Western Edition California Nevada Arizona
29
YEARS
www.autobodynews.com ww ww.autobodynews.com
SCRS Releases Commentary on Farmers New COD DRP Agreement Controversy
Recently, industry trade publications, including Autobody News (June, 2011) have reported on the concern voiced from repair facilities across the country over intrusive elements of Farmers Insurance new COD agreement. The Society of Collision Repair Specialists (SCRS) reviewed the content, and believe that it is in the best interest of the industry to make the agreement available for public review. Insurance carriers have continued to increase pressure over repair shops to obtain the quickest/cheapest repair, while interjecting themselves further into the oversight and management of repair businesses. The in-
dustry is often disadvantaged by restriction of communication from participants of these programs, and it is important for the industry to rely on factual review of documents, rather than anecdotal musings. If we wish for business conditions to improve, it is important that our industry finds the voice to express our concerns openly and honestly without fear of being transparent. To that purpose, SCRS has highlighted some areas of interest. All recipients of this communication are notified that the materials presented are not to be construed as direction or
by John Yoswick
and for our customers,” Risley said. Risley’s discussion of the forthcoming change was just one of recent news items related to insurance companies that will likely be of interest to shops. Here’s a wrap-up of some of this news. Insureds are Dan Risley shopping. Consumers shopped and switched auto insurers more aggressively in 2010 than they have for 14 years, according to preliminary survey findings from McKinsey & Co.
See SCRS Commentary, Page 42
Allstate to Open Electronic Communication with Non-DRP Shops Allstate Insurance will soon roll-out technology that will enable shops that are not part of the insurer’s direct repair program to communicate electronically with the insurer, much as its DRP shops do. Dan Risley, a project manager for Allstate at the company’s Illinois home office, said this new “Transactional Non-DRP” system will enable any shop to upload estimates and digital images to Allstate, receive insurerwritten estimates from Allstate, etc. “We realize not all customers use a network shop, and we want to make it easier to do business for those shops
See Allstate, Page 40
VOL. 29 ISSUE 7 JULY 2011
NHTSA Administrator Strickland: “A Car is Not a Social Networking Device” The National Highway Traffic Safety Administration is studying ways to encourage new drivers to disconnect from mobile devices and the Internet while operating vehicles, Administrator David Strickland said at an automotive technology conference in Novi, MI. “I’m not in the business of helping people Tweet better. I’m not in the business of helping people post to Facebook better,” Strickland said “My job is to make sure we keep people safe behind the wheel.” U.S. Transportation Secretary Ray LaHood, whose department oversees NHTSA, has said drivers are
SPECIAL TECH
distracted by vehicle information and entertainment systems such as Ford Motor Co.’s Sync and General Motors Co.’s OnStar. The Transportation Department has launched the Web site www.distraction.gov to edDavid Strickland ucate Americans and policymakers about the dangers of distracted driving. Strickland and his boss, LaHood, are also working with the states to enforce against distraction. To date, 33 states, the District of See Auto Media, Page 49
The New Laser Technology: A Game Changer for OEMs that Might Impact Shops p. 44
REGIONAL STORIES in this issue...
CA VFW Makes Donation to Marine For Final Repair Costs . . . .p. 4 Auto Body World in Arizona to Add Eighth Location . . . . . . . . . .p. 6
East Bay CAA Chapter to Hold 25th Annual Golf Tournament . . . .p. 9
CAA Holds Quarterly Meeting in San Diego . . . . . . . . . . . . . . . . .p. 10
Audatex Offers Matching Funds For CA School Makeover Grant .p. 14
CAA San Diego Chapter Holds 17th Annual Golf Tournament . .p. 14 Mitchell Gives Local CAA Members Tour of Facilities . . . . . . . . .p. 16
COLUMNS in this issue...
Chaney — Auto Recyclers Host Collision Repairers in Panel . . .p. 20
Amaradio — Learning to Face the “Big Hill” . . . . . . . . . . . . . . . . .p. 22
Franklin — How to Survive a Summer Slump . . . . . . . . . . . . . . . .p. 23
Weaver — A Homemade Air Bag Light—Brilliant Stupidity . . . . .p. 26 Williams — Apathy in the Wholesale Parts Business . . . . . . . . . .p. 29
Danalevich — Business Financial Security . . . . . . . . . . . . . . . . . .p. 36
Insurance Insider — The “Neutral Information Provider” . . . . . .p. 36
Chess — Pan American Hosts Firefighter Extrication Training . .p. 37
Attanasio — Body Shops and Yelp: It’s a Love-Hate Relationship .p. 38
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
Presorted Standard US Postage PAID Ontario, Ca. Permit No. 1
2 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Contents Auto Body World in AZ to Add Eighth Location. 6 AZ Law Enforcement Seeing Increase in
Extreme DUI Cases, BACs More Than
Twice the Legal Limit . . . . . . . . . . . . . . . . . 9
Preventive Maintenance . . . . . . . . . . . . . . 39
Franklin - How to Survive a Summer Slump . 23 Hayhurst - New Camera-Controlled Surface
Laser Welding, and That’s Not All . . . . . . . 44
Insurance Insider - Telling the Tale of the
“Neutral Information Provider” . . . . . . . . . 36
Bill Aimed at Providing Cheaper Auto Insurance
Sisk - Nigro’s in Philadelphia Exemplifies the
CA Agents Group Seeks Auto Insurance
Sisk - NY’s Cross Island Collision, Where
CA State Legislators Seek to Give Counties
Weaver - A Homemade Air Bag Light—
for Low-Income Families Dies in NV Senate. 9 Persistency Discount . . . . . . . . . . . . . . . . . 6 Power to Raise Respective Vehicle
Licensing Fees . . . . . . . . . . . . . . . . . . . . . . 8
CA VFW Makes Donation to Marine to Pay Off
Final Mustang Repair Costs . . . . . . . . . . . . 4
CAA San Diego Chapter Holds 17th Annual
Golf Tournament. . . . . . . . . . . . . . . . . . . . 14
California Autobody Association Holds
City’s Brotherly Love Motto . . . . . . . . . . . 52 Training is a Family Tradition. . . . . . . . . . . 48 Brilliant Stupidity . . . . . . . . . . . . . . . . . . . 27
Williams - Apathy, the Real Opponent in the
Wholesale Parts Business . . . . . . . . . . . . 34
NATIONAL
Allstate to Open Electronic Communication
with Non-DRP Shops . . . . . . . . . . . . . . . . . 1
Quarterly Meeting in San Diego. . . . . . . . . 10
Auto Lender Ally, Formerly GMAC, Delays IPO
for TX Facility . . . . . . . . . . . . . . . . . . . . . . 25
Boyd Gerber Group to Acquire 28 Locations
CCAR Announces ‘GreenLink Shop’ Awards Chrysler May be Forced to Sell Flagship
Dealership in LA . . . . . . . . . . . . . . . . . . . . . 4
Dave Jones Appoints Deputy Insurance
Commissioner . . . . . . . . . . . . . . . . . . . . . . 4
Domestic Auto Sales Making Comeback in CA . 43
Due to Market Conditions . . . . . . . . . . . . . 35 of Cars Collision LLC, Total Now 164 in
North America . . . . . . . . . . . . . . . . . . . . . 24
CARSTAR Auto Body Repair Experts Hold
Third Annual Soaps It Up! Car Wash for
Make-A-Wish Foundation . . . . . . . . . . . . . 18
East Bay CAA Chapter to Hold 25th Annual
Chevy Volts Selling at Inflated Prices, But GM
EPA Orders CA Tire Recycler to Clean Up Site. 12
Delphi Files for $100M Initial IPO . . . . . . . . . 53
Golf Tournament. . . . . . . . . . . . . . . . . . . . . 8
Says Volt Will Be Cheaper. . . . . . . . . . . . . 25
Former CA Deputy Insurance Commissioner
Eileen Sottile and the Quality Parts Coalition
Mitchell Inc. Gives Local CAA Members
Garmat® USA Selected as a Colorado
New CA Dealer Offers Jaguar, Aston Martin
Hyundai, Kia Face Fair Trade Commission
Passes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Open-House Tour of Facilities . . . . . . . . . . 16 and Lotus. . . . . . . . . . . . . . . . . . . . . . . . . 12
New Orange County, CA, Dealership Set to
Offer Their Legislative Update . . . . . . . . . . 15
Company to Watch. . . . . . . . . . . . . . . . . . 16 Antitrust Probe on Auto Parts Pricing After
Allegations . . . . . . . . . . . . . . . . . . . . . . . . 18
Open in June . . . . . . . . . . . . . . . . . . . . . . 12
Inspector Gadget—Making a Custom Light
Penalties Under New California Law . . . . . 32
NHTSA Administrator Strickland: “A Car is
Benefit Arizona Youth Organizations . . . . . 18
School Uses Nanotechnology to Convert
At-Fault Drivers . . . . . . . . . . . . . . . . . . . . . 8
SCRS Releases Commentary on Farmers
Names Award Winners . . . . . . . . . . . . . . . . 6
SUVs Now Safer Than Compact Cars in an
Elects 2011-2012 Officers . . . . . . . . . . . . 12
Tesla, Limited Production Autos May Lose
Prevalent Airbag Fraud Prompts Increased
Proceeds From 911 Collision Mustang Raffle Riverside County Approves Crash Tax on
San Francisco lnsurance Women’s Group
Southern CA Insurance Women Association COLUMNS
Amaradio - Learning to Face the “Big Hill” . . 22
Attanasio - Body Shops and Yelp: It’s a
Inspection Tunnel to Find Paint Defects . . . 49 Not a Social Networking Device”. . . . . . . . . 1
Exhaust Heat into Electricity . . . . . . . . . . . 26
New COD DRP Agreement Controversy. . . . 1 Accident, IIHS Report Says . . . . . . . . . . . 30
Hardship Exemption for Airbags . . . . . . . . 38
Tire Pressure Monitoring Systems Don’t
Mean Drivers Never Need to Manually
Check Tire Pressure . . . . . . . . . . . . . . . . 35
Love-Hate Relationship. . . . . . . . . . . . . . . 50
Toyota to Face First US Sudden-Acceleration
Collision Repairers in Panel Discussion. . . 20
Two Very Different Pennsylvania Collision
Chaney - Auto Recyclers Host Prominent Chess - Pan American Steps Up to Host
Test Trial in 2013 . . . . . . . . . . . . . . . . . . . 26
Associations Serving the Keystone State . 47
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Erica Schroeder Contributing Writers: Tom Franklin, David Brown, John Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby Chess, Mike Causey, Tom McGee, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman (800) 699-8251 Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
AAPEX Trade Show . . . . . . . . . . . . . .9 Audi Wholesale Parts Dealers . . . . .44 Autoland Scientech . . . . . . . . . . . . .27 Automotive ID . . . . . . . . . . . . . . . . . .34 BMW of Vista . . . . . . . . . . . . . . . . . .12 BMW Wholesale Parts Dealers . . . .17 Carlsen Volvo . . . . . . . . . . . . . . . . . .22 Chief Automotive . . . . . . . . . . . . . . .23 Classifieds . . . . . . . . . . . . . . . . . . . .54 Completes Plus . . . . . . . . . . . . . . . . .4 Crevier BMW . . . . . . . . . . . . . . . . . .35 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .20 Drew Hyundai-Volkswagen . . . . . . .21 DuPont . . . . . . . . . . . . . . . . . . . . . . . .5 Elk Grove Toyota . . . . . . . . . . . . . . .30 Enterprise Rent-A-Car . . . . . . . . . . .51 Equalizer Industries . . . . . . . . . . . . .18 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .19 Galpin Motors . . . . . . . . .25, 28-29, 33 Garmat USA . . . . . . . . . . . . . . . . . . .10 Glenn E. Thomas Chrysler-Jeep-Dodge .7 GM Wholesale Parts Dealers . . . . . .41 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .40 Hyundai Wholesale Parts Dealers . .45
Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com
Western
School Makeover Grant Through Education
Foundation . . . . . . . . . . . . . . . . . . . . . . . . 14
Firefighter Extrication Training . . . . . . . . . . 37
Danalevich - Business Financial Security
Indexof Advertisers
REGIONAL
Audatex Offers $25,000 Matching Funds For CA
Kia Motors Wholesale Parts Dealers .31 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .56 Mazda Wholesale Parts Dealers . . .36 Mitsubishi Wholesale Parts Dealers .53 MOPAR Wholesale Parts Dealers . .11 NACE/CARS 2011 Registration . . . .55 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .47 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Pro-Spray . . . . . . . . . . . . . . . . . . . . . .8 Quality Stainless Products . . . . . . . . .6 Rare Parts . . . . . . . . . . . . . . . . . . . . .16 RBL Products . . . . . . . . . . . . . . . . . . .6 Replica Plastics . . . . . . . . . . . . . . . .39 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .15 Safety Regulation Strategies . . . . . .14 Scorpion Coatings . . . . . . . . . . . . . .32 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .24 Subaru Wholesale Parts Dealers . . .38 Timmons VW-Subaru . . . . . . . . . . . .37 Toyota Wholesale Parts Dealers . . .42 VIM Tools . . . . . . . . . . . . . . . . . . . . .48 Volkswagen Wholesale Parts Dealers .43 Volvo Crash Wholesale Dealers . . .46 Weatherford BMW . . . . . . . . . . . . . .13
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 3
CA VFW Makes Donation to Marine to Pay Off Final Mustang Repair Costs Edward Flak, the Temecula, CA, marine who had his ‘94 Mustang GT repaired for him secretly while he was on his third tour in the Middle East in April, received a donation from the Veterans of Foreign Wars, Department of California to help cover some of the cars continued costs. Precision Paint and Body Works, the body shop that did the body work on Flaks car, agreed to donate about half of the $7,800 it cost to repair the vehicle in April. The Flaks were happy to have so much of the work on the car donated by Precision and the other businesses that agreed to donate some work, but this still left them with about a $3,000 repair bill after all was said and done. When the Commander Donald Durnil, of the Temecula Valley VFW, found out that the Flaks still owed money for the car makeover he asked for the California VFW to donate money to help pay. Durnil reached out to Jim Rowoldt, the State Adjutant/Quartermaster, to see if they could come up with more of a donation.
Chrysler May be Forced to Sell Flagship Dealership in LA
Chrysler Group LLC may be on the verge of selling its company-owned flagship dealership in Los Angeles to a private retailer in an attempt to appease other angry franchise dealers in California. Motor Village of LA, which opened in early 2011, has raised the ire of the California New Car Dealers Association, whose membership includes three dealers near the corporate-owned dealership. The dealer association wants to ensure fair competition and brought the matter before the State of California New Motor Vehicle Board, said President Peter Welch of Sacramento according to the Detroit News. The issues raised to the board have to do with California franchise law, which prohibits a companyowned dealership within 10 miles of a privately owned dealership. The complaint also cites the unfair advantage that Motor Village has in subsidized rent. The Board held a hearing last month and on June 1 issued an order directing the California Department of Motor Vehicles to investigate and report back. That process could take six months—the tentative date to report back is September 29. Motor Village sells the Chrysler, Jeep, Dodge, Ram and Fiat brands in a
Dave Jones Appoints Deputy Insurance Commissioner
have reimbursed to Precision Paint and Body Works so far, as well as what they still owe. Commander Durnil presented Kristin and Eddie Flak the check for $3,000 on behalf of the Veterans of Foreign Wars, Department of California at the Temecula Valley Post on May 28th. There was also a Steak Dinner at the cost of a $10 donation after the award ceremony at the Post. The event had great turnout, according to Durnil, about 75 to 80 people attended including all of the California VFW District Officers. “We can’t do this stuff for everybody ... but if we can Krissy and Edward Flak received the additional donation help one to the extent we from the CA VFW from Temecula Valley Post Commander could, it makes everything that Donald Durnil on May 28th we do worth it,” said Durnil. “We {The Temecula Valley VFW Jim and Janet Bird with Bird Post} are a small post, we don’t have Family Auto, the mechanical shop that a lot of money, so we gave them what repaired Mustangs engine, were made we could,” said Durnil. honorary Temecula Valley VFW Post The state VFW was able to come Members at the dinner. The Post also up with $3,000 in donation proceeds; paid for Flak and his wife, Krissy’s the money will cover what the Flaks membership with the Post for this year.
“They {the Flaks} don’t make a lot, and that’s a hefty bill,” said Durnil. The Temecula Valley VFW Post originally came up with a $200 donation for the Flaks back in April but knew this would not cover the last of their costs.
facility the automaker is using as a test bed for new sales and marketing concepts before rolling them out to other dealers nationwide. The facility is owned by Chrysler, but David Fischer, CEO of the Troy-based Suburban Collection, and California dealer Howard Drake have an operating agreement to run it for a year as they decide whether to purchase the dealership. Chrysler Group LLC CEO Sergio Marchionne said he is not worried about the fate of the prize dealership he hopes will jump-start sales in California, where Chrysler has 6 percent market share. In Los Angeles, Chrysler has about 2 percent. “It is solvable,” Marchionne said according to the Detroit News, “It will all go away.” About 30 Chrysler dealerships were forced to close in CA when Chrysler Financial buckled in 2010 and dealers could not get loans for their inventory. Another 32 had their franchise agreements terminated as part of Chrysler’s bankruptcy restructuring.
California Insurance Commissioner Dave Jones announced that he has appointed Erika Sperbeck as the new deputy insurance commissioner of the Administrative and Licensing Services Branch on June 6. Sperbeck comes to CDI from the California Health and Human Services Agency, where she has served as the assistant secretary with responsibility for American Recovery and Reinvestment Act (Recovery Act) implementation, and was also responsible for program and fiscal oversight for the Departments of Mental Health and Community Services and Development. Sperbeck has more than 19 years of service with the state of California. For a decade, she worked with the Department of Finance in various capacities, including oversight of the Performance Review Unit, as well as serving as the principal analyst with overall responsibility for the development, enactment, and administration of various departments’ budgets, according to Insurance Journal. This appointment fills the position’s vacancy created by the retirement of Robin E. Baker.
The Radiator and Condenser Headquarters for Collision Centers
Radiators A/C Condensers As a Tier 1 supplier to Toyota, Honda, GM and others, Denso offers true First Time Fit radiators and condensers to the repair industry » » » »
Free Daily Delivery by 30 Company Trucks Free California Overnight Shipping Four Los Angeles Warehouses Limited Lifetime Warranty on All Radiators & Condensers 10425 S. La Cienega Blvd. > Los Angeles, CA 90045
Mon-Fri 7:30 am-6:00 pm
Call our Cooling Specialists:
888.500.6557 Fax: 310.703.5752
www.autobodynews.com
4 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
www.completesplus.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 5
Former CA Deputy Insurance Commissioner Passes The state Department of Insurance announced that former California Deputy Insurance Commissioner Gary A. Hernandez has died as the result of a pulmonary embolism on June 3. Hernandez was a leader in Latino community in the San Francisco bay area and statewide—a dedicated public servant, talented lawyer, inspiring community leader, and a lifelong volunteer, said current Insurance Commissioner Dave Jones, according to Insurance Journal. “His passing leaves a tremendous void and he will be greatly missed.” At the time of his death, Hernandez was a managing partner at SNR Denton, an international law firm with offices in San Francisco. He joined the firm in 1997 after serving in the public sector. His time as a public service employee began when he served as a deputy city attorney for the City and County of San Francisco. After that, he served then Insurance Commissioner John Garamendi as deputy insurance commissioner and chief of enforcement, overseeing market conduct, fraud investigations and management of all failed insurers in the state.
Hernandez also was a nationally recognized leader, with a special commitment to the Latino community. He was named one of the most influential Hispanics in the United States. He was also named California Attorney of the Year and recognized as one of the 50 most influential minority lawyers in America. His community service included serving on the board of directors of the Latino Community Foundation. Among his many accomplishments, Hernandez was paramount in helping to bring a University of California campus to Merced, which opened in 2005. He also served as a trustee to the University of California Merced Foundation. He is survived by his wife Teri Hernandez. A public service of remembrance for Gary Hernandez was held at the Four Seasons Hotel on Market Street in San Francisco on June 23.
www.autobodynews.com CHECK IT OUT!
CA Agents Group Seeks Auto Insurance Persistency Discount
The American Agents Alliance announced it has submitted for title and summary an automobile insurance discount initiative that would allow consumers to receive a discount for having continuous automobile insurance, regardless of the insurance company with whom the are insured, according to Insurance Journal. Presently, the law allows only the company where you are already insured to offer a “persistency” discount. The Agents’ Alliance’s initiative is similar to Proposition 17, which lost by 2 percentage points in the 2010 election, in allowing consumers to take their “persistency” discount with them and shop for better coverage and lower rates with other insurers. “The way the law is written now rewards insurance companies,” said Mike D’Arelli, executive director of the American Agents Alliance, according to Insurance Journal. “We believe that giving the consumers control over their discounts will increase competition between insurance companies, lower costs, and insure more people.” “After listening to the voters, our clients, and even our opposition, we realized that the new initiative needed to be written with greater clarity,” D’Arelli continued. “There are new provisions that protect the continuous coverage history of our men and women in the
military, those who suffered from the economic downturn, young drivers on the cusp of leaving home, and allowing proportional coverage for the whole years in the preceding five years in which a person was insured.” The Alliance expects to not only have the same support they received on Prop. 17, but have already begun working with USAA Insurance, the military insurance company, and others who opposed the 2010 effort.
San Francisco lnsurance Women’s Group Names Award Winners
The San Francisco Chapter of the National Association of Insurance Women has presented Marie Meadows of International Marine Underwriters with is Insurance Member of the Year award, and Alvenia Scott of Chartis Insurance with its Hall of Fame award, according to Insurance Journal. The San Francisco Chapter of NAIW is affiliated with NAIW (International), an association of insurance professionals dedicated to the development of leaders in the insurance and risk management industries through education, networking and industry alliances.
6 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Auto Body World in Arizona to Add Eighth Location
Auto Body World Collision Centers, based in Phoenix with several shops in the south-central past of the state, will add its eighth location, the company announced May 31. The new 34,000-square-foot shop, located on W. Chandler Blvd. in Chandler, AZ, will open in late June. Auto Body World Collision Centers was founded in 1962 and is Arizona’s largest independently owned multi-shop operator, with shops throughout the Phoenix and Casa Grande markets. “This addition is an important step in Auto Body World’s overall growth strategy, which includes deeper expansion into Arizona,” said Mark Turner, Auto Body World’s president, “This is a great opportunity for us, and we look forward to many more like it.” “This new location compliments our footprint very nicely because it allows us to serve consumers and our insurance partners along the 1-10 corridor in the east valley,” said Auto Body World CEO, David Fait. The new location will bridge the gap between the company’s south Gilbert location and their Casa Grande location.
Auto Body World Collision Centers is continuing to seek out well-run companies throughout Arizona for acquisition. Interested owners should contact Auto Body World President Mark Turner at m.turner@autobodyworld.com. For more information on the company, visit autobodyworld.com.
Advertise in our CLASSIFIED SECTION for $50 per column inch! Place an ad in our Autobody Marketplace section of Autobody News.
And get a FREE On-line Ad!
800-699-8251 kmangum@autobodynews.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 7
East Bay CAA Chapter to Hold 25th Annual Golf Tournament
The East Bay Chapter of the California Autobody Association (CAA) will host their 25th annual golf tournament on Saturday, July 30th, 2011 at the Diablo Creek Golf Course in Concord, California. T h e event was originally scheduled for earlier in the month but was cancelled due to inclement weather. The cost of the event is 440.00 per Foursome, 110.00 per player. Entry Includes: Lunch, 18 Holes of golf, Golf Cart, BBQ Dinner, and a chance at raffle prize. This is a fundraiser to help Contra Costa College and Alameda College Auto Body Programs in the San Francisco Bay Area. Please contact Lisa Daves at 925-699-2031 or email her at kayakgal@sbcglobal.net for more information. Sponsorships are still available, please contact Gigi Walker at 925383-1816.
Riverside County Approves Crash Tax on At-Fault Drivers
The Riverside County, CA, Board of Supervisors has voted 4 – 0 to charge at-fault drivers in auto accidents a fee for emergency response services, according to Insurance Journal. The ordinance is backed by the Riverside County Fire Department and Office of Emergency Services, and approved by the Riverside County Board of Supervisors, and will charge the atfault driver a flat fee of 13 percent of the cost for emergency response. It is unclear if the county will utilize a vendor to collect these fees. Crash tax ordinances and costs charged in other communities vary, with fees ranging from $100 to more than $2,000 for response services. The average charge is approximately $200, according to the Association of California Insurance Companies, which opposes such taxes. “Riverside County is no different than any other municipalities facing difficult budget crunches, and they are using a crash tax as an opportunity to increase revenues without formally raising taxes,” said Armand Feliciano, ACIC vice president, to Insurance Journal. ACIC said more than 60 municipalities and fire districts in California have implemented crash taxes.
8 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
CA State Legislators Seek to Give Counties Power to Raise Respective Vehicle Licensing Fees
With state leaders saying they no longer have the budget to afford to help fully fund local services, California lawmakers acted June 1 to give counties the power to individually increase vehicle license fees with majority voter approval, according to Insurance Journal. Under legislation approved by the state Senate, a county board of supervisors, by a two-thirds vote, could put a measure on its local ballots to raise the fee paid by vehicle owners in that county. The legislation allows the ballot measure to be approved by a majority vote, which drew opposition June 1 from Republican lawmakers, who said it circumvents the requirement for two-thirds vote on state tax increases. “We could end up with a hodgepodge of vehicle license fees throughout the state,” objected state Sen. Bob
Huff (R-Diamond Bar) before the 2315 vote to send the bill to the Assembly, according to the LA Times. The measure was also opposed by the California New Car Dealers Association, which said California motorists are already overburdened with hidden vehicle fees. Sen. Mark Leno (D-San Francisco) said local officials, including the California State Assn. of Counties, support his introduction of SB 223. “This bill is about local control and voter determination,” Leno said, according to the LA Times. “If your county doesn’t want it, it doesn’t happen.” California motorists pay a license fee equal to 0.65% of the vehicle’s value, which was reduced some years ago from 2%. SB 223 would allow counties to move their fee back up to 2%.
Register Your Email for Our
Free Monthly Newsletter at www.autobodynews.com
Bill Aimed at Providing Cheaper Auto Insurance for Low-Income Families Dies in Nevada Senate A bill to reduce the required auto insurance coverage for low-income families in Clark County has quietly died in the Nevada Senate as of May 31, according to the Las Vegas Sun. “The Republicans didn’t have an appetite for it,” said Assemblyman Kelvin Atkinson, D-Las Vegas, the sponsor of Assembly Bill 299, according to the Las Vegas Sun. “We’ll fight another day.” The Senate Commerce, Labor and Energy Committee approved the bill on a 4-3 vote, but it never came up for a vote in the full Senate before the May 31 deadline. The bill would have allowed a household to qualify with a gross annual income at or below 250 percent of the federally designated poverty level. The current law requires minimum coverage of $15,000, or $30,000 for two or more individuals for death and injury. It requires $10,000 in coverage for property damage. The low-cost policy would have provided death or injury coverage of $10,000 per person or $20,000 for two or more individuals. It would have set property damage coverage at $3,000.
The proposed policy would have only covered vehicles valued at $20,000 or less. Atkinson said the state Insurance Division didn’t know how many people would be eligible in the pilot program, which would have started in Clark County, according to the Las Vegas Sun. This uncertainty coupled with State Farm Insurance Company’s announcement that premiums would likely only be reduced by about $50, although the company took no formal standpoint on the bill, led to the bill’s demise. To finance the program, 50 cents would have been added to every private car insurance policy in the state. That would have required a twothirds vote on the bill in the Senate and Atkinson said he wasn’t able to muster up the three Republican votes he would have needed.
www.autobodynews.com CHECK IT OUT!
AZ Law Enforcement Seeing Increase in Extreme DUI Cases, BACs More Than Twice the Legal Limit Some Arizona law enforcement officials estimate that the number of socalled “extreme DUI” cases—those involving drivers with a blood alcohol concentration (BAC) of .15 percent or more—have doubled in recent years. Cases of “super extreme DUI”— where the driver’s BAC is more than .20 percent—have also risen sharply. From a law enforcement standpoint, this trend has resulted in tougher crackdowns on possible drunken drivers, and the public outcry will no doubt pressure judges to “throw the book” at people charged with higher-level DUI offenses. More arrests for aggravated DUI charges are expected as summer driving season—traditionally defined as the time between Memorial Day and Labor Day—gets into full swing across the state. With countless locals and tourists alike hitting the road to see the sights and having cocktails to relax, police around Arizona and across the country have amped up DUI patrols and checkpoints to coincide with the extra traffic, looking not only for drivers whose BAC is above the legal limit of .08, but especially for those with particularly elevated BACs.
InArizona, as in other states, aggravated DUI charges—where the driver’s BAC is .15 percent or higher—carry much steeper consequences than standard DUI charges. Whereas a traditional DUI charge, where the driver’s BAC is between .08 and .14 percent, carries with it the possibility of between one and 180 days in jail and a minimum fine of $250, an extreme DUI conviction brings a minimum of 30 days behind bars and at least $500 in fines. Extreme DUI convictions also result in longer periods of license suspension, mandatory installation of ignition interlock devices and an automatic impounding of the vehicle for 30 days. Super extreme DUIs have even higher penalties. Whether you are facing a standard DUI charge or an aggravated one, if you have been arrested for DUI, you need a skilled DUI defense attorney at your side to protect your rights and fight for your freedom. This information was provided by The Gillespie Law Firm, PC. For more information please visit www.craiggillespie.com or call (602) 253-1010.
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 9
California Autobody Association Holds Quarterly Meeting in San Diego The California Autobody Association Board of Directors met on May 14th at the Holiday Inn on the Bay in San Diego, CA. This was the 2nd quarter board meeting for 2011, the first was held in Sacramento in February. The CAA began the meeting by announcing their new endorsed insurance broker for CAA members, Owen-Dunn. Tim Dickison with Own-Dunn discussed the partnership with CAA and their commitment to providing CAA members with competitive pricing through approved carriers, along with superior risk and cost containment support services. CAA members can contact Owen-Dunn when their Workers Compensation and Liability Insurance comes up for renewal. Tim can be contacted at 916993-2755 or timd@owendunn.com. Tony Endres with Furnace Dynamics reported on the status of Rule 1147 which currently affects the South Coast Air Quality Management District (SCAQMD) but could be addressed by all the districts throughout California and would include body shops. Rule 1147 is a retrofit rule that is designed to lower NOx emissions on a wide variety of sources to specific ppm levels. These levels are determined by the type of equipment and the temperature of operation. The CAA has been working with various groups, including Furnace Dynamics, and will be working with others to make sure the industry conforms to reasonable emission limits. Verifacts Automotive spoke about their new program for CAA members titled “Business Ethics and Integrity with Emphasis on BAR." The objective is to train and empower shops to have the highest level of ethics and integrity and to differentiate them in the eyes of consumers, government, and insurance companies. CAA and Verifacts will be sending out additional information about these programs. Membership Committee reported that they are working on an addition for the website which will include a specific area where the top ten regulations and procedures that shops in California should be aware of, top ten employment law regulations, and the top ten OSHA laws and regulations will be posted. These will also include forms to assist the shops. The Education Committee dis-
cussed all the current education forums that are out there for the industry and will be evaluating those that the CAA can partner with. The Technical Review Committee (TRC) suggested that CAA start putting all “manufacture recommended procedures” on the website to assist members in accessing the information. Also, the group discussed spray outs and how these should be in the procedures. In addition, adhesion promoter was discussed and checking the paint manufacturer guidelines. Also, put out information to members on aftermarket parts and how they are defined in the DOI regulations. Concerns with state budget issues also came up, considering that the state legislature may look at other ways to raise revenues including tax reform proposals that would require small business to withhold 3% of payments to independent contractors and/or extend the sales tax to automotive services (labor). CAA will continue to monitor the state budget negotiations. Aftermarket Crash Parts Certification legislation is likely to be introduced this year but at this point the CAA has not received any specific language from proponents. They will continue monitoring these issues very closely and will report when there is more information on possible legislation. Below are the bills that CAA has been actively monitoring: 1) SB 869 (Yee)—Automotive Repair Dealers. Support. This bill increases the penalties for automotive repair dealers that a charge for a replacement of a deployed airbag but fails to repair and restore airbag as provided for in the estimate. Status: Senate Floor. 2) SB 211 (Emmerson)—Tire Inflation. Support. This bill would authorize a tire pressure gauge used to meet the requirements of the California Air Resources check and inflate tire regulations be accurate within a range of plus or minus 2 psi. Status: Senate Appropriations. 3) SB 631 (Evans)—Insurance Commissioner: violations: remedies. Support. This bill would authorize the Insurance Commissioner, in the exercise of his or her discretion to take enforcement action, to impose upon an insurer, licenses, or other entity or person subject to the commissioner’s au-
10 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
thority specified remedies, either by way of settlement or following a hearing, whenever the commissioner finds that there has been a violation of an applicable insurance law. Status: Senate Insurance Committee; testimony taken; further hearing to be set. 4) AB 1098 (Hagman)—Insurance: Unlawful Practices. Watch. This bill requires an insurer, upon a written request by the DOI, to disclose to the DOI that it has denied a registered auto body shop for participation in the insurer direct repair program. Status: Assembly Appropriations. 5) AB 1330 (Furutani)—Graduation requirements: Career technical education. Support. This bill would give students the option to take a course in career technical education (CTE), for purposes of fulfilling the high school graduation requirements. Status: Assembly Appropriations. The CAA continues to work closely with the California Insurance Commissioner and key staff to address issues facing the auto body industry, including reasonable estimate adjustments, labor rate surveys, steer-
ing, aftermarket crash parts and fair claims settlement practices. The Department has reviewed these and other related issues and has made recommendations to the Insurance Commissioner who is currently reviewing and analyzing the information for himself. The CAA is expecting to be meeting again with the Insurance Commissioner and his staff and assist in any way to address issues facing consumers and the auto body industry. The CAA will be providing updates as developments occur. Newly elected Governor, Jerry Brown has not finished making all his appointments to various state agencies, boards and commissions including the Director of Consumer Affairs, which oversees the BAR. In the meantime, Governor Brown’s team has been working closely with prior administration staff and expects that the BAR will continue to place a very strong emphasis on protecting the consumer in the automotive repair market. The CAA is See CAA Board, Page 12
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 11
New CA Dealer Offers Jaguar, Aston Martin and Lotus The California European Auto Group is expanding the availability of highend automobiles and service in Southern California with the opening of San Diego European Motorcars targeted opening in July. The addition of the San Diego campus increases the accessibility of the esteemed Lotus, Aston Martin and Jaguar as well as service in southern California. “At San Diego European we are representing some of the world’s finest automobiles with Jaguar, Aston Martin and Lotus. Our promise is to provide San Diego County world class cars and a world class customer experience in both our sales and service operations,” says San Diego European Motorcars General Manager Gary Sorter. Located at 7820 Balboa Avenue, San Diego European Motorcars is the third in California European Auto Group and will be shared by Aston Martin San Diego, Lotus San Diego and Jaguar San Diego. The new campus joins Desert European in Rancho Mirage and Newport European in Newport Beach. “We are an organization built on full embodiment of quality and luxury in all regards,” says Murphy, who notes that the prestige of the new deal-
New Orange County, CA, Dealership Set to Open in June
Talon Automotive Group will add another dealership in Orange County, with the opening of a new Chrysler/Jeep/Dodge/Ram location in San Juan Capistrano at the end of June, the company announced June 6. Other local Talon dealerships include Orange Coast Chrysler/ Jeep/Dodge/Ram of Costa Mesa, Orange Coast FIAT and OC Motorsports, as well as a Costa Mesa location that sells used vehicles. The new San Juan Capistrano dealership will fill a void for Chrysler owners and auto shoppers in South Orange County, said Jon Gray, Talon Automotive’s CEO according to the OC Metro. “South Orange County has been lacking a Chrysler/Jeep/Dodge/Ram dealership for several years,” Gray said to the OC Metro. “It’s a great opportunity for Talon Automotive Group to bring our … service to our customers in South Orange County and North San Diego.” With two O.C. locations now dealing in the Chrysler/Dodge brand, customers can buy or service their vehicles in two cities, depending on what is most convenient for them, Gray said. The dealership is located at 32881 Camino Capistrano.
ership’s Jaguar and Aston Martin vehicles will be matched only by the level of service clients can expect to receive. As he puts it: “Premium automobiles are our passion, but not for the sake of the cars themselves: for the experience of the driver.” The San Diego European facility will feature a state of the art showroom as well as a superior extensive service department. The intention of San Diego Europeans investment is to provide clients with the highest quality automobile experience in the coming years and decades. California European Auto Group is a multi-franchise provider of premium automobiles including Aston Martin, Jaguar, Rolls Royce, Maserati, Porsche, Audi, Bentley, Land Rover and Lotus. Their dealerships were first established in 1996 to provide an automotive environment suited to the discerning buyer. Learn more about California European Auto Group at www.CaliforniaEuropean.com. Follow the progress of the San Diego European facility on Facebook at http://facebook.com/SanDiegoEuropean
Southern CA Insurance Women Association Elects 2011-2012 Officers
The California South Bay Chapter of the National Association of Insurance Women elected its officers for the 20112012 term this month. The new officers will begin their terms on July 1, according to reports made by Insurance Journal. The new officers are as follows; President Gina Thomas Patterson, marine account manager with Roanoke Trade Services Inc. in Long Beach, CA, was elected president. She previously served as president-elect for the 20102011 term, and vice president for the 2009-2010 term. Wanita Iranmanish, commercial account manager with Nickerson Insurance Services in Lomita, CA, was named president-elect. She served as treasurer for the 20092010 term. Kathy Marshall will serve as Vice President for a second consecutive term, she is also assistant vice president business development west/San Diego CA with Paul Davis Restoration. Tiffany McPartland, commercial underwriter with Bliss & Glennon in Redondo Beach, CA was elected secretary for the upcoming term. Elected treasurer for as second consecutive term of office is Addie Davidson, owner of D.E. Banker & Associates in Lomita, CA.
EPA Orders California Tire Recycler to Clean Up Site
The U.S. Environmental Protection Agency has ordered Consolidated Tire Recyclers Inc. to remove excess stockpiled tires and improve fire prevention at its tire recycling facility in Mecca, CA. If the company fails to take care of the problem, the EPA says that it may fine the company as much as $7,500 per day. The facility is located at an Indian reservation. In a news release, Jared Blumenfeld, EPA’s regional administrator for the Pacific Southwest, said, “To protect the local community, including children attending nearby schools, EPA and the Tribe have taken steps to eliminate the risk of fire. As a start, EPA has ordered the facility to stop accepting any additional tires.” The EPA’s order, issued under the authority of the federal Resource Conservation & Recovery Act, follows a 2011 facility visit in which EPA and the Bureau of Indian Affairs found an estimated 90,000 tires to be an imminent fire risk. On May 17, a fire broke out in a building at the facility; no one was hurt and the fire was contained to a shredded tire piping system. For more information please visit: http://www.epa.gov/region9/waste/en forcement/
12 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Continued from Page 10
CAA Board
still working closely with the BAR on issues facing the industry including unlicensed automotive activity. The BAR is moving forward with cite and fine authority for unlicensed activity. The BAR has indicated that they have conducted undercover sting operations and there will be media reports in both northern and southern California regarding unlicensed repair shops. For more information please visit www.calautobody.com.
The source for timely information that every body shop needs!
CALL 800-699-8251 Start Your FREE Mail Subscription. Original BMW Parts
bmwusa.com
Extensive original BMW parts inventory Fast, friendly service and delivery Original BMW Parts Parts Manager: Bill Cox Main Phone: (760) 208-2350 Monday - Friday 7am - 7pm Saturday 8am - 5pm (No Saturday Deliveries)
BMW of Vista 1715 Hacienda Dr.,Vista, CA 92081 www.bmwofvista.com Wholesale Parts Manager: Mark Crueger E-mail: Markc@bmwofvista.com Call Direct: Fax:
(760) 208-2341 (760) 940-6395
Weatherford BMW
www.weatherfordbmw.com
(800) 995-9269
Original BMW Parts and Accessories
335is Coupe, 2011
Over $1 million parts inventory Extremely Knowledgeable Parts Crew Our fleet of vehicles will get your order delivered when you need it At Weatherford BMW we are 100% committed to your complete satisfaction Original BMW Parts
Weatherford BMW 750 Potter Street, Berkeley, CA 94710 www.weatherfordbmw.com
Toll Free:
(800) 995.9269 (510) 841.5996 Fax
parts@weatherfordbmw.com www.autobodynews.com | JULY 2011 AUTOBODY NEWS 13
CAA San Diego Chapter Holds 17th Annual Golf Tournament The San Diego chapter of the California Autobody Association (CAA) held their 17th annual golf tournament on
Lunch was also served following the morning golf rounds where attendees were given the opportunity to
1st Place Low Gross score: Milo Johnson A/B / Henson & Son A/B – Zack Brown, Kirk Henson, Ross
Drive and Closest to the Pin: Haily Ney Men’s Long Drive Winner: Kurt Ney
Larry Houk (far left) awarding trophy to 1st Place winners from Team Milo Johnson A/B / Henson & Son A/B – (L-R) Zack Brown, Kirk Henson, Ross Johnson, Jeff Johnson
Women’s winner of both the Long Drive and Closest to the Pin: Haily Ney
Men’s Long Drive Winner: Kurt Ney
Men’s Closest to the Pin Winner: Aaron Crossett
June 4 at the Twin Oaks Golf Course in San Marcos. The event had a large turnout this year, the best the chapter has seen in years, according to chapter President Hop Sanchez. “This was our best CAA San Diego Chapter turnout with 94 players. We also want to extend a special thanks to Dee and Joe at check-in and Dee selling raffle tickets from Enterprise,” said Sanchez.
network with their fellow CAA members. Trophies were given to first, second and third place teams with the lowest gross score, first place team with the lowest net score, women’s winner of the long drive and closest to the pin, men’s winner of the long drive and closest to the pin, and the longest marshmallow drive winner.
Below are the winners:
Audatex Offers $25,000 Matching Funds For CA School Makeover Grant Through Education Foundation
Audatex is looking to help enhance the future of the automotive collision repair industry by offering a $25,000 matching grant to provide one California school’s collision program with an Ultimate Collision Education Makeover through the Collision Repair Education Foundation this fall which will fulfill the program’s $50,000 wish-list. Audatex will match individual and business tax-deductible donations to the Education Foundation (up to $25,000) and a California secondary or post-secondary school’s collision program will be selected from the applicants of the Foundation’s 2011 Makeover school grant. Funding of Audatex’s California matching grant is part of the $100,000 donation to the Collision Repair Education Foundation in 2010 by Solera and their CEO Tony Aquila, the largest cash donation ever received by the not-for-profit organization. Since 2009 the Collision Repair Education Foundation has offered their annual Ultimate Collision Education Makeover school grant where one secondary or post-secondary school’s collision program is selected nationwide. Over the past two years, over 80 schools have applied for this grant and through this support opportunity, collision students’ education
has been enhanced. Both the Collision Repair Education Foundation’s annual Makeover grant winner and Audatex’s California winning school will be announced during SEMA 2011 this fall in Las Vegas. “This is an exciting opportunity for Audatex and the industry to make a real difference in the lives of thousands of students through a school Makeover”, said Rick Tuuri, VP of Industry Relations for Audatex. Collision Repair Education Foundation Executive Director Scott Kruger said, “I commend Audatex for helping the Education Foundation expand the Makeover school grant program and help transform one California school’s collision program that will benefit current and future students for years to come. This grant will significantly assist one California school’s collision program with needed tools, equipment, and supplies. Audatex has put the challenge out to the industry to match their $25,000 and through others stepping up and participating with this program, the industry can come together to support its own future.” For additional information contact Brandon Eckenrode at Brandon.Eckenrode@ed-foundation.org or 847.463.5244.
14 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Johnson, Jeff Johnson 2nd place low Gross score: LKQ / Keystone – William Peargin, Rod Albin, Josh Tipton, David Bateman 3rd place low Gross Score: Weseloh Chevrolet – Frank Metroyanis, Don Rogers, John Duraso, Kernie Kohlmyer 1st place low Net Score: CAA State President & Fix Auto – Chuck Reyes, Ron Green, John Bosin Women’s winner of both the Long
Men’s Closest to the Pin Winner: Aaron Crossett Longest Marshmallow Drive winner: Larry Haley For more information please visit www.calautobody.com.
Search:
Autobody News on Facebook
Eileen Sottile and the Quality Parts Coalition Offer Their Legislative Update The Quality Parts Coalition (QPC) is a group of about 80 representatives from different companies and associations that focuses on preserving competition of auto repair parts by supporting the availability of lowercost alternative collision repair parts for consumers and insurers. Eileen Sottile, a representative for QPC who has been instrumental in getting legislation together for the organization to present to Congress, gave a legislative update to Eileen Sottile Autobody News on the group’s upcoming endeavors now that there is a new Congress on the hill. QPC came about in response to a 2005 patent infringement suit that Ford brought to the International Trade Commission (ITC) against Keystone, alleging design patent infringement of exterior collision repair parts for the 2005 F-150. It was after this case that coali-
tion members realized they “needed a permanent change to the patent laws,” said Sottile. According to Sottile, up to that point people in the aftermarket crash part industry didn’t think they would have design patent issues on cosmetic parts. Ford brought yet another lawsuit against LKQ/Keystone following the F-150 case, and Sottile said that without a change in the patent laws carmakers can continually come back with lawsuits on a part-by-part basis and bankrupt the aftermarket parts industry. Sottille says QPC was created in response to these issues to try to find a solution. This group represents all aspects of the repair industry, including; insurers, collision shops, seniors, retailers and aftermarket parts companies and manufacturers. Some consumer groups have also voiced their support for QPC’s legislative endeavors, although they are not QPC members. “In most cases we didn’t feel they even deserved a patent,” said
Sottile. The cosmetic parts in question are so similar to their aftermarket counterparts that Sottile said that
QPC has a hard time seeing how they rose to the standard of getting a design patent. According to Sottile, the car companies currently have a “near monopoly” on the crash parts market with 72% control of the market and these design patents will only increase that holding. QPC is gathering support for legislation the group may introduce in Congress sometime this year. QPC originally introduced a bill into Congress in 2009; it aimed to make the act of providing a part solely for the purpose of repair exempt from design patent infringement. It was based on current laws in Australia and the UK known as “repair clauses.” That bill did not get voted on by the full
Senate and House before their session closed. QPC is currently working in a bipartisan manner to explore potential legislative solutions to the design patent issue for introduction to the current Congress that is in session. QPC has had several meetings with Congress, including a meeting with the House Intellectual Property Subcommittee and a full Judiciary House meeting. According to Sottile, the support for reforming design patent laws with a repair clause is there, the group is just awaiting reintroduction in Congress. “If a patent is awarded, competition in the secondary market should still be permitted,” said Sottile. Sottile drew the distinction that QPC has no intention of prohibiting the protection a patent provides primary competitors against each other with the legislation—”but in the secondary market, when the part is only provided for repair, we don’t think it should be subject to See Quality Parts Coalition, Page 18
Great Service.
Great Prices. Riverside Nissan
Riverside Volkswagen Competitive Parts Pricing!
Direct Line:
951.509.2125 951.509.2123 Fax
8330 Indiana Ave., Riverside, CA 92504
Riverside Honda We Use Collision Link!
FREE DELIVERY TO MOST OF THE INLAND EMPIRE
Mention this ad for a free gift!
D Direct Line:
951.509.6550 9 9951.509.6523 Fax 8330 Indiana Ave., Riverside, CA 92504
Hours: Mon-Fri. 7-7; Sat. 8-5 8330 Indiana Ave., Riverside, CA 92504
Riverside Hyundai Genuine OEM Parts!
Qualified Staff!
GENUINE SERVICE & PARTS
Riverside Mazda Huge Inventory!
Direct Line:
Direct Line:
Direct Line:
951.509.6574
951.509.6577
951.509.6577
8330 Indiana Ave., Riverside, CA 92504
8330 Indiana Ave., Riverside, CA 92504
8330 Indiana Ave., Riverside, CA 92504
951.509.6575 Fax
951.509.6578 Fax
951.509.6578 Fax
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 15
Mitchell Inc. Gives Local CAA Members Open-House Tour of Facilities Mitchell International hosted an Open House for CAA members at their new Mitchell Technology Campus in the University City area of San Diego on May 24th. The CAA San Diego Chapter partnered with Mitchell International to host the Open House so that CAA members could get a unique insider’s view of Mitchell’s collision information software and their new development facility for their approximately 850 San Diego employees. The event was well attended with over 100 participants. Marc Brungger, Executive Vice President of Auto Physical Damage Solutions for Mitchell, opened the meeting with a
warm welcome to CAA members and their guests. Mitchell provided small group tours of their editorial and software development areas and explained how volumes of information, from a multitude of sources, is turned into state-of-the art tools for collision repair professionals. Mitchell also hosted a casual dinner at the end of the tour. The 1st stop on the tour was presented by Tim Schuh, Director of IT Support. Tim provided an overview of Mitchell’s IT operations and explained that Mitchell’s “Command Center” is comprised of approximately 1,500 servers in multiple locations to ensure best performance and redundancy. The 2nd tour stop was given by Shelton Byrd, Inside Sales Representative, who provided an overview of the Mitchell RepairCenter Estimating system.
Amanda Smith (Mitchell International) and Hop Sanchez (FinishMaster) socializing at the Mitchell Open House event
Mitchell’s new University City facility also showed off their new logo
At the 3rd stop Jerry Gastineau, Technical Writing Manager, provided information about Mitchell’s Collision Estimating Database which is developed by 3 key process teams. The Parts Team is comprised of staff with many years of dealership Parts
Garmat® USA Selected as a Colorado Company to Watch
Garmat® USA, has recently been recognized as a Colorado Company to Watch. They join a select group of Colorado Companies acknowledged for their hard work, dedication and contribution as a growing company in the state of Colorado. “Garmat USA is honored to receive this award. Although being located in Colorado has been integral to our success, it would not be possible without the dedication of the Garmat employees and distributors,” said Johan Huwaert, General Manager. “We are pleased to recognize Garmat USA for their outstanding contribution to the fueling the economic fire of our wonderful state. Thank you Garmat USA,”
said Stephanie Steffens, Colorado Companies to Watch Program Director. The Colorado Companies to Watch Program honors Garmat USA for developing valuable products, creating quality jobs, enriching our community and being a part of Colorado’s Economy. The award not only acknowledges the company’s growth but also recognizes the critical differences Garmat USA has made in their industry through their innovative products. Garmat USA manufacturers spray paint booths and finishing solutions for collision repair, aviation and industrial applications. They are located in Englewood, Colorado.
16 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Department experience, the Labor Team staff has over 10-15 years of hands-on collision repair experience, and the Estimating Team is made up of staff with extensive estimating backgrounds. This group works with raw data from over 66 OEMs and through their Mitchell authoring process they turn this raw data into usable data for collision repair professionals. The 4th stop provided information on Mitchell’s RepairCenter Customer Experience Management (CEM) solution and was presented by Kelly Sedemund, Director of Client Programs. Powered by Autochex, the CEM solution helps collision repair shops listen to their customers’ feedback and “turn CSI into a competitive edge for their business.” The 5th stop provided information on Mitchell’s TechAdvisor database and was presented by John Bachman, Technical Writing Manager. According to John (pictured at right) the TechAdvisor database provides Repair Standards for all makes and models and detailed vehicle di-
mensions. Mitchell measures each car independently from OEM-provided measurements and measures over 150 new cars per year. Mitchell is now using a new indoor GPS system to measure cars more efficiently.
For additional information about the CAA and membership benefits, contact Hop Sanchez at SanchezH@Finishmaster.com. For additional information about Mitchell International and their products and services contact Mitchell at 800-238-9111 or visit the Mitchell website at www.mitchell.com.
Original BMW Parts
bmwusa.com
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. Because you can’t repair your reputation.
Northern California BMW Centers Niello BMW
Sacramento (916) 486-1299
Sonnen BMW San Rafael (415) 482-2040
Southern California BMW Centers
Weatherford BMW Berkeley (800) 995-9269
BMW of Escondido
Center BMW
Savage BMW
BMW of Palm Springs
Crevier BMW
South Bay BMW
Escondido (800) 544-4269 Palm Springs (760) 324-8314
BMW of San Diego San Diego 858-560-0268 FAX (858) 277-7928
Bob Smith BMW
Calabasas (818) 340-9640 FAX (818) 340-9455 parts@bobsmithbmw.com
Sherman Oaks (818) 990-9518 Santa Ana (714) 835-2025
Long Beach BMW
Signal Hill (800) 794-4269 (562) 427-5494 www.longbeachbmw.com
New Century BMW, Inc Alhambra (626) 576-2867
Ontario (800) 241-4269 Torrance (310) 939-7342 (310) 939-7343
Sterling BMW Newport Beach (949) 645-8729
Original BMW Parts
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 17
Hyundai, Kia Face Fair Trade Commission Antitrust Probe on Auto Parts Pricing After Allegations South Korea’s antitrust regulator has begun a probe into allegations that Hyundai Motor Group forced its auto parts suppliers to lower product prices, a person familiar with the matter said June 9 according to the Detroit News. The Fair Trade Commission this month visited the offices of Hyundai Motor Co., Kia Motors Corp. and Hyundai Mobis Co. after sending the companies, all members of the Hyundai Motor Group, notice of the probe, the person said. It wasn’t clear which auto parts and which suppliers are involved. Hyundai Motor Group, the world’s fifth-largest car maker by sales, declined to comment. Hyundai Motor and Kia Motors usually have price-setting negotiations with around 2,000 subcontractors twice a year. Given their size, Hyundai and other South Korean conglomerates have enormous leverage in setting prices during negotiations with their subcontractors. Last month, a Seoul court upheld a decision in 2006 by the Fair Trade Commission to fine Hyundai Motor about 1.6 trillion won ($1.48 billion)
for forcing its parts suppliers to reduce component prices. The antitrust watchdog’s latest move comes as the government is expected to place more emphasis on supporting small and midsize companies, many of which continue to experience tough times even as the nation’s conglomerates power the country out of the 2007-2008 global financial crisis. With South Korea recovering quickly from the crisis, President Lee Myung-bak, whose five-year single term ends in early 2013, has urged South Korea’s conglomerates to try to share the “warmth of the economic recovery” with their smaller peers and prosper together with them.
The source for timely information that every body shop needs!
CALL 800-699-8251
CARSTAR Auto Body Repair Experts Hold Third Annual Soaps It Up! Car Wash for Make-A-Wish Foundation
More than 2,000 volunteers at 140 of CARSTAR's stores across the US and Canada washed cars to raise funds for the Make-A-Wish Foundation® and Kids with Cystic Fibrosis. On June 11, thousands of volunteers across the United States and Canada washed vehicles at CARSTAR locations in hopes of breaking the Guinness World Record for “Most Cars Washed – Multiple Venues” the franchise set in 2009 by washing more than 4,000 vehicles in eight hours. In the process, CARSTAR hoped to raise funds to help grant wishes for the Make-AWish Foundation of America and serve children with cystic fibrosis in Canada. Themed “Wash for a Wish”, the third annual Soaps It Up! Car Wash was held on June 11, 2011 and tickets were sold at participating CARSTAR stores in the U.S. for $10, with 100 percent of the ticket purchase benefiting the selected charities. While stores across North America participated, the host for the record-breaking attempt was at CARSTAR Collision Care of Milford, OH, owned by Cincinnati native Keith Foster. The repair facility, located at 731 State Route 28, in Milford, OH, held special events throughout the week in Cincinnati and
led the countdown on washing the car that broke the record. “Over the first two years, the Soaps It Up! Car Wash has been able to unite the CARSTAR family across North America to help thousands of children in need,” said David Byers, CEO of CARSTAR Auto Body Repair Experts. “Now, we are ready to continue the tradition and make the “Wash for a Wish” Soaps It Up! Car Wash the biggest and best ever. We want to break our Guinness World Record for world’s largest car wash – and bring even more support for the Make-A-Wish Foundation®.” “We’re grateful that CARSTAR is doing so much to help us improve the quality of life for our wish kids and their families through a wish experience,” said David Williams, Make-A-Wish Foundation of America president and chief executive officer. CARSTAR stores in Canada have been conducting the “Soaps It Up!” Car Wash for the past seven years, and this is the third time the program has been done in the US. The 2009 event was the first attempt for any group to set the record for the largest car wash across multiple locations. For more information on the “Soaps It Up!” Car Wash, visit www.CARSTAR.com.
18 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Proceeds From 911 Collision Mustang Raffle Benefit Arizona Youth Organizations
A raffle for a retro-mod 1966 Mustang, combined with 911 Collision Centers’ Community Foundation’s annual charity golf tournament held May 6 in Tucson, netted $70,000 for two local youth organizations. In making the announcement, Michael Quinn, Event Chair and CoFounder of 911 Collision Centers, said that the proceeds will be shared by Cystic Fibrosis Foundation of Southern Arizona and Big Brothers Big Sisters of Tucson. The Mustang shell, new engine and parts were purchased and donated by 911 Collision Centers. The paint was donated by DuPont Performance Coatings. All the labor to restore and modify the vehicle was completed on a volunteer basis by the companies’ technicians during off-duty hours. “Because of the donation we made and the contribution by both our team members and DuPont 100% of every dollar raised went to the two charities,” said Quinn. The winning raffle tickets were drawn at the conclusion of the Make-ADent Golf Event. Major sponsors of the event included Hertz, DuPont Performance Coatings, D’Angelos Coatings, Kent Automotive, LKQ, Insurance Auto Auctions and Enterprise Rental Co.
Continued from Page 15
Quality Parts Coalition
design patent enforcement,” said Sottile. For example, QPC believes that design patent laws should prevent BMW’s signature grille from Ford recreating it and using it on their Fiesta, but it should not prevent aftermarket parts companies from recreating the BMW grille for replacement on a damaged BMW vehicle. Sottile also argues that the preservation of competition in the parts market in this manner ultimately allows for the consumer to benefit. “There’s a big cost difference between these parts; about 25 to 60 percent,” said Sottile. “The timing is critical in this economy.” For more information about QPC and their legislative endeavors please visit keepautopartsaffordable.org. The full text of the QPC’s past legislation can also be seen at www.autobodynews.com.
Hit a HOME RUN! with our Genuine Ford Parts s
When it comes to Ford Genuine Parts, go with a winning team. Use Genuine Ford Parts for your customers’ late model Ford, Lincoln and Mercury vehicles. You're always guaranteed that they will fit right the first time, every time.
Hit One Out of the Park! Call your local Authorized Ford Wholesaler today!
Shelby GT350 2011
These dealers are Genuine Ford Parts wholesale specialists. Airport Marina Ford LO S ANGELES
888-590-6622 310-306-2899 Fax
www.airportmarinaford.com parts@airportmarinaford.com
SO . C A L I F O R N IA
Drew Ford LA MESA
800-648-7431 619-668-7765 619-668-7719 Fax www.drewauto.com
Kearny Pearson Ford SAN DIEGO
858-560-5033 800-635-6669 858-560-9648 Fax
Antelope Valley Ford
Fairview Ford Lincoln Mercury
Largest wholesaler in San Diego with 17 delivery trucks.
661-945-0881 661-945-3501 Fax
909-386-0220 909-889-1741 Fax
760-438-2892 760-431-0803 Fax
L A NCASTER Wholesale Parts Dept.
SAN BERNARDINO Wholesale Direct
www.avford.com jrondou@avford.com
Ford of Montebello
AL H AMBRA Wholesale Direct
888-566-5240 323-838-0195 Fax
Bob Wondries Ford
MO N TE B E L LO Wholesale Direct
888-238-5415 626-284-9109 Fax
fordofmontebello@yahoo.com
Buerge Ford
CLO V I S
www.bobwondriesford.com parts@bobwondriesford.com W E S T LOS ANGELES
310-820-1431 310-826-0221 Fax
Citrus Ford ONTA RIO
909-390-0948 909-390-0982 Fax
scunningham@citrusmotors.com
Colley Ford
GL ENDORA Wholesale Parts
877-441-3673 909-592-8577 Fax
E-mail your orders parts@colleyford.com
Future Ford of Clovis
800-350-2552 559-294-0816 Fax
Fritts Ford RIVERSIDE
951-343-7556 951-687-3044 Fax
wsparts@frittsford.com
Galpin Ford VA N N U Y S
818-778-2005 818-778-2090 Fax
N O. CALIFORNIA
Vista Ford Lincoln Mercury
The Ford Store of San Leandro SAN LEANDRO
OX N A R D Wholesale Direct
800-690-6906 510-347-4160 Fax
805-983-4551 805-278-0554 Fax
Walnut Creek Ford
Worthington Ford
WAL N U T C R E E K
LO N G B E A C H
925-932-2901 925-937-7460 Fax
www.kengrodyford.com Steve.manning@ kengrodyford.com
tonyc@calworthington.com
Findlay Lincoln
LO N G B E A C H
S A C RA M E N T O
Ken Grody Ford CA R L S B A D
Pacific Ford
800-353-7224 562-492-9452 Fax
parts@pacificford.com
Palm Springs Motors CAT H E D RA L C I T Y
760-328-7149 760-328-5092 Fax
Super Ford Lincoln Mercury
800-622-4225 562-421-4033 562-496-1871 Fax
Berge Ford MESA
480-497-7660 480-497-7581 Fax
www.bergeford.com parts@bergeford.com
Camelback Ford Lincoln Mercury PHOENIX
480-946-3900 480-949-7617 Fax
Serramonte Ford
www.fordcountrylv.com
650-301-7190
LAS VEGAS
480-763-6233 480-783-4655 Fax
916-922-8355 916-922-2691 Fax
mdiaz@harroldford.com www.harroldford.com COLMA Wholesale Parts Dept. Phone: Wholesale Parts Dept. Fax:
650-301-7087
S U N N Y VA L E
I RV I N E
ARIZONA
Ford Country
Harrold Ford
phfordparts@yahoo.com
949-472-5230 949-472-0327 Fax
702-395-5196 Fax
www.teamfordparts.com
702-982-4765 702-457-2375 Fax
NO. CALIFORNI A
www.serramonteford.com
Tuttle-Click Ford Lincoln Mercury
HE N D E R S O N
N E VA D A
602-248-8396 602-240-5645 Fax
(Formerly Puente Hills Ford) CI T Y OF I N D U S T R Y
800-965-1055 626-965-9666 Fax
N EVADA
Make us your one-stop shop today!
Sunnyvale Ford Lincoln Mercury
408-738-1530 408-738-3125 Fax
www.fordautodirect.com
www.findlaylm.com Lbaskin@findlayauto.com HE N D E R S O N
702-558-8100 702-566-7037 Fax
Friendly Ford
702-877-6546 702-870-6280 Fax
Gaudin Ford LAS VEGAS
702-796-2762 702-792-5370 Fax
Team Ford Lincoln Mercury LAS VEGAS Wholesale Parts Dept.
702-395-5144
Chapman Ford S COT TSDALE
Earnhardt Ford CHANDLER
www.earnhardtford.com
Power Ford North Scottsdale S COT TSDALE
480-998-0652
Sanderson Ford GLENDALE
800-367-3673 623-842-8762 623-842-8799 Fax
www.sandersonparts.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 19
Industry Overview with Janet Chaney
Janet Chaney has been involved in the collision industry as shop owner and business consultant. She serves her clients through Cave Creek Business Development. Contact her at jchaney.cavecreek@gmail.com.
Auto Recyclers Host Prominent Collision Repairers in Panel Discussion URG, the United Recyclers Group, hosted a Body Shop Panel Discussion at their 2011 annual conference in Englewood, CO, April 15. A lot of common ground was discovered in this URG panel discussion, which was acknowledged by everyone in the room. The hour-long panel discussion was effective in its goal of honest dialogue discussing needs and opportunities between these two industries. All stakeholders want to do better business and the repairers and recyclers would like to do business better, together. Over 800 recyclers attended the two-day event. “We have grown (our industries) together from mom and pop organizations to the large conglomerates we are today,” said Clark Plucinski, Executive Vice-President of Sales and Marketing at True 2 Form—which recently became a part of the Boyd Group/Gerber collision repair chain. Plucinski reminded everyone in the room that “We are now all inter-connected in business-to-business relationships.” In resolving difficulties, Plucinski asked for patience. “These processes are working, but it is like pushing a rock up a hill [which keeps rolling back]. We just have to be patient and keep doing the same thing.” Gary Boesel, owner and operator of two CARSTAR collision repair centers in the Denver area, concurred. “[Things have evolved] over the years and are different than they used to be,” saying that somewhere, somehow, collision repairers and recyclers quit effectively communicating. Facilitator Don Porter, of State Farm Insurance opened up the discussion, asking panelists to introduce themselves and say a little about their business. Porter made sure the audience of recyclers was involved, saying “You don’t have to be nice to me—just be nice to these people,” referring to the collision repairer panelists. Everyone on the panel shared almost the same story about the ‘condition’ of parts and on-time delivery dates. In today’s collision repair market, shops are measured (by insurers) by what proportion of alternative parts
they use, cost effectiveness, and most importantly—cycle time. Cycle time was recognized by this panel as the most critical component in their business operations today. If a used part is delivered to a shop that is expecting an undamaged part and they receive a part with undisclosed damage, that is a significant cost to everybody. Bill Abold, of A&P Auto Recycling in Cicero, New York, shared the frustration he and other recyclers experience. “We work with our collision
customers, train our staff, but when parts are found electronically and the price is the lowest common denominator, then the shop is going to get that cheapest part and they are not going to accept it. We then have to work through the price difference with the shop and the insurance company. That doesn’t work for anyone.” This statement triggered an ovation from the 300 attendees in the room. There is the beginning of a solution available that could reduce the
‘condition’ problem. The Automotive Recycling Association, in concert with CIECA, has developed a standard set of damage codes to be used by repairers and recyclers. They are established and accepted, through CIECA, by both industries. However, the panel came to the conclusion that no one is using them. The participating panelists, who represent a very large segment of the collision industry, reported that they found no one actually using the dam-
Audi Genuine Parts Best Delivery Service (Twice Daily) to LA County $750,000 Genuine Audi Parts Inventory 8,000 + Parts in Stock
Audi of Downtown LA 1900 S. Figueroa St., Los Angeles, CA 90007 Tel: (213) 747-7248 Fax: (213) 222-1261 Parts Manager: Fausto G. www.audiofdowntownla.com Service Hours: 8:30 am – 6:30 pm
• Best Delivery Service (Twice Daily) to LA County • $500,000 Genuine Porsche Parts Inventory • 6,000 Numbers in Stock
OF DOWNTOWN LA Tel: (213) 748-4624 Fax: (213) 222-1278 1900 S. Figueroa Street Los Angeles, CA 90007 Parts Manager: Marlon L.
www.porschedowntownla.com
Service Hours: 8:00 am - 6:30 pm
• Best Delivery Service (Twice Daily) to LA County • $750,000 Genuine VW Parts Inventory • 8,000 Numbers in Stock
Direct: (213) 747-7246 • (213) 747-7247 Fax: (213) 222-1272 1900 S. Figueroa Street • Los Angeles, CA 90007 Parts Manager: Carlos L.
Service Hours: 8:00 am - 6:30 pm
20 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
www.vwdowntownla.com
age codes and few people knew about them. Repairers noted that condition codes on parts found through third party locaters had no meaning to them at all. The Damage
your sales staff’s, but we are working on this.” Tim Adelman, Executive Vice President of Business Development for ABRA Auto Body and Glass,
plier improvement opportunities,” explained Adelman. For the shops on the panel, relationships with a good quality recycler was the most important criteria. Shops are looking for a good product and want it to be delivered on time. “The goal at our shop is to spend less time on the phone and on email,” said Dan Stander, General Manager of Fix Auto Highlands Ranch. “It is more time effective and we don’t have any confusion about descriptions.” The formal panel United Recyclers Group hosted its first Auto Body Panel Discussion in April: (l-r) Facilitator, Don Porter, State Farm ended but dialogue conInsurance; Gary Boesel, CARSTAR, Denver, CO; Gary Wano, G.W. and Son, Oklahoma City, OK, Dan Stander, Fix Auto, Jerry Standers Collision; Bob Jones, RJones BODYPROS, Des Moines, IA; Clark Plucinski, True 2 Form/Gertinued throughout the ber; Tim Adelman, COO ABRA Body and Glass halls most of the day. Code information discussion was shared these first quarter 2011 statisBob Jones, owner-operator of R Jones positive for both groups, recognizing tics from 100 ABRA locations. On a Body Pros, in Des Moines, Iowa, put that they have something to work to- scale from 1–10, 10 being the highest, it succinctly, “You guys want to sell us wards. measuring overall CSI, OEM scored 9 the correct part and we want to buy Gary Wano, owner/operator of and Recyclers scored 7.5. For overall the correct part.” The inter-industry communicaG.W. and Son Auto Body in Oklahoma quality of parts received, Recyclers: City, OK, said, “Have a little patience 7.4, Accuracy of the Part, Recyclers: tion initiated at the April meeting with us please, sometimes our concept 8.2 and On-Time Delivery, Recyclers: should help collision repair and auto of a usable part may be different than 6.8. “We survey parts people for sup- recycling industries start working for
the common goal: better business for everybody.
More on the Panelists’ Credentials The credentials of the panelists brought together by the URG was impressive. In 2010, Boesel was selected as Small Business Person of the Year by the Aurora, CO, Chamber of Commerce and he sits on the CARSTAR National Advisory Board. Wano’s family owned business is a Mercedes Benz, Jaguar, and Volvo Certified shop. He is Immediate Past Chair of the Society of Collision Repair Specialists (SCRS) and in 2008 was Body Shop Business’ Executive of the Year. Dan Stander is ASA’s National Collision Division Director. Both Bob Jones and Clark Plucinski are Collision Industry Conference, “Hall of Eagles” members. Jones is a founding member and past Chairman of SCRS. Plucinski serves on numerous Industry Boards and was voted Body Shop Business’ Collision Shop Executive of the Year in 1996. Tim Adelman now leads ABRA’s industry relations and serves on numerous industry advisory boards.
EW DRN DAI
W E R D VOLKSWAGEN
Hyundai San Diego’s Best Selection of rts! New & Re-manufactured Pa
Parts! Genuine OEM Volkswagen
HYU
• Large Inventory • Fast & Free Delivery • 12 Trucks Serving San Diego County, Imperial County and parts of Riverside County • Experienced Wholesale Specialists Readyy to Serve You p
1-888-839-0777
• Large Inventory • Fast & Free Delivery • 12 Trucks Serving San Diego County, Imperial County and parts of Riverside County • Experienced Wholesale Specialists Ready to Serve You
1-888-839-0777 1-619-668-7782 Direct
1-619-668-7782 Direct
Email: importorder@drewauto.com uto.com www.drewhyundai.com om
Email: importorder@drewauto.com wauto.com www.drewvolkswagen.com en.com
Hours:
Hours:
Monday - Friday: 7:00 am - 6:00 pm Saturday: 8:00 am - 5:00 pm
Monday - Friday: 7:00 am - 6:00 pm m Saturday: 8:00 am - 5:00 pm
8850 Grossmont Boulevard La Mesa, CA 91942
8850 Grossmont Boulevard La Mesa, CA 91942 www.autobodynews.com | JULY 2011 AUTOBODY NEWS 21
Action Counts
Learning to Deal with that “Big Hill” with Lee Amaradio Jr.
Learn each day to deal with the issues you are faced with at the moment. We all make huge mistakes when we look too far ahead and begin to worry about what might or could happen eventually. I ride mountain bikes, and have been for years, but recent circumstances have kept me off of my bike for quite some time. Last week I chose to break out my bike, fill up the tires, and go for a ride. I chose a route that I knew very well. It’s a short 12-mile loop with a big demanding hill at the end. As I started my ride everything went as planned except I realized quickly that I was not in the shape I had been in the past. I was very familiar with this route because I had done the ride a hundred times or so. I knew the “Big Hill” that was waiting for me at the end, when I would be the most tired. As I continued on I really wasn’t sure I was feeling strong enough to do
the “Big Hill.” I continued to think about the “Big Hill” constantly as I rode on. I realized that I was worrying about the “Big Hill” so much that I was adjusting the way I was riding and this was making me more tired. I was conserving energy by going slower then faster, (wrong technique) and was not feeling good at al. My entire focus was on the “Big Hill,” so much so that at this rate I may not even make it to the “Big Hill.” I stopped to take a break. I was exhausted thinking that I was really out of shape when it dawned on me that worrying about the hill was consuming all of my energy. I was too concerned about how I thought I would feel if I didn’t conserve enough energy instead of just riding the best I could and dealing with the hill when I got there. The hill that I may not even ride up was dictating how I was riding now and adding an element of stress that made no sense at all.
Passion for Performance • Large Inventory of Volvo Genuine Parts • Extensive Parts Experience • 3 Delivery Trucks with Cell Phones Making Two Deliveries Daily to Most North and South Bay
Call Today!
800-70-VOLVO
Parts Direct
650-493-3205
Fax 650-493-1516
Hours: Mon - Fri 7:30am - 5:30pm
www.carlsenvolvo.com 4180 El Camino Real, Palo Alto, CA 94306 22 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com
I realized that there was a mental battle going on in my mind and it was sapping my strength. I have read many articles which have pointed out that dealing with stress can use up to seventy percent of our physical energy. I was feeling this firsthand now and the “Big Hill” was consuming my strength. I needed to make a decision right then to either ride the hill or not ride the hill or my entire ride would be pointless. I would be returning home feeling defeated rather than uplifted and strong. So I decided I was going to ride the hill no matter how painful it was. I got back on my bike. Now my goal was only to get to the hill and to the top of it as quickly as possible. I felt a surge of energy like the days of old and was pedaling as fast as I could to the base of the hill. The very thing I was afraid of before was now what was motivating and energizing me. I faced the hill and dealt with it and it lost its power over me. Not only
did I get to the top of the hill but I learned a lesson that I was able to apply to my business and my life in general. I had faced the hill—the thing that I was most afraid of at that time—and I had dealt with it, so it lost its power over me. Whether or not I decided to ride up the hill was not the issue. I needed to make a decision early on to face it so I could free my mind up and concentrate on the task at hand, which after all, was just riding the bicycle. The stress was not only mentally exhausting it was also draining me physically. After I made it up the hill and went home feeling stronger, inspired, and satisfied like I had really accomplished something that day. We worry about many things that we will never change in the collision industry—that is, the “Big Hill” is not going to go away. But how we deal with our “Big Hills” is what will make the difference. Recognizing that the deSee Big Hill, Page 24
On Creative Marketing How to Survive a Summer Slump with Thomas Franklin
In my neighborhood, several shops are saying they’re having a “summer slump.” Maybe it’s the economy. Maybe people have gone on vacation ignoring needed repairs. With gas prices sky high people are driving less and having less accidents. Whatever the case, it can come down to less business for the moment. What can a shop owner do to survive this down time? Perhaps one bright spot is all of this is the fact that with less jobs to do, you may have more time to improve marketing and sales and maybe squeeze more profits out of the jobs you do get. This could be an ideal time to take a closer look at previous estimates (and estimators) to see if revenue and profits were slipping through the cracks. Today we have computer software to go through an estimate to find missed opportunities for revenue, but not every shop uses it, or takes the time to use it even if it’s available. Periodically a wise manager will review
a few estimates to see how his or her estimators are doing. A summer slump can be a perfect time to get this done. When business is slow, less money is coming in. It’s also a good time to look for costs that can be cut without harming the bottom line. Since personnel pay is usually the largest expense at a shop, laying people off is often the first choice in cost cutting, but it may not be the wisest. Cutting back on advertising and marketing during a slow time is not a good idea, but this can be a good time to get more bang for your marketing buck. Today Yellow Page listings and ads are outrageously expensive—unless they’re really bringing in customers. One shop did an inventory of Yellow Page ad responses to see how many calls actually produced business. The largest percentage of calls was from vendors trying to sell the shop some service or product. Hardly any calls produced even an estimate. This is a good place to start cutting costs.
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Another area to examine while you have the time is closing ratios. How many estimates are resulting in work orders? Are your estimators capturing every possible job? I recall one shop I visited that often had a potential customer walk through some selected areas of the shop to look at highly precise repair operations like frame measurement and color matching. I was told that a little sales talk on the superiority of the shop’s expertise often convinced the customer that this was the best place to leave the car for repairs. This down time could also be a good time to get a couple of display areas highly polished for customer viewing. Reviewing prior marketing efforts may also produce some unexpected opportunities. One shop I visit has repaired police vehicles for years, but he says when the sergeant in charge of repairs changes, there is always a danger of that individual hav-
ing his own favorite repair facility. Losing that repair business could be very costly so he makes it a top priority to get to know a new sergeant immediately. A change in personnel at any key business source can represent either a danger of loss or an opportunity for gain. During this summer slump there may be time to call on some dealerships, commercial prospects or potential government agencies to get to know the person responsible for outsourcing vehicle repairs. It can be a good time to make change your ally. Another good use of extra time can be checking out your neighborhood for ways to get more visitors to your shop. Schools, churches, health clubs and gyms and other organizations where a substantial number of people come can provide an opportunity to host an event at your shop. One shop offered a teacher at a church See Summer Slump, Page 33
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 23
Continued from Page 22
Big Hill
cision itself was the key, not whether or not I actually rode up the “Big Hill.” I reminded myself that I needed to free my mind so I could concentrate on what was before me. I needed to eliminate the stress that was controlling my present to be able to keep moving so my strength could return. I needed to make the decision about what I was going to do with the “Big Hill,” beforehand—a simple decision—either ride up it or not. Once I decided to ride the hill, it was easier to focus on getting to the top when I actually arrived at the bottom. The stress of thinking about the hill took more physical strength than actually riding the hill did. In business we have many “Big Hills.” Some we will choose to ride up, others we will choose to go around, but it’s better make the decision to ride or not as soon as you can so you don’t waste energy thinking about what may happen or what could be. Learn to enjoy the ride, and those “Big Hills” will take care of themselves.
Boyd Gerber Group to Acquire 28 Locations of Cars Collision LLC, Total Now 164 in North America
Boyd Group Income Fund announced June 20 that it has entered into a definitive agreement to acquire the 28 locations of Cars Collision Center of Colorado, LLC and Cars Collision Center, LLC, in a deal valued at approximately $21 million U.S. Cars is a private company that operates 14 locations in Illinois, eight locations in northern Indiana, and six locations in Colorado. It generated sales of approximately US$65 million in the 12 months ended April 30, 2011. Subsequent to the acquisition, Boyd will have a total of 45 locations in the Chicago-area market, up from 23. This is the company’s second major acquisition in about year. Last summer, Boyd announced its acquisition of the 37 locations of True2Form Collision Repair Centers for $18 million U.S. One year ago, prior to the True2Form acquisition, Boyd had a total of 56 U.S. locations. Following the True2Form deal, this latest Cars acquisition and a number of individual deals since last summer, the company has more than doubled the size of its U.S. operations to 127 stores. The company has not acquired any additional locations in Canada. “We are very pleased with the planned acquisition of Cars, as we con-
tinue to execute on our stated strategy of growing our business,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “By
Boyd Group North American Coverage
our estimates, the acquisition will position Boyd as the largest multi-location collision operator in North America, not only in terms of number of locations, but also in terms of annual sales. After completing this transaction, Boyd will have a total of 164 collision repair centers across 13 U.S. states and four Canadian provinces. Bulbuck said, “We expect to see substantial benefits from the transac-
tion, including expanded critical mass and presence in one of our key markets, an expanded national footprint which translates into enhanced value to our U.S. insurance company clients, as well as additional synergies. We are confident that the similarities between the business models of Boyd and Cars, as well as each company’s vision for the future, will result in an excellent strategic fit. While we are continuing our growth strategy of adding eight to 13 new locations per year, this acquisition represents a unique and attractive opportunity to acquire another strategic multilocation repair business and achieve accelerated growth.” The transaction is expected to be completed by July 1, 2011, subject to certain closing conditions being fulfilled. Funding for the transaction will be through a combination of cash, U.S. bank debt, third-party financing, and a seller take-back note. Boyd said the company will not be issuing any new equity to fund the transaction.
• Exceptional Service • Full-time Experienced Wholesale Specialists • Ready to Serve You • Genuine OEM Tires Hours:
• Extensive Inventory • Free Delivery • Dedicated Wholesale Parts Staff • Genuine OEM Tires Hours:
Hours:
• Open Saturdays • Serving all of San Gabriel Valley for over 30 Years • 5 Delivery Trucks • Genuine OEM Tires Hours:
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
• Wide Delivery Area • Competitive Pricing • Ready to Serve You • Genuine OEM Tires
Parts Dept.:
Parts Dept.:
Parts Dept.:
Parts Dept.:
626-249-0032
800-245-8509
626-359-8291
800-320-9065
Fax: 626-932-5660
Fax: 626-932-5660
Fax: 626-932-5660
Fax: 626-932-5660
www.sierraauto.com
www.sierraauto.com
www.sierraauto.com
www.sierraauto.com
parts@sierracars.com
parts@sierracars.com
parts@sierracars.com
parts@sierracars.com
CHEVROLET 1450 South Shamrock Ave. Monrovia, California 91016
MAZDA 735 East Central Ave. Monrovia, California 91016
24 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
SUBARU 1450 South Shamrock Ave. Monrovia, California 91016
HONDA 1450 South Shamrock Ave. Monrovia, California 91016
Chevy Volts Selling at Inflated Prices, But GM Says Volt Will Be Cheaper
Several Chevrolet dealerships around the country are pricing this already expensive vehicle as much as $20,000 above the Suggested Retail Price, according to GreenTech. Some dealers are reportedly selling Volts as used vehicles so they can pocket the $7,500 tax credit. Gas prices have caused a number of new car buyers to seek to buy the Volt and other electrics and hybrids. Some dealers and Chevrolet reps claim that such practices are “exaggerated.” AutoNation has, even, asked its dealers not to charge a premium for the Volt. In some cases, however, GM has had to intervene and has encouraged dealers to take the long-term view or approach to this opportunity. Some say this is capitalism at its worst while others retort that the practice of marking up hot vehicles may be termed “un-American”—but hot vehicles have always been marked up for years. What is ironic and even hard to understand is that there are indications that potential buyers are actually not being turned off or even angry about such pricing practices—which just does not seem to ring true. This kind of conduct by Chevrolet dealers is really ironic as well as self-defeating particularly since the public generally still regards the dealer
body to be not always trustworthy, transparent, or timely with good guy sales tactics, according to GreenTech. Basically, these dealers are blowing a great opportunity to demonstrate to new car buyers, particularly, the kind of people who can afford to buy a Volt, that they are fair and above board in the sales process for a new Chevrolet. Actually, it is very annoying, frustrating, and even surprising that we keep seeing automotive retailers behave like this. This is price gouging and an illegal sales practice. These dealers are preying on people who want to be responsible citizens and to be green by buying a Volt. The even more confounding aspect of this price manipulation is that some dealers will seek to “devalue” the trade of the green vehicle buyer by suggesting that their three year or more old vehicle is a gas hog and therefore not worth even what Kelley Blue Book says it should be. General Motors said June 10 that dealers in all 50 states can take orders for the 2012 Chevy Volt, which will come in a model priced just below $40,000. The plug-in hybrid Volt is now available in six different models, rather than three, with the lowest listed at $39,995, or about $1,000 less than the 2011 price. The high-end model with
leather, backup camera, navigation system, and other features is $46,265. Prices include the destination fee but not other taxes and fees. Buyers can benefit from a federal tax credit of $7,500 for plug-in vehicles with batteries the size of the Chevy Volt's. GM is already working on bringing down the cost of the electric powertrain in the Volt, as the price is still higher than that of traditional hybrids. Significantly for GM, the Volt will now be on sale nationwide, rather than in just seven states and the District of Columbia. The company took a regional rollout approach in an effort to work out kinks in the selling and home charging station installation process. Since GM and Nissan, which makes the all-electric Leaf, started delivering their plug-in sedans about six months ago, auto industry watchers have been tracking the monthly sales totals, with both carmakers about even in total sales for the year to date, according to GreenCarReports.com. GM said it expects to sell 45,000 Volts to fleet and retail customers in 2012. The Volt refresh will include a handful of new features, including three years of OnStar navigation service, and the same eight-year/100,000 mile warranty for its battery.
CCAR Announces ‘GreenLink Shop’ Awards for TX Facility
An auto repair facility in Texas was recognized by the Coordinating Committee For Automotive Repair (CCAR) as one of the group's GreenLink Shops for the month of May on June 1. The GreenLink Shop status is an extension of CCAR’s CCAR-GreenLink Environmental Compliance Assistance Center and S/P2 Safety and Pollution Prevention E-learning Program—designed to promote consumer confidence in local automotive repair facilities’ environmental/safety awareness and stewardship. The new GreenLink Shop is; Sterling McCall Nissan Collision Center in Stafford, Texas. “CCAR is proud to recognize these newest members of the GreenLink Shop program and their commitment to best practices in environmental and safety processes,” said Daren Fristoe, CCAR president and chief operating officer. CCAR requires that repair facilities seeking the GreenLink Shop recognition must maintain high standards of excellence in 10 areas. For more information please visit www.ccar-greenlink.org.
ONE NE OF OF SOUTHERN OUTHERN CALIFORNIA ALIFORNIA’S LARGEST ARGEST COLLISION OLLISION PARTS ARTS INVENTORIES NVENTORIES
• 50,000 parts in stock and ready to ship • We do bulk buying so we can pass the savings on to you • 16 professional parts associates ready to help you u • 30 delivery trucks serving the San Fernando Valley and surrounding areas • We ship around the U.S. and the world • Online ordering through OEConnection — Call for details
FORD FOCUS SE ‘12 5
210
N 27
118
HOURS: M-F 7AM-6PM, SAT 8AM-5PM
101
WWW.GALPIN.COM
(866) 665-2365 Wholesale Hotline
ROSCOE BLVD.
We are authorized to sell Ford’s Recovered Original Equipment (ROE).
Call DIRECT
170
405
5
GALPIN WHOLESALE 7868 Orion Ave. • Van Nuys, CA 91406
(818) 778-2090 FAX www.autobodynews.com | JULY 2011 AUTOBODY NEWS 25
Service, Service, Diagnostic Di Diagnostic gnostic and an nd d Mechanical M e chanical ch aniccal al NEWS Mec echanical Mech ech ec hanical ca
www.autobodynews.com
School Uses Nanotechnology to Convert Exhaust Heat into Electricity Western Edition
July 2011
CALIFORNIA • NEVADA • ARIZONA
No one is happy about rising gas prices, and to make matters worse, up to 60 percent of each $4 gallon is wasted, lost as heat that pours out of the exhaust pipe. But what if some of that heat could be collected and converted back into electricity that can recharge the battery that powers the lights, wipers, power steering, or even the electric motor in a hybrid vehicle? The technology to do just that exists, but it’s still a work in progress. The solution lies in thermoelectric devices, and engineers at the A. James Clark School of Engineering, University of Maryland, are challenging previous assumptions about the behavior of the nanoscale materials used to build them. Create better materials, they say, and cars will make much better use of that expensive fossil fuel. But contrary to the common assumption in nanotechnology, “better” in this case may not always mean “smaller.” That realization may change the way engineers develop future thermoelectric devices. A material whose response to a change in temperature generates electric potential, or vice versa, exhibits what is known as the thermoelectric effect. Thermoelectric devices can generate electricity when heated by an external source, or quickly cool or
heat their environment when powered with electricity. So why doesn’t every car have a thermoelectric power generator? “The reason thermoelectric devices have so far been limited to niche markets is that their efficiency is still too low,” said graduate student Jane Cornett (Department of Materials Science and Engineering). “The goal of our work is to design thermoelectric materials that convert energy from one form to another more efficiently so we can promote the widespread use of products that recycle waste heat and effectively reduce our consumption of fossil fuels.” For example, cars manufactured or retrofitted with a thermoelectric device placed around the exhaust pipe can use waste heat to generate electricity, improving their overall miles per gallon, especially when a powerdraining system like the air conditioning is in use. If the device is too bulky and inefficient, however, it will consume more energy than it contributes. To tackle the problem, Cornett and her advisor, Professor Oded Rabin (Department of Materials Science and Engineering and Institute for Research in Electronics and Applied Physics), had to challenge some popular theories.
“Previous models told us that the use of nanomaterials at small dimensions would lead to an improvement in power generation efficiency,” said Cornett. “The models also predicted that the smaller the nanostructure, the more significant the improvement would be. In practice, people weren’t seeing the gains they thought they should when they designed thermoelectric devices with nanoscale components, which indicated to us that there might be an issue with the interpretation of the original models.” Cornett and Rabin have presented a revised thermoelectric performance model that confirms that smaller is not always better. Using advanced computer modeling to investigate the potential of thermoelectric nanowires only 100 to 1000 atoms thick (about 1000 times smaller than a human hair), they demonstrate that in the set of the tiniest nanowires, measuring 17 nanometers or less in radius, decreasing their radii does result in the increased thermoelectric performance previous models predict. In nanowires above 17 nanometers in radius, however, an improvement is seen as the radius increases. “The surprising behavior in the larger size range demonstrates that a different physical mechanism, which was overlooked in previous models,
is dominant,” said Cornett. “People were looking for solutions in the wrong places,” said Rabin. “We’ve created a better understanding of how to search for the best new materials.” Thermoelectric devices are currently used in a few consumer products, including refrigerators and CPU coolers in computers. They could eliminate the need for fluorocarbon refrigerants, giving rise to fluid- and compressor-free cooling systems that pose fewer health and environmental hazards. Cornett and Rabin’s research is supported in part by the Minta Martin Foundation and the ARCS Foundation. For More Information: See “Thermoelectric figure of merit calculations for semiconducting nanowires.” Jane E. Cornett and Oded Rabin. Applied Physics Letters 98(1), 182104 (2011) or visit http://apl.aip.org/resource/1/applab/v98/i18/p182104_s1. The Clark School of Engineering, situated on the rolling, 1,500-acre University of Maryland campus in College Park, Md., is one of the premier engineering schools in the US, with graduate and undergraduate education programs ranked in or near the Top 20. The Clark School garnered research awards of $171 million in the last year.
Toyota Motor Corp. will face the first test trial in February 2013 of lawsuits combined in federal court that claim a defect causes the company’s vehicles to speed up uncontrollably, a judge said according to Bloomberg News. U.S. District Judge James V. Selna in Santa Ana, California, said in a “tentative order” that the first bellwether trial would be of claims by the families of two people killed in a Nov. 5, 2010, crash in Utah. Paul Van
Alfen died when his 2008 Toyota Camry crashed into a wall. Passenger Charlene Lloyd died the next day. Toyota, the world’s largest automaker, recalled millions of U.S. vehicles starting in 2009, after claims of defects and incidents involving sudden unintended acceleration. The recalls set off hundreds of economic-loss suits and claims of injuries and deaths. “The conduct of a trial in the first quarter of 2013 will markedly ad-
vance these proceedings,” said Selna, who is overseeing most of the federal suits. A bellwether case is used by the court and lawyers for both sides to test evidence and liability theories before moving on to other trials or limiting future litigation. Selna picked the Van Alfen case from six submitted by lawyers for the company and plaintiffs. In February, the National Highway Traffic Safety Adminis-
tration said their probe of possible electronic defects found no causes for unintended acceleration other than sticking accelerator pedals and floor mats that jammed the pedals. “We are pleased that the initial bellwether will address plaintiffs’ central allegation of an unnamed, unproven defect in Toyota vehicles,” Celeste Migliore, a Toyota spokeswoman, said in a statement.
Toyota to Face First US Sudden-Acceleration Test Trial in 2013
26 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Gonzo’s Toolbox
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.
A Homemade Air Bag Light—Brilliant Stupidity with Gonzo Weaver
Sometimes I wonder if the things I find wrong with some cars are there for me to find out how ridiculous some people can be. I’ve got to question the thought process and not-so- brilliant ideas that some people have, just before total stupidity takes over. I gotta ask … “What were you thinking?” The other day I had a late 90’s GM in the shop. The owner had recently bought it from a small car lot, and had no idea of the history of the vehicle. It was one of those “great deals” that he couldn’t pass up. Why is it these great deals always have some sort of catch to them? Maybe it would be a good idea to have it checked out before you buy it. After looking at it, I might tell you to “pass it up.” Honestly, I’ll never understand why someone will buy a used car when they know nothing about it, or decide after they buy it to finally have it checked out … but they do.
This particular creation had some strange problems. It had a strange battery drain. At first glance all the instrument cluster warning lights, interior lights, and all the electrical functions seemed to be working correctly, but there was a drain strong enough to drain the battery in a day or so. Finding the solution was going to lead to an even bigger problem. Narrowing it down by watching the amp meter for the parasitic draw value, and pulling fuses till the numbers dropped back into factory specs was the next procedure. Of all things, it ended up back to a crossed up circuit between the air bag system and the charging system. I decided to check the air bag system for codes. This was interesting, it was offline. No communication with the crash box. Hmmm, I’m a little confused, because I know I saw the air bag light come on and go off when I
pulled it into the shop. Turning the key off, and then restarting the car didn’t help me much, because the air bag light was on and then off. But then again, maybe it did help. Like I said, the light came on, and then went off … Hey, wait a minute isn’t there supposed to be a few seconds before it goes off? Isn’t this how it verifies its systems are functioning properly? So, what’s going on here? As a technician I’m trying to follow the codes, the diagnostic charts, and the operating description of the system I’m working on. This particular problem wasn’t following any typical scenarios. Take into account this whole thing started off because of a battery drain … I’m really starting to scratch my head over this one. I had a lot of different ways to go with this one. I could try and follow the draw a little further, or I could chase the problem from the air bag
side of it. Maybe, it will all lead to the same problem. I think I’ll work on it from the air bag side of the problem. The air bag fuses were all good, and the light did come on in the dash. So, I decided to pull the air bag diagnostic module out and pin check the leads to see if that would go anywhere. My first check on any system is the positive signals and then the grounds. Why? Because a loss of ground can be seen as an open lead, and if the positive signals are there, you’ll actually find a voltage signal on the open ground. That’s what electricity wants to do: find ground, and take the shortest path back to the source of the voltage. In this case they were all there, but when I checked the leads to the instrument cluster the voltage was coming towards the crash box rather than to the cluster. What now? (Here See Airbag Light, Page 32
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 27
OEM PARTS
AT AFTERMARKET PRICES!!!
Call us now at 866-665-2365 or order on-line at FORDPARTS.COM /GALPIN 28 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
OEM PARTS
AT AFTERMARKET PRICES!!!
ROE. The perfect alternative to aftermarket parts. Recovered Original Equipment (ROE) are genuine Ford collision parts with cosmetic blemishes that make them unusable for newvehicle production or new service part use. ROE Collision Parts meet genuine Ford replacement collision part standards for fit, structural and dimensional integrity, and functionality.
• Reduced Repair Cycle Time. Simplify your ordering process and expedite parts delivery by dealing with a single, knowledgeable parts supplier. • Improved Insurer Relations. You can meet all quotas from insurers for non-OEM parts use with ROE Collision Parts and, as a bonus, help insurers reduce overall claims severity. • Improved Vehicle Owner Satisfaction. These parts are produced on OE tooling, so you will meet the expectations of your customers. ROE Collision Parts are identified in non-OEM part categories in all major electronic collision repair-estimating systems, as well as to col collision repairers using CollisionLink. 5
210 10
N 27
118 ROSCOE BLVD.
101
170 405
5
Call DIRECT
(866) 665-2365 Wholesale Hotline
GALPIN WHOLESALE 7868 Orion Ave. • Van Nuys, CA 91406
Call us now at 866-665-2365 or order on-line at FORDPARTS.COM /GALPIN www.autobodynews.com | JULY 2011 AUTOBODY NEWS 29
SUVs Now Safer Than Compact Cars in an Accident, IIHS Report Says Sport utility vehicles are now safer than cars of the same weight, thanks to anti-rollover technology, according to a recent study. The Insurance Institute for Highway Safety said in a report issued June 9 SUVs in the 2006-09 model years had a driver fatality rate half that of cars. “The rollover risk in SUVs used to outweigh their size/weight advantage, but that’s no longer the case,” thanks to electronic stability control, said Anne McCartt, the institute’s senior vice president for research, according to the Detroit News. “Pound for pound, SUVs have lower death rates.” In assessing risk, the study counts the number of years that each model has been on the road and multiplies that by the number of that model’s vehicles. SUV driver deaths totaled 28 per million registered vehicle years, compared to 52 for trucks and 56 for cars. Among all vehicles, minivans again had the lowest driver fatality rate: 25 per million registered vehicle years, according to the new report. The last time the institute conducted a similar study, in 2007, large minivans had 66 deaths per 1 million vehicle years, while very large ones had 39, the lowest overall fatality rates among mainstream vehicles. Researchers say minivans tend to have the lowest fatality rates in part because drivers are more likely to be carrying young children and are more careful. The relative risk of different types of vehicles has changed, as automakers have worked to make SUVs more stable and less prone to rollovers. When the insurance institute conducted its 2007 study, for 2002-05 models, car death rates were lower than SUVs in every weight class but one. In the latest study SUVs in all weight classes had a lower driver death rate. In 2007, the National Highway Traffic Safety Administration required all vehicles to be equipped with electronic stability control, or ESC, by the 2012 model year. By the 2008 model year, ESC already was standard on 65 percent of cars, 96 percent of SUVs and 11 percent of pickups. The technology helps avoid skidding, as well as maintain control when drivers swerve.
ESC senses when a driver may lose control and automatically applies brakes to individual wheels to help stabilize the vehicle and avoid a rollover. Motorists often have no idea ESC has kicked in to protect them. The Alliance of Automobile Manufacturers, the trade association that represents Detroit’s Big Three, Toyota Motor Corp. and eight other automakers, said the new study shows that ESC has become extremely valuable. “As automakers, safety and innovation are two of our most important values, and our actions back that up: Automakers were introducing ESC before the government rulemaking on it,” alliance spokesman Wade Newton said to the Detroit News. “ESC is considered so effective that NHTSA has previously estimated that the technology can potentially prevent 71 percent of passenger car rollovers and 84 percent of SUV rollovers.” NHTSA estimated the cost to the automotive industry of adding ESC will total $985 million, $111 per vehicle with antilock brakes and $479 for those without ABS. But the benefits far outweigh the costs, according to NHTSA. “Thanks to this technology, we anticipate the number of rollover fatalities to drop by thousands every single year,” NHTSA Administrator David Strickland said in a statement. Rollover crashes, he said, are the deadliest of all wrecks. When it adopted the ESC regulation in 2007, NHTSA predicted the technology could reduce rollovers by 84 percent, preventing between 5,300 and 9,600 deaths and as many as 238,000 injuries a year. Rollovers, which had exceeded 10,000 for years, fell to under 8,300 in 2009. The insurance institute study said ESC reduces the risk of a fatality in a single-vehicle crash by 49 percent and 20 percent in multiple-vehicle crashes. It also lowers the risk of a deadly crash by 33 percent overall, and cuts the risk of a fatal single-vehicle rollover by 73 percent. Federal rules require ESC systems to prevent oversteer and understeer. In January, NHTSA issued additional regulations intended to protect motorists in rollover wrecks. Those rules, to reduce the number of people partially or completely
30 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
ejected through side windows during rollover crashes, will begin phasing in during 2013. NHTSA issued new rules in April 2009 to toughen roof strength during rollovers. Rollovers account for less than 2 percent of all crashes, but 40 percent of all fatalities. The rules doubled the roof strength requirements for vehicles to 6,000 pounds. Heavier vehicles from 6,000 to 10,000 pounds, which have never been regulated, must now meet roof strength standards. The phase-in schedule, which begins in September, will be completed for all affected vehicles by the 2017 model year.
Least Deadly Vehicles (Driver deaths per million vehicles) • Audi A6 four-door 4WD (0) • Mercedes E-Class four-door 4WD (0) • Toyota Sienna (0) • Ford Edge 4WD (0) • Nissan Armada 4WD (0) • Land Rover Range Rover Sport (0)
• Land Rover LR3 (0) • Honda CR-V 4WD (7) • Jeep Grand Cherokee 4WD (11) • Acura MDX (11) • Mercedes E-Class four-door (12) • Lexus RX 400h (12) • Lexus GX 470 (13) • Mercedes M-Class (14) • Saab 9-3 four-door (16)
Most Deadly Vehicles (Driver deaths per million vehicles) • Nissan 350Z (143) • Nissan Titan crew cab 2WD (126) • Chevrolet Aveo (119) • Chevrolet Cobalt (117) • Nissan Titan extended cab 2WD (111) • Kia Spectra5 (102) • Chevrolet Malibu Classic (99) • Hyundai Tiburon (96) • Nissan Versa (96) • Chevrolet Colorado extended cab 2WD (93) • Nissan Titan crew cab 4WD (92) • Kia Rio (89) • Kia Spectra (87) • Mazda Miata MX-5 (83) • Subaru Legacy (83)
• Dedicated Wholesale Staff with Over 100 Years Experience • Large Inventory • Daily Local Deliveries
Parts 800-952-5307 Direct 916-405-4700 Fax 916-405-8045 Hours: Mon-Fri 7-7 • Sat 7-5
9640 W. Stockton Blvd. • Elk Grove, CA 95757
Precise fit and finish, easy installation and a limited warranty direct from KIA — all genuine advantages of genuine KIA
parts.Your local KIA retailer has all the parts you need.
Citrus Kia Ontario
(800) 583-7042 (909) 390-0948
(909) 390-0982 Fax
scunningham@citrusmotors.com www.citrusmotors.com M - Sat 7:00am - 6:00pm Free Local Delivery Ask for Ike, Jimbo, Chris, Juan, Sean, Jeff Se Habla Español
First Kia Simi Valley
1-888-531-4785 (805) 306-1085 Fax Free Local Delivery M-F 7:00am - 6:00pm Sat 8:00am - 5:00pm Se Habla Español Ask for David or Julio
Fullerton Kia Fullerton
(714) 871-6300 (714) 738-0665 Fax
NO. CALIFORNIA Dublin Kia Dublin
Wholesale Direct
(925) 828-8251
Momentum Kia Vallejo
(707) 638-1825
(925) 829-2941 Fax M-F 7:00am - 6:00pm Sat 8:00am - 4:30pm
(707) 554-2637 Fax M-F 8am - 5pm Sat 8am - 3pm bvahl@momentumautogroup.com
Elk Grove Kia
San Leandro Kia
Sacramento/Elk Grove
(888) 244-3404 (916) 753-1040
(916) 753-1045 Fax
www.elkgrovekia.com
San Leandro
SO. CALIFORNIA Car Pros Kia Carson
Toll Free (800) 553-0940
Kia of El Monte El Monte
(626) 450-0500
(626) 443-9800 Fax M-F 7:30am - 6pm Sat 7:30am - 3pm www.kiaofelmonte.com
Parts Direct
(310) 221-9101
(310) 816-9811 Parts Fax #1 Wholesale Dealer Serving Southern California
(510) 347-3010 (510) 347-3003
(510) 895-1027 Fax Free Local Deliveries Shipping Available
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 31
Continued from Page 27
Airbag Light
it’s helpful to remember: I love my job, I love my job, repeat as necessary.) I guess I better pull the cluster and check the wiring from there back to the crash box and see if that goes anywhere. After pulling the dash it didn’t take a rocket scientist to see what the problem was. On the back of the instrument cluster somebody had cut the circuit board line to the air bag light, and then added a soldered-on wire to the charge light. So when the charge light was on, so was the air bag light. Once the car started (provided the charging system is working correctly) the charge light would go out, and so would the air bag light. Huh??? You can imagine my “mechanical language” was not for the faint of heart when I found out what was going on. It seems some genius didn’t want to replace the air bag module, so they invented their own air bag warning light instead. Brilliant stupidity… I think that’s the best way to explain it. I can’t imagine
somebody went through all the trouble to deceive the buyer of this car for a safety issue such as air bags. It should be a criminal offense and it is in some states. (See adjacent article for new penalties in California.) After undoing the homemade airbag light, the draw was completely gone. Now the only thing to do was to replace the air bag module to bring it back up to working order. Leave it to some unscrupulous dork out there to try something like this. I’m not saying anybody would have caught the problem at first glance. It was a well thought out deception. If you were not intentionally looking for an air bag light delay, I don’t think you would have caught the problem. But, I still think it is a good idea to have any car checked out prior to buying it. Maybe, just maybe, you can spot problems like this before you own the problem.
Search:
Autobody News on Facebook
32 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Prevalent Airbag Fraud Prompts Increased Penalties Under New California Law Consumers must navigate a number of potential dangers when considering a used car. They have to make sure the mileage is accurate, determine if the engine is in reasonable condition, and ensure that the brakes and suspension are in working order, to name just a few. However, even the most conscientious buyer may not think about whether the airbags are in their original condition, especially if the buyer is purchasing a car with a salvage title (a car that had previously been in an accident). Because of this naivety, airbag fraud is becoming increasingly common. National Highway Transportation Administration (NHTSA) issued a report on fatal crashes in 2008 that revealed troubling information about used airbags. In 255 of 1,446 fatal accidents, airbags had not been replaced after a previous crash. In nearly 50 percent of all fatal crashes with non-deployed airbags, these safety devices were defective or simply missing. So while non-deployments are rare, fa-
talities are likely when airbags do not work as intended.
Airbag Fraud: Insurance Fraud and Refund Scams In the abstract, airbag fraud occurs when the original airbag is not replaced or calibrated to its previous condition. Airbags are expensive materials and the replacement process is a delicate exercise. Unscrupulous used car dealers more likely to shirk this process to save time and money in getting cars ready for resale. By reducing the amount of money put into a car, the potential profit increases. Repair shops also engage in this practice for the same reasons. They stand to make more money by purchasing airbag parts very cheaply over the Internet, yet they can charge a customer or insurance company full price for the parts and labor. As such, airbag fraud has two distinct components: insurance fraud, where the airbag cavity is stuffed with concealable materials such as rags,
foam or paper towels while the insurance company is billed for actual airbag parts; and refund scams, where a body shop actually orders a new airbag for a customer but never installs it. Instead, the shop bills the customer for the part and returns the airbag to the manufacturer. Unfortunately, there are no hard statistics detailing the prevalence of airbag fraud, but insurance officials are concerned about the warning signs driving this trend. Jim Quiggle, Director of Communications for the Coalition Against Insurance Fraud says, “Airbag fraud is a black hole for data,” and, “Nobody knows how widespread it is, but the warning signals are everywhere.” The coalition’s executive director, Dennis Jay, is concerned with online sites selling nonconforming airbag parts in violation of state law. He explains that there are enough instances for consumers buying used cars to be concerned, because there is a potential for a vehicle to not have a functioning airbag. California Passes Automotive Repair Act, Doubling Fraud Penalties
To address this growing concern, the California Senate recently passed the Automotive Repair Act (Senate Bill 869), which established the Bureau of Automotive Repair. Among the many regulations the Bureau will enforce, auto repair shops would now be required to return airbags to their original operating condition when replaced during collision repair. Under the new statute, a repair shop or dealer who prepares a written estimate for the replacement of a deployed airbag, and who fails to repair and fully restore it, is guilty of a misdemeanor that is punishable by a $5,000 fine, by one year imprisonment in a county jail, or by both that fine and imprisonment. A number of automakers, including Honda, Mitsubishi, Hyundai and Toyota, applauded the legislation. They found it clarifies repair shops’ responsibilities, reduces fraud, and promotes driver safety. Check the Vehicle History Even with the new law in place, drivers should take the following steps to make sure that airbag repairs are properly completed.
For used car buyers, checking a vehicle’s Carfax or Autochex history is an important step. This report will indicate whether a car has been in an accident, which would lead buyers to do a VIN number check on each of the car’s airbags. A technician could even check the airbags to see whether the same airbags are still in the vehicle. For owners having cars repaired, checking the airbag indicator is essential. When the car starts, an airbag indicator should appear instantly and then go out. A continuous flashing light may indicate an airbag system malfunction. If the light never turns on, the airbag may be missing. Consumers who believe they are victims of airbag fraud should contact an experienced attorney to learn more about their rights and options. Information in this article was provided by THE VENARDI LAW FIRM. Visit www.vefirm.com for more information.
www.autobodynews.com
Continued from Page 23
Summer Slump
school an opportunity to bring her class to the shop for an educational tour to see what collision repair is like. Many shops have a large open space that isn’t used on a Saturday or Sunday afternoon. Offering a space for a bake sale or group meeting can get local people familiar with the shop and its activities. Most people prefer to patronize a familiar business. Another way to benefit from checking out your neighborhood is noticing what signs are eye-catching. Many business owners are proud of their display efforts and would be willing to share information on what signs and displays have been most effective for bringing in new customers. Although these are reaching customers for a different kind of business, the odds are good that this information may open your eyes to a new way to reach local people. It’s unlikely you would ever try these outreach efforts when business is good, but taking advantage of this time to reach out may help you survive the “summer slump.”
ONE NE OF OF SOUTHERN OUTHERN CALIFORNIA ALIFORNIA’S LARGEST ARGEST COLLISION OLLISION PARTS ARTS INVENTORIES NVENTORIES
• 50,000 parts in stock and ready to ship • We do bulk buying so we can pass the savingss on to you • 16 professional parts associates ready to help you • 30 delivery trucks serving the San Fernando Valley and surrounding areas • We ship around the U.S. and the world • Online ordering through OEConnection — Call for details
MAZDA 3 ‘11
5
210
27
(866) 665-2365 Wholesale Hotline
ROSCOE BLVD.
101
170 405
OURS M-F77AM AM-6 -6PM PM, SAT 8AM HH OURS : :M-F AM-5 -5PM PM
Call DIRECT
N 118
WWW .GALPIN.COM .COM WWW .GALPIN
5
GALPIN WHOLESALE 7868 Orion Ave. • Van Nuys, CA 91406
(818)778-2090 778-2090 FFAX AX (818) www.autobodynews.com | JULY 2011 AUTOBODY NEWS 33
Parts Profiles
Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com
Apathy, the Real Opponent in the Wholesale Parts Business with Larry Williams
APATHY – absence of passion, emotion, or excitement. I hate to say this, but this word seems best to describe the attitude of many parts managers I have spoken to. It’s not their fault, just their response to their daily input of negative information. Every day they get another dose of pressure, criticism, and doom. They worry about the dealership’s future, loss of customers, rising costs and falling profits. All this on top of the daily stress of filling orders, creates the natural response, “please just let me survive.” They exist on a short term basis, hour by hour, day by day, and month by month. This is how it has been for over three years, since the start of the last economic crash. We have lost 15% of our dealerships. The weak have perished, and the strong have survived. Here is the good news… things seem to be getting better. According to the L.A. Times, we’ve had a 20% increase in auto sales so far this year! This is the start of a new growth cycle. Smart survivors are taking this opportunity to shed their fears and expand their operations. I say smart because this is the best time to get aggressive and go after new business. The survivors have less competition, and should see steadily increasing sales. We will always have a minimum level of business. Our customer’s lifestyle demands transportation. Our communities are designed with separate living and commercial areas, and walking between them is not an option. We must have our cars! Maintaining and repairing a modern automobile requires trained technicians and expensive equipment. Very little work can be done by the average owner. Money for maintenance is still short, but repairs are a necessity. That means steady work for all of us. Now is the time to be positive. Shake off that dull, negative attitude. Aggressive solicitation of new customers will pay off for those dealers that move now. Take some time and visit your best customers. Congratulate them for their tenacity and tell them you will be with them for the good times ahead. Partners who sur-
vive hard times always find their bonds stronger. Keep an eye out for customer opportunities that you may have overlooked. Be ready to serve the new customers that will be calling you. There is another major negative assumption to overcome. Several parts managers have told me of their loss of interest in the wholesale market. The main reason for this is the lack of profit. It seems that there is constant pressure to reduce costs, starting at the corporate level. I am talking about the insurance companies that cover most of today’s repair costs. In a never-ending search for investor earnings, quality, care, workmanship, and pride are considered to be unnecessary. The only thing that matters to these corporations is their bottom line. They constantly push the repair shop to reduce the cost of the repairs. The shops cannot reduce their labor cost any lower; employees are already at the poverty level. The only place to cut is the cost of materials. The solution for some shops is the use of cheaper parts. These shops adopt the practices of the corporations, and consider only the cost of materials. Save a dollar, no matter what method you use. We need to fight back! Quality in both parts and service needs to be worth more than a 5% discount. For example, sheet metal has been a center of concern for several years. Cheap replacement imported metal has found customers, at the cost of quality. Numerous organizations have come out to support the use of original parts only. We all agree on the value of quality in this area. How about the rest of the operation? How about quality of service? I have never advocated sacrificing service and quality for cost. I believe if you pay less, you get less. There is a minimum everyone must pay for quality service. The competition should be for better service, not cheaper prices. I believe that servicing the wholesale market is still a rewarding job. Our final goal, happy customers, is a worthy goal and customer satisfaction brings us our own happiness.
34 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Autobody News has always supported quality in our industry, promoting the best products, materials, and service, never “less for less.” In keeping with this philosophy, I would like to offer an opportunity for those dealers who believe in the quality of their service to speak out. I would like to promote those dealers who still believe in customer satisfaction. Strong, optimistic leaders deserve recognition and support. Any of you that believe as I do, and want to spread their message of quality service; contact me at ljoew2@gmail.com. I will include you in my column, and promote you as a truly distinctive dealership, a good partner in the auto body repair industry. Take an active, aggressive role now in your local community. Attend as many local business meetings of the auto industry as possible. Take a stand for quality service above all
else. Our customers deserve our best efforts, and our best efforts will bring us more customers. This is an opportunity for a “win-win” for all.
Advertise in our CLASSIFIED SECTION for $50 per column inch! Place an ad in our Autobody Marketplace section of Autobody News.
And get a FREE On-line Ad!
800-699-8251 kmangum@autobodynews.com
Auto Lender Ally, Formerly GMAC, Delays IPO Due to Market Conditions Ally Financial Inc. has decided to delay an initial public offering (IPO) because of weak market conditions, two people briefed on the matter said to the Detroit News on June 10. The mortgage and auto lender and bank holding company was expected to launch a road show ahead of an IPO planned before the July 4th holiday. The IPO could come in late July or early August, or be pushed until after the Labor Day holiday, when much of Wall Street returns from vacation, said the officials on June 9. They asked for anonymity because the information had not been made public.
The US Treasury Department plans to raise $5 billion as part of a $6 billion offering when Ally goes public. The Treasury Department owns a controlling 74 percent stake in Ally as part of the $17.2 billion bailout during the financial crisis. Ally filed the paperwork March 31 in order to launch an IPO. Ally declined to comment on June 9. The Treasury is expected to sell some shares. Other owners such as General Motors Co., which holds a 9.9 percent stake in Ally, and Cerberus Capital Management LP, which holds a 9 percent stake, do not plan to sell shares. Treasury has received about $4.9 billion in returns from Ally to date, in-
Our parts. Your peace of mind The most awarded BMW dealership in the United States is here to help you with all your Original BMW Parts.
cluding $2.2 billion in dividends and interest. The company reported a $1.1 billion profit in 2010. Citi, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley are all advising Ally on its initial public offering. With more than $172 billion in assets as of Dec. 31, 2010, Ally operates as a bank holding company. Ally also has operations in mortgage and commercial finance, and the company's subsidiary, Ally Bank, offers retail banking products through its online arm. Ally, which was known as GMAC Inc. until last year, was founded by GM
Crevier BMW
www.crevierbmw.com
(714) 835-2025
— 2008 winner of BMW’s “Center of Excellence”.
BMW Z4 ‘10
Parts Hours:
Mon - Fri: 7:00 am - 7:00 pm
Sat: 7:00 am - 6:00 pm
Experienced, Knowledgeable and Friendly Staff 5 Delivery Vehicles $3,000,000 Parts Inventory means great parts availability and quicker vehicle turn rate for you Serving All of Orange County & Beyond
Kevin: kmartin@crevierbmw.com Junior: jcesena@crevierbmw.com
Original BMW Parts
Sun: 10:00 am - 6:00 pm
CREVIER BMW
1500 Auto Mall Drive, Santa Ana, CA 92705 www.crevierbmw.com
(800) 945.1618 Wholesale Direct (714) 835.4359 Wholesale Direct Fax
more than 90 years ago as its in-house finance arm. It sold a 51 percent stake in the company in 2006 to Cerberus Capital Management LP in a $7.4 billion deal. Ally said it raised its percentage of new car lending to 9.9 percent in 2010, up from 6.1 percent, to jump from third highest to the leading auto lender. Bad market conditions may also delay other planned IPOs, including Troy-based Delphi.
Tire Pressure Monitoring Systems Don’t Mean Drivers Never Need to Manually Check Tire Pressure
Auto manufacturers and consumers have spent tens of millions of dollars on the new tire pressure monitoring systems that are required on all new vehicles, but Ford Motor Company now suggests that consumers should not rely on the monitors to make certain that their tires have the proper amount of air. Instead, it recommends the weekly use of a gauge to more accurately check tire pressure. Keeping tires at the recommended pressure can reduce the average amount of fuel used by 3 to 4 percent. “Many drivers will be wasting fuel—and money—if their tires are underinflated,” says David Rohweder, Ford’s tire and wheel expert. “Properly inflated tires play an essential role in enabling vehicles to achieve their best fuel economy.” The right amount of pressure in the tires also enhances safety. Virtually all new vehicles are equipped with tire pressure monitoring systems (TPMS) that alert the driver when a tire is significantly underinflated, but that doesn’t mean drivers no longer have to check the air pressure regularly. Even if underinflation has not reached the level to trigger illumination of the TPMS low-pressure warning light, drivers should check the pressure in their tires frequently. Ford recommends customers perform the check with an accurate (+/- 0.5 psi) digital tire-pressure gauge. Check tire pressure when the tires are cold, before they have been driven on. And always remember to check the air pressure in the spare tire when you check the other tires. Air temperature can have a great effect on tire pressure, just like when a child’s ball goes flat when left out in the garage in the winter. Temperature can change tire pressure by an average of one psi for every change of 10 degrees. Driving also affects tire pressure.
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 35
Inside Insurance
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
Telling the Tale of the “Neutral Information Provider” with The Insurance Insider
In the Middle Ages, civilians didn’t have computers, television, radio, Pong, or even ping-pong. So what did they do for entertainment? One tradition was story-telling. The great thing about telling such tales was that you were forced to use your imagination. Although it’s important to note that you weren’t expected to believe everything that was being said. Fairy tales often have a happy ending and tell us about a world where
anything is possible. The tale I’m about to tell you is about the “neutral information provider.” This tale begins in the 1980s, around the time of the first electronic estimating system. For decades prior to the advent of electronic estimating, shop and insurers slaved away preparing handwritten estimates. Along came a brilliant man named Maximillion. He believed that there was a faster and more accurate way to prepare an estimate. He thought he could equally help body shops and insurance companies through the use of technology. Because this new idea would benefit both parties, he thought he would be able to sell this new product to two different customers. In fact, he could charge the same amount to each. It was the beginning of the now over-used term “win-win.” All he had to do was find a way to take the data from printed estimating books and put it in an electronic format. In a matter of three weeks, he created a robust software application. He spent the next few months selling his product to insurers and repairers
alike. Everyone in the country adored him. He was a hero living the American dream. He was making far more money than he ever dreamed possible. Life was grand. Who would have imagined that putting a book into a computer could make so many people so happy? If we were in Medieval Times, our story would have ended there and the hero would ride off into the sunset with a beautiful maiden on the back of his horse. But because we’ve witnessed computers, television, radio, Pong and pingpong (and even Beer Pong, a newer non-technology-driven version of Pong fueled by alcohol), we have something else they didn’t have in the Middle Ages: “reality.” It’s difficult to use your imagination and dream big when you know it’s virtually impossible to have a happy ending with an information provider. Our story resumes with our superhero Maximillion looking to expand his very profitable business. The challenge is that he now has competition. As a result, he is losing customers. Max is faced with making his first big decision since deciding to go into business. Does he sell his product one at a time to 60,000 body shops spread all across this free and beautiful country, or does he sell it to a handful of insurance companies? I think we all know which route Max took—the path of least resistance, of course. The insurance companies purchased the estimating system and required shops to buy the program as a prerequisite to be on their direct repair programs. Maximillion’s profits soared and so did the insurance company’s leverage. Here the fairy tale ends and the nightmare begins for the shops. Maximillion is trying to serve two masters. Unfortunately, it’s not possible. Shops
36 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
and insurance companies have different interests and needs. The once-neutral information provider is being pulled in two different directions. I think everyone knows who prevailed. Maximillion could lose millions if he chooses to side with the shops. Right or wrong, he is heavily influenced by the insurance companies. Although he attempts to remain neutral, it’s nearly impossible in a world where cost drives most decisions. Now let’s use our imagination as to what happens next. Over the next 30 years, the strong influence of the insurance companies is evident in all three major estimating systems. We’ve witnessed and experienced the so-called enhancements to the systems, enhancements that were clearly designed for one purpose—to appease the demands and suggestions of insurance companies.
This isn’t a fairy tale. It’s the reality of what has transpired. Shops should be outraged. They should be sending a strong message back to the information providers and take action where appropriate. For the information providers, being neutral should not be a choice but a requirement. Shops and insurers alike pay a lot of money to the information providers. The estimating software should not be influenced by any one group or groups. These companies should provide information—not a service where the highest bidder decides what’s added or modified to the database or system.
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
Give your customers what they deserve... The Best. Genuine Mazda parts are specifically designed, engineered and tested for Mazda vehicles. Customers and repair professionals prefer the quality and satisfaction that only comes from genuine Mazda parts.
Mazda 3 ‘11
SO. CALIFORNIA
Galpin Mazda Van Nuys
818-778-2005 Fax 818-778-2090 www.galpin.com Order your Genuine Mazda Parts from one of these parts specialists in your area.
Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com
Hey Toby!
Pan American Steps Up to Host Firefighter Extrication Training with Toby Chess
Pan American is a family-owned and operated independent collision repair facility with four locations throughout the Southern San Francisco Bay Area. President and owner Luis Alonso re-
Pan American believes in giving back to the community, and as an extension of that model the repair facility enlisted my help to provide extrication training for the local Fire Department.
prepared to deal with these challenges by providing hands on training. We teach safety and stabilization, hybrid vehicle precautions, how to deal with late model ultra-high strength steel, as
cently accepted Farmers Insurance Shop of the Year honors. They have been in operation since 1981, specializing in all types of collision repair and insurance work. They are also a Certified Mercedes Benz and Audi Repair Facility.
Today’s vehicles are more complex than ever, and the fire departments are faced with difficult challenges when they respond to emergency calls involving trapped occupants resulting from a vehicle collision. Our goal is to help them be better
well as six different extrication techniques. I’m proud to be part of this effort and I applaud Pan American for putting this event together. Said Luis, “We tend to think of firemen as only responding to fires; however the reality is that much of
Surf with us for a Great Deal on Collision Parts!
Miles ahead with
$850,000 inventory... Ask for Tee or Bill 3 delivery trucks serving South Bay, L.A., Orange County — Irvine to Brea Parts@TimmonsLongBeach.com M-F 7-6, Sat 8-4 (No Delivery)
what they do is responding to vehicle accident scenes. Firemen often put themselves in harm’s way in order to save the members of our community and our business has made a commitment to the Fire Chief that we will continue to provide our assistance in whatever capacity necessary to help with education efforts.” “Pan American and Farmers Insurance have introduced the first of what will be a series of extrication training and exercises during the May 13th Award Presentation. Two truck companies from San Jose Fire department cut apart vehicles donated by Farmers, in a mock collision scenario. The event also featured demonstrations of airbag deployment which the repair facility hopes can help these brave and commendable community servants become better prepared for the tough challenges they face on a daily basis.”
Surf with us for a Great Deal on Collision Parts!
Miles ahead in
customer service...
Ask for Miguel or Dana 3 delivery trucks serving South Bay, L.A., Orange County — Irvine to Brea Parts@TimmonsLongBeach.com M-F 7-6, Sat 8-4 (No Delivery)
Forester ‘11 Passat CC ‘11
Toll Free
1-888-489-5001 Fax
562-426-3550
3940 Cherry Ave., Long Beach, CA 90807
Toll Free
1-888-489-5001 Fax
562-426-3550
3940 Cherry Ave., Long Beach, CA 90807 www.autobodynews.com | JULY 2011 AUTOBODY NEWS 37
Tesla, Limited Production Autos May Lose Hardship Exemption for Airbags Tesla Motors Inc. may lose an exemption that has allowed it to sell a $109,000 electric roadster with air bags that don’t meet U.S. safety standards, according to Automotive News. The National Highway Traffic Safety Administration may stop giving waivers to an 11-year-old regulation that cars sold in the US have so-called advanced air bags, it said yesterday in a Federal Register notice. The air bags have sensors that
adjust force to occupants’ heights and weights. Tesla, Lamborghini and other limited-production automakers have won exemptions over the past five years on financial-hardship grounds. “The people who are bringing these vehicles in and are buying them should be made aware” that they have air bags that fall short of US safety requirements, said Jeffrey Runge, a former NHTSA administrator who is
president of Biologue Inc., which consults on transportation safety. Tesla has sold about 1,700 Roadsters worldwide. Roadster production, for which the company is seeking another waiver, is scheduled to end this year, said Khobi Brooklyn, a spokeswoman for Palo Alto, Calif.-based Tesla. By mid-2012, the company plans to begin selling Model S sedans, which will comply with the air-bag rules, Brooklyn said.
SO. CALIFORNIA
Subaru of Glendale Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net
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
Timmons Subaru
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! Galpin Subaru
SO. CALIFORNIA
Van Nuys (818) 778-2005 (818) 778-2090 Fax www.galpin.com
Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts
38 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
Long Beach (888) 489-5001 (562) 426-3550 Fax Tue. 7-8; Mon., Wed.-Fri. 7-6; Sat. 8-4, Sat. No Delivery Parts@timmonslongbeach.com www.timmonssubaru.com
Marin Subaru
San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net
Group Lotus Plc, the British sports-car maker, said this week it’s ending production for North America of its Elise and Exige models due in part to the air bag requirement, according to Edmunds.com. Companies ranging from Ferrari SpA, controlled by Fiat SpA, to Wheego Electric Cars Inc., which makes two-seat electric LiFe cars, have also received waivers. See Airbag Exemptions, Page 41
NO. CALIFORNIA
Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com
ARIZONA
Anderson Subaru Lake Havasu City (928) 764-5177 (928) 764-2574 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 www.andersondeals.com www.andersondealssubaru.com
Power Subaru
Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4
Shop Strategies for Savings
Walter Danalevich, AAM, has been the owner of Santa Barbara Auto Refinishing since 1979. Contact him at: sbarbody@earthlink.net.
Business Financial Security Preventive Maintenance with Walter Danalevich
Earlier this year (Autobody News, February, 2011) I wrote a shop savings article (Credit Card Processing Fees—Dings, Dents, and Crashes at Your Bottom Line) for ABN readers warning about credit card host processing fees which could significantly ding their bottom lines. My February article pointed out that these fees can be very substantial for body shops. If you missed the article, you can read it along with my other columns in my column section www.autobodynews.com/columnists/danalevichwalter.html. Now I would like to re-emphasize the importance of taking extreme caution with authorizing Credit Card hosting agreements and specifically their cancellation fees. A body shop owner contacted me to share his story involving a nightmarish experience pertaining to a cancellation fee he got sucked into compliments of his prior Mer-
chant Credit Card processing Host. This body shop owner read my ABN article and phoned me to express his frustration during the past five months as a result of his shop cancelling a merchant credit card host service. His shop had recently signed a service agreement, based on the credit card host’s friendly telemarketing sales pitch: “we will give you the lowest credit card processing fee rates on Earth.” Here’s what happened. The shop’s bookkeeper was continuously aggravated by the credit card host’s customer service department. When she called with questions they were consistently tossed back and forth between service reps. None could provide adequate explanations of the reason for transaction fee deductions from their business checking account. Soon afterward, the owner and bookkeeper accepted an offer from
another Credit Card host, who also offered “the lowest processing fee rates on earth.” The new credit card host sweetened the deal by agreeing to pay the cancellation fee up to $400. Sounds good, right? The shop owner proceeded to send an e-mail to his existing credit card host giving written notice for cancellation of service. A couple of months later the bookkeeper performing account reconciliation noticed an unfamiliar automatic withdrawal on their business checking account and informed the shop manager. He assumed the fee was taken by the prior credit card host which he had cancelled months ago. The shop owner inquired with the Credit Card Host and was told they have not received a cancellation notice and were continuing to actively withdraw monthly minimum usage fees as per the user agreement. The shop owner had fortunately kept a hard copy of the cancellation email and read it to the credit card customer service rep. The credit card rep made it sound as if fault was with the body shop and not the credit card host, and wanted the shop to send a “signed letter” of cancellation of services. Shop manager complied and sent the same e-mail letter previously sent and attached his signature. About a month later the shop manager received a phone call from the fast talking credit card host representative indicating that a new cancellation fee of nearly $1,000 was due. The shop owner told him he was crazy (using some colorful language) and that he wasn’t responsible for their inadequate customer service. The credit card host rep acknowledged that customer service changes had taken place. The manager requested a breakdown of the proposed cancellation fee charges and was told he would receive them that very same day. No cancellation fee invoice was received that day. A couple of days later the shop received a copy of the initial service agreement, signed by the manager, which stated in tiny size 6 print that there was a $900 minimal cancellation fee if service was terminated before three years had elapsed. There was
also a cancellation fee of $250 disclosed in the terms and conditions manual. This was the fee the shop was planning on forwarding to the new credit card host for reimbursement. Also received was a cancellation form invoice for $1,235 which had absolutely no explanation attached. By now the shop owner was not feeling any love for the self-proclaimed “lowest credit card processing fee on Earth” company. He was worried that the credit card host had possession of his business checking account bank routing number and knowing the credit card host could easily insert a large “dent” into his business checking account balance at any time. The body shop owner had a meeting with his bank manager to discuss the best solution and some peace of mind. The bank manager said a stop payment could be placed that would prevent any future unauthorized withdrawals. However he cautioned that there are common ways the credit card host can easily get around this security tool. The bank manager recommended that the body shop owner permanently close his bank account and open a new account. The shop owner followed his bank manager’s advice and now sleeps without the worry of having automatic withdrawals made to his account without his authorization. This story is a cautionary tale for avoiding crashes to your bottom line and a reminder for us all to be careful who we allow access to our banking and other financial information. Oh yeah, watch out for the #6 or smaller size print before you sign anything. Ed—Anyone considering a new credit card processing provider should start with a review website comparing fees like that at credit-card-processingreview.toptenreviews.com and proceed with due diligence from there. Your mileage may vary.
Search:
Autobody News on Facebook
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 39
Continued from Front Page
Allstate
The survey analysis authors told Auto Insurance Report that the percentage of consumers who got a quote from another insurer was up 23 percent last year, and the percentage of those who actually changed to another insurer was up 56 percent. Only 48 percent of consumers have been with the same insurer for six or more years, down from 53 percent in 2008. The economy is certainly prompting some of this trend. Many people are looking to shave household costs, and may be willing to switch for far less in savings than it may have taken them to bother just a few years ago. But another reason for the shopping 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, insurance 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. Insureds are confused. Although motorists may be shopping for insurance, they don’t necessarily know what they are buying. More than onethird of U.S. drivers who have read at least part of their auto insurance policies have had trouble making sense of them, according to an online Harris Interactive poll commissioned by InsuranceQuotes.com. About 87 percent of the 2,079 insured drivers surveyed said they had read at least some portion of their policies, but 36 percent of those drivers said those policies were somewhat or very difficult to understand. Insurance rates outpace labor rates. Increases in auto shop rates are not quite keeping up with overall inflation—but pricing for auto insurance is rising faster. The national average for body and paint labor rates has risen only modestly year-over-year since 2006, according to figures from CCC Information Services. The average body
labor rate rose from $41.42 in 2006 to $44.67 in 2010, up an average of 2.1 percent per year (paint labor rates rose similarly). The national average hourly rate for paint materials rose slightly faster, from $22.26 in 2006 to $25.37 in 2010, an average increase of 3.5 percent per year. Overall, according to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for autobody work rose an average of 3.44 percent per year for that 5-year period. By comparison, the CPI for all products rose an average of 2.2 percent per year. The CPI for auto insurance rose an average of 2.6 percent per year, and the CPI for vehicle parts and equipment (other than tires) rose an average of 3.92 percent per year. But data for the first four months of 2011 tells a different story. The overall CPI seems to be rising faster than that for autobody work, and the CPI for auto insurance is staying even above that. State lawmakers consider insurance-related bills. As legislative sessions wrap-up for the year in many states, bills regulating insurers in ways that impact shops continue to be passed, considered or rejected. A bill approved by the Nevada Assembly to establish a program to help low-income drivers get low-cost auto insurance coverage died in that state’s legislature in late May because it failed to come up for a vote in the Senate within 110 days of introduction. North Carolina Insurance Commissioner Wayne Goodwin is urging motorists to oppose three bills in that state that would strip his office of its ability to cap auto insurance rates. “We hear the insurance companies calling it auto rate modernization,” Goodwin said. “Well, if making your rates skyrocket is modern, then you can just call me old-fashioned.” Wisconsin Gov. Scott Walker has signed a law cutting the minimum property damage coverage that drivers in that state must carry from $15,000 to $10,000. And in appointing insurance company executive Kevin Clinton as the new insurance commissioner of Michigan this spring, Gov. Rick Snyder made clear his priorities for Clinton. Snyder, a Republican, said Clinton must “make sure consumers are protected by making sure financial institutions are sound,” and will “lead our effort to eliminate burdensome
40 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
regulations that are preventing the (financial) industry from growing.” More federal oversight coming. The U.S. Department of the Treasury in May announced plans to create a Federal Advisory Committee on Insurance to provide guidance to the new Federal Insurance Office created as part of federal Wall Street reforms. Half of the committee’s members will be reserved for state and tribal insurance regulators; other members will be chosen from the various insurance industries, the agent and broker community, public advocates and academia. Allstate looks to change a downward trend. Allstate’s acquisition of Esurance (and Answer Financial, an insurance quote service) from White Mountains Insurance Group is widely viewed as a good move for the insurer, which has seen its marketshare drop the past two years. The buy should help Allstate, as the country’s secondlargest auto insurer, better compete with No. 3 GEICO and No. 4 Progressive which, like Esurance, sell directly online and which have been gaining marketshare ground as Allstate has faltered. GEICO’s 5 percent growth in total premiums last year
puts it on track to catch Allstate (if Allstate’s rate of decline in recent years continued) by 2013. Esurance, founded in 2005, sells policies in 30 states and has seen its total premiums grow on average by 20 percent a year for the past five years. Anti-texting effort continues. With Indiana recently becoming the 32nd state to approve insurer-supported bans on texting-while-driving (Pennsylvania lawmakers are considering a similar ban), State Farm offers a free widget for the Android phone that it hopes will help drivers avoid the urge to read or send a text while behind the wheel. The “On the Move” widget allows users to compose and reload customized messages—such as, “I can’t respond right now because I’m driving”—that are sent as automatic responses to incoming text messages. Collision repairers needn’t be overly considered with such efforts, however. Research by the Highway Loss Data Institute showed last year that accident rates aren’t reduced by laws prohibiting drivers from texting or from using hand-held cell phones.
SO. CALIFORNIA
Acura & Honda of the Desert
Galpin Honda
C a th e d ra l C i t y
818-778-2005
760-770-0828 Honda 760-321-2700 Acura
818-778-2090 Fax
760-328-2489 Shared Fax M-F 7-6 Honda/Acura Sat 7-5 Honda
Va n N u y s
www.galpin.com
Continued from Page 38
Airbag Exemption
“NHTSA tentatively concludes that the expense of advanced air bag technology is not now sufficient, in and of itself, to justify the grant of a petition for a hardship exemption from the advanced air bag requirements,” the agency said. Lamborghini’s last exemption expired in February and Ferrari’s ended in August 2009.
Wheego, which sold its first LiFe on April 22, has sold 24 and has about 300 ordered, said Les Seagraves, vice president for product development and legal counsel for the Atlanta-based company. The cars sell for a starting price of $33,000 and have standard driver’s and passenger-side air bags. The company expects the four-door plug-in model it’s developing to have advanced air bags, Seagraves said. “We had been working on this vehicle for about three years and in order to put the advanced air bags in
the car, it would have cost us another million and a half dollars and another 18 months of development,” Seagraves said. “We’re a tiny startup company. That would have pretty much put us out of business.” NHTSA began requiring advanced air bags in model-year 2004 cars and trucks sold in the US, allowing exceptions to keep using standard air bags for manufacturers producing fewer than 10,000 vehicles in a year. About 10 companies have received the waivers, said Karen Aldana, a spokes-
woman for the auto-safety regulator. Panoz Auto Development Co., based in Hoschton, Georgia, estimated in a 2006 filing with NHTSA that including advanced air bags in its custom sports cars would add about $6,129 to the cost of each vehicle. Lamborghini, a unit of Volkswagen AG, had a waiver for its Murcielago model. Lamborghini said in a 2009 filing with NHTSA that it expected to spend $15 million to comply with the air bag requirement for future models.
OUR PARTS IN THE T R AINE D HA N DS O F A P RO FE S S I O N AL
GM Parts
Finish Second to None.
Together i
CITY CHEVROLET
AU TO M OT I V E G R O U P San Fernando Valley
We are YOUR Source for GM Parts in Los Angeles! Extensive inventory — Delivery trucks are in your area Accountable, responsible & unconditionally dedicated to excellence
818-832-1660 Fax: 818-832-1692 nrparts@rydells.com Mon-Fri: 6:00 AM - 7:00 PM Saturday: 8:00 AM - 5:00 PM
t’s a Masterpiece!
San Diego • Large Inventory of Mechanical and Collision Parts • Fast Delivery/7 Delivery Trucks
Toll Free: Parts: Fax:
Serving Contra Costa, Alameda, San Joaquin Counties. An Authorized Saturn Wholesaler.
• Over 250 Years Combined Parts Experience
Wholesale Direct: 925-828-8251 Fax: 925-829-2941 Hours: Mon. - Fri. 7am - 6pm Sat. 8am - 4:30pm
800-927-2277 619-276-6900 619-276-2414
Hours: Mon-Fri: 7:30am - 6pm; Sat: 8am - 5pm WWW.CITY-CHEVROLET.COM
4200 John Monego Ct., Dublin, CA 94568 Chevrolet•Cadillac•GMC•Buick•Pontiac Oldsmobile•Saab•Saturn•Hummer
www.gmgoodwrench.com ©2010 GM Corp. All rights reserved www.autobodynews.com | JULY 2011 AUTOBODY NEWS 41
Continued from Page 1
SCRS Commentary
suggestion, and is intended simply to better inform individuals acting within their own judgment, making sound business decisions, without agreement to take concerted action. Please note that in these excerpts, “Exchange” refers to Farmers Insurance, and “Vendor” refers to the DRP repair facility:
5.2 DISPUTED AMOUNTS. If Exchange in good faith disputes any portion of a Vender invoice (“Disputed Amount”), Exchange will timely pay Vendor for the undisputed amounts of that invoice. Unless otherwise specified by federal or state laws, statutes, codes, rules, or regulations, within thirty (30) days of receipt of an invoice from Vendor on which a Disputed Amount appears, Exchange will (i) notify Vendor in writing of the specific items in dispute; and (ii) describe in detail Exchange’s reason for disputing each such item. Within thirty (30) days of Vendor’s receipt of such notice, the Parties agree to negotiate in good faith to reach settlement on any items that are the subject of such dispute. Vendor will not terminate this agreement on the basis of an alleged breach involving Exchanges failure to pay a Disputed Amount unless the Disputed Amount exceeds fifteen percent (15%) of the total amount payable under this Agreement or the sum of twenty five thousand dollars ($25,000), whichever amount is greater. (SCRS Note: DRP facilities would seemingly have agreed that the carrier can dispute their charges 30 days after they are invoiced, and the repair facility can’t terminate their agreement based on a breach of contract if they fail to pay unless it is a $25k short-pay.)
11.4 Vendor shall ensure that its General Liability, Workers Compensation, Garage Liability, Coverage for Garage Operations, and Physical Damage insurance policies allow Vendor to waive its rights of recovery prior to a loss and that the carriers furnishing such insurance policies shall be required to waive all rights of subrogation against Exchange, its officers, agents, employees, and other vendors and subcontractors. To the extent permitted by law, Vendor shall look solely to its insurers and not to Exchange’s insurers for loss or damage arising from Exchange work performed.
(SCRS Note: How many business carriers will allow their clients to waive their rights in this manner through this agreement? Will a collision repair business still have coverage if they sign this? How many of the shops have taken the time to forward this provision to their carriers to ask if they approve of their unilateral waiver of rights to subrogate against the carrier in question? What if a staff re-inspector injures themselves on the shop property due to their own negligence? It appears plain and simple; the liability falls on the shop for their repair approach and choices.)
12. MOST FAVORED CUSTOMER. During the term of this Agreement, if Vendor enters into a written contractual relationship with an insurance company or organization pursuant to which (a) Vendor provides services substantially similar to those provided to Exchange, and (b) Vendor provides pricing or other commercial terms that are more favorable than the pricing or commercial terms being provided to Exchange for work performed by Vendor, then Vendor shall offer to Exchange in writing, within thirty (30) days of Vendor entering into such agreement, the same or better pricing and/or commercial terms to Exchange. On a quarterly basis, Vendor shall provide a written certification executed by an officer of Vendor of Vendor’s compliance with this Most Favored Customer provision. (SCRS Note: “Most Favored” pricing language is currently being challenged in the healthcare industry. Is it interesting that the repair industry is constantly asked to be “competitive” and those same parties now want the industry to guarantee pricing given to another party, which by virtue is not competition.) 16. SUBCONTRACTING 16.1 (ii) Sublet repairs reflecting a retail price within the local market should be written without a mark-up. Sublet items reflecting a wholesale price may be considered for a mark-up not to exceed 25% of the sublet charge. All invoice mark-ups combined may not exceed $200 for the entire repair.
17. INSPECTION OF BOOKS AND RECORDS. Vendor agrees to maintain and preserve its books and records in accordance with generally accepted assounting procedures (“GAAP”) for a period of three (3) years or for a longer period if required by applicable
42 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
law or regulation. Any time prior to the termination of this Agreement and for a period of two (2) years thereafter, Exchange shall have the right to inspect and audit such portions of the Vendor’s books and records as is necessary for purposes of verifying amounts payable to Vendor or its authorized subcontractors and to verify compliance with the terms and conditions of this Agreement. Vendor agrees to make such books and records available for inspection by Exchange, its designee, or any insurance regulatory authority immediately upon request. (SCRS Note: Are business owners willing to open internal accounting books to a party outside of the business? There are concerns voiced regularly throughout the industry regarding data that is shared through electronic mechanisms. Now this program appears to require businesses to open up all their books, P&L statements and proprietary business information to another party.) 27. BACKGROUND CHECKS. 27.2 In no event will Vendor in the performance of this Agreement use the services of an individual who has been
convicted of a felony, including but not limited to any convictions involving dishonesty, a breach of trust or moral turpitude. (SCRS Note: Language in this section is similar to requirements in other programs, requiring complete background checks, and no shop can employ individuals who have ever been convicted of a felony; in some states that may mean a DUI. How many of businesses hire good, decent employees—from detailers, technicians to office staff - who may have made mistakes in the past, but have earned their employers trust and respect for the work they do today? Is it necessary to allow another party to interject who is employed in a privately run business? Is the requirement reciprocal to the representatives who will interface with repair facilities in the field?) There is lots of information in this agreement. SCRS’decision to release a link to this document is in no way to be construed as legal or ethical advice or opinion; however, it is our hope that the industry finds the information useful in making educated business decisions, and discusses the material responsibly. — SCRS Staff
THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS. C ALIFORNIA
Elk Grove Toyota ELK GROVE
916-405-4700 800-952-5307
916-405-8045 Fax
Mon. - Fri. 7am - 7pm; Sat. 8am - 5pm www.elkgrovetoyota.com
Domestic Auto Sales Making a Comeback in California, Nationwide More California buyers are making a shift to buying domestic cars again, giving domestic automakers the kind of boost they haven’t seen in years, according to reports made by the LA Times. California is the nation’s largest and trendiest car market but lately it has been one of the worst for American brands. Domestic automakers have been gaining ground lately mostly because they have come out with a new generation of small cars and compact SUVs that are competitive with the Hondas and Toyotas that have long dominated the market, said George Peterson, president of AutoPacific Inc., a Tustin, CA, automotive industry consulting firm. “Historically all of the domestics have had a real challenge selling in California,” Peterson said to the LA Times, “but that’s changing.” Ford and Chrysler have improved their sales in California in the last year . A year ago, Chevrolet was essentially a non-player when it came to small-car sales in the state. GM’s Cobalt subcompact accounted for a
barely measurable 1.1% of sales to California consumers—the crucial retail part of the business that factors out fleet buyers such as car rental companies and governmental agencies. Its replacement, the Cruze, has surged to 3.3% of the subcompact market in the first quarter of this year. While that’s still small compared with the dominance of the market leading Honda Civic, which accounts for 1 of every 5 compact car sales in the state, Chevrolet is capturing a growing slice of sales as more people learn about the Cruze, according to auto analysts. Electronics and so-called infotainment systems such as OnStar and Ford’s Sync are also giving domestic brands a sales advantage over their Japanese rivals, Peterson said. Chevrolet had 8.3% of retail auto sales in California during the first quarter of this year, according to the California New Car Dealers Assn. That’s up from 7.4% in the same period a year earlier and is its highest level since 2007, when sales were powered by large trucks and SUVs rather than the
small cars and crossovers the company sells more of now. “The growth in California is extremely important to us,” said Alan Batey, vice president of sales and service for Chevrolet. The Chevrolet Camaro is California’s top selling sporty compact, with about a third of the market, according to the dealers trade group. Its Equinox compact SUV has climbed to third in that segment’s ranking, trailing the Honda CR-V and Toyota RAV4. Chrysler, which has just started to launch a series of new vehicles since emerging from bankruptcy in 2009, is only beginning to gain traction in California. Including its Dodge and Jeep brands, Chrysler had 5.9% of the California market in the first quarter, unchanged from a year ago. Toyota is still the top player with 18.5% of the California retail market, but that’s been inching down. The share of the California market controlled by Japanese automakers fell almost a full percentage point to 49.1% in the first quarter compared with the
same period a year earlier, according to the auto dealers group. Helped by a trio of sedans, the Fiesta, Focus and Fusion, Ford is also making large gains. Its retail sales in California jumped 37% from January through April over the same four months last year, compared with a 25% gain nationally over the same period. “Clearly, this market is a litmus test for Ford’s ability to grow our business by connecting with small car customers,” Ken Czubay, the company’s vice president U.S. sales and marketing. To win in California, an automaker has to offer competitive fuel efficiency because of the way high gas prices in the region influence sales, Czubay said. Ford says it has learned that lesson and is applying it to even its large vehicles. Later this year, Ford is coming out with a turbocharged fourcylinder version of its Explorer SUV, which already sells well in California in a six-cylinder version. And Ford is seeing sales of its six-cylinder F-150 pickup truck outpace its V8 offering. See CA Domestic Sales, Page 49
Want every job to be a bang-up job? These dealers are Genuine VW Parts Wholesale Specialists.
So. California City Volkswagen SAN DIEGO
800-927-2277
FAX: 619-276-2414 M-F 7:30am - 6pm; Sat 8am - 5pm
WE WANT TO BE YOUR SOURCE FOR REAL VOLKSWAGEN PARTS. We have the Real Volkswagen Collision Parts that make your job easier and your customers happier. With your skill and our parts, every collision repair will be a bang-up job. And that will add up to more repeat business for both of us. Call your order in today.
www.cityvolkswagen.com
Drew VW
SAN DIEGO
888-839-0777
DIRECT: 619-668-7782 FAX: 619-460-4082 importorder@drewauto.com www.drewvolkswagen.com
Timmons Volkswagen LONG BEACH
1-888-489-5001
FAX: 562-426-3550 parts@timmonslongbeach.com
Volkswagen of Downtown LA LOS ANGELES
213-747-7246
FAX: 213-222-1272 Ask for Carlos or Erasmo
No. California Dirito Bros. Walnut Creek Volkswagen WALNUT C REEK
1-800-VOLKSWAGEN FAX: 925-934-0786 diritovw@aol.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 43
Autobody Tech
Jeremy Hayhurst is a former geochemist, university science publisher, and now Autobody News magazine owner who started working in a body shop in high school. He’s not a tech expert but he knows how to find one. Contact him with your questions, ideas and suggestions at publisher@autobodynews.com.
New Camera-Controlled Surface Laser Welding, and That’s Not All with Jeremy Hayhurst
sity laser beam is focused onto the very rapid movements of the full-penAt the Laser World of Photonics 2011 extends along the join, but it can only working surface with a diameter of etration hole in the melt require frame be seen on one side. From the other trade fair held in Munich, Germany, May 23–26, Fraunhofer-Gesellschaft several tenths of a millimeter. The ex- rates of several kilohertz for an accuside of the welded car door the join is rate analysis of the invisible. This is a perfect weld—the scientists presented some amazing contour. So how new applications for lasers and rekind every car manufacturer dreams could this be imlated automotive technologies. of, because it could be used anywhere proved? As any self-respecting tech geek on the car body. Expensive design knows, LASER stands for “light amwork to hide the seam, such as folding plification by stimulated emission of the sheet metal or covering with trim, How would a perfect radiation,” but only the geekiest know automotive weld be would no longer be necessary. The news is that research scienthat self-lighting lasers are really opdone? tists at the Fraunhofer Institute for tical oscillators, rather than ampliAs if controlled by an Physical Measurement Techniques fiers, and therefore the acronym invisible hand, the should have been LOSER, for “light welding head on the IPM in Freiburg, Germany, have aloscillation by stimulated emission of ready turned this car makers’ dream robot’s arm races radiation.” It’s too late to change now. along the sheet metal into reality. Amaradio Jr. Regardless,with lasersLee have long Controlled partial penetration parts. Where the laser since eclipsed the Buck Rogers image hits, sparks fly and welding is how experts refer to the process in which the laser does not that brought them into the general the metal glows red In the new surface welding process the laser produces a perfect seam. consciousness in the late fifties. In a hot. The process lasts burn right through all the sheets of Bottom left: Weld seam profile. The penetration depth is controlled metal, in contrast to full penetration former life, I edited a well-known just a few seconds. without damaging the bottom surface. (© Fraunhofer IPM) laser science textbook, so I have some The outer door panel welding, where a hole briefly forms in familiarity with the concepts, but I treme high temperatures cause the and the door frame are now welded the melt pool. Instead, the weld seam auto body metal to instantly melt. A together perfectly. A thin weld seam is controlled to penetrate the lower was taken with the following discussion from Fraunhofer-Gesellschaft in capillary filled with metal vapor develops, which may extend to the unGermany on how indispensible laser technology has become in automotive derside of the surface. If it does, a manufacturing. It’s about to get more feature known as a full-penetration Audi Genuine Parts so. hole is formed. This hole is closed What’s not so clear is how this again by the weld puddle as the laser beam, or production line, travels fornow proven but still pending technology, which has just caught the eye of ward. The full-penetration hole is an Nothing else measures up. the OEMs, will affect car designs and indicator of the strength of the weld by assuring that the whole cross-secrepairability for shops in the future. tion of the sheets is used. However, seam irregularities like spatters, craters, or underfill repeatedly occur in this complex and highly dynamic process. They lower the quality of the welds or, in the worst case, render them unusable. with Dan Espersen An important quality feature for the strength and quality of the weld seam is complete joint penetration. You have to use highly optimal procedures to avoid both insufficient and Order Audi Genuine Parts from these select Dealers excessively strong joint penetration Production line welding robots in action in (with underfill). So. California Sweden Conventional production monitoring techniques register the full-penAudi of Circle Audi etration hole with cameras by Existing Laser Welding Downtown LA Conventional laser-beam welding, acquiring images and evaluating them LONG BEACH which is being utilized to improve afterwards for quality assurance. LOS ANGELES 800-675-2472 with Mike Causey However, for real-time process conproduction efficiency using robotic 213-747-7248 562-597-2854 Fax welders, has evolved into an efficient trol you need to generate a feedback 213-222-1261 Fax Ask for Eddie or Nate production jointing method because it signal that can be processed signifiAsk for Carlos or Fausto combines a high bonding quality with cantly faster than has until now been high speed processing. A high inten- possible. The reason is because of the
I-CAR Tech
Amaradio Explains CRA
Consumer Callout
ALL OEM Information
The Right Cause
44 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
sheet without damaging the bottom surface. Up to now, however, it was not possible to precisely control this type of welding and produce a seam that reliably meets strength requirements. Surface welding, instead of penetration welding, allows a laser to produce a weld that is only visible on one side. But how do you control the laser power to prevent it burning a hole through the sheets of metal? The answer is a new camera system that analyzes thermal images in real time, controls the beam, and ensures a perfect weld. “As we do not weld through the sheet, basically we cannot see what we are doing,” says Andreas Blug, project manager at Fraunhofer IPM. Their solution uses a ground-breaking camera that generates temperature images, which enables the system to recognize how deep the laser has penetrated into the sheets. Where it burns into the metal, causing it to melt, the images show a hot region. If the bottom of the melt pool reaches the gap between the upper and lower sheets, the conduction of heat is interrupted and a cooler point can be seen. This is the full-penetration hole. From the relative frequency of this full pen-
etration hole the system calculates the penetration depth into the lower sheet. A software program then adapts the output of the laser to the specific requirements. “The process is closed loop controlled in real time,” Blug explains. An extremely rapid camera system is needed for this.” The system is based on cellular neural networks (CNN). A tiny processor is integrated in each pixel. They all work simultaneously and speed up the analysis of the individual images enormously—whereas, in conventional image processing systems, a few processors process the data consecutively. “In this way the system analyzes up to 14,000 images per second,” says Blug. This compares with the usual rate of only 1,000 to 2,000 images per second. Together with colleagues from Stuttgart University and Dresden University of Technology, the Fraunhofer IPM research scientists have now developed a prototype which perfectly controls the surface welding process, offering car makers a further great benefit in comparison with full penetration welding: zinc does not vaporize on the bottom side of the weld.
The corrosion problems encountered on galvanized car bodies are therefore a thing of the past. Laser Technology in New Applications Conserving energy is a top priority for auto manufacturers today and laser technology is helping that goal. In addition to welding, lasers are being used to process thin light-weight components made of fiber-composite materials, as well as to manufacture more efficient engines and more powerful batteries.
Lasers take the lead Cars rolling off assembly lines today are cleaner, quieter and more efficient than ever before. However, everstricter environmental regulations and steadily rising fuel costs are increasing the demand for cars that further reduce their impact on the environment. In the U.S. this emerging target is the 62 mpg fleet average fuel standard that is causing concern among politicians and automakers alike. Even present day customer demands are tough for manufacturers to meet: car bodies should be safe yet light-weight and engines durable yet
efficient. Year after year, new models must be developed and built that can claim to be better, more efficient, and more intelligently designed than the last. The race against time and competitors places high demands on manufacturers and their suppliers to innovate and laser technology is increasingly effective in meeting those goals. Resistant to wear and universally applicable, laser light is an ideal tool in the manufacture of vehicles. Lasers can be used to join, drill, structure, cut or shape any kind of material. Surfaces can be engineered for motors and drive trains that create less friction and use less fuel. Lasers are not only a decisive tool in getting faster, more efficient and economical production, but also in making better energy-saving vehicles. A weight-loss program in automotive manufacturing Extra vehicle weight costs energy. Vehicles have to be accelerated and decelerated every time they’re driven, over the entire lifespan of the vehicle. To reduce weight, manufacturers are increasingly turning to the use of
See these Hyundai dealers below for all your collision parts needs! SO. CALIFORNIA
Drew Hyundai SAN DIEGO
888-839-0777 619-668-7782 Direct 619-460-4082 Fax importorder@drewauto.com www.drewhyundai.com Hyundai Sonata 2011
NEVADA
IRVINE
Henderson Hyundai Superstore
800-428-7485 949-472-7430
SAN DIEGO
858-300-3331 Fax Mon-Fri 7am - 6pm Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com
L AS VE GAS - METRO AREA
949-586-5104 Fax 949-586-7093 Fax
702-565-9643
Mon-Fri 7am - 7pm Sat 8am - 5pm snielsen@tuttleclick.net www.tuttleclick.com
Mon-Fri 7am - 6pm Sat 7am - 4pm parts@hendersonhyundai.com www.hendersonhyundai.com
NO. CALIFORNIA
Lithia Hyundai
Kearny Mesa Hyundai
800-469-9731
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
Tuttle Click Hyundai
San Leandro Hyundai
702-564-7756 Fax
FRESNO
510-347-3010
800-462-2231 559-436-6041
510-895-1027 Fax
559-436-0743 Fax
SAN LEAND RO
Mon-Fri 7am - 6pm Sat 8am - 1pm etaylor@lithia.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 45
fiber-reinforced plastics, which are 30-50 percent lighter than the metals they are replacing. However, these new materials are difficult to process. Fiber-reinforced plastics are brittle, meaning conventional cutting and drilling tools are quickly worn out and the standard assembly techniques used for metal components are often not effective. “Lasers represent an ideal alternative here,” explains Dr. Arnold Gillner of the Fraunhofer Institute for Laser Technology ILT in Aachen, Germany. “Lasers can cut fiber-reinforced plastics without wear and can join them too. With the appropriate lasers, we can cut and ablate (remove material from the surface of an object) the components with minimal thermal side-effects. Lasers can also be used for welding light-weight components —a viable alternative to conventional bonding technology. We can even join fiber-reinforced plastics to metals with laser welding. The laser roughens the metal surface, while the plastic, briefly-heated, penetrates the pores of the metal and hardens. The results are very stable.” Weight reduction can also be achieved with high-strength metallic materials. These, however, are also difficult to process. “Joining combinations of various materials allows us to make optimal use of the individual materials’ specific properties. But this proves to be difficult in many cases,” explains Dr. Anja Techel, Deputy Director of the Fraunhofer Institute for Material and Beam Technology IWS in Dresden. Her team believes in lasers: “With our newly-developed integrated laser tools, we can now even weld together combinations of materials, free of fissures or cracks.” At Laser 2011, Fraunhofer scientists presented, for the first time, a new welding head capable not only of focusing with extreme precision but of moving back and forth across the seam with high frequency to mix the molten materials. When they harden, they create a stable bond. Lasers Replace Chemistry Lasers also save time and money in
tool design. The molds used in the production of plastic fixtures and steering wheels, for example, have to be structured to give the finished component a visually and tactilely appealing surface. Most car manufacturers order a design from their suppliers, whose surface typically has the appearance of leather. Until now, the negative pattern used to create the design has been etched out of the steel tools used in injection molding—a tedious and time-consuming process. “With lasers, the steel surface can not only be patterned more quickly, but also with greater scope for variety,” explains Kristian Arntz of the Fraunhofer Institute. “We can transfer any possible design directly from the CAD model to the tool surface: What will later become a groove in the plastic is preserved as a ridge, while the surrounding material is vaporized. The process is efficient, fully automatic, and highly adjustable.”
Saving Energy, Low Friction Motors Laser technology is also applied in engine optimization. Engineers strive to keep friction as low as possible in order to improve efficiency. “That is true not only for the electric engines currently being developed, but also for classic internal combustion engines and diesel motors, as well as transmissions and bearings,” says Arnold Gillner. Ceramic, high-performance coatings are especially desirable, because they are not only resistant to wear but also smooth, which generates less friction. Coated metal components have until now been prohibitively expensive, being produced in plasma chambers in which the ceramic was vaporized and applied to the surface of the components. Fraunhofer scientists have now developed a less expensive and faster method in which work pieces are coated with ceramic nanoparticles, then treated with a laser. This finishing process has already been applied to gear wheels and bearings. Lasers can also be used to make specific modifications to the properties of engine parts. “Friction between the cylinder wall and piston is responsible for a big part of a motor’s energy consumption. That is why we try to minimize it. This is especially important for
Give us your opinion on matters affecting the industry.
write us! publisher@autobodynews.com
46 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
engines featuring modern, automatic start-stop functions that are stressed by frequent ignition,” says Gillner. “To protect them, we ensure that the cylinder is always coated with a film of oil. Laser technology can help reduce friction with special structuring processes that improve oil adhesion.” Fraunhofer researchers aim to increase the engine’s life-span and reduce energy consumption in this way.
Improving Batteries for Electric Cars Lasers can also increase the efficiency and life-span of electric batteries. That is good news for manufacturers and prospective owners of electric cars, since batteries continue to be the most expensive component of the vehicles. The engineers and scientists at Fraunhofer are currently working on various solutions to make batteries more durable and less expensive. One approach is to increase the surface area of the electrodes with appropriate coating in order to increase their efficiency. Another approach involves analyzing and optimizing production processes. Manufacturers produce batteries using one anode and one cathode cell, which they link. In theory
that sounds simple, but in practice the fusing of copper anodes with aluminum cathodes creates brittle connections that break easily. That presents a problem in cars because of road vibration. With the help of lasers, researchers at the ILT have succeeded in forming durable connections between electrodes without creating the vulnerable brittle alloys. Researchers at the IWS in Dresden have developed an alternative solution in which a laser warms the surfaces and rollers press them together. “Using roll plating with lasers and inductive pre-heating, we were able to create very stable connections with high electrical conductivity, with only a minimal loss of power,” reports Anja Techel. “The finished batteries are very efficient. And since only small amounts of electrical energy are transformed into heat, these batteries do not require as much cooling.” The bulk of this article is sourced directly from Fraunhofer-Gesellschaft with additional edits. To learn more about Frauhofer, Europe’s largest application-oriented research organization, go to www.fraunhofer.de.
volvo Genuine parts Right Part. Right Price. Right Now.
Your Source for Wholesale Volvo Parts So.California
No.California
Galpin Volvo
Carlsen Volvo
VAN NUYS
PALO ALTO
818-778-2005 818-778-2090 Fax
650-493-3205 800-70-VOLVO
www.galpin.com
www.carlsenvolvo.com
Arizona
Sanderson Volvo of Phoenix GLENDALE
888-249-3673 Want to Contribute to this Southwest Edition? 623-842-8799 Fax
kkelly@sandersonvolvo.com
write us!
Trust yourpublisher@autobodynews.com order to the collision parts specialists at these fine Dealers
Two Very Different Pennsylvania Collision Associations Serving the Keystone State By David M. Brown Special to Autobody News
Two associations are serving the collision-repair industry in Pennsylvania. They are The Alliance of Automotive Service Providers of Pennsylvania, (AASP-PA) based in Harrisburg, and, in Philadelphia, the Pennsylvania Collision Trade Guild (PCTG). The PCTG, led by Executive Director Ross DiBono, says it represents approximately 700 automotive-industry businesses, including collision shops, in its mission to achieve proper compliance and enforcement of legislation such as The Pennsylvania Motor Vehicle Physical Damage Appraiser Act and The Pennsylvania Unfair Insurance Practices Act, as well as other consumer-protection laws. As part of its educating mission, the Guild publicizes consumers’ rights to choose collision repair facilities. “The decision of where the vehicle is to be repaired is the vehicle owner’s, not an insurance com-
pany’s,” the organization stresses on its web site. In addition, “It is the Guild’s purpose to bring accountability to the process of consumer claim handling and settlements in Pennsylvania.” An affiliate of the national association, Minneapolis, Minn., based AASP, the 1,300-member AASP-PA comprises three divisions: Mechanical, Collision, and Towing. “Any firm that repairs cars is welcome as a member,” says its executive director, Jerry Schantz, who has been with the association for 21 years. He notes that AASP-PA is also an SCRS member. The group began in 1955 as the Pennsylvania chapter of the Independent Garage Owners of America. Schantz says the group supported education, technical and management programs for its members; bonding of shops; mechanics’ registration; safety inspection and mechanic’s lien laws; group advertising and insurance; and liaisons with government and industry groups. In 1972, the association, having
merged with the Pennsylvania Auto Body Association, became the Automotive Service Councils of Pennsylvania and, in 1986, it became the Automotive Service Association of PA. This is today’s AASP-PA. The organization provides a variety of services to its members, including health insurance programs and workers compensation insurance discounts and property and casualty insurance. In addition, the group lobbies at the federal level and in Harrisburg, where the group’s governing body meets four times a year. A full-time lobbyist, John V. Kulik, has represented the group for 25 years on such issues as safety and emissions inspections, environmental regulations, labor laws and motor-fuel marketing. Among the battles fought and won, notes Schantz: guarding owners against artificial fee caps for emissions tests and ensuring that safety and emissions inspections remained annually required, rather than the proposed biennial program. Members strongly endorse these benefits. “Our company sees many finan-
cial and economic benefits from association programs,” says Chet Elia, owner of Elia Auto Body Shop in Reading, PA. These include rental uniform discounts, garage liability insurance, office forms and many training seminars and programs. One of these programs is Tech Train—an annual event with 2-1/2 days of classroom training, said Elia, whose family has been an AASP-PA member for more than 30 years. In 1960, his dad, Ralph, founded the company, which has been at the current location since 1965. He and his brother Francis oversee day-to-day operations. “The technical and business training and the workers comp program are two of the major benefits that we use,” says Ken Lenhart, owner of Lenhart’s Service Center in North Huntingdon. He joined AASP-PA in about 1996. “I had recently bought the business from my father and wanted to learn more about the industry than just repairing automobiles.” Friendship and camaraderie are See PA Associations, Page 51
Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. Use of genuine OEM Wholesale Parts is a shift in the right direction toward trouble-free repairs and quicker turnaround. The following dealers proudly stock genuine parts for your Nissan or Infiniti repairs. Call your local distributor today! 2011 Juke S. CALIFORNIA
CORONA NISSAN CORONA
800-553-7438 (951) 549-6564 Fax Servicing L.A., Orange, Riverside & San Bernardino counties
DOWNEY NISSAN DOWNEY
888-444-1355 (562) 334-1195 Fax Billy Smith-Parts Manager M-F 7-6, Sat. 7-5
www.downeynissan.com
Shift into Genuine Nissan and Infiniti OEM Parts
INFINITI OF BAKERSFIELD
BAKERSFIELD
661-617-2020 (661) 617-2039 Fax M-F 8-5
www.infinitiofbakersfield.com
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 Same Day Delivery Throughout All San Diego Largest Inventory in San Diego
NISSAN OF BAKERSFIELD
BAKERSFIELD
888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5
www.nissanofbakersfield.com
N. CALIFORNIA
DIRITO BROTHERS NISSAN WALNUT CREEK
800-865-5792 (925) 934-8459 & (925) 934-8221 Fax
LITHIA NISSAN FRESNO
800-870-7779
559-436-6040 Parts Direct 559-438-0183 Fax M-F 7-6, Sat. 8-1
Etaylor@lithia.com www.lithia.com
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 47
Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who works in a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
NY’s Cross Island Collision, Where Training is a Family Tradition with Chasidy Rae Sisk
Cross Island Collision, established in 1976 in Floral Park, New York, is a family-run business centrally located at the border between Queens and Nassau, making it convenient for customers to come and go with public transportation.
But Haggerty knows that’s the wrong attitude. What if you don’t train them, and they stay? The shop employs fourteen individuals whose average tenure is between ten and twenty years. Cross Island Collision is I-Car Gold certified as well as ASE certified. Employees receive additional training in SP2, a hazardous waste management program. Employees regularly attend I-CAR courses as well as those offered by companies like Car-OLiner, and seek input from other company At Cross Island, a clean and tidy shop is a prerequisite for trainers in order to be productivity and successful DRPs. aware of the most current George Haggerty, the father of repair methods. Cross Island Collicurrent owner Brian Haggerty, sion utilizes two Car-O-Liner unifounded Cross Island Collision body benches, a Down-Draft booth, which has now been in the same lo- MIG welders and BASF waterborne cation for thirty-five years. George paints. Haggerty owned several gas staThe shop employs two appraisers tions before he decided to go into licensed with the NYS Department of the auto body business, and he Motor Vehicles. The two full-time apopened his shop with only three em- praisers who work at Cross Island ployees. Collision use the Pathways estimating What is most striking about system.. Each of these appraisers must Cross Island Collision is the longevity also pass a test given by the NYS Deof the employees, which they credit to partment of Insurance to show that
The crew at Cross Island Collision averages significantly better than ten years with the company, which management credits to training and respect given.
being treated like family. The employee tenure ranges between ten and twenty years. In addition to a respectful attitude to his workers, Haggerty believes strongly in the rententive power of training. Some shop owners seem to feel that there’s a danger in training people too well, thinking that’s leverage for the employee to seek another job. What if they leave?
they have the necessary skills to appraise damaged vehicles by testing their knowledge of the cars as well as their understanding of applicable insurance laws. Due to the experience of the personnel, as well as insistence on quality parts, the shop stands firmly behind its lifetime guarantee on all of the work that they perform. The shop is 12,000 square feet with
48 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
According to Brian Haggerty, his an additional 5000 square feet of storage. shop stands out because they treat Cross Island Collision processes their customers and employees like insurance claims as per the industry family, they provide exceptional cusstandard and participates in direct repair programs with Allstate and MetLife. They also participate in GEICO’s program Auto Repair Express (ARX). Additionally, the shop supports an on-site Enterprise Rent-a-Car location. They generally repair between eighty and one hundred cars each The Jamaica Ave storefront with prominent signage has month. helped Cross Island stay healthy for 35 years. As part of their efforts to aid their community, Cross Is- tomer service, and they offer pick-up land Collision participates in the and delivery services. ‘Horseability’ program, designed to introduce horseback riding to autistic Cross Island Collision, Inc. children as a means of therapy. The 22612 Jamaica Avenue Floral Park, NY 11001 shop supports this program by raising 516-354-7772 awareness and assisting with fundraiswww.crossislandcollision.com ing efforts.
Inspector Gadget—Making a Custom Light Inspection Tunnel to Find Paint Defects by Janet Cheney
What happens when two brainiacs spend time together? At Autocraft Bodywerks in Austin, Texas it happens to be a Light Inspection Tunnel, used to find defects in the painting process and perfect the standard of their work in this high end collision repair facility. Owner John Borek and his IT guy, Dan McLaughlin, of Next Technologies, designed and built this Light Inspection Tunnel. The Light Inspection Tunnel came about through John Borek’s continual quest for improvement in his business. He believes that if OEM’s are manufacturing automobiles, and collision repairers are in the business of remanufacturing automobiles then certain technology should apply. Borek realized it was becoming more difficult to find imperfections in refinish. He also recognized the challenges for paint buffers to reach the lower half of refinished panels to properly cut and polish cars. He thought through the process; how do the manufacturers build, refinish and examine the cars? A Light Inspection Tunnel, similar to the OEM’s would work well in Continued from Page 43
CA Domestic Sales
Ford’s share of the California market grew to 11.6% in the first quarter, compared with 11.3% in the same period a year earlier, the dealers group said. Ford says that’s the highest level since 2002. The Dearborn automaker narrowly trailed second place Honda in the first quarter and could jump ahead now, because of the quake-related production and supply problems hampering sales of some Japanese-branded autos. This is good news to auto dealers such as Ron Davis, owner of Santa Monica Ford, who said sales last month were 67% above May 2010. “We are drawing from a bigger base of customers than we used to, especially younger people, who historically in Southern California have tended to be import buyers,” he said. Peterson said he believes the California market is undergoing a generational shift in which domestic automakers are having success selling competitive passenger cars and
this high end collision repair center, helping deliver customer perfection. The information Borek was looking for was not available from the manufacturers, (tunnel lighting technology is not revealed to the public),
The Light Inspection Tunnel designed by John Borek, Autocraft Bodywerks in Austin, Texas
so he developed a plan. He went to iTunes and downloaded all National Geographic Channel’s ‘Ultimate Factories’ and studied the auto manufacturer segments. He joined SAE, the Society of Automotive Engineers, and extensively researched and found sevcrossovers rather than relying on the large trucks and SUVs of previous sales upswings. “Each time they bring out a new generation car they only get stronger,” he said. Nationwide domestic automakers have not only seen improvement over the past year, but have been able to get the upper hand sales-wise on some of the top import-brand carmakers. According to auto sales released for the month of May by Autoblog, the Chrysler Group, which consists of Chrysler, Dodge and Jeep vehicles, posted a 10-percent sales gain for the month when compared to the same period a year ago, led by strong sales of its Jeep brand. Chrysler’s strong sales, combined with an extremely poor showing from Toyota, due to the impact from disasters in Japan earlier this year, allowed the Pentastar brand to slip into the number three sales spot behind General Motors and Ford. Chrysler took a positive turn for improvement in Consumer Reports testing, after years of not making the See CA Domestic Sales, Page 53
eral articles on automotive paint defects and paint inspection lighting. Information from various sources were gleaned to perfect the project. Borek found many articles on the subject, one written by Charles Lloyd, “An Objective Measure of Severity for Small Topographical Defects in Automotive Paint ,” who worked with Ford Motor Company. He found Ford has done extensive research on paint inspection lighting and has implemented by managing and measuring through baseline tests. After a careful and long discovery process, The Light Inspection Tunnel at Autocraft Bodywerks started to come together, taking over a year to design and build. Everything was custom designed and built to order. Nova Verta USA built the frame of the inspection tunnel. LDPI Lighting Solutions designed and built the lights, which include mirrors in the lights, delivering the technology for defect free refinish. The Tunnel is controlled by a computerized low voltage touchscreen panel designed by Next Electronics. It also has a 3 foot lift built into the floor to bring the cars to a bet-
ter position for inspection, buffing and polishing. The finished product is working well in this shop and is also a handsome piece of engineering and does what it was designed to do – deliver the best product to Autocraft Bodywerks customers. Autocraft Bodywerks is a well established Austin, Texas collision repair center. They specialize in Lexus and Honda, however, work on all models. The quality of repair and customer service at John Borek’s shop is First Class and the distinctive offering of the Light Inspection Tunnel is a tool used to deliver the best repair to his valued customers. The Light Inspection Tunnel is just one of John Borek’s innovative creations. If you drive by his house during the Halloween season you will see a life size flying saucer that looks like it ‘just landed’ and Klatu from ‘The Day The Earth Stood Still’ will be stepping out to join the Trick or Treaters. Borek, who has been in the business since high school in 1984, is an innovator and ongoing student of collision repair, “Everyday I learn something, when you think you know it all is when you need to get out.”
Continued from Front Page
directions and information such as vehicle diagnostics.
Auto Media
Columbia and Guam have passed antitexting laws. Eight of those states have also banned handheld-phone use while driving. The Transportation Department has began developing guidelines for in-vehicle systems and aims to publish them this fall, Strickland said. “I’m not going to deny the fact that people want these things,” Strickland said. “They do. Especially the generation behind us. They’re used to being connected 24 hours a day.” The agency is looking for ways to “impart to these future drivers that it’s OK to not be connected when you’re operating a car,” he said. GM’s OnStar, which has more than 6 million subscribers, has been testing applications that would let users make audio updates to their Facebook pages and have messages from the social-media site read to them while driving. The system already provides crash-notification services as well as
Ford Sync Ford has been selling Sync, based on Microsoft technology, since the 2008 model year. Ford added features such as touch-command controls and voiceactivated climate control last year and plans to add social networking, Web browsing and thumb controls similar to those on Apple Inc.’s iPod to 80 percent of its models by 2015. BMW AG and Daimler AG also have added Internet and smartphone access this year to vehicles such as BMW’s 5-series sedan and Daimler’s Mercedes-Benz SLK roadster. However, BMW has also launched a nationwide ad campaign comprised of TV, print, online and radio ads and a strong in-dealership message. “A car is not a [social networking] device—a car is a car,” Strickland said. “We will not take a backseat while new telematics and infotainment systems are introduced. There is too much potential for distraction of drivers.”
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 49
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Body Shops and Yelp: It’s a Love-Hate Relationship with Ed Attanasio
The other day I overheard a woman talking on her cell phone. I couldn’t help it. She was upset and yelling. “Try me, buddy,” she screamed into the phone. “I will Yelp you right out of business!” Wow, I thought. ‘Yelp’ is now a verb (like ‘Google’), and obviously a part of some people’s daily language. If you don’t know about Yelp, it’s a nationwide review site where people post comments about their experiences with particular businesses. It promotes itself with the tagline: Real People. Real Reviews. It’s easy to find at Yelp.com. For many companies, including body shops, Yelp can boost a business with great reviews or damage their bottom lines with snarky comments and low ratings from unhappy customers. The problem is that those ‘unhappy customers’ might really be jealous competitors, terminated former employees, or a disgruntled ex-spouse or two.
San Francisco Attorney Martin Zurada is putting together a suit against Yelp on behalf of G&C Autobody, contending that the website is manipulating customer reviews to generate revenue for the startup
Yelp is currently getting unfavorable reviews from a lot of body shops throughout the country due to their policies on editing the reviews that are posted. Some shops are suing the San Francisco startup or considering doing so. They allege that the website manipulates customer reviews while the company claims that their system is done by computers, not people with an agenda, such as Yelp advertising salespeople, for example. Martin Zurada, a San Francisco attorney who has represented several
collision repair companies in different capacities over the years, is currently in the process of putting together a civil suit on behalf of Gene Crozat, owner of G&C Auto Body, with seven locations in Northern California. Zurada has been watching the Yelp situation for quite some time and he believes the website is manipulating its review system to benefit itself and generate increased revenues as a result. “As a business owner, the Internet has a lot of power, obviously, because people are Googling, Yahooing and Yelping all the time and looking at your business online,” Zurada said. “We know that people are going to read the reviews, but the business owners are rarely given an opportunity to respond to any of the reviews or comments being posted, or at least test these claims online.” Zurada questions the accountability of a site that allows anyone to post reviews without offering a chance to question their reasons. “The motives of these customers are never discussed in these reviews. For example, you might have a disgruntled vendor who is upset with you because you didn’t pay them on time, and so now they’re writing bad reviews on Yelp. An angry customer will write a negative review and it could potentially be there forever. You can’t respond to the validity of these claims, so the only way a business owner can get satisfaction is via the legal route. But, it’s a long and expensive process to take them to court and collecting is even more difficult.” Suing Yelp successfully is a tricky proposition for many reasons, Zurada explained. “Some businesses have tried to sue them, but the problem is that the content provider is merely posting what someone else is saying. They have a certain degree of immunity based on basic Internet laws, so Yelp is not directly liable for items posted on their website. If everything online was contested, of course, there would be no Internet, so they have to be protected to a certain degree. If they’re posting someone else’s claims, we have no issue with that. But, with Yelp passively accept-
50 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
ing, organizing, and indexing these opinions from the community, what they’re doing is essentially manipulating content in such a way to make
proached and what was either successful or not in pursuing Yelp. “Of course, Yelp has gotten very good at defending these cases, so it’s not an easy task. How do you prove damages? Yelp defends itself by saying, hey, we don’t know how these reviews actually affected your business, because you can’t prove who stayed away based on bad reviews or not. Potential customers might not choose your shop, because they don’t like the photos of your faCAA Santa Clara Chapter President Shawn Saidi and his wife Lisa have very mixed feelings. They’ve encountered some cility or any of a hundred questionable practices by Yelp, yet they realize they receive a other reasons. It’s a lawfair amount of new business from the website suit of some definite commoney. At that point, they’re no plexity, but Yelp is not immune to longer a passive content provider. being sued and if they are manipulatNow they’re actively disparaging your ing this data to make profit, they’re libusiness. Many companies, including able for it and body shops need to be body shops, have encountered a situaremunerated for their damaged revtion where Yelp will call them or visit enues.” their business and tell them if you sign Recently, a group of 66 business up, we will help you. It just seems like owners filed a lawsuit against Yelp, albusinesses who don’t sign up with leging that the website has been runthem have more bad reviews appearning an “extortion scheme” and has ing more often while positive reviews “unscrupulous sales practices” in seem to disappear.” place to generate revenue. They claim Zurada has encountered this scethat Yelp’s representatives regularly nario more than once, he said. call businesses demanding monthly “With G&C, we’ve seen it happayments in the guise of advertising pen—favorable reviews of Crozat’s contracts, in exchange for removing or shops fall off after 30 days, while a modifying negative reviews. The small handful of unfavorable reviews companies involved in the litigation are still listed there from 2008, for excontend that Yelp informed them that ample. I don’t know what Yelp’s sebad reviews would disappear by signcret algorithm is, but it allegedly ing an advertisement agreement with detects reviews that are real vs. fake the site. ones. It seems that companies who One of the plaintiffs in this current law won’t sign up with Yelp have more suit against Yelp is John Mercurio, bad reviews and when good ones are the owner of Wheel Techniques, a 25posted, they identify them as fake. year-old company that repairs and Good reviews are suppressed and bad does in-house cleaning, polishing and ones stay there forever. That’s our custom painting of wheels in Santa main issue with Yelp. Yelp denies it Clara, California. and says they’re neutral, but there has It all started with a phone call, been some considerable litigation Mercurio explained. “The people at against them already along this vein.” Yelp contacted me and told me if I Zurada is in the process of repurchased an advertising plan with searching former civil suits that have them, they’d help me to get rid of the been filed against Yelp, in order to debad reviews or at least get them vise the best strategy, he said. “We’re knocked down the list,” he said. “But, in the process of analyzing these other when I told them no way, they immesuits, to see how they were apdiately removed a total of roughly 50
5-star reviews off my page. We were looking at Yelp.com while we were talking to them, and within a few minutes the positive review that was formerly at the top was gone and a one-star review suddenly appeared in its place” Mercurio felt used and was very upset at what he saw as a kind of extortion. “It was pretty obvious to us that they’re in control and what can we do? In my opinion, the laws haven’t caught up to the Internet yet, and that’s why it’s hard to sue them and even tougher to win. “We’ve got a ton of proof, because we’ve been documenting everything along the way and I pull reports from Yelp twice per week. They filter my reviews so that my overall rating sits at 2.5 stars. One week, I received three reviews that were all at 5 stars, yet my rating remained at 2.5, because I won’t buy advertising from them. The 5-star rankings are taken off all the time without any reason, and these are 100% legitimate customer reviews. We need to prove that Yelp’s so-called automated system is bogus, and we have evidence that some of these reviews were done manually.
They wanted $1,000 per month, which ago, we let an employee go and right is ridiculous. Yelp has cost me a lot of after that, we got a bad review that business, up to a one third, I estimate. was obviously written by this vengeI know for a fact that a lot of people ful former employee. It contains a look at our Yelp reviews every month, bunch of false information, but there so it has hurt my business in more it sits for all to see.” ways than we can ever know.” Saidi isn’t a social media expert, Shawn Saidi owns Active Auto but he can clearly see that something Body in Sunnyvale, Calif., a highly is peculiar in the way his reviews are successful shop located in a 13,300 managed by Yelp, he said. “I don’t square-foot facility and fixing 75–90 know how their system works, but vehicles monthly. He is also the curwe’ve had more than 100 positive rerent president for the Santa Clara views taken off. One of our customers Chapter of the California Autobody called me and told me that they put his Association. positive reviews aside. This is a legitSaidi says Yelp brings him cusimate customer and we’ve repaired tomers, but he is also wary of the site, two of his vehicles, so why are his for several reasons. “They actually www.autobodynews.com comments deleted? So, we contacted generate a lot of business for us. CusYelp and asked CHECK IT them OUT!why. They told tomers tell us that they see us on Yelp us that their system goes through the all the time. Most of our reviews on reviews to analyze them for authentheir site are excellent, but we have a ticity. If it’s a 5-star review and the few that are really bad. One was from user has never posted before, it gets a customer who brought his car to us set aside. Then, they tried to sell me around five years ago. About three advertising—again!” To advertise months ago he wrote a lengthy review The anonymity of the reviews call Advertising Sales at:but it also that reads like a novel. When you read on Yelp protects the users, his review, you can see that we tried creates a situation fostering unac800-699-8251 to do literally everything we could to countability, Saidi, he explained. “If e-mail: make him happy. But, five years later,advertising@autobodynews.com one of my customers has an issue he’s still not satisfied. A few months with one of our repairs, we can sit
www.autobodynews.com
down and rectify it. I’m not going to email the person, sharing comments back and forth—I’d prefer to sit down with them and handle it properly person-to-person. We always do whatever we can to make it right and we’re proud of our work, but if they’re only commenting online and won’t bring their vehicle back, we can’t help them.” Yelp was invited to respond to this story but declined to do so. Next month: How can you defend your reputation when it’s been disparaged online? Give us your opinion on matters
Law Offices of Martin Zurada 785 Market Street, Floor 16 San Francisco,publisher@autobody CA 94103 (415) 637-8483
write
The source for timely information that every body shop needs!
CALL 800-699-8251 Start Your FREE Mail Subscription.
fourth-generation owner.” For Schantz, the AASP-PA empowers members such as Elia and See the NEW Lenhart to protect their businesses and also important. “The biggest benefit prepare for the future: “Insurance comis rubbing elbows and the exchange panies and environmental regulations,” of ideas with successful automotive he says, “are the largest challenges facwww.autobodynews.com business owners,” Elia says. ing the collision industry.” Contact: Lenhart agrees: “The largest benefit is the relationships and the AASP-Pennsylvania/Delaware knowledge from other members,” Harrisburg, PA Lenhart says. “My closest friends and (717) 564-8400, www.aasp-pa.org their families are people who I have met through AASP-PA. Advertise in our “The knowledge that I have gained from other members has alCLASSIFIED SECTION lowed me to step out of the box of our for $50 per family-owned business and to expericolumn inch! ence the potential of owning an automotive-repair business. I have learned Place an ad in our since becoming a member and, being Autobody Marketplace active in the association, how to manage my business—and not allow the section of Autobody News. business to manage me.” And get a FREE For Lenhart, association membership is an important legacy as he On-line Ad! plans a second location. His grandfather started the business in 1930, and his father assumed control in the late kmangum@autobodynews.com ‘50s. “My son Nicholas has been working with me for the last 10 years or so and working toward being a Continued from Page 47
PA Associations
Autobody News Website
Fr
800-699-8251
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 51
Shop Showcase
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Nigro’s in Philadelphia Exemplifies the City’s Brotherly Love Motto with Chasidy Rae Sisk
When William Penn gave Philadelphia its motto as the City of Brotherly Love, he wasn’t thinking about auto body shops. It was 1682 after all. But I don’t know of any other business in Philly that has embraced that motto to the degree that Nigro’s Auto Body has. Located at 939 Washington Ave, Nigro’s Auto Body has always felt the importance of giving back and fostering the community that surrounds them. This shop continuously proves its dedication to community by donating time, money and energy to improve the daily lives of their customers, neighbors and the city in general.
Aniello Nigro founded Nigro’s Auto Body in 1983 after working at several local shops and deciding to provide customers with the quality workmanship he had learned while an apprentice at his uncle’s shop in Florence, Italy. He adopted his own motto: “Old World Craftsmanship, New World Technology.” Aniello had an auto body shop at a smaller location for about six months before moving to his current location on Washington Avenue. His son and coowner of the shop, Domenico Nigro, tries to follow the same code of standards and ethics as his father. His goal is not only to make his customers happy but also to provide them with knowledge about their automotive repairs, including a lifetime guarantee on the work done at his shop. Domenico Nigro explained that the shop’s goal is to help the industry and provide customer satisfaction, and he believes one important way to do this is by helping people and disseminating information to other shops. By showing customers that they care, Nigro’s plans to build their brand by helping people so customers know they can trust the shop to do what is
best for them and their vehicles. By uniting with other shops, even nationwide, difficult situations become surmountable as another shop has encountered it and can share their experience, whether it be a technical, insurance or customer situation. Nigro’s Auto Body is very active in their community in Philadelphia. Besides donating money to many charities, such as the Childrens’ Hospital of Philadelphia (CHOP) and through setting up fundraisers for Holy Spirit Church and their Padre Pio Foundation, they also contribute to Italian-American organizations, churches and rehabilitation centers. One such center is De La Salle Vocational for youths on probation where Nigro’s assists with revitalizing the auto body program in particular as well as participating in the program in general. The family has also established the Nigro Family Foundation which benefits women, children and rehabilitation. Nigro’s takes the consumers needs seriously, becoming one of the first shops with “Green Technology” and most recently, becoming an ‘Ask Patty’-Certified Female Friendly Shop.
AutoTex’s PINK Wiper Blades, on sale at Nigro’s, benefit the National Breast Cancer Foundation. For more information, visit www.autotexpink.com or call (800) 692-3962
Recently, Nigro’s Auto Body began selling AutoTex Pink wiper blades which allow customers to follow the shop’s example of giving back as the proceeds benefit the National Breast Cancer Foundation. The blades also have a motto: “Change A Blade and Change A Life.” The shop participates in fundraisers and charity walks, as well as various food, phone and blood drives. They also are in the process of establishing sponsorship for annual awards
52 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
for those who help the community and are often underappreciated, such as teachers, firefighters, police, doctors and so forth, in addition to offering
Nigro’s also reveals a feeling of responsibility toward the environment. Besides being one of the first shops in the area to go green, they
(left to right): Joseph Coulter, Aniello Nigro, Domenico Nigro & Raffaelle Mele
scholarships for children’s education. Experts at restoring antique and exotic cars, the shop has also contributed efforts to restoring vehicles for the Simeone Foundation Museum. Additionally, the shop works with a company to install equipment for disabled drivers, and the proceeds of this effort are donated to the Bonnacotti Fund. The shop has received a car seat certificate from Safe Kids so they can teach parents how to properly install their child’s car seat, and they plan to participate in a Child Safety program with CHOP to test car seats as well. They are also involved with the Boy and Girl Scouts, allowing children to earn auto body badges at the shop. Nigro’s hosts an Ask Pattycertified course to teach women about their vehicles, as well as driving safety classes. They are also currently developing three phone applications. The first allows the user to contact medical care, the police and emergency contacts as well as sending information directly to the insurance company to help process their claim and show liability in case of an accident. The other two applications are focused on teen driving safety; the first monitors speed and emails parents speed and location information when the teen exceeds a specified speed limit, and the second blocks teens from texting while driving, responding to incoming calls and texts that the recipient is driving and will return the call when available.
also sell Passchal handbags which are made from recyclable materials, the proceeds of which benefit the United Way, DuPont Hospital and the Nigro Family Foundation. They participate in the effort to preserve nature by recycling everything possible, including metals, plastic and fiberglass. They also use Sikkens waterborne paints, by AkzoNobel, and they are currently in the process of researching how they can adopt solar energy power sources. The shop shows that they care for all aspects of the customer’s wellbeing by offering auto financing and a deductible program to help save money. Additionally, the shop is working on participation in a thirdparty program called Don’t Pay Us to Fix Your Car which basically allows customers, subject to credit approval, to use their insurance check to pay off high-interest, long-term debt, giving them up to a year to repay the loan without interest for a small upfront fee. Visiting the shop’s website, potential customers can see further evidence that Nigro’s Auto Body truly cares about their needs. The site offers information about their many programs as well as resource articles with useful information such as the steps to take if involved in an automobile accident and how to save money on gas, among others. Adding to the site’s comprehensiveness is the option of translating it into English, Spanish or
Italian, the three languages spoken in the shop. Though Nigro’s typically utilizes standardized equipment, such as MIG welders, a Chart frame machine and measuring systems, one unique piece of equipment that they rely on is their handmade downdraft spray booth. Aniello Nigro hand-crafted his booth using a design from his uncle’s shop in Florence, Italy. The inside of the booth is covered with white ceramic tiles, and according to manager Wayne Simmons, their “multi-filter downdraft design provides a perfect airflow, virtually eliminates contaminants, and is heated for baking finishes, basically allowing our painter to create near-flawless finishes.” Nigro’s Auto Body employs six workers and encompasses 3000 square feet where they complete approximately twenty-five cars each month. The shop has been certified I-CAR Gold, and by PPG, ASE, ASA, BASF and ADP, in addition to being Esco Institute EPA Certified. In addition to auto body work, Nigro’s also engages in some towing and accident-related mechanical repairs.
Domenico Nigro concedes that this is one of the toughest times he has seen in all the years of Nigro’s existence. The economy, price of parts, tougher insurance and adjuster relations and regulations, combined with customer demands and the technology of the automobiles all add up to tough times. However, Domenic maintains it does not all have to be doom and gloom. He has compiled several pamphlets specifically for fellow shop owners and is very willing to share them along with other thoughts, ideas, and questions. He urges shop owners to contact him by email at NigroAutoBody@Comcast.net and place Body Shop Magazine Article in the subject line. He regrets that phone calls cannot be handled due to volume. Nigro’s is determined to help unite the body shop industry and share some of the wealth of information they have gleaned from doing business throughout the decades. Nigro’s Auto Body 939-41 Washington Avenue Philadelphia, PA 19147 215-925-0910 www.nigrosautobody.com
Parts Parts you you Need. Need. People People you you Trust. Trust.
2011 Lancer
Genuine Genu Ge nuin nu inee Mitsubishi in Mits Mi tsub ts ubis ub ishi is hi replacerrep epla ep lace la ce-ce ment ment Crash CCra rash ra sh Parts PPar arts ar ts are are close cclo lose lo se at at hand hand through tthr hrou hr ough ou gh the the following ffol ollo ol lowi lo wing wi ng quality qual qu alit al ityy dealerships. it deal de aler al ersh er ship sh ips. ip s. They TThe heyy offer he offer exceptional exce ex cept ce ptio pt iona io nall customer na cust cu stom st omer om er service, sser ervi er vice vi ce,, ce wide wide selection ssel elec el ecti ec tion ti on of of in-stock in-s in -sto -s tock to ck parts part pa rtss and rt and the the experience expe ex peri pe rien ri ence en ce necessary nece ne cess ce ssar ss aryy to ensure ar eens nsur ns uree your ur your repairs repa re pair pa irss proceed ir proc pr ocee oc eedd smoothly. ee smoo sm ooth oo thly th ly.. ly C A L IF O RNI A
Veracom Mitsubishi
866-509-0642 SAN MATEO
(650) 340-6108 Fax M-F 7:30 am - 5:00 pm Sat 8:00 am - 5:00 pm mitsparts@veracom.com www.veracom.com
Delphi Files for $100M Initial IPO Troy-based Delphi Automotive LLC, riding a wave of Wall Street interest in the auto sector, has filed financial documents in preparation for an initial public stock offering, according to the Detroit News. The former General Motors Co. parts unit emerged from bankruptcy in late 2009 after a four-year restructuring, owned primarily by private equity firms including Elliott Management, Silver Point Capital and Paulson & Co., the investment arm of billionaire John Paulson. In documents submitted to the Securities and Exchange Commission late May 27, Delphi filed for a $100 million IPO—a placeholder figure—but the final amount could be $1 billion or more. The company will disclose the number of shares, pricing and the amount it expects to raise when it gets closer to launching the offering. Delphi didn’t say when it plans to go public. The maker of fuel-injection systems and other parts said it plans for its stock to trade under the symbol DLPH. The move toward public ownership follows GM’s successful $23.1 billion IPO in November—the largest ever. Another major supplier, Allison Transmission Holdings, which also was once a GM unit, also plans an IPO. California-EV start-up Tesla Motors Inc. had a successful start-up in June, raising $226 million. It said this week it is filing for a follow-on stock offering to raise $200 million or more. The restructured Delphi is slimmer and more profitable. It eliminated most of its US plants and hourly workers during bankruptcy, along with billions in pension obligations and other debts. It also canceled salaried retiree health care and life inContinued from Page 49
CA Domestic Sales
grade. The Dodge Durango and Charger are the two most improved vehicles out of eight new models the auto testing center is rating. All of the automakers new or refreshed vehicles are better than their predecessors, reflecting much better attention to detail, said Consumer Reports’ David Champion. Japanese brands took the brunt of the sales hit in May, due in large part to fallout from the earthquake and tsunami that hit the island nation hard
surance. When it filed for bankruptcy, Delphi had 50,000 U.S. employees and more than 30 plants. Today, it has about 5,000 at five U.S. factories. Delphi operates 110 manufacturing facilities and 14 major technical centers and employs about 110,000 people worldwide. About 90 percent of Delphi’s 100,000 hourly workers worldwide are in low-wage countries and 30 percent of its factory workers are temporary workers. The company had revenue of $4 billion in the first quarter, with net income of $310 million. Last year, it reported $13.8 billion in revenue and net income of $703 million. David Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor expects Delphi’s IPO to be successful. “They are positioned to be very profitable, especially as auto sales return to traditional levels,” Cole said. “They’ve gotten a lot leaner and moved their production to low-cost areas.” Auto sales are still at “depression” levels—still far below the 15-16 million annual vehicles sold. “Investors in an IPO will buy on the expectation that sales will rebound,” Cole said. David Whiston, an auto analyst at Morningstar Inc. in Chicago, said the key question for Delphi was its customer base. “Any auto supplier that has a cleaned-up balance sheet from bankruptcy has good prospects given that I expect U.S. auto sales to be several million units a year higher over the next few years than they are today,” Whiston said. Delphi has been talking to bankers for months about taking steps to get ready for their IPO. In March, Delphi bought GM’s stake for $3.8 billion. in March of this year. Of the three major Japanese automakers, Toyota was hit the hardest, down over 30 percent. Lexus, Toyota’s luxury brand, fared ever worse, down nearly 45 percent from May of last year. It remains to be seen if rising sales for domestic autos in the US will sustain and if, after the dust settles for Japanese automakers, import sales won’t overtake the US market again. Though many domestic automakers have seen increases in California that indicate better prospects for long-term viability, a sustained nationwide sales increase in domestic autos is a much different question.
www.autobodynews.com | JULY 2011 AUTOBODY NEWS 53
AUTOBODY MARKETPLACE WHEELS AMERICA
Nine Locations in the USA!
• Thousands of OEM Remanufactured Wheels in Stock • Lifetime Guarantee • CNC Quality • Powder Coated
101
888-4-FIX-RIM $109 to repair with this ad w w w.f i x r i m . c o m
ER K C A R C Y POL
Waterborne Wax and Grease Remover SINCE 1985
Available from YOUR local Jobber or CALL: 973.335.2828 FAX: 973.402.7222 polycracker@netscape.com
To advertise, call 800-699-8251 Give us your opinion on matters affecting the industry.
Body Shop Consulting write us! and Management
www.autobodynews.com
publisher@autobodynews.com
CHECK IT OUT!
Need a Printout? These very affordable, user friendly products will provide the before and after printout required by most insurance companies. Ü Quick and easy measuring of the vehicle. Ü Documentation by printout/save as a pdf. Ü Continuous update of the database. Ü Training Available. Ü Distributor enquiries welcome. Ü Financing Available.
For more information:
• 40 Years Experience Repairing/Restoring Exotics • Many Concourse Winners, Including Pebble Beach To advertise Ted at: W. call Advertising Sales
Kennedy
FOR SALE Dupont Chromavision Camera To advertise Model # MA 90 The source for timely
information that every Paint match for solvent or water base. Includes all accessories & carrying case. 800-699-8251 body shop needs! $550.00 obo. Walt (805) 966-6220
call Joe Momber at:
KENNEDY & ASSOCIATES
800-699-8251 e-mail:
CALL 800-699-8251 562-597-2275 Fax 562-597-9601 Voice www.autobodynews.com StartShop Your FREE Call Us Before You Build Your Next
advertising@autobodynews.com
Mail Subscription.
866-653-5639 www.jneequipment.com
See the NEW
Autobody News Website www.autobodynews.com
e-mail:
jmomber@autobodynews.
www.autobodynews.c FOR SALE R134A A/C Machine RTI Model RHS780
Recover / Recycle / Deep vacuum / Register Charge automatically at the push Your of a button. Excellent Condition: $1,850.00 Walt (805) 966-6220 at www.autobo
Free Monthly
OEM WHEELS AT HUGE SAVINGS
800-383-7974 sales@1800EveryRim.com
Right on Price, Right on Time, Every Time!
• Stock Alloy & Steel Wheels — Used, Reconditioned — New Replicas • We pay top dollar for stock take-off wheels Next day noon delivery to most of CA, AZ and NV
1-800EveryRim.com Pico Rivera, CA
Call or e-mail now for rates: 800-699-8251 or kmangum@autobodynews.com 54 JULY 2011 AUTOBODY NEWS | www.autobodynews.com
NACE 2011 in Orlando! EARLY BIRD PRICING: $15 Expo Pass > $335 Super Su Pass
D DON’T MISS OUT O ON THE SAVINGS! Go to www.autobodynews.com www and select the NACE banner and register for NACE 2011 in Orlando!
For the first time in 7 YEARS , the world’s collision event is headed east! Join the automotive service & repair industry at the only event that is specifically designed and created for YOU. As the flagship event of ASRW, NACE constantly evolves with the industry to meet your ever-changing business needs, continues to invest in the industry it serves, and is a must attend event for anyone in the automotive service & repair industry. And this year…
IT’S ALL ROLLED INTO ONE: World class exhibits // Unmatched education & training you won’t find anywhere else Live on-floor demonstrations // Opening general session // Welcome reception // ASRW Town Hall ASRW Industry Forum // Association Leadership Summit // Networking Events Vehicle Display Featuring the Muscle Car Network of Florida Co-Located With: Held During:
ASRW 2011 // ORLANDO, FL USA THE PREMIER EVENT DEDICATED TO THE AUTOMOTIVE SERVICE & REPAIR INDUSTRIES Exhibits: October 6–8 // Conference: 5–8 // Orange County Convention Center
www.ASRWEVENTS.com www.autobodynews.com | JULY 2011 AUTOBODY NEWS 55