August 2024 West Edition

Collision Repairers Feel Downstream Effects of CDK Global Cyberattack

By Paul Hughes Autobody News

Ripples from the late June ransomware attack on auto dealership software provider CDK Global spread to the independent collision repair shops that buy OEM parts from their local dealerships, which struggled with a supply chain disruption on a scale not seen before.

them — a $100,000 GMC Denali is waiting on door clips, which nobody is sure are in the warehouse.

In the days following the attack, he was able to take delivery of “$20,000 worth of parts, and it’s on a paper ticket” because dealer computers were down, forcing them to revert to manual processes, causing significant operational slowdowns and customer service delays.

California Governor Vetoes Bill Incentivizing Converting

ICE Cars To Zero-Emission

A bill that would have provided up to $4,000 to California residents converting eligible fuel-powered vehicles to a zero-emission powertrain was vetoed June 14 by Gov. Gavin Newsom Senate Bill 301, introduced in February 2023 by state Sens. Anthony Portantino, D-25, and Josh Newman, D-29, was passed unanimously in May by both the state Assembly and Senate.

As of June 17, the bill was back in the Senate for consideration of Newsom’s veto.

The bill sought to establish the Zero-Emission Aftermarket Conversion Project (ZCAP). It proposed funding the rebates by moving money in the state budget

from another clean transportation project.

The bill said a state board would develop guidelines defining qualifying conversions and eligible replacement motors, power systems and parts; establish warranty requirements for motors and battery packs; and establish eligibility criteria for the rebates.

The bill also would have required an inspection of the converted vehicle by the California Bureau of Automotive Repair, and for the converted vehicle to have a range of at least 100 miles.

Finally, the bill would have required 25% of rebates provided through the ZCAP program to go to people

CARSTAR Hayden Named Idaho’s Best Body Shop Following Consecutive

Regional Nods

“It’s caused huge disruptions — massive problems across the country,” said Beau Bennett, owner of Kious Kountry Auto Collision Center Inc., a 16,000-square-foot shop in Waukon, IA, that relies on two dealers for parts, as “95% of the parts I put on are OEM,” he said.

Bennett had to immediately boost liability insurance as the number of vehicles stored onsite at his shop grew, held up by the sudden inability to get some of the parts to finish

“It’s not [dealers’] fault,” Bennett said. He’s worked with his vendors for 30 years and intends to stick with them.

In the late night hours of June 18, continuing through June 21, Illinoisbased CDK Global Inc., a software and data provider to 15,000 automotive dealerships, was hit by several cyber attacks, leading CDK to shutter its system, including software, data

By Paul Hughes Autobody News

In a scene from “Rocky,” Adrian notes curtly, “But it was Thanksgiving.” To which Rocky casually replies, “To you. But to me, it’s Thursday.”

Meet Greg Solesbee. He and his wife Rachelle own CARSTAR Hayden, just outside of Coeur d’Alene, ID. In May, the duo won their first statewide Best Auto Body Shop title in the 2024 Idaho’s Best Awards,

REGIONAL NEWS

Greg and Rachelle Solesbee at the 2023 SEMA Show REGIONAL

Kious Kountry Auto Collision Center Inc., in Waukon, IA, immediately upped its liability insurance to cover the uptick in vehicles sitting on its property, waiting for parts the shop couldn’t order from dealerships in the wake of the attack.

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REGIONAL NEWS

California Commission Approves Waymo Robotaxi Expansion 24

California Governor Vetoes Bill Incentivizing Converting ICE Cars to Zero-Emission 1

CARSTAR Hayden Named Idaho’s Best Body Shop Following Consecutive Regional Nods 1

Cascade Collision Repair Acquires Lone Peak Collision in Utah 28

CAWA Awards 2024 Scholarships to Automotive High School Teachers 22

Tesla Ordered to Fix Air Quality Violations at Fremont, CA, Factory 21

WyoTech Celebrates Alumni with 2nd Annual Hall of Fame Class 23

COLUMNISTS

Mike Anderson

Post-Crash Inspections Find Multiple ‘Deformed’ but Undeployed Airbags 8

Abby Andrews ‘Don’t Let the Consolidators Scare You’: Better Collision Centers Follows Its Own Path to Success 16

Finding Your Collision Repair Shop’s Niche Could Be Key to Success 10

GM Facing More Lawsuits Over DriverBehavior Data Sharing 12

How Puget Collision Became a Powerhouse MSO with Franchise, Private Equity Backing 14 Stacey

Yoswick

Collision Shop Owners Create Work-

State Laws Address Insurer Bad Faith, Non-Functioning Airbags, Steering of Work 18

Delivery Times Improve; Court Rulings, Legislation Could Have Future Effects 6

AutoNation Joins U.S. Army PaYS Program 31

BMW Issues Recall for Nearly 395,000 Vehicles Over Takata Airbags 28

Cappella Appointed COO, EVP at PCNA 33

CIECA CONNEX 2024 Agenda Announced 34

CIF Welcomes Tasco Auto Color to Annual Donor Program 35

Collision Repairers Feel Downstream Effects of CDK Global Cyberattack 1

Driven Brands Joins AutoBody Alliance Network 36

EVs on Track to Comprise 50% of U.S. New-Car Sales by 2030 48

Ex-Tesla Employee Pleads Guilty to Stealing Trade Secrets 35

Fisker Becomes 2nd EV Maker to File for Bankruptcy in Past Year 31

Fix Network Announces 2025 Global Conference 24

Ford Recalls 550,000 F-150 Trucks Due to Sudden Downshift Issue 23

GM to Pay $145.8M Penalty for Excess Emissions from 5.9M Vehicles 49

GM, Stellantis to Receive Over $1 Billion for EV Projects 51

Grant Dixton Joins GM as Chief Legal Officer 40

Honda Begins Production of First U.S.Made Plug-In Hydrogen EV 40

I-CAR Steps Up Efforts to Recruit, Educate New Collision Repair Techs 32

Legislation Delays Implementation of FTC’s Vehicle Shopping Rule 44

Mass Market Cars Outperform Premium, EVs Struggle in J.D. Power Quality Study 34

New Members Join Auto Care Association Board 43

New-Vehicle Sales Show Mixed Results for First Half, Q2 2024 38

NHTSA Launches $9.5M Campaign to Combat Speeding 36

Partial Automation Systems Fail to Prevent Crashes 46

Severe Weather Driving Up Auto

44 Stellantis Plans Major Job Cuts, CostCutting Measures 22

46% of U.S. EV Owners ‘Likely’ to Switch Back to Fuel-Powered Vehicle 43

Fatalities Decrease 3.2% in First Quarter of the Year 50

Rolls Out ChatGPT Integration in Vehicles 44

Invests Up to $5B in Rivian, Announces Joint Venture 33

Scholarship Campaign Raises Almost $10,000 to Support Students 29

Index of Advertisers

How to Ensure Your Collision Repair Business Has a Future

Editor’s note: This is the first of a twopart series on this topic. Pick up the September issue of Autobody News, or visit www.autobodynews.com for the second installment.

Seven years ago, Matthew and Marcia Seebachan won a $42 million lawsuit against John Eagle Collision Center for the incorrect repair of their 2010 Honda Fit, which left them injured and trapped inside their burning car after a subsequent collision. Fast forward to 2024, and an estimated 75% of calibrations are being missed, according to industry reports, leading to incorrect repairs.

The Collision Industry Conference (CIC) Industry Relations Committee conducted a study in 2023 to determine why there are still poorly repaired vehicles on the road. The committee obtained 26 examples of collision repair center post repair inspections from body shops in the East, Midwest and Western U.S. The study, based on the results of 26 late model vehicles (2013-2022 model years), found more than 90% were totaled after substandard repairs were found.

Following the study, a Guild 21 Webinar was held in May to discuss what can be done to elevate the industry and ensure cars are fixed properly. The webinar was sponsored by OEC and hosted by  George Avery,  Holly SwitzerPitts and Micki Woods

Elizabeth Stein, vice president of Strategic Initiatives for Certified Collision Group (CCG), led the panel discussion, “How to Ensure Your Collision Repair Business Has a Future.” Panelists included Jeff Butler, president of Haury’s Collision & Vintage in Seattle, WA; Ron Reichen, founder of Precision Body & Paint, Inc. in Oregon; and Erin Solis, senior vice president of Square One Systems/Coyote Vision Group.

“There is no excuse for it [poor repairs] anymore, but it still goes on constantly,” said Reichen. He attributes substandard repairs to body shops shortcutting the process and failing to look up OEM repair procedures.

In the John Eagle Collision case, Reichen said outside pressure from the bill payer reduced the original repair plan and had the shop seek alternative methods to repair the customer’s vehicle so the shop could make a profit.

“To maintain profit margin, the repairer decided to deviate from OEM factory procedures and repair that car in a non-approved repair procedure to make the job profitable,” he said. “Unfortunately, what it did is put the current vehicle owner, as well as the secondary owners — the people injured — in harm’s way because they put profits over the safety of the consumers.”

In every industry, Reichen said, there are unscrupulous people driven by profits.

“There has to be accountability and consequences,” he emphasized. “The John Eagle case certainly proved that there were significant consequences. It’s important that the industry learn from this and address the problem.”

consent.

Even if charges seem reasonable and necessary, Butler said, if you don’t get approval from vehicle owners, you are taking away their choice and violating the act. Butler advises shop owners to learn about the Auto Repair Act in their state, which is typically on the attorney general’s website.

Building Relationships with Clients and Third Parties

Butler talked about the communication breakdown that can occur during the negotiation process with clients and third parties and shared how the industry can proactively address this challenge.

Over his career as both a shop owner and private adjuster, Butler has witnessed the industry from different perspectives. If there’s a disagreement in the amount of the loss, or repair costs, Butler said the consumer generally has recourse.

During the Guild 21 webinar, panelists talked about the importance of understanding state laws, building credibility with clients and bill payers, focusing on a proper repair, promoting a healthy working environment and ensuring a future for staff.

Know Your State Law

Stein pointed out many shops are unfamiliar with state laws and could be in violation.

Butler, former director of the Washington Independent Collision Repairer’s Association (WICRA), has found shops often don’t follow the state auto repair rules or ask customers for approval on repairs.

“That is problematic and leaves a repair facility exposed,” he noted. “If you’re not following the state laws, you’re opening up your repair facility to a significant amount of liability.”

He shared the example of Washington’s Auto Repair Act, which requires the 10% rule. Under the rule, a facility cannot charge a customer more than 10% of the written estimate without the consumer’s

“Our industry will gain a lot more credibility if we’re upfront and honest about what the costs are, what we’re doing and back it up with facts,” Butler said.

“As analysts of the damage, we don’t determine the cost,” said Reichen. “The vehicle damage determines the cost. If we are following all the procedures, the bottom line is the bottom line.”

Reichen emphasized a shop’s contract is with the vehicle owner, not the insurance company, and it’s the business’s responsibility to provide the necessary information to consumers.

Similar to a medical bill, Reichen advises shops to include everything on the repair plan.

“Shops lose focus on how they run their business and don’t focus on trust and transparency,” he noted. “Showing your customer and the insurer what’s needed and why certain repairs are needed really helps facilitate that.”

Solis agreed. As a previous insurance adjuster, she recalled times when she asked shops to show documentation and explain the repair.

Butler cautions shops to stop acting like they are the adjuster for the vehicle owner. Instead, he recommended educating customers on the circumstances of the repair and why the shop is the vehicle repair expert.

One of the most fundamental flaws John Eagle Collision Center made in handling its customer’s vehicle repairs and insurance claim, according to Butler, is not disclosing the payment shortage from the insurer to the vehicle owner and giving them a choice for how they wanted to address the shortfall.

“That’s just fundamentally wrong and repairers have to stop doing that,” he said.

At Haury’s, staff members educate customers about vehicle damage, the repair plan, and the procedures required by the auto manufacturer, and keeps them updated throughout the process.

“If you’ve been transparent and written a repair plan backed up by OEM repair procedures using factory equipment with trained people, and you’ve done a good job of communicating that with the vehicle owner, they can advocate at the end of the day that you’re repairing the car for them and not repairing it for the bill payer,” he said.

“Friction is not necessary if there is good communication and transparency,” added Reichen.

Focusing on a Proper Repair to Avoid Liability

Solis discussed what shop owners and managers should know about ensuring a proper repair and liability exposure.

First and foremost, she said collision repairers need to access the OEM repair information.

Reichen agreed about the importance of looking up repair procedures every time because they change, often overnight.

Solis also stressed the importance of documenting repairs.

For example, she said destructive weld tests should be performed on every car and need to be photographed to demonstrate that the welds were done correctly.

“Documentation is going to be the key to limiting liability,” she noted.

Ensuring technicians are properly trained is also critical.

“If you are certified in a specific brand, you want to make sure that the technician who went to training and carries that certification is the one repairing the vehicle and using the proper equipment,” Solis explained.

Credit: Shutterstock

Parts Delivery Times Improve; Court Rulings, Legislation Could Have Future Effects

by John Yoswick Autobody News

While the cyberattacks on CDK Global in June in some cases temporarily hampered wholesale parts sales to body shops, parts delivery times prior to that had improved significantly not only from the months of the United Auto Workers (UAW) strike last fall but even compared to last spring, according to data shared by PartsTrader.

Across all part types — OEM, nonOEM, used and reconditioned — the median delivery time has remained steady for several years at just above one day, Greg Horn, chief innovation officer for PartsTrader, said at the recent Automotive Body Parts Association (ABPA) conference. But if nine out of 10 parts needed for a

data continues to show three types of ADAS have the most impact on claims frequency: forward collision warning, front auto-brake and rear auto-brake. In general, he said, the systems that “act on your behalf are associated with far bigger frequency reductions than those that just yell at you like my mom did when I was 16.”

Moore said ADAS is contributing to the rising severity of claims for reasons beyond the cost of replacing and calibrating the systems.

“Rear auto-braking is incredibly effective and eliminates a large percentage of claims,” Moore said. “But how fast are you going when you back up? Two, three miles per hour, tops. So what kind of claims are we going to eliminate with that system? Cheap claims. So in a hypothetical distribution of claims, if we throw out a whole bunch of cheap claims and recalculate the average, what happens? The average goes up. We didn’t make any claims any more expensive. We just threw out a whole bunch of cheap ones.”

The implementation of ADAS can also impact the claims mix, Moore said. Mazda has a system called Smart City Brake Support that works only when the vehicle is moving up to 18 mph; obviously it reduces more small severity claims.

where prevailing wages are higher.

Discussion of Design Patents on Parts

ABPA’s membership consists primarily of manufacturers and distributors of non-OEM parts, so the conference includes discussion of the industry’s efforts — both through legislation and litigation — to increase the industry’s ability to sell more aftermarket parts.

“The electric vehicle fleet looks nothing like the gas power fleet, making comparisons incredibly difficult.”

and distributors of non-OEM parts. Justin Rzepka of the coalition told ABPA conference attendees the SMART Act has a dozen co-sponsors, including U.S. Rep. Darrell Issa (R-CA), chairman of a House subcommittee reviewing the legislation.

The REPAIR Act has 54 cosponsors, including many of the members of the House Energy and Commerce Committee reviewing the bill. It has moved through the subcommittee process.

Rzepka said he was expecting forward movement on both bills this summer. “But we can’t predict the future and lots of things can happen,” he acknowledged.

job typically all arrive promptly, Horn said, it’s the outlier that tells more of the story.

“Averaging dilutes the impact of that one part out of 10 that is significantly delayed,” he said. “By looking at the median plus two standard deviations, you capture 95% of the population.”

Without diving deeply into the statistical methodology, that number stood at 9.7 days in March, according to PartsTrader data. That was down significantly from the most recent peak of 14.8 days last October during the final four weeks of the UAW strike against the domestic automakers. But it was also down from between 12 and 13 days in April and May 2023, and down from all of 2022, which ranged by month from a low of 13.4 days to a high of 14.4 days. But pandemic supply chain delays haven’t fully disappeared: Deliveries were at just 7.4 days in the first quarter of 2021.

Claims Impact of ADAS

Matt Moore of the Insurance Institute for Highway Safety (IIHS) also spoke at the ABPA conference. He said IIHS

On the other hand, General Motors has a forward collision warning system that is only active above 25 mph, reducing higher severity claims.

A lot has been made of the higher claims severity of electric vehicles compared to vehicles with internal combustion engines. But Moore cautioned such comparisons can be problematic.

“The electric vehicle fleet looks nothing like the gas power fleet, making comparisons incredibly difficult,” he said. “We have almost no [electric] pick-up trucks, and pickup trucks represent a huge piece of the U.S. market. And we don’t have big honking, electric SUVs. And this matters a whole bunch because the types of crashes we get into by point of impact, and the dollar values of those crashes, vary by vehicle type. The most expensive crash you can get into and the most common is front dead center. The least expensive crashes are the rear quarters, particularly in pick-up trucks.”

Electric vehicles, Moore also noted, are primarily operating — and being repaired — in metropolitan areas

At the federal level, the Congressional clock is ticking for backers of the Right to Equitable and Professional Auto Industry Repair (REPAIR) and Save Money on Auto Repair Transportation (SMART) acts, with just months until the session ends and the election this fall likely cutting into legislative activity.

Similar to bills introduced since 2015, the SMART Act would slash the length of time automakers’ design patents on exterior crash parts can prohibit the production and sale of non-OEM versions of the parts — from 14 years to just 30 months.

In addition to passage by committee, the bills would have to be voted on by both the full House and Senate, before early January when this Congress ends. The legislation would have to be reintroduced to start the process over next year.

Impact of Parts Patents

Even if the federal legislation doesn’t pass, a federal appeals court ruling in May could make it easier to challenge design patents. The court overruled tests used for more than four decades to gauge the validity of design patents, at a minimum creating uncertainty for some time as to how courts should evaluate them.

“This ruling is a major victory for aftermarket part manufacturers,” said Ed Salamy, executive director of the ABPA.

During the conference, PartsTrader’s Horn shared data he thinks demonstrates the impact that automaker design patents on crash parts have on non-OEM parts sales. Horn compared the market share of OEM to non-OEM parts sales for some part types and automakers.

The REPAIR Act is described as “right to repair” legislation, prohibiting vehicle manufacturers from impairing a vehicle owner’s access to their vehicle’s data related to diagnostics and repair, or impairing a non-OEM parts manufacturer from producing or selling compatible aftermarket parts.

Both bills are backed not by the largest mechanical and collision repair shop trade associations, but by the Consumer Access to Repair (CAR) Coalition, which consists of insurance companies, CAPA, LKQ Corporation and other manufacturers

Horn said domestic automakers — he shared data for Ford and Chevrolet — tend to have more design patents compared to import brands like Honda and Toyota. In terms of front lamps, Ford and Chevrolet OEM parts capture about 63% and 69% market share, respectively, compared to about 49% for Honda and 42% for Toyota. The market share of OEM bumpers for Honda (about 73%) and Toyota (about 67%) are again lower than that for Chevrolet (about 75%) and Ford (about 81%).

“This is, in my mind, what the [patents] have done for the American versus the Asian manufacturers,” Horn said.

Delivery times to shops this past March were about 25% lower they were in spring of 2023

Greg Horn of PartsTrader

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Post-Crash Inspections Find Multiple ‘Deformed’ but Undeployed Airbags

In earlier columns this year, I shared one shop’s story about being visited by the police each time a certain vehicle’s battery was reconnected, and another shop’s story about sunlight being magnified through rainwater on crash wrap leading to burn damage to the interior of the vehicle.

Now I want to tell you about another shop’s startling discovery during vehicle safety inspections, which I believe should be a wake-up call for every single person involved in the collision industry.

Rick’s Paint and Body is a Lexus Authorized Collision Center in Augusta, GA, and as such, repairs a lot of Lexus and Toyota vehicles. Shop owner Tyler Smith understands the post-collision repair inspections both automakers call for on many of their vehicles. The procedures for the Toyota Camry and Lexus ES 350, for example, call for airbag inspections even in non-deployment crashes. Smith said those inspections, which can be pretty intrusive, on multiple occasions recently have proven to be very important.

“It was the passenger head airbag that we found in numerous vehicles have been deformed,” Smith told me, clarifying the shop had found four such instances. “You could see on a couple of them where the brackets where they mount up underneath the dash panel were slightly tweaked, and instead of the airbag being a nice little neat package, the top of it was bulged out almost like a loaf of bread. The webbing that kind of holds it all together was stretching so much that it was starting to separate.”

Smith said none of the vehicles had related lights illuminated on the dash, nor any diagnostic trouble codes that would indicate there was

any issue with the airbags. He said he made sure to check them against new replacement airbags to make sure what he was seeing wasn’t how those airbags in the vehicle should look.

Further evidence that the airbags had an issue came when a local fire department held a vehicle extraction training class at Smith’s shop. After the class, Smith said he asked if the first responders had ever seen an airbag deploy. They said they hadn’t, so Smith’s team gathered the setup they have to safely deploy an extracted airbag. Smith said the shop does the demonstration for new employees as well, to show the force with which airbags deploy and the importance of following all automaker procedures and precautions.

But of the four deformed airbags Smith’s team discovered during its post-crash safety inspections, three of them did not deploy when hooked up for the firefighters in training.

“So I can’t say for sure, but they might not have fired if we’d left them in the vehicle and it was involved in a subsequent accident,” Smith said.

When I asked Smith what he thinks caused the issue with those airbags, he was quick to note he’s not an engineer. All the vehicles were about four to eight years old. All took midsized hits in the left rear quarter panel.

type of first-stage deployment in some way led to the deformation, and if that may be why Toyota and Lexus call for their inspection.

teapot,’ then you stand over there and you sing,” he said, laughing.

Ladies and gentlemen, those deformed airbags found during safety

Smith said his shop has done quite a few inspections on similar year, make and model vehicles and not found issues with the majority of those particular airbags, so he doesn’t think it’s an issue from the factory. But in any case, in his mind, that makes doing the inspections to find the ones that are deformed all the more important.

“The webbing that kind of holds it all together was stretching so much that it was starting to separate.”

TYLER SMITH

Has finding those deformed bags made it any easier to convince insurance companies of the importance of the inspections?

inspections by Smith’s team should be all you need to understand you are playing a dangerous game with your customers’ lives and your shop’s liability when you don’t follow the safety inspections procedures laid out by the automakers. Will some — or even most — of the inspections turn up nothing? Maybe so. And I hear from shops that these inspections are the single biggest friction point in the industry.

“We’re not talking train wrecks,” Smith said. “They obviously took a pretty good hit, but nothing major, no major structural damage. No other airbags deployed from the wrecks in the vehicles.”

He knows some airbags have what he thinks of as a two-stage deployment, where it may get charged for deployment but the sensors indicate it doesn’t need to actually deploy. He wondered if that

Unfortunately, Smith said it hasn’t. It doesn’t help, he said, when someone at a dealership who doesn’t know better tells the insurer the inspections aren’t necessary. In some cases, customers have had to pay for the inspections themselves.

“Like I tell insurance companies all the time, ‘I didn’t engineer these vehicles. So I have to follow the procedures from the people who did,’” Smith said. “For most of the manufacturers, it’s very cut-anddried. Do I necessarily agree with all of it? No. But that’s not for me to agree or disagree with. If they say to stand over here and sing, ‘I’m a little

So it’s good that we have instances of some automakers reviewing the safety inspections they call for to better clarify what level of damage is required to make which of the inspections necessary. General Motors in 2021, for example, rolled out a significant overhaul of its postcollision vehicle inspections, saying the changes in no way compromise safety. While GM previously had a long list of such inspections required “after any collision,” it now says most are necessary only after “any collision that exceeds minor outer body panel cosmetic distortion.”

But Smith’s shop is just one of a growing number of shops reporting they have uncovered some important safety issues when regularly conducting the inspections. Let me know through my assistant, Tiffany Driggers, at tiffany@collisionadvice. com, if your shop uncovers something damaged you might have missed without a safety inspection.

“We’re lucky we caught them when we did,” Smith told me. “Because from what we saw, they will not necessarily perform as designed.”

A post-crash safety inspection of a vehicle found an undeployed airbag bulging to the point of starting to separate the webbing that holds it together

A post-crash safety inspection of a vehicle found the bracket that mounts an airbag underneath the dash panel was slightly tweaked

RICK’S PAINT AND BODY AND PAINT

Capitalizing on the ADAS Opportunity: Three Shop Owner Success Stories

In recent years, perhaps no automotive technological advancement in the mechanical and collision repair industries has been such a disrupting force as the increasing adoption of Advanced Diver Assistance Systems (ADAS), such as Adaptive Cruise Control and Lane Departure Warning, on even the most basic vehicle lines.

Even though an estimated 60% of vehicles on North American roads today come with one of these safety systems—that’s 180 million vehicles—some collision shops have not developed an effective strategy for servicing vehicles with ADAS.

“The strategy a shop chooses, whether to perform the work in-house or sublet calibration work to another shop, calibration center, or mobile provider, depends on multiple factors, including its size and layout, the training and current workload of its technicians, and quite simply, its business plan, said Autel Senior Executive of ADAS Sales Stewart Peregrine.

“Ideally, if shops have the space, the technicians, the funds for equipment investment, and the desire, they should consider bringing ADAS calibrations in-house.

“There are calibration centers and mobile calibration providers that offer comprehensive, quality service with accuracy and quick turnaround that you can partner with. Many of them use our equipment; we’re proud they do,” said Peregrine.

Precision Diagnostics in Madison, Wisconsin, Fuller’s Collision in Auburn, Massachusetts, and Angie’s Service in Newbury, Massachusetts, are ADAS calibration shops that became so proficient that they started separate companies to handle other shops’ calibrations. The results have been startling.

Tom McGuire and Dave Zielke started Precision in response to repeated poor service from

those they sublet to. “We were seeing an increasing number of delays from a cycle time perspective, getting cars back from the dealerships, and there was probably one mobile vendor in the space then. And frankly, the service levels just were not there; they weren’t realistic with what I needed as a body shop, “ McGuire said.

So, McGuire and Zielke created a calibration solution for their collision shop and others who didn’t want to perform ADAS calibrations themselves.

“The goal (with this new business),” McGuire said, “was to be an extension of the Body Shop’s production team—that’s what I would have wanted when running shops. Hundreds of different things are pulling on them —the insurance companies, the customer, and the OEM specifications—all those pieces. [They] want somebody that can come in and look at it and say this isn’t a problem at all, here’s what we need to do, here’s the OE information on it, here’s the process,” McGuire said.

What started with a small shop and one van has blossomed into a fleet of 100 mobile vans and three brick-and-mortar facilities, including a 10,000-square-foot facility. Today, Precision’s mobile units (all outfitted with a technician or two and an Autel MaxiSYS MA600 mobile ADAS system) perform about 4,500 ADAS calibrations per month, servicing 1,500 shops across 11 Midwestern states.

Mike Ambrosino of Fuller’s Collision Center in Auburn, Massachusetts, faced similar challenges with subletting and decided to bring ADAS inhouse. “One of the toughest things that we were dealing with was scheduling with dealerships, getting the vehicles out to the dealerships to be properly calibrated, and getting thorough reports from the dealership that these cars were being calibrated properly,” Ambrosino said.

After considerable time discussing what calibration system to purchase, Fuller’s went with Autel. “Once we made the decision to go with Autel, training was included, and they sent a trainer out shortly after the purchase for a full day, “

Ambrosino, now the director of ADAS calibration and diagnostics at Fuller’s, said.

The decision to bring ADAS in-house has been beyond successful for Fuller’s. Since purchasing their first Autel ADAS system in 2021, Fuller’s Collision purchased two more and created a separate business, ADAS Diagnostic Solutions LLC, which serves Fuller’s Collision and about 45 shops in the area. “We’re doing about $72,000 a month (in calibration revenue), “ Ambrosino said. ADAS Diagnostic Solutions has six bays and three calibration systems. Its turnaround rate has gone from 10 calibrations a month to almost 15 daily.

Gary Machiros of Angie’s Service Inc. in Newbury, Massachusetts, is not new to ADAS. He started about four years ago, not long after Autel released the IA800, its first system to use cameras for target placement. “We calibrate every vehicle that comes through our shop with Autel equipment and have done so since our first purchase,” Machiros said.

Over the years, the demand for ADAS calibrations at Angie’s Service Inc. has grown significantly, with the shop now performing about 50 calibrations weekly. This growth is a testament to the shop’s expertise and status as the go-to calibration shop for the area’s collision and mechanical shops.

“We’re seeing double and sometimes triple the calibration work because we are working on more and more later model vehicles. This workload will only grow with the increase of late-model cars on the street. With more radar, cameras, and other systems incorporated into the vehicle, accurate ADAS calibrations become even more necessary. Right now, there is a huge potential for independent outfits to service local body shops.”

Finding Your Collision Repair Shop’s Niche Could Be Key To Success

By Abby Andrews Autobody News

One of the most interesting and innovative operators in the collision repair industry, Michael Giarrizzo Jr. is the CEO of DCR systems, a dealer-focused body shop group with four distinct business units and 10 locations, including six independent and four licensed franchise shops.

Giarrizzo spoke to Cole Strandberg, host of The Collision Vision podcast, driven by Autobody News, about his 19-year-old company’s unique business model and the current and future challenges of the industry as a whole.

Early Challenges and Lucky Breaks

Giarrizzo is a third-generation repairer. His grandfather started a mechanic shop in 1946 and his father opened a collision repair shop in the 1960s. From there, they built a family business, which Giarrizzo joined after finishing school, that grew to four locations before being acquired by Sterling Autobody Centers in 1999.

Giarrizzo launched DCR Systems in 2005, a series of independent collision repair centers, each connected with a local automotive dealer.

Giarrizzo said DCR Systems’ business model proved to be ahead of its time when it opened in 2005, as repairs have become more specific to each car brand over the nearly two decades since.

“It’s really gone to where if you don’t have this specific training for the manufacturer, you don’t have a whole lot of business touching that vehicle,” Giarrizzo said. “No longer is it [just] about how pretty that repair is. It’s peeling back the onion and understanding, is this car actually reconstructed in a way that it’s going to respond the same way?”

DCR Systems’ Business Model

Giarrizzo described DCR Systems’ four business initiatives, all connecting to the mission to deliver consistency and quality.

“One is stores that we operate,” he said. “We’re technically an independent. But we connect with auto dealers, sometimes even cobrand with them, represent them through certification.”

Second, DCR Systems now has licensed franchise stores. It began licensing just before the pandemic, and now has four.

“That’s been an eye-opening experience,” Giarrizzo said. “When you hand your playbook off, can somebody else implement it? Can

they grasp what that vision is through that playbook and be able to execute it? And how do we support that? So that’s been an interesting endeavor.”

Third, DCR now has a location that performs calibrations, and a second in the works.

which is not as easy for DCR Systems, since its shops are “out of network” for insurers.

“It’s a challenge for preparing the customer without scaring the customer, and then working out a reasonable settlement [with their insurer] without compromising the work that we’re going to do,” Giarrizzo said. “It’s not the greenest path. So we don’t suggest everybody run out and try this at home.

DCR Systems is headquartered in Mentor, OH.

“The main reason there, again, is around that safe and proper repair and making sure that we can take responsibility for that calibration and know that it’s done correctly,” Giarrizzo said.

Some of DCR Systems’ niche stores, focused on one or two manufacturers, also do their own calibrations to those automakers’ standards, Giarrizzo said.

The larger location supports more than a dozen manufacturers, and has grown to the point it is taking on outside work.

“[Calibration] is important today and you fast forward another five or six years down the road, it becomes even more important,” Giarrizzo said.

Fourth, DCR Systems developed CollisionClarity, its own software application that “essentially forces us to document everything that we do, whether it be through pictures, videos, position statements, manufacturers work, instructions, any industry supportive documents that we’re building,” Giarrizzo said.

The software then matches that supporting documentation to line items on a repair plan.

DCR Systems’ shops have “a completely tooled environment where we own every tool, every piece of equipment, all set up strategically by the people doing the work,” Giarrizzo said.

The technicians also complete formal quality verifications after every key step before moving on to the next, documenting them manually and electronically.

It’s all part of an effort to ensure a consistent, quality repair that creates a “customer for life,” Giarrizzo said,

“You have to balance between that customer experience and that concession that you’re going to make. It really digs deeply into our profitability and our ability to reinvest in the company. So it’s a balancing act today,” he said.

Establishing Partnerships with Dealerships

Giarrizzo said independent repairers interested in developing a similar business model must realize it’s a huge risk for a dealership to refer a customer.

“We’re representing [the dealership],” Giarrizzo said. “That customer is going to perceive that the dealer’s part of that experience.”

The independent shop must assure the dealership it will be well represented, and the customer will get a safe and proper repair with OE parts.

Metrics to Monitor, Improve Business

Giarrizzo said a lot of the metrics DCR Systems tracks are related to the customer’s experience. He said the company also tracks performance indicators for its relationship with its dealership partners.

“We don’t have really the traditional metrics that you see coming out of our industry,” Giarrizzo said. “Ours are on that leading edge looking for ways that we can actually fix something before it impacts the customer.”

For instance, DCR Systems classifies a “unit” as $100 of labor, regardless of the type of labor. That creates “a much more level playing field amongst our stores,” Giarrizzo said.

The shops also measure “units to ready,” meaning a car that is ready to be completely repaired, with an audited repair plan, received and verified parts, and completed mechanical and structural work —

a car that is “essentially ready for the finish line, which involves body repairs, prep, paint reassembly, detail,” Giarrizzo said.

“If we’ve got this ready inventory, 10 cars that are all kitted for completion right there, our priority becomes output,” Giarrizzo continued, looking at what the system needs to move faster — be it more people, solving a parts backup or simply more cars in the door. “We’re trying to balance that out on a daily basis to simulate a continuous, even flow. It works.”

Strandberg acknowledged a lot of the terminology Giarrizzo used is more in line with manufacturing and production, as opposed to collision repair.

Giarrizzo said “lean production” has become a buzzword over the last 20 years. He first learned about what would be considered “lean principles” while working as a regional manager for Sterling Autobody Centers in 2000, where they developed a “simple but not easy” concept of moving from a teardown to a strategic disassembly, to identify everything needed to complete the repair before it is started.

“We call it ‘pre-op’ for good reason,” Giarrizzo said.

The Future of the Industry

Giarrizzo said DCR Systems will be offering its CollisionClarity software to the industry in the next three to four months. It recently contracted with another firm to help optimize the user experience.

He said shops will likely need to become more “niche,” specializing in repairing two to four manufacturers’ vehicles to their specifications.

“Maybe those manufacturers are kind of clustered together, whether it be German brands or domestic brands or whatever it might be,” he said. “The main thing is to know your niche, become that expert, figure out how to market to that. That’s where we’re going.”

Key Takeaways

1. If you don’t have a niche, create one. If you do, find out how to advance and build around that.

2. Change the way work is done to attract your future. Break down your process to help expedite the training and knowledge for tomorrow’s workforce.

3. Documentation, documentation, documentation. Proving you did good work is becoming more and more important every day.

GM Facing More Lawsuits Over Driver-Behavior Data Sharing

By Abby Andrews Autobody News

General Motors has been named in more class action lawsuits over claims that it and OnStar collected driver data without consent and shared or sold it to LexisNexis Risk Solutions and Verisk Analytics — both named as defendants in the lawsuits as well — which in turn shared it with drivers’ insurance companies, leading to a hike in the drivers’ auto insurance premiums.

In June, the Judicial Panel on Multidistrict Litigation consolidated seven lawsuits filed in California, Florida, Michigan, New York and Pennsylvania in Georgia federal court, ruling that was the appropriate location because LexisNexis’ headquarters are located in Georgia. Another 13 cases were transferred to state.

LexisNexis and Verisk are charged with violating the Fair Credit Reporting Act, while all four defendants are charged with violating various state consumer protection laws and counts of tortious interference with contracts, invasion of privacy and unjust enrichment.

Since model year 2015, GM vehicles have been equipped to use OnStar and related branded apps,

including MyChevrolet, MyBuick and MyCadillac. The software and apps gather driver behavior data, including average speed, percentage of time driving at speeds over 80 mph, frequency and intensity of acceleration and braking, and latenight driving.

enhancement when, in actuality, the features are used by GM and OnStar to surreptitiously document and store driver-behavior metrics which are then sold for profit to third parties without the drivers’ knowledge, notice or consent,” one lawsuit said.

One of the suits was filed in federal court in Georgia by Brian LaFalce, of Michigan, who drives a 2023 Chevrolet Equinox. He downloaded the MyChevrolet app, but was not informed doing so meant OnStar would provide driving data to LexisNexis or Verisk. He was also not given the option to opt out of data collecting.

In addition, the apps also collect and transmit vehicle condition data, like engine or transmission status. GM says both are provided to the vehicle owner to “help them maximize their vehicle’s overall performance, reduce vehicle wear and tear and encourage safer driving,” one lawsuit said.

“These features are misleadingly marketed as a user experience

LaFalce said the insurance premium on his Equinox jumped 10% in 2024. When he asked for a copy of his consumer file from LexisNexis, he found 331 reports on acceleration, high speed and hard brake events, as well as when and how far he was driving. He also requested his Verisk file, which had another 100 recorded reports.

In March, GM and OnStar admitted to the data collecting practice, and said as of March 20, customer

data is no longer being shared with LexisNexis or Verisk.

Scott Hardy, founder and CEO of Top Class Actions, which reports on class action lawsuits, commented on the alleged violations committed by GM.

“Consumers have a right to privacy and the right to expect that their personal and driving data will be protected and used only for intended purposes,” Hardy said. “If the allegations are true, then any unauthorized sharing of driver data by GM with insurance companies could be a significant violation of their rights.”

GM has a responsibility to be transparent with customers about how their data is collected, used and shared, he said. Further, consumers have a right to be concerned about how their data might be used by insurers. “Information shared by companies with insurers could lead to discriminatory practices, such as unfairly increased insurance premiums or denied coverage based on driving habits that insurers deem risky,” Hardy said.

“If GM is found to have violated these laws, they should be held accountable and possibly face penalties to deter similar behavior in the future,” he added. “That’s why class action lawsuits can be so powerful.”

centers and phone lines.

Bloomberg reported an Eastern European group, later identified by several sources as BlackHand, launched the attack and sought an eight-figure ransom to end it. A U.S. cybersecurity agency said BlackHand shares code with another group in return for a cut of the cash. CDK has not disclosed whether or not it paid the group behind the ransom attack.

Publicly traded companies issued press releases noting they were “using alternative processes” until CDK is back. This included, as Bennett has experienced, a pen-and-paper approach.

On July 2, CDK said nearly all of the 15,000 car dealerships across North America were back online to its core management system.

Cliff Steinhauer, director of information security and engagement at National Cybersecurity Alliance in Washington, D.C., warned against a “decrease in workflow due to delayed parts shipments and service

approvals” in an email to Autobody News in late June, before CDK restored service.

Bennett said it hadn’t come to that for his shop. “I’m sitting on five or six weeks of work,” he said. “But it definitely disrupts the workflow.”

He went from next-day parts delivery to who knows when. The two dealerships Bennett works with are a large one he estimates holds between $4 million and $12 million in warehouse inventory, and a smaller local one. Even the latter, not on the CDK system, was affected when it gets parts from the larger one.

Bennett is part of a buying group of 24 independent shops in Iowa, Wisconsin, Minnesota and South Dakota, and all felt the effects.

“Every shop in Iowa is being affected,” he said in late June. “We have three major dealerships in the state which supply 75% to 80% of the parts” to Iowa shops.

Body shops weren’t the target of the ransomware attack, but they felt the aftershocks.

“It’s hard to plan for a supply chain disruption of this magnitude,” Bennett said.

with household incomes at or below 400% of the federal poverty level.

The Specialty Equipment Market Association (SEMA), which supported the bill, released a statement June 15 expressing its disappointment in Newsom’s veto.

SEMA said California already has several programs incentivizing the purchase of new zero-emission vehicles, but nothing to help residents convert existing gas- and dieselpowered vehicles, which would bolster clean air, reduce carbon emissions and fuel job growth.

“California’s reputation as an

innovation hub rings hollow with this veto,” the statement said. “SB 301 was poised to be a catalyst for progress. This bill represented a chance to supercharge the [aftermarket] industry, aligning seamlessly with the governor’s stated priority of advancing cleaner vehicles.”

“SEMA is profoundly disappointed by Gov. Newsom’s lack of foresight in vetoing SB 301,” said Mike Spagnola, SEMA’s president and CEO. “This legislation would have advanced environmental sustainability and leveled the playing field for aftermarket conversions while fostering innovation, supporting small businesses, and providing consumers with affordable and sustainable transportation options.”

How Puget Collision Became a Powerhouse MSO With Franchise, Private Equity Backing

By Abby Andrews Autobody News

Joe Morella is the CEO of Puget Collision, a large consolidator originating from the Pacific Northwest but growing quickly. He recently made a guest appearance on The Collision Vision podcast, hosted by Cole Strandberg and driven by Autobody News, to talk about how joining a franchise and taking on a private equity investor helped him grow Puget Collision, and give insight on what spurred his success as an owner in the collision repair industry.

Founding Puget Collision

Morella got his start in the collision repair industry in late 1999, when he began working with what he called the first regional MSO in Washington State. It expanded to six locations before it was sold to another larger MSO.

Morella later worked for a large national MSO until 2020, when he opened his own repair facility, Six months later, his shop joined Fix Auto USA. In 2022, Fix Auto’s parent company, Driven Brands, offered Morella the chance to buy 10 of its corporately-owned stores in the Northwest, which became the springboard for what is now known as Puget Collision.

Today, Puget Collision operates 53 stores in the CARSTAR and Fix Auto franchises in Washington, Oregon, Idaho, California and Colorado, employing about 600 people.

Morella said he took a leap of faith when he agreed to join Fix Auto, which at the time only had 47 stores in the nation and was struggling to gain a foothold in the Northwest. Today, it operates more than 200 locations.

“I was able to open up the Oregon market, the Idaho market, the Colorado market for this organization,” Morella said. “It really was a true education in every sense of the word on what it takes to scale a business in our industry.”

Morella said he also saw how much power MSOs have in the collision repair industry. “There’s a reason why consolidations are at an all-time high,” he said.

The relationship with Driven Brands benefited his business too, as he went from an independent shop to part of a large network that shared resources and provided a level of protection and support as Puget Collision grew.

“Being in that system was the

catalyst for our revenue growth when I had my one location,” Morella said. “We more than doubled our sales within that first year, because it allowed us to bring in some really large DRP partnerships that just weren’t available to me as an independent during COVID. That allowed me to explore and open more locations.”

culture and maintain control of it, one that gives its employees autonomy and the room to take chances and make mistakes.

“We want the store leadership to operate in the best interest of that store,” Morella said. “I don’t really subscribe to one-modelfits-everything. because we have different personnel, different size

When Puget Collision began expanding into other states, having the national brand recognition of CARSTAR and Fix Auto helped establish relationships with insurance companies.

Private Equity

To start growing Puget Collision in the years following the pandemic, when bank loans weren’t easy to get, Morella found a private equity firm to invest, Eagle Merchant Partners, based in Atlanta, GA.

That required giving up some equity in Puget Collision, but Morella said that was a good decision in the long run. “Owning some of a much larger stake is certainly a lot better than owning everything of a smaller stake,” he said.

The first quarter post-acquisition was key, as was having a strong operational “playbook” to guide it.

“If you can’t deliver that first quarter, it’s going to be hard to ask for more funding to grow the business,” Morella said.

“Our model on acquisition is really focused on buy, build, integrate. Let’s make sure that our playbook is fully instituted and then buy again,” he said. Growing just for the sake of being greedy is not the right philosophy — “That’s a recipe for disaster if you ask me.”

Business Culture

His time working for a large MSO taught Morella a business’ culture can change as it scales. He started his first shop so he could build his own

level understanding of where their business stands and then figure out a plan to get it where they want it to go.

“Do you know what your sales per square foot are? These are things that the industry wants to know. Are you investing in equipment? Are you investing in OEM certifications? Do you have legitimate profit and loss statements?” Morella said.

Trends Shaping Collision Repair

Morella said it’s no surprise the industry is seeing mass consolidation as many independent owners age out.

Since collision repair doesn’t have a “big boom or bust scenario” because it’s close to a B2B industry — shops work with auto insurance companies — it is appealing to private equity investors.

stores, different mix of work. We rely upon our store leaders to know what’s in the best interest of their location.”

Scaling Your Business

Strandberg asked Morella what advice he had for people who own two- or three-location independent shops and want to scale their business in their region or across multiple states.

The playbook is important, but having the right people to help a new acquisition’s employees adapt to it is the biggest key.

“We’re not talking just for a week or two, but we’re talking for a month or two months,” Morella said. “Let’s make sure we’re side by side with them, and bring that business fully into Puget, fully integrated into our organization.”

When Puget first expanded into California and Colorado, Morella’s team spent six months at the new acquisitions to ensure they had fully adapted to Puget’s playbook.

“Those stores are operating great today,” he said. “That gave us the level of comfort like, OK, now let’s go execute on the next rounds of acquisitions.”

Morella estimated about half of the shops Puget has acquired have needed to be updated, in terms of equipment, technology or repair processes. It has sometimes been difficult to get those shops’ employees to see the revenue growth potential and get on board with the changes.

Owners also need to have a high-

“There’s a steady stream of revenue and work in process and business growth that is attractive to [private equity], so they’ve deployed capital to the MSOs that want to grow and prosper,” he said. “I would say in 10 years, we’re probably at maybe four to six MSOs left. Certainly in 20 years.”

Morella also predicted more national MSOs will follow the lead of The Boyd Group, which owns Gerber Collision & Glass, and go public. He expects Caliber to do so in the next 12 months.

“At that size and scale, it’s going to continue to drive more consolidation,” he said.

AI estimating is gaining traction. “It’s fairly accurate,” Morella said. “I wrote an estimate in 90 seconds, and I’d say it was probably about 85% accurate.”

He doesn’t think it will replace estimators, but act as a tool to make them more efficient. AI can’t have an interaction with the vehicle owner like the estimator can, Morella pointed out. “That takes another human being to express what’s occurring,” he said. Using new technology more in repairs also helps attract young people to the industry, he said.

Key Takeaways

If you want to stay in the collision repair industry long term, explore the franchise model. “You need assistance growing your revenue or growing the footprint,” Morella said. If you are planning on selling in the next five years, get your shop ready. “Understand what the needs of the industry are going to be when you want to exit. Don’t wait till the end and just say, OK, I want to sell it,” he said.

Fix Auto Anaheim in California is one of Puget Collision’s 53 current locations.

‘Don’t Let the Consolidators Scare You’: Better Collision Centers Follows Its Own Path To Success

By Abby Andrews Autobody News

Jonathon Best is the CEO of Better Collision Centers, a Carolina-based regional MSO established in 2021 that now has seven stores and is growing quickly. He joined The Collision Vision podcast, hosted by Cole Strandberg and driven by Autobody News, to talk about how he is scaling his business, why culture is key, and why consolidation is good for all shop owners.

From Lot Porter to CEO

Though his father worked in the collision repair industry, Best never pictured himself following in his footsteps. But when Best needed a flexible work schedule in college, the Charleston, SC, shop where his father was working was one of the only employers that could provide that and pay enough to make ends meet. Best started working parttime as a lot porter. Later he joined the parts department. Eventually he became an estimator, and then a service advisor.

After that, Best worked his way up through the office, becoming assistant manager and then an area manager. At 25, he became the shop’s CEO.

“I helped the company grow,” Best said. “I want to say we had four or five stores at the time. We grew from five stores to 10 stores.”

About five years later, when Best was 30, the owner wanted to sell the company. “I was not ready for that,” Best said. “So we moved on, and we created Better Collision Centers.”

Consider Your Capital

Best said the biggest hurdle singleshop owners face when trying to grow their business is capital.

“Interest rates are out the roof; banks are not wanting to lend,” Best said. “Where are you going to get your capital to grow?”

Best said he expected Better Collision Centers to have twice as many stores now as it does, but it “ran into this post-COVID world of capital.”

“We’ve had to think a little bit more strategically on growth, and not just go off to the races like you see with some of these private equity-backed groups that are just acquiring everything around you,” Best said.

“That doesn’t mean that we’re not going to get caught up,” he said. “We’re at seven stores now, and next

year we’re going to try to open twice as many.”

Better Collision Centers has spoken to private equity firms, Best said, but the company prefers traditional debt — bank loans and small investors — as it grows mostly through green- and brownfield locations, rather than acquiring other shops.

“We’ve had some amazing offers, but anytime you bring [private equity] in, it’s going to cost you something.

When that technology becomes available, Best said his company wants to be ready to implement it — and customers will know.

“We love marketing, so you’re going to know right away if we bring a robot on property, I promise that,” he said.

Creating a unique brand and effectively marketing it is vital for a regional MSO’s success, Best said.

“If you truly want to get your voice out there, you do amazing things

They’re going to take a fairly large piece of your company,” he said.

New Vehicle Technology, New Opportunity

Better Collision Centers was subletting out ADAS recalibration work until Best attended the 2023 SEMA Show, where he learned just how much ADAS was forecasted to grow in the coming years. “It’s going to get more dynamic and more complex,” he said.

He started looking at ADAS as an opportunity to diversify his business. Better Collision now has four mobile calibration vehicles that service all of its own stores, as well as a growing list of other area shops.

“It’s another segment for us when we enter new markets,” he said. “We’re finding a lot of other shops are having trouble with their sublets, making a decent margin on it. Because we’re from the collision space, we understand their needs a lot better. We’ll put the paperwork and the invoicing together in a way that helps them get the money they need with their insurance carrier.”

Better Collision is also exploring how robotics can help streamline its shop operations.

“Some of these robots can be programmed to pick up parts and carry them around your parking lot,” Best said.

Don’t Fear the Consolidators Consolidation will never stop, Best said, but it is not something to fear.

“I was terrified of consolidation. I was reading the news articles. These guys just got $500 million and shops were getting gobbled up left and right all around us. And then we realized what was happening,” Best said. “At the time, our opportunity was just a two-lane road. But the more consolidation that took place, the opportunity opened up into an endless highway, a 12-, 18-lane highway of opportunity.

“I think consolidation is great for business,” Best said. “I think it starts allowing your regional MSOs to truly be the place to be the home for talent to go to.”

Large consolidators also help all repair shops negotiate better pay rates from insurance companies, Best said.

“A bunch of independent MSOs have a lot of trouble standing arm in arm and getting things done,” Best said. “The big boys step in. It’s a huge help for us all.

and share it,” he said. “Get that stuff. Get it on video, get it in pictures and text and get it out there so the world could see.”

Better Collision is also looking into programming its central call center to run through an AI control dashboard that will answer the phone, book appointments and text customers.

Culture First

Better Collision’s “culture-first” strategy is the real driver of growth, Best said, as it has helped attract top talent among technicians and management. But it has to be authentic.

“Practice the culture you preach,” he said. “It’s easy to talk about it, but I find it the more we grow, the harder it is to practice it, because you get so caught up in the mundane items. But we put a huge emphasis on it.”

The company’s culture focuses on integrity, transparency and doing better.

“That’s why we came up with Better Collision — we want to do everything better,” Best said, from the quality of repairs to customers’ and insurers’ experience working with the company.

“Our culture is pretty much the only thing, as a regional MSO, that will allow you to stand out,” Best said. “That’s your edge. That’s always your edge. You can create relationships with teams and individuals that they can’t replicate.”

“Don’t let the consolidators scare you. We talked to a lot of different independents, and they’re always so terrified of where the next Caliber over the next year is going,” Best said. “Do you really have enough time to worry about that? Really?

“I think that we all need to focus on our businesses, and don’t let that consolidation around you scare you. Focus on your people, your culture, the quality of repairs, your relationships,” he added.

Better Collision uses a combination of buying brownfield locations and renovating them itself, or asking one of its property investors to buy the location and renovate it before selling it to Better Collision. It also sometimes leases buildings.

“For us, it’s not one path. It was before. But we’ve learned quickly…it has a lot of weight on what choice we do, on which property, which market we’re going to,” Best said.

Key Takeaways

Consider your capital source. Don’t take on a private equity investor unless you have someone in your organization with strong financial experience.

Stay focused on your mission. Don’t let industry swings and consolidators scare you or disrupt you. Focus on your people.

Don’t forget about your culture. Culture is top of the food chain.

Learn

New State Laws Address Insurer Bad Faith,

by John Yoswick Autobody News

Though the 2024 legislative session has ended in some states, others that meet year-round continue to review proposed laws that would have a variety of impacts on the collision repair industry.

The New York Senate, for example, in early June passed a bill that would require community review, including a hearing, of all motor vehicle repair shop applicants, sending that bill to the Assembly for consideration.

That same week, the New York Assembly unanimously approved a bill that would require that state’s Department of Motor Vehicles to conduct a study to potentially update the requirements of vehicle safety inspections there, particularly with regard to new vehicle technologies. That bill moved to the Senate for review.

Virginia Gov. Glenn Youngkin has signed into law legislation that allows an insurer to be found as acting in bad faith if it fails to pay a reasonable settlement demand made by the insured within the policy’s coverage limits. A 2017 court ruling eliminated the requirement that such decisions be made in good faith. Youngkin signed the legislation after lawmakers agreed to his recommendation that it be amended to require claimants to provide 45 days notice of such a demand and to provide documentation for the insurer to assess.

The Automotive Service Association has been urging shops in Michigan to contact their lawmakers in support of legislation that could reduce state registration fees and regulatory requirements for auto repairers with multiple facilities if those facilities are in close proximity to one another and are an extension of a main facility rather than operating independently.

“It makes no sense for an auto repairer to have to pay for and go through the process of registering twice for a single business operation just because it operates out of two or more buildings,” said Roy Schnepper, owner of Butler’s Collision in Roseville, MI, and an ASA board member. “Running an auto repair business is a practice in small margins. Every dollar counts.”

Tom Piippo, owner of Tri-County Motors in Rudyard, MI, agreed.

Mississippi Gov. Tate Reeves has signed legislation that prohibits the sale or installation of counterfeit or non-functional airbags or other supplemental restraint system parts, and Utah Gov. Spencer Cox has signed into law a similar bill.

and prohibit repairs or maintenance if the registration is not current. The bill calls for a fine of up to $300 for violations.

Since insured vehicles are more likely to be repaired following a crash, it’s potentially good news for

Both chambers of the Illinois legislature have passed similar legislation related to airbags. Both chambers also passed a bill that, effective July 2025, requires insurers to provide the policyholder with a brief description of how a total loss determination was made, “including any available repair estimate, estimated vehicle salvage value, assessed market value, and other costs and calculations used.” Either bill becomes law if signed by Gov. J.B. Pritzker

Kentucky Gov. Andy Beshear this spring signed into law legislation prohibiting insurers from requiring the use of a particular auto glass shop. The new law also requires that glass installers to notify consumers if their vehicles will require ADAS calibrations and whether the glass provider can do those calibrations.

Connecticut Gov. Ned Lamont this spring signed into law a bill that allows required DMV inspections of salvage vehicles to alternatively be conducted by DMV-authorized repairers.x

Also this spring, the California Senate approved an amended bill that would require that all new passenger vehicles by model year 2032 be equipped with an alert system to notify the driver if the vehicle is traveling more than 10 mph over the posted limit.

collision repairers that Maryland Gov. Wes Moore has signed into law legislation that requires insurers to participate in the state’s online verification system for auto insurance policies. About 15.1% of Maryland drivers lack insurance — about a full percentage point above

the national average, according to a 2022 estimate by the Insurance Research Council.

A bill introduced in Mississippi that would have defined a “proper repair” as one performed “pursuant to the OEM repair procedures and using OEM or OEM-equivalent parts that have been properly tested…to meet the manufacturer’s specifications” died in committee.

Some state legislative sessions ended without passage of some bills impacting the industry. The Washington state legislature, for example, adjourned without passing bills that would have given policyholders there the right to call for an independent appraisal when there’s a disagreement about repair costs. The Idaho legislature adjourned without passage of a bill that would have required estimates including non-OEM parts to state that such parts “may affect the safety and performance of your vehicle.” The notice also would have recommended “that you consult with a qualified industry expert or repair shop before making any decisions regarding the use of nonOEM crash parts.”

“Anyone who runs a small business knows that time is money, and that adage is especially true for small independent auto repairers,” Piipo said. “Instead of having to go through the renewal process every year, [this bill] would allow me to renew every four years.”

Indiana Gov. Eric Holcomb signed into law a bill that requires anyone purchasing a rebuilt or salvage vehicle to sign a written acknowledgment that the vehicle status was disclosed.

A bill introduced this year in Missouri would require any business repairing a motor vehicle to confirm that vehicle’s registration is current,

after taking regional honors in their Panhandle backyard five years running.

At the 2023 SEMA Show last November, Solesbee also snagged “Executive of the Year” honors for single-shop owners, presented at the Collision Industry Red Carpet Awards Night.

It’s swell and all, but to Solesbee, it’s just Thursday.

A How-To

“We didn’t attend the event,” he said of the state prize. “A friend sent me a picture and said, ‘Congratulations. You won.’”

The SEMA crystal stemmed from a trade magazine article that automatically made the shop a candidate.

“We knew nothing about it,” Solesbee said, “but my wife says to ‘own it.’”

Not that he’s slacking on Thursdays.

“Indie shops are about culture, the customer, and certifications.”

Of culture: “You have to find people with the same mindset,” Solesbee said. “We’re doing the best we can …

because that’s what’s right.”

Of customers: “Those who don’t find us the first time, find us the second, because of the experience they had” elsewhere.

Of certifications: “We hold the most in the area,” Solesbee said. He trains workers to the certifications, pays them more for nailing it.

He values his Rivian, Tesla and Ford certifications highest. EVs are obvious options; Ford cracks the toptier with all-aluminum bodies.

“It’s built more like an aircraft, using some crazy adhesives” and specialty rivets and welding, Solesbee said. “They rival Tesla for complexity of repair.”

Also: “We push against the insurance companies, and don’t cut corners.”

Jumping In

“I’m sure there’s someone who can do this better than me,” Solesbee said, even if a good slice of Idaho disagrees. “I wouldn’t claim I’m the best leader, but I’m genuine, and customers feel we’ve got their best interests at heart.”

Solesbee grew up breathing steel dust. His dad owned a SoCal shop, which Solesbee’s brothers now run.

Solesbee’s eldest son, Zachry, is training in his shop as an estimator.

“He handles our Rivian account,” Solesbee said.

The Solesbees moved to Idaho in 2017, bought a CARSTAR franchise territory, and the next year found a shop to convert to the brand. Solesbee felt it aligned with his ways doing business. “They let us run it how we want,” he said.

The shop is 11,000 square feet, treating 60 cars a month. All-in on painters, technicians and apprentices from a local college, there are perhaps 10 bodies at work, excluding the cars. Solesbee fixes law enforcement vehicles.

The previous owner’s best revenue month was $65,000. Solesbee’s first month was half that. One month this year hit $350,000. The shop won the Panhandle region “Idaho’s Best” starting in 2020.

Feet of Clay

The company behind the contest, Inbound Systems, by email declined comment. According to its website, the Idaho-based marketing services firm has offices in five other states. Idaho’s contest this year, the website said, had 2,761 nominees in 297 categories, and counts “tens of thousands of votes.”

The contest is free. A customer nominates you, Solesbee said.

Google Reviews and voting figure big. His shop’s Google entry shows 4.9 stars out of 5 on 286 reviews, and 4.8 stars out of 5 on 817 from Carwise.com.

He hasn’t used Inbound Systems’ marketing, but did buy an ad in the magazine it prints celebrating winners.

So, has Greg ever blown it? Gotten it wrong? Failed?

Well, a family of six, a dog and two chickens sold everything in California to move. It lived in a fifth wheel for seven years before getting a house. Smack in the midst of that, COVID hit. Savings, some to support workers, evaporated. Solesbee skipped meals. Wondered if he’d made a big mistake.

“If you didn’t believe in God before you start a business, you will after,” he said.

Idaho, Driven

Idaho has some 130 body shops statewide, according to Matt Thornton, former executive director of state trade group, the Idaho Autobody Craftsman Association. A third are in the panhandle, and two-thirds are indie shops — though MSOs have made inroads of late, especially post-COVID.

Thornton owned Parks Royal Body Works in Boise for 22 years, before

selling to Caliber in January 2021.

“My dad owned it before me,” he said.

Thornton said, “any accolade is good … it adds to the value of your reputation,” emphasizing the underlying strength of a triumph: Google reviews and community involvement to build goodwill and name recognition.

“People buy from people,” agreed Andrew Neldeberg, senior marketing manager for the CARSTAR system, part of Driven Brands Holdings Inc., based in Charlotte, NC. It has some 750 locations, Entrepreneur’s Franchise 500 shows.

CARSTAR “encourages locations to get active in their communities” and with charities, the Cystic Fibrosis Foundation being corporate CARSTAR’s favorite choice.

Tesla Ordered To Fix Air Quality Violations At Fremont, CA, Factory

Tesla has been mandated by the Bay Area Air Quality Management District (BAAQMD) to rectify “ongoing air quality violations” at its Fremont Factory in Northern California, to curb the frequent and significant emissions issues linked to the factory’s paint shop operations.

posing risks to public health and the environment.

“Tesla’s ongoing violations at their Fremont facility pose a risk to public health and air quality in the surrounding community,” said Dr. Philip Fine, executive officer of the BAAQMD. “This order is crucial to ensure that Tesla takes

The BAAQMD issued an abatement order June 25 to halt the persistent violations. The agency said Tesla has accumulated more than 112 notices of violations related to air quality since 2019. Each of these violations has the potential to emit hundreds of pounds of illegal air pollution,

prompt and effective action to stop harmful emissions and comply with all air quality regulations to protect the health of those living near the facility.”

Some of the violations stem from breakdowns in the factory’s thermal oxidizer or other components of the abatement

system, leading to periods where emissions are vented directly into the atmosphere without proper treatment. Additionally, Tesla has manually shut down the abatement system during equipment issues in the paint shop, exacerbating the problem.

To address these issues, the BAAQMD has outlined a twostep process for Tesla. First, the company must hire a third-party consultant to evaluate the situation and provide recommendations. Tesla must then develop and submit an implementation plan based on these recommendations to the hearing board for approval. Second, Tesla must execute the approved plan to prevent the avoidable release of uncontrolled emissions, except in cases where it is necessary for safety reasons.

This is not the first instance of air quality concerns at Tesla’s Fremont Factory. In May 2021, Tesla agreed to pay a $1 million fine and install a solar roof project on top of the production plant as part of a settlement with the BAAQMD after 33 violations were identified.

CAWA Awards 2024 Scholarships To Automotive High School Teachers

CAWA awarded its 2024 Motorcar Parts of AmericaSelwyn Joffe Awards scholarships to four deserving teachers. The scholarships, announced by CAWA President and CEO Rodney Pierini, aim to enhance educational resources and opportunities within the automotive sector.

“CAWA is proud to assist these automotive high school teachers, in part, to assure their programs remain viable and well-resourced for the benefit of their students and our industry,” said Pierini.

The 2024 scholarship recipients include:

Keith Benson, Petaluma High School: awarded funds for classroom supplies

Gregory Kraus, Amistad High School: provided funds for certification

Chris Waller, Claycord STEM Program: granted funds for classroom supplies

Brian Wheeler, Alhambra High School: received funds for

student national competition during SEMA

CAWA’s primary fundraising effort for these scholarships is the annual dinner gala, held the Sunday night before the AAPEX and SEMA shows. This year’s event is scheduled for Nov. 3 at the Venetian Hotel in Las Vegas, sponsored by Motorcar Parts of America.

Those interested in contributing to the scholarship program or donating prizes for the 2024 fundraising auction can contact Autumn Lamb of GSP North America at autumnl@ gsp-na.com or 909-354-1598, or Pierini at 800-332-2292 or admin@cawa.org.

Further details are available at www.cawa.org.

Stellantis Plans Major Job Cuts, CostCutting Measures

In a recent investor meeting, Stellantis CEO Carlos Tavares unveiled a 30% cost-cutting strategy aimed at bolstering the company’s competitiveness against Chinese automakers. The move is expected to result in considerable job losses, particularly at the Auburn Hills, MI, office tower.

The cost-reduction plan targets operational efficiencies and cost competitiveness. “We have at least two plants that need a significant turnaround, at least two,” Tavares said. European plant managers will be brought in to oversee the changes.

A key component is the “EV first strategy,” designed to streamline operations and focus on EV production. “By the way, when we compare to Leapmotor [a Stellantis-owned Chinese auto manufacturing startup], those 30% cost-competitive edge is what I’m always talking about,” Tavares noted.

Auto analyst John McElroy told Local 4 that Tavares’ approach is taking an “axe” to the company’s expenses. “The old Chrysler group as we know it in Auburn Hills is

going to be a mere shadow of itself in just a couple of years,” he said, predicting substantial layoffs. McElroy estimated thousands of

“By the way, when we compare to Leapmotor [a Stellantis-owned Chinese auto manufacturing startup], those 30% costcompetitive edge is what I’m always talking about,”

CARLOS TAVARES

jobs could be at risk as Stellantis moves to outsource engineering to lower-cost countries like Turkey and Morocco.

The potential sale of the Auburn Hills headquarters building looms as Stellantis reduces its need for extensive office space.

“The tower almost undoubtedly will be up for sale,” McElroy said.

Stellantis Media Relations was not available for further comment, but industry insiders suggest the layoffs could begin as early as July.

WyoTech Celebrates Alumni With 2nd Annual Hall of Fame Class

WyoTech recently celebrated its second annual Hall of Fame event, recognizing alumni who have made significant contributions to the automotive, collision/refinishing, diesel and welding industries. The ceremony coincided with the WyoTech Annual Car Show.

Founded in 1966 and located in Laramie, WY, WyoTech has graduated nearly 60,000 students, offering hands-on training that prepares them for various technical careers. The Hall of Fame, launched in 2023, acknowledges graduates for their leadership skills, philanthropy, character and professional achievements.

Phillip Cato, a U.S. Air Force veteran, attended WyoTech after his service and eventually opened his own upholstery shop.

Brothers Travis and Tyler Groth, who graduated in 2003, transitioned from the diesel industry to founding Mirror Image Racing, a Monster Truck team.

After years in a local body shop, Rick Crook sought formal training

at WyoTech, which enabled him to purchase his own collision shop.

John Hurd, a 1990 graduate, combined his construction and auto body experience to teach at WyoTech before managing at RDO Equipment Co.

Lon Phillips, inspired by mechanics and engineering from a young age, established a diesel equipment technology program at Lanier Technical College after his WyoTech education.

Ian Vance turned his childhood dream of building cars into reality by opening “Rods and Fab,” using the skills he honed at WyoTech daily.

Richard Wood, a 1982 graduate, built Custom Car Crafters into one of Texas’s largest body shops. After selling CCC, he continues to operate a smaller custom shop.

WyoTech provides comprehensive training programs, including a new sixmonth welding and fabrication program. For more information about the Hall of Fame inductees, visit WyoTech.edu/HOF.

Due To Sudden Downshift Issue

Ford is recalling more than 550,000 2014 F-150 pickup trucks in the U.S. due to a transmission defect that can cause the vehicles to unexpectedly downshift to first gear at any speed.

The automaker said a lost signal between the transmission speed sensor and the powertrain control computer causes the truck to downshift unexpectedly. This sudden downshift can result in drivers losing control of their vehicles, raising the risk of crashes.

“This issue can lead to a loss of vehicle control, which increases the risk of a crash,” Ford said in documents released by the National Highway Traffic Safety Administration (NHTSA).

Ford said drivers might see an illuminated malfunction indicator light after the downshift. In some cases, the signal could be restored while driving and the truck will resume normal function. In others, the truck may need to be

stopped and restarted to get the transmission to work properly again.

Ford will update the powertrain control software at no cost to the owners. Notifications will be sent out to owners beginning July 1, and repairs are expected to be available in the third quarter of this year.

The recall follows an investigation initiated by the NHTSA in March, after it received complaints from owners experiencing abrupt downshifts. The investigation turned up 396 warranty and field reports and 124 customer complaints, involving 482 trucks. Additionally, there were 130 complaints to the government, with 52 alleging rear wheel lockups or loss of vehicle control. Notably, two complaints reported injuries and one reported a crash potentially caused by the issue.

Owners of any vehicle can check for open recalls using their vehicle’s VIN or license plate number at www.nhtsa.gov/recalls.

California Commission Approves Waymo Robotaxi Expansion

The California Public Utilities Commission (CPUC) recently approved Waymo’s autonomous vehicle (AV) “robotaxi” expansion into more parts of California beyond San Francisco, including the peninsula surrounding that city and Los Angeles.

CPUC approved the expansion in March, but its implementation was delayed by opposition from officials in San Mateo County, on the peninsula, and Los Angeles, which wanted local authority over whether or not to allow the robotaxis in their jurisdictions.

A lawsuit against CPUC, filed by San Francisco City officials over the original introduction of Waymo’s robotaxis to the city, still has yet to be settled.

In addition, state Sen. Dave Cortese, D-15, is considering reintroducing a bill next year that would give local governments regulatory control over AVs. Cortese first introduced the bill earlier this year, but recently withdrew it because he said a state Assembly committee was prepared to amend the bill to strip the “essential element of local control,”

according to a press release from Cortese’s office.

The CPUC’s approval drew strong condemnation from the Teamsters Union, who argue the decision compromises public safety.

“The CPUC decision to approve the deployment of robotaxis through California leads our state down a dangerous and irresponsible path as this technology continues to fail,” stated Peter Finn, Teamsters Western Region international vice president and president of Teamsters Joint Council 7.

Finn referenced a recent incident where Waymo had to recall nearly 700 driverless cars following a collision in Arizona. Despite this, the CPUC chose to support Waymo’s expansion, prioritizing the interests of Big Tech over the safety concerns raised by California residents and public safety experts, Finn said.

“Public safety decisions should not be made by regulatory bodies that cater to executives of billiondollar tech corporations,” said Chris Griswold, Teamsters

international vice president atlarge and president of Teamsters Joint Council 42. “The Teamsters have been advocating for common sense AV regulation to protect public safety. As state regulators carelessly approve the expansion of AVs in other parts of California, it becomes even more critical for state lawmakers and elected officials to start listening to the public and to workers.”

In October, the California Department of Motor Vehicles announced the immediate suspension of the testing permit for GM’s self-driving subsidiary, Cruise, due to an “unreasonable risk to public safety,” after one of its robotaxis was involved in a serious incident in San Francisco that injured a pedestrian. Cruise voluntarily halted testing in other U.S. cities after the suspension, but recently resumed testing in Phoenix.

Fix Network Announces 2025 Global Conference

Fix Network announced its highly anticipated Global Conference will take place April 27-May 1, 2025, at the luxurious Dreams Playa Mujeres Golf & Spa Resort in Mexico. The event promises to be a unique blend of business and inspiration, drawing network franchisees, company leaders, valued sponsor partners and special guests to a tropical paradise.

Set in the heart of the Mexican Caribbean north of Cancun, the all-inclusive, allsuites resort offers a stunning backdrop for the biennial event.

The Dreams Playa Mujeres Golf & Spa Resort combines modern meeting facilities with impressive accommodations and amenities, ensuring a memorable experience for all attendees.

Building on the success of the 2023 Global Conference in Orlando, the 2025 event is expected to deliver an exceptional agenda filled with insights from industry and business leaders.

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Cascade Collision Repair Acquires Lone Peak Collision in Utah

Quality Collision Group’s entity, Cascade Collision Repair, expanded its footprint with the acquisition of Lone Peak Collision in Midvale, UT, increasing Cascade’s total locations to 10 across northern Utah.

“Bringing Lone Peak Collision into our team is a big deal for us,” said Navada Smith, VP of operations for Cascade Collision Repair. “This means we can offer our outstanding repair services to even more customers in Salt Lake County. We’re excited about the new opportunities this acquisition brings and look forward to carrying on the great work Lone Peak Collision has been doing.”

The new Midvale location, which was rebranded June 13, is set to offer a comprehensive range of services including OEMcertified repairs and exceptional customer service.

Cascade Collision Repair’s growth strategy has been fueled by private equity-backed acquisitions, starting with Quality

Collision Group’s purchase of Cascade on Jan. 1. The company’s Utah presence is further solidified with plans for three additional locations across the state, all scheduled to open within the next 18 months.

“Great people and an amazing workplace culture, the continued growth of Cascade Collision has been remarkable,” said Matt Robbins, COO of Quality Collision Group. “With more shops on the horizon, Quality Collision Group is excited about what the future holds for Cascade Collision Repair.”

Cascade Collision Repair in Midvale operates from 8 a.m. to 5 p.m. Monday through Friday. For more information, visit www. cascadecollision.com.

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BMW Issues Recall For Nearly 395,000 Vehicles Over Takata Airbags

BMW announced a significant recall affecting nearly 395,000 vehicles in the U.S. due to concerns over potentially explosive Takata airbags. The recall targets specific models to inspect and replace sport or M-sport steering wheels that may have been equipped with these faulty airbags.

The recall involves the following models:

2006-2011 BMW 3 Series Sedan (324i, 325i, 325xi, 328i, 328xi, 330i, 330xi, 335i, 335xi)

2006-2012 BMW 3 Series Sportswagon (325xi, 328i, 328xi) 2009-2011 BMW 335d According to BMW, “Certain vehicles may contain a sport or M-sport steering wheel equipped with a Takata driver’s front air bag module that contains a

PSDI-5 inflator that could have been installed by an owner, even though it was not officially offered or approved by BMW as a replacement part. The originally equipped air bag module did not contain an inflator with ammonium nitrate.”

The main concern is that these airbag inflators, which contain ammonium nitrate, can degrade over time and potentially explode when deployed, posing a serious risk to vehicle occupants. BMW will replace any Takata airbag modules identified by an inspection.

BMW expects to begin mailing recall letters to owners Aug. 23. The company urges owners to respond promptly to ensure their vehicles are inspected and, if necessary, repaired without delay. For further assistance, owners can contact BMW customer service at 800-525-7417.

This recall adds to the long list of vehicles affected by the widespread Takata airbag issue, which has impacted millions of cars globally.

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WIN Scholarship Campaign Raises Almost $10,000 To Support Students

The Women’s Industry Network (WIN) successfully raised $9,670 through its 2024 Scholarship Fundraiser Walk and Donations programs, supporting a record 30 scholarships awarded to students in collision repair technology programs.

WIN’s annual scholarships are presented to deserving female students enrolled in post-secondary collision repair technology programs. This year’s fundraising success, combined with group sponsorships and general fund commitments, allowed WIN to provide $30,000 in scholarship support.

“The Women’s Industry Network’s mission is to support and enhance the role of women in the collision repair industry, promoting education, professional advancement and networking,” said Laura Kottschade, 2024 chair of the WIN Student Relations Committee. “This also grows the collision industry’s much needed workforce — and that is why WIN and its sponsors play an important role in supporting and educating tomorrow’s collision repair professionals — today.

“These additional funds also complement what our sponsors and our general fund provide, and have allowed WIN to award a record number of scholarships this past year alone,” she added.

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April Keim and Christina Sepulveda, WIN Scholarship Fundraising co-chairs, noted the success of this year’s efforts. “We separated the Scholarship Walk, support sales items, and the Scholarship Fundraiser to simplify and expand it for participant involvement,” the co-chairs said.

The additional funds were raised through a series of initiatives, including the on-site Scholarship Walk held at the WIN Annual Conference in May in Newport Beach, CA, an ongoing donation campaign, and sales of SWAG and

Audi Part Professionals are experts on collision parts, replacement components and mechanical items.

“We’re especially proud of all the individuals, as well as the corporate/business involvement, with the top three organizations recognized by their generosity.”

The top three businesses contributing to the fundraiser were Enterprise Mobility with $1,700, Classic Collision with $1,190, and Jerry’s Abra Auto Body & Glass with $1,000.

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mission to enhance the role of women in the collision repair industry,” said Mary Mahoney, vice president of Enterprise Mobility. “As a leading provider of mobility solutions, Enterprise Mobility has a major stake in the health of the automotive repair industry. We are committed to doing our part to invest in its continued success through participating in the WIN Scholarship fundraisers as well as providing foundational support for the Collision Engineering program, which aims to develop a new generation of highly skilled, motivated and passionate collision repair professionals.”

The record number of scholarships awarded this year also follows a record number of applications, thanks to WIN’s partnership with the Collision Repair Education Foundation (CREF). Each scholarship applicant received a complimentary WIN Student Membership, and award recipients are eligible to partake in WIN’s monthly mentoring program, which includes student engagement group calls and sharing best practices with industry professionals.

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Collision Shop Owners Create Work-Life Balance, Offer Superior Benefits To Attract, Retain Techs

By John Yoswick Autobody News

Aaron Flett, owner of Kent Collision in Washington state, said when he opened his shop 10 years ago and considered what he needed to do to attract and retain employees, he thought about the differences he’d seen and heard about Walmart’s Sam’s Club versus Costco, which is headquartered about an hour from his shop.

“Sam’s Club, at least up here, failed, and they’re all gone [from the Pacific Northwest],” Flett said, during a Talent Pool and Education

Another panelist, Kevin House of Center Collision in Tacoma, WA, said he’s placed an emphasis on employee retention by focusing on building camaraderie and culture within his 30-year-old business.

“We look for opportunities for our employees to interact not just at work, but outside of work,” House said, pointing to recent paintball contest his employees had against employees of a nearby tire shop.

“My employees just had a great time. That’s part of our culture, making it not just about work, but about a little bit of a life experience.

Committee panel discussion at the Collision Industry Conference (CIC) this spring. “Costco is thriving across the country.

“One of the big things that we learned about the difference is just a work-life balance [for employees],” Flett said. “We’ve all had techs who want to work 10- or 12-hour days. We don’t really allow that. We want to make sure they get their eight hours in and go home, to enjoy their family, be healthy, have longevity in life and longevity in the industry. We want fair compensation plans that make them want to not have to work 12-hour days.”

Another Washington state shop owner on the panel, Micah Strom of Modern Collision Rebuild and Service, said his company took a different approach to providing that work-life balance.

“We switched to four 10s, which is a little unusual in our industry, but has been very well accepted by our team,” Strom said. “It’s a great attraction for new talent coming in. We get three days a week to spend with our family at home. Some of them do have things going like daycare or getting kids off to school, so we have flexible hours. I think it’s important to accommodate because everybody has different things going on in life.”

“Does anybody know what national holiday was last Friday? You guys all missed the boat: It was National Grilled Cheese Day,” House continued. “There’s a holiday for every day of the year. You can Google it to create opportunities. We grilled cheese sandwiches for a whole staff. Everybody had a great time. We shut down for an hour and all have lunch together every Friday. We take the whole crew out boating every year. We just look for opportunities to build a team, to create that culture and make it more than just going to a job.”

an investment on our part, but it’s worked out pretty well for us.”

Strom agreed.

“We have the dental, vision and life insurance,” he said. “We’ve had a really good health care plan, and a 401(k). We also just started [giving

The panel agreed that improved benefits have become as important as wages in terms of attracting and retaining employees.

“One thing that I’ve found surprising, that’s changed since I was a tech in the industry, is that it seems like people coming in want a better benefits package,” Flett said. “When I was in my 20s as a prepper or a painter, I just wanted a paycheck. Give me more money, fewer benefits. But now they definitely know the importance of having good benefits. We’ve recently added a 401(k) package. We pay for everybody’s vision and dental 100%, and we’ve increased our contribution to the actual medical portion of the health insurance as well. That helps us compete with the MSOs that also have a pretty good benefit package based on their size. So it’s

stay the same, you’re going to end up being behind.”

Strom also said it’s important for the industry to be involved in their local schools, saying his shop tries at least once a year to bring an intern in for job shadowing.

new hires] one week’s vacation after six months. So they’re not working a whole year without having any paid time off. Times have changed. This younger generation needs something different. It’s about adapting and working with it, not against it. If you want to sit there and

“I’d have to say probably at least six of them we actually hired on afterwards,” he said. “If we aren’t involved with the schools, there’s so many other trades out there that are. In Kitsap County, they have a ‘Try-a-Trade’ event. This last year, they bused in 650 students from all around the Puget Sound. We had a booth there, to talk to them about the collision industry and the automotive industry, in general. Probably a lot of us growing up, your dad worked on cars, or your uncle or your grandpa. Nowadays, the kids don’t have that opportunity. The parents take their car to a shop. That’s all they know. So it’s our job to get out there, to talk to the kids, to get involved in the schools, and show them this a rewarding career and it’s a lot of fun.”

Shop owner Micah Strom said his shop tries at least once a year to bring in a local student to job shadow.

Fisker Becomes 2nd EV Maker To File For Bankruptcy in Past Year

Electric vehicle startup Fisker Group Inc. has filed for Chapter 11 bankruptcy protection — the second such filing by an electric vehicle company in the past year, after Lordstown Motors Corp. filed in June 2023, as the industry struggles to expand beyond early adopters.

The Manhattan Beach, CAbased company, founded by Henrik Fisker, disclosed in a filing with the U.S. Bankruptcy Court in Delaware that it has estimated assets between $500 million and $1 billion, with liabilities ranging from $100 million to $500 million. The filing indicates that Fisker has between 200 and 999 creditors.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently,” Fisker said in a prepared statement. “After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

Founded seven years ago by Fisker, who also serves as chairman and CEO, the company developed the 2022 Ocean allelectric SUV and the luxury plugin hybrid Karma, launched in 2011. Henrik Fisker is also known for his work on the BMW Z8 sports car. This marks his second failed automotive venture, following the bankruptcy of Fisker Automotive Inc. in 2013.

Fisker and other EV startups, like Lordstown, aimed to challenge industry giants such as Tesla and Detroit’s big automakers, who have aggressively entered the EV market. However, a slowdown in EV sales has hampered these efforts. J.D. Power reported EV sales grew only 3.3% to nearly 270,000 units in the first quarter of this year, a significant drop from the 47% growth seen last year. This slowdown has led to a reduced market share of 7.15% for EVs in the U.S. and forced major companies like Tesla to implement price cuts and job reductions.

Another EV startup, Rivian, paused construction of its $5

billion manufacturing plant in Georgia earlier this year to expedite production and save costs.

Henrik Fisker’s initial attempt to launch an electric car company ended in bankruptcy in 2013.

Fisker Automotive Inc. had received a $529 million loan commitment from the U.S. Department of Energy, but the company failed to meet production targets, leading to the suspension of the loan in 2011.

Earlier this year, Fisker Inc. received a warning from the New York Stock Exchange after its stock price fell below $1. Although the company’s shares were not immediately delisted, Fisker announced plans to comply with NYSE’s listing standards.

The current bankruptcy filing does not include Fisker Inc. or its U.S. subsidiaries, nor its subsidiaries outside the U.S. Fisker is reportedly in advanced talks with financial stakeholders regarding debtorin-possession financing and selling its assets.

AutoNation, Inc. announced a partnership with the U.S. Army through the Partnership for Your Success (PaYS) program, to provide soldiers with career pathways in the automotive industry following their military service.

The Army’s PaYS program guarantees soldiers five job interviews from a network of companies, including AutoNation, upon completing their service. This initiative allows soldiers to serve their country while preparing for their future careers.

AutoNation employs more than 1,000 veterans in various roles, from technicians to general managers. The company emphasizes diversity and inclusion, believing these principles drive innovation and success. Through the PaYS partnership, AutoNation is dedicated to offering veterans rewarding career opportunities and professional growth.

Since its inception in 2000, the PaYS Program has partnered with over 1,300 employers, spanning private industry, academia, and public institutes.

I-CAR Steps Up Efforts To Recruit, Educate New Collision Repair Techs

June was Automotive Service Professionals month, and to celebrate, I-CAR announced several new or increased efforts to attract and train new collision repair technicians.

CollisionCareers.com

In 2023, I-CAR launched Collision Careers, in collaboration with the Collision Repair Education Foundation (CREF), to provide resources for students and career changers interested in joining the industry.

The Collision Careers program was honored in 2023 with a SEMA Global Media Award, recognizing the program’s outstanding efforts in attracting new talent to the collision repair industry.

New Early Career Technician Program: I-CAR Academy

The new I-CAR Academy is an educational program that includes a revolutionary entry-level collision repair curriculum for both career and technical schools and collision repair centers.

I-CAR Academy is the first industry-neutral, comprehensive early career program designed specifically to attract, train and retain technicians, and recognize the schools and repair centers training new entrants.

research and development, industry participation and feedback, and is aligned with the I-CAR’s Automotive Collision Repair Industry Knowledge & Skills Protocol.

The curriculum provides collision repair fundamentals such as safety and tool skills, and foundational knowledge for entry level roles including estimator/repair planner, non-structural, structural, and re-finish technician. Five badged learning areas are available now: Collision Repair Fundamentals; Disassembly and Reassembly; Plastic Repair; Aluminum and Steel Small Dent Removal; and Preparation for Refinishing, with Spanish-language and extended courses available later this year.

Schools and shops interested in the I-CAR Academy program can learn more at www.i-car.com/academy.

SkillsUSA National Competition

Recently, I-CAR announced an enhanced version of the program’s website, CollisionCareers.com. The updated site now includes highly sought after career path details and downloadable resources for parents, educators and school advisors, as well as a new, engaging video to better serve the collision repair industry in attracting and retaining skilled collision repair technicians.

The evolved website and new video feature real, working technicians and students who demonstrate that today’s professionals work in a clean, safe, cutting-edge environment. The website also houses information outlining career paths, descriptions for different roles within the industry, a search for accredited shops and schools and career guidance tools to illustrate the importance of a career in this field. Additionally, the website connects technician candidates with schools, industry partners and potential employers.

“The response to the launch of our Collision Careers platform and website last year was so positive, we immediately began building new features and adding resources to the platform to support the industry, individuals, and influencers that all help bring new talent to collision repair,” said  John Van Alstyne, CEO and president of I-CAR. “We are dedicated to continuously enhancing and updating our talent attraction services for the industry, ensuring aspiring technicians can easily connect with top schools and shops to begin their careers.”

Available to schools now for the 2024-2025 academic year, I-CAR Academy will ultimately replace the existing education edition curriculum (PDP-EE). A similar curriculum will be available to shops in August with additional tools tailored to improve shop culture and enhance the leadership and mentorship experiences.

I-CAR Academy is designed to kickstart a technician’s education journey, providing an engaging, solid foundation to launch into I-CAR Professional level (ProLevel) curriculum and Platinum Technician certification, along with OEM and supplier certified programs.

For shops, additional training and best practices for effective mentoring, which is key to technician development and progression, and culture best practices for shop leaders, which aids in retention, will be available.

“For over 45 years, I-CAR has been collaborating with the automotive collision repair industry to set the training standard, provide education programming that meets modern accepted standards, and credential technicians and shops who commit to staying current as technology and repair methods evolve,” said Van Alstyne. “I-CAR Academy is the next evolution in our service to the industry — it is clear that we must adopt a cutting-edge standard curriculum that appeals to, and engages, new technicians because, whether they start in a school or a shop, we need them to be properly prepared to succeed on day one and stay in our industry for a career.”

I-CAR Academy curriculum’s was developed through extensive

I-CAR continued its participation in the SkillsUSA National Leadership & Skills Conference (NLSC), a premier event recognizing excellence in career and technical education, held this year June 24-28 in Atlanta, GA.

For several decades, I-CAR volunteers, instructors and employees have been volunteering with SkillsUSA on a local and national level, and

providing materials, such as personal protective equipment (PPE) and welding coupons, for competitors.

This is the second consecutive year I-CAR and its Collision Careers platform are exhibiting at the event to engage with educators, students and parents and highlight its resources.

Support at the 2024 event includes a booth adjacent to the Collision Repair Competition where attendees can learn more about I-CAR’s resources and watch the competition livestream, which I-CAR is also sponsoring; competitor PPE materials; swag gift bags; participation in SkillsUSA “missions,” a scavenger hunt style event designed to encourage and inspire students’ development.

“I-CAR’s long-time support of SkillsUSA is a testament to our enduring commitment to fostering the next generation of skilled collision repair professionals,” said Arianna Sherlock, senior marketing director for I-CAR. “Now, we’ve taken our participation to the next level to ensure that students interested in collision repair know they can count on I-CAR for the duration of their career to fuel their passion and support their growth in an industry that drives innovation, mobility and progress.”

I-CAR supported this year’s SkillsUSA National Leadership & Skills Conference, held June 24-28 in Atlanta, GA.

VW Invests Up To $5B in Rivian, Announces Joint Venture

Volkswagen Group will invest up to $5 billion in Rivian in a deal announced June 25, which also forms a joint venture to leverage Rivian’s advanced technology to create electrical architecture and software to be used in both companies’ future EVs.

The deal includes an initial $1 billion investment by German automaker VW in U.S. EV startup Rivian, and up to $4 billion in planned additional investments.

The partnership is anticipated to accelerate the development of software for Rivian and VW by combining their complementary strengths, while lowering cost per vehicle by increasing scale and speeding up innovation globally.

It is expected to bolster Rivian’s financial security as it deals with a general slowdown in EV demand, and benefit VW by giving it access to Rivian’s proven hardware design and integrated technology platform, which will serve as the foundation for the development of future software-defined vehicle (SDV) platforms that will be applied to both companies’ vehicles.

Rivian plans to contribute its electrical architecture expertise and is expected to license existing intellectual property rights to the joint venture.

Both companies aim to launch vehicles benefiting from the technology created within the joint venture in the second half of the decade.

In the short term, Volkswagen Group will use Rivian’s existing electrical architecture and software platform, after VW validated that Rivian’s technology are compatible with its vehicles. The parties currently expect the completion of the joint venture formation in the fourth quarter of 2024.

Each company will continue to separately operate their respective vehicle businesses.

“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture,” said Oliver Blume, CEO of Volkswagen Group. “Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our

strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”

“We’re very excited to be partnering with Volkswagen Group,” said RJ Scaringe, founder and CEO of Rivian.

“Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”

John Cappella has been appointed executive vice president and COO at Porsche Cars North America (PCNA), reporting to President and CEO Timo Resch

Joining from Porsche Cars Canada where he was president and CEO since September 2022, Cappella is no stranger to Porsche Cars North America having spent three years as vice president, Area East. He replaces Joe Lawrence, who left PCNA on his own accord, effective July 2. Lawrence, who has spent 15 years at Porsche — 11 of which were at PCNA — will be leaving to, among other things, pursue more fully his love of the outdoors and his classic 968.

Cappella joined Porsche Cars Canada in September 2022 following a period of three years as vice president, Area East, for PCNA. He joined the brand in 2011 as director of network development at Porsche Cars Canada, Ltd., and then became managing director of Porsche Centre North Toronto in 2016. Cappella assumed his new role as EVP and COO at PCNA on July 2. His successor as president and CEO of Porsche Cars Canada will be announced in due course.

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Mass Market Cars Outperform Premium, EVs Struggle in J.D. Power Quality Study

Mass market vehicles outshone premium brands in the latest J.D. Power 2024 U.S. Initial Quality Study, which incorporates franchise dealership repair visits for the first time. The study revealed mass market brands, with an average of 181 problems per 100 vehicles (PP100), outperform the industry average of 195 PP100, while premium brands lag behind with an average of 232 PP100.

“It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality,” said Frank Hanley, senior director of auto benchmarking at J.D. Power. “However, the industry can take solace in the fact that some problem areas such as voice recognition and parking cameras are seen as less problematic now than they were a year ago.”

The study also highlights the challenges faced by battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), which require more repairs than their gas-powered counterparts. BEVs

have an average of 266 PP100, significantly higher than the 180 PP100 for gas-powered vehicles.

“Owners of cutting edge, tech-filled BEVs and PHEVs are experiencing problems that are of a severity level high enough for them to take their new vehicle into the dealership at a rate three times higher than that of gas-powered vehicle owners,” Hanley added.

False Warnings, Unpleasant Interior Smells

Key findings from the study include rising frustration with false warnings from rear seat reminder technology and advanced driver assistance systems, persistent problems with Android Auto and Apple CarPlay connectivity, and an increase in unpleasant interior smells across nearly all brands.

The 2024 U.S. Initial Quality Study, now in its 38th year, surveyed 99,144 purchasers and lessees of new 2024 model-year vehicles. For the first time, the study incorporated repair visit data, allowing for a more comprehensive

analysis of vehicle quality.

Highest-Ranking Brands and Models

Ram emerged as the highestranking brand overall with a score of 149 PP100, followed by Chevrolet and Hyundai among mass market brands. Porsche topped the premium brand category with 172 PP100, with Lexus and Genesis following closely behind.

Toyota Motor Corporation’s Takaoka 2 plant in Japan received the Platinum Plant Quality Award, while Honda’s Alliston 2 plant in Canada and Toyota’s Cambridge South plant in Canada shared the Gold Plant Quality Award for North/South America. BMW’s plant in Born, Netherlands, received the Gold Plant Quality Award for Europe and Africa.

The enhanced methodology and expanded data sources of this year’s study provide automakers with valuable insights to identify and address potential issues more effectively.

CIECA announced its 15th annual conference, CONNEX 2024, will be held Sept. 24-25 at the MGM Grand Detroit hotel in Detroit, MI. This year’s theme is “The Intersection of Data & Mobility” and will be emceed by industry veteran Bill Garoutte

During the two-day event, thought leaders and industry experts will discuss where technology and businesses are headed and what the collision industry can do to prepare. A highlight will be an exclusive tour of the American Center for Mobility. The conference will also include networking opportunities, a vehicle gifting and a celebration of CIECA’s 30th anniversary of creating data integration standards.

The agenda will include OEM representatives, a panel discussion on 3D printing in the collision industry, and a digital claims panel. Information will also be shared about AI, cybersecurity, EV batteries and the electric grid, OEM repair procedures and telematics. For more information, visit cieca.zohobackstage.com/ CONNEX2024#/?lang=en.

Ex-Tesla Employee Pleads Guilty To Stealing Trade Secrets

A former Tesla employee admitted guilt in a case involving the theft and attempted sale of the EV manufacturer’s trade secrets.

Klaus Pflugbeil, arrested in March, conspired to sell proprietary information and manufacturing techniques gathered by Tesla.

The arrest occurred after Pflugbeil, alongside Yilong Shao, engaged with undercover federal agents posing as businessmen. Both men previously worked for Hibar Systems, a Canadian battery manufacturer acquired by Tesla in 2019. The duo then moved to China, attempting to establish a company to sell the stolen trade secrets.

Pflugbeil met undercover agents on Long Island, where he was apprehended. However, Shao remains at large, with his whereabouts still unknown.

Pflugbeil has since pleaded guilty to conspiring to send valuable trade secrets to what the U.S. Department of Justice refers to as a “leading U.S.-based electric vehicle company.”

“Today, the defendant is guilty of boldly sending valuable trade

secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of battery-powered electric vehicles to an undercover law

“Today, the defendant is guilty of boldly sending valuable trade secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of batterypowered electric vehicles to an undercover law

enforcement agent expertly posing as a businessman on Long Island,”

will swiftly bring to justice those who misappropriate intellectual property belonging to American companies, to safeguard our economy and national security.”

Although Tesla is not explicitly named in the announcement, the Department of Justice’s description of the victim company aligns with Tesla’s profile: “Victim Company-1 is a U.S.-based leading manufacturer of batterypowered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines.”

The Collision Industry Foundation (CIF) is delighted to announce Tasco Auto Color joined the CIF Annual Donor Program at the Immediate Care (2nd highest) tier.

Introduced in 2021, the Annual Donor Program was designed to bring needed recurring resources to the foundation, so it can deliver on its mission to “Answer the Call” when those in the industry have been impacted by catastrophic events such as wildfires, hurricanes or tornadoes.

enforcement agent expertly posing as a businessman on Long Island,” said Breon Peace, U.S. attorney for the Eastern District of New York. “Today’s guilty plea demonstrates how this office

Pflugbeil and Shao advertised the stolen intellectual property on platforms like Google, YouTube and LinkedIn. Internal messages between the two revealed their efforts to disguise the stolen information. In one message, Pflugbeil mentioned reformatting a document to make it appear original and not like a direct copy of Tesla’s work.

Pflugbeil faces up to 10 years in prison.

For more than two decades, through the generous support of corporations and individuals, CIF has been able to assist hundreds of collision repair professionals in need after a disaster. CIF is grateful for Tasco’s support of the Annual Donor Program, which will enable the CIF to continue its work for disaster relief assistance.

For more information, visit www. collisionindustryfoundation.org.

NHTSA Launches $9.5M Campaign To Combat Speeding

The National Highway Traffic Safety Administration (NHTSA) launched a $9.5 million campaign to combat speeding, a factor in nearly one-third of all traffic fatalities in 2022. The “Speeding Catches Up with You” campaign aims to remind drivers to reduce their speed and prioritize safety, especially during the busy summer travel season.

“Speeding accounts for nearly a third of all fatalities on our roads. While speeding may seem like the quick and easy option to make up

event at Chicago’s Navy Pier.

The event featured notable figures, including NASCAR Cup Series driver Ross Chastain, Pullman National Historical Park Superintendent Teri Gage, and speed-related crash survivor Matthew Hamon. NFL’s Kansas City Chiefs player Xavier Worthy also contributed taped remarks. The speakers emphasized the deadly consequences of speeding and urged drivers to enjoy their journeys by slowing down.

Despite a slight decrease in speed-related fatalities in 2022, speeding still contributed to 29% of all traffic deaths that year. NHTSA’s data revealed 12,151 people died and approximately 300,595 were injured in speed-related crashes, marking a 3% and 9% decrease from 2021, respectively.

National Roadway Safety Strategy, which focuses on safer speeds and reducing roadway fatalities.

NHTSA also highlighted that speeding is not just a highway issue; 87% of speeding-related fatalities in 2022 occurred on non-interstate roads. The comprehensive approach aims to tackle speeding on all types of roads to ensure the safety of all road users.

In 2023, significant actions were taken to address roadway safety, including awarding $1.7 billion in funding through the Safe Streets and Roads for All discretionary grant program and accelerating the deployment of new vehicle safety technologies. These efforts are part of the Department of Transportation’s ongoing commitment to reducing serious and fatal injuries on U.S. roadways.

As the summer travel season continues, NHTSA encourages drivers to slow down and prioritize safety to ensure everyone reaches their destinations safely.

Driven Brands and AutoBody Alliance (ABA) joined forces to expand the AutoBody Alliance’s extensive service network of auto body repair facilities throughout the U.S. Driven Brands is a leader in providing quality auto body care, aligning with the values of AutoBody Alliance as industry leaders. AutoBody Alliance certifies only the best in quality shops in the country and Driven Brands is now part of that valuable network.

“We are excited to work closely with the team at Driven Brands because of their influence in the marketplace the past 50 years, as well as their extensive experience in working with both Insurance Carriers and Fleet Companies,” said Steve Bruce, President, AutoBody Alliance.

AutoBody Alliance supports a managed, turn-key Direct Repair Network of automotive body repair facilities. The network connects insurance and fleet companies throughout the U.S. with premier auto body repair service providers.

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New-Vehicle Sales Show Mixed Results For First Half, Q2 2024

Automakers reported sales results for the first half and second quarter of 2024, as well as for the month of June.

As dealerships continue to feel the effects of the late-June cyberattack on software provider CDK Global, the impact on sales can not yet be quantified, according to GM spokesman David Caldwel l.

“Our dealers who use the CDK platform are working to meet strong customer demand under difficult circumstances,” Caldwell told the Detroit Free Press. “Some deliveries may be delayed until Q3.”

GM

In Q2, GM sold 696,086 vehicles, a 0.6% increase year-over-year. But the automaker reported a slight 0.4% decrease in the first half of 2024 compared to last year, selling 1,290,319 vehicles. The decrease was largely attributed to fewer fleet sales.

EV sales were up 40% in Q2, as GM sold 21,930. They also increased in the first half of the year compared to 2023 — GM sold 38,355 EVs.

Ford Ford reported a 61% increase in

Q2 sales and a 72% rise in sales for the year for its EV division, Model e. Ford also said 54% of Mustang Mach-E and 64% of F-150 Lightning sales were to customers new to the Ford brand.

The Mustang Mach-E, Ford’s crossover EV, experienced a 46% rise in sales over the past year and a 58% increase through the first half of 2024. The model is now

Ford’s F-150 Lightning also continues to dominate the electric truck market in the U.S., with sales of 15,645 units through June 2024, and 7,902 units sold in Q2 alone — a 77% increase compared to the same period last year.

Ford’s E-Transit electric van also continues to lead its segment, with sales of 6,301 units, a 96% increase. Notably, three out of

ranked as the fifth best-selling EV in the U.S. according to U.S. News.

every four E-Transit sales were to repeat customers, who cited lower

maintenance and fuel costs as primary reasons for their continued loyalty.

Toyota Toyota Motor North America (TMNA) said it sold 193,120 vehicles in the U.S. in June, a 1.2% decrease year-over-year. However, it sold 84,781 electrified vehicles in June – 43.9% of its total sales and a 64.5% increase compared to June 2023.

Looking at the second quarter, TMNA reported U.S. sales of 621,549 vehicles, up 9.2% compared to Q2 2023. Second quarter electrified vehicle sales totaled 247,347, up 63.1%, representing 39.8% of total sales for the period.

Finally, TMNA reported first half U.S. sales of 1,186,647 vehicles, up 14.3% on a volume basis. First half electrified vehicle sales totaled 454,197, up 67.9% on a volume basis, representing 38.3% of total sales for the period.

FCA

In Q2, FCA US LLC reported 344,993 vehicles sold in the U.S. — a 4% growth compared to Q1, but a 21% decrease year-over-year.

Matt Thompson, head of U.S. retail sales, attributed the sag in sales compared to Q2 2023 to moves FCA did in the first half of 2024, including working toward a “multi-energy strategy” consisting of battery electric, plug-in hybrid and ICE vehicles, and pricing adjustments across its U.S. brands.

Tesla

Tesla announced its Q2 2024 delivery and production figures, exceeding Wall Street expectations but showing a decline from the previous year.

The automaker delivered 443,956 vehicles in Q2, surpassing the anticipated 438,019. Despite this achievement, deliveries decreased from over 466,000 in the same quarter of 2023. Production for Q2 2024 stood at 410,831 vehicles.

Tesla’s bility to reach its ambitious target of 2 million vehicle deliveries for the year remains uncertain.

Kia

Kia America sold more than 5,000 all-electric vehicles for the third consecutive month and 29,392 total EVs through the first half of 2024 — its highest first-half EV sales ever — resulting in a

112% growth year-over-year and indicating strong EV sales growth momentum for the company.

Four Kia models – Carnival (+18%), Forte (+13%), Sportage (+11%) and Seltos (+1%) set new first-half sales records.

Hyundai

Hyundai Motor America reported total June sales of 67,631 units, a 2.5% decrease compared with June 2023.

Hyundai set total sales records in June for Elantra HEV (+1%), Elantra N (+19%), IONIQ 5 (+17%), Santa Fe HEV (+90%), Tucson HEV (+28%) and Palisade (+57%). Hyundai’s total hybrid sales were up 39% in June while Green sales represented 26% of retail.

In Q2, Hyundai sold 214,719 units, an increase of 2.2% compared with Q2 2023. Hyundai set total and retail sales marks in Q2 for IONIQ 5, IONIQ 6, Santa Fe HEV, Tucson HEV and Palisade. HEV sales for the quarter rose 42% compared to Q2 last year while pure EV total sales climbed 15%.

And in the first half of 2024, Hyundai sold 399,523 total units, a 1.2% increase compared to the first half of 2023. Hyundai Green sales saw an increase of 24% yearover-year. SUVs represented 75%

Mazda

Mazda North American Operations (MNAO) reported total June sales of 35,696 vehicles, an increase of 19.8% compared to June 2023. Year-to-date sales totaled 202,486 vehicles sold, an increase of 10.2% compared to the same time last year. With 26 selling days in June, compared to the same the year prior, the company posted an increase of 19.8% on a Daily Selling Rate (DSR) basis.

Certified pre-owned sales totaled 6,241 vehicles in June, an increase of 20% compared to June 2023.

Mitsubishi

Just six weeks after announcing its new North American business plan, Momentum 2030, Mitsubishi Motors North America, Inc. (MMNA) closed out the first half of 2024 with strong sales of 51,130, up 12.3% over the first half of 2023 and the strongest first-half sales result for MMNA since 2021.

First half sales of Outlander, Mirage/Mirage G4 and Eclipse Cross were up 1.3%, 85.5% and 38.2%, respectively.

In Q2, MMNA sales totaled 22,727 units, down 7.6% year-over-

year. However, Mirage hatchback sales more than tripled at an increase of 243.4%. Mirage G4 sales also increased 70.3% for the same period, notching a 146% increase for the Mirage lineup collectively.

Subaru

Subaru of America, Inc. (SOA) reported 55,228 vehicle sales for June 2024, a 0.1% increase compared with June 2023 (55,168). SOA also reported year-to-date sales of 322,443, a 6% increase compared with the same period in 2023.

For the second month in a row, Outback was the top seller with 16,853 vehicles sold, followed closely by Crosstrek, which had its best June ever with 15,132 vehicles sold, a 9.6% increase over the same month in 2023. Forester also had a strong showing with 11,108 vehicles sold, a 4.1% increase over June 2023. Solterra also achieved its best June ever, up 115% over the previous year.

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Honda Begins Production of First U.S.-Made Plug-In

Hydrogen EV

Honda announced the start of production for the 2025 Honda CR-V e:FCEV at its Performance Manufacturing Center (PMC) in Ohio, the first U.S.-made fuel cell electric vehicle (FCEV) that combines an advanced fuel cell system with plug-in EV charging capabilities.

“The Performance Manufacturing Center was conceived as a small volume manufacturing facility with a focus on craftsmanship, and I’m proud of how our production technicians leveraged their experience building the Acura NSX to take on the challenge of making this all-new Honda CR-V e:FCEV,” said Patrick McIntyre, lead of PMC. “Producing a zeroemission fuel cell electric vehicle is one more step toward Honda’s global goal of achieving carbon neutrality for our products and operations.”

The CR-V e:FCEV features a 270-mile EPA driving range, with the fuel cell system providing flexibility for longer trips through quick hydrogen refueling and

up to 29 miles of EV driving for short trips around town. This dual capability offers a unique blend of efficiency and convenience.

Production at the PMC involved significant adaptations, including the introduction of new assembly processes for the hydrogen tanks, fuel cell system and under-floor battery. Technicians also adapted a new weld system and modified the paint system to accommodate the larger, all-steel body of the CR-V e:FCEV.

The fuel cell system, developed in collaboration with General Motors, boasts higher efficiency and increased refinement, with

durability performance doubled and costs reduced by twothirds compared to the previous generation in the Honda Clarity Fuel Cell. The system is produced at Fuel Cell System Manufacturing LLC in Brownstown, MI. Honda’s CR-V e:FCEV also highlights advanced features such as customizable drive modes for efficiency and sportiness, rapid hydrogen refueling comparable to gasoline, and a quick 1.8hour recharge time using a level 2 charger. Additionally, the vehicle includes the Honda Power Supply Connector, allowing it to serve as a clean power source for small home appliances, power tools or camping equipment.

This production milestone aligns with Honda’s broader electrification strategy, which aims for battery-electric and fuel cell electric vehicles to represent 100% of its new vehicle sales by 2040.

General Motors announced Grant Dixton joined the company as executive vice president and chief legal and public policy officer, effective July 15. Dixton, who brings a wealth of experience from Activision Blizzard and Boeing, will oversee GM’s global legal, compliance, corporate governance, privacy and public policy functions, reporting directly to GM Chair and CEO Mary Barra

Before joining GM, Dixton served as the chief legal officer of Activision Blizzard, where he managed complex business transactions and regulatory issues. At Boeing, he held several executive-level positions, including general counsel and corporate secretary, providing strategic counsel on governance, litigation, intellectual property, and labor matters.

Dixton will replace Craig Glidden, who will now focus on Cruise, GM’s autonomous vehicle subsidiary. Glidden, who joined GM in 2015 as general counsel, will continue to serve as president and chief administrative officer of Cruise and as executive vice president and strategic advisor at GM.

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Severe Weather Driving Up Auto Repair Costs

The auto insurance and collision repair industries face escalating challenges due to severe weather, according to CCC Intelligent Solutions’ new Crash Course Q2 2024 Report.

This edition of the report, now released quarterly instead of annually, focuses on how severe weather events, particularly hurricanes and convective storms, are impacting the auto insurance and collision repair industries, and provides updates on data, insights, and trends impacting auto claims and repairs. The data was derived from an extensive analysis of 300 million claims-related transactions.

According to the report, severe weather has expanded its geographical impact, forcing the auto insurance and repair industries to adapt to new patterns and prepare for an unpredictable future. The report showed significant increases in repair times and costs due to storm-related damages.

Specifically, hail-related auto claims rose to 11.8% of all comprehensive claims in 2023, up from 9% in 2020, with average

repair costs for hail-damaged vehicles increasing by 15% over the past three years. In addition, hail claims are on average 21.7% more costly to repair than the average comprehensive claim and 25.6% costlier than the average repairable claim.

analytics at CCC and co-author of the report. Our Q2 report delivers critical insights, showing that the frequency and severity of storms are not just a seasonal issue but a persistent challenge that demands strategic planning and swift adaptation from industry players.

Extreme weather events are increasing in severity, becoming major disruptors in the auto claims and repair industry, said Kyle Krumlauf, director of industry

A case study within the report provides a detailed look at Hurricane Ian s impact in 2022, where comprehensive estimates in affected states, particularly Florida, saw nearly a sevenfold increase. This spike reflects a trend toward more severe and costly weather events.

The migration of populations

volumes of claims and increased stress on repair infrastructures.

The average total cost of repair (TCOR) increased 3.3% in Q1 2024 compared to Q1 2023, with labor rates and parts costs contributing to the rise. Q1 2024 saw significant improvements in repair cycle times, with vehicles entering repair shops six days sooner compared to Q4 2023.

Electric vehicles (EVs) accounted for 2.4% of all repairable claims in early 2024, up from 1.6% the previous year. Notably, EV repairs cost an average of 46.9% more than those for non-electric vehicles, primarily due to higher labor costs.

The medical aspect of auto claims is also seeing significant shifts, with treatment costs soaring and uninsured motorist injury claims increasing by 44% from early 2023. Additionally, high turnover among adjusters is impacting subrogation efforts,

The Auto Care Association announced the elected members of its board of directors for the 20242025 term, effective July 1. This year’s board welcomes Bill Hackney and Dwayne Myers, who bring extensive experience in the automotive industry.

Hackney, the new executive vice president of merchandising, marketing and supply chain for AutoZone, has been a pivotal figure in the company since 1983. Hackney has held various leadership roles, including senior vice president of merchandising and vice president of store operations support. He is an ASE-certified professional with a bachelor’s degree from the University of Memphis and an MBA from Duquesne University.

Myers is CEO and managing partner of Dynamic Automotive. Myers has been with Dynamic Automotive since 1997, where he has advanced from technician to CEO. His career also includes experience in the heavy-duty truck field and as a tank mechanic in the U.S. Army. Myers holds a bachelor’s degree from UMUC and is dedicated to the ongoing development of his team and company culture.

Survey: 46% of U.S. EV Owners ‘Likely’ To Switch Back To Fuel-Powered Vehicle

A survey by global management consulting firm McKinsey & Co. found 46% of responding U.S. EV drivers are likely to purchase an ICE vehicle next.

The findings from the 2024 McKinsey Mobility Consumer Pulse, which surveyed 30,000 people worldwide who regularly use transportation, showed 29% of all EV owners around the globe are considering switching back. Of the nine countries surveyed, only Great Britain’s EV drivers had a higher percentage — 49% — than the U.S. who said they were likely to return to an ICE powertrain.

The top reason for switching back was charging difficulties, cited by 35% of global respondents. Right behind it were high total cost of ownership (34%) and impact on driving pattern on long road trips (32%).

A bit further down the list were lack of ability to

charge at home (24%), stress from worrying about charging (21%), a change in the respondent’s mobility requirements (16%) and not enjoying the driving experience (13%.)

Despite that, the survey also found global purchase intent for EVs continues to rise, but more slowly than before. Of current non-EV owners in six countries, including the U.S., 18% said their next vehicle purchase would be a battery electric vehicle, compared to 16% in 2022 and 14% in 2021. Interest in plug-in hybrid EVs (PHEVs) was slightly higher; 20% said their next vehicle would be a PHEV.

The percentage of non-EV owners who said they do not want to switch to an EV — 21% — held steady between the most recent survey and the 2022 survey. In 2021, that number was 24%.

The top reasons given for not wanting to switch to an EV

were “too expensive” (45%), charging concerns (33%) and range concerns (29%.)

Researchers noted the interest in EVs for respondents who drive luxury vehicles is nearly double that of those who drive entry level cars. The survey also found consumers who are considering buying an EV tend to be younger and more tech-savvy, with more disposable income, and live in an urban area with the ability to charge vehicles at home.

The survey findings come at a time when several automakers are scaling back EV production in response to a slowing demand.

Legislation Delays Implementation of FTC’s Vehicle Shopping Rule

A U.S. House committee on June 13 passed a bill that includes a provision stopping the Federal Trade Commission from implementing its Combating Auto Retail Scams (CARS) Rule until next year.

The FTC announced the new rule in December 2023, aimed at reducing deceptive practices in the automotive industry, specifically bait-and-switch advertising and the imposition of hidden junk fees. Originally set to take effect July 30 of this year, it has been pushed back to Sept. 30, 2025.

In January, the National Automobile Dealers Association (NADA) and the Texas Automobile Dealers Association (TADA) filed a legal challenge to the rule in the U.S. Court of Appeals for the 5th Circuit, moving to stay the rule’s July 30 effective date. In response to the stay motion, the FTC issued an order delaying the effective date of the rule pending judicial review of the NADA/TADA petition.

However, despite the FTC’s

postponement, the rule remains the law, necessitating the advancement of the amendment in the Fiscal Year 2025 Financial Services and General Government (FSGG) appropriations bill passed by the U.S. House Appropriations Committee.

NADA welcomed the delay of what it called the FTC’s “onerous” vehicle shopping rule.

“America’s franchised new car dealerships strongly support the committee’s advancement of this legislation, which will stop the FTC’s disastrous vehicle shopping rule from taking effect,” said NADA President and CEO Mike Stanton. “This extremely flawed, unnecessary, and we believe illegal rule will greatly harm consumers by adding more cost, time, and paperwork to buying a car.”

NADA cited a study by the Center for Automotive Research (CAR) of the potential impact of the rule, which projected it would add 60 to 80 minutes to the car buying process, while increasing

Volkswagen Rolls Out ChatGPT Integration in Vehicles

Volkswagen Group has deployed Cerence Inc.’s Chat Pro, its automotive-grade ChatGPT integration, to models across Volkswagen’s European lineup via cloud update. Cerence and Volkswagen first announced their collaboration to launch the new enhancements to the IDA in-car assistant at CES 2024 earlier this year. Volkswagen’s roll-out of Cerence Chat Pro will continue globally, including in the U.S., later this year and through early 2025, and will include new features and improvements.

Volkswagen is leveraging Cerence Chat Pro to enable its customers to engage the in-car voice assistant in “fun and conversational chit-chat,” using several sources, including ChatGPT’s large language model, to provide relevant responses to nearly every query imaginable. Built specifically for the in-car experience, Cerence Chat Pro is integrated into Volkswagen’s IDA voice assistant, which uses Cerence’s hybrid approach to deliver seamless interaction across

expenses by $24.1 billion over 10 years for consumers and small business dealers.

The study said to comply with the rule, dealer costs would include updated and ongoing training, investments in IT systems, as well as planning, preparation and compliance reviews. Each dealership location would face median upfront compliance costs of $31,450 and average recurring annual costs of $39,862 per location — adding up to between $14.4 million and $17.2 million over a 10-year period for dealers nationally.

For consumers, the study estimated the new rule would cost them $1.3 billion annually in lost time.

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Smart Express Launches ADAS

Smart Express has unveiled the automotive industry’s first comprehensive Advanced DriverAssistance Systems (ADAS) OEM Shop Certification Program, to enhance driver and passenger safety by ensuring repair shops possess the necessary expertise and equipment.

The ADAS OEM Shop (AOS) Certification Program is a three-tiered initiative designed to standardize and certify ADAS repairs across the industry. The program includes job certification, technician and process certification, and shop Certification, each focusing on different aspects of the repair process.

The program is supported by a certification board chaired by Chris Hadfield, managing director of the Minnesota Transportation Center of Excellence.

Smart Express aims to continuously educate the market about the ADAS OEM Shop Certification Program, emphasizing the importance of using OEM software tools and adhering to required procedures. The goal is to elevate industry standards, inform consumers, and empower repair shops.

both vehicle command and control features embedded in the car’s head unit as well as access to cloud-based content and real-time, web-based information.

Cerence Chat Pro is now live in five languages — English (U.S), English (UK), German, Spanish and Czech -- across Volkswagen Group brands, including Volkswagen, Cupra, Seat and Skoda, that use the IDA voice assistant. This includes all new Volkswagen ID. models, the updated Golf, the new Tiguan and the new Passat, as well as legacy models.

“Volkswagen has a long tradition of democratizing technologies. As a volume manufacturer, we make these technologies accessible to large numbers of people. By seamlessly integrating ChatGPT into the backend of our voice assistant, we are now offering drivers the opportunity to use this artificial intelligence on a daily basis, thus underlining how innovative our products are,” said Kai Grünitz, member of the Volkswagen Brand Board of Management responsible for development.

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Partial Automation Systems Fail To Prevent Crashes

Crash records and insurance data offer little evidence that partial automation systems are preventing collisions, research from the Insurance Institute for Highway Safety and the Highway Loss Data Institute shows.

“Everything we’re seeing tells us that partial automation is a convenience feature like power windows or heated seats rather than a safety technology,” IIHS President David Harkey said.

The clearest evidence so far comes from studies of BMW and Nissan vehicles that have been on the road for a number of years. HLDI studied these vehicles in 2021. Now a new study of the same vehicles from IIHS confirms that partial automation in these vehicles doesn’t confer additional safety benefits beyond those of crash avoidance features like front automatic emergency braking (AEB).

More than half the new models for sale in 2023 were available with partial automation systems as an optional or standard feature, despite mounting concern over a series of high-profile crashes that occurred while drivers were using the technology. Using cameras and other sensors, these systems can keep your car moving down the road in the

center of the lane, navigating curves, slowing down to avoid other vehicles and then accelerating again when the way is clear.

But vehicles equipped with these systems are far from self-driving. They can’t manage many routine roadway features and traffic situations, so drivers have to pay close attention

usually included with them but also sold separately.

Crash avoidance features like AEB, blind spot warning and lane departure prevention only come into play when a potential danger arises — slamming on the brakes to avoid rearending another vehicle, for example. Because they’re unobtrusive under

to what’s happening on the road and be ready to take over at any time. That’s a big challenge because the technology can encourage a false sense of security and induce boredom, causing drivers to tune out.

There’s a key difference between partial automation systems and the crash avoidance features that are

normal circumstances, most drivers who use them leave these features switched on all the time.

In contrast, a partial automation system works constantly to keep the vehicle in the desired position on the road. Intended for use on highways

on whenever the driver wants to use them. Most drivers do so only occasionally.

Using insurance claims data, HLDI has conducted multiple investigations into the potential safety benefits of crash avoidance features. Broadly speaking, the studies have all shown that features that warn or intervene in an emergency reduce the frequency of insurance claims, and the reductions increase incrementally as one feature is stacked on another. Partial automation could also theoretically help prevent crashes. One of its component features, adaptive cruise control (ACC), keeps the vehicle traveling at a driverselected speed when the road is clear and slows and accelerates to maintain a set distance from vehicles ahead. It is associated with longer following distances, less tailgating and fewer lane changes — positive driving behaviors that could reduce risk. The other main component of partial automation, lane centering, could potentially do a better job in preventing side-swipe and run-off-road crashes than lane departure prevention, since lane centering theoretically would preempt such departures rather than

happening, the studies of BMW and Nissan vehicles show.

HLDI found that property damage liability claims — which are for damage to other vehicles hit by the insured driver — were 8% lower for 201719 Nissan Rogues equipped with forward collision warning and AEB. However, there was no additional benefit associated with ACC or Nissan’s ProPILOT Assist partial automation system, which adds lane centering on top of ACC. Changes in claim rates under collision coverage — which is for damage to the insured driver’s own vehicle — were small for all the technologies.

Similarly, forward collision warning and AEB were associated with a 7% reduction in collision claim rates and a 13% reduction in property damage liability claim rates for 201317 BMW and Mini vehicles. BMWs and Minis that were also equipped with ACC showed a larger, 25% reduction in property damage claims and no greater change in collision claims. As with the Nissan vehicles, there were no additional statistically significant reductions associated with BMW’s Driving Assistant Plus partial automation system.

HLDI’s claims data, collected from insurers representing 85% of the private passenger vehicles in the U.S., don’t show whether

the partial automation system was switched on during a crash, nor do they include the type of road where the insurance claims occurred. That means any potential benefits from partial automation, which is generally designed to be used on high-speed roads, would be diluted by the large volume of insurance claims for lowspeed fender benders.

Jessica Cicchino, senior vice president for research at IIHS, tried to determine if such safety benefits might be hiding in the HLDI data. She compared police-reported crash rates for the same BMW and Nissan vehicles that HLDI studied in 17 U.S. states during 2013-22. Although she also had no way of knowing whether the features were switched on at the time of the crash, she was able to restrict her study to the front-torear and lane departure crashes that partial automation could potentially prevent. She looked at crashes on limited-access interstates, freeways and expressways and then looked separately at crashes on other roads.

Like HLDI, she found substantial reductions in crash rates associated with crash avoidance features.

Front-to-rear crash rates were 49% lower for Rogues with forward collision warning and AEB and 54% lower for Rogues with forward collision warning, AEB and ACC than

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for vehicles with no crash avoidance features. There was no significant effect on lane departure crash rates from lane departure prevention.

Unlike HLDI, Cicchino found larger reductions associated with partial automation. Front-to-rear crash rates were 62% lower for Rogues with ProPILOT Assist than for vehicles without any crash avoidance systems. Lane departure crash rates were 44% lower for Rogues with ProPILOT Assist and lane departure prevention than for unequipped vehicles.

When she looked into those numbers more deeply, however, she found that the apparent benefits from ProPILOT Assist were the same on high-speed roads where IIHS research shows partial automation is most likely to be switched on and low-speed roads where the added convenience it provides is minimal at best. Below 37 mph, in fact, ProPILOT Assist’s lanecentering feature only works if you are following another vehicle. That suggests that other characteristics of the equipped vehicles or their drivers were responsible for the reduction.

One such characteristic may be the vehicles’ headlights. Noting that Rogues of that vintage were equipped with poor-rated headlights unless the buyer opted for a premium package, Cicchino turned to the crash records again and discovered that the rate

differences were greatest in the dark.

From Nissan marketing materials, she ascertained that the 2018 and 2019 Rogues with ProPILOT Assist were more likely than unequipped vehicles to have acceptablerated headlights. Acceptable-rated headlights themselves reduce singlevehicle nighttime crashes by about 15%, compared with poor-rated ones, other IIHS research has shown.

For the BMW vehicles, Cicchino examined only lane departure crashes, because the vehicles with partial automation came with a more advanced front crash prevention system than those without partial automation, making it impossible to isolate the effect of the partial automation system on front-to-rear crashes. She found that neither lane departure prevention alone nor the same feature combined with partial automation had a significant effect on crash rates, either on limited-access highways or on roads with lower speed limits.

The vehicles in these studies range from five to 11 years old, and it’s possible that newer partial automation systems are more effective from a safety perspective. On the other hand, the many years of data that have accumulated for these vehicles make the findings more compelling.

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New research from Recurrent Auto shows the U.S. is on course to see 50% of all new-car sales to be electric vehicles (EVs) by 2030, despite recent concerns about a slowdown in sales.

Recurrent Auto’s latest data suggests multiple revised EV sales projections still show a clear path to the 50% target, and the U.S. will enter the 15% “mass adoption” phase of EVs by the end of 2025.

Supporting this forecast, the International Energy Agency (IEA) also predicts a significant increase in global EV figures, expecting nearly a tenfold rise by 2030 under current policies.

A major factor contributing to the optimistic forecast is the sharp decline in battery costs, which have

reached new lows and are projected to drop an additional 40% between 2022 and 2025. This reduction in costs is expected to make EVs more accessible to a broader range of consumers.

The report also highlighted the impact of upcoming EV launches, including models from BMW, GMC, Hyundai, Nissan, Rivian and Volkswagen, anticipated to drive further adoption.

Government incentives are also playing a crucial role in boosting EV adoption. The report noted 17 states have implemented aggressive zeroemissions targets that surpass federal guidelines, further propelling the shift towards electric vehicles.

Expect More Plug-in Hybrids

One of the biggest transportation headlines this year was the updated EPA target, which adjusted the nation’s timeline for lower emission fleets. Rather than EVs making up 67% of the 2032 national fleet, the target now allows for EVs to make up 30% to 56% of light vehicle sales from 2030-2032 model years.

The EPA target is technology agnostic, and an OEM can use

other low emission technologies to hit it. Nonetheless, incorporating electrification into an OEM’s mix of vehicles is the easiest and most market-ready solution.

It is expected that plug-in hybrid electric vehicles (PHEVs), which are first powered by a smaller battery before switching to a traditional gas engine, will comprise an increasingly large share of OEM vehicles.

What are EV Doubters Saying?

EV doubters got plenty to bolster their arguments in the first quarter of 2024 when Tesla sales dropped 16% year-over-year. However, overall EV sales were up 2.7% year-over-year, with major sales increases for other brands: Ford’s Mach E increased 77%, BMW’s lineup increased 63% and Hyundai’s lineup increased 100%.

These strong numbers continued into Q2, with Hyundai’s all-electric sales jumping 42% in May, and the Ioniq 5 having its best sales month ever. Kia had the best month for EVs ever, with a 127% increase year-over-year, and Ford EV sales increased 64.7%. Tesla sales also bounced back in Q2.

Used EV Prices Stabilizing

Recurrent Auto also released its Q3 2024 Used EV Market Report, showing used EV prices in the U.S. are stabilizing and some prices, especially in the $20,000 to $25,000 range, are becoming more predictable, despite ongoing supply constraints expected to continue for the next few years.

The data suggests that while prices for older model-year, lowerrange EVs may continue to decline, the market for newer used EVs is reaching a stable point. Recurrent Auto’s pricing index includes models like the 2018 Chevrolet Volt, 2019 Tesla Model 3 and 2022 Mustang Mach-E.

Lease rates for battery-electric vehicles (BEVs) saw a significant increase in 2023. The report also points out that the overall used EV inventory has grown fourfold since 2021, with around 40,000 used EVs available at any given time.

In addition to the U.S. data, Tesla’s EVs were reported as some of the most in-demand used vehicles in Australia, though the Model S and Model X were recently listed as vehicles to avoid by Consumer Reports.

GM To Pay $145.8M Penalty For Excess Emissions from 5.9M Vehicles

General Motors (GM) has agreed to a $145.8 million penalty and to forfeit 50 million metric tons of carbon allowances following a U.S. government investigation into excess emissions from approximately 5.9 million of its vehicles, Reuters reported.

compliance documents. These discrepancies were identified through the EPA’s light-duty vehicle in-use testing program.

In addition to the monetary penalty, GM will cancel more than 30.6 million fuel economy credits for vehicles from the 2008-

The Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) announced July 3 that GM vehicles from the 2012-2018 model years were found to emit more than 10% more carbon dioxide on average than initially reported in GM’s

2010 model years to resolve the compliance issues.

This settlement does not involve any allegations of intentional misconduct, unlike the 2015 Volkswagen diesel emissions scandal. The EPA is not seeking a recall of the vehicles in question.

“EPA’s vehicle standards

depend on strong oversight in order to deliver public health benefits in the real world,” said EPA Administrator Michael Regan in a statement. “Our investigation has achieved accountability and upholds an important program that’s reducing air pollution and protecting communities across the country.”

The investigation revealed the affected vehicles include 4.6 million full-size pickups and SUVs, and 1.3 million midsize SUVs.

This is not the first time GM has faced penalties for fuel economy issues; in June 2023, NHTSA reported GM paid $128.2 million in penalties for not meeting fuel economy requirements for 2016 and 2017.

Despite the penalties, GM maintains it has complied with all applicable laws and regulations, saying in a statement it “has at all times complied with and adhered to all applicable laws and regulations in the certification and in-use testing of the vehicles inquestion,” but added “this is the best course of action to swiftly resolve outstanding issues with

the federal government regarding this matter.”

Before the first fine in 2023, GM had not paid a fine in the 40year history of the fuel economy program and had intended to use credits to cover its compliance shortfalls. However, faced with mounting penalties and compliance challenges, the company opted to pay the fines.

“Our investigation has achieved accountability and upholds an important program that’s reducing air pollution and protecting communities across the country.”

MICHAEL REGAN EPA ADMINISTRATOR

NHTSA had proposed increasing fuel economy standards from 2027 through 2032, a move estimated to cost GM $6.5 billion over the period. Under the final rule issued in June, GM could face up to $906 million in penalties through 2031.

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Traffic fatalities in the U.S. continue to trend downward, with an estimated 8,650 deaths in the first quarter of 2024, representing a 3.2% decrease compared to the same period in 2023, according to the National Highway Traffic Safety Administration (NHTSA). The preliminary data for the first quarter of 2024 continues a trend of declining traffic fatalities that began in the second quarter of 2022. This positive development comes despite a 0.6% increase in vehicle miles traveled from January through March. The fatality rate per 100 million vehicle miles traveled also saw a decline, dropping to 1.13 from 1.18 in the previous year.

“We’re encouraged to see traffic fatalities continue to decline, but more work must be done to reduce these preventable tragedies on our roads,” said NHTSA Deputy Administrator Sophie Shulman. “NHTSA is working diligently to save lives and ensure our roads are safe for everyone inside and outside of vehicles.”

The NHTSA report also indicated fatalities decreased in 30 states and Puerto Rico, while 19 states and Washington, D.C., saw an increase, and one state remained unchanged.

First Quarter of the Year

Earlier this year, the U.S. Department of Transportation (DOT) released its 2024 Progress Report, marking two years since the launch of the National Roadway Safety Strategy (NRSS). This strategy, which adopts a safe system approach, has been central to efforts to address the fatality crisis on U.S. roads. Key actions taken in 2023 as part of the NRSS include the awarding of $1.7 billion in funding through the Safe Streets and Roads for All discretionary grant program, benefiting more than 1,000 communities and approximately 70% of Americans. Additionally, the NHTSA has accelerated the deployment of new vehicle safety technologies, initiated rulemaking for impaired-driving prevention technology standards, and updated key road safety regulations.

DOT has also expanded the use and support of the National Emergency Medical Services Information System, now accepting data from all 50 states, two territories and Washington, D.C. Moreover, the NRSS has welcomed more than 123 organizations as Allies in Action, including 36 state transportation agencies and safety offices.

GM, Stellantis To Receive Over $1 Billion For EV Projects

General Motors (GM) and Stellantis are set to benefit from more than $1 billion in grants from the Biden administration, aimed at advancing their EV projects. The funding is part of a broader federal initiative to support EV manufacturing across the U.S.

The U.S. Department of Energy (DoE) announced GM will receive $500 million for its Lansing Grand River Assembly/Stamping plant in Michigan, while Stellantis will get $334.8 million for its Belvidere Assembly facility in Illinois and $250 million for its planned EV drive module plant in Indiana.

These grants are part of the Domestic Manufacturing Auto Conversion Grants, funded through the Inflation Reduction Act, and are designed to help automakers transition from producing combustion-powered vehicles to electric ones.

GM’s Grand River Assembly, which builds the Cadillac CT4 and CT5, will join several other GM facilities in producing EVs, including Factory ZERO Detroit-Hamtramck Assembly Center and Orion Assembly in Michigan, Spring Hill Manufacturing in Tennessee, Fairfax Assembly

in Kansas, and Toledo Propulsion Systems in Ohio.

Stellantis indefinitely idled Belvidere Assembly in February 2023. The plant last produced Jeep Cherokees. In October 2023, Stellantis said it would reopen the plant after reaching an agreement with the UAW on a new labor contract. It is expected to reopen sometime next year.

Energy Secretary Jennifer Granholm emphasized the competitive edge these grants provide to U.S. automakers.

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry. Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive — and does it in the communities and with the workforce that have supported the auto industry for generations,” Granholm said.

The grants are part of a $1.7 billion federal investment in EVrelated initiatives across eight states, expected to create more than 2,900 jobs and retain 15,000 highly skilled union workers. The funds will support the conversion of 11 shuttered or

at-risk auto manufacturing and assembly facilities, to enable them to manufacture EVs and their supply chain. The facilities are located in Michigan, Indiana, Illinois, Pennsylvania, Ohio, Virginia, Maryland and Georgia.

Also benefiting from the grants are Blue Bird Body Company, which will get $79 million to convert a Georgia plant to build electric buses; Harley-Davidson, which will get $89 million to prepare its York, PA, plant to build electric motorcycles; and Volvo, which will receive $208 million to convert plants in Pennsylvania, Virginia and Maryland to build electric commercial trucks.

The Domestic Auto Manufacturing Conversion Grants program invests in

the domestic production of efficient hybrid, plug-in electric hybrid, plugin electric drive, and hydrogen fuel cell electric vehicles. This program aims to expand manufacturing of light-, medium- and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.

“President Biden set out to build a clean energy economy that benefits everyone,” said John Podesta, senior advisor to the president for international climate policy. “Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.”

“Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis: with America’s workers leading the way,” said Assistant to the President and National Climate Advisor Ali Zaidi

GM’s Lansing Grand River Assembly/ Stamping in Michigan will get $500 million to prepare it to produce EVs.

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