on the automakers to adhere to European Commission regulations that require manufacturers to provide independent operators ‘information on all parts of the vehicle, with which the vehicle, as identified by the vehicle identification number (VIN) and any additional criteria such as wheelbase, engine output, trim level or options, is equipped by the vehicle manufacturer.’ This data must be made available in a database easily ac-

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cessible to independent operators and should include the VIN, Original Equipment (OE) parts numbers, OE naming of the parts, validity attributes (validfrom and valid-to dates), fitting and where applicable structuring characteristics. Without access to parts information, the identification of economic and safe alternatives to new OE parts will become increasingly challenging. Different regulations among the European Commission members and the United

States do not support the efficient and safe global marketplace of recycled OEM automotive parts. The automakers in the United States must embrace European requirements regarding access to automotive parts information that is critical to enhance the safety of the global vehicle owner, the sustainability of the worldwide environment and ensuring fair and efficient competition in the automotive parts replacement marketplace.”

Owner of El Paso, TX Body Shop Guilty of Deceptive Trade Practices; Ordered to Pay $2,000 to Victims

The owner of Formula One Auto Collision in East El Paso, TX, Cesar Lopez, was found guilty of deceptive trade practices on March 17 in a jury trial in county court. KFOX14 reported that after going to trial on March 23, he pleaded guilty to another charge of deceptive trade practices. He was sentenced to 365 days in jail and ordered to pay $2,000 in restitution to each of the victims. He was also ordered to pay a $3,000 fine that is a suspended sentence. If he fails to pay the victims, he will have to go to jail and pay the fine, according to KFOX14. The charges stem from a case in 2011, when Lopez owned CRL Colli-

sion. In 2011, KFOX14 reported numerous stories where owners claimed Lopez was holding their cars hostage. Some owners said they spotted other people driving their cars around town, reported kfoxtv.com. Lopez had recently been the subject of several KFOX14 investigations after more owners contacted the station with similar problems to those in 2011. Owners have contacted KFOX14 claiming Lopez has had their vehicles for more than six months and in some cases more than a year. Lopez has also been accused of misusing insurance money, forging signatures, and not completing the work he was paid to do.

Fantasy Collision & Customs Focuses on 2010 Camaro

After 12 months and nearly 4,000 hours, Fantasy Collision & Customs unveiled a special project they had been working on: a revamped Dodge Charger coupe. That was just two years ago. Since then, the Warren, MI, shop has worked on multiple customization projects. Owned by Nick Kizi, the business specializes in automotive restoration and customizing and is currently focusing its efforts on a 2010 Camaro with a ‘72 Nova body scheduled to be unveiled at Autorama 2016 in March. The project involved taking the body off of a brand new 2010 Camaro and replacing it with a 1972 Nova. “It’s going to look like a ‘72 Nova with all of the brand new technology,” said Kizi. This includes a Camaro engine, supercharger, Airbag suspension, side airbags. ABS and a new computer system. “It’s going to be one really cool car when it’s done.” When Kizi opened the shop with three other employees in 2010, they initially focused their efforts on collision repair. They soon realized they wanted to show their customers some of the other things they could do. Their first customization project was a 2010 Mustang. After receiving a second-place trophy in 2012 at Autorama in Detroit, MI, Kizi decided to continue focusing on

customization alongside the collision repair work they were doing. The customized Dodge Charger was the next project on their list. “In the late ‘60s and ‘70s, they built two-door chargers. They don’t make them anymore,” said Kizi. “They

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build only four doors so we decided to do a two door just like they used to do back in the day.” The company purchased a new two-door 2013 Dodge Charger from the dealership with the intent of making it a wide body with a glass roof. “We decided to do a computer rendering on the vehicle so we could see how it would look,” said Kizi. After a second rendering, they shortened the wheel base by eight inches. For more information about Fantasy Collision & Customs, contact Nick Kizi at (586) 872-2064

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 51

Pacific Collision Equipment Company in CA Holds Classes in Damage Analysis & Aluminum Dent Repair ager for San Diego and Orange Counties. There were 25 students in attendance and speakers included Assured Performance and Dr. Ken Zion. Liz Stein, VP Industry Relations for Assured Performance, spoke on the importance of OEM Certification and the industry trend increasingly moving in the Certified OEM programs direction. Dr. Zion, owner of Automotive Collision Consultants, is an automotive collision and mechanical expert with more than 40 years of automotive Robert Hornedo, Owner of Pacific Collision Equipment repair experience. He specialCo., explains to the class the importance of measuring izes in inspecting and analyzthe vehicle to locate all of the damage in advance of ing vehicles for suspected writing an estimate in order to write a complete estimate repair fraud, failure analysis, and to expedite the repair process staged accidents, and accident sion Viejo, CA, owned by Todd Hes- reconstruction. He maintains numerford. The class was conducted by ous automotive ASE/ICAR certificaRobert Hornedo, Owner of Pacific tions and a Master certification in Collision Equipment and Tom Bal- Automotive Collision/Painting. As an liet, the company’s Technical Man- automotive repair expert, Dr. Zion has inspected over 3,000 vehicles. He has testified in civil/criminal cases, and in local, state and United States district courts. His focus during the class was on liability for the shop and technician. Damage Analysis Seminar Pacific Collision Equipment Company organized a seminar in Damage Analysis on March 25. It was held at Mission Viejo Auto Collision in Mis-

Robert Hornedo discussing how new metals can deceive an estimator where at the point of impact the frame rail appears to be undamaged. However, due to the rigid nature of these new metals the entire rail may have moved and the deformation may be three, four or more feet away from the point of impact

Aluminum Dent Repair Training A class in Aluminum Dent Repair Training was also held at Mission Viejo Auto Collision on April 2. The CAR-O-Liner class focused on Non-Structural Aluminum Repair.

CCC Information Services’ 2015 Crash Course Report CCC Information Services announced on March 26 the availability of its 2015 Crash Course, a report that focuses on the trends impacting the auto physical damage industry.

This year’s report examines ‘Smart Connections,’ the pervasiveness of technology and the subsequent availability of data that is being shared between consumers, vehicles, insurers and auto repairers. Crash Course is compiled using research and information from a wide range of sources and an aggregated set of data from CCC’s data warehouse, which includes ap-

proximately 160 million claims worth of information.

Crash Course 2015 infographic

“The ubiquitous nature of technology among consumers, businesses and within vehicles is creating vast

52 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Balliet shows students the galvanic corrosion that began within minutes of cleaning the panel

A Car-O-Liner Aluminum repair station was used during class

Tom Balliet was the lead instructor. He discussed the importance of cleanliness in the work area, tooling and demonstrated the importance of controlled heat to aluminum. Balliet also showed the 17 students how to repair small- to medium-sized dents on

Students begin welding pull studs to aluminum panel

Balliet re-emphasizes safety working with aluminum

Tom Balliet puts dents in a hood for students to repair

amounts of data and information that can be analyzed and applied to better serve consumers, tailor products and identify new business opportunities,” said Susanna Gotsch, Lead Industry Analyst, CCC Information Services. “We’re calling this dynamic ‘Smart Connections’ and in this year’s Crash Course we explore how it is both necessitating and enabling auto insurers and collision repairers to operate and perform in new and different ways.” The Crash Course report also provides analysis on repair costs, total

aluminum panels then handed the tools over to the students. There were two different working repair stations available so all students had a chance to repair dents using the different tools. Everyone who attended also received a certificate.

loss trends and a myriad of other factors that contribute to the performance of the automotive claims and collision repair industry. Download the 2015 Crash Course report (http://www.cccis.com/crash -course-2015/) to learn more about:

● Consumer: Mobile technology has created amped-up expectations and sharing; ● Car: More new vehicles on the road with greater complexity, connectivity; ● Carrier: Competition and tech disruption are driving innovation and adoption of analytics; and ● Repairer: Adopting technology to engage consumers, execute efficient repairs.

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Willets Point Shops Settle Lawsuit, Vacate Queens, NY, to Allow Construction of $3 B Mall by Autobody News Staff, Wire Stories

The final 50 or so business holdouts in Queens who resisted a $3 billion mixed-use development planned for a site west of Citi Field, have settled a lawsuit with the city and the project’s developers, paving the way for the first phase of construction of the massive facility. The impacted businesses filed a lawsuit on Feb. 4 against the city and the developers, Sterling Equities and Related Companies, alleging they were unlawfully forced out by the project, which will be partially built on city parkland. The businesses, known as the Sunrise Cooperative, have agreed to vacate Willets Point by June 1, though many have already left. Under the agreement, dated March 19, all litigation was dropped and a $5.8 million escrow fund was created to aid in the businesses’ move to the Bronx. In return, the city will pay a total of $4.8 million into the escrow fund, while the development team of the Related Companies and Sterling Equities will contribute $960,000. The cooperative, a collection of nearly 50 businesses that have operated along the unpaved streets in a part of Corona, will also be required to contribute $143,000 to the fund.

“Sunrise is happy that they got to an agreement,” said the Urban Justice Center’s Harvey Epstein, who represented the group in court. “We look forward to building a large auto co-op, and to everyone in New York starting to use it.” The cash can also be used by Sunrise to pay rent to the site’s landlord. The group plans to convert the one-story property into an auto mall with stalls for each of the businesses within six months, and will also borrow $550,000 from the city to cover some of those costs. “The relocation of the Sunrise Cooperative represents a critical step in the advancement of the Willets Point development, which will bring thousands of jobs, units of housing and square feet of retail space to northern Queens,” said Economic Development Corp. President Kyle Kimball. Related and Sterling are spending $3 billion to build a 1.4 million squarefoot mall to the west of Citi Field, along with retail and about 2,500 apartments on about 22 acres to the east of the stadium in Willets Point. But in February 2014, Sunrise filed suit in state Supreme Court, alleging that the displacement of the businesses violated several laws. It was unclear exactly how many more businesses need to be relocated,

LKQ 2015 Get Green Winner Announced LKQ Corporation celebrated Earth Day with the announcement of the winner for the 2015 LKQ Get Green promotion. The LKQ Get Green promotion ran from February 16th through April 15th. The nationwide sweepstakes offered customers a chance to win a 2015 Chevrolet Colorado(R). The grand prize winner was WD Goad of Lexington, Virginia. Goad received the 2015 Motor Trend Truck of the Year®, a Chevrolet Colorado®. “I didn’t believe it at first, it was a great surprise,” stated Goad. Goad is the owner of Goad’s Body Shop, which has been serving Lexington for over 30 years. Goad opened the shop with only one employee and throughout the years Goad has grown his business, and today has over 20 employees. Goad and his qualified technicians offer their customers a range of specialized services from body frame work to paint. “It has been a pleasure working with LKQ and Keystone Automotive.

They have a lot of great employees, even right down to the delivery drivers, who are very conscientious and we appreciate that,” stated Goad. Goad’s Body Shop participated in the LKQ Get Green through LKQ East Carolina located in LaGrange, North Carolina. LKQ East Carolina is a full service recycling facility that processes 3,000 late model vehicles each year. The LKQ Get Green promotion is centered on Earth Day to encourage customers to participate in environmentally friendly practices. LKQ said it is dedicated to doing its part for the environment through a company-wide green initiative to support a cleaner environment. Approximately 82% of each salvage vehicle by weight is recycled and the reusable parts are offered to customers at low-cost, environmentally friendly repair options. To participate in future LKQ promotions, stay connected with through Facebook, Twitter, and Instagram for updates.

54 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

but the city estimated that nearly twothirds of the 130 shops have now received some form of compensation. “There were many layers of negotiation that needed to take place,” said City Councilwoman Julissa Ferreras, who represents the area and helped hash out the agreement. Their planned move across the East River is perfectly legal, but now it’s Bronx residents who are getting stirred up, worrying the influx could spark a resurgence in violence and auto thefts in Hunts Point. “The increased competition could make people desperate,” said Josephine Infante, president of the Hunts Point Economic Development Corp. “The people here don’t want their bread and butter taken right out of their mouths.” “We don’t have any other choice,” said Marco Neira, the Sunrise president. “We’d rather stay in Queens, but there was nothing big enough.” Neira said the city’s Economic Development Corp. pledged more than $2 million to cover moving costs, security deposits and two years of rent for the 37 members of the co-op. Neira denied the incoming shops

would be a threat because of the unique, one-stop automotive emporium the warehouse layout will afford. But Hunts Point is already deluged in auto-related businesses, a cluster of shops that line Southern Blvd. and Hunts Point Ave. Bronx residents say the deal raises traffic, safety and environmental concerns that they believe should have been vetted and addressed. Bronx Community Board 2, which covers the area, voted to formally request the city Economic Development Corp. to conduct environmental and traffic-impact studies of the site. The board also wants the city to repurpose $5 million of the funds earmarked for the remediation of contamination at Willets Point to assess the situation. But officials say the city is not responsible for any impact the influx may have on the Bronx, even though it is essentially footing the bill. “The relocation of the Sunrise Co-op to their new facility is an as-ofright transaction between two private parties,” a spokeswoman for the Economic Development Corp. said.

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Coverage of the 2015 Resolution Forum and Leadership Meeting at NORTHEAST™ by Chasidy Rae Sisk

The 2015 East Coast Resolution Forum and Leadership Meeting at AASP-NJ’s 38th Annual NORTHEAST™ Automotive Services Show was as successful and informative as it has been in past years. Co-hosted by AASP-NJ and SCRS, the meeting was held on Friday, March 20th and attracted nearly 70 participants. The annual East Coast Resolution Forum and Leadership Meeting provides collision repair industry leaders with an opportunity to network with their peers and learn about the initiatives other state and national associations are pursuing to improve the state of the industry. This year, association representatives from each state in attendance were asked to share positive initiatives they’ve been working on over the past year and that they plan to pursue in 2015. After AASP-NJ’s President Jeff McDowell welcomed attendees, Aaron Schulenburg, Executive Director of SCRS, reminded everyone that they must adhere to Anti-Trust guidelines; Ed Kizenberger, Executive Director of LIABRA and the meeting’s master of ceremonies, honored the country by leading the group in the Pledge of Allegiance before reading the Anti-Trust statement and asking attendees to introduce themselves. The first state represented at the resolution forum and leadership meeting was Massachusetts as AASP-MA’s Executive Director Jillian Zywien discussed the addition of two new members to the association’s Board of Directors, and Molly Brodeur, President of AASP-MA, noted that they’ve completed their second strategic plan which calls for more focused efforts. The association will be focusing on the ADALB which oversees the licensing of appraisers in their state, and on releasing the Department of Insurance’s stranglehold on the ADALB. Massachusetts has a two-year legislative session that runs continually, and AASP-MA’s committees have received clean directions on what they will work on in 2015. With Kizenberger noting that Connecticut has issues with legislative agendas, Tony Ferraiolo, President of ABAC, took the floor to discuss the association’s desire to amend legislation that their state already has, and they are currently monitoring proposed legislation to prevent double taxation on paint and materials which

benefits everyone. Ferraiolo believes, “The more information we share about what’s out there, the better.” ABAC is also using the recent CNN report to inform consumers about the industry’s struggles, and they are supporting Senator Blumenthal’s efforts regarding imitation parts. Ferraiolo challenged attendees to aid in this endeavor to educate consumers, and he encouraged them to learn all they can. Regarding steering, Ferraiolo noted that shops should record negotiations with insurers, but first they must consult with attorneys to ensure legal compliance. When Kizenberger asked about the current status of the Hartford case, ABAC’s legislative counsel John Paresi noted that no updates have been received yet, but he stated, “Our side argued on the merits of the case, but the Hartford’s attorneys argued technicalities and tried to make it appear as though the insurer had been victimized.” ABAC expects to receive judgment on the final appeal early this summer. Kizenberger pondered if the $38 million judgment will be enough to make the insurer change their behavior, and Ferraiolo pointed out that in the 14 years since the case was filed, the Hartford hasn’t had to change; “Even if they have to pay now, imagine how much they’ve made.” Kizenberger believes the industry should capitalize on the current media coverage and push these issues to the forefront of legislators’ attention. “This explosion of information shows we’re not the only ones, as we’ve been saying for years. We’re just looking to level the playing field. We are building a long overdue argument with legislators, and we need to act on this golden opportunity.” Gary Wano Jr of the Oklahoma Auto Body Association spoke next about his recent visit to the Attorney General regarding a steering issue one of his customers experienced. The association is also working on a PSA about insurers’ referrals, the consumer’s right to choose, and the different between aftermarket, imitation and junk parts. Oklahoma’s Department of Insurance believes steering is a business issue, so the association has established a task force to monitor the issue because they feel a lot of legislation needs to be changed. Schulenburg noted that these recent efforts are

56 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

encouraging a high level of conversation about the issues collision repair professionals face, and it’s complementary to associations’ educational efforts. Kizenberger is pleased “we’re finally on the offensive instead of being reactionary. We’re building a lot of positive energy, and I hope we can keep it up.” Next, Tony Passwater, Director of IABA, spoke about their current work on the legislative element, noting that the downside is losing members who don’t want to be so aggressive. The national media’s coverage of collision repair issues has been beneficial, but it’s imperative to keep the issue relevant and new to make progress with consumers. Passwater has designed a website for consumers to share their experiences at www.ihavebeensteered .com, along with a toll free number 855-NO2STEERING. He says, “Because there is no regulation in Indiana prohibiting steering, it is imperative to increase consumer awareness. We need to stop the direction we’re heading or there won’t be an industry in ten years.” IABA has developed a new

method for delivering the same information to all eight of their chapters; they’ve put together V-Live training, filming educational segments and posting them to their websites. They will be hosting Mike Anderson at their April meeting in answer to members’ pleas for more education. Representing the Oklahoma Collision Repair Specialists, Ron Reichen noted that they currently have two bills in legislation, one regarding trade restraints and an anti-steering bill. He also discussed his success in small claims court through the use of an Assignment of Proceeds, and he hopes these short-pay cases will result in behavioral changes from insurance companies. After a short break, AASP-NJ’s Executive Director Charles Bryant mentioned that the association is supporting two pieces of legislation, on Right to Repair and about counterfeit airbags. The association is also active on paint and materials issues and are pushing for the use of PMC programs. This has led to a battle with the Department of Insurance who requested complaints but is now objecting to

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collision repair facilities filing complaints on behalf of the consumer. They recently lost a legal case on a better method for PMC programs on a technicality, but Bryant plans to appeal the ruling; he hopes to win and set precedence. Regarding the CNN report, Bryant acknowledges that it angered some segments of the industry, yet “it did something we’ve always wanted – educate consumers. I feel there is a place for some used parts but not safety components. I think the public’s interest in this problem is fantastic, and I suggest the industry doesn’t allow it to fade. Bryant also discussed the growing number of mobile auto body facility in NJ, and AASP-NJ plans to meet with the NJMVC to discuss enforcement of licensing regulations in order to address this problem. Bryant outlined two recent lawsuits in NJ pertaining to insurers’ refusal to pay labor rates and their insistence on using aftermarket parts. He noted that when an Assignment of Proceeds is involved, most insurers settle before court for fear of setting a precedent, yet insurance companies still made extravagant accusations against shops

in an attempt to defame and cripple them. Beginning CCRE’s part of the discussion, President Tony Lombardozzi reminded everyone that the insurers’ policy is a contract, and the rest of that contract disappears when the insurance company elects to pay in money. “Insurers use language for their own benefit, but they have no business in the collision repair process. It’s a mindset; we have to understand that we are not the insurance industry; we’re collision repair people.” Lombardozzi noted that CCRE has been harping on the same issues for 35 years, demanding more laws, litigation and legislation, but “we need to realize it isn’t working and that maybe we need to do something different. The industry needs to take an active role in their businesses and associations so we can figure out how we can take back the industry and move forward to get the current laws enforced. Associations’ leadership needs to pressure the Departments of Insurance and Departments of Justice to enforce the laws currently on the books.” Going forward, CCRE is working on developing seminars based on

new ways of doing business, starting by looking at the 1963 Consent Decree and figuring out how to operate profitably in this new environment. “We need to look at the hype and fear-mongering related to structural changes, tools and equipment and determine how much of this is because of other industries putting their hands in collision repairers’ pockets. Too many third parties interfere in how we do business, and I don’t see the value in it. The industry can adapt, but we have to understand that it’s our responsibility to begin the adaptive method.” Mike Parker from the Vermont Auto Body Association followed Lombardozzi, discussing estimates from photos and the importance of helping consumers understand that insurance companies must pay for their repairs. VABA has been sponsoring pro-consumer advertising, and they’ve introduced an aftermarket parts bill that limits the insurer from writing aftermarket parts on cars two years or newer, but Parker still worries about the use of aftermarket parts on older cars. Because an insurer challenged him to prove that aftermarket parts aren’t like kind and quality, Parker

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purchased a hardness tester to compare aftermarket and OEM parts and will share his results next year. Parker firmly believes, “You don’t negotiate with insurance companies. It’s simple – the insurer has three loss payment options: settle in money, repair or replace. They usually choose to pay in money, so their role is to pay for the bill. Nothing in the policy mandates the repair facility is required to negotiate with the insurer.” While discussing short-pay lawsuits, Parker suggested that CCRE should host a legal seminar Kizenberger responded, “We don’t like to deal with legislation, but we do it because we have to.” Representing NY and LIABRA, Kizenberger discussed their Parts and Procurement Bill which prohibits insurers from telling shops where to buy parts. It has been pushed to the side and nothing has come of it yet, though they are still working on getting it before both houses. “Legislation is ugly, and we’re severely outgunned. It doesn’t get any easier after you get involved – you have to look at everything from at least five different angles.” See 2015 Resolution Forum, Page 64

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Buffalo, NY, Native Who Competed in WorldSkills Competition Discusses Lack of Education in Collision Repair Field by Victoria Antonelli, Online Editor

Nathanael Wagner, who only knew about the 2011 regional SkillsUSA competition in western New York weeks before it happened, went on to place 16th in automotive refinish during the 2013 WorldSkills competition. This year, the event will be in Sao Paulo, Brazil, from August 11-16.

The door panel that Nathaneal Wagner painted during the 2013 WorldSkills automotive refinish competition in Leipzig, Germany

The WorldSkills competition is held every two years. In 2013, Wagner competed against the top 32 students in the world in Leipzig, Germany. Between the regional and international competitions, Wagner competed on a national level against 50 of the country’s top automotive refinish students. Wagner had been home-schooled before he heard about the local Harkness collision repair program available through Alden High School, and decided to enroll during his junior year

And Verso was right. While competing at the high school level, Wagner placed first in the regional competition at Alfred State Vocational College in Wellsville, NY. He also placed first at the New York state competition, which was held in Syracuse, NY, that year. Verso, who has taught three NYS winners, said he and Wagner boarded a plane to Kansas City, MO in June 2011 to compete at the SkillsUSA national level. Wagner came in second place, only losing by a few points out of 1,000 total points.” “I didn’t think I’d qualify for the international competition, since I had placed second; actually, I had completely forgotten about it until I got a call one day saying I was a candidate,” he said. “It was very exciting. But the better phone call came when they said they’d selected me out of the other competitors.” He explained that the judges pick the automotive refinish students who placed first, second, third and fourth at nationals to put in a pool, and then from there select who will compete at the international level. The winner is not only chosen based on ranking; other factors include the student’s interview responses and what he or she has done since graduating from vocational school.

Nathaneal Wagner has been a painter at Autobahn Body Werks in Williamsville, NY, since he returned from the international competition in Germany

in order to make use of this resource. “Nate wouldn’t get flustered when competing. I think having the confidence that he has helped him go so far,” said Robert Verso, who has been a collision repair instructor at Harkness Career Center for 26 years. “I remember telling my colleagues that Nate would take first place at the state level.”

“My experience with Nate was a very enjoyable one,” said Verso. “Immediately I knew that he was going to take this program seriously and he came to our school to learn. Nate would put 100 percent into class and shop activities. He would continue to practice what was taught to him until he got it right. He would also read or go online

58 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

to learn new ways to get the job done. Honestly, I learned a few things from Nate that year also.” Due to Wagner’s hard work and dedication to the collision repair field, he was able to be a part of an “incredible” event. “It’s like the Olympics for the skilled trades,” said Wagner. “Thirtythousand very talented kids from all over the world are in one city for a week. It was unlike anything I had ever experienced.”

Wagner said he will be going back to school to get an Associates degree in teaching in the near future. “From my experience studying and working in a skill trade, I’m very aware of the shortage of people in my generation who actually want to do what I do,” said Wagner. “Part of that is the lack of education. In the field that I work in, when you go to a body shop to start your job, the employer will first hand you a broom, then a wrench, and then they’ll hand you a paint gun. You never really know how to use it, aside from a brief, inadequate tutorial.” Wagner added, “I know what education enabled me to do, and I would enjoy giving that back to other willing people. I really see the opportunity in taking advantage of these programs while Nathaneal Wagner poses with young fans outside of the they’re still available.” WorldSkills competition He is currently the First place in his sector was youngest person working at his shop, awarded to a male student from Norand he said he can feel the sense of way, while a female student from Swepanic in the industry now that the den took home second place. older workforce is thinning out. WorldSkills marked Wagner’s secVerso shares Wagner’s fears, statond trip to Europe. He took time off being, “As far as collision repair goes, I tween high school and college to travel think we are in trouble. There are not to France, Italy and Spain. enough young kids serious about this While in Germany competing at field.” WorldSkills, Wagner was enrolled in the University at Buffalo, working toward a degree in mechanical engineering. After two years, he decided he’d rather stick with his initial interest: collision repair. He is now a painter at Autobahn Body Werks, where he has worked since returning from Germany. A candy-red paint job that Wagner is finishing The shop is Mercedes Benz certified, up at Autobahn Body Werks and located in Williamsville, NY, a suburb of Buffalo. Wagner explained further, “In the “I didn’t want to work in some ofUnited States, we don’t put emphasis fice designing a part to a machine withon vocational programs. We send the out seeing the culmination of that masses to college to get white collar design,” said Wagner. “At my job now, jobs and be engineers or lawyers. The I get a wrecked Mercedes, invest my trades are forgotten. time, knowledge, and skills to repair it, Even now, not many kids know and bring it back to perfect condition. about [the skills competitions], and if To me that is very rewarding.” more were aware of the achievements Wagner plans to someday share they could reach at a young age, more the world-class training he received would be willing to participate.” before and during the competitions For more information on Skillwith other students in the collision resUSA, visit www.skillsusa.org. To learn pair field. Along with Verso, repremore about the upcoming WorldSkills sentatives from 3M Automotive, Spies event, visit www.worldskills.org. Hecker, and the German paint gun disThe twenty-three-year-old recently tributor, SATA, played a role in develpurchased an old brick firehouse from oping Wagner’s skills set. the City of Buffalo and is in the process “Rob said I could have his job of overhauling it completely as his resonce he’s retired,” he added with a grin. idence and home body shop.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 59

BASF Awards Employee and Salesperson of the Year

The BASF Automotive Refinish team recognized Gordon Erdelean as the 2014 Employee of the Year and Ray McCutcheon as the 2014 Salesperson of the Year on March 27. The awards were presented at the BASF Automotive Refinish 2015 North America Team Meeting held in Southfield, Michigan. This marks the first time BASF Automotive Refinish has named an Employee of the Year. It recognized Erdelean, a Limco® Market Segment Manager, for his customer focus, collaboration and communication. McCutcheon, Sales Account Representative, was recognized for his exceptional performance generating profitable sales growth in the North Alabama region and in Tennessee. “In order for our business to succeed we need to perform on the highest level in every function, not just sales. Both Gordon and Ray are the epitome of high performing employees,” said Paul Whittleston, Vice President for Automotive Refinish Coatings in North America.

Herbie, Hollywood’s Most Beloved Volkswagen Beetle, Sold at Barrett-Jackson, Palm Beach, FL, on April 17 for $32,100

Barrett-Jackson auctioned an original “Herbie,” the world’s most beloved Volkswagen Beetle, during the 13th Annual Palm Beach Auction in Palm Beach, Florida, April 17–19, 2015, at the South Florida Fairgrounds. The ’63 Volkswagen Beetle rose to fame as the star in the 1969 film “Love Bug,” which led to three subsequent films in the original series. The hammer price was $32,100. “The Walt Disney studio did a phenomenal job of taking an unlikely car and turning it into a Hollywood film star,” said Craig Jackson, chairman and CEO of Barrett-Jackson. “This specific version is one of a handful that was actually used for driving and interior shots during the movie. While there were quite a few “Herbies” used in the films, only a few remain in existence.” Known to the movie-going public as “Herbie” and to Walt Disney Productions as “5916,” this car is better known in the loyal Herbie

Auto Salvage Yards in NC Searchable for Parts Pricing

The state of North Carolina is one of the largest areas in the country to find second hand automobile parts retailers. Auto salvage yards in NC can now be searched by used parts buyers on the web through the Locate Car Parts website at http://locatecarparts.com/ auto-salvage-yards-in-nc. The parts location tool is expected to open up a different method of finding domestic or foreign components for sale. Those who enter the state searchable system select a part as well as a vehicle year that will be used by NC yards to calculate prices. All salvage yards participating in the search system distribute

price quotations. “Both North and South Carolina yards can be found while using our dedicated system to help auto parts buyers find good pricing and better selections of inventory,” said a LocateCarParts. com representative. Because salvage dealers differ from a regular junk yard, parts research can be more specific. A salvaged motor vehicle is often purchased through insurance companies or at auto auctions in order to obtain the best quality components. The locator tool can be used by auto body mechanics, consumers or third-party retailers of vehicle components.

Pacific Elite Collision Centers in CA Promotes Shirin Hezar to CEO

Pacific Elite Collision Centers announced on April 14 that Shirin Hezar was promoted from Director of Client Services to CEO, effective March 2015. Hezar joined the company in June 2013 as Director of Industry Relations and has been a valued member of the Pacific-Elite executive team during its expansion from nine to 15 collision repair centers. Hezar has been involved in the collision repair business since 2008. “I am honored and delighted to lead

Pacific Elite Collision Centers, one of Southern California’s premier collision repair businesses,” said Hezar. “I look forward to working with the company’s dedicated leaders and associates to ensure that Pacific Elite continues to provide best-in-class collision repair experiences—while also remaining committed to manageable growth expansion.” Pacific Elite Collision Centers is a family owned and operated MSO of 15 auto body repair shops.

60 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

community as the “oil squirter,” as it was designed to squirt oil out of the

passenger-side wheel well. It was particularly famous for doing just that on a police officer’s foot in the 1977 film “Herbie Goes to Monte Carlo.” After the car’s final appearance in 1980’s “Herbie Goes Bananas” it was sold into private hands. It was later purchased by Arthur Porter, who had the car restored to its “Herbie Goes to Monte Carlo” appearance and piloted it in many vintage car races until the year 2000. Herbie spent the next few years relaxing in museums. The next owner, Doug

Kaufmann, saw to it that Herbie’s interior was restored to its “Monte Carlo” state, and reinstalled the bumpers, which had been removed for vintage racing events. “I love that our bidders can get as excited about a Volkswagen Beetle, as they can an original Shelby GT350,” said Steve Davis, president of Barrett-Jackson. “I think it shows the depth and breadth of the collector car hobby and our docket at each auction. We’re delighted that ‘Herbie’ was a part of our Palm Beach auction.” Live coverage of the Barrett-Jackson Collector Car Auction in Palm Beach was broadcast in live, high-definition TV coverage on Velocity and Discovery from Friday through Sunday, April 17-19.

For more information follow the link to http://www.Barrett-Jackson .com/Bidder/Home.

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ABARI-Supported Legislation Introduced to Rhode Island General Assembly by Chasidy Rae Sisk

In February, legislation supported by the Auto Body Association of Rhode Island (ABARI) was introduced in the General Assembly. Both bills, H5491 and H5471, are intended to protect consumers and the interests of the collision repair industry. Jina Petrarca-Karampetsos, Executive Director of ABARI, explains, “The first bill calls for the classification of shops (A and B), and the second is a private right of action for insureds and claimants for unfair claims practices and deceptive trade practices. Some years ago, there was a bill giving ahops a private right of action; this is not the same bill. The current bill is modeled from other states that give consumers a private right of action against insurers for various prohibited practices.” Bill 5491 was introduced on February 12 by Representatives Corvese, Winfield, Carnevale and Slater. If passed, Section 1 of this bill will allow the auto collision repair licensing advisory board to (1) establish appropriate rules, regulations and procedures;

(2) establish standards for sanitary and healthful conditions in the work environment; (3) establish minimum requirements for the licensure of auto body shops; (4) establish minimum requirements for certification of auto body technicians; and (5) establish two classifications of full collision licenses. The final component of this bill will have the most impact. If Bill H5491 is passed into law, Rhode Island body shops will be separated into Class A and Class B facilities. All collision repair shops in the state will be required to adhere to the first four tenets of the bill. However, those interested in being categorized as a Class A facility will need to submit an application by December 1, 2015. Applicants will be subject to an inspection to verify that they are compliant with all of the Class A requirements. In addition to fulfilling the Class B standards, shops receiving a Class A designation will be required to meet additional criteria. These shops will need to prove that they have the ability to do the following for each vehicle being repaired: obtain proper

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specifications through an industryrecognized computer program with periodic updates; make 3D measurements which are verified by a computer program; inspect airbags and other restraint devices; perform welds on aluminum and high-strength steel to ORM specifications; refinish vehicles using a paint system with computerized mixing technology and a prep station; hoist vehicles on a lift for a full inspection; use emissions-reducing equipment for refinishing; adhere to regulations pertaining to the disposal of hazardous waste; and maintain a healthy work environment. Class A facilities must also ensure customer satisfaction by providing a written limited lifetime warranty valid against workmanship defects, and they must maintain a system to document consumer complaints and responses to service. Other requirements include demonstrating certification and compliance with environmental agencies, providing evidence that all employed technicians are certified according to the board’s standards, and possessing a facility of sufficient size to contain all necessary equipment and to safely perform repairs. After the initial class designations are issued, Class B facilities may apply for Class A status at any time by submitting the necessary application materials. Section 2 of H5491 would require each insurer selling policies in RI to conduct annual labor rate surveys for each classification of auto body shops. These surveys would exclude any shops with which the insurer had a previously-established DRP relationship.

Bill H5471 was also introduced to the General Assembly on February 12 by Representatives Corvese, Winfield, Carnevale and Slater. If enacted, this bill would allow any insured or third-party claimant to bring action against an insurer for monetary damages if the insurer employs any unlawful method, act or practice. This would include unfair claims and deceptive trade practices, as well as other unlawful actions. Petrarca-Karampetsos states, “ABARI supports H5491 which would create two classifications of auto body repair facilities. If passed, this legislation will protect consumers and preserve competition. Technological advances in vehicle structures and safety systems require auto body repair facilities have the necessary equipment and trained technicians to ensure a safe repair and to preserve the proper performance and longevity of the repaired vehicle. This legislation would require shops to have certain equipment required by many manufacturers to be considered a Class A shop. All shops meeting the current minimum requirements in Commercial Licensing Regulation 4 would be deemed Class B. This bill is intended to incentivize Class B shops to invest in their businesses before they will no longer be able to complete as a result of automobile manufacturer requirements. Further, the motoring public should be aware of whether the auto body repair facility they have chosen has the equipment and expertise to repair their vehicle. ABARI protects consumers… if we don’t, who will?” ABARI expects hearings to be scheduled on both proposed bills sometime in April.

Lawyers Picked to Lead Posts in Air Bag Lawsuits

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Two South Florida attorneys and a lawyer who represented former Vice President Al Gore in the 2000 election recount have been chosen for leadership posts in lawsuits over defective auto air bags. U.S. District Judge Federico Moreno is presiding over dozens of lawsuits consolidated in Miami federal court. The lawsuits seek unspecified economic and personal injury damages against air bag maker Takata Corp. and numerous auto makers. South Florida attorney Peter Prieto of the Podhurst Orseck firm will be chief counsel for all plain-

tiffs. Curtis Miner, of the Coral Gables firm Colson Hicks Eidsen, was named lead counsel for the personal injury plaintiffs. David Boies of New York, who represented Gore, was picked colead counsel for plaintiffs seeking economic damages along with Todd A. Smith of Chicago.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 61

Spanesi Expands Operations in IL and Hires Tom McGee as Business Development Manager

After opening operations in Illinois two years ago, Spanesi Americas recently announced that they have doubled both their warehouse and training space. The expansion project also includes an addition to their existing office building as well as the dock and loading area.

Spanesi Americas recently doubled their warehouse and training space in Illinois

Tim Morgan, Managing Director for Spanesi Americas, said the expansion is a result of an overwhelming response to the company’s products. Morgan began consulting for the company in 2012 and set up their North and South American operations in October of that year. “When I started this project I knew the products Spanesi had to offer were what the US and Canadian collision repair markets were looking for and the response has been extraordinary,” said Morgan. “This has allowed us to be able to expand our facility in

such a short time to meet the needs of our customers.” The family-owned equipment company is based in the small town Padova, Italy near Venice. Spanesi’s product lines are manufactured in Italy and include: Straightening Benches, Multibenches, Touch Electronic Systems, Vacuum Systems, Welding Machines, Infrared Lamps, Lifts, Painting Tools, Spray Booth Equipment, and Manual, Pneumatic, Electric and Hydraulic Tools. The Illinois facility will now have a dedicated warehouse space to store parts for spray booths and measuring systems as well as a single area for product training. Another recent development at Spanesi is the hiring of Tom McGee as Business Development Manager. “Tom’s experience in the collision repair industry will be extremely valuable to our group as we continue to grow and provide exceptional products and service to our customers,” said Morgan. McGee has more than 30 years of experience in the collision repair industry. This includes Collision Director for Automotive Training Institute, Collision Industry Relations Manager for ALLDATA, and nearly 18 years at I-CAR where he held a variety of posi-

tions including President & CEO and Technical Director. McGee graduated from Ferris State College in Big Rapids, MI, and is an ASE Certified Master Auto Body & Paint Technician and Collision Repair Estimator. McGee, a recognized industry speaker, was also elected into the Collision Industry Hall of Eagles in 2001. “I am very excited to join the Spanesi team,” said McGee. “I have been very impressed with how the Spanesi product line is designed to repair the latest vehicle technology. It is exciting to join an organiTom McGee hired zation that has as Business such a strong focus Development on the technician Manager at and deploys its reSpanesi search and development to make their jobs easier.” Morgan said Spanesi Americas’ mission is to bring new products and technologies to body shops in the Americas to enable technicians to perform repairs to a high standard of excellence. “The unique feature of Spanesi over

the competitors is that we have our own body shop,” said Morgan. “We offer a full solution for the complete body shop.” Owner Orazio Spanesi started in the collision repair industry when he was 14 years old and in 1969 he opened his own body shop. In 1989, he decided he wanted to try and make better equipment so he traveled the world to find out what was available. “Everything that we design, we design it with the technicians in mind,” said Morgan. “It’s tested by technicians long before it ends up in the hands of end users.” Over the years even as the vehicles have evolved, the majority of what we’ve had in place for years is still the same way, especially with our universal fixturing system, that has been around since 1991. Morgan said with the company’s focus on products that are growing fastest in the market, Spanesi expects to increase overall shipment capacity by nearly 20%, while adding approximately 35 jobs in North America. The company has also increased inventory to enhance their delivery system. For more details, contact Timothy Morgan, 1.224.SPANESI (772.6374) tmorgan@spanesi-americas.com, www.SPANESI.com.

Record360 App Documents Damages in One Step, Saving Industry Members Time and Money

Record360 aims to avoid those dilemmas by using a video foundaTwo former Enterprise Rent-A-Car ex- tion, versus still-life pictures or paper ecutives first came up with the idea for diagram vehicle condition reports. an app that captures the condition of a This feature records the state of the vehicle at the time of exchange back in vehicle upon arrival to the shop, car2013. rental company, or dealership. “Throughout our combined 35 “The app eliminates the use of years in the auto industry, Damon paperwork and improves workflow, Haber and I frequently came in contact while ultimately saving the shop [or with issues during property exchange,” business] money and improving cussaid co-founder Shane Skinner of Seat- tomer service,” said Skinner. tle, WA. “I noticed that the same probInstead of having to take photos, upload them to a computer, and then label which photos belong to which car, the app does it all in one step. Skinner explained that the inlems occurred not only with loaner formation is organized by the VIN vehicles, but with cars coming in and number, which is scanned at the beYourginning Emailoffor out of body shops thatRegister needed work the Our process. When the cusdone.” tomer returns to pick up his or her car, These “issues” usually spark from the VIN number is scanned again to a “he said, she said” debate over when pull up all of the vehicle’s informaand where a particular dent, scratch, or tion. scuff occurred. Did that crack in the “When using the video feature back left window happen during the ac- while walking around the vehicle, cident or in the body shop? Was that ablefor to take still images and note Register Youryou’re Email Our scratch on the hood there before the them with data points,” said Skinner. customer rented the car? Who should “You’re able to say, ‘Okay there’s a pay for it? dent there,’ then touch the screen, take by Victoria Antonelli, Online Editor

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the still, and lock it into the record file for that document, all while still taking the video.” Skinner added that there is a patent pending on this feature. Todd Primo, service manager for Penske Automotive Group in Cerritos, CA, stated on the Record360 website, “We have been using Record360 to document our customers’ vehicles and been very satisfied with the results. We have virtually eliminated the problem of customers claiming damage while their vehicles are in for repair, seeing real savings in damage claims. Record360 has become an integral part of our process that is appreciated by our staff and our customers.” When Autobody News followed up with Primo, he said the dealership’s service advisors, who primarily use the app, gave it a 10 on a 1-10 scale; 10 being the easiest to use. He recommended that body shops download Record360, adding that he’s experienced nothing but success since Penske, Jaguar,Readers! Land Rover Be Seen by Our started using the app in July 2014. CALL Advertising Sales at: Another testimonial on the website, this one from Jennifer Carlson, general manager of Jucy Rentals North America, stated, “Record360 is enteradvertising@autobodynews.com prise ready; already used by leading rental asset management businesses.

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Since implementing Record360 at all our North American locations, disputes over damage are a thing of the past, and we’re saving thousands on undocumented damage. Our employees and customers feel great about our documentation process.” The app hit the iOS market in June 2014 after nine months of development. On April 1, Android users will also be able download Record360, making it accessible on 95 percent of devices. It can be downloaded from the app website as well as the iTunes store for a licensing fee starting at $50 a month. “All the customers love it,” said Skinner. “The feedback so far has been great.” Those interested can check out the demo on the Record360 website.

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www.autobodynews.com | MAY 2015 AUTOBODY NEWS 63

NABC Awards for Distinction and Shop Image, Nominations Do you know of an auto body shop that had a great facility makeover last year? Or an individual in the collision industry whose selfless actions were for the benefit of others? NABC is seeking nominations for its two industry awards: the Award of Distinction and the Body Shop Image Award. NABC’s awards program recognizes individuals and collision industry facilities that have made a beneficial impact in their communities and in the industry. As part of its 2015 recognition program, the National Auto Body Council plans to publicize, highlight and call attention

throughout the year to outstanding individuals and body shops and their extraordinary efforts. “The NABC industry awards program celebrates businesses and individuals whose efforts exemplify the professionalism and integrity of our collision industry,” said Marie Peevy, Chair of NABC’s 2015 Awards Program. Online nominations and more information for both awards are available at: www .NationalAutoBodyCouncil.org. Contact Marie Peevy, Awards Program Chair, at: marie .peevy@auto motivetrainingcoordinators.com or call 630.881.7945.

After Kizenberger briefly discussed Predictive Estimating and tax audits in New York, Schulenburg announced that SCRS is working on lots of productive things with value for their members. They are placing a lot of emphasis on education, but they’re just as focused on providing

news because, “The industry is hungry for information, but our biggest challenge is we’re preaching to the choir. The reality is we’re all entrenched in it. There is a large population of shops not being reached. We need to get the message to those who don’t want to hear or don’t even know they need to hear. We’re working on getting good information into the hands of the people who need it most.”

NABC Says “It Can Wait” to Students in Grad Season

Consumers Pay Repair Bills with Openbay and Apple Pay

Continued from Page 57

2015 Resolution Forum

With grad season comes the excitement of sharing photos, videos and texts with friends and family. But it also means elevated risk for teen drivers, particularly when they are sharing those photos and texts while driving. The National Auto Body Council (NABC) is teaming up with its members nationwide in the collision industry to help reduce this danger on the road by partnering with AT&T to support its It Can Wait® campaign. “The collision repair industry sees firsthand the negative consequences of distracted driving and want to help people reduce their risk of being in an accident,” said Dan Young, Senior Vice President of CARSTAR and Chair of the NABC’s Distracted Driving Initiative. “Through the It Can Wait campaign, we can educate drivers about the dangers of texting and driving, and engage drivers, their families and friends in putting down the phone and focusing on the road.” Tips are: Take and share your photos and videos before you get in the car; Designate someone who isn’t driving to manage the GPS; Drivers should install an app that silences incoming texts and notifications.

Openbay, an online car repair marketplace, has announced that its mobile app can now be integrated with Apple Pay to pay for vehicle fixes and maintenance. The company says its offering is also good news for the car dealerships, independent shops and mobile mechanics who provide services via Openbay, as it lowers their risk of responsibility for fraudulent charges. “Openbay remains the only nationwide mobile and Web app for consumers to search for, compare mechanics, book an appointment and pay for auto repair,” said Openbay’s founder and CEO Rob Infantino in a statement. “With Apple Pay, we continue to innovate and maintain a first-mover advantage for vehicle repair.” Openbay outlined the benefits on both the consumer and serviceprovider sides. Consumers will receive convenience and security, as well as the ability to minimize costs by comparing multiple offers, the company said. Users will also be able to earn Openbay Rewards with every completed automotive service. Automotive service-providers, for their part, will experience the cost benefit of not having to invest in EMV and NFC point-of-sale terminals.

64 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

BMW Settles FTC Charges that MINI Conditioned Warranty Coverage on Use of Its Parts and Service

BMW of North America LLC has agreed to settle Federal Trade Commission charges that its MINI Division violated the Magnuson-Moss Warranty Act by telling consumers that BMW would void their warranty unless they used MINI parts and MINI dealers to perform maintenance and repair work. The FTC alleged that BMW’s MINI Division, violated a provision in the Warranty Act that prohibits companies from requiring that consumers—in order to maintain their warranties—use specific brands of parts or specified service centers (unless the part or service is provided to the consumer without charge). “It’s against the law for a dealer to refuse to honor a warranty just because someone else did maintenance or repairs on the car,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As a result of this order, BMW will change its practices and give MINI owners information about their rights.” The proposed order settling the FTC’s complaint prohibits BMW from violating the Warranty Act and the FTC Act in connection with any MINI Division good or service. The settlement also: ● bars BMW, in connection with the sale of any MINI Division good or service, from representing that, to ensure a vehi-

cle’s safe operation or maintain its value, owners must have routine maintenance performed only by MINI dealers or MINI centers, unless the representation is true and BMW can substantiate it with reliable scientific evidence; and ● requires BMW to provide affected MINI owners with information about their right to use third-party parts and service without voiding warranty coverage, unless BMW provides such parts or services for free. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, continuing through April 20, 2015, after which the Commission will decide whether to issue the order on a final basis. Interested parties can submit written comments electronically. NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

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Sherwin-Williams Renews as the ‘Official Paint Of NASCAR’ NASCAR® and Sherwin-Williams, the nation’s largest specialty retailer of paint and paint supplies, announced a three-year extension to their Official Partnership. The newly signed extension will designate Sherwin-Williams as the “Official Paint of NASCAR” through 2017. “Our continued partnership with Sherwin-Williams is another example of FORTUNE 500 brands successfully using NASCAR as an integral part of their marketing mix,” said Norris Scott, Vice President Partnership Marketing. “Sherwin-Williams’ integrated approach using our intellectual property, both at track and at retail has proven highly effective. We look forward to expanding the Sherwin-Williams relationship across its multiple business divisions.” By continuing as an Official NASCAR Partner, Sherwin-Williams will also retain its designation in the “Official Automotive Paint of NASCAR” and the “Official Transportation Finishes of NASCAR” categories. Sherwin-Williams Automotive Finishes division will further expand its visibility as one of the leading product innovators and servicers to the collision repair and original equipment industries. Sherwin-Williams is the

only direct distribution automotive refinish manufacturer and provides service to its collision repair and OEM customers through nearly 200 company stores in the U.S. and Canada. “We’re extremely excited and honored to continue and expand our role as the ‘Official Automotive Paint of NASCAR,’” said Adam Chafe, Vice President of Marketing for SherwinWilliams Automotive Finishes. “Since 2000, some of the biggest names in motorsports have trusted their vehicles’ finish to Sherwin-Williams. We aim to help teams cross the finish line and ensure that their cars and sponsors always look their best on the track; that also holds true with every repair and repaint our collision repair center customers provide for their end customers.” The designation as the “Official Transportation Finishes of NASCAR” will also help Sherwin-Williams further expand its visibility as one of the leading product innovators and servicers to the fleet refinishing, heavy truck and bus, aerospace and commercial manufacturing industries. “More than a dozen NASCAR teams currently use Sherwin-Williams Automotive Finishes,” said Bobby Moody, Director of Motorsports for

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Sherwin-Williams. “The 30-plus drivers who now use Sherwin-Williams have more than 200 NASCAR Sprint Cup Series victories between them and make up a virtual ‘who’s who’ of NASCAR’s finest finishers.” Through its renewal, SherwinWilliams maintains its role as a Contingency Sponsor in the NASCAR Sprint Cup Series™ and NASCAR Touring & Weekly Series. As part of the Contingency Program, Sherwin-Williams will be title sponsor of the Fastest Lap Award in the NASCAR Sprint Cup Series.In addition, Sherwin-Williams continues as a Proud Partner of the International Motor Sports Association™ (IMSA®), extending a partnership that began in 2013. For more information about Sherwin-Williams Automotive Finishes, or the brand’s motorsports program, visit www.sherwin-automotive.com or call 1-800-798-5872.

@autobodynews1 Accept no Substitutes! Miller’s Optimized Welding System for AL Repairs

The new Millermatic® 350P auto body aluminum repair system provides all the equipment, from the power source to the gun and wire, to make quality aluminum auto body repairs. Miller Electric Mfg. Co. has introduced the new Millermatic® 350P auto body aluminum repair system. The company said it was designed to provide high weld quality and simplify repairs on aluminum auto body panels and beds, such as found in the 2015 Ford F-150 truck. It was also created specifically to address the challenges posed by welding thin gauge aluminum, such as warping, distortion and burn-through. It builds on the Miller® Millermatic 350P MIG power source and can also be used to Pulse weld with silicon bronze, steel and stainless steel wires. Miller aimed to simplify the process of aluminum welding, particularly for welding operators who may not be as familiar with this material or the challenges it can pose. The Millermatic 350P system features the components necessary to meet the specifications set forth by Ford and the Assurance Performance Network for completing weld repairs on the Ford F-150 aluminum-body truck. For more, visit www.MillerWelds.com.

Car-O-Liner® Names New OEM Account Manager

Car-O-Liner® announced it has hired Mark Weinmann as an OEM Account Manager on March 18. In his new role, Mark will work with Peter Richardson, Director of National Accounts, and interact closely with Car-O-Liner OEM partners across North America. “We are excited that Mark is joining the Car-O-Liner organization. He is a great addition to our team,” said Richardson. “Establishing a strategic partnership with our customers is of high importance to us. Mark’s knowledge of the industry is an asset to reinforce our relationships with key OEM partners.” Weinmann joins Car-O-Liner after 12 years at Shure Manufacturing where he served as the National Sales Manager responsible for sales and customer service for both Distribution and OEM sales channels. He has worked closely with the automotive OEM equipment programs to promote sales growth and develop OEM brand-specific products for automotive dealership initiatives. He also spent 10 years with Center Oil Company as a Petroleum Trader in St. Louis, MO.

Assured Performance Hires Michael Quinn as Exec. VP

Assured Performance announced on April 6 the appointment of Michael Quinn as Executive Vice President. Quinn will assume responsibility for the general business operations at Assured Performance including sales, marketing, and business development. Quinn has more than 25 years industry experience. He cofounded a 7-shop collision repair business in Arizona & Nevada. Quinn worked for Caliber Collision for 2 years before assuming the role of President at UParts Inc. Quinn served as Collision Industry Conference (CIC) Chairman for two years (2010- 2011) after having led several of its committees. He has also been an active board member on the National Auto Body Council (NABC) for more than 11 years. There he chaired the Katrina Relief program to serve those displaced by hurricanes Katrina & Rita. Quinn also initiated and chaired the Recycled Rides and the First Responder Emergency Extrication (FREE) programs. Quinn is the recipient of numerous industry awards, including the Hall of Eagles, NABC Pride Award, and ASA/SCRS Humanitarian award.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 65

GM Names BASF 2014 Supplier of the Year

BASF received General Motors’ (GM) Supplier of the Year Award for the 10th time in the past 13 years. The award was presented to Joe Schmondiuk, Vice President of Global Accounts

dustry and are pleased that we were able to support them on several key product launches in 2014.” BASF’s Coatings Division supports GM by combining modern paint processes with special effect pigments and technologies. BASF offers a broad array of color solutions and processes that enable car makers to improve productivity and environmental performance. “These companies are the bestof-the-best suppliers, and deserving of special recognition for their outstanding contributions,” said Steve Kiefer. Joe Schmondiuk, BASF Vice President Global GM vice president, Global PurAccounts, OEM Coatings Solutions (center) acchasing and Supply Chain. “We’ve cepts the GM Supplier of the Year Award from had some good ‘wins’ of late, solid (left) Greg Warden, GM Executive Director, sales, strong earnings, and some Body Engineering and (right), Randy Pappal, nice awards, and you should know GM Executive Director, Global Purchasing that we could not have accomBody Group plished any of it without you and BASF Corporation, during GM’s an- your teams, and your hard work.” nual awards ceremony at Cobo Center GM’s Supplier of the Year proin Detroit. gram began in 1992, and each year a “BASF is pleased to have once global team of purchasing, engineeragain earned this recognition from ing, quality, manufacturing and logisGM,” said Schmondiuk. “It demon- tics executives determine the winners strates the great commitment and capa- of the Supplier of the Year Award. bility of our team to offer the innovative Winners represent “World Class” persolutions that GM needs. We view GM formance leaders in the areas of qualas a key partner in the automotive in- ity, technology, price and service.

Candidates Announced for 2015 SEMA Board Election; Online Voting May 13-June 9

The slate of candidates for the 2015 SEMA Board election is as follows:

Chairman-Elect Category (one open seat)

● Donnie Eatherly – President and CEO, P&E Distributors ● Wade Kawasaki – President and COO, Coker Group Manufacturers Category (two open seats)

● Susan Carpenter – President, JR Products ● Laurel Dasher – Northeast Sales Manager, Power Teq ● Dave Edmondson – Vice President, Roadwire

Distributor/Retailer Category (two open seats) ● Jim Bingham (Incumbent) – Pres-

ident and CEO, Winner’s Circle Speed & Custom ● Nick Gramelspacher (Incumbent) – Vice President Sales & Marketing, Meyer Distributing ● Parley Valora – Vice President, Premier Performance ● David Ziozios – CEO, Motovicity Distribution Services Category (1 open seat)

● Dan Kahn – President, Kahn Media ● Clint Sly – Chief Marketing Officer, Hagerty Insurance Co.

Voting will take place online between May 13–June 9 at 11:59 p.m. (PDT), 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. Winners will be announced in June and formally inducted into the SEMA Board of Directors at the SEMA Installation Gala in July. For more information about the 2015 SEMA Board of Directors election, contact Judi Ritchie at 909-978-6671 or judir@sema.org.

66 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

Honda Adds More Recalls on Takata Airbag Flaws

Bloomberg News has reported that Honda Motor Co. added about 100,000 vehicles in the U.S. to existing recalls for flawed airbags made by Takata Corp. after discovering it hadn’t properly identified these models as being produced for the market. The new recalls cover 104,871 units of the 2008 Honda Pilot SUV, 2001 Accord and 2004 Civic sedans, according to a filing posted on the website of the National Highway Traffic Safety Administration. The additions were made after the automaker identified the batches hadn’t been properly identified as being produced for the U.S. Honda’s latest recall comes after its U.S. advertising campaign on March 16 urging owners to immediately replace potentially lethal airbags. The automaker is trying to ensure car owners take action to prevent more fatalities and injuries after a rupturing airbag in a Honda car claimed a fifth victim in January. Takata bags can fail during deployment and propel metal shards at passengers, a flaw that has led to millions of vehicle recalls by at least 10 automakers. About 25 million vehicles with Takata airbags have been recalled worldwide since 2008, Reuters has reported. See related story this page.

Nissan Expands Recalls Tied to Takata Air Bag Flaws

Bloomberg News has reported that Nissan Motor Co. plans to expand a regional U.S. recall of cars with potentially defective Takata Corp. air bags after a woman said she was injured last month by shrapnel from the device in her 2006 Sentra sedan. Nissan will file an incident report with the U.S. National Highway Traffic Safety Administration to expand its recall, a company spokesman, Steve Yaeger, said in an interview. The expansion will cover Sentras from the 2004 to 2006 model years that weren’t part the earlier regional recall, Yaeger said. “Before that accident we didn’t have enough data to recall,” Yaeger said. “We’re moving as quickly as we can to expand the recalls.” Regulators are investigating airbag inflators that may malfunction, deploying with so much force that the part breaks and hurls metal shrapnel at the car’s occupants. At least five fatalities in the U.S. and more than 100 injuries have been reported industrywide. Lawyers for 20-year-old Sabra Wilson, who suffered cuts, burns and partial hearing loss in a March 21 accident in Louisiana, filed a lawsuit alleging the Sentra’s passenger-side air bag deployed even though no one was in the seat. See related story this page.

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National Auto Body Council Donates Nearly $3 Million in Recycled Rides™ Vehicles

Members of the National Auto Body Council (NABC) teamed up in 2014 to donate nearly $3 million in refurbished vehicles, positively changing the lives of 200 individuals and their families through the organization’s Recycled Rides™ program. Progressive Insurance led the effort in 2014, partnering with NABC shops across the country to donate vehicles to 117 military service members and veterans. GEICO, Allstate, State Farm, Esurance, Farmers and Insurance Auto Auctions each donated at least 10 vehicles, with the additional vehicle contributions from Hertz, Enterprise Rent-a-Car and Copart. Caliber Collision team members led the effort on the repairer side, volunteering personal time to refurbish 20 Recycled Rides vehicles. Service King, CARSTAR, ABRA Auto Body & Glass, Gerber Collision & Glass, the Van Tuyl Group and many more independent body shops all contributed to the success of the 2014 Recycled Rides effort. A future generation of collision repair professionals also had the opportunity to participate in community service projects through the Recycled Rides program while learning their craft at

Washburn Institute of Technology, Manhattan Area Technical College, Western Nevada College, Pennsylvania College of Technology, and Technical College High School–Brandywine. “Recycled Rides is a life-changing experience not just for the recipients but for everyone who participated and contributed to the event,” said Nick Notte, NABC Chairman. “We are very proud that through Recycled Rides, members of the National Auto Body Council are able to make an impact in their local communities as well as showcase the professionalism and integrity of our collision industry.” According to Rick Tuuri, NABC’s Recycled Rides Program Chair, the momentum and successful efforts from Recycled Rides in 2014 have carried through into 2015. To date, 79 Recycled Rides vehicles have already been donated or are in the process of completion. Chuck Sulkala, NABC Executive Director, urged industry members to step up in 2015 to donate more vehicles and sign up to host Recycled Rides events. “We have many more yet unfulfilled requests from nonprofit organizations seeking transportation on behalf of their clients,” said Sulkala. “Our in-

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dustry is in the unique position to make a difference in the lives of these individuals by providing reliable transportation so they find and maintain jobs, take care of their families, and rebuild their lives.” The National Auto body Council’s mission is to develop, implement and promote community-based initiatives that exemplify the professionalism and integrity of the collision repair industry. In addition to Recycled Rides, the National Auto Body Council’s community initiatives include: ● First Responder Emergency Extrication—One-of-a-kind vehicle extrication program that provides local firefighters and/or first responders with the opportunity to practice hands-on, life-saving techniques on late model vehicles and the challenges they present from advanced metals to multiple restraint systems.

● Distracted Driving Initiative –NABC partners with national organizations, such as AT&T on the “It Can Wait” campaign, to provide resources to implement local community efforts that help save lives by educating drivers of all ages about the dangers of inattentive and distracted driving.

Progressive Plans to Charge Risky Snapshot Drivers More

Progressive Corp., the fourth-largest U.S. auto insurer, said it will begin increasing rates for some risky customers who participate in a program that allows the company to electronically monitor driving habits. The decision to lift premiums is a shift for Mayfield Village, Ohio-based Progressive, which previously highlighted how customers can agree to a rate and then win discounts for safe behavior. Its Snapshot program rewards customers who drive fewer miles, avoid hard braking and minimize travel from midnight to 4 a.m., according to the company’s website. “In our new program that we just began to roll out, we are affording more customers discounts for their good driving behavior while for the first time, increasing rates for a small number of drivers whose driving behavior justifies such rates,” the company said in its annual report this month. Chief Executive Officer Glenn Renwick has said Snapshot could help the company encourage safer behavior and retain the most valuable customers. He has lamented the reluctance of some potential customers to sign up for the offering.

Chief Names Richard Perry OEM Liason Sales Manager

Chief Automotive Technologies has named Richard Perry OEM and strategic account sales manager. Perry previously served as global repair product manager for Chief, and has been with the company since 1996. In his new role, Perry will work side-by-side with OEM engineers to ensure Chief collision repair products work properly with the next generation of vehicles. He will provide OEMs with input about proper collision repair procedures, while also leveraging his knowledge of new vehicle design to grow the Chief product line. Perry will help introduce new collision repair products, technologies and procedures to other key customers. He will continue to serve on the I-CAR International Board of Directors, act as a collision advisor for SkillsUSA, and represent Chief at Collision Industry Conference (CIC) and National Automotive Technicians Education Foundation (NATEF) meetings. “I am excited to have someone of Richard’s caliber on the Chief sales team,” says Bob Holland, director of collision in North and South America for Chief parent company Vehicle Service Group (VSG).

PartsTrader Says Integration to Help Dealers Quote Parts

PartsTrader® has announced that an integration project is in development with DMI Inc., a business unit of CDK Global. The integration is designed to help OEM automobile dealers more efficiently respond to quote requests from collision repair shops. When responding to a quote request PartsTrader will automatically update inventory information and pricing from the dealers own Dealer Management System (DMS). This information will be displayed on the PartsTrader quoting screen so that dealers no longer have to access multiple systems to quote accurately. Prices will be updated automatically based on the dealers settings and allow dealers to better understand the profitability on a part by part basis. For repair shops requesting a quote, the response from dealers using the DMI data services platform will be faster, and have greater accuracy in its quote components. More accurate pricing during the estimating process will reduce estimate supplements benefiting both repairers and insurers. “With this integration with the DMI platform, PartsTrader continues to streamline the quoting process on both sides of the buyer and seller relationship,” said Dale Sailer, VP.

www.autobodynews.com | MAY 2015 AUTOBODY NEWS 69

CIF Elects Jeff Peavy to Board of Trustees

The Collision Industry Foundation (CIF) recently elected Jeff Peevy with I-CAR to the Board of Trustees to carry on the Foundation’s initiatives throughout the coming years. Jeff Peevy is a well-known speaker and moderator at industry conferences and events across the United States. Peavy is the Senior Director of Field Operations and Segment Development at I-CAR. As a 32 year industry veteran, he has been a technician, shop manager, instructor, National PBE Manager for a large U.S. supplier, and Director of Technical Training and Application Research for an automotive paint manufacturer. Peavy stated, “During hurricane Katrina I saw firsthand how important the CIF mission is and look forward in assisting in its growth and promotion.” Chairman William Shaw commented on Peevy’s appointment, saying, “The CIF Board of Trustees is very excited and honored to have Jeff join our team. His industry experience and credibility is only shadowed by his passion to help others. He will be a key contributor to delivering the CIF’s mission of helping collision industry professionals in need.”

ARA’s 8th Annual Hill Day and State Legislative Summit Allows Industry Members to Educate Congress The Automotive Recyclers Association (ARA) held their 2015 Hill Day and State Legislative Summit in Washington, DC on March 16 and 17, and over the course of those two days, association members from across the country had the opportunity to educate Members of Congress and their staff about the industry. Participants also received current information on ARA’s issues and activities as well as enjoying some time networking with their automotive recycling peers from other areas of the U.S. and even other countries. When the State Legislative Summit began on March 16, attendees received information on recent legislative successes and current problems facing auto recyclers by various state legislatures. Attendees identified key issues impacting the automotive recycling industry in a discussion led by Norman Wright, ARA’s Past President and Governmental Affairs Committee Chairman, and Jessica Andrews, ARA’s Director of State Government Affairs. Andrews identifies some of these issues as “access to salvage and end-of-life vehicles, efforts to incorporate NMVTIS reporting and enforcement into state statute, build-

New Data: U.S. Drivers Did 3 Trillion Miles Last Year

New estimates released by the U.S. Department of Transportation’s Federal Highway Administration (FHWA) show that Americans drove nearly 3.02 trillion miles in 2014, the highest point since 2007 and the second-highest since data collection began 79 years ago, fueling calls for greater investment in transportation infrastructure to accommodate growing volumes of traffic. The new data reaffirm projections made by U.S. Transportation Secretary Anthony Foxx in “Beyond Traffic,” his 30-year vision for transportation, which shows significant increases in gridlock nationwide unless changes are made in the near-term. “Americans are driving their cars at near-record levels, and being stuck in traffic is costing drivers an average of nearly five days a year,” said Secretary Foxx. “To ensure this problem doesn’t get worse, greater innovations and investments are needed. We can’t keep treating America’s 21st-century traffic needs with 20th-century solutions.” According to FHWA’s latest “Traffic Volume Trends” report—a monthly estimate of U.S. road travel—Americans drove an estimated 3.015 trillion miles last year, roughly the same distance as 323 round trips from Earth to Pluto.

Drivers in December 2014 logged 251.4 billion miles, the highest level for any December since data collection began in 1939. At 5 percent higher than the previous December, it was the year’s biggest single-month increase and the nation’s tenth consecutive month of VMT growth. Traffic in the South Gulf—a block of eight states including Texas and Kentucky—rose to nearly 49.1 billion vehicle miles traveled (VMT), a gain of 6.4 percent over the previous December and the tenth consecutive month of increased traffic for the region. All states recorded traffic increases in December. At 10.5 percent, Indiana led the nation with the largest single-state traffic increase compared to the same month a year earlier, followed closely by Oklahoma at 9.3 percent and Montana at 8 percent. “Data like these are critical to helping federal and state transportation leaders understand the challenges facing American drivers,” said Deputy Federal Highway Administrator Gregory Nadeau. “The nation’s growing demand on roads and bridges underscores what we have been saying—increased investment is needed if we are to keep our roads from becoming parking lots.”

70 MAY 2015 AUTOBODY NEWS | www.autobodynews.com

ing relationships with industry stakeholders and state governmental agencies, and the importance of keeping an eye on local and city regulations.” This discussion led to a sharing of resources, such as legislative language, past experiences and issue strategies. The group’s ultimate goal, according to Andrews, was “enhancing ARA’s grassroots advocacy structure.” Later that afternoon, Speaker of the U.S. House of Representatives John A. Boehner (R-OH) made a special guest appearance to speak to ARA members about major issues impacting the nation, and he encouraged attendees to recognize the importance of being aware of and staying involved with concerns facing their own businesses and the professional automotive recycling industry as a whole. According to Michael E. Wilson, ARA’s CEO, “Speaker Boehner entertained questions by the very appreciative group for over 30 minutes. It was an historic moment for our industry to be the focus of the Speaker’s remarks, and ARA members now know that their issues are understood at the highest level of the U.S. Congress.”

On March 17, ARA proudly held their annual Hill Day event with members representing 23 states engaging in more than 70 congressional meetings, 25 of which were scheduled with actual Members of Congress. These elected representatives repeatedly stressed the importance of programs like ARA’s Hill Day to help them make informed decisions on policies impacting the automotive recycling industry and the use of recycled OEM parts. According to Wilson, “In addition to ARA members talking with their congressional delegations about the general industry issues and local concerns, they also educated policymakers about the need for auto manufacturers to provide parts data to all stakeholders in the automotive parts supply chain, especially in light of the ongoing and increasing recall campaigns. In the coming weeks, ARA staff will be following up on the relationships that ARA members initiated and cultivated during these events.” ARA www.a-r-a.org

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