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Multi-National Sources Say Takata Corp. is to File for Bankruptcy Protection by Autobody News Staff

International media sources are reporting that Japanese airbag maker Takata Corp. is preparing to file for bankruptcy as early as the week of June 18 as it works toward a deal for financial backing from U.S. auto parts maker Key Safety Systems Inc., people familiar with the matter told Automotive News. Michigan-based Key Safety Systems Inc. is owned by Chinese supplier Ningbo Joyson. Takata’s steering committee recommended Key as the preferred bidder for the entire manufacturer.

Takata is expected to file for bankruptcy in the near future before selling its production operations to a newly formed company to pay off its debts to creditors, according to Nikkei. Fellow Japanese companies Honda and Toyota are among some of the major entities Takata is in debt to. Takata, one of the world’s biggest automotive suppliers, has been working for months to complete a deal with Key Safety. The company faces billions in liabilities brought on by manufacturing defective airbag inflators. A person briefed on the matter told Reuters that See Takata Bankruptcy, Page 12

Supreme Court Decision Delivers Patent Exhaustion Claim Benefiting the Aftermarket

volved the ability of Lexmark to restrict purchasers from reusing their printer cartridges or providing the used cartridges to anyone other than Lexmark. The Federal Circuit case determined patent holders can retain rights after sale as long as the restrictions on use are clearly communicated. “While the case applied to printer cartridges, the impact of the Federal Circuit decision would have been extensive, restricting the ability of companies to produce and sell aftermarket and remanufactured parts based on the fear of violating a car company’s See Supreme Court, Page 27

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In a major victory for the auto parts aftermarket industry, the Supreme Court upheld the legal precedent of patent exhaustion, which states that a company’s right to protect its patent ends when the product is sold to the end user, reports the Auto Care Association. Information from an amicus brief submitted to the Supreme Court by the Auto Care Association was used by Chief Justice John G. Roberts Jr. in reversing the Federal Circuit decision that would have been damaging to the manufacture and sales of aftermarket parts. The case, Impression Products, Inc. v. Lexmark International, Inc., in-

VOL. 35 ISSUE 7 JULY 2017

NACE Automechanika July 26–29, 2017 in Chicago by Autobody News Staff

Automechanika Chicago, the largest U.S. trade show dedicated to high-end technical and management-related training for automotive collision and service repair shops, along with NACE (the International Autobody Congress & Ex-

position), the premiere event for the U.S. collision repair industry, will combine forces starting this July in Chicago. The co-production between Automechanika Chicago and NACE is intended to create a unified stage using NACE’s strong relationships within the collision and OE community combined with Automechanika

Chicago’s global strength throughout the automotive aftermarket. Working in collaboration, the two entities will create an unprecedented partnership focused on training and product discovery for the automotive technicians, shop owners and parts distributors. A combined Automechanika Chicago and NACE show will take place July 26-29, 2017 in Chicago. Show hours: Wednesday, July 26 11:00 AM – 6:00 PM Thursday, July 27 11:00 AM – 6:00 PM Friday, July 28 11:00 AM – 4:00 PM Saturday, July 29 8:00 AM – 5:00 PM (Tabletop Exhibits, Focused Training)

A full training schedule is available at See NACE Automechanika, Page 18

Aftermarket Parts Industry Takes Aim at Restrictions on Sale and Use of non-OEM Parts

crash parts from 14 years to just 30 months. Earlier versions of legislation Federal and state legislation related to have had several House committee non-OEM parts was a key topic at the hearings since it was first introduced recent Automotive Body Parts Associin 2007, but never one in the Senate. ation (ABPA) convention. About 150 “Our mission now is to get this people, primarily representing manubill moving,” Nordwind said. “I can facturers or distributors of tell you eight or nine years non-OEM parts, attended the ago when we started lobbyevent, held in Atlanta. ing for this bill, no one knew what we were talking about. Lobbyist Will NordEverybody now knows what wind of the Quality Parts we’re talking about. We’ve Coalition told convention ateducated the Congress. And tendees that he hopes to see a first-ever Senate Judiciary now we need to get to the Lobbyist Will Committee hearing during next level, which is to move Nordwind of the Quality Parts the bill.” this Congress on the “ProCoalition He said he held about 20 moting Automotive Repair, Trade and Sales (PARTS) Act,” pro- meetings in late April with members posed federal legislation that would of Congress or their staff. “At each of those meetings, we slash the time that automakers can use were starting to hear that the car comdesign patents to prevent other companies from producing replacement See Restrictions, Page 26 by John Yoswick

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2 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL A Future Car May Be Protected from Hacking by Software Developed in San Antonio . . . . 78 ABRA Auto Body & Glass Awards Tool Grants to 10 Students Through CREF. . . . . . . . . . . 74 Atlanta I-CAR Committee Awards $5,000 Scholarship . . . . . . . . . . . . . . . . . . . . . . . . 72 Auto Care Association: Will Vehicle Manufacturers Comply with Right to Repair Requirements? . . . . . . . . . . . . . . 30 Auto Care Careers Offers On-Campus Recruiting Opportunities . . . . . . . . . . . . . . . 72 Automotive Students Receive 3M Scholarships . 36 Blackhawk Partners with 1Collision Network. . 34 Bronx Auto Shop Accused of Taking Money from Customers’ Insurance Companies . . . 70 Caliber Collision Collects 3.2 Million Kids’ Meals . . . . . . . . . . . . . . . . . . . . . . . . 34 Canada’s Craftsman Collision MSO: “There’s a What Living in this Car?” . . . . . . 28 CARSTAR Adds Collision Repair Center

for these procedures is in addition to the stated labor times. “While these changes are minor, they reflect Mitchell’s ongoing commitment to create, aggregate and deliver the industry’s most comprehensive, accurate and consumable vehicle content,” said John Gilmartin, VP of Service Operations for Mitchell International. In the second enhancement, the current release will include Reference Sheet line items to allow repair facilities to document the times and costs associated with both pre-repair and post-repair scans.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Sales Assistant: Jessica Day Digital Marketing Manager: Cass Heckel Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Accounting Manager: Pamela Cate

Advanced Savings Solutions . . . . . .83 AIRCOM USA, Inc. . . . . . . . . . . . . . .20 Audi Wholesale Parts Dealers . . . . .80 AutoNation Chrysler-Jeep-DodgeRam-Fiat . . . . . . . . . . . . . . . . . . . .26 Axalta Coating Systems . . . . . . . . . . .5 BMW Wholesale Parts Dealers . . . .77 Bob Smith BMW . . . . . . . . . . . . . . . .60 Bob Smith MINI . . . . . . . . . . . . . . . .60 Capitol Subaru . . . . . . . . . . . . . . . . .84 Certified Automotive Parts Association (CAPA) . . . . . . . . . . .41 ChemSpec USA, LLC. . . . . . . . . . . .32 Chrysler-Dodge-Jeep-Ram of Seattle . . . . . . . . . . . . . . . . . . .68 Classifieds . . . . . . . . . . . . . . . . . . . .82 Colortone Automotive Paints . . . . . .24 Dave Smith Motors . . . . . . . . . . . . .39 DCH Auto Group Temecula . . . . . . .11 Del Grande Dealer Group . . . . . .16-17 Denny Menholt Chevrolet . . . . . . . .53 Dent Magic Tools . . . . . . . . . . . . . . .12 Diamond Standard Parts, LLC . . . . .55 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .63 ECS Automotive Concepts . . . . . . .28 Engine Parts Warehouse . . . . . . . . .40 Enterprise Rent-A-Car . . . . . . . . . . .46 Equalizer Industries, Inc. . . . . . . . . .44 First Auto Group . . . . . . . . . . . . . . . .48 Ford of Kirkland . . . . . . . . . . . . . . . .68 Ford Wholesale Parts Dealers . . . . .67 Galpin Motors . . . . . . . . . . . . . . . . .59 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . .15 GM Wholesale Parts Dealers . . . . . .73 Haddad Dodge-Kia . . . . . . . . . . . . .19 Herkules Equipment Corporation . .36 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .42-43 Hyundai Motor America . . . . . . . . . . .6 Hyundai of Kirkland . . . . . . . . . . . . .68 Hyundai of Seattle . . . . . . . . . . . . . .68 Hyundai Wholesale Parts Dealers . .66 Insta Finish Car Care . . . . . . . . . . . . .9

Serving California Idaho, Montana, Nevada, Oregon, Washington and Wyoming. 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. ©2017 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com news@autobodynews.com

Western

COLUMNS Attanasio - DeBeer Refinish Reds Set the Industry Standard. . . . . . . . . . . . . . . . . . . . 46 Attanasio - Is Tesla Backing Away From Third-Party Shops? . . . . . . . . . . . . . . . . . . 40 Attanasio - The Technology Party: Are you early, late, or indifferent? . . . . . . . . 56 Luehr - Lean Thinking of America’s Greatest Body Shops . . . . . . . . . . . . . . . . . . . . . . . . 60 Phillips - 83-Year-Old Chicago Body Shop Invests in Best Training & Equipment to Exceed Customer & Employee Expectations . 20 Phillips - MS Attorney General Tells Autobody News His Rationale Behind New Consumer Guide for Insurance and Auto Body Repair . 68 Sisk - 3rd Annual Texas Auto Body Trade Show: A Whole New Experience and That Ain’t No Bull . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Sisk - Auto Care Association and YANG Leadership Days, Regional Meet-Up and 2017 Leadership Conference Held in Early May . . . . . . . . . . . . . . . . . . . . . . . . 32 Sisk - Management Success Holds March Spring Convention and May Annual Top 20 Meeting . . . . . . . . . . . . . . . . . . . . . 48 Yoswick - “Who Pays for What?” Surveys Having an Impact on Billing for Refinish-Related Operations . . . . . . . . . . . . 52 Yoswick - Aftermarket Parts Industry Takes Aim at Restrictions On Sale and Use of Non-OEM Parts . . . . . . . . . . . . . . . . . . . . . . 1 Yoswick - Shop Owner’s Public Criticism Of Partstrader Didn’t Cost Him With State Farm . 54

to Network in Houston . . . . . . . . . . . . . . . . 24 CCC Information Services & CREF Scholarship Winners . . . . . . . . . . . . . . . . . 62 Chief® Reintroduces Impulse Tilt Frame Rack Meets Customer Demand for a Basic Rack That Can Handle Most Jobs . . . . . . . . . . . . 81 Chief® Vulcan ADU Approved by Ford, Mitsubishi and Nissan . . . . . . . . . . . . . . . . 61 Collision Repair Education Foundation Adds Battaglia to Leadership Team . . . . . . . . . . . 74 Consumer Article: Car Insurance Companies Offering Photo Claim Options . . . . . . . . . . . 75 Copart Acquires Cycle Express. . . . . . . . . . . . 74 CREF and ASE Introduce Future Collision Repair Industry Professionals to Potential Employers at 3rd Annual Cars, Careers and Celebrities Event . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Former Owner of a Georgia Body Shop Sentenced for Odometer and Title Fraud . . . 36 GM Has Started Testing Second-Generation Chevrolet Bolt EV Autonomous Vehicles Publicly . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Herkules Rebates Make For Summer Savings . . 80 Honda Targeting Introduction of Level 4 Automated Driving Capability by 2025 . . . . 19 I-CAR Nashville Committee Awards 7 Students with Grants Through CREF . . . . . . . . . . . . . 74 Insurer Pays for Use of OEM Parts After Television News Story . . . . . . . . . . . . . . . . 34 Intel Study Predicts Autonomous Driving Will Spur New ‘Passenger Economy’ Worth $7 Trillion . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Jobber 2016 Sales Slow according to a report released in the 2018 Lang Aftermarket Annual . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Massachusetts Lawmakers Consider Bills On Parts, Steering . . . . . . . . . . . . . . . . . . . 70 Mitchell Announces Clarified Labor Hour Times for Diagnostic Scanning . . . . . . . . . . . 3 Multi-National Sources Say Takata Corp. is to File for Bankruptcy Protection . . . . . . . . . . 1 NACE Automechanika July 26--29, 2017 in Chicago . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 New Jersey Bill to Require Warranty Disclosure Approved by Committee . . . . . . . . . . . . . . . 76 New TX Bill Aims to Get More Driverless Cars on Texas Roads . . . . . . . . . . . . . . . . . 24 Nissan to Offer Standard Automatic Emergency Braking (AEB) on One M Vehicles in 2018 Model Year . . . . . . . . . . . . . . . . . . . . . . . . . 19 Collision Repair Industry Shares Memories of Visionary Steve Schoolcraft . . . . . . . . . . 44 Phillips - The State of the Industry for Body Techs . . . . . . . . . . . . . . . . . . . . . . . . 66 Polk County, FL: Thieves Are Targeting Wheels . 36 SATA® TrueSunTM LED Lamp: the Daylight Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Sherwin-Williams Gets Approval on Valspar . . 78 Student at TX Technical College Says He’s “Fascinated by Everything” in Auto Body Program. . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Supreme Court Decision Delivers Patent Exhaustion Claim Benefiting the Aftermarket . 1 The Importance of Attracting, Hiring and Retaining Women Employees at WIN’s 2017 Educational Conference . . . . . . . . . . . 80 UK’s Thatcham Research Calls for New Thinking and Approaches to Halt Spiralling Cost of Repair . . . . . . . . . . . . . . . 14 Waymo is Testing Self-Driving Trucks . . . . . . . . 4 WD-40® Launches New Line of Multipurpose Greases with Superior Properties . . . . . . . . 35

Mitchell has announced enhancements to its estimating solutions related to scanning and diagnostics. The first enhancement clarifies that the stated labor times in Mitchell Estimating do not include labor time specifically related to diagnostic scanning. The current release of the Mitchell Estimating solution will include updated Procedure Pages, noting that labor times do not include: Time required to aim, calibrate, diagnose, re-set or scan electrical items. Time required to perform pre-repair and postrepair scan operations. The time required

Index of Advertisers

REGIONAL Attanasio - Two Collision Veterans Run Silicon Valley Tech School . . . . . . . . . . . . . . . . . . . 50 CAA Says California Insurers Could Use Sneaky Political Tactics to Push AB 1679, Despite Delay Until 2018. . . . . . . . . . . . . . . . . . . . . 12 CARSTAR ARA Collision in Seattle Opens . . . . . 6 Craftsman Collision Sees How It’s Made at Pro Spot HQ . . . . . . . . . . . . . . . . . . . . . . . . 78 D M Auto Body Earns Official Certification and Prestigious Top Automaker Recognition . . . . 6 IAA Announces Grand Opening of New Portland Area Branch . . . . . . . . . . . . . . . . . . 6 Lake Tahoe Community College Student-Veteran Wins Car in Essay Contest . . . . . . . . . . . . . . 8 Senior More Comfortable with Cars than Books at Technical Careers High School in ID . . . . . 8

Mitchell Announces Clarified Labor Hour Times for Diagnostic Scanning

Kearny Mesa Subaru-Hyundai . . . . .75 Kia Motors Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .64-65 Killer Tools & Equipment . . . . . . . . .49 Lancer Insurance Company . . . . . . .38 Lusid Technologies . . . . . . . . . . . . .29 Mazda Wholesale Parts Dealers . . .62 MINI Wholesale Parts Dealers . . . . .76 Mitsubishi Wholesale Parts Dealers . .58 MOPAR Wholesale Parts Dealers . . .47 Moss Bros. Chrysler-Jeep-Dodge . .23 NACE/automechanika Trade Show . .21 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .79 O’Reilly Auto Parts . . . . . . . . . . . . . .37 Paint Spray Booths - PFS, Inc. . . . . .14 Penske Hyundai . . . . . . . . . . . . . . . .56 Porsche Wholesale Parts Dealers . .74 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Puente Hills Subaru . . . . . . . . . . . . .50 Reliable Automotive Equipment . . . .18 Riverside Kia . . . . . . . . . . . . . . . . . .54 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .52 Robaina Industries, Inc. . . . . . . . . . .51 Roy Robinson Subaru . . . . . . . . . . .69 SATA Dan-Am Company . . . . . . . . .25 Sherwin-Williams Finishes . . . . .34, 35 Shingle Springs Subaru . . . . . . . . . .45 Shop-Pro Equipment . . . . . . . . . . . .31 Sierra Chevrolet-Honda-Subaru . . . .61 Sorbothane . . . . . . . . . . . . . . . . . . . .8 Spanesi Americas . . . . . . . . . . . . . .22 Subaru Wholesale Parts Dealers . . .71 Tacoma Dodge-Chrysler-Jeep-Ram .33 The Bay Area Automotive Group . . .57 U.S. Chemical & Plastics . . . . . . . . .13 Valley Auto Dismantlers Association, Inc. . . . . . . . . . . . . . .30 Valspar Refinish . . . . . . . . . . . . . . . . .7 Volkswagen Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .81 Volvo Wholesale Parts Dealers . . . .72 Wizards Products . . . . . . . . . . . . . . .10 Yellow Jacket . . . . . . . . . . . . . . . . . .27

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Intel Study Predicts Autonomous Driving Will Spur New ‘Passenger Economy’ Worth $7 Trillion Intel Corporation has released a new study that explores the yet-to-be-realized economic potential when today’s drivers become idle passengers. Coined the “Passenger Economy” by Intel and prepared by analyst firm Strategy Analytics, the study predicts an explosive economic trajectory growing from $800 billion in 2035 to $7 trillion by 2050. History has proven that technology is the catalyst for massive societal transformation and that businesses need to adapt or risk failure, or worse, extinction. New digital business models ushered in by personal computing, the internet, ubiquitous connectivity and smartphones gave birth to whole new economies. Autonomous driving will do the same. “Companies should start thinking about their autonomous strategy now,” said Intel CEO Brian Krzanich. “Less than a decade ago, no one was talking about the potential of a soon-to-emerge app or sharing economy because no one saw it coming. This is why we started the conversation around the Passenger Economy early, to wake people up to the opportunity streams that will emerge when cars become the most powerful mobile data generating devices we use and people swap driving for riding.” Autonomous driving and smart

city technologies will enable the new Passenger Economy, gradually reconfiguring entire industries and inventing new ones thanks to the time and cognitive surplus it will unlock. “Not unlike the space race of the 1960s, today’s announcement is a rallying cry to the world to put its best minds on this challenge,” said Greg Lindsay, urbanist and mobility futurist. “The future of mobility, economic advancement and the emergence of new growth opportunities like the Passenger Economy demand ongoing dialogue. I am excited to partner with Intel, take this discussion on the road and look at solutions through the lens of the diverse industries that will shape our future—from automakers to investors and policy makers to startups.” The new report frames the value of the economic opportunity through both a consumer and business lens and begins to build use cases designed to enable decision-makers to develop actionable change strategies. “Autonomous technology will drive change across a range of industries and define a new landscape, the first green shoots of which will appear in the business-to-business sector,” said study co-author Harvey Cohen, president, Strategy Analytics. “The

Waymo is Testing Self-Driving Trucks

Alphabet’s autonomous car company Waymo is exploring self-driving trucking, according to several media reports. “Self-driving technology can transport people and things much more safely than we do today and reduce the thousands of trucking-related deaths each year. We’re taking our eight years of experience in building self-driving hardware and software and conducting a technical exploration into how our technology can integrate into a truck,” a Waymo spokesperson told BuzzFeed. Waymo subsequently confirmed that it was in fact testing a truck, and said it was manually driving the semi on a public road for data collection purposes. The Waymo spokesperson confirmed that the company is currently testing just one truck. Google began working on selfdriving cars in 2009. It spun out its self-driving car program into a new company called Waymo in 2016, and earlier this year it announced it had been developing its own autonomous driving hardware. Earlier this year, the company launched a pilot program in Phoenix for people to take rides in their cars. The company had not previously announced trucking efforts. Uber is also working on autonomous trucking. Last year, the ride-

hail juggernaut purchased an automated trucking startup called Otto, whose founder Anthony Levandowski —a former Google employee—is now at the center of a lawsuit from Waymo. Waymo sued Uber in February, alleging Levandowski stole the company’s self-driving trade secrets before joining Uber. Waymo’s lawsuit alleges that Uber has benefitted from that information, and its lawyers have argued Otto was simply a ruse created so Uber would acquire it and obtain Waymo’s secrets. Levandowski was fired by Uber in May. He was let go after failing to comply with a judge’s request that he turn over thousands of documents that he is accused of stealing from Google’s parent company, where he had worked as a senior engineer. The New York Times was the first to report the news. Trucking has been predicted to be one of the major applications of self-driving technology. Uber performed its first self-driving trucking delivery in October 2016: a 120-mile beer haul for Anheuser-Busch. The company performed that delivery after completing five consecutive tests along its Colorado route, with police surrounding the vehicle in motorcade fashion.

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emergence of pilotless vehicle options will first appear in developed markets and will reinvent the package delivery and long-haul transportation sectors. This will relieve driver shortages around the world and account for twothirds of initial projected revenues.” The research firm further points out that autonomously operated vehicle commercialization will gain steam by 2040 —generating an increasingly large share of the projected value and heralding the emergence of instantaneously personalized services.

Key report highlights include: ● Business use of Mobility-as-a-Service (MaaS) is expected to generate $3 trillion in revenues, or 43 percent of the total passenger economy. ● Consumer use of Mobility-as-a-Service offerings is expected to account for $3.7 trillion in revenue, or nearly 55 percent of the total passenger economy. ● $200 billion of revenue is expected to be generated from rising consumer use of new innovative applications and services that will emerge as pilotless vehicle services expand and evolve. ● Conservatively, 585,000 lives can be saved due to self-driving vehicles in the era of the Passenger Economy from 2035 to 2045.

● Self-driving vehicles are expected to free more than 250 million hours of consumers’ commuting time per year in the most congested cities in the world. ● Reductions in public safety costs related to traffic accidents could amount to more than $234 billion over the Passenger Economy era from 2035-2045. ● Highlights of future scenarios explored in the study include: ► Car-venience: From onboard beauty salons to touch-screen tables for remote collaboration, fast-casual dining, remote vending, mobile health care clinics and treatment pods, and even platooning pod hotels, vehicles will become transportation experience pods. ► Movable movies: Media and content producers will develop custom content formats to match short and long travel times. ► Location-based advertising: Location-based advertising will become more keenly relevant, and advertisers and agencies will be presented with a new realm of possibilities for presenting content brands and location. ● Mobility-as-a-perk: Employers, office buildings, apartment complexes, university campuses and housing estates will offer MaaS to add value to and distinguish their offer from competitors or as part of their compensation package.

GM Has Started Testing Second-Generation Chevrolet Bolt EV Autonomous Vehicles Publicly

General Motors has started testing its second-generation Chevrolet Bolt EV autonomous vehicles on public roads, Automotive News has reported. The all-electric hatchbacks are the first of 130 with self-driving technologies produced at the automaker’s Orion Assembly plant near Detroit. “Production of these vehicles began in January, making GM the first, and to this day, the only automotive company to assemble self-driving vehicles in a mass- production facility,” GM CEO Mary Barra said. Testing of a small number of the second-generation vehicles has begun in San Francisco and is to expand to the Detroit area and Scottsdale, AZ, in the coming months. GM began testing a fleet of more than 50 of the first-generation self-driving vehicles last spring in California and Arizona, and in January in Michigan. The company declined to say how many miles the vehicles have driven autonomously. The new fleet features GM’s latest array of equipment, including LIDAR, cameras, sensors and other hardware designed to accelerate development of fully autonomous vehicles. In December, Barra said GM would begin building the self-driving EVs at

Orion Assembly alongside the Chevrolet Spark and non-autonomous versions of the Bolt EV. GM plans to first launch production self-driving Bolt EVs for ride-sharing in major cities, however the company has not put a timeline on when that may occur. GM in December said it would begin building the self-driving EVs at Orion Assembly alongside the Chevrolet Spark and non-autonomous versions of the Bolt EV. “This next generation-vehicle will allow us to increase that testing and really accelerate our development of safe, reliable and fully autonomous vehicles,” Barra said. In 2016, GM paid $500 million for a minority stake and a board position in Lyft, the second-largest U.S. ride sharing firm after Uber Technologies Inc. The autonomous Bolt EVs include dozens of cameras and sensors, including a “sensor roof rack” that includes five LIDARs with 32 lasers each that quickly spin 360 degreeschine learning and artificial intelligence algorithms to better identify pedestrians, traffic lights, lane markings and other objects,

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D M Auto Body Earns Official Certification and Prestigious Top Automaker Recognition D M Auto Body has been officially Certified by Assured Performance, a non-profit consumer advocacy organization for maintaining the right tools, equipment, training, and facility necessary to repair the participating Automaker brand vehicles according to the manufacturer’s specifications. In achieving their Certification, D M Auto Body is now an integral part of the most advanced repair capable and efficient auto body repair network in the world. Adding to their credentials, D M Auto Body is officially recognized by Assured Performance, FCA, GM, Nissan, Infiniti, and Hyundai. To become Certified and officially recognized by the various Automakers, D M Auto Body passed the rigorous Cer-

tification process essential to help ensure a proper and safe repair of the new generation of advanced vehicles. Less than 5 percent of body shops across the nation

are able to meet the stringent requirements to become officially Certified and recognized. The Certified network is made up exclusively of best-in-class collision repair businesses that have met or

CARSTAR ARA Collision in Seattle Opens

CARSTAR Auto Body Repair Experts, North America’s largest Multi-Shop Operator Network of independently owned collision repair facilities, announced the opening of CARSTAR ARA Collision Seattle at 946 N. 127th St., Seattle, WA 98133. The CARSTAR location is co-owned by CARSTAR multi-store franchise owners Kevin

Parsons and Jeff Middleton. “We are thrilled to be opening our second CARSTAR location together,” said co-owner Parsons. “Jeff Middleton and I began our partnership in 2014 with a store in Kirkland and now we have expanded to a store together in Seattle. We have been opened for business since May 1 and it’s doing very well. The

IAA Announces Grand Opening of Portland, OR, Area Branch

Insurance Auto Auctions, Inc. (IAA), a business unit of KAR Auction Services and a leading live and live-online salvage auto auction company, announced the grand opening of IAA Portland West, its newest branch in Portland, OR. This marks IAA’s third facility in the state, with additional branches in Portland and Eugene. This new facility expands the overall capacity needed for this marketplace by nearly fifteen percent. “Increasing our presence in this growing market demonstrates IAA’s commitment to meet the expanding inventory needs of our buyers and sellers.” said John Kett, CEO and president, Insurance Auto Auctions, Inc. “We continuously evaluate opportunities in strategic locations and add resources and capacity where it best serves our customers.” As part of IAA’s continued commitment to better serving its buyers, the state-of-the-art facility includes large indoor bay space to accommodate the area’s frequent inclement weather. The facility also provides additional acreage and storage space in anticipation of acute inventory increases due to severe weather events. “We are very pleased to be part

of Portland’s continued growth,” said Carrie Preisinger, Portland West Branch Manager, IAA. “Our branch is looking forward to advancing the city’s economic development and working alongside other businesses to positively impact the community.” IAA Portland West is located at 10498 N Vancouver Way Portland, Ore. 97217. Weekly auctions will be held every Tuesday at 9:00 am. Learn more at IAA’s branch Information page. For a list of IAA’s 170+ locations in North America, please visit www.iaai.com/locations. For four decades, IAA has been dedicated to meeting and exceeding the needs of its global clients and giving back to the communities in which it operates. This philosophy of giving provides IAA’s more than 2,800 team members with opportunities to volunteer, mentor and financially support multiple global, national, and local charitable causes. This commitment is also reflected in IAA’s National Vehicle Donation division that, since 1994, has assisted not-for-profit organizations monetize donated vehicles to fund and support their missions.

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exceeded the stringent requirements of the Certification program. According to D M Auto Body Owner, Ruben Perez, “This certification supports our reputation for superior customer service serving our community. We are your neighbors and friends, so it is important to provide our customers with the peace of mind that their vehicles are being repaired correctly by highly trained professionals that care about them.” The Certification criteria is based upon auto manufacturer requirements. These are critical to ensure the vehicle fit, finish, durability, value and safety following an accident. As new model vehicles are being introduced that use light weight high strength materials

community has welcomed us and we are excited to provide quality repairs for the area.” The Seattle location makes eight CARSTAR stores between Parsons and Middleton. They each own three CARSTAR shops individually and two together—including CARSTAR Northwest Collision in Kirkland, WA.

and advanced technology, a proper repair according to manufacturer specification is even more important than ever to ensure the passenger safety and proper performance of the vehicle. Auto manufacturers want to ensure that consumers have the option of Certified Collision Repair wherever they live, work, or travel. “Consumers need the confidence and peace of mind to know their vehicle is repaired by a shop that has what it takes to ensure the vehicle safety. D M Auto Body is officially a Collision Care Provider™,” said Scott Biggs, CEO of Assured Performance Collision Care™. “They represent the standard by which all other body shops are measured.”

There are now 24 CARSTAR locations in the greater Seattle area to serve the region’s drivers. CARSTAR ARA Collision Seattle will provide comprehensive services from full auto collision repair, small dent and ding fixes, storm damage repair and paint jobs. For more information on CARSTAR visit www.carstar.com.

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 7

Senior More Comfortable with Cars than Books at Technical Careers High School in ID by Kevin Trevellyan, The Post Register

Classrooms and textbooks never appealed to Alex Perkes. The Technical Careers High School senior prefers working with his hands. Enrolled in his school’s auto body program, Perkes, 18, has had plenty of opportunities to show what he’s learned in skills competitions and employment at a nearby Iona Road shop. A painter, Perkes enjoys seeing the tangible products of his labor. “You see a wrecked car with a big impact on the door, then you see what it looks like after. Taking it from gray and ugly, then putting a nice coat of paint and some clear coat to make it look really nice,” he said. “I always take before and after pictures. It’s really satisfying to see what you’ve done.” Perkes has been interested in cars since he was a child. He attended Bonneville High School as a freshmen, then spent the next three years at Technical Careers, where he’s now student body vice president. The school features an auto body shop that mimics a commercial business: clients drop off cars and students write estimates, order parts, fix dents and paint. The program immediately caught Perkes’ attention.

“A lot of us don’t retain anything from reading a book,” he said. “If I went to Bonneville I’d have like a 2.5 GPA; I’d show up and leave every day. Here I’m engaged and active in the school.” Still, things didn’t always go well when Perkes began Technical Careers’ auto body program during his junior year.

Alex Perkes poses for a portrait at the Technical Careers High School on May 25. Credit: Taylor Carpenter

At first, Perkes thought he could paint anything. After practicing with a spray gun on dozens of flat, square metal panels, he realized that wasn’t the case. There were waves and striping in his paint where there should have been flat color. “I thought it was going to be impossible to find out how to make my paint not look like junk,” Perkes said.

Lake Tahoe Community College Student-Veteran Wins Car in Essay Contest

by Staff Reporter, Tahoe Daily Tribune

A Lake Tahoe Community College student-veteran received a “new” set of wheels recently. Amber Wade, a geology student at LTCC who spent four years in the Marine Corps, won a refurbished SUV thanks to a donation by State Farm and the efforts of Recycled Rides, a national group of volunteers who repair and donate vehicles to veterans and other individuals in need. All of LTCC’s student-veterans were invited to write an essay describing what owning a car would mean to them, and the staff of the school’s Veterans Resource Center selected Wade’s piece. Wade’s partner, LTCC alumni and Marine Corp veteran Nick Aguilar, was at the ceremony on May 26 to accept the prize on her behalf. The couple has a 14month-old daughter named Olive. “Amber was speechless when she found out,” said Aguilar, who works as a firefighter and EMT in El Dorado County. “Things like this don’t really happen to either of us.” “It’s definitely going to change things for the better,” continued Aguilar.

“I feel like these great people have reached out and helped a family that is in need, and we look forward to potentially giving back down the road. I know

Nick Aguilar accepts a refurbished vehicle, donated by State Farm and restored by volunteers, on behalf of his partner Amber Wade, a LTCC student and veteran, on Friday, May 26 Photo Credit: LTCC

Amber feels the same way. We are very thankful and appreciative.” Since the National Auto Body Council’s Recycled Rides program launched in 2007, more than 1,000 vehicles have been donated for repairs and ultimately given to deserving individuals and organizations throughout the country. We thank Tahoe Daily Tribune for reprint permission.

8 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

Eventually his instructor, Brad Herbst, urged him to slow down and return to basics. Perkes eventually became one of the hardest-working students Herbst taught in several decades. “If you aren’t making mistakes you aren’t learning. For him to make those and see what they were and correct them, that’s where he saw success,” said Herbst, who recently retired. “After he saw what the final product was supposed to look like, from that point on he tore it up. And that’s something that’s hard to come by: individuals who have that passion and desire to be the best and excel at what they do.” Perkes placed first in the Idaho SkillsUSA automotive painting competition last year, then placed second at the national competition in Louisville, Ky. This year he placed second at the state competition—“which is OK; it keeps you humble,”—and in March began working at current instructor Todd Smith’s auto body shop with people much more experienced than him. Despite placing high in several competitions, Perkes still gets nervous entering the paint booth, especially at Smith’s shop. “You’re working with thousands of dollars worth of materials and hours of labor. I’m the last person this car

goes to; if I mess something up, it’s on me,” he said. “I did a complete paint job the other day; that was the most stressful thing I’ve ever done. You’re crawling on the floor making sure you didn’t miss any spots.” Perkes will continue his technical education in a one-year program at Lincoln College of Technology in Denver. A full scholarship and $6,000 in tools won as a result of the skills competitions will ease the financial burden of college. Perkes hopes to continue painting for a few years after attending Lincoln. Eventually, he wants to earn a marketing degree and leave the paint booth for a management position at a dealership or paint company. “You get old fast painting because it’s hard on your body being around the chemicals all day,” Perkes said. “If I’m working at a dealership or paint company I can be around cars, paint and all that stuff, and be in an office advertising. That would be my dream job, still being around cars all day.” We thank The Post Register for reprint permission.

www.autobodynews.com

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 9

3rd Annual Texas Auto Body Trade Show: A Whole New Experience and That Ain’t No Bull by Chasidy Rae Sisk

On August 25–26, the Auto Body Association of Texas (ABAT) will host its 3rd Annual Texas Auto Body Trade Show at the Hurst Conference Center in Hurst, TX. Open to the nationwide collision repair industry, this year’s slogan promises “a whole new collision trade show experience, and That Ain’t No Bull.” In addition to the trade show featuring industry vendors, the event will

include a whole slew of educational opportunities. According to ABAT Executive Director Jill Tuggle, “Education is top priority for ABAT. In the business climate we are in today, with massive advancements in vehicle operation, it is becoming very challenging to stay ahead of the curve. We want to bring in high content presentations and the latest technology from the sources themselves so that we may equip our members to repair these vehicles safely.”

ABAT Hosts First Annual Skeet Shoot On May 25, the Auto Body Association of Texas (ABAT) hosted a Skeet Tournament at Elm Fork Shooting Sports in Dallas, TX. Open to all members of the collision repair industry, the fun networking event attracted ABAT members, non-member shops and their employees, jobbers and more. Teams of four competed at skeet shot stations during the tournament-

style, 100-clay sporting course. ABAT Executive Director Jill Tuggle

From 8AM-5PM on Friday, educational workshops will be offered with the expo floor opening from 6PM to 9PM. Workshops will continue on Saturday at 8AM-12PM with the expo open 1:30-5PM. ABAT anticipates having 60 exhibitor booths and over 300 attendees, and Tuggle notes, “We hope to also draw in many non-members shops who want to better their businesses and put safer cars on the road.” Tuggle adds, “The Grand Ball-

explains, “This event was held to bring awareness, camaraderie, and communication to ABAT and its members, as well as to allow our sponsors to interact with their customers in a laidback environment. The more interaction we can provide our members with, the more they can get to know ABAT’s fun networking events attracted local collision each other and communirepair professionals

10 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

room will include exhibitors from around the U.S., showcasing the latest in collision repair technology, new cars, products and equipment. In addition to the exhibits, we have selected an exciting lineup of presentations from well-known speakers like Mike Anderson. There will be an OEM panel discussion and break-out sessions for owners, managers, estimators and technicians. This event will focus on Education, Communication and Legislation but will also be FUN.

cate effectively. ABAT is all about communication, education, and legis-

Participants competed for great prizes

There will be a cocktail hour in the exhibit hall which has been historically popular. We have some other entertaining surprises up our sleeves too.” Those interested in attending the conference or participating as an exhibitor or sponsor can register at www .abat.us/2017/04/texas-auto-bodytrade-show-august-25-26/. Plenty of opportunities for exhibitors and sponsors are still avail-

lation. We cannot do any of those things alone. Plus, we like to have a little fun- and it’s Texas and we like to shoot guns.”

able. Exhibitors can book a 10’ by 10’ booth for just $1000, while companies interested in sponsoring the event have a variety of options. ABAT is still seeking sponsors for the Welcome Reception, TX association dinner, Friday box lunch and four refreshment breaks, as well as general sponsorships. Details about each level are available on their website. Tuggle believes the 2017 Texas

The top skeet shooter won a Browning rifle, and four runners up won Henry Golden Eagle .22 long rifles. Additional prizes were raffled off, including a Curado reel, a Shimano rod, Costa sunglasses, a bird hunting kit, a dent puller, four bottles of high-end whiskey, gift cards and much more. Tuggle adds, “We expected this event to be a fun alternative to the popular golf tournaABAT Executive Director Jill Tuggle believes it’s important for associations to plan networking ments that are hosted each events for their members. (l to r) Eric McKenzie, year within our industry. ABAT Board Member; Jill Tuggle, ABAT Executive With this being the inauguDirector; Dean Griffin, ABAT Board Member

Auto Body Trade Show will be an educational and fun experience for all attendees, providing needed training and plenty of networking opportunities. She notes, “All ABAT events are focused on bringing our industry together. Communication is the driving force behind what we do. When we can bring everyone together to hear the same message, we then have the power of unity and collaboration.

Each market has different shops who either specialize in or just happen to work on a lot of one type of car. When we can unite our shops, they feel more comfortable calling each other to ask for assistance. Couple that experience with the education they receive from ABAT all year long and now we are ahead of the curve. The end result is safe, quality repairs and shops that get paid for the work they perform.”

ward to next year.” Tuggle feels that it’s vital for ABAT to host these types of events because “We must come together as a local industry to better ourselves for the success of our shop owners and especially for ABAT members enjoyed the camaraderie at the First the safety of the consumer. Annual Skeet Shoot. (l to r) Kevin Jordan of Burl’s These events give the assoCollision Center, Michael Jordan of Burl’s Collision Center, Jon Dalton of Hance Paint & Body, Paul ciation an opportunity to Dalton of LKQ market our educational semral year, it was a great success. We inars that we offer our members to had an intimate crowd and an outeducate their staff.” pouring of great feedback. Many For more information about the participants are already looking forassociation, visit www.abat.us.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 11

CAA Says California Insurers Could Use Sneaky Political Tactics to Push AB 1679, Despite Delay Until 2018 by Ed Attanasio

too!

Non-Member shops need to know

A recent announcement from the California Autobody Association (CAA) gave body shops some hope, but that does not mean that shop owners in California can rest for even a minute, because the insurance industry isn’t slowing down on AB 1679. In a recent email, CAA Executive Director David McClune briefed its membership about the current state of AB 1679. “Good news! The Assembly Appropriations Committee has delayed consideration on AB 1679 until next year. However, we know the insurance industry may attempt another “gut and amend” in the Senate yet this year, skirting any public hearings or legislative deliberations in an attempt to get that same bad law passed. We need to prepare properly for those underhanded tactics. “We are still David against the Goliath Insurance Industry and whatever reincarnation AB 1679 may appear as next, and we need your help. We can win this battle, but only if every shop, each staff member, each employee, and every family member does their part... and we are going to make it easy for each and every one of you to be heard. Forward this email to anyone and everyone that can help! Especially Employees!

McClune then included the following letter in his email and urged CAA members to send it to Senate Insurance Committee Members and the Chair of Senate Appropriations Committee.

Continued from Cover

with liabilities exceeding 9.02 billion U.S. The Nikkei reported that a new company created under Key will purchase Takata operations for about $1.62 billion and continue supplying air bags, seat belts and other products, leaving liabilities behind in a separate entity. Also at stake is $850 million owed by the Japanese airbag system maker to major global automakers under a settlement agreed to earlier this year. Major global car manufacturers have expressed concern about the company filing for bankruptcy without a deal in place because of disruption it could cause to the production of replacement airbag inflators. More than 65% of 46.2 million recalled Takata airbag inflators in the United States have not been repaired. It is not clear how the filing will impact the pace of repairs but it is not likely to improve matters.

Takata Bankruptcy

Key was expected to acquire Takata assets as part of a restructuring in bankruptcy. Takata agreed in February to pay $1 billion in penalties to the Justice Department and plead guilty to wire fraud. However, 10 major automakers have taken on the the majority of the costs directly associated with its recall, reportedly totaling roughly $11.66 billion. Bloomberg reported that the timing of the Chapter 11 bankruptcy filing could change, according to their source, who asked not to be identified. The Nikkei, the world’s largest financial newspaper, reported earlier that Takata is expected to file for bankruptcy in Japan as early as this June,

www.autobodynews.com Don’t Miss the Weekly Industry NEWS Your Shop Needs.

The Senate Insurance Committee members:

Dear Senator, I am employed in the collision repair industry. AB 1679 will tighten the insurance industry’s grip over the auto repair process, weaken the only advocate (independent body shops) consumers have when dealing with their auto insurer, and cause cuts in employee pay & benefits, layoffs, and more. It is unfair and unreasonable. Simply put, AB 1679 threatens us and our livelihood and hurts consumers. A few big insurance companies want to lower our pay so they can “save consumers from higher premiums” and make even bigger profits. The Department of Insurance estimates the yearly premium cost would only be 20 cents. In the long run, the auto repair industry will become less competitive because the insurance companies will completely control it. And we all know what happens to costs, wages and con-

www.autobodynews.com

12 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

sumer protection when things become less competitive. AB 1679 also takes away rights of consumers to freely choose their repair shop by weakening the existing antisteering law. There is a reason that law was passed 14 years ago and that reason has not gone away. AB 1679 is anti-worker, anti-competitive, anti-small business, and anticonsumer. I URGE YOU TO VOTE NO ON AB 1679!

Please contact CAA Executive Director, Dave McClune at 916-557-8100 for more information. CAA Lobbyist Jack Molodanof wants everyone to know that even though AB 1679 was temporarily delayed for now, this is not the time to get complacent, because the battle is only beginning. “Don’t let up is what I want shops throughout the state to know,” he said. “It is likely that the insurance side is going to take another bill that is very similar to AB 1679 and jam it through the Senate. They will re-package it and try to do something to get it through the Senate, so we need to be ready for when that happens.” Why was the bill designated as a two-year bill and what does that mean, we asked Molodanof? “The new labor rate and anti-steering regulations de-

vised by Insurance Commissioner David Jones have only been in effect for a few months now, so maybe they said why the rush? They aren’t giving the regulations enough time to see if they even work. Now, the bill can’t be heard until early next year, but that does not mean anything to the body shops in this state, because we know that the insurers won’t relent.” The time to take action is now, Molodanof said. “We are still going to be sending out member alerts to keep everyone informed about AB 1679 and whatever else the insurance side is going to come up with,” Molodanof said. “Do not think that this buys us anytime, because it does not. We can’t fall asleep at the switch, because the insurance companies are not going to slow down.” If you’re a body shop owner or work in the collision industry in California, what can you do to help and defeat AB 1679 or whatever new bill will rear its ugly head? “We need to put on a full court press, because the other side will be doing the same,” Molodanof said. “Focus now on contacting and starting a dialog with the Senate Insurance Committee members and keeping the letters and phone calls coming. Call your local representatives now and let them know that this is not going to happen on our watch!”

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 13

UK’s Thatcham Research Calls for New Thinking and Approaches to Halt Spiralling Cost of Repair ● Repair storm brewing around increasing costs and complexity ● Vehicle manufacturers urged to engage with repair industry, to bring costs under control as average repair bills spiral by 32% over the last three years ● Advanced Driver Assistance Systems are impacting windscreen replacement, potentially increasing costs by 123% for certain new models—and affecting no-claims bonuses ● Bodyshop of the Future programme to bring insurers, repairers and carmakers together to address challenges

Thatcham Research in the U.K. is the motor insurers’ automotive research center a kind of analog to the IIHS in the US. Established by the insurance industry in 1969, the center’s main aim is to contain or reduce the cost of motor insurance claims whilst maintaining safety standards. Thatcham Research still occupies its unique position as the UK’s only ‘not for profit’ insurer funded research center. Whilst the original aims remain intact, the center is at the forefront of the latest vehicle technology research, spanning safety, security and repair. Thatcham Research is calling for action for vehicle manufacturers to urgently engage with the repair industry to halt spiralling costs. With the average repair bill rising by nearly 32% in the last three years, concerns are mounting around core repair challenges encompassing ADAS (Advanced Driver Assistance Systems), new materials and a lack of skills.

Coping with ADAS calibration Peter Shaw, Thatcham Research CEO, addressed automotive industry leaders at the Thatcham Research Repair Focus event on June 6, highlighting the issue of escalating repair costs as ADAS technologies become more prevalent. According to Shaw, “The average repair bill has risen by 32% over the last three years. This has been driven by the reparability of parts such as headlights, increasing complexity of vehicle materials and technology and the rising cost of spare parts, influenced to some extent by currency fluctuations. Vehicle manufacturers must bring these costs under control. “The cost for windscreen mounted ADAS calibration spans from 0 to $900 U.S. across car manufacturers and often across similar sensors and technology.

This is unacceptable. Unless urgently addressed, these costs will challenge the current model of a no-claims bonus being unaffected by a windscreen repair or replacement.” The average cost to replace a windscreen increases significantly with the fitment of ADAS technologies such as Autonomous Emergency Braking. For example, a windscreen replacement for a Ford Focus with ADAS can increase by 123%, when estimated calibration costs are factored in. Costs for a VW Golf can increase by 78%. Thatcham Research estimates that there are over two million cars on the roads today with standard-fit AEB systems (equating to 5% of the cars in use in the UK), and with the systems set to be more prevalent over coming years, this issue will only continue to grow.

Lifting the hood on intrusive repairs The increase in different material specification in new cars was another Repair Focus hot topic. Thomas Hudd, Operations Manager at the Thatcham Research Repair Technology Centre said, “The rising use of a mix of new materials in modern cars is leading to more intrusive repairs. This means that where we were once able to partially replace a panel, we now need to replace it in its entirety. This is especially true of aluminium panels, which are challenging the repair industry as it is stiffer and harder to reshape than steel.”

The Top 5 Repair Challenges 1. ADAS systems: maintenance, repair, costs, time and resource required for calibration 2. Complexity: new skills for Vehicle Damage Assessors and engineer assessors, as multiple material types, as well as ADAS and hybrid powertrains, become a regular feature of volume production vehicle construction 3. Paint and panels: new technologies such as textured paint, or crystal finishes, and refinish on multiple materials. Panel repair is increasing in cost and complexity too – as a result of pricing anomalies, missing repair data, intrusive repair methods and lack of correct stock 4. Headlights: LED and LED Matrix, Laser and soon OLED lighting continue to gain prominence, but often cost considerably more than a

14 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

to aid long term retention. This is a key focus of Thatcham’s new Leadership and management foundation programme, delivered in partnership with BSG, which is launching today at Repair Focus.” To learn more about the Thatcham Research Bodyshop of the Future program, visit: www.thatcham.org Thatcham Research is the independent voice of automotive safety & repair, advising motorists, insurers and vehicle manufacturers to help reduce accident frequency, severity and costs and to realise the vision of ‘Safer cars, fewer crashes’. As well as its world-leading crash and track research, Thatcham Research tests and accredits crash repair parts, vehicle repair technicians, and a number of other products and services within the collision repair industry for insurers, motor manufacturers, equipment manufacturers and suppliers. A founder member of the international Research Council for Automobile Repairs (RCAR), Thatcham Research has also been a member of the European New Car Assessment Program (Euro NCAP) since 2004.

bulb headlamp and some may be impossible to repair rather than replace 5. Electrified PowerTrains: diagnosis of electrified powertrains and electrical architecture. The diverse range of technologies and tools required are not acceptable investments to expect of a bodyshop

Bodyshop of the Future All of this complexity creates a further challenge for UK bodyshops today—attracting high caliber individuals, with the right skillsets, who see the repair industry as a career destination. “There is still much to be done to ensure that the right people choose a career in this industry,” comments Dean Lander, head of repair sector services at Thatcham Research. “Repairers need a new set of skills to meet the demands of the Bodyshop of the Future. Technical expertise in diagnostics and calibration has become as vital as expertise in repairing and refinishing the physical hardware of a car. We must portray a fresh image to recruit the right people and help them to develop these new skills for bodyshops, as well as developing leadership skills

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Continued from Cover

NACE Automechanika

https://naceautomechanika2017.sched .com/

Address: McCormick Place West Hall 2301 S. King Drive • Chicago, Illinois 60616

With more than 600 exhibiting companies and 10,000 attendees, NACE Automechanika Chicago is set to lead the industry in a showcase of the latest technology covering the entire spectrum of the automotive aftermarket industry. At this leading event for automotive service and collision repair, automotive aftermarket manufacturers present their products and innovations to a vast audience of shop owners, technicians and distributors. Check out the many special events happening at the 2017 event this July 26 – 29 at McCormick Place, West Hall.

NETWORK AND GET TRAINED AT THE SAME TIME

THE 16th ANNUAL COLLISION REPAIR EDUCATION FOUNDATION (CREF) GOLF FUNDRAISER will be held on Monday, July 24, at Harborside International Golf Course, located just minutes from the Chicago Loop. It’s the only facility with two of Golfweek magazine’s “Best Courses You Can Play in Illinois” awards. Join the Foundation for a great time and help raise additional funds for a worthy cause. For more information, visit collisioneducationfoundation.org.

THE COLLISION INDUSTRY CONFERENCE (CIC) will take place from 8:30 AM - 5:30 PM on Tuesday, July 25, at the Hyatt Regency McCormick Place, with a reception to follow. (CIC) is a forum comprised of participants from all industry segments for the expressed purpose of discussing and exploring the challenges they share. The conference is open to all industry professionals including repairers, insurers, paint and material companies, equipment manufacturers, vehicle manufacturers, data providers or representatives of trade associations. There will be an “open mic” time for participants to address their concerns.

ADVANCED TECHNOLOGY & DIAGNOSTIC REPAIR FORUM will be presented by the Automotive Service Association (ASA). The forum will focus on new technology including sensors, cameras, accident avoidance systems, wireless communications and more. If you are involved in the collision repair industry including repairers, executive and management staff from MSOs, networks and franchisors, insurance professionals and technology providers – this is for you. Join us on Wednesday, July 26, 8:00 AM – 12:00 PM at the Hyatt Regency McCormick Place.

MSO SYMPOSIUM allows you to get in on the discussion of the issues facing the industry. Happening on Wednesday, July 26, from 12:00 PM to 5:30 PM at the host hotel, Hyatt Regency McCormick Place.

THE BUSINESS OUTLOOK CONFERENCE is scheduled for two half-day sessions on Wednesday and Thursday. This is another opportunity for distributors and others to receive information, insight and awareness of the economy, legislation, telematics and technology and their impact on the au-

tomotive industry and market. CONNECT AFTER HOURS

INTERNATIONAL NIGHT: Headquartered in Chicago, the German American Chamber of Commerce of the Midwest will host an International Night reception at 6:00 PM on Wednesday, July 26. The reception will allow attendees to meet members of the international business community and expand their networks by connecting with more than 100 of the most innovative minds of the industry.

A NIGHT AT THE MUSEUM: A networking event for attendees and exhibitors with free food, open bars, music and cars. From 6:30 - 10:30 PM on Thursday, July 27, at the Field Museum. The museum’s exhibits will be open to all attendees.

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Honda Targeting Introduction of Level 4 Automated Driving Capability by 2025 Honda announced that it is targeting the year 2025 for the introduction of vehicles with highly-automated driving capability in most driving situations (SAE Level 4). This new goal builds upon earlier-announced plans for Honda and Acura vehicles to have highly-automated freeway driving capability (SAE Level 3) by 2020. The company said these are critical steps in Honda’s commitment to contribute to a collision-free society. The announcement was made by Honda Motor Co., Ltd. President & CEO Takahiro Hachigo at a media briefing held at Honda R&D Co., Ltd. in Japan, where media were able to test drive Honda automated vehicle technologies in several complex driving scenarios, including sys-

tems with advanced artificial intelligence (AI). A video of both driving tests can be viewed at Honda.us/Level4AD. “We will strive to achieve the technological establishment of Level 4 automated driving for personal car use by around 2025,” said Hachigo. “We are striving to provide our customers with a sense of confidence and trust by offering automated driving that will keep vehicles away from any dangerous situation and that will not make people around the vehicle feel unsafe.” The SAE defines automated driving based on six levels of capability, from zero to five. SAE Level 4 or “high automation” means the vehicle can handle all driving tasks in most driving situa-

tions, with possible exceptions including inclement weather conditions or unusual driving environments, where the driver would be required to resume control. Honda is rapidly advancing its deployment of advanced safety and driverassistive technologies in Honda and Acura vehicles on the road today, through its Honda Sensing® and AcuraWatch™ suite of features, which serve as both a perceptual and technological bridge to the highly-automated vehicles the future. Nearly a half-million Honda and Acura vehicles on U.S. roads today are equipped with these technologies, which include autonomous emergency braking (AEB) via the Collision Mitigation Braking System (CMBS™), Lane

Keeping Assist (LKAS), Road Departure Mitigation (RDM) and Adaptive Cruise Control (ACC). Honda Sensing® was first introduced on the 2015 Honda CR-V and has since been applied to the Honda Civic, Pilot SUV, Ridgeline pickup and justlaunched 2018 Odyssey minivan. AcuraWatch™ was first introduced on the 2015 Acura RL Sedan and is now available on the RDX five-passenger SUV and standard on the MDX three-row SUV and 2018 Acura TLX sedan. Today, approximately one-third of new Honda models sold are equipped with Honda Sensing®, while upwards of 70 percent of Acura sales are of vehicles equipped with AcuraWatch™.

Nissan to Offer Standard Automatic Emergency Braking (AEB) on One M Vehicles in 2018 Model Year Nissan announced that it is making Automatic Emergency Braking (AEB) standard on a projected one million vehicles sold in the United States for model year 2018, including seven of the company’s most popular models— Rogue/Rogue Sport, Altima, Murano, LEAF, Pathfinder, Maxima and Sentra (except manual transmission-equipped and all NISMO versions). Automatic Emergency Braking (AEB) (previously known as Forward

Emergency Braking) uses radar technology to monitor a vehicle’s proximity to the vehicle ahead, giving the driver audible and visual display warnings to help the driver reduce the vehicle’s speed if a potential frontal collision is detected. If the driver fails to respond, the AEB system can apply the brakes, helping the driver to avoid the collision or reduce the speed of impact if it is unavoidable. According to National Highway Traffic Safety Administration (NHTSA) data,

one-third of all police-reported crashes involve a rear-end collision (2013 study). The NHTSA also reports that systems such as AEB can help reduce injury insurance claims by as much as 35 percent (2015 report). “The big news here is that we’re making AEB standard across all grades of our best-selling models,” said Michael Bunce, vice president, Product Planning, Nissan North America, Inc. “This increased AEB availability is part of our on-

going commitment to help reduce fatalities while realizing our comprehensive vision of Nissan Intelligent Mobility.” The projected 2018 AEB sales are more than double that of previous model years. It will be offered as standard equipment on 2018 Rogue and Rogue Sport, Altima, Murano, LEAF, Pathfinder, Maxima and Sentra (except manual transmissionequipped and all NISMO versions) models, as well as select Armada models.

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Shop Strategies

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications. She can be reached at sphillips.autobodynews@gmail.com.

83-Year-Old Chicago Body Shop Invests in Best Training & Equipment to Exceed Customer & Employee Expectations with Stacey Phillips

by Stacey Phillips

In 1934, Ivan Goodmonson established Erie LaSalle Body Shop in Chicago, Illinois. As the son of farmers in Minnesota, he decided to come to the big city of Chicago to pursue a career in aviation. After hopping a freight train, he arrived looking for em-

Erie LaSalle Body Shop was established in Chicago, Illinois, in 1934

ployment and began working on cars. It wasn’t long before he became well known as a good car mechanic. In those days, they tuned cars by ear,” said Bob Gottfred, Goodmonson’s stepson and the current owner of Erie LaSalle Body Shop. “He had a very good ear and did a good job.” When Goodmonson decided to open a collision repair shop, he had three stalls in the back alley of a building. Eventually, he bought the building from the landlord and continued to expand his business. Erie LaSalle currently operates two locations in downtown Chicago and the Little Village neighborhood on the south side Chicago. Autobody News talked to Bob Gottfred about the growing family business, which he said is the longest continuously-owned auto body repair service of its kind in Chicago and Illinois.

Congratulations on being named one of the best body shops in the Chicago, Illinois, area by Expertise.com. What do you attribute your success to? Continuing education for our A: employees is number one. We focus on factory training and the OEM

certifications we qualify for. We constantly are sending people to classes covering production, management and estimating. We try not to miss a seminar that we think is helpful to our em-

ployees. It is also very important to find the right fit of employees who get along with each other and are not too thinskinned so they can all work together as a team. My sons, Jay and Jim, are great general managers of our stores. They promote a team concept among our 30 technicians and a family-type of atmosphere. We’ve done this all as a team and I love coming to work every day. My sons and I feel that if we offer employees the best in equipment and training, we expect the best from them. Our mission is to minimize any disruption in our customers’ lives due to their automobile accidents. The goal is to perform quality, state-of-the-art repairs to both our Chicago and suburban customers while providing intelligent, professional service. We really do respect our customers and our employees, in the same manner. There are virtually no limits in which we will go to satisfy and exceed our customers’ expectations. For example, we offer complimentary shuttle service, free ve-

Owner Bob Gottfred said they utilize the most advanced technology available to guarantee the highest quality repair

hicle pick up and delivery, extended and weekend hours for convenience and a lifetime warranty. We reinvest our profits in the necessary training and equipment in order to provide our customers the very finest repairs in the most timely manner. We feel this will ensure our continued growth and perpetuity of our business and continued service to our community.

How have you incorporated statein your business? Q: of-technology

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Our company uses computerA: ized estimating and production processing, digital imaging, and the

latest spray paint technology to ensure a high-quality final product. We believe in utilizing the most advanced technology available to guarantee the highest quality repair. When we attended the NACE trade show in 2015, we were interested in learning about gas catalytic drying and the lean processing system. We learned

Marco Melone and Stephanie Martinez, customer service representatives (CSRs) at Erie LaSalle Body Shop

about a company called Symach. We happened to have a completely empty 12,000-square-foot warehouse that was used as an old truck repair place. I thought the company’s technology was interesting and I went to Italy to learn more. I liked the way it ran and we signed a deal at the beginning of January 2016. Since then, Symach has installed the sophisticated computerized equipment. The process is very streamlined. In a variable world of auto collision, it’s pretty cool the way we can run a job through and maximize productivity.

Can you tell us about the shop’s Q: “Express Repair Process?” Express repair is a mindset. It’s A: more of a lean processing system than it is the machinery and equipSee Best Training, Page 22

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Best Training

ment. The express repairs we have been doing involve pre-ordering parts, pre-painting them and getting them all ready so the customer can come in and wait for a repair. Now with our new technology, we don’t have to pre-paint them and can turn around cars in one to two days where it would normally take three or four.

After being in operation for 83 years, how have some of the Q: changes in the industry impacted your

body shop and what will it take to be successful in the future?

I’ve been in the business for over 40 years and I’ve seen the transition from having old, standard cars with big chrome bumpers to the sleek unibody cars of today. Technology is changing exponentially in vehicles and going forward, that is what is going to take us to the next level. I believe it’s going to take an investment in training and proper scan tools to ensure that customers are put on the road safely with no codes com-

ing up in the car that could perhaps put them in a dangerous situation. It’s also going to take training for our technicians to properly repair vehicles and educating our customers so they fully understand what it takes to fix a car today. It’s not as cut and dry as it used to be. If you get a bump in your rear bumper, technically the OEMs say you are supposed to pre-scan and post-scan the vehicle to make sure all codes are clear. Those are things that haven’t been done in the past and right now there are only a handful of shops doing it.

How has it been helpful for Q: your business to get involved in associations both in the community and professionally?

I do very little advertising outA: side of networking and associations. I actually went to a networking

event last night. You meet great people and great leaders in the community. It’s nice to talk to people, get to know them and engage with them. I can hear their stories and they’ll hear mine. We belong to many professional associations including Assured Per-

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formance Network, Automotive Service Association (ASA), Inner Industry Conference on Auto Collision Repair (I-CAR), Society of Collision Repair Specialists (SCRS), the Collision Repair Education Foundation (CREF) and local state associations such as the Association of Automotive Service Professionals of Illinois (AASPI). We have been part of Mike Anderson’s MSO business council group with Axalta for the last several years and attend conferences across the United States with best-of-class shops. In addition, we are members of civic associations including several Chamber of Commerce organizations, and the River North Business Association that named us Business of the Year. When you serve your community well, people learn about it. Not only will they respect you, but they will think of you. The idea is when someone has a mishap with their car I want them to think of me first.

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SATA® TrueSunTM LED Lamp: the Daylight Solution

The selection of the correct color shade for refinishing a vehicle often requires a source of light that preferably reproduces the entire color range of visible light (daylight) as accurately as possible. The SATA® trueSunTM LED lamp, which was especially designed for this purpose, allows a quick and precise professional color shade evaluation and identification within the paint shop, according to the company. Accurate color retrieval, correct application of metallic paints or special-effect materials, and detecting critical mottling or other surface imperfections are playing a crucial role in the refinish application process. The SATA® trueSunTM LED lamp was designed to allow the almost perfect reproduction of daylight. This enables reliable color identification inside the shop and helps prevent expensive mistakes and rework costs. The trueSun’s light intensity can be adjusted into nine different positions depending on the color. “The SATA® trueSunTM lamp enables the painter to retrieve colors very quickly and precisely as well as evaluate the quality of the painted surface at the end of the application process with a secure and exact methodology,” the company said.

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 23

New TX Bill Aims to Get More Driverless Cars on Texas Roads probably closer than I was comfortable with,” he explained. A Lincoln MKZ glides easily through Southwest Research doesn’t test a tight figure eight of cones on South- on public roads, despite Texas not havwest Research Institute’s San Antonio ing laws explicitly barring it. Campus. Texas currently has no regulations Researcher Mark Alban isn’t drivaround testing and operating driverless ing, though behind the wheel, as the car cars, but on Tuesday state lawmakers completes its route. sent a bill to Governor Abbott for his “We can pretty much drive any- signature. where the computer can plot a path” If signed, Texas would become the says engineer Kris Kozak. 16th state to adopt such a framework Kozak uses a mounted tablet to says Ginger Goodin, director of the select where the car should go and the Transportation Policy Research Center car accelerates towards the cones once at Texas A&M’s Transportation Instiagain. tute. Kozak and Alban created the tech“I think what it does is it provides nology that allows us to move safely some definitions for these systems,” without a driver. It’s called Ranger. It she says. uses a downward facing camera to finGoodin says that while Texas doesn’t bar driverless cars, there are a number of ambiguities. For instance, in a car where no one is driving, who is ticketed for an infraction? Under pending legislation, “so this is just saying that the automated driving system and the owner of that system would be responsible,” Goodin exKris Kozak sets where the car will go on this tablet. plains. Credit: Lennon Maldonado So, present or not, if your gerprint the road and uses the images name is on the title, you get the ticket. to determine where it is. Kozak says Goodin calls the Texas bill busiRanger drives more precisely than any ness friendly and there are less costs, other device. He says the car knows and regulations than other states. Driwhere it is within two centimeters. verless car developers aren’t required The technology can run pre- to get special permits, mark test vehimapped routes really well, but would cles, or get insurance beyond what a need additional technology to help traditional car requires. with situational awareness. “We’ve seen states that through A pedestrian walking alongside regulatory action have driven innovathe campus road causes Mark Alban tion out of their state,” says State Sento take back control of the car. ator Kelly Hancock who wrote the “We would have passed them, but bill. by Paul Flahive, Texas Public Radio

What we want to do here is establish a statute that addresses the new technologies, that does not impede or inhibit the innovation,” Hancock continues. It isn’t clear that more regulations mean less interest from developers. California has more regulations and

A Lincoln MKZ equipped with patented Ranger technology navigates cones at Southwest Research. Credit: Lennon Maldonado

more companies testing cars than Texas. It requires cars be marked, that companies carry additional insurance, that all companies have a state permit, and more. Uber moved its self-driving program to Arizona after clashing with California regulators, only to return three months later. More than 20 other companies test in California.

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CARSTAR Adds Collision Repair Center to Network in Houston CARSTAR Auto Body Repair Experts announced the opening of CARSTAR Champions at 13650

Schroeder Rd., in Houston, Texas. The new franchise is owned and operated by Kevin and Blanca Williams.

“Joining CARSTAR was an easy business decision for us,” said co-owner Kevin Williams. “We can now leverage the benefits of being part of the CARSTAR family and give our customers the service and attention that they would expect from an independent shop. CARSTAR provides access to networks, training and partnerships to ensure we provide quality and affordable repairs to our customers.”

24 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

Despite Tesla’s claim of a self-driving car out this year, several companies are aiming for 2020 and beyond for a production model. University of South Carolina Assistant Professor of Law Bryant Walker Smith says there are a lot of miles before companies can claim their automated cars are as safe as conventional ones. His back-of-the-envelope estimate, “You would have to drive 300 hundred million miles of representative driving without any fatalities. That’s a lot of driving” Regardless of the miles and the obstacles, Walker Smith believes autonomous cars are a good way to address the nearly 100 deaths per day on U.S. roadways from human error. “We should be concerned about automated driving. We should be terrified about conventional driving,” he stressed. So in the near future, under the legislation likely to become law, you could be riding next to a driverless car, and wouldn’t know it. We thank Paul Flahive at Texas Public Radio for reprint permission.

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Restrictions

panies have already begun to lobby against the bill,” he said, urging ABPA members to contact their members of Congress. Norwind was asked if there is added pressure this year given that one key sponsor of the legislation, 83-yearold Sen. Orrin Hatch (R.-Utah), may retire next year, and that another, Rep. Darrell Issa (R.-Calif.), only narrowly won reelection last year. “Even aside from whether or not those guys will return to Congress, we do feel pressure to move this, no question about that,” Nordwind said. “It’s an added element that our sponsors may not be with us in the next Congress. We’re moving as if we have no more time left. This is our Congress.” Despite millions of dollars in donations to the Quality Parts Coalition from its 80 members (which includes insurance companies, LKQ Corp., and other manufacturers and distributors of non-OEM parts), the proposed legislation in the 2015-16 Congressional session failed to pick up more than two dozen other lawmaker sponsors, though it did receive a committee hearing in February of 2016. Also speaking at the ABPA event was Ray Colas of LKQ Corporation’s government affairs department. He discussed various efforts this year within state legislatures to either tighten or loosen restrictions on the use of nonOEM parts for insurance claims. Perhaps not surprisingly, Colas’ perspective on some the legislation different significantly from those representing collision repairers. Just a week prior to the ABPA event, for example, Aaron Schulenburg of the Society of Collision Repair Specialists questioned legislation proposed in Arkansas earlier this year that would have overturned that state’s limits on the use of non-OEM parts without the written consent of the vehicle owner. “It’s concerning that there are lobbying efforts to repeal transparency to the consumer,” Schulenburg said. “Anything that reduces [consumer disclosure] should be concerning to all of us in the industry, no matter what segment you’re in.” But in Colas’ presentation to the ABPA, he said the Arkansas law was targeted because it was among the most restrictive limits on non-OEM

parts use in the country. owns a dealership,” Colas said. “So all “We’re always on the defensive in the members looked to him as the indifferent states to protect our industry dustry expert. He again provided misfrom restrictive legislation,” Colas said. information, saying how our parts are “But this year we thought that unsafe, and how we need to we’d actually play on the ofpreserve the warranties on fensive side.” these vehicles.” He argued that it makes Colas said the Arkansas no sense that Arkansas law bill was pulled in order to limits the use of non-OEM keep it alive, and supporters parts on vehicles still under are asking the state’s Attorthe manufacturer’s warranty ney General to conduct a Ray Colas of LKQ given that the insurance pol- Corp.’s government one-year survey into any conicy, not the vehicle warranty, affairs department sumer complaints related to determines what crash parts will be parts over the last three years. used to repair the vehicle. “We know there aren’t any, as it “That [argument] worked for us in applies to accident, injury or death,” the Senate [which passed the repeal], Colas said. The study results are to be but once it got to the House, there’s a reported to the legislature and Goverranking member on the committee who nor, he said, “so that a decision can be

26 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

made then by a governing body as to whether or not these parts should continue to be restricted.” Arkansas isn’t the only state where LKQ Corporation has supported legislation this year to loosen restrictions on non-OEM parts use. Colas said LKQ pushed for bills in Tennessee and West Virginia this year that would allow for fewer limits on the use of non-OEM parts. Like the Arkansas bill, the West Virginia bill is dead, Colas said, and with Tennessee “now the [auto] manufacturer mecca of the United States…the chance of us passing [that legislation] is slim.” But Colas said LKQ likely will follow the same path in Tennessee and West Virginia that it has in Arkansas: asking those states’ attorneys general or

insurance commissioners to conduct studies into whether use of non-OEM parts has led to accidents, injuries or deaths, and “then report back to leadership in that state…whether or not these parts should be restricted.” Colas said after meeting with a New York lawmaker who introduced a bill this year that would require that vehicle owners provide a written signature consenting to the parts that will be used in the repair of their vehicle, that lawmaker “has no interest in moving the bill.” But later in his ABPA presentation Colas also said, “We have no problem with making sure the consumer is aware of the type of parts being used for repairing their vehicle.” In Wyoming, Colas said, the Department of Insurance is proposing a change to its 1988 regulations regarding the use of non-OEM parts. Those regulations currently prohibit insurers from requiring the use of any such parts unless the parts are equal in quality to OEM “in terms of fit and performance,” and unless the consumer is notified that “he or she is not required to accept non-OEM parts” and consents to their use in writing. The Wyoming Department of Insurance has proposed an addition to the

regulation that states, “No insurer shall directly or indirectly require the consumer to pay any difference in price if the consumer elects to use OEM parts in the repair of the vehicle.” LKQ’s Colas said this is something his company is opposing. “If you incentivize that consumer by telling them whether you choose OEM or aftermarket, there’s no cost impact to you, why would they ever choose an aftermarket part, if it’s essentially going to be for the same price,” Colas said. “We’re telling [regulators] that you’re effectively eliminating the use of aftermarket parts if you adopt such language. So we are in a battle there in the state of Wyoming...It is a threat to our industry in that state.”

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network bulletin (www.CrashNetwork.com). He can be contacted by email at john@Crash Network.com.

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Supreme Court

patent,” said Bill Hanvey, president and CEO, Auto Care Association. If upheld, the Federal Circuit decision would have provided patent holders with extensive power over how consumers repair and maintain the vehicles that they own. Understanding this impact, Chief Justice Roberts used the following analogy in the Supreme Court ruling: “Take a shop that restores and sells used cars. The business works because the shop can rest assured that, so long as those bringing in the cars own them, the shop is free to repair and resell those vehicles. That smooth flow of commerce would sputter if companies that make the thousands of parts that go into a vehicle could keep

their patent rights after the first sale. Those companies might, for instance, restrict resale rights and sue the shop owner for patent infringement. And even if they refrained from imposing such restrictions, the very threat of patent liability would force the shop to invest in efforts to protect itself from hidden lawsuits. Either way, extending the patent rights beyond the first sale would clog the channels of commerce, with little benefit from the extra control that the patentees retain. And advances in technology, along with increasingly complex supply chains, magnify the problem.” “This important decision is clearly a victory for the consumer and for the independent auto care industry, which provides motorists with an affordable, convenient and effective alternative to the vehicle manufacturers’ parts and service network,” said Hanvey.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 27

Canada’s Craftsman Collision MSO: “There’s a What Living in this Car?” Craftsman Collision, the largest private, family-owned and operated auto body and collision repair chain in Canada is celebrating its 40th anniversary and 40 locations employing over 600 this year including locations in China and a single US location, in Long Beach, CA. The company has received numerous awards and accolades including a Consumer Choice Award, a Best of Vancouver ‘Best Auto Body Repair Shop’ 8 years in a row and Best of the City for 2016. Weird and wonderful moments abound in any upstart organization, and after 40 years and literally millions of customers, Craftsman Collision has certainly had its share. Since opening on Vancouver’s Cambie Street bridge area in 1977, Craftsman has experienced

Craftsman Collision began with this shop on Cambie Street in Vancouver, purchased by Bill Hatswell in 1977. The Craftsman chain has grown to 40 locations, making it the largest privately owned collision repair business in Canada

everything from fires to a missing promotional blimp to… well, a cheetah squatting in one of their courtesy cars. That’s right, a cheetah. For whatever reason, a customer who performed as an exotic dancer with her pet cheetah allowed the wildcat to take up residence in one of Craftsman’s customer replacement vehicles (formerly known as ‘courtesy cars’)—turning a formerly pristine interior into a tangled mess of fabric, foam and wires garnished with the stench of feral sweat and excrement. Then there was the not-too-brilliant customer who made a large unauthorized withdrawal from an unsuspecting bank on Main Street using a Craftsman courtesy vehicle emblazoned with the distinctive red, white and blue Craftsman logo as a getaway vehicle. It didn’t take long for the Vancouver police to track him down and haul him in. And that car wasn’t even the first Craftsman car used in a bank job, recalls company Chief Operating Officer Rick Hatswell (son of founder and owner Bill Hatswell). One of them had to be shipped back to Vancouver from Knoxville, TN. As you might expect from a

bodyshop chain marked by consistent and successful expansion to 40 locations in three countries (including China),

Anybody seen a missing blimp? That was the question asked by major media in 2006 when this 20-foot blimp promoting Craftsman’s Bag A Jag contest was swept away in a windstorm, never to be seen again

Craftsman is generally a very buttoneddown operation. So it was genuine news, one windy day in 2006, when Craftsman’s advertising blimp was found missing from its Maple Ridge shop on Lougheed Highway. Arriving to open in the morning, the shop manager was shocked to find only half of a frayed rope where the 20-foot, helium-filled behemoth had been anchored. Craftsman head office immediately issued a press release offering $1000 reward for its safe return, but despite widespread exposure in the major papers and on the 6:00 TV news that night, the blimp was never found, and the reward never claimed. On another bad weather day in December, 1986, a gust of wind took out some of the roof supports at Craftsman’s Main Street location. The heavy roof overhang landed right on top of Bill Hatswell’s Jaguar XJS parked in front, totalling the nearly new vehicle.

No repair estimate was needed when a windstorm blew the roof off head office and onto Craftsman owner Bill Hatswell’s brand new Jaguar XJS. The car was a write-off

Over the years, Craftsman has given away several news cars in promotions. In Craftsman’s 2005 Take a Spin contest, the winner of a new Mini (apparently a rodeo fan) was delighted with her prize, but asked for one custom modification: full-size, 3-D Texasstyle bull horns. The job required a grimacing Craftsman body technician to take a drill and welding equipment to the Mini’s virgin hood to mount the

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two giant fibreglass appendages. Expecting the unexpected is part of what keeps collision repair interesting to founder and still-owner and president Bill Hatswell, even after 40 years. And it must be said that today’s customers expect a much loftier level of service than they would have received 40 years ago—thanks in large part to Hatswell’s pioneering efforts. He is widely recognized in Western Canada for taking the industry from rag-tag storefronts thick with cigarette smoke and pin-up calendars to the clean, friendly, shirt-and-tie environments that are pretty much the norm in bodyshops today. Craftsman employs more than 600 staff under the banners of Craftsman Collision and Distinctive Auto Works, managed by professionals and tooled with equipment that would have seemed like science fiction 40 years ago. Included are antistatic surface preparation devices to and heated-nitrogen spray painting and computer-guided frame straightening systems. Most employees participate in a generous array of company-sponsored social events: annual boat cruises, golf tournaments, ski trips, family days and gala Christ-

mas parties at premium venues including, for employees working in BC’s Lower Mainland, the swanky Pan Pacific Hotel ballroom. “Employees who genuinely enjoy themselves on social outings bring a

Craftsman’s 2005 Take A Spin Contest winner was thrilled with her vehicle, requiring only the simple addition of Texas longhorns mounted onto the hood (illustrated above) to make her prize complete

greater sense of caring to the workplace, to one another and to customers, and to doing a better job,” says Bill Hatswell. “By continually aiming to create a work environment that feels like one big, happy family, we set new sales records every year, and keep winning all the top consumer awards.” Also playing a pivotal role in See Craftsman Collision, Page 38

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Auto Care Association: Will Vehicle Manufacturers Comply with Right to Repair Requirements? The Auto Care Association and Coalition for Auto Repair Equality (CARE) expressed concern as to whether or not all vehicle manufacturers will be in compliance with new Right to Repair requirements that will take effect for 2018 and later model year vehicles. The statement came at a hearing being held at the Massachusetts State House by the Joint Committee on Consumer Protection and Professional Licensure to determine if car companies were in compliance with the first-in-the-nation law requiring that vehicle manufacturers make available, at a fair and reasonable price, the same service information, tools and software that they provide their franchised dealers. Aaron Lowe, senior vice president, government and regulatory affairs, Auto Care Association, who testified on behalf of the association and CARE, said, “Many car companies are doing a ‘good job’ in meeting the current Massachusetts Right to Repair requirements. However, new requirements will be taking effect for MY 2018 that will mandate vehicle manufacturers make all of their diagnostic and repair software available from the cloud and inter-

face with the vehicle using a device meeting industry J2534 or ISO22900 industry standards.” In late January, both groups sent letters to the manufacturers requesting information as to whether they would be in compliance with MY 2018 requirements. Lowe testified that the association only received 10 responses to the letter stating that they would be in compliance. “I want to be clear that while we are not implying that the eight remaining companies are not in compliance, with the model introductions a month away, we are concerned by their lack of response despite our multiple attempts to reach them,” said Lowe. The Auto Care Association and CARE testimony also pointed out that the two groups had not received any response from Tesla. “While we have a lot of respect for the technological innovations spearheaded by Tesla, I want to take this opportunity to publicly ask Tesla to take action to ensure that their customers are not forced to patronize the small number of repair facilities for repair and maintenance of their expensive vehicles,” said Lowe. Lowe also focused on Right to

Repair requirements for heavy-duty vehicles more than 14,000 pounds. “Unlike the light-duty manufacturers, compliance reports we have received have led us to the conclusion that some companies in the heavy-duty industry do not appear to be taking these commitments seriously. We therefore request that this committee amend this legislation to include the heavy-duty industry in the Right to Repair compliance study,” said Lowe. Finally, the associations highlighted the fact that late model vehicles are transmitting an extensive amount of data regarding their health, performance, geolocation, mileage and safety status only to the vehicle manufacturers. “Most car owners are unaware of the amount of vehicle data being transmitted to the vehicle manufac-

turer or how it might impact their repair choices,” Lowe said. “While telematics is not currently part of the Right to Repair legislation, we believe that it is critical that car manufacturers provide more transparency to their customers regarding the telematics systems on their vehicle and that they provide control to the car owners regarding how, and to whom, the data produced by their vehicle is shared. While not everything is perfect, the forward-thinking actions of this legislature and of the people of Massachusetts have, for the most part, led to the successful implementation of the legislation ensuring competition in the vehicle repair market. Our organizations are proud of the Right to Repair effort, and also of the level of cooperation we have received from many manufacturers,” Lowe said.

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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.

Auto Care Association and YANG Leadership Days, Regional Meet-Up and 2017 Leadership Conference Held in Early May with Chasidy Rae Sisk

During the first week of May, the Auto Care Association and its Young Auto Care Network Group (YANG) held three industry events in San Antonio, Texas. The Auto Care Association Spring Leadership Days took place May 3 through May 5, the YANG San Antonio Regional Meet-Up was held on May 4, and YANG hosted its 2017 Leadership Conference on May 5 and 6. Bill Hanvey, president and CEO, Auto Care Association, describes YANG’s Leadership Conference as “a chance for the next generation of our industry to hear from major industry experts and absorb new content to help them excel in their current and future roles.” Both Auto Care Association’s Spring Leadership Days and YANG’s 2017 Leadership Conference took place at the Grand Hyatt San Antonio. During Spring Leadership Days, YANG sponsored 11 Next Step Scholarship recipients to attend the event. The Next Step program provides an opportunity for young industry professionals to develop lasting involvement in the auto care industry and the trade association by experiencing and participating in the association’s event where more than 450 volunteer industry leaders participated in 25 committee meetings over the course of three days.

Attendees enjoyed networking at YANG’s Regional San Antonio Meet-Up

The Next Step Scholarship offers up to $1100 to offset travel and accommodation expenses, and the scholarship winners were encouraged to stay for YANG’s Leadership Conference, with attendees receiving 0.7 CEU credits toward their AAP/MAAP professional designations. The recipients of YANG’s 2017 Next Step Scholarship included Erin Anderson, BBB Industries; Hunter Brack, Hirsig-Frazier Company Inc; Isabel Burton, The NPD Group;

Kyle Ryan Byrne, Arnold Motor Supply; Chris Castillo, tascosalesreps; Johnny Dykstra, Auto-Wares Group of Companies; Mario Garza, XL Parts; Angela Golden, NGK Spark Plugs;

delicious event for our members. We all benefit when we can come together and network.” The San Antonio Regional MeetUp served as a perfect precursor to

YANG sponsored 11 Next Step Scholarship recipients to attend Auto Care Association’s Spring Leadership Days

Charlotte Grimmett, Aftermarket Auto Parts Alliance Inc.; Sam Pennington, Valvolene; and Nolan Sponselle, Best One Tire of Upland. John Washbish, president and CEO, Aftermarket Auto Parts Alliance, which is headquartered in San Antonio, stated, “We are proud to host these outstanding young people during our industry’s Leadership Days. These folks are tomorrow’s leaders. It was a real treat to host and welcome everyone to our hometown.” On May 4, Auto Value and Bumper to Bumper sponsored a festive Cinco de Mayo-themed YANG Regional Meet-Up at the historic Mi Terra Cafe and Bakery in San Antonio. Highlighted with margaritas, mariachi and a fajita dinner, the event’s purpose was “bringing under-40 professionals together to help strengthen industry partnerships and lay the groundwork for successful careers in the auto care space,” according to JC Washbish, cochair, YANG Advisory Council. Annually, YANG hosts an average of 20 Regional Meet-Ups across the country, but May’s San Antonio Regional Meet-Up was one of the largest to date with nearly 100 attendees. YANG chairman, J.R. Bishop believes, “The tremendous turnout is a testament to the excitement around being in this group. I want to personally thank Mr. Washbish, along with Auto Value and Bumper to Bumper, for hosting this incredible and

32 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

YANG’s Second Annual Leadership Conference which featured seven hours of educational seminars designed to enhance leadership skills, sharpen global perspective of the auto care industry and develop relationships with peers. Atten-

dees are eligible to receive CEU credits toward their AAP/MAAP designation from the University of the Aftermarket. YANG’s 2017 Leadership Conference commenced at 1PM on Friday with a Welcome Address delivered by J.R. Bishop and Bill Hanvey. Hanvey then discussed how telematics could be either a serious threat to the auto care industry or a tremendous competitive business opportunity, depending on the industry’s actions in “Your Car, Your Data, Your Choice.” He stated, “Access to embedded vehicle telematics is the number one issue for the Auto Care Association.” At 2PM, the “Telematics Update” was presented by Taylor Mitchell, vice president, technology, Auto Care Association, and Behzad Rassuli, senior vice president, strategic development, Auto Care Association. Courtney Hammer, director, job and career development, Auto Care Association and YANG liaison, recounts, “They dove deep (really

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 33

deep!) into the science of telematics. In summary, it was a super nerd’s paradise.” During “Five Trends in Five Minutes: Industry Trends Impacting the Automotive Aftermarket,” Todd Campau, product manager, aftermarket products, IHS Markit, highlighted the major trends in the vehicle market currently impacting the industry. He noted, “From the ever-changing new vehicle market to the aging vehicle fleet, there is never a dull moment in the automotive aftermarket!” In the last educational seminar on Friday, John Washbish discussed “The Core Values of Leadership.” Hammer states, “John spoke of his personal leadership styles which include a mix of General Patton, Joe Gibbs and Moses. Packed full of stories of leadership examples throughout his career, there were a few good nuggets to take away.” Prior to dinner on Friday, the Auto Care Political Action Committee (ACPAC) hosted a tequila tasting featuring three local distilleries as well as Mexican beer, chips and guacamole. The tasting served to show appreciation to the YANG members who supported ACPAC, and a record was set with 70% of conference attendees contributing to the industry’s campaign. Saturday morning began with a panel discussion on “The Value of Networking and Finding Your Professional Mentor,” moderated by YANG Council volunteer, Dave Shapiro. Panelists included Tammy Tecklenburg, vice president, global sales and marketing, Spectrum Brands; Jon Owens, senior account executive, Epicor Software; and Chase Baxley, vice president, product and supply chain for The Parts House. Panelists shared key insights about how young automotive industry professionals should think about their careers and how they interact with the industry professionals they encounter. Ryan Stuver, CRP Industries, won Shapiro’s networking game and received free registration to

YANG’s 2018 Leadership Conference. Next, Laura Soave, senior vice president and chief marketing and communications officer, Federal-Mogul Motorparts, presented “Stand Out in the Workforce: The Power of Reinvention.” Her message was “The automotive industry is constantly evolving. So too are the requisite skills needed to be successful. Continual reinvention of your career—and your company— are key to adding value and maximizing your potential.” YANG’s 2017 Leadership Conference concluded with a “2017 Update and Outlook,” presented by Nathan Shipley, director, automotive industry analysis, The NPD Group, who reported that the automotive industry will decline by 1.9% in 2017. He warned that the industry will see a complete transformation of its core customer over the next ten years and advised that focusing on millennials will be vital to success in the future. Shipley also noted that e-commerce is disrupting the industry, so it is necessary for business strategies in this area to continue to evolve. Hammer reports, “The 2017 YANG Leadership Conference saw 75 attendees, our largest event to date! The YANG Council wishes to thank all of the many people and sponsors who made this year’s conference possible.” Formed in 2014, YANG has grown to include more than 1200 members. YANG is a program created by the Auto Care Association to provide auto care professionals under the age of 40 with an opportunity to network with their industry peers, enhance knowledge and improve leadership abilities. YANG’s goal is to help young professionals establish a circle of peers with whom they can grow alongside in their careers. YANG members are future executivelevel staffers in the auto care industry who see the value of establishing connections with other young professionals who will one day be business owners and key decision makers.

Insurer Pays for Use of OEM Parts After Television News Story

A CBS affiliate television station in Utah reported that Farmers Insurance reversed course and paid for OEM parts for the repair of a vehicle after a shop owner showed a news reporter differences between the OEM and nonOEM parts. Trace Coccimiglio of Valet Auto Body in Draper, Utah, said he’d repaired the vehicle with OEM parts despite Farmers’ original refusal to pay. Farmers told the station that “what occurred is not consistent with our expectations or practices” and paid Coccimiglio for the difference in price for the OEM parts. “If an auto body re-

pair shop believes that an unsafe vehicle is being put on the roads, they have every reason to raise their hands and tell the auto insurer and the policyholder that they’re unwilling to do it,” Michael Barry of the Insurance Information Institute told the Utah television reporter. Coccimiglio earlier this year was elected to the national board of the Society of Collision Repair Specialists (SCRS). To view the news story, visit: http://kutv.com/news/get-gephardt /when-insurance-companies-weigh-incars-left-with-less-safe-repairs-lawsuitsays

34 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

Blackhawk Partners with 1Collision Network

Blackhawk has been designated as a strategic partner by the 1Collision Network. With this designation, Blackhawk® collision equipment products are a recommended choice for 1Collision Network body shop partner locations across the country. “We want to thank the 1Collision Network for choosing Blackhawk as a preferred provider of products for collision equipment,” said David Zinkiewicz, product manager for Blackhawk. “The 1Collision Network is one of the nation’s premier providers of auto body and collision repair services and we are honored to be a strategic partner and part of their growing network.” In addition to Blackhawk collision equipment products, the strategic offering includes the John Bean® undercar service equipment solutions and Snap-on® tools and equipment. Collision Network body shop partner locations are single and multiple independent and dealer-owned collision repair centers whose owners seek to take their success to the next level as part of a network group of other successful auto collision body shop owners. For information about Blackhawk collision equipment, 1-800-558-4206 or visit www.blackhawkcr.com.

Caliber Collision Collects 3.2 Million Kids’ Meals

More than 40 food banks across the country will be able to help ensure kids in their communities do not go hungry this summer, thanks to a five-week nationwide food drive by Caliber Collision Centers that resulted in a record-breaking 3.2 million meals. Over the past six years, Caliber’s annual Rhythm Restoration Food Drive has collected thousands of pounds of food and over $1.2 million in cash, resulting in more than 10.1 million meals for food banks in the communities it serves across 17 states and the District of Columbia. “We are proud of the passion and dedication of our associates who are driven to give back to their local communities,” said Steve Grimshaw, CEO of Caliber Collision. Francie Cooper from the Tarrant Area Food Bank in Texas, one of the food banks supported by Caliber’s efforts, said, “One out of five children in the U.S. worry about where they will get their next meal, especially during the summer. We couldn’t do what we do to help these children and their families without Caliber’s amazing and generous support.”

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WD-40 Specialist Superior Performance True Multi-Purpose Grease is designed to be the ultimate high-performance, all-in-one grease. Formulated with calcium sulfonate technology, the premium product provides superior lubrication and long-lasting performance under extreme pressure, high temperature and severe marine conditions, according to the company. “WD-40 Specialist Superior Performance True Multi-Purpose Grease is engineered to be the only grease you’ll ever need,” said Dr. Ernest Bernarducci, vice president of research and development at WD-40 Co. “It is a versatile, all-in-one solution engineered to proSee WD-40™ New Line, Page 38

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 35

Former Owner of a Georgia Body Shop Sentenced for Odometer and Title Fraud

by Joseph Njoroge, Blasting News

Paul Robinson from Lawrenceville, Georgia has been sentenced to 37 months in prison followed by three years of supervision upon release for his involvement in odometer tampering as well as title fraud. Paul’s sentence was made in the Eastern District of Virginia. The judge also ordered Paul to pay restitution worth $320,797.82 to those who bought vehicles from him that had their vehicle’s odometers rolled back. How Paul committed his crimes. Paul was an owner of Affordable Auto Body Repair Shop located in Chesapeake in the state of Virginia. He oversaw the purchase of high-mileage vehicles and the altering of the vehicle’s odometers so as to reduce the car’s mileage readings. He and others also acquired Virginia motor vehicle titles that had false odometer readings, he then used the titles to sell his cars to unsuspecting buyers. According to the judge who read his sentence, customers ended up paying more for cars they thought had low mileage; it also subjected them to incurring high repair costs for the vehicles as well as kept them in danger because they were not aware they were driving high mileage vehicles. According to investigators, the fraud was committed from the year 2012 and 2014 on more than 100 vehicles.

Some odometers were deducted up to 150,000 miles on their mileage readings. A former title clerk also pleaded guilty last year to helping Paul secure motor vehicle fraudulently and committing title fraud. He was fined $219,552.82 and sentenced to five years in prison. He is also serving his first year in home detention. Odometer fraud is a practice of rolling back a car’s mileage meters so that a car can appear to have traveled little distance. It is also referred to as busting miles in the United States. The National Highway Traffic Safety Administration estimates that 450,000 vehicles are sold each year with false odometer readings. This type of fraud costs over $1 billion annually to unsuspecting car buyers. Odometer fraud is commonly done to cars that were previously used in the car rental business. Mechanical odometers are hard to tamper with when compared to digital odometers. A recent odometer prosecution. Late last month, two Georgia residents were sentenced to 12 months in prison and three years of supervised release for title fraud and rolling back odometers. They both owned and operated a Georgina corporation called Lifestyle Auto Broker LLC. They committed the crimes in the year 2012 and 2013. We thank the Blasing News for reprint permission.

Automotive Students Receive 3M Scholarships Two students enrolled in the Collision Repair and Refinishing Technology program at Stanly Community College (SCC) were recipients of the Collision Repair Education Foundation’s 2017 3M Hire Our Heroes Veteran Family Scholarships. Tim Hefner, Sales Representative, 3M Automotive Aftermarket Division, Charlotte, NC, presented the awards to the students.

with the Collision Repair Education Foundation and provide these scholarships and tool grants to deserving

students since 2013,” said Dale Ross, US Marketing Operations Manager. “We hope this helps them complete their training and find rewarding careers in this great industry of ours.” Both students will use their scholarship funding for the I-CAR Professional Development Program, an industry recognized pro(l to r) Tim Heffner, Billy Huneycutt, Adam Foster, gram for training collision Robert Richard repair professionals in esAndrew Foster was the recipi- sential role-relevant knowledge and ent of the 3M Hire Our Heroes Veter- skills. ans Family Scholarship in the amount According to EMSI data, colliof $2,500. Robert Richard received sion repair and refinishing specialists $2,000 from the 3M Hire Our Heroes can earn $22.64 an hour (medium Scholarship, plus another $4,500 from hourly income) and 1,680 jobs will the 3M Hire Our Heroes Tool Grant. be available in the Charlotte region “3M is proud to be partnered by 2020. 36 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

Polk County, FL: Thieves Are Targeting Wheels by Andrea Lyon, WFTS

A warning for those living in or near Davenport, Florida: Thieves are taking advantage of vehicles left out in the open. At least five people have fallen victim to their tires being stolen in the last week.

Stephen Boykin with Car Care Center. Credit: WFTS

Not an often occurrence, in the small town of Davenport. “Especially in this area, it’s not big here,” Stephen Boykin, with Car Care Center said. Victims posted pictures to Facebook showing cars stripped bare of their tires. We asked why criminals would be targeting cars in this area, or at all. According to Boykin, it’s an easy resale, and some can be sold for a lot of money. “In certain vehicles rims can go for $1,000 each,” Boykin explained.

Toyota Camry’s seem to be hot choice for local criminals at three were targeted at the Bella Trae community in Davenport within the last week. Victims say it is usually happening in the early hours of the day, and that their vehicles were not in their garages. The most startling part, many say they live in a gated and rather secure neighborhood. Technicians at the Car Care Center demonstrated just how easy it was by using what is called an electric gun. If the wheels aren’t locked they can be loosened up and removed in under five minutes. Even an unnamed employee of the body shop said he was the victim of a recent auto theft. His Lexus was stolen and later found stripped of it’s rims. “It had a body kit on it. They stole the body kit off they stole the rims, and tires off of it and they actually put the wheel locks back on.” Denny Longworth show ABC Action News. Wheel locks are usually the answer, and a cheap solution. But technicians say security cameras, and keeping your vehicle in the garage will do the trick too. Areas affected include Spring Lake, Celebration and Davenport. We thank WFTS for reprint permission.

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 37

Continued from Page 28

Craftsman Collision

Craftsman’s ascent to the summit of the Canadian auto body industry are smart marketing decisions. From the earliest days, Craftsman’s sparkling fleet of ‘free rental cars’ were often more clean and comfortable than the vehicles being repaired. Disruptive ad campaigns including the popular ‘Bad Driver Award’ radio spots earned chuckles from commuting drivers. Participation in the Air Miles rewards program from its beginning in the early 1990s is yet another reason for customers to smile when picking up their repaired vehicles while continuing to be a unique advantage in a mature, ultra-competitive industry. Craftsman’s success has trickled down to the community at large, with more than $2 million in donations to dozens of charitable causes through the years. Among the most prominent are the Salvation Army (whose food bank is replenished by Craftsman’s annual Making a Dent food drive), the Heart & Stroke Foundation, the BCIT Foundation and School of Transportation, the Juvenile Diabetes Research Foun-

dation, the Vancouver Symphony, and the Lions Gate Hospital Foundation, to which Craftsman has donated more than $1 million and helped create the hospital’s Craftsman Collision Cast Clinic.

Craftsman has donated over $1 million to the Lions Gate Hospital Foundation. Thecompany has also supported BCIT (Foundation and School of Transportation), the Juvenile Diabetes Research Foundation, the Vancouver Symphony, and the Heart &Stroke Foundation, and has donated close to $150,000 in cash and food items in itsannual Making a Dent food drive for the Salvation Army

“Creating a successful business and building stronger communities go hand in hand,” says Stacey Cook, Marketing Manager for the Craftsman Group of Companies. “Our corporate charitable ventures are often paralleled by our

38 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

shop managers also getting involved in charities, sports or volunteer efforts in their local communities. Giving back is as important to us as financial growth.” Most recently, Craftsman has paid $150,000 to sponsor the Craftsman Collision Signature Aquarium—a 14foot, 3-tonne acrylic structure soon to be towering over the new Gibsons Public Market on BC’s Sunshine Coast. Notwithstanding the many speed bumps, early struggles with ICBC, two fires, sluggish economic times, expansion hiccups and other temporary setbacks, Bill Hatswell says he has enjoyed every moment. “I could write a book on the many things that have happened in the last 40 years,” he smiles from the North Vancouver head office. “Sad things, exciting things, disappointments and fun. They are all part of the Craftsman success story, and have helped us make our mark, make Craftsman a household name, and create the great working environment we enjoy today. But with our continuing rapid growth, expansion into new markets, acquisitions, real estate developments and other successful ventures, it would be a bit premature. The book is still being written.”

Continued from Page 35

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National News

Is Tesla Backing Away From Third-Party Shops? with Ed Attanasio

For many years, body shop owners all over the country expressed their desire to become Tesla certified, but in the end is it really a good deal for them? Are Teslas just too difficult to repair and require too much training? If you’ve owned a Tesla for even a short time, you’re already probably a big fan of the brand, but where can Tesla owners take their vehicles to get them fixed accurately and in a reasonable amount of time? In an effort to enhance the customer experience with out-of-warranty body repairs, Tesla recently announced that it will soon be opening its own auto body shops in a letter to its shareholders. The OEM also announced plans to enlarge its existing network of third-party Tesla certified body shops in areas where more people own Teslas. In addition, the carmaker also announced in May that it plans to add more service facilities in key locations internationally and developing a team of mobile technicians to service vehicles on the go. The plan is to build 100 new retail, delivery and service locations globally, representing an overall 30% increase in facilities. In the letter from Tesla, one sentence got peoples’ attention, especially if you are a current Tesla certified shop or planning to pursue certification. “To significantly improve the customer experience with out-of-warranty body repairs, we intend to open the first Tesla-owned body repair shops later this year and expand the existing network of third-party Tesla certified body shops.” By not providing any further details, this statement has created more questions without answers in sight. Exactly how many of Tesla’s own body shops are they planning to open and when? Will they open a few to see if it works before jumping in with both feet? Will the OEM create a significant network of first-party body shops or only in areas that justify their existence? Will these Tesla collision centers work solely on Teslas or other high-end brands as well? Everyone pretty much knows at this point that Tesla’s recent buildup and expansion is happening in antici-

pation of Tesla’s Model 3—the allelectric four-door compact sedan that was unveiled last March. The Model 3 will deliver an all-electric range of over 215 miles (346 km), with base model pricing starting around $35,000 before applicable U.S. government incentives.

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

entire process would be better for the Tesla owners. Tesla owners have invested in these amazing cars and they deserve high-end service as a result and we are always striving to do that, but by not getting parts promptly, it can be an issue at times.” One sage move that the carmaker recently made, according to the Tesla approved shop owner we interviewed, was that Tesla recently made their training program easier to complete, he said. “They have put all of the training online, so that it’s more attainable and more convenTesla is evidently gearing up for the Tesla Model 3, which ient. We can now train more may be flooding the market soon and requiring more people and get them up to shops to repair them speed more quickly. We have Its production is scheduled to begin this two Tesla certified technicians here month and is planned to ramp up to exand to get them trained before the ceed 5,000 vehicles per week during classes went online, it was not easy the fourth quarter and 10,000 vehicles and surely not inexpensive. We had to per week at some point in 2018. send them to Tesla school for five Within a week of announcing the Tesla Model 3, company officials said they had taken 325,000 Model 3 reservations, and are now reportedly within the 400,000 to 500,000 range, although Tesla did not give a specific number in its quarterly finance report. From what experts are saying, Tesla’s recent announcement is more about performing better repairs as opposed to making more money. Customers have allegedly been complaining about long repair times within the OEM’s third-party body shop network, but from what I have been hearing, much of the delays are caused by Tesla’s inability to get parts to the certified shops promptly. The president of a small chain of shops in the San Francisco Bay Area talked off-the-record about his experience as a Tesla certified repair facility for the past few years. “Yes, we are able to repair these vehicles to OE standards, and we fix at least 20 of them every month,” he said. “But it’s not a perfect process, even though Tesla is continually trying to improve it. The main problem we run into is not getting parts or not knowing when they are coming. If we could get the parts faster, we could alleviate some of these lengthy cycle times and the

40 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

weeks and put them up in a hotel and pay all of their expenses.” Although the shops I talked to have encountered some speed bumps along the way, they are proud to be associated with this cutting-edge and green company and looking forward to a great future as Elon Musk comes up with his next innovative vehicle. “Tesla is a growing company, so they will logically go through some changes at an accelerated rate,” one shop owner said. “By establishing their own collision centers, it will only help all of us. The brand is exploding and there are going to need more shops to repair these cars in the future, so we’re happy to be in the right place at the right time.” We reached out to Tesla for comment, but had no response was had by time of publication.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 43

Collision Repair Industry Shares Memories of Visionary Steve Schoolcraft by Stacey Phillips

Steve Schoolcraft, often referred to as a visionary by many in the collision repair industry, died peacefully in his sleep and unexpectedly on May 19. He is survived by his wife Alexis, his two sons, Nicholas and Michael, and granddaughter Noelle. “His passion, drive and dedication to the collision repair industry was unparraled,” said Tina Biancalana, vice president of client development for Phoenix Solutions Group, based outside of Chicago, IL. “Steve touched many lives and left a lasting memory on everyone he met.” Steve graduated from Lake Forest Graduate School of Management, and was educated in behavioral psychology. He spent many years of his career at Illinois Tool Works and Sun Chemical in executive sales and marketing roles. In 1989, Steve established Phoenix Solutions Group as a marketing firm for the dealership community. It eventually evolved to become a marketing consulting company focused on enhancing the customer experience for

collision repair facilities through strategic marketing and CRM advisory services. Over the years, the company has

Many remember how animated Steve Schoolcraft could be while giving a presentation

helped approximately 700 body shops across the United States learn how to drive revenue, increase retention and improve their marketing efforts.

44 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

In addition, Phoenix Solutions Group assists collision repair businesses complete the OEM certification process and is the exclusive distributor of the Body Shop Booster technology, which helps simplify the estimating process for both consumers and body shops. Ryan Taylor, founder and CEO of Body Shop Booster, met Steve nearly three years ago while introducing the technology to the U.S. market. Taylor found the companies that performed best with the product were also associated with Phoenix Solutions Group. He reached out to Steve and flew to Illinois from Calgary, Alberta, Canada where he is based. “In classic Steve style, he said, ‘Man, we have to work together!’” recalled Taylor. That led to a partnership between the two companies. “I look at Steve Schoolcraft as the Steve Jobs of collision repair,” said Taylor. “He built an amazing company and platform and he was masterful at

attracting like-minded individuals.” After countless hours of collaboration with the Phoenix Solutions Group team, Taylor said, “They are what really drove Steve’s vision and drive the machine on a daily basis.” He said Phoenix Solutions Group is focused on what he refers to as “…actionable intelligence, which focuses on giving shops the intelligence to make smart decisions for their businesses to drive tangible results,” explained Taylor. “Despite our horrific loss of Steve, he built something that was designed to last and carry on.” Biancalana said the Phoenix Solutions Group leadership team and staff remain committed to continuing Steve’s vision and legacy, which is putting customer needs at the heart of all that Phoenix Solutions Group does. Steve’s oldest son, Nicholas, has already joined Phoenix and is committed to delivering and moving Steve’s vision forward. “Like his father, Nicholas is results-driven and will be a tremendous asset to the team,” said Biancalana. Nick has an extensive background in marketing and customer experience

strategy. In his recent role as a global consultant with Accenture, Nick led many projects where he identified and assessed complex customer experience problems and developed solutions to increase customer and employee engagement. “Steve leaves the industry with a legacy; he leaves the world and all of us who knew him with very heavy hearts,” said Biancalana. “We will ensure his passion for excellence will continue for generations to come.”

Memories of Steve Schoolcraft from some of his colleagues and friends in the collision repair industry: With a heavy heart it saddens me deeply to be commenting about Steve instead of talking with him. Steve’s vigor and passion greatly affected everyone. His drive to make the collision industry better leaves a permanent and lasting mark that lives on through Phoenix. I thank God that he lived and will miss him greatly every day! —John P. Conlon, President/Coowner, Elite Autobody & Paintworks

Often flying in the face of conventional wisdom, Steve Schoolcraft fought to

bring the truth to the collision industry. No one has done more to teach us about marketing and buying behaviors of collision repair consumers than Steve. He will be greatly missed. —Dave Luehr, CEO of Elite Body Shop Solutions

Definitely a “tree shaker…” in the collision repair industry. Great friend and a huge, huge loss to our industry. Our families are deeply saddened. —Xavier and Rosa Murrieta, Owners, Big Sky Collision Centers

Such a great man! His love and service to our industry does not go unnoticed! Love and prayers to his family! —Judy Nelson Robarge, Vice President, Robarge Collision, Spanish Fork, Utah

Steve was very knowledgeable and intelligent, as well as an inspiration to us all within the industry. Being customers of the Phoenix Solutions Group, we enjoyed his seminars and help with our business. Our prayers and thoughts are with his family and friends. He will be missed. —Chad Ogle-Riccelli, Action Auto Body

Through his unique way of understanding behavior, he single-handedly altered the way businesses viewed marketing. He truly was a visionary and affected many business owners within the industry in an incredibly positive way. He has left a legacy of relationships where his interaction with people was genuinely treasured. For me personally, he was a friend and mentor who touched my life in a very personal way. His advice and compassion will stay with me forever! —Tim Ronak, Senior Services Consultant, AkzoNobel Automotive and Aerospace Coatings

Steve was one of the most energetic people I’ve ever met in this industry. His zest for life and enthusiasm made him a highly sought-after speaker. His company delivered value for people all over the country. He and I regularly spoke about industry-related topics and how his company could help AkzoNobel sell more paint business. Through my relationship with Steve, I’ve grown to know others at Phoenix and consider them all to be great friends. Because he was filled with so much passion, he never stopped walk-

ing or moving during his presentations either. He had to be in the best cardiovascular shape! I’ll miss our conversations as well as the chance to work with him and his great company. —Ryan Ross, East Region Services Manager, AkzoNobel

Steve was a marketing genius. I will miss him greatly. He was a GREAT friend as well. So sad!!! —Steve Trapp, director at Axalta Automotive Refinish

Steve was in constant pursuit to provide shops the ability to market with solely the best customer experience possible. His mission was to help shops create new market share by word of mouth. His integrity was proven daily by doing what he said he would but at the same time he would hold you to the same accountability. He was fun to talk too. He got it. —Bobby Wiese, Office Manager, BStreet Collision Center

A public memorial service was held at Holy Family Church in Palatine, Illinois on May 25. In lieu of flowers, donations can be made to the Juvenile Diabetes Research Foundation.

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Product Innovation DeBeer Refinish Reds Set the Industry Standard with Ed Attanasio

If you’re a fan of rock ‘n roll, you know that Sammy Hagar loves red and if you’re a follower of the St. Louis Cardinals, Cincinnati Reds or Atlanta Falcons, among others, you’re also probably a big red fan too. But, whether you like the color of red or not, almost everyone can agree that when a car is painted in red and done right, it has that wow factor that can turn heads and make a lasting impression. Josh Wilson is the manager at Fortune Collision Centres in Lexington, KY, an MSO with four locations in the Bluegrass State. This high-volume shop fixes roughly 140 cars every month and relies primarily on two painters and two preppers to get the work done right and on schedule. All four Fortune Collision Centres have been spraying DeBeer Refinish’s solvent basecoat system for the past six years with outstanding results, especially when it comes to the color red. While other shops encounter anxiety when they need to paint a car red, the crew at Fortune is confident that DeBeer Refinish’s new Metallic Bright Red toner will help them to create an outstanding finished product each and every time.

moving smoothly,” Wilson said. “We get great support from our paint rep and we couldn’t be happier with the relationship we have with DeBeer Refinish.”

(l to r) Painter Lester Jones, Preppers Isaac Jones and Ryan Craig with Shop Manager Josh Wilson at Fortune Collision Centres in Lexington, KY

Lester Jones is the lead painter at Fortune Collision Centres and has been painting cars for 32 years. He paints approximately 75 cars every month, so he encounters the color red almost daily. “We do quite a few red pearls here and some candies once in a while and the DeBeer Refinish red toner works great,” Jones said. “The customers come here

Fortune Collision Centres paint approximately 75 cars every month and red is one color they don’t have trouble with.

If you’re a painter, you know that reds, especially candies can be problematic, but Wilson said that with DeBeer’s new red toner technology, a three step system, his crew hasn’t had any issues. “My two painters tell me that they are really comfortable with the product and that’s a big deal, because we want to keep our production

to pick up their cars and they are surprised, because the color match is deadon and the paint is perfect.” When Jones discusses automotive painting, you can easily surmise that the man knows what he’s doing. “I started painting cars as soon as I could walk,” he said. “My dad had his own shop and I learned a lot from him. The

46 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

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

first car I painted by myself was a 1968 Barracuda and I painted it in solid red, that’s a fact.” Spraying DeBeer Refinish since 2011, Jones has the application process down to where he can do it in his sleep, he said. “The pearl is a three-stage product and we paint quite a few cars with it and always get a great result,” he said. “Red is always a little tricky, but we have had a lot of luck using DeBeer Refinish Metallic Bright Red. Once in a while, we run into some red jobs that are a little more complicated, but that is the nature of the beast. We can knock it out usually with two or three coats on the top and two or three max on the bottom, so it works well.” At age 64, Jones isn’t slowing down and has no plans to retire, because he still loves painting cars. “I have used them all and I would have to say that the DeBeer Refinish is the best, without a doubt,” he said. “It makes my life easier, that’s for sure, especially when

it comes to spraying red.” DeBeer® Refinish introduced its Metallic Bright Red toner technology to the collision repair market for the first time at the 2016 SEMA Show and featured a 1966 Ford Fairlane customized by Anton’s Hot Rod Shop in Cleveland painted with DeBeer’s new Metallic Bright Red OEM-approved toner—in Ford RR (Ruby Red) Metallic. “This is a real breakthrough in color design and refinish technology,” Paul Goedhart, global director of color technology, Valspar Automotive said at the show. “With color and our customers are at the core of our business and all of our brands, we’re continually working to deliver innovative, solutionminded products that make repair and refinishing processes easier, and shops more productive. OEM-approved DeBeer Refinish 900+ Basecoat, featuring our Metallic Bright Red toner, accomplishes these goals.”

www.autobodynews.com | JULY 2017 AUTOBODY NEWS 47

National Events

Management Success Holds March Spring Convention and May Annual Top 20 Meeting with Chasidy Rae Sisk

Management Success is dedicated to bringing value to their clients, and this was evident at their Spring 2017 Convention and Annual Top 20 Meeting. The organization is also preparing for its Fall 2017 Convention.

Management Success’s 20th Annual Spring Convention was held March 24–26 at the Omni Orlando Resort in Championsgate, FL. During the three-day weekend, over 300 attendees, comprised of shop owners from the U.S. and Canada, participated in interactive workshops, team-building drills, and educational panel discussions facilitated by industry experts and Management Success clients. This year, the company added a brand new element an exhibit hall. On Friday, the event began with a welcome reception, providing networking opportunities for old friends as well as introductions to new acquaintances.

cated to acknowledging significant achievements made in the industry by automotive, collision and truck repair facilities. Fourteen awards were presented to recognize levels of achievements attained in the Management Success Consulting Program, including Master Elite of Shop Management, Master of Shop Management, Competent Shop Owner, and Effective Shop Manager. Saturday’s sessions featured a crowd favorite, the Masters Panel, which is comprised of some of the in-

cise that reinforced the importance of patience, listening skills, and working together as a team,” Doche says, calling the Convention “a huge success.” James Krell of K-O Auto states, “I always look forward to networking opportunities and seeing what other shops are doing. I’ve made lifelong friends through the Management Success conventions that I connect with just about every week.” TC Smith of AutoSmith adds, “Networking with the other shops is fantastic! There is al-

Over 300 attendees participated in Management Success’s 2017 Spring Convention

dustry’s top shop owners who answered questions from the audience and “shared best practices for navigating and succeeding in today’s competitive automotive repair landscape,” Doche recounts. That evening, attendees donned costumes for a Disney-themed dinner, dressing as their favorite heroes and villains as they danced and enjoyed an evening with friends. Dino DiGiulio of Body Best Collision, notes, “I love Management Success conventions, es-

ways good information that is brought up in the seminars and meetings. It’s awesome! Bring a pen and paper to write it all down! Jump in with both feet and take advantage of the infor-

mation that Management Success gives you.”

Arkansas Event Management Success held its Annual Top 20 Meeting on May 18-31 at A&J Collision Repair in Conway, AR. This event provided an opportunity for shop owners, their spouses, part vendors and Management Success staff members to address a variety of hot topics in the industry, including scanning, DRPs and employee management. Attendees shared best practices and learned about new innovative tools to help them implement organization in their shops, thereby increasing efficiency. According to Steve Kotik from International Auto Body & Paint, “It was great to see first-hand unique ideas implemented by other collision shops. For example, Jody has his customers drive-in for an estimate. After

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Fourteen awards were distributed to recognize significant achievements in the collision repair industry

According to Roxanne Doche, Director of Marketing for Management Success, “Throughout the day, shop owners shared best practices, participated in various competitions, and learned about the newest developments in management and technology.” On Friday evening, Management Success held its Awards Banquet, dedi-

pecially the parties. It’s great seeing other shop owners in a social environment, away from the shop.” Management Success’s 2016 Spring Convention concluded on Sunday with “a high-energy team-building drill that challenged attendees to construct towers made solely of balloons and tape. It was an entertaining exer-

48 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 49

Old School Know How

Two Collision Veterans Run Silicon Valley Tech School with Ed Attanasio

With Nathan Chukes and Robert McTaggert, two veterans of the collision industry who are now collision repair instructors at the highly-regarded Silicon Valley Career Technical Education (SVCTE), this tech school in San Jose, CA creates the metal technicians, painters and estimators of the future. By showing high school-level students about the latest technological

Nathan Chukes (right) is the school’s auto body refinishing teacher at Silicon Valley Technical Education in San Jose, CA. In this photo, he shows second-year student Javier Serano how to polish a vehicle after painting

changes in the industry and by working with local body shops and vendors, this school is making all the right moves and receiving unprecedented industry support as a result. Chukes teaches Auto Body Refinishing and McTaggert handles the Auto Body Repair curriculum , but together they run the department. Both were hired at the school in 2001 and are passionate about what they are doing and it shows. Since these two have been hired, approximately 2,700 students have graduated from SVCTE’s automotive tech department during that time. Chukes was a journeyman painter and McTaggert worked as a technician, assistant manager and estimator for 40 years before he was hired at SVCTE. Both instructors have ASE certifications in both structural and non-structural repair and continually refine their classes to accommodate the industry as repair techniques, tools and equipment change at a rapid rate. Formerly known as the Central County Occupational Center (CCOC) before changing its name five years ago, SVCTE currently features a two-semester program for high school students from six school districts in the South Bay Area area who are interested in careers in the collision repair industry. After teaching for so long, Chukes

said that it is no longer a job and more like a calling. “We’ve been doing this for so long that it’s in our DNA,” he said. “We have seen so many young people who have come here with no knowledge and two years later, they’re employable and have some confidence. They get to work on actual cars and they’re using the identical tools that they will be using on the job. Our goal here is to replicate the real world out there as much as we possibly can, so we teach them OE procedures and always emphasize safety and working in an organized way. We also teach them life skills that they are going to need out in the working world, such as being punctual and communicating clearly. We want them to have the skills, but we also want them to be successful as people too.” Once the students have completed the program after one year or two years, depending on what they choose to learn, Chukes and McTaggert will assist them to find internships and jobs at local body shops. “We are constantly reaching out to the body shops and many of them are willing to help us with old parts that the students can practice on, for example,” Chukes said. “When we see a graduate that is working at a local shop and we get good feedback about their performance and attitude, that is very satisfying.”

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

here—they set up their own booths, brought employees to the fair and displayed products. We would like to thank Anderson Behel in Santa Clara; Fix Auto in San Jose, Advanced Auto Body in Morgan Hill and Golden West Collision Center in Sunnyvale for their participation in our Job Fair, an event we plan on doing every year now.”

Robert McTaggart (left) has been teaching all of the auto body repair classes at SVCTE since 2001

Joe McKenna, the owner of Golden West Collision Center saw definite value in SVCTE’s Job Fair and ended up hiring four students as a re-

sult, he said. “We spoke to 40 kids and they all impressed me. It was a great opportunity to get to know them and interview them so that they can develop their interviewing skills. We now have four SVCTE students working here—three on the body side and one on the paint side—all of which I met at the Job Fair. I am a second-generation owner and I learned the industry from my father, so helping these young people is my way of giving back.” It’s a satisfying job being a teacher after so many years working out in the industry, but McTaggert still loves teaching young people. “We teach them tangible skills, instead of simply imparting information or theory,” he said. “We work extremely hard here to give them a more complete education, so that they can hit the ground running and flourish in this industry. We want them to have jobs, but more importantly, careers that they can do for their entire lives.”

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A student at SVCTE learning by doing it himself

Recently, SVCTE held a Job Fair, where they invited body shops to meet with the students and give them a look at the industry from a different perspective. They also conducted on-site interviews and brought in some additional speakers to give the students the complete picture. “This was the first time we did an event like this and it was definitely a great experience for the students,” Chukes said. “Four local shops were

50 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

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

Industry Insight with John Yoswick

“Who Pays for What?” Surveys Having an Impact on Billing for Refinish-Related Operations Mike Anderson of Collision Advice even included some of the operations on said he sees several ways to measure their estimates or invoices. After all, whether his quarterly “Who Pays for when those shops are asked why they’ve What?” surveys, now in their never asked to be paid for one third year, are having an imof those procedures when it is pact. necessary and done, about 75 The industry trainer and percent of them say they were consultant said the first way is either not aware that the item whether the surveys find an inwas “not-included,” or it simcrease in the percentage of ply never occurred to them to shops successfully getting paid charge for it. Mike Anderson for some of the “not-included” By that measure, the surlabor operations the surveys ask about. veys are clearly having a positive impact, The most recent survey found that for Anderson said. The survey conducted in each of the 21 procedures detailed in the January, for example, found that nearly survey, more shops this year reported inevery “not-included” refinish operation surers are paying them “always” or asked about had a higher percentage of “most of the time” compared to the shops (compared to a year earlier) now same survey last year. negotiating to be paid for them. But a second way Anderson said he “If you don’t bill for it, you will is measuring the surveys’ success is a litnever be paid for it, yet the biggest pertle more subtle. He hoped the surveys centage of shops not billing for these would raise awareness of not-included procedures say they never thought of operations and reduce the percentage of billing for them when they are required shops who acknowledge they’ve never as part a repair,” Anderson said. “These

surveys were designed to help raise that awareness.” The latest of the 2017 “Who Pays” surveys, focused on frame and mechanical labor operations, is being conducted throughout the month of July;

ent aspect of collision repair, asking shops about which “not-included” procedures they bill for, and about how frequently each of the largest auto insurers pays for those procedures. More than 900 shops across the country re-

Although about 66 percent of shops report being paid to “refinish pinch welds after clamp damage” always or most of the time when it is necessary and performed, about 1-in-7 shops say they never have billed for that “not-included” operation

click here (https://www.crashnetwork .com/collisionadvice) for more information or to take the survey. Each of the quarterly surveys, conducted by Collision Advice and CRASH Network, focuses on a differ-

sponded to the January “Who Pays” survey on refinish operations. The surveys have continued to show even when there are a majority of shops routinely being paid for a particular “not included” operation, there can

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be a significant percentage of other shops not even putting it on their estimates. “Mask sunroof opening” is a good example of this. Although 56 percent of all shops taking the January survey said they are paid for this operation “most” or “all” of the time when it is

needed and billed for, 43 percent of the shops responding to the question are not even billing for it. “While this procedure is clearly necessary to perform on some jobs, it has no automatic formula in the estimating systems, so it is up to the shop to determine the appropriate charge and itemize it on the estimate,” Anderson said. The surveys now break the results down by 11 different geographic regions, and they have found some modest regional differences in shop billing practices. Shops in the Pacific Northwest region, for example, are more likely to charge for the “not-included” refinish operations asked about in the January survey than are shops in other

regions. The Northeast region had the highest percentage of shops saying they “never asked” to be paid for the not-included operations listed in the survey. The regional differences are not large, however, with 24.8 percent of the Northeasterners saying they “never asked” compared to 16 percent of shops in the Pacific Northwest. Interestingly, shops in the Northeast are no less likely to be paid “always” or “most of the time” when they do add a “not-included” item to their estimates. On average, across all regions, when the data for all the operations are combined, 60.3 percent of shops are paid “always” or “most of the time.” In the Northeast, that figure is 60.1 percent – statistically identical to the national average. In other words, this particular survey found Northeast shops aren’t less likely to be paid for a “not-included” refinish procedure when they bill for it; they are just a little less likely to bill for it. Anderson said the consistent responses to some of the survey questions this year compared to last year are an indication of the accuracy and reliability of the surveys. Like last year, for example, about 47 percent of shops this year said paint shop em-

each take about 15-20 minutes, and should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released. At the website, shops also can download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. nonDRP. The reports also include analysis and resources to help shops better understand and Nearly three-quarters of shops report that 75 percent or use the information presented. more of vehicles require either the “denib” or “finish sand Anderson has yet another and buff” operation way to know the “Who Pays Anderson said more than 2,500 for What?” surveys are having a posishops have taken one or more of the tive impact: the participating shops say “Who Pays for What?” surveys since they are. A record 84 percent of shops they began in 2015, and he says they who took the “Who Pays for What?” often tell him that “just participating survey in January said they have been in the surveys is a great reminder of able to use previous such surveys to procedures they are performing every improve their business. day, but may not be listing on esti“That number has typically mates or invoices.” bounced around the 70 percent range in Shops can take the current survey the past,” Anderson said. “The fact that (or sign up to be notified about future a growing number now report the sursurveys) at https://www.crashnetwork veys are helping makes me very proud. .com/collisionadvice. The surveys Knowledge is key in this industry.” ployees perform the feather, prime and block operation, but nearly 52 percent bill for this procedure as body labor rather than refinish labor. In addition to the refinish labor operations, the January survey also asked shops about their choice of CSI vendors, and how they calculate charges for refinish materials.

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Historical Snapshot

Shop Owner’s Public Criticism of Partstrader Didn’t Cost Him With State Farm with John Yoswick

20 years ago in the collision repair industry (July 1997) Veteran collision repairers Rick Halopoff and Erick Bickett have launched a new Southern California collision repair enterprise, Fix Auto Buena Park. The two recently acquired Buena Park Auto Body, a 37year-old repair facility. The new venture marks the beginning of what could become a trend for individual business owners who want to increases their market share, but control costs without sacrificing quality and service. Halopoff said the days of a small business operating alone are over. “As individual shop owners, we can no longer afford to fix one car at a time or buy one box of sandpaper at a time,” Halopoff said. “Our customers demand and deserve a better product priced more competitively. Working alone it is impossible to get the economies of scale necessary to compete with large, well-capitalized organizations.” “Unlike the consolidation efforts currently underway, the business plan we’ve developed allows the entrepreneur to maintain control of his or her business and at the same time take advantage of the resources available to a large organization,” Bickett said. – As reported in The Golden Eagle. Bickett and Halopoff’s venture eventually grew into Fix Auto USA, which now has more than 100 branded franchises in eight states (other Fix Auto networks operate in Canada, France, the U.K. and Australia).

15 years ago in the collision repair industry (July 2002) Brian Sullivan says collision repair shop owners don’t necessarily have to like insurance companies, but they better understand them. “The insurance industry is not your friend,” cautions Sullivan, editor and publisher of two newsletters in the property and casualty insurance industry. “The insurance industry is not your partner. They aren’t happiest when you make a lot of money. But the next point is even more important: You have to deal with them. You have to understand where they are going.

You have to sympathize with their problems. Because what will flow from that is their decision-making, and their decision-making is what’s going to make you happy or miserable.”

By 2002, insurance industry journalist Brian Sullivan had shared what he felt shops needed to know about auto insurers at not one but two NACE conventions

His advice to shops as the keynote speaker at not one but two NACE conventions: Understand trends in the insurance industry so that you are prepared for the impact those trends will likely have on shops. – As reported in Autobody News. Sullivan continues to publish subscription newsletters in the insurance industry, including Auto Insurance Report.

10 years ago in the collision repair industry (July 2007) Comedy Central’s new series, “American Body Shop” is a half-hour narrative that explores the completely

includes Rob (played by Nick Offerman), a savant-like technician whose solutions are usually far more complex than the problem. – As reported in Autobody News. Not even Offerman could save the series (check out a promo for the show at https://www.youtube.com/watch?v= PgvjDqrM448), which was canceled after just one 10-epidsode season.

against is when insurers mandate solutions that don’t bring tangible benefits to anyone other than themselves,” Schulenburg said. “For State Farm, I believe this is a step backward, for a company that has promoted open platforms in other areas.” David McBroom of the Florida Autobody Collision Alliance, said he has spoken with shops and vendors using the system in all four markets where State Farm is testing PartsTrader. Without exception, McBroom said, they told him, “It is inefficient. It is cumbersome. It creates additional work. It causes delays, adding cycle time of one or more days. It requires additional personnel at both the shops and the vendors.” Dan Hunsaker was the only shop owner who spoke at CIC who has actually used PartsTrader at his shop, located in Tucson, Ariz. He said vendor participation among Tucson

5 years ago in the collision repair industry (July 2012) Following presentations at CIC by George Avery of State Farm and Rob Cooper of PartsTrader, Aaron Schulenburg of the Society of Collision Repair Specialists, told the two that one thing that association members are upset about is the fact that PartsTrader in entering the U.S. market as an insurer-mandated system, rather than one that gains shop customers by offering a value proposition to them. “What we stand in opposition

See Public Criticism, Page 58

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Media and Publicity for Shops

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

The Technology Party: Are You Early, Late, or Indifferent? with Ed Attanasio

by Ed Attanasio

It seems like technology is going to change our lives whether we want it to or not. Some people think it overly complicates things while others rush to embrace it because they believe that it makes their lives and businesses better. In the collision repair industry, technology has helped body shops to do a better job across the board, especially on cars that have were made within the last 3-4 years. With new high-performance plastics, aluminium and sophisticated computer onboard systems on today’s newer cars, collision repairers are either changing with the times or being left behind when it comes to technology. We have seen this same scenario play out many times before. A new form of technology hits the market and some panic and run for the hills while others test the new technology and make their own decisions. I remember when California mandated the use of waterborne paint a decade ago. Some painters freaked out and avoided the switchover as long as they could. I even encountered one veteran painter back then who quit his job and went to another shop so that he could spray solvent for the next six months before it became law. When I first started writing about the collision industry more than 12 years ago, some body shop owners were still fighting the personal computer, shop management systems, social media and other forms of emerging technology. One veteran shop owner told me back then that his computer was a “silly box on my desk” and that social media was for soccer moms and people with too much time on their hands. Since then, the entire industry has become savvier about all forms of technology and more open to using it to do better repairs, which is obviously the idea. Back in 1962, Everett Rogers, a professor of communication studies wrote a book called Diffusion of Innovations in which he presented a theory that attempts to explain how, why, and at what rate new ideas and technology spread. Rogers argued that diffusion is the process by which an innovation is communicated over time among the participants in a social sys-

tem and then identified five distinct personality types. So, are you an innovator or a laggard or something in between? Take a look at each of these designations and decide for yourself:

Innovators (2.5%): Innovators will camp out in line for the new iPhone while most of us will wait at least until we read the reviews and get feedback from the innovators in our lives. These people are willing to pay top dollar to be the first on shop in their area to have the latest piece of equipment or tools. They are willing to take risks; are normally younger; usually have financial resources and are extremely outgoing and interact with other innovators. Innovators end up being the beta testers of the collision repair industry; love going to shows like SEMA to find the latest and greatest and will embrace technology 23 years before it becomes mainstream. Innovators love reading operating manuals cover-to-cover and can’t wait to tell their friends about the newest equipment they just bought for their shop.

Early Adopters (13.5%): These people are considered influential leaders whose opinions are respected. Early adopters are typically well-educated; have attained a higher social status; possess more financial lucidity; have and are more socially active than late adopters are. They are more discerning in their adoption choices than innovators are, but are still willing to take a chance on any type of training, tools or equipment that will help their daily operation.

Early Majority (34%): Individuals in this group will normally implement something new into their shop but only after the innovators and early adopters have set the table. They’re willing to accept change, but wary and unwilling to take chances, in most cases. They usually possess above average social status, and many of their friends, colleagues and associates are early adopters, but they rarely hold positions of opinion leadership in a system. For example, innovators and early adopters hold office in collision industry trade organizations, while early majority people are just happy to

56 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

be members. They’re willing to participate, but don’t want to lead.

Late Majority (34%): People in this category will adopt an innovation, but only after almost everyone else has. These individuals will approach an innovation with a considerable amount of skepticism. They will wait for all of the others to use a piece of equipment, management system or tool for a while and get some feedback before acting, but suffer from waiting as a result. Late majority people usually have below average social status; limited financial lucidity and possess very little opinion leadership. These people are still on the fence about things like OE certifications, plastic welders and even sophisticated measuring systems, but can be persuaded with solid information. Laggards (16%): Individuals in this category are the last to adopt any innovation and proud of it in many cases.

Showing little or no opinion leadership, laggards will typically fight change at every opportunity and tend to be 50 or older in age. They love to call themselves “old school” and likely have the lowest social status from anyone on this list with the lowest financial fluidity and the least education. Laggards are still using outdated tools; don’t value training and think social media is still for soccer moms and teenage girls and that’s why they’re likely not in the top 20% of all shops in this country. Curtis Nixon was a second-generation shop owner who was been an innovator his entire life. In 2009, he sold his family’s shop and founded UpdatePromise, a leading communication and technology provider to auto insurers, repairers and dealerships throughout North America. In the last eight years, UpdatePromise has grown at a tremendous rate and communiSee Technology Party, Page 62

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Continued from Page 48

Management Success

collecting their information and permission, he will pull their vehicle into the shop for an initial estimate. His team will even perform a light disassembly and then go through the damage report. I think this is great because even though they run a large operation, they still find the time to add that personal touch. In my opinion, it really demonstrates the level care they are providing to their customers.” On Thursday, attendees visited an O-Reilly distribution center where they studied organizational flows and SOPs on employee management. Friday featured a tour of a Snap-On Tools facility where participants observed research projects and learned about newly introduced equipment for the collision repair industry, followed by a seminar on leadership and communication. The highlight on Saturday morning was an interactive workshop on “Mapping Success,” presented by Management Success consultant Wenceslao Severi. Severi states, “Success comes through study, application and discipline. Don’t look for shortcuts - those Continued from Page 54

Public Criticism

dealerships is poor. His GM dealer, he said, withdrew from the program because of the time involved in quoting prices for many parts that never

In 2012, Arizona shop owner Dan Hunsaker pulled no punches in letting State Farm knew how he felt about PartsTrader’s impact on his business

turned into orders. Mostly, however, Hunsaker said he found the system more cumbersome than the electronic parts ordering system he’d already had in place. “I feel like a donkey that got dumped into the Kentucky Derby,” Hunsaker said. “It’s not efficient.”

ARE the shortcuts!” According to Doche, “With a total attendance of more than 30 people and 15 shops, collectively totaling gross sales of $25 million in 2016, the Management Success Top 20 Collision Meeting was a huge success, and all attendees left with a clear understanding of both their short-term and long-term

my shop was the ‘gong’ that Jody uses. When a customer is satisfied with our technicians’ work, they bang the gong. That catches a lot of attention, especially from our first-time customers. When they get to witness someone’s satisfaction, their reaction is priceless. I have also implemented the vacation calendar. I always had an idea of when

Management Success’s events provide plenty of networking opportunities for old and new friends alike

goals as well as a developed action plan for immediate implementation.” Steve Morrow of Capitol Collision shares his feedback: “My favorite part of the Top 20 meeting was networking and learning from other shops. I liked sharing ideas from a like-minded market. We are all non-competitor shops. Shop owners don’t usually share their ideas and what has worked for them. In the Top 20 group, everyone shares their ideas without wanting anything in return. An amazing idea I learned at the Top 20 meeting that I implemented at Hunsaker told Avery that the pilot has impacted how shops view and trust State Farm, and he’s sadly undecided whether he will remain on the Select Service program. – As reported in CRASH Network (www.CrashNetwork.com), July 30, 2012. Despite publicly sharing his negative views about PartsTrader and State Farm’s mandate throughout 2012 and 2013, Hunsaker’s shop remains on the Select Service Program today. “If this thing goes national, then I’ll sit down and pencil it out and I will make a very informed business decision” about whether to stay on the program, Hunsaker said in the spring of 2013. Hunsaker at that time also was asked if his company had experienced any blow-back from State Farm because of his outspokenness about PartsTrader. “State Farm is entitled to their opinions, and the collision industry is, too,” Hunsaker said. “No, I’ve haven’t had any repercussions yet. So far I’m saying what I think and I share all this with State Farm, too. I’m very clear with them about how I feel.” By late 2014, State Farm had rolled out mandatory use of PartsTrader nationwide.

58 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

my techs planned to use their personal time but it wasn’t organized. Now I don’t need to worry about having overlapping vacations.” Networking is a key component of the events hosted by Management Success as well. Jeff Yokum of Yokum’s Body Shop adds, “My favorite part was connecting with other shop owners on a different level. I always stay in contact with other shops, but now that I know them on a personal level, we share more ideas. 15 Minute phone calls have now turned to hour long con-

versations about our families. I can say that I built lifelong relationships with the top 20 group. The comradery of the top 20 group is pretty amazing. We are close and help each other all the time. We hold each other accountable in work and in personal lives. We care about each other like we are family. I don’t know where you could get that anywhere else.” Kotik shares, “Networking is one of the key benefits of meeting with the other shop owners twice a year. What I’ve realized is each shop owner may have a certain strength in an area of their business and they are willing to share their knowledge. When the group comes together, you can be in the middle of a conversation and before you know it, someone just provided a solution or an idea that you can take back and implement in your own shop.” Morrow adds, “The friendships that I have made through Management Success are getting even better and stronger. We get to grow together as a family and that’s a nice feeling.” Management Success will hold its 2017 Fall Convention on September 22–24 in Pomona, CA. For more information or to register, visit http:// managementsuccess.com/conventions/.

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Lean Operations

David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com

Lean Thinking of America’s Greatest Body Shops with David Luehr

When mentioning the word lean, most people in the collision repair business conjure up images of large corporate

conjuring up false images of people The Legal working View harder with less resources. To America’s greatest body shops, lean

with Jennifer Driscoll-Chippendale means something entirely different.

The word lean was popularized decades ago in James Womack’s book, The Machine That Changed the World, which described some of the innovative production systems being utilized with Erica Eversman by Japanese manufacturers. Toyota Motor Company popularized it through their Toyota Production System (TPS) which caught the attention of many as they became leaders of the auto manufacturing business. But to understand the true meaning of lean one must simwith Ed Attanasioply understand this… • Value stream = the process required to get the customer what they want from start to finish Dave Luehr teaching a lean blueprinting • Value added activity = the activities workshop in the stream that the customer is willlay-offs attempting do more work with ing to pay for with Ed Attanasio less people. Others think of lean as an • Waste = any activity in the stream that attempt to do car repairs faster, also the customer is not willing to pay for

The Legal View

Midwest Associations

National Associations

Lean is a way of thinking and the actions taken to remove waste from the value stream. As my good friend Rich Altieri says, “Lean means hands on car!” In other words, a practitioner in the collision repair business, is a person who develops systems or takes some kind of action to keep technicians continuously touching cars! Hands on car = Lean Hands off car = Waste Lean does not necessarily mean a particular vehicle moves faster through your production system. Lean thinking seeks to remove the obstacles and waste from the value stream, so most vehicles do end up getting finished faster and without the chaos usually experienced in traditional body shops. Think of it like a freeway. The purpose of a freeway is not to get you to your destination faster, it is to get everyone to their destination on time. The reason we experience traffic jams is because of “variables” caused by

factors such as everyone driving at different speeds. Some people are going 80MPH while others, 45MPH, all sorts of problems occur and soon we have a traffic jam. A lean freeway system would have everyone driving at the same speed and everyone reaching their destination in a predictable manner. On-time, every-time!

What a “lean” high volume shop looks like. (Body Shop Express – San Diego, CA)

Sadly, most collision repairers operate like the first freeway system I mentioned, where some vehicles are

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expedited because they are behind schedule or because an insurance partner requires favoritism. You feel like you are stuck in a traffic jam when you visit most of the body shops in our country!

Variable reduction A big part of lean thinking in collision repair involves removing the variables from a vehicle repair prior to entering it into our production system’s flow lane. It is a process of adding some “essential waste” in order to remove a much larger amount of “unessential waste” later on. Like an attempt to get all the cars traveling down the proverbial freeway at the same rate and making sure none of them break down and stall the roadway for everyone else. The most popular method for achieving this variable reduction is what we all know as repair planning or “blueprinting.” Many other industries remove variables in their systems, and they don’t call it lean, they call it preparation. Imagine if in an operating room the doctor would cut open a patient before prepping the person; forgetting to verify what part of the body is supposed to be operated on, and not lo-

cating the tools in advance he or she may need to keep the patient alive throughout the process. In the restaurant business, chefs frequently perform prep work (Mise en Place – French for “put in place”). Chef would quickly be terminated if he just heated up a pan, threw in the chicken, and then began searching for the kitchen tools, spices, diced vegetables and other things required to successfully create a delicious dish. Unfortunately, these are the very behaviors that many body shops make when working on a modern, high-tech, vehicle! They stick the car in a body man’s stall and start the repairs before we even know the full extent of the damage. This madness must stop! In the lean world of America’s greatest body shops, they are disciplined enough to take the extra time required at the beginning of the process to properly diagnose vehicle damage by incorporating OEM information, scanning for diagnostic trouble codes and then disassembling the vehicle completely to find any potentially hidden damage. Only then, do they order the parts and have them delivered in one single order on one invoice to further reduce

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wasted activities. This my friends, is lean thinking. At many body shops they employ a person with the title of “production manager.” At most shops, this person would be more appropriately be titled “Chief Fire-fighter!” In a lean shop, most administrative efforts are laser focused on the pre-production activities such as blueprinting, mirror matching parts for correctness, etc. When vehicles are properly prepped, the guys out in the shop don’t usually require much supervision or “management” because they will have everything they need to properly repair the vehicle without all the obstacles experienced in traditional shops. At many of America’s greatest body shops that apply “fire-prevention” a production manager is non-essential!

Chief® Vulcan ADU Approved by Ford, Mitsubishi and Nissan

Ford, Mitsubishi and Nissan approved the Chief Vulcan Adhesive Debonding Unit (ADU) for use in the structural repair of their vehicles. Vulcan is designed to use infrared heat to break the bonds of structural adhesives joining automotive steel, aluminum and carbon fiber panels. Using the Vulcan ADU, the company said technicians can debond panels faster and dramatically reduce the risk of damage to underlying components. “Most automotive OEMs are using increasing amounts of glue and epoxy adhesive bonding to add substantial strength to their cars and trucks without adding weight. Separating thin layers of material connected by these adhesives can be challenging,” said Lee Daugherty, director of collision sales, the Americas, for Chief parent company Vehicle Service Group (VSG). “We identified the need to find a better way to remove such adhesives without causing additional damage during collision repair.” Chief’s Vulcan ADU works on any vehicle surface, including aluminum, carbon fiber and steel.

Dave Luehr is co-author of “The Secrets of America’s Greatest Body Shops” and founder of the collision coaching and consulting organization “Elite Body Shop Solutions.” To learn more about The Secrets of America’s Greatest Body Shops, visit www.bodyshopsecrets.com To reach Dave Luehr email david .luehr@elitebodyshopsolutions.com

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CREF and ASE Introduce Future Collision Repair Industry Professionals to Potential Employers at 3rd Annual Cars, Careers and Celebrities Event by Chasidy Rae Sisk

As part of the Collision Repair Education Foundation’s (CREF) ongoing efforts to aid and support students pursuing a future career in the automotive industry, the organization is again partnering with ASE to host the 3rd Annual Cars, Careers and Celebrities Expo at 11AM-5PM on Friday, September 15. The event will be held in Joliet, IL at the Chicagoland Speedway hospitality village area next to the racetrack during Chicago’s NASCAR weekend, and students, instructors and administrators who participate in the career fair will also receive complimentary tickets to Friday evening’s races. Brandon Eckenrode, Director of Development for CREF, explains, “CREF and ASE are collaborating to bring together high school and college collision repair and auto service students from around the greater Midwest and beyond for this trade show and career fair, exclusively for them. We anticipate over 30 companies to participate who are looking to either meet students for employment consideration or showcase their products to the future professionals of the colContinued from Page 56

Technology Party

cates with millions of consumers and services throughout the United States. Nixon has seen the industry change through innovation at a lightning fast rate, and has also encountered many of the people in each of these categories. The percentages will always change as people gravitate toward or step away from technology, but technology is unavoidable, he explained. “The paradigm is shifting and more and more consumers are starting to use technology in every interaction they make,” Nixon said. “At first, it was all about entertainment and people connecting with family and friends through social media. That was the starting point of a major shift. Initially, it was primarily younger people connecting via sites like MySpace, but then it migrated to Facebook and now we have more than 60% of the people in this country with a profile on a social media site.” Are more laggards becoming early adopters or vice versa? “We’re seeing a huge change in the consumers’ adoption rate of technology, but we still encounter what we call ‘legacy employ-

lision and auto service industries. Many would argue that the average age of repair technicians is over 40 years old, and one of the largest concerns within the collision and other technical industries is finding entrylevel staff.” Eckenrode continues, “Through this event, our goal is to help introduce industry employers and students. We have heard that, through these events where students interact with industry members, they find motivation to stay within their programs. Instructors may sit in front of their classrooms and ‘talk’ about the industry that is out there for them, but at this event, students get to meet the actual companies and experience the demand for their skills firsthand.” CREF anticipates that around 1000 students will be in attendance due to the addition of automotive service students, and while the majority of these students are located in the Midwest region, CREF has already received interest from schools located in NC, PA and KS. During the Cars, Careers and Celebrities event, students will get to meet with national and local repair facilities, insurance companies and deal-

ees’ who are still reluctant about change `and holding onto the past. Business is run by technology and there isn’t any disconnection or loss of that personal approach when people use it, because that’s what they actually want. Sometimes our customers will tell us they think they can do something better without using the technology. They’re still attached to their paperwork and their notes and they pick up the phone and call their customers rather than use the technology that is available to them. The problem they run into is that their customers are moving faster than they are and they can’t keep up.” What would Nixon say if he could talk to every shop owner, tech, estimator or painter in the industry who is fighting technology every step of the way? “In today’s world where technology changes at a rapid rate, you can’t compete anymore if you’re losing opportunities and efficiencies by ignoring it or rejecting it,” he said. “Consumers now anticipate a certain level of service, which means that they are less forgiving and have higher expectations, so those that can embrace the technology more quickly will be the ones that will continually succeed.”

62 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

erships, as well as tool, equipment and paint companies. Eckenrode hopes to see more independent repair facilities get involved, noting “Companies who are (or will be) in need of entry-level staff should attend this event in order to meet prospective future employees. There are sponsorship levels to meet every budget, and we would encourage all companies to join us to help welcome students during this event.” Students will be required to RSVP for the event, allowing CREF and ASE to collect their resumes and contact information to share with event sponsors and potential employers. In an effort to create more value for students, Eckenrode says that this year “SkillsUSA will be administering a mock-interview tent so that students can practice their skills, and we are also working in interactive and hands-on activities for students to participate in.” Companies interested in participating in CREF and ASE’s 3rd Annual Cars, Careers and Celebrities Expo should contact Eckenrode at 847-463-5244 or Brandon.Eckenrode @ed-foundation.org. Companies must express interest by August 5th to be included on event signage.

CCC Information Services & CREF Scholarship Winners

CCC Information Services Inc., (CCC) and the Collision Repair Education Foundation are announcing three winners of the 2017 CCC Michael Salvatore Memorial Student Repair Technician Scholarship. Each student winner will receive a $3,000 scholarship to use toward their postsecondary education in collision repair. The CCC Scholarship Program rewards students who complete their education and find work in collision repair. This year’s recipients are: • Shawn Green of Washburn Institute of Technology in Topeka, Kansas • Jason Nelson of Highland Community College in Freeport, Illinois • Scott George of Utah Valley University in Orem, Utah “CCC is proud to support deserving students pursuing a career in the collision repair industry,” said Mary Jo Prigge, President, Service Operations, CCC. “As vehicle complexity continues to grow, advanced training is critical. Congratulations to this year’s recipients. We look forward to welcoming you into the industry upon the successful completion of your training.” Information about CCC is available at www .cccis.com.

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Shop Strategies The State of the Industry for Body Techs with Stacey Phillips

Most in the collision repair industry The largest source of hiring techsteadier work than other careers due ployer matching. would agree that the demand for qual- nicians (49 percent) came from anThe survey found that most shops to the demand across the country. Arified and motivated auto body techni- other body shop. The analysis of the mando Soto, associate vice president across the country now offer paid vawithhigh. Stacey Phillips cians is extremely A recent industry showed that “just over 25 percations to employees. More than half for talent acquisition at Service King report prepared by the Collision Re- cent were hired from the non-automoprovide health insurance and retireCollision Repair Centers, agreed. pair Education Foundation (CREF) tive industry or as their first job, which “A repair technician is certainly a ment benefits, although there was a and co-sponsored by the Inter-Indus- was higher than in 2013 (20 percent)” desirable career path for anyone look- significant decrease in health care try Conference on Auto Collision Re- when the survey was last conducted. ing for a rewarding, in-demand and lu- coverage in 2016. Nearly half of shops pair (I-CAR ) provided a snapshot of More than 11 percent came from the crative profession,” said Soto. Like currently offer life insurance and a collision repair business environments automotive industry. other forward-thinking companies, he growing number also provide disabilwith Stacey Phillips and the technicians working in them. ity and paid tuition. Some of the issues addressed include Three out of five shops surveyed said they compensation, benefits, training, reTasks Techs Can Expect cruitment and turnover. Those who responded to the 2016 hired at least one entry-level technician in “Previous surveys, conducted every survey were asked about the specific the past year three years, confirmed the need for a tasks they would expect a graduate of continual supply of qualified entry-level a technical school program to be able with Stacey Phillips technicians, while also showing changes The report also showed that the said Service King offers a litany of to perform with little supervision. concerning business operations and the average technician age has increased benefits to technicians. “Because of The top four tasks included prep for collision repair technician workforce,” to almost 41 years old, rising about 13 our growth and national support team, paint, R&R bolted parts, repair steel the executive summary stated. More percent since 1995. “A particular con- we are able to provide our family of metal dents and final detailing. The than 630 businesses responded to the cern for this industry is the growth in technicians with competitive pay and least expected skill was repair eleconline survey, which was conducted in the percentage of technicians over 50 benefits and a myriad of growth optrical systems. Some of the new tasks 2016 and represented over 4,500 techyears old,” according to the executive portunities.” The company also offers mentioned were: perform diagnostic nicians. summary. repair technicians a 401(k) with emSee State of the Industry, Page 70 with Victoria Antonelli “The auto body industry is facing the same ‘skills gap’ that skilled trades Compensation are experiencing across the United Many shops across the country are States,” said George Minehart, the providing technicians with an attracsenior manager of human resources for tive earning potential. After an analyGerber Collision & Glass. “We all have sis of the industry, it was found that an aging workforce without enough the average income for a technician with Ed people with the required skillsAttanasio entering has increased and is still higher than the labor market.” most comparable trades. Just under “I believe technicians in today’s half (48 percent) is based on flat rate collision repair industry have the great(commission) plans. Survey responVisit these Genuine est opportunities of all times,” said dents reported that nearly one in four Hyundai Parts Dealers Elisabeth Sobczak, performance traintechnicians receive a yearly salary of ing coordinator for I-CAR. “There is an $70,000 or more each year. Minehart enormous need in the industry for said body techs at Gerber Collision & highly-skilled and trained body techniGlass can earn up to six figures plus So. California cians who, if they choose, can become annually while doing what they are HARDIN HYUNDAI KEARNY MESA HYUNDAI leaders and experts as a result.” passionate about.

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The following is a summary of the information from the report:

Current Technicians Overall, it was found that while the total number of collision repair businesses has increased slightly, the number of technicians has increased significantly. “The percentage of small shops (with annual sales under $300,000) has declined significantly since 1995, while the share of large shops (over $1 million) continues to increase,” according to the report.

2016 National Annual Income Averages (U.S. Bureau of Labor Statistics): Collision Repair Technician $53,857 Electronics Technician $53,270 Machinery Mechanic $51,470 Tool & Die Maker $51,130 Chemical Technician $47,890 Carpenter (Gen/Maint) $46,870 Heavy Truck Driver $42,500 Medical Lab Technician $39,635 Welder $40,970

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MS Attorney General Tells Autobody News His Rationale Behind New Consumer Guide for Insurance and Auto Body Repair The attorney general’s office formed the Mississippi Auto Repair Task Force nearly a year ago, bringing In an unprecedented move, the Mississippi Attorney General’s office recently together auto body repair shops, the Mississippi Insurance Department, inreleased the “Consumer Guide to Insurance and Auto Body Repair.” Some surance companies, vehicle manufacbelieve it may be the first document of turers, and aftermarket parts makers from across the country. The goal was its kind (from an AG direct to consumers) and could be a model for other to discuss concerns and find common ground on best practices for the future states across the country to follow. Initiated by Attorney General Jim to better meet the needs of consumers. Hood said the Consumer ProtecHood, the document was written to give consumers guidance on what to tion Division in Mississippi often expect in the event of an auto collision. writes publications on different issues This includes the role of body to help educate consumers. shops and insurance compaLike many states across the country, the office receives nies, how to choose a collithousands of calls every year sion repair shop, the types of from those who have been in repair costs and warranties. a collision and have ques“We tried to put in writtions about the law and their ing what Mississippi law says rights when it comes to reand to give some guidance to Mississippi pairing their vehicles. Many consumers,” Hood told AutoAttorney General complain about the disputes body News during a recent inJim Hood between insurance compaterview. “They don’t have a lot of guidance out there so hopefully it nies and collision repair shops. Hood said the number of questions seems to helps. At least they know their rights when they get their vehicles repaired. have increased as a result of the techThat’s an upsetting situation for people nology now being used in vehicles. “Due to the lighter space-age mato be in.” by Stacey Phillips

terials used in newer model cars, the repair procedures, machines and training for collision repair technicians are very technical and expensive,” he said. “In order to place a vehicle back to its pre-accident condition, some body shops have to buy expensive machines or tools and have their technicians trained and certified on the repair procedures for certain makes of vehicles.” Hood said the problem arises when a body shop doesn’t purchase the necessary technology, computers, tools or get people trained or certified. Hence, the shops that don’t have these certifications and tools may do a repair for less money. “The goal of the insurance companies is to keep repair prices as low as possible,” said Hood. “Insurance companies are inclined to only want to pay the least amount whereas Mississippi law requires a proper repair. Therein lies the conflict for consumers to navigate.” As a result, Hood released the guide to help inform consumers about these issues. John Mosley, the owner of Clinton Body Shop in Mississippi, was part

of the task force, which consisted of nearly 40 people, including staff from the attorney general’s office and the Mississippi Department of Insurance. He said the release of the consumer guide may come as a surprise to the industry and will surely be of interest to many shops. “The collision industry from Mississippi was well represented on the committee and I think every major insurance company in the country was well represented by either an attorney or a claims person,” said Mosley. In addition, OEMs such as Honda and Audi were present to provide information and answer questions. Mosley said that over the last few years, body shops from across the state have kept in touch with the attorney general’s office in an attempt to help resolve issues with insurance companies pertaining to labor rates and the payment of different repair procedures. During the monthly meetings, Mosley said the taskforce discussed common issues consumers often inquire about. Some of the highlights include:

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The Right to Choose a Body Repair Shop The document explains the consumer’s right to choose a body shop. “Mississippi has an anti-steering statute that expressly prohibits insurance companies from trying to steer people to go to certain body shops,” said Hood. The document explicitly states, “You have the right to select the repair facility that you want to use and to participate in the decisions regarding the repair of your vehicle.”

Defining a Proper Repair Another topic of conversation that was included in the guide is defining a proper repair. According to Mississippi state law, Mosley said the most an insurance company must pay is the least amount they can have a vehicle repaired properly. “It doesn’t define what a proper repair is,” he said.

Prior to the consumer guide being released, a proper repair was not clearly defined other than to place the vehicle back to its pre-accident condition. When it came to coming up with a clear definition of a proper repair, Mosley said Hood wanted to know how vehicles are tested, why scanning is necessary and how aftermarket

parts are tested. “He wanted to know how these manufacturers came up with these guidelines, why they are asking for these specific procedures and try to determine what parts may affect consumer safety,” said Mosley. Excerpt from document: A proper repair is performed pursuant to the original equipment manufacturers’ (“OEM”) repair procedures and using OEM or OEM equivalent parts that have been properly tested pursuant to or meet the manufacturers’ specifications. It is the duty of your insurance company (or the third party’s insurance company) to pay for a proper repair. It is the auto body repair shop’s responsibility to make the proper repair.

The Appraisal Clause The document outlines pre-repair considerations consumers should be aware of, including the inclusion of an appraisal clause in some insurance policies. Consumers are encouraged to review the appraisal clause in instances in which they disagree with the insurance company’s estimate of repairs. “People are now aware that there is actually an appraisal clause in their policy and know at least to check

their policy,” he said.

Types of Parts Used During the Repair Another issue the attorney general’s office often addresses and is included in the guide is the use of OEM and aftermarket parts. “Technology has brought us a lot of good safety features but it has also brought some controversy as to whether or not you should buy an OEM part or whether you are entitled to an aftermarket part to return the vehicle to its pre-accident condition,” said Hood. The document explains to consumers, “You have the right to decide what type of part is used if your vehicle needs them replaced due to the accident.”

“He tried to make it fair for everyone,” said Mosley. “He told us that we’ll address any issues you have and at the end I’m going to come up with what I think is fair for the consumer.” Mosley said the overall reaction from the collision repair industry is positive. “I think he did a great job,” he said. “He did what I would want if I was a consumer and was trying to get a repair completed. I would want to know that I was at least entitled to a repair based on OEM procedures

and the parts that may affect safety would have to be OEM or equivalent to OEM with testing to prove that.” Now that the guide has been released in Mississippi, Mosley said many shops are hopeful that other attorney generals will follow suit and produce something similar in their respective states. “You would think that with cars becoming as technically challenging as they are and with the amount of safety systems that are in place on the vehicles now, that these AGs and insurance commissioners will have to take their head out of the sand and start looking at what actually needs to be done to make sure that a car is repaired properly to avoid people getting hurt or killed. I believe that is already happening and it is going to be more frequent if we don’t start getting proper training widespread across this country.” He encourages all shops no matter where they are located to read the paragraph in the guide that defines a proper repair. “Then ask yourself if that is the type of work your shop is doing. Are you putting that car back in pre-accident condition? If not, why? If the reason is because insurance comSee New Consumer Guide, Page 81

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Bronx Auto Shop Accused of Taking Money from Customers’ Insurance Companies by Arnold Diaz, PIX11

A Bronx auto body shop stands accused of taking money from customers’ insurance companies, but not fixing their cars. Inner City Automotive, on Blondell Avenue, is owned by Hancy Abreu. “My car has been there for five months,” says nurse Leticia Alexander.

“Every time I call I can’t get the owner. They say he’s not here, he’s sick.” Her insurance company paid Inner City more than $18,000 to fix her late model BMW after it was involved in an accident. That was last December and she’s still waiting for it be repaired. “They told me they were waiting on airbags, that airbags were back ordered”, says Alexander. “I called BMW myself and they said the airbags are not on back order.” She has now hired an Continued from Page 66

State of the Industry

scan, repair aluminum dents and aluminum welding. “As vehicles become more technologically advanced, the training and experience required to work on them will only exacerbate the existing skills gap,” said Minehart. “Well-trained body techs will benefit from this situation in terms of both earning potential and job security.” Minehart said entry-level body techs at Gerber focus on becoming proficient by working on smaller jobs like bumper repairs. They eventually build skills to perform plastic repair (both two-art and plastic welding), assist with tear downs and R&I and small filler work. “At Gerber, we are very focused on hiring entry-level body techs with the ‘soft skills’ required to be successful,” he said. Ideally, he said entry-level techs will be able to meet I-CAR’s Pro Level One requirements when they start their careers. “Having the right attitude and mindset is so important to use that we require all our apprentice candidates

attorney to sue the body shop, hoping to get her car back. Petrit Pepushaj has also been waiting since last December for his Toyota Highlander to be repaired. Two days after it was towed to Inner City Automotive, he tried to move his car to a Toyota dealer, but Inner City’s manager said Pepushaj would have to pay more than $5,000 to get his car out. That included charges for towing, storage, and 30 percent of the estimated repair cost, even though no work had been done on the car. “I can’t pay $5,000,” he told me, so he left the car at Inner City. His insurance company wrote a check to the body shop for more than $14,000 in December and the car is still not fixed. Steven Izarry knows Abreu from growing up in the same Bronx neighborhood. But that didn’t stop the body shop owner from ripping off Irizarry, who brought his Hyundai Sonata to Inner City after an accident. That was three months ago. Irizarry’s insurance company issued a three party check for $9,500 to pay for the repairs, but he says he never signed that check. “They signed my name. They

to go through a 30-day working interview at one of our locations so we can ensure they have the ability to follow instruction, show up to work on time and work independently,” said Minehart.

Training Opportunities Survey results showed that 68 percent of technicians have participated in ICAR training over the last two years and 36 percent said they have undergone some OEM training as well. “While some in the industry are running away from the technical tsunami, those who run into it have everything to gain,” said Sobczak. “Our industry doesn’t have a choice on these changes so those willing to be proactive in their education across the board, especially ICAR training, will reap great rewards.” Some companies across the United States, such as Service King, offer apprentice programs for new repair technicians entering the field. Not only does this help develop their skills, but Soto said it also provides a support system and promotes the industry. Recruitment Three out of five shops surveyed said they hired at least one entry-level

70 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

forged my signature and cashed the check and didn’t use the money for parts. Abreu texted him, saying “We working on your car but getting junk yard parts for your car isn’t easy.” When Irizarry said he was going to report the alleged forgery to the NYPD, Abreu texted “I don’t care about going to jail.” Irizarry did call the police last week and they escorted him to the body shop. He took his car out of the shop, but he doesn’t have the money to pay another shop to fix it. Irizarry and a number of other customers have spoken with the Bronx District Attorney’s office about Inner City and Abreu. The D.A.’s spokesperson says “We are aware of the accusations and are taking appropriate action. If there are other possibly complainants…they should call… (718) 838-7686.” In addition, the New York State Department of Motor Vehicles says it is conducting an “active investigation” into Inner City Automotive. I called Hancy Abreu. He hung up on me. I’ve left messages at the body shop, but he doesn’t return my calls. What a Shame! We thank PIX11 for reprint permission.

technician in the past year. When asked what they found to be the most effective recruitment method, the top three responses were asking vendors (44.9 percent), technical schools (38.1 percent) and online postings (37.9 percent.) Respondents ranked general career fairs as being low on the list of effective recruitment methods. As a result, CREF said it has launched collision repair specific career fairs in 2016 to help increase success rates. It was also found that more shops are participating on technical school advisory committees. “Of those businesses that have hired from a collision repair school program in their area, almost all would hire again,” according to the report’s findings. Many businesses are now requiring technicians to attend technical school or have prior industry experience. Soto said that Service King requires a degree or certificate from a technical school or one year of industry experience.

Turnover With a total of 187,800 technicians surveyed, approximately one of every seven (14.5 percent) left their jobs over

Massachusetts Lawmakers Consider Bills On Parts, Steering

A bill introduced in Massachusetts (S 109) would prohibit insurers from dictating the use of any part that “compromises the operational safety or structural integrity of the vehicle,” and would prohibit insurers from mandating the use of non-OEM parts “on any vehicle still under manufacturer warranty or lease agreement.” Another Massachusetts bill (H 2168) calls for changes to the required notice on any estimate including non-OEM parts. It would add to the current disclosure that the use of such parts “may void existing warranties.” It also would require that the notification be printed in not less than 12-point type (currently regulations allow it to be smaller). In addition, the bill would add a provision to state law to require insurers to notify drivers reporting a claim that state law gives them “the right to choose a registered repair shop of your choice,” and that “all registered repair shops must guarantee their repairs.”

www.autobodynews.com the last 12 months, according to survey results. The majority of technicians went to work at another shop (57 percent). “This is turnover within the industry and, while disruptive to an individual shop, does not increase or decrease the pool of available technicians,” the executive summary stated. In regard to industry turnout, it was found that approximately one in 16 collision technicians (6.2 percent) exited the trade in the last year. Some moved to a different position in the automotive business, while others left completely or retired. As the industry continues to grow, so will the need for more technicians. With a combination of industry outreach programs, proactive body shops and more communication overall, shops throughout the industry say that technicians will be assured of having a great career path to follow. “Becoming a body tech enables anyone who has a passion for cars to turn that passion into a career,” said Minehart. “For those who like working with their hands and love cars, I can’t think of a better trade to join.” Stay tuned for more information about upcoming initiatives involving hiring technicians of the future.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 71

Student at TX Technical College Says He’s “Fascinated by Everything” in Auto Body Program by Victoria Antonelli

Justin Maldonado started taking courses at Texas State Technical College in Harlingen, TX 10 months ago. Before his “love and passion for vehicles” led him to pursue a career in collision repair, he spent his winter holiday and summer breaks painting gym floors across the state. “This is a job that I had been doing since I was 12, so I’ve never had a normal Christmas or summer break,” Maldonado explained. “Every year I would be gone for months at a time just to be able to buy my own school clothes and help my dad, who had five other kids to provide for.” Through this job, Maldonado was able to paint some of the most renowned gyms in Texas, including the San Antonio Spurs, Houston Rockets, Texas A & M, Dallas Mavericks, and University of Texas floors. “Now that I have a wife and son, it’s so hard to leave them and not miss them while I’m on the road,” he said. “This is why I came back to school; I just want a job that allows me to come home and see them at the end of the day and is good pay, along

Justin Maldonado learns something new every day at Texas State Technical College

with many other benefits.” Maldonado’s father, who also attended Texas State Technical College, supported his decision to pursue trade school. Other members of his family were not as on board. “Most of my relatives wanted me to become a doctor or lawyer, but I just couldn’t see myself working in a doctor’s office for the rest of my life,” he said. Despite having no recent experience in the field, Maldonado said he’s catching on fast to the concept of body work, prepping, and painting. He’s already been able to use his newfound skills to make money on the side. “Early on in the first semester I

Auto Care Careers Offers On-Campus Recruiting Opportunities

As part of its ongoing recruiting and job placement efforts, Auto Care Careers has expanded its college and vocational school outreach to include Auto Care Careers on Campus. The new program partners with universities, colleges and vocational schools to promote the thriving auto care industry as a dynamic place to work. “The auto care industry has a great story to tell students, teachers and career counselors about the exciting career paths available to them in a wide variety of fields, from accounting and engineering to manufacturing and logistics,” said Bill Hanvey, president and CEO of the Auto Care Association. “We have already conducted successful on-campus recruiting events in Pennsylvania and Florida and look forward to

bringing the Auto Care Careers on Campus program to more colleges, universities and vocational schools across the country.” Working directly with the educational institution or through an industry company, Auto Care Careers on Campus will provide the tools and resources necessary to conduct on-campus events, whether in the classroom or as part of a career fair. To date, Auto Care Careers on Campus events have been held at Grove City College in Pennsylvania, the University of North Florida, and the University of Northwestern Ohio. To host an Auto Care Careers on Campus event at a local university, college or vocational school in your area, visit http://www.autocare careers.org/on-campus/ and fill out the online form.

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bought a cheap paint gun and some cheap products off Amazon and started painting YETI cups for gas and food money,” he explained. “I would paint the cups, put on the logo of the customer’s choice, and clear coat them as a way to help my wife pay the bills while I am still in school and am not working yet.” Maldonado said he’s enjoyed every part of his courses so much, it’s almost impossible for him to pick a favorite project. “I have been put on projects painting rims, and others where I’ve painted cars; each of them presented a new obstacle to overcome, making them all exciting to be a part of,” he explained. “Currently, I am working on an F150 with rust and a ton of body work that I am taking care of, and after, we will paint the whole truck then bed line the fender flares, rocker panels and tool box as well.” Maldonado will graduate in December 2017. He plans on securing a job before then. For more information on Texas State Technical College, visit www .tstc.edu.

Atlanta I-CAR Committee Awards $5,000 Scholarship

In conjunction with the Collision Repair Education Foundation, the Atlanta I-CAR Volunteer Committee has awarded a $5,000 scholarship to Mark Tanner, of Athens Technical College in Athens, Georgia. The scholarship was funded through the annual golf and car show fundraisers, hosted by the Atlanta I-CAR Committee. I-CAR Georgia State Chairman and Atlanta Committee Chairman Gerry Poirier stated, “The members of the Atlanta ICAR Committee have continued to focus on supporting new technicians entering the collision field. This scholarship will be critical in helping another student to realize their dream of entering the collision repair industry. Many thanks out to everyone involved in making this a reality.” Melissa Marscin, Director of Grant Programs at the Collision Repair Education Foundation, said, “The Collision Repair Education Foundation is thankful that groups like the Atlanta I-CAR Committee continue to support our scholarship program. These scholarships are life changing for students, and we’re proud to continue the program in 2017.” Visit www .CollisionEducationFoundation.org.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 73

ABRA Auto Body & Glass Awards Tool Grants to 10 Students Through CREF ABRA Auto Body and Glass is awarding 10 students with tool grants of $2,000 each through a grant and scholarship program with the Collision Repair Education Foundation. The winning students can use the grant to purchase tools from the NATEF tool list. The winners were selected from a pool of high school seniors and postsecondary students enrolled in collision repair programs and planning to graduate and enter the workforce in 2017. The student winners of the 2017 ABRA Auto Body & Glass spring tool grant are: • Willie Perry of Wilkes Community College in Wilkesboro, North Carolina • Leanne Rafferty of Chippewa Valley Technical College in Eau Claire, Wisconsin • Cesar Delgadillo of Chattanooga State in Chattanooga, Tennessee • Daron Hardy of Kennedy King in Chicago, Illinois • Scott George of Utah Valley University in Orem, Utah • Joshua Payne of Tennessee college of Applied Technology in Shelbyville, Tennessee • Seger Gott of Southwest Tech

Auto Body Collision in Fennimore, Wisconsin • Michael Castanias of Scarlet Oaks in Cincinnati, Ohio • Johnny Mosquera Jr. of Tennessee College of Applied Technology in Shelbyville, Tennessee • Anthony Tardivet of Metropolitan Community College in Omaha, Nebraska

“ABRA is proud to support the next generation of auto body technicians,” says Greg Peeters, ABRA vice president of training and development. “This grant provides bright students the basic tool set they need to launch an exciting career in the Collision Repair Industry.” For additional information about ABRA Auto Body & Glass, visit www.abraauto.com. Industry members interested in working together with the Collision Repair Education Foundation in supporting secondary and post-secondary collision repair students, instructors, and their school programs should contact Director of Development, Brandon Eckenrode at 847-463-5244 or Brandon.Eckenrode @ed-foundation.org.

Collision Repair Education Foundation Adds Battaglia to Leadership Team

The Collision Repair Education Foundation (CREF) announced that Christen Battaglia has joined CREF as Director of Strategic Partnerships. As a member of the leadership team reporting to Clark Plucinski, Executive Director, Battaglia will assist in growing the organization’s financial supporters, while assisting the organization in ensuring high school and college collision programs are fully engaged with support opportunities. Over the past several years, CREF has evolved from securing and distributing industry support for high school and college collision programs to connecting students with industry employers. With the addition of Battaglia, the Foundation can better work towards addressing the industry’s critical issue of recruiting for

its’ pipeline. “We are thrilled to have Christen on the team,” noted Plucinski. “Her automotive industry background and continued work with technical schools across the country will help bring the Foundation to another level. As the industry is in high demand of quality entry-level staff, Christen will be working closely with the Foundation staff, industry partners and career and technical education to ensure the industry has high caliber collision programs producing career ready employees on day one.” Before joining the Foundation, Battaglia was most recently with ASE/NATEF as Director of Alliance Partner Engagement. Prior to that role, Christen was Corporate Development Officer with SkillsUSA.

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I-CAR Nashville Committee Awards 7 Students with Grants Through CREF

This spring, through a grant and scholarship program with the Collision Repair Education Foundation, the Nashville I-CAR Committee is awarding three TCAT Livingston students with a $3,000 tool grant each and four Lincoln Tech students with a scholarship toward their post-secondary collision repair education.

This year’s recipients are as follows: Three students at TCAT Livingston will be awarded $3,000 tool grants. • Derrick Hammond • Dylan Eads • Reid Null Four students from Lincoln Tech in

Nashville, Tennessee. * Crystal Burt awarded $2,500 * Peyton Boyd awarded $5,000 * Sean Kimble awarded $5,000 * Morris Rothfeldt awarded $2,500 “As the Vice Chairman for I-CAR Nashville Committee, I am so proud of our committee’s continuous commitment to support the improvement of these technical schools and students,” said Kayla Williams, Vice Chairman for the I-CAR Nashville Committee. ” For information contact CREF Director of Development, Brandon Eckenrode at 847-463-5244 or Brandon.Eckenrode@ed-foundation.org.

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Copart Acquires Cycle Express

Having reached 200 locations worldwide and updating its mobile app earlier this year, Copart acquired Cycle Express, which conducts business primarily as National Powersport Auctions (NPA). NPA currently operates facilities in Atlanta, Cincinnati, Dallas, Philadelphia and San Diego. The company said NPA predominantly auctions pre-owned powersports units on behalf of finance companies, dealers and manufacturers. “We are thrilled that NPA is now part of the Copart family and believe the team’s expertise will enhance our capabilities,” Copart CEO Jay Adair said. “NPA is the leader in the powersports auction industry and shares our ownership mindset, commitment to challenging the norm, and focus on delivering results.” NPA CEO Cliff Clifford added, “We are very excited about teaming up with Copart. “Leveraging Copart’s resources and capabilities with NPA’s industry expertise and market leadership will allow us to kick NPA into high gear,” Clifford continued. “We’re looking forward to taking NPA to a whole new level of growth and success.”

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Consumer Article: Car Insurance Companies Offering Photo Claim Options by Kaitlin Goslee, FOX 61

The auto body industry reached out to FOX61 with concerns over a new technology many car insurance companies are encouraging customers to use.

Anthony Ferraiolo, president of the state’s Auto Body Association says there’s often more damage than what a picture can show

The service allowing customers to send photos of the damage to their car after an accident in for a claim, leaving out the appraiser as the middle man. The insurance companies using the service say it’s intended to be an added convenience to customers and to speed up the claims process. Anthony Ferraiolo, president of the state’s Auto Body Association argued there’s often more to car damage than what can be seen on a picture. He

explained this while recalling one of his own customer’s experience with the service. “She brought the car to me and when I physically inspected the vehicle I noticed the tire was cut, the suspension was damaged, the person should have never been driving the vehicle, it was not safe for the road,” Ferraiolo added the customer had been driving the car around in that condition for about a week. “The estimate that they had prepared was maybe a $600 or $700 estimate when the total cost of the repairs was maybe $4,000 when the job was done,” Ferraiolo said. “The cars are so complex today that you can’t see all the damage,” Bill Denya of Denya’s Auto Body said. He too has been noticing safety issues popping up with his own customers. “When you do it with a photograph you can tell if the light is out, the high beam’s out the blinker’s out the brake lights out, maybe all the brake lights are out now all of the sudden who’s going to hit you in the back,” Denya said. Denya and Ferraiolo brought their concerns to the attention of the Connecticut Insurance Department

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who told FOX61 they are looking into their concerns and encourage consumers to come forward with any issues they themselves are having. The department said, however, they

have not received any complaints on the matter from drivers. “It is new technology and it is like anything else that the department is going to look at and make sure that it is working properly within the market,” Gerard O’Sullivan, Director of Consumer Affair for the Connecticut Insurance Department, said. O’Sullivan emphasized that even when there is new technology, drivers are not required to use it. “This is always going to be the consumer’s choice, it’s up to the consumer if they want to do it this way if

they feel more comfortable then by means that’s their right to have someone come out an look at the car,” O’Sullivan said. Esurance, Metlife, and AllState are just a few of the insurance companies now offering the photo claim service. Some of the issues brought to FOX61’s attention were for claims made through Allstate, so we reached out to them. The responded by saying many of their customers have had a very positive experience with the service. “Allstate’s virtual estimating feature, QuickFoto Claim, allows customers to capture high quality photos of the damage to drivable vehicles using their smart phone. Regardless of whether the inspection is done physically or virtually, hidden damage is sometimes found by the repair shop. In these situations, Allstate will work with the repair shop to review the supplemental damage and issue additional payment if necessary,” said Allstate. We thank FOX 61 for reprint permission.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 75

Jobber 2016 Sales Slow According to Report Released in the 2018 Lang Aftermarket Annual by Lang Marketing

“Last year, Jobbers recorded their lowest annual sales growth since 2013. Although Jobbers achieved a moderate first quarter 2016 sales increase, their sales performance deteriorated over the balance of the year.” “The net result was the fifth weakest percentage increase in Jobber annual sales over the past ten years (2006 through 2016). See the just-released 2018 Lang Aftermarket Annual for more details on historical Jobber annual sales and the changing Jobber store count.”

Jobber Weak 2016 Second Half Jobbers recorded sales growth during the first three months of 2016, but then experienced a sharp decline in sales momentum over the balance of the year. Jobbers suffered negative same-store volume during the second half of 2016 compared to the previous year.

Annual Jobber Sales Increase for 2016 Jobber 2016 sales averaged a 0.91% annual increase, the lowest annual growth rate since 2013 and the fifth lowest annual percentage gain in the past ten years. Without the relatively strong first quarter volume, Jobber 2016 sales would have been much weaker.

Annual Jobber Volume 2006 to 2016 Annual Jobber sales varied substantially between 2006 and 2016. Jobber 2006 sales rose 1.08%, followed

by a much smaller 2007 percentage gain. Jobber suffered a 0.24% sales decline in 2008 (reflecting the Great Recession), only the second annual sales reduction recorded by Jobbers since Lang Marketing began measuring Jobber volume over 20 years ago. Jobber 2009 sales rose 0.26%, followed a stronger gain in 2010. Jobber sales growth slipped to 1.11% in 2011 followed by a smaller 2012 increase.

Three Year Sales Improvement Jobbers recorded an uptick in 2013 sales momentum, with a 0.81% annual gain, followed by a 1.32% increase in 2014 and an even stronger 2015 sales gain.

2016 Jobber Performance Jobber 2016 sales growth reached 0.91%, the lowest annual percentage gain since 2013 and the fifth smallest percentage increase since 2006.

Market Challenges Jobbers are facing a variety of strong challenges in both the commercial (wholesale) market and the fast-growing foreign nameplate aftermarket.

Foreign Vehicle Aftermarket The foreign vehicle aftermarket also presents challenges for Jobbers, as domestic nameplate cars and light trucks generally account for a greater share of their volume than foreign vehicles. Two-step Import Warehouses are expanding their share of the foreign nameplate aftermarket and generating a significant headwind for Jobber growth in this market.

Product Brands In many cases, mechanics at outlets that perform a high volume of foreign nameplate repair (Foreign Specialists, Repair Specialist, and larger Service Stations and Garages) often prefer OE, OE-Supplier and Foreign brands when repairing foreign nameplate vehicles. Some of these brands often are not available from Jobbers.

Six Major Takeaways • After three years of increasing annual volume growth, Jobbers recorded

a weak 2016 sales gain.

• Jobber 2016 sales climbed only 0.91%, the fifth lowest percentage growth since 2006.

• Jobber 2016 growth was uneven, with a moderate sales increase during the first quarter, followed by a sharp decline in sales momentum over the balance of 2016. Jobber same-store sales were negative during the second half of 2016 compared to the previous year.

• Besides dealing with a sluggish overall light vehicle 2016 aftermarket, Jobbers faced increasing competition from Retail Auto Parts Stores in the commercial (wholesale) market.

• The foreign vehicle aftermarket also presents challenges for Jobbers, since much of this volume involves OE, OESupplier and Foreign brands, which often are not available from Jobbers.

• Two-step Import Warehouses are presenting Jobbers with strong competition in the fast-growing foreign nameplate aftermarket.

Retail Auto Parts Stores Retail Auto Parts Stores (particularly the three largest chains) are providing Jobbers with growing competition in the commercial market. AutoZone, Advance, and O’Reilly each have underscored the importance of increasing their commercial busi-

New Jersey Bill to Require Warranty Disclosure Approved by Committee

Legislation (A.B. 2612) to require new car dealers to provide purchasers a written statement declaring it is illegal for manufacturers or dealers to void a warranty or deny coverage because aftermarket or recycled parts were installed was amended and approved by the Assembly Consumer Affairs Committee. As amended, the bill would now require the vehicle manufacturer to provide the written statement and not the dealer. The bill will now be sent to the floor of the Assembly for a vote by all members. The Magnuson-Moss Warranty Act regulates warranties for the protection of consumers and provides

ness, a market where they are competing head-to-head with Jobbers and steadily gaining sales ground.

that vehicle manufacturers may not deny warranty coverage based on the use of an aftermarket part alone. In December 2010, the Federal Trade Commission issued an Alert stating that the manufacturer or dealer must show that the aftermarket equipment caused the need for repairs before denying warranty coverage. Consumers are generally unaware of the rights afforded them under the law and many are forced to absorb the costs for repairs that were properly covered under the warranty. A.B. 2612 would simply provide that consumers be made aware in ten-point boldface type of these basic rights.

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 77

Craftsman Collision Sees How It’s Made at Pro Spot HQ

Pro Spot International, specializing in quality welding and repair products for the collision repair industry, proudly hosted the Craftsman Collision Management Team this past week at Pro

Headquarters in Carlsbad, CA. They visited the facility to tour the manufacturing plant, check out new products and grab lunch with the Pro Spot team. “Our team was extremely excited to see how our equipment is constructed and assembled and the new products being sold. The managers were able to see the innovation and quality built into the products to add Spot’s headquarters and manufactur- confidence to our operations and qualing facility in Carlsbad, CA. ity of repair,” said Rick Hatswell, The managers of Craftsman Col- Craftsman Collision Chief Operating lision stopped by on their annual man- Officer. Craftsman Collision was ager’s conference to visit the Pro Spot started in 1977 by Bill Hatswell. They have the largest family owned body shop chain in Canada, with 38 locations and counting. “On the tour they were able to see how we make our products from start to finish. They saw where engineering designs the latest Pro Spot products, the machine shop and sheet metal shops that create the parts from scratch, all the way to final testing, shipping & training”, explained Ashley Olsson, Pro Demonstrating the PR-5 Rivet Gun system, special dies Spot Director of Communiand extension cations.

new space we’ve designed for industry and product training” expressed Ashley. “A big thank you to Craftsman Collision and we welcome you back anytime!” Pro Spot owns three patents for special welding equipment and applications, and works with the majority of the largest auto manufacturers in the world. Pro Spot’s CarlsManagers of Craftsman Collision with Pro Spot Staff bad-based turnkey facility includes design, engineering, machine and sheet metal shops, powder coating, assembly, training and technical support. The Pro Spot equipment line includes resistance spot welders, dent repair systems, pulse MIG welders, rivet guns, dust-free sanding systems, and more. Showing the machining of parts for a Spot Weld Gun

After a renovation, Pro Spot added almost 10,000 sq feet to their plant and expanded their training classroom and workshop. “We were extra happy to host Craftsman Collision as they were the first to enjoy the

A Future Car May Be Protected from Hacking by Software Developed in San Antonio by Paul Flahive, Texas Public Radio

Someone looking to hack into your car probably isn’t trying to steal from your bank account... but the results could be far more damaging. [Sound of grinding] “OK, hold on tight...hold on.” [sound of impact] “Oh, Bleep!” That’s WIRED magazine’s Andy Greenberg being gently driven into a ditch by a couple of hackers. These guys could cut his breaks, turn off his transmission turn on or off just about every function while they sat in a living room, all by hacking into the computer for the car’s entertainment system—a system called Uconnect—and installing a software update. Chrysler issued a recall on all 1.4 million vehicles affected by the above hack and issued a software patch. Car manufacturers are starting to take this seriously. Here’s GM CEO Mary Barra at a tech summit last year: “Cyber security is one of the most serious challenges we face and we need to make it an industry priority,” she said. Modern cars have between 50 and 100 electronic control units or computers that run everything from your dome light to your automatic transmission, and as cars become more complex they

need to be updated. “If you can exploit an update system, it is like the golden entryway,” says NYU Professor of Engineering Justin Cappos. Many of the computers are networked together, but made by different vendors. Without many cyber security standards, he says it is getting easier and easier to hack car computers. Right now, it’s researchers who are doing it, “But it would not surprise me if we saw people with more criminal intent or nation-state actors start to launch these kinds of attacks in the near future,” says Cappos. He says if you can hack into one car computer, you can probably hack into a fleet of the same car. He and his collaborators have released what may be the beginnings of protection for those vulnerable computer update systems. Uptane is the name of the software just released and according to collaborator Cameron Mott from the Southwest Research Institute the car crash WIRED magazine demonstrated would never have happened with Uptane. “That update would have been detected and refused by the ECU. It would have been able to perform its

78 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

own protection against that particular attack.” That’s the hope anyway. Mott, Cappos and their research teams, which includes NYU’s Tandon School of Engineering, the University of Michigan and SwRI, are asking white hat—or ethical—hackers to tear their anti-hacking protection apart and find vulnerabilities. “Already there’s been some investigations into the code that has resulted in someone suggesting an improvement that could be made that was accepted.” This isn’t a silver bullet, they say, it is a beginning. And this is the ideal time. Car hacking is in its infancy. As cars become more complex with “driver assist,” driver-less technologies and increased internet connectivity—remote software updates will proliferate. “This is that perfect spot for being able to incorporate these kinds of elements into the design process and make sure things are being future-proofed for efforts coming up soon.” The Uptane software isn’t ready to be put in cars yet, but when it is researchers hope auto makers and parts manufacturers take advantage of it. The framework is free and open-source. We thank Texas Public Radio for reprint permission.

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Sherwin-Williams Gets Approval on Valspar

The Sherwin-Williams Company announced it has received regulatory approval from the United States Federal Trade Commission and the Canadian Competition Bu-

reau to complete its acquisition of The Valspar Corporation. The FTC and CCB were the only remaining regulatory approvals required to close the acquisition. SherwinWilliams expects to close the acquisition on June 1, 2017, subject to customary closing conditions.

www.autobodynews.com

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www.autobodynews.com | JULY 2017 AUTOBODY NEWS 79

The Importance of Attracting, Hiring and Retaining Women Employees at WIN’s 2017 Educational Conference by Chasidy Rae Sisk

Among the three breakout sessions offered on Tuesday afternoon during WIN’s 2017 Educational Conference was “Why Is It So Important to Attract, Hire and Retain Women Employees?” presented by Jody DeVere, CEO of AskPatty.com. DeVere began by observing that most women enter the collision repair industry by accident, but there is something special about the automotive industry, and it makes for a fun, challenging and interesting career. Starting with some statistics on female consumers, DeVere noted that women buy more than half of new cars, influence up to 80% of all vehicle purchases, and request 73% of service repair work, spending over $200 billion on new vehicles and vehicle servicing annually. Despite their strong role in the market, women continue to report poor automotive retail experiences, largely because women process information and make purchasing decisions differently than men. On average, women speak 20,000 words daily compared to an average of 3000-4000 for men who are prone to thinking and speaking in bullet point format. While women communicate through storytelling, this approach causes men to

stop paying attention. Some of the barriers to the industry hiring and promoting women include an unconscious bias among managers, a lack of work/life balance, a lack of female role models, a lack of

Jody DeVere’s breakout session addressed the importance and value of employing females in the collision repair industry

qualified incoming talent, and women’s confidence and aspirations. DeVere cautioned, “If you don’t understand female consumers, you won’t understand your female employees.” Although most companies in the automotive industry are interested in hiring females, they cannot retain them. Obstacles include women not applying for these positions, women wanting more base salary (especially millennials), and long hours creating child care

Herkules Rebates Make For Summer Savings Temperatures might be rising, but the cost of investing in great shop equipment is trending downward, thanks to rebates on select Herkules products. Quality, customer favorite Herkules

paint gun washers, carts and stands, crushers and even vehicle lifts come with cash back rebates if purchased by the end of August. These rebates range

from $15 to $200, available on eighteen different Michigan made products, from a Flex-Table to vehicle lifts. These Herkules products must be purchased between June 1 and August 30, 2017, and the redemption form submitted to Herkules by September 15, 2017; the rebate form and details are found at http://herkules.us/ summer-2017-rebates. Established in 1984, Herkules Equipment Corporation is a USA-based manufacturer with three distinct product lines. The original Herkules supplies the Automotive Paint & Body Repair industry, having designed, manufactured, and patented the first Paint Gun Washer. The BossLifts division supports the Oil Change, and Tire Service markets with innovative lifts and air jacks. The EnKon division designs and manufactures Scissor Lift Table Systems for the assembly and manufacturing industries. Herkules products are manufactured in Walled Lake, Michigan and supported by Michigan-based customer service.

80 JULY 2017 AUTOBODY NEWS | www.autobodynews.com

issues. Additionally, there’s a lack of a clear career path, HR benefits aren’t competitive with other industries, and there’s a risk of sexual harassment lawsuits. “Sexual harassment is prevalent in the automotive industry, and we should all be armed with how to respond,” DeVere stated. “We will only move forward together, along with the men who support us. We need everyone to be advocates for the industry and invite talented women to apply for jobs because they will bring new energy to your organization.” Culture is important to women as well - women tend to prefer teamwork, they like seeing other women in leadership roles, and they value mentorship programs. It is beneficial for companies to hire a mix of genders, races and cultures, and companies that hire women have proven to be more profitable, DeVere insisted. DeVere recommended using keywords in job descriptions to attract women from female-dominated fields, to employ a scripted and professional interview, and to onboard in days rather than weeks. It’s helpful to attach a new hire to multiple department heads to help a woman feel like she’s part of the organization, and providing ongoing

training and certifications will create loyalty as she’ll feel the company is investing in her. It’s also vital that companies promote top-performing women within the organization. Addressing the question of what is a female-friendly culture, DeVere shared the following: ■ Be intentional in hiring and recruiting women. ■ Maintain a culture women can thrive in. ■ Create flexibility to increase work/life balance. ■ Women must be shown a clear career path. ■ Strive to promote women. Women need other women as role models and mentors.

DeVere advised companies to include more women in leadership roles, encourage senior leaders to become sponsors, and create a culture of diversity and inclusion. Men should become members/sponsors, make networking opportunities more inclusive, and check for bias in their decision-making. DeVere urged women to “seek mentors and sponsors, expand your networking, take charge of your career, and set your own priorities. Women need to help one another and reach out to each other.”

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Continued from Page 69

Chief Reintroduces Impulse Tilt Frame Rack Meets Customer Demand for a Basic Rack That Can Handle Most Jobs ®

Chief is bringing back the impulse Tilt frame rack in response to customer requests for a basic frame rack that’s reliable and affordable. The impulse Tilt rack offers easy loading with interchangeable driveon ramps and a tilting platform. Its low pressure air-over-hydraulic system provides plenty of power and tight control for performing fast, high-quality repairs. It can handle most vehicles, including light trucks and smaller SUVs – and is available at a value-oriented price.

“The market was showing a renewed interest in an entry-level frame rack that offered both strong value and a simple design,” explained Lee

Daugherty, director of collision sales, the Americas, for Chief parent company Vehicle Service Group (VSG). “That’s a perfect description for the impulse Tilt, so we are once again making it available. Our large network of distributors in North America really

helps us stay in touch with the needs of collision repair shops across the country, and we’re proud to respond quickly to meet those customer needs.” The impulse Tilt offers true 360-degree pulling capability. It comes equipped with two towers that each provide 10 tons of pulling power at the hook. The towers are designed to allow ganging around the deck – even at the corners – for increased pulling control. Pinning and securing of the towers is ac-

complished with one easy movement using the patented Sure-Lock™ mechanism. Additional towers can be added for increased pulling capabilities. The deck on the impulse Tilt is designed to work at a single height. The frame rack comes with Chief’s Universal Anchoring System with eight working heights, so techs can adjust it to most vehicles for precise four-point positioning. The system features Chief’s Uni-Clamp design, which uses a hardened saw tooth design, so technicians can quickly secure the vehicle in the clamps and get to work. To learn more about the Chief impulse Tilt frame rack, visit www. chiefautomotive.com/frame-machines /impulse-tilt/, contact your local Chief distributor or call (800) 445-9262. Chief is also active on Twitter, twitter .com/ChiefAutomotive and Facebook, www.facebook.com/ChiefAutomotive. For video, visit chiefautomotive.com /video-library.

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UPDATED DAILY

New Consumer Guide

panies are not allowing you to or you think they are not allowing you to, you either need to become more involved or your customer needs to be involved and you need to start putting that appraisal clause into play more.” Autobody News reached out to the Mississippi Department of Insurance regarding the consumer guide several times and received no response. For more information about the Consumer Guide to Insurance and Auto Body Repair, visit http://www .ago.state.ms.us/wp-content/uploads/ 2017/05/AUTO-BODY-REPAIR-ACONSUMERS-GUIDE_Final.pdf

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