August 2021 West Edition by Autobody News

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Webinar Looks at Billing, Invoicing Regulations for California Auto Body Shops by John Yoswick

California Autobody Association (CAA) attorney Jack Molodanof emphasized during a CAA webinar in June the importance of collision repair shops’ final invoices accurately reflecting exactly what was done to each vehicle. This is particularly true in a state like California, where there is a specific regulator―the Bureau of Automotive Repair―overseeing the automotive aftermarket. “Include the list of all the services and repairs performed and the

price,” Molodanof said regarding final invoices. “Itemize each of the parts supplied. And I mean each part. Even if it’s free, if you put it on, you have to list it on the final invoice. “Representing the vehicle was repaired according to the final invoice, when in fact it wasn’t, is fraud. You charged for this and you didn’t do it: That’s fraud. The BAR can file an attorney general action to revoke your license based on that. That occurs. It’s happened. There are facilities out there that didn’t believe it until it happened to them.” See Webinar Looks at Billing, Page 22

SEMA Intensifies Advocacy Efforts, Connects with Congressional Reps from Washington, D.C. by Juan Torres

SEMA representatives escalated their advocacy efforts by taking part in nearly 100 meetings with Republican and Democratic lawmakers from Capitol Hill during June and July. As part of the virtual 2021 SEMA Washington Rally, more than 60 SEMA-member companies joined SEMA staff in a record-high number of meetings with officials from the U.S. House of Representatives and Senate. Discussions focused on top industry issues, chal-

lenges and concerns, chief among them passage of the Recognizing the Protection of Motorsports (RPM) Act. SEMA members also spoke with federal lawmakers in opposition to electric vehicle mandates while voicing support for increased federal investments in roads and bridges, protecting motorized offroad recreational access, tax credits for businesses participating in trade shows and ensuring aftermarket businesses can market products that are interoperable with vehicles that See SEMA Intensifies Advocacy, Page 26

39 YEARS

AUTOBODYNEWS.COM Vol. 39 / Issue 8 / August 2021

GM Promises to Leave No One Behind as it Moves to an All-Electric Future by Jamie L. LaReau, Detroit Free Press

General Motors says it wants to make sure all of its customers and its employees are included in its transition to an all-electric car company. On June 29, GM CEO Mary Barra made several promises to achieve that goal, including announcing the creation of a $25 million Climate Equity Fund. By equity, that means no one is left behind as GM transforms the company. The idea is that all people have access to electrification regardless of socioeconomic status, race or

other situations. It means that electrification will benefit society, said Jessica James, a GM spokeswoman. “Climate change does not impact every community equally,” Barra said at the Aspen Ideas Festival. “As we move to an all-electric, zero-emissions future, it is on us to lead positive change and implement inclusive solutions that bring everyone along, especially our employees and communities.” The new fund will be used to support programs that help people See All-Electric Future, Page 24

Predicting What the Collision Repair Industry Will Look Like in 2035 by John Yoswick

Where will the collision repair industry be in 2035? That daunting question was tackled this spring by the Future Disruptions Committee at the Collision Industry Conference (CIC). As the panel discussion began, Sean Carey of SCG Management Consultants pointed to a weakness in the exercise itself. “Rather than take yourself forward 14 years, take yourself back 14 years,” Carey suggested. Think about comparing a 14-year-old Honda Accord to a current Honda Accord, he said: the differences in the vehicle itself, in the repair procedures used, in how estimating is done and how the entire claim is settled. “It was vastly different from where we are today, and in 14 years it will be vastly different again,” Carey said. “It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” With that preface, Carey said

he foresees “mass consolidation” in the industry, with the formation of at least one cross-functional entity that includes an insurance company, technology companies and a large repairer group―its “own ecosystem.” “From a moment that vehicle is in an incident, this organization, under one single ownership, takes care of everything,” Carey said. “Data is going to make that very, very possible.” Direct repair and OEM certified shop networks will give way to licensed shops, each “capable of repairing only particular types of vehicles,” he said. “This mainstream, ‘bring it all in on Monday, we’ll ship it all out by Friday,’ will be a thing of the past. [Vehicles] will not be allowed to go to an unlicensed shop.” There will be far fewer vehicle repairs, but what there are will be very costly, he predicted. “Severity will climb through the roof,” he said. “Severity today will seem laughable. Think tens of thouSee Look Like in 2035, Page 16

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CONTENTS CAA Webinar on BAR Compliance Recording ��6 Generations Demonstrate Quality Work Stands the Test of Time ��10 GM Invests in Advanced Design and Technology Campus in Southern California ��20 Halo, Las Vegas Launch Driverless Car Service Powered by T-Mobile 5G ��12 Mike’s Auto Body in California’s East Bay Celebrates 21 Years of Giving Cars to Deserving Families ��14 Project Underway to Make Assembly Line Permanent at Tesla Fremont ��6 Webinar Looks at Billing, Invoicing Regulations for California Auto Body Shops ��1

Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck ��4 GM Promises to Leave No One Behind as

Airbag Inflators ��50 Heat Waves Melt Critical Infrastructure in Pacific Northwest ��37 Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms ��4 June CIECAST Explores Future of AI in the Collision Repair Industry ��34 LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive Diagnostics and Programming ��50

Accelerate Auto Parts Recycling and

Anderson - Use Tech to Kick ‘Timesuckers’

Distribution with AI ��16

Inspections Requirement for Collision Repair Shops ��32

Predicting What the Collision Repair Industry Will Look Like in 2035 ��1 RPM Act Gains Steam in the U.S. House of Representatives ��26 Segments of Specialty-Equipment Industry

NATIONAL ‘Who Pays for What?’ Survey: Auto Body

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GM Recalls 410,000 Trucks with Dangerous

LKQ North America, Tractable Partner to

Yoswick - GM Scales Back Post-Crash

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it Moves to an All-Electric Future ��1

COLUMNISTS

Out of Your Collision Repair Shop ��30

800-699-8251

See Growth During Pandemic ��55 SEMA Intensifies Advocacy Efforts,

INDEX OF ADVERTISERS

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Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, Stacey Phillips Advertising Sales: Joe Momber, Norman Morano, Johnny Barrett (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2021 Adamantine Media LLC.

Audi Wholesale Parts Dealers �� 47

Kearny Mesa Subaru-Hyundai �� 35

AutoNation Collision Parts �� 15

Kia Downtown Los Angeles �� 36

AutoNation Honda Costa Mesa �� 30

Kia Motors Wholesale Parts Dealers ��44-45

AutoNation Infiniti Tustin �� 34

Kia of Carson �� 31

AutoNation Roseville ��8-9

Kia of Irvine �� 6

Axalta Coating Systems �� 5

Larry H. Miller Chrysler-Jeep-Dodge-Ram �� 24

BMW Wholesale Parts Dealers �� 51

Maita Chevrolet �� 20

Car Pros Kia �� 16

Mazda Wholesale Parts Dealers �� 52

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

Shops Increasingly Billing, Being Paid

Connects with Congressional Reps

Car Pros Kia Renton �� 22

Mercedes-Benz Wholesale Parts Dealers �� 52

for Seat Belt Inspections ��54

from Washington, D.C. ��1

Certified Automotive Parts Association �� 10

Michael Hohl Motor Company �� 38

Classifieds �� 54

MINI Wholesale Parts Dealers �� 50

Colortone Automotive Paints �� 31

MOPAR Wholesale Parts Dealers �� 33

Courtesy Chevrolet San Diego �� 27

Nissan/Infiniti Wholesale Parts Dealers �� 53

DCH Chrysler-Dodge-Jeep-Ram-Fiat �� 26

Porsche Wholesale Parts Dealers �� 48

Eagle Abrasives, Inc �� 23

PPG �� 11

Equalizer Industries, Inc �� 14

Pro Spot International �� 13

Fairview Ford-Lincoln-Mercury �� 32

Reno Buick-GMC �� 24

FH Dailey Chevrolet �� 40

SATA Dan-Am Company �� 17

Ford Wholesale Parts Dealers �� 49

Sherwin-Williams Automotive Finishes �� 2

Future Nissan of Roseville �� 22

Sierra Chevrolet-Honda-Subaru �� 12

Galpin Motors �� 39

Spanesi Americas �� 25

Garden Grove Kia �� 6

Subaru Wholesale Parts Dealers �� 43

Glenn E. Thomas Dodge-Chrysler-Jeep �� 21

Sunmight USA ��18-19

GM Wholesale Parts Dealers �� 37

The Bay Area Automotive Group �� 41

Used Vehicle Prices Expected to Climb to

Honda-Acura Wholesale Parts Dealers ��28-29

Volkswagen Wholesale Parts Dealers �� 42

Record Highs as New Vehicle Prices

Hyundai Wholesale Parts Dealers �� 46

Volvo Wholesale Parts Dealers �� 38

Stay Steady in Q2: Edmunds ��55

Industrial Finishes and Systems �� 7, 56

16 State Attorneys General Asks EPA to Hold All States to Emissions Rules ��51 AAPEX 2021 Opens Nominations ��50 Americans Cut Driving Nearly in Half in Early Stage of COVID Crisis ��38 Art, Innovation and Car Design Collide in the Life of Michael Santoro ��42 ASE.com Launches Spanish Language Option ��38 Audi Selects Mobileum ��54 Automotive Recyclers Applaud Executive ��48 Average New-Vehicle Price Rises $2,000 from Last Year, Hits All-Time Record High for May ��48 Axalta to Acquire U-POL Order ��35 Cadillac SRX, Saab 9-4X Recalled Again for Toe Links ��47 Carmakers in North America Worst Hit by Semiconductor Shortage ��52 Chrysler Top Ranked for EV Car-Shopping Experience ��47

Signature Collision Centers Joins Forces with Crash Champions ��51 Strategies to Help Auto Body Shops Navigate the Semiconductor Microchip Shortage ��36 Tesla Vision Will Capture Hazards, Turn Signals, Hand Gestures, More, Says Musk ��42 Tesla Wanted $16,000 for a Simple $700 Model 3 Repair ��48 Tesla, Volvo Among 5 Carmakers Under NHTSA Investigation for ADAS Crashes ��40 The Best U.S. Cities to Own an EV, According to Research ��46 Toyota and Lexus Vehicles Now Covered by Solera’s VIN Service, AudaVIN ��46 Tradiebot: New Collision Repair Training Software ��31

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 3

Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms The U.S. economy is showing signs of returning to pre-pandemic levels, and the auto business is booming. Like many industries, U.S. automotive retail is struggling to find enough employees for dealerships to be fully staffed, much less meet their 2021 growth goals. In the 2021 Cox Automotive Dealership Staffing Study published June 21, 72% of franchised auto dealers surveyed say finding and hiring the right employees is currently a challenge. A majority of dealership leaders—approximately 65%—report that they plan to increase the total number of employees in the dealership this year, while abotu 34% said they plan to maintain their staffing level. Expanding the number of service technicians is the highest priority for dealership leaders, with 60% planning to increase the number of service technicians this year, followed by new-vehicle sales associates (54%) and used-vehicle sales associates (48%). Dealers’ desire to grow their

operations comes at a time when business is strong. According to the Q2 Cox Automotive Dealer Sentiment Index, sentiment related to the current market reached a record high in Q2 for both franchised and independent dealers, and the profit index set a record high as well. The three-month market outlook index reading is an increase from last quarter and, importantly, equal to Q1 2020, the final preCOVID-19 reading. “While the outlook for dealerships has never been better, dealers state that finding employees is a challenge due to people not returning to their positions or the workforce post-pandemic,” said Angela Drake, senior industry intelligence manager, Cox Automotive. “The traditional lack of interest in working at dealerships is exacerbated this year by pandemic-related stimulus money and enhanced unemployment benefits. “The good news is that our study found overall interest in working at dealerships is growing, and a growing number of employees in non-automotive jobs view

their skill sets as transferable to the dealership.” Job Seekers May Have Skills Dealers Desire, And Not Know It When asking potential job seekers why they would not want to work at a dealership, 32% indicate they did not have the necessary skills. However, the 2021 Dealership Staffing Study finds Heavy Digital Dealers, those dealers that significantly invest in digital retailing tools, say the right employee doesn’t need automotive experience. Instead, they are looking for the following characteristics: • Willing to go above and beyond their specific job responsibilities • Good communicators across all communication channels (verbal, written, video, etc.) • Can easily adapt to a quickly changing work environment • Tech-savvy and comfortable with learning new technology “As pandemic unemployment assistance winds down, dealers have

the opportunity to promote their job openings to a new group of job seekers who may not have considered working in a dealership,” said Bob Kostkan, senior director at Cox Automotive University. “Job seekers with restaurant and retail experience usually have the mindset, potential and skills to be successful at a dealership but may not realize that automotive experience isn’t a prerequisite for many of the open positions. “The most successful dealers offer employees onboarding and comprehensive career development training beyond what their OEMs offer to enhance engagement and retention. In fact, the top two most popular training enhancements indicated in the Dealership Staffing Study for now and into the future are online/digital tools and communication skills.” Source: Cox Automotive

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Ford F-150 Lightning Details Reveal Surprising Premium Over Tesla Cybertruck by Simon Alvarez, Teslarati

The Ford F-150 Lightning is arguably one of the most impressive all-electric pickups on the market today. Starting at a very aggressive price and designed for the F-150’s classic buyers, the Lightning seemed like a great shoo-in as the electric truck market’s next best-seller. Ford, however, has been reserved about the Lightning’s full pricing details, at least until now. And if the recent information about the F-150 Lightning proves accurate, it would appear Ford’s electric pickup will command a pretty steep premium over the Tesla Cybertruck. Users at the Ford enthusiast forum F150Gen14 recently shared a questionnaire reportedly sent by the veteran automaker. The questionnaire, which seemed designed to determine which features are preferred by consumers, featured a list of available F-150 Lightning variants and their respective options and prices. This

included every trim of the Lightning, from the Pro base model to the top-tier Lightning Platinum series.

Credit: Ford Motor Company

Based on the information from the carmaker, non-commercial buyers of the Ford F-150 Lightning could expect to shell out about $53,000 for the XLT trim, but that’s a truck with a conservative 230 miles of estimated range. Customers who prefer an XLT Lightning with longer range could expect to pay an additional $7,000 for its 300-mile battery

4 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

pack. This is true for the XLT + Premium Package and Lariat variants as well. The Ford F-150 Lightning Lariat was already listed with a starting price of $67,474, or close to the starting price of the 500-mile tri-motor Tesla Cybertruck, which starts at $69,990. That’s pricey for a vehicle that still starts with only 230 miles of range. Fortunately, Ford’s 300-mile battery becomes standard with the F-150 Lightning Lariat + Premium Package, but that starts at $79,474. The Ford F-150 Lightning Lariat + Premium Package not only comes with the company’s 300-mile range battery. It also comes with a twin-panel moonroof, the company’s BlueCruise driver-assist system and Phoneas-a-Key features. These specs are comparable to the middle-tier Tesla Cybertruck Dual Motor AWD, ex-

pected to have a range of 300-plus miles, as well as standard features like a full glass roof, basic Autopilot and Phone Key functions. The notable difference between the Ford F-150 Lightning Lariat + Premium Package and the Tesla Cybertruck Dual Motor AWD, of course, would be their price. Based on the information reportedly sent by Ford to its customers, the F-150 Lightning Lariat + Premium Package starts at $79,474, while the Cybertruck Dual Motor AWD starts at $49,990 before options. That’s a premium of nearly $30,000 for the F-150 Lightning. With such a price gap in mind, Ford may have to rely on its reputation and pedigree as a truck-maker to ensure the Lightning becomes successful like its internal combustion-powered predecessors.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 5

Project Underway to Make Assembly Line Permanent at Tesla Fremont by Joey Klender, Teslarati

Tesla’s project to make General Assembly line 4.5 (GA 4.5) permanent at the Fremont Factory in Northern California is now underway. In February, Teslarati reported Tesla was planning to make GA 4.5 permanent. The project would expand the Fremont Factory by 64,000 square feet. GA 4.5 is a tent or spring structure located just outside the Fremont Factory’s main facility. According to City of Fremont filings, it has been the location of Model Y production since February 2020, when the tent was initially erected. The structure was not supposed to be permanent, but Tesla has made it abundantly clear this will be a long-standing part of the Fremont production efforts for the company. The February filings indicated Tesla would attempt to add underground utilities like plumbing and electrical work, meaning the spring structure was undergoing foundational work. Effectively, the tent is going nowhere, and it will be the site of Tesla’s growing manufacturing efforts

for years to come. Now that Fremont’s government has approved the project, Tesla has completed some of the project. According to new documents from the City of Fremont, Tesla has “added underground sanitary sewer extension from civil point of connection.”

Credit: Ryan Ferrin|YouTube

Tesla has expanded its production capacity several times over the past few years, thanks to the introduction of new vehicles to its lineup. Additionally, the company’s vehicles are among the most popular in the EV sector, and Tesla has continued to expand its market through a wider array of vehicle styles. Because of the increased demand the company has faced, Tesla has already started constructing more production facilities, both in the U.S.

and internationally. However, the Fremont factory has needed to expand due to increased demand, and Tesla is taking nearly every inch of land at Fremont and making it a part of the manufacturing process. As Tesla moves closer to the initial production dates of the Giga Texas and Giga Berlin facilities, there is no shying away from the fact Fremont is still an integral part of the company’s production. The plant is the only facility in Tesla’s lineup that manufactures the Model S and Model X. The facility will also handle the Western half of the U.S. with Model 3 and Model Y builds, as Giga Texas will be responsible for the Eastern portion of the country. In 2020, Tesla expanded the Model Y production lines to make way for the IDRA Giga Press. This was filed in July 2020, and the Giga Press is now operational at the facility and is building single-piece rear castings for the Model Y crossover. Tesla attempted to expand GA 4.5 in April 2020. This project was delayed as Tesla had to solve issues with stormwater drainage before the project was approved.

CAA Webinar on BAR Compliance Recording The CAA webinar, “BAR Compliance―How to avoid fines or losing your BAR license,” is now available to watch and download on the CAA website, calautobody.com, for any member unable to attend the meeting June 17. The video and PowerPoint presentation can be found in the “Shop Tips and Resources” section of the CAA website, only available to CAA members. CAA members who have not signed up on the website can do so through the “Sign Up” button on the top left of the homepage banner. Once registered, members have access to all of the CAA’s “Members Only” information and protected content. To become a member or renew a membership, call the CAA office at 916-557-8100 to request an invoice or sign up over the phone. Source: CAA

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Generations Demonstrate Quality Work Stands the Test of Time learn the trade and make her way in a male-dominated field. In 2000 she was one of seven honored with the industry’s “Most Influential Women” award. “Like Grandpa, Aunt Camille has a deep affinity for cars,” asid Bray. “She bought the business from Grandpa a couple of years after Grandma unexpectedly passed away―having only spent three years in the shop. She had to go after the knowledge she needed, whether it was the trade, estimating or even business management. “She earned accreditations from the Automotive Management Institute, she’s certified by the Masters School of Autobody, she’s ASE-certified and I-CAR trained,” Bray continued. “Nothing was ever given to her. She grew the business to two locations and even became the first facility in Pictured, left to right, are James Bray, production manager; the Portland area to earn the William Bray, co-owner; the late Jim Eber; Camille Eber, prestigious I-CAR Gold cerco-owner; and Iala Bray, office manager tification. “As I grew older, I looked up to Jim Eber joined Roth & Miller Autobody, a Portland business that Aunt Camille, much like she looked first opened in 1946, as a body man up to Grandpa and Grandma.” Bray, Camille Eber’s nephew, in 1955. Although Eber left the business for a brief period to work for said he inherited the “car gene” in a local insurance company, he came the family. “I remember as early as 5 comback in 1963 and purchased the fa- ing into the shop with my mom becility with his wife. “Grandpa always loved cars, cause she wanted to visit my aunt,” learning how they worked, the me- recalls Bray. “I always looked chanics behind them and how to fix forward to visiting Aunt Camille. them,” said William Bray, co-own- When I was 11, I asked if I could er, Fix Auto Portland East. “Grand- work there after school to earn some ma was a partner from the start of the extra money. My mom would drop business but joined the shop full-time me off, or I would take the bus, just as a bookkeeper in 1971. Together, so I could spend time in the shop.” Bray enrolled in a senior co-op they built a reputation in the community as a hardworking, family-run program in high school, so he could body shop. Grandpa’s passion was learn more about the trade. Spendinfectious, and I think that is how my ing time with his Aunt Camille, he learned the ins and outs of the busiAunt Camille got into the business.” The third of Jim and Doris ness, from repair processes to office Eber’s four children, Camille Eber, management. Much like his aunt, decided to enter the business. Like Bray is also an Accredited Automoher father, Camille Eber loved cars. tive Manager, ASE-Certified and She also loved the idea of operating I-CAR trained. “More than anything else, I’ve and owning a business, carrying on what her parents had built, through learned the importance of repair quality,” said Bray. “I work so hard good and hard times. She joined the team full-time to hone my skills, continue training in 1986 and worked diligently to and deliver premier customer serFix Auto Portland East, Fix Auto Gladstone and Fix Auto Clackamas are all a part of a longstanding family business, spanning three generations, now celebrating its 75th anniversary of business. With only about 40% of U.S. family-owned businesses turned into second-generation businesses and only about 13% successfully passed down to a third generation, this is an incredible feat for the Eber-Bray family.

10 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

vice because the quality of our work is what has built our legacy in the community. I’ll never forget Aunt Camille saying, ‘We never want to be in a position where we are grocery shopping with our families, and we

Roth & Miller Autobody circa 1946

have to duck and hide from customers because we’re embarrassed by the repair experience―we want to be able to greet customers when we see them.’” Bray has been a partner in the business for eight years now. It is still a family-owned operation, as William’s brother, James, is the production manager, and William’s wife, Iala, is the office manager. The team even partnered with

another set of family operators, brothers Dave and Joey McCollum, to open their third facility, Fix Auto Clackamas. “We joined the Fix Auto USA network because it’s a recognized name across the industry that is well-respected with values rooted in trust, commitment and care―aligning with our long-standing legacy,” said Bray. “We are still an independently owned and operated family business, but now have access to the extended Fix Auto USA family, which has helped us enhance our operations and introduce us to other like-minded owners.” With three children as well as twins on the way, William and Iala Bray look forward to seeing where their family business will take them next. Fix Auto USA, an industry-leading collision repair network, is proudly celebrating its 10th anniversary of business collision repair center. Visit FixAutoUSA.com to learn more. Source: Fix Auto

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Halo, Las Vegas Launch Driverless Car Service Powered by T-Mobile 5G On July 8, Halo launched one of the first commercial driverless car services in the U.S. running on the T-Mobile 5G network in Las Vegas. With Halo, visitors and residents can quickly summon a sleek, driverless all-electric Halo with the push of a button. A driverless Halo then arrives at the pick-up location and the rider hops in and drives to their destination. Halo has operated on the T-Mobile 5G network since it began driving on Las Vegas’ public roads earlier this year. Halo is collaborating with local municipalities to accelerate the adoption of EVs to address traffic congestion and carbon emission challenges by connecting public transit systems to on-demand, driverless cars. The company expects to begin offering rides to customers later this year with service initially available in urban parts of the Las Vegas Valley. When fully deployed in the city, Halo has the opportunity to replace the need for thousands of personally owned cars, creating a more traffic-free, carbon-free, blue-sky world. “Driverless cars! Fueling this

kind of startup innovation is part of why we’ve built the biggest, fastest and most reliable 5G network in the country,” said Mike Sievert, CEO of T-Mobile. “Innovation and driving change for the better is our DNA at the Un-carrier, and we’ve unleashed a 5G network that will transform in-

Halo car. Credit: Business Wire

dustries and change our world for the better. I can’t wait to see what comes next as we work with startups, developers and entrepreneurs like Halo building the next big thing in 5G!” Halo’s service is safe and easy to use. Riders will simply summon a driverless EV via a mobile app. A driverless Halo arrives at the pickup location and the rider hops in and drives to their destination. Upon

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arrival, no parking is needed―the Halo moves driverlessly to its next pick-up location. With its proprietary RemotePilot technology, Halo trains in-house drivers to remotely operate the driverless car over T-Mobile’s 5G network. Halo has developed an Advanced Safe Stop mechanism enabling its cars to immediately come to a full stop if a potential safety hazard or system anomaly is detected. Using an advanced Artificial Intelligence algorithm, the car also learns in the background while humans control the vehicle, building a unique feedback loop to achieve Level 3 capabilities over time. “Full autonomy is a massive challenge from both a technical and social trust perspective that won’t be solved for years to come,” said Anand Nandakumar, the founder and CEO of Halo. “But Halo has been designed to address these challenges by building automation over time starting with a solution that consumers will feel comfortable using today.” Halo, a graduate of the 5G Open Innovation Lab co-founded by

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T-Mobile, is an early leader in driverless and autonomous car technology. Founded by executives from Uber, Cruise Robotics, Proterra, Amazon and more, Halo is poised to serve a global $2.5 trillion-dollar transportation market creating local jobs with an innovative, on-demand car-sharing model. “For years, Nevada has been a hub for innovation in autonomous vehicles and a leader in this space,” said Justin Jones, Clark County commissioner of District F and vice chair of the Southern Nevada Regional Transportation Commission. “Halo and 5G technology offer an intelligent transition between where we are today and where we want to go in the coming years, giving residents and visitors a better, more energy efficient way to move throughout this great city.” Source: Halo, T-Mobile

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Mike’s Auto Body in California’s East Bay Celebrates 21 Years of Giving Cars to Deserving Families and talents. Due to COVID-19 and all the Since the pandemic began, many related restrictions, Mike’s Auto auto body shops temporarily sus- Body was not able to hold its typical pended the practice of giving refur- presentation, but roughly 60 people bished vehicles to deserving fami- were in attendance, including Coast lies, which makes sense. Guard representatives, Mike’s em But, even during these uncer- ployees―including the technicians tain times, Mike’s Auto Body in Cal- who worked on the vehicle―busiifornia’s East Bay is committed to ness partners, vendors, local politicontinue its benevolence program, cal representatives, insurance comsafely and within local regulations. panies and the local press. Over the last two decades, The program opened with reMike’s Auto Body has presented 94 marks from Sal Contreras, who has cars to deserving families and non- been emceeing Mike’s benevolence profit organizations. On June 16, presentations for two decades. Mike’s gave two fully refurbished “It has been so rewarding over vehicles to two deserving mem- the last 21 years, presenting the bers of the Alameda GG U.S. Coast cars to deserving individuals and Guard. organizations who are working to A 2019 Honda Fit was given to improve their skills and become inU.S. Coast Guard SK2 James Soud- dependent,” Contreras said. “We are er, and YN3 Ryan Westall received excited to be part of our recipient’s a 2017 Toyota Prius at a ceremony life-changing experience, and doing on the pier adjacent to the U.S.S. it in this amazing location next to Hornet in Alameda, CA. these ships makes it even more significant. “Three years ago, Liberty Mutual/Safeco Insurance donated a car for our Alameda Benevolence Program to honor the deserving families of the GG Coast Guard with the help of the CPOA Chiefs,” Contreras said. “A tradition was born. U.S. Coast Guard SK2 James Souder, center, poses with “We are grateful this Brennan and Ragen Rose, far right, co-owners of Mike’s year to have Liberty MuAuto Body tual/Safeco Insurance and The Honda Fit was donated Mike’s Auto Body donate a written by Liberty Mutual/Safeco Insur- off vehicle to be presented to two ance and refurbished by the crew deserving Coastie families,” Conat Mike’s Alameda, and the Toyota treras said. “The benevolence proPrius was donated by Mike’s Auto gram is about helping people who Body and repaired at its Antioch are in need of a helping hand. The Auto Damage Assessment Center pandemic did put a lockdown on the (ADAC) location. program in March and we weren’t This year’s presentation, held sure if we would be having any prein the shadows of the enormous car- sentations at all this year. When the rier, U.S.S. Hornet, and other ships, state’s restrictions were being lifted, also celebrated the 101st anniversa- we decided to re-engage with our ry of the establishment of the rank benevolence program and give away of chief in the Coast Guard, and these two cars.” marked Mike’s Auto Body’s 21st Supervisor SK1 Craig Davis, anniversary participating in the be- SFLC Alameda LREPL ASM, wrote nevolence program. a letter recommending Souder. “Over the last four years, James Everything is always donated, including the cars, parts, paint, me- has been working at our base in Alchanical inspections, tires and one ameda and commuting from Petalufull year of insurance. The body and ma five days a week,” Davis wrote. paint technicians donate their time “The vehicle that James owned was by Ed Attanasio

14 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

in very poor condition at one point he had to take out a mutual assistance loan to cover the cost of the maintenance it needed to stay in running condition.

heart when good people do things like this for other good people.” CWO Michael Marsh nominated Westall. “Westall works tirelessly to help shipmates with all of their administrative needs and on numerous occasions has worked after hours to ensure crewmembers were supported,” Marsh said. “Soon after reporting to the CGC Waesche, YN3 Westall and his family were in a car accident resulting YN3 Ryan Westall received a 2017 Toyota Prius from Mike’s in his family’s only mode Auto Body at a ceremony on the pier adjacent to the U.S.S. of transportation being deHornet in Alameda, CA stroyed. To make matters “This is just my opinion of worse, he unknowingly let his insurcourse but James is a wonderful hu- ance lapse and was not covered at man being and his family does a lot the time of the accident. for others so it would be awesome to “To alleviate the strains of comsee something good like this come muting without a vehicle, Westall his way,” Davis continued. “I can’t purchased an electric scooter to use speak for everyone else and their sit- as his sole mode of transportation,” uations but this would go to a very Marsh said. “For more important deserving family if it goes to them. matters such as medical/dental apThanks again for reaching out and pointments and the necessities of See Mike’s Auto Body, Page 22 doing what you all do. It warms my

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 15

Continued from Cover

Look Like in 2035 sands, not two or three thousand, and shaving an hour here or a procedure there. These things are going to cost a lot to repair.” Other speakers agreed the repairer-insurer-OEM dynamic will change significantly by 2035.

be eliminated entirely. “Look at how you have Tesla Insurance, or Onstar Insurance from General Motors,” Spears said. “You’ll probably have a vertical that will take care of that customer much, much better than [separate companies] that don’t have the incentives to work together.” Terlep said the added cost of vehicle safety systems will have led

“It’s not always easy to conceive what’s going to happen in the future. We’re guessing at best.” — Sean Carey “One of the things I foresee has been happening outside of our country for many years,” said Frank Terlep, co-chairman of the Future Disruptions Committee. “When you buy a new vehicle in 2035, you will be getting your insurance with the vehicle. That’s going to change the model.” Jimmy Spears, a former executive at USAA who is now with Tractable, agreed the line between automaker and insurer will blur or

to more vehicles being declared total losses, with the repairable vehicle count dropping “as much as 30 or 40%.” “You’re going to have to be a licensed professional to get access to those safety systems,” Terlep added. “A lot of people don’t want to hear that, but I just don’t see the OEMs and the government releasing direct access to all the safety systems.” Committee co-chairman Jake Rodenroth agreed.

“You have to be licensed to cut hair but not to calibrate ADAS or cut panels off cars or work on electric vehicles,” he said. “That’s got to change.” Several speakers agreed by 2035, accessing OEM repair information will be less “clunky” and time consuming, no longer requiring use of multiple websites. “So in 2035, my prediction is the procedures will be living with the vehicle,” Terlep said. “You’ll be looking in the vehicle for those procedures, not on someone else’s website. The repair procedures will be presented to you based on sensors in the vehicle that will know: These areas are damaged.” Rodenroth agreed, noting collision repairers are not the only ones needing easier access to the information. “There are first-responders who need to know where they can cut a vehicle, where they can’t cut one. There are tow truck drivers who need to know how to safely tow a vehicle. They’re all in a race against time,” Rodenroth said. “They don’t have time to flip a book, or go

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The AI uses computer vision, a technology that allows algorithms to reason based on images, to assess the specific damage on each vehicle and determine which parts can be recycled and reused. Tractable’s AI has been trained on millions of historical examples and performs on par with human intelligence, increasing the level of consistency and accuracy. “We are excited to be the first recycled parts provider to apply AI to the effective and efficient procurement of salvage vehicles,” said Yogi Shivdasani, vice pres-

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through an app or even to ask Siri. They need to have it easily accessible and immediate. Maybe it’s a combination of on the vehicle infotainment screen or on a handheld as they walk toward the car. But it’s got to be instant.” Also in the future, Terlep foresees more use of remote technicians, even those in other countries, for diagnosis and electronic work, given the shortage of technicians here. Rodenroth said he recommends the industry start recruiting “the tuner kids,” those who can customize a vehicle “to turbocharge it or create a bigger engine and push more fuel and air.” “They understand how the [vehicle] network works before they change it,” he said. “So when you bring them in, don’t ask them body shop questions. Ask them about how they feel about electronics and wiring diagrams, how immobilizers work and things like that. You’ll see some of them explode. I met one yesterday when I picked up a rental car. This kid was sharp. That’s the future technician right there.”

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GM Invests in Advanced Design and Technology Campus in Southern California General Motors on July 13 announced a more than $71 million investment to establish a new campus in Pasadena, CA, for GM’s Advanced Design Center operations, a move that will substantially increase the center’s capacity and create more jobs in the area. The facility’s relocation from its existing space in North Hollywood to the nearly 149,000-square foot campus will make room for ex-

dynamic candidates in fields that will bolster GM’s proven design capabilities and challenge conventional thinking of what our future portfolio of connected products and services can encompass.” The announcement of the technology campus in Pasadena is part of GM Design’s broader global expansion. GM’s new Design West facility is currently under construction at the Global Technical Center

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panded advanced technology teams that will help accelerate GM’s goal of zero crashes, zero emissions and zero congestion. The new site is closer to technology centers on the West Coast and creates a recruiting opportunity with its proximity to leading universities and design schools. The investment also signals GM’s long-term commitment to maintain a physical presence in one of North America’s largest hubs for multidisciplinary design and cutting-edge innovation. The new campus, which sits on 8 acres, will expand GM’s capacity to support emerging business opportunities in areas of advanced technology, software integration and future mobility solutions. “Having a physical presence in Southern California’s technology epicenter is an integral part of our global design operations and this new innovation campus will not only expand our operations twofold, but offers access to the rich cultural diversity and talent in the region,” said Michael Simcoe, GM vice president of Global Design. “Our positioning will allow us to attract

in Warren, MI, and GM recently announced the expansion of the Advanced Design Center in Shanghai, China. GM’s advanced design team focuses on developing concept and future mobility projects that fall outside the scope of existing production vehicle programs. Creating alternative mobility applications can reveal opportunities for transformative innovation and help influence future GM products and services, while exploring new growth opportunities for the company. Recent examples of innovation and design work linked to GM’s broader growth strategy include: BrightDrop―the newly established commercial delivery and logistics business, backed by GM― and its all-electric ecosystem of products, software and services Cadillac’s personal autonomous concept vehicle and vertical takeoff and landing aircraft The lunar rover concept developed in partnership with Lockheed Martin The new facility will amplify GM’s role in the age of connected mobili-

20 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

ty, providing the latest tools, equipment and workspaces that have been tactically designed to foster synergy and ideation, including: A more efficient layout, designed to mitigate disruptions and increase efficiency of the various paint, metal and plastic workshops An increased footprint allowing for improved output of physical and virtual proof of concepts and show cars The ability to rapidly pilot visualization and immersive technology, including augmented and virtual reality An innovation lab for designing, implementing and validating new design tools An advanced user experience/ user interface design studio Dedicated collaboration, research and development space for strategic internal and external GM partnerships The additional space enables GM to greatly expand its breadth of output, leveraging the new location to

recruit top regional talent in disciplines of aerospace engineering, defense, automotive design, software development and advanced technology. “The collaborative nature of this facility will provide our advanced design team, cross-functional groups, prospective employees and external partners with the environment they need to continually redefine the boundaries of future mobility,” said Bryan Nesbitt, GM executive director, Global Advanced Design and Global Architecture Studios. Previous GM Design facilities in California include the Advanced Concept Studio in Newbury Park, from 1983–1996, and the current North Hollywood Studio, which celebrated its 20th anniversary in 2020. The current North Hollywood Design Center will continue to be used for advanced design operations as work on the new facility is completed through the second half of 2022. Source: GM

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Continued from Cover

Webinar Looks at Billing Indeed, BAR records indicate over a 12-month period ending in February 2020―pre-pandemic―more than two dozen auto body shops had their license revoked. Although industry surveys have found an increasing percentage of

auto body shops nationwide billing for removal of the solid waste― damaged parts that are removed, cardboard and plastic packaging from new parts, used masking paper and plastic, etc.―generated as part

of collision repair, California shops can’t do that, Molodanof said. State regulations allow shops there only to bill for disposal of “toxic waste or hazardous waste disposal, not other ‘non-toxic’ solid waste. Those types of costs would have to be covered under shop overhead.” According to the BAR, California shops billing for toxic waste fees must include the charge on the estimate authorized by the customer, must list an EPA number on the invoice, and must base the fee on a good faith estimate of the actual costs. “It can’t be a profit center,” Molodanof said. “You can’t just sort of pick out a number. A good faith estimate that the BAR would accept would be an annual estimate of what your toxic waste fees are, divided by the number of vehicles you do in a year.” Is an auto body shop obligated to disclose to an insurance company where sublet work was done on a vehicle? Molodanof said at least for

shops in his state, the answer is no. If something is sublet, that must be disclosed on the estimate to inform the consumer and get their authorization, Molodanof said, and if the customer asks specifically where the sublet work is being done, a shop must tell them. “But guess what, the insurance company is not the customer,” he said. “You do not have to tell the insurance company where the vehicle has been sublet.” Molodanof reminded California shops software and forms they are using created elsewhere may not comply “with the unique and specific BAR rules.” “I know a lot of times shops will say, ‘It was my software program,’” he said. “That’s their excuse. Well, the BAR does not regulate the software industry, and they don’t approve any specific company, so it’s up to you how you handle” making sure the paperwork you are giving customers complies. He said the BAR will provide after-hours in-shop compliance training for California collision repair shops who request it.

Continued from Page 14

Mike’s Auto Body groceries, Westall and his family have been relying on USCG members to lend their personally owned vehicles to relieve some of the strains of not having safe and reliable transportation.” The day’s speakers included Contreras; Coast Guard Chaplin Lt. Joseph Del Valle, who provided the invocation; Alameda Vice Mayor Malia Vella; Alameda Chamber of Commerce President and CEO Madlen Saddik; Alameda Chamber of Commerce Board Chairwoman Kelly Lux; FinishMaster Automotive Refinishes Sales Director Mike Sheedy; Golden Gate Chapter of the CPOA President Senior Chief Sain-R Edwards Jr.; CPOA Past President Senior Chief Rick Paauwe; Surface Forces Logistics Center Capt. Eric Jones; Liberty Mutual/ Safeco Insurance Senior Repair Network Specialist Manny Perrotta; Marsh; and Lupe Algood, training instructor at Mike’s Auto Body’s ADAC.

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All-Electric Future and communities that are more likely to disproportionately experience the effects of climate change. “We know 80% of EV owners today charge at home,” said Gerald Johnson, GM’s executive vice president. But, Johnson said, GM also realizes there are many people who don’t have a residence where they can charge a vehicle. Likewise, Johnson said GM supports an EV tax credit incentive that would include used electric cars, “to broaden the access” to EVs for more consumers. “We have an imperative to leave the world a better place than we found it,” Johnson said. Barra said GM wants consumers to be able to choose an electric vehicle as their only vehicle. Therefore, those consumers must have confidence that if they go over the vehicle’s range, which for GM is typically 300 miles, there’s a charging infrastructure to support them. Also, there have to be affordable options to buy EVs. “When we check all those boxes, our research shows that people say they are very interested in an electric vehicle,” Barra said. The philanthropic fund complements GM’s $35 billion investment in research and development of EVs and self-driving cars by 2025. Barra said GM is focused on bringing its current workforce along, while helping to build a diverse pipeline of talent, as GM gets closer to a zero-emissions future. GM will be adding jobs, but James said it is not sharing how many new jobs will be created. Barra said GM strives to be the “most inclusive company” in the world. That means creating an environment where everyone feels valued, comfortable to be themselves and emboldened to do their best work. It also means including them in a transition to EVs, Barra said. “Whether they’re an engineer or a teammate working on the assembly line in one of our plants, they need to know they are a part of our future,” Barra said. “This won’t happen overnight―it will happen over time and that time will allow

us to retrain employees. Our goal is, as we make this transition, we bring everyone along.” GM recently established GM Automotive Manufacturing Electrical College, which allows people to be retrained to work on EVs. As for the workforce of the future, Barra said, people need to have a technology basis. They don’t necessarily have to “be able to code,” but they should know enough about software and technology to be flexible to move to a variety of jobs, she said. GM has said it aspires for all of its light-duty vehicles to be zero emissions by 2035. Barra said GM’s focus on “equitable climate action” centers on four areas: The future of work: GM will prioritize its current salaried and UAW-represented workforce in its shift to EVs. GM publicly reiterated its support for the UAW to organize employees at the Ohio and Tennessee Ultium Cells LLC battery cell manufacturing plants. In May, the UAW told the Free Press it is prepared to battle GM at the new battery cell factories GM is building in Ohio and in Tennessee if the automaker won’t allow a simplified process, called a card check, to organize workers there. But days after the Free Press article, GM and its battery cell partner, LG Energy Solution, publicly expressed support for unions. They also acknowledged workers’ rights to unionize the joint venture called Ultium Cells LLC battery plants. When asked June 29 if GM would support a card check process at the battery cell plants, Johnson said, “We are supportive of the UAW. We are partners with the UAW and have been for decades. It is ultimately the decision of the employee group there, but we fully expect we’ll work together with the UAW moving forward at these plants as we do in our propulsion plants across the U.S.” EV access: GM has said it will bring 30 new EVs to market by mid-decade that offer customers a wide selection across a range of price points. The redesigned 2022 Chevrolet Bolt EV starts at $31,000 and the 2022 GMC Hummer pickup,

due out later this year, will start at $79,995. GM also announced partnerships that will use its Hydrotec fuel cells for rail and aircraft applications, which could deliver improvement in emissions beyond cars. Infrastructure equity: GM is committed to helping bring widespread charging stations and other solutions to address any charging concerns that can hinder EV ownership. Climate equity: GM will help fund organizations that are helping to find solutions to changes that will result due to climate change. GM and these groups will work at the community level looking at the future of work, EV access, EV infrastructure and other issues that arise from climate change. Starting June 29, GM is accepting proposals from outside groups for funding from its new Climate Equity Fund. Potential grantees should submit proposals aligned to GM’s four climate equity social outcomes listed above. The grant proposals will not

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go to other EV companies, Johnson said, “This is targeted for grassroot organizations in communities---targeting towards awareness, understanding and engagement in climate change and an EV future.” Barra said GM strives to make mobility safer, more accessible and more environmentally friendly and it will work with community-based stakeholders to identify their needs and find solutions. GM will advocate for inclusive and equitable climate change, renewable energy and transportation-related policies at the federal, state and local levels to help ensure a sustainable mobility future for all, she said. It will help fund organizations that provide equitable access to EVs. “It means that 20 years from now, as we look back at our company and our spending $35 billion to transform the company, we can be proud in how we did it,” James said. “And we’ll know that we didn’t leave anyone behind.”

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 25

Continued from Cover

SEMA Intensifies Advocacy are equipped with Advanced Driver Assistance Systems (ADAS). The bipartisan RPM Act is a top priority for SEMA, and will protect the motorsports industry against overreach from the U.S.

ed race cars. “We must continue to communicate with and educate elected officials about the issues that are important to the industry,” said Daniel Ingber, SEMA vice president of government and legal affairs. “We value the opportunity to meet with lawmakers and will continue to push for the rights of the aftermarket industry.”

including a number of lawmakers who signed on after meeting with SEMA-member business representatives and staff. SEMA urges racers and race fans to continue to reach out to lawmakers and demand that the RPM Act be passed into law. “We cannot let up on our efforts to push for the RPM Act,” said Ingber. “As the EPA attacks the motorsports industry, we must protect

“We must continue to communicate with and educate elected officials about the issues that are important to the industry,” — Daniel Ingber SEMA staff and representatives have connected with lawmakers this year to discuss key initiatives, including passage of the RPM Act. John Hotchkis, far right, of Hotchkis Performance, met with Rep. Ted Budd, center, to talk about top industry issues, challenges and concerns

Environmental Protection Agency (EPA). The bill clarifies the motorsports-parts industry’s ability to sell products that enable racers to compete and protects Americans’ right to convert street vehicles into dedicat-

The RPM Act was first introduced in 2016, after the EPA began interpreting the 50-year-old Federal Clean Air Act (CAA) to include race car conversions. SEMA has led the fight to advocate for passage of the bill, which was introduced earlier this year in the House of Representatives after enthusiasts sent more than 1.3 million letters to lawmakers urging them to pass the RPM Act. The bill currently has Congressional support from 82 co-sponsors,

our rights to modify vehicles. The RPM Act will clarify that it is legal to modify street vehicles into dedicated race cars and give the industry the assurance it needs to continue to legally compete.” With strong bipartisan support and engagement from the industry, the RPM Act is well positioned for passage in the current Congressional year. Committees have reviewed the bill in previous years and are prepared to expedite the bill.

Support for the bipartisan Recognizing the Protection of Motorsports Act of 2021 (RPM Act), H.R. 3281, continues to expand each day as members of Congress receive an outpouring of support for the bill from racers and the motorsports parts industry. Over the past few weeks, 12 House members have agreed to cosponsor the bill, including U.S. Reps. David McKinley (R-WV), Robert Latta (R-OH), Ann Kuster (DNH), Morgan Griffith (R-VA), Jim Hagedorn (R-MN), Scott DesJarlais (R-TN), David Kustoff (R-TN), Glenn Thompson (R-PA), Carol Miller (R-WV), Matt Rosendale (R-MT), Trent Kelly (R-MS) and Jared Golden (D-ME). McKinley’s support for the RPM Act is particularly noteworthy. McKinley serves as the ranking member of the House Energy & Commerce Subcommittee on Environment and Climate Change, which has jurisdiction over the legislation.

The congressman cosponsored the RPM Act bill as a result of the strong support that his constituents voiced for the legislation and the importance of the bill to the racing community in West Virginia and motorsports parts businesses. McKinley also cosponsored the RPM Act during the 2019-20 session of Congress. The RPM Act must be enacted into law to guarantee the right to modify street cars, trucks and motorcycles into dedicated race vehicles, and ensure the industry can offer parts that enable racers to compete. It is imperative lawmakers continue to be reminded of the importance of passing the RPM Act. Currently, 77 members of the House have cosponsored the bill. Click here to see the current list of RPM Act cosponsors, and don’t forget to send a letter to your U.S. Representative asking them to support the bill and fight for it to become law. For details, contact Eric Snyder at erics@sema.org. Source: SEMA

Source: SEMA

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RPM Act Gains Steam in the U.S. House of Representatives by SEMA Washington, D.C., Staff

“It was great to meet with lawmakers who seriously considered the RPM Act, which allows street vehicles to be converted into racing vehicles,” said Braden Liberg, director of compliance and calibration engineering of the Edelbrock Group. “Without the RPM Act there is a threat to the motorsports industry. Many lawmakers are unaware of the challenges facing our industry, and it’s imperative that we work with them to ensure that motorsports businesses can continue to operate.” Racers, race fans and related businesses are encouraged to continue to contact their legislators to pass the bill and #saveourracecars by visiting www.saveourracecars.com.

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Please contact these dealers for your Honda or Acura Genuine parts needs. HONDA CALIFORNIA

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 29

From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Use Tech to Kick ‘Timesuckers’ Out of Your Collision Repair Shop I was writing an email to one of my collision repair clients recently, and used Google to try to find a different term for “waste of time.” One of the results that popped up was “timesucker,” defined as “an activity to which one devotes a lot of time that might be better or more productively spent doing other things.” Spending time on something that doesn’t create value for you. There’s actually a noun for that. Timesucker. Who’da thunk? That got me thinking about some of the things in the collision repair industry that are timesuckers, taking up a lot of time for auto body shops. I was emailing the client because I’d been looking at some changes I’ve found in what the average collision repair business is spending on “SGA wages.” SGA stands for sales and general administration. Those are all the folks in your business who aren’t actually working on cars. Their wages are sometimes referred to as “non-productive employees,” not because they aren’t doing important work, but to separate it from the wages of technicians and those actually producing repairs. I knew from working with my 20 groups and private clients that several years ago, an average collision repair facility’s SGA wages were hovering around 10% of total gross sales, on average. From what I’m seeing now, that average has increased to between 13% and 14%. For example, a shop with $3 million in annual sales had been spending $300,000 in administrative wages, not including benefits; today, that number is closer to $390,000. That is a huge increase. I will admit the sample size I’m using to extract this data isn’t large. But regardless of the actual numbers, it’s no secret administrative costs in the collision repair industry have risen. You’re probably as aware of the reasons for that as I am. Some of it could be because insurance companies have shifted more and more

of their administrative tasks over to shops, both DRP and non-DRP. Another reason: It requires more administrative time just to research OEM repair procedures. And there are more administrative tasks involved in delivering an exceptional

customer service experience. And increases in labor rates generally haven’t kept up, so SGA wages continue to rise as a percentage of gross sales. So what should a shop owner do? Try to reduce SGA staff? It’s very difficult to try to get employees to do more with less. It just leads to stress and burnout for everybody. So what you really need to figure out is where the timesuckers are in your shop. What are things that require time that could be better spent on things that add more value? What is your team doing manually now that could be automated, that could be made easier using technology? A good place to start―I challenge the auto body shops I work with to take a new look at their management system. According to our “Who Pays for What?” surveys, more than 90% of shops are using a management system. But when was the last time you contacted the supplier of your management system and said, “Can I get some update training on this? Can you help me discover how to automate more of the things we do?” For example: Maybe you’re still calling customers to remind them of their appointment the next day. Could your system automatically send those customers a text mes-

30 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

sage reminder about it rather than your staff having to call? Maybe you’re calling potential customers who don’t schedule a repair right after an estimate. Is there a way to automate a text or email follow-up instead? When I work with a collision repair business on SGA wages, I like to start with a big easel pad or white board and ask them to write down everything they do manually so we can start figuring out if there on things on that list their management system will do for them. Ask your system provider: Are there ways I can use your software to do this task? That’s being proactive instead of reactive. Think about your parts processes, for example. Does your management system automatically show you the status of all parts, or do you have to chase this down?

If you have a designated parts person, there’s a chance he or she is spending up to half of their administrative time inputting parts invoices into the system. Does the system allow you to import a parts invoice from a vendor so you don’t have to enter it yourself? Bingo, you just knocked off 15 to 20 timesucker hours a week. How about rental car updates? Are you doing this manually, or can your management system update the Enterprise Entegral system automatically, for example? It all comes down to working smarter, not harder. In almost every collision repair business, there are timesuckers that could be eliminated using technology.

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Product Innovation

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

with Ed Attanasio

Tradiebot: New Collision Repair Training Software An Australian-based advanced soft- all over the planet, Tradiebot is suc- Simulators won’t replace inware company that develops immer- ceeding by helping people and or- structors and I-CAR probably isn’t sive technology solutions for training ganizations to perform a wide range going to hire robots to teach clasand informationwith delivery in theLedoux auto- of tasks―from applying primer to a ses―yet―but augmented reality is Gary motive and trade sectors has been fender all the way to plastic and me- here to stay because it’s effective getting rave reviews from students tal welding techniques. and easy to integrate into any traiand teachers worldwide. ning program. Tradiebot, founded three years Training on a virtual ago, develops cutting-edge systems system has proven to be using technology like augmented rehighly effective in many inality and virtualwith environments. Thedustries. Today, bus drivers Stacey Phillips se systems are integrated seamlessly can learn their routes via with automotive businesses such as augmented reality systems, auto body shops, car rebuilders/cusso your kids won’t be late to school, and doctors now tomizers and large collision repair Students and trainees can learn collision repair techniques practice on virtual patients centers. from their smartphones and other personal devices while in order to improve their The company has partnered with using Tradiebot skills and techniques. some key industry players including with Anderson Beth Rutter, Tradiebot’s di- Tradiebot can provide training universities, schools andMike government bodies to develop industrial innovati- rector of industry and customer en- for anyone who works in an auto on and digital transformation through gagement, North America, can see body shop, but currently its main foits training platforms. a future where schools or training cus is developing virtual reality pro With an enormous need for new facilities rely almost exclusively on grams to train entry-level refinish technicians, as well as augmented talent in the collision repair industry immersive training.

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reality technical information systems and a robotic 3D printing headlight Repairbot. As the world enters the age of electric vehicles, Tradiebot is prepared to be on the cutting edge when it comes to all of the associated training that will be required. “We can use virtual training for anything you can imagine, and with all of the processes associated with EVs, our solutions are ideal,” Rutter said. “We can train someone in every aspect of this industry, including auto diagnostics, estimating, aluminum repair, plastic welding and OE repair procedure, in some cases. Our systems work especially well when techs are trained for repetitive tasks.” A 2019 study on the use of virtual reality (VR) training for soft skills by professional services from See Collision Repair Training, Page 40

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Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon who 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.

GM Scales Back Post-Crash Inspections Requirement for Collision Repair Shops

Shop Showcase

General Motors recently rolled out be replaced; if not deployed, a via significant overhaul of the vehi- sual inspection of the module cover cle inspections it calls on auto body is sufficient, provided no “deformawith Ed Attanasio shops to perform post-collision, say- tion, distortion or indentations” are ing the changes in no way compro- seen. mise safety. There is also additional infor The automaker previously had mation from GM’s engineers about a long list of such inspections it re- many of the inspections, such as quired “after any collision,” includ- what to look for during visual ining inspection ofwith the steering wheel spections of different components. Ed Attanasio

Social Media for Shops

SEMA Show Goes On with Ed Attanasio

the needed vehicle repair procedures such as scanning or calibrations. “This is simply talking about what you should be inspecting during the repair process,” he said. “It is only part of the process. It doesn’t replace any of the other requirements we may have.” Eck was also asked about the issue of insurers refusing to pay for the post-crash inspections GM calls for. “It’s a touchy issue for me as an OEM. We’re not the ones paying the bill,” Eck said. “The repairers are the ones doing the work. Our job is to provide all the content and all the information necessary for the repairer to say, ‘This is what I need to do to repair the vehicle properly, safely, and to make sure it’s ready to go back on the road.’ And he should get paid for the work that is necessary for that to happen. But it’s hard for

Media and Publicity for Shops

General Motors now says most post-crash safety inspections are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.”

with Ed Attanasio

and column, the instrument panel Given only a seat belt inspecmounting points and brackets and tion is required in the event of colliseat mounting points. sion repairs that involve only “minor It now says most inspections outer body panel cosmetic distorare necessary only after “any colli- tion,” Eck was asked to clarify what sion that exceeds minor outer body types of repairs that might include. panel cosmeticwith distortion.” “If you’re looking at just the StaceyThis Phillips eliminates the need for some “pret- front quarter panel, no mounting ty invasive” steps, said John Eck, brackets or no structural support collision manager for GM, in a we- brackets are damaged,” Eck cited as binar about the changes, like “re- an example. “Or a fascia that might moving the headliner or…dash, or be cracked but the bumper bars armeasuring a steering en’t damaged and there’s no airbag withcolumn, Staceywhen Phillips all you’re doing is replacing a fascia deployment. Or that side mirror that without any structural repair.” comes off backing out of a garage.” One exception: GM wants “ev- A dime-sized dent on a rocker ery seat belt of every [GM] vehicle panel? “A rocker panel is not a cosmetinspected every time” a vehicle is in ic outer body panel,” Eck said, meanfor repairs, “regardless of the [crash] ing safety inspections must be done. with Stacey Phillips severity level or what’s being done” The document applies to all to the vehicle. GM vehicles, though it has been When damage is more than integrated into GM’s online repair “minor outer body panel cosmet- procedures only for 2021 and 2022 ic distortion,” GM has a list of the models so far. Use the search term “unrelated components that could be “inspection” to find the document subject to damage” for Stacey which further in GM’s online system for those with Phillips inspections are needed. vehicles. Until it is integrated with For each of these, the new doc- the repair information for older veument lists different steps necessary hicles, it can be downloaded at the based on whether there has been an www.genuineGMparts.com webairbag or pretensioner deployment. site. If a front airbag has deployed, for Eck emphasized the inspection example, the steering wheel must document in no way replaces any of

Shop Strategies

Body Shops Giving Back

us as an OEM to step in the middle of a conversation about a transaction that is happening between the repairer and the insurer.” He said he hopes insurers see the revised post-crash inspections as “a reasonable approach without compromising safety.” He also said vehicles continue to change, and the excuse of “Well, we’ve never paid for that in the past,” shouldn’t apply. “It’s what should we be doing now with what we have and what we know and what these vehicles are expected to do and perform relative to protecting the occupants inside and [pedestrians] outside the vehicle,” Eck said. GM acknowledged last year that among 17 automakers, it and Subaru were the only two that required extensive inspections following any collision, regardless of severity.

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June CIECAST Explores Future of AI in the Collision Repair Industry by Chasidy Rae Sisk

Artificial intelligence (AI) isn’t just a vision for the future―it’s here now, and as it becomes more prevalent in the collision repair industry, auto body shops need to prepare to navigate its integration into various technologies, or risk being left behind. During the June CIECAST, “The Future of AI in the Collision Industry,” Driaan du Toit, vice president of business development at Solera, and Evan Davies, Solera’s chief technology officer, shared insights on the ways AI is currently used in the collision repair industry, as well as its future uses. “We all know the world has changed significantly over the past few years, and so have the vehicle and collision industries,” du Toit began. “Innovation is rapid, and consumer needs are requiring and driving rapid changes, including automation in the repair and claims processes.” The COVID-19 pandemic impacted collision repair, even as the industry’s dynamic has been altered by increased vehicle complexity, including ADAS, autonomous vehicles and electric vehicles. All these changes require body shops to have differently qualified staff and calibration equipment and capabilities, du Toit noted. “Body shops and insurers must ensure accurate and safe repairs, according to standards, and these repairs, procedures and standards are increasing as equipment becomes more complex on a day-to-day basis,” he said. Technological advances create a collision repair industry ripe for AI, du Toit believes. The digital experience is convenient and fast for policyholders, resulting in predictable outcomes. For insurers, AI-assisted decisions aid with early determination of severity and accurate, consistent assessments, while shops using AI-assisted tasks increase billable hours and deliver better customer service. “Differentiation is key to survival for body shops,” du Toit said. Consumers are ready to adopt AI in the claims process. According to research conducted by Coleman

Parks and commissioned by Solera, 72% of consumers desire a fully automated AI claims and repair experience, while 83% would trust automotive claims driven by AI. More than three-quarters of consumers

viding appropriate repair procedures and data for verification and guidance. Technology helps make the decisions and allows the technician to focus more on the execution of the repair. The end goal for the body

would favor body shops offering more digital channels to quote, book and track repairs. “The consumer demand is relentless […] Automated and digitized workflows is no longer a wish for the consumer of the industry, but reality and actively being utilized today,” du Toit said. “And this data is a strong indication the market is keen to embrace a modern AI driven claims workflow.” Body shops benefit from digital adoption with faster cycle times, improved productivity and better customer service. According to du Toit, AI-driven processes also “drive efficiency and higher margins. Shops are increasingly pressured to have skills and capabilities to deal with more complex repairs and consumer demands towards automation. “The main benefits body shops can attain through implementing AI-driven technology in their businesses are faster cycle times across the repair process, as well as enhanced customer communications,” du Toit said. “Shops also enjoy productivity improvements because AI guides technicians through the appropriate repair procedures and minimizes the requirement for researching appropriate procedures. It helps employees in a body shop do the right thing without having to spend hours figuring out what that right thing is.” Alluding to the lack of skilled technicians entering the collision industry, du Toit pointed out AI-driven technology “lessens the burden for experience and knowledge by pro-

shop is to repair more vehicles and to be more efficient in doing so. “My guidance to body shops and MSOs is to embrace this technology today, or face the danger of being left behind.” du Toit examined how Computer Vision enables photo estimating in the claims process, providing an opportunity to bring speed and con-

34 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

sistency to the damage estimating process through scalable technology that can be trusted. An automated line-by-line estimate can be generated within a few minutes after photos of the damaged vehicle are submitted. Machine learning detects damages from images, removing subjectivity and increasing consistency. Insurers use AI technology to “enhance the decision making at first notification of loss in terms of triage, ensuring that total losses do not enter the repair workflow,” du Toit said. “The most relevant benefit for a body shop appraiser is the ability to go to the intake yard, take photos and obtain a line-by-line, detailed estimate in less than three minutes, a significant reduction in the time and skills required by a repair shop appraiser to complete and submit an estimate, taking less than 10 minutes on average.” du Toit recommends using AI “to validate and justify the appraisal already received from the insurer to make sure you’re not missing any actions, procedures or labor

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times. This will significantly reduce cost to deliver against the ‘new normal’ whilst driving significantly improved customer experience and customer satisfaction ratings. Body shops want to repair more vehicles, and by implementing this technology, you’ll have that opportunity. “The benefits for body shops and MSOs are vast,” du Toit added, suggesting a digital platform with enhanced automation, which allows for seamless interaction between all parties, is “the holy grail” and leads to accurate, consistent outcomes. “Body shops and MSOs that embrace this in their processes will most certainly lead and probably win this race,” he said. Looking at next-generation AI, Davies explained the objective is “to automate the claims management process as much as we can, and to do so in the appropriate way, by using advanced AI algorithms […] which allow us to enable human-level decision making and provide insights and information that can predict and project the direction of where a claim should go. By doing so, we can increase the efficiency and accuracy of

the claims workflow process.” The meta data collected through Computer Vision flows into the decision-making process of how to best create a dynamic workflow based on consumer needs and behaviors, which can be further augmented with more information about the vehicle itself. “Advanced AI algorithms allow shops and insurers to utilize information obtained during the claim initiation to flow into the decision-making process to create a dynamic workflow,” Davies said. “The outcome of AI across its entire life cycle will result in increased renewals, increased cash out settlements, reduced leakage, improved margins, auto authorization, increased straight through processing and claims auditing.” AI assists shops in determining the way to “best understand how to provide that decision-making for the best outcome of our consumers, our insurers and the body shop in that entire life cycle itself,” Davies said, as he discussed collision repair industry trending towards EVs and AVs, which are “highly specialized vehicles that require special skills and information.”

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“Start embracing and implementing this technology,” du Toit said. “Body shops will be allowed to focus more on executing repairs and less on the administration around estimating in the future. There will be less need for skills and experience as many things will be driven by the machine. Insurers will adopt AI driven workflows, and this will be the new normal. “Don’t fight it; embrace it! Humans will always be required to teach the machine and verify its results, but the need will become less as the AI gets smarter. Human interaction will be more focused on the outliers and more complex and sophisticated processes. “The willingness to adopt and implement AI has increased significantly,” du Toit concluded. “The demand is real. The change is real. And it’s here today.” A replay of the June CIECAST is available online.

Axalta to Acquire U-POL Order Axalta Coating Systems on July 7 announced it has entered into definitive agreements to acquire U-POL Holdings Limited from Graphite Capital Management LLP and other holders for about $590 million. U-POL is a leading manufacturer of repair and refinish products used primarily for automotive refinish and aftermarket protective applications. Axalta will accelerate growth of U-POL’s products by expanding market access through Axalta’s existing sales and distribution channels while leveraging U-POL’s distribution channels to extend the reach of its refinish coatings portfolio to new customers. U-POL’s talented global organization and its manufacturing plant and R&D lab in Wellingborough, England, bring important capabilities to the company’s commercial, manufacturing and technology organizations, enhancing Axalta’s ability to serve its customers across the globe. Source: Axalta

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Strategies to Help Auto Body Shops Navigate the Semiconductor Microchip Shortage by Chasidy Rae Sisk

The global semiconductor microchip shortage has been impacting vehicle manufacturing for the past year, but as the shortage persists, some experts anticipate its effects could be felt by the collision and automotive repair industries in the second half of 2021, potentially causing delays in cycle time as replacement parts become less available. Although collision repairers cannot control disruptions in supply, Jade Terreberry, director of dealer sales analytics at Cox Automotive, offered “7 Strategies for Navigating the Chip Shortage” during a recent educational webinar, presented by Autotrader and Automotive News’ PowerTraining. Moderator Terry Kosdrosky, audience engagement and social media editor for Automotive News, welcomed attendees and introduced Terreberry, who promised to identify “opportunities in areas where you can focus in the coming months to drive strategy, precision and accuracy to meet your goals. We’re going to cover seven very specific strategies, but the message is bigger than that.” Identifying the cause of the microchip shortage as “continued aftershocks of the pandemic,” Terreberry said, “A year ago, we couldn’t say how big this supply and demand imbalance situation would become, but we also know this industry is tough, and it’s gritty, and it’s smart, and we always use technology to change, adjust and really catapult us into the future. “If you think about the disruptions [in the past] that created global supply chain issues, we always make it through,” Terreberry said. “Not only do we make it through--in this industry, disruption is truly the catalyst that helps us change and find better ways to be more efficient and smarter to meet our consumers’ needs in better ways to ensure that we have a multi-pronged revenue stream approach to our businesses[…] We’re going to talk about driving our business into the future.” Before exploring the strategies, Terreberry emphasized the importance of auto body shop owners un-

derstanding the market, where their those and then gives you the ability ent things. If you’re not using that business is today and where they to work quality leads and spend your data to decision make, promote, optime doing quality things is more timize and determine where to spend want to be in the future. Shops only want three things: important than ever.” your time, you’re not using the data to make more money, to sell more Shops that want to make more the right way. But your competition orders and to create loyal, lifetime sales, increase profitability and es- is using it correctly, and that’s how customers, and every action taken tablish a loyal customer base should they’re finding that edge on you, day by the business should be designed “measure everything to be efficient by day.” with your time and your money,” Collision repair facilities, serto drive those direct outcomes. Terreberry said. This means vice shops and dealerships should It’s easy to “get caught “keeping your funnels full, also “be nimble and be aware. Conup in a lot of the minutiae of feeling like we are but using technology to sumers don’t stop wanting or needdoing things to move the your advantage and being ing their cars when there’s a chip needle within our business, laser-focused. For those shortage,” Terreberry said. “Use the but if we can’t measure of you that have used re- full picture of everything at your how it drives those direct porting, whether that’s in fingertips to make decisions. Be laoutcomes, we cannot be your CRM or whether that ser-focused with your time, and plan Jade Terreberry focused on it today,” Terreis in Envision, or within a your work.” berry said. “We have to stay focused third-party data aggregator’s tools to Terreberry offered additional adunderstand what’s working or what vice to dealerships related to streamon our goals.” Acknowledging the disruption not, I want to challenge you to take lining inventory acquisition to disvaries by industry segment, Terre- that one step further, because of the posal strategy, reimagining certified berry insisted each impacted seg- current market conditions. pre-owned segments and extending “And that one step further slow-moving inventory beyond the ment requires a specific strategy. “We have to be efficient with means using the data that exists there immediate market. the dollars we spend, we have to be to look in the rearview mirror, to tell She also discussed the imporextraordinarily careful and we have a performance story or to measure tance of focusing on fixed ops, notto understand what’s working and an ROI equation,” she said. “Today, ing, “Fixed operations [is] the most what’s not,” she said. “Ultimately, you have to look at so many differ- stable segment of revenue that you the market is different by the day, and consumer demand is also different. We know that these supply chain constraints are out of our control, but we have to focus on some of the things that are in our control for us to be able to close the gap and just focus on our market share. Supply chain constraints are out of our control, but how we handle them isn’t.” Terreberry offered several strategies for dealing with the microchip shortage that body shops may find useful. “Not all personalization is created equal. You cannot be everywhere all the time. This is quality over quantity messaging,” she said. “We believe our clients understand data, want to use data and want to be as efficient as they possibly can. So, we really started focusing on growLarge Inventory of Genuine Kia Parts ing this audience. Experienced Wholesale Parts Staff “Our biggest competitive differentiator is the amount of data we have and our ability to […] be able to translate that into a consumer ex213.342.0980 Fax perience, and into consumer adver1834 S. Figueroa Street tising that captures those folks at Mon-Fri 7am-7pm Los Angeles, CA 90015 the right place in the funnel, drives

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can have within your organization today. We all know people just started using their vehicles more. We expect to see more and more people return to the office place, but right now, 43% of consumers are saying that they plan to put more miles on their cars on 2021 than they did in the years before the pandemic, and 41% of consumers have told us that they have summer plans and are planning on using their vehicles to get there, versus other methods of transportation. “And so, we’re seeing this steady increase of consumers visiting [the Kelley Blue Book] Service and Repair Guide. Just this year alone, over 9 million service shoppers have gone to the service and repair experience, indicating that people are not only hitting the roads again, but that they have a different expectation and a different way that they want to interact than they ever had before.” Terreberry recommended businesses set specific goals around each strategy that it chooses to implement, but she also stressed the importance of considering conversion.

“Are you converting consumers into transactions?” she asked. “Sadly, not everybody is going to succeed, but ultimately, the market share and measurement of your success in today’s environment from a multi-pronged profitability perspective is what is going to help you navigate through […] database decisions that you can make to streamline in those areas and start moving the needle, and to streamline our processes and to train our people on how to meet consumers where they want to meet us with the experience that they want to have, because if you don’t, somebody else will.”

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Heat Waves Melt Critical Infrastructure in Pacific Northwest by Ameya Paleja, Interesting Engineering

Days after record high temperatures in the Arctic, the Pacific Northwest is facing heat waves that are melting cables and roads and shutting down schools because the buildings do not have the infrastructure to keep classrooms cool. Over the years, the area has witnessed moderate summers that barely need air conditioning. This is likely to change. Portland, OR, suspended its streetcar services after its power cables were melted by the punishing heat. State governments have responded by using pools, libraries, malls and movie theaters as cooling centers for the public. Local media reported Salem, OR, had run out of air conditioning units in anticipation of this wave. With an increasing demand for electricity, power grids are now under strain. “Power grids are designed around historical norms, and when we get these abnormal temperatures,

the strain on the grid is unprecedented,” Vivek Shandas, a professor of climate adaptation at Portland State University, told Gizmodo. Scientists have long warned global warming will bring unprecedented changes in climate, such as bringing heat waves to normally cold areas. The weather forecast from Seattle is quite telling. “As there is no previous occurrence of the event we’re experiencing in the local climatological record, it’s somewhat disconcerting to have no analogy to work with. Temperature records will fall in impressive fashion. Stay cool, stay hydrated,” NPR reported. The event is being attributed to a heat dome that has formed over the region and is being dubbed as a once-in-a-1,000 years event. But who’s to say whether it will remain as a once-in-a-lifetime event or not? In what experts are calling a major compromise, the Biden Administration is working on an infrastructure bill that will allow more emissions than focusing on clean energy.

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Americans Cut Driving Nearly in Half in Early Stage of COVID Crisis The COVID-19 pandemic and associated restrictions in the spring of 2020, such as stay-at-home orders, led to a drastic drop in U.S. road travel and a sharp increase in the number of people who chose to stay home all day. While the dramatic change in traffic patterns was widely noted last year, new research from the AAA Foundation for Traffic Safety’s New American Driving Survey (2020) provides compelling month-by-month data that examines the types of trips and the characteristics of the people who altered their driving habits. According to the research, the average number of all daily personal car trips plunged 45% in April 2020 and 40% for trips by all modes of transportation combined. The dip in travel moderated later in the year but remained below 2019 levels. “The COVID-19 pandemic has had a profound impact on our commute habits and patterns in the United States,” said Dr. David Yang, executive director of the AAA Foundation for Traffic Safety. “Findings based on our survey data provided some contextual information to understand better how this unfortunate event has affected the way we travel.” Daily trips for all modes of transportation fell from an average of 3.7 trips per day in 2019 to 2.2 trips in April 2020, before slightly recovering. After abruptly decreasing in April 2020, daily trips by U.S. residents rebounded somewhat in May and June and then remained at approximately 20% to 25% below their 2019 levels during the second

half of 2020. The survey results show early in the pandemic, reductions in travel were most substantial among teens and young adults (ages 16–24) and among those ages 65 and older. But later in 2020, reductions in travel were more uniform across various age groups. Other key findings: Daily Car trips: (as a driver or passenger) fell from 3.2 pre-pandemic to 1.8 in April 2020, before rebounding slightly to 2.6 trips for the rest of the time period. All travel by any mode: Daily trips in April 2020 by people living in urban areas dropped 42%, versus 25% for their rural counterparts, before leveling off to a 20% to 30% reduction in both groups for the rest of the survey period. Travel by transit, taxi or rideshare: The proportion of people who reported making any trips by transit, taxi or rideshare plummeted from 5.5% pre-pandemic to 1.7% in April of 2020, before leveling off at approximately 2.4% for the remainder of the year. Commuter Travel: Work-related travel by all transportation modes dropped by 40% in April 2020, likely reflecting a mix of layoffs, job losses and telecommuting. Commuting trips made by workers on days when they worked decreased by approximately 22% relative to pre-pandemic levels as well. In the following months,

commuting trips returned to approximately 26% below pre-pandemic levels among the population as a whole, likely due to increases in the proportion of Americans who were working. Commuting remained approximately 25% below pre-pandemic levels among workers on days when they worked, indicative of continued widespread telecommuting. Staying At Home: The percentage of the population who remained in the same place all day fluctuated between 9% and 14% before the pandemic but increased to 26% in April 2020, before stabilizing at levels slightly higher than those before the pandemic for the remainder of the year. The proportion of respondents who stayed in the same place all day quadrupled among those with the highest levels of education (from 5% in the second half of 2019 to 21% in April 2020), whereas it doubled (from 15% to 30%) among those who did not attend college.

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Despite fewer cars on the road and more people staying home, the National Highway Traffic Safety Administration (NHTSA) recently estimated 38,680 people died in motor vehicle traffic crashes in 2020---the largest projected number of fatalities since 2007. It is an increase of about 7.2% over 2019. “It’s counterintuitive to see the rate of traffic deaths spike when so many of us were driving less often,” said Jake Nelson, AAA’s director of traffic safety advocacy. “As the U.S. climbs out of the COVID-19 pandemic, highway safety officials will need to double down on curbing speeding, substance-impaired driving and failure to buckle up.” Source: AAA Michael

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Marital Status: The percentage of married people staying home nearly tripled from 8% in 2019 to 22% in April 2020, versus 12% and 29% for unmarried people. The numbers for both groups remained elevated over pre-pandemic levels for the remainder of the year.

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Continued from Page 31

Collision Repair Training Price Waterhouse Coopers discovered when compared to traditional training methods―self-paced online learning and classroom education― VR simulations helped employees become more confident in their ability to perform their jobs, taught them faster and created a stronger emotional bond to training content. They compared the three main forms of learning―classroom, elearning and VR training―and found people retained the imparted information more effectively using VR. Tradiebot’s smart platforms can fast-track training and hiring, which is more valuable now than ever due to a lack of a skilled and experienced workforce in collision repair, for example. “The global manufacturing industry is undergoing a transformation with how work is to be done. We need to be smarter, faster and more agile to accommodate the rapid changes in market demand,” ac-

cording to a company press release. “Tradiebot is developing the technology to adapt, repair and rebuild. Our systems bring knowledge and mastery of skills to your fingertips with a tap on a touch screen. Design detail and sophisticated machines

They’re able to absorb the data more quickly and remember it longer, as well as practice without experiencing anxiety. “By using our systems, students are able to see it, hear it and do it, and by doing all three, they are able

Making learning fun and less stressful, Tradiebot will hopefully attract new skilled professionals into the body shop world as a result

will take the time and tedium out of even the most complex preparation and repair processes.” By using Tradiebot, job candidates can hit the ground running as opposed to learning on the job.

to retain the information at approximately 90%,” Rutter said. “Since studies claim that people retain 5% of what we see one hour after it’s presented and roughly 30% after reading it, you can see that the in-

crease in retention is significant with VR.” Another big part of the Tradiebot approach revolves around the fact it’s done everything it can to make all of its training modules fun and engaging in order to create a comfort zone to promote learning. “When the user puts on their gear and jumps into the paint booth, they are intrigued, and once they realize that it’s fun, they are less anxious and more open to learning,” Rutter said. Will Tradiebot help get more young people interested in becoming collision repair professionals by making training easier, more hands-on and fun? “If you look at it, the collision repair industry doesn’t do a lot to attract new talent, by starting them out at minimum wage and in many cases, saddling them with major debt from student loans,” Rutter said. “But, if Tradiebot can get students interested in learning through full immersion and virtual reality, the future for this industry will get a much-needed boost with a fresh and skilled labor force.”

Tesla, Volvo Among 5 Carmakers Under NHTSA Investigation for ADAS Crashes by Joey Klender, Teslarati

Tesla, Volvo, Cadillac, Lexus and Navya are five car companies under investigation by the National Highway Transportation Safety Administration (NHTSA) for crashes that occurred while Advanced Driver Assistance Systems (ADAS) were activated, the agency said. The NHTSA released a list of 36 total accidents that occurred in the U.S., dating back as far as June 2016. Of the 36 accidents, 30 involve Tesla vehicles. Not all of the Teslas listed were using Autopilot, however. Three of the Tesla cases listed are described as “Electric Vehicle-Not in Autopilot,” according to the list the NHTSA provided to Teslarati. Additionally, one incident hasn’t been confirmed as to whether or not a Tesla Model S used Autopilot at the time of its crash. Five accidents are listed as “More Over Law Special Study,” while one is listed as “Heavy Truck Underride.” The NHTSA did not provide a statement.

Tesla’s Autopilot systems, despite being proven through statistics to make vehicles nearly 10 times less likely to be involved in an accident compared to a human driver, are still widely considered controversial by many who have not experienced the system. Autopilot is not fully autonomous, and Tesla has never claimed its vehicles should be operated without the driver paying attention to road conditions or surroundings. However, the company has implemented several safety features to ensure drivers are paying attention during the use of Autopilot or the Full Self-Driving suite. On the list are several notable recent accidents, including the Model S crash in Texas in April that killed two after catching fire. The NHTSA already performed a preliminary investigation on the accident and determined Autosteer could not have be engaged where the accident took place. The NHTSA said: “The vehicle was equipped with Autopilot, Tesla’s advanced driver assistance system. Using

40 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

Autopilot requires both the Traffic-Aware Cruise Control and the Autosteer systems to be engaged. Two NTSB tests of an exemplar car at the crash location showed that Traffic-Aware Cruise Control could be engaged but that Autosteer was not available on that part of the road.” Another accident, listed as “Heavy Truck Underride,” involved a Model Y in Detroit. Despite the local police department stating reckless driving was the likely cause of the crash, the NHTSA is still investigating the accident. Volvo is among the other manufacturers on the list, with a March 2017 and a March 2018 accident involving its XC90. The 2017 accident resulted in minor injuries, while the 2018 incident was fatal to the passenger. The XC90 was using ADAS during both accidents, the NHTSA chart says. The Lexus RH450H, the Cadillac CT6, listed twice, and the Navya Arma were also all listed with ADAS case types, but all of these vehicles had no injuries due to the accidents.

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Art, Innovation and Car Design Collide in the Life of Michael Santoro by Ed Attanasio

I think everyone can agree a well-designed car is a piece of art, like a Donatello or a Rodin. While it’s true automobiles are created to transport people and things, that doesn’t devalue their design or aesthetic appeal, which is why some call them “sculpture in motion.” A vehicle starts out as a series of illustrations that eventually become a clay sculpture. Throughout the process, a wide variety of sometimes conflicting priorities must be considered when creating a car design. These include the needs of the driver and passengers, the ability for the design to be manufactured and the hopes and dreams of the designer who created it. Michael Santoro of San Diego, CA, is a former automotive designer who now teaches car design. He founded and oversees a company making Apple accessories, which has met with huge success, and is also a highly-respected artist known

for paintings of his favorite Formula it back to its iconic roots while pushOne drivers, including Niki Lauda ing it forward into the new century. and Ayrton Senna. Landing a job as a car designer A native of New York City, San- with Chrysler at 21 was unheard of. toro graduated from the world-re- As the new kid on the team, Santoro nowned High School of Art was able to bring a young & Design, where he was a and fresh perspective to evmember of the first-ever inerything he worked on for dustrial design high school the carmaker. program in the country. “I knew that this was After graduating from a great opportunity and a Pratt Institute with a bachedream job,” he said. “You lor’s degree in industrial de- Michael Santoro have a better chance of sign, Santoro was accepted of San Diego, CA, is playing in the NFL than you as the first-ever post-gradu- a former automo- do becoming a professional tive designer and ate design intern at Chrysler car designer in the United inventor who now Corporation where, upon teaches car design States, so I was excited to completion, he received an get a chance.” and oversees his company MacCase, offer to join the staff. Santoro was able to see Santoro spent six years the creators of the a car design team in action Apple-specific case as an automotive designer and learned as much as he market at Chrysler, where he crecould. ated the groundbreaking cab-for- “Within a given studio, each ward exterior design of the 1995 designer creates his or her own proCar of the Year, the first-generation posal. You’re competing with your Chrysler Cirrus and its sister vehi- coworkers for the opportunity for cle, the Dodge Stratus. Before leav- your design to go into production.” ing Chrysler, Santoro penned the Most production programs are 1996-2006 Jeep Wrangler, bringing on four-year cycles. Once the vehi-

Tesla Vision Will Capture Hazards, Turn Signals, Hand Gestures, More, Says Musk by Maria Merano, Teslarati

In a recent set of posts on Twitter over the July 10-11 weekend, Tesla CEO Elon Musk shared some capabilities that Tesla Vision could receive in the near future. These include the ability to detect turn signals, hazards, police and ambulance lights and even hand gestures. Musk’s update initially came as a response to a video from FSD Beta tester Eli Burton, who spent the weekend testing the capabilities of FSD Beta V9. In one of his tests, the Model S Performance owner noticed Tesla Vision now captures and renders the tail lights of other vehicles as they waited in an intersection. Musk commented on the post with his update, and in a later response, said FSD Beta should also react and respond to ambulance and police vehicles when their lights are on. Musk further said FSD Beta would later gain the ability to “listen” for sirens and alarms, which

should help Teslas handle and react appropriately to emergency vehicles like ambulances and fire trucks, as well as police cars. Musk’s mention of FSD Beta’s “listening” capability is interesting, especially since Teslas today seem to be only equipped with in-cabin microphones. Considering a car’s cabin would likely be saturated with sounds from media being played on the vehicle, developing an accurate system to detect sirens and alarms may be a very challenging endavor. Even without the ability to “listen” for alarms and sirens, however, the upcoming improvements for Tesla Vision outlined by Musk would most certainly make Autopilot and the Full Self-Driving suite safer and more robust. Every update to Tesla Vision is a step toward the company’s long-term goal of achieving autonomous driving, after all, and the ability to detect and interpret lights and hand gestures plays a key role in reaching that target.

42 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

cle is in production, they will normally do a facelift every two years, at which point they will do things like tweaking the front and rear fascia or adding new wheel options. For a car’s exterior, designers work with industrial sculptors to create full size models in clay over a wood and foam structure. Once the model is complete, it’s presented to upper management, who choose from the various proposals presented. In this case, it was Chrysler CEO Lee Iacocca and Vice Chairman Bob Lutz, among others. For the Cirrus/Stratus program, eight full-size clay models were done. The board liked Santoro’s design for the Cirrus and it went into production, eventually chosen as the 1995 Car of the Year. Did Santoro get a bonus when he and his team received the highly prestigious award? “No, but I got to see my design made real and put into the world. That’s a happiness no one can ever take away.”

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When a car is created, a series of safety features are integrated into the design with a goal of protecting the inhabitants while still looking cool. “Much of what we made was predicated on how to mass produce it and whether or not it was safe,” he

things that any design team has to keep in mind all the time.” Fewer parts mean easier and less complex repairs while saving money, Santoro said. “We concentrated on using fewer parts with a focus on things like fit and finish, as well as making everything lighter and more aerodynamic. If a bumper assembly consists of nine parts as opposed to 20, for example, the replacement cost will be lower and the repair logically will be easier when it goes into the body shop.” After six years with Chrysler, Santoro returned Santoro is also well-known for creating amazing exteriors home to New York City, for race cars where he went from designsaid. “We were always made aware ing automobiles to airplanes, as a of it and communicated with engi- consulting designer for Walter Dorneering on a regular basis. win Teague, America’s oldest de “We also had to look at any design consultancy. There he worked sign from a collision repair perspec- on numerous programs including tive. When the car gets in a wreck, creating conceptual design interiors how will the technician be able to for Boeing Aerospace and the profix it? Will they have to remove a duction interior for the Gulfstream lot of parts to do the job? What are G5 aircraft. the replacement costs? These are the After two years in that position,

Santoro returned to automotive design work, as a consultant working on the Vector M12 supercar and Vector M12 “American Anthem” show car shown at the North American International Auto Show. Additional projects followed, including the Lamborghini Jota show car. They made a grand total of 14 Vectors with 12 still in existence, which means you might see one occasionally at a SEMA Show, for example. In 1999, Santoro took his skills designing cars to create the MacCase, the company that would produce the world’s first Apple-specific case. It was an instant success and lauded for its originality and custom fit. MacCase now features the Premium Leather Collection and ships to Apple users worldwide. Santoro’s painting career began when he was only 17 in New York City. “I did a drawing and took it to a local gallery called l’art et l’automobile and the owner, Jacques Vaucher, encouraged me to do more,” he said. “That piece sold quickly and pretty soon Jacques was asking for

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more art. It was pretty cool to be a successful artist in New York as a teenager!” Santoro’s career as a car designer has been written about in publications like AutoWeek, Automobile, Road & Track, The Detroit Free Press and Car Styling. He was also featured in a New York Times article in 1994, “The Designers Who Saved Chrysler.” Santoro has also been a part of student design reviews at the College for Creative Studies in Detroit, MI, and Art Center College of Design in Pasadena, CA, as well teaching transportation design at Pratt Institute in New York City. He currently teaches two courses, Introduction to Automotive Design, Professional Techniques, Tips, Tricks and Secrets for the Aspiring Car Designer and Automotive Design Level 2, both of which are currently available on Udemy.com.

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The Best U.S. Cities to Own an EV, According to Research by Steven Loveday, Inside EVs

Electric cars are becoming more and more popular, and that means some cities are racing to become more EV-friendly. AutoInsuranceQuote.com has put together an extensive EV study

to help determine which cities are the best---and worst---to own an electric car. Aside from ranking U.S. cities related to the benefits of EV ownership, the study also provides opinions and experiences from current electric car owners, a long list of

frequently asked questions and much more. There’s also a detailed description of the 10 best cities explaining precisely why they’re the best. Finally, the site ranks a total of 50 cities from best to worst when it comes to EV ownership.

The cities are ranked based on three specific metrics: charging stations per capita, local government EV incentives and cost of electricity. California is the only state with multiple cities on the list, which comes as no surprise. The study also notes the Midwest is the only region that doesn’t have a city in the top 10. The 10 best cities offer an average of 27 government incentives, and charging stations per capita range from 25 to 110. We should also probably mention a few of the worst cities to own an electric car, though you can visit the study to see the whole list and all of the details. At the No. 50 spot is Milwaukee, preceded by Jacksonville, FL, at 49, Detroit at 48, Houston at 47, and Cleveland at 46. The study includes a wealth of other information worth checking out.

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Toyota and Lexus Vehicles Now Covered by Solera’s VIN Service, AudaVIN Solera Holdings, Inc., a global leader in data, applications and services for insurance and automotive industries, announced June 22 the expansion of Toyota and Lexus makes and models to its VIN service, AudaVIN®. With this addition, AudaVIN now covers more than 80% of vehicles in the U.S. AudaVIN is an automated vehicle identification service that integrates seamlessly with Qapter, Solera’s AI-based estimating, repair and evaluations solution. AudaVIN helps customers automatically identify a vehicle leveraging build data from manufacturers, to enable accurate pre-selection of data including graphics, parts and labor relevant for damage capturing. The detailed specification analysis reduces inspection time and provides accurate part identification the first time for improved first call settlement rates, and greater estimate and valuation accuracy. Vehicles are increasingly equipped with dozens of electronic components and safety equipment making it more difficult than ever to identify during visual inspection. As a result,

collision repairers and automotive insurance companies often spend 20 minutes or more to research and calculate accurate damage estimates. AudaVIN reduces the risk of calculation errors and the time it takes to generate an estimate, giving this time back to its customers by instantly delivering an accurate and detailed estimate. “Solera’s goal has always been to provide its customers with a claims process that is simple, efficient and accurate,” said Evan Davies, chief technology officer. “AudaVIN is a one-of-a-kind solution that combines VIN look-up at the OEM-level with Solera-built data. Integrated into our Qapter claims workflow, AudaVIN renders a 3D image that enables body shops to quickly capture vehicle damage and generate an accurate estimate.” The AudaVIN solution supports light vehicle brands including Toyota, Lexus, Nissan, Mercedes-Benz, Ford, Chevrolet and BMW, to name a few. For more information, visit Qapter.com. Source: Solera

46 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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Chrysler Top Ranked for EV Car-Shopping Experience Stellantis NV’s Chrysler brand ranked highest in the 2021 Pied Piper Omnichannel PSI® for Electric Vehicles (EVs) Auto Industry Study. The study answered the question, “What happens when EV customers shop for a vehicle by first visiting the brand’s website or a dealership website, and then visiting a dealership in person?” BMW was ranked second of the 21 battery electric or plug-in hybrid EV brands evaluated, followed by BMW’s Mini brand. How customers shop completely changed in the late 2000s with widespread acceptance and use of smartphones. More recently, brands that traditionally relied only on in-person sales have embraced new online digital retail tools. For the auto industry this has meant the appearance of “Buy Now” or “Buy from Home” buttons on brand and dealer websites, along with other online digital retail tools like inventory search, payment calculator, trade-in value estimator, test-drive request and others. Source: Pied Piper Management Company

Cadillac SRX, Saab 9-4X Recalled Again for Toe Links by David A. Wood, CarComplaints.com

A General Motors rear toe-link recall has been issued a second time for 2010-2016 Cadillac SRX and 2011-2012 Saab 9-4X vehicles. More than 380,000 vehicles are recalled because the rear suspension toe-link adjusters may not have been tightened properly. Owners are warned to not drive their vehicles if they experience any of these warnings: • Service Traction Control message • Service Stabilitrak message • Stabilitrak warning light stays on or flashes intermittently • Service Rear Axle message • Chimes in combination with warning messages • Sway or wander while driving • Loud metallic or other unusual noise from the rear suspension • Off-center steering wheel • Uneven wear between the rear tires A customer who experiences these warnings should have the vehicle towed to a GM dealership. GM recalled 2010-2015 Ca-

dillac SRX and 2011-2012 Saab 9-4x vehicles in September 2014 because the jam nuts in the rear toe-link adjusters may not have been torqued to specification. GM dealers were told to inspect the toe links and increase the torque or replace the toe links if they were loose or damaged.

After the 2014 recall GM received reports of loose toe links in vehicles that had been repaired, so the automaker checked dealer repairs and determined some dealers had failed to follow instructions. GM revised the service procedures and also made them available to independent repair shops. GM further updated the service information in October 2020 to instruct technicians to always

replace the toe links rather than adjusting them after an alignment or other service. Then in November 2020, the National Highway Traffic Safety Administration (NHTSA) opened an investigation into toe-link problems on 2010-2015 Cadillac SRX SUVs. At least nine SRX owners said the rear toe-link adjusters separated in vehicles that had been repaired during the recall. On June 7, NHTSA informed GM it had received additional toelink complaints and the problem was severe enough to conduct another recall. All the vehicles recalled in 2014 will need to be repaired again. Dealers will replace the adjustable toe links with non-adjustable toe links once owner recall letters are mailed Aug. 9. Cadillac SRX customers may call 800-458-8006 and Saab 9-4X customers may call 800-9559007. GM’s recall reference number is N212340980.

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Automotive Recyclers Applaud Executive The Automotive Recyclers Association (ARA) issued a statement July 14 in response an executive order signed by President Joe Biden on July 9 calling on the Federal Trade Commission (FTC) to institute rules to curb anti-competitive restrictions that limit consumers’ repair choices. The executive order includes dozens of specific initiatives, including a requirement the FTC undertake a rulemaking on repair and maintenance. “The ARA has been a member of the national Right to Repair Coalition for several years,” said ARA President Scott Robertson. “Consumers and the general public are supportive of this issue, and I am encouraged by the recognition it has received within our federal government.” ARA has met with the FTC on multiple occasions to discuss attempts by automobile manufacturers to push Recycled Original Equipment (ROE) parts out of the market with misinformation campaigns and barriers to consumer choice. Source: ARA

Tesla Wanted $16,000 for a Simple $700 Model 3 Repair by Ameya Paleja, Interesting Engineering

How much does one pay for minor repairs for a Tesla car? As one Tesla owner found out, almost half of the vehicle price. After hitting some debris on the road that damaged his battery pack, the owner visited a Tesla service center, where he was handed a repair estimate of $16,000. Unable to foot that bill, the owner sought help from a non-authorized garage, which diagnosed and resolved the issue for $700. The standard Model 3 Tesla is rear-wheel drive, with an option to make it all-wheel drive. For users who exercise this option, the company puts a drive unit in the front, next to the battery pack. The cooling system runs through the car and connects to the battery pack through a nipple. For this Tesla owner, the debris resulted in the coolant leaking at the nipple of the battery pack. But since the nipple was molded outside the battery pack, which is not serviceable at a Tesla Service Center, they could only offer

Average New-Vehicle Price Rises $2,000 from Last Year, Hits All-Time Record High for May The estimated average transaction price for a light vehicle in the U.S. was $41,263 in May 2021, according to the analysts at Kelley Blue Book. New-vehicle prices increased $2,125, up 5.4%, from May 2020, while increasing $493, up 1.2%, from April 2021. “Last month’s average transaction price performance highlights an all-time high in year-overyear growth for the month of May,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “Many manufacturers reported year-over-year gains in average transaction prices. The largest increase came from Mitsubishi, up 12% from this time last year.” As one of the most affordable manufacturers with the lowest average transaction price in May, Mitsubishi reported recovery within the retail space moving into the second quarter of the year. A majority of the models within the Mitsubishi lineup experienced yearover-year average transaction price increases in May 2021.

The latest Outlander and Outlander PHEV are Mitsubishi’s highest-priced vehicles, with MSRPs starting at $25,795 for the 2022 Outlander and $36,295 for the 2021 Outlander PHEV. Overall, the Outlander model line saw sales more than double for May 2021 when compared to May 2020. The inclusion of the PHEV trim level within the model lineup aided sales and pricing gains. Despite the large gap in average transaction prices for luxury and non-luxury segments in May 2021, non-luxury vehicles had a larger year-over-year price increase at 4.9%, up $1,805, while luxury vehicles climbed 2.9%, or $1,597, from this time last year. Standard full-size SUVs and pickup trucks contributed to the growth among non-luxury segments. The third and fourth highest-priced models within the segment include the GMC Yukon XL ($79,695) and Yukon ($77,031), both priced substantially above the industry and segment average. Source: Kelley Blue Book

48 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

replacement of the entire battery pack. This resulted in the quote shooting up to $16,000. Unfortunately for the owner, his insurance did not cover damages due to road debris, forcing him to look elsewhere.

He found help at Electrified Garage, which diagnosed the problem and found a simpler solution. They cut off the nipple and then threaded it back into the battery pack with a $15 brass fitting that can be found at any hardware store. They were able to fix the leak and charged the owner $700

for labor and their expertise. The real question is whether this is safe. Electrified Garages says, unlike internal combustion engines that generate a lot of heat, electric cars operate at temperatures well below 140 degrees. Most of the heat comes from the lithium-ion batteries, which they tested during the fix. Such instances reiterate the need to allow owners the Right to Repair, whether it be smartphones or smart cars. The increasing usage of technology has allowed companies to force subscriptions or channel after-sale services only through limited outlets, causing inconvenience and larger bills for device owners. This is set to change after President Biden is expected to allow Right to Repair in different sectors, beginning with agriculture. Interesting Engineering reached out to Tesla for their comments but hadn’t received a reply yet.

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autobodynews.com / AUGUST 2021 AUTOBODY NEWS 49

AAPEX 2021 Opens Nominations

LKQ Corporation’s Elitek® Vehicle Services Expands into Remote Automotive Diagnostics and Programming

AAPEX is now accepting nominations for the second annual Shop Owner of the Year, Service Advisor of the Year and Technician of the Year awards. The awards recognize and elevate the essential services that auto repair professionals provide to keep the world’s 1.4 billion vehicles on the road. Nominations are due Sept. 1 and should be submitted online at www.aapexshow.com/serviceawards AAPEX 2021 will take place Nov. 2-4 at the Sands Expo and Caesars Forum Conference Center in Las Vegas. An independent panel of shop owners and industry leaders will select the award recipients. AAPEX will announce and honor recipients of the three prestigious awards Nov. 2, during the Keynote Session at this year’s in-person event. The AAPEX Service and Repair Awards were established in 2020. Source: AAPEX

Effective June 22, Elitek Vehicle Services, LKQ’s diagnostic services business, is expanding beyond onsite mobile diagnostics and repair to also include remote automotive diagnostics and remote programming. Repair facilities can now call one company, Elitek, to service all their diagnostic service needs. Since 2019, LKQ’s Elite Electronics and VeTech Automotive Electronics brands, now branded Elitek Vehicle Services, has grown to become the largest independent provider of mobile, on-site vehicle services to automotive collision repairers, mechanical repairers and national fleets in the U.S. With the addition of remote diagnostics, Elitek can provide shops with a seamless, end-to-end process and value proposition. Remote diagnostics: Shop technicians can plug in an OBDII device that remotely connects the vehicle to Elitek’s call center. The technician, with support from a centralized Elitek diagnostician, conducts the diagnostic scan(s), produces a scan report, enables remote programming where applicable and invoices for the

service. Mobile diagnostics: If additional onsite services are required, including ADAS calibration or mechanical, Elitek’s mobile service can be deployed to complete the repair, using an array of OEM software, tools and certified technicians. Increasing vehicle technology leads to more complex repairs, and Elitek is uniquely positioned to partner with the repair community to diagnose, repair and calibrate vehicle electronics, including ADAS systems. The combination of remote and mobile diagnostic services offerings puts Elitek a step ahead of the competition and serves customers better than ever with mechanical, AC service 1234YF, module programming, electrical repairs and an array of diagnostic services. Owning a full range of OEM diagnostic tools and offering these numerous services to automotive repair facilities helps improve a shop’s cycle times, reduces rental terms and improves the customer service experience, for both the repair shop and the vehicle owner.

“With the formation of Elitek, LKQ now provides the most comprehensive diagnostic services in the repair industry,” said Terry Fortner, LKQ’s North America vice president of sales and marketing. “Elitek is the premier provider of both remote and mobile diagnostic services. This expanded offering allows us to be more responsive to our customers, including those outside of our current mobile servicing locations.” “Our goal is to continue to provide superior customer service,” said Don Smith, director of Elitek’s Remote Division. “With the addition of remote services, we can be more responsive to a broader range of customers. And with LKQ’s Promise of Calibration, customers have the additional peace of mind in knowing that Elitek will stand behind the work performed.” For more information on Elitek’s remote capabilities or to pre-order a remote scanning device, contact Smith at dgsmith@lkqcorp.com, visit the website at https://elitekauto. com or call 888-8-ELITEK. Source: LKQ Corporation

GM Recalls 410,000 Trucks with Dangerous Airbag Inflators by David A. Wood, CarComplaints.com

More than 410,000 Chevrolet and GMC trucks are recalled because the roof-rail airbag inflators could rupture. Some of the trucks were recalled in December 2020 for the same problem, and this latest recall supersedes the previous recall. Included in the recall are 2015-2016 GMC Sierra 1500, 2500 and 3500 and Chevrolet Silverado 1500, 2500 and 3500 trucks that may have roof-rail airbag inflator end caps that may detach from the inflators. It’s also possible the airbag inflator sidewalls may rupture. The roof-rail airbag inflators are located above the headliners and may contain defects that cause the separations of the inflator end caps or splitting of the inflator sidewalls. The automaker says compressed gas will escape from the inflator, and the end cap or possibly other components can be launched into the vehicle and injure truck occupants.

GM says corrosion inside the inflator may occur from moisture because of how the supplier manufactured the inflators, and the problem can worsen in high temperatures. Three roof-rail inflators ruptured in 2015 Silverado trucks in June, one in Florida and two in Texas. The trucks weren’t occupied when the inflators exploded, and in all three cases the steel inflator sidewalls split open and released gas stored in the chambers. This was enough to convince General Motors to order the truck recall. General Motors dealers will replace both front roof-rail airbag modules. Interim owner recall letters are expected to be mailed Aug. 16, then truck owners will receive second notices when replacement parts are available. GMC Sierra and Chevrolet Silverado owners may contact GMC at 888-988-7267 or Chevrolet at 800-222-1020. GM’s recall reference number is N202324251.

50 AUGUST 2021 AUTOBODY NEWS / autobodynews.com

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Signature Collision Centers Joins Forces with Crash Champions Crash Champions, a leading independent collision repair company, announced June 22 it has entered into an agreement with Signature Collision Centers, one of the largest family-owned, independent collision repair companies on the East Coast, by which Signature will join the Crash platform through a strategic transaction.

Following the transaction, Signature founder and CEO Charles “Chuck” Pipkin will retain an ownership stake in Crash and transition to a new role as an executive board member with the company, where he will work closely with Crash Champions founder and CEO Matt Ebert to continue growing the business at the national level.

“This partnership represents a collaboration between two of the leading names in the U.S. collision repair industry,” — Matt Ebert The newly combined company will operate under the Crash name and banner, creating a nationwide platform with 118 locations strategically located across 12 states and Washington, D.C. Headquartered in Annapolis, MD, Signature operates 24 high-performing locations across states throughout the greater Mid-Atlantic and Southeast, including Pennsylvania, Maryland, North Carolina, Florida and Washington, D.C.

“This partnership represents a collaboration between two of the leading names in the U.S. collision repair industry,” said Ebert. “Our growth strategy is rooted in identifying the right shops and owners who can be true partners and stewards of the Crash brand. This means not only creating near-term value when they join the company through a transaction, but creating long-term value through continued contributions as members of our leadership and own-

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ership teams. Chuck and his team are the ideal partners, and we’re excited to welcome them to the Crash family and extend our brand to the East Coast.” “This is a monumental moment for Signature, one that we’ve been working towards for a long time,” said Pipkin. “Since our founding in 2004, we have been committed to building this business with a very specific vision and set of values. As we looked to the future, it became clear that we needed to join forces with like-minded individuals in order to take our business to the next level and achieve the full value of our platform. “Our search for that partner started and ended with Crash Champions, which not only has the team and resources to accelerate our growth, but shares the same operational ethos and commitment to excellence,” Pipkin said. “This is the next logical step for our business, an exciting new chapter and an ideal opportunity to continue building our legacy under a new powerful name and brand.” This will be the 42nd successful transaction Crash Champions has

completed since July 2019. Through these transactions, Crash has transformed itself from a regional player operating eight locations in the greater-Chicago area to one of the fastest growing collision repair companies in America, with what will be 118 locations across 12 states―California, Colorado, Florida, Illinois, Iowa, Kansas, Maryland, Missouri, North Carolina, Pennsylvania, Ohio and Wisconsin, as well as Washington, D.C.―at the closing of this transaction. “We have enjoyed significant growth over the last two years by carefully planning and executing a national M&A strategy, including identifying the right targets, partnering with talented management teams and properly integrating each operation into our platform,” added Ebert. “Our pipeline for quality M&A remains strong, the Crash brand still has significant room to grow, and we look forward to continuing our marketplace expansion.” Terms of the deal were not disclosed. Source: Crash Champions

16 State Attorneys General Asks EPA to Hold All States to Emissions Rules The attorneys general of 16 states on July 6 urged the U.S. Environmental Protection Agency to refrain from reinstating California’s waiver under the Clean Air Act which gives that state, and only that state, the authority to regulate which cars the rest of the nation drives. The attorneys general of Ohio, Alabama, Nebraska, Arkansas, Oklahoma, Georgia, Kansas, South Carolina, Indiana, South Dakota, Texas, Kentucky, Utah, Louisiana, West Virginia and Mississippi sent a letter July 6 to EPA Administrator Michael S. Regan urging the agency to continue the policy under the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. The letter argues the U.S. Constitution recognizes the states as equals, and does not give California special rights denied to every other state. Under the Clean Air Act, the prior administration created national standards for vehicle carbon emissions for model years 2021 through 2026, treating all states as equal sovereigns subject to one

federal rule. Recently, the Biden Administration proposed California, and no other state, should be given a “waiver” from national carbon emissions standards and allowed to set its own standards. The waiver, designed decades ago to allow California to manage its severe smog problem, has instead been used by California to target fuel efficiency and global warming. The letter sent by the attorneys general makes clear any attempt to restore California’s waiver is unconstitutional and causes harm to non-Californians, needlessly driving up the costs of new vehicles and allowing California to exercise power denied to every other state. “In this great union of sovereign states, the Golden State is not the golden child,” the attorneys general wrote. A copy of the letter to the EPA can be found at https://bit.ly/3wmywrE Source: Kansas Attorney General’s Office

autobodynews.com / AUGUST 2021 AUTOBODY NEWS 51

Carmakers in North America Worst Hit by Semiconductor Shortage North American vehicle production has been the worst affected by the shortage in the supply of semiconductors, including for its high-profit, low-inventory vehicles, according to the latest research from AutoForecast Solutions. It comes at a time of very high demand for vehicles in a market rebounding from the Covid lockdown. The question is, how will leading vehicle makers in the region position themselves so that this does not happen again? Kicking off discussions at this week’s Finished Vehicle Logistics North America Live conference, Joe McCabe, president and CEO, AutoForecast Solutions (AFS), said that the impact of the semiconductor shortage on production volumes globally was forecast to equal 4.57m units this year, with 285 plants impacted around the world (as of June 15). In North America, the forecast for vehicle production before the semiconductor crisis came to light was around 15.9m, according to AFS data. That has been revised down to 15.25m by AFS, meaning a significant amount of production has been lost. The production shortfall is being exacerbated by other issues at the moment, including airfreight under-capacity and vessel congestion at the West Coast ports in the US, all of which is impacting critical part supply for the Asian-based OEMs in North America. Impact on segments McCabe said the crossover vehicle (CUV) segment in North America was taking the brunt of the impact, with 48% of production affected by the semiconductor shortage. Crossovers are defined as those SUVs that share a platform with a passen-

ger car rather than a pickup truck. Around 16% of pick-up truck and large SUV production is also affected, which is hitting carmaker bottom lines quite hard as they are the highest profit vehicles, but these are all deemed recoverable in terms of production because vehicle makers do not want to lose such high value sales and will now find any means of getting them on the lots rather than sitting in storage waiting for microchips. That includes building the models with fewer chips. “They are building [pick-up] trucks without features like start/ stop and are going to analogue for the speedometers,” said McCabe. “They are [taking] out stuff that isn’t life-saving and pulling the content out just to get them on the market. You will see much more of that – reconfiguring the product to make sure they have more on the lots because the biggest issue is the sparsity of product on the dealer lots.” That point was backed up with direct input from one of the dealerships in the US. Brion Stapp, dealer principal, at Stapp Interstate Toyota, said that inventory was at its lowest point in decades and that even though vehicle haulers were making multiple calls a week at his dealership, more than 40% of the dealership’s supply for the next three months is presold. “As those trucks roll in on a daily basis we unload them and put them right into the sold inventory for our customers to take delivery,” he said. Whatever it takes, North American vehicle makers are will be getting those higher end vehicles on the lots and recovery in production and sales for this segment is expected

by the third quarter of this year, according AFS, while recovery for other segments it not expected until 2022. The passenger vehicles, or sedan, segment has been less affected, though a sizeable 28% of production is delayed. However, recovering passenger car production is not a priority for OEMs in North America. The profit margin is much lower and new sedan sales have been declining for some years. A lot of production in this segment has either been cut completely or moved offshore to markets where they are still selling slightly better. Future proofing supply Now the vehicle makers are looking at what they can do so that this shortage never affects them as badly again. According to McCabe there will be a lot more vertical integration, with carmakers setting up direct partnerships with the semiconductor manufacturers, as Ford did in the past with the aluminium industry to secure its supply base.

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There will also be greater investment by smaller-scale semiconductor manufacturers, according to McCabe. “More small-scale chip players will try to scale up and take advantage of government money because it is now an issue of national security,” he said. “They will take the billions and build more plants.” As reported earlier, the Biden Administration in the US has signed in an executive order designed to fortify US supply chains, including those supporting the production of semiconductors. Currently only 12% of global semiconductor manufacturing is in the US. In March Biden said the new administration in the White House would work with industrial leaders to identify solutions to the current shortfall. It is going to cost $37 billion in the short term to install the required capacity to satisfy US demand for semiconductors onshore, something the president said the government would be pushing for through House and Senate.

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‘Who Pays for What?’ Survey: Auto Body Shops Increasingly Billing, Being Paid for Seat Belt Inspections General Motors’ recently-revised post-crash inspections continue to call for inspections of seat belts “after any collision,” and “Who Pays for What?” surveys continue to find an increasing percentage of auto body shops are billing—and being paid—for this procedure by the eight largest auto insurers. In 2016, when Collision Advice and CRASH Network first asked about seat belt inspections in their “Who Pays for What?” survey, nearly two-thirds of shops—63%—said they had never billed for it. This year, that has nearly reversed, with 62% of shops reporting they have charged for the labor to inspect seat belts. Among those shops, about one in three—34%, up from 24% in 2016—say they are paid for that procedure “always” or “most of the time,” and nearly an equal percentage say they are paid at least “some of the time.” The trend is good news for shops and consumers. But for this procedure in particular, Mike Anderson of Collision Advice, who

conducts the surveys in conjunction with CRASH Network, is concerned more with just making sure it gets done.

“Every OEM has a very specific procedure for how to inspect seatbelts,” Anderson said. “No matter whether you charge for it or not, we have an obligation to make sure that we’re fixing vehicles safely and properly, and that means following the OEM repair procedures when it comes to seat belts.” The latest quarterly “Who Pays for What?” survey is now

open through July. It focuses on “not-included” frame and mechanical labor operations. Shops can take the survey at https://www.surveymonkey.com/r/L3H3JQP Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at www.crashnetwork.com/collisionadvice. Source: CRASH Network, Collision Advice

Audi Selects Mobileum Mobileum Inc., a leading global provider of analytics-based roaming and network services, risk management and testing and monitoring solutions, is pleased to announce Audi is deploying Mobileum’s Connected Car Testing solution to test and monitor the end-toend quality of service (QoS) of its connected cars. By implementing Mobileum’s Connected Car Testing solution, Audi ensures its customers will experience the best online infotainment, safety, navigation and communication capabilities while they are in the car. Mobileum’s Connected Car Testing solution allows Audi to remotely test its connected cars from a centralized location, and it provides unparalleled KPIs to monitor and improve the connected car experience. In addition, Mobileum will enable Audi to support important safety features. Source: Mobileum

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Segments of Specialty-Equipment Industry See Growth During Pandemic The automotive specialty-equipment industry has largely weathered the pandemic, with many companies reporting sales growth over the past year and anticipating continued growth in the coming months, according to new SEMA Market Research. Findings from the new “SEMA State of the Industry—Spring 2021” report indicate that the majority of businesses saw significant sales growth during the pandemic: 66% of manufacturers, 60% of distributors and 40% of retailers/installers reported increased sales compared to 12 months ago, and nearly threefourths of all manufacturers and distributors expect sales to increase over the coming year. Filled with data on how the pandemic has impacted businesses in the automotive specialty-equipment industry, the 63-page market research report helps companies understand how the market is performing. Key findings from the report include: The specialty-equipment industry saw minimal staffing disruption because of the pandemic,

with most maintaining or growing staffing levels. Additionally, 83% of manufacturers, 77% of distributors and 63% of retailers/installers plan on hiring more staff over the coming year.

Manufacturers saw sales increase across many channels, especially direct-to-consumer through their company website and at independent specialty retailers. The industry saw growth across

Findings from the new “SEMA State of the Industry—Spring 2021” report indicate the majority of businesses in the automotive specialty-equipment industry saw significant sales growth during the pandemic.

Many companies selling in the pickup, sports car and classic segments reported double-digit growth in the past 12 months.

a variety of product categories. Manufacturers and retailers saw significant sales growth in performance categories especially, including in-

take and suspension products. According to the U.S. Census Bureau, retail sales at motor vehicle and parts dealers hit $139.5 billion--its highest level in U.S. history. Despite the pandemic, consumers continue to work on their cars. According to a survey of Americansconducted by Hertz, more than 80% of Americans plan on taking a road trip this summer. This means a lot more driving, and potentially a lot more potential engagement with the specialty-equipment industry. At a time when most countries, like Japan and the European Zone, are experiencing economic contractions, the U.S. is showing strong growth after the disruption from the pandemic. This strong growth is expected to continue through the rest of 2021, as the services part of the economy fully reopens. To learn more about the current state of the specialty-equipment industry and outlook for the future, download the new “SEMA State of the Industry—Spring 2021” report today at www.sema.org/research. Source: SEMA

Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices Stay Steady in Q2: Edmunds Consumers seeking relief from new car prices in the used car market might be a bit dismayed by used car prices as well, according to the car shopping experts at Edmunds. Edmunds data reveals the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly used ATP Edmunds has on record. “Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.” Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in

Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020. Edmunds experts note this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2

action price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much

“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” — Jessica Caldwell 2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020. “Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average trans-

less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.” Edmunds analysts note the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population. “This is not a buying environment for people on the fringe of

being able to afford new car ownership,” said Caldwell. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.” Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $21,224 in June, marking a 75.6% increase compared to June 2020. “In these unique market conditions, car shoppers must remember that they have the most negotiating power through their current vehicle,” said Ivan Drury, Edmunds’ senior manager of insights. “Although it’s important to do your research on available incentives, getting competitive quotes for your trade-in will be the smartest way to guarantee the biggest discount on your next vehicle.” Source: Edmunds

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August 2021 West Edition

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Fairview Ford-Lincoln-Mercury ��

Sierra Chevrolet-Honda-Subaru ��

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Equalizer Industries, Inc ��

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