Autobody News August 2011 Western Edition

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Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time

Back on July 11, Allstate Insurance Company announced to its DRP participants that shops will be required to honor completion dates or assume all

Tracy Tramm, Allstate Claim Service Manager, announcing process changes via video

related costs, expedite estimate and upload completion times, and extend

their hours of operation, when necessary, for the convenience of Allstate customers.

Now Allstate’s customer service initiative for 2011 has been expanded.

The new program requirements were introduced to shops in a series of cycle time web conferences held recently. Those unable to view the web conferences are encouraged by the company to contact their local performance managers.

Allstate is making “several key process changes” within its Good Hands Repair Network that the company says are designed to positively See Allstate Process, Page 30

Shop Owners Share Frustrations Renegotiating Contracts with Information Providers

by John Yoswick

The experiences of a number of shop owners around the country serve as a reminder to make sure you always understand the terms of any contract you are signing. Failure to read the fine print—or negotiate clauses for additional rights to end even something as seemingly innocuous as a software contract—have cost some shops tens of thousands of dollars.

A shop owner in California, for example, has been disappointed in the response he has received from one of the Big Three information providers

to his requests over the past 18 months to renegotiate his software contract. The shop owner, who asked that his name and the provider’s not be used, said he purchased a complete package—hardware and software—from the provider, but realized shortly after he did so that he did not intend to the use the shop management module of the package.

“We’re not a large enough shop to benefit from the time I’d have into using it,” the shop owner said.

While he wants to continue using the company’s estimating system, as See Contract Frustration, Page 14

VOL. 29 ISSUE 8 AUGUST 2011

California Appeals Court Rules Consumers Can Sue Insurers For Steering in ‘Hughes’ In a potentially far-reaching decision, the California Court of Appeal has overruled a previous trial court decision, to say that an Insured is entitled to bring a claim against an insurer under California’s unfair competition law for violating the state’s anti-steering statute. This ruling appears to allow for insurance companies to be sued for violations of the state’s antisteering law, Insurance Code section 758.5. In this specific case, the insured was awarded his legal costs in bringing the case against Progressive.

The California Court of Appeal, Second Appellate District, published its decision on June 15 which reversed

a dismissal in favor of an insurer of a claim filed under California’s Unfair Competition Law (UCL). The UCL claim was premised solely on the insurer’s alleged violation of Insurance Code, section 758.5, which prohibits an insurer from steering (requiring or even suggesting its insured use certain automobile repair shops).

In the trial court action, California resident Chris Hughes, while insured by Progressive Direct Insurance Company, was involved in an accident on August 15, 2005. Hughes advised Progressive Direct of the accident and informed it he wanted

REGIONAL STORIES in this issue...

See CA Steering, Page 18

CA Cities Top Eight of 10 Cities With Most Car Thefts . . . . . . . . .p. 4

BMW May Recycle Ontario, CA, Workforce . . . . . . . . . . . . . . . . . .p. 6

CA Hybrid Drivers Sent Back to Traffic Lanes . . . . . . . . . . . . . . . .p. 6

Former San Diego Car Dealer Found Dead In FL Home . . . . . . . .p. 9

Encinitas, CA, Auto Shop Recognized as Eco-Friendly . . . . . . . .p. 9

Santa Clara CAA Golf Tournament Postponed . . . . . . . . . . . . . . .p. 11

NATIONAL Articles in this issue...

Reorganized Lehigh Valley Collision Repair Association Now

Serves Eastern Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 16

Chevy Cars Get Highest Brand Share in 20 Years, GM Says . . . .p. 17

Detroit 3 Meet with UAW on Feds New CAFE Standard . . . . . . . .p. 21

The Devil in the Details—Measuring Metrics Properly . . . . . . . . .p. 34

Dealership-based Body Shops Down by 24% Since Recession Began .p. 36

Comprehensive Review of Distracted Driving Research Released .p. 39

COLUMNS in this issue...

Insurance Insider — Don’t Become an Insurer’s Puppet . . . . . . . .p. 24

Williams — How is a Dealership Selling Wholesale Parts Distinctive? .p. 26

Weaver — How to Keep Your Cool With HVAC Diagnostics . . . .p. 29

Sisk — Reedman-Toll in PA, Dealership’s Parts Bottom Line . . .p. 40

Sisk — E.J Henry and Sons in DE, Specialists and Generalists .p. 44 Chess — Are Your Repair Methods Ten Years Out of Date? . . . .p. 48

Evans — Lesson Learned: Re-Painting a 57 Thunderbird . . . . . .p. 51

I-CAR — Thin-Film Technology Comes to Collision Repair . . . . .p. 53

Change Service Requested

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2 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL Allstate Announces ‘Process Changes’ Designed to Improve Network Cycle Time . . 1 Allstate Shakes Up President’s Position, Shares Drop on the News . . . . . . . . . . . . . 30

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

AAPEX Trade Show . . . . . . . . . . . . .13 Audi Wholesale Parts Dealers . . . . .48 Autoland Scientech . . . . . . . . . . . . .29 Automotive ID . . . . . . . . . . . . . . . . . . .4 BK Listings . . . . . . . . . . . . . . . . . . . .17 BMW of Vista . . . . . . . . . . . . . . . . . .10 BMW Wholesale Parts Dealers . . . .41 Buerge Chrysler-Jeep-Dodge . . . . .15 California Superstore . . . . . . . . . . . .56 Carlsen Volvo . . . . . . . . . . . . . . . . . .40 Chief Automotive . . . . . . . . . . . . . . .23 Classifieds . . . . . . . . . . . . . . . . . . . .55 Crevier BMW . . . . . . . . . . . . . . . . . .18 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .21 Drew Hyundai-Volkswagen . . . . . . .25 DuPont . . . . . . . . . . . . . . . . . . . . . . . .5 Elk Grove Toyota . . . . . . . . . . . . . . .11 Enterprise Rent-A-Car . . . . . . . . . . .49 Equalizer Industries . . . . . . . . . . . . .36 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .33 Galpin Motors . . . . . . . . . . . . . .26, 35 Garmat USA . . . . . . . . . . . . . . . . . . .14 GM Wholesale Parts Dealers . . . . . .47 Honda/Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .52 Hyundai Wholesale Parts Dealers . .44 Kia Motors Wholesale Parts Dealers .37 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .54

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2011 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Western

COLUMNS Attanasio, BASF - Prestige Imports is a BASF Waterborne Advocate in Colorado. . . . . . . 19 Chess - Are Your Repair Methods Ten Years Out of Date?. . . . . . . . . . . . . . . . . . . . . . . 48 Evans - Lesson Learned—Re-Painting a ‘57 Thunderbird . . . . . . . . . . . . . . . . . . . . 51 I-CAR - Thin-Film Technology Comes to Collision Repair . . . . . . . . . . . . . . . . . . . . 53 Insurance Insider - Hate the Way the Strings Are Pulled? Don’t Become an Insurer’s Puppet . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Schroeder - Carl Owen’s Paint and Body in Tyler, TX, Offers Top Rated Auto, RV and Truck Repair. . . . . . . . . . . . . . . . . . . . . . . 46 Sisk - Edward J. Henry & Sons, Auto Body Specialists and Body Generalists . . . . . . . 44 Sisk - Reedman-Toll in Langhorne, PA, Finds Ways to Boost its Bottom-Line . . . . . . . . . 40 Weaver - How to Keep Your Cool When Working With HVAC Diagnostics. . . . . . . . 29 Williams - What Makes A Dealership Selling Wholesale Parts Distinctive? . . . . . . . . . . 26 Yoswick - State and Federal Governments Consider New Insurance Regulations . . . . 22

Assured Performance and CARFAX Join Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Audi Plans to Build Cars in North America, Eventually . . . . . . . . . . . . . . . . . . . . . . . . 35 Chevy Cars Get Highest Brand Share in 20 Years, GM Says. . . . . . . . . . . . . . . . . . 17 Chrysler is Free and Clear After Paying Back Federal Loans . . . . . . . . . . . . . . . . . 43 Companies Working to Expand Natural Gas Vehicle Options . . . . . . . . . . . . . . . . . 28 Comprehensive Review of Distracted Driving Research Released . . . . . . . . . . . . 39 Crashes Increase in New York State’s Roundabouts . . . . . . . . . . . . . . . . . . . . . . 43 Dealership-based Body Shops Down by 24% Since Recession Began . . . . . . . . . . 36 Detroit 3 Meet with UAW on Feds New CAFE Standard . . . . . . . . . . . . . . . . . . . . . 21 Fiat and Chrysler to Get Single Management Structure . . . . . . . . . . . . . . . . . . . . . . . . . 25 GM is Top OEM in Truecar.com June Performance Scorecard . . . . . . . . . . . . . . 35 Groupon Offers First New Car Deal With Detroit Auto Dealership. . . . . . . . . . . . . . . 21 Hertz Files Premerger Notice with Federal Antitrust Regulator . . . . . . . . . . . . . . . . . . 35 Hertz to Acquire Donlen in $930M Transaction . 35 Honda Accord, Buick Enclave, Chevy Traverse get 5 stars . . . . . . . . . . . . . . . . . 45 Hyundai and Kia Both Raise 2011 Sales Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . 17 J.D. Power Survey Ranks Ford 23rd out of 32 Auto Brands, of US Manufacturers Only Cadillac Makes the Top Ten . . . . . . . 32 KBB Says Honda & Toyota Challenged by Hyundai for Tops in Brand Loyalty, Hyundai Holds Top Spot for Latest Quarter of 2011. 32 Michigan Expects Bright Future for Electric Vehicles in State. . . . . . . . . . . . . . . . . . . . 42 New Vehicle Dealerships’ Sales for Service, Parts, and Body Shop Sales Total $78M . . 36 NHTSA May Probe Hybrid Accord’s Acceleration . 17 Nissan Researching Solar Charging for Batteries in its All-Electric Leaf . . . . . . . . . 28 NSF International Launches New Aftermarket Parts Distributor Certification Program . . . 47 QMT 1000, New Metal Tester, Saves Time and Ensures Safe Repairs. . . . . . . . . . . . . 38 Rare Parts Announces Datsun Kit . . . . . . . . . 14 Ray LaHood Softens Stance on 56 mpg Fuel Standard for 2025 . . . . . . . . . . . . . . . 42 Reorganized Lehigh Valley Collision Repair Association Now Serves Eastern Pennsylvania . . . . . . . . . . . . . . . . . . . . . . 16 S.C. Pre-files Legislation Reflecting NCOIL Model Parts Act . . . . . . . . . . . . . . . . . . . . 52 Shop Owners Share Frustrations Renegotiating Contracts with Information Providers . . . . . 1 The Devil in the Details—Measuring Metrics Properly . . . . . . . . . . . . . . . . . . . . . . . . . . 34 U.S. Demand No Longer the Single-Largest Driver of Oil Prices, Consumption in China and India Expected to Push Prices Higher . 42 VW sales up 35% in U.S. Could top 300,000 this year. . . . . . . . . . . . . . . . . . . 50 Walker Automotive Among Largest US Dealerships . . . . . . . . . . . . . . . . . . . . . . . 30

Indexof Advertisers

REGIONAL AAA to Shift Hundreds of Jobs from Walnut Creek to Emeryville. . . . . . . . . . . . . . . . . . . 4 And You Thought You Knew Ugly Dogs . . . . . 10 Arizona Car-Part Stores Have Pricing Issues . . 8 Assemblyman Honors San Carlos Auto Shop . 4 BMW May Recycle Ontario, CA, Workforce. . . 6 CA Authorities Quiet About Salinas Auto Shop Raids . . . . . . . . . . . . . . . . . . . . . . . 10 CA Cities Top Eight of 10 Cities With Most Car Thefts . . . . . . . . . . . . . . . . . . . . . . . . . 4 CA Green Car Rebate Program Put on Hold. . . 4 CA Hybrid Drivers Sent Back to Traffic Lanes . 6 California Appeals Court Rules Consumers Can Sue Insurers For Steering in ‘Hughes’ . 1 Encinitas, CA, Auto Shop Recognized as Eco-Friendly . . . . . . . . . . . . . . . . . . . . . . . . 9 Fire Damages Dozens of Cars in San Francisco . 4 Former San Diego Car Dealer Found Dead In FL Home, Police Arrest Live-In Girlfriend . . . 9 NV Motorists to Pay More for Driving Without Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 6 NV Passes Driverless Car Legislation . . . . . . . 8 NV: 34th State to Ban Texting While Driving. . . 6 Orange County, CA, Hybrid Auto Firm Hiring . 11 Registration Uncertainty Hurting California Businesses . . . . . . . . . . . . . . . . . . . . . . . 12 San Diego Collision Center Welcomes New Leaders, Name. . . . . . . . . . . . . . . . . . . . . 11 Santa Clara CAA Golf Tournament Postponed . 11 Tuttle-Click Dealerships to Extended Vehicle Service Contracts. . . . . . . . . . . . . . . . . . . 12 Under-Inflated Tires, a Common Problem in AZ . 10 Western States Top Nation for Most Expensive Repairs . . . . . . . . . . . . . . . . . . 13

Mazda Wholesale Parts Dealers . . .50 Mitsubishi Wholesale Parts Dealers .53 MOPAR Wholesale Parts Dealers . .31 Moss Bros. Chrysler-Jeep-Dodge . . .7 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .42 Normandin Chrysler-Jeep-Dodge . .11 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Pro-Spray . . . . . . . . . . . . . . . . . . . . .12 Rally Hyundai-Kia . . . . . . . . . . . . . . . .9 Rare Parts . . . . . . . . . . . . . . . . . . . . .30 RBL Products . . . . . . . . . . . . . . . . . .16 Rely-On Technologies . . . . . . . . . . . .6 Replica Plastics . . . . . . . . . . . . . . . .45 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .39 Safety Regulation Strategies . . . . . .34 SATA Spray Equipment . . . . . . . . . .22 Scorpion Coatings . . . . . . . . . . . . . .24 Shingle Springs Nissan-Subaru . . . .8 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .32 Subaru Wholesale Parts Dealers . . .43 Timmons VW-Subaru . . . . . . . . . . . .20 Toyota Wholesale Parts Dealers . . .45 VIM Tools . . . . . . . . . . . . . . . . . . . . .51 Volkswagen Wholesale Parts Dealers .46 Volvo Crash Wholesale Dealers . . .38 Weatherford BMW . . . . . . . . . . . . . .27

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 3

CA Cities Top Eight of 10 Cities With Most Car Thefts

The National Insurance Crime Bureau (NICB) released its annual list of cities with the most car thefts, and Fresno, Calif., tops the list. In fact, eight cities in the top 10 are in California, with the remaining two in Washington state. Right behind Fresno are two other Central Valley cities, Modesto and Bakersfield.

Sacramento, Stockton, and an area including San Francisco, Oakland, and Fremont also make the list. Spokane, Wash., comes in at No. 4. Surprisingly, Los Angeles is all the way down at 23.

Here are the top 10 cities for car theft in 2010: 1. Fresno, Calif.

2. Modesto, Calif.

3. Bakersfield-Delano, Calif.

4. Spokane, Wash.

5. Vallejo-Fairfield, Calif.

6. Sacramento–Arden-Arcade–Roseville, Calif.

7. Stockton, Calif.

8. Visalia-Porterville, Calif.

9. San Francisco-Oakland-Fremont, Calif.

10. Yakima, Wash.

For more information please visit www.nicb.org.

Assemblyman Honors San Carlos Auto Shop

Assemblyman Rich Gordon, D-Los Altos, honored A+ Japanese Auto Repair of San Carlos on California Small Business Day, June 23, according to the Palo Alto Daily News.

“I am constantly impressed and encouraged by the leaders in the small business community for their ability to solve pressing problems while creating quality jobs,” Gordon said in a statement issued June 6.

“This year, I am honored to recognize A+ Japanese Auto Repair for their innovation in sustainability and for being among the first certified Green Auto Repair Businesses.”

Since its founding in 1997, A+ Japanese Auto Repair has served more than 5,000 customers throughout the Bay Area, according to Gordon’s office. Owners Eric and Adam Sevim redesigned their business plan to make every aspect of it sustainable.

California Small Business Day was established in 2000 by the Assembly to recognize the contributions of small businesses. Over the years, an increasing number of senators and assemblymembers have gathered on the day to honor a small business from their district.

AAA to Shift Hundreds of Jobs from Walnut Creek to Emeryville

As part of a reorganization, AAA will physically separate its primary operations into two units and plans to shift hundreds of jobs from Walnut Creek to Emeryville, CA, the company said July 7 according to the Contra Costa Times.

AAA of Northern California, Nevada and Utah—the automobile club—will move its headquarters and primary offices to Emeryville.

Roughly 300 AAA Auto Club employees will work at 1900 Powell St., said Cynthia Harris, a spokeswoman for AAA. The AAA Insurance Exchange, which mainly offers auto, property, life and specialty insurance, will retain its headquarters at the Station Landing office complex in Walnut Creek. About 750 AAA Insurance employees will stay in Walnut Creek, Harris said.

“The move,” Harris said, “will help the AAA Northern California, Nevada and Utah auto club and AAA NCNU Insurance Exchange focus more strategically on their respective lines of business.”

The auto club employees should be in their new location in Emeryville by fall, Harris said.

The auto club intends to rent 75,000 square feet in Emeryville, she added. The deal was arranged through

commercial realty brokerages Cornish & Carey and Jones Lang LaSalle. The Emeryville building where AAA is moving the auto club is in the four-building Watergate office complex. That building is one of three Watergate office towers that LBA bought in December 2010 for $130 million.

“The AAA deal is a huge coup for LBA,” said Aileen Dolby, a commercial realty broker with Colliers International.

The vacancy rate for prime offices in Emeryville is 18.3 percent.

Once AAA fills the space, that vacancy rate will improve to 15.5 percent. The office tower AAA will occupy is 60 percent vacant, and the vacancy rate will shrink to 23 percent with that single deal.

“Rental rates have been down in Emeryville,” Dolby said. “It’s been a hard market. Rents are rising in Oakland, and they are rising in Berkeley.

It would be nice from a landlord’s point of view to get rents rising in Emeryville, too.”

The Auto Club operations include membership, emergency road service, automotive, DMV, financial services and consumer discounts to more than 4 million members. The club also sells insurance through agents at its retail sites.

4 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

CA Green Car Rebate Program Put on Hold

If you’re in California and shopping for an environmentally-friendly car, there’s a bit of bad news.

The California Air Resources Board (CARB) said on its website that the $11.1 million in state funding for its Clean Vehicle Rebate Program (CVRP) “has been completely distributed,” according to Consumer Reports.

About 1,400 Californians who purchased a pricey, green vehicle—such as the $33,000 Nissan Leaf or the $41,000 Chevy Volt— have already pulled almost $7 million in rebates from the program.

And the remaining funds have already been ear-marked for distribution via rebate checks ranging from $1,500 to $5,000, depending on the clean car purchased by the consumer.

CARB’s California Center for Sustainable Energy, which manages the CVRP, is still accepting consumer applications for clean car rebates. But those new clean car owners most likely won’t see any checks until more money is infused into the program next month, the start of the state’s 2011-2012 fiscal year.

There is good news, however.

According to CCSE’s website, the clean vehicle program is expected to receive up to $17 million in funding.

From that new round of funding, the CCSE could distribute as many as 6,000 rebate checks to qualified Californians.

Rebate amounts will be cut in half: $2,500 will be the most any new green car owner in California will receive from the program. And with the CVRP still operating on a first-come, first-served basis, CCSE says new clean car shoppers should apply for the rebate as soon as possible.

Fire Damages Dozens of Cars in San Francisco

Dozens of rental cars have been damaged or destroyed in a weekend fire at a parking lot in South San Francisco.

The San Francisco Chronicle said as many as 45 cars were damaged in the blaze in the afternoon on July 3 at the Hertz rental car lot.

No injuries are reported.

Witnesses reported hearing fireworks go off shortly before the fire started.

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 5

CA Hybrid Drivers Sent Back to Traffic Lanes

For six years, California has allowed solo hybrid drivers to ride in the carpool lane. Now hybrids are about to lose the special privilege that was intended as a reward for saving gas and protecting the environment. The vehicles are no longer novel, and transportation officials want to make way for a new generation of even cleaner cars.

Starting July 1, 85,000 hybrid owners must get back in line with everyone else or face steep fines, according to the Associated Press.

State officials say the time has come to end the hugely popular incentive program introduced in August 2005 because they’ve met their goal of getting drivers to switch to lowemission hybrids, which run on both electricity and gasoline.

For some Southern California road warriors, using the HOV lane can cut their commuting time in half, but it’s an advantage normally reserved for cars carrying at least two or three people.

Cars with white Low-Emission Vehicle stickers can still ride solo in the HOV lanes. These cars include natural gas and all electric vehicles.

NV: 34th State to Ban Texting While Driving

Nevada has become the latest state to adopt a ban on texting behind the wheel as well as outlawing motorists from being able to use their cell phones while driving.

Ray LaHood, Secretary of the Department of Transportation, praised Nevada’s governor for supporting driver safety.

“I commend Governor Brian Sandoval for signing legislation that will help save lives and put a stop to dangerous distracted driving behavior on Nevada roads,” said LaHood. “In a split second, the consequences of texting behind the wheel can be devastating. There’s no call or text so important that it can’t wait.”

This move makes Nevada the 34th state to ban texting while driving and the ninth to forbid drivers from using a hand-held cellphone behind the wheel.

Violators will be penalized $100 for the first offense, $200 for the second and $250 if they’re ticketed a third time for cellphone use.

Auto insurance premiums may also increase as a result of the infractions.

BMW May Recycle Ontario, CA, Workforce

Senator Barbara Boxer sent a letter to BMW North America CEO Jim O’Donnell on June 24, asking him to reconsider a poorly thought-out plan to fire BMW’s nearly 100 Ontario, CA employees later this summer and immediately re-open the facility the very next day with a cheaper, inexperienced work force. U.S. Congressman Joe Baca (D-CA 43) sent a similar letter to BMW as well.

The German automobile giant, Bavarian Motor Works AG, America’s most popular automaker for luxury-class autos, booked its richest earnings in its 95-year history this quarter.

BMW had global sales of almost $81 billion in 2010, or about $848,000 per employee, ranking it number 82 on Fortune’s Global 500 Companies. BMW also received over $3.6 billion in secret low-interest loans during the 2008-2009 taxpayer bailout.

Boxer wrote, “As the economic recovery continues, it is deeply disappointing that these loyal employees would be penalized at a time when your company recently reported 2011 first quarter earnings of $1.78 billion —triple that of first quarter earnings in 2010—and first quarter sales 21 percent greater than last year.”

Baca wrote, “[This] will needlessly layoff workers in a region experiencing the highest rates of unemployment in the country. Replacing those positions with a low wage workforce is an injustice and a blow to our local economy.”

Teamsters Local 495 represents 65 workers at the Ontario parts distribution facility.

“When taxpayers gave billions of dollars in bailout money to auto companies, they expected to grow the economy and save American jobs, but just the opposite has happened,” said Randy Cammack, President of Teamsters Joint Council 42, “BMW got bailed out with nearly $4 billion in top-secret lowinterest federal loans and in exchange, they mock America’s plant closing laws and try to destroy working families.”

“BMW would never be allowed to get away with this in Germany— they wouldn’t dare try it,” said Teamsters Local 495 Secretary-Treasurer Bob Lennox. “They think they can take an American taxpayer bailout and then treat their American workers in a way they would never treat their German employees.”

Ontario BMW workers held a rally on June 16 to protest the layoffs.

6 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

NV Motorists to Pay More for Driving Without Insurance

Nevada drivers now face tougher consequences for failing to carry auto insurance under new legislation that penalizes scofflaws based on the length and frequency of their lapses in coverage.

That could mean a fine of nearly $2,000, a minimum 30-day license suspension and other penalties for the worst offenders.

State law has mandated for years that vehicle owners maintain continuous liability coverage or face suspension of their registration and a reinstatement fee of $250.

And Nevada regulators say uninsured motorists face a host of other roadblocks, including difficulty finding affordable auto insurance because many insurers will charge them more.

The new law, which took effect July 1, further stiffens penalties for going without a policy: • First-time offenders who go uninsured for less than a month still pay the existing $250 fee, but that amount increases to $500 for a second offense and $750 for a third.

• Multiple offenses carry a minimum $500 fine, with a third lapse of more than 181 days bringing a total of $1,750 in costs.

• Many offenders must also pay more

for certification that they are covered for a three-year period, commonly known as an SR-22.

Industry experts say the tough new penalties are needed.

The Nevada Spending and Government Efficiency Commission estimated in January 2010 that between 17 percent and 19 percent of the state’s drivers lacked a policy.

Getting covered may be hard for those who have gone without it for any length of time, Nevada regulators say.

Some companies will refuse to insure anyone with a lapse and others will charge more, according to the state’s 2010 Consumer’s Guide to Auto Insurance Rates.

“Going without insurance can cost you much more than carrying the liability coverage that is required by Nevada law,” the guide states.

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 7

Arizona Car-Part Stores Have Pricing Issues One-third of auto-parts stores inspected by officials charged more than advertised or didn’t have prices listed for some items, according to Arizona’s Department of Weights and Measures.

The agency routinely inspects businesses to ensure prices are posted and scanning correctly at the checkout counter.

Earlier this month, officials released a similar report indicating nearly a quarter of office-supply stores had missing prices or overcharged, according to the Arizona Republic.

Shawn Marquez, a spokesman for the department, said in a news release that inspectors reviewed prices at 27 auto-parts stores across the state and found nine that didn’t post prices or overcharged. The agency inspected chains such as AutoZone and Pep Boys.

Marquez said overcharging, and even undercharging, which businesses aren’t cited for, add up to hurt consumers and retailers.

Inspectors chose random items

and recorded whether posted prices matched those scanned at the register.

Retailers overcharged up to $10 per item.

In addition to not posting prices and overcharging, 10 of the 27 stores also undercharged up to $13 per item.

Retailers must pay $50 for every missing price and $100 for every overcharge.

Those penalties can increase up to a maximum of $500 per error every time a retailer is cited in the future, Marquez said. He said the department does not fine retailers that are undergoing their first inspection or those that have only one missing price or one overcharge.

Marquez said many retailers end up paying less if they attend informal settlement conferences and provide good explanations for why they failed and how they have corrected pricing problems.

Eagar Auto and Truck, a retailer for Napa Auto Parts in Springerville, was penalized $2,200 for not posting 44 prices. Marquez said that store also may have to pay about

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Store manager Joe Digiovanni said employees didn’t notice the pricing problems before because those items don’t sell often. Digiovanni said he won’t dispute the fines, and the store has changed its protocol to update prices daily, shelf by shelf.

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Assembly Bill No. 511 passed, granting the Department of Transportation the authorization to draft a set of regulations and rules governing autonomous cars, according to Popular Science.

The legislation charges the Nevada DOT with creating the legal framework that will determine things like performance standards and licensing requirements, as well as designating certain areas within the state where autonomous cars might be tested.

But that regulatory framework could be a long time in the making.

Which is fine, because while Google has already logged hundreds of thousands of miles on its autonomous fleet that we know of, the cars are not by any means ready to be released on the larger world commercially.

This is a technological revolution that’s going to move forward with baby steps. But as baby steps go, this is a pretty big one.

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Former San Diego Car Dealer Found Dead In FL Home, Police Arrest Live-In Girlfriend Police in Fort Lauderdale, FL, are investigating how a former San Diego County car dealer died in his milliondollar mansion on June 30.

70-year old Ronald Vinci, the former owner of Pacific Honda in Kearny Mesa, has owned several dealerships in the San Diego area since the 1960s.

He also owned several Honda dealerships in the 1960s, rose to millionaire status and then later sold his franchises.

Fort Lauderdale police now believe they found out who killed the former San Diegan.

Police arrested Vinci’s live-in girlfriend, Catherine Pileggi on July 5, according to NBC San Diego.

Detectives said Vinci was trying to break off his relationship with Pileggi at the time of his death. They believe an argument between Pileggi and Vinci turned fatal.

Homicide detectives arrested Pileggi on July 5 after finding several items linking Pileggi to the scene. Pileggi is charged with first degree murder.

10News San Diego also reported that Vinci’s body was wrapped in duct tape when it was found discovered inside the home, which is in an upscale

neighborhood along Fort Lauderdale’s New River.

Neighbors were stunned by the sudden, reportedly suspicious death.

“We moved here because it is real quiet and slow paced and everybody walks their dogs and says hi to each other. It is a real shock to hear something like this has happened,” said neighbor, John Anderson to 10News.

Vinci formerly lived in Rancho Santa Fe, CA; reports showed he moved from San Diego to Florida in 2005.

Vinci leaves behind his son and grandson.

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Encinitas, CA, Auto Shop Recognized as Eco-Friendly

After recently celebrating its 30th anniversary, the family owned and operated automotive repair business, Furgerson’s Garage is proud to be named a certified “Green Station.”

The Bureau of Automotive Repair and the state’s Department of Toxic Substances Control officially recognized the shop after its continued effort to prevent chemical waste and pollution.

Designed by the Bureau, the Green Station Recognition Program recognizes businesses that uphold the highest environmental standards. The program advocates for the reduction of our carbon footprint on the world and believes businesses like Furgerson’s Garage should be praised for their environmentally friendly practices.

Furgerson’s Garage owner, Brad Dow, agrees with this advocacy. “As an automotive repair professional in California, I feel it’s my responsibility to do all that I can to protect our environment, not only by properly performing Smog Check inspection and repairs that aid in keeping our air clean, but also handling and disposing of the toxic substances we generate in an environmentally friendly way.”

Furgerson’s Garage is one of two auto shops in the city that has been

certified as a “Green Station.” Only 36 auto shops have received certification in California.

Even before certifications were available, Furgerson’s Garage was operating with the environment in mind, assisting car owners in understanding how to lower emissions and keep their vehicle as “green” as possible. The auto shop also takes pride in recycling engine oil, batteries, fluid filters, scrap metal parts and more.

In addition, Furgerson’s Garage provides gas mileage-related diagnostics and repairs to reduce fuel consumption, as well as accurate diagnosis and repair of any oil, fluid, coolant or refrigerant leak.

“It costs a little extra to have the recycling and spill containers and a little more labor time,” Dow said.

“There is a cost to it, but it’s far outweighed by the positive environmental impact.”

Furgerson’s Garage handles all diagnostic, maintenance, and repairs for vehicles.

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38958 Carriage Way, Palmdale, CA 93551 www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 9

CA Authorities Quiet About Salinas Auto Shop Raids

It could be more than a month before tight-lipped authorities reveal what they were doing in a series of searches of Salinas auto body shops at the end of June, according to the Monterey County Herald.

That’s what Ed Hazel, a managing district attorney and spokesman for the multiagency team, said July 1.

“I would have to think it would be at least a month, a month-andhalf,” he said.

Armed with search warrants from Monterey County Superior Court, agents from county, state and federal agencies fanned out June 22 to search an undisclosed number of businesses and residences.

No arrests have been made.

Hazel said investigators were reviewing documents and other items seized, including cars, during the searches that appeared to center on auto repair shops.

Agencies involved included the state Department of Insurances, state Bureau of Automotive Repair, the California Highway Patrol and members of the District Attorney’s Office, Salinas police and FBI.

Hazel said he couldn’t provide a list of all the agencies involved or comment about the ongoing investigation.

“They specifically asked me not to give out information,” he said.

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And You Thought You Knew Ugly Dogs One of our reporters, Ed Attanasio, recently entered his Chihuahua mix named Ratdog in the 23rd annual World’s Ugliest Dog Contest, held June 24th at the Sonoma-Marin Fair in Petaluma, California.

The first prize was $1,000, which comes with the coveted Ugly Trophy and a year-round modeling contract from House of Dog (which also comes with another $1,000!).

Unfortunately for Ratdog, there was one canine uglier than Ed’s pooch (isn’t that always the way it happens?) a dog from Sacramento, California named Yoda. Ratdog finished 2nd in the Mutt Division, which was a nice performance by this 14-year-old deaf and toothless rescue mutt.

Under-Inflated Tires, a Common Problem in AZ

An under-inflated tire could mean more gas, less handling and increased tread wear, but proper tire inflation is a simple fix, according to AAA Arizona.

Last year AAA responded to more than 19,000 tire-related calls in Arizona, according to John Walter, general manager of automotive products.

“Preventative tire maintenance is quick, easy and inexpensive, but ignoring tire maintenance can be costly or even dangerous,” Walter said.

“Anything less than the manufacturer’s recommended pressure setting is really a concern.”

Tire pressure is measured in pounds per square inch, or PSI. The manufacturer’s specified tire pressure is based on the weight of the vehicle.

No matter what the maximum PSI of the tire may be, the manufacturer’s PSI is listed on the inside of the driver’s side door jamb.

“Every tire, on the side rim, will tell you what the maximum pressure is,” Walter said. “The tire on your car might say the maximum pressure is 40 PSI. That doesn’t mean you want to put 40 PSI in that tire. That tire might fit a Toyota Camry or it might fit a pick-up truck. You might have the same tire on two different vehicles

and one might call for 30 PSI and the other may be at 35 PSI even though it’s the same tire and the maximum PSI may be 40.”

Walter suggests checking tire pressure monthly, checking all four tires in the morning when the tires are at their coolest temperature.

“The tire pressure will vary with temperature,” he said. “When you check in the morning when the tire pressure is cold you’re going to ensure that you’re at the maximum recommended pressure. If you fill up in the heat of the day, as the temperature goes down your pressure will drop.

You will lose about one PSI with every 10 degrees Fahrenheit drop in temperature.”

Walter warns to regularly inspect tire tread depth. He said that checking the tread is easily done with a quarter.

Place the quarter upside down in several spots of the tire. If Washington’s head is exposed at any time it’s time to replace the tire.

Align and rotate tires as required.

AAA Arizona suggests having tires rotated and checked by a trusted technician and provides a list of recommended technicians on their website, aaaaz.com/auto/AAAautorepair.htm.

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ABN reporter Ed Attanasio displayed Ratdog at the 23rd annual World’s Ugliest Dog Contest on June 24th at the Sonoma-Marin Fair in Petaluma, California.

PHOTO CREDIT: Simone Alexander

Pictures of Ed and his dog appeared in newspapers worldwide and were interviewed for television news organizations from the U.S., Germany, Israel, Japan and the UK, among others.

10 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

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San Diego Collision Center Welcomes New Leaders, Name Carrillo & Sons Collision Center is proud to announce the addition of Tony Jr., David and Daniel Carrillo to the day-to-day business operations combined with the public announcement that the company will assume the new business name of Carrillo & Sons Collision Center (formerly known as Carrillo’s Auto Body) located at 4680 Old Cliffs Road, San Diego, CA. Carrillo & Sons has been family owned and operated in San Diego since 1981. Tony Jr., David and Daniel Carrillo have been a part of the shop since infancy, and are now fully involved in the day-to-day operations of Carrillo & Sons.

All three brothers have been trained to the highest industry standards and are truly dedicated to provide the utmost in customer service.

The staff at Carrillo and Sons Collision Center has over 80 years in the auto repair industry collectively.

“I am so proud to have my 3 sons included in our business,” says Maria Carrillo, President of Carrillo & Sons Collision Center. “My sons have

grown up in this garage and have learned that our name is our reputation. My sons and I take great pride in the service and quality that we provide to our customers.”

Carrillo & Sons Collision Center is a state certified green facility that has over 15,000 square feet of covered space inside their garage.

The vast amount of space allows the staff of Carrillo & Sons Collision Center to work on over 50 cars at one time. It also allows Carrillo & Sons Collision Center the opportunity to perform a wide range of auto repairs including body work, paint, collision repair, mechanical repair as well as some electrical repair.

About Carrillo & Sons Collision Center Founded in 1981 Carrillo’s has steadily grown to become one of San Diego’s Premier Collision Repair facilities. Their continued growth is attributed to consistently providing our family of customers a level of high quality and unmatched customer service and care. Their team of highly skilled technicians (most of them have

been with the company for over 15 years) use the highest quality equipment, parts, materials & frame systems; systems that are critical in returning your vehicle to its original factory specifications.

For more information please visit http://www.carrilloandsonsonline.com

Santa Clara CAA Golf Tournament Postponed

The Santa Clara Chapter of the California Autobody Association (CAA) has postponed their 18th annual golf tournament from July 13 to August 25 at the Cinnabar Hills Golf Club in San Jose.

Registration will start at 11am followed by Best Ball Scramble and Shotgun Start at 1pm.

Event Fees are $145.00 per player and include Green Fees, GPS Cart, Range Balls, Box lunch, and Banquet Dinner.

Tournament Hole Events will include Hole in one for a car, Longest Drive, and Closest to the Pin. The event is also looking for sponsors, contact Tabias Padilla (408) 406-7903 or Don Dutra (408) 406-3780 for more information.

Orange County, CA, Hybrid Auto Firm Hiring

Hybrid-electric car maker Fisker Automotive in Anaheim continues its hiring binge with company headcount in Orange County expected to hit as many as 400 by the end of the year, a spokesman said June 30. That’s up from 300 now and just 50 in January 2010, according to the Orange County Register.

Including related contract workers, there are about 600 people now working for Fisker. The first deliveries of the $100,000 hybrid-electric sports car, Karma, are expected in July and August. Spokesman Roger Ormisher said most of the people being hired in Orange County are on the engineering and technical side.

Meanwhile, Fisker is ramping up its Wilmington, DE plant, which will produce what the car maker has dubbed Project Nina, a less-expensive mid-sized electric sedan.

With all this hiring, Fisker is beginning to fill up its new corporate headquarters in Anaheim, where it relocated this spring after outgrowing the company’s original site in Irvine.

Fisker has raised $1 billion to finance its efforts, including a $529 million U.S. Energy Department loan and $21.5 million from Delaware.

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Tuttle-Click Dealerships to Extended Vehicle Service Contracts Eos Group, Inc., an independent provider of solutions for sales of service contracts in the service drive, and Tuttle-Click, an automotive group serving Orange County and all of southern California and Arizona for over 60 years, announce the commencement of sales to Tuttle-Click customers in the service drive.

Eos has developed tools and training to sell vehicle service contracts in the service drive to increase a dealer’s customer retention, and in doing so, create additional profits for the dealership.

In the end Eos Group, Inc. recognizes that both consumers and dealerships can benefit from providing an additional sales avenue for vehicle service contracts.

Statistics show that 37% of customers under full factory warranty will return to the selling dealership for routine maintenance, 15% of customers will return after the expiration of their factory warranties, and 39% of customers with vehicle service contracts will continue to come to the selling dealership for routine mainte-

nance and repairs after the expiration of a factory warranty.

“It is vital that customers have a service contract to increase a dealership’s chance to continue to be the customer’s service facility of choice,” states Jim Thompson Executive Vice President and Principal of Eos Group, Inc. George Saad, Vice President, Tuttle-Click Automotive Group said, “Our automotive group has been searching for a unique approach in generating profit and increasing customer retention, Eos captures a customer base that has not been touched and is an exciting new opportunity within our dealerships. Eos was the only company that was able to do it all, from training to follow-up. Their system follows a systematic approach from the first touch on the lane, a partner call center to follow up, and a mail campaign to a customer web purchase site. It makes it seamless for the customer to say, Yes.” With today’s economy more and more consumers are having their vehicles repaired instead of buying a

12 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

new vehicle. Eos targets those consumers that are planning on keeping their vehicle longer and no longer have the assistance of a manufacturer’s warranty to help pay for repairs.

In short, it gives the consumer another opportunity to buy an extended warranty that they thought they may not have needed when they purchased their vehicle.

Eos Group, Inc. is an independent provider and specializes in extended service contracts for the automotive industry (www.eosgroupinc.com).

Tuttle-Click is an automotive group serving southern California and Arizona for over 60 years, with new/used car sales departments and service departments (http://www.tuttleclick.com/index.htm).

For additional information, please contact Jim Thompson at (856) 669-7593 or visit: www.eosgroupinc.com/contact.html.

Registration Uncertainty Hurting CA Businesses

The ongoing debate in Sacramento about the vehicle license fee is causing problems for some businesses, as the Department of Motor Vehicles has not been sending out vehicle registration renewal forms because it doesn’t know how much to charge, according to 10 News San Diego.

The current increase in the fee expired on June 30 and Gov. Jerry Brown wants to continue it to help balance the state budget.

It has been a painful situation for businesses that do smog checks, and at Rick Tozier’s Poway Test Only station in San Diego, business is down around 45 percent over the last month.

People have not been getting registration renewal notices for July or August, which means people are not needing to come in for smog testing.

Tozier said on a typical day he used to get 20 to 25 vehicles in his shop. Days since the registration delays he has had more like eight, and as a smog test station he’s not allowed to do repairs, just smog checks.

See CA Registration, Page 13

Western States Top Nation for Most Expensive Repairs Arizona is the most expensive state to get your car repaired, according to CarMD, a provider of diagnostic tools and information. The average repair cost in the Grand Canyon State is $421.49, about $65 more than the $356.04 national average.

Findings of a study of more than 80,000 repairs made nationally in 2010 by a network of repair shops that trade data with CarMD.com Corp., an automotive repair information company, revealed Arizona as the most expensive state for car repairs.

Overall, most Western states have above-average repair costs. Car owners in the West paid 13% more than Midwesterners and 11% more than people in the Southeast, says CarMD, adding that the higher costs in the West are attributed to the dry, dusty air that can clog airflow sensors and wreak havoc on a car’s long-term health.

Some states, such as like California, pay more for maintenance labor, too. It’s 20% higher in the Golden State.

The Midwest has lower repair costs compared with the national average, but strangely, Washington, D.C., has the lowest repair cost in the U.S. Considering the high cost of living in D.C., you’d think that wouldn’t be the case, but CarMD says that since more people own new vehicles relative to the population in the District, more drivers are likely covered under no-cost warranty programs.

The following is the ranking of the top 5 states with the highest car repair costs in 2010, according to CarMD: State, Average Cost (Parts & Labor), Average Parts Cost, Average Labor Cost Arizona , $421.49, $260.29, $161.20 New Mexico, $406.81, $240.59, $166.22 Colorado, $397.83, $244.91, $152.92 California, $394.49, $227.39, $172.30 Nevada, $393.96, $227.08, $166.89

CarMD ranking of states/districts with the lowest car repair costs in 2010:

State, Average Cost (Parts & Labor), Average Parts Cost, Average Labor Cost D.C., $265.29, $163.09, $102.20 Missouri, $297.27, $160.76, $136.51 Ohio, $298.49, $175.24, $123.26 Wisconsin, $298.76, $170.88, $127.88 Nebraska, $301.79, $179.00, $122.79

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Continued from Page 12

CA Registration

He’s not alone in his problem, as there are an estimated 2,400 test-only stations in California.

No DMV renewals being mailed out means there are people driving around with expired license plates.

According to the DMV, there will be a 30-day grace period for those drivers.

The DMV has contacted law enforcement around the state and across the country of the current situation. Drivers whose registrations expire in July won’t be ticketed until September 1.

In the meantime, Tozier and other smog-related businesses will try to scrape by, knowing there is a light at the end of the tunnel.

The current half-percent increase in vehicle fees expires on June 30, as things stand now, the DMV will begin sending out renewal licenses on July 1 at the lower rate.

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Continued from Front Page

Contract Frustration

his shop has for more than 15 years, the information provider has refused to accept any changes to the 40-plus months that remain on the shop management module contract.

“I’ve never have even had the program turned on,” the shop owner said. “They already have a year-and-ahalf of my money. I said they can keep the amount I’ve paid but just cancel it from there on. But they want it all. I know if I ran my business like that I would be out of business.”

Stuck in contract after DRP changes Steve Schaefer is only too familiar with being locked into a contract with an information provider. Schaefer is the president of Schaefer Autobody Centers, which operates six shops in the St. Louis, Missouri, area. Four years ago, he said, the company joined an insurer’s direct repair program that necessitated that he add a particular estimating system, signing a 4-year contract with that system provider for three of his shop locations.

“Having been burned before, a clause was added to the agreement such that if I ever ceased to participate in that specific insurer’s DRP program, the contract could be terminated,” Schaefer said.

However, a few months later, the insurer switched to a new information provider, requiring its DRP shops to use a different system than the one the insurer had previously required.

Schaefer said he was among the similarly-situated shops that asked the first information provider for some sort of release or relief from the con-

tract for the system they no longer needed or wanted.

“I was told I was bound to the full term of the contract since I was still participating in the insurer’s DRP program, despite the fact that the insurer was no longer using (that system),” Schaefer said. “I understood that they had some up-front imSteve Schaefer plementation costs that had to be covered, but a 4-year contract for a product I wasn’t using was ridiculous. Their excuse was they had stockholders to protect. My thought was: How about your customers and this industry?”

Today, almost $42,000 later, Schaefer said, he is almost done paying off that obligation.

“It’s a shame when these companies don’t respond with the same reasonable ethical business practices we expect of ourselves and business partners in general,” Schaefer said.

Beware of automatic renewals Scott Johnson of Greensboro Body Company in Greensboro, NC, said shop owners should remain keenly aware of when any software contracts end. Such contracts, he said, often include automatic renewal clauses, and if you make even one payment beyond the term of the original contract, it automatically renews for another year or more.

John Hackleman of Hackleman Auto Collision Repair, in Danville, Ind., concurred. He switched shop management systems last year, and told the previous system provider he no longer needed the support he was paying for every month.

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“I found out that although we were well beyond our original contract, it renews automatically in oneyear increments,” Hackleman said. “I discovered this at my anniversary month but had not given them the 30days’ notice to stop as required in the contract. So I was required to pay for an additional year and was not able to change their mind.”

Another Indiana shop owner, who also asked not to be identified, said he actually had some success in renegotiating a contract with an information provider. Like Schaefer, he had signed the agreement for an estimating system—even though his shop already had another one—in order to participate in a particular DRP. When he decided to part ways with that DRP, he called the information provider to say he no longer wanted that second system, only —like Johnson and Hackleman—to find out he was several months into an automatic renewal period.

“The only answer I could get was, ‘Sorry about your luck,’and information on what page in the contract that was so I could get my magnifying glass out to look at the clause,” the shop owner said.

He now considers himself lucky

that the information provider soon upgraded to a new system. When representatives of the company contacted his shop to see why it hadn’t converted over, the shop owner told them he wasn’t using it and didn’t want it.

“The next day a lady called and said she could not get me out of the contract but could put me into a less expensive alternative,” the shop owner said. “I am now paying about a third of what I had been paying.”

His recommendation: First thing upon signing a new contract, take the low-tech approach to knowing when you are able to get out of it.

“I now have it on every calendar in the office to cancel the contract by sending them a letter 90 days, 60 days and 30 days before the end of this contract,” he said.

John Yoswick is a freelance automotive writer who has a body shop in the family in Portland, Oregon. He has been writing about the industry since 1988.

He is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). Contact John by email at jyoswick@SpiritOne.com.

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 15

Reorganized Lehigh Valley Collision Repair Association Now Serves Eastern Pennsylvania

By David M. Brown Special to Autobody News

The re-energized Lehigh Valley Collision Repair Association is serving eastern Pennsylvania, including cities such as Allentown, Easton and Bethlehem.

The one-year-old group comprises 18 auto body repair facilities, jobbers, parts suppliers, information providers and rental car companies, says its president, Matt Dewalt, AAM. “Our mission is to promote the professional image of our industry through safe, quality and ethical repairs,” explains Dewalt, vice president of Scott’s Collision Centers, which is celebrating its 40th year serving the Lehigh Valley.

“We want to educate and lead our members to better themselves by allowing the free exchange of ideas and assist with ongoing training,” he adds.

“It is truly an organization made up of members who want to better our industry.”

His father, Scott, a past and current member of LVCRA, started their business in 1971, and today the two locations, in Easton and Stroudsburg, comprise 34,000 square feet and generate about $5 million in annual sales.

The original LVCRA has roots at least 50 years deep and was very active in the late ‘80s and early ‘90s, sponsoring golf tournaments, hosting monthly meetings and holding I-CAR and other classes, Dewalt says. At the time, Scott participated with his early shop, but membership dwindled and meetings stopped about 10 years ago.

LVCRA had a regular following of shops early on, says Garry Sandt, a current board member with 23 years experience in the collision repair industry. “However, over time it became basically the same six or seven shops that were attending, and it grew stale, although this was in no part related to the efforts or energy of those participating.” Today Sandt is district manager for National Coatings & Supply -PA and NJ Group.

“It was a real struggle to get shops to come out and get involved — regardless of timing and/or content of the meetings,” he adds. About two years ago, the association stopped growing completely. One reason: “Shops that were not participating were concerned that they would be looked at unfavorably by the insurance companies for participating.”

Joe Hepp, a past member and current secretary of LVCRA, agrees that low membership was attributable to industry divisions in the 1980s.

“Some shops were not on speaking terms with other shops because of poor communication,” he says. “To help create better camaraderie among the shops, I originally joined the association and have been a member since.”

In Allentown, his Hepp Brothers Collision Center is celebrating its 35th anniversary.

About a year ago, Rich Daku, past member and current treasurer of LVCRA and a partner in Daku Auto Body of North Catasauqua e-vited former members to his shop one night to view his building addition. His fourthgeneration family business was founded in 1948, and in the early years, his grandfather was president of what was then called the “Auto Body Association”—his father was later a board member.

“While there, discussions turned to the old association,” Dewalt recalls. “Rich mentioned that there was still a few hundred dollars left in the account and suggested donating it to the local technical schools. He said, ‘Unless someone wants to get it started again’—and everyone looked at me.”

So Dewalt volunteered, helping to re-establish the organization on a challenging budget. “I said that I have no idea how to run an association but that I could get a group of people together and get some great guest speakers.”

He was motivated to help the local shops: “I remembered that when the association was going strong, shops seemed to be doing well. Once the association dwindled, it seemed a disconnect happened over time amongst shop owners. I always felt that we are stronger working together toward a common goal.”

In addition, Dewalt had been a member of the DuPont Business Council IV for many years. “I’ve had the fortunate opportunity to learn a lot of great things from a lot of great people,” he says. “Now I have a chance to share that with others.”

The group met again a few times and formally restarted at a Sept. 27, 2010, meeting. They established a structure of four officers and two board members and quarterly membership meetings, held at members’ shops or a hotel meeting room. Mike Anderson

16 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

of Collision Advice spoke to that first meeting, with 50 people attending, he recalls.

Since then, Aaron Schulenburg, SCRS executive director, has also spoken to the group and, as a result, LVCRA is exploring an affiliation with the national organization. Just recently, Chuck Sulkala, who was in the Lehigh Valley area at the time, spoke about I-CAR and the NABC. To prevent the fate of the original organization, the new group is focusing on membership expansion— up to 50 miles away from the Lehigh Valley base. “The association is working hard to recruit a more diverse membership so that there is a wider view to all of those involved with our industry,” Daku says. “We are explaining that we are here to help each other to improve relationships with each other and the insurance companies.”

Emphasis, too, is on education: Future meetings will discuss database enhancement gateway (DEG), estimating and blueprinting, new metals and equipment as well as feature speakers, Dewalt explains.

“Through educating ourselves, if we can help define the rules of engagement that are fair for everyone in the industry, then the association will be successful,” says Andy Estojak, past and current LVCRA member and owner of Andy’s Champion Auto Body in Bethlehem. “At the same time, the association also provides us a unified front as collision shops.”

“Our industry is getting tougher and tougher all the time, due to higher customer standards and insurance cutbacks,” Daku adds. “We constantly have to change with technology and structure our shops to be most efficient at how they are run.”

Keith Stephens and his son, Benjamin, agree on the group’s educative mission. “One major element for us is helping our fellow shops understand the complexities of estimating systems —aspects such as ‘P’ or procedure pages,” says Keith, a current member and past president of LVCRA. He owns North Star Automotive in Bethlehem, which he founded in 1984. “Every aspect of the business is more complex than it was in the past.”

“There’s a learning curve for all of us,” says Benjamin, LVCRA’s vice president and general manager/estimator at North Star Automotive. “But the more people from the area who can participate, the better everyone will understand the changing nature of our industry. Add to that, there’s a great sense of camaraderie within the group.”

Adds Dewalt: “There is a lot of comfort in knowing that what you are currently going through with your business, there is someone else experiencing it also. The association provides a forum where people in the industry can get together and freely exchange information to better themselves.”

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NHTSA May Probe Hybrid Accord’s Acceleration

The National Highway Traffic Safety Administration will decide whether to open a full-fledged investigation into possible acceleration problems with the Honda Accord gas-electric hybrid, according to documents posted on the agency’s Web site.

A woman, who was not identified, filed a complaint seeking an investigation and recall of the 2005 Accord Hybrid after a crash in July 2005 that disabled her and left a passenger dead.

She said her car crashed into oncoming traffic after she drove over rumble strips on the side of a highway. The vehicle lost braking power then accelerated on its own, the woman said. An investigation would affect about 25,000 vehicles, the NHTSA said.

The NHTSA said it will decide whether to investigate the Accord Hybrid for possible recall because of problems with antilock brake controls.

Its documents said the woman found 22 similar complaints in its database involving Accord and Civic hybrids. The similar incidents involved inadequate brake performance while driving over uneven surfaces, the documents said.

Chevy Cars Get Highest Brand Share in 20 Years, GM Says

U.S. Chevrolet car sales in the first half of the year are set to reach their highest share for the brand in 20 years, outselling trucks in June for the third straight month. Chevy cars accounted for just above 50 percent of the brand’s total U.S. sales for June—the third consecutive month in the majority—and 47 percent for the first six months of 2011, said Alan Batey, vice president of sales and service for Chevrolet. He declined to disclose GM’s expected total results for June, which the company reported on July 1.

Through May, Chevy sold 385,257 cars and 362,443 trucks— with total brand U.S. sales rising 17 percent in an overall market that improved 14 percent.

“You’ll see continued strength in passenger cars, particularly in the compact and mid-car segments,” Batey said.

Citing gas prices that are still about $1 a gallon higher than a year ago, GM pointed out that 46 percent of Chevy’s retail buyers in the first six months chose a more fuel-efficient four-cylinder engine in their vehicles, double the rate of five years

Hyundai and Kia Both Raise 2011 Sales Forecasts

Hyundai Motor Co. raised its 2011 U.S. sales forecast to 624,000 units, representing a 16 percent gain from last year, the Korean automaker said June 30. Last year, the Hyundai brand’s U.S. sales rose 24 percent to a record 538,228. Sales through May are up 29 percent to 263,588 vehicles.

Reuters reported June 29 that Kia Motors Corp. also hiked its 2011 U.S. sales forecast to 433,000 units.

That would be a 21.5 percent increase from the 356,268 vehicles the brand sold in the United States last year.

Through May, Kia’s sales are up 45 percent to 200,060 units from the year-ago period.

Hyundai credited robust demand for current and upcoming vehicles for the higher sales target. Recent vehicle debuts include the redesigned Elantra compact, the 2012 Accent subcompact and a freshened 2012 Genesis luxury sedan. The new 2012 Veloster sports coupe and an updated Equus full-sized luxury car will debut by year end.

In January, Hyundai Motor America said production constraints would limit U.S. sales to around 600,000.

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Continued from Front Page

CA Steering

his automobile repaired by a specific repair shop that was not a DRP facility. Progressive Direct responded to Hughes’s claim by telling him he should take his automobile to Champion Collision & Paint (Champion) in El Cajon, California, which participated in the DRP, explaining that his claim would be approved and the repairs on his car completed more quickly there. Progressive Direct did not inform Hughes of his right under section 758.5 to select the facility that would repair his vehicle.

Hughes alleged in the suit that although he informed Progressive of his preference for a certain repair shop, Progressive recommended Hughes take his car to a shop belonging to Progressive’s Direct Repair Program.

Hughes further alleged that Progressive failed to inform him of his right under Section 758.5 to select his own shop.

Hughes took his vehicle to the DRP-affiliated shop, but was dissatisfied with the work. He suspected substandard or used parts had been used.

On November 23, 2009, Hughes filed suit against Progressive on behalf of himself and a proposed class of persons (1) who are or were a residents of California, (2) who had claims covered by Progressive automobile insurance policies, and (3) who had their vehicles repaired by shops belonging to Progressive’s DRP. Hughes asserted a single cause of action against Progressive for allegedly violating the UCL (California’s Business and Profession Code section 17200). Hughes alleged that while Progressive assures its insureds that DRP facilities “are carefully selected to provide only the highest quality of work, those shops are actually selected based on their agreement to Progressive’s demands to reduce the costs to repairs.”

Progressive demurred to Hughes’s complaint, meaning they filed a document objecting to or challenging they pleading filed by Hughes. Progressive argued that Hughes did not state facts sufficient to constitute a cause of action, meaning the facts were insufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.

Specifically, Progressive alleged that a 1988 case, Moradi-Shalal v.

Fireman’s Fund Ins. Co., prohibits private actions to enforce provisions of the Unfair Insurance Practices Act (UIPA), found at Insurance Code section 790 including claims under the UCL. Progressive argued this could not support a UCL claim even if Hughes proved Progressive violated Section 758.5.

Hughes opposed the demurrer, arguing Section 758.5, while part of the Insurance Code, is not part of the UIPA. Hughes contended that MoradiShalal and the cases that followed it have never been extended to preclude a UCL claim based on violations of a non-UIPA provision. Progressive responded by analyzing the legislative

history of Section 758.5 and argued this history demonstrated that the Legislature did not intend to create a private right of action, but only a right of action for the California insurance commission. The trial court agreed and sustained Progressive’s demurrer, meaning there was not sufficient cause of action. Hughes appealed in a timely manner.

The Court of Appeal examined the scope of the UCL and MoradiShalal. It recognized the breadth of the UCL, noting that parallel actions for unfair competition under the UCL are proper even though a specific statutory enforcement scheme exists. UCL claims are barred only where the statutory scheme precludes cumulative remedies. The

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Court found that Moradi-Shalal, and the cases following it, stand for the proposition that the UIPA was not “intended to create a private civil cause of action against an insurer that commits one of the various acts listed.” Thus, violations of the UIPA alone cannot give rise to claims under the UCL. The Court of Appeal then evaluated the intent and language of Section 758.5. It noted this statute was enacted to prevent insurance companies from using coercive tactics to steer consumers to particular automobile repair shops. No private right of action is provided under Section 758.5. But Section 758.5 grants the Insurance Commissioner the power to See CA Steering, Page 20

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Prestige Imports is a BASF Waterborne Advocate in Colorado

SHOP & PRODUCT SHOWCASE Prestige Imports Collision Center

by Ed Attanasio

When his customers are spending big money on vehicles costing more than $50,000 and sometimes well into six figures, Jim Frost, the manager at Prestige Imports Collision Center in Lakewood, Colorado, knows his paint jobs have to be top-tier every single time. That’s why he’s enthused on several levels about his conversion to waterborne paint. Frost is pleased about the performance and the finished product he’s getting with Glasurit 90-Line, BASF’s waterborne product, and Prestige is proud to be a Colorado waterborne pioneer—the very first body shop in the Centennial State to adopt the green approach nearly three years ago.

Frost, 41, started working for his father’s shop at age 15. Now his collision center serves three Colorado dealerships: Prestige Imports Porsche Audi, MercedesBenz of Littleton and Mile High Honda Acura Mitsubishi. Prestige Imports Collision Center will repair any type of vehicle, but primarily focuses on the European brands its dealership sells, as well as Ferraris, Bentleys, Maseratis and Lotuses, among others. With 19 employees, this 19,000 square-ft. facility has an average repair ticket of approximately $3,300 and at any given point it’s likely that the shop will have more than a dozen repair orders in-house averaging more than $20,000 each.

Frost conducted an in-depth study before he chose BASF as his paint vendor, he told Autobody News. “We decided to change to waterborne and adopt all of the California laws even before they went into effect there. We analyzed all of the waterborne paint lines that were out there starting a little more than three years ago. We discovered that BASF offered an ideal solution for us in our environment. Many of the cars we repair were originally painted with BASF waterborne from the factory.

We liked the product and appreciate their support, so that was a big part of the decision.”

Becoming familiar with BASF Glasurit 90-Line involved watching other shops using it, Frost explained.

“I went out to Southern California with my painting team to their training facility there and BASF took us around to local body shops that were using the BASF waterborne product.

At that point, we went through some training and when we came back here, we felt as though we were

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ready to roll. FinishMaster, our local jobber, assembled all of the necessary materials and we came in one Saturday and switched over to water.”

It was a challenge for his paint crew during the first month or so, but Prestige didn’t have a single comeback and the learning curve flattened out quickly. “Change is never easy, but we’re always looking to make ourselves better,” Frost said. “We decided to push the envelope and make a definitive move. After 30 days of saying this is the way we’re painting cars and we’re not looking back, the painting staff accepted it.

And now I can guarantee that they would never go back.”

What was the biggest issue to converting to BASF Glasurit 90Line? “The main challenge for us is our climate here in Colorado,” Frost said. “The humidity swings and the temperature changes here all the time, so we had to start what I call “cocktailing our mixes” to make them correct. Once we were able to solve that, it was seamless. We retrofitted the booths and we installed more fans and that was essentially it. A lot of people were telling us that we had to buy a lot of other equipment, but we determined it wasn’t actually necessary.”

Frost also uses BASF’s paint inventory system and values it for its ease-of-use. “We have incorporated their SmarTools inventory control and management system, and we like it. Every week, I get an accurate report, so I know what to order and exactly what I have at any given time. I also credit that to an increase in profitability, because we don’t run

out or ever buy too much of the product.”

Even without any pending legislation on the horizon in Colorado, body shops are flocking toward the waterborne solution statewide, Frost said. “Since we switched over in 2008, roughly 35 shops have converted and we always invite other shops here so they can see how we’re doing it. We’ve even had other shops sending their painters here, pulling the triggers alongside our crew to learn the product and tell them “hey, it’s not so hard. You don’t need to be afraid of it.” We tell other shops to try the BASF Glasurit 90Line and make your own call. There is no substitute for doing it yourself.

Some of these shops are competing with us, but we have no problem with sharing information this important. In the end, we should all be stewards of the land, and if I can help to get one guy over his apprehension using this product, then so this is definitely a win for everyone.”

Business life is a series of tradeoffs, but switching to waterborne was a win-win for Prestige, Frost says.

“The product costs slightly more, but the coverage is superior. The color matches are more accurate and we have experienced an increase in our overall material gross profits since we made the change. We’re very environmentally-minded here in Colorado and we participate in the Environmental Leadership Program sponsored by the state. They’ve recognized us for our green practices from a recycling perspective and they awarded us with their silver certificate for the changes that we’ve made here.”

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 19

Continued from Page 18

CA Steering

enforce the section in the same manner as UIPA violations.

Given the breadth of the UCL, and the absence of any “express” language repealing the cumulative remedies generally made available by the Legislature under the UCL or any intent to transform Section 758.5 into simply another unlawful practice under the UIPA, the Court of Appeal concluded an alleged violation of Section 758.5 may serve as the predicate for a UCL claim.

The Court of Appeal confirmed a plaintiff may not rely on conduct that violates the UIPA, but which is not otherwise prohibited, as a predicate for a UCL claim. However, alleged violation of other statutes applicable to insurers, whether part of the Insurance Code or otherwise, may serve as the predicate for a UCL claim absent an express legislative direction to the contrary.

Accordingly, the Court concluded Hughes’s allegations that Progressive violated Section 758.5

properly stated a cause of action for unfair competition. It therefore reversed the trial court’s order dismissing the action.

As originally introduced by then-California-Senator Jackie Speier, Senate Bill No. 551—the “Auto Body Repair Consumer Choice Act of 2003”—was intended to add a new section 758.5 to the Insurance Code, which would have prohibited steering and added a private cause of action (the right of a private party to sue) to enforce the new law: “An insurer that violates this section shall be liable for any damages suffered by the claimant or auto body repair shop, including compensatory, special and exemplary damages...” However, subsequent amendments removed all reference to enforcement (either by the Commissioner or by private cause of action).

In 2009, Insurance Code section 758.5, subdivision (b), was amended to authorize an insurer to provide a claimant with “specific truthful and nondeceptive information regarding the services and benefits available during the claims process,” includ-

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ing “information about the repair warranties offered, the type of replacement parts to be used . . .” and other information about the repair process.

Therefore, until this ruling, it was up to the Insurance Commissioner to enforce the state’s anti-steering regulation as state law had always been interpreted to insulate insurance companies from lawsuits arising from Insurance Code violations such as section 758.5.

One of the appellate justices expressed his reservations about the decision saying that while he agreed with the decision “my concurrence in the opinion is accompanied by a desire to report storm warnings on the horizon.” Woods called the decision dependent on the single word “express,” saying that the Business and Professions Code may predicate a UCL claim absent an “express” legislative direction to the contrary.

Woods expressed concern that this decision may impact future insurance rates, referencing the case of Royal Globe, in which the court stated that the case has “reportedly caused

multiple litigation or coerced settlements and has generated confusion and uncertainty. No doubt Royal Globe had a profound impact on the cost of insurance in California, and which raised a storm of adverse comments throughout California and the nation.”

Woods noted “High insurance policy rates are not a socially desirable thing in my opinion and perhaps our interpretation of Insurance Code section 758.6 when juxtapositioned next to the UIPA and its manifested policy will dampen most desires to bring marginal or superficially meritorious lawsuits.”

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Groupon Offers First New Car Deal With Detroit Auto Dealership Groupon Inc offered its first car coupon on July 12, a sign the largest online daily deal company is expanding into bigger-ticket items, according to reports made by Reuters.

Groupon offered a $199 deal good for $500 off the purchase or lease of a new or pre-owned vehicle at LaFontaine Auto dealership in Detroit.

Unfortunately for the companies involved, only four consumers agreed to pay $200 for the $500 discount voucher. Groupon and LaFontaine had set 10 as the minimum required for the vouchers to be issued.

In an effort to turn things around, the dealership and Groupon extended

the offer from the original two days to four and considered lowering the number of consumers needed.

But the lukewarm response showed that the online coupon craze isn’t a natural fit with auto retailing.

Groupon, the group-oriented coupon site that specializes in daily deals, has more than 80 million members, usually offers discounts on smaller items—such as restaurants and spa visits. The company typically takes 50 percent of revenue generated by deals. Branching out into bigger purchases means that 50 percent cut will be bigger in dollar terms.

“The prospect of opening up markets like new cars and leases is attrac-

tive,” said Ben Edelman, an associate professor at Harvard Business School who has been critical of Groupon. “To the extent they can still take 50 percent revenue share that’s more money.”

Groupon has done some other big-ticket deals recently, such as $500 off closing costs for real estate purchases, Edelman noted.

The car offering may be more problematic, he added.

“This voucher is for a very small portion of the cost of a car or lease, so it’s basically an agreement to buy or lease a car from LaFontaine,” Edelman said. “That’s poor negotiating because the dealer could take advantage

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of that by offering the same car for more money.”

In many Groupon offers, like restaurants and spas, prices are posted already, so customers know what they are getting, Edelman noted. In the case of the car voucher, it may not be clear what the discount will be applied to, he explained.

“They need to fix that before this part of the model can take off,” Edelman said.

Groupon filed to sell shares to the public last month, saying it hoped to raise at least $750 million.

The company has been called into question by critics who say its business—essentially a coupon service—can be easily replicated both by startups and existing Web powerhouses.

Google Inc has already begun such a service and Amazon.com Inc started a similar effort called AmazonLocal this month.

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Reps from all three Detroit automakers met with the United Auto Workers July 12 to discuss the higher federal fuel-economy standards being proposed by the Obama administration.

This was the latest in a series of regular meetings between GM, Ford,. and Chrysler and UAW President Bob King on the issue. The White House is weighing an increase of the Corporate Average Fuel Economy, or CAFE, standards from the current target of 35.5 mpg by 2016 to 56 mpg by 2025.

The standards apply to both cars and light trucks.

Automakers are lobbying against the stricter standards. The union is also concerned about the impact the increase would have on its members, because they would likely force an even more dramatic shift away from trucks and sport utility vehicles to small cars than the one already under way.

A recent poll of 800 likely voters in Michigan found that 78 percent favor higher federal fuel-economy standards.

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Industry Insight with John Yoswick

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.

State and Federal Governments Consider New Insurance Regulations From California to Massachusetts, the judicial system and lawmakers are tackling related to the auto insurance that pays for much of the work collision repairers do. The federal government is also considering the role it should play in regulating insurers as well.

Here’s a wrap-up of some of the insurance-related news that will likely be of interest to shops.

Feds eye more insurance oversight. Federal legislation (HR 1943) that would partially repeal the McCarran-Ferguson exemption from antitrust regulations for insurers has been reintroduced into Congress by Reps. Peter DeFazio (D.-OR) and Louise Slaughter (D.-NY).

“No matter what political ideology, most can agree that insurance companies should play by the same rules as virtually every other industry in America,” DeFazio said.

A similar bill, which requires only that health insurers operate under antitrust laws, passed the House during the last Congress but was not acted upon in the Senate.

The Automotive Service Association (ASA) has supported such legislation, saying it is a step toward broader repeal of McCarran-Ferguson.

Meanwhile, former Illinois Insurance Commissioner Michael McRaith started work in June as the first director of the new Federal Insurance Office. McRaith previously worked in various capacities in connection with the National Association of Insurance Commissioners, and was an attorney in private practice for 15 years in Chicago, representing insurers and other financial institutions.

McRaith leads a new federal office with little regulatory power but that will report to Congress next year

22 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

on gaps in the existing state-based regulation of insurers.

Court decision clears way for lawsuits. A California appeals court ruling in June appears to open the way for policyholders to sue insurers for violations of the state’s anti-steering regulation rather than leaving enforcement of that section of the insurance code up to the Insurance Commissioner.

The appeals court reversed a lower court’s dismissal of Chris Hughes’ potential class action suit against Progressive. Hughes sued Progressive claming that the insurer didn’t tell him after a 2005 accident that he had the right to select the shop that would fix his vehicle (and he thus took it to a Progressive DRP shop and was unhappy with the work).

California insurance code prohibits insurers from suggesting or requiring use of a particular shop unless

the insured asks for a referral or is notified in writing of the right to use any shop. Hughes’ suit said Progressive has a company-wide practice of using “its position of power over its insured, in the form of incentives and requirements to carry out its program of steering.”

Progressive argued that prior court rulings held that suits brought by private parties to enforce the insurance code are not provided for under California law. But the appellate court found that Hughes was not suing over a violation of insurance code but for violation of unfair competition law.

Texas again cautions insurers.

Texas, too appears to be brewing as a key battleground in the fight over steering. For the second time within a year, the Texas Department of Insurance has issued a bulletin reminding insurers that state law prohibits them from “directly or indirectly” limiting

auto insurance coverage by limiting policyholders from using a shop of their choice.

The bulletin also states that while an insurer is not required to pay more than a reasonable amount for repairs or repair parts, neither that nor policy language suggests that the reasonable amount for repairs or parts must be based on the amounts charged by DRP shops.

Insurance Commissioner Mike Geeslin said that despite his similar warning last August, his department continues to receive reports of insurers steering and limiting reimbursement rates.

Others states pass or consider insurance legislation. Alabama Gov. Robert Bentley has signed a new law to create by 2013 an electronic database to match up cars in that state to valid insurance policies; the system will enable law enforcement officials and DMV officials registering vehicles to verify proof of insurance. Officials estimate that about 22 percent of Alabama drivers lack car insurance.

A legislative proposal in Michigan would allow low-income drivers

with clean driving records in Wayne County (which includes Detroit) to purchase reduced personal injury auto insurance coverage for lower rates; data from the Insurance Information Institute indicates Detroit drivers have the highest premiums in the country, 56 percent more than second-place New Orleans.

A new law in Nevada raises the penalties for drivers who let their insurance lapse; a single lapse of 30 days or less carries the same $250 penalty that had been in place in the state, but longer or multiple lapses can raise the penalty to as high as $1,250.

Rhode Island has passed a budget bill that as of October 1 will require consumers whose vehicle is a total loss to pay sales tax on the full value of a replacement vehicle. Superintendent of Insurance Joseph Torti has issued an advisory saying insurers will have to include sales tax in their settlement calculation on total losses in order to fully compensate the policyholder.

Under a legislative proposal in Massachusetts, insurers and lienholders could not mandate that a vehicle owner release of any “black box” data

from a vehicle’s “event data recorder” as a condition of a policy or lease. The bill requires vehicle manufacturers to disclose the presence of such recorders, and designates the vehicle owner as the owner of any such data.

Reports on insurance complaints available. Missouri regulators have released the latest report on consumer complaints about auto insurers, showing complaints fell by 14 percent last year to fewer than 3,100. For a copy: http://tinyurl.com/64kp2yf And Wisconsin regulators said they received about 780 complaints against auto insurers last year, about 10 percent of all consumer complaints related to insurance. For a copy: http://tinyurl.com/65dt64a Other insurance-related news.

GM will include one year of free auto insurance through MetLife for residents of Oregon or Washington who purchase a new GM vehicle by Sep-

tember 6. Commercial and fleet customers are not eligible. MetLife has the option to cancel the coverage after one year, and GM offers no discounts for those who choose to stick with their current insurer and opt out of the MetLife coverage. The automaker said it may expand the program to other markets if successful.

Also in the Northwest, some insurers are clearly keeping an eye on the ranking they are given by shops in an annual surveys similar to one conducted by a number of state associations around the country. Oregon Mutual Insurance, the 14th-largest auto insurer in that state, is including with its policy renewal mailings to its insureds a flier touting the “B+” grade it received (which tied it for the highest grade among 21 insurers) from collision shops in a survey conducted by the Northwest Automotive Trades Association.

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Inside Insurance

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

Hate the Way the Strings Are Pulled? Don’t Become an Insurer’s Puppet with The Insurance Insider

Thanks to a suggestion emailed from a reader of this column (J.W.), here are my thoughts and insights on the Farmers Insurance Circle of Dependability (COD) direct repair program agreement requirements.

The Society of Collision Repair Specialists (SCRS) recently published the agreement, saying it felt that some of the requirements warranted being made public. As an insurance company executive, I often wonder what the association’s true intent is. My guess is that it’s not because they were trying to foster good relations with insurers.

Personally, I think it’s a childish reaction to a big-boy problem. Hopefully, they feel they accomplished their mission. I can assure you that it doesn’t build trust or confidence with any insurance company or organization looking to build common ground with the association.

But enough of that rant. What I’d like to focus on is some critique of the

24 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

concerns about the requirements that SCRS raised, and my view of the stupidity surrounding agreements like this one. Suffice it to say, no one shall be spared the rod.

SCRS states that insurance carriers have continued to increase pressure over repair shops to obtain the quickest and cheapest repair. Does that really sound like a bad thing?

Anyone operating a for-profit business should be doing the exact same thing. Don’t body shop owners pressure their staff and technicians to perform the quickest, most economical repair?

SCRS goes on to further state that to improve business conditions, body shops need to find their voice. I have a suggestion. You don’t need to find your voice. You need to find something else that only males have. I would suggest letting your actions dictate what your voice and mind are saying. If it’s not good business, don’t sign the agreement. Don’t fax, mail or e-mail a response. Silence can be deafening.

I would argue that it must not be too bad or else people wouldn’t do it.

The trade-offs are apparently worth it to thousands of shops. That doesn’t make one shop better or worse than the other. It simply means that one man’s trash is another man’s treasure.

Would you sign that agreement if you had to give up an ownership stake in your business? Complain if you like but ultimately, you decide what you want for your business. Being a

COD shop wouldn’t be worth giving up even a small portion of your business no matter how small of a percentage.

To SCRS’ credit, I agree that there are quite a few undesirable items noted in their press release about the COD agreement. The “most favored customer” clause—which requires the shop to give Farmers the best pricing it offers any other insurer—is a stroke of genius. State Farm struck gold with this one a few years ago. Farmers is trying to ride State Farm’s coattails by including a similar requirement.

I think this is a fair clause if you are State Farm and the largest insurance carrier in the United States. Why shouldn’t they expect to receive the best discount you offer? But it’s ridiculous that Farmers assumes they are entitled to the same discount structure. That’s similar to Kohl’s or Sears demanding the same discount structure from their vendors that Wal-Mart receives. You shouldn’t throw around your weight where it doesn’t belong.

Clearly, Farmers is leveraging the industry’s inability to unite.

Remember that in any relationship, power is given. Body shops have

given insurers the power to make demands. Shops have given insurers the puppet-strings.

I’m laughing inside because most of you don’t realize you have the power to change it. If you’ve ever seen ‘The Wizard of Oz,” you know Dorothy had the power to return home any time she wanted. I’m not suggesting you simply need to click your heels and recite, “There’s no place like home,” but it is almost that easy.

Obviously, you don’t have any strings attached to you. You aren’t a puppet.

You don’t have to jump when the puppet-master pulls your strings. The sooner you realize it, the quicker that ridiculous direct repair agreements become a thing of the past.

What makes Farmer’s “most favored customer” clause unique is the requirement that once a quarter you provide a written, I-swear-on-mylife, cross-my-heart-and-hope-to-die statement that you are in compliance with the terms of that provision.

Give me a break! I think Farmers would be better served if it took the money it will spend to receive, document and follow-up with their COD shops on this and donate it to a char-

ity instead. It would get more press and accomplish more. Body shops aren’t criminals on parole requiring a weekly or monthly check to ensure they aren’t breaking the law. Farmers should remove this portion of the requirement if for no other reason to show that they trust their COD partners.

What happened to the good ol’ days when a man’s word and a handshake was all that was needed? I miss John Wayne and those days.

For more information, here is a link to the Farmer’s COD Agreement; http://autoepi.org/uploads/Farmers_COD_Agreement_-_2011.pdf__Adobe_Acrobat_Pro.pdf Also visit: http://www.scrs.com/pdf-news/PR%206-202011%20SCRS%20Releases%20DRP%20 Agreement%20Guidelines%20%20FINAL.pdf for SCRS’s press release about the agreement.

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

Fiat and Chrysler to Get Single Management Structure

Chrysler Group will have a single management structure soon, Sergio Marchionne, CEO of both companies, said July 13, as he takes another step toward merging the two automakers. Marchionne plans to announce a unified structure “in terms of leadership pretty quickly,” the executive told Automotive News reportors..

Marchionne is working on management changes as he steps up the integration of the two companies. He plans to merge the carmakers to reduce costs and achieve a target of more than $140 billion in combined revenue by 2014.

“No one is better than Marchionne at selling an auto story,” Societe Generale analyst Stephen Reitman wrote in a note to clients this week. “The current stock price already discounts most of the good news to come from Chrysler and ignores much of the risk.”

Fiat consolidated Chrysler's financial results starting at the end of May, a sign of the rapid integration of the two automakers since the U.S. manufacturer exited bankruptcy in June 2009.

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Larry Williams is an innovative parts manager with national awards and over 30 years of experience in creating and managing profitable departments. He can be reached for consultation at ljoew2@gmail.com

Parts Profiles

What Makes A Dealership Selling Wholesale Parts Distinctive? with Larry Williams

What makes a dealership distinctive?

By my definition, that dealership must have a greater image of integrity, service, and loyalty than their competition.

They have the greatest number of regular customers, and the best word-ofmouth reputation. Even their smallest customers know that their business is appreciated.

I offer you an example, an organization that has not just survived, but has grown steadily based on their customer service. Lasher Auto Group in Elk Grove, CA is an excellent example of the rewards of good service. AJ Killian, the parts manager, was determined to stay active even when others were cutting back or even closing. He now offers eight full time delivery vehicles covering the greater Sacramento area.

This is no sudden success; it has come slowly over the last eight years.

Steady, reliable service enabled AJ

35 miles, and a scheduled delivery even goes 125 miles for some very special customers.

AJ has two full time parts representatives, and visits his customers whenever he can.

AJ belongs to the California Autobody Association, and attends their meetings.

All of these ideas have one thing in common, they all relate to customer service. All the dealers who failed their customers, several in this area, are now closed. I believe that the continuing increase in this dealers business is due to overall attitude. Positive attitudes will create positive results.

If you are in the southern Sacramento area, and need parts for a VW, Audi, Subaru, Isuzu, Suzuki, Dodge, Chrysler, Acura, or Jeep, I wholeheartedly recommend Lasher Auto Group. I have no doubt that you will be pleased with their service.

and his partner customers to grow even in the hardest times. He talked to me about his operation, and I pass along some of his ideas here.

Quicker loading of his delivery trucks happens with a drive-through system that avoids congestion.

AJ handles all the stocking orders, but delegates the customer orders for better service. VW, Honda, and Chrysler programs assist him when Insurance Company demands create excessive use of non-OEM parts. Hopefully other manufacturers will follow their lead, and also help their dealer body to compete.

Separate inventories, approaching 1.5 Million, but with combined facilities, for more efficiency.

Expanding when necessary, watching driver over-time for clues, and always having a spare delivery vehicle available.

Trucks routinely deliver within

I invite other parts managers to contact me, and tell me their own stories of success. Wholesale relationships, quality personnel, always striving to be better, these philosophies deserve rewards. I will be happy to add you to my list of distinctive dealerships.

Larry Williams is a former parts manager and consultant with national awards and over 30 years of experience in creating profitable departments. He can be reached at ljoew2@gmail.com.

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Nissan Researching Solar Charging for Batteries in its All-Electric Leaf Western Edition

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Japanese automaker Nissan is testing an easier and greener way to recharge its Leaf electric vehicle by using solar power, part of a broader drive to improve electricity storage systems, the Associated Press reported.

Nissan’s Leaf went on sale late last year, but the automaker is looking ahead to about five years time when aging Leaf vehicles may offer alternative business opportunities in using their lithium-ion batteries as a storage place for electricity.

Nissan Motor Corp. acknowledges that, once the Leaf catches on, a flood of used batteries could result as the life span of a battery is longer than an electric vehicle’s.

Electricity generation and storage are drawing attention in Japan after the March 11 earthquake and tsunami caused massive blackouts in

the country’s northeast. A nuclear power plant that went into meltdown, Fukushima Dai-ichi, after backup generators were destroyed by the tsunami, is also renewing fears about a power crunch.

In the new charging system, demonstrated to reporters earlier this month, electricity is generated through 488 solar cells installed on the roof of the Nissan headquarters building in Yokohama, southwest of Tokyo.

Four batteries from the Leaf had been placed in a box in a cellar-like part of the building, and store the electricity generated from the solar cells, which is enough to fully charge 1,800 Leaf vehicles a year, according to Nissan.

Although interest is growing in renewable energy such as solar and

wind power, a major challenge is the storage of electricity, which remains expensive without a breakthrough in battery technology.

Such interest is likely to keep growing in Japan because of fears about the safety of nuclear power.

The Hamaoka nuclear plant is being shut down because of such concerns, and more may follow.

Other Japanese automakers, such as Toyota Motor Corp. and Honda Motor Co., are working on similar projects, such as linking hybrids with solar-equipped homes as part of energy-efficient communities called “smart grids.”

Electric vehicles produce no pollution or global-warming gases but need electricity, whose production mostly relies on polluting oil or gas.

Even after a Leaf is ready to be

scrapped, its battery is likely to have 80 percent of its capacity. On the plus side, the Leaf with its high-capacity battery can store the equivalent of two days of household electricity use, Nissan said.

“What’s important for Nissan is to show solutions through EVs, step by step,” said Corporate Vice President Hideaki Watanabe.

A joint venture with Sumitomo Corp. called 4R Energy Corp. plans to offer eletricity storage systems like the one at Nissan headquarters for business and public facilities as a commercial product by 2016.

Nissan also hopes to start selling such storage systems for regular homes by the fiscal year starting in April 2012. It will carry out field tests starting in December, 4R Energy President Takashi Sakagami said.

Vehicle owners who opt to convert vehicles to run on compressed natural gas have a new refueling option, according to the Detroit News.

Michigan Consolidated Gas Co. on July 14 unveiled a new, four-pump compressed natural gas station— complete with a credit card reader for the public. It is one of 13 such stations in Michigan that are open to the public.

The natural gas utility is hoping the alternative fuel’s lower emissions and lower cost per equivalent gallon of gasoline will propel more companies that use heavy vehicles such as trucks or low-gas-mileage vans to consider making the switch to compressed natural gas.

“As you make it more convenient for people and there are more options for refueling, it makes it a more attractive alternative,” said John Austerberry, a spokesman for DTE Energy, the parent company of MichCon.

In 2009, MichCon was awarded $5.4 million in federal money through the nonprofit Clean Energy Coalition to boost the number of natural-gas fueling stations in Michigan and convert 173 new Ford Econoline vans to operate on natural gas.

DTE Energy is investing $6.8 million toward buying the new vans and refurbishing more than 10 other natural gas stations it operates across Michigan.

Jerry Norcia, MichCon president and chief operating officer, said he personally bought a Ford F-150 Harley-Davidson model this year and converted it to run on natural gas.

“Especially at $1.94 a gallon (equivalent to gasoline), it makes me feel good every time I jump in that truck and drive it,” he said.

The cost to convert a regular gas vehicle to natural gas, though, is a barrier that prevents some companies and others from making the switch.

Conversions can range from

$11,000 to $20,000, depending on factors such as the natural gas tank size, said Ken Baranski, director of sales for Suburban Ford of Sterling Height’s fleet division.

The dealership sold the vans to MichCon and contracted with National Fleet Services of Michigan for the conversions.

“I’ve already saved about $1,000 in fuel,” Norcia said, after filling 2.9 gallons of compressed natural gas into his truck for $5.67.

The U.S. Energy Information Administration estimated in 2009 that 645 vehicles were running on compressed natural gas in Michigan, up from 518 in 2008. The 2009 numbers are the most recent available.

Nationally, more than 114,000 natural-gas powered vehicles are on U.S. roadways, according to the federal government.

About 1,000 natural-gas fueling stations are available across the nation, about half of which are publicly

available, says National Gas Vehicles for America, a Washington D.C.based trade association representing the natural gas vehicle industry.

Refueling infrastructure and the range of a natural-gas vehicle are among other barriers to more adoption, said Sean Reed, executive director of the Ann Arbor-based Clean Energy Coalition. Although these barriers will potentially exist for any new vehicle technology.

The coalition, through its $15 million federally funded Green Fleets initiative, works with other Michigan entities to deploy clean-fueled vehicles, such as those running on natural gas and liquefied petroleum gas, and build infrastructure to support them.

“If they don’t know anybody who has a vehicle like this, it makes it seem like a challenging thing to do because of the unknown,” Reed said.

“When people see more of them around, it gives people a greater comfort level.”

Companies Working to Expand Natural Gas Vehicle Options

28 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

Gonzo’s Toolbox

This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com.

Gonzo has been serving the Tulsa area at Superior Auto Electric for over 27 years. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com.

How to Keep Your Cool When Working With HVAC Diagnostics with Gonzo Weaver

Leave it to the manufacturers to take a simple thing like heat and air conditioning and turn it into an electronic jungle of wiring, sensors, and computer components.

HVAC units have come a long way from when I started in the business. Not that I want to dwell on the past, but it might be a good idea to make sure we understand the basics before diving into the problem of today’s systems. I always feel that if I understand a system fully before doing any repair work I’m more likely to get it right the first time.

Diagnostics procedures vary from car to car and from year to year.

I’m finding more and more these days it’s a lot easier to diagnose the HVAC system with a scanner rather than with a print and test light. With the advent of the electronic door motors and the crazy locations on some of these components I would definitely

try to use a scanner when possible.

An interesting fact: even on some of the aftermarket scanners there is a wealth of information on HVAC systems. Before purchasing a scanner I would ask whether or not it covers HVAC units and which years, which models, and how thorough it is.

The more information you can have before you have to get your hands dirty the better.

One of the more common repairs I’ve see on both domestic and imports is connections. The manufacturers (in my opinion) have gone to the point of making these connection just barely survivable, but, not for the length of time that consumers are stretching their vehicles useable years on the road.

The other item of concern is the control sensors, i.e. high pressure sensor, low pressure sensor, sun load, etc., for the most part I wouldn’t drag out

that test light and start stabbing the wires. They may look like a sensor, they may have wires like sensors, but there’s a good possibility that it’s not a positive or negative signal at the sensor. In some cases the sensor maybe reading a digital type signal (wave form voltage) that would be easier read on a scanner screen instead of that 12v test light. These values are then sent to the PCM to be interpreted and used to determine the actual A/C clutch engagement or door positions.

There again, a scanner is the proper tool of choice, not the test light.

Assuming we don’t have a component failure and that the entire problem is a connection somewhere—let’s say at the blower switch—which in some cases is also the “ON” switch for the entire system.

If the plastic housing has been melted and the physical “metal” connector is skewed out of place chances are that

no matter how much manipulating you do to “re-fit” the metal tab back into place it’s still going to end up back where it started at and your customer will be back at your door with the same problem.

I would locate a replacement connector either from the dealer or the local parts store. (I’ve had next to no luck getting a connector from the salvage yards, most of the connectors that come from the salvage yard are just as bad as the one I already have in the car. But, you might get lucky.)

The advantage of using a scanner to see certain sensor values and door positions also has one extra quality to the diagnostic process. Codes; codes for the HVAC system are valuable information for you as the tech. However, a code is not the answer, a code is a starting point or a direction for repair. So many times I see vehicles See HVAC Diagnostics, Page 30

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 29

impact customer service and cycle time. The announcement comes in the form of a video released by the company featuring Tracy Tramm, Allstate Claim Service Manager for the Good Hands® Repair Network.

In the video directed at the DRP shops, Tramm says “As you know, reducing auto cycle time is a key com-

ponent in improving customer satisfaction for Allstate and your facility... as you continue to deliver priority service to our mutual customers.

“It goes without saying, that the quicker you reach out to the customer, the sooner they know, they’re in our good hands. I also want to remind you of four key messages and process changes to the network program in early 2011.

“Compliance with these items remains a core requirement for your par-

ticipation in Allstate’s direct repair program.

“First and foremost, your shop will give priority service to Allstate customers having their vehicles repaired by you. Estimates must be completed and uploaded within 24 hours of your receipt of the vehicle. Third, your facility will be required to commit to a guaranteed completion date for all vehicles repaired under the Network program.

Your shop will be responsible for

Joseph P. Lacher Jr., president of Allstate Protection, is leaving effective immediately, Allstate Corp. announced July 18. Shares dropped significantly (@5%) on the news.

Various presidents as well as claims and product operations executives of the various Allstate Protection units will report directly to Thomas J. Wilson, Allstate’s chief executive.

Lacher, who led all of Allstate’s property and casualty offerings as president of Allstate Protection, no longer appears on a list of executives on Allstate’s website. Lacher joined Allstate

in November 2009 after having worked at Travelers for more than a decade, eventually becoming chief executive officer of Personal Insurance and executive vice president at the competing insurance firm. At Allstate, Lacher succeeded George Ruebenson, an executive who retired after almost 40 years.

Last month, at an investor conference, Lacher outlined a business plan to grow Allstate’s P&C segments with a new distribution model. The National Association of Professional Allstate Agents did not look upon the plan favorably.

Lacher told investors Allstate will be increasing homeowners’ rates and tightening underwriting standards in an effort to achieve a combine ratio in the low 60s, excluding catastrophes, by 2013. In auto, Lacher said Allstate is primarily concentrating on New York and Florida, which account for 20 percent of the carrier’s business.

Allstate plans to buy online auto insurer Esurance and independent insurance agency Answer Financial from White Mountains Insurance Group Ltd. for about $1 billion. The transaction is supposed to close this fall.

Continued from Page 29

The PCM would shut down the A/C trying to maintain a voltage level that was acceptable but never got to the point of causing the charge indicator to come on during this whole process (Cars are getting too smart these days).

The best thing I can tell you about diagnosing HVAC systems is to consider the year and make of the car, find out whether or not a scanner can code, read values, and or give you some information on the condition of the components before you start changing things.

If there isn’t an access by way of a scanner, then I would suggest a wiring diagram and a description page that will inform you of how each component works in that given system.

If you keep your cool I’m sure you can get it diagnosed and repaired before your customer gets too hot.

Continued from Page 1

Allstate Process

Allstate Shakes Up President’s Position, Shares Drop on the News

HVAC Diagnostics

come in with new parts bolted in because the last place that had it read a code and assumed that meant replace the part.

A perfect example of this was a 2002 VW Beetle that came in with a brand new compressor and fan controller on it. There was a code stored for poor compressor performance at idle, which was exactly what it was doing. If the car was at an idle the A/C was off, rev the engine just slightly and the compressor would turn on and work perfectly. Bring it back to an idle and the compressor would shut back off.

Checking into it a little further, I found the real culprit to be the charging system. At an idle the alternator couldn’t develop enough output to maintain all the systems in the car.

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any and all costs caused by a failure to meet the guaranteed completion date.

And finally, at the customer’s reasonable request, your shop will provide extended hours of operation.

Contact your local performance manager to answer questions. You are why it works. Thank you.”

The video can be viewed at www.autobodynews.com by searching this story under the “Insurer Actions and Announcements” section.

Walker Automotive Among Largest US Dealerships

For the fifth straight year, Alexandria-based Walker Automotive has made Ward’s Dealer Business magazine’s list of the 500 largest automobile dealerships in the country.

Walker was No. 52 on the list, which ranks dealerships based on total revenue.

Billy Navarre Chevrolet and Honda in Lake Charles also made the list, at No. 235, the only other Louisiana dealership on the list.

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 31

J.D. Power Survey Ranks Ford 23rd out of 32 Auto Brands, of US Manufacturers Only Cadillac Makes the Top Ten For the first time since Ford CEO Alan Mulally took charge of the automaker, its initial quality scores have fallen below the industry average.

The J.D. Power & Associates 2011 Initial Quality Rankings put Ford in 23rd place among 32 auto brands ranked by consumers.

Ford fell 18 spots from #5 last year, with the latest survey showing Ford registering 116 problems per 100 cars.

The industry average (107 problems per 100 vehicles) improved slightly from last year’s IQS rankings with Lexus topping the list this year with 73 problems per 100.

The top 10 in the J.D. Power IQS Rankings. #1 Lexus, #2 Honda, #3 Acura, #4 Mercedes-Benz, #5 Mazda, #6 Porsche, #7 Toyota, #8 Infiniti, #9 Cadillac, #10 GMC The other American brands all came in below the industry average. #14 Chevrolet, #16 Chrysler, #17 Lincoln, #20 Buick, #22 Ram, #23 Ford, #32 Dodge With Ford, car and truck buyers have been complaining of technical and electronic features not working as

they should. In January, Consumer Reports called the new MyFord and MyLincoln Touch systems a distraction, summarizing the frustration some new Ford buyers are feeling.

There have been reports of Ford buyers complaining the system struggles to respond to voice commands or that it’s simply too confusing.

For Ford, this latest ranking shows the downside of trying to ride the tech advantage it’s had for last couple of years with the Sync system.

Sync was a game changer that not only helped drive sales with higher transaction prices, it changed the image of Ford. MyFord Touch was supposed to be the next generation that would extend Fords lead when it comes to incar technology and communications.

Overall, Ford is still doing very well, and the quality of its new cars and trucks are much better than a few years ago.

www.autobodynews.com CHECK IT OUT!

KBB Says Honda & Toyota Challenged by Hyundai for Tops in Brand Loyalty, Hyundai Holds Top Spot for Latest Quarter of 2011 No longer is either Honda or Toyota holding the No. 1 spot for brand loyalty on Kelley Blue Book’s website.

The top position is still in the possession of a foreign automaker, but Hyundai ousted these traditional mainstays to take headline spot for the second quarter of this year on Kbb.com.

Furthermore, site officials mentioned Hyundai not only secured the leading spot in loyalty in February of last year, but Monday’s discovery also marks the first time since Kbb.com began tracking this data that Hyundai has held the No. 1 spot for an entire quarter.

Kelley Blue Book believes shoppers’ loyalty to their respective brands has waned during the past year for the majority of nameplates due to the economic downturn and consumers becoming much more aware of issues such as fuel prices, safety recalls, available vehicle options and additional models within their intended price points.

While many of the industry's top players have found themselves struggling to retain customers, analysts contend Hyundai has “blazed a new

trail” and preserved its loyal consumer base. They attribute the driving factors behind this retention have been aggressive marketing campaigns combined with innovative product redesigns like the highly successful 2011 Sonata and 2011 Elantra.

For the second quarter of this year, KBB determined Hyundai's brand loyalty was at 52.3 percent with Honda following at 49.7 percent and Toyota sliding in third at 47.7 percent.

Rounding out the top five for the quarter were Ford in the fourth spot at 45.4 percent and Subaru in fifth at 44.8 percent.

In a time when most brands are losing loyalty, Kelley Blue Book said it’s notable that fellow Korean automaker Kia also is bucking the trend.

Analysts found Kia is one of only two brands that are up in brand loyalty year-over-year with the other being Mini.

KBB thinks both Kia and Mini are succeeding in retaining loyalty for reasons similar to Hyundai with a combined result of attractive redesigns, additional models within their respective lineups and aggressive marketing campaigns.

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 33

The Devil in the Details—Measuring Metrics Properly

by Greg Horn, VP Industry Relations, Mitchell International

The Q2 2011 Mitchell Industry Trends Report (ITR) contained a feature I wrote about how repairable estimates can best be executed, “Are You Measuring Your Auto Insurance Claims Metrics Properly?” I argued (persuasively, I hope) that defined metrics and a clear plan can help make your business great, achieving measurably better auto insurance claims processing outcomes in the process.

The key is to understand who your competitors are and if you can replicate their performance. Only then can you have an achievable performance improvement goal that allows you to focus on the person, part and process that can be improved.

Determining what is great estimating performance, and whether this great performance can be replicated, requires a large sample size to allow for a statistically significant evaluation. In addition, the ability to drill down and segregate vehicles by type, age and country of origin as well as factoring in the geography of the repair estimates are all necessary in order to truly have an accurate comparison.

Comparing your performance against the industry average by identifying the best performers isn’t a simple, mindless process, and nor is analyzing the data and setting performance benchmarks. Adding to the complexity is the constantly changing mix of vehicles coming through the repair process.

As an example of how specific metrics need to be in order to be meaningful, consider this—there can be more than an hour difference in labor time in Removing and Replacing a used bumper assembly vs. overhauling an existing damaged bumper system. That hour difference can be important in an area with extremely high labor rates.

To measure metrics properly, looking at the distribution of the claims by inspection type (sometimes called appraisal channel) can help you let the data help your business. It is quite revealing in terms of distribution of claims severity. Removing the lower dollar estimates alters the overall average paid severity (not sending independent appraisers out on small hits and relying on claimants to fax in

estimates for example), reducing repair vs. replace, paint hours metrics and part use when comparing estimates to appraisal channels that routinely see those smaller hits.

Similarly, Direct Repair averGreg Horn, VP age paid severity is Industry Relations, actually a measure Mitchell of the completed International repair orders and not the average of an appraisal written by a staff appraiser. Why is that? Because some claimants will make a claim and not repair the vehicle, so any hidden damage or price changes would not be reflected in these appraisal totals.

Again, no easy task to ensure the data is as close as possible for comparison, and next up is measurement scale: do you want to measure your company performance against the average or the best in class? Both are advisable; measuring merely against the industry average only provides a comparison to the middle, and not the best that can be achieved.

Rather, you need to find where the best performers are in your given data subsets, those in the 75th percentile and above. Establishing a bestin-class goal that is achievable because it considers the types of businesses (standard vs. non-standard insurer, vehicle mix, etc.) you are indicating are your closest competitors along with other factors, such as geography, is a worthy goal – one that will help you meet your particular performance goals.

All the data means something.

The key is identifying what the data means to your business performance.

And this brings us to the importance of understanding what to measure.

Many industry measurements and metrics are somewhat flawed, and need to be revisited, or refined with a second measurement, in the name of proper measurement and dependable metrics. In addition, many best-inclass metrics are a moving target.

There are multiple factors in flux that keep the definition of best performance ever-changing: Americans are moving towards smaller and more fuel-efficient cars, so the repair vs. replacement of panels performance metric will change. Smaller cars, thinner

34 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

gauge metals, changing metallurgy, and the low cost of alternate parts will reduce repair opportunities.

On the topic of changing metrics, currently we see OEMs and their price-matching programs having an interesting impact on market share assessments. OEMs’ price-matching programs help them sell more parts.

But lowered OEM parts prices make it look as though OEMs are losing market share to aftermarket and used parts, at a faster rate than measuring the number of OEM parts specified on the average repair. In fact, today the percentage of alternate parts use on estimates is overstated when using the industry standard metric of ‘percentage of parts dollars’. When measuring the number of parts by part type, we see that used parts have remained fairly steady at a little under 1 part per estimate, and aftermarket parts at bit over 1 part per estimate. Looking at parts use in this way gives us another important measure of parts performance and provides better visibility into the performance metrics that matter to your business.

The industry needs more complete picture of parts use. I suggest keeping the existing metric and industry standard and then for true insight, add the number of parts on the estimate by parts type. This approach does go against the prevailing wisdom, but understanding the real metric here is important—because by supplying the majority of parts on a Repair Order, the OEMs are the pivotal parties of cycle time, and shops need to maintain good communication with all of their parts vendors and understand what is in stock and when the delivery will be made.

Starting in the third quarter of 2011, the next Mitchell Industry Trends Report will include this new metric, in a bid to help tame the devil in the details and help the industry measure metrics properly.

Statements and opinions expressed in this article are solely those of the author. They are not offered as and do not constitute legal advice or opinion of Mitchell International, Inc.

Hertz Files Premerger Notice with Federal Antitrust Regulator

Hertz Global Holdings has pushed back the deadline of its latest offer to acquire Dollar Thrifty Automotive Group, but the proposed Hertz-Dollar Thrifty merger took a major step forward the week of July 10.

Hertz says that it gave federal antitrust authorities the premerger notification required by the Hart-ScottRodino Antitrust Improvements Act of 1976, as amended, regarding its offer for DTAG. According to the Federal Trade Commission, Hart-ScottRodino basically created the path by which parties must inform the FTC and Department of Justice about large mergers and acquisitions ahead of time.

“The Hart-Scott-Rodino Act established the federal premerger notification program, which provides the FTC and the Department of Justice with information about large mergers and acquisitions before they occur,” the FTC explains on the Bureau of Competition section of its website.

The FTC says that deals cannot be closed until the one of the following happens: the specified waiting period ends or the government allows the waiting period to end early.

GM is Top OEM in Truecar.com June Performance Scorecard

Hertz to Acquire Donlen in $930M Transaction

Hertz Global Holdings and Donlen Corp. announced July 18 they have signed a definitive agreement for Hertz to acquire Donlen. The transaction has been approved by the boards of directors of both companies and by the stockholders of Donlen. The transaction is expected to be completed in the third quarter of 2011, subject to the satisfaction of customary closing conditions, including regulatory approvals.

Mark Frissora, the chairman and chief executive officer of Hertz, said, “The acquisition of Donlen expands our portfolio of transportation solutions by giving Hertz an immediate leadership position in long-term car, truck and equipment leasing and fleet management for corporate customers who need scale and sophisticated fleet management services. This range of solutions from a single provider will make Hertz unique among its peers.”

Frissora added, “The integration of Donlen gives Hertz a yearly and multiyear offering that complements our hourly, daily and monthly car sharing and car rental options for customers, giving us a more stable revenue stream and new adjacent markets to leverage our existing business model.

Truecar.com, the pricing-analysis website, has determined the top manufacturer on the June scorecards was General Motors, followed by Porsche and Hyundai. Near the bottom of the list were Saab and Mazda. TrueCar.com says the brands that received the highest grades were Chevrolet, Audi and Porsche, and the brands with the lowest grades were Saab, Mazda, Chrysler and Infiniti.

The site recapped the Performance Scorecards grades each manufacturer and brand on eight different measurements including pricing, sales, incentives, customer loyalty, market share and days in inventory data.

“General Motors had a great sales month in June and a big drop in their discounts which propelled them to have the highest grade,” said a Truecar.com spokesman.“The Japanese automakers continued to be on the bottom of the scorecards due to low inventory, leading to low retail sales change and a decrease in market share change.”

The biggest gainers among manufacturers from May to June were GM moving from a A– to an A+, and VW moving from a B to an A–.

Audi Plans to Build Cars in North America, Eventually

Automotive News is reporting that Audi AG has decided to build a vehicle assembly plant in North America and is considering an additional engine and transmission plant. Volkswagen Group’s premium brand is completing details of the assembly plant—including models, location and capacity. Audi CEO Rupert Stadler said all decisions will be made within three years.

“It is totally clear that we need new production capacity in the U.S.,” Stadler said in an interview. The question is when.”

An Audi source said the carmaker is considering building an engine and transmission plant in North America to increase local content.

That second plant could be shared with VW division.

Inventory is an issue for Audi, which set a sales record in 2010 with 101,629 sales in the United States.

Stadler said Audi plans to increase U.S. sales by 10 to 20 percent this year and could surpass 150,000 units by 2015.

“Our dealers currently ask for more cars than we can deliver,” he said.

“Our delivery times are still too high.”

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(818)778-2090 778-2090 FFAX AX (818) www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 35

Dealership-based Body Shops Down by 24% Since Recession Began The number of body shops operated by automobile dealerships has dropped by nearly 24 percent nationwide since the beginning of the recession, according to the latest data released by the National Automobile Dealers Association (NADA) in its annual State of the Auto Industry Report.

At the close of 2007, according to NADA at that time, an estimated 37 percent of the nearly 21,000 automobile dealers in the country operated onsite body shops. Using the NADA estimates, there were approximately 7,685 dealership body shops in the country.

Now, four years later, after the closure of thousands of dealerships through the recession, combined with the rising trend of dealers continuing to opt out of the body repair business, just 33 percent of the surviving 17,700 dealerships continue to operate body shops.

With these latest NADA estimates, there are now approximately 5,841 dealer body shops remaining. If the association's estimates are correct, the dealer-owned body shop population has shrunk by nearly 24 percent, or more than 1800 shops nationwide, since the end of 2007.

The financial performance of new-car and -truck dealerships did improve in 2010 despite a slow economic recovery says Paul Taylor, chief economist of the NADA. “New-car dealerships improved their profitability in

2010 through strict cost control, such as reducing rent and real estate costs, cutting advertising expenses and maintaining lower floorplan costs,” Taylor said. “However, the difficult economic recovery and brands leaving the marketplace caused 760 dealerships to close in 2010.”

The average revenue of the dealer-operated body shops also ticked up slightly in 2010, according to the report. In 2010, the average shop would have earned an estimated $1.09 million dollars in revenue for the year. That is up from the recession low of $1.02 million in 2008, but still more than 12 percent below the average $1.24 that NADA estimated each shop earned in 2007.

Business was up slightly in the service and parts departments in 2010 as well. Total franchised dealership service, parts, and body shop sales reached nearly $78 billion in 2010, and sales by the typical dealer were up by 5.2 percent, as many car owners drove their cars and trucks longer.

Compared to pre-recession levels, however, there is still ground to make up. In 2007, NADA estimated that total franchised dealership service and parts sales reached almost $84 billion, up from $80.5 billion the previous year.

In 2010, NADA reported that the average customer mechanical labor rate was $93, an increase from $91 in 2009.

New Vehicle Dealerships’ Sales for Service, Parts, and Body Shop Sales Total $78M Total franchised dealership service, parts, and body shop sales reached nearly $78 billion in 2010, and sales by the typical dealer were up by 5.2 percent, as many car owners drove their cars and trucks longer.

Dealerships faced increasing competition from independent service centers and quick-lube centers, but dealers continue to attract customers with competitive pricing and upgraded facilities. Last year’s service sales were powered by stronger light-vehicle sales in addition to continued recall activity for some makes and service needed for the aging vehicles.

New-vehicle dealers have made a major investment in service and parts

to increase sales and customer satisfaction. To boost customer convenience and make full use of their facilities, 78 percent of dealers offer evening service hours, weekend hours, or both. The average dealership service department is open for business 56 hours per week. In recent years, more dealerships have opted to remain out of the body shop business (see previous story). NADA Industry Analysis estimates that just 33 percent of newvehicle dealerships had body shops in 2010, down from 2009. Auto body work performed by all new vehicle dealerships remained at just over $6.4 billion in 2010, down from about $6.6 billion in 2009.

36 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

Assured Performance and CARFAX Join Forces Assured Performance Network announced that they have entered into an agreement with CARFAX to report when a vehicle is repaired using 100% OEM Collision repair parts if it is already reported as damaged. The repair reporting also requires the shop and consumer’s permission. Buyers and sellers of used cars will now have information about how the vehicle was repaired after being damaged. Participating Network certified shops can also elect to report that repairs were performed by a “Certified Collision Care Provider” on the CARFAX® Vehicle History Report™.

“Our research shows that reporting repairs helps build consumer confidence in previously damaged vehicles,” said Nancy Fiorino, National Director CARFAX. “Our new partnership with Assured Performance may help boost the resale value of previously damaged vehicles and contributes to the overall safety of our highways.”

The reporting helps to address consumer full disclosure requirements often neglected by the industry. Assured Performance will supply repair infor-

mation that may help reestablish vehicle value by showing that the vehicle was repaired after an accident. Assured Performance will leverage their auditing capabilities used in the 100% Write Rebate Rewards Program created in concert with auto manufacturers (OEM). The unique incentive-reward program already provides the body shop with an exclusive “Certificate of Authenticity” to present to the customer verifying the use of 100% OEM collision repair parts. The same automated data-driven audit process will be used for the CARFAX report.

“Oftentimes, the fact a vehicle is in an accident is already being reported to CARFAX. Now, we can report the positive aspects that it is being repaired using 100% OEM collision repair parts, and by a Certified Collision Care Provider,” said Scott Biggs, CEO of Assured Performance Network. “The infrastructure we created through 100% Write and our shop Certification programs allows us to report to CARFAX the positive information related to the safety, craftsmanship, and repair quality.

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 37

QMT 1000, New Metal Tester, Saves Time and Ensures Safe Repairs The advanced metals used in our late model cars are the result of the combination of government CAFÉ standards that set mileage targets and the 5-star crash requirements used to promote safety.

These new steel composites are both lighter and stronger, thus providing the strength and reduced weight that aids the car manufacturers to meet or exceed the mileage and safety goals.

“This has created a problem downstream,” says John Leddy, President of LDC equipment and a leading instructor in auto body repair.

The advanced metals require different methods of repair than older auto bodies and very few shops are equipped to identify the metal under repair.

Improper identification and repair methods will result in a compromised auto frame that can no longer stand up to the rigors of a 5-star crash test, according to various OEM repair manuals.

During the last 5 years, automobile manufactures have been forced to significantly modify their designs because of US CAFÉ laws and crash safety requirements. These changes have resulted in the use of both lighter and stronger composite metals and fibers. The lighter weight allows for obtaining better mileage. The downside however, was the need for additional strength.

The OEM’s obtained this strength with new and stronger metal composites that they use especially in the side door beams and passenger area. This has allowed most of the OEM’s to reduce the weight thus assisting in achieving the mandated CAFÉ standards and to be able to achieve the required crash safety commitments of the industry.

The problems associated with these forward changes are seen in the collision repair business. This is because these composite metals such as Boron, Trip and DP Steels cannot be heated nor bent without fracturing or significantly changing the structural nature of the metal.

When improperly welded, heated, stressed or bent, the metal is no longer structurally sound enough to perform the safety functions (protection) it was designed to meet.

Most new automobiles now incorporate these exotic metals, and many of the OEM’s provide some color coded pictorial views of the different structures and metals.

However, access to these documents are limited and in many cases hard to read as the drawings only marginally reflect what the autobody mechanic sees in the physical and bent autobody he/she is attempting to repair.

Prior to these new materials, the auto body repair technicians simply used brute force with hydraulic pulls and heat in addition to cutting & welding structure in place. This method can no longer be utilized and still maintain the integrity of the original automobile Uni-body and Frame.

Auto body technicians have quickly needed to update their training in materials recognition and repair methods. Even rudimentary training that provides the ability to reference the body structures from OEM manuals or third-party data companies is now a requirement. The average time spent reviewing the manual information and assessing the material content can take more than half an hour for each section.

QMT1000 Autobody Analyzer An alternate approach is the use of a metal probe such as The “QMT1000 Autobody Analyzer” from LDC Equipment. LDC Equipment is a leading distributor of equipment used in the auto body repair business and has introduced a breakthrough technology to enable autobody technicians to quickly assess the metal content under repair.

“In order to avoid the heavy liability exposure faced by collision repairs shops, they will need to spend hours in learning OEM manuals and advanced training or employ the QMT1000 on the frame structures to get instant readings and certificates of metal content and procedures,” said Leddy.

“We are pleased to have LDC Equipment represent our metal tester in North America,” said Jan Stark of JNE SE. “The European collision repair market has lead in its ability to cor-

38 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

rectly repair these advance metals and our metal tester was an instant success.

We are pleased to have LDC Equipment representing the product because John Leddy has been a leader in advanced methods and repairs.”

The quick metal testing instrument, a QMT1000 provides the user with an instant reading that reveals the composition of the auto body metal in need of repair or the composition of non-OEM replacement components.

It allows for the technician to simply probe the metal and assess the readings and quickly down load a certificate of content and repair to understand and verify the metals composite prior to commencing repairs.

The QMT1000 is quick, easy and eliminates doubt while providing the proper protocol for each metal assessed. Liability concerning proper repair techniques will soon become a major issue for collision repair facilities and insurance companies.

Failure to follow proper techniques compromises the safety standards incorporated into modern vehicle design.

The use of improper techniques such as heating, welding, pulling and bending will result in a safety compromised vehicle and would expose the repair facility to heavy liability exposure if the vehicle were to experience another collision event.

The QMT1000 is available immediately from LDC Equipment or online at http://www.qmt1000.com.

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Comprehensive Review of Distracted Driving Research Released The Governors Highway Safety Association (GHSA) released the first comprehensive overview summarizing distracted driving research for state officials. The report considered research from more than 350 scientific papers published between 2000 and 2011.

GHSA produced the new report—Distracted Driving: What Research Shows and What States Can Do—with a grant from State Farm®.

The report summarizes: what distracted driving is, how often drivers are distracted, how distraction impacts driver performance and crash risk, what countermeasures may be most effective and what states can do to reduce distracted driving.

“Despite all that has been written about driver distraction, there is still a lot that we do not know,” said GHSA Executive Director Barbara Harsha, who oversaw the report’s development. “Much of the research is incomplete or contradictory. Clearly, more studies need to be done addressing both the scope of the problem and how to effectively address it.”

The report outlines the following certainties: • Distractions affect driving performance.

• Drivers frequently are distracted, perhaps as much as half the time.

• Drivers adapt to some extent: they pay more attention to driving and reduce their distracting activities in more risky driving situations.

• Distractions are estimated to be associated with 15 to 25 percent of crashes at all levels from minor property damage to fatal injury.

• Texting likely increases crash risk more than cell phone use.

• Cell phone use increases crash risk.

Based on the existing research, the report urges states to implement the following countermeasures: • Continue to leverage effective, lowcost roadway countermeasures such as edgeline and centerline rumble strips, which alert motorists when they are drifting out of their driving lane.

• Record distracted driving in crash reports to the extent possible, to assist in evaluating distracted driving laws and programs.

• Monitor the impact of existing handheld cell phone bans prior to enacting new laws. States that have not already passed handheld bans should wait until more definitive research and data are available on these laws’ effectiveness.

• Evaluate other distracted driving laws and programs. Evaluation will provide the information states need on which countermeasures are effective and which are not.

The report also lists countermeasures that states should consider, such as: • Enact a texting ban for all drivers and a complete cell phone ban (both handsfree and hand-held) for novice drivers.

• Enforce all existing cell phone and texting laws.

• Implement distracted driving communication programs.

• Help employers develop and implement distracted driving policies and programs.

GHSA Executive Director Barbara Harsha stressed, “While distracted driving is an emotional issue that raises the ire of many on the road, states must take a research-based approach to addressing the problem.

Until more research is conducted, states need to proceed thoughtfully, methodically and objectively.”

Harsha also noted that high visibility texting and hand-held cell phone enforcement demonstration projects in New York and Connecticut, funded by the states and the U.S. Department of Transportation and modeled after the Click It or Ticket seat belt program, are proving to be effective in helping to change motorist behavior.

“Our report includes the preliminary results of these cell phone crackdowns, which have prompted dramatic declines in hand-held cell phone use and texting behind the wheel. The final results are expected shortly and should be considered as states move forward with education and enforcement initiatives.”

Visit www.ghsa.org to view the full report.

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951.509.6578 Fax

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 39

Northeast News

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

Reedman-Toll in Langhorne, PA, Finds Ways to Boost its Bottom-Line with Chasidy Rae Sisk

By focusing on growth in the service department of Reedman-Toll Auto World in Langhorne, PA, President Bill O’Flanagan has improved the bottom line of his dealership. In fact, he claims that last year was the most profitable year they have seen, deBill O’Flanagan, spite the economiReedman-Toll cal recession the President country is dealing with, and Reedman-Toll is on target to produce even better results in 2011.

When O’Flanaghan and his partners took over the dealership seven years ago, Reedman-Toll was not focused on sales in their service department; however, according to O’Flanaghan, “there is no way to make a business successful unless all of the departments are profitable”. With this mindset, Reedman-Toll has doubled the number of service customers seen each month in the past five years.

The Sales Floor at Reedman-Toll

Besides offering a wider margin of profits, selling parts also aids customer retention because customers are more likely to buy a second car from the same dealership if they have developed a relationship by servicing their automobile at the same location.

O’Flanaghan compares his goal of an all-inclusive relationship with his customers to a consumer’s relationship with Walmart: Reedman-Toll services all of the customer’s needs.

Because O’Flanaghan sees brakes, batteries, tires and windshield wipers as the standard point of defection when a customer breaks their relationship

with the dealership, he offers daily deals on these items to encourage cus-

tomers to turn to Reedman-Toll for all of their service needs. On Mondays, the dealership offers oil changes for $9.95, Tuesdays offer free tire rotations with a minimum of a $50 service visit, and on Wednesdays, oil changes cost the check-in time in 24-hour format (i.e., 4 P.M. is $16). Customers receive free front wiper blades and a complimentary one-day car rental with the purchase of a 30K, 60K or 90K mile service check, and Reedman-Toll offers 15% off the service bill for all 2005 and older models on Fridays.

O’Flanaghan encourages his sales team to guide customers toward the service department by offering monetary incentives. Salespeople can earn an extra 2 percentage points in their commission if at least threequarters of their customers return to Reedman-Toll for their first oil change, and this bonus averages around $45 for each car they sell. Sales managers emphasize the importance of the bonus program with great response as sales employees generally reach the goal and obtain the extra commission.

Service managers are expected to be as aggressive as the sales department when it comes to promotions because according to O’Flanaghan, “they are still sales managers— they’re just selling parts.” His strategy is to build the shop business aggressively, though he knows that building the service and parts departments must be a long-term approach, rather than a quick solution as many dealership principals expect.

O’Flanaghan is happy with the results thus far of his attempt to build the service department. Because service and parts income is more stable, improving this business decreases the pressure on the dealership as a whole since they have an idea of their monthly

40 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

profit through service and parts.

Currently, Reedman-Toll uses some wholesale crash parts in their shop, but they also sell some crash parts to outside body shops. Because aftermarket competitors make and recycle these parts at a lower price, the dealership is forced to sell them

The collision drive through at Reedman-Toll

at no profit or, in some cases, even a loss, but there is some additional opportunity in selling them to other organizations, such as Fred Beans Automotive in Doylestown, PA.

The next order of business at Reedman-Toll is to improve the wholesale and accessory sales departments. The dealership has not utilized these areas of potential profit in the past, but O’Flanaghan hopes to begin focusing on customizing vehicles to the customer’s desires as well as to get into wholesale to provide a healthy parts inventory, thus improving customer retention by supplying all of the customer’s needs which will, in turn, benefit the business as a whole.

Reedman-Toll Auto World 1700 East Lincoln Highway Langhorne, PA 19047 (800) 396-0474

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 41

Ray LaHood Softens Stance on 56 mpg Fuel Standard for 2025

Transportation Secretary Ray LaHood took a more flexible stance to the aggressive 56 miles-per-gallon fuel economy standard for 2025 that has sparked resistance among legislators, especially in Michigan. The Obama administration told automakers and congressional leaders last week it was considering a 56.2 m.p.g. average by 2025. Currently, the industry is working to meet an average of 35.5 m.p.g. by 2016. LaHood, who spoke at General Motors’ Flint assembly plant June 29, tried to ease industry concerns.

“We’re going to talk to our friends in the industry,” LaHood said.

“We’re going to make sure we get it right for them and for what we believe is in the best interest of the country.”

Industry leaders argue that requiring an average as high as 56 mpg. will add at least $2,000 to the price of an average new vehicle and could force automakers to limit or stop production of certain larger models. But Sen. Carl Levin, D-Detroit, has challenged the White House to explain how it came up with the 56.2 mpg. standard.

Michigan Expects Bright Future for Electric Vehicles in State

Michigan has a promising future in electric car and battery production, with an estimated 20% of lithium-ion batteries coming from this state in the future. Electric cars are expected to be a $14-billion industry by 2014, with electrified-vehicle capacity jumping from 100,000 to 1.7 million by 2015. Projections for growth in EV battery companies in Michigan, especially if the industry must move toward a proposed 56mpg fleet average by 2025, are product shipping related because “these are 500-pound products, not the sort of thing you want to ship all over the world,” said David Vieau, President and CEO of battery maker A123 Systems. He decided to expand to Michigan because of state and local government cooperation, economic support and the region’s talent pool. He said electric cars give the U.S. a huge opportunity to reduce its reliance on foreign oil and keep billions of dollars here. “We have the opportunity to convert that foreign oil money into U.S. jobs,” Vieau said, adding that switching to this new kind of car “is going to take 20 years. We need a commitment that we’re going to get it done.”

U.S. Demand No Longer the Single-Largest Driver of Oil Prices, Consumption in China and India Expected to Push Prices Higher Despite a significant reduction in the miles Americans are driving, fuel prices have not responded in traditional seasonal variations and are, if anything, continuing to rise after a brief unseasonal dip.

The Benchmark price of West Texas Intermediate Crude jumped more than 2% on July 19, climbing $2.28 a barrel, to $97.43. In Europe, closely-watched Ice Brent Crude did slip slightly in early Wednesday trading, but had still climbed to $117.36 a barrel.

Many economists had expected the oil price numbers to keep falling, as they did leading up to the beginning of the month, reflecting worsening economic news around the world— which theoretically translates into reduced demand. In previous similar situations, prices almost always slump on word that U.S. motorists cut back on driving—now for the fourth month in a row.

However, a study by MasterCard found that even over the Independence Day weekend, normally among the most heavily travelled holidays of the year, demand for gasoline fell 1.7%.

For the previous four weeks, the Mas-

terCard Spending Pulse survey showed consumption down 1.1%.

There had been some signs of a last-minute surge as fuel prices briefly declined in June, but American drivers appear to be adjusting their behindthe-wheel habits, whether car-pooling more, staying home, or better planning their errands.

The problem for U.S. drivers is that American demand, while still major, is no longer the single-largest driver of oil trading, as India and China, in particular, keep raising their consumption rates.

OPEC this week warned that while demand is down a bit, it will still hit record levels in 2011, even though, “the unsteady global economy has added risks to the forecast.” The group predicts demand will reach an all-time high of 88.18 million barrels this year.

The U.S. Energy Information Administration anticipates the figure will climb 1.6% this year to 88.16 million barrels. In traditional times, considering weak economic conditions, oil would likely be trading at closer to $67. But few expect to see the sort of wholesale collapse in prices that occurred in 2008.

Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. Use of genuine OEM Wholesale Parts is a shift in the right direction toward trouble-free repairs and quicker turnaround.

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800-243-5575 (909) 625-4087 Fax Ask for Rita or Steve Large inventory available

42 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

BAKERSFIELD

888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5

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LITHIA NISSAN FRESNO

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Etaylor@lithia.com www.lithia.com

SHINGLE SPRINGS NISSAN

SHINGLE SPRINGS

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(530) 677-6528 Fax www.shinglespringsnissan.com

Chrysler is Free and Clear After Paying Back Federal Loans

After almost two years with the federal government owning a sizable chunk of Chrysler, the once bankrupt automaker is now free and clear of Uncle Sam. June 2 Chrysler parent Fiat paid $500 million for the U.S. Treasury Department’s 6% stake in Chrysler.

For CEO Sergio Marchionne, no longer having Uncle Sam as a shareholder frees up the company to do more in the capital markets. He has made it clear Chrysler’s access to the capital markets means the company will be able to do more on a quicker time frame, and do it more efficiently.

While Marchionne won’t give a timetable for a Chrysler IPO, it’s definitely on the way. Also on the way in the next 18 months are more fuel efficient cars. Chrysler still skews more towards trucks and SUV’s than its competitors and with gas prices expected to remain high, that is a head wind Marchionne needs to minimize as much as possible.

But most of all, look for Marchionne to give Chrysler the freedom to do what it does best: design and build models with that turn heads and make people want to buy them.

Crashes Increase in New York State’s Roundabouts Although roundabouts are built to ease congestion and lessen serious injuries, data obtained by the Albany Times Union show the number of collisions increased after most of the roundabouts opened in New York State’s Capital Region, according to Insurance Journal.

Crashes increased at 15 of the 20 roundabouts built where a previous intersection existed, with fender benders even more likely to rise, sometimes dramatically, at two-lane rotaries. And

SO. CALIFORNIA

Subaru of Glendale Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net

Sierra Subaru of Monrovia Monrovia (626) 359-8291 (626) 932-5660 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@sierracars.com www.sierraauto.com

Timmons Subaru

The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today!

Galpin Subaru

SO. CALIFORNIA

Van Nuys (818) 778-2005 (818) 778-2090 Fax www.galpin.com

Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts

Long Beach (888) 489-5001 (562) 426-3550 Fax Tue. 7-8; Mon., Wed.-Fri. 7-6; Sat. 8-4, Sat. No Delivery Parts@timmonslongbeach.com www.timmonssubaru.com

Marin Subaru

San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net

while crashes were reduced at all the single-lane roundabouts built by the state, they rose at almost all those built by counties and towns.

Aggressive drivers speeding through rotaries and failing to yield the right of way are the cause of most accidents occuring in roundabouts, said Mark Kennedy, director of traffic and safety for the state Department of Transportation in the Capital Region.

“We have found that single-lane See NY Roundabouts, Page 50

NO. CALIFORNIA

Shingle Springs Subaru Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com

Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

ARIZONA

Anderson Subaru Lake Havasu City (928) 764-5177 (928) 764-2574 Fax Mon.-Fri. 7:30-5:30; Sat. 8-2 www.andersondeals.com www.andersondealssubaru.com

Power Subaru

Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 43

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.

Shop Showcase

Edward J. Henry & Sons, Auto Body Specialists and Body Generalists with Chasidy Rae Sisk

Jet skis, buses, and construction equipment, oh my! While many auto body shops boast that they can do anything, Edward J. Henry & Sons Auto Body Specialists in Wilmington, DE, stands behind their ability to repair any type of vehicle, and even some non-vehicles.

Owners Edward J. Henry III and Cathy Henry May

Besides offering collision repair on all foreign cars and trucks, including classics, the shop has done body work on snowmobiles, jet skis, buses, construction equipment, tractors and

even an antique stroller that was damaged when hit by a car.

On average, Henry Auto Body works on five cars, or other vehicles, per day. Additionally, they install alarm systems and offer paintless dent repair, as well as other specialty work. They provide storage both inside and outside, depending on the customer’s needs and the length of time they will be storing the vehicle.

Customers can also turn to Henry Auto Body for their towing needs and even lawn furniture refinishing.

Edward J. Henry & Sons Auto Body Specialists has been in business since 1943, boasting sixty-eight years of experience through three generations of the Henry family. In 1938, founder, Edward J. Henry Sr., opened a shop on nearby Walnut street with his brother, but when that shop did not survive, Edward rented a small stall in the shop’s current location, a

dairy farm at the time. He expanded his business over the years, passing the shop down to his son who turned the business over to his son, Edward Jr. Twenty-five years ago, Edward Jr.’s son and two daughters bought their father out, and they now run the shop, along with one of Edward Jr.’s son-in-laws.

What began as one stall rented from a dairy farm has now expanded into several large buildings which total 22,000 square feet and encompass 1.5 acre, an impressive amount

of space in the bustling city of Wilmington. Edward J. Henry & Sons Auto Body has 17 employees, all except one of whom are I-Car Platinum certified. They also participate in a co-op program with local high schools, and there are 2 co-op students currently working at the shop. The shop is ASE certified and currently awaiting their last employee to obtain the I-Car Gold Platinum certification in order for the shop to achieve I-Car Gold status.

Edward J. Henry & Sons Auto Body is careful to meet and surpass all insurance requirements, and they participate in four direct repair programs.

The shop utilizes a Mitchell estimating system, a Chief EZ Liner, and standard lifts and MIG welders. They use a CWN paint booth, and the shop paints with Sherwin-Williams Waterborne AWX paints which meet Delaware’s VOC content requirements. For example, Delaware re-

See these Hyundai dealers below for all your collision parts needs!

ARIZONA

SO. CALIFORNIA

NO. CALIFORNIA

Chapman Hyundai

Tuttle Click Hyundai

San Leandro Hyundai

PHOENIX

IRVINE

SAN LEANDRO

800-428-7485 949-472-7430

510-347-3010

877-684-5803 602-866-6166 602-866-6196 Fax Mon-Fri 7am - 6pm Sat 8am - 3pm rockygray@chapmanchoice.com Hyundai Sonata 2011

949-586-5104 Fax 949-586-7093 Fax

Lithia Hyundai

Mon-Fri 7am - 7pm Sat 8am - 5pm snielsen@tuttleclick.net www.tuttleclick.com

800-462-2231 559-436-6041

Rally Hyundai

Mon-Fri 7am - 6pm Sat 8am - 1pm etaylor@lithia.com

SO. CALIFORNIA

Drew Hyundai S AN DIE GO

888-839-0777

QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.

619-668-7782 Direct 619-460-4082 Fax importorder@drewauto.com www.drewhyundai.com

PALMDALE

800-585-0551

FRESNO

559-436-0743 Fax

661-266-1881 Fax Mon-Fri 8am - 6pm Sat 8am - 4pm hyundaiparts@4rally.com www.4rally.com

NEVADA

Henderson Hyundai Superstore L AS VEGAS - METRO AREA

Kearny Mesa Hyundai

702-565-9643

SAN DIEGO

702-564-7756 Fax

800-469-9731 858-300-3331 Fax Mon-Fri 7am - 6pm Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com 44 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

510-895-1027 Fax

Mon-Fri 7am - 6pm Sat 7am - 4pm parts@hendersonhyundai.com www.hendersonhyundai.com

quires primer to be contain no more than 2.1 lbs/gal, clearcoats to contain no more than 2.1 lbs/gal, and basecoats must contain no more than 3.5 lbs/gal. According to environmental data sheets, Sherwin-Williams’ primer contains 0.51 lb/gal, their clearcoat contains 0.63 lb/gal, and the basecoat lists at 0.88 lb/gal.

Besides using waterborne paint, the shop also shows concern for the environment by recycling approximately 95% of their productionwaste even though it costs small businesses in Delaware to do so. Owner Edward J. Henry III states it is worth the cost because they produce a lot of waste, as do virtually all shops. The shop provided funding for a student at the Salesianum School, a private, all-boys Catholic school, from 1972 until 2010, but they were unable to do so in

2011 due to economical pressures.

Edward J. Henry & Sons Auto Body continues to be a family-oriented shop. According to Edward J. Henry III, they are “still a mom and

pop corner store.” To ensure quality, Ed personally inspects all repaired vehicles before they are returned to the owners. He is proud that the shop now serves fourth-generation customers as this demonstrates his customers’ satisfaction and the fact that he has maintained the same shop values as his father and grandfather exhibited before him.

Edward J. Henry and Sons Auto Body Specialists 2300 West 4th Street Wilmington, DE 19805 (302) 658-4324

Honda Accord, Buick Enclave, Chevy Traverse get 5 stars The Honda Accord, Buick Enclave and Chevrolet Traverse became the latest vehicles to get a five-star overall crash rating, under new stricter government tests. The National Highway Traffic Safety Administration issued its revised, tougher fivestar crash ratings, releasing 34 vehicle ratings. NHTSA is posting additional ratings as they complete testing of 2011 model vehicles on its safercar.gov website.

The Accord got five stars in three tests: side, frontal and rollover.

The Buick Enclave and Chevrolet Traverse got five stars for side impact—and four stars on frontal and rollover—but still got the five-star highest rating overall. Two of the first 34 vehicles got five stars—the BMW 5 Series and Hyundai Sonata—and the Hyundai only reached that pinnacle after it was modified and retested.

Of the first batch tested, 29—including the Ford Fiesta and Taurus, Jeep Grand Cherokee, Cadillac Escalade, Audi A4, Infiniti M37 and M56, Kia Sorento, Toyota Sienna, Honda Pilot and Chevrolet Malibu— got four stars in the overall score that takes into account frontal, side and rollover crash test ratings.

The new ratings won’t appear on ve-

hicle window stickers until the 2012 model year.

Under the old frontal tests, more than 95 percent of vehicles got four or five stars; that figure fell to 83 percent after the first batch of new tests.

Grades dropped in several or all tests for many older models.

The Toyota Camry, the best-selling car in the United States since 2002, got three stars, as did the Camry hybrid.

The Buick Lucerne also got a three-star overall rating—after it got two stars on side impact—and five stars on both rollover and frontal crash tests.

The Buick got one star on the side impact for the driver and two stars for the passenger.

GM spokesman Alan Adler noted that the tests have gotten more difficult—and the vehicle hasn’t changed. The Lucerne, which is in its last year of production, got four stars on side impact last year.

“You’ve got new numbers. but the Lucerne didn’t change—just the ratings,” Adler said.

The compact Nissan Versa received two stars, after getting a low score on the new tougher side-crash tests.

THESE DEALERS ARE GENUINE WHOLESALE PARTS SPECIALISTS. C ALIFORNIA

Elk Grove Toyota ELK GROVE

916-405-4700 800-952-5307

916-405-8045 Fax

Mon. - Fri. 7am - 7pm; Sat. 8am - 5pm www.elkgrovetoyota.com

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 45

Shop Showcase

Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.

with Erica Schroeder

Carl Owen’s Paint and Body in Tyler, TX, Offers Top Rated Auto, RV and Truck Repair Owens Jr. currently oversees all manCarl Owen’s Paint and Body in Tyler, TX, is a family run business that has agement operations at both shops. grown into a business with two area “This business was started in shops; one specializing in auto body 1965 by Carl Owens Sr. and it was work and one inwith RV andJohn truck work.

Yoswickpassed down to Carl Jr. in 1981 who still runs the business today,” said Andy Wood, Manager of Carl Owens RV and Truck Collision Center.

The truck shop is a 9 acre facility and employs about 40 people. The auto shop is a 2 acre facility and employs about 20 people. Between both with Ed Attanasio shops the business sees around 120 cars and various trucks per month and is able to pull in $600,000 gross per RV and Truck Collision Center Manager Andy Wood month.

Carl Owens Paint and Body has “We’re the biggest shop within been a family-run business for over 40 about a 100 mile radius, from Dallas years; Carl Owens the to Shreveport,” said Wood. Between withSr.Edopened Attanasio Erwin Street shop in 1965 and had all both locations Carl Owen’s is able to operations running out of one shop for service all sorts of different vehicles. decades. Carl Owens Jr. took over According to Wood both shops management in 1981 and was able to are outfitted with the latest state of the open a second location dedicated to art equipment. The truck shop has just auto repair about 5 years ago. Carl some custom equipment pieces most

Industry Insight

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body shops would not normally see because Carl Owen’s deal with trucks, trailers, RVs and field equipment.

Both shops use a laser alignment machine and 2 downdraft spray booths.

The truck shop is outfitted with a 50 ton car grabber frame machine and a 35 foot, 60 foot and 65 foot truck booth. The truck equipment enables technicians to repair vehicles that most shops would be unable to work Auto Collision Center Manager with. This ranges Johnny Nipper from big rigs to trailers to tractor equipment used by area farmers.

Both shops are using PPG paints for their auto and truck painting needs.

The auto shop is using PPG Deltron DBC acrylic paints and the truck shop is using PPG Dell Fleet paints.

Both Carl Owens shops also offers a lifetime warranty on any of the work done at either shop. This warranty covers anything that may happen as a result of the shops work and includes any body or mechanical repair work.

Technicians at both shops are also I-CAR Certified. The business offers free estimates and rental cars in order to better serve Carl Owens’ customers every need when having their car repaired at either facility.

More information can be found at www.carlowenspaint.com.

Carl Owens Auto Collision Center 10145 Hwy. 64 East Tyler, Texas 75707 (903)566-5300

Carl Owens RV and Truck Collision Center 2415 E. Erwin Tyler, Texas 75702 (903)597-2628

Want every job to be a bang-up job?

These dealers are Genuine VW Parts Wholesale Specialists.

So. California City Volkswagen SAN DIEGO

800-927-2277

FAX: 619-276-2414 M-F 7:30am - 6pm; Sat 8am - 5pm

WE WANT TO BE YOUR SOURCE FOR REAL VOLKSWAGEN PARTS. We have the Real Volkswagen Collision Parts that make your job easier and your customers happier. With your skill and our parts, every collision repair will be a bang-up job. And that will add up to more repeat business for both of us.

Call your order in today.

46 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

www.cityvolkswagen.com

Drew VW

S AN DIEGO

888-839-0777

DIRECT: 619-668-7782 FAX: 619-460-4082 importorder@drewauto.com www.drewvolkswagen.com

Timmons Volkswagen LONG BEACH

1-888-489-5001

FAX: 562-426-3550 parts@timmonslongbeach.com

No. California Dirito Bros. Walnut Creek Volkswagen WALNUT C REEK

1-800-VOLKSWAGEN FAX: 925-934-0786 diritovw@aol.com

Volkswagen of Downtown LA LOS ANGELES

213-747-7246

FAX: 213-222-1272 Ask for Carlos or Erasmo

NSF International Launches New Aftermarket Parts Distributor Certification Program NSF International has launched a new program to certify distributors who sell automotive aftermarket collision parts at the Collision Industry Conference annual meeting this July. The new NSF Automotive Aftermarket Collision Parts Distributor Certification Program is designed to close the gap in the supply chain between part manufacturers and body shops.

The Automotive Body Parts Association (ABPA) sponsored and worked closely with NSF to develop the new program to meet critical supply chain requirements, including parts traceability. The program meets the needs of collision repair shops, insurers and ultimately consumers, as it requires distributors to have quality management systems in place that address traceability, service and quality issues with regard to both certified and non-certified parts.

NSF certified distributors will be required to have records systems and inventory tracking systems in place that can track customer defective part complaints, trace a part to a body shop and trace a part sale. This gives the in-

dustry the ability to track all defective part complaints and trace parts from the manufacturer through the distribution channel to the body shop.

“For many years the collision industry has asked for an effective system to track and recall, if necessary, any defective safety parts. The new NSF Distributor Certification Program accomplishes that goal. The NSF program provides collision repairers and their customers’ peace of mind that certified distributors are focused on delivering quality parts and service,” said ABPA Board Chairman Dan Morrissey.

Requirements for distributors to earn NSF certification include: ● an ISO 9001 certified quality management system, ● a part traceability and inventory tracking system, ● a defective parts procedure including a customer part complaint process, and ● the ability to administer a manufacturer’s recall.

Distributors meeting the certification requirements will be able to use

the NSF Certified Distributor Mark on their website and promotional materials indicating they are an NSF certified distributor. Certified distributors also will be included in NSF’s online certification listings. All NSF certified distributors will undergo ongoing quality systems inspections to maintain certification.

“The NSF Automotive Aftermarket Collision Parts Distributor Certification Program certifies a distributor’s ability to meet rigid performance standards and was developed in support of NSF’s mission to create programs that help protect and improve public health and safety,” said Bob Frayer, Director of NSF International’s Automotive Aftermarket Certification Programs and the NSF Engineering Laboratories.

The NSF Distributor Certification program complements the NSF Automotive Aftermarket Parts Certification Program, which certifies that automotive aftermarket parts (e.g. steel bumpers, step bumpers, brackets, rebars, sheet metal, lighting and absorbers) meet rigid quality, safety and

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In addition to NSF’s headquarters and laboratories in Ann Arbor, Mich., NSF has offices in key automotive markets such as Taiwan and China, a new testing laboratory in Shanghai, and serves more than 6,000 organizations worldwide. NSF International is accredited by the American National Standards Institute (ANSI), the official U.S. representative to the International Standardization Organization (ISO).

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www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 47

Toby Chess is an I-CAR program instructor, Welding specialist, and former salvage yard operator. Toby is universally known in the collision industry for his charitable works, worthy causes, and magic tricks. He can be reached at tcspeedster@yahoo.com

Hey Toby! with Toby Chess

Are Your Repair Methods Ten Years Out of Date?

The other day I received a report form new challenges for the repair shops. was involved in a follow-up crash simThe pyrotechnic protection/restraint Aaron Schulenberg, the Executive Repair shops must ensure they have ulation in the same configuration i.e., systems (Front and rear passenger side Director of the Society of Collision well trained staff and are equipped airbags, front passenger belt pre-tena side impact on the repaired passenRepair Specialists, about a study done with appropriate tools to cope with the sioner and passenger side curtain ger side, at the same speed. in Germany on collision repairs. techniques needed for professional reThe picture below shows the set airbag) were correctly deployed. Overpairs on today’s cars when they are up of the side impact test. all the car body structure deformed and Crash-test results and analysis of the damaged in an accident. If such techbehaved as expected. As well as the viimpact of a non-professional repair on niques and knowledge are not availsual analysis, electronic measurement the performancewith of the David side structure McClune of the car body was carried out. This of a car (VW Passat) by KTI GmbH& able, a nonprofessional repair may lead to a significant reduction in the safety showed the maximum intrusion to be Co. of Lohfelden, Germany.

The study took a late model VW and quality of these cars.”

161 mm.”

Passat, with ultra high strength steel re“Unprofessional repairs may reThe vehicle was repaired after the inforcements in the rocker and “B” pilsult from of all or any of the following: test and these were the procedures follar, conducted a side impact at about ● Incorrect method and/or sequence of lowed:” 30mph, detailed all the damage, and repair rebuilt the vehicle using used parts, ● Poor assembly of correct/incorrect NON-PROFESSIONAL REPAIR MIG welds, and an older Squeeze spare parts, components and sub-sys“After the side impact the car was The damaged car was repaired with an Type Resistance Welder. They did not tems severely damaged on the passenger older spot welding machine with fixed use any OEM with currentJohn replacement ● Fitment of low-quality spare parts, side, as intended.

The sill and the pressure and 6.4 kA maximum current.

Yoswick data, but they utilized common accomponents and sub-systems floor/undercarriage behind it were parNote: It is recommended that an cepted repair methods used in the col● Incorrect assembly and connection ticularly distorted. Additionally, the Inverter type welding machine is used lision industry. They referred to those of electrical/electronic systems and doors and the B-pillar were considerwith 10 kA maximum current and a in the article as “10-year old repair sub-systems ably damaged. There was no damage variable pressure (maximum 10 bar) to methods.” ● Absence of correct, special or custo the screen pillar or windscreen glass. join the high strength steel safely. The What was written in the introduction tom tools of the study is what I and others have ● Repair of damaged parts when actual been preaching for years. replacement is necessary.”

“The new materials mean that Let’s take a look at the study. I Audi Genuine Parts body shops must continuously ensure going to give you a condensed version that they are conversant with the refor this article, but you may read the with Richard Steffen quirements for new tools, procedures entire study at the SCRS website and information about the repair (www.scrs.com) or at autoboNothing else measures up. processes. New welding machines dynews.com (see my column section). need to be used, training is required, The following scenario, including and OEM information has to be actwo high-speed crash testsopinion was carried Give us your on matters affecting the industry.

Want to Contribute t cessed to make sure that the correct reout, and then analyzed: pair methods will be applied. Without 1. The car was damaged by a side www.autobodynews.com this knowledge it is likely that an inadimpact similar to an intrusion by the publisher@a CHECK IT OUT! equate repair will be the result, potenfront of another car intopublisher@autobodynews.com the passenger tially placing the car and its occupants side of the test vehicle, according to the at much higher risk in a later crash.” side-impact tests of Euro NCAP. John Yoswick Promote your busine “In parallelwith to the introduction of 2. A repair was carried out as if new materials, single component parts done in a car body shop or garage with an exclusive article f of earlier vehicles have been replaced no information about the correct way your products or se To advertise To advertise The source timely by highly integrated, multi-material to repair this particular car andfor without call Advertising Sales at: call Joe Momber at: components on more recently designed the correct tools or welding machines. information that every Order Audi Genuine Parts from these select Dealers 800-699-8251 800-699-8251 cars. The production of a modern The repair conforms a typical stanbodytoshop needs! e-mail: Body-in-White e-mail: is characterized by dard carried out about 10 years (two CALL: Joe Momber fo So. California advertising@autobodynews.com jmomber@autobodynews.com CALLago.

800-699-8251 complex manufacturing processes and car generations) This would be www.autobodynews.com www.autobodynews.com bonding techniques. Taken together, considered as Start a non-professional repair 800-699-82 Your FREE Audi of Circle Audi the technical progress made by the by today’s standards.

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with David M. Brown

deformed inner sill, made from ultra high strength steel, was re-shaped and partially replaced on a bench then refitted using a MAG welding process.

Note: The “Professional” repair would include complete renewal of the B-Pillar and other deformed structures with components made from high

MIG Welding instead of Spot welding

Sectioning instead of full panel replacement

strength steel. A partial repair of such steels is not acceptable, as the structure and therefore the strength of the material will be severely degraded while welding and reforming.”

“After the vehicle was repaired, the vehicle was crashed again and all the noted areas in the first crash were compared with the second crash.

It was immediately evident that there was a substantial difference, with far more comprehensive deformation of the car body after the second impact.

The B-pillar had noticeably higher intrusion into the passenger compartment in comparison with the first crash, especially at the lower part at the connection with the sill. Note: Later measurements of the car body confirmed there was 60mm more intrusion after the second test, compared to the first crash. Other differences were noticeable at the cant rail/roof and the transmission tunnel which both displayed severe deformation not seen in the first crash. It seems that the load paths were quite different in the second crash. It was also noted that the top right corner of the windscreen was damaged in the second crash, further indication of changed load paths.

These comparisons made it evident that a change of load paths and therefore of the energy dissipation was due to the unprofessional repair. The pyrotechnic protection/restraint systems (Front and rear passenger side airbags and the front passenger belt pre-tensioner) were correctly deployed but the passenger side curtain airbag failed to operate.”

Crash Test 2

To make clear the differences between the two tests, we compared photographs, sequences of high speed crash-movies and electronic measurement of the car body. With the help of the time analysis in the high-speed crash-movies we can for instance compare the time of highest intrusion. The analysis clearly shows higher intrusion at the same moment in time in the second crash test.

Note that the side curtain deployed in the first crash test, but failed in the second one. I have video showing the effectiveness of side curtains on vehicle occupant safety. In the first 2009 Prius, the side curtain was deployed and measurements of the crash dummies were taken. The result was minor injury to the front and rear passengers. In the second scenario, the side curtains was disabled and another side crash test was conducted at 35 mph. The result was horrific. The driver’s head was struck by the crashing barrier, which would result in a death.

The rear dummy sustained major injuries to the neck, shoulder and left arm. This is the reason that by the year 2013, all vehicles sold in the US will have side curtain air bags.

Crash Test 1

Crash Test 1

Crash Test 2

Crash Test 2

Crash Test 1

Note the great amount of damage to the rocker and B-pillar in the second crash test. This is very evident by the next set of pictures showing the damage to the passenger seat in the second crash test.

“After removing all the seats and necessary trim, the deformation of the transmission tunnel after the second test was clear to see. The cross-member which supported the front seat had

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 49

pushed into the transmission tunnel, distorting it severely. In comparison, there were no measurable changes at the transmission tunnel during the first attempt.”

As I stated in the beginning of the article, the complete test results can be found at the web sites. I strongly urge you (repair owners and managers) to print out the OEM’s recommended repair procedures and give them to your techs and estimators. The liability is too high not to follow OEM procedures. Think about the safety of your customers and what it may mean in a second collision.

Crash Test 1

Crash Test 2 Continued from Page 43

NY Roundabouts

roundabouts definitely reduce accidents,” he said, referring to the state rotaries. “With multi-lane roundabouts, some are better, some are worse. There are two that are somewhat problematic.”

In Malta, the roundabout at Route 9, Route 67 and Dunning Street went from an average of 7.8 crashes a year before the rotary to 45.7 a year afterward. In Bethlehem, the number of accidents at New Scotland Road and Route 140 jumped from an average of 9.6 a year to 38.3.

Two years ago, the state changed the signs and pavement markings at the Malta roundabout to help lessen the number of accidents.

“Those measures were not effective,” Kennedy said.

Accidents in roundabouts tend to be less severe than at intersections with traffic lights. Rather than crash into each other head on or smack together in a T-bone crash, as drivers making lefts at conventional traffic lights often do, drivers in roundabouts tend to sideswipe and rear-end each other.

“The potential for high-speed, severe accidents is eliminated,” Kennedy said.

At the Malta Diner, owner Steve Gouvis has a close-up view to the Capital Region’s most treacherous roundabout. He said it has greatly lessened congestion but he is not surprised to hear crashes have risen.

“You hear a lot of honking during the course of the day,” he said.

www.autobodynews.com “They control traffic effectively. You never have to wait more than five, six, seven seconds. They do work. I was a big skeptic.”

But Gouvis said drivers appear not to always know the driver already in the roundabout has the right of way over those entering.

“Most of them are minor accidents from people not accustomed to handling roundabouts,” he said. “It’s a hell of a lot safer than making left turns.”

At the Bethlehem roundabout, town resident Andrew Wickert said he became one of the accident statistics after the rotary opened. About a year ago, he rear-ended the car in front of him when he turned to look at traffic coming up alongside him and didn’t realize the person in front of him had stopped.

“What I’ve learned is to stay in the far lane,” Wickert said. “Even though I am a statistic, I am for it just because it keeps the traffic moving.

Before, it was worse with the stoplights.”

This summer, both the Malta and Bethlehem roundabouts will get additional signs telling drivers to “Yield to All Lanes in the Circle.” Markings that narrow as drivers approach the roundabouts will be added to the pavement to give drivers the impression their speed is increasing and they need to slow down.

In Bethlehem, the previous intersection was changed from one lane in each direction to two to reduce congestion. The result, however, has been that drivers enter the roundabout going too fast, Kennedy said.

50 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

CHECK IT OUT! Variable message boards warning drivers of their speed will be placed there this summer to get motorists to slow down, he said.

“We’ve learned quite a lot about the design and operation of roundTothe advertise abouts” over past five years, said call Boni, Advertising James assistantSales to theat:state

800-699-8251 See NY Roundabouts, Page 55

VW sales up 35% in U.S. Could top 300,000 this year

Sales for the first six months of 2011 are up 22% in the U.S and Volkswagen of America forecasts 2011 sales will break 300,000 units—a threshold not seen since 2003. VW sold 256,830 vehicles last year in the U.S. In 2003, VW sold 302,686 units.

“We’ve been able achieve a volume in the first half of this year in what took us effectively seven months last year,” Jonathan Browning, CEO of Volkswagen of America, said in a statement. “With Volkswagen’s broad range of fuel-efficient, high-quality vehicles, we expect the momentum to continue into the second-half of the year.”

Volkswagen said itopinion sold 28,444on ve- mat Give us your hicles in June 2011, a 35 percent increase over June 2010. Sales through June were 154,152, compared with 126,012 a year earlier. Browning said June was VW’s bestpublisher@autob month in nine years, despite the run-out of the Passat sedan and the Beetle compact car. June sales were led by the redesigned Jetta, which was up 88 percent in June and 66 percent for the first six months. Browning estimated that shortages at Japanese competitors because of the March 11 The source Japan earthquake will givefor VWtimely about 10,000 additional Jetta salesthat in 2011. information every

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Custom Corner

Rich Evans is the owner of Huntington Beach Bodyworks and an award winning painter and fabricator. He offers workshops in repair and customization at his facility to share his unique talents. For contacts and design samples visit www.huntingtonbeachbodyworks.com

Lesson Learned—Re-Painting a ‘57 Thunderbird with Rich Evans

is why I made decisions to do it one way and not another and why they came back to bite me: 1) costing me my labor and 2) material, and 3) an inconvenience for the customer. All of the above are red flags for future repairs.

Going back to this ‘57 Thunderwith Thomas Franklin bird, I took the hood, we stripped it down around the edges just so I could get the gapping right. I made a decision not to take the paint all the way off because 1) I didn’t want to find more body work and 2) I didn’t want to warp the hood and cause a need for more body work.

What I did was grind and remove about 12 inches of paint on the front where I did the repair and then I took Techniques, which you can easily find about 3 inches all the way around the in my column section at autobodynews.com) about it, but whatStrom I want hood just to get the build up of the with Dick to talk about this month is making paint. I thought I would come in, choices and taking the extra time to Bondo™ around it, true it up right up take it all the way back. What I mean to the paint where I’m not really caus-

This month I’m working on a project that I call re-do, nobody likes to do redos. About 6 to 8 months ago I did a ‘57 Thunderbird and I repaired the front end. I wrote a story for Autobody News (April 2010, Working On a ‘57 Thunderbird With Old School Tools &

ing myself any more work and I’m just blending the Bondo™ into the paint thickness, which wasn’t too bad.

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So, as I got the Bondo™ to meet up to the paint, the additional paint that I left on the hood—which is a laquer—was kind of gummy. That was another reason why I didn’t want to strip it down.

I was planning to come in with some PCL Primer, which I did, and loaded it up because that pretty much hardens itself and it’s been pretty much bullet-proof since I’ve been using it. Taking it to that point, we blocked the hood, got it painted, put it on the car and sent the car off.

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The customer came back about 3 weeks later pointing out it had some wrinkling around the edges and I was like, “man that’s really close to where the Bondo™ meets the paint.” So I brought the car back in and sanded down the wrinkled area. I didn’t really break the clear coat, so it seemed like I was able to get it out. Then I went back and re-cleared it, put some more product on it, finished it, put it back on the car and sent the car off.

Then about 2 months later the customer comes driving back, and he pulled in my driveway and I was like “wow.” I mean this car had bubbled and it was bubbling right in the area where the Bondo™ meets the paint.

So I was like “wow, what’s going on here?” And I saw it kind of bubbling

around the scoop area as well so I took a putty knife and dug into it and it was lifting from the bottom of the hood. I could get my putty knife completely underneath the paint and pull it off in sheets.

So I studied the area to see what was going on and what I realized was that the PCL primer sealed the paint and the Bondo™ area. It was only coming up where the painted area was and that tells me that gasses were trapped in there. As the motor would heat up, it would reactivate the paint.

So whatever kind of paint they used in etching primer, which looked more like a laquer, was the problem. When it heats up, everything starts to move again and that paint doesn’t fully dry.

When I was grinding into it it was kind of gummy, and it looked like the paint was 15 or 20 years old.

What I did to fix this problem was to grind all the paint that I didn’t remove the first time, (which obviously I should have done in the first place.) If I had I never would have had

this problem, but then again, I am still learning. Sometimes it’s not good to work over old paint that’s way out dated and that could have a chemical reaction that causes more labor, costs more time, uses more product, not to mention creating an inconvenience for the customer. Hey, let’s do it right the first time.

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 51

After removing all the paint on the hood I was able to reverse the process I did the first time and come back and block where I had the Bondo™, 36 grit, and feather it into the metal so I didn’t have a step-up in

the Bondo™. I actually removed more material, did a better finish, and I came back in with some PCL Primer, which is the 901Grey. I applied three heavy coats. Then I came back and blocked it with 80 grit—guide coated it first, then blocked it with 80 grit, then I guide coated it again and blocked it with the 150 grit, and guide coat it yet again and block it with 400 grit.

Now I was ready for my base color, which is black, so I’m going to put three coats of black, which I always do. Then I’m going to come over the top of it with a top coat of Transtar—three total coats of Transtar on it.

After doing this for my third time, the third time is the charm, I can almost guarantee that this customer

will never have to come back again. I don’t really practice having come

backs, I always practice on what works and what doesn’t work and obviously the choice that I made in this project didn’t work just because I was trying to avoid some obstacles. What I realized is that it caused me more obstacles by avoiding those original obstacles.

If you’re working on a panel, and it’s in a heated engine compartment area, and you’re not sure about how old the paint is and whether or not it’s laquer, remove it all! It’s best to start with a bare foundation than to be working on top of somebody else’s work. If you do that you’re taking a chance on having a problem like the one I ran into which then ends up costing you money in the long run. Time is money, we all know that.

I haven’t had this type of reaction come up before (I don’t think ever) since I’ve been using the PCL. With other primers I’ve had reactions but with using the PCL I don’t think I’ve ever had a reaction so I’m attributing the cause of all of this to the old paint, and really a combination of the heat and the old paint, because I did feather up against some old paint on the right fender and I didn’t have a chemical reaction like this. So, between the heat, the old paint, the chemical reaction, and the PCL Primer sealing it and holding it in where it can’t breathe is where we had the lifting problems. So,

S.C. Pre-files Legislation Reflecting NCOIL Model Parts Act

South Carolina state Sen. David Thomas, R-Seneca, pre-filed legislation mirroring that of the National Conference of Insurance Legislators’ (NCOIL) Model Act Regarding Motor Vehicle Crash Parts and Repair.

The Automotive Service Association (ASA) opposes the Model Act. An amendment to the NCOIL Model Act that equated certified aftermarket crash parts with original equipment manufacturer parts (OEM) failed when considered before the NCOIL Property-Casualty Insurance Committee at its annual

meeting in Austin, Texas.

ASA raised concerns with sections of the proposed act at the NCOIL spring and summer meetings, and at the organization’s annual meeting in November.

NCOIL’s Property-Casualty Insurance Committee delayed a final decision at each of these meetings.

ASA encourages independent repairers to go to the ASA legislative website, www.TakingTheHill.com, to review the South Carolina legislation.

Previous ASA testimony submitted to NCOIL and other NCOIL-related items can also be viewed on the website.

52 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

another tip for what to do and what not to do and hopefully you guys will be able to put this notch under your belt without having to spend the time or the money that I had to spend on redoing this. I wanted to share it with you because some of the best of us come across these issues and they come back to bite you. I definitely got bit on this one. Three times is the charm as they say, but now, out of mind out of sight. Car looks good, customer’s happy, job’s done right.

Still, in my mind I did the job right the first time, but old product came back to bite me,

Lesson learned. Don’t work over old product, strip it down to the bare metal. That’s key, strip it down to the bare metal and start with a

clean foundation. That will save you a lot, especially if you’re not using the best primer. PCL Primer is definitely key to saving me a lot of rework. Great product out there.

Thanks to 3M for all the product and support they give me with the sandpapers, all the materials, and all the other companies out there that help me do what I do—we can’t build cars without you.

I’ve got some great stories coming up for next month, I’m going to talk about installing panels without welding, which seems to be a pretty innovative technology to get past that welding point. It’s what’s coming up in the future versus what’s being used now, so you have to make these changes as you’re growing and improving. I’ll talk to you next month, I’ll have some new, cool projects I’m working on.

Visit me at richevansdesigns.com or go to my Rich Evans Designs Facebook page to follow my daily progress on projects I’m working on and what I’m doing and the next cool thing.

You can also see my twitter and facebook feeds from my column section at autobodynews.com. Alright guys, talk to you next month!

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I-CAR Tech

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

Thin-Film Technology Comes to Collision Repair If you were asked for a short descripmore descriptive than that is proprition for anti-corrosion compound, the etary. They’re a completely aerosol material that is sprayed onto the back- system being distributed by at least side of panels and inside rails after retwo product makers, Bonding Solupairs, it is likely that “thin film” and tions with their Like90 Corrosion Protection System, and Sherwin Williams “fine mist” would not be included in the wording. However, that is exactly with their Shield Corrosion Protection the description given to a new type of System (see Figure 1). anti-corrosion compound now availThe two systems actually come able that uses what is collectively from the same source that has its oriLee Amaradio Jr.in the aerospace industry. The called thin-film with technology. gins Thin-film technology products same material that’s being recomare polymer resin-based, anything mended for spraying inside rails and panel cavities has been used for years on aluminum welds and sealing joints on aircraft. Besides an anti-corrosion compound, the line also includes a weld-through primer, also polymer resin-based, and a solvent-based cleaner.

Amaradio Explains CRA

as a fog spray, can quickly build up a heavy coating with the consistency of honey. The thin-film technology products start out thin, and the resulting coating is thin. This allows the material to not only coat the interior surfaces, but also wick out between the welded flanges from the inside. There is a dedicated wand that fits onto the aerosol spray can nozzle with a 360° fan pattern tip on the other end (see Figure 2). Like other anti-corrosion compound systems, the wand is for inserting into existing holes or into rails to apply the material onto areas that cannot be easily reached.

Anti-Corrosion Compound ConsumerThin-Film Callout Most anti-corrosion compounds are

Figure 1 - The thin-film technology corrosion protection products are all aerosol

wax-based, and even though applied

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ALL OEM Information Genuine Genu Ge nuin nu inee Mitsubishi in Mits Mi tsub ts ubis ub ishi is hi replacerrep epla ep lace la ce-ce with Dan Espersen

2011 Lancer

ment ment Crash CCra rash ra sh Parts PPar arts ar ts are are close cclo lose lo se at at hand hand through tthr hrou hr ough ou gh the the following ffol ollo ol lowi lo wing wi ng quality qual qu alit al ityy dealerships. it deal de aler al ersh er ship sh ips. ip s. They TThe heyy offer he offer exceptional exce ex cept ce ptio pt iona io nall customer na cust cu stom st omer om er service, sser ervi er vice vi ce,, ce wide wide selection ssel elec el ecti ec tion ti on of of in-stock in-s in -sto -s tock to ck parts part pa rtss and rt and the the experience expe ex peri pe rien ri ence en ce necessary nece ne cess ce ssar ss aryy to ensure ar eens nsur ns uree your ur your repairs repa re pair pa irss proceed ir proc pr ocee oc eedd smoothly. ee smoo sm ooth oo thly th ly.. ly

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866-509-0642 SAN MATEO

(650) 340-6108 Fax M-F 7:30 am - 5:00 pm Sat 8:00 am - 5:00 pm mitsparts@veracom.com www.veracom.com

Figure 2 - The dedicated spray wand for the anti-corrosion compound is stiff, but flexible to allow a 360° spray pattern to reach all areas of a cavity

The thin-film nature of the material, combined with its creeping capability, allows applying it to joint edges after welding. On panel applications where there are no cavities, such as a welded radiator core support, the same cavity compound can be applied to the outside of the joints (see Figure 3).

Just like it does from the inside, the thin film penetrates between the flanges from the outside, wicking around the welds to replace the weldthrough primer that burned away. Excess material is cleaned off with the solvent-based remover, since it is not a good base for painting.

There are two anti-corrosion compounds in each system. With the Shield system, there is a clear and a black compound, both identical except for the color. With the Like90 system, there’s a dry film compound for sealing the joints after welding.

The compound for cavity protection is a wet film that’s self healing, similar to conventional anti-corrosion compounds.

Product specialists say it’s perfectly OK to apply more coats of the

Automaker Actions and Announcements with Janet Chaney

cavity compound inside cavities, and even apply another brand of conventional wax-based anti-corrosion compound over the thin-film technology product, but it’s not necessary.

Weldable Weld-Through Primer The thin-film technology weld-through primer differs from other weld-through primers available in that it is not zincor copper-based, so it’s not conductive.

This allows the thin-film technology weld-through primer to be welded through. Our experience showed no problems with porosity when welding GMA (MIG) plug welds without cleaning the material.

The instructions say to apply a very light coating on both mating surfaces and wait ten minutes before welding. The primer is still tacky at that point. Any weld-through primer on surfaces that will be refinished is cleaned off with the solvent remover.

Future Collision Repair Applications Thin-film technology is also being considered for spraybooth masking

Figure 3 - On welded joints, the anti-corrosion compound can be sprayed on the outside of the joint after welding to allow it to wick into the joint

and liquid masking applications. Liquid masking was actually the first collision repair application for the technology some years ago.

The new plans are to improve that product. The product makers are also showcasing the benefits of thinfilm technology to vehicle makers, though there are no specific recommendations or endorsements as of yet.

Thin-film technology products are one of the new offerings for automotive corrosion protection. The See Thin-Film Technology, Page 55

www.autobodynews.com | AUGUST 2011 AUTOBODY NEWS 53

54 AUGUST 2011 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 53

Thin-Film Technology

polymer resin-based aerosols are being offered as a thin anti-corrosion compound and weld-through primer with some unique qualities.

To learn more about different types of corrosion protection materials, repair considerations, and manu-

facturer processes attend I-CAR’s instructor-led (live) Corrosion Protection (CPS01) course.

For information about the Advantage Online, please contact I-CAR at advantage@i-car.com.

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or those from outside the area.

To fully reduce crashes, drivers need to be more careful, said Carol Breen, a DOT spokeswoman.

DOT’s regional director. “If we were “People do need to watch the to design these problematic round- pavement markings, watch the signs abouts today, we would have designed and be cognizant of their speed,” she opinion on matters affecting industry. themGive quite us a bityour differently.” said. “People needthe to be very cogIn reviewing crash data, DOT of- nizant about yielding. If we can get at ficials said they learned the accidents that driving behavior, we can bring are not being caused by older people these accidents down.”

Continued from Page 50

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