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California Supreme Court Hears Case on Undocumented Workers’ Back Wages The California Supreme Court has decided to hear a case that could impact the ability of undocumented workers to collect back wages or sue employers for discrimination in California, and may prove instructive in other courts that periodically have to tackle these issues. The case is Salas v. Sierra Chemical Co. (Case No. S196568), and the California Supreme Court will consider whether an employee’s use of false documentation (in this case, a Social Security number) to obtain employment precludes future actions by that employee for discrimination (disability discrimination here). The court has previously sought briefing on three issues:
● Did the trial court err in dismissing plaintiff's claims under the Fair Employment and Housing Act (Gov. Code§12900 et seq.) on grounds of after-acquired evidence and unclean hands, based on plaintiff's use of false documentation to obtain employment in the first instance? ● Did Senate Bill No. 1818 (2001-2002 Reg. Session) preclude application of those doctrines in this case? (See Civ. Code§ 3339; Gov. Code§ 7285; Health & Saf. Code§24000; Lab. Code ?§ 1171.5.) Does federal immigration law preempt state law and thereby preclude an See Back Wages, Page 19
Proposed Amendment to CA Labor Code Section 226 Could Permit Employers To Recover Attorneys’ Fees
sion, which would amend section 226(h) to provide a two-way fee shifting provision. Under the proposed amendment, employers who successfully defend against a frivolous wage statement claim could recover their attorneys’ fees in doing so. Supporters of AB 2095 contend the amendment is necessary to help deter bad faith claims for alleged technical violations of Labor Code section 226 that do not cause any injury to the employee. The bill’s supporters cite, for example, to a 2010 case in which the alleged violation was the employer’s use of a trunSee Proposed Amendment, Page 19
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California Labor Code section 226 requires employers to provide accurate wage statements, and enumerates specific requirements for such wage statements. The statute also provides for penalties should an employer violate section 226, and allows a prevailing employee to recover attorneys’ fees in connection with prosecuting claims for alleged wage statement violations. On May 6, 2014, California’s Assembly on Judiciary heard arguments concerning Assembly Bill 2095, a proposed amendment to Labor Code section 226(h)’s attorneys’ fees provi-
VOL. 32 ISSUE 6 JUNE 2014
Auto Repair Industry Goes to Sacramento for its Annual ASCCA/CAA Joint Legislative Day by Ed Attanasio
Jack Molodanof, the lobbyist for both organizations coached the ASCCA/CAA members about the proper protocol to be used while encountering politicians or their representatives at the ASCCA/CAA Legislative Day in the Capitol
Every year, automotive repairers from all over California converge on the Capitol in Sacramento. It’s not anything close to the Million Man March, but it surely is important to the thousands of people who work for body shops or mechanical repair facilities throughout the Golden State. At ASCCA/ CAA’s Joint Legislative Day on April 30,
100 automotive repair professionals from all over the state came together to take on the powers-that-be and provide feedback about proState Senator Bob posed legislation Huff spoke to the potentially impactASCCA/CAA members in ing their busiattendance during nesses. their Legislative Day Legislative Day in Sacramento, CA speakers included on April 30 Tim Corcoran and Bill Thomas from the Bureau of Automotive Repair, to discuss enforcement efforts and licensing issues and Betty Jo Toccoli, the president of California’s Small Business AssociSee Joint Legislative Day, Page 46
Arizona Attorney Takes on “Short Pays”
Attorney David Hume of Scottsdale Arizona has quickly become an authority at helping collision repair shops recover insurance company underpayments. “Last year, through the Automotive Service Association of Arizona, I became aware of the problems collision repair shops are having obtaining fair reimbursement from insurance companies,” stated Hume. “I was amazed at the blatant disregard many insurers have for paying a shops posted labor rates as well as for all of the procedures repairers must follow to properly repair vehicles”. Luz Rubio, Executive Director for the Automobile Service Association of Arizona (ASA AZ) said, “More and more, I am hearing from shop owners that are frustrated by insurer interference in the repair process. Insurance companies are simply refusing to compensate shops for what must be done to ensure that vehicle owners receive a safe and proper repair”. Hume has successfully settled several cases out of court with Metlife, Ameriprise and State Auto on behalf of Jan Vesely, owner of Jan’s Spec-
trum Collision Center in Tempe, AZ. As a result, interest in filing short pay suits is on the rise and several other Arizona collision shop owners have agreed to have Mr. Hume represent them using an Assignment of Proceeds signed by the vehicle owner. All settlements made to date have included reimbursement for Hume’s fees as well as court costs. When asked why he decided to pursue legal action, Vesely said,“Because that seems to be the only way to get it done and the only thing that some insurance companies understand. There has always been a legal aspect to our business but it was little understood by the shops until some attorneys showed us the way, like Erica Eversman, Patrick McGuire, other shops across the country and namely Ray Gunder in Florida. It’s time to work together, level the playing field and take back control of our industry. If we stand on the sidelines and wait for the other guy to do it, it won’t happen.” David Hume can be reached by phone at 602-279-1915 or by email at david.hume@azbar.org.
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2 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Contents
COLUMNS Basteri - Getting Powered Up at the 2014 WIN Annual Educational Conference. . . . . . . . . . 48 Franklin - What’s In A Name? Possibly The Success Of Your Shop! . . . . . . . . . . . . 39 Sisk - ASA-NW’s Automotive Training Expo ‘14. . 14 Sisk - IACA Combats Threats to the Industry. . 44 Yoswick - June Retrospective: ASA Position, CAPA, CIC . . . . . . . . . . . . . . . . . . . . . . . . . 54 NATIONAL Advance Auto Profit Up 21%, Acquisition Boosts Sales . . . . . . . . . . . . . . . . . . . . . . . 57 AMI Taking Applications for $1,000 High-Octane Award . . . . . . . . . . . . . . . . . . 56 AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution. . 51 Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website . . . . 54 Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops . . . . . . . . 51
A ride so smooth it feels like you’re not even touching the ground
Perfect for a Memorial Day roadtrip with your large family
www.facebook.com/autobodynews Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Online Editor: Alicia Basteri Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
Audi Wholesale Parts Dealers . . . . . . . .50 Automotive ID . . . . . . . . . . . . . . . . . . . .34 AutoNation Chrysler-Dodge-Jeep-RamFIAT . . . . . . . . . . . . . . . . . . . . . . . . . .30 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . . .8 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Dealerships . . . . . . . . . . . . . . .21 BMW MINI of Escondido . . . . . . . . . . . .39 BMW Wholesale Parts Dealers . . . . . . .53 Bob Smith BMW . . . . . . . . . . . . . . . . . .42 Bob Smith MINI . . . . . . . . . . . . . . . . . . .42 CCC Information Services . . . . . . . . . . . .2 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .31 Chapman Scottsdale Autoplex . . . . . . .25 Chief Automotive . . . . . . . . . . . . . . .22, 23 Classifieds . . . . . . . . . . . . . . . . . . . . . . .62 Colortone Automotive Paints . . . . . . . . . .6 DCH Chrysler-Jeep-Dodge-Ram . . . . . .29 DCH Kia of Temecula . . . . . . . . . . . . . . .29 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .63 Drew Hyundai . . . . . . . . . . . . . . . . . . . .20 East Bay BMW-MINI . . . . . . . . . . . . . . . .12 Elk Grove Toyota . . . . . . . . . . . . . . . . . .46 Enterprise Rent-A-Car . . . . . . . . . . . . . .40 Equalizer Industries, Inc. . . . . . . . . . . . .18 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .45 Galpin Motors . . . . . . . . . . . . . . . . . . . .24 Glenn E. Thomas Dodge-Chrysler-Jeep .17 GM Wholesale Parts Dealers . . . . . . . . .55 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .32-33
Serving California, Nevada, Arizona and Utah. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
Automotive Aftermarket is Expected to Grow 3.4% PY . . . . . . . . . . . . . . . . . . . . . . 54 BASF Recognizes 5 Shops as Shops of the Year. 54 Bloomberg reports Esurance to Take on Advertising Giants . . . . . . . . . . . . . . . . . . . 57 BMW Joint Venture to Triple Carbon Fiber Plant Capacity . . . . . . . . . . . . . . . . . . . . . . 59 CAPA Reaches 15 Year Milestone for Vehicle Test Fits . . . . . . . . . . . . . . . . . . . . . 59 Car-O-Liner Offers Free Value-Added Design Planning . . . . . . . . . . . . . . . . . . . . . 58 Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages. . . . . . . . . . . . . . . . . . 9 ETI to Hold Meeting with NACE CARS in Detroit . 56 Farmers Insurance’s Class Action on Climate Change . . . . . . . . . . . . . . . . . . . . . 30 Fix Auto to Hold 12th Annual Conference Sept. 21-24 . . . . . . . . . . . . . . . . . . . . . . . . . 8 Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90% . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150 . . . . . 56 Four CARSTAR Shops Were Recognized by Mitchell . . . . . . . . . . . . . . . . . . . . . . . . . 52 I-CAR Enhances Website, Other Improvements Coming . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program Citing Market & Definitions . . . . . . . . . . . . . . . . . . . . . . . 16 Letter to the Editor: Certified Aftermarket Parts Tracking is Superior. . . . . . . . . . . . . . 35 Louisiana Attorney General Attends LaCIA Meeting on May 22 . . . . . . . . . . . . . . . . . . 25 MCR Safety Donates 26,000+ Pairs of Safety Eyeware . . . . . . . . . . . . . . . . . . . 58 MCRS Ushers in Spring with Cocktails, Meeting and New Officers. . . . . . . . . . . . . . . 4 Michigan Lawmaker Proposes Crackdown on Unlicensed Auto Repair Shops . . . . . . . . 20 Mitchell Releases Second Quarter 2014 Industry Trends Report . . . . . . . . . . . . . . . . 50 NABC Appoints Dan Young to Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . 61 NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens . . . . . . 60 NACE Announces CRES/MSO Symposium Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 NSF Certifies 500 Sheet Metal Parts Made by Gordon . . . . . . . . . . . . . . . . . . . . . . . . . 59 OSHA Cracking Down on Isocyanate Exposure . 59 Riskiest States for Employee Lawsuits . . . . . . 61 SCRS Examines Repairer Ability to Control Data . 61 SCRS Member’s E-Catalog. . . . . . . . . . . . . . . 57 SEMA Show Registration Now Open . . . . . . . . 58 Solera Buys Pittsburgh Glass Works’ Insurance Business . . . . . . . . . . . . . . . . . . 57 South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation . . . . . . . . . . . . . . . . . . . . . 52 State Farm to Raise Rates in Illinois . . . . . . . . 47 U.S. Rep. Cheri Bustos, D-East Moline, Visits Body Shop, Talks Minimum Wage. . . . . . . . 43 Update on Indiana Shops’ Accusations of Insurers’ Collusion . . . . . . . . . . . . . . . . . 41 US Government Says It Lost $11.2 billion on GM bailout. . . . . . . . . . . . . . . . . . . . . . . 59 Valspar Joins National Auto Body Council . . . . 60 VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition. . . . . . . . . . . . . . . . . . . 34
Indexof Advertisers
REGIONAL 35 Years Dedicated to Teaching Tomorrow’s Techs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Anchor Auto Body Earns 5th Talk of Town Award . 4 Arizona Attorney Takes on “Short Pays” . . . . . . 1 Attorneys Say Non-Compete Agreements in Arizona Follow the Goldilocks Principle: Too Broad and Too Narrow . . . . . . . . . . . . . 10 Auto Repair Industry Takes on Sacramento at its Annual ASCCA/CAA Joint Legislative Day . 1 CA State Senator Leland Yee Runs Afoul of More than Repairers . . . . . . . . . . . . . . . . . . 22 CAA Glendale-Foothill Meet is June 2, RSVP deadline . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Caliber Opens New Location in San Diego Area . . 4 California Labor Commission has ‘Wage Theft’ Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 California Supreme Court Hears Case on Undocumented Workers’ Back Wages . . . . . 1 Californians Don’t Use Free Inspection Service . 8 Car West Breaking Ground on New Dublin, CA, Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 CAWA Gets Two New Board Members . . . . . . . 8 Ceres, CA, Man Found Dead in Auto Body Shop Freezer Reportedly Married to Suspected Killer who Had Several Previous Marriages . . 6 First Mass-Produced Fuel Cell Vehicles Arrive on US Soil, Free Fuel-Cell ‘Refills’ from Hyundai, Range Compares to Gas Vehicles . . . . . . . . 30 Franklin - CAA Glendale-Foothill Chapter Meeting April 17, 2014 . . . . . . . . . . . . . . . . 24 Kadel’s Acquires Tigard, OR, MSO Alpine Auto Body . . . . . . . . . . . . . . . . . . . . . . . . . 16 Napa Valley Auto Body Enthusiast Passes at 79. . 6 Nevada Margin Tax Garners Opposition from CAWA and AFL-CIO, Supported by State Education Association . . . . . . . . . . . . . . . . 10 New Shop Opens in Manchester, WA . . . . . . . . 8 Proposed Amendment to CA Labor Code Section 226 Could Permit Employers To Recover Attorneys’ Fees . . . . . . . . . . . . . 1 Regal Collision is Paws Down the Country’s Most Dog-Friendly Body Shop . . . . . . . . . . 18 Scott Biggs of Assured Performance Speaks at Two N. Calif. CAA Meetings. . . . . . . . . . . 28 Sisk - Sunrise Automotive Training Expo and Convention in AZ . . . . . . . . . . . . . . . . . 36 Young Utah Collision Repairer Speaks Out via Blog . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
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Hyundai Wholesale Parts Dealers . . . . .56 Innovative Tools & Technology, Inc. . . .35 Kearny Mesa Subaru-Hyundai . . . . . . .43 Ken Garff Automotive Group . . .15, 26-27 Kia Motors Wholesale Parts Dealers . . .49 Larry H. Miller Chrysler-Jeep-Dodge . . .14 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Los Gatos Luxury Cars . . . . . . . . . . . . .16 Maita Subaru . . . . . . . . . . . . . . . . . . . . .36 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Mazda Wholesale Parts Dealers . . . . . .61 Mercedes-Benz . . . . . . . . . . . . . . . . . . . .7 MINI Wholesale Parts Dealers . . . . . . . .52 Mitsubishi Wholesale Parts Dealers . . .59 MOPAR Wholesale Parts Dealers . . . . .37 Mossy BMW of Vista . . . . . . . . . . . . . . .28 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .47 Reliable Automotive Equipment, Inc. . .10 Replica Plastics . . . . . . . . . . . . . . . . . . .30 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .44 SATA Spray Equipment . . . . . . . . . . . . .13 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . .18, 19 Shingle Springs Nissan-Subaru . . . . . .38 Sierra Chevrolet-Honda-Mazda-Subaru .41 Sonnen BMW . . . . . . . . . . . . . . . . . . . . . .9 South Bay Volkswagen . . . . . . . . . . . . .22 Subaru Wholesale Parts Dealers . . . . . .57 Toyota Wholesale Parts Dealers . . . . . .58 Valspar Automotive . . . . . . . . . . . . . . . .11 Volkswagen Wholesale Parts Dealers . .51 Volvo Wholesale Parts Dealers . . . . . . .60 Weatherford BMW . . . . . . . . . . . . . . . . . .4
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 3
MCRS Ushers in Spring with Cocktails, Meeting and New Officers
The event began with a cocktail party on Friday night, allowing attenOn March 21st and 22nd, the Montana dees time to socialize and network. Collision Repair Specialists (MCRS) This first MCRS Meet and Greet, held their 2014 Spring Meeting at the sponsored by Denny Menholt ChevroHilton Garden Inn in Billings, MT. let, was lauded as so useful that the asThe day-and-a-half event included a sociation plans to incorporate the cocktail reception party, training proconcept into their future bi-annual vided by Steve Trapp of Axalta Coatmeetings. ing Systems, and an election of new On Saturday morning, MCRS held a Business Breakfast Meeting before attending two of Trapp’s courses, “Selling Customer Pay” and “Consumer Based Marketing”. During lunch, MCRS provided an overview on the MT industry and engaged in a discussion on PartsTraders coming to their state. This included a satellite conference MCRS Spring Meeting - Attendees Listen Attentively to call with Dan Hunsacker who Trapp's Teaching runs one of the first shops to officers for the association. This year’s be put on PartsTrader in Tucson, AZ. event was deemed a success with over In the afternoon, Trapp presented 90 industry professionals in atten“Improving Scoreboard Results.” Outdance, an impressive turnout considgoing MCRS President Bruce Halcro ering MT’s harsh winter and the praised Trapp’s informative courses. dismal weather forecast that weekend. See MCRS Ushers in Spring, Page 29 by Chasidy Rae Sisk
Caliber Opens New Location in San Diego Area
Caliber Collision Centers continues its rapid expansion with the announcement that it has opened a new location in the San Diego region. “Today’s opening of our new location in Encinitas, California increases our total locations to 82 in California as we restore our customers to the rhythm of their lives,” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “We are committed to adding centers across every Caliber market to provide industry-leading customer convenience and CSI metrics.” Caliber Collision’s new Encinitas location officially opened for business today at 204 North Coast Highway 101, in Encinitas, California. “Our new Encinitas Collision Center locations brings Caliber Collision’s total locations to 168 as we continue to grow into the collision repair provider of choice in every community we serve,” added Mark Sanders, Caliber Collision Centers’ President and Chief Operating Officer.
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CAA Glendale-Foothill Meet is June 2, RSVP deadline
The Glendale-Foothill & ValleyVentura CAA chapters will bring the 2nd of a three part series that will undoubtedly change the way a collision repair shop negotiates. Michael Anderson, former owner of Wagonwork Collision Centers in Alexandria, VA, for over 20 years. Mike spends over 300 days a year on the road doing workshops, seminars, onsite consulting and much more. In 2010, Mike was offered a deal to sell Wagonwork, which he accepted and founded CollisionAdvice.com. See Michael’s impactful 3 hour presentation that will cover the current and future state of our collision industry. How to Negotiate with our collision repair partners, the insurers, to making a safe and proper repair for our mutual customers…and be profitable doing so! Date: Monday, June 2, 2014, Location: The Odyssey Restaurant, 15600 Odyssey Dr. Granada Hills, CA 91344. Time: Social Hour at 6 PM. Meeting starts at 6:30 PM Cost: $50 (members) and $125 (nonmembers). RSVP no later than May 19, 2014 by calling Cindy Shillito at (714) 944-4028 or email at radiatorgirl@socal.rr.com.
California Labor Commission has ‘Wage Theft’ Website
On April 30, 2014, the California Labor Commissioner introduced a new website, WageTheftIsACrime .com in an outreach attempt aimed at what the Commissioner calls the “underserved population of low-wage workers.” The Labor Commissioner already has a website but the new site is purposefully written in plain English in an attempt to reach out to lowwage workers with a minimum of legalese. Notably, there is a sister website in Spanish, RoboDeSueldoEsUnCrimen.com. The website provides examples of what the Labor Commissioner calls “wage theft,” including “paying less than minimum wage, not paying workers overtime, not allowing workers to take meal and rest breaks, or taking workers’ tips” and gives employees a step-by-step guide on gathering facts against their employers and filing a wage claim. Interestingly, the website states that it is funded by penalties the Labor Commissioner has received pursuant to the Private Attorney’s General Act, Labor Code § 2698 et seq., which are earmarked “for enforcement of labor laws and education of employers and employees about their rights and responsibilities under this code.”
4 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Anchor Auto Body Earns 5th Talk of Town Award
Earning the highest possible rating of 5 stars for 2014, Anchor Auto Body in the Bay Area was recently awarded its fifth consecutive Talk of the Town Customer Satisfaction Award in the Automotive—Auto Service & Repair category. This fifth straight award has earned Anchor Auto Body the prestigious Sapphire Award. The Talk of the Town Awards, presented by Talk of the Town News, honor companies and professionals that provide excellent customer service as reported by their customers through no-cost, user-review websites, blogs, social networks, business rating services, etc. This data is analyzed by a team of researchers who calculate a company’s CM Power Rating. Only those that receive a 4-star to 5-star rating receive the Talk of the Town Customer Satisfaction Award. Anchor credits some success to its website, designed to be professional, clean and easy to navigate. “It also includes Autowatch, a program that allows customers to view the repair status of their vehicle online,” says Trago. “We have also implemented texting and emails as a way of keeping customers up to date.”
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 5
Ceres, CA, Man Found Dead in Auto Body Shop Freezer Reportedly Married to Suspected Killer who Had Several Previous Marriages On April 14, 2014, Thomas Kroger (aka Thomas Cervantes), 49, was found dead in a chest-type freezer of an auto body shop in Ceres, CA, that was owned by his husband Jacob Cervantes, 26, who has pleaded not guilty to the crime. Kroger’s death may have occurred anywhere between December 1, 2013, and April 10, 2014—his autopsy is pending. Police have not said how Kroger died. Kroger and Cervantes’ wedding license noted that Kroger had been previously married for four years to Bernabe Garcia, who filed for divorce on June 21, 2013, but died a month later of gasThomas Kroger tric cancer. Kroger (aka Thomas married Cervantes Cervantes) on August 13, 2014, just two and a half weeks later, according to public records. Cervantes claimed he had no previous marriages, but records show he married Mindy Gutierrez in 2009. When asked, Gutierrez refused to comment on her former husband’s case, stating she would not attend court hear-
OR Body Shop Owner Harry Alvin Sargent Passes at 77
Harry Alvin Sargent passed away peacefully and with his family by his side on April 13, 2014, at the age of 77. Harry was born in Hamilton, Ontario, Canada. He was a descendant of Alvin and Edna Sargent. Harry moved to Upland, CA, in May 1962, to Harry Alvin Sargent follow his early career in the auto repair business. He soon found that this was one of his strongest passions in life. In 1964, shortly after arriving in California, he and his wife Barbara founded Sargent’s Auto Body. They ran this business until 1978 when Harry took a trip to Roseburg, OR, for a vacation with a friend from California. Harry enjoyed Roseburg so much he purchased a home. Harry opened Sargent’s Body Shop in Roseburg. Harry brought one of his son’s into the business, Harry Jr., and he continues to follow in the family business. There will be no funeral. A ‘potluck’ celebration of life will be held at 3:00 pm on June 14, 2014, at 948 Page Road, Winchester, OR.
ings, according to the Modesto Bee. A former neighbor of Kroger and Garcia in west Modesto, CA, said the two were a quiet couple. He’d see them gardening in their front yard or playing with their dogs, but everything changed about a month before Garcia died. The neighbor, who declined to give his name, said he saw a sign posted on their front door noting that oxygen was in use inside the house, possibly an indicator of Garcia’s illness. Around that time, Garcia filed papers with Stanislaus Superior Court to divorce Kroger, citing irreconcilable differences. The neighbor said people he’d never seen before started coming and going from the couple’s home, including Cervantes. He said he saw Cervantes and another Latino man take furniture from the home and change the locks twice. The neighbor said he last saw Kroger around August 2013, when he was yelling at some of the new people who appeared to have taken over his home. As many as 20 people were there at a time, said the neighbor, drinking alcohol at tables that had
been set up in the front yard. The neighbor said he last saw Cervantes at Kroger and Garcia’s former Woodland Avenue home in January or February of 2014. Kroger was last known to live in the Modesto and San Francisco areas of California, and previously in Oklahoma and Texas. Cervantes has owned multiple auto body shops throughout Stanislaus County, CA. Detectives are asking for the public’s assistance in locating Kroger’s next of kin or other family members, people who knew him, and potential witnesses. Anyone who is related to or knew Kroger, had contact with him, or Jacob Cervantes has any information about him is encouraged to contact detective Derek Perry at 209-538-5730 or derek.perry@ci.ceres.ca.us. Crime Stoppers also can be called at 209-521-4636 (callers to Crime Stoppers can remain anonymous and are eligible for a cash reward) or texted at 274637 (type TIP704 along with the message).
Car West Breaking Ground on New Dublin, CA, Location
After months of planning with the City of Dublin, CA, Car West Auto Body is breaking ground on its new facility in Dublin, CA. Located directly across the street from their current location, this new 26,500 square-foot facility will mark the entrance to the Dublin Auto Mall. Car West has six shop locations and six satellite locations in the Silicon Valley Bay Area of California.
Car West Dublin, CA, location artist’s concept
Craig Moe, president and CEO of Car West, states, “We are excited about the project as it will increase long-overdue capacity by 250 percent. This facility will be equipped with the latest technology for aluminum repairs and welding to accommodate car repairs now and those of the near future. This will also allow Car West to position this location to gain manufacture certifications such as Mercedes, Audi, BMW, and others.”
Napa Valley Auto Body Enthusiast Passes at 79
Ralph Stephen Deuer was a longtime resident of St. Helena, CA, and passed away on April 26, 2014, at the age of 79. He was the son of George Deuer and Nancy Raymond Deuer. Ralph attended St. Helena High School and graduated in 1954. After high school, he joined the Army and served in Korea for two years. Upon returning from the service, he learned auto body and mechanical repair at Bryon’s Auto Body shop in Napa, CA, which led to a long-term hobby of automobile buying, repairing, and trading. Ralph was an active member of the Napa County Ralph Stephen Grange and nuDeuer merous winemaking clubs, auto clubs, and other local organizations. He enjoyed going to auto swap meets throughout Northern California, where he traded, bought, and sold parts for vintage automobiles. A celebration of his life will be held in late spring or early summer 2014. You can express your thoughts and memories at MorrisonFuneralChapel.com.
6 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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New Shop Opens in Manchester, WA
Port Orchard Auto Body, located on Colchester Drive, in Manchester, WA, has opened under the ownership of John Latham and his wife, Janet. The couple operated a repair facility at the Colchester Drive location from 1995 until 2008. The business portion was sold to an employee, while the Lathams retained ownership of the property and buildings. The Lathams worked to few summers at a lodge in Alaska and explored Arizona before returning to South Kitsap. The shop was relocated and Latham’s opened it under a new name. John Latham said Port Orchard Auto Body will work with a client’s insurance company during repair. “Feel confident that we are working for you—our customer,” said Latham. Latham said consumers need to know they have the right to choose the repair shop they want their automobile repaired. He said his shop will not repair a car that “he wouldn’t put his own family into.” The shop is located at 1344 Colchester Drive SE and can reached at 360-871-9402. It is open Monday through Friday, 8 a.m. to 5 p.m., and Saturday by appointment.
Fix Auto to Hold 12th Annual Conference Sept. 21-24
Fix Auto announced that its 12th Annual National Conference will be held just a short drive from its San Diego headquarters in Carlsbad, California, an affluent seaside resort city occupying a seven-mile stretch of Pacific coastline. Slated for September 21–24, 2014, the company will present a comprehensive program following a theme of “In Pursuit of a Higher Purpose,” an idea that resonates throughout the Fix Auto organization where employees give of themselves to any number of worthy causes within our industry as well as outside of the organization. Fix Auto offers its franchisees, affiliate members, and partners a forum where they can gain new ideas and perspectives on trends impacting the collision repair industry. Those in attendance will also have an opportunity to network with the best of the best—other Fix Auto Franchisees, Collision Repair Experts members and key industry thought leaders. The company has announced a lineup of speakers and activities which comprise a distinctive mix of general and breakout sessions, along with plenty of time to relax.
8 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
Californians Don’t Use Free Inspection Service
Californians who have body work done on their cars can get it inspected for free at their home or office by the state Bureau of Automotive Repair, yet almost nobody takes advantage of this service. Last year, the bureau only performed about 110 inspections statewide, says Jamie Ramos, the program's manager. He doesn't know how many of the cars inspected had shoddy work done. “We don't track the history of results,” Ramos says. Under the program, any car owner who gets in a collision and has body work done can get a state inspector to make sure all repairs listed on their invoice were done correctly. For example, if the shop said it put in a new part, the inspector will make sure it was not refurbished. “In auto body collision repairs, it could look beautiful on the outside, but what's behind there could be unsafe. It could reduce the structural integrity and put the driver and passenger at risk,” Ramos says. The program does not inspect regular mechanical repairs such as brake jobs or transmission replacement, but it will examine almost any work done as the result of a collision.
CAWA Gets Two New Board Members
Chairman Ron Aparicio of MOTUL USA, has appointed Larry Pavey of Federated Auto Parts and Mike Mohler of the National Pronto Association to the CAWA board of directors, effective immediately. “In 2014 CAWA recognized the need to work closer with the industry leading program groups. As we approached Pronto and Federated and proposed to add one of their leaders to serve our board… both organizations stepped up right away and welcomed the idea,” said Chair Aparicio during the appointment process. He went on to say “we have added two industry leaders with a wealth of industry knowledge to our Association. I look forward to their contributions and truly appreciate their willingness to step up and join the CAWA board of directors to help protect the interests of the aftermarket. These are truly two great additions to our team,” Aparicio concluded. CAWA is a regional automotive aftermarket trade association, which represents auto parts jobbers, warehouse distributors, retailers, manufacturers, manufacturer representatives and program groups.
Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages The series of storms that wreaked havoc across much of the United States in April rank as the first billiondollar economic loss event of 2014 that can be attributed to thunderstorms, according to Aon Benfield, the world’s leading reinsurance intermediary’s monthly Global Catastrophe
Recap report. At least 40 people were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions. Insured losses due to the multiday outbreak will likely end up in the hundreds of millions of dollars, Aon Benfield said. Employees of Auto Glass Now in Jackson, MS, escaped serious injury or death just minutes before a tornado
leveled the automotive glass company on April 28, according to regional manager John Ketchum. The shop was pretty much a total loss, but the company has already leased a new building and is back in business already, he says. “[Employees at the shop] called me as I was on my way,” Ketchum explains. “They were concerned because the weather was getting bad and tornado alerts were being issued. They were listening to the radio but none of us realized the severity of the storm. When the alarms [warning sirens] went off, I told them to leave. About 20 minutes later the building was gone. All we could salvage was a chair.” The employees are safe and their homes were not damaged, Ketchum added, but one manager lost both family vehicles. “Basically, I got there and saw all the damage. I gathered everybody together and assured them they still have a job with us and they aren’t going anywhere. I was lucky to find the building. I called the owner [Tony Hakimian] and told him the extent of
the damage. He said to tell everybody we were taking care of their pay for the week. We did not want them worrying. I took the employees out to dinner and Tony bought these guys new tools,” he explains.
We’re waiting for the phones to be hooked up and we are almost ready to do mobile repair and replacements. We have vehicles being delivered today,” Ketchum says. The tornado that leveled the facility was part of a larger storm system that caused widespread destruction in the state. At least three tornados smashed homes and businesses, flipped trucks over on highways and injured a still unknown number of people in Mississippi and Alabama as the massive storm system passed over several states in Michael Harrell, left, of J&J Towing holds up a tow cable the South, also threatening to before attaching it to a flooded car that was swept off unleash severe thunderFairfield Avenue by torrential rains and deposited in a ditch as fellow employee Charles Thomas assists from storms, damaging hail and an inflatable boat in Pensacola, FL, on April 30, 2014. flash floods. (Photo: G.M. Andrews) FEMA reported that 15 of Ketchum and the owner were the 30 tornadoes on April 27 struck able to find a new building and sign a Arkansas, with 5 in Iowa, 4 in Kansas, 3 in Nebraska and one each in new lease quickly. “We are so fortunate that we Louisiana, Missouri and Oklahoma. People in the path of the system found these people a new home for the business. In about an hour we had a were on edge as the National Weather new lease signed,” he says. “The next Service posted tornado watches and day the employees were back to work. See Deadly Tornados, Page 13
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Attorneys Say Non-Compete Agreements in Arizona Follow the Goldilocks Principle: Too Broad and Too Narrow Non-compete agreements under Arizona law follow a “goldilocks principle”: some are too broad, some are too narrow, and some are just right. Although Arizona law recognizes the need to protect legitimate business interests, it also hesitates to restrict individuals from pursuing their chosen careers. A well drafted non-compete agreement can successfully balance the interests of both the employer and employee. A non-compete agreement is unreasonable and will not be enforced if (1) the restraint is greater than necessary to protect the employer’s legitimate interest; or (2) that interest is outweighed by the hardship to the employee and the likely injury to the public In October 2013, the Arizona Court of Appeals held that a noncompete agreement between a public relations company and its former president, Ann Noder, was overbroad and therefore unenforceable. Orca Communications Unlimited, LLC v. Noder, 233 Ariz. 411, 314 P.3d 89 (App. 2013). The agreement prohibited Noder from directly or indirectly advertising, soliciting, or providing “Conflicting Services” within
a “Restricted Territory” for eighteen months after her employment had ended. The court found that the restrictive covenants protected more than Orca’s legitimate business interests because it prevented Noder from pursuing any type of work in the public relations industry, even work that would be based on her skill and talents and not merely confidential information or customer relationships. The court refused to rewrite the provisions to make them enforceable, thus freeing Noder to immediately compete against her former employer. A valid non-compete agreement cannot be copied and pasted from a preexisting template. Each industry and business has unique circumstances and interests that must be considered when drafting an effective and enforceable non-compete agreement. Seeking the advice of competent legal counsel can give employers the confidence to avoid the trial and error method of Goldilocks—ensuring that their non-compete agreements will be “just right.” As always, consult a qualified attorney before acting on any news report that may have legal repercussions.
Nevada Margin Tax Garners Opposition from CAWA and AFL-CIO, Supported by State Education Association
CAWA’s Board of Directors voted to oppose the Nevada Margin Tax that will appear on the 2014 General Election ballot November 4th. Also known as the Education Initiative, Question 3 of the ballot would impose a 2 percent “margins tax” on businesses in Nevada to fund an estimated $700 million a year for education. The initiative is sponsored by the Nevada State Education Initiative, which represents teachers. The Margin Tax Initiative is opposed by the Nevada business community and many elected officials including Governor Brian Sandoval. The Nevada State AFL-CIO recently reversed their position on the initiative and voted to oppose the measure on Friday. “CAWA commits to continuing to help Nevada businesses in the automotive aftermarket parts industry remain strong and vibrant despite the many challenges they face on a daily basis. While CAWA values education and funding public schools, the Margin Tax will raise the cost of living for Nevadans, hurt employers and small businesses and put Nevada businesses at a competitive disadvantage,” said Rodney K. Pierini, CAWA President & CEO.
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CAWA is a regional automotive aftermarket trade association, which represents auto parts jobbers, warehouse distributors, retailers, manufacturers, manufacturer representatives and program groups. The Association provides education, legislative, regulatory and business support to the industry and its membership. It is one of the largest trade associations of its kind in the United States and recognized as a leader in the automotive aftermarket industry. For more information about the Margin Tax Initiative visit www.cawa.org or contact Nevada Legislative Advocate David Brown at dbrown@wmb-law.net or 702.933.0778. The measure was initiated by the Nevada AFL-CIO and the Nevada State Education Association, the state affiliate of the National Education Association. However, Executive Secretary Treasurer Danny Thompson of the AFL-CIO, despite giving his prior support, criticized the plan, saying he supports a smaller margin tax of 0.8%. The Nevada AFL-CIO decided to hold a vote in May 2014 as to whether to support the initiative. On May 2, 2014, the AFL-CIO officially voted to oppose the measure.
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35 Years Dedicated to Teaching Tomorrow’s Techs by Ed Attanasio
Peter Lock has been a collision repair professor at Contra Costa College (CCC) in San Pablo, CA since 1979, long before most of his current students were ever born. It’s been a great ride and a highly satisfying journey for this 58 year-old devotee to the collision industry and his students. A hands-on professor who connects to his students by caring about them and showing it, Lock is starting to think Peter Lock as a about retirement as senior in high school, he looks back at 35 before attending years in the role. Contra Costa College The auto servto become a body ices department at and paint tech and eventually becoming CCC trains people a lifelong instructor how to be auto at the school service technicians, customizers, body repair specialists, mechanics, painters, damage appraisers, collision repair technicians, parts technicians and smog technicians. The school offers a two-year, four-semes-
ter program in either auto repair collision repair technology or auto mechanics, Lock said. Each semester consists of a combination of classroom teaching and hands-on laboratory studies. It seems like a long time ago, Lock said, but he still remembers his early years as a rookie teacher vividly, “I started teaching here when I was 23 and things weren’t as high-tech back then. For one, there weren’t very many auto tech schools around like there are now. Almost everyone had to start at the bottom and learn the business that way, by doing it themselves. I tell my students that learning never ends just because you graduate or get a job. I’ve learned at least 10 times more than I knew when I first started this job and that’s been one of the great things about it.” Lock came to CCC initially as a student himself to learn how to be a body and paint tech in 1973. Upon graduation, he was immediately hired by a series of body shops where he did both body and paint for five years, before he started teaching at CCC. The automotive repair department was
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limping along at that point, Lock said. “I started out teaching just one night class, but I could see right away that the program was struggling to keep open and I was hired to keep it going, for one. Back then there weren’t many qualified teachers. Some people had the industry experience, but I had a degree and that’s why I got the job. The opportunity was there and the way it all came together was pure luck. I tell my students that when you get a shot, take advantage of it and seize that moment, because you may not ever get another one.” Before Lock could be a teacher at CCC, he had to take a 60-hour teacher training class, held at UC Berkeley as part of its continuing education program. It was one day he will never forget, he said. “I was running late that day and rushing home to get ready for my first training class. When I walked in the front door, the phone rang and it was someone telling me that my father had just died from a massive heart attack. So, I had to decide—do I go to this class or stay home so that everyone can come over and grieve? I asked myself, what would my dad want me
to do? And I know he would have wanted me to attend that class. So, here I was sitting in this class getting ready for an occupation for which I knew absolutely nothing and my father had just died one hour before. It was a challenging time.” During those 60 hours of training, Lock decided that he was going to make his classes fun and interactive, without spoon feeding his students information they couldn’t use, he said. “I could see that teaching was going to be fun, mainly because I was going to make it fun. I knew if I just stood up there and said a bunch of stuff, I could lose the students rather quickly. So I came up with ways to engage them without talking down to them or making them feel like it was a one-way thing.” The auto repair classrooms and laboratories at Contra Costa College consist of two separate facilities under one roof, Lock said. The collision repair department covers 10,000 square feet and has 75 students enrolled in its program, he said, and the 6,000square-foot mechanical repair department has an enrollment of 65 students.
CCC offers the I-CAR Industrial Training Alliance program, one of only two post-secondary schools in California to do so, Lock said. The school recently won a $50,000 grant for its excellence and used the money to buy a paint simulator and other much-needed things, like new desks.
Peter Lock today is a lot wiser, a little grayer and truly grateful for an amazing 35-year teaching career
The steady growth of the auto repair industry in Northern California and the advent of new technology have kept the department at CCC healthy and flourishing, according to Lock. Approximately 2,600 students have come through his department in 3.5 decades and one of the best parts of the job is when his graduates reach out to share their success stories.”Sometimes
they call excited to tell me they just got a job at a body shop,” he said. “They call to say thank you and that really means a lot. We teach them how to fix cars, but we also instill in them a work ethic and also stress the satisfaction of doing a job right.” Many of Lock’s former students are now body shop owners and they often contact Lock periodically to inquire about hiring some of his current students upon graduation, he added. “I now also have second-generation students entering our program and if I stick around long enough, I imagine I’ll start seeing some third-generation future techs coming through here.” Although he doesn’t have firm plans yet for stepping down, retirement is surely in Lock’s rear view mirror, he explained. “I want to make sure that the program is strong before I retire. Until last year, I was also the Chairman of the Automotive Technology Department at CCC, a job we handed off to Lucille Beatty, so that I can focus on teaching, which I really love the most. I know I can be replaced and that’s okay, but I want to be certain that the department is still thriving when I hand off the reins.”
Continued from Page 9
Deadly Tornados
warnings around Mississippi, Tennessee, Alabama and Georgia. Forecasters said the system was the latest onslaught of severe weather that triggered deadly tornadoes in Arkansas, Oklahoma and Iowa on Sunday, killing at least 40 people. Arkansas was the hardest-hit state on the first day of the tornado outbreak, and an EF4 tornado roared through Mayflower, Vilonia and other nearby towns. The storm was so huge it was visible from space, photographed by weather satellites that showed tumultuous clouds arcing across much of the South. The Florida Panhandle was hit with up to two feet of rain in a 24 hour period causing widespread flooding, washing away roads, and requiring helicopter and boat rescues. Florida Gov. Rick Scott said that officials received around 300 calls for rescue from stranded residents. A 10-mile stretch of I-10 was closed due to flooding, leaving people stranded for hours. Gov. Rick Scott declared a
state of emergency for the panhandle due to the impacts. Aon Benfield also attributed economic losses of $950 million to a large hailstorm that hit the Denton, Texas metro area in April, an event that generated insured losses of about $650 million. That storm also caused widespread damage in parts of the Plains, Midwest and Mississippi Valley. According to remarks made in February by Insurance Information Institute president Robert Hartwig, 80% of U.S. natural disaster related insurance claims’ payouts in 2013 was attributable to tornadoes and severe thunderstorms, accounting for $10.27 billion. Oklahoma incurred the most damages due to tornadoes last year, Hartwig said, with nearly $2 billion in payouts, many of which were from a series of tornadoes in May 2013.
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Northwest Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ASA-NW’s Automotive Training Expo 2014 On March 21 through 23, ASA-Northwest held their 6th Annual Automotive Training Expo (ATE) at the Doubletree Hilton in Seattle, WA. With over 600 attendees and 83 exhibitors, the 2014 ATE marked the first year the event has been sold out. The goal of the event was to provide training for the automotive industry, including owners, managers and technicians, and ATE 2014 really delivered with 62 training sessions, six of which were I-CAR courses, taught by industry-leading professionals. Attendees raved about ATE 2014, and some of the feedback that ASANorthwest has received so far included the following: “2014 was the best ATE ever; my production team all brought back valuable information they could use the first day back to work, and my service advisors made subtle changes in how they function and brought up ARO and GP the first week back. If this improvement con-
tinues, we will pay the entire investment of sending six people to ATE back in three months just off of that, not including what the Techs learned!” “This was a premier event that allowed my team and I to increase our knowledge in all facets of our business as well as an amazing team building experience. It’s a no-brainer that we will be back next year, and I think every shop should attend.” “ATE teaches you to be better at your job.” “ATE is a great way for Automotive educators to get updated on current repair information. Attending is always a positive experience.” Jeff Lovell, President and Executive Director of ASA-Northwest, notes “this year, our sixth year, was sold out and exceeded our expectations. We have grown this event from the first year of 173 attendees to over 600 attendees going to training classes with 12,430 hours of training. We also had 83 exhibitors participate in our expo,
14 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
both Friday and Saturday evening. The expo floor was sold out three months in advance!” On Thursday, the National Automotive Service Task Force (NASTF) joined ATE to host their Spring 2014 General Meeting, and over 100 participants attended to discuss the topic of J2534 Reprogramming. At breakfast on Saturday, renowned trainer Gary Smith presented “Success or Struggle,” and during lunch, Bryan Dodge taught attendees “How to Have Your Best Year Ever.” Throughout the event, ATE offered an impressive trade expo with exhibitors displaying automotive parts, repair equipment, shop management services, and specialty products. ATE attendees also had the chance to win a variety of door prizes which were distributed throughout the weekend. Lovell believes these types of association-sponsored events are important for members and the industry because it “brings our membership to-
gether to discuss issues affecting our industry, such as getting new technicians into the industry, environmental issues, legislative issues and networking. It is so gratifying to have ATE grow each year and that it has established itself as the West Coast’s premier training event. Our staff and volunteers help make this an exceptional event that provides quality training to all levels of the service and repair industry. In addition to ASA-Northwest, sponsors for ATE included the Northwest Tire Dealers Association, Auto Shop Solutions (the official social media sponsor), and “Parts & People Northwest” who was the official media sponsor of the event. ATE 2015 will be held on March 20-22nd at the Doubletree Hilton in Seattle, WA. www.asanorthwest.com 253-473-6970
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Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program Citing Market & Definitions Ruling states aftermarket parts distributor’s amended complaint against General Motors’ “Bump the Competition” price matching program was insufficient to prove antitrust, predatory pricing or conspiracy claims. A federal judge in Louisiana granted the defendants’ motion to dismiss a lawsuit brought by a distributor of non-OEM parts that alleged General Motor’s price matching program was anti-competitive. The suit, Felder’s Collision Parts v. General Motors Company et. al. was originally filed against GM and the Allstar Automotive Group, an OEM dealer. The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. Court documents describe antitrust, monopoly, and predatory pricing concerns. Felder’s Collision alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut after-
market prices and drive aftermarket competitors out of business. The suit alleges violations of federal and state antitrust and state consumer protection regulations. As Autobody News reported last June, U.S. District Judge James Brady granted Felder’s motion to file an amended complaint. We incorrectly reported that the full complaint had been dismissed. Rather the judge denied the Defendants’ Motion to Dismiss and allowed the suit to proceed. However, in the current order Judge Brady ruled that Felder’s amended complaint failed to adequately plead its case that the defendants violated federal antitrust laws or engaged in predatory pricing. On the antitrust claim, the judge ruled that complaint did not properly define the geographic market. “Felder’s would like this Court to believe that at the heart of this case ‘is a fundamental legal question— whether the All Star Defendants’ practice of selling parts to collision centers and body shops at a price below the cost paid to GM for a particular part constitutes predatory pricing.’ However, what is fundamental to any an-
titrust analysis is a proper definition of the relevant market and a defendant’s power to detrimentally effect competition therein. Indeed, this inquiry into both market definition and market power is fundamental to properly evaluating the plausibility of a predatory pricing scheme. The amended complaint only listed portions of Louisiana and Mississippi as the geographic market. Beyond concerns about the geographic market defined in the complaint, the judge also ruled that the amended complaint failed to properly plead a predatory pricing scheme. The ruling states, “After reviewing the Amended Complaint, the Court finds that Felder’s has failed to amend to allege below-cost pricing pursuant to the Fifth Circuit standard as instructed by the Court in its previous ruling. Therefore, even if Felder’s had sufficiently pled the relevant geographic market, it would still have failed to properly plead a predatory pricing scheme.” Representing the Plaintiff is the law firm Sher, Garner, Cahill, Richter, Klein and Herbert LLC of New Orleans.
Kadel’s Acquires Tigard, OR, MSO Alpine Auto Body
Kadel’s Auto Body, a locally owned collision repair business based in Tigard, OR, has announced the acquisition of Alpine Auto Body’s three locations in Vancouver, Wash. The acquisition brings Kadel’s total number of stores to 21 in the Pacific Northwest. “During the past 38-years, Alpine has grown into Clark County’s largest collision repair company as a result of our staff’s unwavering commitment to delivering quality repair and the loyalty of our customers,” said Rod Cook, founder of Alpine Auto Body. “It has been an honor to serve our customers and a privilege to work with the best collision repair professionals in the industry.” Added Kadel’s President and CEO Don Braden, “We are very excited to increase from one to four shops in Vancouver so that we can better serve our customers. The Alpine body shops have operated under a lean process model, bringing added value to our organization.”
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Regal Collision is Paws Down the Country’s Most Dog-Friendly Body Shop by Ed Attanasio
If there was an award for the most dog-friendly body shop in the country, Regal Collision in Vallejo, CA would surely warrant consideration. Owner Jim Boyle and his wife Shellie are avid dog owners, but they also back up their bark when it comes to help-
Owner Jim Boyle (center), Manager Kirk Kapfenstein (left) and Body Tech Mike Elliott at Regal Collision in Vallejo, CA unveil their doggy creation, Snoopy’s Camper
ing pets through their philanthropy efforts and by welcoming dogs to their shop when they bring their owners in for repairs. Again this year, Regal Collision Repair reached out to help local homeless cats and dogs by entering a mobile dog house called Snoopy’s Camper in the 11th annual Barkitecture Gala and Auction held at the Sonoma County Fairgrounds on April 4 to raise money for the Humane Society of the North Bay (HSNB). The theme this year was “Woofstock— Peace, Love and Pets,” a groovy celebration consisting not only of a great fundraising event but also competitions in which local businesses, community and/or neighborhood groups and individuals create custom designed “creature” comforts such as: Dog dens, dog and cat furniture, bird roosts, bunny boudoirs, lizard lairs and other pet domiciles. The evening included 1960s music performed by The Wall of Blues, food from local restaurants, a premium raffle, a silent auction and a live auction of items generously donated exclusively for the event.
port of the homeless animals! The The goal of Barkitecture’s “Woofstock—Peace, Love and Pets” program Boyles are wonderful people, great was to raise much-needed operational members of our business community funds to care for the animals and for and willing to help us in any way they outreach to build awareness of the can.” Kirk Kapfenstein, the production plight of the many homeless dogs, cats, other animals available for adoption at manager at Regal Collision Repair, the Humane Society of the North Bay, took a 1950s children’s toy car and a cause the people at Regal Collision strongly believe in and support. With more than 20 people attending the event on behalf of Regal Collision , the shop has become an integral part of the local pet community in Vallejo and throughout the East Bay, according to the director of the Humane Society of the North Bay (HSNB). Jim Boyle (left) receives the People’s Choice Voting Award “Regal Collision was for the Best Dog Domicile from Peter L. Wilson, Director of very active in this year’s Development for the Humane Society of the North Bay Barkitecture fundraiser and (HSNB), at their 2014 Barkitecture fundraising event in the shop won the People’s Vallejo, CA on April 4 Choice Voting Award for best Dog turned it into a cool mobile pad for Domicile and filled two tables with Snoopy and his friends. Known for his nationally-acclaimed paint jobs on bidders to support the animals,” Peter L. Wilson Director of Development literally hundreds of motorcycles, said. “Their domicile was awesome Kapfenstein owns and operates Killer Candy in Concord, CA, when he isn’t and we definitely appreciate their sup-
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running the production at Regal. Kapfenstein dedicated more than 30 hours of his time to help the pets’ cause with this year’s creation, and as a passionate artist/painter and the owner of two dogs and one cat, he loved working on it, he said. Kapfenstein’s cat tower was a crowd pleaser last year and an eyecatcher at the 2013 Barkitecture party, so Kirk wanted to do something better this year. “Snoopy’s Camper got a lot of positive comments this year and it sold for $900, all of which goes to the Humane Society of the North Bay,” Kapfenstein explained. “Making it was fun and by helping the community, it made it even more enjoyable. The Boy Scouts beat us with their doghouse last year, so it was nice to
take first place this year.” The Boyles own a three-year-old Sheltie named Sydney who runs the front office at Regal Collision. “We host I-CAR classes here and I guess she must be picking up some of the knowledge at those classes, because our CSI numbers are through the roof and I credit much of it to Sydney,” Jim Boyle said with a hearty laugh. Regal Collision’s brand new facility in Vallejo will soon be under construction and this 14,400 square foot shop will be featuring all of the latest equipment available, but what will make it truly unique is its dog park. “It’s going to have grass and some water bowls, while dogs can relax.” Shellie Boyle said. “A lot of our customers come in here with their
dogs and we always welcome them. Now with the new shop, dogs will be able to chill in our new dog park while we serve their masters.” Jim Boyle, the owner of Regal Collision Repair, loves doing community work and Barkitecture is just another way to give back to the City of Vallejo, he said. “We’ve been donating to this cause for many years,” he said. “Now we’re stepping up with our new dog park, which will be a great aspect of our new facility. We love our pets and many of our customers share this passion, so if people start considering us as the most petfriendly body shop in the country that would be great. But one request— dogs only please—we don’t want any cat fights.”
Continued from Cover
Back Wages
undocumented worker from obtaining, as a remedy for a violation of "state labor and employment laws" (Lab. Code § 1171.5; Civ. Code § 3339; Gov. Code § 7285; Health & Saf. Code § 24000), an award of compensatory remedies, including backpay? (See Hoffman Plastic Compounds, Inc. v. NLRB(2002) 535 U.S. 137.) For companies with employees in California, the first two issues are more important. Outside of California, they may have less of a direct impact. However, whenever a state supreme court considers the applicability of Hoffman Plastic, companies should take notice. Courts and agencies, including the NLRB, have long sought to find broad remedies for undocumented workers, including backpay. Hoffman Plastic upset the balance between immigration law and available remedies for wage and hour, NLRA, and other violations. This case will add one more important voice to the debate over how to strike that balance post-Hoffman Plastic. The court scheduled Salas for oral argument in Los Angeles and will issue a decision by July 1, 2014. Continued from Cover
Proposed Amendment
cated name on employees’ wage statements. Although the claim was dismissed on summary judgment, supporters of AB 2095 were disturbed by the unnecessary attorneys’ fees and costs the employer incurred to defend against the claim, prompting the proposed amendment. In contrast, opponents argue AB 2095 is unnecessary because the standard to show the requisite injury under Labor Code section 226 was heightened in 2012, and because a 2013 amendment to the Code of Civil Procedure already allows prevailing employers to recover attorneys’ fees in bad faith litigation. Should AB 2095 pass, it would mark a small victory for California employers, as employees and their attorneys would have to carefully evaluate whether to bring a Labor Code section 226 wage statement claim for alleged “technical” violations that have not caused some notable injury.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 19
Michigan Lawmaker Proposes Crackdown on Unlicensed Auto Repair Shops A senior citizen living in State Representative Harvey Santana’s district contacted a local media Consumer Investigator Unit called “Ruth to the rescue” to complain that he had taken his car to a West Detroit shop and has since “been stranded for 5 months.” 82-year-old James Fails said he used the repair shop known as Domestic And Import Auto at 9900 Greenfield in Detroit. Fails said his car was never the same afterward, and he’s suing the facility to get his engine replaced. The Detroit grandfather’s family was shocked to learn the shop’s license had expired. “I just shake my head to still see them open,” Fails granddaughter told Ruth to the Rescue. “We have a responsibility to make sure that this senior citizen, who is a grandfather and lives on a fixed income, doesn’t have to go through the experience he just went through,” Santana told Ruth to the Rescue. Ruth Spencer visited the garage and the owner admitted in March that he didn’t have a valid license. Back then, owner Ali Beydoun told Spencer, he would be getting his li-
cense renewed very soon. The Democrat decided something must be done. He’s now working with several interested parties to create legislation that would fine repairs shops that do not have a license. The proposal would call for a $5,000 fine for the first offense and $7,500 for every offense that follows. “What bothered me is the license ranges from $50 to $500 a year on a sliding scale, so why not just play by the rules and get it?” said State Representative Harvey Santana. What about the shop on Greenfield road? As Ruth to the Rescue started working on the story of this legislative proposal, we wondered if Mr. Beydoun had followed through on his promise to get his licensed renewed. The consumer unit checked with the Secretary of State and found the garage at 9900 Greenfield was still not licensed. Local 4’s Consumer Expert Ruth Spencer went back to the garage. The owner, once again, admitted his garage isn’t licensed, “That is true. And, I haven’t had it cause I’m selling the place,” said owner Ali Beydoun.
While he told Spencer he was selling his garage, he admitted that process could take months and there is another reason he doesn’t have a license. “The reason I’m not renewing them is cause I don’t have the money to renew anything right now.” License equals consumer protection The Automatic Service Association says its important for auto repair shops to be licensed. Among other things, licensed facilities are required to have certified mechanics, trained for specific types of repairs. With unlicensed facilities, you don’t know what level of expertise you’ll receive. “People who are doing work unlicensed are doing the consumers an injustice,” said local garage owner Larry Dragan. He proudly displays his facility’s license and the certificates of the mechanics he employs. Santana’s proposed bill has Dragan’s support, and the support of the Automotive Service Association. “We need to do this for consumers. It’s the right thing to do and it’s the time to do it,” said Ray Fisher, president of the Automotive Service Association of Michigan. “I’m just glad that Ruth to the Res-
cue came out and investigated this. Now we know we have an obligation to do better, now that we know more,” said State Representative Harvey Santana. How To Know If Your Garage Is Licensed Going to an unlicensed mechanic is something that could happen to anyone. Melanie Duquesnel, the CEO of the Better Business Bureau, said it’s easy to spot an unlicensed mechanic, if you know where to look. “Should be licenses on the wall with the names of the people that are going to be touching your car,” she said. If this story makes you nervous about your next trip to an auto repair shop, keep these guidelines in mind. 1) A licensed shops should have that certification on displace, as well as licenses for the mechanics working at that garage. You should be able to see the paperwork posted in the shop. 2) You can go to the website of the Secretary of State’s office to make sure a business is licensed. 3) You can also check with the Better Business Bureau to see if the facility has had previous complaints, and how See Crackdown, Page 23
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CA State Senator Leland Yee Runs Afoul of More than Repairers by Ed Attanasio
Bad news about politicians doing sketchy, illegal things happens so frequently that none of us are shocked anymore, and that’s why body shop owners throughout northern California weren’t surprised when they heard that California State Senator Leland Yee had been arrested for a long list of alleged crimes, with bribery and gun trafficking topping the list. Yee was on the collision industry’s radar in California several times over the years, but most especially when he authored California Senate Bill 1460, known as the Automotive Repair: Replacement Parts Bill in 2012. Last month, A federal grand jury indictment against Yee and 28 other defendants added a conspiracy charge to the seven felony counts the nowsuspended lawmaker faces for allegedly promising political favors and gun trafficking to undercover agents in exchange for $62,600 in campaign contributions. According to a 137-page FBI affidavit, the charges stem from a five-
year investigation that initially targeted Chinatown gang leader Raymond “Shrimp Boy” Chow and spread to his associates, including Jackson, a former San Francisco school board president. The indictment accuses Yee and Jackson of conspiring, between May 2011 and last month, to “defraud the citizens of California of their right to the honest services of State Sena-
tor Leland Yee through bribery.” Yee is alleged to have promised political favors to agents posing as donors to his 2011 campaign for San Francisco mayor and his now-abandoned campaign for California secretary of state. Joe Eskenazi, columnist for the SF Weekly has been covering Yee since the beginning, so his take on recent developments provide useful in-
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sight. In his recent column, “The Human Jukebox”, Eskenazi wrote, “Yee has a well-known reputation as a ‘human jukebox.’ You put the money in and he sings the song you want. Granted, it’d be a shock if you put money in a jukebox and guns and jihads came out. But, if the voluminous criminal complaint against Yee ad 28 others are correct, he’s simply transcended the legal, transactional role of a slick politician into a more lucrative and splendidly illegal version of the same game.” If the money was right, Yee was more than willing to support your cause and push your agenda, according to Eskenazi. “Yee has authored 213 bills while in office and 54 were sponsored by organizations, including casinos, marijuana growers and healthcare organizations, for example. In all, Yee reported receiving $188,755 in campaign contributions from backers of so-called sponsors that bear his name.” Several California Autobody Association (CAA) members who participated in the 2012 CAA Legislative Day in Sacramento met with Yee to
discuss Senate Bill 1460, which would create a new legal presumption that all certified crash parts will be deemed sufficient to return a vehicle to its pre-loss condition. The CAA obviously opposed the bill back then, because it asked more questions than provided answers, according to Jack Molodanof, who represents both the ASCCA and CAA as its legal advocate. “This was the big one for body shops in 2012, because it would have seriously impacted the automotive crash parts industry in a significant way,” Molodanof said. “It eliminated current law and shifted all of the warranty responsibility of aftermarket crash parts to the body shops, third party vendors and suppliers—and that’s why we opposed it.” One of the CAA members who met with Yee and his staff on that day to discuss SB1460 was David Mello, the owner of Anderson Behel in Santa Clara, CA. Although Yee seemed open to the dialog, one of his assistants was less than receptive to the CAA members’ suggested changes to the bill, according to Mello. In fact, the CAA
long-standing law that has served to protect consumers from defective or inferior aftermarket parts for almost 20 years.” CAA Board Member Randy Greenblat was also in that meeting and left there shocked over Yee’s limited knowledge about his own bill. “He wasn’t clear on basic things in the bill and we were surprised,” Greenblat said. “We had met with him previously in his San Francisco office and actually showed him how aftermarket crash parts are inferior to OE, but it didn’t seem to seep in at that time. We left there thinking that someone had made a large donation to Yee to get him to author this bill, either During CAA’s Legislative Day in 2012, CAA Board Member the aftermarket parts indusRandy Greenblat (left) met with Calif. State Senator Leland try or the insurance compaYee (right) to discuss Senate Bill 1460, and was surprised nies—or both.” to discover how little he knew about his very own bill Several days following wide range of reasons and the Cali- after CAA’s 2012 Legislative Day, fornia Department of Insurance (CDI) Yee’s bill was defeated on the floor of also opposed it because they said that the State when the Department of Init obfuscated a rulemaking process al- surance (DOI) sent a letter to Senator ready underway on this matter at CDI Noreen Evans, Chair of the Senate to update and improve existing law Committee on the Judiciary, to anand, at its worst, appeared to reverse a nounce its opposition of the bill. The members in Yee’s office that day were treated like unwelcomed visitors by the senator’s assistants, although Yee himself was quite cordial. “We definitely received some pushback—more than I’ve ever encountered in 20 years doing this,” Mello said. “But this was an important bill. We obviously opposed it for a
DOI’s stance was made clear when Insurance Commissioner David Jones stated, “SB1460, 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.” So, how do body shops protect themselves from laws that can hurt their businesses, especially when it’s apparent that some politicians will represent any group if the money’s right? According to Molodanof, this is where organizations like CAA can shine. “CAA is the industry’s eyes and ears in Sacramento and that’s why we work to defeat bills like SB1460 that will negatively impact the collision industry in any way,” Molodanof said. “As a body shop owner, you’re not able to stay on top all of the legislation out there that can potentially impact your business—both negatively and positively. Legislators come up with new bills all the time, and if no one is there to watch the door, so to speak, things can pass through.”
Continued from Page 20
Crackdown
they were handled. 4) You are always entitled to a written estimate (for repairs that cost more than $20) that will spell out the cost of parts, estimate time of repair, and cost of labor. 5) Once given a target time for completion, you should check on the status of your car before that time arrives. Most reputable garages will call you, but you should check the progress, and the repairs can take unexpected turns and you may need to authorize further expenses. 6) When in doubt, ask around and visit a garage that has glowing references from more than one person. 7) You are entitled to see parts that are removed and replaced on your car. If you’d like to do more research on car repair facilities, you can also go to the consumer website affiliated with the Automotive Service Association of Michigan.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 23
Association Meetings
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
CAA Glendale-Foothill Chapter Meeting April 17, 2014 with Thomas Franklin
The bi-monthly meeting of the chapter was held at the Brookside Country Club, 1133 Rosemont Ave. Pasadena, California, as usual. The meeting was opened by the newly elected president, Daniel Panduro, Fix Auto Sun Valley. Danny launched the meeting with the following strong address: “Hello everyone. I’m really excited to have the opportunity to serve as your President for our FoothillGlendale CAA chapter. It is my sincere intention to bring value to this organization and to restore the voice that this platform deserves to have. As you get to know me, you will find that theme to my madness is centered around unifying the leadership that I know exists in our industry and more importantly in our direct market. I’m open to any and all input that all of you may have as I firmly believe it is this input that will get us closer to our immediate goal of bringing shops back to CAA. I’ve assembled a great
support group to aid us in achieving this goal. We begin today with the first of three meetings that we are certain will bring value to you and your organization. If you have not had the opportunity to hear Mike Anderson or Robert Rick speak in person, now is your chance. Their understanding of our rapidly changing industry is cutting edge and will undoubtedly have a positive effect on how you look at your business model. All three meetings are interconnected so please don’t make the mistake of missing any of the three meetings.” After Danny’s address, a tribute was made to Marshall Gluchow, founder of the Valley Motor Center (VMC), who passed away April 6th. A special video was shown of the recipients of the Trail Blazer donated by VMC to the Diabled American Veterans as part of the Recycled Rides program. After the video VMC General Manager Mike Townley spoke briefly
24 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
to praise the contributions of Marsh Gluchow to the industry. The meeting was sponsored by Lord Corporation, and spokesperson Wayne Morrision showed a brief video of Lord’s Fusor adhesive products bonding metal, rubber and plastic. Their motor mounts are a product familiar to most shops. As new vehicles increase the use of plastics and special metals, the Fusor products will be the key to new kinds of welds. The main body of the meeting was a major departure from the usual front-of-the-group presenter. Instead the room was broken up into five groups, each working with a description and photo of a damaged vehicle to generate an estimate, first of refinish, then body repair and finally structural work. Chuck Bistagne presented the anti-trust information at the beginning of the meeting and then monitored each group to be sure the estimates only focused on paint, labor
and parts with no mention of prices. The collaborative estimate sheets will be copied and made available at the next CAA meeting. After the group estimate creations, a panel took its place at the front to answer questions. The panel consisted of Daniel Panduro, Thomas Maimone, Dan Moran, Hillel Shamam, and Brian Frame. The panel was moderated by Anthony Lewis from D’Angelo’s. There were items on the estimates that many felt an insurance company wouldn’t pay for. Dannny Panduro noted that this topic will actually be part of the presentation at the next meeting when Mike Anderson discusses negotiating tactics. In fact this topic dominated most of the questions for the panel. Danny emphasized “educate, don’t alienate.” Several others agreed that many adjusters are poorly educated on the guides and what the law demands. They noted that simply showing an
adjuster why an operation should be paid could eliminate a conflict. One shop owner emphasized the fact that the manufacturer specifications require whatever will provide for the safety of the vehicle owner and passengers. Databases like All-Data provide exactly what the manufacturer requires. This shop owner felt that this is the end of the argument. Another shop owner stressed the importance of the short parts code tables. He said his list now contains at least 300 items. Will any company pay for all of those operations? He said he expected to be paid if his people had to perform the action. There was considerable interest in the upcoming meeting where these issues will be addressed in greater depth. Danny was pleased that there was a great turnout for this meeting, and the attendance at the next may be even better.
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Louisiana Attorney General Attends LaCIA Meeting on May 22 The Louisiana Collision Industry Association (LaCIA) held a meeting on Thursday, May 22 at the Hilton Garden Inn, located at 400 Mane St, Monroe LA 71291. The group gathered at 6PM for a light dinner, and the meeting began at 6:30. The main goal of the meeting was “to share with everyone the direction the association is taking and what plans we have in store,” Executive Director Alysia Hanks explained. Guest speakers included Attorney General Buddy Caldwell and his assistant, Randy Ishee, who will update attendees on their efforts. “We have received the full attention of our Attorney General’s office, and they have been in touch numerous times with myself and several of our members regarding certain matters,” Hanks says. “I feel we are very lucky to have the backing of these gentlemen, especially Mr. Ishee who has spent many years working for Ford and has knowledge of what our industry is going through. He isn’t happy with what he has come across so far, and last week, he informed me that, due to the huge amount of in-
formation he is gathering, they have brought in another investigator for our cases... I think [our members] will agree that he is very capable and more than willing to handle this.” The meeting began with reintroducing LaCIA’s board and mission, followed by discussions on what they’ve accomplished so far and what’s on their agenda going forward. Hanks was also trying to get a trainer from Audatex to present during the meeting before ending with time for the Attorney General to talk and answer questions. In closing, LaCIA asked some individuals update everyone on lawsuits and other things in that regard, but Hanks stresses, “the association is trying to keep away from promoting the lawsuits in anyway. We have felt a lot of pressure to make this association a lot of different things for
a lot of different people. It’s my and the Board’s decision to stay away from taking an official stance on the lawsuits, but we understand they have shops who may want to join or obtain updates, so we are trying to bring a lot of information to our meetings to make a large group of individuals happy. We want to show them what our association can provide them with and that we stand behind our mission to be an association of education above all else. It is our goal to provide useful informative meetings based on more than the lawsuits going on around the country; if we only focused on that, I don’t think our association would survive very long.” LaCIA’s next meeting is tentatively scheduled for June or July in the Lafayette area. www.la-cia.com
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Scott Biggs of Assured Performance Speaks at Two N. Calif. CAA Meetings by Ed Attanasio
With many of the featured speakers at these professional association meetings, body shop owners will normally start clock watching when it gets to be around 9:00 pm. Most of these types of meetings are held during the week, and many of the atten-
From left, SC-CAA Board Member and former Chapter President David Mello, current SC-CAA President Shawn Saidi and Keynote Speaker Scott Biggs of Assured Performance Network at the SC-CAA’s March meeting in San Jose, CA
dees are usually already tired when they arrive. But, whenever an engaging and entertaining speaker takes the floor at any collision industry event,
body shop owners take notice and pay attention, because they realize that the information being shared can help their businesses and raise their bottom line. Such was the case when Scott Biggs from Assured Performance Network was the keynote speaker at two different CAA meetings held consecutively on March 19 and 20 for the Santa Clara and East Bay chapters of the California Autobody Association (CAA), respectively. Autobody News covered the first of these presentations, held in San Jose, CA, which was attended by approximately 75 people. Scott Biggs is well-known for his high-energy, rapid-fire presentations in which he covers a lot of territory while entertaining and motivating the crowd. Body shop professionals have to pay close attention when Biggs speaks, because if you blink you might miss something important, according to SC-CAA Board Member and former President Randy Greenblat. “Scott is an exceptional speaker and he really knows the collision industry inside and out,” Greenblat said.
“I’ve heard him speak many times and he always offers new information and new ideas. We’re always very pleased whenever we’re able to get an outstanding speaker like Scott Biggs
Parts Advisor Dale Leidner, Parts Manager Bob Deleersnyder and Service Manager Shawn Poirier attended SC-CAA’s March meeting en masse, representing Stevens Creek Hyundai in San Jose, CA
here, because we notice that more people come to the meeting, which is great.” The main message gleaned from Biggs’s talk is this: OEM certifications are more important than ever and a game changer for all parties involved—the body shops, the carmakers, the insurance companies and the consumers. As we enter this new era, Biggs explained, consumers will con-
sider working with body shops based on their OE certifications more than ever, while looking for a repairer who can return their vehicle back to its manufacturer’s specifications and assure the safety, fit, durability and value of their vehicle. Car owners are more knowledgeable about their vehicles now and can no longer be steered to low-cost providers that install imitation parts that devalue their cars, Biggs said. And that’s why Biggs has established working agreements with five of the 12 carmakers currently offering certification programs. With this program, body shops can help shops to attain certifications from Chrysler, GM, Ford, Infiniti and now Nissan. The shops will still have to fulfill all of the requirements for each certification, but by signing up with Assured Performance Network, they can streamline the process with this one-stop, centralized OE certification program, Biggs explained. Biggs has been developing his OE certification program for several years by refining it and making it accessible to any shop that wants to pur-
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sue certifications, he said. “We’ve spent years developing an online process that makes it very efficient for a shop to apply, fill out the questionnaire, upload proof of how they comply with all these requirements, and apply for a physical on-site inspection. This program is ideal for shops who want to align themselves with the OEMs and get referrals based on the fact that they’re qualified and trained to work on these cars. It’s not a simple
Continued from Page 4
MCRS Ushers in Spring
“Trapp did a phenomenal job. He’s a great trainer who really encourages participation.” Halcro believes the meeting went over really well. This year, MCRS tried a new approach, inviting local non-member shops to the meeting, and their efforts were rewarded with the presence of six non-member shops both days, helping MCRS reach their goal to expand their reach outside their current member base and to recruit new members so that the association can grow. Considering the weather, Halcro was “really encouraged and quite pleasantly surprised” by the number of attendees. During the 2014 Spring Meeting, MCRS also held elections, appointing a new President, Vice President and two new Directors, in addition to adding two more Director positions. Mike Mitchell of Mitchell’s Crash Repair in Great Falls was elected President, with Brad Meuli of A&D Collision in Bozeman being named Vice President. New directors appointed are as follows: Matthew Mc-
From left, SC-CAA Board Members Nathan Chukes, Bob McPherson and Alex Ornelas re-connecting at the March meeting
task, because you still need to get all the proper tools, training and equipment to get the certifications and do the work, but we’re making it easier and more attainable through this program.”
Donnell of Big Sky Collision in Billings, Paul Flores of Rick’s Auto Body in Missoula, Jeremy Myers of
Sponsors included Axalta Coating Systems, Denny Menholt Chevrolet, NCS, Auto Nation, Montana Radiator,
(l to r) Paul Flores, Todd Litton, Pam Carey, Jeremy Myers, Bruce Halcro, Matthew McDonnell, Brad Meuli, Gene Dzidza, Mike Mitchell, Max Yates
Flawless Auto Body in Great Falls, and Todd Litton of American Auto Body in Billings. Members of MCRS expressed gratitude to outgoing President Bruce Halcro and Director Gene Dzidza. Halcro was awarded with a plaque in recognition of his outstanding service and dedication to MT’s collision industry. MCRS is also grateful to their sponsors for helping to make their 2014 Spring Meeting such a success.
Parts Channel, Archie Cochran Ford, Car Quest and Mountain PBE. Next, MCRS will be scheduling a board meeting to discuss their Spring member meeting and in order to begin preparing for their August member meeting. MCRS PO Box 1168 Sidney, MT 59270 www.mtcollisionrepair.com
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First Mass-Produced Fuel Cell Vehicles Arrive on US Soil, Free Fuel-Cell ‘Refills’ from Hyundai, Range Compares to Gas Vehicles At Port Hueneme, near Los Angeles, Hyundai’s Tucson Fuel Cell CUVs began rolling onto U.S. soil May 20, marking the first delivery of a massproduced fuel cell vehicle for the U.S. market. The first retail sale of the Tucson Fuel Cell is expected within the next several weeks in Southern California. Under the Hyundai leasing program, approved lessees can drive Hyundai’s next-generation Tucson Fuel Cell for just $499 per month, including unlimited free hydrogen refueling and “At Your Service” valet maintenance at no extra cost. For the first time, retail consumers can now put a mass-produced, federally-certified hydrogen fuel cell vehicle in their driveways, with availability at three select southern California Hyundai dealers: Tustin Hyundai, Win Hyundai in Carson, and Hardin Hyundai in Anaheim. “Hydrogen-powered fuel cell vehicles represent the next generation of zero-emission electric vehicle technology, and we’re proud of our leadership role in this important segment of the alternative fuel vehicle market,”
said Mike O’Brien, vice president, corporate and product planning, Hyundai Motor America.
Hyundai’s Tucson Fuel Cell CUVs began rolling onto U.S. soil, marking the first delivery of a mass-produced fuel cell vehicle for the U.S. market. (image credit: Hyundai Motor America)
“The range and refueling time of our Tucson Fuel Cell compare favorably with gasoline vehicles, making them a seamless transition from traditional gasoline-powered vehicles. We’re excited to provide customers in Southern California a way to transition to a zero-emission vehicle with minimal compromises. The Hyundai Tucson Fuel Cell will initially be offered to customers in the Los Angeles/Orange County region
30 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
for a 36-month term at $499 per month, with $2,999 down. This includes the addition of a remarkable new addition to the Hyundai Assurance program – unlimited free hydrogen refueling. Consumers have shown strong interest in the Tucson Fuel Cell leasing opportunity, with over 200,000 unique visitors to the Tucson Fuel Cell microsite at hyundaiusa.com/tucsonfuelcell. Tucson Fuel Cell owners will enjoy all the same services of the Hyundai Equus “At Your Service” valet program. As Equus owners have enjoyed since its introduction in 2010, should a Tucson Fuel Cell require any service, a Hyundai dealer will pick up the vehicle and provide a loan vehicle, then return the car after service to their home or business, at no charge.
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Farmers Insurance’s Class Action on Climate Change
Farmers filed nine class actions in April against nearly 200 communities in the Chicago area. It is arguing that local governments should have known rising global temperatures would lead to heavier rains and did not do enough to fortify their sewers and stormwater drains. The legal debate may center on whether an uptick in natural disasters is foreseeable or an “act of God.” The cases raise the question of how city governments should manage their budgets before costly emergencies occur. “We will see more and more cases,” said Michael Gerrard, director of the Center for Climate Change Law at Columbia Law School in New York. “No one is expected to plan for the 500-year storm, but if horrible events are happening with increasing frequency, that may shift the duties.” Gerrard and other environmental law experts say the suits are the first of their kind. Lawyers for the localities will argue government immunity protects them from prosecution, said Daniel Jasica of the State's Attorney's Office in Lake County, which is named in the Illinois state court suit. “If these types of suits are successful - where is the money going to come from to pay the lawsuits? The taxpayers,” he said.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 31
32 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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VIN and Safety Labels from AutomotiveID Bring Vehicles Another Step Closer to Pre-Loss Condition unique vehicle, but while it’s easy to match these labels to a specific vehicle Whether you’ve struggled with the on the production line, manufacturers need to replace automotive VIN and are not equipped to replace a single safety labels or if you’ve never given custom label after the car leaves their them a second thought, the fact re- plant. That’s where AutomotiveID mains that federal law mandates these comes in! Automotive ID launched in 2007 labels be permanently affixed to every to fill this need within the collision repair industry. One-of-a-kind VIN and safety labels were not being replaced and, at best, were being cut out and stuffed in the glove box. The company’s sole business is the production of these unique Installing a replacement Tire & Load label will ensure your VIN and Safety certification customers know how to maintain their vehicles and conlabels, and AutomotiveID tribute to their overall safety supplies collision repair favehicle, yet they’re the part least cilities in every state in the U.S. as likely to be fixed during a repair! well as throughout Canada. Manufacturers rely on both the safety As a provider of aftermarket aucertification label and the tire-and- tomotive labels to the collision repair load label to convey important safety industry, AutomotiveID produces information to drivers. These labels high-quality labels for all makes and are customized with the VIN and models of cars and light trucks, almonth/year of manufacture for each lowing their replacement to go from by Chasidy Rae Sisk
34 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
nearly impossible to one of the easiest tom VIN and Safety certification laparts to replace. Beyond the simple bels. Besides the safety factors menneed to restore a vehicle to its pre-loss tioned, AutomotiveID’s labels also condition, replacing these labels is im- help consumers maintain the value of perative because they instruct drivers their vehicles as appraisers typically on how to handle and maintain their vehicles, including tire inflation recommendations and load limits, both of which are extremely important since ignoring these ratings can lead to dangerous wrecks; this is why the National Highway Transportation Safety Administration (NHTSA) insists the information contained on these labels AutomotiveID’s replacement BMW certification label contains the same information as the manufacturer's original is critical to public safety. For collision repair facilities, the discount trade-ins with missing labels since the absence of these labels limit benefits of restoring a vehicle to its their knowledge of the vehicle. pre-loss condition by using AutomoAutomotiveID’s replacement lativeID’s labels is obvious, but because insurance companies also recognize bels fulfill many needs to the benefit of the benefit of maintaining the safety all vested parties. In addition to providof their customer’s vehicle and the ing federal regulation compliance of repaired vehicles, these labels preserve value of their own insurable interest, the value of the vehicles, provide necshops can finally get paid for doing essary tracking information, and supply the right thing and replacing these cus-
the repair facility with incremental revenue and compensation on work for which they haven’t traditionally received payment. Each party in the collision repair industry has different, yet valid, reasons for recognizing the importance of replacing vehicle labels, but the predominant concern relates to public safety, and AutomotiveID’s services undeniably contribute to this factor. AutomotiveID offers a complete line of automotive labels, including certification, service parts, tire and loading, emission control, paint and trim, anti-theft and all other aftermarket labels that are typically difficult to find. All of their replacement labels meet the standards set forth by the NHTSA, and AutomotiveID enters all information by hand to ensure accuracy as part of their thorough process of quality control and independent verification procedures. So how do you order replacement labels from AutomotiveID? Easily because it’s all done online! Simply visit their secure website, complete the order form, and upload a photograph of the original label. AutomotiveID will enter the necessary information and print a new label which you can receive as early as the
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Letter to the Editor: Certified Aftermarket Parts Tracking is Superior
As I read your story entitled “East Coast Resolution Forum and Leadership Meeting at Northeast 2014” written by Chasidy Rae Sisk and published in the April 2014 Mid-month newsletter, the following caught my eye: ‘Another conversation ensued about the fact that recalls on aftermarket parts aren’t as closely monitored as OEM recalls, creating a safety issue when shops are unable to locate vehicles that have been fitted with recalled aftermarket parts. Ferraiolo circled back to the importance of educating consumers so they can fight their own battles, mentioning the current ABAC campaign to educate consumers.’ While I am sure Ms. Sisk captured the conversation correctly, I would like to comment on the issue raised during the conversation, an issue which is of particular interest in view of the recent GM ignition switch problem. I wanted to call your attention to an article which came to my attention recently. I’m sending it as an FYI, background, if you wish, since the issue of an aftermarket part recall has come up in Autobody News’s coverage
of the East Coast Resolution Forum. The March 26, 2014 Reuters by Ben Klaymen, Marilyn Thompson and Julia Edwards article (link below) clearly outlines the impossibility of, in this case, GM to track a part. The OEMs have no mechanism to identify the channel of distribution of their parts sold into the aftermarket. In fact, it appears as if they are not even sure which new vehicles were built with the faulty part. http://www.reuters.com/article/2014/03/26/us-gm-recall-aftermarket-idUSBREA2P21620140326 While the article refers to the current recall involving a GM mechanical part and not a cosmetic external body part, the fact is that, unlike GM or other OEMs, the collision repair aftermarket has a mechanism for addressing recalls. Every certified aftermarket part, whether certified by CAPA or NSF, is clearly designated so that it can be tracked by the manufacturer to the distributor. NSF certified distributors can track the parts to the exact collision repair shop. I believe that some distributors can also track to the vehicle, if the See Letter to the Editor, Page 46
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 35
Western Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Sunrise Automotive Training Expo and Convention in AZ On April 25-27, the Automotive Service Association of Arizona (ASA-AZ) held their annual Sunrise Automotive Training Expo and Convention at the Doubletree Hilton in Phoenix, AZ. Though this year’s event was moved from Prescott, AZ in July to Phoenix in April, Luz Rubio, Executive Director of ASAAZ, believes that Sunrise 2014 “was a success. Automotive professionals and industry vendors all joined the weekend festivities to learn, network and exchange ideas… [attendees’] responses to the event were well-received with the incorporated changes, and we were able to add additional classes for technicians to attend a half-day or full day.” Sunrise 2014 featured a full agenda of great topics relevant to the industry and today’s economy, as well as an opportunity for attendees to network with independent shop owners from all over the state in order to exchange ideas and discover solutions to the daily challenges faced in their businesses. On Friday morning at 7:30AM, the conference began with a collision seminar on “Lean Transformation: Making the Move to Lean,” presented by Dave Dewalt, manager of Business Consulting Services for Sherwin Williams. After that, Rick Palmer, President and CEO of ComputerLogic Inc. discussed “Paint and Materials – The Paradigm Shift” which included topics such as revenue vs. cost, gross profit margins and getting insurers to properly pay for paint and materials. Running from 8-11:30AM, GM/ACDelco automotive instructor Jess Garcia held a seminar on “Tech 2 Familiarization Global Diagnostic Systems (GDS) 2/MDI” in Spanish. At 1PM, ASA-AZ’s golf tournament began at the Raven Golf Course, but that social event didn’t inhibit the educational seminars taking place at the conference. On Friday afternoon, three segments were held: “Management: Results Based Leadership – the Art of Overcoming” was presented by David Schedin, founder of CompuTrek, and CompuTrek’s Vice President, Jude Larson. Another management seminar entitled “Automotive Service Providers Can become Invincible to Lawsuits
and Save Thousands in Taxes” was led by Larry Oxenham, one of the country’s leading asset protection experts, and sponsored by the American Society for Asset Protection. Jess Garcia also held another seminar in Spanish to discuss “GM: SIDS – Spark Ignition Direct Injection.” That evening, attendees had a chance to network and visit tradeshow exhibitors at ASA-AZ’s Welcome Reception and Sponsor Showcase. Following Breakfast and Welcome Announcements on Saturday morning, four concurrent sessions were held on the following topics: “Management: Creating a Culture Where New Hires Succeed,” “Character Quadrants – Understanding Customers and Employees,” “Technical: Tech 2 Familiarization Global Diagnostic Systems,” and “Ford: Body and Chassis Electrical/Electronics Systems.” The last mentioned seminar was presented by Mike Sanom, a Ford trainer with over 40 years of experience in the automotive field. From 11AM until 2:30PM, the Sponsor Showcase and lunch included a presentation on “Seven Factors for Building Extreme Customer Loyalty.” The afternoon’s concurrent sessions included “Management: Perfecting Profitability” by Bill Haas of Haas Performance Consulting, Dave Schedin’s “Management: Preventing and Breaking Through Burnout,” Jess Garcia’s “Spark Ignition Direct Injection” seminar in English, and Mike Sanom’s “Ford: IDS Operations and Utilization.” Saturday evening’s event included another Sponsor Showcase, buffet dinner, silent auction and prize drawings. The final day of Sunrise 2014 began with breakfast and Bill Haas’s presentation on “Rewarding Bad Behavior.” Running simultaneously, the last seminars of this year’s conference were “Management: The Game Changer – How to Take It to the Next Level” by Dave Schedin and Jude Larson, and “Ford: 6.7L Powerstroke Diesel JJ. Components and Operation,” a technical presentation given by Mike Sanom. Rubio was very pleased with Sunrise 2014 as the purpose of the
36 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
event “is to offer an opportunity for automotive professionals statewide to exchange ideas with others and learn from one another. The offering of training and fun activities is just an added bonus… we were very impressed with the response from our attendees from both the mechanical and collision membership. Our vendors supported the event financially and through the tradeshow.” ASA-AZ’s 2014 Sunrise Expo and Convention attracted a variety of sponsors, including Crexendo, Kahuna Payment Solutions, Federated Insurance, AutoZone, Parts Authority, NAPA, ETE Reman, Jasper Engines and Transmission, US Distributing, ALLDATA, Factory Motor Parts, Hawkes Discount Radiator, KuKui, LKQ All Models, O’Reilly Auto Parts, Omnique Shop Management Software and RO Writer. Additional exhibitors were EMC Owners Ally, G&K Services, Mitchell 1, Hertz and Demandforce.
In discussing how associationsponsored events are important to ASA-AZ members and the industry as a whole, Rubio notes that the value “continues to be the benefit of associating with other business owners who are like-minded and want to succeed.” Sunrise 2014 was so successful that ASA-AZ’s Board of Directors has decided to hold next year’s event in April 2015, and though the location has not yet been determined, the association plans to announce it soon. ASA-AZ PO Box 81517 Phoenix, AZ 602-544-2600 www.asaaz.org
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Florida Bans Counterfeit or Non-functional Airbags, Changes Total Loss Threshold to 90% On April 28 the Florida House and Senate voted to pass Senate Bill 754 (SB 754) making it a second-degree felony “... for any person to knowingly import, manufacture, purchase, sell, offer for sale, or install, or reinstall on a vehicle a fake airbag or junk-filled airbag compartment.” The bill defines a fake airbag to include both counterfeit and nonfunctioning airbags and specifically includes airbag covers. SB 754 also revises the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to obtain a certificate of destruction under certain circumstances; providing a criminal penalty, etc.
The process for applying for a salvage certificate of title (salvage title) or a certificate of destruction (COD) on a total loss motor vehicle. The bill also requires the Florida Department of Highway Safety and Motor Vehicles (DHSMV) to visually inspect rebuilt vehicles and issue an affidavit-of-compliance if repairs are needed before issuing a certificate of title. The DHSMV would charge $40 for each rebuilt vehicle inspection. In Florida, a rebuildable vehicle carries a Salvage Title, and an unrebuildable vehicle is issued a certificate of destruction. Under existing law, if the cost of repairing a vehicle exceeded 80 percent of the vehicle’s value, the owner was required to obtain a COD. The bill raises the 80 percent repair-to-value COD threshold to 90 percent, and limits its application to late model vehicles, seven years old or new, with a value of at least $7,500 just prior to sustaining the damage resulting in total loss. Vehicles worth less than 1,500 retail are specifically excluded. The new language added to section 319.30 of the Florida Statute
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reads: If a motor vehicle or mobile home is damaged, wrecked, or burned to the extent that the only residual value of the motor vehicle or mobile home is as a source of parts or scrap metal, or if the motor vehicle or mobile home comes into this state under a title or other ownership document that indicates that the motor vehicle or mobile home is not repairable, is junked, or is for parts or dismantling only, the owner or insurance company that pays money as compensation for total loss of a motor vehicle or mobile home shall obtain a certificate of destruction... SB the required statement that is stamped on a certificate of title upon issuance of the certificate; requiring the Department of Highway Safety and Motor Vehicles to provide a report regarding certificates of title for rebuilt motor vehicles; revising requirements for the department to declare certain mobile homes and motor vehicles unrebuildable and to issue a certificate of destruction; requiring an owner of, or an insurance company for, a motor vehicle that is worth less than a specified amount or is above a certain age to ob-
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tain a certificate of destruction under certain circumstances; providing a criminal penalty, etc. Given the increase in the threshold more salvage motor vehicle titles are expected to be issued than under current law, allowing for more of those vehicles to be rebuilt and permitted back on the roads. Auto insurers would benefit from possible higher prices for salvage vehicles versus those receiving CODS. Conversely, the bill will result in fewer CODs being issued, reducing the number of vehicles available to dismantlers and recyclers. The bill also directs the department, on or before December 31, 2015, to assess and provide a summary report to the Governor, Senate President, and Speaker of the House of their findings regarding certificates of title and affidavits-of-compliance process. The legislation now goes to Governor to sign or veto the bill. As the legislature adjourns today, the Governor must sign or veto legislation within 15 days of transmittal, or it becomes law without signature. The bill would take effect July 1, 2014.
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Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
What’s In A Name? Possibly The Success Of Your Shop! with Thomas Franklin
Recently the president of the local Autobody Association Chapter renamed his shop. It had been J & L Body Shop for many years, but he chose to rename it Fix Auto, Sun Valley. Obviously he chose this name to reflect a relatively new relationship with the Fix Auto organization. But there may have been a deeper reason for the renaming. When all a prospective customer has to judge a shop is the name, a name like J & L really says nothing about the nature or quality of the shop. And this shop name is typical of many shop names that just reflect the owner’s name or names. But even those shops that intend to convey some degree of quality in their name—like Elite Auto Body, Precision Auto Body, Superior Auto Body, Supreme Auto Body, Ace Auto Body, etc.—are so commonplace they are no longer noticed. The effect can be the exact opposite of what was intended. Ideally you need to create a name with a trademark image that no one can ever
mistake as someone else’s! And that image has to convey quality and uniqueness at a single glance -- not an easy task. First of all, recognize your own uniqueness. Every human is different. We have unique fingerprints and voiceprints. Your shop also has at least one unique characteristic. There is at least one thing that your shop does a little different (and hopefully a little better) than most shops around you. Find a way to emphasize that. You don’t necessarily need to change the name of your business, but you do need a subtitle, a slogan that strongly announces some specialty that is uniquely yours. Some shops specialize in a particular make of vehicle. Identifying their specialty is easy. They can announce: “We are masters of Jaguar repair” or “Porshe repair” or “Volvo repair.” Others may focus on being “Paint Matching Specialists” or “Excelling in Perfect Restoration.” Shops that are already
successful may not need much more, but those with no recognizable image need to be doubly creative. While actually changing the name of your body shop may be a more radical move than is necessary, it could also be a very powerful marketing action if a name with exceptional drawing power is selected. A few body shops in the Los Angeles area have names that suggest certain characteristics. One shop, for example, is named “Car-tique,” an obvious adaptation of “boutique” which suggests a small but elite type of shop. Another body shop was named “Picasso,” obviously a reference to the famous painter and an implication that this shop specializes in fine paint work. One shop in the Marina area was called the “Insurance Collision Center,” a direct reference to their primary source of work. “Country Club Auto Body” in Mission Hills would seem to be catering to affluent customers (or “wanna
be” affluent customers). A shop that emphasizes service might want to choose a name like “Red Carpet Auto Body,” that says to a prospect, “Come to our shop and we’ll roll out the red carpet for you.” A name of this kind also provides some immediate ideas for decor. In his “The Guerrilla Marketing Handbook,” Jay Levinson has a number of good suggestions on name selection that might apply to body shops. For openers he discourages seeking advice from friends, family and other casual bystanders. He notes that names selected by committees are “usually losers.” He suggests instead making a list of the qualities your business emphasizes, with an eye to incorporating a key quality in the name of your shop. Some examples might include “Speedy,” “Reliable,” “Fearless,” “Flawless,” “Professional,” or “Jiffy.” Jay also cautions against the word “InSee What’s in a Name?, Page 47
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Young Utah Collision Repairer Speaks Out via Blog gize for our work and we keep our standards high. I’ve learned a lot since I Sam Plumb, 27, is an auto insurance started in this industry and the biggest consultant, a claims manager, a blogger, eye-opener for me has been from the inand the GM at Alpine Auto Renovation surance side. By learning how it works, in Salt Lake City, UT. He is a secondit has empowered me and I’ve passed generation body shop guy who has this knowledge onto our customers, brought his youthful zeal, extensive edwhich has also empowered them.” ucation, direct style and personal apHis relationships with insurance proach to the industry and has impressed companies: “We’re completely indehis fellow collision repairers throughout pendent of all the insurance companies, except for one (Chubb Insurance) because they specifically insure the high-end types of vehicles we repair—BMWs, Audis and Porsches, Mercedes-Benz. It’s the way we choose to operate and it works for us, because I don’t think it affects our volume at all.” The explosion of technology in the collision industry: “I built a website for this business, because my father (age 67) and his partner are still in Sam Plumb, 27, with his father to his right is an auto the electronic stone age and insurance consultant, a claims manager and the GM don’t know that the Internet at Alpine Auto Renovation in Salt Lake City, UT exists beyond eBay. ObviUtah and nationwide, via his popular ously, the technology in this industry blog: wreckrepairreport.blogspot.com. has changed everything and for the We sat down with Plumb recently to ask better in many ways. By being somehim about his thoughts concerning the one who isn’t afraid about the technolstate of collision in Utah, his feelings ogy that seems to change weekly, I feel about insurance companies and DRPs, we’re at an advantage over those postaftermarket vs. OE parts, the advent of 50-year-old guys like my dad who aluminum, the new exciting technology would still refer to manuals if they in this industry and other topics. could.” His start in the industry: “I obviThe advent of aluminum: “Aluously grew up around the collision inminum is one of those things that has dustry, but that doesn’t really qualify me an upside and also a downside. For to be an expert. There are kids out there one, it’s a much lighter metal that whose fathers are doctors, yet they helps emissions and it also seems to know nothing about medicine, right? I have a faster production time, which started working at a body shop when I is important. On the other side of it, was 16 basically answering phones and we’re seeing more and more cars in washing cars. When I graduated from our shop that were incorrectly rethe University of Utah with an underpaired by other shops and we’re regraduate degree, I went on to get a joint doing that work. And poor work is Masters in Public Health and Public Admuch more difficult to fix than actuministration, degrees I will probably ally doing the original repair. So, in never use. But that’s life; sometimes you that way, aluminum can be problemtake the wrong direction and that was atic from our perspective. Aluminum one, but I don’t regret it. So, I started in itself does not have a memory, unworking at Alpine Automotive Renovalike steel. So, when an aluminum tion five years ago. My experience has component is damaged, it will need to been excellent, because we don’t apoloreplaced in many cases. So, aluminum by Ed Attanasio
brings its own challenges and there is obviously a certain level of expertise to work with it. With these newer high-end cars and the advent of aluminum, hopefully there will be fewer shops out there doing inferior aluminum work. It requires talent and training to work on these cars, but the most important thing about any shop is the pride in their work.” The importance of certifications: “Certification is being pushed now by the car manufacturers for obvious reasons. The carmakers want to know that their cars are being repaired by shops that are using the right equipment and products and have the right training to do the job correctly. They want the technicians to have the latest education, so that the work will be excellent and then they don’t have to worry about it later down the road.” Steering still alive and prevalent: “It’s not as invasive as it used to be, but some of the insurance companies definitely still rely on it. Of course, they can’t force anybody to do anything, but they make it easier for people to take their cars to one of their preferred shops. If your average per-
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son gets into an accident every 10 years, they’re not really prepared for what happens next and some are frightened by the process. So, they just listen to their insurance company and do what they’re told. The number one tool some insurers use is by implying that one of their non-preferred body shops won’t warranty the repair. When I encounter this, I always ask them this question—what kind of reputable business would I be if I didn’t warranty my work? This usually soothes their nerves and hopefully eliminates their fears.” OE vs. aftermarket parts: “It seems like the insurance companies that do a ton of advertising about having the lowest rates in the country end up being the ones that want to cut corners on repairs. They’re the ones pushing for us to use more aftermarket and recycled parts and we won’t use them. Maybe they’re spending all their money on these huge advertising campaigns and that’s why they have to try and save money on parts. With re-conditioned parts, we send back 95% of them because they’re inferior and that’s we won’t put them on a vehicle.”
Update on Indiana Shops’ Accusations of Insurers’ Collusion Collision repairers from six states are pursuing legal action against insurers for alleged antitrust violations, collusion by making deals with preferred body shops to reduce labor costs, and interfering with body shops’ business by dictating how they do repairs. There are also allegations that shops are being forced to use substandard repair parts. The body shops are seeking damages from the suits that could amount to damages in the billions. See Autobody News May edition for more details. In the federal lawsuit, 14 Indiana shops and others have accused State Farm Insurance and competitors of extracting “unreasonable and onerous” concessions on vehicle repair costs. When a shop doesn’t comply with price ceilings, the insurers dissuade policyholders from choosing that shop for repairs by telling them it has quality issues or gets lots of complaints, the shops allege in the suit filed April 2. The 34-page suit alleges insurers have violated the federal Sherman Act, both in price-fixing and through boycotting tactics. Insurance company dictates are
“placing the driving public at harm,” says the lawsuit. (Other defendants include Allstate, American Family, Auto-Owners, Erie Insurance, Indiana Farmers Mutual, Liberty Mutual, Nationwide, Shelter General and Zurich American.) Pat Johnson, a Martinsville, IN, shop owner of Brothers Body & Paint next to IN 39, was cut from State Farm’s Select Service Program last November, unable to live with the its requirement that he buy vehicle parts through the online PartsTrader site instead of using his own longtime suppliers. Now Johnson says he is feeling the pain of losing business from State Farm. Revenue at Brothers Body & Paint has fallen by $100,000 so far this year from his former $2 million annual gross on repairing about 60 vehicles a month. Johnson has said he may need to cut his 12-person staff, but he’s adamant about not letting State Farm dictate his parts-buying. “They’re a force to be reckoned with. You don’t want to argue with them. But sometimes you have to stand your ground,” he said. “They trusted me for 20 years,
and now I’m nothing,” Johnson said of State Farm. Johnson has repaired cars in Martinsville since 1982, said insurers are continually expanding their lists of work they won’t fully pay for. That included no longer paying full cost for installing corrosion protection inside a bumper and doing fine sanding on body panel paint jobs, he said. “They don’t tell you not to (perform certain routine repair tasks),” Johnson said. “They just don’t pay for it. If they went to Wal-Mart, they’d pick up 10 things and they’d pay for six. That’s the way they operate,” said Johnson, who has joined the Indiana lawsuit against the insurance companies. When insurers don’t cover the full cost of repairs, “it’s such a difficult thing to pass on to a customer,” said Kevin Wells, who operates Quality Collision Inc. in Bloomington and is a plaintiff in the suit. Wells said he often just eats the cost the insurance company won’t pay. “I’m taking it in the shorts by about $6 an hour for every job I do,” Wells said. Johnson said he’d be happy if in-
surance companies dropped their approved-shop lists and repair mandates and paid for claims without dictating through reimbursements how body shops like his should do their job. “I don’t tell them how to sell insurance,” he said. “All I want to do is fix cars.”
Surveys Also Point of Contention Body shops say State Farm conducts surveys of the going labor rate shops charge in a given area. The data and methodology are not disclosed, shops complain. “Shops are simply required to blindly accept State Farm’s pronouncements regarding these matters.” The insurer attempts to prohibit shops from discussing the labor rates they provide as part of the surveys, “asserting any discussion may constitute illegal price fixing.” Shops that complain the labor rate is inadequate are often told they are the only body shop in the area to say so and that they don’t conform to the “market rate.” In fact, “State Farm knew multiple shops had attempted to raise their
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labor rates and advised State Farm of such,” the suit alleges. The shops allege insurers have failed to abide by industry standards for auto repairs and repair-estimating databases. At the same time, many insurers pressure shops to reduce costs by using recycled parts. But used parts like doors can require hours of additional labor to be made to fit properly and to be reconditioned. Ultimately, shops are required to either make “less than quality” repairs or suffer a financial loss. Taking shortcuts raises the specter of safety issues, but once a vehicle is repaired, it’s not easy to spot problems such as improper welds that might be hidden by seam sealer. “The guys can’t make it. It’s not that they are bad businesspeople,” said Scott Blake, of Blake’s Carstar Collision Center in LaPorte and president of the IABA.
Insurers Respond The insurance companies have responded in kind in the media, defending their DRP programs as a key way to keep premiums on auto policies under control. “These lawsuits are another at-
tempt to undermine programs insurers have put together” to hold down vehicle repair costs, said Bob Passmore, a spokesman for the Property Casualty Insurers Association of America, which represents insurance companies. “The programs have been around 20-plus years, and they are timetested. People like them. They achieve desired results” to get vehicles repaired quickly by repair shops vetted by the insurer and at reasonable cost, he said. “This suit has no merit and in no way accurately describes the business relationship State Farm has with thousands of body shops across the country,” said Missy Dundov, a spokeswoman for State Farm. Dundov said State Farm built its Select Service network by listing body shops that provide warranties on their work and meet performance standards set by State Farm. But a State Farm customer is “free to choose the repair shop of his or her choice,” even if it’s not on the Select Service list, she said. When it comes to parts, Dundov said, State Farm’s “current business practice” is to pay for non-factory-made parts only in uses that don’t play a role in crash protection—unless a cus-
tomer requests otherwise. If a body shop is told to install a used part, “we rely on the repairer to inspect the part and ensure that it is of sufficient quality to repair the vehicle properly,” she said. Dundov said PartsTrader “creates a consistent approach to parts ordering,” she said, and does so “at a competitive price, as quickly as possible.” Body shops overall have had a “quite positive” reaction to the online ordering system, Dundov said. As for allegations in the lawsuit that State Farm steers customers to body shops in its Select Service network, Dundov said it’s up to customers to decide what body shop to use. A spokesman for Progressive, Jeff Sibel, said, “We are aware of the new litigation against us and believe that we can demonstrate the fairness in our claims practices at the appropriate time.” A GEICO spokeswoman, Christine Tasher, said the company won’t comment on pending litigation.
IABA Responds “There’s going to be a battle,” says Tony Passwater, executive director
of the Indiana Auto Body Association, the lead plaintiff. Passwater says that on average, insurers won’t reimburse for $550 to $750 worth of work on a typical repair job of $3,500, leaving it up to the body shop to pick up the unpaid costs. That $550 to $750 estimate of unreimbursed costs will likely be used by the body shops’ attorneys in figuring their damage claims against the insurers. Passwater said the state once had about 2,000 shops; there are now 800 to 1,000. Passwater has been promoting the lawsuit among auto body shops around the state and expects that the 24 current plaintiffs will swell by 15 to 20 in the next several months. But some shop owners, he said, are reluctant to join because “they’re concerned about any retribution the insurance companies might do.” Plaintiff’s Attorney Eaves said he thinks the numerous lawsuits he and co-counsel are filing could eventually be consolidated in one court. He said he expects to present testimony from “whistle-blowers” who worked for insurance companies and will give evidence of collusion
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among companies in their business tactics. But the litigation could be fierce, Eaves said.”We’re anticipating extensive pushback. They’re making billions of dollars by these practices and they’re not willing to give it up easily.” Even so, Eaves said, several insurance companies have approached him to ask about settling the claims to avoid lengthy litigation and a possible high-stakes jury trial. “We are already in discussion with three insurance companies that are willing to discuss resolving it. I was kind of shocked. I never had a case where somebody came so quickly and wanted out.”
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U.S. Rep. Cheri Bustos, D-East Moline, Visits Body Shop, Talks Minimum Wage U.S. Rep. Cheri Bustos, D-East Moline, clocked in for her shift at Dave’s Autobody in at 2:59 p.m., one minute early, according to reporter Dani Kinnison, writing for the Galesburg Register-Mail As part of her “Cheri on Shift” outreach, Bustos made a stop in Galesburg on April 23 to shadow the shop’s auto workers and do some welding and discuss the issue of livable wages, an issue that’s been a source of discussion locally and nationally.
Auto body production manager Robby Dunn, center, looks on as U.S. Rep. Cheri Bustos, D-East Moline, talks with Dave’s employee Chip Brandenburg in the back of a pickup truck at the auto body shop. Bustos took a hands-on tour of Dave’s as part of her “Cheri on Shift” outreach in the 17th Congressional District. Photo: Steve Davis/The Register-Mail
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“It’s just a matter of dignity, people deserve a living wage,” Dunn said. “Not only do we pay above minimum wage, the least anybody would make here is $10 an hour, and then we pay time-and-a-half for overtime and have terrific benefits.” Bustos said by increasing the federal minimum wage, nearly 4.5 million Americans would move out of poverty. “If you’re working full-time you shouldn’t be living in poverty, and the reality of it right now is if you’re being paid minimum wage and working 40 hours a week, you are living in poverty,” she said. “We just think it should be better than that.”
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With Illinois’ minimum wage of $8.25 an hour, a full-time worker would earn a yearly salary of $16,500. For a family of three, the wage lies below the federal benchmark for poverty. That, Bustos said during her visit, is something that needs to change. The 17th Congressional District representative said she would be in favor of increasing the federal minimum wage to $10.10 an hour, an increase of $2.85. According to the proposal, upon passage the minimum wage would increase over 95 cents annually over the course of three years. “In the district I represent, we p other states — the western border two part of the district borders Iowa, where the minimum wage is less and the northern part borders Wisonsin where the minimum wage is less,” she said. “So we actually think this helps level the playing field to raise it to $10.10, and we think it’s better for businesses.” Shop owner Dave Dunn, who serves on Bustos’ small business advisory council, said paying livable wages creates a better workplace culture.
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Southeast Associations
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
IACA Combats Threats to the Industry with Chasidy Rae Sisk
Nearly two years after reforming under strong new leadership, the Idaho Autobody Craftsmen’s Association (IACA) continues to arm themselves in preparation to combat threats to the collision repair industry. Though the group has made some progress, there are still plenty of problems that need to be addressed and rectified, and IACA strives to tackle these issues through education and by attempting to enlist more collision repair professionals in the struggle. Matt Thornton, President of IACA, knows that the only chance to reform the industry is by presenting an informed, unified front against those who would compromise the integrity of repairs, and he shares the association’s progress, plans and problems in hopes of collaborating with other like-minded associations to seek solutions to these shared dilemmas. Founded in the 1980s, IACA continued to be an active voice in the industry until the late 1990s when the
association fell apart and dissolved due to a lack of participation. Over a decade later, in the summer of 2012, Thornton and two other shop owners from his area discussed how to handle the changing environment of the collision repair industry and threats posed to the industry by third-party entities. Deciding that the best way to address the issues plaguing the industry was to restart IACA, they scheduled an initial meeting, spreading the word through vendors and expected 15 to 20 people to participate; Thornton was pleasantly surprised when over 40 industry professionals attended their first meeting in August 2012. After affiliating themselves with the Society of Collision Repair Specialists (SCRS) that fall, IACA held a second, more formal meeting in November 2012 which attracted nearly 60 attendees and featured presentations by Bruce Halcro, then chairman
of the Montana Collision Repair Specialists (MCRS), and Aaron Schulenburg, Executive Director of SCRS. Halcro discussed the trials his association has experienced and offered assistance to IACA during the first years. Schulenburg encouraged active involvement in associations and shared information on current industry issues as well as SCRS’s activities. A non-profit trade organization, IACA’s multi-faceted mission includes providing a platform for the exchange of ideas and information relevant to the industry, projecting a positive image of the industry to the general public, representing the industry in matters of shared concern on a local, state and national basis, and improving the overall quality of member business through educational opportunities. Their mission is designed to help achieve their goal to “influence positive change for our members and help educate ourselves in matters of
shared concern to present a unified voice,” Thornton says. Since reorganizing, IACA has hosted several educational events with Mike Anderson from CollisionAdvice.com, with help from Axalta Coatings. They’ve also met with their state’s Department of Insurance and several state legislators as they explore legal options for correcting industry issues, and this past winter, they hired a lobbyist to guide them through the legislative process. Specifically, Thornton anticipates their their upcoming legislative activities will address “mandated software usage, parts issues and steering, among other minor issues.” IACA’s more immediate goals are to learn more about the legislative process, to build relationships with other state associations, and to increase their membership base. Currently, IACA has 44 members throughout the state of ID, but like most associations, See IACA, Page 47
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 45
Continued from Cover
Joint Legislative Day
ation, who talked about the current state of legislation affecting small businesses in California. After the morning sessions, State Senator Bob Huff spoke to the ASCCA/CAA members about his views and concerns concerning proposed bills that will impact the repairers’ respective businesses if passed. Before members were to meet with their political representatives, they were briefed by Jack Molodanof, the lobbyist for both organizations, who taught the members about the proper protocol to be used while encountering politicians or their representatives. Molodanof always opens with a joke or amusing anecdote, but then he’s all business. Coaching the members of ASCCA/CAA about how to approach their local representatives is always crucial and that’s why Molodanof always sets down the rules first. “The most important thing to remember obviously is never offer anything to any politician,” Molodanof explained. “In addition, don’t complain, mislead anyone or most importantly— never threaten or antagonize a legislator of their staff. Also, speak clearly and don’t chit-chat. Get through your presentation succinctly and be prepared.” With scheduled appointments throughout the Capitol’s offices all day long, ASCCA/CAA members broke into smaller groups to cover as much territory as possible. As they marched through the hallways, looking for politicians’ offices and scrambling to get to their appointments on time, members were adamant about letting their representatives know their sides of each bill on their agenda. CAA President Mike Passof, the owner of B&J Body Shop & Towing in Rancho Cordova, CA appreciates the role of CAA in shaping tomorrow’s collision industry and sees great value Continued from Page 35
Letter to the Editor
shop has provided the R.O. or claim number, but I don’t know how common that ability is. In any event, the distributor can definitely track the part to the shop, if not to the exact job. Ironically, while shops often erroneously allege that aftermarket parts cannot be recalled, as
in ASCCA/CAA’s Legislative Day. “It’s important, because if we’re not watching the fort, you never know what can happen,” Passof said. “Stay informed and be heard and play a role in the future success of your business. By participating in the political process and working with your local representatives, you can make sure that bills that can negatively impact your shop won’t become laws and vice versa.” “This is the one opportunity every year when we can meet with our political representatives en masse and get our message out there,” CAA Executive David McClune said. “We can influence these bills before they become laws and provide valuable feedback for our key decision makers. Most importantly, we can provide them with a look into how our members run their businesses and all of the factors that can affect them and their livelihoods.” Bills on ASCCA/CAA’s radar this year included AB 1522 (Gonzalez), a bill that deals with employment and specifically paid sick days. Both organizations oppose this bill that would require employers to provide payment of sick leave to all employees. As currently written, an employee who works for seven days or more days in a calendar year is entitled to sick pay rate of one hour for every 30 hours worked and be limited to 24 hours or three days in a calendar year. Today many small business employers voluntarily provide paid sick leave payment even though current law does not require doing so. Requiring such a costly mandate on all employers could result in lower wages, reduction of job hours or job losses and burden on small business. The current economic conditions are already making it difficult for small business to survive and mandating additional costs will only worsen the situation, according to Molodanof. The next bill SB 935 (Leno) deals with minimum wage and an annual adjustment, which is opposed by
is reported to have happened at the Forum, the fact is the breakdown in the certified aftermarket part recall process, is between the shop and the vehicle owner. As you can see, based on the information in the Reuters article, the recall process for certified aftermarket parts is far superior to that of the OEMs —Karen Fierst kfierst@kerenorconsultants.com
46 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
the ASCCA/CAA. This bill would increase the minimum wage on and after January 1, 2015, to not less than $11.00 per hour; on and after January 1, 2016, to not less than $12.00 per hour; on January 1, 2017, to not less than $13.00 per hour; and increases the minimum wage annually thereafter based on the California Consumer Price Index. The legislature already passed legislation in 2013 (AB 10) to increase minimum wage on July 1, 2014 to $9.00 an hour and on January 1, 2016 to $10.00. Another increase will negatively impact economic recovery either by limiting available jobs or creating further job loss. SB 935 increases coupled with various cost increases that will impact small business employers, including increased worker’s compensation rates, increased energy costs, as well as increased costs associated with the Affordable Care Act, will create concern and uncertainty for small businesses. Furthermore, this bill would have additional burdens on automotive repair shops to pay employees double the minimum wage when employees are required to bring their own tools Molodanof claims.
Another bill that seems to reemerge every year without passing is Education: SB 1007 & ACR 119: Career Technical Education (CTE), which the membership supports. These modest bills are intended to promote Career Technical Education in California’s schools and SB 1007 declares the need for career technical education programs and calling on the Superintendent of Public Instruction and the State Board of Education to consider ways to expand career technical in middle and high schools in the state. ACR 119 encourages the Chancellor of the California Community Colleges, in consultation with affected stakeholders, including, experts in the field of CTE the business and industry representatives and faculty to develop options to address long-term funding needs of CTE. The public school system was once a model for providing students with the opportunity to acquire training and technical expertise for meaningful employment in the automotive industry. Unfortunately, the old vocational model is falling apart from 35 years of neglect. It’s time to allow students to pursue skills necessary to survive without a college education, a position outlined by Jack Molodanof.
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Continued from Page 39
What’s in a Name?
ternational,” a name is so frequently used, it gets lost in the shuffle. It takes up six full columns in one Business White Pages alone! Some marketing research done many years ago turned up the fact that people were unusually attracted to the word “Apple” in a business name. After that survey, there was a rash of new businesses with the word “Apple” in the name. These ranged from “Apple One Employment Agency” to “The Apple Farm” restaurant, “Apple School” and, most famous of all, “Apple Computers.” In New York I wouldn’t be surprised to see a shop called “Big Apple Auto Body,” but
elsewhere it may be wiser to come up with a different approach. After all is said and done, if a shop’s name is “Superior Auto Body” and the work isn’t “superior,” or even competent, no amount of name-changing is going to compensate for that liability. And if a shop’s name is “Mediocrity Plus” but the work is excellent, the name will be only a small liability. A good name or slogan is an essential part of a good “First impressions marketing strategy,” but once a prospective customer is in your shop and has experienced your fine quality of work, it will no longer matter what you call your shop. When you’ve chosen well and communicated it well, your “trademark image” will be indelibly branded on the minds of both customers and prospective customers and will quietly contribute to your continuing prosperity.
State Farm to Raise Rates in Illinois State Farm, Illinois’ biggest car insurer, plans to raise its auto rates in the state by an average of 2.3 percent starting May 26, according to a filing. “Auto insurance rates in Illinois were adjusted to better reflect changing claims costs,” namely a rise in car repair costs, said Missy
Dundov, spokeswoman for the Bloomington-based home and auto insurer. The exact price change will depend on the coverages that policyholders have, where they live, what kind of car they drive, how the car is used, and who drives it, she said.
Continued from Page 44
IACA
they struggle with attracting new members who will be active participants. The main reason this is such a challenge is “due to the size of our state and the population being very spread out,” Thornton explains. “It’s over an eight hour drive from Boise to Coeurd’alene in the north and five hours to Idaho Falls in the east... Our biggest hurdle right now is getting our message out to other more rural areas of the state.” IACA hopes that their member benefits, educational opportunities and access to current industry information will aid in generating interest from collision repair professionals from all over their state. IACA faces many of the same challenges as other associations, such as education and fair trade issues, but Thornton says “we feel that the biggest challenges are intrusion in our businesses by insurance companies and keeping up with new technology; education is key to overcoming both of these issues.” Although IACA has not issued an official stance on PartsTrader and
other insurer-mandated parts procurement systems, Thornton notes, “the general consensus is that the insurance companies are the only ones who benefit from it. If the product is so great, why do we have to be forced to use it? Not one shop would actually choose to use it if it was not mandatory, even if it was free. As a general rule, we support anything that promotes fair trade and a level playing field. Unfortunately, things in this industry are coming to a breaking point that will drive more and more lawsuits and legislative activities, in our opinion, and we, as independent business owners, have no choice but to stand up and say ‘NO’ for once in our careers.” IACA 905 Royal Blvd Boise, ID 83606 208-344-3582 www.idahocraftsman.org
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 47
Getting Powered Up at the 2014 WIN Annual Educational Conference by Alicia Basteri, Online Editor
As a newbie to the collision repair industry, I was one of the 65 new Women’s Industry Network (WIN) members attending their first WIN Annual Education Conference, which was held May 5–8, 2014, at the Paradise Point Resort & Spa in San Diego, CA. I wasn’t sure exactly what to expect—and was more than pleasantly surprised! Even before arriving, after joining WIN and registering for the conference, I received a personal email from a WIN member warmly welcoming me to WIN and offering assistance with any conference questions. This was to set the tone for my experience.
Day 1: Monday, May 5th The meeting kicked off on an uncharacteristically blustery day (for San Diego, anyway). I received another warm welcome at the registration desk, and was super stoked to unwrap a stylish black pashmina from my welcome packet—it certainly came in handy! As I walked into the conference room and looked around for a seat, I paused and smiled as I realized that it was a room full of women (well, there were a few men). I settled in next to friendly faces as the emcee, Michelle Sullivan, welcomed a record number of 178 conference attendees.
Recipients of the 2014 WIN Cornerstone Award, Denise Caspersen and Ruth Weniger
“When I think about why I get so excited about WIN, for me it is all about camaraderie—camaraderie is the spirit of WIN.” Sullivan then introduced the theme of the conference by inviting attendees to “Power Up!” Next, 2013-2014 WIN Board of Directors chairwoman Margaret Knell
recognized WIN achievements over the past year, the 2014 WIN Conference sponsors, as well as committee chairs, co-chairs, and other members. In addi-
author of “The Power of People: Four Kinds of People Who Can Change Your Life,” tapped into the WIN “Power Up!” theme with her message
The scavenger hunt was designed to meet attendees from different generations
tion, she presented Denise Caspersen and Ruth Weniger with the 2014 WIN Cornerstone Award, which is awarded to individuals on the WIN Board of Directors who exemplify the values and vision of WIN. Laurie Cusic, senior facilitator for Brody Professional Development, then presented “Bridging the Generational Gap,” which addressed the need to understand generational differences in a workplace with four distinct generations—traditionalists, baby boomers, generation Xers, and millennials (or generation Yers)—and attendees participated in a related networking event. My overall first impression was that there was great energy in the room, and, unlike a lot of other conferences, everyone seemed genuinely excited— and “powered up”—to be there, friendly, supportive, and proud. This feeling was solidified during the welcome dinner at Paradise Cove, where attendees mingled with old friends and new over a luau-themed menu, followed by roasting marshmallows in a bonfire to make s’mores.
Day 2: Tuesday, May 6th Attendees started day two with the annual WIN Scholarship Walk to raise funds for the WIN Scholarships. Following a continental breakfast, charismatic keynote speaker Dr. Verna Cornelia Price, CEO of The Power of People Consulting Group and
48 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
ceed” by Colette Carlson), or sustainability (“The Green Revolution” by Mike LeVasseur). The day ended with the WIN Annual Membership meeting, which provided the “2014 Report to the Industry” including reports from the Communications, Membership, Finance, Scholarship, Nominating, and Governance committees. In addition, the WIN Board of Directors, new WIN Executive Committee, and WIN Scholarship winners in attendance were recognized. The evening festivities started with a cocktail reception, followed by the annual WIN Gala and Most Influential Women Ceremony. After dinner, WIN colleagues and friends recognized and introduced the honorees: Frederica Carter, president of F. Carter Events, LLC (former communications manager at AkzoNobel); Jordan Hendler, executive director of the Washington Metropolitan Autobody Association; and Leanne Jefferies, director of Collision Programs for AIA Canada. And last but not least, dessert was served!
of “The Power of You!” Dr. Price explained that you are born with power; no one has more power than you; no one can take your power (but you can give it away); and your power multiplies when you use it. She also talked about the four types of powerful people: adders, subtractors, multipliers, and dividers. Next up, the engaging Colette Carlson, founder of “Speak Your Truth”, talked about “The Hard, Cold Truth— Working Hard Isn’t Working,” including how to communicate successes, cultivate connections, and develop strategic relationships. After lunch, attendees went to one of three work- New WIN board members: (left to right) Marie Peevy, shops about technology Trish Gould, Jaclyn Byers, Jessica Rob, and Nina (“Mastering the Muck of Pedrazza-Zinna Your Technology” by Kathi Burns), negotiation skills (“Truth About Ne- Day 3: Wednesday, May 7th gotiation: A$k and You Shall Suc- After a continental breakfast, John Kett, president and CEO of Insurance Auto Auctions (IAA), presented “The Increasingly Interconnected APD System,” covering the operational and technological forecast for IAA and key information about the direction of the industry. Following the break, Jane Hylen, senior vice president of North Central Operations Enterprise Holdings, presented “Keys to Success” within the automotive industry. Tracy Holberry from SherwinKeynote speaker Dr. Verna Cornelia Price talking about
“The Power of You!”
See Getting Powered Up, Page 50
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 49
Mitchell Releases Second Quarter 2014 Industry Trends Report Mitchell has announced the availability of its Industry Trends Report (ITR) for the second quarter of 2014. Mitchell combines its own data with guest contributions from Enterprise Rent-A-Car and J.D. Power & Associates, to offer industry data points and analyses, along with expert market insight, to P&C insurers, bill reviewers, payers and auto body repair shops. The Industry Trends Report (ITR) is delivered in two editions to address timely concerns for the auto physical damage and casualty industries.
The Auto Physical Damage edition Using Mitchell’s repairable collision severity data in conjunction with information from the Property Casualty Insurers Association of America (PCI), Greg Horn, Vice President of Industry Relations at Mitchell, analyzes the impact a brutal winter can have on collision frequency and severity. “By looking at the national frequency numbers over the last three winters, we concluded that in general, winter storms are leading to higher repairable costs and more total losses than they had in the recent past,” said Horn. “As an insurer or collision repairer, it’s imperative to prepare for these trends next win-
ter, especially in the fourth quarter when your ability to handle workloads is already stressed by the holidays and staff vacations.” Enterprise Rent-A-Car contributes to the ITR with its own article including factors impacting the ‘length of rental’ from the first quarter of 2013 to the first quarter of 2014 in both the U.S. and Canada. Factors analyzed include weather, economy, repair shop conditions and processes and parts availability. In the U.S., the Northeast led the country with the highest length of rental at 13 days with winter storms severely impacting mild winter states, while Canada’s rental length remained high but consistent as the majority of the country dealt with severe ice and snow during the winter season. Readers will also find data concerning the most common and costly car repairs over the past five years, ranging from catalytic converters to front and rear bumpers. J.D. Power & Associates supplements these facts with actual cash value trends of used cars. Mitchell also offers a webinar, Industry Trends Live, on the Auto Physical Damage edition of the report. Greg Horn will provide a deeper look into the trends, information and stud-
ies highlighted in this quarter’s ITR on Wednesday, May 7. To sign up for webinar, visit http://go.mitchell.com/register.
The Casualty edition The latest casualty edition focuses heavily on the use of technology and analytics. “Analytics: Present and Future Applications,” written by Ed Olsen, senior business process consultant at Mitchell, focuses on the use of analytics to streamline claims processes for P&C professionals by developing benchmarks, establishing plans of action, detecting fraud and optimizing workflows. “If done right, analytics greatly improves customer satisfaction by allowing prompt resolution of legitimate claims while improving claim outcomes by assigning the best resource to handle a claim,” said Olsen. “That’s revolutionary for our industry.” Addressing a cutting edge topic in the world of analytics, the ITR and
the accompanying Technology Impact article highlights the ways predictive analytics technology can be used to enhance the decision-making process within an organization. In line with previous Mitchell trend reports, this Q2 Edition includes an updated Medical Price Index, along with recent state regulatory changes. According to the data, both evaluation and management and major radiology services showed double-digit price growth over the past year. First published in April 2001, Mitchell’s ITR now reaches more than 33,000 collision and casualty industry professionals and provides meaningful visibility into data-driven trends in the P&C market. The complete report is available at www.mitchell.com/industry-trends-report. For further collision repair and property casualty industry updates and perspectives, follow Mitchell on Twitter @MitchellClaims and @MitchellRepair.
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Continued from Page 48
Getting Powered Up
Williams presented the 2014 Scholarship recipients in attendance, Stephanie Baker and Suzanna Hernandez, with a certificate for tuition and travel-related expenses paid in full for any automotive training course at a Sherwin Williams Training Center of their choice. Margaret Knell closed the conference with a summary of the events and officially passed the torch to Denise
2014 WIN Most Influential Women honorees Leanne Jefferies, Jordan Hendler, and Frederica Carter
Caspersen, newly-elected chairwoman of the WIN Board of Directors. If you’re a woman in the collision repair industry, I highly recommend
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WIN Scholarship winners with WIN Committee co-chairs: (left to right) Suzanna Hernandez, Teresa Bolton, Stephanie Baker, and Bev Rook-Twibell
that you join WIN (visit http://thewomensindustrynetwork.ning.com/pa ge/join-win-1 or email Mary Kunz at MarySKunz@gmail.com) and attend the 2015 WIN Annual Education Conference. If you’re already a WIN member, WIN asks that you please consider joining a committee as WIN is entirely volunteer-based. Sign in to http://thewomensindustrynetwork.ni ng.com/page/join-a-committee and click on the Committee description to find full descriptions and contact information. If you missed the 2014 conference but will be attending the 2014 NACE/CARS Expo and Conference, stop by the WIN booth.
50 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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AudaExplore Launches Cloud-Based Fully Scalable Enterprise Body Shop Management Solution AudaExplore(TM), a leading datadriven solution provider to insurance carriers, repairers, dealerships and fleet owners, today announced the launch of MSO Pro(TM), a cloudbased enterprise body shop management (BMS) solution that delivers unmatched capability to manage multiple repair locations and business functions through one experience. Featuring enterprise-level functionality with a dashboard-driven design, MSO Pro is based upon proven technology, which has already processed tens of thousands of repair orders, and millions of dollars in collision repair revenue. The solution is an open architecture design that integrates with estimating platforms from AudaExplore or other technology providers to deliver unique customer moments and increase repairer productivity through the following: ● Predictability: Repairers can make better, more informed decisions that impact customer satisfaction and profitability outcomes through customer satisfaction reporting, predictive production load scheduling and standardizing process across multiple repair locations.
● Scalability: No matter the size or number of locations, from a single shop looking to grow into an MSO to organizations opening their 100th location, the platform combines robust performance analytics and reporting with applications for all business functions including: HR, Sales, Customer Relationship Management and Operations. ● Efficiency: Reducing complex IT integration across business functions and locations with its stable cloud-based accessibility via single sign-on, self-service management of administrator permissions and thorough user adoption training and support. “We’re excited to bring to market a proven and comprehensive enterprise solution--the first of its kind designed for MSOs,” said Gordon Henderson, VP of Collision Repair Solutions, AudaExplore. “MSO Pro breaks new ground in collision repair operations, filling a void in which many MSOs have chosen to either build their own homegrown systems, or deal with the limitations of singleshop or low-volume solutions that require ongoing add-ons to support their multi-shop businesses.”
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Auto Damage Experts Will Perform Inspection and Verification for Assured Performance Network’s Certified Repair Shops
Assured Performance and Auto Damage Experts (ADE) announced at the latest Collision Industry Conference (CIC) that ADE has been chosen to perform the inspection and verification of Assured Performance Certified repair facilities across the country. The Assured Performance certification program provides a thirdparty assessment of a shop’s ability to properly repair today’s complex vehicles back to the manufacturer’s specifications by having the proper tools, equipment, training, and facility. Assured Performance and ADE will work together to deliver an accurate and efficient process to assess the participating shops’ capabilities, providing the consumer with an accurate and credible national network of competent and reliable shops to choose from in the event of a collision. ADE has been long known for its superior vehicle appraisal and valuation services, but ADE also provides a suite of services including, but not limited to: ● Detailed Collision Forensics ● On-Site and Remote Pre-Repair Inspections, ensuring the accuracy of an estimate ● In-Process Repair Monitoring en-
suring the proper processes and materials ● Post-Repair Inspections and Verifications, providing confirmation of an accurate repair ● Training and Assistance in Damage Analysis, equipping shops and adjustors with the most up-to-date information on repair specifications and techniques. ● Assessment of Required Repairs and the manufacturer’s recommended processes and materials ● Coaching/Consulting for day-to-day business operations “Assured Performance has developed a first-class program, which offers significant value and opportunities to its qualified members,” said Barrett Smith, ADE’s Founder and President. “We’re excited and proud to work with Assured Performance in helping quality repairers take advantage of the many benefits of the Certification program, including recognitions from numerous OEMs.” For more information on Assured Performance visit www.assuredperformance.net. For more information on Auto Damage Experts, visit www.AutoDamageExperts.com or e-mail: info@AutoDamageExperts.com.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 51
South Carolina Shop Files Suit Against State Farm Citing Breaches of Contract and Defamation The owners of Coastal Collision Works, David and Susan Montanaro, filed suit on March 6 against State Farm in the SC Court of Common Pleas for defamation, unfair trade practices, breach of contract with their insureds and breach of agreement with Coastal Collision. The shop is located at 2543 Savannah Hwy, Charleston, SC, 29414. Becky Snelgrove and Steve Fields are named in the suit as State Farm representatives. Coastal Collision Works accuses State Farm of engaging in a course of action to artificially depress the price for the repair of damaged automobiles in the Charleston, SC, area. In addition it accuses State Farm of: ● Attempting to persuade Coastal Collision Works and other Charleston body shops to agree to repair automobiles for an amount less than they ordinarily charge in exchange for prompt adjustment of losses; for referral of business; and for being listed by State Farm as a “preferred” shop. ● Attempting to persuade Coastal
Collision Works and other Charleston body shops to repair automobiles on the basis of the State Farm estimate of damage instead of performing an independent evaluation of damage. ● Attempting to persuade Coastal Collision Works and other Charleston body shops to not use new parts but to substitute parts of an inferior quality; to repair instead of replace parts requiring replacement; and to ignore damages that might not be recognizable by the customer. ● Arbitrarily refusing to pay reasonable costs associated with needed repairs. ● Refusing to pay the fair market price of parts, insisting that any body shop doing State Farm repairs order from a specific parts supplier and then refusing to reimburse the body shops for the extra time involved in ordering parts from the specified parts supplier. ● Refusing to pay for certain repairs and operations necessary in the repair of damaged vehicles. In addition, the shop says State Farm falsely accused the owners of
charging noncompetive prices and of performing work not reasonably necessary for a proper repair, which has damaged the shop’s reputation and caused it monetary damages. According to the plaintiffs, State Farm violated the South Carolina Unfair Trade Practices Act by steering customers to competitors, citing the State Farm Select Service Program. The plaintiffs have requested triple damages from the court. A State Farm spokesman had not responded to a request for comment at press time.
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Four CARSTAR Shops Were Recognized by Mitchell
This spring, four CARSTAR Auto Body Repair Experts stores were recognized by Mitchell, as recipients of the 2013 AutocheX™ Solution Premier Achiever Awards. “Repair shops are making a commitment to their customers on a daily basis,” said Jim O’Leary, Vice President of Mitchell Repair Solutions. “It’s important for Mitchell to recognize these efforts and honor those teams that have gone above and beyond to deliver some of the industry’s best service.” The 12th annual Premier Achiever Awards honor collision repair shops that consistently achieve the highest customer satisfaction scores as measured by the AutocheX solution, either independently or as part of an insurance-sponsored repair program. The CARSTAR shops honored this year were: ● Walt’s Autobody CARSTAR – Topeka, KS ● ABC CARSTAR Body & Frame – Prescott, AZ ● Superior Auto Body CARSTAR – Pinellas Park, FL ● Autobody Resurrection CARSTAR – Lakeland, FL
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52 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 53
Historical Snapshot
—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.
June Retrospective: ASA Position, CAPA, CIC with John Yoswick
from delays caused by such problems as inaccurate parts numbers used in the electronic process; • that return of parts might be more complicated (because of the distance of the participating supplier, for example); and, • that the quality of service provided by parts suppliers may suffer if the choice of suppliers is limited by such a program. —as reported in Collision Expert
20 years ago in the collision repair industry (June 1994) The association representatives at the (Society of Collision Repair Specialists’ Leadership Conference) meeting were in unanimous agreement on one issue: insurer involvement in parts purchasing. A resolution, passed unanimously, recognized the right of insurers to pursue programs they view as cost-saving, but called for the insurance industry to consider repair industry concerts when developing any such program. The resolution listed some of the industry’s concerns regarding insurer involvement in the ordering or purchasing of parts, specifically: • that insurers will use such program to force or intimidate a shop to use parts suppliers with which the shop does not want to do business; • that the programs would substantially reduce shop profits; • that inefficiencies could result
15 years ago in the collision repair industry (June 1999) How much more money can the insurance industry squeeze from collision repairers? Try $2 billion to $4 billion. That’s the figure presented in an article called “Achieving World-Class Claims Performance Using Innovative Supply Chain Management” in McKinsey’s Property-Casualty Insurance Annual. How could the insurance industry realize this savings? By creating
BASF Automotive Refinish recently recognized five collision repair shops as 2013 Performance Group Shops of the Year at its VisionPLUS Business Solutions Performance Group Conference in Clearwater, FL. Collision repair shops that utilize BASF’s VisionPLUS Business Solutions, and participate in the program’s Performance Group meetings, were eligible for the award. The 2013 winning shops are: ● Auto Body Specialties, Springfield, OR, Byron Davis, Owner. ● Crystal Lake Automotive, Lakeville, MN, Jim Siegfried and Karl Drotning, Owners. ● Frank’s Autobody Collision Solutions Network, Vernon, British Columbia, Canada, Matt Brunelle, Jesse Brunelle, Dave Brunelle and Rene Brunelle, Owners. ● LaMettry’s Collision, Richfield, MN, Joanne LaMettry, Owner. ● Center Square Motors, Blue Bell, PA, Chuck Dietch, Owner. The five winners were selected based on criteria including sales improvement; overall gross profit improvement; Vision PLUS Performance Group meeting attendance; and meeting participation and contributions.
The U.S. automotive aftermarket is expected to grow on a compound annual growth rate (CAGR) of 3.4 percent until 2017, according to the “2014 Joint Channel Forecast Model” produced by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. The model predicts that the total aftermarket sales will grow from $238.4 billion in 2013 to $273.4 billion in 2017, an increase of $35 billion over four years. “The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, Auto Care Association president and CEO. “Why? The average age of vehicles is 11.4 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.” Said Bill Long, AASA president and COO, “The forecast model anticipates that growth in population, employment and income will lead to an increase in miles driven and the number of vehicles on the road resulting in long-term aftermarket growth.”
BASF Recognizes 5 Shops as Shops of the Year
Automotive Aftermarket is Expected to Grow 3.4% PY
54 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
super direct repair programs. “In general,” the report said, “channeling more repair volume to fewer network participants leads to better prices and other concessions.”
Solera’s Tony Aquila, speaking at an international collision repair conference in 2009, said businesses should focus on ‘value’ rather than price, “because cheap sucks.”
David Friedman, one of the authors of the report, amplified the point. “Let’s say State Farm says to their DRP providers, ‘We think you’re the best of the best and we’ve got a new higher-grade program where we’ll
channel even more work to you and we’ll have less inspection.” —As reported in The Golden Eagle. By mid-2000, State Farm was piloting a “Select Service” program with Sterling Collision shops (prior to that chain being owned by Allstate) in several markets; the program eventually replaced the insurer’s “Service First” program, significantly reducing the number of participating shops. 10 years ago in the collision repair industry (June 2004) Tom McGee would like everyone in the collision industry to ask themselves two questions: What led you to get into this industry, and did you ever expect when you started out to be doing what you’re doing now? McGee, the CEO of I-CAR, posed those questions to about 60 people attending an I-CAR “industry forum” in Chicago as a way to introduce his con-
Auto Body Parts Receive Consumer Discount at Auto Pros USA Parts Retail Website Auto body parts are now under new terms of sale at the Auto Pros USA website. All import and domestic parts shippable are receiving new sticker prices for purchasers. Discounts for select types of auto parts can be hard for consumers to locate due to the increase of freight costs for automobile parts shipments. The Auto Pros USA company is now providing a discount for all used auto body parts available for sale at http://autoprosusa.com. The entire inventory of American and imported models of parts that are available for public sale this year has been lowered in retail price. New contracts with agencies offering better prices has helped to configure the current discounts that are found when shopping on the company homepage in 2014. “The vehicle body parts that are offered are in preowned and in aftermarket condition to provide easy selection options for parts purchasers,” an Auto Pros source said. The automobile replacement parts for sale that are marketed on the Auto Pros website to consumers now feature a new phase of warranty coverage. The extension of warranty periods now included for most parts
sales is already calculated in the quoted prices. “American and foreign automaker brands can be found using our search location tool on our homepage to discover all components discounts in place,” confirmed the source. The Auto Pros USA company website now provides consumers with the updated toll-free phone line used to support customers not shopping through the homepage this year. The number at 1-888-230-1731 is now in place for consumers to use for locating company supplied parts. The AutoProsUSA.com company provides discounts for vehicle parts and accessories that can be purchased through its Internet portal. This company has launched a database available to consumers with hundreds of suppliers currently quoting prices before purchase. The AutoProsUSA.com company has a staff of experts contributing to the customer support now available daily. The automotive partners that are found through the company website change periodically as different distributors are included in the North American network.
cept for some websites to help attract more young people into the industry. “Nobody ever explains the career opportunities,” said McGee, who said he’s now the head of an international training organization but started out in the autobody “hobby class” in his high school. “I use the example of touring the DuPoint lab and looking at people who used to be technicians now working in the chemistry area in product analysis. Guys who worked in the stall next to me at my first job out of college now work for GM and Daimler-Chrysler. Did I expect them to go there or me to go here? No. But we don’t show parents what these opportunities are to allow them to understand that kids can make a good career and living in this industry.” McGee, drawing on his own experience as the father of three kids, ages 7 to 12, suggested that I-CAR develop age-based websites that would include such interactive activities as racing and other games, drag-anddrop customizing of vehicles, trivia and printable coloring books that would give kids reasons to visit the sites…The sites would let kids tinker with cars “virtually,” and also help them see that collision repair skills
can lead to rewarding careers not only within shops, but also with paint companies, information providers and insurers. —As reported in Autobody News. I-CAR launched two such websites in 2005. CollisionCareers.org is still live, though it is fairly static and offers little in the way of career path “stories” as it did in the early days. CollisionKids.org is no longer an active site. McGee left I-CAR in 2008 and is now with the Automotive Training Institute.
5 years ago in the collision repair industry (June 2009) Tony Aquila, CEO of Solera, Inc. (the parent company of AudaExplore) told the 250 IBIS attendees (shops, insurers and vendors from about two dozen countries) that businesses moving forward can take one of two roads. “I think you can just focus on ‘faster, better, cheaper,’ but to me, that’s a dead-end,” he said. “It really doesn’t take you anywhere, because eventually, you can’t make it that much cheaper, and you start to erode your profitability, then you start to lose your enthusiasm and vision, and everything kind of unravels. Or you can focus on
what we believe, which is ‘faster, better, more valuable.’ Focus on highvalue things that allow you the opportunity to innovate. Because then price is not the issue. It’s about the value you are delivering. We make no bones about it: When we do something, we want to get paid for it because we’re doing something high-value.” Aquila was asked how his company’s shop customers can use that concept when they feel continually squeezed by insurers. “If the customer is saying they want cheaper, then I would argue to my people that we’re not doing a good enough job providing more value,” Aquila said. “When you focus on just price, the value curve is out of the equation. That means innovation is not happening. You’re not giving them more services. When customers say to me, ‘We need it cheaper,’ then I immediately think: What do I have to do to add more value so they stop talking about cheap. Because cheap sucks. It’s not good for any of us. What we need to concentrate on is how do we get the waste out of the process.” —as reported in CRASH Network (www.CrashNetwork.com), June 29, 2009.
I-CAR Enhances Website, Other Improvements Coming
I-CAR® reinforces their ongoing commitment to providing improved services to industry professionals by launching the first of many enhancements to the I-CAR website. These first enhancements are centered around the user registration and tracking portal, myI-CAR.com, with improvements that include more user-friendly, streamlined registration and login pages, along with redesigned, personalized landing pages for faster navigation and ease of class scheduling. Users will see an immediate difference during the login process and find navigation easier as soon as they enter the site. The new landing pages have graphically-focused visual navigation for easy identification of quick links to frequently utilized resources and information. Some of the new highlights include immediate visibility to Gold Class and Platinum recognition status, expiration dates and reports that provide specific details on training required by students and businesses in order to achieve or maintain their Platinum or Gold Class status. Visit www.i-car.com or contact Customer Care at 800-ICAR-USA.
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www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 55
Ford Dealerships Exceed Enrollment Goals for Collision Repair Training on F-150 According to Ford, 850 Ford dealerships have enrolled technicians in training courses to learn how to do collision repairs on the 2015 aluminum F-150 pickup. Ford said the number exceeds its goal of having 750 dealerships enrolled in the courses by the end of 2014. The training courses will be taught by instructors from I-CAR. Jason Bartanen, I-CAR director of industry technical relations, calls it one of the biggest technical training programs of its kind ever. So far, ICAR has scheduled about 700 classes in locations around the country. Dealership training begins this month. Training for independent collision shops and insurance estimators begins in June. “Because of the magnitude and volume of this vehicle, I think we’re going to see a fantastic response to this course,” he said. Ford’s shift from steel to aluminum on its biggest-selling vehicle is an enormous industrial undertaking and affects everyone from the factory floor to the collision repair shop. Ford wants to be sure collision repair specialists know what they’re doing the first time a damaged aluminum pickup rolls into a shop.
AMI Taking Applications for $1,000 High-Octane Award
The Automotive Management Institute (AMI) is accepting applications for the $1,000 Arrowhead Specialty Markets "High Octane" Scholarship. The scholarship, which is awarded to an Automotive Service Association (ASA) Mechanical Division member who strives to be, or is presently working in a management capacity. The scholarship will be applied toward the recipient’s expenses to attend the 2014 Congress of Automotive Repair and Service (CARS) in Detroit, July 31–Aug. 2. CARS is sponsored by ASA and offers an educational lineup of AMI seminars, technical training courses and industry sessions, an exposition and the opportunity to network with other automotive service professionals. To be eligible, applicants must work in the mechanical repair industry; must demonstrate an interest in self-improvement through education and training; must own or work for a business that is an ASA member in good standing; and, if the applicant is not the business owner, must be recommended by the owner. To request a scholarship application, call AMI at (800) 272-7467, ext. 101.
Ford sold 763,402 F-series trucks in 2013. It doesn’t report sales of the F-150 separately from the rest of the F series, but Ford production statistics show that 69 percent of all F-series production was F-150 in 2013. 2-part course The I-CAR training course will be divided into two segments. The first teaches general aluminum repair techniques, including aluminum welding and the operation of rivet guns. The second concentrates on particular design elements of the 2015 F-150 itself. Ford has offered to pay the cost of one technician per dealership for the training course, which takes about two days and costs about $1,000. Dealerships that want to have more than one trained technician will pay the additional expense to send extra technicians. To work on aluminum, Ford recommends that dealerships with body shops and independent repair shops buy new tools, including specialized rivet guns, MIG (metal inert gas) welders and specialized vacuum systems. Ford has estimated dealerships can buy the equipment they need to get started for $30,000 to $50,000.
When aluminum is bent or broken, it behaves differently than steel. Aluminum does not have the “metal memory” to resume its original shape, as steel does. Ford strongly recommends collision shops set up separate areas for working on aluminum because of steel-aluminum contamination issues. Galvanic corrosion, similar to rust, can occur when the metals touch each other. Combustion can also occur when the two metals mix. Among the training requirements will be a weld test in which technicians will be asked to perform six welds from two positions. I-CAR welding experts will travel to dealerships and repair shops to be sure that they have acquired the proper aluminum-handling equipment and that it is installed properly, Bartanen said. Independent shops Roughly 20 percent of Ford’s more than 3,000 dealerships have body shops; the rest outsource the work to other dealerships or to independent collision repair shops. Ford said it has enrolled about 420 independent shops and hopes to enroll 750 by year end.
ETI to Hold Meeting with NACE CARS in Detroit
Another automotive industry organization will be joining Industry Week and the NACE/CARS 2014 Conference & Expo in Detroit MI. The Equipment & Tool Institute (ETI) will hold their board meeting Tuesday, July 29, 2014, at the Westin Book Cadillac in Detroit,. Dan Risley, Automotive Service Association (ASA) president and executive director, stated “We are thrilled to have ETI join us in Detroit this year. This is a very important and respected organization, and their support is significant to Industry Week. The overriding purpose of the event is to bring the industry together, and ETI’s involvement is another example of collaboration.” “ETI is pleased to be holding our summer Board of Directors Meeting in Detroit in conjunction with Industry Week,” said Jessie Korosec, ETI meeting and event manager. “The Westin is an excellent venue and we are looking forward to a successful meeting.” Visit www.etools.org and www.naceexpo.com to learn more.
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56 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
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Technicians aren’t the only ones who need a better understanding of the aluminum repair process: Insurance adjusters do, too. Said Bartanen: “This training will be open to the insurance industry so insurance adjusters will know what to do and can write more accurate damage assessments.” I-CAR and Ford experts also will offer lectures and demonstrations on repairing the new F-150 at the International Autobody Congress & Exposition (NACE) July 30-Aug. 2 in Detroit. The 2015 F-150 is scheduled to arrive in dealerships in the fourth quarter.
Mon-Fri 7am - 6pm; Sat 8am - 1pm etaylor@lithia.com
858-300-3331 Fax Mon-Fri 7am - 6pm; Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com
Bloomberg reports Esurance to Take on Advertising Giants Allstate Corp., the largest publicly traded home and auto insurer, hired Alan Gellman from Wells Fargo & Co. to oversee marketing at its Esurance unit. Gellman will be chief marketing officer, reporting to Esurance Chief Executive Officer Gary Tolman in San Francisco. He held marketing roles for the past 10 years at Wells Fargo, the auto insurer said. Allstate has ramped up advertising spending to win customers from big spending rivals such as GEICO and Progressive Corp.
Advance Auto Profit Up 21%, Acquisition Boosts Sales
Auto parts retailer Advance Auto Parts Inc reported a 21 percent rise in quarterly profit, helped by the acquisition of the biggest operator of the Carquest chain of auto repair shops and car parts stores. Advance Auto completed the acquisition of General Parts International Inc in January, making the company the largest auto parts retailer by sales in the United States. Advance Auto’s net income as reported rose to $147.7 million in the first quarter.
SCRS Member’s E-Catalog
The Society of Collision Repair Specialists (SCRS) Member Services E-Catalog was created to help SCRS members do business with other members. If you are a repair facility, share it with your friends and colleagues; if you are with an association, pass it along to your membership, or share it with your customer base or post to your social media account. View the catalog at: http://scrs.com/index.php?id=ecatalog.
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Sacramento (877) 484-4870 (916) 484-4876 (916) 484-4878 Fax Mon.-Fri. 7:30-5:30 www.maitasubaru.com
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Santa Clarita (818) 778-2005 (818) 778-2090 Fax www.galpin.com
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Marin Subaru
San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net
Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com
Solera Buys Pittsburgh Glass Works’ Insurance Business
Solera Holdings Inc. says it is buying the insurance and services division of private equity-owned Pittsburgh Glass Works LLC for $280 million, expanding the Texas-based insurance software company’s business to include automobile repair and claims management services. Solera’s acquisition of the insurance division, which is expected to close by the end of June, will be paid for entirely with cash, the company said. Pittsburgh Glass Works is owned by Kohlberg & Co.
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AutoNation Subaru Scottsdale Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4
Subaru Superstore of Chandler Chandler (877) 443-3239 (480) 268-2402 (480) 621-3805 Fax Mon.-Fri. 7-6; Sat. 7-5 subaruparts@shopsubaru.com www.shopsubaru.com
Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com
Subaru of Glendale Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 57
SEMA Show Registration Now Open As of May 12, 2014, you can now register to attend the 2014 SEMA Show at www.SEMAShow.com/register. The annual trade show for the automotive accessories market is set for Tuesday– Friday, November 4–7, 2014, in Las Vegas, NV.
You can register as an attendee, exhibitor, and media member: Attendees: Distributors, retailers, installers, and buyers who will be meeting with exhibitors at the SEMA Show should register as an attendee. Applicants may be required to submit proof of employment in the industry. During registration, attendees will be able to sign up for special events and
seminars, including those offered by the Society of Collision & Repair Specialists (SCRS), Tire Industry Association (TIA), and more. Approved attendees who register before the early deadline in October 2014 will receive their badges in the mail. Exhibitors: The exhibitor category is for company personnel working in the booths of exhibiting companies. To secure an exhibitor badge, individuals will need to have the unique password and user id that was provided, via email, to the primary contact at the exhibiting company. The primary contact may register the entire staff at one time quickly and easily. Exhibitor badges are not to be used for non-employees, including contest winners, contractors, and vendors. During registration, exhibitors will also be able to order complimentary tickets to the SEMA Industry Awards Banquet. Tickets to the banquet, which is attended by 3,000 attendees and considered by many to be the industry’s premier cel-
Car-O-Liner Offers Free Value-Added Design Planning
Car-O-Liner®, a leading global provider of collision repair equipment to the automotive aftermarket, offers WorkShop facility design planning for Car-O-Liner equipment placement as a free value-added service through local authorized Car-O-Liner Distributors. Through this service, shops address challenges posed by limited space or awkward building layouts by designing a concept for how Car-O-Liner equipment will best fit to optimize work flow, thereby providing confidence that their equipment investment will maximize both technician productivity and shop profitability.
After consulting on the objectives of the facility, the Car-O-Liner Distributor will work with shop operators and their architects to plan and visualize the most effective layout
ebration, sell for $50 each. Media members: Editors and journalists covering the SEMA Show can register for complimentary media credentials. Applicants may need to supply proof of media affiliation, such as bylined articles or business cards. All approved media will be able to pick up their credentials onsite in the SEMA Show Media Center, which includes exclusive services and amenities to assist with reporting from the event. During registration, media are able to secure a ticket to the LTAA Media Preview—a brandnew event that will give media exclusive early access to new products on Monday, November 3, 2014, the day before the SEMA Show officially opens. “There are many advantages to registering early for the SEMA Show,” said Peter MacGillivray, SEMA vice president of events and communications. “Early application expedites the registration process, which is the first step to developing a personal plan for the show. Whether you’re an exhibitor, buyer, or media, having a plan in advance of the event is the best way to ensure success.” Complete details about the SEMA Show and registration are available at www.semashow.com.
MCR Safety Donates 26,000+ Pairs of Safety Eyeware
MCR Safety donated over 26,000 pairs of safety glasses and goggles worth nearly $50K to the Collision Repair Education Foundation (CREF). They will be distributed to collision school programs across the country for fall 2014. “We protect people and are proud to contribute our safety eyewear to help support CREF efforts...We hope our contributions will foster safety awareness throughout their careers,” stated Glen Herald, MCR Safety COO. CREF director of development Brandon Eckenrode noted, “On behalf of the thousands of collision students that this donation will assist and help keep them safe within their collision school programs, I would like to thank MCR Safety for their continued support. This in-kind donation will be one to remember, and it was awe-inspiring to have a semi-truck deliver 15 pallets of the donated glasses and goggles. As collision school instructors continue to face shrinking program budgets, this type of donation helps free up additional funds that can now be used elsewhere within their collision program.”
from a top view in 2D. The unique footprint of the building is accurately represented to include structural attributes such as garage bay openings as well as doors, windows, lighting,
and more. Equipment can be rotated and moved, in real time, to determine optimal placement with consideration for vehicle flow restrictions, safety, and other requirements of the space. At any time, the design can be viewed in 3D from any angle with the ability to save and print high-resolution drawings and specifications. In addition to 3D renderings, a detailed report of the Car-O-Liner equipment specifications selected for the layout can be printed to quickly and easily make the design a reality. To learn more about how a WorkShop facility design plan can improve your efficiency, contact your local Car-O-Liner Distributor, visit www.car-o-liner.com, or call toll free (844) 833-9419.
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BMW Joint Venture to Triple Carbon Fiber Plant Capacity
BMW Group’s joint venture with SGL Group will spend $200 million to triple the capacity of its carbon fiber products plant in Moses Lake, WA. The factory will become the world’s largest producer of carbon fiber, with an annual output of 9,000 tons by 2015 when the expansion is completed. The plant provides carbon fiber reinforced plastics for BMW’s family of i electric and plugin hybrid cars—the i3 electric compact car and the i8 plug-in hybrid sports car. The i3 has just been released in the US and the i8 is to launch in August. The carbon fiber has been used to produce 5,000 i3 cars at BMW’s factory in Leipzig, Germany, which has a daily output of 100 vehicles. With the expansion, BMW said it will be able to use the carbon fiber for other models “at competitive costs and in large quantities.” The redesigned 7-series flagship sedan due in two years is expected to make extensive use of carbon fiber. The joint venture, SGL Automotive Carbon Fibers, is 49 percent owned by BMW. The partners have spent $100 million on the plant, which has 80 employees. The expansion will create 120 additional jobs.
US Government Says It Lost $11.2 billion on GM bailout
The U.S. government lost $11.2 billion on its bailout of General Motors, more than the $10.3 billion Treasury estimated when it sold its remaining GM shares in December. The $11.2 billion loss includes a write-off in March of the government’s remaining $826 million investment in "old" GM. The U.S. government spent about $50 billion to bail out GM. During the company’s 2009 bankruptcy, the government’s investment was converted to a 61% equity stake in the automaker, plus preferred shares and a loan. The US bailout of GM and Chrysler saved 1.5 million jobs in the United States, according to the Center for Automotive Research in Ann Arbor, MI. GM just posted its 17th consecutive profitable quarter. Earnings, however, were hurt by a $1.3 billion charge for the costs of various recalls, including for faulty ignition switches on 2.6 million cars. GM is under investigation by the Justice Department, U.S. auto safety regulators and Congress over its failure to detect the faulty ignition switch for over a decade. The U.S. Securities and Exchange Commission is also investigating GM.
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OSHA Cracking Down on Isocyanate Exposure
A representative of GMG Envirosafe warned attendees of the Collision Industry Conference held April 9–10 that OSHA is cracking down on body shops to ensure workers are protected from isocyanate exposure. Brandon Thomas, chief operations officer of GMG, a company that offers OSHA, EPA and DOT compliance solutions, said a study done by OSHA’s counterpart in Britain found that painters in a body shop environment have 80 times the risk of occupational asthma from isocyanates than industrial workers. It’s precisely for that reason, Thomas said, that OSHA is targeting the collision industry more aggressively than others. According to Thomas, OSHA has fined body shops $1.6 million over the last three years. OSHA’s enforcement division has increased inspections 25 percent over the last four years because they have a bigger budget, and there is an average of 4.33 citations per inspection. OSHA’s goal, Thomas said, is to eliminate isocyanate exposure altogether in two ways: engineering controls (spraybooth, mixing rooms, ventilation, gun washers, etc.) and administrative controls (PPE training and processes).
CAPA Reaches 15 Year Milestone for Vehicle Test Fits
The Certified Automotive Parts Association (CAPA) incorporated its Vehicle Test Fit (VTF) program in 1999 and since then, CAPA has performed more than 10,000 VTFs to ensure that the gap, flush and fit of CAPA parts rival those of OE parts. Since then, there has been a dramatic increase in the quality of the aftermarket parts submitted for testing under CAPA’s rigorous certification standards. CAPA says its program was so successful that after it was initiated, the Collision Industry Conference (CIC) performed blind test fits to compare CAPA Certified parts to OE service parts. CIC participants selected the CAPA Certified part five out of eight times. “While today CAPA’s unique vehicle test fit process has become the industry-accepted standard for test fitting aftermarket parts, it was entirely innovative when we introduced it,” said Debbie Klouser, CAPA’s director of operations. “Considering all of CAPA’s extensive certification requirements, the VTF has played the single most critical role in today’s acceptance of CAPA Certified parts as the best way to contain repair costs without compromising quality.”
NSF Certifies 500 Sheet Metal Parts Made by Gordon NSF International has certified 500 different sheet metal hoods and fenders from Gordon Auto Body Parts Co., Ltd. via the NSF Automotive Collision Replacement Parts Certification Program. The NSF certification of 500 unique sheet metal parts includes more than 700 different models from all major auto companies. NSF certified parts now cover more than 20,000 vehicle applications and represent a significant increase in the number of sheet metal certified parts available in the market. This 500 parts certification complements Gordon’s already certified steel bumpers and bumper brackets. To earn certification, Gordon automotive parts were independently reviewed and tested against OE service parts and all hoods and fenders were fitted to vehicles to ensure proper fit. NSF International also regularly audits Gordon’s OE-ready manufacturing facilities and quality systems to ensure that they meet or exceed each of NSF’s stringent requirements. “Achieving this important certification from NSF International is essential as it underscores the quality and integrity of our automotive parts in terms of fit, form and function. We look forward to certifying more auto parts in the near future,” said Richard Wang, Gordon Auto Body Parts Co.
Executive Assistant to President. “This NSF certification occurs in conjunction with the increase in Gordon’s sheet metal parts inventory so we are prepared to offer these NSF certified parts to ensure inventory levels can meet the anticipated growth in demand.” “Earning NSF certification underscores Gordon’s commitment to ensuring that high-quality collision replacement parts are available so body repairers, insurers and distributors can make more quality repairs using NSF certified hoods, fenders, steel bumpers and bumper brackets,” said Bob Frayer, Director of NSF International’s Automotive Collision Certification Programs. In addition to sheet metal components, the NSF Automotive Collision Replacement Parts Certification Program tests and certifies lamps, bumper fascias, reinforcing beams (rebars), step bumpers, plastic components and absorbers. NSF also offers automotive collision parts distributor certification, which requires distributors to have quality management systems in place that address traceability, service and quality issues. This includes having an effective records system, inventory systems to track orders and parts through the supply chain, and an ISO 9001-certified quality management system.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 59
NACE | CARS 2014 Agenda Announced and Online Attendee Registration Opens
As of May 6, 2014, both online attendee registration and housing reservations are open for the 32nd annual NACE | CARS 2014 Expo & Conference at http://www.naceexpo.com/Content/Reg ister/3/. Part of Industry Week, the collision and service repair industry’s premier networking event, the NACE | CARS 2014 Conference will be held July 30–August 2, 2014, and the Expo will be held July 31 and August 1, 2014, at the COBO Convention Center in Detroit, MI. Other Industry Week events include many board and association meetings on July 28, 2014; the Collision Industry Conference (CIC) summer meeting on July 29, 2014; and the I-CAR Conference and Gala 35th Anniversary Networking Event on July 30, 2014.
View the Conference Program and Schedule-At-A-Glance at: http://www.naceexpo.com/page.cfm/A ction=Seminar/libID=1/listID=1/t=m/ goSection=5. Expo passes to access the show floor only can be purchased for $35. Individual, 90-minute conference sessions are available for $75 per session or individual three- or four-hour conference sessions are available for $150 per session. A Day Pass is $250, and Saturday Mechanical Sessions are $150. A full-access Super Pass is $315 for members and $365 for non-members. All prices noted reflect early bird pricing, which is in effect through June 14, 2014. I-CAR Add-On Education, the Collision Repair Executive Symposium (CRES)/MSO Symposium,
and Technology and Telematics Forum (TTF) events are available at an additional charge. New for 2014, all registration options include the NACE | CARS Show Floor Receptions in the evening on July 31 and August 1; the Opening General Session the morning of July 31, 2014; and The Assembly - Industry Forum in the afternoon on July 30, 2014. Additional details on these events will be released in the near future. Special discount pricing is available for Automotive Service Association (ASA) members, and discounts are also provided for other industry organization members. All NACE | CARS exhibitors will be offering substantially discounted Expo Passes and 10 percent off any conference purchase (excluding I-CAR Add-
NACE Announces CRES/MSO Symposium Agenda
NACE has announced the schedule is now available for the Collision Repair Executive Symposium (CRES), formerly the MSO Symposium. The MSO Symposium has been an extremely popular, sold-out event during NACE since it premiered in 2011, drawing attendance from the largest multi-shop operators in the collision repair industry. This all-new CRES business event now caters to a broader group of collision repair executives allowing it to be more inclusive of some of the best, as well as the largest, operators in the marketplace. This year’s event includes key changes in content including a focus on management, operations and participation from insurance company executives presenting leading information on industry trends. Designed for collision repair multi-shop operators, as well as operators looking for high-growth strategies, mergers and acquisitions, divesting, and operational excellence, CRES is scheduled for Friday, August 1. The NACE | CARS Expo will take place Thursday and Friday, July 31-Aug. 1, with education beginning Wednesday, July 29, at the Cobo Convention Center in Detroit.
Registration for CRES is $150 before June 14 and $250 following, and is available online at http://www.NACEexpo.com/Content/Register/3/ for qualified shop owners. This “next generation” CRES event provides information for high-growth shop owners and multiple-store operators that is unparalleled. This year’s CRES includes an Expo Pass, as well as a ticket to the Opening General Session and Welcome Party Thursday, July 31, allowing for multiple networking opportunities for shop owners and MSOs throughout the event. “A significant amount of time, effort and planning has been invested in developing the fresh content for this year’s all-new format for CRES as we strive to deliver relevant, high-level content for this important and rapidly growing segment of the collision repair industry,” said Russell Thrall, Collision Week publisher, symposium moderator and co-producer. Dan Risley, ASA president and executive director, and CRES co-producer stated, “Some businesses are preparing for expansion through growth or acqui-
Valspar Joins National Auto Body Council
Valspar Automotive is the 32nd National Auto Body Council (NABC) Diamond Member. “From the time we first visited with NABC representatives at the SEMA Show in 2013, we knew this was an important mission that we need and want to support,” said Peter Willman, Valspar Automotive North America general manager. “Community involvement matters to us, which is why it was an easy decision to join and help further the NABC mission and its programs.”
“We applaud and welcome Valspar’s leadership commitment to the NABC,” said Chuck Sulkala, NABC executive director. “Valspar’s membership at our highest Diamond level represents a strong endorsement of the value and important work by our entire membership as we continue to strengthen and build a positive image of our collision industry.” View all NABC Diamond Members at: nationalautobodycouncil.org/membership/diamond-members.
60 JUNE 2014 AUTOBODY NEWS | www.autobodynews.com
On Education). Attendees are encouraged to contact an exhibitor to redeem this discount. For a list of current exhibitors, visit http://fp37.a2zinc.net/clients/StonefortGroup/NC14/public/eventmap.aspx. In addition, special discounts are available to students and educators focused in the automobile repair industry. Additionally, NACE | CARS participants are encouraged to book hotel reservations early, as the rooms are filling fast. Attendees and exhibitors can review the hotels within the official housing block and reserve their rooms online.
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sition while others are preparing for merger or divestiture. This symposium will provide information essential in understanding market conditions and preparing for the future, regardless the size of the business.” Sponsorship opportunities for the CRES are selling quickly, with 12 sponsors confirmed to date: ASA, AudaExplore, AutoZone, Axalta Coating
Systems, BASF, Car-O-Liner, Chief Automotive Technologies, CollisionWeek, Enterprise Rent-a-Car, PPG, UniCure and Universal Technical Institute. It is co-produced by ASA, NACE To advertise and Russell Thrall. CRES will be moderated by a call Advertising Sales at: team of experts including Marcy Tieger, 800-699-8251 Roger Wright, Erick Bickett and Russell Thrall. e-mail:
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Riskiest States for Employee Lawsuits
A new study by Hiscox revealed that, on average, a United States-based business with at least 10 employees has a 12.5% chance of having an employment liability charge filed against them. Businesses in some states, though, face higher levels of exposure to litigation than others. “Federal level information on employee charges is generally available, but state specific information is more difficult to aggregate,” said Hiscox senior vice president Bert Spunberg. Some states have laws that significantly impact risk, and in the states that have more employee lawsuits, the verdicts can be harder on business owners. “Not only are employment lawsuits more likely in those states, but the likelihood of catastrophic verdicts is also significantly higher. Unlike their federal counterparts, where compensatory and punitive damages combined are capped at $300,000, most state employment statutes impose no damages ceilings,” noted Mark Ogden, a managing partner of Littler Mendelson. “Consequently, employers in high-risk states must ensure that their workforces are adequately trained regarding workplace discrimination, harassment and retaliation and that policies forbidding such conduct are strictly enforced.”
5. Georgia Incidences of EPL charges in Georgia are 18% higher than the national average for businesses with at least 10 employees. 4. Arizona and Mississippi tie in the top 5 states for employee liability risk, with the risk of being sued by an employee being 19% higher than the national average. 3. Alabama Businesses in Alabama face a substantially higher risk of being sued by their employees, coming in at 25% above average. 2. Illinois The Hiscox survey reveals that Illinois is one of the top two states for employee liability risk, edging out Alabama with a 26% higher chance of EPL charges than the national average. 1. California California has the most frequent incidences of EPL charges in the country. Businesses have a 42% higher chance of being sued by an employee than the national average. In California, the employeefriendly nature of state laws regarding disability discrimination, for example, may be a contributing factor in the high charge frequency in the state. In California, discrimination cases are filed at the state level, and are brought under the Fair Employment and Housing Act (FEHA).
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NABC Appoints Dan Young to Board of Directors
The National Auto Body Council (NABC) appointed Dan Young, CARSTAR senior vice president of insurance reltions, to its Board of Directors. Young will complete a twoyear term vacated by Mark Lovell of LKQ Corporation because of increased business commitments. As part of his responsibilities on the NABC Board of Directors, Young will also serve as chair of the NABC Distracted Driving Initiative, an intracollision industry effort to educate young drivers on the dangers of inattentive and distracted driving. “We are delighted to welcome Dan to our Dan Young Board of Directors,” said Chuck Sulkala, NABC executive director. “Dan’s considerable industry experience from both the collision repair as well as insurance perspectives will be invaluable in helping NABC enhance community service programs that our mem-
bership can use to make a positive impact in their local communities.” Sulkala also thanked Mark Lovell for his years of service to the NABC. “We appreciate the significant investment of personal time that Mark has dedicated to NABC as a member of the board and especially for his efforts to pioneer, develop, and chair the Distracted Driving Initiative,” said Sulkala. ”I have been a long-time supporter of NABC and its initiatives to give back and help those in need,” said Young. “I am honored to have an opportunity to work with my colleagues on the Board of Directors who are all committed to NABC’s mission to identify and implement programs that promote a positive image of our collision industry.”
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SCRS Examines Repairer Ability to Control Data
Many repairers are unaware of the breadth of data being extracted from their servers, where it is being extracted from, what settings they could employ to better control the flow of information, or even how that information may be used beyond its intended purpose. For years, the Society of Collision Repair Specialists (SCRS) has alerted its members about the potential risk and liability associated with inadequate control over estimate data and business information. For example, SCRS was notified of growing concerns relative to the collection of data through participation in the PartsTrader parts procurement program. As the program rolled out across the nation, more questions began to arise when end-users noticed key identifying information from nonState Farm estimate files populating their PartsTrader dashboard. The repairer concern surrounds the amount of non-voluntary information being provided through the data collection process, which could offer valuable information surrounding market volume and shop volume, raising further concerns over the potential of violating agreements with non-involved carriers by sharing information with an unrelated third-party. SCRS researched the issue with PartsTrader, and each of the estimating system providers to identify the means and extent in which the data is
being accessed and collected, and inquiring if repair facility end-users have options to restrict non-required data from being collected, accessed, or shared. As a result of that research, SCRS issued an article outlining the resulting responses from each of the technology organizations. The article concludes that: Technology has increased the ability to communicate information amongst businesses; however, the increase of applications that indiscriminately extract data in the background for unknown or unintended purposes is a concern for repairers who have obligations to protect data generated by their business. There are advancements being made, or already in place, from some estimating system providers that allow collision repair facilities to maintain better control over the data files being exported from the estimating systems to other data collection sources. The solutions and options for each estimating system vary, so it is important to compare capabilities of the software programs relative to features that allow greater control over unwanted data transfer, and to make any necessary profile changes in line with individual business practices. Read the full article at: http://scrs.com/data/uploads//2014april-scrs-examines-repairer-abilityto-control-data-flow.pdf.
www.autobodynews.com | JUNE 2014 AUTOBODY NEWS 61
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