June 2012 Western Edition by Autobody News

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The Death of SB 1460… For Now by Ed Attanasio

Some legislative bills have more lives than cats. Usually, when any piece of proposed legislation gets defeated for one or more reasons, it is then re-written, re-packaged and amended, hopefully just enough to make it through in a different form that will appeal to more legislators the second or third time through. If it eventually becomes a law, it means it survived several rounds and reincarnations, in almost every case.

Recently, SB 1460, known as the “aftermarket crash parts bill,” died when it didn’t get enough support to go up for vote by the Senate Committee on Judiciary in Sacramento on April 24. Written by Senator Leland Yee, the bill would have basically allowed the use of certified aftermarket parts in repairs, as long as they “shall be presumed sufficient to return the motor vehicle to its pre-loss condition.” Although it looked fairly harmless when read by the untrained eye, See California SB 1460, Page 8

CCRE’s President Tony Lombardozzi talks with Autobody News about his organization’s vision for a truly independent collision industry

by Chasidy Rae Sisk see p. 14

IA L SP E C T ISSUE PAIN

REFINISH PAINT &

of 3 issues

OGIES TECHNOL

VOL. 30 ISSUE 5 JUNE 2012

State Farm’s PartsTrader Program Encounters Significant Opposition, Not Just From its DRPs State Farm’s forced implementation of its PartsTrader e-bidding process within its Select Service Program shops has ignited a firestorm of criticism from the industry, not just from its own DRPs. Usage of the PartsTrader software, developed in New Zealand, has been required by the insurer in several test markets nationwide, including Tucson, AZ, and Birmingham, AL, however several sources have reported shops dropping the Select Service Program as a result, up to 40% in some markets. The Alliance of Automotive Service Providers (AASP), the Society for Collision Repair Specialists (SCRS), and the Automotive Service Association (ASA) as and numerous independent industry observers have come out with strong statements cautioning their members against State Farm’s bidding process for parts procurement. AASP called it “an unprecedented and uninvited intrusion into the business of collision repair.” The AASP released the following statement, which reads in part: “Despite posturing from the largest national insurance carrier on what it believes to be positive attributes of the program, collision repair facilities, parts suppliers, parts manufacturers and interested parties around the country have been consistent in their perception that this type

of activity will ultimately harm their businesses and the customers they serve. “Collision repairers are in the business of selling parts, labor and materials at a retail level. Each of these revenue sources contributes to the overall success of the roughly 35,000 small businesses across the nation, allowing the business to provide employment opportunities to individuals within their community and invest in the necessary equipment and training needed to provide customers with safe, quality repairs. As is the case with all types of business—including the business of insurance—the pursuit of a return on investment (profit) is a core principle, and one that collision repairers should neither apologize for nor relinquish to the influence of other parties. “Insurers are in the business of insuring risk and then settling losses at market value when those losses occur. As the payer of claims, insurers should not be “market makers” for pricing of individual products and services that are components of final invoices. To date, insurance pressure and influence over collision repair market pricing has driven average profit margins to low single-digit figures, despite the fact that the business of collision repair has a high cost of entry and requires ongoing capital inSee PartsTrader, Page 4

Summit Software’s President and Head Sherpa Frank Terlep talks with Autobody News about the state of Digital Media for the Collision Industry

by Melanie Anderson see p. 50

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Contents

NATIONAL 1,700 Exhibitors Have Confirmed Spaces at SEMA . . . . . . . . . . . . . . . . . . . . . . . . . 59 AkzoNobel Announces 2012 FIT Sustainability Awards . . . . . . . . . . . . . . . . 52 AkzoNobel Announces 2012’s Most Influential Women. . . . . . . . . . . . . . . . . . . 12 ASA Says it is ‘Fact Finding’ on State Farm’s PartsTrader . . . . . . . . . . . . . . . . . . . 4 ASAA to ‘Educate’ Legislators on Aftermarket Parts . . . . . . . . . . . . . . . . . . . 31 Bill to End Fossil Fuel Subsidies Introduced to Congress . . . . . . . . . . . . . . . . . . . . . . . 12 BMW Recalling Diesel Vehicles or Fuses . . . . 34 BMW Replaces Toyota as Most Valuable Automotive Brand. . . . . . . . . . . . . . . . . . . 34 Carfax Study Shows Consumer Threatened by Ignoring Recalls . . . . . . . . . . . . . . . . . 34 CCC Becomes Exclusive Provider of

PAINT SPECIAL

Audi A3 Development with Master Jigs and Color Matching . . . . . . . . . . . . . . . . . 18 Auto Painting USA Collision Specializes in Cosmetic Repair . . . . . . . . . . . . . . . . . . 42 Custom Painter Jim Hetzler Started Out at Age 13 with a Model Car . . . . . . . . . . . . . 49 DuPont™ Cromax® Pro is the Ultimate Upgrade for Your Refinish Painting Process . 41 House of Kolor® Colors Automotive World for 56 Years . . . . . . . . . . . . . . . . . . . . . . . 54 Legendary “Crazy” Painter Mitch Kelly Cites his Top 5 Projects . . . . . . . . . . . . . . 46 Top Hot Rod Shines ‘Brilliant Red’ Bright with Glasurit® Paint . . . . . . . . . . . . . . . . . 44

talented teammates and skilled technicians to our base of nearly 1,400 Service King teammates throughout Texas,” added Abraham. “We are very excited about Auto Body World joining the Service King Team,” stated Mark Turner, Auto Body World’s President. “Both companies believe that we’re a great match for each other, in that we share very common cultures, and while Service King brings national insurance relationships and financial strength, Auto Body World brings dominance in a new market, with a strong operations team and platform for rapid growth.” Cathy Bonner, CEO of Service King stated, “In DFW and Houston, Service King has been recognized as one of the “best places to work” by the Dallas and Houston Business Journals, and we plan to bring our same level of health, retirement, and career benefits to all new teammates in Arizona.” Said Eddie Lennox, “Service King is one of the fastest growing US based collision repair companies is because of the team we have in place. The people in this company focus on what’s most important and take pride in providing the best service and quality collision repairs, while caring for our customers.”

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Audi Wholesale Parts Dealers . . . . .18 Automotive ID . . . . . . . . . . . . . . . . . .36 BASF . . . . . . . . . . . . . . . . . . . . . . . .11 BMW Wholesale Parts Dealers . . . .40 Buerge Chrysler-Jeep-Dodge . . . . . .7 Chief Automotive . . . . . . . . . . . . . . . .9 Classifieds . . . . . . . . . . . . . . . . . . . .62 CSS USA, Inc. . . . . . . . . . . . . . . . . .25 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .23 Drew Hyundai . . . . . . . . . . . . . . . . .26 DuPont . . . . . . . . . . . . . . . . . . . . . . . .5 Elk Grove Toyota . . . . . . . . . . . . . . . .6 Enterprise Rent-A-Car . . . . . . . . . . .57 Equalizer Industries . . . . . . . . . . . . .10 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .47 G & C Auto Body . . . . . . . . . . . . . . .35 Galpin Motors . . . . . . . . . . . . . .27, 37 Garmat USA . . . . . . . . . . . . . . . . . . .46 GM Wholesale Parts Dealers . . . . . .53 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .42 I.C.E. Institute . . . . . . . . . . . . . . . . . .12 Innovative Tools & Technologies . . .30 Kearny Mesa Subaru-Hyundai . . . . .31 Kia Motors Wholesale Parts Dealers .45 Levan Group, Inc. . . . . . . . . . . . . . .24 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Western

COLUMNS Franklin - Positioning Your Shop . . . . . . . . . . 57 Gonzo - Comparing Automotive Parts: Is it Apples to Apples? . . . . . . . . . . . . . . . 35 I-CAR Tech - Bonding and Rivet Bonding Technology on Steel BMW Vehicle Parts . . 36 Insider - Is the State Farm Elephant in the Room a Bad Elephant? . . . . . . . . . . . . . . . 56 Nigro - Q&A with Chuck Gosney of Collision Billing. . . . . . . . . . . . . . . . . . . . . 58 Schroeder - 48 Years Young, Grand National Auto Body Looks to a New Future . . . . . . . . 6 Sisk - CCRE 2012 Seminar—Taking Back the Collision Repair Industry . . . . . . . . . . . 22 Yoswick - Shops and Insurers Discuss Indemnification in DRP Contracts . . . . . . . 55

UpdatePromise. . . . . . . . . . . . . . . . . . . . . 43 Chris Evans Appointed Chairman Emeritus . . 31 Chrysler ‘Fires on All Cylinders’ . . . . . . . . . . 21 Chrysler Recalls 68,000 Jeep Wranglers for Fire Concerns . . . . . . . . . . . . . . . . . . . 34 Chrysler to Recall 127K Dodge Chargers and 300’s for Fuses . . . . . . . . . . . . . . . . . 34 Collision Section Secures Exhibit Space at SEMA Show . . . . . . . . . . . . . . . . . . . . . 37 Distracted Driving No. 1 Killer, Especially Texting Teens . . . . . . . . . . . . . . . . . . . . . . 34 Enterprise Introduces Customer Repair Notification Tool . . . . . . . . . . . . . . . . . . . . 37 Female Technician Leads New Reality Series for TV . . . . . . . . . . . . . . . . . . . . . . 53 Florida Shop Owner Arrested for Impersonating Adjuster. . . . . . . . . . . . . . . 60 Ford Blocks JAC from Selling Blatant F-150 Knock Off. . . . . . . . . . . . . . . . . . . . 34 Ford Recalls 10.500 Vehicles for Transmission Sensor Issues . . . . . . . . . . 34 Ford Tweaks GM and Doubles Down on Facebook Advertising . . . . . . . . . . . . . 39 Forgetting to Use Blinkers Caused 2 Million Accidents. . . . . . . . . . . . . . . . . . 30 GM to Stop $40M in Facebook Advertising— “it’s ineffective” . . . . . . . . . . . . . . . . . . . . . . 39 Honda’s Traffic Congestion Technology Could Help Flow . . . . . . . . . . . . . . . . . . . . 12 I-CAR Introduces New Series of Online Courses . 31 Maaco Employee in PA Arrested after Police Radio Stunt . . . . . . . . . . . . . . . . . . . . . . . . 4 NHTSA on Accident Avoidance . . . . . . . . . . . 25 Nissan Recalling Certain 2012 Titan Pickups for Mislabeling . . . . . . . . . . . . . . . . . . . . . 34 OMB Reviews EPA Rule on Waste Exemptions for Wipes. . . . . . . . . . . . . . . . 27 Pylon Offers Do-It-Yourself Kits. . . . . . . . . . . 43 Repairers Have Their Say at SCRS NIIF in OK . . 60 SCRS Presents Repairer Driven Education Series at 2012 SEMA Show . . . . . . . . . . . 61 Sharing the Message with CCRE President Tony Lombardozzi . . . . . . . . . . . . . . . . . . 14 State Farm Issues Damage Control Video . . . 52 Summit Software Releases Next Gen iPhone Apps. . . . . . . . . . . . . . . . . . . . . . . 52 Taiwanese Auto Parts Makers Eye Recovering US Market . . . . . . . . . . . . . . . 30 The Death of SB 1460… For Now . . . . . . . . . 1 V2V Communications a Hit . . . . . . . . . . . . . . 37 Vote Now for Your SEMA Board of Directors . 52 Why Your Body Shop Can’t Ignore Social or Digital Media . . . . . . . . . . . . . . . . . . . . 50 Women’s Industry Network 6th Annual May Conference Hosts 200 Women . . . . . . . . . 28

Texas-based, Service King Collision Repair is partnering with Auto Body World, Inc., with nine large scale, high volume locations throughout metro Phoenix and Casa Grande. Terms of the agreement were not disclosed. The transaction is expected to close in July 2012. By joining Service King, Auto Body World will become a part of the third largest collision repair company in North America with 48 Texas locations throughout the Dallas, Ft. Worth, Houston, San Antonio, and Austin areas. Service King’s expansion across Texas over the last three years has taken Service King from the 6th to the 3rd largest collision repair company in North America, doubling revenue and location count. “We welcome our new teammates in Arizona to the Service King family,” said Service King’s President, Chris Abraham. “We’re excited about the opportunity here. Arizona is special because it’s our first venture outside of Texas, but it’s not our last.” “Service King is committed to continuing Auto Body World’s long tradition of excellent customer service and quality repairs with good relationships in the insurance industry. We look forward to adding Auto Body World’s

Indexof Advertisers

REGIONAL America’s Car Museum Celebrates Grand Opening . . . . . . . . . . . . . . . . . . . . . 17 Auto Body World Opens 9th Shop in Phoenix, AZ . . . . . . . . . . . . . . . . . . . . . . . 17 Body Shop Customer Attempts Rescue of Elderly Fire Victim. . . . . . . . . . . . . . . . . 39 CAA Meeting Orange County . . . . . . . . . . . . . 9 CAA San Diego Golf Tournament . . . . . . . . . . 9 CAA Valley Meeting-Ventura . . . . . . . . . . . . . . 9 Cooks Collision Centers Acquires 6 Shops in So. Cal . . . . . . . . . . . . . . . . . . . . . . . . . 27 Daughter of AZ Shop Owner Writes About Drinking & Driving . . . . . . . . . . . . . . . . . . 59 East Bay CAA Chapter Gets I-CAR Updates at April Meeting . . . . . . . . . . . . . . . . . . . . 10 Fire Hits Seattle Shop . . . . . . . . . . . . . . . . . . . 9 Former Body Shop Owner Phillip Smith Dies . 17 Glendale-Foothill CAA Chapter Focuses on BAR Compliance . . . . . . . . . . . . . . . . . . . 38 Golden State Collision Centers Donates Two Vehicles . . . . . . . . . . . . . . . . . . . . . . 25 Leading Edge Receives BASF Automotive Refinish Distributor of the Year Award . . . . 26 Museum for Ford’s Model A . . . . . . . . . . . . . 25 New Look Joins Nissan Network. . . . . . . . . . . 9 Santa Clara Golf Tournament . . . . . . . . . . . . . 9 SCC–CAA Members Breathe Easier After 3M Presentation . . . . . . . . . . . . . . . . . . . . 24 St. Louis, MO Hail Damage Hit Rental Fleets Too. . . . . . . . . . . . . . . . . . . . . . . . . 39 Twenty Million Dollar Art Collection. . . . . . . . 61 Vehicle Incidents at Schools . . . . . . . . . . . . . . 9 Web-Est Adds No-Cost Paint Codes to Estimating Platform . . . . . . . . . . . . . . . . . 12

Service King Acquires Arizona’s Auto Body World

Mazda Wholesale Parts Dealers . . .61 MINI Wholesale Parts Dealers . . . . .54 Mitsubishi Wholesale Parts Dealers .55 MOPAR Wholesale Parts Dealers . .19 Moss Bros. Chrysler-Jeep-Dodge . .13 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .48 North County Kia . . . . . . . . . . . . . . . .4 PCL Automotive . . . . . . . . . . . . . . . . .8 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Preval . . . . . . . . . . . . . . . . . . . . . . . .64 Rare Parts Inc. . . . . . . . . . . . . . . . . .14 RBL Products, Inc. . . . . . . . . . . . . . .16 Replica Plastics . . . . . . . . . . . . . . . .38 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .20 Safety Regulation Strategies . . . . . .44 SATA Spray Equipment . . . . . . . . . .21 Shingle Springs Nissan-Subaru . . .17 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .39 Solution Finish . . . . . . . . . . . . . . . . .56 Star-A-Liner . . . . . . . . . . . . . . . . . . .28 Subaru Wholesale Parts Dealers . . .51 Timmons VW-Subaru . . . . . . . . . . . .43 Toyota Wholesale Parts Dealers . . .58 Volkswagen Wholesale Parts Dealers .59 Volvo Crash Wholesale Dealers . . .52 Weatherford BMW . . . . . . . . . . . . . .15

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 3

Continued from Cover

PartsTrader

vestments to keep pace with automotive technologies. “Feedback from other markets outside the U.S. familiar with insurermandated bidding platforms indicates that the State Farm parts bidding program is a win-lose scenario, with repairers losing both profit and control of their business. Furthermore, the negative impact of this parts program has the very real potential to quickly spread beyond parts to other areas, such as paint, and beyond the boundaries of voluntary direct-repair program (DRP) agreements to the industry at large. If State Farm contends that this parts program is indeed good for the collision industry, surely the industry would embrace the program on a voluntary basis – assuming the benefits of the program did indeed extend to more participants than just the carrier. “The collision repair industry has gradually transitioned from a proud trade of hard-working owners and employees to a service provider that sub-

contracts to the insurance industry, working on net margins that it no longer controls and that jeopardize its ability to invest in its business and attract and train qualified employees to ensure safe and quality repairs. AASP has grave concerns for its members’ future welfare if giant insurance corporations are permitted to trample on the free market philosophies that support a culture of small business success.”

John Shoemaker, of JSE Consulting, released the following statement; “The collision industry has weathered situations like this as in the Safelite Glass Program and Greenleaf salvaged parts program. Both these insurance company directed programs whittled away the shop owner’s ability to make a business decision that benefited the shop. All shop owners develop an expectation on how their business should operate as well as establishing the profit margins necessary to ensure survivability. They have developed business partnerships with local businesses to ensure that their profit margins are maintained. In-turn the local business have relocated stores to become more conven-

ASA Says it is ‘Fact Finding’ on State Farm’s PartsTrader

The Automotive Service Association (ASA) is conducting a multi-segmented fact-finding mission on State Farm's new electronic parts procurement program “to ensure the information collected and provided to the ASA membership and the broader industry is as accurate and thorough as possible.” An ASA Collision Division team consisting of operations committee members and staff recently interviewed George Avery, State Farm’s claims consultant, regarding the pilot program. ASA has since posed some follow-up questions and will issue further statements as conversations continue. Several additional interviews are being set up with other industry parties involved in the program. ASA says that as each exchange is factchecked for clarity, updates will be shared with ASA members and the industry at large. “State Farm’s pilot program has a potential to have a tremendous impact on the collision repair industry and the motoring public,” said Denise Caspersen, ASA Collision Division manager. “It is vital for ASA to approach this situation methodically with an emphasis on facts to ensure that the results of the pilot are in the best interest of the collision repairer.

ASA has an obligation to provide our membership, and the industry, as much factual information as possible – just as State Farm has an obligation to answer the community’s concerns. ASA also has a responsibility to address issues directly with the parties involved to provide recommendations and solutions benefitting repairers, consumers and the industry.” Several of ASA’s volunteer leaders representing the collision repair membership also spoke with Rob Cooper, CEO of PartsTrader LLC. ASA’s questions focused on implementation plans, supplier qualifications, data extraction and quality checks on recommended parts. ASA is also following up with Cooper with additional questions and comments. “This pilot program, which reaches beyond the insurer/repairer relationship, is at a pivotal point to potentially allow adjustments to the program as a result of industry input and analysis,” said Caspersen. “If this tool is to go forward and benefit the entire industry, it requires transparency, mutual understanding and collaboration. ASA is committed to a collaborative process that produces the best possible outcome for the collision repairer. ASA says the key questions are the financial impact of the program on body shops.

4 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

ient, stocked more parts and negotiated with shop owners to maintain an edge on their market. The State Farm Parts Program negates these partnerships forcing shop owner’s to purchase parts from an unknown outside their market. As insurance companies move farther away from insuring vehicles and go deeper into the repair process shop owners will see further erosion of their ability to run their business. First it was glass, now it is parts, tomorrow it could be paint. “Another issue I have with the State Farm Parts Program is the distraction it has caused in the collision industry. Every blog I read, every magazine I open up and every shop owner I talk to has the State Farm Parts Program on top of their mind. Everybody is up-in-arms about it and not paying attention to the immediate tasks on hand. If you look around you will see that this program has caused distractions far beyond parts! “My last thought on this is that shops are dropping State Farm as a DRP, up to 40% in some markets and State Farm does not care. They are contacting shops that were previously dropped from the DRP program for

multiple reasons and signing them back up if they agree to the parts program. Does that mean that you can be a poor performer and as long as you accept their parts program you are good again?” See additional reaction at www.autobodynews.com, including SCRS’ statement and Scott Biggs’ blog: “State Farm – Parts Trader: It’s about losing profit, control, and your very survival” which can be read at ScottBiggs.com. See also “State Farm Issues Damage Control Video,” this issue, p. 52. www.autobodynews.com The Insurance Insider column in IT OUT! this issueCHECK also addresses the controversy, on p. 56.

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Shop Showcase

Erica Schroeder was assistant editor at Autobody News in Carlsbad, CA. She has relocated to the East Coast and has been replaced by Melanie Anderson. Contact manderson@autobodynews.com, or 800-699-8251

48 Years Young, Grand National Auto Body Looks to a New Future with Erica Schroeder

Forty-eight years young, Grand Na- achieve 100% customer satisfaction. tional Auto Body in Canoga Park, CA, We have hired an outside company to recently underwent a complete re- conduct monthly customer service folmodel and will celebrate its Grand Re- low ups to ensure that our customers with John Yoswick Opening June 21. The shop is inviting are 100% satisfied. This gives us the insurance managers, supervisors and opportunity to see where our facility local agents , and the chamber of com- might be lacking and make any necesmerce for Calabasas and Canoga Park, sary improvements.” as well as their customers, of course. Grand National also works closely with VeriFacts. VeriFacts’ Verwith Ed Attanasioified Quality (VQ) confirms that a repair facility has all the resources to achieve a safe and proper repair. Grand National’s technicians also use ALLDATA Collision for manufacturers’ collision repair information. Back in 1990, Salinas got his start in the collision business working with Ed Attanasioat Mercury Insurance in the mail room. He quickly moved to a dispatch The New Loby operator position, and moved on to be“We want our customers to have come an estimator. Salinas became inan overall excellent experience here at terested in the auto repair industry at our shop,” said co-owner Robert this time and, after a couple years, Salinas. “And that shows from the landed a job at National Auto Body as minute they step through the door. their head adjuster. At the time, the Customers can relax in our newly recompany was owned and operated by modeled 1,200-square-foot waiting his now-partner Bruce Wright. Saliroom that includes a flat-screen TV, nas had joined the company prior to and comfortable couches and chairs. the merger and when one of the ownWe have relied on our customers just ers decided it was time for him to sell as much as they have relied on us.” his half of the business, Salinas took National Auto Body was founded the opportunity to become part owner in 1970 and merged with Grand Prix in the company. Auto Body in 1995 to become Grand Salinas was still learning a lot National Auto Body, Inc. G r a n d about the industry back then, but felt National is a 20,000-square-foot re- that he was ready to take ownership pair facility located in the heart of the and that his contribution would help San Fernando Valley and consists of the company grow. With the help of a two separate buildings, located across mentor, Salinas learned everything he the street from one another. One build- needed to know about repairing cars. ing is strictly dedicated to paint. The As co-owner, Salinas began to shops employs 22 people and the top seek out several DRP relationships in technicians have been with the com- order for Grand National Auto Body pany for over 17 years. to grow, which have been maintained. Quality workmanship has always Salinas stresses that whomever the been consistent at Grand National and customer is insured by, “regardless if Salinas attributes this to continuing we are, or aren’t, a direct repair facileducation, including I-CAR training, ity for [their] current insurance comthat he and his employees receive. The pany, all of our customers receive the shop has invested a great deal of time same quality work and excellent cusin education to ensure that every re- tomer service.” pair is done to factory specifications. Salinas has always been a hands -on “Technology is always changing owner, which is good for his customers and keeping current with trade tech- as well as his employees. Having an niques is key to our company’s suc- owner readily available at all times really cess,” said Salinas. “We really do take has been beneficial to Grand National as pride in our work here and strive to a company, he said.

Bureau, I-Car Gold, and the Calabasas/Canoga Park Chamber of Commerce. Inside the waiting room, the company’s slogan is proudly displayed: “We here at Grand National are committed to extraordinary customer service & excellent craftsmanship. We focus & dedicate ourselves with the utmost professionalism at all times.”

Industry Insight

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6 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Bruce Wright and Robert Salinas (r)

Salinas is a member of The California Auto Body Association, Grand Nationals Affiliations, The Better Business

Grand National Auto Body 7259 Deering Avenue Canoga Park, CA 91303 (818) 887-1080 email: robertgnab@earthlink.net

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 7

Continued from Cover

California SB 1460

in the end, the bill put all of the responsibility on the repairer and the manufacturer of the part and distanced the insurance companies from any accountability for the ongoing performance of the part when used in repairs. The final blockage of SB 1460 took place on April 18 when the Department of Insurance (DOI) sent a letter to Senator Noreen Evans, Chair of the Senate Committee on the Judiciary, to announce its opposition of the bill. The DOI’s stance was made clear when Insurance Commissioner David Jones stated, “SB 1460, at best, obfuscates a rulemaking process already underway on this matter at CDI to update and improve existing law and, at worst, appears to reverse a long-standing law that has served to protect consumers from defective or inferior aftermarket parts for almost 20 years.” Jones went on to explain the other issues his department had with the bill, mainly that it negates established laws. He wrote “SB 1460 creates a new, unprecedented legal presumption that

‘certified, new non-OEM crash parts’ are sufficient to return the vehicle to its pre-loss condition using an arbitrary certification process. Existing law obligates the insurance company that required the use of OEM parts in terms of ‘kind, quality, safety, fit and performance.’ SB 1460 shifts current warranty obligations from insurance companies to ‘suppliers,’ thus significantly reducing existing warranty standards to the detriment of consumers. Existing law requires the insurance company that required the use of the non-original manufacture replacement crash parts to warrant such parts are of like kind, quality safety, fit and performance as original equipment manufacturer replacement crash parts.” CAA Executive Director David McClune was pleased and not surprised when the bill never went to vote on April 24. “The Department of Insurance (DOI) and the Bureau of Automotive Repair (BAR) were both prepared to testify against Senator Yee’s bill, so they pulled it,” McClune said. “We all had problems with the word ‘presumed’ in the bill, because it allows for way too much interpretation. Overall, we felt like it took the wrong approach

to addressing issues surrounding nonOEM crash parts and tried to eliminate current law (CCR section 2695.8 (g)). Before they re-introduce a new reworked bill, they will need to convene a working group of interested stakeholders to conduct discussions and work on alternative approaches to addressing issues surrounding non-OEM crash parts. This proposed legislation just isn’t going away anytime soon and there is no doubt that we will see it again in a new form, maybe this session or next year.” David Mello, a CAA political activist with 20 years of experience fighting bills like SB 1460, saw some very encouraging things going on during this process. He said, “This was a very shaky bill with big holes in it, so we figured it was destined to fail. The letter from the DOI played a big role, because it said it wasn’t protecting consumers, and that’s the big key. The fact that the BAR also stepped up and opposed the bill was exceptional, because they normally would not take a stance on something like this. And finally, it looks like we have an Insurance Commissioner who is going to listen to us!”

CAA Legislative Advocate Jack Molodanof knows that a re-written SB 1460 will return, but for now it may not be back until next session, he explained. “SB 1460 is definitely gone, but bills in Sacramento never die—they just come back in another form. Senator Yee withheld the bill and it was not heard, so technically it died for the year. We worked the bill and there was a lot of other opposition to it, including the trial lawyers, consumer protection groups and new car dealers, saying this was not the right way to go. Our position has been that aftermarket crash parts have improved over the years and they’re used in the collision industry every day. But, we’re consistently hearing that some of the time they work well, and other times they don’t. SB 1460 implied that these aftermarket parts will work properly every time, and we know that’s not the case. This was the biggest Achilles heel for the bill and the main reason it was defeated, we believe.”

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Vehicle Incidents at Schools

Two incidents involving vehicles and El Cerrito city schools left one person injured, police said. One incident occurred when material around a vehicle caught fire at El Cerrito High School's auto body shop. The automatic sprinkler system extinguished the flames. No injuries were reported in the fire. In an accident at the intersection of Moeser Lane and Avis Drive near Prospect Sierra Middle School, a motorist had to be removed from a car with rescue tools and was taken by ambulance to a hospital, said Sgt. Dave Hartung.

CAA San Diego Golf Tournament The 18th Annual California Autobody Association, San Diego Chapter Golf Tournament will take place on Saturday, June 2, at the Twin Oaks Course, 1441 N. Twin Oaks Valley Rd, San Marcos, CA. Registration is 6:307:30 AM with an 8:00 AM shotgun start. Fees are $110 per memberplayer and $130 for Non-member player. Fee includes BBQ lunch and 2 drink tickets. For more information, contact Hop Sanchez (760) 275-9246, but registration for the event closed on May 18th.

New Look Joins Nissan Network New Look Collision Center has announced that they are now part of the Nissan Certified Collision Repair Network. The premier Las Vegas auto body shop boasts state-of-the-art diagnostic and repair equipment, ASE and I-Car Certified auto mechanics and factory certification standing with seven major automakers. Since 2004, New Look Collision Center has been restoring cars to their exact new specifications, inside and out. Said owner Michael Whittemore, “For us, this fits with our ultimate goal of always exceeding the highest standards in everything that we do for our customers.”

29th Annual Santa Clara Golf

The 29th Annual California Autobody Association, Santa Clara Chapter Golf Tournament will take place on Wednesday, June 27, at the Cinnabar Hills Golf Club in San Jose, CA. The format is best ball scramble with a shotgun start at 1 p.m. Fees are $180 per player for tournament hole events, which include: hole in one for a car, longest drive and closest to the pin. For more information, contact Tabias Padilla (408) 406-7903 or Rudy Solorio (408) 876-3050.

Drew Ford’s Medallion Status

CAA Meeting Orange County

Fire Hits Seattle Shop

CAA Valley Meeting-Ventura

Drew Ford, a Ford dealer in San Diego County for over 75 years, has been awarded Medallion status for collision repair quality. The rating is very hard to achieve. There are only 54 Medallion-rated body shops in the U.S., but Drew is the first auto dealer facility ever to earn it. The unannounced Medallion inspections are conducted by VeriFacts. Inspectors electronically and meticulously document some 300 different aspects of the repair process. The Medallion rating must be continually re-earned with every inspection or status is revoked. Congratulations to Ted Stein.

A short in an electrical socket is to blame for starting a fire inside a West Seattle auto body shop in the 9200 block of 16th Ave. SW, according to fire officials. When fire crews responded they found the smoke coming from the business which was attached to a paint shop and auto dealership. The building was locked so firefighters had to force their way inside. It took crews a total of six minutes to put the fire out. They managed to keep it contained to a 10-foot portion of the ceiling in the auto body shop.

The California Autobody Association-Orange County Chapter met May 24 in Seal Beach. The meeting focused on compliance laws. Attendees were cautioned to prepare for compliance check inspections and be concerned because investigators could visit their shops, review business records, interview employees, and inspect shops for compliance of labor laws, health and safety regulations and tax compliance. The meeting covered what auto body shops need to know about these inspections and what type of violations are looked for and why. The California Autobody Association Valley-Ventura Chapter met May 23 at the Hilton Woodland Hills. Guest speaker Tim Ronak from Akzo Nobel spoke on the topic, "Got Surveyed - Is It Fair in Your Area?" regarding economic pricing considerations for the collision industry in 2012. Ronak answered questions about why labor rates vary in close geographic areas, what conditions create pricing pressure in a market and the difference between a retail door rate and a wholesale door rate, among several other topics.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 9

East Bay CAA Chapter Gets I-CAR Updates at April Meeting by Ed Attanasio

On April 17, the East Bay California Autobody Association (EB-CAA) held its monthly meeting at Scott’s Seafood in Walnut Creek to network with other collision professionals and listen to the evening’s featured speaker, Gene Lopez. Lopez was hired in 2009 by I-CAR as a regional manager to head the organization’s Southwest region, headquartered in Glendora, CA. Before receiving the assignment, Lopez was the Director of Development for Seidner’s Collision Centers and was also a part-time instructor for I-CAR. Lopez’s experience includes material inventory management in aerospace, medical implant devices and automotive refinish sales. He has received numerous awards and recognition in management, sales and personal development. He is the recipient of the Automotive Management Institute (AMI) “Tom Babcox Award” for his desire to improve the automotive service industry through management education. He has been certified by the California Department of Insurance to facilitate Continuing Education course work to insurance agents. Lopez has earned the AMI accreditation AAM (Accredited Automotive Manager). He has also held several volunteer positions in the collision repair industry, including serving as a committee chairperson for CIC, participating on several high school and college advisory boards, and serving as a member of the South Coast Air Quality Management District’s task force on Monitoring, Recording, and Reporting Volatile Organic Compounds. He has been a former part-time I-CAR instructor and an I-CAR volunteer since 1994. Lopez shared valuable information about recent changes within ICAR and hoped to dispel any misconceptions amongst collision professionals and body shop owners/managers about the renewed purpose and new direction for the training entity. First, you need to say goodbye to I-CAR’s former requirements and say hello to the new and improved but more stringent rules, Lopez said. “The old rule was that anyone who worked on cars in the shop had to complete five I-CAR courses and pass the associated post tests. But now in 2012, the

requirements have changed and each organization’s four role representatives (one estimator, one non-structural tech, one structural tech and one refinisher tech) need to fulfill ProLevel 1® Platinum individual require-

Gene Lopez

ments to qualify their company as a Gold Class Professional designation. “The old rule was this—if everyone passed five tests and took two more courses every year ongoing— that fulfilled the requirement,” Lopez said. “ But, we changed it in July of 2010 when we started Phase I of the Professional Development Program® and until 12/31/11, we offered two options: 1) They can stick to the original 5/2 plan, as long as they maintain it; or 2) They now have to achieve 100% of the ProLevel 1® for the organization’s four role representatives, and that’s very important. Everyone else in the organization that repairs vehicles has to complete a six-hour annual requirement (two classes) to maintain a ProLevel 1®.” Up until 12/31/11, the four role representatives within each organization could reach ProLevel 1® by completing 60% of the required class work. But now, those individuals have to be at 100% of ProLevel 1® right now. In 2013, they will have to meet 100% of the requirement for ProLevel 2®. And then in 2014, they will have to complete the classes that are acquired to achieve ProLevel 3, which is the highest recognition any individual can achieve through I-CAR and in the collision repair industry. Everyone else in the shop only requires six hours training annually, but those four role representatives are key personnel and they need to proactively hit those levels every year, Lopez outlined. Another big change with I-CAR revolves around what they call “relevant training,” Lopez explained. “All of the training now has to be relevant to each collision professional’s particular job capacity. Everyone in the

10 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

shop has to take classes that apply to their specific job. For example, a refinish tech will not get credit for taking estimating classes. If someone wants to take training outside of their role, it’s fine, but it just won’t progress them along in their Platinum Individual requirements. In the past, there was a lot of what we call random training, because we allowed people to take courses that they weren’t going to use in their jobs. Before, a body shop would have everyone come in on a Saturday and take the same class, whether it applied to their role or not. You could take two damage analysis courses and everyone would fulfill their ongoing training requirement. But the problem was—is that helping a painter? Is he going to be able to use that information when he comes into work on Monday? Obviously not. Now, if you’re a painter, you take re-finishing courses. If you’re a body man, you take collision courses, and if you’re an estimator, you take damage analysis classes.” Body shops who reach the coveted Gold Class Professional® status

are exceptional and among the leaders in the collision industry, according to Lopez. “Of the approximately 35,000 collision repairers in this country, only 4,100 are Gold Class Professional® businesses. To reach that designation and maintain it, the organization has to make training and education a priority from their four role representatives and everyone else on the staff that fixes vehicles.” Other misconceptions in the past about I-CAR revolved around the misnomer that businesses had until the end of 2012 to meet the professional development requirements, but the deadline for businesses is their Gold Class Professional renewal date. If you’re not currently a Gold Class business, you have until December 31, 2012 to achieve 100% ProLevel 1® status for your four role representatives and everyone else has to adhere to the same six-hour ongoing training requirement. If you don’t get it done by the end of 2012, then you have to complete both ProLevel® 1 and 2 by the end of 2013, Lopez said.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 11

Bill to End Fossil Fuel Subsidies Introduced to Congress

AkzoNobel Announces 2012’s Most Influential Women

‘Brown energy’ is subsidized much more heavily than ‘green energy.’ Many consumers and business owners, especially those skeptical of the green energy movement, are not aware that the fossil fuel industry gets far more in subsidies than does the renewable energy industry. Oil and gas companies are subsidized at almost six times the rate of renewable energy. From 2002 to 2008, the federal government gave the fossil fuel industry over $72 billion in subsidies while the renewable industry received about $12.2 billion. The End Polluter Welfare Act would end fossil fuel subsidies, and save over $10 billion a year and more than $110 billion over 10 years. Senator Bernie Sanders (I-VT) and Rep. Keith Ellison announced they would introduce the bill to Congress during a press conference with 350.org. The bill would specifically end tax breaks for fossil fuel companies, plus eliminate special financing, end taxpayer funded R&D, and set fair royalties policies. Bernie Sanders describes the End Polluter Welfare Act in an op-ed piece for Reader Supported News as the “most comprehensive ever introduced on this subject.” Sanders added that the Act “ends all the tax breaks,

the special financing arrangements, and the federal research and development funding.” A fact sheet distributed by 350.org lists the money that would be saved by eliminating fossil fuel subsidies: ● $14 billion saved by eliminating the intangible drilling deduction ● $12 billion saved by repealing a 2004 law that allows fossil fuel corporations to take deductions aimed at helping American manufacturers by claiming they are manufacturers ● $6.8 billion saved by closing the loophole that allows corporations like BP to deduct money they spend cleaning up their own oil spills and paying damages ● $2.4 billion saved by stopping fossil fuel companies from investing through Master Limited Partnerships, an option not available to clean energy businesses ● $3.7 billion saved by shutting the federal Office of Fossil Energy ● $10.6 billion saved by recouping lost royalties for offshore drilling in public waters.

Hitting the brakes on the freeway could cause a chain reaction of braking behind you, creating yet another traffic jam during the evening commute. But the traffic condition commonly referred to as stop-and-go traffic could be eased by new driving monitoring technology from Honda. In conjunction with the Research Center for Advanced Science and Technology at the University of Tokyo, Honda developed technology that detects potential traffic congestion caused by a vehicle's acceleration and deceleration. The system identifies congestion on the road and coaches the driver with alerts and displays to respond to the road conditions in a way that won't cause a backup. For example, rather than braking when the vehicle ahead brakes, the driver could create more distance between the two vehicles and potentially absorb the slight change in speed. Test results have demonstrated that such a system could increase the average driving speed by approximately 23 percent. In addition to saving time, the technology can also save drivers gas money. By eliminating the need to start and stop during traffic, the technology improves fuel consumption by approximately eight percent.

For vehicles equipped with Adaptive Cruise Control, the traffic New in trade with No Skills??? feature could theoretically be conBecome an Entry Level Estimator / Adjuster In 8 weeks nected to a cloud-based system to To advertise To advertise The source for timely sync vehicles with each other. That call Advertising Sales at: call Joe Momber at: may sound far fetched, but Volvo is information that every already800-699-8251 testing out a similar caravan 800-699-8251 bodyPlacement shop needs! solution with its Safe Road Trains for • Free Job - On Line Job Center e-mail: e-mail: the Environment (SARTRE) pilot advertising@autobodynews.com jmomber@autobodynews.co • Little Investment With Highest Returns project. Vehicles in a SARTRE plaCALL 800-699-8251 toon are essentially on autopilot as • One Stop Learning Center • Limitedwww.autobodynews.com Class Size www.autobodynews.com Start Your FREE they follow a lead vehicle, with each - Evening Classes • DRP-Procedures car moving at the same speed. Mail Subscription. (Train yourself or your newly hired employee, “Invest today for the Future”). Honda expects to begin road testing of its new traffic congestion sys• Short Courses - Evening Classes tem in Italy and Indonesia this etc., Your Em See the NEW(P-Pages, Negotiation, Cycle Time, CSI, Large Loss, Damage Analysis, Register summer, and hopes to commercialize Day, Evening, Weekend Classes Available). this feature in vehicles. Of course, the same effect could be had without the • 8-Week Specially Designed Estamatic Course - Daytime fancy networked technology if all (The rest of your life begins today). drivers simply drove at a constant www.autobodynews.com at www.autobod speed and followed with enough dis• ASE Certified Staff Instructor with over 20 years tance to absorb slight changes in speed. of hands on experience

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Honda’s Traffic Congestion Technology Could Help Flow

AkzoNobel Automotive & Aerospace dividuals who have a passion, a vision Coatings Americas (A&AC) an- and a vested interest in its future,” nounced the three recipients of its 2012 said Margret Kleinsman, general Most Influential Women in the Colli- manager for AkzoNobel A&AC sion Repair Industry (MIW) Award. Americas. “The leaders we are honorAkzoNobel’s annual MIW award ing with this prestigious award all program, which launched in 1998, rec- share these qualities and are among ognizes and promotes the contributions the top tier of those who continue to of key leaders within the collision re- make this a vital industry.” pair industry. The company said 69 AkzoNobel said it will present women have received the award over the 2012 MIW awards during a cerethe program’s 14-year history. mony July 19 at the San Antonio ConThe 2012 MIW awards will vention Center in San Antonio, in honor three women who hold leader- conjunction with the 2012 I-CAR Inship positions within the U.S. and dustry Event and Collision Industry Canadian collision repair industry. Conference (CIC) meeting. AkzoNobel said the recipients were selected for their contributions to the Web-Est Adds No-Cost Paint organizations they represent, the collision industry at large and their reCodes to Estimating Platform spective communities. Web-Est announced the addition of This year’s three recipients are: paint codes to their collision estimatKim Parsons, president of Autoing application. “We’re excited to motive Collision Technologies Inc. in launch this new feature in our proRandallstown, MD. gram,” said CEO Eric Seidel. “This Catherine Mills, executive difeature will provide the paint code of rector of the Florida Autobody Collithe vehicle to the estimator using the sion Alliance in Orange Park, Fla. vin decoder. This will make it easier Give your opinion affecting the industry. Kimus Roberts, manager ofon Fixmatters to match the paint color of the vehicle Auto in Barrie, Ontario, Canada. that the shop is working on.” Mr. Sei“The collision repair industry’s del also says that this new feature will collective strength, image and longcome at no extra for the user. Web-Est term sustainability is dependent on incan be had for $99 per month. publisher@autobodynews.com

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Tony Lombardozzi INTERVIEW by Chasidy Rae Sisk

Sharing the Message with CCRE President Tony Lombardozzi

If you’re in the collision industry and are not familiar with the Coalition for Collision Repair Excellence (the CCRE), and you consider yourself a truly independent operator in the business, you need to look them up (theccre.com). During CCRE’s legal seminar in Philadelphia on March 30 and 31, 2012, CCRE President Tony Lombardozzi repeatedly demonstrated himself to be a dedicated proponent for independence in the collision repair industry and a valuable source of information. Fortunately, he took the time to chat with me so that I might Chasidy Rae Sisk have the opportunity to share some of his wisdom with a wider audience of Autobody News readers. (See my column on p. 22 of this issue for more on the CCRE). I was curious about how Tony originally got involved with CCRE. Back in 1996, Tony felt that the national collision associations were not looking out for the consumers’ best interest or the benefit of the collision repair industry as a whole. So, he researched CCRE and attended a meeting. Tony was impressed with the organization because they represent the portion of the industry that says they should be able to operate without third-party influence, and also, the shops involved with CCRE are fiercely consumer-oriented. CCRE helps member shops and other shops across the country through education. Their legal seminars focus on helping repairers understand what an insurance policy entails compared to a repairer’s contract with the consumer, and that there is no correlation between these two contracts. They also hold seminars on business management where they teach collision repair facilities about the cost of doing business, property business management and how to operate a profitable shop in an ethical manner. Additionally, CCRE helps independent shops learn about marketing tactics so that they can compete in the industry. In regards to CCRE’s legal seminar in Philadelphia on March 30 and 31, Tony notes that this seminar

yielded more positive feedback than any other seminar CCRE has held, increasing their organization by several new members.

Tony Lombardozzi

Tony believes that the information presented at the seminar is important because “the majority of this industry has a misconception about who the real customer is.” He goes on to clarify that many repairers have been trained to believe that they are just an extension of the insurance industry and will not be able to survive without allowing insurers to dictate the shops’ business practices. But that is not true. The collision repair industry is a separate entity that has nothing to do with the business of insurance unless a repair facility signs a DRP contract. Otherwise, there is no relationship. Tony notes that without pressure from insurance companies to accept their methodology of how this industry should work, “we wouldn’t be in the situation we’re in. Instead of understanding that we should be doing business as independent business owners with no influence by a third party, we allow insurers to dictate how we’re going to do business, and that’s a real problem.” Tony cites many collision repair conferences as part of the problem because the majority of guest speakers are from the insurance industry and the conferences are heavily influenced by this third-party presence. Collision repairers should not go to an event for the collision industry and be told by insurance companies how the shops will need to do business in the future. When asked about the most important message of the CCRE seminar, Tony stresses “basically what they should realize is no one else is going to take this industry back, except the repair shop owners themselves.” The

14 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

insurance companies definitely will not volunteer to relinquish control, so the best thing that repairers can do is step outside the box, understand the CCRE concept, compare it to what they are doing now and see if the shops are happy with the status quo. If they are okay, there is no reason to complain. Unfortunately, many collision repairers are afraid to look at the issues because they fear what they may find. According to Tony, “I don’t know if we have enough time to recover the industry that we gave away because it took thirty years to give it away and you’re not going to take it back in one year. The industry remains in a hole because of the fact—I mean, we’re stagnant, but fees paid to body shops have been stagnant for years—the reason we can’t get out of stagnation is because we’re allowing ourselves to be governed by a third party that has no interest in making us successful. People in this business are beginning

to see that there’s no way out of the box unless they make changes. Hopefully, they’ll realize that at a faster pace than they have in the past, and you’ll see a big turnaround in this industry.” Tony believes that a segment of the collision repair industry believes in the system the way CCRE does, and he hopes that those who attend CCRE’s seminars will take the information they learn, study it, practice it, and network with other repairers to encourage them to look into the CCRE Philosophy because it is a better way to do business. He insists that by following the methods learned at the seminar, repairers can become more profitable while streamlining production output. The problem is that the collision repair industry as a whole has been brainwashed by insurer buzz words such as “making things lean,” “cycle time” and “rental days.” Insurers have lured the industry into using systems

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that are supposed to increase the shops’ accuracy and efficiency, but all of that money saved in efficiency ends up going to the insurers in the form of underpaid services. Collision repair facilities never see that added profit. Meanwhile, shops continue to bill at the same rates that they have been billing for quite some time. If a repair shop adds a $50,000 piece of equipment to their overhead to enable them to be more efficient and repair more cars, the insurer reaps the benefit of those savings by forcing the shop to accept a lesser value for their services. Usually in business, the business owner makes an investment and gets a return on that investment, yet that is frequently not the way things work in this industry due to third-party interference; however, without this influence, collision repair shops can work on less cars and increase profitability. When I questioned Tony about why many shops seem indifferent or unaware of these issues, he told me “what’s happened is, most of the younger people in this business have come up through the ranks believing the insurance industry is their partner. They don’t know there’s another side

to this business.” Frequently, industry events and meetings discuss making business decisions with their “insurance partners,” propagating this incorrect attitude toward the repairers’ relationships with insurance companies. Many collision repairers are never made aware that there is another side to this industry and a better way to do business which is removing the third-party influence from the equation. Through their direct repair programs, insurers teach repairers that they will always have work and never need to advertise which makes it seem like the insurance company has a right to be involved since the shop has an agreement with them; however, these repairers are never exposed to the other side of the collision repair industry, and when they try to learn about shop independence, they are threatened with losing their place in the program. “That’s called big business intimidation,” Tony points out. Too often, repair shops do not explore the option of independence because fear is the largest thing driving the collision repair industry. Shops fear that they will be blackballed or steered

against if they take a stand toward independence. They fear losing work or going out of business completely, but Tony insists that there will always be work and these shops are failing to realize that their services are needed. They are taught by insurers that they will be rewarded for behaving as they are told and punished for going against the grain. The most important thing that independent shops have to learn is that they need another way to market their business. Tony believes that collision repair facilities across the country should be concerned with redirecting the way the industry is run because if they look at how bad this industry is compared to how it was 15 years ago, they will see a major and disturbing difference. Instead of asking about the past, present and future of the industry, many repairers only ask what the insurance company wants them to do so they will continue to receive work, but at this rate, all that many shop owners will be left with is the real estate that they own. Tony recommends researching manufacturing industry statistics and looking at the collision repair industry at the bottom.

With inflation, the monetary value of a repair has decreased over time, but no one accounted for the disparity this causes. Many repairers believe that they cannot raise their rates because the insurance companies will not allow it. Tony warns, “If inflation changes and begins to escalate, you’ll see a lot of body shops go out of business. Because we’re too far behind. We can’t beat economics.” This is why he advises repairers to do their research and plan ahead. Though the CCRE would like to fund consumer education commercials in the future to inform consumers about the issues in the industry and their own rights, CCRE refuses to be influenced by any third party. The insurance industry has influenced every aspect of the collision repair industry, he laments. “Everybody’s got their hands in our pockets except us.”

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www.autobodynews.com 16 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

America’s Car Museum Celebrates Grand Opening

ACM is dedicated to preserving and highlighting America’s love affair with the auto. The facility will host concerts, collector car shows and drive-in movies. A free concert by six-time Grammy winner “Asleep at the Wheel” will be the America’s Car Museum celebrates its grand opening on June 2 featured Grand Openin Tacoma, WA ing Day entertainment, LeMay America’s Car Museum opens with Tacoma native and recent “The June 2 in downtown Tacoma, WA. Voice” contestant Kim Archer as the The museum explores how the auopening act. tomobile has fulfilled a distinctive role of the American experience and shaped our society. The spacious museum with rotating exhibits is designed to be the centerpiece for automotive history as well as an educational center and library. The museum, located adjacent to the Tacoma Dome, also contains a 3.5-acre show field, theatre, café, banquet hall and meeting facilities. The 165,000square-foot museum has been named one of the “8 big open- 1914 Detroit Electric Priscilla on display at the Alternative ings of 2012” by USA Today Propulsion exhibit at the new America's Car Museum. and will feature more than 350 The Priscilla represents Detroit Electric, one of the most successful early electric cars cars, trucks and motorcycles.

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Auto Body World Opens 9th Shop in Phoenix, AZ

Auto Body World Collision Centers, with locations throughout Phoenix and Casa Grande markets, announced plans to open its ninth location in Phoenix in June. Auto Body World has been acquired by Texas-based Service King in a deal to be finalized this summer. The 13,000-square-foot facility will serve the Deer Valley community of north Phoenix and is located on 19th Avenue. “This addition complements our footprint very nicely as it allows us to serve customers and our insurance partners along the 1-17 corridor in the north valley,” said Auto Body World President, Mark Turner. “This addition is another important step in Auto Body World’s overall growth strategy. With the recently announced partnership with Service King, we are excited about the opportunity to accelerate growing out across this market.” Auto Body World Collision Centers continues to seek out collision repair centers throughout Arizona. Interested owners are asked to contact Auto Body World President, Mark Turner at m.turner@autobodyworld.com.

Former Body Shop Owner Phillip Smith Dies

Phillip Leon Smith “Phil” was born January 6, 1923 in Kansas City, Missouri and adopted by Hubert and Lillian (Short) Smith of Kirwin, Kansas. He passed away April 16, 2012 in a Tucson, Arizona nursing home. Phil lived in Kirwin, KS during his youth, then moved to Phillipsburg, KS, where he owned and operated B&P Auto Repair Shop. He served in the United States Army during World War II. He married Sybil Rice and six children were born. He held the post of Commander of the American Legion while in Phillipsburg, KS. The family moved to Loveland, Colorado to open an auto body shop, and lived there until the couple’s divorce. In 1970, Phil and his four sons moved to Tucson. He opened Aviation Auto Body and Aviation Auto Salvage, which is still in business today. Survivors include his six children, Stephanie Daniel of Tucson, Greg Smith of Tucson, Phillip Smith of Iowa, Doug Smith of Tucson, Trudi Hanson of Idaho, Henry Smith of Tucson, and their spouses; 16 grandchildren, four greatgrandchildren and a host of other relatives and friends. He was preceded in death by his father and mother and only sibling, a brother, Paul Smith of Denver.

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Audi A3 Development with Master Jigs and Color Matching by the Audi Quality Assurance Department for the A3

Exterior Master Jig At Audi, the master jig is the main instrument used by the Quality Assur-

Front cubing measurements with CNC coordinate machine

Master jigs are used to optimize dimensional fits and the colors and materials matching operations.

ance department to attain a premium impression and perfect fits. The task of the exterior master jig is to optimize and fine-tune dimensional fits on every vehicle project before a production launch. This involves coordinating the fits of all parts that are visible on the exterior with one another. These parts range from sheet metal panels such as doors, engine hoods and trunk lids to exterior trim parts such as bumpers, headlights, taillights, windows, mirrors, door handles, spoilers and decorative trim strips. The measurement and analysis fixtures of the exterior master jig are housed in a dedicated building together with the interior master jig. Other tools—which are also fundamental to successful coordination—are used in this area before work is performed on the exterior master jig. The joint master jig is used to check for dimensional conformity of the underbody and its individual components, such as the front and rear floors and to coordinate them to one another. It ensures that all components can be joined without stresses. This is necessary to be able to produce a highquality body in the later production process, which is the foundation for the premium image of Audi vehicles. Using what are known as exterior function cubes, experts analyze the vehicle’s exterior trim parts in a local zero-reference environment. Correction data is derived from this process, which is used to optimize

components at an early phase. When they fit to the cubes, they are added to the exterior master jig for further fine tuning. Work in the zero-reference environment of the exterior master jig begins about nine months before

Optical measurements on joints master jig

production launch. Previously inspected panel parts of the body’s exterior skin and the parts mounted to them, such as doors and hoods and lids, are built up on a frame constructed of solid aluminum profiles. Exterior trim parts are also added to the assembly to analyze the interplay of all body parts. This gives specialists a stepwise method for perfecting the dimensional tolerances of parts, achieving flush fits and perfecting the lines of joints. An additional fine-tuning step involves working with reference bodies that are equipped in a way similar to that of an exterior master jig. This is done so that the paint application can also be considered in a final fine-tuning step. Although the paint is only as much as 15 hundredths of a millimeter (0.04 inch) thick, by Audi’s way of thinking, even this plays a major role in dimensional optimization. The seam pattern on the new Audi A3 does not always follow exact mathematics; in some zones, subjective impressions are also considered in the tuning process. Take the front bumper, for example, which is slightly offset to the rear

18 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Rear cubing measurements with CNC coordinate machine

at its transition to the fender so that the customer always perceives a harmonious transition when looking at it from above. Another example: the seams at the fuel filler door. The upper seam was intentionally made smaller than the lower one, to give the subjective impression of a better fit for the observer. Along with dimensional conformity, the exterior master jig also yields information on color fidelity, gloss level and the tactile feel of sheet metal, aluminum and plastic parts. In addition, it provides information on the firm seating of all components and their easy assembly and whether opti-

mization potential exists in the component concepts. Audi specialists are always faced with exciting new challenges in their work at the exterior master jig—challenges they must overcome to fulfill stringent requirements for the overall impression of the vehicle’s exterior. Different materials such as steel, aluminum, plastics, rubber and glass must be cleanly fitted to one another. The overall impression is only distinctive and high- end if all edges and their radii fit precisely to tenths of a millimeter; only then is the run of the tornado line from the fender over the door to the side wall frame pleasing to the eye. Interior Master Jig The interior master jig is a body produced to a specific design level that does not exhibit any deviations at the points where interior components are mounted. Ten months before production launch, the components are coordinated and fitted to one another using

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optical and tactile measurement methods. Along with verifying functional criteria—free movement of parts, firm seating, ease of installation, harmonious actuation forces and sounds— the primary focus of measurement work with the interior master jig is on visual properties. All parts are inspected for grooves, voids and blisters. Special attention is given to checking of seams, e.g. on the centre console that is made up of numerous individual components—from knee pads to the MMI terminal. The four air nozzles in jet design at the front of the cockpit are highly complex parts. Each consists of over 30 individual components.

Measurements on instrument panel with coordinate machine

Visual surface inspection of a trim strip

Allowable tolerances are on the order of a few hundredths of a millimeter in the design feature for adjusting the air stream to spot mode or diffuse mode. Therefore, the supplier assembles and checks every part in a 100 percent automated process. A parts that helps to ensure optimal sitting comfort is the center armrest with its height and length adjustments. A high-quality aluminum die cast body with a two-component material joint ensures full adjustment acoustics. Another highlight in the Audi A3: the three-dimensional decorative trim strips in the doors—they are embedded in a soft film without any gaps. The complex mounting feature on the rear side was not released in the in-

ternal master jig process until it was perfectly tuned to assure an elegant impression and no noise. The decorative ring on the gear shift grip is embedded with a precision of just a few hundredths of a millimeter to assure perfect tactile feel for the driver. Audi has even implemented elaborate solutions in the luggage compartment of the new A3: when the cargo floor is folded upward, springloaded plastic latches hold it in place for the customer.

pleasant-sounding window tracking and door closing acoustics were assured under all conditions. This was technically implemented by features such as “post-tracking,” in which the window slides into the window guide starting at the front. Only then did the window seal perfectly on the roof profile of the window guide with a constant insertion depth.

Visual color evaluation of roofliner

Discussing analysis results of functional cubing for door

Special cubes are used to check the fits of functionally relevant vehicle subassemblies. In the doors of the new A3, quality experts worked until

Another focal point was the double seal between the door and the body. A continuous seal was attained with the help of color imprint methods and optical measurement technology. Only with this high level of precision could the stringent quality require-

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ments for closing noise, closing comfort and interior acoustics be met. On the interior master jig, specialists also ensure that the door trim has precise, uniform gaps in its transition to the body door to ensure noisefree operation over the entire life of the vehicle at the customer. A new fastening concept with a flocked stop rail was coordinated and implemented.

Audi A3—Color matching The interior of the new Audi A3 integrates about 150 colored components; customers can choose from five color schemes. All parts, from decorative trim strips to the carpeting, must be precisely matched and coordinated. Audi Quality Assurance coordinates them all and resolves any issues with suppliers. The colored parts in the A3 interior are extremely diverse. They consist of 34 different types of semi-finished goods—such as fabrics, leathers and films—and ten types of plastic; they come from 45 suppliers across the globe. This broad variety of materials results in many difficult neighboring in-

teractions. For example, when smooth plastic meets textured surfaces, such as in the area of the center console, the

Color hue check and gloss measurements in cockpit

different reflectance values of the materials can generate different, undesirable colors as perceived by an observer. Special pigments are necessary to dye parts with different material chemistries in the same color hue. All components are dyed through, and many are also painted—some with high-gloss paint. In the new A3, for example, high-gloss components include the control panel for the climate control system and the frame of the MMI monitor. UV-stabilizers in the plastics prevent colors from bleaching

out over a period of years. Quality Assurance coordinates colors in its light studio whose lighting system can be adjusted to produce three different light environments: clear daylight, warm evening light or artificial light as in a showroom. This is necessary, because individual materials give a different color impression under different lighting conditions. This effect—known as metamerism—must of course be avoided. Visual surface inspection of a trim strip. All employees participating in color matching efforts must first pass a special vision test, because the optical measuring instruments at Quality Assurance—such as the spectral photometer—can only provide objective measured values of the surfaces. Such instruments cannot measure the impression the color makes on a person, because only people can simultaneously detect and evaluate color, gloss level and surface texture. Therefore, if there is any doubt, in the end it is the subjective impression of trained employees that is the decisive factor in achieving perfect color harmony.

Color matching work is also performed in the finished, assembled interior, i.e. with components in their mounted positions and from the viewing perspective of the driver. This is done, because the appearance of certain components such as pillar trim changes due to the texture of the trim material.

Chrysler ‘Fires on All Cylinders’

Chrysler Group said its first-quarter net income quadrupled on surging sales as the automaker set a profit target of $1.5 billion for the year. Chrysler earned $473 million in the January-March period, up from $116 million a year earlier. Revenue rose 25 percent to $16.4 billion as U.S. vehicle sales increased 39 percent, the company said in a statement April 26. “It’s fair to say that Chrysler is firing on all cylinders,” Chrysler-Fiat CEO Sergio Marchionne said. ‘It’s been a great quarter, and indications for the remainder of the year are absolutely positive.”

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Northeast News

Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.

CCRE 2012 Seminar—Taking Back the Collision Repair Industry with Chasidy Rae Sisk

When I first found out I was going to Tony began by saying that this problems that consumers have as a reattend the Coalition for Collision Rewas a good industry when he first sult of repairers’ problems with insurpair Excellence (CCRE) legal seminar with Chasidy Rae began Sisk his career, but collision repair- ance companies and realized that in Philadelphia on March 30th and ers gave it away over the past 25 years consumers have nowhere to obtain in31st, I thought I would need a pillow in exchange for systems supposed to formation to understand the repair and lots of caffeine, but I could not make their jobs easier. By accepting have been more wrong. The seminar and following these systems, such as offered a wealth of intriguing knowlestimating guides, repairers have beedge, much of which I’d never heard come manipulated by third-party inof or even imagined. CCRE represents fluence. Repairers’ investment, in both time and money, should yield a profit. Through a planned program of taking control of your busiJohn Parese and Erica Eversman confer ness and realizing Left to right: Robert McClallen, William Bensley and Ashly Van Earl that the insurance process other than the insurance coma whole movement dedicated to recompany has no place in your busi- pany or the repairer. Reiterating viving and regaining an industry that ness, collision repair shops can still Tony’s point about the combination of has been guided by third-party intermake a profit. As Tony stressed, “This the two separate contracts, Erica noted ference for decades. The experienced has to become OUR collision repair that in DRP contacts, the insurer may collision repair shop owners and the industry.” or may not direct business to the relawyers in attendance presented much Discussing how this problem pair facility, yet they act as if the readvice to attendees as well as the opbegan, Tony noted that there has al- pairer has obligations to the insurance portunity for shop owners to ask their ways been two separate contracts: one company while they feel no obligation own, personal questions. I will sumbetween the vehi- to the repairer. marize some highlights of the seminar cle owner and the In the contract between the vehihere with plans to exploring some of insurance com- cle owner and the repairer, the vehicle these topics in greater depth in the pany, and another owner’s obligation is to pay while the near future; however, I highly recombetween the vehi- repairer is obligated to provide a qualmend all shop owners to attend cle owner and the ity repair. As oral contracts are diffiCCRE’s next seminar, which they repairer. Yet, cult to enforce, Erica recommends plan to hold in six months, in order to somehow, these having a written contract with the veErica Eversman learn first-hand that there are solutions two contracts have hicle owner to protect yourself. In this to the multitude of problems that arise joined each other as collision repair contract, it is important to define your shops now have contracts with insurcustomer, each party’s duties and what in the industry. Because it is your industry, and as CCRE President Tony ance companies through DRPs. Tony parts will be used. The specifics of Lombardozzi emphasized, “no one asked: why do insurance companies these definitions vary based on indielse is going to take this industry back assume they have a say in the re- vidual state laws, but a valid contract except the repair shop owners thempairer’s contract with the vehicle makes it easier for the repairer to obselves.” owner while the repairer cannot intertain payment for the work they do. The event, hosted by the Pennsylvania Collision Trade Guild (PCTG), was held at the Airport Hilton in Philadelphia, PA. There were 110 people in attendance from varying fields, including many lawyers who specialize in this field. Many of the attendees were nonCCRE members, and 25 states were From left, Rick Dotterer, Steve Behrendt, Truman Fancher, Tony Lombardozzi, and Mike Parker represented with people coming from as far away as Texas, New Mexico fere with the insurer’s contract with Erica also explained that insurand Nevada. Tony Lombardozzi mod- the customer? ance policies give insurance compaerated the majority of the seminar Erica Eversman, Ohio attorney nies three options: replace the vehicle, with presentations given by attorneys and General Council for Vehicle In- pay for the loss in money, or elect to Erica Eversman of Ohio, John formation Services, became involved repair. Insurance companies rarely Parese of Connecticut and Robert with the issues in the collision repair elect to repair because it makes them McClallen of Vermont. industry when she learned about the equally responsible as the shop for the

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22 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

quality of the repairs; however, through DRPs, insurance companies are able to assume control of the repair without accepting liability. Erica went on to discuss several legal cases and examples of the insurance companies choosing inferior shops to save money. Insurance companies write estimates to verify there is damage and to find out how much money to reserve for the claim, but these estimates are written for internal purposes only and mean nothing because insurers do not fix cars—they just pay for repairs. Erica noted that contracts do not override consumer protection laws, but since few consumers know their rights or realize they are being taken advantage of, insurance companies often ignore consumer protection laws or try to pressure collision repair facilities to do so. Before introducing the next segment, Steve Behrendt of CCRE and PCTG noted that shops should have a solid contract customized for how they do business, and he revealed a sign that hangs in his shop specifying that insurance company paperwork, such as estimates, are used for informational purposes only and do Steve Behrendt not determine the methodology, extent or cost of repairs. Continuing her presentation, Eversman agreed that the insurer’s estimate is for informational purposes only, emphasizing that the insurer has no place in your business. Spelling this out in the contract allows repair shops to control their relationship with the customer, keeping the shop in the role of a professional and the insurer in their proper role. She also suggests addressing replevin in the contract, granting shops a lien that allows them to retain possession of the vehicle until they are paid for their work. One section of her sample contract also grants the shop the right to recover their lost profit if the insurance company steers the customer to a different shop. Turning the discussion to parts, See CCRE Seminar, Page 29

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SCC–CAA Members Breathe Easier After 3M Presentation by Ed Attanasio

In the “good old days,” auto body men knew full well that exposure to volatile compounds on the job might lead to health problems down the road. They worked without respirators anyway and that was pretty much the norm. But, as we focus more and more on workplace safety today, the workplace is safer and healthier for its painters, welders, body techs and even front office personnel. This is especially true with the advent of waterborne paint and all of the technology that protects employees from toxins, fumes and other volatile compounds they encounter every day.

3M was at the SCC-CAA April meeting in full force, with (from left) Senior Account Representative of 3M’s Occupational Health and Environmental Safety Division and featured speaker George Hill; North American Marketing Manager Stephanie Wright Blado; and Senior Account Representative of 3M Automotive Aftermarket’s Division Douglas Rogers

On April 25, the Santa Clara County California Autobody Association (SCC-CAA) held its monthly meeting in San Jose, California. While most of the members in attendance were still buzzing about the defeat of SB 1460, the parts bill sponsored by Senator Leland Yee and opposed by the CAA, 60-plus attendees listened to a presentation by 3M about workplace safety and the company’s air respirators and its associated line of ancillary products. George Hill, a senior account representative for 3M’s Occupational Health and Environmental Safety Division and a 20-year veteran of the company, talked about respiratory protection health standards and how to adhere to the proper procedures, paperwork and ongoing administration of every collision repairer’s health and safety program. Additionally, Hill showed a series of slides and demonstrated several types of 3M respirators. Most of what Hill discussed is already being performed at the majority

of body shops, but by reminding them and stressing that they need to stay vigilant about their respiratory protection program, problems can be avoided down the road, especially with OSHA. Making one person responsible and accountable for the program is the first step. “Every shop must have a program administrator designated by the employer to oversee all aspects of the program,” Hill said. “This individual needs to monitor every aspect of the program, including bookkeeping; proper training; medical evaluations; program evaluations; fit testing and, in general, acting as the point person for any issues that might arise.” Training is one of the main priorities, Hill said. “You can’t just tell your employees that they need to wear respirators and expect them to do it, because some will see the value in it and others won’t. They also should know why they need to wear them and how important it is to their health and well-being.” By initially assessing the hazards at your shop, owners and managers can determine what respirators to wear and pinpoint the correct inserts to use in them. “You have to regularly sample your air and find out what form it’s in,” Hill said. “Is it a gas, a vapor or a solid, and is there an oxygen deficiency in your shop? That’s a

they should, he stated. “To change the cartridge, the employee has to remember that they must leave the contaminated area to change out the old one with a new one. The change-out program is required by CAL-OSHA, which instituted tighter requirements back in 1998.”

Enterprise Branch Managers (at left) Karishma Patel and Jill Smulski represent the company’s Sunnyvale and Santa Clara branches, respectively

Another vital aspect of the program involves ongoing medical evaluations for your employees. “Your people have to be medically checked to determine if they’re healthy enough to even wear the respirators,” Hill cautioned. “The majority pass,

and if they don’t pass, their medical data is protected and you can’t see it. Annual re-testing is required, to make certain that the employees’ health conditions haven’t changed in the interim.” Proper fit testing is also crucial to the safety and protection of your techs. “If a mask isn’t fitting properly, it logically isn’t doing its job,” Hill said. “3M has two fit testing kits that use either bitrex or saccharine. Your employees need to conduct a user seal check each and every time they use the respirators. Over-tightening can cause leaks, so they have to make sure it’s snug and comfortable. And no sharing, ever. Each employee must have their very own respirator that fits correctly.” One issue Hill discussed in detail is how to fit respirators on employees with facial hair. With several SCC-CAA members in the room with mustaches, it was a evident potential problem. “Do not attempt to fit test workers with facial hair,” he said. “If any facial hair comes between the sealing surface of the respirator and/or

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Auto tech teachers from the Central County Occupational Center (CCOC); Bob McTaggert (at left) and Nathan Chukes were in attendance at the SCC-CAA’s April meeting in San Jose, California

very crucial aspect of the process, because until you know specifically what’s out there, you can’t know what you’re protecting your workers from.” Particles, including dusts, mists, fumes, smoke, gases and vapors require respirators that contain cartridges that absorb the gases and vapors and filters that block the particles, Hill explained. Regularly changing cartridges is essential and many employees don’t change them when

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the person’s face or interferes in any way with the respirator’s valve function, they have to shave it or use a hood respirator. This also includes dentures, jewelry or anything else that could interfere with the fit of the respirator. And it might be obvious, but never punch a hole in the respirator to smoke a cigarette. I’ve actually seen it happen more than once!”

(Left to right) Owner of Active Auto Body and former SCC-CAA President Shawn Saidi attended the presentation with his Estimator Javier Escudero and Manager Eduardo Escudero

To find out more about 3M’s respiratory workplace health program and a catalog of all the company’s occupational health and environmental safety products, visit their web site at: www.3M.com/occsafety.

Golden State Collision Centers Donates Two Vehicles

Golden State Collision Centers Inc., a five-shop collision repair operation based in Yuba City, CA, presented two refurbished vehicles to families in need during its “Celebrate Americana Benevolence Event,” on May 17. Golden State Collision Centers said AAA Insurance provided the refurbished vehicles, and two local organizations—Mercy Ministries and Hands of Hope—helped identify the receiving families. In addition, Golden State Collision Centers said several of its local vendors donated time and services to help refurbish the vehicles: Les Schwab Tires, Soroptimist Club of Marysville/Yuba City, Bullseye Paintless Dent Removal, Riebes Auto Parts, Valley Muffler, Yuba City Toyota, Sierra Lube Express, CleanRite BuildRite, Keystone Automotive/ LKQ, AutoWest Honda and Hertz Rent-A-Car. The vehicles will be presented to the families during a ceremony scheduled for May 17 at 5:30 p.m. PST at Golden State Collision Centers’ Yuba City, CA, location. Golden State Collision Centers launched its “Giving Back to the Community Benevolence Event” in 2007. The company said it has do-

nated 18 vehicles to local families in need over the past five years. “Each year, we partner with our insurance associates in obtaining vehicle donations for the purpose of presenting them to local families who are in need. Often these vehicles simply require mechanical or body work to get them road-ready and safe to drive. In these economic times, Golden State believes there are people who are truly in need—and deserving—of these vehicles, and this is the basis of this annual program,” said Dave Finkelstein, owner of Golden State Collision Centers. “We are delighted to be able not only to continue this program yearly, but also to increase our donation amounts in a time in which people are still suffering economically. The gift of a vehicle is one that truly changes lives. We are honored to be able to connect with our local community in effecting that positive change.”

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A Smart Solution

NHTSA on Accident Avoidance

The head of the National Highway Traffic Safety Administration says new “vehicle to vehicle” V2V communications could eventually help save thousands of lives, and the agency is considering new regulations in 2013 to eventually mandate the technology. At the SAE World Congress April 26, NHTSA Administrator David Strickland said such regulation could “create a baseline communication system” to help prevent traffic accidents, which cost the nation tens of billions of dollars each year. NHTSA is conducting a major test of “V2V” technology.

Museum for Ford’s Model A

Construction is under way in southern Michigan on a museum celebrating Ford Motor Co.’s Model A. Officials with the Gilmore Car Museum hope to finish construction on the Model A Ford Museum by Labor Day. The museum will be housed in a building designed to resemble one of the Dearborn-based automaker’s old dealerships. The museum is being built at Hickory Corners, about 115 miles west Give us on ma Organizers sayyour it willopinion be the largest public museum dedicated to the Model A, which was built in the late 1920s and early 1930s following the wild success of Ford’s Model T. publisher@autob

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Leading Edge Receives BASF Automotive Refinish Distributor of the Year Award

BASF Automotive Refinish presented its Distributor of the Year Award to Leading Edge Auto Refinishers, Inc.,

thinking and ability to differentiate itself in Arizona. With a strong record of continued growth and outstanding cus-

Chuck Soeder, far left, Vice President, Automotive Refinish and Industrial Coatings Solutions for BASF; and Denise Kingstrom, far right, Strategic Accounts Manager, Automotive Refinish for BASF present the business’s Distributor of the Year Award to the Leading Edge team. From left are: Soeder; Travis Leybeck, Paul Derdich, Mike Priest, John Rang, Matt Johnson, David Brannon, Troy Schooley, Steve Balsley, and Vaughn Lindberg of Leading Edge; and Kingstrom

Phoenix, Arizona, at its annual ColorSource™ Conference on April 19 in La Jolla, California. “Leading Edge received the award because of its innovation, forward

tomer service and support, as well as commitment to waterborne conversions, Leading Edge is a true partner with BASF,” said Denise Kingstrom, BASF’s Strategic Accounts Manager.

Leading Edge has been family owned and operated since 1993. “We are very proud to receive this award on behalf of the entire team at Leading Edge. It would be hard to imagine operating Leading Edge without all the talented people in the organization,” said Matt Johnson, co-owner of Leading Edge. “We would also like to thank BASF for supporting our business initiatives. Without BASF’s singleline ColorSource PREMIER program, much of what we have accomplished in Arizona would have not been possible. BASF is vital to our success. It’s a unique partnership because we all succeed together.” ColorSource PREMIER is a program designed by BASF exclusively for single line distributors of BASF refinish paints and coatings. ColorSource PREMIER distributors are key strategic partners with BASF. To learn more about becoming a ColorSource PREMIER distributor, please contact Denise Kingstrom at denise.kingstrom@basf.com, or 248632-2420, or visit www.basfrefinish.com.

Caliber Adds 2 AZ Shops

Caliber Collision Centers announced May 21 that it has acquired Crown Collision in Gilbert, AZ., and a former 911 Collision franchise in Tempe, AZ. “Today’s openings in Gilbert and Tempe brings our total number of locations in the Arizona market area to seven as we continue to execute our 2012 growth plans,” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “These new centers create additional Caliber Collision capacity across the Arizona market as we provide our insurance clients the customer focus, operational consistency and cost management they require in today’s competitive insurance market.” Caliber Collision’s newly acquired 26,000-square-foot collision repair facility in Gilbert officially opened Thursday, May 17 at 876 North Abalone Drive in Gilbert. Caliber Collision’s new Tempe location opened at 2025 E. Rio Salado Parkway in Tempe. “Our new Arizona locations provide another example of how we continue to grow across the Arizona market as the collision repair provider of choice,” added Mark Sanders, Chief Operating Officer for Caliber Collision.

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OMB Reviews EPA Rule on Waste Exemptions for Wipes

Issues between industrial laundries and disposable towel makers, which compete for business among those that use wipes and towels to clean equipment, have ensued over the past year regarding a U.S. Environmental Protection Agency (EPA) used wipes and towels rule. The disposable towel industry published a study in 2003 that discussed whether laundered wipes contained hazardous substances. The rule to ease waste handling requirements for reusable and disposable industrial towels had been delayed for quite some time, but will now undergo White House Office of Management & Budget (OMB) review. That means the long-delayed rule should soon be issued. The rule is said to dictate controls on the disposal of one-time wipes and sludge from laundering reusable wipes. The EPA sent the rule, known as the Resource Conservation & Recovery Act (RCRA), to the OMB in April. The RCRA rule began as a 2003 proposal, and then evolved into a 2009 notice of data availability (NODA) that changes hazardous waste regulations for managing solvent-contaminated industrial wipes.

Questions regarding the 2003 proposed rule led to the EPA revising risk analysis used to define the risk of disposing of solvent-contaminated wipes or laundry sludge in municipal solid waste landfills to human health and the environment. In 2009, the EPA then published a NODA to collect additional information on the data used. Findings of the 2009 NODA included the identification of eight of the 20 solvents as ones that could pose potential risks if disposed of in unlined landfills, two more solvents than were found in the 2003 study. It has been suggested that due to the NODA findings, the EPA will end up with a final rule that requires disposal of solvent-contaminated wipes and laundry sludge in lined landfills. Unlike the original versions of the rule, the final regulation will most likely not set a concentration level for determining when wipes are free of solvents, due to the various difficulties involved.

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Cooks Collision Centers Acquires 6 Shops in So Cal

Cooks Collision Centers, a Roseville, Chris Rose, vice president of southCA, operator of collision repair facil- ern California operations, “The scale ities in northern California, has ac- of this initial acquisition will enable quired six locations previously owned Cooks Collision to serve our insurance by Holmes Body Shop, a multiple lo- partners and dealership clients and cation collision repair operator in provide consumers with six convensouthern California. This transaction ient locations. We plan to add many represents Cooks Collision’s initial additional locations throughout the platform acquisition in the southern southern California market.” “We’re very excited about Cooks California market. The addition of the Holmes Body Shop locations further Collision assuming ownership of our expands Cooks’ position as the largest six locations,” said Tom Holmes, independently-owned and operated owner and CEO of Holmes Body collision repair organization in Cali- Shop. “Since 1972, our team has fofornia, with 25 locations throughout cused on delivering outstanding custhe state. The acquired collision repair tomer service and quality collision centers are located in Alhambra, repairs to our customers. We made our Canoga Park, Duarte, El Segundo, final decision to join the Cooks team based on the honesty and integrity of Riverside and Westlake Village. “The acquisition of the six the entire Wood family and Cooks emHolmes locations is a key step in exe- ployees that we met and dealt with.” Holmes will continue to own and cuting our strategic plan by expanding to the Los Angeles basin and serving operate the Holmes Body Shop locaSouthern California consumers,” said tion in Pasadena. Rick Wood, co-CEO of Cooks Collision Centers. “Cooks Collision is committed to providing our new southern California customers the same high quality collision repair, cusGive usand your on matters affecting the industry. tomer service valueopinion that our northern California customers have come to expect for the past 33 years.” Added

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Women’s Industry Network 6th Annual May Conference Hosts 200 Women

The sixth annual Women’s Industry Network Conference kicked off in Atlanta with over 200 women from all segments of the collision repair industry. The first day included a keynote address on “Extreme Change: Adapt, Overcome & WIN as One” by Robyn Benincasa, World Champion Adventure Racer, San Diego City Firefighter and Founder of World Class Teams and Project Athena Foundation. Dr. Linda Gravett of Gravett and Associates inspired conference attendees with her strategies for managing stress and maintaining inner peace utilizing exercises borrowed from Tai Chi, Yoga and Tae Kwon Do. The afternoon session included an update on vehicle design and collision avoidance technology and its impact on the industry presented by Kim Hazelbaker, Senior Vice President, Highway Loss Data Institute. Included in the day was recognition of the nine conference scholarship winners including six students: Nicolette Cole, Le’Trina Ervin, Tiffany Owen, Leslie Mendoza, Jennifer Watkins, Kinsey Simmons; one instructor, Greg Brink; and two

collision repair facility employees: Deborah O’Kean and Jessica Gauthier. Margaret Knell was awarded this year’s Cornerstone Award, given each year to a board member that exemplifies the values and ideals of WIN. Also recognized were WIN’s 2012 Corporate Sponsors: AkzoNobel; DuPont; Allstate; ASE; BASF; Enterprise Rent-a-Car; State Farm Insurance; Hertz; 3M; LKQ; Sterling Autobody Centers; Geico; Fix Auto; Carstar; PPG; ABRA Auto Body & Glass; CAPA; Finishmaster; Symphony Advisors; Sherwin Williams; Mitchell; CCC Information Services; Insurance Auto Auctions; Audatex and Car-Part.com. “We want to thank every one of our sponsors for their support of WIN. Their commitments are essential to achieving our mission of engaging women in the collision repair industry,” said Victoria Jankowski, WIN’s chair. Day two at the WIN conference started off with the Annual Scholarship Walk Presented by Fix Auto where more than 100 women laced up their

28 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

sneakers and trekked through Atlanta’s Buckhead district. Over $1700 was raised through individual donations. The funds will be directed toward WIN’s various scholarship programs. Following the walk, WIN’s second keynote speaker, Cathy Bonner, CEO, Service King Collision Repair Centers, shared the top performing skills that she has learned through forty years of professional and personal success. Cathy had a unique message that has been built on years of teaching leadership through the programs she developed called Leadership America and Power Pipeline and her own management experiences in both the public and the private sectors of America. Susanna Gotsch, Director Industry Analyst, CCC Information Services, gave an industry update titled “The Latest Trends, Market Dynamics & Business Drivers Impacting Our Industry.” Ms. Gotsch explored the ways economic and demographic changes have impacted the automotive claims and repair industries. The afternoon continued with

three breakout sessions: “Why Women Should Do Business with You” presented by Lori Johnson, Owner of Ladies, Start Your Engines!®; “Quality Control: Are you Looking Closely Enough and at the Right Time?” presented by Shawn Collins, a Senior Technical Service Engineer at 3M; and “Customer Service…Back to Basics” presented by Dianne Young, Founder and Master Instructor for Propel Training and Development. After two exciting, fast-paced days spent networking and learning from dynamic speakers, the conference wrapped up with the closing session “Take Control…Be the Change.” Michelle DeMaris, WIN member and conference attendee, said, “I’ve learned we have to take charge of changing the perception of females in the industry and own that concept.” Linda Sommerhauser, a long time WIN member, added her thoughts, “I feel energized and invigorated to go back and work more with our schools and advisory boards and to advocate for shops to sponsor internships within their facilities.”

Continued from Page 22

CCRE Seminar

Eversman insisted that shops should never offer a warranty on parts, especially aftermarket parts, but they should warrant the quality of their repairs. While insurance companies can guarantee the work of a DRP shop, this means assuming liability. They usually offer warranties on replacement parts but not on workmanship, unless specifically stated. Noting that warranties are like insurance policies in that they have more exclusions than coverage, Eversman stressed that manufacturers’ warranties will often be void if aftermarket parts are used, yet many insurance companies require shops to use these parts in their DRP contracts. She also pointed out that insurance companies are great at propaganda; many insurance ads create the impression that insurers are involved in the repair, and they focus on magical restorations. In the Question and Answer section of her presentation, Eversman noted that insurers only fear bad press and litigation as it presents unknown costs. While other businesses are forced to comply with consumer protection laws, insurance companies are generally exempt and are only investigated if there is proof that their actions are common practice. John Parese Esq. presented next in regards to tort reform. Tort requires those responsible for harming others to compensate their victims, and the classical purpose of tort is to provide full compensation for proved harm. Tort reform proposes changes to Truman Fancher reduce tort litigation on damages by setting procedural limits on the ability to file claims and capping the awards of damages, among other things. Advocates of tort reform include automobile manufacturers and insurance companies, in addition to the tobacco, chemical and pharmaceutical industries. Parese then proceeded to show clips from “Hot Coffee,” a documentary about Stella Liebeck’s lawsuit against McDonald’s when she spilled coffee in her lap. These clips show a different side to the case than what was seen in the media, validating this seemingly frivolous lawsuit. Parese

stresses, “If you don’t even know the basic minimal standard that you need to employ and then you harm someone, the consequences can be very significant.” Parese noted that these same tactics are being used to change the collision repair industry as insurance companies come out on top through public relations. Some of their methods are DRPs, insurance involvement in setting repair guidelines, mislead-

lated story this issue) and the potential impact the process could have on repairer processes and profits. Attorney Robert McClallen then began discussing assignment of proceeds. This document is useful as it allows the repairer to effectively step into the consumer’s shoes in order to sue the insurance company and get paid for their work. By signing an assignment of proceeds, the customer gives the collision repair shop the

Left to right: Joe Talarico, A. Brent Geohagan, John Parese and Erica Eversman gave legal advice

ing commercials and legislative “reforms” to allow more steering and greater control over repairs. He asked. “Does it feel like there’s an ever-encroaching insurer presence changing fundamental ways of doing business, relentlessly grabbing for more and more of your business, in part through a perpetual public relations and legislative campaign of distorted information?” Continuing the presentation, Parese explained that consumers are misled by false perceptions that insurance companies fix cars and by propaganda reinforced by uninformed courts, legislators and state officials. They are also given false information regarding warranties, delays, quality, rentals and trust. Yet, most consumers do not even know they have been harmed! After watching several insurance company ads that show magical repairs and stress that the insurance company repairs vehicles, the audience erupted in applause to see an anti-steering commercial. The dissemination of this type of information is one way that the collision repair industry can fight back, through recognizing the problem and playing the same game of public relations. Collision repair shops’ goals should be to get the insurer out of the repair process, remember who the customer is and use a well-reasoned strategy of informing. Make things about the process, not the money. SCRS Executive Director Aaron Schulenburg then gave a brief but informative report on information they had received regarding the new State Farm parts bidding program (see re-

right to force the issue and receive payment. In creating an assignment of proceeds for your shop, it is important to clarify and specify exactly which rights are being assigned. Eversman stresses that the wording of the document must be correct because shops will not have the right to sue if it only grants them rights to proceeds; it must also grant the right to act as the consumer in order to obtain payment. On Saturday morning, the seminar resumed with a presentation by Robert McClallen and Mike Parker of CCRE as they discussed how Parker was able to use his assignment of proceeds to successfully sue an insurance company for repeated short pays. During the trial, Parker stressed that he felt like he was a “co-conspirator to defraud consumers” when Tony Lombardozzi questioned about why he asked to be taken off direct repair programs. McClallen was able to prove the insurance company practiced steering against Parker as well. In his closing argument during the trial, McClallen stressed that the insurance companies have no legal way to do this. “They’re just doing it because they’re big and they think they can.” McClallen consolidated Mike’s 38 claims, all first-party claims because of short pay, and he won every single case. Parker emphasized the importance of making sure the customer knows exactly what they are signing so that, in a trial, the insurance company cannot claim customers were coerced or un-

aware of what rights they were assigning. He also makes sure to explain what aftermarket parts are before using them in his repairs, and most customers refuse aftermarket parts, even when their insurance companies force them to pay the difference. McClallen pointed out that the CCRE seminar is all about independence. Collision repair shops do not work for insurance companies, and documentation will help shops get paid which is their right. The forms will get a shop halfway there, but you have to truly believe that you deserve to get paid for your work. On Saturday afternoon, a panel of lawyers were brought to the front of the room to answer attendees’ specific questions. The panel consisted of Joe Talarico of New York, A. Brent Geohagan of Florida, John Parese of Connecticut, Erica Eversman of Ohio, Robert McClallen of Vermont, William Bensley of Pennsylvania, and Ashly Van Earl of Louisiana. The panel answered many questions from the audience pertaining to contracts, writs of replevin, mitigating damages and other concerns. Several key points were made and reiterated during this session: ● Because shops are the consumers’ only advocate, it is a conflict of interest for a shop to have a contract with the insurance company. ● Though collision repair facilities do not work for insurance companies, insurance companies have completely bought into the mentality that they do. ● The insurer’s estimate is a hypothetical, educated guess that can be used as a guideline, but the repairer’s invoice represents the cost of the repair and is the final answer. ● Class actions do impact insurance companies. If every shop reports their loss through a class action or through a credit reporting agency, the total amount will show the insurer’s debt to repairers. When the seminar wrapped up, attendees seemed reluctant to leave, but everyone walked away with a vast amount of new information and ideas about how to run their collision repair facilities independently. As Tony Lombardozzi stressed repeatedly throughout this seminar, they learned that “there is a better way to do business.”

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Forgetting to Use Blinkers Caused 2 Million Accidents

Blink, blink. A new study suggests failure to properly use turn signals causes 2 million accidents annually, a more serious problem than distracted driving. When’s the last time you used your own turn signals? According to research by the Society of Automotive Engineers, drivers either neglect to use their signals when changing lanes, or fail to turn the signals off 48% of the time. And when making a turn, the failure rate is around 25%. That works out to 2 billion times a day drivers fail to use signals, or 750 billion times annually. A lack of courtesy? Laziness? Poor training? Whatever the reason, the SAE study says the problem results in about 2 million roadway collisions annually. That’s more than twice the 950,000 accidents linked to distracted driving, which has become one of the central topics of the U.S. Department of Transportation under Sec. Ray LaHood. “This is a first of its kind report on a subject that amazingly, has never been studied,” said Richard Ponziani, P.E., President of RLP Engineering and author of the report. Yet, despite the fact that turn signals are simple, ubiquitous and “extremely effective,”

there is an epidemic lack of compliance even though “all drivers have an ongoing duty to use it, just as they have a duty to stop at a stop sign or at a red light.” Anecdotal evidence suggests that police put little effort into enforcement, less than they devote to speeding, or running stop signs and red lights. Other than shifting priorities, the new study suggests an alternative that it dubs the “Smart Turn Signal.” They “are the perfect complement to the Stability Control System since Stability Control predominately prevents single-vehicle crashes, whereas the Smart Turn Signal prevents multivehicle crashes,” suggested Ponziani. Such a system would automatically shut off a turn signal, likely by timing out after a set delay or by detecting when a vehicle has finished changing lanes, much as today’s cars automatically cancel the signals after making a turn at an intersection. For scofflaws who simply don’t use their signals, the system would work much like a seatbelt reminder. It would be able to sense if drivers routinely ignore their turn signals and start to flash what the study calls a “friendly” reminder.

30 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Taiwanese Auto Parts Makers Eye Recovering US Market

Sales of new cars in the U.S. grew 10% from the same period of last year, showing a positive sign for that market, as well as good news for major auto-parts suppliers in Taiwan. Industry sources said that major American automakers are optimistic that the U.S. new car market will reach about 15 million units this year, and Taiwan’s suppliers of original equipment (OE) parts to American automakers can expect bigger orders. Hota Industrial Manufacturing Co., Ltd., a major supplier of transmission parts, for example, currently indirectly supplies differentials and torque converters to the Big-Three American carmakers through major customer BorgWarner, is preparing for increasing orders this year. In the third quarter of 2011, Hota won an order for torque-converter parts for Chrysler`s pick-ups, saying that the order volume has been increasing month by month, leading to its record-high monthly revenues in the first three months this year. Increasing orders from the U.S. and smooth exports to China motivate institutional investors to forecast that Hota’s revenue could challenge a new

high of NT$3 billion (US$100 million) this year. The aftermarket (AM) replacement parts market in the U.S. is also expected to benefit from increasing new car sales, said industry sources. Taiwan, as the largest supplier of AM collision replacement parts to the U.S. market, is also expected to win more orders. Tong Yang Industrial Co., Ltd., the world`s largest maker of AM plastic body parts, began capacity expansion for AM products at its headquarter factory in Tainan, southern Taiwan in 2011, and has raised capacity of plastic parts, sheet-metal parts and cooling-system parts by 23%, 75% and 73%, respectively, hence is fully prepared for increasing AM-parts orders from the recovering U.S. market. Crispin Wu, Tong Yang`s president, pointed out that employment in the U.S. has shown recovery, and consumer spending in February set a seven-month high, in addition to new car sales growth in March, all of which show an almost confirmed economic recovery, which will also pump up demand for AM parts in the second half.

I-CAR Introduces New Series of Online Courses

I-CAR has introduced a new series of online courses that provides foundational knowledge on the basics of the collision repair process for professionals across the collision repair inter-industry. The Intro to Collision Repair Series is designed for such roles as entry-level technician, entrylevel appraiser, front office staff, customer service rep, sales staff, call center agent and vo-tech student. The series includes a set of 14 one-hour online courses that covers topics such as vehicle parts terminology; mechanical repair terms and vehicle protection; tools, equipment and attachment methods; and collision repair process overview. The intro series is customizable to a business, and staff members can take all the courses or only the ones they need. “Efficiency is key to running a successful business, and ensuring that your team has a solid understanding of the basics of the collision repair process can benefit a business in several areas,” said John S. Van Alstyne, I-CAR CEO and president. Special introductory pricing of 30 percent off the total purchase price of the entire set of 14 courses is available through July 30, 2012.

Chris Evans Appointed Chairman Emeritus

The Collision Repair Education Foundation announced the unanimous appointment of Chris Evans, State Farm Insurance Companies, to Chairman Emeritus on the Board of Trustees in recognition and appreciation of his service to the Foundation. To be eligible for appointment, past Chairmen must have completed a full term as Chairman of the Foundation, and have made significant contributions to the Foundation through time, effort and/or monetary contributions. Evans served as Collision Repair Education Foundation Board of Trustees Chairman from 2008-2010 and played a vital role in transitioning the organization into its philanthropic role within the collision industry. In this new role as Chairman Emeritus, he will provide ongoing counsel and expertise to the Board of Trustees. Evans currently serves as Claim Consultant for State Farm Insurance and has over 25 years of experience in the industry. He is also active in SkillsUSA, serves on the board of directors for I-CAR, and is a CIC Committee Co-Chair.

The Alliance of State Automotive Aftermarket Associations (ASAAA) recently launched a national Legislator Education and Awareness program meant to increase recognition among state policymakers about the positive economic and consumer benefits generated by the automotive aftermarket parts and service industry. The ASAAA said it is becoming critical for new and returning lawmakers to be educated about the benefits of alternative aftermarket replacement parts and services as policymakers in U.S. states are addressing aftermarket parts issues on many legislative fronts. The ASAAA said its Legislator Education and Awareness program is designed to promote the importance, quality, value and availability of aftermarket replacement parts and services. The ASAAA developed a blueprint to help state associations and industry companies send unified industry messages and implement educational processes to inform state policymakers about the significance of the aftermarket parts industry to help ensure consistency and fairness in the government affairs process, and to eliminate misconceptions

about the value that aftermarket replacement parts play in the American economy. “In state Capitols nationwide, industry advocates are faced with the challenge of educating legislative bodies about the value and importance that aftermarket replacement parts and service contribute to the nation’s economy and the motoring public,” said Barbara Crest, president of ASAAA. “However, when describing aftermarket replacement parts and service, words like ‘imitation,’ ‘inferior’ and ‘not of like kind and quality’ are used by our opposition to confuse policymakers and discredit our industry.” The ASAAA said its campaign was developed and financed by a team of industry experts, including representatives from the Automotive Aftermarket Industry Association (AAIA), Automotive Warehouse Distributors Association (AWDA), Automotive Aftermarket Suppliers Association (AASA), AutoZone, LKQ Corp., General Parts Inc.— CARQUEST, Genuine Parts Co.— NAPA, Advance Auto Parts, Robert Bosch Corp. and Remy Power Products.

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Service, Diagnostic and Mechanical NEWS

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Autobody News Chrysler to Recall 127K Dodge Chargers and 300’s for Fuses

Chrysler Group will voluntarily recall 127,346 2011 and 2012 Dodge Charger and Chrysler 300 sedans in the United States and Canada to fix a fuse problem that could disrupt the vehicles’ antilock brakes and electronic stability control systems. A plastic insert surrounding a fuse in the vehicles may become distorted because of thermal expansion and contraction, Chrysler said in a statement today. The problem could affect vehicle control and increase the risk of a crash. Drivers are alerted to the problem by the vehicle ABS/ESC warning lamp, the statement said, noting that despite the failure, drivers will retain basic brake function. The recall affects all 2011 and 2012 units built before Dec. 20, 2011. The recall includes 119,072 vehicles in the United States and 8,274 in Canada. According to documents submitted to the NHTSA, the affected system is supplied by Global Automotive Systems of suburban Detroit, a unit of Dura Automotive Systems. The defective part is in the vehicle’s power distribution center. Chrysler said it was unaware of any accidents or injuries related to the recalled vehicles.

Ford Blocks JAC from Selling Blatant F-150 Knock Off

The Chinese-made JAC 4R3 is a facsimile of Ford’s F-150, right down to the blue oval on the hood, and Ford has blocked the Chinese company from selling it. “Not going to happen,” said Bill Coughlin, president and CEO of Ford Global Technologies in an interview. In the past, other car companies have found it difficult to protect their designs from Chinese copiers, but Ford is not among them. “We can protect ourselves in China, it’s not easy, but you can do it. Is it expensive? Not really.” The Chinese government requires foreign OEMs to partner with their own domestics but Ford and JAC are not partners. It remains to be seen whether JAC will respect the decision, or build its knock off F-150 anyway.

CALIFORNIA • NEVADA • ARIZONA

Nissan Recalling Certain 2012 Titan Pickups for Mislabeling

Nissan Motor Co. is recalling certain Titan pickup trucks from the 2012 model year because they have improper seating-capacity labels that could lead owners to overload the vehicles and increase the risk of a crash. The recall reflects tight safety regulations in the auto industry and the fact that manufacturers cannot depend on the common sense of drivers to insure vehicles are operated in a safe manner. Customers may contact Nissan at 615-725-1000.

Chrysler Recalls 68,000 Jeep Wranglers for Fire Concerns

Chrysler is recalling about 68,000 Jeep Wranglers manufactured in 2010 due to the chance of a vehicle fire resulting from debris collecting in the transmission. The automaker said in a filing with the National Highway Traffic Association that the pullback of 67,872 Jeeps with an automatic transmission reflects concerns that the transmission skid plate, which is close to the catalytic converter, can collect debris and ignite without warning. The company said it will notify owners, and dealers will replace the skid plate free of charge. The move comes after the NHTSA began investigation complaints about fires in 2010 Wranglers earlier this year.

Distracted Driving No. 1 Killer, Especially of Texting Teens

The National Highway Traffic Safety Administration reports that distracted driving is the number-one killer of American teens. Five seconds is the average time a driver’s eyes are off the road when texting. When traveling at 55 mph, that’s enough time to cover the length of a football field. According to a national survey released by the Ad Council, 60 percent of young adult drivers (16–24) said they have texted while driving. In 2010, more than 3,000 people were killed and an additional 416,000 were injured due to distracted driving, which includes texting while driving.

34 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Carfax Study Shows Consumer Threatened by Ignoring Recalls

A new study from Carfax shows that choosing to ignore auto recalls threatens the safety of consumers everywhere. In 2011, over 2.7 million used cars were for sale online with safety recalls that were never fixed. Car owners and sellers can help improve public safety by actively checking for open recalls and having them fixed by franchise dealers. There’s no excuse—recall repairs are free and finding cars with open recalls is easy. “We’re making a lot of progress, but there are still too many open recalls out there,” said Larry Gamache, communications director at Carfax. “Many of these cars change hands without the buyer ever knowing a recall exists, increasing the safety risks both to passengers in the car and others on the road. We all need to do our part to make sure these cars are identified and fixed—buyers, sellers and owners alike. A simple online check for open recalls is all it takes to help make our roads safer.” California, Florida and Texas lead the nation with the most used cars for sale with open recalls, each having well over 100,000 last year. More about recall campaigns is available at www.safercar.gov.

BMW Replaces Toyota as Most Valuable Automotive Brand

BMW has overtaken Toyota as the world’s most valuable automotive brand, an annual ranking of the world’s top brands shows. MercedesBenz, Volkswagen and Audi improved their brand value, according to the BrandZ Top 100 Most Valuable Global Brands study released by market research company Millward Brown. The world’s most valuable car brands in $ billion 1. BMW $24.6 2. Toyota $21.8 3. Mercedes $16.1 4. Honda $12.7 5. Nissan $9.9 6. VW $8.5 7. Ford $7.0 8. Audi $4.7 9. Hyundai $3.6 10. Lexus $3.4

June 2012 BMW Recalling Diesel Vehicles or Fuses

BMW is recalling 24,340 vehicles equipped with diesel engines from the 2009-11 model years that may fail to meet U.S. and California emission control requirements. About 2,740 2011 and 2012 model year X5 xDrive 50i and X6 xDrive 50i vehicles, and 21,600 3-series diesel models, will be recalled, the automaker said. The recalls were scheduled for May 9, with a customer letter to follow, BMW North America spokesman Dirk Arnold said. The vehicles were manufactured at factories in Spartanburg, S.C., and Germany. BMW said certain emissions components, including the SCR catalyst, the DEF mixer and the EGR valve, may improperly overstate vehicle mileage, causing emissions standards to be exceeded and the illumination of the “Service Engine Soon” light. BMW said the repair will require the inspection and replacement of one or more of the emissions components and the reprogramming of the vehicle’s engine control unit.

Ford Recalls 10.500 Vehicles for Transmission Sensor Issues

Ford is recalling 10,500 vehicles, including the 2012-’13 Ford Mustang, 2012 Ford Expedition, 2011-’12 Ford F-150 and 2012 Lincoln Navigator, due to transmission and light calibration problems. “These vehicles may have a transmission range sensor (TRS) that was calibrated out of specification for reverse gear,” said NHTSA. “If this condition exists, the transmission may not go into reverse or when the driver pushes the shift lever in the reverse “R” position and the vehicle’s transmission does go in reverse, the “R” may not illuminate on the dashboard of the F-150, Expedition or Navigator models and/or the backup lamp on the rear of the F-150, Expedition, Navigator or Mustang vehicles may not illuminate. The recall is expected to begin on June 25. Owners can contact Ford at 1-866-4367332.

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

Comparing Automotive Parts: Is it Apples to Apples? with Gonzo Weaver

Alternators, starters, voltage regula“Yes, I need a price on an altertors, window motor assemblies, light nator for my car,” the caller asks. I bulbs, serpentine belts… the list goes give them a price for the brands I sell, on and on of the various cheaply and before I’m even finished they’ll with Richard Arnold made replacement parts available. tell me how much the last guy would Being able to distinguish what parts sell the part for. That’s fine, I know are good or bad is part of being a pro- everyone is looking for a bargain, and fessional in this crazy world of auto- shopping around for prices is all part motive repair. of it. However, let’s compare apples When a customer calls wanting to apples — not just prices to prices. prices on a certain than A perfect example is the comwithjob, Edmore Attanasio likely this isn’t the first phone call mon external regulator for a Ford they’ve made today. The way I can product. The prices will range from a tell this is how they answer certain few bucks to as much as $30. The difquestions I ask to narrow down the ference is quality, of course. You can options on that particular part or job. tell the difference for yourself by just “What’s the motor size? Two- or four- picking one up. The cheap regulator EricaIfSchroeder door? Automaticwith or manual?” these feels like a feather compared to the questions aren’t a hit and miss an- more expensive one. The question is swer, chances are they’ve been … do they both work? Yes they do, through this before, and have a pretty but there’s no doubt the cheaper one good idea what the cost is, or at least will not take any abuse, or a fluctuatwhat they’ve found out from the auto ing signal, or load variations as well parts cheapo depot. as the better made part. No doubt the

Jobber Journal

cheaper one will need to be replaced sooner than you think. From the professional side, it takes just as long to diagnose a problem and make the repair with a wellmanufactured part as it does to put on one of those bottom-of-the-barrel parts. The big difference is you only have to do the job once, rather than repeatedly. That eats up diagnostic time, shop time, and doesn’t make for a very happy customer. Over the years, the number of times I’ve had someone bring in a car and tell me they have put five or six alternators on the car, and it still doesn’t work, is beyond comprehension. The unsuspecting customer will almost certainly have the same reaction on the phone or at the service counter. “There has to be something electrically wrong with the car,” they’ll say. Even though I haven’t checked the car out yet, I’ll still ask them, “Where are you buying your parts?” Nine chances out of ten they are buying the cheap knock-off brands because of the cost, and under certain applications, these knock-off brands fail constantly. By the time I get the car in the shop and run the needed tests, I’m already stretching their pocket book just to give them the answer I already assumed it would be. “It’s a cheap part that’s causing the problem,” I’ll tell them, and when I give them the price of the “quality” part I know I’m in for an argument. “It shouldn’t cost that much. I’ll just go get another one myself,” the now irate customer will tell me. It could be they really wanted me to find something else wrong with it, because they know it can’t be the part. Then again, it could be because they don’t want to change it again. Whichever the case may be, I’m the lucky guy taking the brunt of the customer’s meltdown at the front counter. Why is it that the second largest purchase most people make in their lifetime is left to using cheap discount parts as a way to keep their family truckster on the road? You know, if

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the original manufacturer used some of these discount parts, most of those cars wouldn’t make it from the manufacturer to the show room floor without breaking down. One morning when I arrived at the shop, a customer was waiting for me with a rear main seal for me to see. I had just replaced the seal in his car a few weeks earlier. There wasn’t a problem with the car, his problem was that he believed that I over charged him for the seal. While he was at one of those discount parts stores, he purchased a rear seal himself, and after having some time to think about it, he figured I should know just how ticked off he was. Needless to say, now he’s thinking every bit of the labor cost must have been exaggerated as well. There was only one way to solve this problem. I called my supplier and had them send down another seal just like the original one I had purchased. With the customer standing in front of me, we took both of the seals out of their boxes and laid them on the counter. “You see, they are actually the same,” the aggravated customer tells me, “They’re the same color, same design and obviously are identical. You overcharged me!” I’ll admit they looked the same, and I was getting a little worried that I wouldn’t find a difference between the two of them. I wanted to prove my point that not all parts are created equal, but how? As this anger management class dropout got even more steamed, he started to make his point known how he felt about mechanics in general, parts stores, and the world at large. I picked up the two seals while he was standing on his soap box proudly putting down anyone who had anything to do with the car business. When I gently snapped the actual seal area that touches the crank shaft back and forth, I had the answer and the difference was obvious. “Sir, if you’ll calm down a minute, I’ll show you the difference. The one you brought from the discount part store has fewer coils on the See Apples to Apples, Page 43

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 35

I-CAR Tech

This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.

Bonding and Rivet Bonding Technology on Steel BMW Vehicle Parts As BMW Groups’ vehicle construcAnother reason for bonding and tion technology advances, so does the rivet bonding is the increased corrorepair process required to fix them sion resistance of the repair joints. properly. Conventional welding, Corrosion protection is extremely imwhich has been used primarily in portant during repairs because BMW BMW Groups’ repair processes in the offers a 12-year corrosion warranty. past, is slowly becoming the secondary method to bonding and rivet bond- Repair Overview ing technology. BMW currently The recommended BMW sectioning recommends primarily using bonding joint on outer body panels requires a with Lee Amaradio Jr. and rivet bonding to replace exterior pre-fabricated E-coated reinforcement body panels, structural parts, and sec- plate, available from BMW, along tioning specific locations in conjunc- with VIN-specific repair information. tion with VIN-specific repair The sectioning joint locations are in a procedures. Changes in recommended similar area as the previously recomrepair procedures affect all current mended weld joint, but may have production models. This does not moved to accommodate the reinforcemean that all models, and all parts, are ment plate. The reinforcement plate affected though. Consulting VIN-spe- has studs built into the part. This recific repair procedures should always quires notches to be placed into the be the first step in the repair process. existing part and the new part. The same is true for Mini and for Special plastic lock nuts are used Rolls-Royce vehicles (see Figure 1). to hold the parts in position until the adhesive cures. If the joint calls for them, rivets, which may be special blind rivets or punch rivets (also called self-piercing rivets or SPRs), are then installed on mating flange areas where applicable. When the adhesive is cured, the studs on the reinforcement plate are removed and the surface is prepared for the application of the BMW-recommended epoxy metal filler. Figure 1 - This BMW 5 Series has several parts The sectioning procedure for a that need to be rivet bonded withduring Danrepairs Espersen rail is similar to an outer body panel. BMW Group has been recomThe difference is this repair joint uses mending bonding and rivet bonding a repair element that fits into the rail. techniques to replace damaged aluA bolt is inserted into the repair eleminum parts for over a decade. The ment. When the bolt is tightened recommendation has now been brought to repairs on steel vehicles. The theory behind the repair of both aluminum and steel parts is similar, although the adhesives and preparation material used can vary by the repair situation and the materials being joined (see Figure 2).

Amaradio Explains CRA

Consumer Callout

Still Some Welding Bonding and rivet bonding does not replace all welding procedures for BMW. There are some areas that will still require welding to be done. These areas can only be identified with the correct repair information.

Tools and Equipment Availability All of the tools and parts, including the reinforcement plates, repair elements, rivets, and adhesives needed to complete bonding and rivet bonding procedures for BMW are available to independent collision repair facilities. It is highly recommended, however, that before any repairs are attempted, the technician acquire training from BMW on the tools and techniques to correctly perform these repairs. It is also critical to have access to the most current and up-to-date repair procedures and sectioning locations from BMW.

ALL OEM Information

The Right Cause with Mike Causey

Reasons for the Change There are several reasons that BMW has made the transition from conventional welding and STRSW to bonding and rivet bonding. One of the main reasons is the use of heat-sensitive steel. With bonding and rivet bonding, there is no heat generated that would weaken the steel, allowing the steel to retain its strength.

Figure 2 - The repairs on this aluminum front end are similar to the repairs on steel vehicles

down, the repair element expands against the inside of the rail, causing the adhesive to emerge. The bolt is removed once the rivets have been installed and the adhesive is cured.

Automaker Actions and Announcements

36 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

with Janet Chaney

Conclusion BMW recommends primarily using adhesive bonding and rivet bonding to replace exterior body panels, frame rails, and when sectioning. The repairs are vehicle specific and require special tools, equipment, and procedures. BMW recommends specific training before doing these repairs, and having access to their specific repair information. The recommended change in repair procedures from BMW is just one of the many examples of the challenges that collision repairers face on today’s HSS and UHSS vehicles. While traditional repair methods are still used on these vehicles, how and where those repair methods are used is constantly changing. For more information on working on HSS and UHSS vehicles, attend I-CAR’s Best Practices For High-Strength Steel Repairs (SPS09) course.

Collision Section Secures Exhibit Space at SEMA Show

After debuting at last year’s SEMA Show, the Collision Repair & Refinish section will return to provide buyers with a dedicated area on the show floor where they can quickly and easily meet with major refinish companies, paint booth manufacturers, parts suppliers and manufacturers, estimating and management software companies, manufacturers of structural repair and welding equipment, safety equipment and other related products. The section has been identified as one of the fastest growing areas of the show, and is on track to surpass last years’ numbers. The 2012 SEMA Show takes place Tuesday through Friday, October 30 through November 2, in Las Vegas, NV. “We’ve seen interest from the collision repair market increase over the years,” said Peter MacGillivray, SEMA VP of events and communications. Last year, due to significant growth and interest from the collision repair industry, show organizers created a new floor section called “Collision Repair & Refinish” to make it easy for those in the professional repair business to connect with manufacturers in the industry. SEMA Show exhibitors are categorized by

market segments and display their products in sectionalized floor areas. Buyers interested in the Collision Repair & Refinish segment, for example, often visit the Tools & Equipment section of the SEMA Show. The related section features products, such as new lifts, grinders, jacks and more, to help shop owners work smarter and faster. Last year’s SEMA Show featured more than 300 companies that were of high interest to the collision repair business owners attending the show. “One of the unique things about the SEMA Show is that is encompasses the entire automotive parts and accessories industry,” said MacGillivray. “Participants are able to accomplish a great deal in a short amount of time.” Other floor sections at the SEMA Show are Business Services, Global Tire Expo Powered by TIA, Hot Rod Alley, Mobile Electronics & Technology, Powersports & Utility Vehicles, Racing & Performance, Restoration Marketplace, Restyling & Car Care Accessories, Trucks, SUVs & Off-Road, and Wheels & Accessories.

“V2V” Communications a Hit

An “overwhelming majority” of drivers who have experienced technology that allows vehicles to communicate with each other have a highly favorable opinion of its safety benefits, according to data released today by the U.S. Department of Transportation (DOT). Together, the National Highway Traffic Safety Administration (NHTSA) and the Research and Innovation Technology Administration (RITA) have been working with the auto industry, state and federal partners to research the effectiveness and feasibility of connected vehicle technology that enables vehicles to “talk” to one another with Wi-Fi-like technology that could help prevent crashes altogether. The Department announced the results of six “driver acceptance clinics” that were held across the country at the Intelligent Transportation Society of America’s 2012 Annual Meeting. The pilot programs gathered feedback from 688 drivers who participated in tests of “vehicle-to-vehicle” communications. An overwhelming majority of drivers would like to have the features included in their own vehicles, and most believe the technology would be useful in improving driver safety.

Enterprise Introduces Customer Repair Notification Tool

Enterprise Rent-A-Car has launched a new customer repair status notification system for collision repair shops that uses text and email messages to keep customers updated on the status of vehicle repairs. Enterprise said the new customer repair status notification system was developed in response to studies conducted by J.D. Power & Associates that revealed customers of all ages prefer to receive repair status updates through email and text messages. The system is now part of Enterprise’s Automated Rental Management System (ARMS) suite of products. The feature allows shops to update all of its customers, not just its Enterprise rental customers, through either customized or automated messages. The system also provides shops with a written record of information communicated to customers to help avoid misunderstandings, Enterprise said. The system is available to all body shops that use the ARMS Automotive Data Manager application, Enterprise said. For more information, visit ARMSAutoSuite.com.

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Glendale-Foothill CAA Chapter Focuses on BAR Compliance by Tom Franklin

The May chapter meeting of the Glendale-Foothill California Autobody Association was held at the Brookside Country Club, 1133 Rosemont Ave. Pasadena, CA. An unusually large crowd turned out to hear Qasi Asad, Verifacts Automotive Compliance Director, speak on current BAR (Board of Auto Repair) policies, procedures and compliance. Qasi started out reminding the group of the BAR’s sting operation in Orange County a while back that closed several shops and arrested the estimators for false and fraudulent estimates. Qasi noted that most of those estimators will not be able to get a job estimating again. His talk emphasized the importance of knowing the small details of BAR compliance. Simply washing a customer’s car requires customer authorization on a work order, even if there is no charge for the service. Qasi Asad Frequent violations of BAR policy on documentation include missing information, such as date, signature, mileage, dollar amount and who authorized the repair. Vehicles coming from a dealership must still have vehicle owner authorization on the work order. Even e-mail authorizations must have a copy of the e-mail with date and exact name of authorizing person attached to the work order. Qasi asked, “Can your shop pass a BAR Audit?” Qasi stressed the importance of having estimators and key employees attend a three-hour BAR Clinic to ensure 100% compliance at the shop. Verifacts will provide a free examination of a shop’s open, closed, DRP, cash and work in progress files to determine the current degree of compliance. A monthly service for several months will accustom the employees to the audit procedure. After that, most will be able to continue without the monthly service. Qasi noted that John Wallauch, the new Mark D’Angelo BAR chief, may change the rules of the game and organize more sting operations. He ad-

vised the group to be ready for new challenges. The remainder of the meeting focused on a five-member panel of local industry veterans moderated by Gene Lopez, Western Region I-Car Director. Gene quizzed each member of the panel on ways they brought about greater efficiencies and profits for their businesses. Mark D’Angelo, from D’Angelos Paints, was the only nonshop owner on the panel, but he was able to bring an overview of many shops to the discussion while the others could mainly speak from the viewpoint of their own shop or shops. Dan Schimpke, from Beverly Coachcraft in West Los Angeles, set the tone of the discussion by telling about a $100 experiment at his shop. A $100 bonus was awarded each Dan Schimpke month to the employee with the cleanest workstation. He said the results were amazing. Techs were mopping up their work bays. The shop had never looked cleaner, and for a mere $100. Next, he’s trying a bonus plan that offers $150 each month and $250 each month for ideas on how to run the business better. Lillian Maimone, from Marco’s Collision Centers, continued the theme of employee “buyin” to a shop’s vision. She said they have regular meetings to keep employees informed of their part in the big picture. They’re Lillian Maimone made aware of the numbers and how their job affects the numbers. Marcos also provides continuous training and education for employees, and many have moved up the ladder within the company. Lillian said it’s one thing to tell an employee what needs to be done and another to have the employee actually recognize Curt Nixon the value and importance of doing it. Curt Nixon, from L’Monty Auto Body/Fix Auto, said they also focus totally on employee “ownership” by meeting twice a day and having lean

38 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

process training every twelve weeks. They set goals and project sales and post results so everyone can see where they’re at. Like Dan and Lillian, he said this definitely improves efficiency and profits. He said they also work to CAA Panel educate vendors on what the shop actually needs and this too results in costsavings and greater efficiencies. Danny Panduro from J&L Body Shop in Sun Valley agreed completely. He said he has always recognized the importance of being a team player— especially from when he played rugby while in college. Danny Panduro He said for the past few years, they have been gradually implementing lean processes, most recently with the help of con-

sultant Mike Anderson. He said the results in faster turn-around time with

an actual increase in quality, were surprising and inspiring. But he said the challenge is sustaining the culture of change and improvement. People tend to settle back into comfortable patterns. Overall, the panel agreed that employee buy-in to the cultural change required for lean processes is the key to sustaining success in achieving efficiencies and increased profitability. Where they have succeeded came from instilling an “ownership” attitude and educating employees and vendors on exactly what is needed.

Body Shop Customer Attempts Rescue of Elderly Fire Victim

St. Louis, MO Hail Damage Hit Rental Fleets Too

GM to Stop $40M in Facebook Advertising—“it’s ineffective”

Ford Tweaks GM and Doubles Down on Facebook Advertising

A 69-year-old woman died in a house fire in South Salt Lake City, UT, despite heroic rescue attempts by her neighbor and a local body shop customer. Oralyn Reay was pulled from her burning home but unfortunately did not survive her injuries. Neighbors had already pulled her dog from the burning house before firefighters arrived. Investigators were not sure if she died before the fire started. Sonny Gines said he was standing on his porch smoking a cigarette when he smelled smoke, then realized Reay’s house across the street was on fire. He ran toward the house. Meanwhile, Thomas Brent was nearby at The Painter’s Center when he saw the fire. He joined the neighbors and ran toward the blaze. Gines said he kicked in the front door and was greeted with a wall of black smoke. Brent arrived once the door was open. “The fire wasn’t that bad when I went in,” Brent said. “There was a lot of smoke.” Brent crawled in on his belly. He and Gines pulled Reay outside. “It was just instinct,” Gines said. “I would hope someone would do it for my family.”

The impact of hail storms that hit St. Louis in early May is still being felt as thousands of owners of homes and cars continue to make, or await, repairs. Hail the size of baseballs, even softballs, fell in some parts of the St. Louis region. Reports indicated that up to 50,000 cars in the area were damaged. Many repair shops brought in extra help from out of state to meet demand. As thousands of vehicles were damaged, so were the rental fleets. Car rental companies had to scramble to fix or replace their own fleets. The St. Louis Post-Dispatch reported that Enterprise Rent-A-Car brought in more than 1,000 vehicles from other states to replace cars damaged in the storm. Of those damaged, about 800 were at Lambert Airport. Avis had more than 300 cars damaged at the airport. The company honored some reservations but had to put some customers on waiting lists until more cars arrived from other areas. Some car rental companies had to suspend reservations until their fleets were replenished.

General Motors will stop advertising on Facebook, citing the ineffectiveness of the paid ads, The Wall Street Journal reported May 15. The move came days before Facebook’s initial public offering that valued the social media giant at near $100 billion. The automaker will still utilize free Facebook pages for marketing. Joel Ewanick, GM’s top marketer, said the company was “reassessing our advertising on Facebook, although the content is effective and important,” the Journal reported, adding that “the content” referred to the free pages. GM spends about $40 million to maintain all aspects of its Facebook marketing, including about $10 million on paid ads, the Journal reported. The automaker began to reconsider advertising on Facebook earlier this year, according to the Journal, and Ewanick and other members of GM’s marketing team recently met with representatives from Facebook but the meeting didn’t sway GM from its decision to pull the ads. GM spent $2.8 billion in advertising in the United States and $3.9 billion globally in 2010, the most recent year for which data is available.

Responding to GM’s announcement that it is pulling Facebook paid advertising, a Ford representative tweeted: “It’s all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation.” “We’ve found Facebook ads to be very effective when strategically combined with engagement, great content and innovative ways of storytelling, rather than treating them as a straight media buy,” a Ford spokesperson said in a statement. “We continue to have a strong, collaborative relationship with Facebook, which includes first-of-a-kind vehicle reveals, advertising and innovative ways of sharing content. Our engineers have also been working with Facebook engineers to develop unique and safer ways of integrating the car experience with Facebook.” Ford has been a vocal supporter of Facebook marketing for quite some time. Most recently, the company was one of the first to pay for Facebook’s new logout ads. The automaker has also been working closely with the social networking giant to figure out how to integrate Facebook into Ford Sync. Ford has 1.5 million Likes and 378,000 Likes on their Facebook Pages, respectively.

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DuPont™ Cromax® Pro is the Ultimate Upgrade for Your Refinish Painting Process

The transition to waterborne paint is well underway countrywide. Today, volatile organic compounds (VOC) in paints are seen as harmful to the environment and because of that many states in the U.S. have enacted regulations that are making auto body shops switch to waterborne basecoat to reduce VOC emissions while ensuring they meet all standards. Europe and Canada already use waterborne and many OEM’s have also converted to using water-based paints. Most paint companies are developing new low-VOC primers and clearcoats along with color coats to meet the expected regulations that the entire country will need to comply with in the coming years. Auto body shop owners will tell you, the change to water is happening and the majority agree that it is not as difficult or as costly as many first suspected. The decision on choosing which waterborne paint to use can be critical to shop productivity. DuPont™ Cromax® Pro waterborne basecoat is helping shops meet all of the new requirements while also meeting production goals. Cromax® Pro is formulated with 88% less solvent but 25% more pigment. The results have been astonishing. Painters are calling it the easiest waterborne to use and most productive waterborne basecoat available. Cromax® Pro also complies with the toughest emissions regulations and helps to reduce cycle times and improve shop efficiency. “DuPont did more than formulate a basecoat to help our customers meet all of the environmental regulations,” said Harry Hall, DuPont Performance Coatings North America Sales Director. “With Cromax® Pro, you can paint cars faster than ever before. And that speed of production improves your bottom line.” Cromax® Pro delivers single-visit application, 1.5 coat coverage for the majority of colors and application is easier, faster and more dependable. No flash time between coats helps to significantly reduce cycle times. Cromax® Pro’s wet-on-wet process means that basecoat can be applied non-stop until full coverage is achieved. Fewer coats reduces the opportunity for dirt and contamination and fewer bake or drying cycles reduce energy costs. You can paint more cars in less time because painters get the job done with a single trip into the booth.

“We made the switch in November 2007 and since then, Cromax® Pro is all I use,” said Rande Lance, Lead Paint Technician & Paint Shop Manager at Prestigious Auto Body & Painting, Goleta, CA. “It’s very userfriendly and holds up extremely well when you push it to the limit. Plus, it’s a great finish. It looks better than solvent, and it’s much better in regard to speed and efficiency.” Cromax® Pro also has excellent color match because DuPont has industry-leading digital color tools that work in all types of shops and provide ease-of-use and confidence as well as fan decks that are sprayed with actual Cromax® Pro colors.

Step 4: Flash Basecoat – Allow basecoat to flash until matte. Step 5: Basecoat Application – Second coat: apply one medium coat to repair area. Step 6: Flash Basecoat – Allow basecoat to flash until matte. Step 7: Effect Coat Application – Apply a final half-coat to complete hiding and to set the flake. Step 8: Flash Basecoat – Allow basecoat to flash until matte. Step 9: Final Step – Clearcoat is applied. Cromax® Pro eliminates up to four steps in the repair process so you can move more cars through your shop every day. The changeover from solvent-borne to Cromax® Pro bring shops a number of important advantages. Body shops that make a living on being able to paint fast, match colors perfectly and are economical in the process are winning with this product. A lot of collision shops have put off the transition, in part beAttendees learn the benefits of DuPont Cromax® Pro at a DuPont cause of cost concerns Refinish Systems North American Training Center with equipment and DuPont™ Cromax® Pro water training. But according to Harry Hall, borne basecoat is a 5-step process: that isn’t the case. “When switching to Step 1: Surface Preparation – Repair waterborne, you don’t need to buy all area is cleaned, degreased, primed and kinds of new equipment and new sanded to prepare for basecoat. spray booths to make the conversion,” Step 2: Blender Application – Apply said Hall. “Shops will, however, need one or two closed coats on the fade- a new stainless steel spray. Because of out area. the water, you need a gun that won’t Step 3: Wet-on-Wet Basecoat Appli- rust.” cation – Spray one full coat of CroIn addition to a new paint gun, max® Pro to 75% hiding. Follow waterborne paint does have a little difimmediately with a half-coat to comferent technique. DuPont trains plete hiding and to set the flake. painters at one of their 11 DuPont ReStep 4: Flash Basecoat – Allow finish Systems North American Trainbasecoat to flash until matte. ing Centers and will also spend a Step 5: Final Step – Clearcoat is apweek at the shop once they are fully plied. setup to make sure painters are comCompare to competitors’ waterfortable. Your employees are your most borne basecoat 9-step process: Step 1: Surface Preparation – Repair valuable asset. Providing them with opportunities to increase their knowlarea is cleaned, degreased, primed and edge and improve their skills makes sanded to prepare for basecoat. good business sense. It’s a smart way Step 2: Blender Application – Apply to increase productivity, profitability one or two closed coats on the fadeand customer satisfaction. out area. DuPont offers outcome-based, Step 3: Basecoat Application – First continuing education that is designed coat: apply one medium coat to repair to enable even the most experienced area.

painters to raise the bar for quality, productivity and cost efficiency. The Refinish Systems Training Centers are located throughout the United States and Canada and educate over 4,000 collision repair technicians annually. In Canada, they are located in Pointe-Claire, QC (Montreal), Ajax, ON (Toronto) and Coquitlam, BC (Vancouver). In the United States, the Centers are located in Lionville, PA (Philadelphia), Marietta, GA (Atlanta), Jacksonville, FL (Florida State College of Jacksonville), Plymouth, MI (Detroit), Itasca, IL (Chicago), St. Louis, MO, Pomona, CA (Los Angeles) and Anaheim, CA. The centers are fully equipped and staffed by capable instructors who have a solid background in collision refinishing. “My body shop switched to DuPont Cromax® Pro and I couldn’t be more pleased,” said Rob Daku, Owner and Production Manager at Daku’s Auto Body Shop, North Catasauqua, Pennsylvania. “DuPont’s waterborne paint is easy to use, looks great when applied, and is so much faster. DuPont made sure that we were comfortable with waterborne and their training was great.” “Not all waterborne basecoats are the same. Give us the chance to show you our product and I am sure you will want to upgrade to Cromax® Pro,” continued Hall. Environmental requirements and regulations are coming, so make the decision to go with DuPont waterborne and join the thousands of body shops around the country that are upgrading to the next level of productivity. For more information about DuPont Cromax® Pro, go to upgrade2cromaxpro.dupontrefinish.com or call 1-800-GET-DUPONT. To register for a DuPont training course, call 1-800-338-7668, prompt 7, fax/email Student Enrollment Form, or login to www.pc.dupont.com, click on DuPont Refinish, click on Training then log into eCareerTrack.

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Auto Painting USA Collision Specializes in Cosmetic Repair

Auto Painting USA Collision (APUSA) is a production auto painting and collision shop specializing in cosmetic body repair and auto repainting. APUSA offers four varieties of paint finishes starting with The American, which is a low-cost synthetic enamel factory basecoat/clearcoat paint job. The American paint service is guaranteed for two years against cracking, peeling and flaking. The most popular paint job is The Floridian, which is a DuPont Nason 2K Polyurethane paint job. The Floridian is guaranteed for three years against cracking, peeling, flaking, and fading. The Simulator includes a simulated basecoat/clearcoat, three full coats of integrated clear, free pinstripes, and a five-year guarantee against fading. The Ultimate includes a factory-like basecoat/clearcoat, ultra wet look, free pinstripes, and a lifetime guarantee against fading or paint failure. Along with full paint jobs, APUSA also performs spot work for those cars that only need small areas repaired and some minor body work, up to $5,000-$6,000 per job. The ticket

average is approximately $650- $700 per car, with an average of seven to 10 cars per day, 25 to 40 cars per week. The cost to paint a car is $55 to $75 for paint and materials, with a profit margin between 20% to 30% after all ex-

Tom Kobus, President and Daughter Heather

penses. Sales are approximately $750,000 per shop per year. APUSA is committed to customer satisfaction and is proud to say there are zero complaints with the Consumer Affairs Dept. of Florida. It is their policy to bend over backwards for customers. As a car enters the production line, it first goes to the body person for

any repair work that is necessary. Typically, that includes rust damage and minor dents or body work. Next, the car moves into the area where it is sanded and prepped for painting. From the prep area, it proceeds to the masker for taping and then into the paint booth where a gallon of paint, or the equivalent of three coats, is sprayed on the car. Before the car is finally ready for delivery, a detailer cleans all paint overspray from the windows, tires, and bumpers, then cleans all the windows, Armor-alls the tires and dashboards, and blows all the dust and dirt out of the interior. Presently the company has three locations between Ft. Lauderdale and Miami. These locations are supervised by Vice President, Claudio Casasnovas. Claudio has been a valued employee with APUSA for over 20 years. A new location opening in Phoenix, AZ, with two or three more locations in the works. These new locations are part of a Licensing Agree-

ment Program, which allows new or already established auto paint and body shops to license the name and purchase materials at a huge discount. By becoming a licensed owner of an APUSA shop, shops benefit from a name that is recognized and associated with quality and value. They also become part of a team that is well known and respected in South Florida for over 35 years. Training is offered to all licensees to run a smooth and profitable business. In addition, advertising through direct mail, TV, radio and Internet is provided. For more information on joining the team and Licensing Agreement Program, go to www.autopaintingusa.com and click on business opportunities. Auto Painting USA Collision (APUSA) originally started in Delray Beach, FL and has its roots in a company called Electro Bake Auto Painting. Tom Kobus, the owner and President of APUSA, began working for Electro Bake Auto Painting in 1975. Tom started as a manager, then was a supervisor and became Executive Vice President before buying

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two shops in 1982 in Delray and Lake Worth. In 1984, Tom bought Congress Auto Paint and Supply Inc. (the holding company) and the remaining two shops, Pompano and Stuart. Over the next four years, Tom opened the remaining five shops: Davie, Hollywood, West Palm Beach, North Palm Beach and Ft. Lauderdale. In 1987, Tom changed the name of the company to Auto Painting USA and in 1988 the holding company was changed to Auto Painting USA Enterprises Inc.

Pylon Offers Do-It-Yourself Kits

Pylon Manufacturing Corporation brings drivers an inexpensive, do-ityourself product for repairing those unavoidable minor scratches in a car’s clear coat. The DuPont™ Pro-Fusion Color Scratch Repair Stick offers a fast repair for automotive clear-coat scratches, nicks and dings, enabling an easy, professional looking scratch repair at a fraction of the cost of a traditional auto body shop repair. An instant treatment that fills in clear-coat scratches in a car’s finish and works on any car color, the fixer protects and restores a car’s clear-coat finish.

CCC Becomes Exclusive Provider of UpdatePromise

CCC Information Services Inc. announced it is now the exclusive provider of the customer status update communications platform UpdatePromise.com for the automotive claims and collision repair industries. The text message and emailbased UpdatePromise product will be rebranded as CCC ONE UpdatePlus, and will be integrated with the CCC ONE Total Repair platform, CCC said. The technology integration will make repair status and post-repair updates with customers and insurers automatic for shop users.

“CCC has been working with UpdatePromise for several months to develop an easier-to-use, integrated and more streamlined status update solution for the APD industry,” said Jim Dickens, senior vice president of CCC’s Automotive Services Group. “With the CCC ONE platform, we have found that true integration is what drives efficiency and this is just another example of that philosophy at work. “We’re very excited about how this can help repairers and insurers improve the customer experience.”

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Continued from Page 35

Apples to Apples

retaining spring. This spring is what keeps the rubber seal up against the crankshaft to prevent any leaks. Look at the one I just purchased, and you’ll see it has twice as many coils on the spring,” I calmly explained to him. (OK, I “tried” to say it calmly). After a bit of scrutiny on his part, he did see the difference between the two so-called “exact” parts. He apologized for his belligerent ranting and said he would make good on his promise not to buy any more parts based on the dollar amount. I hope so — that sure would make my day go a lot smoother. These days, with even more parts coming in from different countries, and at different quality levels, the tech has to be on his toes to make sure what they are installing on a customer’s car is actually a decent component. Even today, I’ll do my best to sway the customer into buying quality parts rather than going the cheap route. If they insist on using a cheaper part, I’ll be the first to tell them what the results will be.

Comparing apples to apples is still a good method of explaining things to someone who might have a difference of opinion. One bad apple doesn’t spoil the whole bunch; even good parts fail sometimes. But I’d put my money on a quality part any day. Service is the name of the game in the automotive repair business — knowing which “apple” is the right one for a customer’s car is just another part of the service good shops provide. There are plenty of apples out there in the orchard, and sorting out the bad ones aren’t about who has the best TV commercial or newspaper ad. Ask a mechanic, he’ll know thewww.autobodynews.com difference between good parts and OUT!goes; “Ya bad ones.CHECK As the oldITsaying get what ya paid for.”

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Top Hot Rod Shines ‘Brilliant Red’ Bright with Glasurit® Paint

Greening. “We knew up front that he would be going to Detroit with the car, so we had the goal of going for the Ridler from the beginning.” The shop has been a loyal BASF customer for years, after Sales Representative Ray McCutcheon called on them and helped them solve some particularly challenging paint issues. “Ray got us started with Glasurit years ago, and we’ve been working with him and BASF ever since,” said Greening, who runs the full-service street rod shop with his father Dwayne Peace's Ridler-Award-winning '55 T-Bird gets its Jeff. first prime coat at Greening Auto Company “The ‘55 T-Bird represents ativity, engineering and workmanship our typical approach and quality finwas chosen from among 63 very ish,” observed Greening. “What made strong contenders that had been pared it different were some of the areas we down to the “Great 8” before the ultidon’t normally get into. Just look at mate winner was announced at the the underbody and engine compartDetroit Autorama® back in February. ment detail.” The ‘55 T-Bird had been in the Greening Auto Company looks to family for more than 20 years and the BASF to help them deliver show-wincustom build was a family affair, handled by Peace’s sons in an outbuilding behind his house. The uncompromising design and build of the custom hot rod brought in a number of outside shops and some of the country’s top automotive craftsmen. Greening Auto Company in Nashville, Tenn., was one of these partner shops, called upon to handle the paint Final fitment of all billet parts took place after the car work and some machining du- had been primed ties. ning results with every project, and In a meticulous process that took that sometimes involves the kind of six months, Greening machined all of problem solving that started their rethe side trim, as well as the grill, tail lationship. “One example where we lights and wheels; and painted the lean on Ray for technical help is when show-stopper with BASF’s Glasurit® we’re facing problems with a repair 90-Line™ Brilliant Red waterborne that involves blending back into an alpaint. In the process, they demonready-painted panel,” said Greening. “Fortunately, we don’t do this very often, but when we do it needs to be flawless.” Greening Auto Company’s work on the Ridler-Award-winning ‘55 TBird is a great example of how BASF’s industry-leading products and commitment to adding value after the sale gives its customers a competitive edge. “Our focus is on adding value to strated once again why the premium our products and supporting our cusGlasurit line is a favorite of top customers to help them be more efficient, tom builders. cost-effective and successful,” said “Dwayne Peace found us through Market Segment Manager Tony a customer referral,” recalled Jesse Dyach. “That translates into the top This year’s winner of hot rodding’s top prize—the Don Ridler® Memorial Award—was a 1955 Ford Thunderbird owned by Dwayne Peace of Tyler, Texas. This masterpiece of cre-

44 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

quality finishes that make our customers stand out.” The commitment to customer satisfaction demonstrated by McCutcheon’s work with Greening Auto Company is an integral part of BASF’s business model and company culture. “Our work with high-end cus-

and to add value through expert, responsive service with all of our customers, including the collision repair shops that are the core of our business.” It’s no wonder that many of the country’s top custom builders choose to go with BASF. And it’s no coincidence that Glasurit paint has been on six of the last 11 Ridler Award winners. That same commitment to excellence extends to every BASF Automotive Refinish customer, and also to their demanding customers. So, it should come as no surprise that among users of Glasurit paints, more than 50 The '55 T-Bird took hot rodding's top prize at the 2012 percent of their volume is in Detroit Autorama, the latest Ridler Award winner to high-end and luxury vehicle sport premium Glasurit paint applications — twice that of tomizers, restoration specialists and the premium brand’s nearest comstreet-rod builders like Greening re- petitor. flects the ‘passion around the paint’ For more information about that makes our business fun and perBASF Automotive Refinish products sonally satisfying,” said Dyach. “In and services, contact your BASF repturn, our passion at BASF is to offer resentative by calling 800-825-3000, the world’s finest automotive coatings or visit www.basfrefinish.com.

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Legendary “Crazy” Painter Mitch Kelly Cites his Top 5 Projects by Ed Attanasio

If there’s a list somewhere containing the names of the automotive industry’s top artisans/painters, Mitch Kelly is right up there at the top. The

owner of Kelly & Son in Bellflower, California and the creator of Crazy Paint, Mitch and his father Tom are proud to say that they’re not average painters and they run a shop that is not average either. Tom Kelly’s grandfather started pinstriping vehicles back in the 1940s and Tom is well-known for working with Von Dutch as well as Ed “Big Daddy” Roth and still works alongside his son on a wide range of projects.

colors, stripes everywhere, including gold leaf—-it’s just really cool stuff.” It all began 39 years ago when a teenager started to learn the family business to make some walking around money. “When I was 13, my dad told me to tape off some wheels on some vans,” Kelly explained. “He was doing lots of vans back then. In the 1960’s everybody had a van and they wanted graphics on them. He was fast. He’d lay them out, paper them and Scotch Bright them and I learned how to do it all. The first thing I did was paint wheels. They used to have those old western-style wheels with ribs on them and you’d have to paint between the ribs and color match them to the vehicle. I would do a couple sets of wheels every day and Dad would give me $10-$15 per wheel. So, as a 13year-old, I was making good money, sometimes $150 per day.”

One of Kelly’s current projects is this 1957 Chevy Bel Air. The crew at Kelly & Son is (from left) John Weening, Mitch Kelly, Brandon Hedden, Thomas Kelly (Mitch’s son) and Tom Kelly (Mitch’s father)

Mitch Kelly, 52, is at a stage in his professional career where he is ready to start giving back to the industry in which he made his name. “I have a ton of knowledge and at this point in my life, I want to share it,” says Kelly. “Back in the day, my cars were on at least three magazine covers every year, whether it was a truck, motorcycle or hot rod magazine. More recently, a motorcycle that I painted will be appearing on the cover of Ground Pounder magazine. It’s a cinnamon-colored Harley painted with PPG paint and I really like working on bikes lately. We did one Harley that has more than $13,000 worth of paint, with multiple

Tom Kelly didn’t want his son’s future in the paint business. “At one point, my father told me, ‘This is fine and all, but I want you to get a regular job.’ I worked six hours a day in a cabinet shop, but I also stayed on at my dad’s shop. Between the cabinet shop, my dad’s shop, and school, I was putting in 13-hour days. Eventually I went to work with my father full-time in 1978. “My father is probably the best pinstriper in the world, in my opinion, and many will agree. His talent and his ability to stripe stuff is phenomenal,” Mitch says with evident pride. “He’s a super artist and he’s very creative. He’s got all my ability in his

46 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

little pinky. I realized early on that I a magazine! It was my first really sedidn’t want to do pinstripes, murals or rious graphic effort and I was so hand lettering, so I figured out that I proud.” needed to get into the painting side. I Mitch Kelly’s number two projlearned about as much as I could ect came at age 19. “After a while, I about two-color toning, fading and started getting better and better at graphics to where I could do them at a painting cars. One day, a couple high level. My father and I are still a brought in a 1969 Corvette that they team. He’s 72 now and we still work wanted candy red. I used a red and together.” gold pearl base with the red candy on ABN sat down with Mitch Kelly top. It came out with a very different recently to chronicle his top five projects over the years and the first one he cited was the very first car he painted completely from start to finish while a high school student. “My friend had a 1978 Z-28, and asked ‘would I put some stripes on his car’? I said yeah, but not for free. For $200, I put three-colored stripes around his car for a hot Kelly includes this truck he painted for Thor Wear as one of his top five projects ever rod look. That was my first success, because it made the cover of effect by just messing around with the Hot Rod magazine. I was still in high colors. school and I got my first cover! I They wanted a silhouette of thought to myself, “I must have at them together painted on the hood, least some talent to make the cover of so we ghosted it in. It looked awe-

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some and the customers loved it. They gave me a $300 tip, which was unheard of way back then! That rocked my world and I realized how important good customer service can be. Meeting deadlines and giving them exactly what they want is crucial, and I learned a lot about it with that Corvette.” Number three on the Mitch Kelly countdown happened roughly 20 years ago, he said. “One day in 1992, I got a phone call from the people at the Association of Volleyball

their sponsor. They asked me, can you airbrush a mural of a 30-40 foot volleyball player diving for volleyball on the side of a semi-truck? And I told them, yes—we can do that. After I hung up the phone, I turned to my dad and said, ‘Uh, we can do this, right?’ and he said we’ll give it our best shot! We got the job and did an image of Sinjin Smith, who was one of the world’s top volleyball players at that time and they were really happy with it.” That semi led to a lot of new business on a corporate level, Mitch explained. “After that initial meeting with the people from Miller Lite, things really started happening. It’s totally different from working with customers off the street. For one, my business clients never even come to look at Mitch Kelly is well-known for painting semis, including the trucks after they’re finthis beauty he designed and painted for one of his ished. They just send the sponsors, PPG check after seeing it on TV Professionals (AVP). At that time, or in publications. We started doing a they had a countrywide tour featurlot of these semi trailers for the AVP ing some of the country’s best vol- and they let us do the things we do leyball players and Miller Lite was best—our graphics, fading and

blending. We worked closely with their designers to make them pop and it’s been a great relationship.” The fourth notable accomplishment for Kelly is another truck proj-

to do more of those!’ I’ve done at least 15 trucks for them over the years and at least a total of 50 jobs overall, so it has turned out to be an excellent account.” This now takes us to the fifth fabulous project performed by Mitch and his crew—another semi for a major brand name. “Fifteen years ago, we got a call from the people from Mazda’s racing team and did a semi for them featuring a Mazda race car on the side and with the logos. Mitch Kelly is well-known for his amazing work on When the people from motorcycles. This green beauty is his own personal Mazda saw it, they were ride and proud of it thrilled. The next call was ect that came from some of his another car and trailer. They needed motorcycle work, he said. “I’ve alit in just three weeks time and it had ways loved motorcycles of all kinds to be in Texas for a TV commercial. and I was racing for a while. So, we They said we don’t care about the were painting a bike one day for a price. It was the biggest project money-wise that I had ever done. We company called Thor Wear and they asked us to bid on a truck job for got it done three days early and it led them. We got the bid and then worked to a bunch of work with Mazda after with their designer and it came out that.” great. They loved it! We took it to a For more information about big show and it got amazing reviews. Mitch and his work, go to: The big boss saw it and said, ‘We need www.kellyandsoncrazypainters.com

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Custom Painter Jim Hetzler Started Out at Age 13 with a Model Car

the young man under his wing, and even though Roth was in California Custom Painter Jim Hetzler, 53, of and Hetzler lived in Iowa, Roth Muscatine, Iowa is a world class pin- talked to young Jim over the phone stripe and airbrush artist whose career and became his mentor. “He is the started at the tender age of 13 when one who gave me direction,” Hetzler his hobby was building model cars. said. Hetzler became a selftaught artist when his interest in art grew over time in high school. His love of art, his friends’ referrals and word of mouth soon grew to be a fulltime business. In the early 80s his career took off, launched by the Honda Motorcycle Gold Wing touring bikes. “They came from the manufacturer in only three colors,” Jim Hetzler is a world-class pinstripe and airbrush artist Hetzler said. “People wanted who started painting when he was 13. custom paint jobs and the “It’s a funny thing,” Hetzler more I did, the more referrals I got and said. “I enjoyed building model cars my business grew to cars, trucks and as a pre-teen and I wanted to paint semis.” pinstripes on my cars but didn’t Today, Hetzler is a world class know how to begin. I wanted to learn pinstripe and airbrush artist and speand know the secrets of pinstriping, but back in those days it was hard to find someone to teach me.” One day he saw an advertisement in a magazine and bought a $5 book on how to pinstripe. That book was written by famous car builder and airbrush/pinstripe Jim Hetzler won the House of Kolor Prestigious Car Painter Award artist, Ed “Big in 2007 when he painted this 1940 Buick Daddy” Roth. Roth was the creator of the “Rat Fink and cializes in lettering, graphics, pingang” monster hot rod characters striping, gold leaf and airbrush and is which became rock-art icons, ap- highly recommended for his symmetpearing on airbrushed T-shirts, rical, multi-colored fine line stripes as posters and hot rods. Roth’s cartoon well as his realistic airbrush techcharacters were known for symbol- niques and ability to apply the most current techniques to any project. Jim and his wife, Chris, own and operate Hetz Pinstriping and JC Hetz Studio Signs and Graphics in Muscatine, Iowa. With 40 years experience as a pinstriper, 35 years as an airbrush artist and 25 years in the custom Jim Hetzler painted his own 1950 Ford Club Coupe painting business, Hetizing the rebellious nature of the zler has too many projects to count. 1960s hot rod movement. Roth took But some of his favorite projects inby Melanie Anderson

clude pinstriping the Good Guys 2009 Street Rod of the Year, custom painting his own 1950 Ford Club Coupe, and creating the paint job on a full-

One of the highlights of his career, Hetzler said, has been the honor of working with Jon Kosmoski, who founded House of Kolor in 1956. Today, they work together to create new products for House of Kolor. “When I first started using their paints 25 years ago, I was impressed and thought they had a great product. In my world, Jon is a rock star. To be involved with custom painting at this level is amazing One of Jim's favorite projects was painting this full-sized semi for for me.” the University of Iowa’s Hawkeye Football team. Hetzler often travsize tractor trailer semi for the Uni- els with the House of Kolor, taking his versity of Iowa’s Hawkeye Football talent on the road and showcasing Team. House of Kolor paints. He is a regular Jim was given the title of “Pin- showcase artist every year at the striping Legend” by Northern and SEMA show in Las Vegas. He also will Southern Rodder magazines and has be at the Back to the 50s car show in received many awards for his graph- Minnesota in June. In August, he’ll be ics and designs throughout the years. in Louisville, Kentucky for the Street In 2007 and 2011, Hetzler received Rod Nationals. In his spare time, he the House of Kolor Prestigious Painter holds his own workshops in pinstriping Award. He’s been using House of and airbrushing, as well as working as Kolor products for 25 years and for a pinstripe instructor for “getaway the past two years, has been testing the workshops” in Orlando and Las Vegas. new Shrimrin2 Formula. Hetzler’s trademark signature is “I like the new line even more,” “Hetz” and can be found on all his Hetzler said. “It’s incredible paint and projects. His online, Facebook and gives you the ability to create thou- personal connections in the custom sands of colors from 16 base colors. It’s easier to use and you can intermix it for any color combination.” The newest line of paint from House of Kolor, released in June 2011, is a solventbased paint with low VOC. What makes the Shrimrim2 Formula special, Hetzler says, is Jim Hetzler won the House of Kolor Prestigious Car Painter Award the ability to custom in 2011 for this 1934 Ford create a multitude of colors and intermixing Kandy with painting world have made him fabases and creating special effects with mous. “I can go anywhere in the U.S. its line of pearls and flakes. and people know who I am. It’s kind “House of Kolor has been my of scary,” Hetzler said. paint of choice for the last 25 years,” For more information, visit Hetzler said. “House of Kolor paints http://www.hetzstudio.com/ or contact is the foundation of all my artwork Jim at (563) 263-2803 or at jhetand graphics. It’s vibrant, easy to zler@machlink.com. work with and is convenient to mix colors. Using their paints has enwww.autobodynews.com hanced my artwork and really made CHECK IT OUT! the colors pop.”

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 49

Why Your Body Shop Can’t Ignore Social or Digital Media “Social Media is Word of Mouth on Steroids” —Frank Terlep by Melanie Anderson

There’s no escape. Nearly everyone and their grandmother is using social or digital media. Is your shop up to speed with the age we live in? According to Frank Terlep, CEO of Summit Software and Marketing Solutions, more than 112 million generation X and Y consumers, 60 million baby boomers and 20 million seniors are on the Internet, emailing, texting or using social media. And these numbers don’t even reflect the younger generation, those between 18–34 who comprise an outsized proportion of consumers who watch online videos, visit social networking sites and blogs, own a tablet and use a smart phone. “In today’s world, every shop needs a website and social media presence to attract consumers to their brand and business,” said Terlep. “Getting involved with digital and social media is not a matter of ‘if’ - it’s a matter of ‘when’ - because shops will end up doing it anyway and they may as well do it now and be a winner instead of a loser. Waiting to join the social media world is losing an opportunity to increase your business.” To connect with, market to, service or retain today’s ‘digital consumer,’ a shop must consider several digital marketing tools, techniques and strategies, such as digital databases, email, text messaging, social media, mobile and location-based marketing, smart phones, phone apps, micro sites, search engine optimization, pay per click advertising, digital ads, promotions, e-coupons, videos and more, said Terlep. A digital consumer is an individual who uses smart phones, text messaging, email, Facebook, LinkedIn, Twitter, Google, YouTube and other digital or social media technologies to perform their jobs, communicate with business associates, friends and family or to educate and entertain themselves. According to Terlep, the three most critical steps repair and collision shops should take regarding social or digital media are: #1. Know how their website is performing #2. Continue communication with existing or previous customers #3. Participate in social media

Your Website “The shop’s website is the hub of the shop’s whole digital marketing strategy,” Terlep said. “A shop’s website is their online lobby.” Knowing how well their website is performing should be a priority for every shop. “Shops need to make sure their consumers can find their website from

this,” Terlep said. Social and digital media are successful ways to stay in touch with your customers to get them back in the door for other services. Your ‘Friends’ One of the biggest reasons why a body shop should be on social media is because their customers are already there.

Frank Terlep uses ‘personal media’ to engage a group of shop owners invited by Sherwin-Williams to San Diego’s Petco Park for a talk and a baseball game on April 26

anywhere, whether it is a local search or from a variety of search engines,” Terlep said. “A website is performing well if your shop ends up on the first page of engine search. Less than two percent of customers will go to the second page of a search.”

Your Customers Staying in touch with previous or existing customers is an important marketing strategy that many shops overlook. Terlep believes that most shops don’t market to previous or existing customers. “It’s easier to get business from old customers than it is to find new customers,” Terlep said. “Shops think, ‘Why should we keep in touch with previous customers if, on average, consumers only use a body repair shop only seven to 10 years?’ Car accidents are a bad experience and most customers want to forget about it as soon as possible, and that means they forget about the shop too. After a couple years, people tend to forget where they even had their car repaired.” Getting customers back in the door is important to the success of a body shop, and the way to do that is to offer additional appearance-related services, such as detailing, glass repair, headlight restoration, mechanical repair services, or any other type of non-collision repairs. “There is a huge opportunity to market to existing or previous customers and many shops aren’t doing

50 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

Terlep suggests a shop focus on one of the ‘Big 5’ —Facebook YouTube, Twitter, LinkedIn or Google Plus. Posting items that are educational and entertaining and offering exclusive deals will get more attention than random facts.

Shops should participate in social media for two important reasons: it helps shops stay in touch with their customers, and it gives them the ability to position themselves to be online experts in their field with an online audience within their community. “A shop should want their customers to know them as an expert so their customers can tell their friends, and being on social media is the best way to do that. Social media is word of mouth on steroids,” Terlep said. Email Marketing With all that said and despite the frenzy over social media, Terlep said the best digital marketing is still email because “80% of consumers still prefer email over Facebook or Twitter to get their information.” Customers are comfortable getting surveys, e-newsletters, ecoupons and other promotions by email. Terlep said shops are moving away from phone-based customer surveys because electronic surveys garner better and more honest feedback, as well as improved tracking. Another good reason to switch over to digital marketing is it is much less expensive than traditional marketing. E-newsletters cost only about $50

Sherwin-Williams’ Digital Marketing Seminar

Sherwin-Williams Automotive Finishes A-Plus University (a value-added program

for Sherwin-Williams body shop customers) is partnering with Summit Software

and Marketing Solutions to offer a digital marketing advanced business class

specifically for collision repair facilities. The program is launching in multiple lo-

cations this year throughout the country.

A recent workshop was held April 26 in a skybox media suite at Petco Park,

the home of the San Diego Padres, and concluded with a catered dinner and pre-

mium seat viewing of the night's game.

The four-hour workshop was designed for shop owners and managers to

help them meet the challenges body shops face in today’s rapidly changing digital

and information age.

Troy Neuerburg, Sherwin Williams Automotive Finishes' Marketing Manager,

Business Services, led the meeting, with input from Chris Lynch, Falls Communi-

cations. Frank Terlep, CEO of Summit Software and Marketing Solutions, presented the program. Terlep's rapid-fire style covered a huge menu of topics

touching on shop-consumer communications via social media, smartphone

apps, and digital marketing for the busy shop. The digital and social media strate-

gies covered included: What digital marketing means; Why digital marketing is re-

quired for success in today’s world; What a shop’s potential digital marketing

audience is; The benefits shops can expect to receive from digital marketing; The

importance of a digital marketing database; and Digital marketing tools that are

available. For more information, visit www.sherwin-automotive.com.

a month compared to thousands of dollars it costs to print and mail print versions of newsletters. And social media is free!

Phone Apps Another digital marketing tool for shops to consider is a phone app for their business. According to Terlep, more than 50% of the U.S. population who own a cell phone use a smart phone, and that percentage will increase as the older cell phones become obsolete. He recommends an Apple or

Android app as those two platforms have the majority of the smart phone market. The benefit of a body shop having an app is that it will allow a consumer who has just been in an accident to be able to push the app on their phone without having to remember the location, phone, name or email address of the body shop. An app allows the customer to take photos, file a report and send information to the body shop, insurance and police. “A body shop who has their own app owns a piece of real estate of the con-

sumer’s smart phone,” Terlep said.

Goodbye TV? The three most prevalent screens today are, in order: the TV, PC and then the smart phone, tablet or mobile device. In the next five years, that order will reverse as the smart phone will become the No. 1 screen people will look at the most, becoming more popular than the television or computer screen. So, why aren’t shops up-to-date in the electronic world we live in? It’s time and expertise, Terlep said. Most shops

don’t have time during their daily operation to properly market their business digitally. And many just don’t have the expertise. “They don’t know what they don’t know,” Terlep lamented. “Social media and digital marketing is not a passing fad. It’s here to stay. Body shops will end up using digital marketing at some point, and those who don’t wait will benefit the most,” Terlep said. For more information about Terlep’s business, visit their website at www.emarketingsherpas.com.

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 51

Summit Software Releases Next Gen iPhone Apps

Summit Software and Marketing Solutions has announced the release of its next generation of phone apps for the collision repair industry. According to Summit, the new phone apps have been redesigned for a more appealing look and feel and include new features designed to improve the connectivity between consumers and businesses and adds additional customization capabilities for shops, MSOs and repair networks. Frank Terlep, Summit’s CEO and Lead Sherpa stated, “with a forecast of more than 200 million users by 2015, we wanted to dramatically improve the way a collision repair business markets to and connects with these consumers.” Terlep continued, Our newest app release includes features such as live traffic monitoring, two-way text messaging, in-app communications, 'fetch' vehicle information, one-click shop scheduling and many more customization options that allows a shop, MSO or repair network to create their own phone app quickly, easily and affordably.” These next generation apps can be downloaded for free from Apple’s app store or Google’s Play Store.

Vote Now for Your SEMA Board of Directors

Election materials for the SEMA Board of Directors election have been mailed to the primary contact at all eligible SEMA-member companies. Voting takes place through June 12. Eleven individuals are vying for five open seats. Voting is open to current SEMA member companies and votes must be cast by the member’s designated primary contact. Voters will be able to select from 11 candidates who are vying for five open seats. Photos and background information on the candidates can be found online at http://www.sema.org/categories/keywords/board-of-directors-2012-2015nominees. Winners will be announced in June, and formally inducted into the SEMA Board of Directors at the SEMA Installation Banquet in July. All industry professionals invited to join in welcoming the new Board members by attending the gala on July 27, 2012, at the Sheraton Fairplex Hotel & Conference Center in Pomona, California. For tickets or details about the gala, visit www.sema.org/gala or contact: Michelle Harris at michelleh@sema.org, 909-978-6684.

State Farm Issues Damage Control Video State Farm video aims to address ‘misinformation’ on parts program for DRP shops

State Farm distributed a video to its Select Service shops to “clear up some misinformation” about its electronic parts ordering system that it introduced in four U.S. markets. Claims Consultant George Avery acknowledges that initial reaction to the program has not been positive. But he also defends the company saying “We recognize that no effort will succeed if there aren’t wins for all involved. A healthy, profitable repair industry it imporGeorge Avery tant to State Farm and our mutual customers who entrust their vehicle(s) to you for quality, safe and efficient repairs every day.” State Farm’s new program has been criticized by repairers, The Society of Collision Repair Specialists, the Alliance of Automotive Service Providers, and other suppliers. In the video, Avery says, “Our

company’s reputation was built on fairness and square dealing, and we take issue wit the way some in the industry have portrayed our organization.” Here is the transcript of the in the 3 minute 41 second video, which State Farm released to the media: As we discussed in previous videos, State Farm is working with PartsTrader on the development of an electronic parts ordering application. Recently, usability testing with repairers and their suppliers was completed as well as field testing in a couple of locations, which have led to enhancements to the application. Within the past few weeks, we have initiated pilots in a few markets and are receiving feedback from suppliers and members of Select Service Network who are participating. We acknowledge the significant change this represents to the repair industry, and frankly, reaction from a few in the industry has not been positive. We want you to know that we are committed to working through these changes with our network in a collaborative and constructive way. From the beginning of this effort,

52 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

AkzoNobel Announces 2012 FIT Sustainability Awards AkzoNobel Automotive & Aerospace Coatings Americas (A&AC) announced that three US companies have been selected as winners of the third annual FIT Sustainability Award, an industry recognition program devoted to honoring businesses and organizations actively engaged in practices that advance the concepts of sustainability through Focus, Innovation and Talent, the three key principles of FIT. The 2012 FIT Sustainability Award winners will be recognized at a special industry recognition program hosted by AkzoNobel on July 19, 2012 in San Antonio, TX. The winners include:

• Oka’s Auto Body, Waipahu, HI • Keenan Auto Body, Clifton Heights, PA • Enterprise-Rent-A-Car, St. Louis, MO “Corporate sustainability is at its core, a long-term commitment to implementing business practices that meet today’s needs for profitability, personnel development and environmental stewardship; yet at the same time keeps a focused eye on the impact these decisions will have on the

future,” said Mike Shesterkin, Director of Sustainability and New Business Innovations for A&AC Americas. “The 2012 winners of the FIT Sustainability Award have all taken different approaches to achieving this goal, but collectively share in the passion and pursuit of global sustainability, with leadership that has paved the way for others to follow.” The FIT Sustainability Award program was created in 2009 and serves as the umbrella under which the Most Influential Women (MIW) program operates. MIW was established in 1998 to recognize and advance the contributions of women in the collision repair industry. The remarkable industry popularity of MIW, which recognizes individuals, helped serve as a catalyst for the development of the FIT Sustainability Award and its focus on the contributions of key corporate leaders within the collision repair industry. The by-invitation-only program will be held at the San Antonio Convention Center. It coincides with the I-CAR Inter-Industry Conference and Collision Industry Conference (CIC) events.

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we have remained focused on creating a more efficient and transparent part procurement process. And we have a responsibility to our policyholders to ensure effective oversight of their premium dollars. We recognize that no effort will succeed if there aren¹t wins for all involved. A healthy, profitable repair industry is important to State Farm and our mutual customers who entrust their vehicle(s) to you for quality, safe and efficient repairs every day.

Our company’s reputation was built on fairness and square dealing, and we take issue with the way some in the industry have portrayed our organization.

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Female Technician Leads New Reality Series for TV

Pam Oakes and the employees of Pam’s Motor City in Fort Myers, Fla., are starring in a new reality series, “Car E.R.” Sponsored by AC Delco, “Car E.R.” follows Oakes, Peter (her long time fiancé) and the rest of the gang at Pam’s Motor City as they deal with tricky automotive repairs, esoteric customers and serious attitudes within the shop. Of course, not everything’s a problem, and there’s a lot of fun and good times, too. Pam’s Motor City was named a Motor Age Top Shop in 2008. Unique to this series is that Oakes

owns and operates the repair shop, day in and day out. Not many women dare to venture into this highly male-oriented field of work, but she follows in her father’s footsteps, and gives the boys a run for their money. The series is slated for first-run distribution via the Internet, with future television broadcasts on the horizon. To see the first few shows click www.car-ershowcom and connect with the show on Twitter @CarERShow and Facebook. Pam is also the author of Car Care for the Clueless: Successful Used Car Buying 101.

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House of Kolor® Colors Automotive World for 56 Years by Melanie Anderson

Back in 1956, House of Kolor®, based in Minneapolis, Minnesota, was founded by world-renowned custom painter, Jon Kosmoski, and 56 years

later, is still a strong player in the world of automotive color. House of Kolor produces basecoats, surfacers, primers, sealers, thinners, reducers, dry pearls and flakes and other specialty products. The company is known in particular for its premium custom finishes.

1930 Ford Pickup, Mike Smyth

tom paints that wouldn’t tarnish, crack or sun-fade, even in severe climates or radical temperature changes. In addition, he wanted paints that could withstand the many coats required for a custom job. When Jon’s products and

skills came together, his paint jobs began to win awards, and people began to talk. Word spread and by 1965, House of Kolor was nationally renowned as high-caliber paint for customizing vehicles. In 1997, House of Kolor became part of the Valspar Automotive Coatings Division. Jon continues to play an important role in House of Kolor. He travels around the world conducting training classes and continues to share his innovative ideas, helping to keep House of Kolor on the leading edge of custom automotive coatings. “After all these years, I’m still passionate about House of Kolor as ever,” said Jon. “In fact, I can walk through a car show and pick out the cars that have the House of Kolor paint on them. They are that much richer and brighter. The people at House of Kolor know that it is all about quality and longevity. That’s why we use the best pigments and solvents that money can buy.”

The company’s roots were inspired by a ‘40 Chevy Coupe. Jon had rebuilt the car and took it to the best paint shop in town. But the paint job was less than satisfactory and Jon knew it could be done better and so he decided to learn how. And, as they say, the rest is history. Jon quickly became well-known for his skills as a custom painter, however, he was displeased with the problematic nitrocellulose laquers and alkyd enamels of the day, which would sometimes sun1956 Chevrolet 210 Post, Gary Uhas fade or cold-crack. Jon wanted something better and House of Kolor maintains its inif it wasn’t already available, then he tegrity and reputation as a leader in the decided he would have to invent it. custom coatings industry by using Together with a doctor in polymer only the finest ingredients in the prochemistry, Jon set out to produce cus- duction of its award-winning paint

54 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

products. The unique product line gives custom painters the freedom to use their imaginations to design, invent, and create “one of a kind” custom paint jobs. The newest paint from House of Kolor is called Shrimrin2 and comes with a supporting line of new clears, primers and more, said Nick Dahl, General Manager with House of Kolor. Shrimrim2 is the second generation of the proven Shrimrin Basecoat technology introduced in 1982. “Through new polymers and innovative chemistry, we are able to meet and exceed waterborne with a solvent-based system which allows the painter to create an unlimited pallet of easy-to-mix colors and to use colors that are the most exciting,” said Dahl, who has been with the company for 17 years. “Shrimrim2 basecoats are ultra productive, easy to apply and range from metallic, pearl and kandy basecoats. Shrimin2 Basecoats are a three-component system that consists of our S2-FX Karrier Bases, S2-FX Effect Pacs and RU Series Kosmic re-

ducers. This new system is the future of custom painting and is available now and compliant throughout the United States, including the strictest

1934 Ford 3 Window Coupe, Robert Darrow and Jim Hetzler

districts in California. House of Kolor is hitting a home run with solventbased custom paints that are coast-tocoast compliant.”

For more information, visit HouseofKolor.com or contact: 901 3rd Avenue South Minneapolis, Minnesota. Phone: (800) 845-2500 Phone: (601) 798-4731 Email: houseofkolor@valspar.com

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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.

Shops and Insurers Discuss Indemnification in DRP Contracts with John Yoswick

going to hold me to indemnify the inShould repairers be held solely responsible if a repair process or part they choose surer against anything caused by the fails—even if that process or part was repair, then insurers should ultimately chosen at the behest of anEd insurer? with Attanasiosay, ‘You’re responsible for indemniThat was one of the questions at the fying us, so you make all the (repair) heart of a panel discussion on “indemdecisions and we’ll pay you for what nification” at the Collision Industry the repair is,’ ” panelist Aaron SchuConference (CIC) held in Oklahoma lenburg, executive director of the Society of Collision Repair Specialists City in late April. (SCRS), said. “I think most repairer Rick Tuuri, who chairs CIC’s “Insurer-Repairer Relations Committee,” with Ed Attanasiowould be fine with that. I think where the issue comes is when insurers start said the topic was triggered by the into be involved in the process by specdemnification clause found in many diifying part types or rect repair agreements. That clause repair procerequires the participating shop to “indures—to identity demnify” (or “hold harmless”) the inhow the repair surer, which could prevent the shop shop does their job from pursing a legal claim against the –while also asking insurer, or make the shop responsible to be indemnified to compensate or defend the insurer in against anything a legal claim arising from repairs made Gary Wano that results from under the agreement. “I think for repairers it ultimately that. If there’s involvement in the decomes down to this: If the contract is cision-making process, I think the re-

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pairer believes there should also be involvement in the liability.” Oklahoma shop owner Gary Wano agreed. He said he thinks that, indemnification or not, if a problem occurs based on a repair, the shop and insurer will both find themselves in court. “The argument from the repairer standpoint is that if the insurer…had left me to do what I do—put the part on I want to put on, or do the operation the way I wanted to do it—none of us would be in that court to begin with,” Wano said. Perhaps not surprisingly, insurers on the panel viewed the issue differently. Allstate’s Randy Hanson said that, first, he’s not sure it’s much a topic of concern. He said that in the decades he’s been involved with his company’s DRP, he doesn’t recall a question from shops coming up about it. “I can also say in 30-plus years, I have not once evoked an indemnification clause in a contract for a DRP partner,” Hanson said. “Not once.” He said five of the six indemnification elements in the Allstate DRP agreement have nothing to do with repair issues. They prohibit such things as a shop making a claim against the insurer if a shop employee makes a workers’ compensation claim, or someone having repaired vehicles under the agreement seeking Allstate employee benefits. But Hanson said Allstate needs repairers to fix cars for its policyholders, so if concerns about indemnification prevented enough shops from signing the agreement, his company would have to find ways to address that. “I don’t want to be so crass as to say take it or leave it, but they’re not going away.” Hanson said of the indemnification clauses. “Everybody is protecting themselves to a certain extent. To an extent that we can’t do business together? Let’s have a conversation. I’m open for that. I think we’ll listen. And I think we’ll make changes where it’s appropriate.” Panelist George Avery, a claims consultant with State Farm, said at first that like Hanson, he hasn’t seen the indemnification clause being much of an issue for shops on his

company’s direct repair program. But he also said State Farm did make a significant change to its indemnification clause. “Our initial Select Service agreement did have a 1-way hold-harmless against us,” Avery said. “It was in our benefit. As a result of input from our (repairer) advisory council, we changed that and now it’s both ways. We added a two-way hold-harmless for both the repairer and for us.” But he also pointed out that some of what shops consider insurer involvement in the repair process is driven by the insurer’s policy contract with its customers. He said State Farm’s insurance policy, for example, says it can designate the type of replacement parts for which it owes. “George has a good point: The policy is the policy,” Schulenburg conceded. “You’ve set an expectation with your policyholder on what you owe for. I don’t think there’s an issue there at all. You owe for what you contracted for. However, there are third-party claimants, and they don’t have a policy with you.” Schulenburg also pointed out that insurers attempt to involve themselves in repair decisions beyond just parts. The policy doesn’t inform the consumer that the insurer may say, Randy Stabler “We’re going to section this rail here versus putting it in at a factory seam,” Schulenburg said. He said that intrusion by insurers into the repair process, pressing shops to do something that deviates from OEM recommendations or their own repairers expertise, is why shops are concerned about the indemnification clause. Speaking from the floor of CIC, California shop owner Randy Stabler raised several other concerns he has related to indemnification. He said the fact that Avery and Hanson haven’t seen indemnification result in an issue doesn’t mean it couldn’t. “I’ve never had a fire in my shop, but I have fire insurance,” Stabler See Indemnification, Page 62

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 55

Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Is the State Farm Elephant in the Room a Bad Elephant? with The Insurance Insider

This is an interesting story and I don’t tinually raising it. I realize it’s not enknow quite where to start. How about: tirely the shops’ fault, but I can assure Elvis has just entered the building and you that when shops are repairing one Chasidy Rae of Sisk nobody noticed. with Is it possible for Elvis their own vehicles, they’re looking to walk into a room and take a seat yet harder for the best price on parts. have nobody notice that the King is in the house? It’s impossible, right? Well, it seems just as impossible that collision repairers didn’t mention State Farm and with parts atChasidy the most reRae Sisk cent Collision Industry Conference (CIC) meeting. They are the most common words affectionately uttered by body shops owners throughout the country these days. So how is it possible that during one of the industry’s biggest stages, CIC, there wasn’t even a mention? Yes, there were some sidebar conversations during breaks. Yes, there was a lot of discussion at an associaWe all have a responsibility to be tion meeting held in conjunction with cost-conscious when spending someCIC. And yes, there have been some one else’s money. When you repair a press releases. customer’s vehicle, you are spending But when everyone had a chance THEIR money. Yes, you are spending to address State Farm publicly, no- THEIR MONEY. I don’t care if it’s an body noticed that the elephant was in insurance claim. The money the inthe room. I know the elephant was surance company pays you is from the there. insured’s premiums. Maybe a gag order was issued? If you understand and respect that Maybe the industry felt that State concept, you would treat an insurance Farm deserved a break? Or could it be claim like it was a customer-pay job that the industry realized that it’s not from a family member. Instead, we as bad as some have made it out to be? have an industry that couldn’t care I am among those who think State less about the cost of parts because Farm’s parts move isn’t as bad as they aren’t paying for them and will some make it out to be. While there make more money by choosing the are pros and cons, the reality is that highest-priced parts. overall it’s a good thing. If State Farm Don’t all of us have a responsibildidn’t take the lead on this, the indus- ity to make sure the customer’s car is try would have continued to flounder repaired in the most cost-effective around for years to come. The ineffi- manner possible? If the answer is cient parts ordering model employed ‘yes,’ why are body shops all over the by the collision repairers is archaic country crying foul? If State Farm was and wasteful. trying to eliminate your parts profit, Why wouldn’t State Farm want a like an ill-fated pilot program many shop to order the most cost-effective years ago, then you’d have a right to part on a given repair? Why should complain. But finding the most costState Farm have to reimburse a shop effective part shouldn’t be something for a more expensive part if the exact insurers have to ask or require you to same part is available at a cheaper do. You should have been doing it price? Paying more for the same part since the first car entered your buildis a waste of insured’s premium dol- ing. lars. Although insurance companies If shops were more cost-con- inserting themselves into the body scious over the past 10 years, insurers shop’s business isn’t a popular submay have been in a position to lower ject, you might as well get used to it. the cost of insurance instead of con- I’ve been around this industry long

Northeast News Shop Showcase

enough to know that unless an insurance company requires it, it’s not going to happen. Allstate requiring CCC’s first estimating system facilitated the widespread adoption of electronic estimating. If that didn’t happen, we might still be writing estimates by hand. Why is Allstate requiring their direct repair shops to be I-CAR Gold Class? It’s because the vast majority of the industry doesn’t want to invest money into training. Shops shouldn’t be forced to keep up with the latest technology and repair methodologies. They should be seeking training without any interference or mandate by an

Mainstream Media

56 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

insurance company. But they don’t. There are many other examples of insurance companies changing the industry but I think my point has been made. When there are inefficiencies in the system, money to be saved or a better way to serve the customer, unless an insurance company decides to play the role of the evil villain, shops aren’t going to do it willingly. If the majority of shops were operating at a high level (as a few are), there would be no reason for any carrier to manage the shops’ business. Insurance companies are similar to the government. You are better served resolving the problem yourself, otherwise your fate will be decided for you. Elvis sang a song titled, “Don’t Ask Me Why.” The next time you are at an industry meeting and want to complain about insurance companies taking over the industry, remember the King’s song…and this article.

On Creative Marketing Positioning Your Shop with Thomas Franklin

was first to walk on the moon. Who In the world of big corporation marketing, how a company or product is was second? Second place is generally “positioned” is a big deal. For exam- no place. So, is it too late to be first in ple, a shop that is known to be the your area? It all depends on first…at biggest, or the fastest, or (not likely what? And are there other alternabut possibly) the cheapest, or (as tives? One problem with being recogmany would like to claim), the highest quality, would be likely to hold nized in the collision repair industry is that position in people’s minds indef- the infrequency that people even think with Dick Strom initely, unless something radically about or look for a shop. Coca-Cola changed their mind. In copiers, can stay first in people’s minds beXerox is still thought of as the stan- cause they drink beverages every day, dard, in computers IBM is still first but few people need collision repair more often than once every three in most people’s minds, and Hertz is still the top rental car name people years. Nevertheless, now and then a shop succeeds in capturing mass pubthink of. In marketing, it’s well known that lic attention. 3-C Collision Center in it’s always better to be first than better. Ohio captured a lot of publicity by atCharles Lindbergh flew the Atlantic tacking shops that catered to insurance solo first, but Bert Hinkler did it faster, companies. He also created a new catconsuming less fuel. He was second egory in which he could be first—a with Lee Amaradio Jr. and never heard of again. George “no-insurance-connection-shop.” This is one way a shop can beWashington was the first president. Who was second? Neil Armstrong come first: Create a new category to

Opinions Count

Action Counts

Your Turn with Sheila Loftus

Shop Showcase with Janet Chaney

Industry Overview with Janet Chaney

Tom Franklin has been a shop 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

be first in. Sometimes new technology creates that opportunity for you. In most areas, one shop became the first to use waterborne paint. As highend car manufacturers began the switch to aluminum structures, one shop had the opportunity to be first with the costly frame machine needed to work on aluminum structures. Of course these opportunities were short lived as other shops made the same move to the new technology, but if the first shop capitalized on being first and promoted that fact effectively, that position of “first” could remain in the minds of key referral source coordinators. The question now is, what new category might a shop use to vault into a number one position, and if so what could be done to make that fact broadly known? I recently wrote about a shop that closed off its drivethrough area and made it available for a meeting of 40 professional women belonging to a networking group called “Power Babes.” Another shop sponsored an even larger group called “The Women’s Resource Network.” These shops successfully positioned themselves as “firsts” to recognize the repair purchasing power in professional women’s groups in their area. Although these were not moves to grab a large mass audience, they were sufficient to capture an emerging, significant market. This may be the most effective way a collision repair shop that’s not part of a large chain or franchise can create a marketing category. As baby boomers get older, another category that might work well is reaching out to AARP members or even handicapped people. On the other end of age-related categories, becoming a specialty shop for driving schools and new drivers could reach significant numbers of people. Another approach is becoming known for championing a highly respected charity. Some possibilities might be transportation for the blind or special events for autistic or handicapped children. It’s well known that children and pets capture people’s attention in ads and media. Helping almost any charity that focuses on these will draw attention to

your shop and enable you to get free publicity. One other marketing strategy that has worked well in getting a business positioned profitably is seeking the number two position with contrast. Perhaps best known is the slogan used by Avis in competing with Hertz Car Rental: “We try harder.” Another was the success of PepsiCola competing with Coca-Cola’s number one position by creating “The Pepsi Generation.” If a competing shop in your community has somehow captured the number one position in people’s minds, you may be able to capture part of that glory with a clever contrasting campaign. “We produce top quality faster.” “No one produces a safer repaired vehicle than our shop.” “Top quality doesn’t have to go for top dollar.” The trick is to identify what you do that can be better than what is perceived as “the best.” And then find a way to communicate to the right public to receive that message. You have the power to create a profitable position in your market. You just have to recognize it and work at it.

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www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 57

The Community-Focused Body Shop

Domenico Nigro is the president of Nigro’s Auto Body, a very progressive shop for their community in Philadelphia. In addition to many productivity innovations, Nigro’s installs equipment for disabled drivers, has developed several phone Applications, and represents products which directly support charities such as United Way and the National Breast Cancer Foundation. Contact him at: nigroautobody@comcast.net.

Domenico Nigro’s Q&A with Chuck Gosney of Collision Billing with Domenico Nigro

The following is an interview with company. We work with the shop to Chuck Gosney, President of Collision make sure they are billing for all opBilling, a company that could help erations performed to repair their cuswith JanetindusCheney tomer’s vehicle to pre-accident bring the changes the collision condition. We then use data gathered try desperately needs. In this interview, Domenico Nigro asks some from our experience and our claims direct questions on exactly how this database to justify the charges to the insurance company. company could bring needed change.

Shop Showcase

Industry Business Beat

Domenico: Chuck, what exactly is Domenico: So you simply submit the with Frank Sherosky Collision Billing? finished paperwork to the insurance company once the job is done? Chuck: Collision Billing was created to keep the insurance companies in Chuck: Actually, we work the job check and to help the auto body shops from the moment the car arrives at the get paid for the work they are doing. shop to the time the shop receives Nobody was representing the shops, final payment for the job. The estimaso we created Collision Billing to tor writes the original blueprint for relevel the playing field. We have two pair and we take over from there, main services that we provide for the adding any additional R&I or other collision industry, the first being our operations that may have been missed. Full Billing Services, and, of course, From that point forward, we handle all our Claims Database. communication with the insurance company. We then make them justify Domenico: For years, there have been why they refuse to pay by using our consultants that have been telling arsenal of tools and experience to shops how to get paid by using the ref- show them the validity of the operaerence manuals, P-Pages, and other tion. tips on writing a complete sheet. How are you different? Domenico: So what has been the response so far? Chuck: The other consultants do a great job of explaining what is in- Chuck: Given our knowledge of the cluded and not included and what to three major estimating platforms, the ask for. We have all been to their P-Pages, database reference manuals workshops and get excited and go out and our Claims Database, we have on Monday and start writing repair orbeen very successful in getting our ders the way we should. When you clients paid on the work they have ask for those things, the insurance performed. We have helped shops get company’s response is that they don’t paid for operations where previously pay for that and the shop has no re- they were told “We don’t pay for that” course to get paid for it and they stop and we were able to show that the inasking for it. What the shop is lacking surance prevailing rates were not acis data to substantiate the operation, or curate to get some shops their true someone who will challenge the in- labor rates. surance company on the shop’s behalf. That’s where we come in, and Domenico: I’m familiar with the Pthat’s how we’re different. Pages and reference manuals, but what exactly is the Claims Database? Domenico: How does your full billing services work? Chuck: The Claims Database is our number one tool in assisting our Chuck: Our full billing services are clients in getting paid. It’s where we similar to the professional billing serv- track different components of the estiices used in the medical field, and mates and log them for future use. For much like a medical biller, we work example, we can find if a certain inwith the shop in submitting their final surance company has paid for a speblueprint for repair to the insurance cific operation (such as a finish sand

58 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

and buff or test drive car), paid for itemized materials, or are even suppressing the labor rates for the area with deceptive estimating practices. It’s real simple. We submit this data to prove our point.

ance company claims they won’t pay for finish sand and buff, so we then show them examples of where they have. Now, it’s up to them to justify why the operation is paid on one side of town, but not on the other.

Chuck: Actually, we realized early on how powerful the data was, and we wanted to make it available to the masses. So we created a subscription model that allows shops to submit their estimates along with the corresponding insurance estimates to contribute to the database. They can then request from Collision Billing information to be sent to an adjustor on specific operations or rates. To follow our earlier example, let’s say an insur-

Chuck: We are collecting and tracking a lot of information. We will use that information to get our members paid, period. We see trends where insurance companies have “policies” that they don’t pay for specific operations. We don’t see any justification for their “policies,” especially when the information providers state that those are not included operations. We will challenge them to do what’s right

Domenico: That sounds like it would be extremely useful. Do shops have to use your billing service to get access to that information?

Domenico: You have mentioned a few times that you will pursue payment. What is meant by that and how far are you willing to take it?

See Nigro’s Q&A, Page 59

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Daughter of AZ Shop Owner Writes About Drinking & Driving

Heidi Deary, a high school junior in Glendale, AZ., and the daughter of Dan Deary, who owns a well-known auto body shop, Capitol Collision Repair, grew up seeing what happens to cars after a drinking and driving accident. “I started Capitol Collision 25 years ago,” said Dan Deary. “Heidi grew up around the body shop. At first we kept her away from the gruesome piles of metal that used to be cars before their collisions. But as she got closer to the age of driving, or even riding in cars with other teenage friends driving, I was glad that she was becoming aware of the consequences associated with auto accidents.” Deary said about 90% of the work they perform at his Phoenix auto body repair shop is major collision repair. “The way cars are designed these days with crumple zones to absorb the impact of a collision, we don’t see too many minor bumper repairs. Sometimes the cars look like the accident was a lot worse than it probably was, but sometimes you can tell someone got hurt. Every once in a while, cars

come in from a collision sealed up with the Hazmat tape, meaning someone died in the accident. It’s hard not to be affected, especially with a daughter getting closer to the age of driving. You’d be surprised by the amount of times we come across alcohol bottles or beer cans people have hidden.” Heidi wrote a letter called “The Hard Truth” to reach out to other teens about the dangers of drinking and driving after watching a high school presentation. Her father posted the article on his auto body website. “As a high school junior, and the owner’s daughter of an auto body repair shop, Capitol Collision Repair, I am well aware of car accidents that students have,” Heidi said. “At the shop, I have seen a lot of badly wrecked cars. I wasn’t, however, ready for just how much of an impact the presentation would have on me. At my dad’s collision repair shop, I’ve seen some badly wrecked cars and never did I stop and wonder how that accident affected people’s lives, or may have even taken someone’s life. Now, I can’t help but wonder if all the

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wrecked cars I’ve seen were really just accidents, or were they caused by someone making a wrong decision?” The following are excerpts of the letter Dan Deary posted on his Phoenix auto body shop website: “…the football field there were police officers and firemen and a blue tarp covering two vehicles that were facing each other. The presentation we were about to see was about the dangers of drinking and driving to help us…” “…the sounds of two cars colliding and the police officers pulled a tarp off to reveal two very damaged vehicles that had been involved in an the collision. Instantly, police cars, an ambulances and fire trucks with sirens blaring, entered the football field. They stopped at the scene of the accident, got out of their vehicles, and rushed to the cars. One of the students was covered with an orange body bag and put in an ambulance.” “…started to descend onto the football field, so close that our hair was blowing. Medics rushed out to the accident, putting the young girl…” “…herself and said she was the mother of a 21-year-old who was Continued from Page 58

Nigro’s Q&A

and start paying for the operations, and if we have to, we will take them to court. One of our partners and legal council, Erica Eversman, has successfully won many cases. With the data we are collecting, we will be able to achieve on a global scale what she has accomplished at the local and state level. This data can also be used to share with both the Department of Insurance and the States Attorney Generals to show patterns of unfair trade practices.

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killed in an auto accident. A drunk driving car crash that took the life of her daughter…” “…killed senselessly all because some stranger decided to drink and drive.” “…welled in her eyes, as well as mine, because of the sadness losing a loved one really brings.” The entire article can be viewed on the Phoenix auto body repair shops website at http://www.capitolcollision.net/lesson-drinking-and-driving. “I’m very proud of her,” Dan Deary said. “Not only does it ease my stress a little with her being out with her friends, but it’s so powerful, to the point, and short enough that if people have their teens read it, I really feel that it has to make at least some kind of impact and hopefully their teen has a second thought before getting in a car with someone that’s been drinking.” Capitol’s manager, Eric Boyer, states, “We at Capitol Collision do NOT endorse underage drinking. But feel that educating youths with the knowledge of real world consequences can make for better decisionmaking choices than ignorance and denial of the harsh realities.”

1,700 Exhibitors Have Confirmed Spaces at SEMA

More than 1,700 exhibitors have demonstrated confidence in the 2012 SEMA Show by confirming booth space for the world’s premier automotive trade show, taking place October 30–November 2 in Las Vegas, Nevada. These exhibitors will select their locations on the show floor through the Priority Space Selection process until June 22. The SEMA Show features more than 2 million square feet of exhibits and attractions, and draws more than 100,000 industry professionals annually to connect with the industry’s markets, including performance, offroad, racing, powersports, mobile electronics, light truck, collision repair & refinish and more. Companies that would like to exhibit at the 2012 SEMA Show can still secure booth space through the “Buy A Booth” link located at www.SEMAShow.com. Companies signing up now will be able to select space on a first-come, first-served basis based on availability. Details about the 2012 SEMA Show, including information on how to attend and exhibit, are available at www.SEMAShow.com.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 59

Repairers Have Their Say at SCRS NIIF in Oklahoma The industry has its troubles, and it is up to repairers to change things for the better. This was the overriding message evident at the 20th annual Society of Collision Repair Specialists (SCRS) National Industry Issues Forum (NIIF). Held April 25th in Oklahoma City exclusively for SCRS members and repairers, the three-hour “town hall” gathering offered a truly unique opportunity for attendees to speak their minds about the industry issues that matter most to them without the presence of insurers and other non-repairer entities. SCRS representatives welcomed and encouraged this direct feedback, which they use to calibrate their messaging and carry on to other industry events on behalf of their membership. Unsurprisingly, the majority of views expressed during the Forum represented the overwhelming sense of frustration felt throughout today’s collision repair industry. Like a frog in a cooking pot, repairers in attendance openly expressed their growing discontent with the current state of the industry, and the overwhelming and intrusive pressures placed upon their businesses. DRP relationships were a major topic of discussion, with some participants expressing the opinion that repairers have lost their spirit of entrepreneurship as insurers continue to do their shops’ marketing for them. One attendee shared the harrowing tale of being the country’s top DRP for a particular insurer, only to lose that relationship altogether a mere 14 days following a major management change at the carrier. As this participant

stressed, it is dangerous for shops to place too many eggs in one basket by having the vast majority of their work derived from one or two carriers. Insurer involvement in the partsordering process was also a major concern, as several attendees voiced apprehension over the future of their industry if a particular insurer’s new parts procurement system is successfully forced upon repair businesses. Some attendees questioned if paint and other areas of the repair process would be the next areas to experience this high level of insurer involvement, voicing a concern that our businesses are ultimately subjugated to nothing more than labor service providers. While DRPs and parts procurement are indeed major issues affecting the industry, many attendees argued that the greatest dilemma facing the field is the shops’ unwillingness to look in the mirror and accept that they are the ones who ultimately guide their professional destinies. Some Forum participants opined that the majority of shops need to do away with their “why me?” attitudes and take full responsibility for regaining power and control of their industry. In fact, the forum moderators themselves worked diligently to keep the conversation from being a standard complaint session, challenging attendees to discuss what the industry would look like if we discarded the mindset that we have to work around how it is, rather than working to change what we have come to accept as reality. Many argued that this goal could be achieved through improved business skills. This includes knowing how to correctly use cost accounting systems in repair facility

billing practices, and having a better understanding of the necessary charges to be profitable on anything from paint and materials to labor or parts. This sentiment from a number of audience members really called for a revisit to an era of “ARMS-like” training for estimators and front office staff. In an effort to stress the importance of proper training in today’s industry, one educator in attendance shared that he has seen a dramatic lack of proper equipment in the field, admitting that he has even encountered repair facilities who are on some of the largest carrier programs that do not have appropriate measuring systems, welders or training. Repair specialization was also a major talking point, with one participant noting that he recently sent one of his top technicians to Germany to learn how to properly repair a particular vehicle. The owner argued that specialization might present a solution to reimbursement issues, stating that it is generally accepted that a heart surgeon charges more than a general practitioner, based on a refined area of expertise. During this discussion on shop reimbursement, one owner discussed his experience of charging the customer the difference for necessary repairs not reimbursed by the carriers. To illustrate his point, he shared his recent experience of having to handle certain charges that his health insurer didn’t pay for his recent surgery, stressing that consumers have grown accustomed to paying for things not covered by insurance. On the topic of repair standards, some attendees voiced concern over

Florida Shop Owner Arrested for Impersonating Adjuster

A Florida body shop owner was charged with impersonating an insurance adjuster for three carriers at accident scenes to generate more business for his auto body shop, police say. Vincenzo Gurrera, 43, of Boynton Beach, FL, became the subject of an investigation after numerous complaints were filed against his shop, Collision World, at 610 Industrial Ave, according to the Palm Beach County sheriff’s office and the Sun Sentinel newspaper. Between August 2011 and April, Gurrera allegedly impersonated an adjuster from GEICO, Liberty Mutual or

State Farm, giving specific directions to people to take their cars to his shop for repairs. It would often take weeks for the companies to find out about Gurrera’s transaction, the sheriff’s office said. The routine Vincenzo Gurrera allegedly began in August 2011 and continued to April of this year. Those involved in the crashes told investigators they signed Gurrera’s release forms because they

60 JUNE 2012 AUTOBODY NEWS | www.autobodynews.com

thought Gurrera was a “legitimate insurance representative.” Each victim identified Gurrera in a photo line-up, authorities said. Detectives received four sworn affidavits from the three insurance companies, which stated Gurrera does not currently work, and has never worked, as an insurance adjuster for their companies. The Florida Department of Financial Services confirmed to investigators that Gurrera was not licensed. Anyone who suspects they are being lured into an insurance scam should call the Department of Financial Services at 877-693-5236.

the lack of consistency between repair shops and opined that actual repairers and OEMs should be the entities to determine the accurate methods of bringing vehicles back to pre-accident condition - a reality that SCRS is working to accomplish through collaborative efforts with other repair associations, I-CAR and the OEM community. While the National Industry Issues Forum allowed attendees to discuss the current state of the industry, the event also offered an opportunity for participants to discuss how things could be improved. Several members noted that the solution too many of the industry’s problems could be found through greater participation from shops. With only a small percentage of industry personnel attending the Forum and other industry events, a stronger presence from active shop owners and technicians is desperately needed. The call for an amplified grassroots movement to engage repairers was noted as a possible solution to help. Additionally, some SCRS members noted that the industry must develop more consistent message points if it hopes to send clear and effective points to the motoring public, news outlets, regulators, legal professionals and the insurance industry. Above all, participants called for associations like SCRS to maintain a strong voice for shops in the industry especially those businesses that are afraid to voice concerns out of fear of repercussions. The National Industry Issues Forum was one of the many ways that SCRS works to provide value and support to its membership and the industry-at large.

According to investigators, Gurrera was possibly receiving accident information from crash scenes and then filing claims based on that information. In Florida, however, accident reports are not released for 60 days after the crash. Police recommended that consumers who believe they were affected contact the Department of Financial Services, Division of Consumer Services by calling 1877-MY-FL-CFO (1-877-693-5236) or www.myfloridacfo.com/division/consumers for assistance, or to report a possible scam.

SCRS Presents Repairer Driven Education Series at 2012 SEMA Show

The Repairer Driven Education what innovation can look like in the collision industry, providing accessi- ment of the automotive specialty market, including (RDE) series, presented by the Soci- collision repair business and how it is ble and affordable education on top- equipment matters affecting the industry. Want to Contribute to this Southwest Edition? ety of Collision Repair Specialists becoming core to business strategy. ics that address issues that truly restyling, hot rod, trucks & SUVs, (SCRS), is returning to the SEMA Other sessions explore how digital matter to those working in repair fa- and racing & performance. “The SEMA Show features prodShow for the third consecutive year. marketing, social media and related cilities. We were fortunate to be able ucts from every automotive niche, to present the series at the last two tools can increase customer retention Complete details, including course publisher@autobodynews.com autobodynews.com descriptions and a registration link, and loyalty, as well as those that ex- SEMA Shows, and look forward to which makes it the ideal venue for are available at http://www.se- amine how new metals that are being expanding the program this coming buyers to discover new markets,” said Peter MacGillivray, SEMA VP mashow.com/event/2012/10/30/scrs- used in the construction of today’s year.” SCRS partnered with your Show business or- of events impacting your the repair repairer-driven-education-rde-series. vehicles are Promote business with Promote withand communications. “Because the collision market is ganizers to present the RDE program With courses individually se- process. an exclusive article featuring an exclusive article featuring “As more and more collision re- at the 2011 SEMA Show. The annual so closely related to many of our tralected or crafted by the SCRS, the your products or services. your products or services. pair businesses attend the SEMA trade show, which saw nearly 30 per- ditional market segments, it’s beprogram includes nearly two dozen To advertise ly sessions taking placeMomber during the call Joe at: Show, SCRS is pleased to partner cent more attendees from those rep- come one of the fastest growing areas ry SEMA Show on Tuesday-Friday, Oc- with SEMA Show organizers to en- resenting collision repair facilities and is of huge interest to our atten800-699-8251 ! tober 30-November 2, 2012 in Las hance the overall experience for our compared to the previous year, brings dees.” In addition to the SCRS RDE series, industry,” said Aaron manufacturers of automotive Vegas, Nevada. Thee-mail: Headline Ses- segment of the CALL: Joe Momber for details! Call forparts details! jmomber@autobodynews.com 51 sion, “Game Changers - Innovation Schulenburg, SCRS Executive Di- and accessories together with indus- the SEMA Show will feature nearly the world. 60 educational seminars throughout is a tremen- try buyers from all over Forum,”www.autobodynews.com takes place November 2 and rector. “The RDE series 800-699-8251 800-699-8251 E features industry leaders discussing dous educational opportunity for the Manufacturers represent every seg- the week.

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Twenty Million Dollar Art Collection Has Been Held in Long Island Body Shop for Years Man Ray may never have done any automotive art or be as well known in the collision repair community as our best liked airbrush artists or custom painters, but he has been called one of the most influential artists of the 20th century and his photographs, paintings, and drawings are highly soughtafter in the international art markets. Man Ray was a ground-breaking American artist and experimental photographer, perhaps best known for his X-ray-style “rayographs” made with his own innovative photo-darkroom techniques, but without cameras. He spent much of his life in Paris and was a colleague of Pablo Picasso and Salvador Dalí. Man Ray died more than thirty years ago, but much of his work can be found carefully archived in a custom interiors shop called AutoMat in Hicksville on New York’s Long Island. The shop is owned by Eric Browner and operated by his family.

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The shop’s auto interior -oriented showroom would not be mistaken for

a museum and gives little clue to the art treasures housed nearby, which is lined with upholstered seat covers, it is the headquarters of the Man Ray Trust, which contains about 4,500 works from the artist’s estate. Now, the collection is being privately shopped to museums. Eric Browner, brother Man Ray’s art of Man Ray’s widow, wound up in Juliet, has housed Long Island bethe Man Ray Trust in cause the artist’s his Hicksville shop. late wife, Juliet, set up the original trust before she passed away in 1991. Since her death everything has been passed down to her brother, Eric and his extended family, which owns the custom upholstery shop. The family knew very little about Man Ray but is now preparing to transfer ownership to a museum, with an expected valuation of about $20 million. Eric Browner, now 86 years old, manages 15,000 copyrights for the artist and oversees licensing contracts worth roughly $300,000 a year. Mr. Browner, who lives in Florida, told media sources that he’s been feeling family pressure lately to sell the archive before he dies. The trust’s proceeds are to be split among about a dozen heirs.

www.autobodynews.com | JUNE 2012 AUTOBODY NEWS 61

Continued from Page 55

Indemnification

cited as an analogy. He also said it would seem fair that insurers cross-indemnify shops, in case an adjustor, for example, slips and falls while at the shop, or makes inappropriate comments to a shop employee that results in a claim against the shop. He also pointed out that shops have business insurance to protect themselves in the case of an error

or omission, but that insurer offering that coverage is basing that policy on protecting the shop, not the insurer with which the shop has a contract. “When you actually go to your (business) insurance company and say here’s my DRP agreement and they actually look at that, they go, ‘Ooooh. Ooooh. We don’t like that so much.’ So that’s another practical issue we have to be aware of.” Schulenburg pointed out that the indemnification discussion came about as part of the committee’s effort

to craft a set of guidelines for the “most beneficial and productive repairer-insurer relationships.” “So insurers could say, ‘Look, it’s in there; you should read your documents and if you don’t like it, don’t sign it,’ and repairers could say, ‘Let me fix the car and get out of my business.’ But neither of those things really get us to the goal of this committee, which is to build better relationships between the two parties.” To that end, committee chairman Tuuri said he drafted a position state-

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ment on the topic that reads in part, “Indemnification clauses in DRP agreements…should be fair to both insurer and repairers.” Wano, Avery and Schulenburg said that initially that seemed like a good addition to the committee’s guidelines for mutually-beneficial insurer-shop relationships. “We’re not solving the world’s problems here,” Wano conceded. “But as long as the carriers and repairers are willing to sit down and take a look at these things…”