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Looming Supreme Court Ruling Overshadows Week of Hearings by Ed Attanasio
Body shops and insurance companies are both very interested in three separate, yet connected cases, all of which could seriously affect how they work together for many years to come. While California auto body and insurance company representatives were weighing in on Insurance Commissioner Dave Jones’ proposals to stop improper labor rate surveys and steering during the last week of April, an upcoming critical state Supreme Court decision could potentially hijack them both. On April 27, a joint oversight
hearing held by the Senate Committee on Insurance took place in the Capitol. The subject for debate was entitled Legislation, Regulation and Litigation: Enforcement of the Unfair Act Practices. In his introduction, Chairman Richard Roth, D-Riverside, the chairman of the Insurance Committee, outlined the The Unfair Practices Act (UPA), which establishes a basic code of conduct for insurers to make sure that policyholders and claimants are treated fairly. “Over the last decade or so, the insurance industry and the Department of See Supreme Court Ruling, Page 24
Aftermarket Parts Disclosure Legislation Passes NH Legislature, Bill is Before Governor for Signature
quiring the use of aftermarket parts. Specifically, the bill states: No insurer shall require or specify the use of after market parts on: I. A leased motor vehicle if the lease provides that such parts will cause a diminution of the residual value of such vehicle; or II. A motor vehicle that has been placed in service within the immediately preceding 5 years or has fewer than 50,000 miles recorded on the odometer. 2 Effective Date. This act shall take effect January 1, 2017. The Automotive Service AssociSee NH Parts Bill, Page 18
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
New Hampshire Senate Bill 436, introduced by State Senator Nancy Stiles, R-24, passed the New Hampshire House of Representatives on May 11th. It had passed the Senate on March 3, 2016. This bill prohibits an insurer from requiring or specifying the use of after market parts on certain leased vehicles or vehicles less than 5 years old or with fewer than 50,000 miles. S.B. 436 requires an insurer to disclose whether or not an estimate has been prepared based on the use of aftermarket parts. Any insurer that fails to provide the disclosure would be prohibited from requesting or re-
VOL. 34 ISSUE 6 JUNE 2016
Homeland Security’s Bruce Foucart Talks to ABN about Counterfeit OEM Parts by Stacey Phillips, Assistant Editor
With the number of OEM counterfeit parts cases on the rise, Autobody News talked to Bruce Foucart to learn more about where these parts are coming from and what collision repair shops should be aware of. Foucart is the director of the National Intellectual Property Rights Coordination Center for Homeland Security Investigations in Arlington, VA. He has 30 years of experience as a leader and manager at both the headquarters and field activities of U.S. Immigration and Customs Enforcement and its predecessor agency, U.S. Customs Service.
What types of counterfeit parts Q: have you seen during your investigations?
Bruce Foucart,director of the National Intellectual Property Rights Coordination Center for Homeland Security Investigations
What we have found is that every part that goes into a car, A: whether it is interior or exterior, it’s all being counterfeited now—smart keys, See Counterfeit Parts, Page 58
Minimum Wage Hike in CA Becomes Law; Overview of Implications for Employers by Jennifer Barrera, Reprinted with permission from the California Chamber of Commerce, www.calchamber.com
California is the first state in the nation to commit to raising the minimum wage to $15 per hour statewide. Employers need to prepare for the minimum wage increase. Governor Edmund G. Brown Jr. this week signed SB 3 (Leno; D-San Francisco), a job killer bill that will increase the minimum wage in California to $15 per hour by 2022 (2023 for companies employing 25 or fewer people since there is a one-year implementation delay for small business). SB 3 calls for an increase of $.50 per hour beginning January 1, 2017 and an increase of $.50 per hour in January 2018. The rate would increase $1 per year thereafter until 2022. Small business would not be required to begin the scheduled increases until
2018. Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5% (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index. Until the minimum wage reaches $15, the Governor has discretionary authority to suspend increases based on current economic conditions. However, these “offramps” are discretionary and would come into play only if there are declining state revenues from sales tax, a decline in the labor market or if there is a budget deficit (this offramp is permitted to occur only twice). The new law also phases in sick leave for In-Home Supportive Services workers starting in July 2018. Minimum Wage California employers must pay emSee Minimum Wage Hike, Page 18
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Contents
COLUMNS Attanasio - Indoor Advertising Engages Consumers in Prime Locations . . . . . . . . . . 26 Attanasio - New CAA State President Ted Stein Discusses Industry and its Future . . . . . . . . 34 Luehr - Quality Control in 6 Easy Steps . . . . . . 52 Phillips - CA Body Shop Owners Recognized for Achievements After Risking Everything . . . . 17 Phillips - CO Shop Manager Shares Thoughts on Aluminum Repair, OEM Certifications & DRPs . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Phillips - Why Are Online Reviews Important to Your Auto Body Shop? . . . . . . . . . . . . . . 40 Phillips - Wisconsin Auto Body Shop Creates USO Mobile Canteen for Troops . . . . . . . . . 48
NATIONAL 3M Kicks-Starts CREF Drive for Donations . . . 15 ABRA Auto Body & Glass Announces Succession Plan, Commences CEO Search . . . . . . . . . . . . . . . . . . . . . . . . 71 Aftermarket Parts Disclosure Legislation Passes NH Legislature, Bill is Before Governor for Signature . . . . . . . . . . . . . . . . 62 American Honda Releases Consumer-Oriented Video Describing Hazards with Substandard Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 AMI’s Jeff Peevy presented “The History and Evolution of Training in the Collision Repair Industry.” . . . . . . . . . . . . . . . . . . . . 62 ARA Members Discuss Legislative Issues at State Legislative Summit & Hill . . . . . . . . 21 ASA Collision Leaders Hold Meetings on Capitol Hill. . . . . . . . . . . . . . . . . . . . . . . 69 Audatex and Driven Brands Announce Strategic Relationship. . . . . . . . . . . . . . . . . 71 AutoBodyguard Obtains Exclusive Rights to Zavada Odor Elimination Technology. . . . . . 69 Axalta Announces 2016 “Paint Outside the Can” Contest . . . . . . . . . . . . . . . . . . . . 66 BASF Names Employee & Salesperson of the Year . . . . . . . . . . . . . . . . . . . . . . . . . 47 BASF New National Strategic Accounts Manager. . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Content/Social Media Specialist: Cass Heckel Art Director: Rodolfo Garcia
cles has been growing in recent years, and this is causing a surge in demand for related products like automotive sensors. These sensors will aid the autonomous vehicles in making appropriate driving decisions, and the market for sensors is expected to grow at a rate of 6.92% by 2020. The connected car market is also growing significantly, with a raft of deals between car manufacturers and tech companies. For information, visit the Telematics and Vehicle Electronics section at http://www.researchandmarkets.com /rm/OHNJ.
1-800EveryRim / Capital Original Wheels . . . . . . . . . . . . . . . . . . . . .29 Alfred Matthews Buick-GMCCadillac . . . . . . . . . . . . . . . . . . . .42 Audi Wholesale Parts Dealers . . . . .66 Automotive ID . . . . . . . . . . . . . . . . . .14 AutoNation Chrysler-Dodge-JeepRam-Fiat . . . . . . . . . . . . . . . . . . . . .6 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . .32 Axalta Coating Systems . . . . . . . . . . .2 Blackburn OEM Wheel Solutions . . .15 BMW Wholesale Parts Dealers . . . .65 Bob Smith BMW . . . . . . . . . . . . . . . .43 Bob Smith MINI . . . . . . . . . . . . . . . .43 Capitol Subaru . . . . . . . . . . . . . . . . .72 Car-Part.com . . . . . . . . . . . . . . . . . .10 Certified Automotive Parts Association (CAPA) . . . . . . . . . . .45 ChemSpec USA, LLC. . . . . . . . . . . .21 Chief Automotive . . . . . . . . . . . . . . . .7 Classifieds . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . .26 Del Grande Dealer Group . . . . . .12-13 Dent Magic Tools . . . . . . . . . . . . . . .17 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .49 Eco Repair Systems of North America, LLC . . . . . . . . . . .39 ECS Automotive Concepts . . . . . . . .4 Elk Grove Toyota . . . . . . . . . . . . . . .48 Enterprise Rent-A-Car . . . . . . . . . . .30 Equalizer Industries, Inc . . . . . . . . .33 FBS Distribution CO., Inc. . . . . . . . .38 First Auto Group . . . . . . . . . . . . . . . .44 Ford Wholesale Parts Dealers . . . . .53 Galpin Motors . . . . . . . . . . . . . . . . .35 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . .11 GM Wholesale Parts Dealers . . . . . .54 Herkules Equipment Corporation . .22
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. ©2016 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
BASF’s Automotive Color Trends 2016/17 . . . 43 Blackburn OEM Wheel Solutions New Employee . 68 CAPA to Form Foundation of Chinese Standards. 71 CARSTAR to Hold MSO Network Event in New Orleans. . . . . . . . . . . . . . . . . . . . . . . . 29 Change Can Be Scary but Can Take You to the Next Level in Your Business . . . . . . . 38 Chief’s 30th Anniversary as SkillsUSA Sponsor . 44 CIC Finds More Questions Than Answers as it Begins Look at the “alt-OE” Parts Category. 33 Collision Repair Industry Mourns Loss of James Moy . . . . . . . . . . . . . . . . . . . . . . . . 62 Collision Repairers Provide Recycled Rides™ Vehicles for First Responders and K9 Partners . . . . . . . . . . . . . . . . . . . . . . . . 67 David Luehr Presents Twice at WIN Conference . 52 ECS Cautions Collision Repair Shops About Use of Non-Licensed VIN Certification Labels . . 55 Equalizer Hires Market Development Manager . 71 ETI Congratulates New Officers and Board Members for 2016-2017 . . . . . . . . . 66 Europe Plans Autonomous License Tests for Cars . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 FinishMaster’s Michelle Sullivan Honored as WIN’s 2016 Most Influential Woman. . . . . . 46 Florida Judge Dismisses “Price Fixing Claims” in MDL Case . . . . . . . . . . . . . . . . . . . . . . . 25 Ford Approves Two U-POL Aerosols for Shops . 64 GFS’s REVO Systems Included in Ford Program. . . . . . . . . . . . . . . . . . . . . . . . . . . 64 GM Manager Addresses State of Collision Repair Business; Considering Certification Program. . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Google, Uber & Others Form Coalition for Self-Driving Cars . . . . . . . . . . . . . . . . . . . . . 3 Homeland Security’s Bruce Foucart Talks to ABN About Counterfeit OEM Parts . . . . . . 1 House of Kolor Announces New Products for Spring 2016 . . . . . . . . . . . . . . . . . . . . . . . . 64 Hyundai & Cisco Connected Car Project . . . . . 62 IACA Workshop Focused on Paints & Materials Profitability . . . . . . . . . . . . . . . . . . . . . . . . . 15 John Wiedemann Given ETI’s Founder’s Award . 15 June 3 Deadline for CREF & AkzoNobel Grants . 68 Looming Supreme Court Ruling Overshadows Week of Hearings . . . . . . . . . . . . . . . . . . . . . 1 Mitchell Appoints Debbie Day as General Manager . . . . . . . . . . . . . . . . . . . . 66 Motor Guard Introduces Aluminum Spot Repair Tool. . . . . . . . . . . . . . . . . . . . . . . . . 68 New PartsTrader/CollisionLink Integration . . . . 15 New SATA Dry Jet 2 Introduced . . . . . . . . . . . 64 OSHA’s Final Rule to ‘Nudge’ Employers to Prevent Workplace Injuries, Illnesses . . . . . 63 Police Officer Found Guilty of Accepting Kickbacks from Local Repair Shop in MD . . 68 Poor Road Maintenance Baffles Driverless Cars . 4 Power of the Past, Force of the Future: WIN’s 2016 Educational Conference. . . . . . 56 Service King CFO Formally Recognized. . . . . . 39 Sno-Isle TECH Offers Free Summer School in WA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Steck Manufacturing’s Antenna Wrench II . . . . 69 Training Class Updates from Chief University, Website & Product Announcements by Chief . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Ultravent: INDASA’s New Multi-Hole System . . 69 Used Car Dealer to Pay $125,000 for Wrecked Car Scam. . . . . . . . . . . . . . . . . . . 10 Vehicle Repair Installment Plans For Sales Growth . . . . . . . . . . . . . . . . . . . . . . . 64 WIN© Honors 2016 Scholarship Recipients at Gala Awards Ceremony . . . . . . . . . . . . . 51 YANG Hosting Three Meet-Ups in June . . . . . . 14 Yoswick - Northern NACE, Risley Hired by SCRS, Collapse of M2, Insurance Advertising . . . . 50
Google has joined forces with Ford, Uber, Lyft and Volvo to help speed autonomous cars to the market. The companies announced the new coalition in April, which will be known as the Self-Driving Coalition for Safer Streets. David Strickland, formerly of the U.S. National Highway Traffic Safety Administration (NHTSA), will be the coalition’s spokesman. The group will work with regulators and the public to realize the safety and societal benefits of autonomous vehicles, according to a statement released. The market acceptance of semi-autonomous vehi-
Indexof Advertisers
REGIONAL Alhambra High Auto Program in CA Receives State and National Recognition . . . . . . . . . . 20 ASA Northwest Plans Informative Summer Retreat . . . . . . . . . . . . . . . . . . . . . . 9 Autonomous Trucks Conference in Las Vegas. . 4 CA Car Enthusiast and Auto Body Owner Takes First Place at Classic Car Show in FL . . . . . . 6 CAA San Diego Meeting: “We Don’t Pay For That” . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Caliber Collision & Allstate Give Mother’s Day Gift of Transportation to CA Mom . . . . . . . . . 6 California Color Source Hosts Client Luncheon . 14 California Dealership’s ‘It’s a Gas to Go to Class’ Giveaway. . . . . . . . . . . . . . . . . . . 14 Deputy’s Patrol Car Slams Into Toyota in San Carlos, CA in Pursuit . . . . . . . . . . . . . . . 6 Environmental Initiatives at CA Body Shop Lead to Cost Savings & Recognition . . . . . . 22 Mike’s Auto Body in CA Participates in Every 15 Minutes Program . . . . . . . . . . . . . 30 Minimum Wage Hike in CA Becomes Law; Overview of Implications for Employers . . . . 1 MSO Symposium Reveals Latest Industry Insights . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Product Media Events Hosts Spring Fling 2016 at West Coast Customs in CA . . . . . . 28 Rio Hondo College to Offer California’s First Degree for Hybrid/Electric Vehicle/Fuel-Cell Auto Technicians . . . . . . . . . . . . . . . . . . . . 10 Soup It Up: Restored Ford Showcases NV Parts Business . . . . . . . . . . . . . . . . . . . . 8
Google, Uber & Others Form Coalition for Self-Driving Cars
Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .36-37 Hyundai Wholesale Parts Dealers . .62 Kearny Mesa Subaru-Hyundai . . . . .47 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .57 Maita Subaru . . . . . . . . . . . . . . . . . .34 Mark Kia-Mitsubishi . . . . . . . . . . . . .40 Maserati of Marin. . . . . . . . . . . . . . .25 Mazda Wholesale Parts Dealers . . .69 McPeek Dodge of Anaheim . . . . . . .24 MINI Wholesale Parts Dealers . . . . .64 Miracle System / Equipment Gateway, Inc . . . . . . . . . . . . . . . . .28 Mitsubishi Wholesale Parts Dealers . .58 MOPAR Wholesale Parts Dealers . .41 Moss Bros. Chrysler-Jeep-Dodge . .19 NACE / CARS Trade Show . . . . . . .27 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .63 O’Reilly Auto Parts . . . . . . . . . . . . . .23 Orio . . . . . . . . . . . . . . . . . . . . . . . . .20 Polyvance . . . . . . . . . . . . . . . . . . . . .16 Pro-Tech Collision Automotive . . . . .18 Puente Hills Subaru . . . . . . . . . . . . .46 Riverside Kia . . . . . . . . . . . . . . . . . .50 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .55 SATA Spray Equipment . . . . . . . . . . .5 Shingle Springs Subaru . . . . . . . . . .51 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .59 Subaru Wholesale Parts Dealers . . .61 The Bay Area Automotive Group . . .31 Toyota Wholesale Parts Dealers . . .68 U-POL US . . . . . . . . . . . . . . . . . . . . . .9 Valley Auto Dismantlers Association, Inc. . . . . . . . . . . . . . . .8 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .67 Volvo Wholesale Parts Dealers . . . .71
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 3
Poor Road Maintenance Baffles Driverless Cars
Volvo’s North American CEO Lex Kerssemakers reportedly lost his cool as the automaker’s semi-autonomous prototype occasionally refused to drive itself during a press event at the Los Angeles Auto Show writes Alexandria Sage for Claims Journal. “It can’t find the lane markings!” Kerssemakers complained to Mayor Eric Garcetti, who was at the wheel. “You need to paint the bloody roads here!” Decaying infrastructure has become a roadblock to the development of self-driving cars, vexing engineers and adding time and cost. Poor markings and uneven signage on the 3 million miles of paved roads in the United States are forcing automakers to develop more sophisticated sensors and maps to compensate, industry executives say. Tesla CEO Elon Musk recently called the mundane issue of faded lane markings “crazy,” complaining they confused his semi-autonomous cars. An estimated 65 percent of U.S. roads are in poor condition, according to the U.S. Department of Transportation, with the transportation infrastructure system rated 12th in the World Economic Forum’s 20142015 global competitiveness report. Tesla, Volvo, Mercedes, Audi and others are fielding vehicles that can drive on highways, change lanes and park without human help. But they are easily flummoxed by faded lane markers, damaged or
noncompliant signs or lights, and the many quirks of a roadway infrastructure managed by thousands of state and local bureaucracies. In other developed countries, greater standardization of road signs and markings makes it easier for robot cars to navigate. In the U.S., however, traffic lights can be aligned vertically, horizontally or “doghouse” style in two columns. Pavement markings use paint with different degrees of reflectivity—or don’t exist at all. “If the lane fades, all hell breaks loose,” said Christoph Mertz, a research scientist at Carnegie Mellon University. “But cars have to handle these weird circumstances and have three different ways of doing things in case one fails.” To make up for roadway aberrations, carmakers and their suppliers are incorporating multiple sensors, maps and data into their cars, all of which adds cost. Mercedes says its “drive pilot” system works even with no lane markings. The system—which incorporates 23 sensors— takes into account guard rails, barriers, and other cars to keep cars in their lanes up to 84 miles (135km) per hour, under “suitable circumstances.” Estimates are that initial semi-autonomous features add $4,000 to a car’s price and that carmakers will have to spend more than $1 billion over the next decade in research investment for even more sophisticated autonomous features.
The European Transport Safety Council (ETSC) has used a new report to urge for an upgrade of the European Union’s safety homologation standards for new cars to include a driver’s license test for autonomous vehicles. While automated and fully autonomous cars are increasingly headline news, the ETSC has argued that EU legislation is a long way from where it needs to be to allow them to be widely used. “Automated vehicles are already starting to appear on Europe’s roads, but regulators are still stuck in the slow lane,” the ETSC’s Executive Director, Antonio Avenoso, said. “It is crucial that we get a much greater understanding of what the realworld safety benefits would be and what new risks would be introduced before these vehicles are put on sale,” he concluded. The report, “Prioritising the Safety Potential of Automated Driving in Europe,” admits the theoretical benefits of autonomous cars are huge, but cautions. “Other road users, such as cyclists and pedestrians, will not become automated – how will they manage in a world where they can no longer establish eye contact with drivers before crossing the road?”
An autonomous trucks conference was held in Las Vegas, NV May 16-18. Attendees had the opportunity to learn about the upcoming regulations, technologies and hear from states that have fully adopted the idea. With the potential cost-saving opportunities with autonomous technology, commercial trucks are now looking into advancing their systems to autonomous driving or semi-automated technology. Commercial trucks include fleets, OEMs, and Tier 1/2 companies researching and developing the technology to completely take the driver out of the car or at least provide an alternative to a human driver in the vehicle. This is done through a number of technologies installed in the truck using: sensors, cameras, “platooning,” LiDAR, RADAR, connectivity, hardware, software, and of course, security. For more information, visit www.autonomoustrucksevent.com.
Europe Plans Autonomous License Tests for Cars
Autonomous Trucks Conference in Las Vegas
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4 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Celphy Deals with Bad Road Maintenance
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 5
CA Car Enthusiast and Auto Body Owner Takes First Place at Classic Car Show in FL Red Bluff car enthusiast won first place on Feb. 28 at the 24th Annual Winter National Chevrolet Convention and Classic Car Show in Orlando, Florida with his classic 1958 Chevrolet Impala. Placing first in a Chevrolet car show is not uncommon for Gary Murray, owner and operator of Gary’s Auto
third at the 2002 Ventura show,” Murray joked as he recalled the time he brought three Chevrolets to a show and took the top three places. Murray’s love for 1958 Chevrolet Impalas began when he was 12 years old and saw his first ‘58 Impala while with his mother one day. “I said to myself, wow that is the most beautiful car I’ve ever seen,” Murray said. Murray has owned his shop since 1971, a year after he moved to Red Bluff from Ohio. Since then he has restored six ‘58 Impalas and has sold two, with his first restoration being in 1995. Some of his fondest memories involve his Gary Murray, of Gary’s Auto Body and 24-hour Towing, with time working and restorhis award winning 1958 Chevrolet Impala and his first place ing ‘58 Impalas to the plaque from the 24th Annual Winter National Chevrolet exact condition as they Convention in Orlando, Florida in February were made, Murray said. Body and 24-hour Towing on Antelope “Making a living doing what you Boulevard in Red Bluff, as he’s won love...I just really have no bad memfirst place at every car competition he’s ories,” Murray said. He has had a lot entered. of great times competing and restor“The only time I didn’t place ing classic car of all kinds at his shop. first is when I placed first, second and Winning to Murray means a
Caliber Collision & Allstate Give Mother’s Day Gift of Transportation to CA Mom
An Orange County, CA mother of four transitioning from a shelter to independent living received a special Mother’s Day gift from several local businesses who teamed up to provide her with a completely refurbished, practically brand-new car.
Kevin Dominicus, lead technician at Caliber Collision in Norwalk congratulates Naomi Stachowsky and Brian Swearingen and children on their new vehicle (Caliber Collision)
Naomi Stachowsky and Brian Swearingen and their children, Angelina, 11 and Robert, seven, were selected for the vehicle donation from Caliber Collision-Norwalk and Allstate Insurance as part of the National Auto Body Council’s Recycled RidesTM program. Caliber Collision technicians and teammates volunteered personal time to refurbish the vehicle with contributions
of parts, materials and services from several other local businesses, which also donated gift cards and items for the family. The family was nominated by Family Promise of Orange County whose mission is to help homeless and low-income families achieve sustainable independence. A domino effect of bad luck started when first, Brian lost his sales job in a company budget cut, and then Naomi, too, lost her retail job. Without income, they eventually lost their apartment and turned to Family Promise for shelter and support. They have both been working hard to find employment but it has been challenging without a car. “At Caliber Collision, our highest purpose is to restore our customers and individuals in the communities we serve to the rhythm of their lives. We wish Naomi a Happy Mother’s Day and are pleased to provide this vehicle donation to help her family get back on the road to a brighter future,” said David Goldstein, Caliber Collision vice president of operations. “We admire this family’s resilience and commitment to do whatever it takes to rebuild and provide better quality of life for their children,” said Phil Telgenhoff, Allstate field senior VP.
6 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
great deal, he said. The car is certified as being completely authentic and winning competitions like this shows that the craftsman work that goes into restoring such a rare vehicle is not going unnoticed. Judges at these competitions go over every detail of the vehicle to ensure it is the exact same as in 1958, Murray said. He even mentioned that the few points he got taken off his score, which his score was 986 out of 1,000, was because of the small stamp on the window of the Impala not being 100 percent accurate. Murray’s ‘58 Impala was featured in a calendar by the Classic American Muscle car club and has been featured on a variety of newspaper and magazine articles and television programs. Murray plans to continue restoring Chevrolet Impalas in the future and may compete again in June at the Summer National Chevrolet Classic show in Indiana. We would like to thank Red Bluff Daily News for reprint permission. Image Credit: Heather Hoelscher, Daily News.
www.autobodynews.com
Deputy’s Patrol Car Slams Into Toyota in San Carlos, CA in Pursuit
A San Mateo County Sheriff’s deputy patrol car crashed into a light blue Toyota in front of an auto body shop on the morning of April 25 in San Carlos. About 9:30 a.m., the sheriff’s department tweeted out a picture of the scene, saying that southbound
A San Mateo County sheriff deputy’s patrol car slammed into a Toyota in San Carlos. Credit: San Mateo County Sheriff
El Camino Real, from Olive Street to Arroyo Avenue was closed during the investigation of the pursuit crash. Who was being chased and why was not immediately disclosed. The sheriff’s Twitter account said that there were only minor injuries involved. We would like to thank NBC Bay Area for reprint permission.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 7
Soup It Up: Restored Ford Showcases NV Parts Business bledon White with Guardsman Blue Shelby-style racing stripes. Drake’s father owned a paint and body shop that specialized in restoring 1930s-era Fords and that sold Ford Model A parts. The family had moved from Wisconsin to Southern California when Scott Drake was 5. Now with his own car, he not only cruised Los Angeles boulevards, but scoured swap meets from Texas to the Pacific Northwest for auto parts he could refurbish and sell. During his senior year in high school, Drake fabricated a new seal for the trunk lid of a teacher’s Mustang and realized it made more sense to create new parts than to refurbish old ones. After graduation, he moved to Oregon to work at his brother’s Ford parts business, all the while using his own Mustang as a test bed for the Mustang parts he was crafting. In 1990, Drake and his wife, Suzanne, returned to California, where he opened his own business, producing and selling parts for 1964-1973 Mustangs, both his own and those made by others. Scott Drake’s 1965 Ford Mustang Fast forward a couple of decades and Drake Automotive Group is headquartered in Henderson, Nevada, with an
by Larry Edsall, The Detroit News
Wish you still had the car you bought for $300 when you were in high school? Scott Drake still has his. In 1975, Drake was 16 years old and paid $300 to buy a 1965 Ford Mustang that the previous owner had started to modify. So when Drake got
Scott Drake’s 1965 Ford Mustang has undergone its third restoration since he paid $300 for it when he was 16 years old
the car, it had a chromed-chain steering wheel, shag-carpet headliner and mini Moon-style hubcaps. Oh, and it also had a gold-colored paint job. With help from his father and his girlfriend, Drake removed the faded paint from the car’s fastback body, took it down to bare medal and turned it into something of a showpiece, Wim-
inventory of more than 10,000 parts for everything from classic Mustangs to modern muscle cars, plus off-road vehicles such as the Jeep, FJ Cruiser and Bronco as well. But our focus here is Drake’s original ’65 Mustang fastback. He restored the car again in 1992 and now he’s re-restored it yet again as a Mus-
Scott Drake’s 1965 Ford Mustang. Credit: Larry Edsall, The Detroit News
tang parts showcase that could serve as a blueprint for anyone wishing to do a restoration on a first-generation Mustang of his or her own. Now known as the “Pet Pony,” the 41-year-old car is complete with a high-performance 289-cubic-inch V-8 built to the same 306-horsepower specifications as Carroll Shelby did in 1966. It also features Drake’s own
Shelby oval air cleaner, Shelby valve covers, high-performance shock absorbers (the suspension also has been built to ’66 Shelby specs), hi-flow radiator, Monte Carlo bar, billet grille, side stripes, hood pins, pop-open gas gap, billet tail lamp bezels, sequential flashing tail lamps and more. The car also has ceramic-coated JBA “shorty” headers, T-5 transmission with Lakewood Motorsports bell housing and Hurst shifter, Currie Racing 9-inch rear end with 3.89 positraction, and Baer 4-wheel disc brakes. In a trick some car builders do to showcase different wheel styles, the driver’s side of the car has Legendary Magnum 500 wheels while the passenger-side has Legendary Styled Alloy wheels. Inside, the car features a Drake 6gauge instrument bezel with matching glove box, quick-release fire extinguisher holder, billet pedal covers and shortened turn-signal lever, as well as Pro Scat seats and Corso Feroce wood steering wheel. For information on the parts available for Mustangs and other vehicles, visit the www.drakeautomotivegroup .com website. We would like to thank The Detroit News for reprint permission.
CALL YOUR NEAREST PROFESSIONAL DISMANTLER TODAY! Aaron’s Auto Group Sun Valley (818) 768-9999 www.aaronsautogroup.com
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Tri County Auto Dismantlers Santa Paula (877) 667-2787 www.tricountyautoparts.com
World Auto Parts Dismantling Glendale (888) 782-8781 www.worldautodismantling.com
VADA Celebrates 37 Years Representing Dismantling and Recycling Businesses in Antelope Valley, Glendale, San Fernando, Ventura, Santa Barbara and Santa Clarita Counties. 8 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
ASA Northwest Plans Informative Summer Retreat by Chasidy Rae Sisk
During the weekend of June 23-26, the ASA Northwest will host its Semi-Annual Retreat and Management Conference at the Shilo Inn in Ocean Shores, WA. The agenda for the event is jampacked with educational sessions, networking opportunities, and plenty of fun for attendees.
Jeff Lovell, President and Executive Director of ASA Northwest, said, “We are very fortunate to have a good group of members willing to take time away from their businesses to join us at our retreats.” ASA Northwest’s Summer Retreat will begin on Thursday morning with a golf outing at Ocean Shores Golf Course. The association’s Board of Directors meeting will be held at 6 pm and will precede the evening’s Hospitality Suite.
Friday morning will begin at 7 am with breakfast, followed by the General Business Session at 9-11 am. The Ascettes’ Fun Event commences at 10 am with participants indulging in a scavenger hunt. From 4-6 pm, Summer Retreat attendees will enjoy bowling, games and food at Ocean Shores Bowl, and networking opportunities will continue into the evening with the association’s Hospitality Suite. After breakfast on Saturday morning, Rod Stephens from The Stephens Law Firm will present a seminar on a variety of issues impacting collision repair industry businesses. His presentation will cover estimates, invoices and signs as he explores the dangers of a consumer protection lawsuit when these items are addressed incorrectly. He will also teach attendees what they need to know about wages and hours to avoid paying damages and attorney fees, covering breaks, rest periods, overtime, flat rate employees, and exempt vs. non-exempt employees. Additionally, Stephens will discuss the National Labor Relations Act and its extension to non-union shops, best practices for avoiding an employment lawsuit, and how to effectively use non-compete and non-solicitation
agreements to protect a business. At noon, ASA National Executive Director Dan Risley will speak about the association’s current initiatives and deliver a state of the industry address.
The ASA Northwest Semi-Annual Summer Retreat and Management Conference will be held at the Shilo Inn in Ocean Shores, WA
At 7 pm, the Ascettes will hold a business meeting while mechanical and collision attendees will separate for their respective round table discussions. During Saturday evening’s Hospitality Suite, the Ascettes will hold a Raffle and Live Auction, and the event will conclude on Sunday morning with breakfast. Registration forms for ASA Northwest’s 2016 Summer Retreat are available on their website: www.ASA Northwest.com
CAA San Diego Meeting: “We Don’t Pay For That”
The California Autobody Association (CAA) San Diego Chapter was back with their third “We Don’t Pay For That” meeting on May 24. The association has held this meeting twice in the past two years. The open discussion gave attendees the opportunity to hear and learn from fellow CAA members, shop owners and managers, as well as representatives from Mitchell, CCC, and Audatex, on how to best handle insurance companies saying “we don’t pay for that.” A few topics of discussion included: how to capitalize on the features of estimating software, how to use the P-Pages and MOTOR guide, and how to use software or a calculator to determine the true cost of paint materials vs posted materials rate. It was open-discussion style meeting, so attendees were encouraged to bring any examples or questions they may have regarding this situation. Anyone interested in membership or renewal, contact Cindy Shi-llito at 714-944-4028 or radiatorgirl @socal.rr.com.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 9
Rio Hondo College to Offer California’s First Degree for Hybrid/Electric Vehicle/Fuel-Cell Auto Technicians Rio Hondo College’s Automotive Technology Program received approval April 27 to offer California’s first Associate of Science (AS) degree in hybrid/electric
An instructor in Rio Hondo College’s Automotive Technology Program tests a high-voltage battery as part of the program’s focus on alternative-fuel technologies. Rio Hondo College received approval on April 27 to offer California’s first Associate of Science degree in hybrid/electric vehicle/fuel cell technology
vehicle/fuel-cell technology, a high-demand career field. The approval from the California Community Colleges Chancellor’s Office came in 22 days – an incredibly
quick turnaround, said Professor John Frala, who designed the degree program. “Companies are calling me about employees already,” Frala said. “These cars are in heavy demand in California and there is a shortage of qualified technicians right now. Not many technicians out in the field are safely trained to work on high-voltage vehicles.” In spring 2015, the college was chosen to offer a Bachelor of Science (BS) degree in automotive technology. The BS degree becomes available in fall 2016. Frala, who worked on the BS program, began developing the concept for the new AS degree four years ago as part of a focus on alternative-fuel technology. In May 2015, Frala also led an effort that secured a $200,000 National Science Foundation grant to develop alternative fuels training. The funds accelerated the creation of the AS degree. To earn the AS degree, students will need to study electrical systems, chemistry, physics and applied mathematics – a combination of skills demanded due to the complex alternative-fuel vehicles. Frala said students in the AS program
Used Car Dealer to Pay $125,000 for Wrecked Car Scam
On May 2, Arizona Attorney General Mark Brnovich announced Discount Auto Sales LLC will pay $125,000 in restitution and attorney’s fees after selling unsuspecting customers previously wrecked cars that had been declared a total loss.
Discount Auto Sales and its owner, Eivan Shahara, admitted to violating Arizona’s Consumer Fraud Act and agreed to pay the state at least $125,000. Consumers who purchased a previously wrecked car from Discount Auto Sales may be eligible for restitution if they file a complaint with the Arizona Attorney General’s Office by April 2018. The Attorney General’s Office launched an investigation into Discount Auto Sales after receiving approximately 5 complaints from consumers about the condition of the vehicles sold. The investigation revealed that Discount Auto Sales failed to tell consumers about the accident, ownership, and repair histories of vehicles sold to consumers. From April 2012 to August 2014,
Discount Auto Sales purchased numerous vehicles from insurance companies at out-of-state wholesale auctions that specialize in the disposal of damaged and inoperable vehicles. Many of the vehicles Discount Auto Sales purchased at these auctions had been previously wrecked and/or declared totaled by the selling insurance company, but were not branded as “salvaged” or “inoperable” due to loopholes in the other states’ vehicle branding laws. After purchasing the vehicles, Discount Auto Sales would bring the vehicles to Arizona, perform substantial repairs, and then offer the vehicles for sale without telling the public about the vehicles’ unfavorable histories. Instead, Discount Auto Sales told consumers that it had no foreknowledge of the vehicle’s accident or repair history even though they had performed the vehicle repairs themselves. Anyone who purchased a non-repairable used vehicle from Discount Auto Sales should contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6504, or outside the metro areas at (800) 3528431. Bilingual consumer protection staff is available to assist. Consumers can also file complaints online by visiting the Attorney General’s website at https://www.azag.gov/complaints/ consumer.
10 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
will qualify to continue in the BS program as well as automotive technology programs at California State University, Los Angeles. They can also earn Certifi-
Rio Hondo College students inspect a hydrogen fuel cell as part of the Automotive Technology Program’s focus on alternative-fuel technologies. Rio Hondo College received approval on April 27 to offer California’s first Associate of Science degree in hybrid/electric vehicle/fuel cell technology
cates of Achievement in the alternativefuel technology field. “This new degree adds another avenue to success for Rio Hondo students,” Board of Trustees President Mary Ann Pacheco said.
Sno-Isle TECH Offers Free Summer School in WA
Registration for free summer school at Sno-Isle TECH Skills Center is now open. Eighth through 11th grade students are invited to spend three weeks of summer exploring one of two dozen career opportunities at Sno-Isle while also earning 0.5 high school elective credit. Summer school runs from June 23-July 13. Classes are held 8 a.m. to 3 p.m. Monday through Friday. No classes on the Fourth of July. Sessions will be available in aerospace, applied physics through engineering, automotive technology, auto body, construction, diesel power technology, and welding. Applications are now available online. Acceptance is on a first-come firstserved basis. This year, applications will be time stamped based on when you started filling it out, not when you completed it (so take your time and fill everything in). For information and registration, go to http:// snoisletechtest.com/sireg/indexss .php. Students must provide their own transportation. Free lunch service will be available. The Sno-Isle TECH Skills Center is located at 9001 Airport Road (near the Boeing plant) in Everett, WA. Visit http://www.snoisle tech.com.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 11
DEL GRANDE DEALER GROUP San Jose main distribution center with remote distribution centers in Sunnyvale, Fremont and Concord! Capitol Buick GMC Russ or Paul
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Del Grande Dealer Group is a repeat San Jose Mercury News Top Work Place award winner.
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12 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
DGDG Collision Parts Center The largest family-owned automotive group in the bay area. Speak with any of our wholesale parts professionals and you will see what everyone is talking about. From up to date inventories tailored to your specific needs, to multi-level product support to get you through a job start to finish, we will go out of our way to exceed your expectations.
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All DGDG dealers are now participating in PartsTrader. www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 13
California Dealership’s ‘It’s a Gas to Go to Class’ Giveaway
Two lucky and hard-working students and two teachers will head into summer driving free Ram pickup trucks or Fiat 500X sport-utility vehicles courtesy of Victorville Motors and Desert FIAT of Victorville, CA. Each year, Victorville Motors, a Chrysler, Dodge, Jeep® and Ram dealership in the High Desert region of Southern California, recognizes area students and teachers who each have achieved perfect attendance during the school year. The “It’s a Gas to Go to Class” giveaway was launched in the 2011-2012 school year. “The programs culminate each year with a celebration...students, teachers and support staff with perfect attendance have a chance to not only win a new vehicle, but also a bevy of prizes,” said Victorville Motors Chief Operating Officer Tim Watts. “But this is not just a car giveaway, it’s a celebration of education in the High Desert. This is our baby and we’re proud of it. We’re helping to get kids into the classrooms.” This year’s drawing was held on Saturday, April 30 at the High Desert Event Center in Victorville, CA. There were 15 participating high
schools in this year’s program, giving more than 22,000 students the chance at winning a pickup truck. More than 8,000 teachers and classified staff members from 120 participating schools had a chance to receive the 500X sport-utility vehicles and the Fiat 500c. In the summer of 2011, Victorville Motors noticed that the previous few years had been especially hard on local schools. With budget reductions and crucial programs being cut, schools (students, teachers, staff and administrators included) were finding less and less enthusiasm to go to school. Responding to the need, Victorville Motors developed and launched “It’s a Gas to Go to Class” to encourage and reward students to attend class. The goal was simple: raise overall attendance levels and with that additional funds would be collected from the state for the schools. Additionally, the dealer’s leadership hoped to stimulate student/parent/school interaction, campus excitement and a positive atmosphere within their local high schools. For more information, visit www.victorvillemotors.com/itsagas .htm.
14 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
YANG Hosting Three Meet-Ups in June
The Young Auto Care Network Group (YANG) of the Auto Care Association is hosting three regional meet-ups for young auto care professionals in California, Florida and Washington, D.C. in June. Friday, June 10, 6 - 7:30 p.m. Sandestin Golf and Beach Resort 9300 Emerald Coast Pkwy Destin, FL. 32541 Bahia Penthouse Host: AAAS Monday, June 13, 6 - 7:30 p.m. Villain & Saint 7141 Wisconsin Avenue Bethesda, MD 20814 Host: Auto Care Association
Thursday, June 23, 4 - 6 p.m. AllTrade Tools, LLC 1431 W. Via Plata Long Beach, Calif. 90810 Host: AllTrade Tools and CAWA All young professionals, both members and non-members, under the age of 40 in the industry are encouraged to attend. Interested attendees should RSVP to a particular meet-up location at www.autocare.org/yangevents.
California Color Source Hosts Client Luncheon
California Color Source, Inc. hosted the first of an ongoing client luncheon series in April with guest speakers from Toyota Motor Sales USA, Inc. The focus of the discussion was the importance of OEM collision repair training on today’s increasingly complex vehicles. Over 50 attendees from the Greater Bay Area learned how to get involved in the Toyota training program as independent collision repairers. Eric Mendoza, Agustin Diaz and Yasuhiro Takamura from Toyota Motor Sales USA, Inc. in Torrance, C. also updated attendees on accessing the latest repair information and techniques. Greg Decker of California Color Source showed attendees that one in four insurance repairs in the Bay Area are Toyota vehicles, which is why the company is interested in assisting their clients in becoming Toyota trained. “The OEM’s will continue to have an increased role in referrals as they want to maintain safety and brand loyalty through quality repairs with factory trained technicians” stated Decker. California Color Source, Inc. is a single-line Axalta distributor servicing collision repair clients in the greater San Francisco Bay Area since 1999.
New PartsTrader/ CollisionLink Integration
Original equipment (OE) parts dealers and their collision shop customers can now use a single streamlined workflow for electronic parts ordering with the software integration of PartsTrader® and CollisionLink®. Over 1,700 dealers are currently using this integration. “With the integration enabled, our parts team is able to match parts numbers quickly and efficiently. Incorrect parts numbers are quickly identified and corrected, saving us considerable time, especially on larger jobs,” said Steve Richardson, parts manager with David McDavid Honda of Irving, TX. “The increase in accuracy has also helped lower our return rate as well.” Collision repairers submitting their quote requests in the PartsTrader application will receive quotes back from participating dealers in PartsTrader with approved OEM pricing programs applied. Similarly, dealers will use the CollisionLink system to apply available OEM pricing programs to PartsTrader quotes and orders without leaving the CollisionLink solution. The integration is being rolled out across the US.
3M Kicks-Starts CREF Drive for Donations
3M began the Collision Repair Education Foundation’s (CREF) “summer drive” for product donations of tools, equipment, and supplies through a $1.1 million donation of color match film products to 300 collision schools programs. The CREF is seeking industry members’ support in providing in-kind donations to assist high school and college collision repair school instructors who face limited program budgets. These tax-deductible donations will be distributed to collision school programs at the beginning of their fall semester. “We know that collision program budgets can be limited, and it is important that our future technicians can learn using the latest technology available to better prepare them for entering the workplace” said Jim Falteisek, US sales & marketing director for 3M Automotive Aftermarket Division. Donations can be made by contacting Director of Development, Brandon Eckenrode at 847-4635244 or Brandon.Eckenrode@edfoundation.org.
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John Wiedemann Given ETI’s Founder’s Award
John Wiedemann was awarded ETI’s 17th Founder’s Award at this year’s ToolTech 2016 in Monterey, California. The ETI Founder’s Award was established in 1985 to honor individuals who have made numerous important contributions to the institute. It is given when deserved and is not subject to any time schedule.
IACA Workshop Focused on Paints & Materials Profitability
The Idaho Autobody Craftsman Association (IACA) held a workshop in Boise, ID on Monday, April 4. According to Matt Thornton, IACA President, “Our April meeting was well-attended, and I think it will make a positive difference to the bottom line of all who attended.” John Niechwiadowicz from BASF spoke on the topic of paints and materials profitability, and the educational session was sponsored by BASF and National Coatings Systems. Nearly 30 association members attended the informative all-day event.
John Wiedemann received ETI’s 17th Founder’s Award
As with most trade associations, ETI thrives on volunteerism from its members as well as its business partners. The institute said Wiedemann has demonstrated unselfish dedication to the principles that drive ETI since he began his involvement over 26 years ago.
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16 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Shop Strategies
Stacey Phillips is the assistant editor at Autobody News magazine. She has more than 20 years of experience writing for a variety of publications. She can be reached at sphillips@autobodynews.com.
CA Body Shop Owners Recognized for Achievements After Risking Everything with Stacey Phillips - ASSISTANT EDITOR
With only a toolbox and $800 to cover his first month’s rent, Francisco Mayoral opened JC Collision Center in Bakersfield, CA in 2007. After many years of hard work and dedication, his body shop was named Family Owned Business of the Year as part of the
2016 Kern County Small Business Success Awards. The award was presented on May 5 during National Small Business Week. Francisco and his wife Elizabeth operate the body shop, which expanded last year into a 58,000-squarefoot facility that sits on a 2.5 acre lot with the capacity to repair 100 vehicles. Autobody News reached out to the Mayorals to find out more about JC Collision (JC stands for Jesus Christ) and what makes their business so successful.
Q:
Congratulations on receiving the award. What was your reaction when you found out you were going to be honored and what does the recognition mean to you and your shop?
Elizabeth and Franciso Mayoral, owners of JC Collision in Bakersfield, CA, received a certificate of recognition in May
We were shocked. My husband A: and I couldn’t close our mouths. Then I noticed tears were
coming from Francisco, the founder. Suddenly, we started calling our friends and family. Hearing that news meant so much for us. After so much effort and sacrifice, we realized it was worth it.
have when they try to steer customers away from their shop of choice and take it to their DRP shops. I clearly let them know that by supporting small local businesses, they are helping a kid go to soccer camp and putting food on a family’s table, rather than helping a CEO buy a new Ferrari for his wife.
the United States in search for a better future. I started working in a body shop cleaning the bathrooms, then I became a painter’s helper and later an auto body technician. It was then when I knew what I wanted for my future—to one day have my own shop. I had a vision to help many children to reach their dreams. So I started working on my project by spending most of my paychecks buying all of the necessary tools to fix the cars. In 2007, I decided to take the risk and opened my own auto body shop. My wife was really scared because even though she had being a business- and financiallydriven woman, at this time the country was going through the worst economic time ever. But my vision and faith was stronger than anything else. (Francisco) I clearly remember his first customer. It was an insurance job of about $3,500. Suddenly, more cars started coming. It was then when I decided to leave the real estate business and joined him to help him make his dream come true. Francisco wanted to show the community what he was able to do, by offering “The Best Job at the Best Price.” A year later, we moved into a better location with more traffic and seven years later we opened our new and bigger facility. (Elizabeth) What do you tell your customers about the importance of supporting small, local businesses and the ability to choose the shop of their choice?
It hasn’t being easy, especially A: having no working capital or saving in a reserve account. Every
us about the dream Q: toCanopenyouJCtellCollision? Growing up in a destroyed How have you built a successA: Q: family and in a bad neighborful business through reinvesthood, at the age of 18 I immigrated to ment and not borrowing?
Q:
dime that we would generate has being reinvested back into the shop to buy equipment such as two frame ma-
The collision repair shop expanded last year and now has the capacity to repair 100 vehicles
chines, two spray booths and one welder machine as well as continuing to educate ourselves and our employees to help manage our shop more efficiently. For at least five years we showed no profit at the end of the year. I remember Fridays after paying everyone else, we’ll keep just enough to cover our household expenses. During all these years, we have learned to live under a budget, having the vision that one day we’ll have enough to take a nice vacation and to send our kids to college without having to ask for any government loan.
Is there anything else you Q: would like to add about your business or the industry in general?
What I love most about my job I believe success is not a desA: A: is not just repairing the vehitiny; it is a journey along with cles, but educating our community many challenges, but the key to suc-
about their rights as consumers. I dislike the power insurance companies
ceed is having faith in God, and truly See Risking Everything, Page 18
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 17
Impact Beyond Hourly Workers But the state minimum wage increase af-
fects more than the nonexempt workers who received the minimum wage; the increase also affects the classification of employees as exempt versus nonexempt. In order for employees to qualify as “exempt” under any of the six exemptions in California, they must meet the salary-basis test, which is two times the monthly minimum wage. Under SB 3, that amount in January 2022 will rise from the current annual salary of $41,600 to at least $62,400, which is an increased cost to employers of $20,800 per exempt employee. Employers should be mindful of the effect of the minimum wage increase on exempt/nonexempt classifications and ensure that employees meet the salary-basis test for the particular exemption claimed. Also, certain commissioned inside sales employees under Wage Orders 4 and 7 can be eligible for an overtime exemption. Generally, the exemption applies if the employee earns more than 1.5 times the minimum wage each workweek, and more than half of the employee’s compensation represents commission earnings. Employers will need to make sure that commissioned inside sales employees continue to meet this test after
Continued from Page 17
Continued from Cover
believe in what your vision is. Stay focused on your goals because during the journey you’ll find many obstacles, but as long as you maintain your focus, you will get there. Don’t be ashamed to ask for help. Find a mentor or consultant. There are many companies out there that are willing to teach shops how to manage and be successful. (Elizabeth) I believe that every child of the world deserves an opportunity to have a better life. Some come from good families but many come from destroyed families like me. This is the main reason for wanting to own a business, to be able to support any child of the world in reaching their goals by sharing the blessings God has given me. (Francisco)
ation (ASA) has been a proponent of S.B. 436 since its introduction and has sent letters of support to the New Hampshire legislature. Robert L. Redding Jr., ASA Washington, D.C., representative, wrote in a March 2016 letter to New Hampshire policymakers: “ASA supports requiring insurers and auto collision facilities to provide disclosure of part type, description and warranty information to the consumer for all part types. Consumers will be best served if written consent is required for the use of these parts. ASA believes a competitive parts marketplace of tested and verified quality parts is in the best interest of the motoring public. ASA opposes parts policies that focus solely on cost efficiency without regard to certification, verifiable quality and safety.” S.B. 436 is currently before the New Hampshire governor for final approval. To view the text of the legislation, visit the ASA website at www .TakingTheHill.com.
Continued from Cover
Minimum Wage Hike
ployees no less than the state minimum wage per hour for all hours worked. Because California’s state minimum wage is higher than the federal minimum wage of $7.25 per hour, employers will be required to pay the state rate. When state and federal laws differ, employers must comply with the more restrictive requirements. The obligation to pay the minimum wage can’t be waived by any agreement, including collective bargaining agreements.
Overtime Rate The minimum wage rate change affects overtime. Effective January 1, 2017, employees who work for minimum wage and perform work that qualifies for overtime must be paid $15.75 per hour for time and one-half or $21 for double-time. This is an increase from the 2016 rates of $15 per hour (time and onehalf) or $20 per hour (double-time).
Risking Everything
To contact JC Collision, email info@ jccollisioncenter.com or call 661-3981819.
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the January 1 minimum wage increase. Outside salespeople do not need to meet the minimum salary requirements.
Notice Requirements The minimum wage increase affects employer notice requirements related to the minimum wage posting, itemized wage statements and wage notices. First, employers must post California’s official Minimum Wage Order (MW-2014) in a conspicuous location frequented by employees. The official notice includes the increase for January 1, 2016; however a new notice will be needed for 2017. Second, California employers must provide each employee with an itemized statement, in writing, at the time wages are paid (Labor Code Section 226). Among other mandatory information, the itemized wage statement must include all applicable hourly rates in effect during the pay period and the corresponding number of hours the employee worked at each hourly rate. Third, employers in California must provide nonexempt employees with a wage notice pursuant to Labor Code Section 2810.5. The written notice must be provided at time of hire and again within seven calendar days
after a change is made to any information in the notice. Among other things, employers are required to notify nonexempt employees, in writing, when there is any change to: • The employee’s rate of pay; • Any overtime rates of pay; and • Any allowances, such as meal or lodging allowances, claimed as part of the minimum wage (Labor Code Section 2810.5).
NOTE: If an employee’s rate of pay will increase on January 1, 2017 due to the minimum wage increase, the employee must receive notice from his/her employer by January 7, 2017. The separate wage notice is not required if the employer has reflected the change on a timely itemized wage statement, if the statement meets all legal requirements. CalChamber Live Webinar A review of how to correctly classify and pay exempt employees will be presented by California Chamber of Commerce employment law experts in a live webinar on Thursday, April 21. To register, visit www.calchamberstore.com. We would like to thank California Chamber of Commerce for reprint permission.
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Alhambra High Auto Program in CA Receives State and National Recognition by Joseph Bustos, Martinez News-Gazette
Alhambra High School has a few new trophies to show-off, thanks to the toptier talent coming out of the school’s fantastic auto program. Fifteen Alhambra High students competed in SkillsUSA California, a statewide career and technical education competition where participants showcase their career skills. AHS students competed in auto repair, diesel repair, welding, motorcycle repair, and technical math. The event took place in San Diego in early April. The students are led by Automotive Technology Instructor Brian Wheeler, who speaks with pride about his, what he calls “a great crop of students.” He calls it a “privilege” to spearhead the class for the last six years. Sophomore Kevin Christensen took top honors by winning the gold medal for the state in diesel equipment technology, and will be moving onto the national competition in Louisville, Kentucky at the end of June. Christensen took home a $29,000 scholar-
ship to UTI Auto Tech Institute as well. Christensen’s dedication, competitiveness, and levelheadedness make him well suited for the pressures of competition. “He’s just super level.
Kevin Christensen receives his gold medal at the SkillsUSA California competition. Credit: Courtesy of Alhambra High School
He’ll tell you ‘I want to do this, I’m willing to train, and I’m willing to work hard. Let’s go,” explained Wheeler. “It’s the kind of passion that will get you through regardless.” Meanwhile, senior students Alex Daberdaku – whose dad runs Luigi’s Deli in downtown Martinez– and Elizabeth Doty took fourth and third place and a $3,000 scholarship respectively in the SkillsUSA automotive championships.
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The two talented students are no strangers to success. Earlier this year the two seniors competed as a team for the Top Tech Challenge at the UTI, taking home $10,000 scholarships each and winning $8,000 in tools for the school’s auto workshop. And just prior to the SkillsUSA event, the students went head to head with a team of community college students, defeating them in a diagnostics competition sponsored by numerous shop owners known nationwide. Wheeler calls Alex a “car guy through and through.” He says his competitiveness is what helped pushed them over to just barely win at UTI. A big reason the school’s program was recertified by the National Automotive Technicians Education Foundation – which certifies more than 400 programs across the nation – is thanks to Elizabeth, according to Wheeler. “They’re both exceptional students,” Wheeler proclaimed. A recurring theme of Wheeler’s class is furthering knowledge on your own time. He admits himself that with the amount of different career technical fields he teaches, he can’t be an ex-
pert in all of them. Wheeler on his own time is seeking his Masters at Touro University in Educational Technology. He challenges students to be resourceful, to seek information on their own alongside him, and to bring it back to the class. And he subsequently does his part by seeking out people in the community to help the students learn. He tells them “the most valuable thing you’re going to learn, is to learn how to learn.”It’s that kind of drive of constant improvement that has pushed the program forward. Wheeler lamented that in the past, the furthest the class could get was eighth place in regionals. “Slowly but surely I figured out the competition and it changed what I taught, how I taught, and it really drove my instruction,” he said of how they used the competition to measure their direction towards an effective program. “I figured if these guys know this stuff then my guys should know this stuff,” Wheeler explained. He says that’s one of the big benefits of having a sophomore student like Christensen. He’ll be able to compete at a high level this year and bring that knowledge back to the classroom.
Both Elizabeth and Alex gained skills on their own time as well, interning at BMW and Mitsubishi respectively during the summer. It gave them the experience to pull off a narrow win during a tire rotation tiebreaker competition at UTI that Wheeler described as nail biting and surprisingly exciting. Wheeler knew that thanks to their internships, Elizabeth and Alex had the contest in the bag. The duo had a significant lead over the other team, but due to the slow speed of the lift in comparison to the other team’s, the lead was negated. “Alex’s arm was like the Six Million Dollar Man,” recalled Wheeler, of Alex torqueing the wheels at the last second. The two barely won the competition by two or three seconds to a chorus of audience applause. “I was so proud. I’ve never seen a win like that,” expressed Wheeler with pride. We would like to thank Martinez News-Gazette for reprint permission.
ARA Members Discuss Issues at State Legislative Summit & Hill Day On April 18 and 19, the Automotive Recyclers Association (ARA) headed to Washington DC for its 9th Annual ARA State Legislative Summit and Hill Day. ARA members from over two dozen states gathered in the nation’s Capitol to discuss the state of the professional automotive recycling industry and to represent the interests of ARA member businesses. Michael Wilson, CEO of ARA, says, “Those ARA members who take time away from their businesses to participate in these important annual Association events came for a variety of reasons: for the greater good of the profession, to be part of the Association’s presence on the Hill, to represent the industry as a whole, as well as to communicate issues important to their own businesses.” Wilson continues, “The events are an important opportunity during the year to meet face-to-face to share information and resources, such as legislative language, past experiences and issue strategies. The group’s ultimate goal is to make the voice of the professional automotive recycling industry heard on Capitol Hill and to enhance ARA’s grassroots advocacy structure.” The 9th Annual State Legislative Summit on April 18 began with an overview of active legislation impact-
ing automotive recyclers on the state level. Representatives from ARA’s affiliate chapters discussed their specific legislative successes and challenges, as well as active legislation and state association goals. The day concluded with an in-depth briefing for the following day’s Congressional appointments, and that evening, ARA members enjoyed a Welcome Reception at the W Hotel in downtown DC. Association members visited lawmakers and engaged in over 60 meetings with members of Congress and other lawmakers. On Capitol Hill, ARA representatives built on last year’s legislative successes regarding a provision signed into law as part of the Fixing America’s Surface Transportation (FAST) Act. The first Federal law to provide long-term funding certainty for surface transportation in over a decade, the FAST Act also requires automotive manufacturers to provide OEM parts data for recalled parts. According to Wilson, “Access to OEM parts data has never been more important than today. Now that Congress has passed a law requiring automakers to make this information available for recalled parts, the professional automotive recycling industry and others in the parts supply chain
need the ability to receive parts data for all vehicles.” The association also presented its Congressional Champion Awards. In the House, the award went to Rep. Adam Kinzinger (R-IL) who last year introduced the provision requiring auto manufacturers to provide OEM part information for recalled parts and worked to get it adopted in the Highway bill and accepted by the Senate. These awards were presented on April 19 and the Congressman received a standing ovation when he arrived. In the Senate, ARA member Shannon Nordstrom of Nordstrom’s Automotive in South Dakota, along with ARA CEO Michael Wilson and Director of Policy Delanne Bernier, presented Senator John Thune (RSD) with the first ever ARA Senate Congressional Champion Award. Senator Thune is Chairman of the Senate Commerce Committee. ARA President Mike Swift commissioned the fabrication of that award which was made out of a piston. ARA’s 73rd Annual Convention and Expo will be held October 26-29 in Baltimore’s Inner Harbor, attracting automotive recycling professionals from around the world. Registration is now open at www.araexpo.org.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 21
Environmental Initiatives at CA Body Shop Lead to Cost Savings & Recognition by Stacey Phillips, Assistant Editor
A California body shop was recognized for its commitment to a climatefriendly environment and its efforts to reduce its carbon footprint. Luxury Auto Body was presented with the CoolCalifornia Small Business of the Year Award by California Air Resources Board in March. “When we found out that we won the award, we were thrilled and honored as we are the only San Diego business to have ever received the CoolCalifornia Small Business of the Year Award, let alone an auto body repair facility,” said Ron Melanson, general manager at Luxury Auto Body, which was established in 1999 and has two facilities. Judy A. Nottoli, Air Resources Engineer at the California Air Resources Board, said the CoolCalifornia Small Business Awards program was initiated in 2009 and honors small businesses that take voluntary actions to reduce their carbon footprint, “Luxury Auto Body was selected as a Business of the Year because they have taken a proactive approach in the areas of compliance and conservation and were able to demonstrate their cost savings and reductions for the actions they implemented to reduce their carbon footprint,” said Nottoli. She said there are over 3.6 million small businesses in California, and they can have a tremendous impact in helping reduce greenhouse gas emissions, save water, improve energy efficiency, and reduce/recycle/repurpose water. “Sustainability improves business profitability and is good for the environment,” said Nottoli. “Luxury Auto Body serves as an example of a sustainable business for others to follow.” Some of the environmental improvements Luxury Auto has implemented include:
■ installation of a wash mat wastewater collection and recycling system to prevent run off and ground contamination; ■ skylights in the body shop to reduce the use of overhead lighting during daylight operations; ■ an energy-efficient rotary air compressor system; ■ a new energy-efficient spray booth equipped for the waterborne paint process, which reduces the use of ma-
terials and energy; ■ additional recycling for waste items such as aerosol containers, paint lids and liners; ■ a dedicated recycling container for all vehicle debris and contracted with a hauler for proper disposal;
Early in 2011, Melanson decided to take initiative and ask Eric Luther, the small business liaison, to inspect and review the processes conducted at Luxury Auto. “We found that we were not only doing a great job but also identified areas of improvement to put
Luxury Auto Body was presented with the CoolCalifornia Small Business of the Year Award by California Air Resources Board. (l to r) Lydia Vargas, Carlos Vargas, County Supervisor Ron Roberts, Ron Melanson and Stephanie Melanson
■ turf irrigation was shut off and hardscape installed with drought-tolerant plants; and ■ a rain barrel was added for watering drought-tolerant plants and vehicle paint preparation.
The total investment of the shop’s water conservation equipment was approximately $4,000, which Nottoli said resulted in a 30 percent decrease in water usage, saving the company $1,050 per year. The additions of skylight windows saved the company more than $900 a year. “Regardless of what side of the argument you are one with respect to climate change, it is important that our industry recognize what we do every day does have an impact on the environment,” said Melanson. “We can all do more to reduce our carbon footprint; being a clean operator doesn’t happen without added costs and effort, but just being compliant isn’t enough.” Several years ago, the Air Pollution Control District (APCD) set up a small business assistance program to educate the auto body industry and offer guidance in regards to compliance and record keeping. “As most shops do in our industry, we relied on the annual inspection process to learn of the latest compliance issues and whether we met the standards,” said Melanson. “We wanted to be proactive and go above and beyond just being compliant.”
22 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
ourselves in better standing without respective governmental agencies,” he said. Partnering with APCD, Luxury Auto created compliance training videos
during the summer of 2011 for San Diego County repair facilities. They are also utilized by APCD for classroom training. The company received the Blue Sky Leadership Award that same year to honor its efforts in maintaining a clean environment and utilizing resources to ensure a sustainable future. Over the years Luxury Auto Body has continued to implement changes to its business to reduce energy; conserve water; re-use ink and toner cartridges, lids and liners in the paint department as well as sand paper; and recycle. “It’s not often that our industry is looked at in a positive way with respect to the environment,” said Melanson. “We have had a great response from our customers regarding the award; it just shows if you care about the environment, then you care about the consumer.” To apply for a CoolCalifornia Small Business Award, visit www.Cool California.org (under the small business tab). To become a certified green business in California, visit www.green businessca.org.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 23
Continued from Cover
Supreme Court Ruling
Insurance (CDI) have engaged in several legal skirmishes over regulations adopted pursuant to UPA,” Roth explained. “Some of the recent decisions and rulings have raised concerns about the enforceability of those regulations, as well as costs. One case is pending in front of the Supreme Court and may fundamentally alter the way the Commissioner uses that rulemaking authority. This hearing will examine that history and status of these cases and potential legislative solutions.” Roth was referring to California Supreme Court’s review of ACIC v. Jones, which questions the CDI’s regulatory authority. The California Autobody Association (CAA) has warned that the insurance companies might try to sue on the grounds of regulatory overreach, according to CAA Lobbyist Jack Molodanof. While shop owners are ecstatic about the fact that steering and unsubstantiated labor surveys are finally being dealt with by the CDI, insurance companies claim that both proposed regulations will cost them too much money and that the consumers will suffer in the end. Five property casualty insurance trade associations strongly oppose both regulations and representatives from each were on hand at the hearings. The American Insurance Association (AIA), ACIC, the Property Casualty Insurers Association of American’s California voice, the National Association of Mutual Insurance Companies (NAMIC), the Pacific Association of Domestic Insurance Companies (PADIC) and the Personal Insurance Federation of California (PIFC) attended both hearings. CAA Executive Director David McClune believes that ACIC v. Jones has no merit and is not concerned that it will pass. “The insurance companies are putting some pressure on the Head of the Insurance Committee, so they had this hearing and we believe that it
backfired,” McClune said. “If the Insurance Commissioner does not have authority in these matters, than why does the position even exist?” Commissioner Jones was prepared at the hearing and answered everything clearly and succinctly, McClune said. “The fact that they’re questioning his power just shows that the insurers are concerned about the proposed anti-steering and labor rate survey regulations. Jones has their attention and when that happens they start threatening civil suits, so maybe that’s where we’re headed.” After decades of inactivity and former insurance commissioners who did not see a need to act on anti-steering and sketchy labor rate surveys, McClune is hopeful. “Commissioner Jones
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has at least two more years left in this position, unless something unforeseen takes place,” McClune said. “So, these proposed regulations are much-needed and something that should have taken place many years ago. The fact that the insurance companies are not pleased with these proposed regulations just shows that they are something we need in the collision repair industry. It’s all about leveling the playing field, because all our body shops really want is the ability to charge fair rates based on the market and not have their customers steered to other shops.” CAA Lobbyist Jack Molodanof was encouraged about the hearings but also wary of what the insurance companies may do next. “The hearings went well and there wasn’t anything unex-
pected,” Molodanof said. “I testified at the anti-steering hearing and laid out CAA’s stance and the thinking behind it. The insurance companies have become more and more clever about how to dissuade and discourage customers from taking their cars to the shops of their choice. We believe that the consumer should have the right to take their car to any shop they want to and misleading them is unfair and illegal.” As far as ACIC v. Jones, what does Molodanof think about the status and possible outcome of the case? “Attacking the commissioner’s authority was going to happen at some point anyway, so we’re not surprised,” he said. “It could take 3-8 months to get the Supreme Court decision, but in the meantime, it’s still business as usual.”
Florida Judge Dismisses “Price Fixing Claims” in MDL Case by Stacey Phillips, Assistant Editor
A Florida judge ruled in May that the price fixing claims brought forward in the multi-district lawsuit were not enough to reconsider the antitrust claims, which were dismissed earlier this year. The new evidence was presented to Judge Gregory Presnell in March by Eaves Law Firm of Jackson, Mississippi on behalf of five states: Indiana, Mississippi, Louisiana, Tennessee and Utah. Earlier this year, Presnell dismissed the plaintiff’s antitrust claims with prejudice (meaning that the claims cannot be refiled). Following this decision, Eaves Law firm submitted new evidence to the Florida courts asking Judge Presnell to reconsider the dismissal of the antitrust complaints. Allison Fry, of Eaves Law Firm, said there are limited grounds in which a court can reconsider an order, including the availability of new evidence. According to Judge Presnell, the plaintiffs made no such showing that the evidence was previously unavailable.
“Where a party attempts to introduce previously unsubmitted evidence in support of a motion to reconsider, the party must make some showing that the evidence previously was unavailable,” Presnell wrote in court documents. “The closest they come is a statement that the new evidence was unavailable at the time their Second Amended Complaint was filed. However, the Second Amended Complaint was filed on March 21, 2015, while the Order was not entered until nearly a year later—on February 22, 2016. The Plaintiffs offer no explanation for their failure to bring this information before the Court during that time.” He continued that, “Even if they had provided a legitimate justification for their delay in raising it, the Plaintiffs’ ‘direct evidence of price fixing’ would not suffice to save their antitrust claims, which were dismissed due to a failure to properly allege the existence of a collusive agreement to fix prices.” Presnell said that the statements provided did not identify any defendants that allegedly participated in the agreement to fix prices and said, “These vague assertations do not add
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any weight to the Plaintiffs’ existing allegations.” The following statements he was referring to were submitted to the courts by Eaves Law Firm: “Plaintiffs obtained a statement from a Progressive employee who stated unequivocally that body shops have no say in the setting of their own labor rates, that the insurance companies ‘get together at big meetings’ to set body shop labor rates, and that the insurance companies uniformly apply the labor rates agreed upon at these meetings. This representative even identified when the next such meeting was going to occur. “Plaintiffs additionally obtained a statement from a State Farm representative who stated State Farm intentionally suppresses and fixes body shop labor rates, and that State Farm’s labor rate survey is a sham to justify its intentional fixing of labor rates.” The anti-trust lawsuit was first filed in Mississippi by 20 auto repair shops in February 2014 against 39 insurance companies. Eaves Law Firm subsequently filed more than 20 others. The lawsuits were eventually consolidated for pretrial purposes and the
law firm now represents 500 shops across the country. In the lawsuits that have been filed, the plaintiffs allege that the defendants, “engaged in an ongoing, concerted and combined intentional course of action and conduct to improperly and illegally control and depress automobile damage repair costs to the detriment of the plaintiffs and the substantial profit of the Defendants.” The plaintiffs also claim that the defendants engaged in price fixing, compulsory use of substandard parts and boycotting shops that refuse to comply. Autobody News will continue to keep readers informed about this lawsuit.
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Media and Publicity for Shops Indoor Advertising Engages Consumers in Prime Locations with Ed Attanasio
Body shops are always looking for a better and affordable way to keep their name in front of their customers. Since purchasing collision repair is rarely an impulsive decision, shops should focus more on branding and less on conventional forms of advertising. Indoor advertising is widely recognized as an extremely targeted medium. It reaches a captive audience while people engage in social settings at high traffic locations, such as restaurants, bathrooms, night clubs, sports bars, arenas and other venues. Indoor advertising reaches consumers from an uncluttered eye-level vantage point, making it literally unavoidable. Traditional forms of advertising, such as television commercials, magazine ads, and Internet pop ups have become less effective for smaller, local businesses. With so much advertising jammed into our brains every waking minute, more and more consumers have chosen to mute, click away, fast-forward, or completely opt out. For example, DVR systems make it easy for people to avoid TV commercials, and many do. I have quite a few friends who will wait 10 minutes after their favorite show starts so that they can watch it uninterrupted and commercial-free. By utilizing new advances and implementation of digital technology, indoor advertising continues to engage its audience. The stats support its effectiveness: 84 percent recalled seeing specific advertisements in the restrooms and movie theaters and 92 percent were able to name specific advertisers without prompting. Chuck Jessen, the owner of PreFab Ads in San Francisco, CA produces award-winning TV commercials for body shops all over the country. Although he has carefully been watching the evolution of indoor advertising, he still believes that old school TV broadcast is king. “When it comes down to advertising, it’s all about aggregation—how
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
many people you can reach with the media you’re using,” Jessen said. “With TV, we know that we reach a large number of consumers with each 30-second commercial. But, with
different than conventional retail advertising? “Body shops cannot do sales or promotions, so in the end their ads have to focus on branding and name
indoor advertising, the numbers are tough to accurately gauge, so smaller companies might be less attracted to it.” Now that indoor advertising is in public bathrooms, movie theaters, airports, sports stadiums and other places where people regularly visit and interact, what does the future of indoor advertising hold? “There is probably no limit, so will we likely be seeing more indoor advertising--anywhere and everywhere? I would say yes, definitely. Indoor advertising reminds me of the movie Blade Runner, where ads were displayed on the sides of buildings and literally in the air.” Jeff Siegel is a 40-year-old veteran of the Silicon Valley advertising game and is known as one of the original Mad Men-types. As a former radio rep who worked for more than a dozen stations during his illustrious career, Siegel has seen the rapid evolution of indoor advertising firsthand. “As a broadcast veteran, I still believe in the power of radio and TV,” Siegel said. “But, the vibe out there about indoor advertising is very positive. I tell my people that if you use some movie screen advertising, and possibly some mall kiosk advertising in conjunction with a broadcast schedule, the odds for a good response is high. I never want anyone to ever put all of their eggs in one basket and that’s why all of my clients do a mix of different things.” How is advertising for body shops
recognition,” Seigel explained. “A body shop’s image should be based on things like transparency and accountability, just like with a bank, a hospital or an insurance company.” The statistics about indoor advertising are compelling and that’s why more and more businesses are jumping into the fray. First, it’s in your face, because indoor ads are normally strategically placed where they’re virtually impossible to ignore. Even then, you only have roughly 1-4 full minutes of
“A body shop’s image should be based on things like transparency and accountability, just like with a bank, a hospital or an insurance company.” — Jeff Siegel
your prospective customer’s attention while they’re physically idle, yet mentally engaged without interruptions or distractions. So, your message has to be short, direct and engaging while entertaining people as well. In addition, indoor advertising is well-known for getting the viewer’s undivided attention for an extended period of time. Since people are seeing your message in a location where they aren’t typically bombarded by advertising, indoor advertising statistics show that consumers will remember yours longer. It also offers a wider range of targeting opportunities, based on specific demographics such as gender, income, lifestyle and age. As a result, you can spend less of your advertising dollar and still reach a much higher percentage of your desired target market. So, when you’re looking at different forms of marketing, why not choose indoor?
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Product Media Events Hosts Spring Fling 2016 at West Coast Customs in CA by Victoria Antonelli
On April 19, celebs, influencers, and media flocked to the new West Coast Customs showroom in Burbank, CA, to check out the latest products on the scene.
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Nadine Velazquez (Ride Along 2) Meghan Tonjes (Original YouTube Star, Recording Artist) Carlos Moreno Jr. (Frank and Lola)
Spring Fling 2016 served as an outlet for 20 companies to display their game changing products within tech, luxury automotive, and a variety of other spheres. Standout products included Orion Lab’s new Bluetooth personal communication system, Onyx, and high performance audio and visual connectivity solutions from Monster Products. 3M Automotive Aftermarket Division held a booth at the event, which was superRyan Friedlinghaus, owner of West Coast Customs vised by Joanna Murrieta, acNotable attendees included: count representative in San Diego. - Taylor Caniff (Top YouTube/ Murrieta said Cheryl Lynch of Vine Star, Founder of MAGCON) Lynch Archer PR Entertainment ap- Ryan Friedlinghaus (Founder of proached the company about particiWest Coast Customs, FOX TV) pating in Spring Fling 2016. - Sarah Jeffery (Shades of Blue) “We are proud to say that West - Masika Kalysha (Love and Hip Coast Customs uses a variety of 3M Hop Hollywood, Season 1) products, including our new Cubitron II - Balthazar Getty (The Judge) abrasives, 3M™ Paint Preparation Sys-
tem™ Lids and Liners, Platinum™ Plus Filler and Glaze, and the Perfectit™ Paint Finishing System among many more,” she stated via email. “Together, we partner with West Coast Customs to help them achieve their goal of superior craftsmanship through the use of innovative products which not only increase shop efficiency but deliver consistently superior results.” 3M Automotive Aftermarket Division showcased the following products at their booth: ● 3M™ Cubitron™ II Abrasives ● 3M Dynamic Mixing System for two part adhesives and sealers ● NEW 3M Accuspray™ ONE spray gun ● 3M Perfect-it™ EX Paint Finishing, Quick Connect Buffing Pads, and Trizact™ Abrasives “Event goers seemed to be most captivated by the NEW Accuspray ONE spray gun, as it offers an innovative alternative to traditional metal spray guns whose atomizing heads are fixed and can be time con-
suming to clean,” Murrieta stated. “The Accuspray ONE takes less than 2 minutes to clean and sprays like a brand new spray gun every time the atomizing head is changed.” Keith Ferry, Co-founder / CEO of Tire Stickers, based in Van Nuys, CA, manned the company’s booth during Spring Fling 2016. According to Ferry, Lynch found Tire Stickers through SEMA’s New Products feature, where the company had won four awards. “West Coast Customs uses our permanent product on many builds,
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28 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
including Justin Bieber’s Ferrari and FouseyTube’s BMW,” Ferry stated via email. “[At the event] we demon-
The Wrench Rod, Classic Rat Rod built for the promotion of West Coast Customs' clothing line Wrench. CEO Ryan F’s favorite car
strated all of our products including short and long term durability, RFID technology, and bar codes.” He added that Tire Stickers products are for aesthetic and function use for tires and also other rubber components. “The most popular products [at Spring Fling 2016] were branded designs like tire brands, auto enthusiast brands like MOPAR and Hot Wheels,” said co-founder, Jason Busch. Apart from checking out product booths and custom cars, guests could also participate in the following activ-
ities: -Media obstacle course relays from UrbE, Urban Electric, the newest offering in electric vehicles -LIVE break dancing demo courtesy of Monster Products -Interactive photo and video booth from Foto Spark -Behind-the-scenes tours of the West Coast Customs facility, back drop for MTV’s Pimp My Ride -catering by Ike’s Place -Dessert delicacies from Merengue Bakery and Cafe -BeTini Spirits hosted bar
“The event was a success. It was a good sight to see media and business owners networking with each other, but still kick back and enjoy the cars we have here at West Coast Customs,” said Rudy Diazzesati, Front Desk Manager. “This is the first year we have hosted and we are definitely interested in hosting it again next year. Big thank you to Product Media Events.”you to Product Media Events.” Autobody News also attended the West Coast Customs Car Show on May 7, which took place outside the Burbank facility. Please visit our website and social media pages for photos.
CARSTAR to Hold MSO Network Event in New Orleans
CARSTAR Auto Body Repair Experts is celebrating a milestone year in its more than 25-year history this July with the collision repair industry’s largest MSO network event. Themed the “Power of One,” this year’s CARSTAR Conference will be held July 9 to 11, 2016, at the Roosevelt Hotel in the French Quarter. It will open with its annual awards presentation Saturday night to recognize the top-performing franchisees, then shift gears to focus on strategic planning, management and technical education sessions, panel discussions, vendor partner networking events, motivational speakers and an insurance industry forum. “Over the past year, CARSTAR has expanded its presence as the most dynamic company in the collision industry. Our conference will reflect this with an event where store owners, business leaders, vendor partners and insurance companies come together to help build the collective industry for the future,” said Michael Macaluso, President, CARSTAR North America. “This is the largest MSO network event of the year, with an incredible lineup of speakers, education events and networking opportunities exclusively for the CARSTAR store owners. This is just one of the many resources we provide
store owners in the CARSTAR family, and a powerful tool for them to help them gain the edge, grow their business and improve their operations.”
Automotive celebrity Chip Foose, founder of Foose Designs and founder of TLC’s “Overhaulin”, will headline the event. The keynote speaker will be Mark Scharenbroich, motivational speaker and author of “Nice Bike,” who will join Mike Anderson, founder of Collision Advice.com, for several sessions. For more information on the MSO, visit www.carstar.com.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 29
Mike’s Auto Body in CA Participates in Every 15 Minutes Program drunk driving related accident in which two Monte Vista students were Earlier this year, Mike’s Auto Body, killed. The memorial car was on diswith 13 locations in northern Califorplay at the front of the school for stunia, participated in the Every 15 Min- dents to walk by and view as a utes Program on the campus of reminder to what can happen when Monte Vista High School in Danville, you drink and drive. CA. Marketing Coordinator, Sal Contreras, was Mike’s Auto Body’s representative at the Every 15 Minutes program and saw the event’s impact on students and teachers alike. “When the program began, you could hear loud noises from the 2,500 students while they were walking and running to the football field to settle into The Every 15 Minutes Program offers real-life experience the bleachers,” Contreras without the real-life risks, by staging a realistic reenactment said. “But once we removed of a serious accident the giant tarp revealing the By working with one of their in- accident scene of the two wrecked surance partners to acquire a totaled cars and the frantic 911 phone call car for this event, Mike’s Auto Body was blasted over the sound system, played an integral role for this there was dead silence from the studemonstration that is held every two dents. Their expressions of disbelief years at different Bay Area high schools and throughout the rest of the country as well. The Every 15 Minutes Program offers real-life experience without the real-life risks. This emotionally charged program is an event designed to show teenagers the potentially dangerous consequences of drinking alcohol or texting while driving. The program challenges students to think about drinking and texting behind the More than a dozen local organizations wheel by stressing the personal safety participated to make the scene look real and responsibility associated with making mature decisions when lives and sadness that something like this are involved. could happen to their friends was In conjunction with Mike’s Auto shocking and highly emotional.” A tragic accident that took the Body, CSAA Insurance Group donated a total loss car to represent the lives of two Monte Vista High School vehicle that was involved in a tragic students earlier this year added a new level to the reality behind the reenactment. “One student died on impact by going through the windshield and another student was air lifted by helicopter to the hospital, but died later,” Conteras said. “It is a tragic story in more ways, because one brother was driving from a party and hit a truck head-on with his non-drinking brother’s friends in the vehicle. The In conjunction with Mike’s Auto Body, CSAA other brother who was not drunk was Insurance Group donated a total loss car to sitting in the passenger seat and represent the vehicle that was involved in a ended up going through the windtragic drunk-driving related accident in which two Monte Vista students were killed shield, killing him on impact. The by Ed Attanasio
30 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
parents were obviously torn with grief and disbelief. The desks of the students who died in the accident were left empty for the whole week and the funeral was held the next day. “ The event included the participation of the local Police and Fire Departments, High School staff, the local Hospital, a video production crew, community officials, the District Attorney’s Office, funeral homes and a wide cross-section of the community at-large. The ultimate goal of the Every 15 Minutes Program is to utilize the strength, talent and resources of business and industry to prevent drunk driving and texting while driving. The day’s activities were chronicled in a short video. “To watch the video of the Monte Vista High School’s 2016 event, go to You Tube and search under Every 15 Minutes, Monte Vista HS 2016,” Contreras said. “If you don’t get chills and goose bumps when you watch this, you better get your pulse checked, because it is powerful to say the least.”
The memorial car was on display at the front of the school for students to walk by and view as a reminder to what can happen when you drink and drive
With young lives being taken every day nationwide due to drunk driving, distracted driving and reckless speeding, Contreras sees the value of presentations such as Every 15 Minutes. “Mike’s Auto Body is proud and prepared to serve the communities in which we do business, because saving these teenagers is not just a goal—it’s a priority,” he said. “We all have kids here at Mike’s, so this cause is very close to our hearts.”
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Parts Dept. 510-372-2800 Hours: M-F 7:30-6 / Sat 9-4 24644 Mission Blvd., Hayward, CA 94544 www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 31
MSO Symposium Reveals Latest Industry Insights Hi Jeremy,
Now in its 6th year, this popular, exclusive event during NACE draws SOLD OUT attendance from dynamic and fast-growth multi-shop operators throughout the collision repair industry. The MSO Symposium is custom built by an industry leading advisory board to ensure the sessions are a direct fit for the audience.
Thursday, August 11th | Anaheim Convention Center | Anaheim, CA Noon: Private Networking Lunch 1:00 PM: MSO Symposium Program 6:00 PM: Private Reception
The closed and exclusive program is limited to: ● Qualified multi-shop owners/operators/management
● Large independent shops planning for growth or divestiture
● Insurance professionals If You Qualify, Register TODAY to Save Your Seat at the MSO event of the YEAR.
Featured Vital Topics: Industry Update | Insurer Panel | A Capital Markets View of Collision Around the World | MSO Panel | OE Panel You’ll Hear the Latest from these Industry Experts: ● Vincent Romans, The Romans Group ● Marcy Tieger, Symphony Advisors, LLC
●
Russ Hoffbauer, State Farm
●
Chris Andreoli, Progressive
●
John Eck, GM
● ● ●
Clint Marlow, Allstate
Russell Thrall, CollisionWeek Gary Ledoux, Honda
32 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
●
●
●
Mark Allen, Audi
Jeff Hilton, Toyota
Rex Green, Jefferies LLC
5 Key Takeaways You can ONLY GET by Attending the 2016 MSO Symposium: 1. Moving to the Next Level – What do shops need to consider before growing from 1 shop, 3 shops, 10 locations, and beyond? How do you overcome a plateau in growth?
2. Insurer Panel on the Latest Trends and Plans, topics include: ■ Long term direct repair program strategy ■ How they plan on working with the large MSO’s ■ Evolution of self-managed programs, short and long term
3. OE Panel Discussion on the Newest Technology & the Repairability of their Vehicles, topics include: ■ Driving certified repair programs, training, and equipment requirements ■ Sustainability of these programs to the collision repair industry
4. International Outlook bringing the Worldwide Trends to the US, topics include: ■ 3 mega trends impacting the industry globally, and, specifically, trends that could have an impact in the U.S. marketplace ■ Discussion on how these global panelists found opportunities and solutions to these major shifts in regulatory and economic trends
5. MSO Growth and the Strategy Behind It – This panel of the leading MSO’s explores the challenges of growth, and the steps taken that facilitated their rise to the top of the industry. Topics include: ■ How did they plan for: capital requirements, proof of concept, business planning ■ How do you show progress to validate the model internally and externally to bankers, capital venture partners? ■ Overcoming inefficiencies and legacy systems ■ Insight on what they would do differently with the experience and knowledge they’ve gained
CIC Finds More Questions Than Answers as it Begins Look at the “alt-OE” Parts Category get confused when an aftermarket part OE parts’, we don’t have ‘blem-parts’, supplier deliver a brand new OEM we don’t have ‘second’ parts,” he said. “I’ve heard there are ‘opt-OE’ Honda Preliminary discussion at the recent part in an OEM box to our shop.” Stabler said he believes parts out there, but I don’t know where Collision Industry Confersome dealers who sell some the heck they are coming from or how ence (CIC) held in Seattle, they are getting out there. I’m in the dark of those parts are then applyWash., seemed to indicate about that.” ing for the price-matching rethere are more questions than John Eck of General Motors bates some automakers offer answers when it comes to the to help dealers compete with agreed that the “alt-OE” or “opt-OE” topic of “alt-OE” or opt-OE” categories have not been established by alternative part suppliers. parts. “Quite frankly, as an OEM, the automakers, but he also doesn’t “Have we reached a Chris Northup I’d be feeling a little violated, think “conquest” parts-matching rebates point where we need an imare involved. proved definition of what these parts because I’m basically helping an af“The distribution network has are?” Chris Northup, chairman of the termarket parts supplier or used parts CIC Parts Committee, said, in asking supplier to make margin,” Stabler said. created this category, not the OEMs,” Representatives of a number of he said. “We can’t get involved in what CIC participants if it was a topic worautomakers at CIC seemed to have the dealer does, how he sells, what disthy of more work by the committee. count he offers to the marketFor his part, CIC Chairman and just as many questions about place, nor how he has created California shop owner Randy Stabler “alt-OE” parts as other CIC a [parts] category with the insupported the committee digging into attendees. formation providers and who “I can tell you that I’ve the topic. he’s trying to sell to.” “There are aftermarket and used been trying to find out what But Eck did say GM has parts providers purchasing brand new opt-OE is myself,” Ben Cid “outlet shop parts” sold by OEM parts from the dealer then deliv- of Mercedes-Benz said. “That some dealers. ering those brand new parts to the designation didn’t come from Bill Eveland “Those parts are non-inbody shops as ‘alt-OE’ or in some the OEs. We don’t know what cases as used parts,” Stabler said. that is. We’re trying to find the same stalled excess inventory from our plants,” he said. “They might be “They are brand new in a box from the thing out.” Gary Ledoux of American Honda scratched, slightly blemished, missing dealer. I think that is a worthy item to have as a discussion point. I know I concurred. “Honda doesn’t have ‘opt- some trim work. Any of our dealers by John Yoswick
can participate in that if they choose.” Whether those parts are being sold as “alt-OE” or “opt-OE” seemed unclear. Eck said he “believes” they are in the estimating systems as “OE surplus” and have different part numbers to identify them as surplus.
Knowing What To Expect But this kind of confusion and inconsistency led Brett Bailey of A&B CARSTAR in Missouri to point out that one of the biggest challenges for shops is not knowing what to expect in terms of the different types of parts listed in the estimating databases as “alt-OE” or “opt-OE.” “If I get an estimate from an insurance company that says ‘alt-OE,’ it can mean a plethora of different things,” Bailey said. “I don’t have the option for ‘OEM-blem’ or ‘OEM-overrun’; they all get lumped into one category. But that scratch or nick or whatever the case is has to be repaired, which is additional labor that we struggle to get compensated for. These parts are not being categorized in the right manner and placed on the estimate in the right manner. This See alt-OE Parts Debate, Page 47
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 33
Western Associations
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
New CAA State President Ted Stein Discusses Industry and its Future with Ed Attanasio
Ted Stein, 52, has been an officer for the California Autobody Association (CAA) for many years, and for 201617, he is the organization’s State President for the second time. Stein is the Fixed Operations Director at Penske
The new State President for CAA Ted Stein (left) is pictured here with Alan Mulally, the former CEO of Ford Motor Co.
Ford in La Mesa, CA and has a total of 38 years in the industry. Autobody News sat down recently with Stein to discuss the state of the collision repair industry in California and nationwide.
What are some of the obstacles Q: that body shops are encountering now?
A:
So the struggles today are the same as they were 20 years ago. Getting paid for everything you need to do in order to return these cars to their pre-accident physical condition is still the main issue. Today’s cars are so sophisticated and training is ongoing and continuous if you want to stay upto-date. The expenses keep going up and yet our rates are the same after twenty years, so we’re being held back that way when all we want to do is a good job. People say there are not enough trained technicians, but I don’t believe there is a shortage. I think there is an over abundance of repairers. There’s too much capacity, so if 30 percent of the shops in the country closed tomorrow, we’d have an ample supply of available technicians. So have you had any problems Q: with anybody trying to take your employees?
Somebody once said that the A: reason body men have wheels
on their tool boxes is because they jump ship so much, but we’ve been blessed with a lot of longevity. We haven’t had that problem. I’m told it seems like if you have one slow pay period, technicians are looking to move on. It’s tough and other shops often tell me that the loyalty just isn’t there. That’s one of the strange things about this dealership, we’ve had so many employees with 2530 years of service here and everybody that comes to visit says that’s just unheard of. You can take care of your people and weather the storms and sometimes it’s not all about the paycheck. My son wanted to go into body and paint and I just wasn’t going to hear of it. It’s not the same business it was when I got into it. His argument was that I’ve had a great life and it provided well for all of us. And then I told him that’s why you’re going to college and you better stick with it.
What do you think about the Q: “Rush to Aluminum” that has been a big deal for the past 2-3 years
while shops gear up for these new vehicles?
There’s a race to make the car A: stronger and lighter. And if there’s somebody with that technology
that can bring it to an auto manufacturer – that’s your next billionaire. That race continues. What the auto manufacturers are spending to save ounces on a vehicle and still make it safe – it’s jaw dropping. So I think you’ll continue to see material changes, and I believe many of them haven’t even been invented yet.
Do you think self-driving cars Q: will hurt the collision repair industry?
A:
I have to admit that I’m a little nervous about these autonomous vehicles. A friend of mine, George Avery from State Farm, said that in a world where it’s all autonomous vehicles--do they still need me and you? And it was a great question because these vehicles don’t get into accidents. So, I told him that there will always be shopping carts that run into cars and trees and hailstorms that fall on vehicles. There will always be body shops,
34 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
but not as many once self-drivers become prevalent.
What would you tell somebody Q: considering entering this industry now – either as an owner, technician or estimator?
To someone who wants to own A: a shop, I would tell them that there is still opportunity for the stand-
alone collision repairer to make it and be successful, but they’re going to have to know their numbers. I would strongly urge them to be involved in a trade association. They need to be an active participant in their facility and work on the business as much as they work in the business. For someone entering the industry as a tech or estimator, I think it’s a great business. It has its ups and downs—it’s a retail business and there are all those challenges in the retail world but there’s always somebody coming up with a niche. The cars
are safer today and they just don’t wreck as frequently. There’s crash avoidance technology like crazy and it’s only going to increase at a high rate. And I see consolidation, but I actually believe that it’s going to peak at some point. I don’t think that’s a viable book of business for any insurer to have all their eggs in two or three consolidators’ baskets. That’s just my personal opinion. People say that prior to 1990 Q: was the Golden Age of collision repair, but now many shops say they’re
chronically underpaid by the insurance companies. Do you agree with that?
Yes, that’s the case because it’s back to the capacity issue. A: There’s always the guy down the street
that’s willing to do it for less to get the volume because he can’t get the volume otherwise. In many ways, it feels like a See Ted Stein Discusses, Page 59
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H OND A C AL I FO RN I A
AutoNation Honda Roseville Ros ev ille
800-262-3201 916-783-5628 Dept. Hours: M-F 7:30-6; Sat 8-5:30 autonationhondaparts@hotmail.com
Avery Greene Honda Vallejo
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Barber Honda Bakers field
661-396-4235 Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com
First Honda Simi Valley
888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com
Galpin Honda Miss ion Hills
800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 blemen@galpin.com
Honda Cars of Corona Corona
800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com AC U RA C AL I FO RN I A
Acura of Fremont Fremon t
888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com
Acura of Pleasanton Pleas ant on
888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com
Acura of Riverside Riv ersid e
888-701-0725 951-688-1500 Dept. Hours: M-F 7-8; Sat 7-5 Ricardo.pena@hendrickauto.com Mark.reed@hendrickauto.com Jason.torres@hendrickauto.com 36 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Please contact these dealers for your Honda or Acura Genuine parts needs. C AL IFOR N I A
CAL IFO RNIA
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M il pi ta s
Av ond ale
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Dept. Hours: M-F 7:30-5 parts@southbayhonda.com
Dept. Hours: M-F 7-9; Sat 7-6 gluna@earnhardt.com
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@hondaofhollywood.com
Honda of Oakland
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University Honda
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Cerritos Acura Ce r r it o s
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Jody Wilkinson Acura S al t L a ke C ity
800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 37
Change Can Be Scary but Can Take You to the Next Level in Your Business by Mike Lanza, Sherwin-Williams Automotive Finishes
Let’s face it, change can be scary. From collision shop owners making adjustments to the front office, shop floor or staffing – it can be challenging. But, what if these changes would mean even higher revenue and take the shop to the next level? The collision industry is full of change. Days, weeks and months go by with every customer that comes through the shop – vehicles are repaired and there’s a continual fight to be compliant with insurance partners. An owner may view setbacks as, that’s “the way we’ve always done it,” but there may be a better way of doing business. However, it’s not always so simple to initiate change. The issues arise when you try to define these solutions and put some type of order, process or accountability to it. When that happens, a shop owner might shut down since change can be hard work. Plus, it’s proven that most people don’t resist change, for the
sake of change, rather, they resist being changed. That’s according to a study conducted by Dr. Peter Senge, director of the Center for Organizational Learning at MIT. Dr. Senge concluded there are nine types of fear relating to change, including: 1.
2.
3.
4.
5.
6.
7. 8.
9.
Fear of failure
Creatures of habit
No obvious need
Loss of control
Close minded
Unwillingness to learn
Fear the new way isn’t a
better way
Fear of the unknown
Fear of personal impact
Now, owners shouldn’t be discouraged about their business and
38 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
think they’re the only one who can’t seem to make changes stick. Many are overwhelmed by their facilities and how they are run becomes the reality. Shop owners attend trade shows, like SEMA or NACE, and leave with so much new information. Or, they may be reminded of great ideas. Often, owners will even start off with good intentions: going back to work full of eagerness and excitement with plans to implement all these wonderful, new ideas. Well, that was when they started the day at 8 a.m. – but two hours later, the day just got hectic and plans of a new, fresh start just went out the window. Most business owners know change has to happen to stay relevant in the fast-moving collision repair industry but don’t know where, or how to start. Ultimately, everyday life gets in the way and that owner may just give up and say, “It’s the way we’ve always done things.” Don’t feel bad … it happens to everyone. In 1899, the commissioner of the United States Patent Office Charles H. Duell said, “Everything that can be invented, has been in-
vented.” That seems pretty closeminded, right? Well it was, but in 1899 he didn’t have the access to the world as people do today. He only knew what was in “his circle,” kind of like when owners are in their own circle … such as their own body shop. Change is hard. Getting everyone in the organization to see the big picture is extremely difficult. So often compensation (or rather, lack thereof) is the true fear. An employee/owner might ask themselves, “If I change and follow this new way, how will it impact our bottom line? Or, me personally?” Employees know the way they’re doing things today may not be the best way, but at least they can depend on it. During my 30 years in the collision industry, which I’ve been privileged enough to work with hundreds of savvy operators throughout the country, one thing has always held true, “You can’t eat an elephant in one bite.” Simply put, if you truly want to change the way you do business in one swift blow, it will never
work. You need to change the culture of your organization through leadership. Employees look for leaders to feel secure that a new, better way will not be detrimental to their livelihoods. You must start with small and simple tasks and decide how to improve them. Get key people involved so they feel their roles within the company are valued. Receive feedback and input and you’ll see them beginning to row in the same direction. Communicate daily, set goals and time frames on achieving them. Create and understand a baseline on where you are and what success looks like. It’s important to celebrate even the small incremental gains along the way. After you’ve achieved the desired change, celebrate and deliver the results to the entire team. This is leadership, not management, so don’t get the two confused. After you have achieved the new state, then it can be managed to adherence and compliance. Henry Ford once said: “Whether you think you can or can’t, you’re right.”
Good Luck!
Service King CFO Formally Recognized
Service King Collision Repair Centers’ Chief Financial Officer, Michelle Frymire, was formally recognized in April as a finalist for Outstanding CFO of the Year at D CEO Magazine’s 2016 Financial Executives of the Year awards banquet. The event, hosted inside the Hilton Anatole in Dallas, brought together 24 of Dallas-Fort Worth’s most accomplished financial executives from the last year, spanning a vast array of industries. Frymire was selected from a field of more than 200 original candidates before she was named one of three finalists for the CFO of the Year award in the large private company category. Frymire, who joined Service King in early 2015, helped guide the organization through the industry’s current consolidation movement. As the company’s top financial executive, she oversaw more than 25 mergers and acquisitions in the last 12 months. During that time, Service King grew to more than 6,000 teammates in 23 states while the company officially eclipsed the $1 billion annual run-rate mark for the first time.
American Honda Releases Consumer-Oriented Video Describing Hazards with Substandard Repairs
American Honda Motor Company Inc. has launched on a consumer-oriented educational video titled “ProFirst—Quality Collision Repair.”
See the video at http://collision.honda.com/ profirst-collision#.VztXZuSrF6I
The video can be seen at American Honda’s consumer web site, collision .honda.com. The 4:14 minute video compares two Acura MDX vehicles and stresses reducing the uncertainty of collision repair. One is a normal production vehicle while the other is a vehicle that was previously damaged and repaired incorrectly. The two vehicles were crashed according to IIHS protocols, and the video ex-
plores the differences between the two collisions as well as the deliberately substandard repairs. The difference between how each vehicle fared is dramatic and accentuates the need for proper repair using the correct tools, equipment and procedures. The video also highlights American Honda’s network of ProFirst certified collision shops and the fact that they have the right skills, training, equipment, and information to make proper vehicle repairs. “The use of high strength steel, ultra-high strength steel, aluminum, and other exotic and innovative weight-saving materials will only increase as we moved towards ever-increasing CAFE standards” said Leigh Guarnieri, American Honda’s manager of the Collision Marketing group. “Making proper repairs on these vehicles is crucial to the safety of our Honda and Acura customers. This will continue to be the driving force behind our ProFirst program.” The video highlights American Honda’s ProFirst collision repair network and the difference it can make in repairing a vehicle.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 39
Why Are Online Reviews Important to Your Auto Body Shop? during his presentation. Over the last few months, he has Every month, nearly 10 million con- found that review sites now occupy 40 sumers search online for auto body re- to 80 percent of all first page links. pair shops and related services. One of With an abundance of different the first things they see are online re- review sites on the web, businesses views. might wonder what review sites are Whether your organizathe most important to focus tion has two, 200 or 2,000 on. “The review sites that locations, Frank Terlep, consumers use the most and see the most and know the founder and CEO of eMarmost are the ones that matter keting Sherpas, said that online reviews are extremely the most,” said Terlep. important to your business. Some of the more popular From his experience over the ones he mentioned include Frank Terlep. years, he said they can imYelp, Google, Yahoo!, Bing, File photo. prove customer engagement, Facebook, Citysearch, Yela company’s brand and increase on- low Pages and Judy’s Book. line referrals. What steps should a business put He cited data collected from the in place to get more online reviews? Bazaarvoice network in 2015, which “Just ask!” said Terlep. “If you said a business with one review can want to get reviews, you need to let experience a 10 percent increase in the customer know that reviews are sales, a business with 50 reviews can important to your business.” He said have a 30 percent increase and busi- it’s also important to make it easy and nesses with 200 reviews can see a 44 convenient for consumers to give you percent increase. a review and let them know which Terlep recently held a webinar dissites you would like to get the reviews cussing the importance of online reon. by Stacey Phillips, Assistant Editor
“Eighty-eight percent of connected consumers trust online reviews as much as personal recommendations from people.” — Frank Terlep
views and offered tips on how to have your business appear on page one of a Google, Yahoo! or Bing search in your local market. Terlep said that 88 percent of connected consumers trust online reviews as much as personal recommendations from people and 90 percent said that positive online reviews influence their buying decisions. In 2015, a company named Review Inc. surveyed 1,000 consumers and found that consumers trust online reviews much more than any other marketing and advertising mediums, including websites, newspaper, television and the yellow pages. “A brand is no longer what we tell consumers it is – it is what consumers tell each other it is,” said Scott D. Cook, the founder of Intuit and a board member of eBay and P&G. “But the sad news is that 87 percent of small businesses like most of you on this call don’t really have a formal process in place to ask for and capture online reviews,” Terlep said
He suggested using signage, POS materials, verbal requests, delivery handouts, email, your website, Facebook, mobile apps and in some cases, in-house kiosks. He strongly recommended that a delivery review request handout be given to a customer when their vehicle is delivered. Another effective way he found to ask for online reviews is by sending an email or text. Currently, the average open rate for an email is 18 to 22 percent; while a text has a 98 percent open rate and is usually read within five minutes. When asking for a verbal review, Terlep said there are eight must dos: 1) Always get permission before sending a review request. 2) Ask at the peak of your customer’s happiness with your service. 3) Let your customer know that you’re asking for a “favor.” 4) Let your customer know how long this will take. 5) Let your customer know how you
40 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
benefit from their favor. 6) Get your customer’s primary email address.
The Review Engine software delivers reviews and reporting for businesses
7) Tell your customer how much their offering to write a review means to you. 8) Tell them that you’re looking forward to reading their review.
Terlep stressed the importance of responding to every review. Not only is it great for SEO (Search Engine Optimization), he said it demonstrates to the consumer that the reviews really are important to your business. eMarketing Sherpas specializes in
digital marketing solutions for the collision repair industry. The San Diegobased company developed the Review Engine product in 2015, with the intent of helping businesses build, promote, protect and manage online reviews and reputation. The Review Engine software delivers reviews and reporting for businesses and can be set up to import a company’s estimating management software into their platform. It also integrates with more than 100 social media and review sites. Other features include customized review request delivery handouts and automated email and text review requests. eMarketing Sherpas offers a free demonstration of the product. “Because we use so many different tools and techniques to request and capture online reviews, your business can expect to see a 100 percent to 300 percent increase in the number of online reviews your business receives,” said Terlep. For more information, call 858547-8697, email sales@emarketing sherpas.com or visit http:www.emarketing sherpas.com.
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www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 41
GM Manager Addresses State of Collision Repair Business; Considering Certification Program “Vehicles are complex, the dynamics of our stakeholder relationships are During a recent Verifacts Guild 21 complex, and the repair process is as webinar, General Motors manager well,” said Eck. “Sometimes it’s interJohn Eck talked about the esting and even necessary to complexity of the collision take a step back and all of the repair industry, the imporchanges we have seen and the tance of quality repairs and rate of change that will clearly how the company is considindicate that this is clearly not ering the possibility of estabgoing to slow down on us.” lishing an OEM collision He said there are several repair certification program. John Eck, manager areas of concern currently Eck said the ultimate of wholesale dealer working against collision regoal is a quality, safe repair channel for General pair shops. Motors Customer for the customer. “That’s who One of these is that the equity Care & Aftersales I work for,” said Eck, the balance of influence of a repair manager of wholesale dealer channel is in flux, whether that involves managfor General Motors Customer Care & ing relationships, metrics or costs. “The Aftersales. “We want the outcome to collision repair facility feels the pressure be a satisfied customer driving away in how a safe, quality repair is comin a vehicle that has been repaired to pleted,” said Eck. pre-crash conditions using the right Economics plays a key role in procedures, parts, processes and qualthis; however, he said the concern is the ity checks. There is no alternative.” point of balance when economics overWith more than 25 years of autorule certain repair decisions. motive aftermarket experience with Eck said that OEMs can assist in General Motors, Eck has held numerous the following areas: ease of repairs, acfield, marketing and management positual quality of repairs, and technician tions in several business segments in the readiness for new technologies. United States, Canada and South Africa. When it comes to the ease of reby Stacey Phillips, Assistant Editor
pairs, he said that OEMs can help improve repair procedure content to make it easier to access. In addition, OEMs can take the repair learnings from body shops and share them with the teams that work with vehicle development engineers. Eck is finding that the actual quality of repairs is an area that collision repairers are looking to OEMs for support and said OEM certification is a step in that direction.
for OEMs, according to Eck. In addition to industry age numbers, another worry is whether or not the training that is taking place is actually being replicated in the shops. “We have to leverage existing technologies and use some technologies that are in other industries to help audit and verify repairs,” he said. He mentioned there are additional factors causing change in the industry, such as MSO growth with the rise of consolidations. In response, GM is
During the webinar, he shared data with attendees on repairs that were done on GM mid-size SUVs over a threeyear span. Looking at the percentage of vehicles that were being repaired versus replaced, it was found that over 50 percent of the time they were being repaired. “We are very concerned about the repair quality of the vehicle coming out,” said Eck. Technology readiness is another big concern for the industry, especially
working with MSOs to understand their concerns in order to help better meet their needs. “The industry has already changed,” said Eck. “We see an industry that needs to expand and grow and be ready for the challenges that I see coming down the pike from the OEMs’ perspective.” To respond to some of these changes in the industry, GM recently redesigned its website (www.genuinegmparts.com) to better support collision
“We see an industry that needs to expand and grow and be ready for the challenges that I see coming down the pike from the OEMs’ perspective,” — John Eck, manager at GM
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repairers. There is now content for both consumers and professionals. GM is also currently looking at the impact on the industry in the following areas: ● OEM certification programs; ● Cost to shop for tools and training; ● Proliferation of collision crash avoidance and telematics; ● OEM repair procedure requirements and influence; ● Change from just selling OEM parts to focus on the customer and a quality and safe repair. “The solutions we may come to find out may not necessarily be what some want to hear,” said Eck. “At least if we acknowledge these points, we can then collaborate together, on ways to minimize the negative impact that they might have on the collision repair business.” With the overwhelming speed of change, Eck said that stakeholders need to work together and collaborate to better understand the issues at hand. This includes repairers, insurers and OEMS. “We can’t do this alone,” said Eck. “We see huge benefits of collaboration and integration.” Eck said GM is planning to put more emphasis on tech repair and sup-
port. By understanding the repair procedures up front, it will help drive the correct parts decisions to ensure vehicles are being repaired to OEM standards. In regards to General Motors’ plans for a possible certification program, Eck said the company agrees with certification but wants to ensure there is a focus on the output. He said it will take some time and stressed the importance of having discussions with stakeholders about how to best move forward. “We can’t look at it from just GMs perspective,” said Eck. “We need to look at the rest of the stakeholders involved.” Eck said the requirements to become a certified/authorized repair facility include tools, training, facilities, processes, tracking and OEM specific requirements. Areas that GM will be focusing on include a combination of industry outreach, repair procedures, training and verification. The desired outcome is a quality, safe repair that restores the vehicle back to pre-crash condition. “You and your repair facility want your output to be a product you would put your family in without question or concern,” said Eck. “You want your customers to be satisfied.”
BASF’s Automotive Color Trends 2016/17 Predicting the up-and-coming colors of automotive design is a challenge designers from BASF’s Coatings division tackle every year. The overarching
Raingarden, a metallic silver with green and blue elements, is one of BASF’s featured colors in North America and is shown in juxtaposition with Paul Czornij, BASF’s head of design in North America
theme for this year’s collection of 65 colors is “Parallax,” a concept that objects appear shifted or changed when viewed from different angles.
Top Three North American Colors for 2020 and Why “My inspiration behind this year’s colors was the continuous change in society and the importance of finding new perspectives and looking at things differently,” said Paul Czornij, head of design for BASF’s Color Excellence Group. “Rain-
garden also exemplifies our coatings capabilities at BASF. In order to achieve a silver color that looks subtly different depending on the viewer’s vantage point, we relied on our design expertise, but it also showcases our technical finesse with innovative pigments to achieve a beautiful coating that could be used in a realworld setting.” The following are the top three color predictions in North America that could influence vehicle coatings for the 2020 model year and beyond, along with the technological and societal factors that impacted the selections: ● Raingarden – A metallic silver with green and blue elements. ● Primordial Soup – A deep, blood red. ● Aerialist Wish – A black color with a silky, silvery look throughout. “The change in the urban areas has been a prominent feature in our societal analysis for the last three color collections,” said Czornij. “For a long time, city centers in the United States have been seen as unattractive and undesirable but that’s all changing as artists, designers, musicians and others seize the opportunity and make their homes once again in the city.” For information, contact Mary Ann Short, (248) 948-2253, maryann .short@basf.com or visit www.refinish .basf.us
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Shop Strategies CO Shop Manager Shares Thoughts on Aluminum Repair, OEM Certifications & DRPs with Stacey Phillips - ASSISTANT EDITOR
Autobody News spoke to Jeffery Thompson, the production manager at Phil Long Collision Center in Colorado Springs, CO. He shared his thoughts about aluminum repair, OEM certifica-
Phil Long dealerships throughout Colorado and New Mexico.)
How long have you been certiQ: fied by Mercedes and Audi, what did it entail and what is the ben-
hicle to the customer quicker, thus reducing cycle time and creating a happier customer in what is a very trying time to some people. It returns the
efit to your shop?
We have been certified for sevA: eral years by Mercedes Benz and Audi in the repair of these vehi-
The front of the Phil Long Collision Center building in Colorado Springs, CO
tions and being part of a DRP. Established in 1945, the dealership shop has 37 employees. Although they repair all makes and models of domestic/imported cars, trucks, vans and SUVs, Phil Long primarily focuses on Mercedes Benz, Audi and Ford aluminum trucks.
cles. We were certified through our dealer partners and through Mercedes Benz USA and Audi. In 2014, when Ford introduced the Aluminum F-150s we knew that we needed to be onboard and took the opportunity to get the necessary training to allow us to be the only certified Ford aluminum repair shop in the area. The process of being certified ensures that you follow the manufacturers’ tolerances and specific equipment that is needed in order to make the proper repair.
What prompted the decision to Q: get certified in Ford aluminum What are some of the advantages you have found being a repair and what did it entail? Q: DRP shop as well as some of the issues We are aligned through a net- you deal with? A: work of dealerships, both new As a DRP for our insurance and used vehicles. Two of these locaA: partners, you have the ability tions are Ford dealers, and who better and the trust to move forward with the to repair your vehicle than the techni-
cians who are trained by the factory in proper procedures. It also really helps to service what you sell. (There are 13
repair without needing to wait for an adjuster to arrive to look at the vehicle. This allows you to return the ve-
A view of the waiting area for Phil Long Collision Center
customer to a sense of normalcy. Another benefit of being a DRP is a marketing relationship. The insurance partners help market your business in order to satisfy theirs.
What are some of the compoQ: nents of your shop that contribute to its success?
and see what our future looks like. I know they will be impressed.” Chief will provide two different measuring and pulling systems for the contest. A collision-damaged truck will be measured on a Chief Impulse®- E/VHT frame rack using the Chief UMS “Universal Mechanical System.” A damaged unibody car will be held on a Globaljig presented by Chief bench and measured with a Chief LaserLock™ LiveMapping™ computerized measuring system. SkillsUSA committee members and judges are all volunteers that take a week out of their schedules each year to support the largest gathering of vocational students in North America. For more information about Chief, visit www.chiefauto motive.com, contact your local Chief distributor or call (800) 445-9262.
44 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
world-class service for the customer, your insurance partners and the dealer networks. We strive to ensure that each customer is happy to the best of our ability, whether that is from the waiting room in the office to the guys that wash up a vehicle to return to the customer. We want them to be pleased with our service.
From your experience over the Q: years, what advice can you share with readers? Listen to your technicians, for A: they are the ones who work on the vehicles on a daily basis and know the brands inside and out. This is how you provide world-class service. Jeffery Thompson, production manager at Phil Long Collision Center, can be reached at 719-667-2900.
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For 30 years running, Chief has sponsored the Collision Repair Technology (CRT) Championship at the SkillsUSA® National Leadership and Skills Conference. This year’s conference takes place June 20-24 at the Kentucky Exposition Center in Louisville, Ky. “As the collision repair ‘level of difficulty’ grows along with the sophisticated advances OEMs are making in technology and materials, we as an industry need to look at how we can attract, train and maintain qualified technicians to repair innovative new vehicles,” said Richard Perry, OEM and strategic account sales manager for Chief. “SkillsUSA brings us the top high school and college students from around the country to compete for a national collision repair technology title. I invite anyone in the industry to come
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www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 45
FinishMaster’s Michelle Sullivan Honored as WIN’s 2016 Most Influential Woman by Chasidy Rae Sisk
industry leader. WIN is honored to recognize Michelle and looks forward to a future where every woman in the collision industry finds and fulfills her place of influence.”
As part of its goal to “enhance the role of women in the collision repair industry,” the Women’s Industry Network (WIN®) honors at least one woman each year for enriching the industry through their leadership, vision and commitment to excellence through their Most Influential Women (MIW) program. This year, WIN chose to honor Michelle Sullivan, Regional Vice President of FinishMaster, as the 2016 MIW. When asked how it feels to be honSullivan attended the first WIN ored as WIN’s 2016 MIW, Sullivan reconference in 2007 and has been insponded, “I am excited, grateful and volved ever since. humbled. I have held leadership posi“I was attracted to WIN because tions throughout my career that have althis is an organization that is dedicated lowed me to identify, advance and retain to encouraging, developing and cultitalent in the collision repair industry. vating opportunities to attract women Great mentors inspired me, and I have a to collision repair,” she said. “They strong desire to do that for others. Winalso recognize excellence, promote ning the MIW award means that I have leadership, and foster a network of a responsibility to continue that advowomen who are shaping the industry. cacy and ‘leave it better than I found it.’” I wanted to be part of that!” Sullivan began her career in the In 2013, Sullivan was elected to collision repair industry in 1994 as a WIN’s Board of Directors. She also Human Resources Manager for a Bal- participates as the co-chair for the timore distributor. Membership and Industry Outreach She explained, “I was working for committees. Sullivan is involved in a large corporation and was attracted other organizations, representing the to a smaller company where I could collision repair industry at national make a great impact.” events. She enjoys speaking to various The next eight years of Sullivan’s segments of the industry and raising career were spent working in marketawareness of the opportunities within ing, operations, sales and management collision repair. in order to learn every aspect of the When asked about why it’s imporbusiness, before she became President tant for women to be involved in the of that company in 2002. She continued collision repair industry, Sullivan rethere for another ten years. The comsponded, “The collision repair industry pany went on to win the 2007 continues to face a shortage of Distributor of the Year award people to fill critical positions, under her leadership. Sullivan such as technicians, managers then worked for paint manuand executives. Recruiting facturer for several years, winand retaining talent becomes ning their Leadership Award essential for the long-term in 2015. Sullivan joined Finsustainability of our industry. ishMaster as Regional Vice We are seeing more of that Michelle Sullivan President in January 2016. talent in women that are enSullivan stated, “Most of my career tering our industry or who are embrachas been spent championing change, ing leadership roles. It is important for developing talent, and driving results. I women to be involved to bring addihave been elected to various councils tional talent and diversity to work enviwhich have provided many opportunironments.” ties, particularly to be part of shaping Sullivan offers some advice for the direction of the organization.” young women interested in pursuing a Denise Caspersen, WIN’s Chair, career in the automotive industry: said, “Being selected as an MIW not “Don’t let preconceived notions only reflects on Michelle’s past ac- limit your thinking. Most people don’t tions but also sets the future stage for realize the various career paths within her as a mentor to others in the colli- the automotive field. If you are a stusion repair industry and as a continued dent, join an industry organization and
46 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
connect to the industry. Explore, question, engage! The more that you can get involved early on, the more opportunities will appear. Stay positive and adaptable, and find a mentor. Women who are part of industry organizations make great mentors; they typically had someone who promoted their development and were important to their journey, and most are looking to pay it forward.” The MIW program was established in 1999 by AkzoNobel and has recognized nearly 85 women whose leadership, vision and commitment to excellence has enriched the industry. Since acquiring stewardship of the MIW program in 2013, WIN continues to evolve the program to align with the organization’s mission to “enhance the role of women in the collision repair industry.” The leadership of women who received the MIW Award focuses on four areas: industry influence, professional accomplishments, mentoring and supporting others in the collision repair industry, and going beyond the requirements of their professional lives to give back to their communities. Amidst resounding applause, Sul-
livan said, “It is with great excitement, gratitude and humility that I accept this award. I want to thank WIN and its founders. Ten years ago, they had a vision, and they and many others along the way have worked tirelessly to engage women in the collision repair industry. They have provided a platform for me and many others to do what we love in an industry that we are so passionate about and to ensure that women have a seat at the table.” Sullivan continued, “I want to thank FinishMaster and the many other organizations that sponsor and support WIN. I want to thank my parents for giving me a solid foundation, and to the many friends, colleagues and mentors who have helped me along in my journey. Most of those mentors are in this room tonight, and I want to thank you; they have inspired me and coached me along the way.” Denise Caspersen, Outgoing Chair for WIN and 2008 MIW Honoree, led a toast to Sullivan, the scholarship recipients and all WINners, noting, “We are all MIWs. Maybe we haven’t been given the title, but by being a leader in the industry, we are all most influential!”
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Continued from Page 33
alt-OE Parts Debate
fall into this category. And that’s a big problem. We need to do a strong job of classifying those parts at our end and selling them transparently, as what they actually are.” The discussion in Seattle made it clear that it’s a topic the CIC Parts Committee will be addressing at future meeting.
problem needs to be fixed, and needs to be fixed quickly.” Bill Eveland of Eveland Bros. Collision Repair Center agreed. “The database times are predicated on a new, undamaged panel, a part that out of the box can be scuffed Need to Measure Every Vehicle and painted and put on the car” he Also at CIC in Seattle, California pointed out. “I’ve yet to get [an opt-OE shop owner Kye Yeung used slowpart] that meets that qualification The motion video of vehicle crash-testing insurance company may win priceto show how vehicle design is inwise; we lose on our end. And creasingly transferring the it disrupts the workflow and energy forces from a crash increases cycle time.” over, around or under the ocOne supplier of “optcupant compartment of the OE” parts at CIC agreed with vehicle. That transfer can reBailey and Eveland. sult in collision damage at “If we’ve going to be adthe opposite end of the vehivertising an opt-OE part, we cle from where it was hit. Kye Yeung are selling that as a brand-new “Estimators have a tendency OEM quality, unblemished packaged just to look at the point of impact, and part just like an OEM would,” Bryan not follow that load path of energy Mandell of B&R Auto Wrecking said. that continues along the vehicle,” “But the vetting process is really up to Yeung said. “You basically need to the suppliers because we have to procheck the whole vehicle.” vide that information to the estimating Yeung said insurers need to unsystems. There’s a very big differderstand this requires additional labor. ence…in the types of parts that seem to He shared a page from I-CAR’s new
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“Vehicle Technology and Trends 2016” course that addresses this topic. It explains that the automakers, for example, are adding new structures to engage the barrier in small overlap crash-testing, “creating an additional load path for the crash forces.” “These extra parts, added to protect the occupants from a small offset collision, can result in the vehicle moving in a different direction than expected,” the I-CAR document states. “A collision in the front left, for example, may result in unexpected damage to the right rear. This makes it even more important to do three-dimensional measuring on every collision scenario.” John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www .CrashNetwork.com). He can be contacted by email at jyoswick@Spirit One.com.
www.autobodynews.com
BASF Names Employee & Salesperson of the Year
BASF’s Automotive Refinish Business named Richard Oster the 2015 North America Employee of the Year and Robert Alvarado as 2015 North America Salesperson of the Year. The awards were presented at the Coatings Impact Awards presentation in Whitehouse, OH.
Richard Oster (left) and Robert Alvarado (right) receive their awards from Paul Whittleston
“In order for our business to exceed we need to perform on the highest level in every function,” said Paul Whittleston, BASF VP, Automotive Refinish in North America. “Both Rich and Robert are the epitome of high performing employees.” For information, contact Mary Ann Short (248) 948-2253 or maryann .short@ basf.com.
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www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 47
Body Shops Giving Back
Stacey Phillips is the assistant editor at Autobody News magazine. She has more than 20 years of experience writing for a variety of publications. She can be reached at sphillips@autobodynews.com.
Wisconsin Auto Body Shop Creates USO Mobile Canteen for Troops with Stacey Phillips - ASSISTANT EDITOR
A Wisconsin body shop has transformed an old bread truck into a USO mobile canteen that will serve troops at Fort McCoy Total Force Training Center. Richard Kalashian, a service writer at S/S Research Body Shop & Auto Repair Center in Genesee, Wisconsin, oversaw the unique project. Earlier this year, Kalashian received an email from Dan Toomey, president of the USO of Wisconsin, seeking his help. He asked Kalashian to spruce up a worn out, damaged truck and turn it into a gathering place for service men and women. The goal was to create an information center that would provide snacks and drinks as well as entertainment. “Fort McCoy does not really have a terminal to assist our troops,” said Kalashian. “The canteen truck would be able to travel around the airport.” Kalashian, a Vietnam veteran, is no stranger to working on these types of projects. In 2014, he built a military casket cart for fallen soldiers, which is being used at the Southwest Airlines’ airport in Milwaukee, Wisconsin. “I asked Dan, ‘Why me?’” said Kalashian. “He replied that they were very impressed with the building and design of the military casket cart that was transformed from an airport baggage cart at not cost to Southwest Airlines.”
The USO of Wisconsin wanted to transform an old bread truck into an information center for servicemen and women
Kalashian decided to take on the challenge and do something similar for the USO of Wisconsin. The USO (United Service Organizations) is a nonprofit, charitable corporation chartered by Congress that offers a variety of programs and services designed to support service members and their families. Every president has been an honorary chairman of the
USO since it was established in 1941. The project took approximately three months to complete with the assistance of the local community. Robert Williams at S/S Research Body Shop &
They also manufacturered a removable hitch for the front of the vehicle so a power source could be added. Retired marines put in LED lighting. “I truly believe that the veterans
S/S Research Body Shop & Auto Repair Center spent about three months working on the project with the assistance of the local community
Auto Repair Center was responsible for the major body work and painting, and Ron Scheel at Modern Ink Signs & Graphics applied the graphics on the truck. Others involved included Wildon Woods at Woody’s Lock & Safe; Chuck Gosh at C&M Auto Parts; Bill Lemke at Lemke Photography; Local 494 Electrical Union; and VFW Post 5158 Hartland, Wisconsin. “By fundraising in the community and participating in their events and giving back, it bonds us all as one happy family,” said Kalashian. “There’s no limit of what we can do.” In addition to the help from the local community, Kalashian said that he is very grateful for the support of his boss, Robert Williams, owner of S/S Research Body Shop & Auto Repair. May 1 marks the Wisconsin shop’s 40th year in business. In addition to collision repair, Williams also runs a fullservice department. “Rich seems to find the projects and then we follow up and put them into the shop and make sure they get done,” said Williams. “We’re very proud of what we do.” Williams said three of his employees were involved in repainting the green truck white, doing some minor body work and adding chrome wheels.
48 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
don’t get enough acknowledgements,” said Williams, who served two years in the Air Force and six years in the Wisconsin National Guard 128th Air Refueling Wing for the Air Force. “I feel it’s my part to try to do as much as I can to help them.” Kalashian agreed. He served in Vietnam as a platoon sergeant with the 9th infantry division, 3rd battalion 47th infantry from 1968 to 1969 as combat infantry and tunnel rat. “Some came home and some died in Vietnam—I was one of the lucky ones to survive and carry the memories and share the stories of a war that was unpopular and returning veterans were not welcomed home,” said Kalashian. “I was very bitter for many years, but as the years went by I decided to take my anger and turn it into a positive force by working with the community so that together we can support our troops and veterans and make America great.”
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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.
Northern NACE, Risley Hired by SCRS, Collapse of M2, Insurance Advertising with John Yoswick
20 years ago in the collision repair industry (June 1996) The Automotive Service Association (ASA) is calling its first but controversial Northern Autobody Congress and Exposition a success. The event, dubbed “NACE Jr.” in the industry trade press, was held in Chicago and drew about 6,380 attendees—a respectable-sized showing, although fewer than the 8,000 attendees organizers had predicted. Like the annual ASA-sponsored International Autobody Congress and Exposition (NACE), the Northern Autobody show combined technical and management training sessions, motivational speakers and social events with a large trade show. The new show was designed to attract those in the north central region of the country who may be less likely to travel to the southern locations at which NACE is held. While many of the speakers and classes during the show had low attendance, nearly all the shop owners interviewed at the event had positive comments about the 522-booth trade show itself. ASA sources say dates and plans for a 1997 Northern Autobody show have not been finalized. – As reported in Autobody News. The Chicago show was controversial for ASA because some vendors didn’t like the idea of having two major trade shows a year, and because even some ASA state associations felt left out of the decision to hold the event, which some of the groups felt could impinge on their own regional trade shows. While the number of trade show exhibitors and the announced attendance at the event were larger than NACE itself is is today, it paled in comparison to the size of NACE in those days, and that combined with negative feedback from some vendors and state affiliate groups led ASA to shelve the idea of “Northern NACE.”
15 years ago in the collision repair industry (June 2001) The Society of Collision Repair Specialists has hired Dan Risley of Oak Lawn, IL, as its new executive director.
“After an exhaustive, national search, the board of directors has chosen Dan Risley,” SCRS Chairman Don Keenan said. “The sheer volume and caliber of the applicants necessi-
In 2001, Dan Risley became the executive director of the Society of Collision Repair Specialists, only the second person to hold the post since the association was founded in 1982. Risley later went to a job with Allstate Insurance, and in 2013 became the executive director of the Automotive Service Association
tated the almost 2-year search for the right person. The board and I believe we have found the right person to continue the legacy of SCRS as the leading collision repairers’ association.” “It is an opportunity that I longed for,” Risley said. “I am very passionate about the industry, and look to build upon that which John Loftus dedicated 18 years.” – As reported in Autobody News. Risley worked for SCRS until 2008, when he left to accept a position with Allstate Insurance, saying that decision was not an easy one but “would be best for him and his family.” Five years later, he was back representing the industry, becoming executive director the Automotive Service Association in 2013.
10 years ago in the collision repair industry (June 2006) “I think the insurance companies at this point are realizing there’s some real ills to having all their eggs in one basket,” March said. “They don’t want to be in that position again. So I think at least for now they are looking at any larger players real skeptically and making sure they have some back-up positions.” – California shop owner Dave March, speaking about a year after he
50 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
surance industry advertising—the vast majority of which focuses on auto insurance—has grown 211 percent from $1.6 billion in 2001. The biggest jump in advertising last year was by Farmers Insurance, which spent $505 million, up 125 percent from the previous year. – As reported in CRASH Network (www.CrashNetwork.com), June 6, 2011. The growth in insurer advertising didn’t end in 2011; it reached a record-high of $6.4 billion in 2014, up 28 percent from the 2010 total.
took back over the 50,000-square-foot shop he had previously sold to M2, an MSO that collapsed suddenly in the spring of 2005, locking the doors of its 27 shops and leaving a trail of creditors, vehicle-owners and insurers hanging. March continues to own and operate his shop. He’s also developed multiple models of the Watercar, billed as the world’s fastest amphibious vehicle (www.watercar.com).
5 years ago in the collision repair industry (June 2011) One reason motorists shopped and switched auto insurers more aggressively in 2010 may be that auto insurance advertising soared 22.6 percent to a record-high $5 billion last year, according to analysis by Dowling and Partners Securities. That reversed a 4.2 percent decline in advertising in 2009. Prior to 2009, the industry had increased advertising spending for seven straight years. In the past decade, in-
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WIN© Honors 2016 Scholarship Recipients at Gala Awards Ceremony by Chasidy Rae Sisk
On Tuesday, May 3, during the 2016 Educational Conference, WIN members took a break from the informative sessions to honor the 2016 Most Influential Woman (MIW) honoree as well as this year’s scholarship win-
WIN presented their 2016 post-secondary scholarship recipients. (from left to right: Beverly Rook-Twibel, Krystyna Zak, Chelsea Bonds, Tristen Berlin, Jasmine Storey, Petra Schroeder; scholarship winner Nancy McInerney could not attend the conference)
ners. The MIW Reception was held outside and attendees were dressed to the nines as they sampled hors d’oeuvres while networking with their collision repair industry peers. Cheryl Boswell welcomed attendees and introduced Beverly RookTwibell and Petra Schroeder, co-Chairs
of the Scholarship Committee. Recipients of the scholarships are required to possess a 3.0 GPA, provide school involvement, engage in community service, bring a recommendation from their instructor, and submit an essay describing their goals and reasons for joining the collision repair industry and to try to ensure that they plan to stay in the industry. In 2016, WIN awarded ten scholarships: five to high school students and five to post-secondary students. Winners of post-secondary scholarships were Nancy McInerney, Tristen Berlin, Chelsea Bonds, Jasmine Storey and Krystyna Zak. Each of the young women were introduced and their goals shared before their mentors were announced. Berlin plans to work in a body shop or be an adjuster, and RookTwibell will mentor her for next year. Storey plans to own a collision repair shop and will be mentored by Debbie Menz. Bonds hopes to work for Service King and will be mentored by Petra Schroeder. Zak, who wants to be a body technician or estimator, was assigned Michelle Sullivan as her men-
tor. Although McInerney could not be present, her goal is to paint cars for a living; Yen Hoang was assigned as her mentor. Speaking on behalf of the scholarship recipients, Zak admitted that they didn’t know what to expect before attending the Educational Con-
Cheryl Boswell welcomed attendees to the MIW and Scholarship Awards Gala.
ference, but they were all pleasantly surprised by how warm and welcoming WIN members treated them. “We’re used to being alone or among few women, and we are relieved to find a network of women in this industry. We are grateful for this experience and the scholarships which provide so many opportunities. We are all elated to be part of something as
great as WIN. Thank you for your time, energy, leadership and support.” Boswell introduced Trish Serratore, one of WIN’s founding members and a 2000 MIW Honoree, who emphasized the importance of being involved with local schools and the future generation. Looking at the term “Most Influential Woman,” she noted that each word is significant and represents someone truly incredible “whose actions and leadership provide a strong influence.” Since the inception of the MIW Award by AkzoNobel, the program has honored 88 women in celebration of their leadership, mentorship and inspiration. Serratore believes, “It is essential for women in our industry to support other women. We can change the world by speaking out.” Serratore went on to recognize all women who contribute to the success of the collision repair industry, stating that making a difference, staying true to their values, and using their actions to create a positive influence makes each one of them “most influential.” She then introduced MIW Awardee Michelle Sullivan. See story this issue.
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Lean Operations
Quality Control in 6 Easy Steps with David Luehr
With increased pressure for improved quality from both the consumer and insurance partners, systems must be put in place to ensure a higher quality standard. Complexity of the modern vehicle is radically different than it was even a few short years ago and new considerations for verifying proper electrical and mechanical operations is critical. Both insurance partners and OEM Certification programs are also demanding that better quality control practices are abided by. Insurance company DRP inspectors are quick to “write you up” for discrepancies on the estimates (work bid, not performed) and can have dramatic consequences to your relationship of trust, and your placement on the referral list. I want to start out by helping redefine what quality control really means. To many, it is simply an inspection done after a vehicle repair is complete to ensure everything looks good before giving the vehicle back to the customer. The problem with this simplistic approach is that because the vehicle is already assembled, it is impossible to inspect hidden repairs and it becomes difficult to re-repair defects. A system that inspects repair quality during the repair process is much more desirable.
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Secondly, quality control is not only about the physical qualities of the repair, there are several other factors to meet if we are attempting to maintain the standards. For example, consider inspecting a vehicle for work bid, not performed (WBNP) at certain stages of repair. Check for parts and sublet status. Check also for diagnostic trouble codes at this stage. Addressing these considerations are quality control too.
QUALITY CONTROL
qual·i·ty con·trol noun: quality control 1. a system of maintaining standards in manufactured products by testing a sample of the output against the specification.
Based on this definition of quality control there two things I want to point out. First, in order to be successful with any quality assurance program it is imperative that first everyone knows what the quality standard is. The shop must make the time to properly define what is expected as a quality standard if it is to be met. Is the repaired panel straight? Has corrosion protection been applied? What is our standard for finishing out filler work? 80 grit, 180 grit?
The 6 Steps: The 6 step program I am sharing with you is used by many of my Elite clients and has proven to be highly effective.
Step 1. Vehicle Check-in Quality also involves discovering what happened during the accident, what damage is related to the loss and which is prior. Another part of quality involves finding out how to best to communicate with the customer during the repair process and even how you expect to get paid when it’s finished. At this stage you are building quality into the customer experience and gaining valuable information to build quality into the actual repairs.
Step 2. Blueprint Building a blueprint is where you begin building the quality into the repair itself. Using the information obtained during the check-in process you build your repair plan and then you QC it! Everyone agrees that the blueprint largely dictates how well the repair job will travel through the workflow, so why not make sure it’s right? My favorite way to perform this is by loading the parts cart with the items I am checking off my printed estimate. If you have checked everything off your estimate and there are still items not loaded on the parts cart, what does that tell you? I feel it is also important to mention that with the complexity of today’s vehicles, it is important that most vehicles be scanned for diagnostic trouble codes at this stage even if a lamp is NOT present on the instrument panel.
52 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Step 3. Prior to Paint Inspect vehicles prior to paint every time. Major expense is incurred by those that have to re-do something after it is already painted. These re-dos must be avoided at all costs. At the step 3 QC point, you will want to look at everything very carefully using a checklist. Again, you are not only inspecting for the physical quality of the repair but for the procedural quality too. This stage is where you make sure that everything on the estimate has been performed and everything performed is on the estimate. This stage is also a great place for the inspector to verify that all the parts needed for paint are on hand and the parts needed for reassembly will be available in time.
Step 4. Prior to Assembly A quick inspection should always take place to inspect paint quality and color match prior to assembling the vehicle. Verify that everything on the estimate has been painted as planned. For example, ask was the radiator support repair fully painted like it was estimated, or did the painter just touch it up? This is usually a very quick inspection, but a very necessary one.
Step 5. Prior to detail After a vehicle is assembled and prior to getting the detailing done, it is important to take the vehicle on a test drive, recheck for diagnostic trouble codes
(DTCs) and then perform a comprehensive quality control inspection using a checklist. A growing concern in the industry is the number of trouble codes being discovered after repair completion caused by trim panels and other components being removed while the vehicle is being driven from department to department. Many of these trouble codes do not trigger an indicator lamp on the dash and can only be discovered by using a scan tool. This is the QC step where you will want to also recheck all of the electrical and mechanical components, panel fit and operation, fluid levels, and so on. Make sure that all promises made to the customer have been completed. Once everything checks out, it is time to get the car cleaned up.
Step 6. Final QC Final QC is usually performed by the person that was handling the customer file and will be going over the repairs with the customer during delivery. It is simply a quick re-check using a checklist and verifying everything was done as promised and the car is cleaned properly and ready to go. Also some shops may consider file management, final bills, etc. as part of the final QC too. For a free copy of the QC inspection sheet used by Dave’s Elite shops, contact him at david.luehr@elitebodyshop solutions.com.
David Luehr Presents Twice at WIN Conference
by Chasidy Rae Sisk
David Luehr of Elite Body Shop Solutions took the stage to discuss “Mastering Implementation.” Performing at world class levels requires implementation skills which take leadership skills to the next level, but it all begins by changing how you think about leadership. Quoting Zig Ziglar, Luehr told attendees, “Anything worth doing is worth doing poorly until you learn how to do it well.” Luehr identified three things he’s learning the hard way: the use of authority is not a reliable way to influence lasting change, manipulation is different than influence, and using fear as a motivator does not work long-term. Before making a decision, Luehr encour-
aged the audience to ask if it is worth it and if they are able to do it. He then identified three key steps to success. The first step is to determine what needs to be achieved and how to measure it, and Luehr warned, “If you don’t measure it, you can’t improve it.” Next, it is necessary to find vital behaviors which are high leverage acts that happen at crucial moments and have a big impact on the desired result. In covering the final step, determining how to motivate and enable change, Luehr identified six sources of influence: personal motivation, personal ability, social motivation, social ability, structural motivation, and structural ability. Luehr said, “People want the same outcome but sometimes disSee Luehr at WIN, Page 55
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ECS Cautions Collision Repair Shops About Use of Non-Licensed VIN Certification Labels by Stacey Phillips, Assistant Editor
Nearly 18 years ago, Dave Walden, an engineer and car enthusiast, used to spend his free time creating decals for his collector cars. Word soon spread and he was asked to make a VIN sticker for a 1970 Chrysler. Working out of his basement with less than $100, he began producing all types of decals, from emissions stickers to wiring labels. Walden now estimates he has manufactured close to 20,000 different decals since he launched his
company in 1999, ECS Automotive Concepts. Based in Chesterfield, MO, Walden said the company is the only licensed provider of factory exact VIN certification decals, tire pressure labels and emissions decals. “These federal safety labels contain important vehicle safety information,” said Walden. “A licensed VIN product protects the body shops, the insurance companies and the automobile manufacturers from potential lawsuits. A non-licensed product places those venues in an unwanted
liability situation if safety information is incorrectly listed.” Walden said he pioneered and developed the replacement VIN program in September of 1998. The following year was a big turning point for him. On December 13, 1999, Ford licensed Walden to manufacturer their labels. This was later followed by Chrysler and other car manufacturers such as Toyota, Ferrari and Fiat. Walden said it was then that he realized he had started a business. Next, he needed to decide
what to call his new entity. The names of his children came to mind. The initials of his company – ECS – are the three first letters of their names, Erin, Conner and Sarah. Watching his three children ride their electric cars and bikes around his large unfinished basement gave Walden an idea on how to test the durability of the labels. “I would stick the decals on their handle bars and on the seat of their bikes because they use them so much,” said Walden. “I thought ‘what a perfect way to check to see the
Executive Director of IABA Conducts Blind Test of Certified & Non-Certified Labels
Tony Passwater, executive director of the Indiana Autobody Association, has had a lengthy association partnership with ECS for a number of years. Passwater stated, “As an association, we are always looking at products and services that will benefit our members, and this is how I ran across ECS. At a NACE several years ago, I stopped by a booth that caught my eye about label replacements, and met Dave Walden. During the short discussion, many interesting points were made
about the difference between certified verses non-certified labels. Having seen the other two providers and listening to how they were ‘just as good,’ I decided to do a completely blind test of all three offerings. I heard the sales pitches from all three, and all three said they were the best. It sounded like what customers hear when they go to a body shop! So I decided to test this.” Passwater used multiple clients across the United States to order spe-
cific VIN Certification Labels, one each from Ford, Chrysler and General Motors. Part of the test was to determine if the provider did any due diligence on the information provided for reproduction. “I was worried about someone photoshopping a label to do something illegal,” said Passwater. Only one provider caught the issues, ECS. The other two provided labels that could not represent a valid vehicle. Then he tested the appearance of the label compared to the
original. He said that only ECS produced labels exactly like the original ones … the other two had wrong sizes, no logos when present, and not the same paper. This was so evident with the Ford labels, said Passwater. And finally he tested the bar codes. He said ECS was the only one that actually scanned as designed. The other two did not. The test results were released to the industry, and even though it was very clear labels produced by other than ECS were inferior in every
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durability of how they work.’” He said the company’s products use the same tamper-resistant materials utilized by the original equipment manufacturers. The company guarantees that every VIN decal purchased will look exactly like the one that originally came on the vehicle. “You will never receive a ‘one decal fits all’ style that is being offered by the ‘pretenders’ in the industry,” said Walden. He cautions body shops about companies that use manufactured disclaimers on their non-litest area, some industry representatives discounted the results. “I was at a loss, as if I was in cahoots with ECS in some way,” said Passwater. “I attend a great number of national events including CIC, and when we get into a discussion about aftermarket parts and how they do not fit or replicate the OEM parts, I see no difference with this as well … cheap labels are just knock-offs of the originals and nowhere close to what I have seen with what ECS produces.”
censed products. In addition to complying with the original federal VIN regulations, ECS labels are approved and commissioned by the original equipment manufacturer. “This eliminates the possibility of impropriety that is
Continued from Page 52
Luehr at WIN
Canada.
In addition, Walden said that ECS is a preferred vendor for several MSOs. The company has been working with Avis and Budget over the last couple of years for their label replacements.
agree on the steps to get there. If you keep score, it makes everything more interesting. The important thing to remember is you’ve always got to keep learning. The best way you can predict your future is to create it. You have the power to set your own destiny.” In his presentation titled “Dealing with Fear: A Secret to Success,” Luehr defined success as an affirmative answer to the following: Did I live? Did I love? Did I matter and make a difference in the world? He explained that everything an individual wants is on the other side of fear; each person needs to learn to get out of his or her own way. He stressed, “Fear is not a bad thing if you frame it right in your mind. Get comfortable being uncomfortable!” Luehr advised attendees to deal with fear with practicing awareness, visualizing the desired outcome, associating without a higher quality of people and embracing the opportunity to learn new things. He ended with “Quit letting your mind control you automatically. The more you do it, the less you’ll fear it!”
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Power of the Past, Force of the Future: WIN's 2016 Educational Conference by Chasidy Rae Sisk
Excitement and positive energy filled the room as 188 attendees gathered at the Women Industry Network’s (WIN®) 2016 Educational Conference themed Power of the Past, Force of the Future. On the ten year anniversary of WIN’s inception, association members from around the country met in Tampa, FL to honor the
Petra Schroeder, Incoming WIN Chair welcomes members to the conference
past that has led to the present and learn how to best prepare for the challenges on the horizon. WIN’s 2016 Educational Conference was held on May 2-4 at the Hilton Tampa Downtown which contributed an air of elegance to the proceedings. During registration and orientation, attendees had a chance to get to know each other, and additional networking opportunities were offered between sessions throughout the conference. For new members, WIN offered a chance to attend a Member Orientation session, hosted by Michelle Sullivan, WIN’s 2016 Most Influential Woman (MIW) recipient, and Petra Schroeder, Incoming Chair of WIN, who encouraged members to get engaged by joining a committee. After introducing WIN’s 2016 scholarship winners, Sullivan encouraged the industry professionals to mentor young people. Marcy Tieger and Frederica Carter took the stage to go over the agenda and recognize WIN’s founders, past chairs, scholarship recipients, Board of Directors and sponsors. In between educational seminars, attendees also heard updates from WIN’s Committees. Throughout the conference, Tieger and Carter provided tidbits from WIN’s decade-long history, Carter noted the good energy present from WIN’s first meeting as women gathered without feeling the need to prove themselves in
a male-dominated industry. Tieger reScholarship Walk. This year’s Schol- to WIN has benefitted each of them. calls WIN issuing the challenge for arship Walk raised $3100 towards The founders praised the camaraderie women to “be bold.” WIN’s Scholarship Fund. of WIN members and stressed the imFrom the beginning, WIN strove Tuesday morning’s Key“to make sure members felt invited, note Address entitled “The warm and safe,” Carter noted. Tieger Gold Medal Mindset” which encouraged attendees to reconnect and was presented by Olympic establish new relationships. Champion Shannon Miller. The first presentation of the event Reminiscing on her career as was “Guess Who’s One of the Most a gymnast, Miller recounted Strategic Links in the Automobile her successes as well as her WIN’s founders met for a “Power of the Past” panel Value Chain?” by Susan Lombardo, failures. Emphasizing the im- discussion Senior Vice President of Acquisitions portance of setting goals, for Enterprise, who shared informamaintaining a positive outlook and portance of strategic planning as the tion on the rental car industry and her being committed to excellence every association grew before Caspersen inown career, and she noted that colli- single day, Miller advised attendees to troduced Incoming Chair Petra sion repair operators are a strategic develop a “Gold Medal Mindset” Schroeder and Jaclyn Byers from link in the automotive value chain. To which is simply an attitude of going WIN’s Technology Task Force. attendees hoping to be successful in out and winning the day, no matter After Schroeder explained WIN’s their careers, Lombardo advised, what life throws at you.” See related past initiatives, she noted their current “Don’t take things for granted, and al- article this issue. initiatives are to grow WIN’s network ways ask about opportunities. You are After lunch on Tuesday, Chair and to build organizational capacity to the driving force of the future.” Denise Caspersen introduced WIN’s better serve that growing network, In “Getting Personal with Social founders for the “Power of the Past” which begins with a focus on technolMedia,” Kristen Felder, ogy which is an internal component of Owner and CEO of Collision WIN’s Force of the Future goals as Hub and Engage Target Byers attempts to make the associaMedia, addressed using sotion’s website easier to use and to incial media in marketing camcrease WIN’s online presence. paigns. Today’s consumers Next, Jennifer Solcz from and on are often less interested in the behalf of AkzoNobel awarded WIN a product than the people beTechnology Initiative Founders Scholhind that product, so Felder arship of $12,500. provided advice on the best The afternoon ended with three ways to use social media to breakout sessions. Colette Bruce of advantage. She also cautioned Team Safety presented a seminar on Throughout the conference, numerous networking opporattendees about the dangers tunities allowed members to make new friends OSHA regulations and safety requireinherent in social media posts, ments. but her overall messages reiterated: panel discussion. The founders in atAMI’s Jeff Peevy led “The His“Companies don’t do business with tendance included Frederica Carter, tory and Evolution of Training in the companies; people do business with Marcy Tieger, Geralynn Kottschade, Collision Repair Industry,” stressing people.” Kathy Mello and Trish Serratore. that training focuses on specific Monday evening concluded with From there, the panel of WIN tasks while education is more gena Welcome Reception on the Hilton’s founders explained that they strove to eral knowledge. See related article patio which allowed attendees to create a safe harbour for collision rethis issue. enjoy the beautiful weather, appetiz- pair industry professionals from all Following the educational porfacets and levels of the industry. Mello tion of Tuesday’s proceedings, WIN explained, “These were people who members gathered that evening for the go through the same things as us every MIW and Scholarship Awards Gala day—it makes us better personally where WIN’s 2016 scholarship recipand professionally.” ients were recognized and WIN memWhen Caspersen asked the founbers honored Michelle Sullivan, ders about their proudest WIN moWIN’s 2016 MIW honoree. ments, Kottschade said, “Being a part During the General Session on of this group has been one of the best Wednesday morning, Caspersen beexperiences in my life. People step up stowed WIN’s Cornerstone Award where there’s a need, and there should upon Shelly Andrews and Katie Shannon Miller the most decorated US gymbe no fear to get involved. I’m proud Henwood. The award honors a Board nast, explains the “Gold Medal Mindset.” to be a part of this organization.” of Directors member who exemplifies ers and beverages while engaging in The ladies continued to discuss extraordinary service, and Caspersen the scheduled networking opportunity. their efforts to plan WIN’s first Edualso recognized new Board of DirecTuesday began early for the 116 cational Conference with an all-voltors members Denise Kingstrom, See WIN Conference Page 59 WINners who joined the annual unteer group as well as how belonging
56 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
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Continued from Cover
Counterfeit Parts
air bags, fuel filters, window shields and tires for example. Anything that they can counterfeit for profit, they will.
Are you finding this is a growQ: ing trend and what is being done to combat these crimes?
The breadth of the problem A: was brought to our attention by the automobile industry. Individual
auto makers came to us and said, “It’s a problem, they are counterfeiting our products.” They asked if we would shepherd them along to develop a coalition. I’m happy to say that since then we assisted with organizing a coalition. They call themselves the Automobile Anti-Counterfeiting Coalition —the A2C2. It’s made up of almost every automobile manufacturer and they meet four times a year. We generally attend those meetings as well. They regularly provide intelligence and lead information to us. They’ve been very good partners. Last year alone based on our work with that coalition we opened up 35 cases. We had 12 criminal arrests, 16 indictments and 15 convictions. The 130 seizure incidents were worth an estimated $5.59 million MSRP.
Where are the counterfeiters Q: based? What we have found is that 85A: 95 percent of all counterfeit goods are coming from China. They
are either coming from China or transshiped to Hong Kong or to other countries. Just under 50 percent of counterfeit goods seized last year came directly from China. Just under 35 percent came from Hong Kong and five percent came from Singapore. We believe that all those goods are originating from China because Hong Kong and Singapore don’t have the manufacturing capabilities that China does, but the goods are transshipped through Hong Kong and Singapore where the manifest is being changed in order to trick U.S. customs. I happened to be in China last September visiting with the Chamber of Commerce, various companies, embassies and Chinese law enforcement.
There was a case where the Chinese Ministry of Public Security took down an operation involving counterfeiters in China who were selling counterfeit Ford brake pads and air bags. Counterfeiting is a global issue. It’s very easy for the counterfeiters to start up websites and sell things online. The operators of some of these websites are to deceive the public. Sometimes the intent is to just sell to people who know they are going to get a counterfeit part, hoping that they believe the consumer feels the counterfeit part is doing their job. It varies who they target. Potentially, criminals could be doing this until the automobile manufacturer serves a cease and desist order or civilly take these websites down. It’s a trademark violation to represent a counterfeit good as authentic on copyright-infringing websites. It’s so easy these days to start websites. They have very good webmasters who put these things together; they are very advanced. Sometimes a site is up for a month, and then it gets shut down and they are ready to go with another illicit website.
What should collision repair Q: shops be aware of in regards to counterfeit parts?
A:
What we try to tell the consumer is to make sure they are buying OEM parts. If not, it should be from a reputable distributor that can be confirmed with the manufacturer. If there is a doubt, there should be a legitimate phone number to call. Go that extra mile when purchasing these parts for customers to ensure these are legitimate parts. A lot of it comes down to buyer beware. If it’s too good to be true, it usually is. What is the biggest concern in Q: regards to counterfeit parts? Certainly the consumers’ health A: and safety is at risk anytime they get into a car with a counterfeit
part. We’ve seen counterfeit safety belts that weren’t secure and air bags that have exploded so dramatically they probably would have done harm had they gone off. Some of them even failed to deploy. We actually investigated someone who was illegally smuggling counterfeit airbags into the United States. Along with the National Highway Transportation Safety board, we seized
58 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
10 of them. Eight failed to deploy and two would have deployed in a manner that would have harmed the consumer. Those are the kinds of things that keep me up at night. It’s the consumer’s health and safety, especially when you have family members and kids and everyone else getting into a vehicle with counterfeit brake pads. It’s maddening.
facility and made four or five arrests. They also seized the counterfeit air bags, and US and Chinese currency. It was an extremely successful operation.
smuggling them into the United States. They thought they were being cute by driving them down from Canada into Northern WA; then they would mail them via US mail to repair shops. They did that because they thought they could disguise that they were coming from the United States versus coming from overseas. We arrested one as he was smuggling a batch coming in. It led to his brother being indicted. We shared the information with the Chinese Ministry of Public Security in Beijing and they shut down a manufacturing
issues when they are procuring items. We have a general procurement product that we can share as well as awareness training. It is called Acquisition Professional Training: Counterfeit Awareness, Mitigation, Identification and Reporting from the National Intellectual Property Rights Coordination Center.
How should shops get in touch Q: with you if they suspect they have accidentally purchased any coun-
terfeit goods and want to report it?
Do any specific cases come to They are absolutely welcome Q: mind A: that you can share? to contact us. We’ve heard from them in the past. We’re always Two summers ago a couple of open to sharing information with anyA: Canadian citizens were pur- one about counterfeiting. We can cerchasing air bags from China and tainly help them with supply chain
For more information, visit www .iprcenter.gov or email iprcenter@dhs .gov.
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Continued from Page 56
WIN Conference
April Lausch, Debbie Menz, and Jenny Anderson before discussing the association’s recent accomplishments and upcoming initiatives. Event emcees provided some history about WIN’s early years with Tieger noting, “We’ve come a really long way, and we’re extremely proud of how far we’ve gotten.” Next, Karen Fierst, owner of KerenOr Consulting, presented “Lessons Learned on My Journey to and Through the Collision Repair Industry: Next Stop: China.” Fierst began with a personal biography, sharing information about her youth and her education. She advised attendees, “You need to have a vision, identify your core values, go for it, exude confidence, seek growth opportunities, find mentors, start networking, and evaluate. Have a vision to find your path.” Fierst identified how to approach each of these steps. She also explained the importance of the four domains that define an individual: self, home/family, community and work. She encouraged everyone, “You have got to be
yourself. Somehow, you have to figure out how to operate in your own personal sphere of comfort and according to your core values.” Laurie Altman from 3M then presented “What’s Next? From the Eyes of an Industry Leader” which she began by sharing information about 3M’s vision and strategy as well as her own career. She discussed the rapid changes currently impacting the collision repair industry, such as MSOs, autonomous vehicles, OEM-certified parts, and a variety of other issues related to technology. Altman advised attendees to “make change your best friend, but stay true to what you believe. Don’t let others tell you what you can or should do—you’re probably capable of more than even you believe!” During the last educational session, Mark Claypool, President and CEO of Optima Automotive, presented “Lions and Tigers and Millennials... Oh My!” Claypool defined the millenials as those born after 1980, and he listed some of the stereotypes associated with this group of young adults. Claypool’s presentation focused on millennials as customers and the best ways to market to them. He outlined some of the challenges employers
may experience with this generation who puts less focus on work and more on having a personal life. As a WIN founder, Claypool also praised WINners: “What you’ve accomplished in the last ten years is nothing short of miraculous, but there’s still a lot of work to be done. If it doesn’t challenge you, it doesn’t change you; let’s see what your best can do over the next ten years for WIN, your business and the collision repair industry. You are the force of the future.” As the conference ended, Debbie Clark announced that WIN’s 2017 Educational Conference will be held on May 8-10, 2017 in Denver, CO. WIN’s 2016 Educational Conference sponsored included AkzoNobel, Axalta, BASF, DCR Systems, Enterprise Rent-A-Car, PPG, ASE Certified, 3M, Allstate, Caliber Collision, Insurance Auto Auctions, Service King, State Farm, Valspar Automotive, ABRA Auto Body and Glass, AudaExplore, CAPA, CARSTAR, CCC Information Services, Copart, FinishMaster, Fix Auto, GEICO, Gerber Collision & Glass, Hertz, MetLife, Mitchell International, OEM, The Romans Group, The Villacorta Law Firm PC, and Safelite Solutions.
Continued from Page 34
Ted Stein Discusses
race to the bottom. It simply cost more to repair today’s vehicles compared to yesterdays’. But there are some insurers that are more concerned with CSI and quality repairs and retention – right? Retain that insured so he renews his policy. Now of course they all have to be cognizant of claim costs – right? But I think at some point retention becomes more important than claim cost.
What would you say to shops Q: that are thinking of getting involved in the CAA?
Well, you wouldn’t be a doctor and not be a member of the A: AMA, right? I don’t know if people
understand the value that the CAA brings to their facility. This is my second time as State President, because I believe that this industry can exist where shops can be profitable. There’s a triangle here (insurers, vendors and repairers) and I believe we can achieve a triple win and everyone can succeed. Some folks tell me I’m crazy, but I believe it can happen.
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www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 59
Training Class Updates from Chief University, Website & Product Announcements by Chief To stay current with the ever-changing collision repair world, Chief University has improved and updated its curriculum for 2016. To make collision repair training as accessible as possible, Chief University will offer over 60 updated training classes for technicians, estimators and insurance appraisers across North America this year. For a complete schedule and to register, visit www.chiefautomotive.com/Chief -University “Due to the whirlwind changes in vehicle design, technology and materials, we have found that training is the most asked for aspect of collision repair in shops around the world,” said Ken Boylan, global training manager. “Before price and delivery, customers want to know all about how their technicians can be trained. Updating the curriculum at Chief University is a
course features instruction on the proper metal identification and subsequent repair methods required due to the advanced high-strength steels and structural aluminum introduced by the manufacturers. Both courses have been updated to cover the advanced metals and construction methods currently used by OEMs. Significant upgrades have been made to Chief University’s Computerized Measuring Training class to make it more user-friendly for technicians, according to a company press release. In this class, technicians learn how to properly use Chief’s LaserLock lasermapping and Vector computerized measuring systems to identify structural misalignment and maximize both repair quality and profitability. Chief training has been certified by the National Institute for Automotive Service Excellence (ASE) for compli-
The Globaljig® Presented by Chief® line of benches and frame measuring equipment is featured in a new section of the Chief website at www.chiefautomotive.com/Global-Jig/. The user-friendly site uses visual images to help guide visitors through the Globaljig product lineup
continuous process, and we’ve really concentrated on improving the handson training that collision repair technicians and insurance professionals need to keep up with the vehicle structural and material changes taking place so rapidly.” Chief University’s newest course, Aluminum Damage Analysis and Repair Technology, covers aluminum forming methods and metal characteristics, as well as damage analysis, repair decisions and techniques for working with aluminum. Chief University’s popular Design Based Repair
ance with the Continuing Automotive Service Education (CASE) Standards. Most Chief University classes are approved for I-CAR credit hours through the I-CAR Industry Training Alliance® program. The Globaljig® Presented by Chief® line of benches and frame measuring equipment is featured in a new section of the Chief website at www.chiefautomotive.com/GlobalJig/. The Globaljig Presented by Chief website area offers a range of customer resources, including: product
60 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
descriptions and specifications, downloadable product manuals and comprehensive literature, collision bench photos submitted by customers, OEM approval information and frame measuring accessories. Visitors can request information or support via convenient online forms in addition to finding their local Chief distributors. “Customers who are familiar with the Chief website will feel right at home in the new Globaljig Presented by Chief area of the site,” said Jared Miller, Chief web design specialist. “The new section carries the Globaljig green color throughout, while retaining the look, feel and navigation of the host Chief website. The entire Chief website is compliant across all Internet browsers and offers streamlined searching and intuitive navigation to give visitors a clear, concise path to the products and information they seek.” Chief has introduced the MI200T, an all-new squeeze-type resistance inverter spot welder with lightweight transformer pliers for repairing highstrength steel. “The new MI200T has all the features shops need to efficiently and properly repair vehicles made with high-strength steel and adhesives,” says Mickey Swartz, director of global product management for Chief parent company Vehicle Service Group (VSG). “It’s smart: Our TrueAutoMode technology reduces the chances of human error by automatically setting the weld parameters for every weld. It’s strong and efficient: The MI200T can produce up to 14,500 amps of welding current while drawing less power. It’s flexible: The MI200T has the industry’s longest welding cable at nearly 20 feet and many optional C arms to choose from so technicians can reach even the toughest spots. And it’s affordable. This top-of-the-line smart welder with trans-gun is priced even lower than many competitors’ basic cable models.” The MI200T’s transformer pliers draw up to 40 percent less power than other standard cable pliers. Also, the amperage service required for the MI200T typically requires only a 40A service. In addition, the MI200T’s duty cycle is so high that the technician can operate the welder continuously without having to slow down to let the welder cool off, according to a company press release. Liquid cooling
to the tips is standard. The MI200T also offers the TrueAutoMode automatic welding system. TrueAutoMode detects the metal type and thickness, as well as the presence of adhesives and insulation, and then automatically adjusts and sets the welding parameters accordingly. It provides instant feedback to the technician about the weld result, while simultaneously logging the results into memory. At the end of a job, with the use of a common SD card, the technician can print out a report that includes information on the settings, messages andl weld parameters.
The new Chief MI200T squeeze-type resistance spot welder with lightweight transformer pliers is more powerful, efficient and maneuverable than other spot welders — and it costs less, too
Technicians interface with the MI200T through a compact control panel featuring an LCD screen and easy-to-follow graphical controls. To change arms, pop off the cooling line, flip a lever and remove the arm. Reverse the steps to install the new arm. To learn more, visit www.chiefauto motive.com/welding/spot-welders/ MULTISPOT-MI200T/. For more information about Chief, visit www.chiefautomotive.com or call (800) 445-9262. Chief is also active on Twitter, www.twitter.com/ ChiefAutomotive, and Facebook, www .facebook.com/ChiefAutomotive.
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Puente Hills Subaru City of Industry (626) 322-2555 (626) 322-2600 Fax Mon.-Fri. 7-6; Sat. 8-3 parts@puentehillssubaru.com tony@puentehillssubaru.com
Sierra Subaru of Monrovia Monrovia (626) 359-8291 (626) 932-5660 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@sierracars.com www.sierraauto.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
NO. CALIFORNIA
Elk Grove Subaru Elk Grove (877) 475-0659 (916) 509-8559 Fax Mon.-Fri. 8-6 shawnh@elkgrovesubaru.com www.elkgrovesubaru.com
Maita Subaru
Sacramento (877) 484-4870 (916) 484-4876 (916) 484-4878 Fax Mon.-Fri. 7:30-5:30 www.maitasubaru.com
Phoenix (866) 641-9880 (602) 776-6407 Fax Mon.-Fri. 7-6; Sat. 8-4 wholesaleparts@camelbackdifference.com
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 San Bernardino
San Bernardino (909) 888-8686 (909) 571-5483 Fax Mon.-Fri. 7:30-6; Sat 7:30-5 parts@lovesubaruparts.com www.sbsubaru.com www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 61
Jeff Peevy Recounts History of Training in the Industry
AMI’s Jeff Peevy presented “The History and Evolution of Training in the Collision Repair Industry.” at the recent WIN Conference in Tampa. Peevy reminded WIN attendees that training was achieved through ap-
AMI’s Jeff Peevy presented “The History and Evolution of Training in the Collision Repair Industry.”
prenticeships in the early years, going back to the early 1900s when the internal combustion engine was developed. “As the number of vehicles increased during World War I and World War II, there became a need to separate mechanical repairs from paint and body work, and though formal training started to take hold, it was mostly driven by sales initiatives with DuPont, for example, opening
training facilities in the 1960s. Formalized training grew throughout the 1970s, changing focus to technical knowledge near the end of the decade leading to the establishment of ICAR in 1979. Training developed throughout the 1980s but, during the 1990s, the collision repair industry began seeing training as a business requirement, rather than a way to meet the need to learn. Modern training trends reveal that over 50% of training is achieved online or via virtual classrooms. Peevy predicts that this number could increase as much as 70% by 2020. He believes the future of training will become more learner-centered and results-focused as it moves from being seen as a way to meet external requirements to a way of maintaining a sustainable competitive advantage. Peevy said that the training of the future will cater to individual learning styles which will help measure the effectiveness of the training. He stated, “Learning is the key. How we get it is less important than getting it. What you learn makes a difference in performance, not how many courses you’ve taken.”
BASF New National Strategic Accounts Manager
BASF Automotive Refinish hired Christopher Kugler as the new national strategic accounts manager. Most recently, Kugler was the director of Automotive Aftermarket at ILJIN USA, a producer of wheel bearings and other automotive components. Prior, he was the North American national accounts manager for Saint-Gobain (Norton) Abrasives in the collision repair industry. “Chris is a strong team player and has excellent experience with national account management,” said Tim Dawe, BASF sales director. “Over the years he has developed and exChristopher Kugler, ecuted winning BASF’s new strategies within national strategic the Multi-Shopaccounts manager Operator (MSO) segment.” Kugler’s main responsibilities in his new position are growing and building relationships in the MSO segment. For information, visit www.basf refinish.com
Hyundai & Cisco Connected Car Project
Hyundai Motor Company is accelerating developments in connected car technology by collaborating with Cisco. The cooperation is part of Hyundai Motor’s wider strategy to establish an industry-leading connected car platform through collaboration with leading technology partners. Hyundai Motor will initially focus on the next generation of in-vehicle networks at the core of connected car technology, optimizing the transmission and reception of data within the vehicle. The technology will not only transmit and receive data faster, but also allow each subsystem inside the vehicle to communicate more effectively; this is essential to enabling future connected cars to incorporate the increasingly complex features that transfer evergrowing amounts of data in real time. Hyundai Motor and Cisco will collaborate to create a testing environment for vehicle simulation. The companies will cooperate on basic research to thoroughly analyze the flow of data and verify new technologies for connected cars. Moreover, Hyundai Motor will invest in cloud, big data analytics and connected car security technologies, with huge investment in research and development.
Collision Repair Industry Mourns Loss of James Moy
Technician Training Program and began focusing on structural repair, reOn Sunday, April 24, tragedy struck the finishing and damage analysis. Moy collision repair industry with the pass- achieved I-CAR Individual Platinum staing of James Moy, beloved consultant, tus and became an ASE-certified master mentor and friend to hundreds of indus- collision repair/refinish technician and try professionals around the country. damage estimator. In addition to being a Within hours of his untimely death, so- licensed and bonded adjuster in over ten cial media outlets were filled with an states, Moy spent part of his career as an outpouring of love and symI-CAR instructor. Moy’s expepathy which identified Moy rience in the industry eventuas “knowledgeable and pasally led him to become a coach sionate” and “one of the most for VeriFacts Automotive, and influential people I have enhe also lent his expertise as a countered.” At 8:28 pm on Senior Consultant for PreciApril 24, 44-year-old Moy sion Auto Group, aiding other was thrown from his motorcycompanies as well, including cle in Lakeview, NY as he assisting Larry Montanez with James Moy rode alongside longtime friend training courses and shop evalLarry Montanez of P & L Consultants. uations for P & L Consultants. An avid Moy was pronounced dead at the scene. motorcyclist, Moy also belonged to the Everyone who met James Moy consid- IDONTKNOW MC (Motorcycle Club) ered him to be a mentor and a friend, and where his brothers knew him as Chopthis was evident during his viewing in sticks. Everyone who knew James Moy Brooklyn on Thursday, April 28 as fam- will never forget his friendly personality ily, friends and business associates and his eagerness to offer advice on flooded the funeral home and streets out- proper repair procedures. In his short side to say their final farewells. There time on Earth, he made countless contriwere 750 people in attendance, includ- butions to the collision repair industry ing collision repair professionals, shop and positively influenced a multitude of owners, industry leaders, motorcycle industry professionals. He will be greatly clubs and skin care sales people. Moy missed, and his loss will be deeply felt began his automotive career in the for years to come. A memorial scholarearly 1990s, working as a tow truck op- ship has been established to honor erator for a collision repair facility. He James Moy, and donations can be made soon attended the New York State Auto at www.gofundme.com/JamesMoy. by Chasidy Rae Sisk
62 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
THE RIGHT PARTS For Your Collision Job Visit these Genuine Hyundai Parts Dealers
So. California
HARDIN HYUNDAI
Anaheim 1271 S. Auto Center Dr.
714-678-2049 (714) 533-1355 FAX
www.hardinhyundai.com
KEARNY MESA HYUNDAI San Diego 4797 Convoy St.
800-469-9731
(858) 300-3331 FAX
M-F 7am - 6pm; Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com
Utah
FINDLAY HYUNDAI Saint George 1405 S. Sunland Dr.
435-986-8835
(435) 986-8822 FAX
M-F 8am - 5pm; Sat 8am - Noon
OSHA’s Final Rule to ‘Nudge’ Employers to Prevent Workplace Injuries, Illnesses The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) issued a final rule in May to modernize injury data collection to better inform workers, employers, the public and OSHA about workplace hazards. With this new rule, OSHA is applying the insights of behavioral economics to improve workplace safety and prevent injuries and illnesses. OSHA requires many employers to keep a record* of injuries and illnesses to help these employers and their employees identify hazards, fix problems and prevent additional injuries and illnesses. The Bureau of Labor Statistics reports more than three million workers suffer a workplace injury or illness every year. Currently, little or no information about worker injuries and illnesses at individual employers is made public or available to OSHA. Under the new rule, employers in high-hazard industries will send OSHA injury and illness data that the employers are already required to collect, for posting on the agency’s website. Just as public disclosure of their kitchens’ sanitary conditions encourages restaurant owners to improve food safety, OSHA expects that public disclosure of work injury data will en-
courage employers to increase their efforts to prevent work-related injuries and illnesses. “Since high injury rates are a sign of poor management, no employer wants to be seen publicly as operating a dangerous workplace,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “Our new reporting requirements will ‘nudge’ employers to prevent worker
competing to hire the best workers will make injury prevention a higher priority. Access to these data will also enable employers to benchmark their safety and health performance against industry leaders, to improve their own safety programs. To ensure that the injury data on OSHA logs are accurate and complete, the final rule also promotes an employee’s right to report injuries and ill-
injuries and illnesses to demonstrate to investors, job seekers, customers and the public that they operate safe and well-managed facilities. Access to injury data will also help OSHA better target our compliance assistance and enforcement resources at establishments where workers are at greatest risk, and enable ‘big data’ researchers to apply their skills to making workplaces safer.” The availability of these data will enable prospective employees to identify workplaces where their risk of injury is lowest; as a result, employers
nesses without fear of retaliation, and clarifies that an employer must have a reasonable procedure for reporting work-related injuries that does not discourage employees from reporting. This aspect of the rule targets employer programs and policies that, while nominally promoting safety, have the effect of discouraging workers from reporting injuries and, in turn leading to incomplete or inaccurate records of workplace hazards. Using data collected under the new rule, OSHA will create the largest publicly-available data set on work injuries
“Since high injury rates are a sign of poor management, no employer wants to be seen publicly as operating a dangerous workplace” — Dr. David Michaels
and illnesses, enabling researchers to better study injury causation, identify new workplace safety hazards before they become widespread and evaluate the effectiveness of injury and illness prevention activities. OSHA will remove all personally identifiable information associated with the data before it is publicly accessible. Under the new rule, all establishments with 250 or more employees in industries covered by the record-keeping regulation must electronically submit to OSHA injury and illness information from OSHA Forms 300, 300A, and 301. Establishments with 20249 employees in certain industries must electronically submit information from OSHA Form 300A only. The new requirements take effect Aug. 10, 2016, with phased-in data submissions beginning in 2017. These requirements do not add to or change an employer’s obligation to complete and retain injury and illness records under the Recording and Reporting Occupational Injuries and Illnesses regulation. The final rule is available on Federal Register at: https://s3.amazonaws .com/public-inspection.federalregister .gov/2016-10443.pdf For more information, visit www .osha.gov.
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LARRY H. MILLER NISSAN MESA
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DOWNEY NISSAN DOWNEY
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888-444-1355
Largest Inventory in Arizona jberry@lhmauto.com www.lhmnissanmesa.com
M-F 7-6, Sat. 7-5
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(562) 334-1195 Fax Billy Smith - Parts Manager www.downeynissan.com
FIRST NISSAN SIMI VALLEY
855-397-1744 (805) 526-5007 Direct (805) 526-0979 Fax M-F 7-6, Sat. 7:30-5
METRO NISSAN INFINITI OF MONTCLAIR MONTCLAIR
800-243-5575 (909) 625-4087 Fax Ask for Rita or Steve Large inventory available
MOSSY NISSAN NATIONAL CITY
800-300-7251
(619) 474-4347 Fax Largest Inventory in San Diego www.mossyparts.com
NISSAN OF BAKERSFIELD BAKERSFIELD
888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5
www.nissanofbakersfield.com N. CALIFORNIA
FUTURE NISSAN ROSEVILLE
916-677-5251 (916) 786-0743 Fax M-Sat. 7:30-6
cbohanna@futurenissan.com www.futurenissanparts.com
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 63
House of Kolor Announces New Products for Spring 2016 House of Kolor by Valspar announced the spring launch of eight new products, including four limited-edition colors that debuted at SEMA Show 2015 in Las Vegas. The limited-edition colors — Black Forest, Blue By-You, Blood Orange and Righteous Rojo — are available as a factory pack for a limited time. They are also available to be mixed in the Shimrin2 Intermix System.
The Spring Launch includes factory pack colors, clears and sprayable primer
“What’s fun about these colors is that you can easily get the look and depth of a kandy with the ease of applying a basecoat clearcoat,” said Jon Kosmoski, founder of House of Kolor. “These four uniquely crafted limited edition colors will provide you with the look of a custom color in no time.” House of Kolor has also released a new urethane flat clear (FC21.001), a low-VOC, flat finish clearcoat that
Ford Approves Two UPOL Aerosols for Shops
Ford Motor Company’s Toxicology and Environmental Quality Office has approved the use of U-POL ACID#8™ and GRIP#4™ aerosols in any of their facilities—manufacturing, design and body shops. The official identity of U-POL in the Ford GSDB (Global Supplier Data Base) is AJR6A. ACID#8 Acid Etch Primer promotes paint adhesion and corrosion protection to difficult substrates, like galvanized steel and aluminium. The company said ACID#8 offers superior adhesion and fast drying properties, making it ideal for bare metal areas prior to application of primers and top coats. (U-POL Part UP0741V, Ford Part 196377. GRIP#4 Universal Adhesion Promoter is an all-in-one adhesion promoter for paints, adhesives and sealants. The company said it promotes proper adhesion on all automotive surfaces, from plastics to aluminum to painted surfaces. (UPOL Part UP0799, Ford Part 19642. “We are very proud to hear that Ford confirmed what we already knew. UPOL products are made to the highest quality standards and designed to save the professional time and money,” said Mike Sanders, VP, U-POL, North America.
can be used over all solvent-based basecoats. The clear sprays easily, dries quickly and is mixed with the new KUF21.HP1 catalyst. The new Urethane Rocket Klear. (URC01.Q01) is ideal for those small pieces that need to look show ready in quick time. URC01 does not require any flash time between coats. House of Kolor introduces a new sprayable primer (SP1600.G01), a premium, low-VOC, high-build polyester primer surfacer that provides excellent adhesion to fiberglass and primed surfaces such as aluminum and steel. “From the trend-setting limitededition kolors to the incredible clears, these products have something for everyone,” said Gina Mahan, House of Kolor brand manager. “We take pride in offering products to better serve our customers through advancements in color and technology, and the products in the spring 2016 launch are no exception.” The products are available immediately and comply with the U.S. National Volatile Organic Compound Emission Standard for Automobile Refinish Coatings. For more information or to order, please contact your House of Kolor representative, or customer service at 1-800-4442399.
New SATA Dry Jet 2 Introduced
To ensure a fast drying process following the application of waterborne paint, it is vital to apply as much air as possible within a short period of time onto the painted object. To achieve this objective, the new SATA dry jet 2 also relies on the Venturi principle like its predecessor: In addition to the compressed air feeding
GFS’s REVO Systems Included in Ford Program
Global Finishing Solutions (GFS) announced its inclusion in the Ford Rotunda Dealer Equipment Program with its REVO Accelerated Curing Systems. The REVO Systems, which use short wave electric infrared technology, can improve paint shop throughput up to 80 percent, according to a company press release. “Global Finishing Solutions is excited to work with the Ford Rotunda program to provide customers with products that can be game changers for the industry,” said Brandon Lowder, vice president of auto refinish sales at GFS. “With the REVO Systems, GFS is proud to be the sole provider of infrared curing equipment to the program.” Introduced in 2014, GFS’ REVO Accelerated Curing Systems leverage electric IR technology to significantly reduce curing times for both prep and paint phases of repairs. Available in multiple models ranging from a handheld unit to larger systems that integrate into paint booths and prep areas, the REVO Systems are designed to fit a variety of needs while working within a shop’s current footprint.
Vehicle Repair Installment Plans For Sales Growth
Collision Financial Services, a company that specializes in creating flexible installment vehicle repair payment plans, announced that its clients are finding additional sales by using, “InHouse Loans.” Collision Financial Services said that smart companies realize that being payment-flexible can lead to major sales growth. “In-House Loan implies ‘special’ to the customer and could be a benefit when CSI surveying is done. Who does not appreciate special treatment? Can you say ‘referral customers,’” said Jeff Steigerwald, Collision Financial Services chief financial manager. He said within many collision repair businesses, a rule of 75/25 applies. This means 75% of a shop’s customers arrive from insurance contacts shops commonly work with. The other 25% are from small and unfamiliar insurance companies or customer pay opportunities. These often will provide the smaller portion of a shop’s sales volume. The company said a willingness to offer flexible vehicle repair installment plans can often be key to bringing these customers on board. Visit www.collision financialservices.com or email info@ collisionfinancialservices.com.
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Choose Original MINI Parts. Because you can’t repair your reputation.
These Dealers Below Are Original MINI Parts Distributors:
(l to r) SATA dry jet 2 w/flat fan nozzle and SATA dry jet
the system, a multiple of ambient air is drawn in that serves directly to accelerate the drying process. The new design incorporates a flat fan nozzle. The SATA dry jet 2 has an extra large air footprint, which the company said further increases the drying efficiency, helping reduce the flash-off time and enhance the quality of the drying process at the same time. The recommended inlet pressure is 29 to 35 psi and uses 8.2 to 9.35 CFM; with the Venturi principle design the CFM is magnified x10 to give a 92.35 CFM output.
64 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
So. California
Bob Smith MINI Calabasas
888-215-7854 818-340-9455 Fax
©2014 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
Original BMW Parts
bmwusa.com
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bmwusa.com
North Cou
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Original Thought #78
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation.
NO. CALIFORNIA Niello BMW
Sacramento 916-486-1299
SO. CALIFORNIA BMW of Murrieta
Murrieta 888-805-2393 951-698-2086 Fax www.bmwofmurrieta.com
BMW of Palm Springs Palm Springs 760-324-8314
Bob Smith BMW
Calabasas 818-340-9640 818-340-9455 Fax parts@bobsmithbmw.com
Center BMW Sherman Oaks 818-990-9518
New Century BMW
Alhambra 626-576-2867 www.ncbmw.com
Sterling BMW Newport Beach 949-645-8729
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 65
Axalta Announces 2016 “Paint Outside the Can” Contest Axalta Coating Systems announced that its 2016 Paint Outside the Can contest is now open. The contest, now in its second year, is an invitation to auto body customers to unleash their creativity using any Axalta-brand coating system to paint and decorate an unused, standard one-gallon paint can. Submissions will be recognized and displayed via social media channels throughout the contest period. When the contest closes on September 16, 2016, six industry celebrities will choose six “Celebrity Picks” based on creativity, execution and degree of difficulty. In addition, six “Fan Favorites” will be chosen based on the number of “likes” the photos receive on Axalta’s Instagram page. Finally, one “Best-inShow” grand prize winner will be selected from the six “Celebrity Picks”. Axalta will display the winning submissions at custom car shows and automotive events throughout the United States in 2016. Axalta’s celebrity judges are: Ron Coan, one of the leading painters in the automotive industry known for his show-stopping creations with Mobsteel at SEMA and his groundbreaking OEM concept cars Rachel De Barros, chief marketing officer, host and executive producer
of Gearhead Diva, a DIY car-building community and network that produces edutainment style videos for today’s social media generation
Ray Evernham, three-time NASCARv champion crew chief and host of Velocity’s hit series AmeriCarna Danny “Danny D” Galvez, a well-known custom automotive painter and pinstriper Dave Lane, one of the top traditional-style car builders in the United States Paul Quinn, a respected airbrush and pinstriping artist and custom paint instructor The six winners of the “Celebrity Picks” and the six “Fan Favorites” will each receive a $250 gift card; a complimentary pass to the 2016 SEMA Show; an opportunity to be interviewed at the 2016 SEMA Show by Rev’n
ETI Congratulates New Officers and Board Members for 2016-2017 Officers (one year term)
President – Bob Holland (Chief Automotive Technologies) Vice President, Programs – Brian Herron (Drew Technologies)
Vice President, Marketing – Jim Fish (Bosch Automotive Service Solutions)
Secretary/Treasurer – Kevin FitzPatrick
Immediate Past President – Tim Morgan (Spanesi Americas Inc.)
Directors Re-elected for a three year term on the Board of Directors
Peter Richardson (Car-O-Liner)
Craig Kirkpatrick (Verizon)
Tom Kotenko (Snap-on) Elected for a two year term on the Board of Directors
News on Rev’N, a broadcast television network dedicated to all things revving; a complimentary pass to Axalta’s VIP area at the 2016 SEMA Show that includes lunch; and prominent display of their submissions at the 2016 SEMA Show, subject to the official rules of the contest. The “Best-in-Show” grand prize winner will receive a $500 gift card; hotel accommodations for two in Las Vegas, Nevada on November 1, 2016 through November 5, 2016; two complimentary passes to the 2016 SEMA Show; an opportunity to be interviewed by Rev’n News at the 2016 SEMA Show; two complimentary passes to Axalta’s VIP area at the 2016 SEMA Show that includes lunch; and prominent display of the winning submission at the 2016 SEMA Show, subject to the official rules of the contest. To learn how to enter the contest, visit Axalta’s website or follow the company on their North America Refinish social media channels: www.Facebook.com/AxaltaNArefinish www.Twitter.com/AxaltaNAref www.Instagram.com/axaltarefinish www.Pinterest.com/AxaltaNAref www.YouTube.com/AxaltaUS www.axalta.ca www.axalta.us
Mitchell Appoints Debbie Day as General Manager
Mitchell International announced in May that Debbie Day has joined the company’s Auto Physical Damage (APD) business unit as its general manager. Day joins the company with over 19 years of technology strategy and operations experience, most recently as chief operating officer and senior vice president at ClosingCorp, in addition to holding executive positions at ACTIVE Network and CCC Information Services. Day will spearhead Mitchell’s APD initiatives. “At Mitchell, we’re constantly looking to find new opportunities to drive value to our customers, and in order to Debbie Day successfully do this, hiring like-minded people who share in our company’s vision is critical,” said Alex Sun, CEO and president of Mitchell. “With Debbie’s extensive and proven product management, engineering and sales background, coupled with her passion and values, she truly embodies all of the qualities that we seek in a Mitchell leader.”
Audi Genuine Parts
Become an Audi Genuine Parts Fan
Neil Davis (Snap-on) Elected for a one year term on the Board of Directors Tom Bertosa (Bosch Automotive Service Solutions)
Remaining Board Members (not up for election)
Term Expiring in 2018-2019 David Rich (Innova) Tim Lael (Hunter Engineering)
Term Expiring in 2017-2018 Robert Vogt (IOSIX) John Heist (STAR EnviroTech)
For more details about ETI programs and activities, contact Jessie Korosec, Marketing and Events Manager, Equipment and Tool Institute, 37899 12 Mile Rd, Suite 220, Farmington Hills, Michigan 48331. Phone: 248-656-5085; e-mail: jessiek @etools.org.
66 JUNE 2016 AUTOBODY NEWS | www.autobodynews.com
Order Audi Genuine Parts from these select dealers.
So. California
Audi of Downtown LA Los Angeles 213.747.7248 213.222.1261 Fax Ask for Carlos or Fausto
Collision Repairers Provide Recycled Rides™ Vehicles for First Responders and K9 Partners
With wildfire season approaching, collision repairers in several states teamed up through the National Auto Body Council’s Recycled Rides™ and the State Farm® Arson Dog Program to provide critical and reliable transportation for first responders and their K9 partners as part of 2016 Arson Awareness Week. Participating collision repairers include Caliber Collision locations in Raleigh, North Carolina and Fresno, California: Gerber Collision & Glass in Elkhart, Indiana: Jenkins Collision in Ocala, Florida, and Scotsman’s Collision in Mt. Sinai, New York. According to the National Interagency Fire Center, 86 percent of the 10 million acres of wildfires last year were caused by people, whether intentional or as a result of human negligence. With limited resources, most fire departments, especially those in rural areas, do not have a dedicated vehicle for the arson dog team that would allow them to more effectively and efficiently respond to the scene of a fire. To raise awareness about the impact of arson and to improve the ability of police and fire departments to investigate fires, State Farm and National Auto Body Council members
have already or will be donating Recycled Rides vehicles to the following fire departments: New Bern Fire and Rescue in North Carolina for use by Fire Marshal Danny Hill and K9 Darby. Vehi-
Ocala Fire Department in Florida for use by Fire Investigator Roseanne Moreland and K9 “Gracie”. Vehicle repairs and modifications were made by Jenkins Collision Center in Ocala, FL. Maine Specialty Dogs for use by trainer Nicole Dyer to transport arson dogs to training. Vehicle repairs and modifications were made by Gerber Collision & Glass in Elkhart, IN. Beaver Falls Fire Department in Pennsylvania will receive a vehicle later this summer for use by Fire Investigator David Seidl and K9 “Patty”. Vehicle repairs and modifications are being made by Scotsman’s Collision in (l-r) Fire Investigator Lee Wilding with K9 “Tessa”, Mt. Sinai, NY. Eddie Martinez, State Farm Public Affairs Specialist, The vehicles were donated and Fire Investigator Jeff Schwing with K9 “Remby State Farm and repaired and ington” at the National Auto Body Council modified by technicians at the Recycled Rides presentation in Fresno, CA participating collision repair cencle repairs and modifications were ters who volunteered their personal made by Caliber Collision in Raleigh, time as a community service. Parts, NC. materials and services to refurbish the Eastern Sierra Arson Task Force for vehicles were donatey other collision use by Fire Investigator Jeff Schwing industry businesses. Since the incepand K9 “Remington” throughout south- tion of Recycled Rides in 2007, the east California. Vehicle repairs and collision industry has collaborated to modifications were made by Caliber donate over 1,000 vehicles valued at Collision in Fresno, CA. more than $12 million to individuals
SO. CALIFORNIA Galpin Volkswagen North Hills
818-778-2005
Fax: 818-778-2090
and service organizations in need. “Lack of reliable transportation can be challenging, whether you are a first responder investigating a possible crime scene or an individual struggling daily to take care of your family,” said Chuck Sulkala, Executive Director of the National Auto Body Council. “We are proud to team up with State Farm, Caliber Collision, Gerber Collision, Jenkins Collision and Scotsman’s Collision through Recycled Rides to help make a difference in local communities and to showcase the professionalism and integrity of the collision industry.” Each year billions of dollars in property and hundreds of lives are lost as a result of intentionally set fires, according to Heather Paul, Public Affairs Specialist for State Farm® Safety & Innovation. “State Farm is committed to helping provide the necessary resources to combat the severity and impact of arson on businesses and public safety,” said Paul. For more information, contact the National Auto Body Council at 1-888667-7433 or at www.NationalAuto BodyCouncil.org. Visit us on Facebook at www.facebook.com/National AutoBodyCouncil. The NABC’s Twitter feed is @AutoBodyCouncil.
Volkswagen of Murrieta Riverside County
951-894-4721 Fax: 951-894-6278
www.galpin.com
michael.potter2@hendrickauto.com
Volkswagen of Downtown LA Los Angeles
NO. CALIFORNIA
Fax: 213-222-1272 Ask for Carlos or Erasmo
925-934-8459
213-747-7246
Dirito Bros. Walnut Creek Volkswagen Walnut Creek Fax: 925-934-0786
parts@dirito.com
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 67
June 3 Deadline for CREF & AkzoNobel Grants
The Collision Repair Education Foundation’s (CREF) annual Ultimate Collision Education Makeover school grant application and the AkzoNobel Sustainably Challenge Grant application are both due on June 3. All high school and college collision school programs are encouraged to apply, and the winning schools for both awards will be announced during SEMA 2016. There is one application for both opportunities. The makeover grant program is in its eighth year. Multiple cash awards totaling more than $100,000 will be given out. This year, the application will also tie each school to the Foundation’s new designation program, “Collision School Career Readiness Benchmark.” Applicant schools will be classified into three tiers: Tier 1: Advanced, Tier 2: Proficient, or Tier 3: Developing. The designation will be determined by the Foundation based upon information provided by schools about the capabilities of their collision training program on the Collision Repair Education Makeover grant application. The criteria for each level will focus on the number of hours of instruction, curriculum in place, along with what tools, equipment, and sup-
Motor Guard Introduces Aluminum Spot Repair Tool
After pioneering the use of soft abrasive technology for conventional steel auto body repair, Motor Guard has turned to the challenge of aluminum body repair. The new Magna-Stripper ALTM System (Model E-6100S) is a soft, abrasive wheel that has been spe-
The Magna-Stripper ALTM
cially formulated to strip aluminum without heat, distortion or damage. The company said the E-6100S quickly strips clear coats, base coats, primer coats, or all three, leaving the base metal clean, bright and ready for repair and refinishing. A company representative said, “Technicians report that the Magna-Stripper ALTM feathers like no other method. It has also proven to be an extremely valuable tool for spot repair of alloy wheels.”
plies a school uses to prepare their students for employment in the collision industry. If there is something that is missing, the grant application will allow a school to request that particular item. The goal is to help every school acquire the resources to eventually achieve a Tier 1: Advanced school designation. In keeping with the goals of the Ultimate Collision Education Makeover Grant, the CREF and AkzoNobel are collaborating for the third year to offer the Sustainability Challenge Grant. Schools are invited to submit proposals for applying continuous improvement and sustainability principles that improve the processes in the school’s body shop or improve the way the shop interacts and impacts the community. Projects are to be driven by teams of students with the instructor serving as a mentor. Winning schools will receive funding to implement their proposed ideas and report on the success of their projects. The application for both opportunities is available online www .CollisionEducationFoundation.org. For information, contact Brandon Eckenrode at 847-463-5244 or Brandon.Eckenrode@ed-foundation .org.
Police Officer Found Guilty of Accepting Kickbacks from Local Repair Shop in MD
Former Baltimore, Maryland police officer, Samuel Ocasio, was found guilty of extortion on May 2. In Supreme Court case (US 14-361), federal authorities charged Ocasio for accepting kickbacks from a Maryland auto body and repair shop. Between 2009 and 2011, the officer directed damaged ve-
pairs. The Mejia brothers would in exchange pay Corona between $150 and $300 per referral. As many as 60 additional officers allegedly joined in on the deal with Majestic. It was in 2009 that Ocasio made a similar arrangement with Majestic, which court documents said was the source of 90 percent of Majestic’s business in 2011.
hicles from accident scenes to Majestic Auto Repair Shop (Majestic) in exchange for payment from the shop owners, according to court documents. Testifying in the case were Majestic shop owners and brothers, Hernan Alexis Moreno Mejia and Edwin Javier Mejia. According to court reports, “In 2008, Majestic was struggling to attract customers, so Moreno and Mejia made a deal with a Baltimore police officer, Jhonn Corona.” The documents further stated that Officer Corona would send motorists who had been in accidents to Majestic for towing and re-
Ocasio, as well as the Mejia brothers and nine other Baltimore officers, were indicted by the District of Maryland in 2011. The Mejias and many of the other officers accepted plea bargains and pleaded guilty, while Ocasio did not. Ocasio was found guilty of one conspiracy count and three extortion counts. He attempted to appeal the District Court’s decision to the Supreme Court but was rejected. The Supreme Court has sentenced him to 18 months in prison. For additional information, see Supreme Court case Ocasio v. U.S., 14-361.
by Cass Heckel
As many as 60 additional officers allegedly joined in on the deal with Majestic
Blackburn OEM Wheel Solutions New Employee
Blackburn OEM Wheel Solutions hired a new member to complement the sales and marketing team. Her name is Samantha Maloy and she will serve as the sales and marketing coordinator effective immediately. Maloy comes to Blackburn’s after spending two years in the printing industry where she completed a two-year leadership development program implemented by RR Donnelley. Prior to her employment at RRD, she attended Bowling Green State University where she graduated with a degree in business administration, specializing in marketing. She will assist Blackburn OEM Wheel solutions with the short-term and long-term sales strategy and goals of the company. She will also assist the outside sales representatives, marketing and advertising efforts of the company. Founded in 1983, Blackburn’s is a privately-held OE wheel (steel and alloy), wheel cover, and center cap distributor. For more information, visit www.blackburnwheels.com.
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ASA Collision Leaders Hold Meetings on Capitol Hill
ASA’s collision leaders met with key members of Congress and staff to discuss the impact of Most Favored Nation (MFN) clauses included in some direct repair agreements (DRP). Under an MFN clause, an insurer is guaranteed that it will receive prices that are at least as favorable as those provided to other carriers doing business with the collision repair facility for the same products or services. ASA members gave real life examples of the effects of the MFN clause on collision repair shops, consumers and nonMFN insurance providers. ASA President Dan Risley said, “We were encouraged by the receptive response on Capitol Hill. MFN clauses have been adversely impacting the collision repair industry for many years, and I feel confident that we are getting closer to a solution. Resolving issues of this scale requires time and persistence. As the voice of the industry in our nation’s capitol, ASA is committed to seeing them removed from all direct repair agreements.” For additional information about ASA, including past media releases, go to www.ASAshop.org , or visit ASA’s legislative website at www.Taking TheHill.com
AutoBodyguard Obtains Exclusive Rights to Zavada Odor Elimination Technology AutoBodyguard, Inc., a division of Dent Zone Companies, Inc., announced on April 26 a newly formed partnership with Zavada Scientific for exclusive rights to Zavada’s organic odor elimination technology for the automotive, recreational vehicle and marine, as well as power sports, markets worldwide.
AutoBodyguard Organic Odor Eliminator is safe for children and pets Credit: Business Wire
“The addition of Zavada’s odor eliminator is aligned with our vision for the AutoBodyguard portfolio,” said John Martin, President of AutoBodyguard, Inc. “This proprietary technology, governed under US Trade Secret Laws, distinguishes us as the only provider in the vehicle protection marketplace capable of eliminating organic odors through an environ-
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mentally safe and eco-friendly solution.” Zavada’s Noble Ion™ Technology removes odors by breaking down the chemical bonds and the compounds that cause them, eliminating organic odors at the source. Common competitor products use enzymes, which react to bacteria, or use odor neutralizers or fragrances, which mask the odor for a limited period of time. Over time, as enzymes die out or neutralizers dissipate, the odor returns. Zavada’s technology disrupts the production of the bacteria, which is typically the source of the organic odor, and prevents it from returning, according to a company press release. AutoBodyguard’s Organic Odor Eliminator with Noble Ion™ Technology has been integrated into the line’s Interior Protection program that provides coverage for the carpet, fabric, leather and vinyl surfaces of vehicles. The product is free from harsh chemicals and does not contain toxic ammonia components frequently found in anti-bacterial products. It is ecofriendly as well as safe for children and pets. “We are pleased to partner with AutoBodyguard to offer dealers greater profits through innovative F&I solu-
Steck Manufacturing’s Antenna Wrench II
Removal of antennas on vehicles can become difficult, especially with the raised hood design that prevents many tools from allowing access to the bezel nut. Steck Manufacturing Company said the Antenna Wrench II works in conjunction with or independently with its original Antenna Wrench (21600). Made in the United States, the Antenna Wrench II is laser cut from rugged steel then grit blasted and plated to give it a
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strong and polished finish. It measures 4 ½ inches x 1 ½ inches x .4 inches. The company said it can expand coverage to more vehicles, such as the removal of difficult Dodge pickup antenna due to the raised hood design. The Antenna Wrench II works as a two, three- and four-notch bezel nut wrench of any diameter. Steck Manufacturing said it replaces the need for an antenna nut socket wrench set with one tool, saving space, money and time searching for the right socket.
tions,” said John Veenstra, Chief Innovation Officer for Zavada Scientific. “We selected AutoBodyguard because of the history, reputation and relationships that Dent Zone Companies, its parent company, has created in the automotive F&I industry over the past twenty-five years.”
AutoBodyguard Organic Odor Eliminator removes unpleasant organic odors on contact
“This exciting addition to the AutoBodyguard product line addresses an everyday problem that all drivers experience,” said John Martin. “Our Organic Odor Eliminator provides a tangible, new benefit for dealers to provide to their customers that has never been offered before.” For more information, contact Susan Neuhalfen by phone 832-4654762 or by email susanneuhalfen@ gmail.com
Ultravent: INDASA’s New Multi-Hole System
Building on 36 years of experience in the development of highly advance coated abrasives, INDASA presented a new multi-hole technology to the market—the Ultravent system. The company said the Ultravent system aims at establishing new standards in the industry and at boosting productivity in body shops. Ultravent is more than just a multi-hole system applied to INDASA Rhynogrip discs. The Ultravent system combines abrasive discs with interface pad and an innovative backing pad that utilizes patented vent channels that maximize air flow. Together, these three elements make the most powerful integrated vacuum sanding system, according to the company. With a 57-hole configuration in finer grits (P220 to P2000) and 21 holes in coarser grit (P80 to P180), Ultravent abrasive discs are available in the Film Line, HT Line and Plus Line, always with a 150mm (6 inch) diameter grip system. The Ultravent system can still be completed with the INDASA’s Dust Extraction Unit and Orbital sander.
www.autobodynews.com | JUNE 2016 AUTOBODY NEWS 69
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Equalizer Hires Market Development Manager
Equalizer® announced the addition of Dale Malcolm as market development manager. Malcolm will be responsible for Equalizer’s marketing solutions and special projects. “Dale’s vast experience and industry specific knowledge will assist Equalizer’s sales and marketing teams to strengthen Equalizer’s position as the industry leader. As a long time industry expert in all related areas of glass and adhesives, Dale brings a unique perspective to Equalizer's ongoing programs designed to expand into the automotive market,” said Shauna Davis, global sales director. As one of the first 50 certified master auto glass technicians in the country, Malcom was a member of the NGA Auto Glass Certification Committee for 10 years and was chairman from 1999-2006. “From early in Dale’s career at Portland Glass to his tenure at Dow Automotive Systems, Dale has always strived to acquire and retain the important information that the auto glass industry has relied upon for my 28 years in the industry,” said Eric Asbery, president of Equalizer. For information, visit www .equalizer.com
CAPA to Form Foundation of Chinese Standards
The Certified Automotive Parts Association (CAPA) announced that it is making its standards available to the China Automobile Maintenance Industry Association (CAMRA), the organization at the forefront of the aftermarket part certification initiative in China. As the technical partner of CAPA, Intertek is actively working with CAMRA as a member of its technical committee, to draft standards for the China domestic market. Intertek is providing assistance with the CAPA Standards, and combining them with applicable Chinese specifications, standards regulations. “CAPA is looking forward to sharing its expertise in part certification with Chinese agencies and organizations looking to improve and validate the quality of auto parts for both the Chinese domestic and export markets,” said Jack Gillis, CAPA’s executive director. “Because of the worldwide acceptance of the CAPA program, CAPA certification for Chinese parts will greatly expand their international marketability,” said Debbie Klouser, CAPA’s director of operations. For information, visit www .CAPAcertified.org or contact Debbie Klouser, 202-737-2212 or debbie@ CAPAcertified.org.
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Audatex and Driven Brands Announce Strategic Relationship
Audatex, a Solera company, announced on April 25 its strategic relationship with Driven Brands. Audatex’s technology solutions simplify the claims process by enabling collision repair companies like
Driven Brands and insurance carriers to communicate on one platform with little variability. This new relationship will enable every franchise location to have the Audatex solution with integrated estimating support and a branded customer app for estimate appointments. Driven Brands’ CARSTAR
North America group currently has more than 475 locations across the US and Canada. “We are delighted to move forward with our strategic relationship with Audatex,” said Michael Macaluso, president of CARSTAR North America. “Our close collaboration will strengthen our brand and also provide us with future opportunities for technological advancements.” “We are excited by our relationship with Driven Brands,” said Don Mikrut, vice president of Collision Repair Solutions, Audatex. “By providing a system that’s highly accurate and connected, we can greatly reduce waste in claims processing activities and help increase overall profitability for customers like CARSTAR.” For more information about Audatex, visit www.audatex.us. For more information about Driven Brands, visit www.Driven Brands.com.
ABRA Auto Body & Glass Announces Succession Plan, Commences CEO Search
ABRA Auto Body & Glass announced on May 2 that Duane Rouse plans to transition from day-to-day operations, stepping down as Chief Executive Officer to assume the role of Vice Chairman of the Board of Directors. Rouse will continue to serve as CEO until a replacement is appointed. ABRA has commenced an executive search to find a successor to Rouse. “As I prepare to step back from day-to-day operations and move into my new role, I want to thank our more than 5,000 employees who have been the secret to our success in growing into a leading national damaged vehicle repair company,” said CEO Duane Rouse. “I am confident that under the leadership of a new CEO, supported by our current best-inthe-business executive team, ABRA will continue as a reliable partner for insurers while maintaining rapid and profitable growth.” Since Rouse became CEO in 2011, ABRA’s system-wide revenue has increased from under $300 million to more than $1 billion. The company has also added more than 150 new locations in the last 2 years. Rouse said, “With a successful strategy and accomplished executive
team in place, ABRA is well-positioned for the future. The company is in a position of strength and now is the time to transition day-to-day leadership to a new Chief Executive who will lead the company into its next chapter of growth. I will remain a significant shareholder and through my Vice Chairman role I look forward to continuing to be part of ABRA’s very bright future.” Erik Ragatz, current Chairperson of the Board of ABRA Auto Body & Glass, and Managing Director of private equity firm Hellman & Friedman, ABRA’s majority shareholder, said, “During his 20 year tenure—and particularly in his 5 years as CEO— Duane not only helped aggressively grow the company through both strategic acquisitions and internal initiatives, but also built a wonderful organization and business. We are now beginning a search that will identify CEO candidates with the right experience and cultural fit for the organization. Duane will be an important voice in this process, and remain an important part of ABRA as he assumes the role of Vice Chairman.” For more information about ABRA visit www.abraauto.com
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