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I-CAR Wants to Get OEM Info to Techs and to Educate Consumers about Tech Training

organization saved perhaps its most significant news for a presentation at A glimpse at future vehicle technol- NACE the following day. ogy and what it may mean for colliThere, Jason Bartanen unveiled the new “Repairability Technical Support Portal,” I-CAR’s effort to put repair procedures and vehicle information as close to technician’s as the nearest computer, tablet or smartphone screen. “We really want to put this information into technician’s hands,” said Bartanen, director of industry technical relations Jason Bartanen presents the Repairability Technical for I-CAR. “They may not Support Portal on the NACE Show Floor walk up to the front of the sion repairers and insurers filled much shop to ask a technical question. But if of the agenda at I-CAR’s annual con- they have the answer in their pocket, ference in Detroit in late July, but the See I-CAR Wants, Page 18 by John Yoswick

VOL. 32 ISSUE 9 SEPTEMBER 2014

Louisiana AG Buddy Caldwell Files Suit Against State Farm Alleging Unsafe Business Practices Louisiana Attorney General Buddy Caldwell has filed a lawsuit against State Farm Insurance alleging the na-

tionwide insurer has engaged in a pattern of unfair and fraudulent business practices aimed at controlling the auto repair industry and forcing unsafe repairs on vehicles without the knowledge or consent of Louisiana consumers. Attorney General Caldwell said, “State Farm has created a culture of See LA AG Files Suit, Page 21

Louisiana Attorney General Buddy Caldwell addresses media Tuesday, Aug. 19, 2014, about a lawsuit he filed on behalf of the state of Louisiana against State Farm Auto Insurance for what he calls deceptive and unsafe practices regarding vehicle repairs, which allegedly violate fair trade and monopoly laws

NACE Coverage Online at autobodynews.com

Technology & Telematics Expo Hole in One Winner at CREF Expo Overview and Sessions NABC and Recycled Rides Media Debriefing After Show Show Photos on our Facebook

Assured Performance Network Makes the Case and Details Growing OEM Insistence on Being Part of Repair and Certification in the Future, NACE Attendees Clearly Impressed

Ronald Doerr, new Senior V.P. of Strategic Initiatives (l) and Scott Biggs point out the features of the new Chrysler app.

P.O. BOX 1516, CARLSBAD, CA 92018

NACE is known for new product releases, fast breaking technology and fancy classic cars, but it’s also a place to get the latest news in the collision industry. Scott Biggs, the charismatic CEO, President and Founder of Assured Performance Network in Irvine, CA, delivered the goods when he spoke to a full room at this year’s NACE show. The message Biggs conveyed concerned the present and

growing importance of manufacturer certifications and the associated referral programs that will soon become prevalent in the collision industry. His speech was both timely and relevant to any body shop, whether it’s a small independent all the way to a large MSO. The times are a-changing and you don’t need to be Bob Dylan to see it, accord-

Change Service Requested

by Ed Attanasio

ing to Biggs. “You need to know that this isn’t your grandfather’s or even your father’s certification program. The biggest difference is that now the automakers are rewarding the shops that invest in compliance with customer referrals. OEM’s have already begun to refer their vehicle owners to these forward-thinking shops for their collision repair needs, and this will only increase over the coming months. The

playing field has changed and business as usual is over. The biggest automakers with mass-produced and mass-market brands are using a very aggressive referral approach and that will place the certified shops at a whole different level.” That Ford is leading the pack with this body shop certification program is a clear indication of where things are headed, Biggs explained. “Ford has made a new truck (the best selling vehicle in the country for 30 years) that cannot be fixed in the old-fashioned way—period. Following suit are other OEM’s. If you want to repair any of these vehicles, and there will be millions of them soon, you’re going to have to do it the right way—which requires new tools, equipment, training and facilities. Shops who do not embrace these changes put themselves and their customers in a very tenuous and unsafe position. So, certification really isn’t even elective in this See Assured Performance, Page 16

Presorted Standard US Postage PAID San Bernardino, CA Permit #2244

2 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Contents ASA-AZ Prescott Chapter Meeting Brings

Value to Attendees . . . . . . . . . . . . . . . . . . . 67

ASA-AZ Serves a Big Geographic Area

with Diverse Interests . . . . . . . . . . . . . . . . . 52

ASA-NW Members Enjoy Summer Retreat . . . 64 Bellevue, WA Names CEI for Government

Fleet Accident Management . . . . . . . . . . . . . 6

Body of Post Falls, ID, Shop Owner

Recovered from Lake . . . . . . . . . . . . . . . . . 21

CAA Glendale/Foothill & Valley/Ventura

July Chapters Meeting . . . . . . . . . . . . . . . . 24

CAA Inland Empire Chapter Meets on Toyota

OEM-Recommended Repair Procedures . . . . 9

To All Body Shops . . . . . . . . . . . . . . . . . . . 20

ABAT Holds Second Meeting . . . . . . . . . . . . . 30 ABRA Acquired by Hellman & Friedman

and Senior Management Team . . . . . . . . . . 66

ABRA Continues Nationwide Expansion . . . . . 32 Relationship at NACE . . . . . . . . . . . . . . . . . 61

As Vehicle Designs Evolve, Frame Racks and Measuring Systems Are More Important

than Ever Says Chief Automotive . . . . . . . . 60 Case and Details Growing OEM Insistence on Being Part of Repair and Certification in the Future, NACE Attendees Clearly

Impressed . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Auto Parts Executive Pleads Guilty to

CAWA Leadership Meetings to be Held

AutoZone Offers Double Rebates for

East Bay CAA Chapter Plays 18 Holes

CIC Selects Randy Stabler as New Chairman

Event to Benefit CA Shop Owner Raises $125K

Collision King Honored By Farmers Insurance

September 25–26 . . . . . . . . . . . . . . . . . . . 29 for Charity . . . . . . . . . . . . . . . . . . . . . . . . . 45 for ALS Research at his Treatment Center

at U. Michigan . . . . . . . . . . . . . . . . . . . . . . 10

Former Vallejo Shop Owner Sentenced

for Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Parts Director at Del Grande Dealer Group

Bid Rigging and Price Fixing . . . . . . . . . . . . 61

as of January . . . . . . . . . . . . . . . . . . . . . . . . 4 As Body Shop of the Year in Texas,

Sherwin-Williams Congratulates . . . . . . . . . . 6

Education Foundation’s Record Fundraiser . . . 63 HABA Holds Meeting, Co-Hosts

Business-Building Events . . . . . . . . . . . . . . 28

IADA Holds 46th Annual Conference, Hopes

Glass Repair Fraud . . . . . . . . . . . . . . . . . . . . 4

I-CAR® Wants to Get OEM Info to Techs and to

Ordered To Pay $1.4 Million In Fraud Case . 70

I-CAR® Announces Launch of New Website . . 32

Living Room, No One Injured . . . . . . . . . . . . 4

Body Shop Owners. . . . . . . . . . . . . . . . . . . 62

Sonoma County Windshield Repair Business SUV Goes Airborne into Kearns, UT,

to Attract New Members. . . . . . . . . . . . . . . 42

Educate Consumers about Tech Training. . . . 1

ICRA Lobbyist Defends Rights of Iowa

Temecula-area Body Shop Lake Auto Body

IN Shop Owner Charged in Child

Two Regional Insurers and USAA get Top Grades

Judge Denies Ford’s Motion to Dismiss

Washington-Based Andrews Auto Glass

Louisiana AG Buddy Caldwell Files Suit

Collision Open . . . . . . . . . . . . . . . . . . . . . . 20 from Oregon Collision Repair Shops . . . . . . . 8

Owners Charged with Tax Fraud . . . . . . . . . 30

Wheels to Prosper’s Annual Giveaway . . . . . . 38 COLUMNS

Exploitation/Porn . . . . . . . . . . . . . . . . . . . . 66

ABPA Lawsuit. . . . . . . . . . . . . . . . . . . . . . . 26

Against State Farm Alleging Unsafe

Business Practices . . . . . . . . . . . . . . . . . . . . 1

Master Painter JoAnn Bortles Gets Dose

of Reality on Motor City Masters. . . . . . . . . 48

Attanasio - How Can I Squeeze More Out

MCRS Lobbyist Represents Collision

Attanasio - Is Your Reception Area Making

Next Sherwin-Williams ECOLEAN

Luehr - Better Blueprinting, Part 1:

NICB Says Honda Accord Still Most

Luehr - The Process of Winning . . . . . . . . . . . 50

NICB Warns Consumers That Thieves

of My SEMA Experience? . . . . . . . . . . . . . . 40

a Good First Impression? . . . . . . . . . . . . . . 68

Why is Blueprinting Important?. . . . . . . . . . 34

Sisk - Repair Documentation Series, Part 2: Assignment of Proceeds and Writ of

Replevin . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 NATIONAL

2015 F-150 Repair Parts Will Be Sold

Wexford, PA

ASA Members in August. . . . . . . . . . . . . . . 67

Thinks Outside of the Box . . . . . . . . . . . . . . 14

Seven Charged with Utah Automotive

Roslindale, MA

Assured Performance Network Makes the

California Insurance Firm Pays Settlement

With Buckets of Coins . . . . . . . . . . . . . . . . 69

Lexington, KY

ACD and ARA Finalize Associate Membership

Repairers in Big Sky Country . . . . . . . . . . . 56

Workshop is Sept. 16-17 . . . . . . . . . . . . . . 20

Stolen Vehicle. . . . . . . . . . . . . . . . . . . . . . . 16

Use Scanner Boxes . . . . . . . . . . . . . . . . . . 58

SCRS Announces Repairer-Driven

Education at SEMA. . . . . . . . . . . . . . . . . . . 58

Tampa Television Station Highlights Poor Quality Repairs, Body Shop Lawsuits

Against Insurers . . . . . . . . . . . . . . . . . . . . . 10

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia Serving California, Nevada, Arizona and Utah. Autobody

AAPEX Trade Show . . . . . . . . . . . . . . . .15 Audi Wholesale Parts Dealers . . . . . . . .66 Automotive ID . . . . . . . . . . . . . . . . . . . .40 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . . .8 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Dealerships . . . . . . . . . . . . . . .35 BlackWow . . . . . . . . . . . . . . . . . . . . . . .22 BMW MINI of Escondido . . . . . . . . . . . .57 BMW Wholesale Parts Dealers . . . . . . .59 Bob Smith BMW . . . . . . . . . . . . . . . . . .32 Bob Smith MINI . . . . . . . . . . . . . . . . . . .32 Capitol Subaru . . . . . . . . . . . . . . . . . . . .72 CCC Information Services . . . . . . . . . . .31 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .43 Chief Automotive . . . . . . . . . . . . . . .44, 45 Classifieds . . . . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . . . . .16 Completes Plus . . . . . . . . . . . . . . . . . . .18 DCH Chrysler-Jeep-Dodge-Ram . . . . . .28 DCH Kia of Temecula . . . . . . . . . . . . . . .28 Del Grande Dealer Group . . . . . . . . .12-13 Dominion Sure Seal, Ltd. . . . . . . . . . . . . .6 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .47 Drew Hyundai . . . . . . . . . . . . . . . . . . . .60 East Bay BMW-MINI . . . . . . . . . . . . . . . .53 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .14 Elk Grove Toyota . . . . . . . . . . . . . . . . . .44 Enterprise Rent-A-Car . . . . . . . . . . . . . .50 Equalizer Industries, Inc. . . . . . . . . . . . .26 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .51 Galpin Motors . . . . . . . . . . . . . . . . . . . .23 GlasWeld Systems, Inc. . . . . . . . . . . . . . .9 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . . . . .17 Glenn E. Thomas FIAT . . . . . . . . . . . . . .17 GM Wholesale Parts Dealers . . . . . . . . .69 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .36-37

News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com

Western

Arizona MVD Issues Cards With Wrong Pictures . 6

Boulder, CO

Indexof Advertisers

REGIONAL

How Does Industry Pay Compare?

Hyundai Wholesale Parts Dealers . . . . .62 Innovative Tools & Technology, Inc. . . .29 Kearny Mesa Subaru-Hyundai . . . . . . .56 Kia Motors Wholesale Parts Dealers . . .55 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Los Gatos Luxury Cars . . . . . . . . . . . . .24 Maita Subaru . . . . . . . . . . . . . . . . . . . . .30 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .42 Matrix System Automotive Finishes . . .27 Mazda Wholesale Parts Dealers . . . . . .66 Mercedes-Benz . . . . . . . . . . . . . . . . . . .33 MINI Wholesale Parts Dealers . . . . . . . .58 Mitsubishi Wholesale Parts Dealers . . .64 MOPAR Wholesale Parts Dealers . . . . .39 Moss Bros. Chrysler-Jeep-Dodge . . . . . .7 Mossy BMW of Vista . . . . . . . . . . . . . . .49 Nicolosi Imports . . . . . . . . . . . . . . . . . . . .4 Nissan/Infiniti Wholesale Parts Dealers . .65 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 PreFab Ads . . . . . . . . . . . . . . . . . . . . . .10 Pro-Spray . . . . . . . . . . . . . . . . . . . . . . . .11 Puente Hills Subaru . . . . . . . . . . . . . . . .46 Replica Plastics . . . . . . . . . . . . . . . . . . .54 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .52 SATA Spray Equipment . . . . . . . . . . . . .41 SEMA Trade Show . . . . . . . . . . . . . . . . .25 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . .20, 21 Shingle Springs Nissan-Subaru . . . . . .48 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .61 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .20 South Bay Volkswagen . . . . . . . . . . . . .34 Subaru Wholesale Parts Dealers . . . . . .63 TG Products, Inc. - The Rail Saver . . . .16 Toyota Wholesale Parts Dealers . . . . . .64 Valspar Automotive . . . . . . . . . . . . . . . .19 Volkswagen Wholesale Parts Dealers . .67 Volvo Wholesale Parts Dealers . . . . . . .68 Weatherford BMW . . . . . . . . . . . . . . . . .38

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 3

SUV Goes Airborne into Kearns, UT, Living Room, No One Injured Richard Jensen was already in bed for the evening Monday when he was awakened by a series of odd noises. “First thing I heard, or I think I heard because I was asleep, was a racing engine. And then I heard a thud. And then I heard an explosion,” he said. And then Jensen, 66, discovered that a sport utility vehicle had crashed through the wall and was sitting in his living room — with the driver still inside. “She was screaming and worried she hurt somebody. And I’m like, ‘Little late for that.’ And I was concerned she was hurt so I called 911,” Jensen said. “And then she said, ‘Well, I lost control.’ Well, obvious, right?” Jensen’s home suffered heavy damage after the allegedly drunken woman went airborne and ended up inside the house in a spectacular crash. “The vehicle was completely inside the house when it came to rest,” said Unified Police Lt. Justin Hoyal. “This vehicle ended up not only in the living room but the kitchen area as well.” Neither the Herriman woman who was driving nor Jensen were injured. The crash was reported at 11:17 p.m. at Jensen’s house, 4178 W. 5820

South. Hoyal said a woman driving a Ford Explorer missed a turn, hit the homeowner’s yard which was on an incline, and went airborne through the front of the house, clearing the foundation. “So she went flying,” Jensen said. “She didn’t hit my foundation, which is approximately 3 feet high. It actually landed on the floor in my house. And the whole truck was in my house as if she parked it.” Alcohol and speed were believed to be factors in the crash, Hoyal said. Brittany Carpenter, 28, told investigators “she should not have been drinking and driving,” according to a Salt Lake County Jail report. She was given a Breathalyzer test and police said her blood-alcohol level registered at 0.22, or nearly three times the legal limit. Carpenter, who has no prior criminal history in Utah according to state court records, was booked into jail for investigation of DUI and negligent collision. She was released a short time later and took a cab to her grandmother’s house to sleep, her mother said. When Leslie Carpenter talked to her daughter after she was arrested and before her daughter had seen any news

Seven Charged with Utah Automotive Glass Repair Fraud

The Utah Insurance Department’s Fraud Division has charged the owners of Pleasant Grove-based Quick Fix Auto Glass and T&R Auto Services, as well as several employees, with various forms of fraud. Tyson Brown, owner of Quick Fix Auto Glass LLC, was charged with racketeering and insurance fraud. He was also charged with eight counts of identity fraud. Four of Brown’s sales employees were also charged with identity fraud and falsification of insurance claims. The case is pending. Tyson Weber, owner of T&R Auto Services, has pled guilty to third-degree felony insurance fraud and three counts of thirddegree felony identity fraud. “Brown and Weber, along with their sales employees solicited rock chip repairs by going door-to-door and using other means of contacting owners of vehicles in need of rock chip windshield repairs,” according a statement by the Utah Insurance Department. “They advised vehicle owners that they would take care of the claim with their auto insurance company without cost to the vehicle owner. “After obtaining the auto owners’ insurance information and other personal information, Brown, Weber

and their employees contacted the insurance companies by impersonating the policyholders in order to obtain payment for the windshield repairs,” the statement continued. “In cases where multiple rock chips were repaired, the agents kept the insured’s information and filed follow up claims without the insureds knowledge, days, weeks or months later.” The defendants allegedly filed more than 1,600 glass repair claims with Farmers, Allstate and Progressive. The insurance companies paid Quick Fix Auto Glass and T&R Auto Services $102,000.

CIC Selects Randy Stabler as New Chairman as of Jan.

Collision Industry Conference (CIC) Administrator Jeff Hendler announced on Tuesday, July 29, that Randy Stabler, owner of Pride Auto Body in Van Nuys, CA, will succeed State Farm Claims Consultant George Avery as CIC chairman. Avery will officially pass the gavel to Stabler at the CIC scheduled at the SEMA Show in November, as that will be Avery’s last official CIC as chairman. Stabler will then handle CIC chair duties for 2015, starting in Palm Springs, CA, in January.

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coverage, she said she didn’t think her daughter fully understood yet what had happened. “She thought she just hit a garage. I don’t even think she knows the severity of it all,” Leslie Carpenter said. “When she first talked to me she said, ‘I hit a garage.’ Garage? You went into a home dear.” Carpenter said the behavior her daughter allegedly exhibited Monday night “is not her at all.” “For her to get behind the wheel after any kind of alcohol beverage is beyond her,” she said. “I was just a little shocked because my daughter is very responsible normally. So it was pretty scary. I’m just glad no one was hurt.” Carpenter said her daughter got into an argument with someone earlier in the evening and then went to her sister’s house. She also said her daughter has “had a lot on her mind” lately, and the argument that night likely added to it. Carpenter said her daughter was likely trying to drive to her home after, but was “more intoxicated than she thought.” Jensen, who has lived in the same house for 40 years and has survived two major health scares of his own, said he actually felt bad for the woman.

“These things just don’t bother me like they used to. I look at the bigger picture. I’m alive. And it doesn’t do me any good for me to be mad at her. She’s going to have to live with what she did, and fortunately she didn’t kill anybody,” he said. But Jensen said he hopes her story will serve as an example to others of why not to drink and drive. “When you overdrink, this is what happens. She could have been killed herself, or I could have been killed. (The) structure will be repaired, and I’ll get over the stress of remembering it. But she has to live with it the rest of her life,” he said. “I actually feel bad for her because she didn’t have to be there.” In addition to the damage caused to his house, Jensen said the crash also damaged an antique chair built in the late 1800s that his grandfather used.

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www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 5

Arizona MVD Issues Cards With Wrong Pictures Jennifer Lohss renewed her identification card and driver’s permit at the Arizona Motor Vehicles Division office near 51st Avenue and Indian School Road. On the temporary copy, everything was correct. But when the permanent cards arrived in the mail, there was an obvious error. “All of my information was correct. There was just somebody else’s picture and somebody else’s signature,” said Lohss. Lohss’ number one concern: her personal information getting into the wrong hands. CBS 5 News took the issue to the top of MVD. Director Stacey Stanton said that the issue first came to her atten-

tion Tuesday morning and the IT team began investigating right away. So far, she said eight cases have been reported. Stanton added the MVD just transitioned to a new centralized system last week. The agency is now issuing new, enhanced-security ID cards, drivers licenses and permits. Customers receive a temporary form in person and the permanent card is mailed to them directly. “I think it’s both learning curve and perhaps some programming,” Stanton said of the card errors. “So, we’re looking at both of those.” Stanton said the affected credentials were processed at several MVD

locations and produced by its vendor MorphoTrust in California. But, she said it was a glitch in the new MVD system that allowed the wrong pictures and signatures to be attached to bar codes on applications. “We’re confident that we are making the correct changes and we’re going to be issuing the proper credentials,” said Stanton. But some customers worry the new process of receiving their credentials by mail, instead of at the MVD, puts them at risk. “It’s scary because somebody else could use your identity,” said David Portao. Others questioned the need for a new system.

“I don’t understand, what was wrong with us getting the permanent one from the get go?” asked Priscilla Rodriquez. Stanton said the MVD doesn’t have the capability to produce the high-tech cards in-house and she doesn’t believe anyone’s security has been breached. “The individuals who received the wrong photo and the wrong signature - the information they received was still theirs,” she explained. “It was mailed to their address. So, none of their personally identifying information has been compromised.” If you have an error on your driver’s license or identification card, contact the MVD immediately so that the problem can be fixed.

Bellevue, WA Names CEI for Government Fleet Accident Management

The City of Bellevue, WA, has partnered with the CEI Group, Inc. (CEI) to provide accident management services for its municipal fleet of 700 vehicles, CEI announced today. The agreement calls for CEI to provide auto body repairs for all of the city’s departments, including its police, fire, utilities, and parks and community services departments.

In naming CEI, Tom Wall of the city’s fleet management team, cited the company’s ability to streamline the fleet’s administrative processes by reviewing body repair estimates, tracking repair costs, and providing detailed invoices directly to the city’s risk management staff. He also noted that “all the body shops in the CEI network have gone through a strin-

Collision King Honored By Farmers Insurance As Body Shop of the Year in Texas, Sherwin-Williams Congratulates

In the collision repair industry, quality work and dedicated service are the keys to a satisfied customer. Farmers Insurance annually recognizes top shops for service excellence with the Body Shop of the Year award. Sherwin-Williams would like to congratulate Collision King Auto Body Repair Center in Lubbock, Texas for being the state recipient of this award for the year 2013. This latest award will be one among numerous other accolades for Collision King including being named “Best Auto Body Repair Center in Lubbock” for nine straight years and “Best Body Repair Center” in KCBD Channel 11’s “Best of the West” campaign since 2010. “We feel a great sense of pride,” said owner Steven Tisdale, “and its humbling to be recognized this way. We are in a smaller market compared to areas like Dallas, Houston and Austin. We often fly under the radar getting overlooked by the larger markets in Texas. But we have a great team, we utilize team work and empower our people to make good decisions and think on their feet.” Established in 1998 by Tisdale, Collision King’s management staff

brings more than 100 years of combined experience to their work, utilizing the latest technology, including Sherwin-Williams Automotive Finishes’ primer and topcoat systems to ensure precision work. “Sherwin-Williams products have been great for our shop,” said Tisdale. “But more important than the products is the ongoing support we get from them. In addition, our local jobber, West Texas Auto Colors, is top notch and the manager, Anthony Palomo, has helped us implement lean process and goes the extra mile any time we need him.” “At Sherwin-Williams, we truly value our long term relationship with Collision King and are committed to continue to support them in their pursuit of excellence,” adds Glenn Lane, Director of Sales-Southwest, for Sherwin-Williams Automotive Finishes. For more information on Collision King visit the company website www.collisionking.com or call 806794-5990. For more information on Sherwin-Williams Automotive Finishes visit www.sherwin-automotive.com or call 1-800-798-5872.

6 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

gent screening process that guarantees quality providers.” The city’s agreement with CEI was facilitated by the contract the State of Washington awarded CEI after a competitive bidding process. The state’s contract enables governments and government agencies within the state to work with CEI without issuing their own request for proposals.

For the last four years, Bellevue’s fleet has been named one of the “100 Best Fleets in America,” sponsored by 100 Best Fleets and Governing magazine. Bellevue, a suburb of Seattle, is the state’s fifth largest city, with a population of 122,000.

www.autobodynews.com

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 7

Two Regional Insurers and USAA get Top Grades from Oregon Collision Repair Shops State Farm may still be the largest auto insurer in Oregon, but it’s no longer the best liked by repairers, according to the latest survey of Oregon collision repair shops. The survey by the Northwest Automotive Trades Association (NATA) asked shops to grade the Top 20 auto insurers in the state in terms of how well each company’s “policies, attitude and payment practices ensure quality repairs and customer service for Oregon motorists.” This was the eighth time the association has conducted such a survey since 2004, and State Farm had topped the list each time, finishing last year with a solid B+ grade. But in a year in which State Farm required its “Select Service” shops in Oregon to use PartsTrader, shops dropped the insurer’s mark by a full grade to C+, putting it in fourth place in the survey, virtually tied with Progressive, California Casualty and other insurers. Multiple shops commented on PartsTrader as the reason for giving the insurer a low (or lower than in past years) grade. Two smaller Northwest-based auto insurers continue to be among the best at taking care of their customers after an accident, according to shops.

Oregon Mutual’s grade slipped a bit from a B+ last year to a B this year, but that was still good enough to share the top spot with Mutual of Enumclaw. Both companies have consistently been among the top four insurers in the survey every year. Shops in this year’s survey commented that the two are “excellent to work with” and “take care of their customers.” In terms of market share in Oregon, Mutual of Enumclaw and Oregon Mutual are ranked 12th and 13th, respectively. USAA nudged up from a C+ to a B- this year, jumping from sixth place to third, its best showing ever in the survey. “They really care about their customers,” one shop noted. Farmers Insurance was the only insurer to receive a D+ this year, keeping it at the bottom of the rankings for the third year in a row. “Just as medical providers see how health insurers take care of patients, collision repair shops interact with auto insurers on a daily basis, so we feel it’s worthwhile to ask how those insurers treat Oregon drivers after an accident,” said Barbara Crest, NATA executive director. “We believe their views will be helpful to insurance companies and consumers.”

8 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

About 500 collision repair shops throughout the state received the survey and more than 50 shops responded to the survey. Crest pointed to a number of items of interest in the findings of the latest survey: In addition to USAA, two other insurers saw their grades improve from the 2013 survey. Geico (which had a D+ in 2012) and Safeco each nudged up to a C this year, up from a C- last year. Though State Farm’s drop was the most severe, seven other insurers saw their grades decline this year. Travelers was ranked 4th last year with a B-, but fell to a C this year. American Family, Allstate and Esurance (which is owned by Allstate) each dropped from a C to a C-. Shops cited inconsistency in the claims staff and policies at these companies. Progressive has continued to work its way up the list, having had a D+ or worse (and the lowest or second-lowest ranking) in every survey between 2004 and 2009. It was 16th on the list in 2012, 8th last year and 5th this year. Farmers received a “F” from about one-in-four shops, the most failing grades received by any insurer. (By comparison, Allstate and Esurance, the

other lowest-graded insurers, each received about half as many Fs as Farmers.) About one-in-three shops gave Oregon Mutual and Mutual of Enumclaw a grade of “A.” Last year, State Farm received an “A” from well over half of shops, but this year less than one-in-four shops gave it an “A” grade. In most cases, the grades given a particular insurer from shops involved in that insurer’s direct repair program (DRP) were higher than those given by shops that are not part of that insurer’s program. This was particularly true with California Casualty and USAA; their DRP shops gave them grades of A- or better while non-DRP shops gave each of these insurers a C and C+, respectively. But even Farmers Insurance direct repair shops gave that insurer only a C. “Collision repairers say the insurers receiving the highest grades – which includes both larger and smaller insurance companies – do the best job of taking care of Oregon drivers after an accident,” Crest said. “We hope consumers will take these ratings into account when choosing an auto insurer, and that insurers that received lower grades will work to improve their performance.”

Western Associations

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

CAA Inland Empire Chapter Meets on Toyota OEM-Recommended Repair Procedures with Ed Attanasio

As reported by Tim Brown, CAA Chapter President:

The Inland Empire Chapter of the California Auto Body Association’s July meeting, sponsored by EnterpriseRent-A-Car, brought the operating product that Rick Leos, Toyota Motor Sales Marketing Division/Collision Program Developer and Mitchell International have partnered to bring to the market. OEM-Recommended Repair Procedures is the next generation estimating system that will help shops improve accuracy, lower cycle time, generate fewer supplements and, most importantly, repair vehicles correctly to enhance customer satisfaction and safety. Rick Leos opened his presentation with brief history of how Toyota vehicle construction has evolved from something slightly more advanced than the horse and buggy to today’s

vehicles where even some of the simplest have a dozen airbags and a few dozen computers. Add to that the complex construction materials and build assembly methods and it is not hard to realize how quickly vehicle construction has evolved. Driving home the safety component, Leos shared information about crash test differences between an undamaged vehicle and ones that have been repaired with a variety of methods: Aftermarket parts, Used Parts, structural repairs in general and structural repair that have been performed using a manufacturers guidelines. Although some have painted this product as a way to simply escalate the cost of an estimate or sell more parts, that is far from the truth. The reason Toyota has out their resources behind OEM-Recommended Repair Procedures is twofold. First and foremost, it is about occupant safety. It can be better de-

scribed as Toyota wanting all of the safety features that they test and build into the vehicle to perform exactly the same when the vehicle is built as well as after it has been repaired correctly. Secondly, is that the quality and reputation that Toyota is known for follows that vehicle throughout its life as it is passed on to the next owner(s). As Leos demonstrated the product he used a tablet to scan the VIN which was transferred to a computer and decodes it with manufacturer’s accuracy. From there a flattened, blownup image of a vehicle’s exterior panels is displayed and as simple as touching the part (for replacement) and it adds virtually everything that is required to perform that task. Replace a door and it will add caulking, sound deadening pads and one time use fasteners. It is the same for repair and possible this is a more graphic example of what this program will do. Repair a door and it automatically add de-trimming mold-

ings, handles, trim panels and adds any items that as one-time-use like the moisture barrier on the inside. It doesn’t stop at just the part but will also have links to CRIBs, Position Statements, replacement procedures, sectioning guidelines, etc.. Leos stated that other manufacturers are in discussions about adding their information onto this platform. This writer is certain when you see this product that you will agree this is long overdue on our industry and that it will fill a void that helps educate the industry about proper repairs and that we put the safety back into the vehicle that it was designed with.

@autobodynews Accept no Substitutes!

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 9

Event to Benefit CA Shop Owner Raises $125K for ALS Research at his Treatment Center at U. Michigan

A fundraising event held May 29 in honor of Tom Coleman, a co-owner of an MSO in California, raised more than $125,000 to support the Program for Neurology Research & Discovery’s stem-cell research on amyotrophic lateral sclerosis and other neural degenerative diseases at U. Michigan. Tom Coleman is a partner in the LC Automotive Group comprised of Bill Lawrence, Gil Alcoser and Tim Brown. LC is a small MSO with shops in Hemet, Hesperia, Highland, Long Beach, Redlands, Riverside, San Bernardino and San Clemente. Tom Coleman was diagnosed a little over a year ago with ALS and his has been particularly aggressive. He is involved in a Stem Cell Transplant study at the University of Michigan that has had some very positive results. The industry came together for him to raise awareness of ALS, the Stem Cell Study and raise funds to further the study. The event, held at the Back Bay Bistro in Newport Beach, was originally planned for 150 people. But through word-of-mouth it grew to include more than 250 friends and associates of Tom Coleman, 47, who was diagnosed with ALS in 2013. The fundraising event, which included a keynote speech by Eva Feldman, M.D., Ph.D., was organized by Tom’s wife Ronnette Coleman, his business partner and co-founder of LC Automotive, Bill Lawrence, both of

Costa Mesa, CA, Mr. Coleman’s sister, Sue Gottschalk of Canton, MI, and other friends. “I am deeply touched by the wide support of our industry for Tom, his family and their desire to contribute to the research efforts of Dr. Feldman and the University of Michigan,” Bill Lawrence said. “While Tom, his family and friends had worked tirelessly on planning this event, all those involved were taken back by not only the number of attendees, but by their generosity.” Tom Coleman is one of 30 patients who have received stem-cell injections in a first-of-its-kind clinical trial that has now reached Phase 2. In Phase 1 of the trial, the spinal cords of 15 patients including Mr. Coleman were injected with stem cells to determine whether the procedure was safe for humans. Phase 2 will add an additional 18 patients, each receiving up to 16 million stem cells—to determine the procedure’s efficacy—how well it works. “It took a big effort from family and friends to pull this event together,” said Tom Coleman. “But our fundraising success would not have been possible without the strong support of Enterprise Rent-A-Car, PPG, LKQ Corp, The Platinum Group, Single Source, Caliber Collision Centers, CCC and many anonymous individual donors. I sincerely thank each of you for your participation and contribution.”

Auto Glass Fraud Lawsuit Found in Favor of Allstate California’s Sonoma County Superior Court has ruled in favor of Allstate and the State of California in a lawsuit against a local man accused of creating a fraudulent billing scheme for auto-glass and windshield replacements totaling more than $1.4 million. The judgment, announced by Allstate, was issued against Reshat Alkayisi on March 31 by Judge Nancy Case Shaffer. Court records alleged Alkayisi engaged in an elaborate scheme to create multiple bogus auto-glass replacement businesses, by using fake names and identities, and then deceived insurers by submitting fraudulent claims. Several of his family members had their names used without their consent or knowledge. Allstate alleged Alkayisi violated California law by repeatedly submitting hundreds of claims to receive payment for OEM windshields and windows when he installed less expensive varieties of auto glass. Judge Nancy Case Shaffer agreed with Allstate and ordered Alkayisi to

pay $1.18 million in penalties, plus $441,508 in assessments and fees—a $1.6 million judgment. “Submitting even one false insurance claim isn’t just a bad idea— it’s fraud, and insurance fraud is a crime,” said Allstate’s California Senior Field Vice President Phil Telgenhoff. “Fraud drives up the cost we all pay for insurance by stealing millions of dollars from insurers.” “Allstate will fight fraud to help protect our customers and keep insurance costs down,” Telgenhoff said. Allstate presented evidence that Alkayisi created multiple sham auto glass installation businesses using fabricated names and identities in an effort to deceive insurers and increase his opportunities to submit fraudulent claims. Alkayisi could not be located for comment. He is on probation for a felony check forgery, and the judge in that criminal case has given Alkayisi permission to travel to Turkey for one month starting on Aug. 15, according to court records.

10 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Tampa Television Station Highlights Poor Quality Repairs, Body Shop Lawsuits Against Insurers

Report highlights repair quality issues and collision repairer lawsuits against insurers. Warns consumers their families could be “…at risk on the road.” Consumers in Florida were exposed to the controversies surrounding collision repair quality and insurance company practices that are the subject of lawsuits in the state and around the U.S. when Tampa ABCaffiliate, WFTS, aired a segment on its Action News broadcast. The ITeam investigation detailed consumer complaints of poor quality collision repairs that, according to the report, were performed by insurance company direct repair facilities. The report included an interview with Ray Gunder, owner of Gunder’s Auto Center, who is one of the plaintiffs in a lawsuit, A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al, brought against more than 30 insurance companies operating in Florida. In the segment, embedded below, the reporter details consumer complaints on the quality of repairs received and explains for viewers the legal action taken by repairers against the insurers.

In the report, an emailed statement from Insurance Information Institute defended insurance company DRPs saying steps to manage repair costs benefit consumers and that consumers have a choice of repairer. In late June, plaintiffs in the A&E Auto Body suit filed an amended complaint after the initial complaint was dismissed by the Judge in the case. In a press release announcing the filing of the amended complaint, Gunder states, “In reading the complaint, everyone in this industry knows it to be the truth… I am looking forward to bringing the issues to a jury and exposing the insurer’s egregious practices and ending the suppression that has been so harmful to our industry and to the consumers we serve. All repairers want is to serve our customers in an unencumbered manner and to see our employees earn a fair wage for their efforts.”

@autobodynews Accept no Substitutes!

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 11

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Western Associations with Ed Attanasio

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

Parts Director at Del Grande Dealer Group Thinks Outside of the Box

Managing a huge operation consisting of 13 dealerships and representing 14 brands, the Del Grande Dealer Group (DGDG) serves the Northern California’s Bay Area including San Jose, Fremont, Gilroy, San Francisco and Oakland and its surrounding areas. DGDG has one of state’s largest parts divisions selling O.E collision and mechanical parts for Volkswagen, Mazda, Nissan, Subaru, Hyundai, Chevrolet, FIAT, Kia, Buick, GMC, Chrysler, Jeep, Dodge and Ram vehicles. The company maintains a parts inventory of collision parts equaling nearly $4 million in combined total parts; employs 40 parts professionals, consisting of 13 managers, 25 counter

people and 12 delivery drivers. DGDG’s Parts Director is Larry Sherman, 53, a veteran of the parts game and a lifer when it comes to the body shop business, he explained. “My dad has owned body shops in the Fresno area for many years, so I was immersed in the collision industry at a very young age. I tell people I was born in bondo dust! So, when I talk to body shop owners or parts people, I DGDG’s Parts know what they’re Director Larry going through and Sherman isn’t what their parts afraid to do things differently when needs are, because it comes to the I’ve been on that parts game side myself.” When it comes to parts directors, Sherman isn’t afraid to think differently and approach things his way. This includes embracing all available

14 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

price matching programs (CollisionLink, OC Conenction, etc.) as well as the controversial PartsTrader while proactively pursuing the wholesale market with highly strategized marketing and advertising. “If you want to succeed at wholesale, you have to set up systems and dedicate resources to doing it effectively,” Sherman said. “Wholesale is an ongoing thing and you really have to make it a priority, and that’s why we reach out to the shops as often as we can and make ourselves 100% available to them. Building relationships with the shops is important, of course, and delivery is also a significant part of it. By working on the wholesale side for so many years, we know what the shops demand and we know how to fulfill their needs.” To achieve this, Sherman and his experienced staff work in conjunction with Wholesale Parts Manager Vince

Huerta and Outside Wholesale Parts Representative Anwar Ali to make this company within a company work like a Swiss watch. It’s an all-star team with centuries of cumulative experi-

Wholesale Parts Manager Vince Huerta (left) Outside Wholesale Parts Representative Anwar Ali coordinates a huge parts division at DGDG out of their hub in San Jose, CA

ence and by working closely with each other, DGDG has been turning heads and getting great reviews from collision repairers year after year. It’s also been voted as one of the best

places to work, according to the San Jose Mercury News. Outside Wholesale Parts Representative Anwar Ali calls on body shops to answer their questions and works hard to make their lives a little easier if possible. “We’re not just about selling you a part,” Ali said. “We want to be partners with you as well and establish a long-term relationship that will benefit both of us. As a former body shop estimator, I know the importance of cycle times and how the wrong part can impact them. Looking at the parts business from the body shop perspective helps us to do a better job.” With literally thousands of parts going out every day, Wholesale Parts Manager Vince Huerta knows that timely strategized deliveries at this level is an enormous undertaking, but by going that extra yard (or mile) for his customers, he knows they’re doing things right. “Our three distribution centers (main hub in San Jose, with others in Fremont and Concord) are very convenient because every day we have 12 drivers going in 12 different parts of the Bay Area. It’s important that we route them properly and keep in con-

stant communication with our drivers, for when things change. That way we can adapt quickly and respond right away. We always ask our body shop customers about how we can do a better job, because we like their feedback and want their opinions.

PartsTrader allows us to reach out to new customers and establish relationships with them. Body shops obviously work with a lot of other insurers other than State Farm, so we can capture that business by staying in the game with PartsTrader.”

The parts delivery crew at DGDG prepares for another busy day

State Farm’s PartsTrader program hasn’t exactly been getting rave reviews by parts people and shop owners alike, but while most people zig, Sherman zags. “I know that many people have issues with PartsTader, but we realize it’s not going anywhere anytime soon, so we’ve decided to embrace it.

Sherman is an optimist, but he’s also a realist when it comes to the never-ending argument about the overall quality of OE vs. aftermarket parts. “Most of the insurance companies want to use more aftermarket parts to save money obviously,” he said. “But from the majority of all the body shop owners I’ve talked to, they would

rather use all OE parts in their repairs. So, we try to do everything we can, so that our customers can incorporate as many OE parts as they can into each repair and manufacturer’s price-matching programs can allow us to do that, in many cases. Some shops don’t think that we can match the aftermarket’s prices, so they’re surprised when they find out that we can do it.” To learn more about what body shops want when it comes to parts, Sherman is planning to host what he’s calling a wholesale focus group, consisting of body shop owners and assorted collision professionals, he said. “We’re going to bring some of our larger accounts down here to our headquarters in San Jose (at Capitol Expressway Volkswagen). We’ll be picking their brains and in return, we’ll buy them dinner. We want to be better partners with our body shops and by knowing what they want, we can do a better job.”

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Continued from Cover

Assured Performance

case—it’s essential to be on the playing field in the future.” Assured Performance has positioned itself right in the middle of this obvious game change. They are a legal co-op, a non-profit consumer advocacy organization and management company. Combined, they operate as a third-party administrator for body shop certifications and marketing programs for Ford, Nissan, Chrysler, Enterprise, GM and others. They also provide consumer awareness to thousands of media outlets and manage various vendor rebate programs. Uniquely, Assured Performance has the distinction of administering more than $13.5 million dollars of supplier rebate rewards to their members since 2004 which helps shops reinvest in their business. “We’re helping all of the shops to keep pace with a rapidly changing marketplace. We welcome those that want to be a part of the future; our best estimate is that, to-date, only about 1 in 10 shops have already begun this journey,” Biggs said. “Our industry needs to urgently embrace this challenge to

meet the repair needs of today‘s vehicles. The company has already enrolled nearly 1,600 shops in their joint-effort OE Certification program and is well on their way to their objective of 2,000 shops by year-end 2014 and 3,000 by year-end 2015. Ford, Nissan, Chrysler and others now have similar coverage by leveraging the Assured Performance platform. Regardless of where a consumer lives or travels, they will have a Certified Collision Repair Provider choice, according to Biggs. To handle the anticipated further growth of its third-party certification program, Assured Performance has added several industry veterans to its team. A significant recent addition for Assured Performance is Ronald Doerr, the company’s new Senior V.P. of Strategic Initiatives. Through 30-plus years working for GM on the OEM parts side, he brings a broad industry perspective and is respected across multiple market segments. “I’ve known Scott Biggs and witnessed the evolution of his company over many years,” Clark said. “Scott has asked me to help the company in See Assured Performance, Page 22

NICB Says Honda Accord Still Most Stolen Vehicle

The National Insurance Crime Bureau (NICB) released its annual Hot Wheels report which identifies the 10 most stolen vehicles in the United States. The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2013. The report also lists the top 25 2013 vehicle makes and models that were reported stolen in calendar year 2013. For 2013, the most stolen vehicles in the nation were (total thefts in parentheses): 1. Honda Accord (53,995) 2. Honda Civic (45,001) 3. Chevrolet Pickup (Full Size) (27,809) 4. Ford Pickup (Full Size) (26,494) 5. Toyota Camry (14,420) 6. Dodge Pickup (Full Size) (11,347) 7. Dodge Caravan (10,911) 8. Jeep Cherokee/Grand Cherokee (9,272) 9. Toyota Corolla (9,010) 10. Nissan Altima (8,892) The following are the top 10 2013 model year vehicles stolen during calendar year 2013: 1. Nissan Altima (810) 2. Ford Fusion (793)

3. Ford Pickup Full Size (775) 4. Toyota Corolla (669) 5. Chevrolet Impala (654) 6. Hyundai Elantra (541) 7. Dodge Charger (536) 8. Chevrolet Malibu (529) 9. Chevrolet Cruze (499) 10. Ford Focus (483) After a slight increase in 2012, the FBI predicts a reduction in national vehicle thefts of 3.2 percent when final 2013 statistics are released later this year. The peak year for vehicle thefts was 1991 with 1,661,738. If the FBI’s preliminary 2013 vehicle theft estimate holds, thefts will be under 700,000—a number not seen since 1967 and a reduction in vehicle thefts of over 50 percent since 1991. “The drop in thefts is good news for all of us,” said NICB President and CEO Joe Wehrle. “But it still amounts to a vehicle being stolen every 45 seconds and losses of over $4 billion a year. That’s why we applaud the vehicle manufacturers for their efforts to improve anti-theft technology and pledge to continue to work with our insurance company members and law enforcement to identify and seek vigorous prosecution of the organized criminal rings responsible for so many of these thefts.”

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Continued from Cover

I-CAR Wants

maybe they are more likely to take a look to see what they can find on the website.” After more than a year in development, the website is available through the “Technical Knowledge” section of I-CAR’s website – www.i-car.com – or directly at http://rts.i-car.com. It feature six primary features: 1. The “OEM Information” section includes a page for each automaker, listing what types of collision repair procedures and information each makes available and how to access it. But Bartanen said the section offers not just links to the automaker’s repair information websites (though there are short videos explaining the navigation of each automaker site) but often some of the actual procedures, bulletins and information technicians or estimators may need. In the Acura section of the portal, for example, Bartanen opened a bulletin showing that sectioning cannot be done on the B-pillar reinforcement on the 2014 Acura MDX. 2. Another section, searchable by year-make-model, offers a guide to automaker information on which parts require inspection or replacement following an airbag deployment. 3. The “partial part replacement” section, also searchable by year-makemodel, lists what sectioning procedures are available from the automakers. The procedures themselves still generally need to be downloaded from the OEM website, Bartanen said, but this guide at least allows users to know whether what they are looking for exists at those sites. 4. A “collision news” section of the portal is replacing I-CAR’s longstanding “Advantage” newsletter, and will include three or four new articles a week; this is where, for example, ICAR announced in July that in part due to I-CAR’s encouragement, Kia Motors recently released comprehensive collision repair manuals in the United States for the first time. Bartanen said shops and technicians can receive “push notifications” about news posted to the portal by following the “@tech_briefs” Twitter feed (no push notifications are available via email at this time). 5. I-CAR has posted it “Uniform Procedures for Collision Repair” (UPCR) at the new portal. First developed in the late 1990s but more recently updated, the UPCR outlines

industry-accepted repair procedures for such things as adhesive bonding, corrosion protection and wheel alignment. 6. The “Ask I-CAR” section is just that, a way for a portal user to email or call I-CAR with a technical question for which they haven’t been able to find an answer. In a live demonstration of this feature, Bartanen called I-CAR’s tollfree number and said he was looking for sectioning procedures for the B-pillar on a Dodge Dart; within minutes, the I-CAR representative checked the Dodge OEM information website and found that given the type of steel John Van Alstyne used for that B-pillar, Dodge offers no sectioning procedures. She also emailed Bartanen that information, and posted it to the portal in a searchable (by year-make-model) database of other such questions I-CAR has researched. Bartanen said more information will continue to be added to the portal; many automakers, he said, are anxious to use the portal to put technical information and procedures into collision repairers’ hands, often at no charge.

Current I-CAR Statistics I-CAR also used its annual conference to update the nearly 400 people in attendance on the organization’s other current and future activities. I-CAR CEO John Van Alstyne reported that 56,000 student from more than 8,600 businesses received I-CAR training last year. That training now includes 77 live classroom courses, almost an equal number of online course, and 14 virtual classes that are taken online but with an I-CAR instructor teaching the course live. He said about 3,000 businesses have achieved I-CAR Gold Class status, and about 2,300 more have been categorized as “Road to Gold,” businesses that are working toward achieving Gold Class status.

I-CAR reaching out to consumers Those businesses, and others with ICAR-trained technicians, may be glad to hear that I-CAR is launching a consumer awareness campaign to help drivers understand the value of having their vehicles repaired by trained shops and technicians. “During my first three years with this industry, I have been told many times that the consumer just doesn’t

18 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

care about collision repair until the moment their car is hit,” Van Alstyne said, acknowledging that he too had previously not thought much about the topic before joining I-CAR in late 2010. “But no one ever told me I should think much about repairs, so I was ignorant.” With that in mind, he said, ICAR first benchmarked the level of awareness among consumers about collision repair, finding it very low. As part of this benchmarking, he said, “We gave them some information about things they should be aware of, and their interest perked significantly. They cared and wanted more information.” “We need to educate and empower consumers to help them make informed collision repair decisions,” Van Alstyne said. Speaking at a press conference following the day-long conference, Ann Gonzalez, senior director of marketing for I-CAR, said the organization is now working with a Detroit-based agency on a “larger-scale national and regional creative campaign,” to reach consumers. That will include public service announcements and social media advertising, she said. Those campaigns, which

focus on “safe repairs” and “trained technicians” are currently being tested in some markets. Elise Quadrozzi, I-CAR’s director of development for the insurance segment, said as more insurers include Gold Class or other training requirements as part of their direct repair program (DRP) agreements, they are interested in reaching consumers with a similar message about the value of that training. “So I think you will see some initiatives coming to fruition pretty quickly where they will start to include that in their messaging. not just as part of the DRP structure, but actually as part of the messaging out to their consumers,” Quadrozzi said. By getting this information directly to vehicle-owners, Van Alstyne said, “the consumer is going to help our industry do more of the right things.”

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2015 F-150 Repair Parts Will Be Sold To All Body Shops Ford Motor Co. says it will sell body repair parts for the 2015 F-150 to all body shops, even ones that have not been certified to fix the aluminumbodied pickup. Ford will package each replacement part with the instruction sheet from the factory repair manual that dealers use, Paul Massie, Ford’s powertrain and collision product marketing manager, said at NACE. The instructions will spell out such things as how to apply the structural adhesive and which type of rivets to use to affix a repair part to the vehicle. The aluminum F-150 requires special tools, facilities, technician training and repair procedures, and some Ford dealerships’ body shops are not making the investment to repair the pickups. Massie said less than half of Ford’s 3,000 or so dealerships have body shops, but that is not expected to affect F-150 customers who need accident repairs. He said Ford is working to ensure that getting the 2015 pickup’s body repaired will be no different for customers from getting mechanical work done. “The independent body shop training is the same for Ford and Lincoln dealer body shops,” Massie said. He spoke to independent repair shop owners and Ford dealers here at the collision repair and service convention, NACE|CARS 2014 Expo &

Conference, hosted by the Inter-Industry Conference on Auto Collision Repair, or I-Car, and the Automotive Service Association. Massie said fixing the aluminum truck is not more difficult than repairing a steel-bodied vehicle. Many of the tools and repair procedures are identical. “Eighty percent of the repairs are exactly what you do today,” Massie said. “With bumpers, fenders, grilles and things you hang on the vehicle, there’s no change.” What adds cost and complexity is that dealers and body shops working on the 2015 F-150 must maintain near hospital operating room-like cleanliness and prevent steel and aluminum particles from mixing, which can cause galvanic corrosion and other problems.To do that, a body shop needs another set of tools to be used only on aluminum vehicles, an air filtration or vacuum system to prevent dust from spreading and a dedicated and segregated repair bay. The tools alone cost about $34,000, according to Ford. Massie said in some accidents, a 2015 F-150 might be easier to repair than a steel-bodied truck. Replacement panels will be available for the floor and rocker panels, and B-pillar repairs can be made without removing the roof. Massie said: “That will save both time and cost.”

Next Sherwin-Williams ECOLEAN Workshop is Sept. 16-17 After two sold out EcoLean™ Workshops, Sherwin-Williams Automotive Finishes announces that the next EcoLean Level 1 workshop will be held on Sept. 16-17, 2014 in Phoenix, AZ, at the Phoenix Airport Marriott and Swift Transportation. The exclusive EcoLean Level 1 workshops from SherwinWilliams are offered to collision center owners and dealer managers from across the United States and Canada. They are designed to educate attendees about how to maximize profitability by improving production and eliminating waste throughout their facilities. “Our goal is for our attendees to leave the two-day event inspired, confident and armed with the necessary tools to immediately increase the quality and production output of their businesses,” says Greg Eisenhardt, Sherwin-Williams A-Plus™ NetworkMarketing Manager. At this particular training, the Phoenix

EcoLean Level 1 workshop curriculum includes a facility tour of Swift Transportation’s ‘Best in Class’ extensive repair center, as well as specific topics which include: ■ Improving Workshop Efficiency— The history of Lean Production, and its practical application in collision repair ■ Principles of 5S—Methods of making your facility more efficient and consistent ■ Building a Lean Culture - How to build a Lean Culture from the ground up ■ Overcoming Lean Implementation Challenges - Roundtable discussion with Consultant To register online for the upcoming Phoenix EcoLean Level 1 workshop, go to www.sherwin-automotive .com/ecoleanwp. For more information on EcoLean or the A-Plus Network, call (800) 798-5872.

Lake Auto Body & Collision in Lake Elsinore is now open and ready to serve customers in Lake Elsinore and surrounding areas including Temecula, Quail Valley and Canyon Lake. Specializing in auto glass replacement collision repair and painting the company describes itself as a one stop shop pro-

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Continued from Cover

LA AG Files Suit

unsafe business practices in which consumer vehicle repairs are performed with cost-savings as the primary goal rather than safety and reliability.” The suit, filed in Louisiana’s 19th Judicial District Court, alleges State Farm violated Louisiana’s Unfair Trade Practices Act and Monopolies Law by using scare tactics to steer Louisiana consumers to State Farm’s preferred repair shops and forcing shops to perform vehicle repairs cheaply and quickly, rather than in accordance with consumer safety and vehicle manufacturer performance standards.

The lawsuit alleges that State Farm steers consumers to direct repair providers that have signed agreements with the insurance company. As part of the terms of the agreement, those repair shops must comply with the standards for repair laid out by State Farm. The insurance company, not the repair shop, dictates how long the repair should take, what types of repairs are made and the quality of replacement parts. In many cases, the repairs are completed with sub-standard parts without the consent of the policy holder. “In some cases, we’ve found that these parts are nothing more than used junk yard parts. In others, we’ve found them to be foreign knock-off parts of questionable quality,” said Caldwell.

“Auto repair is not an industry where you can cut corners to save a little money,” he said. “It could be a matter of life and death.” Caldwell says the suit aims to change the culture of unsafe business practices led by State Farm in the auto insurance and repair industry. State Farm currently holds the largest share of auto insurance policies in Louisiana. In 2012, State Farm wrote one third of all auto insurance policies in the state totaling over $1 billion in premiums. “Each month Louisiana consumers give their hard earned money to State Farm under the assumption that the insurer will take care of them if an accident occurs. This simply isn’t happening. Quite frankly, State Farm has been there for State Farm,

not the Louisiana consumer,” Caldwell stated. State Farm responded to the suit saying it does not reflect its history of advancing automotive safety. According to State Farm spokesperson Dick Luedke, answering a question by a trade media source, “The description in this lawsuit is not in line with State Farm’s mission to serve the needs of its customers, and our long, proud history of achievements in advancing vehicle safety. We are reviewing the lawsuit and will have more to share soon.” Luedke also pointed toward a State Farm website that outlined the auto insurer’s involvement in advancing safety issues including the fact that State Farm is a Founding member of the Insurance Institute for Highway Safety. A PDF copy of the lawsuit can be found at www.autobodynews.com.

Body of Post Falls, ID, Shop Owner Recovered from Lake

The body of a Post Falls, ID, body shop owner missing for nearly a week was recovered the night of Aug. 8 in Lake Coeur d’Alene, the Kootenai County Sheriff’s Office said. Gary Scott “Scotty” Shawver, 57, jumped into the lake to retrieve another person's hat that had blown off in a passing storm but wasn't able to get back to the boat. The lake is about 160 feet deep where Shawver was last seen struggling in the waves. Three passengers also jumped in the water trying to help Shawver but were unsuccessful. Shawver apparently was overcome by storm waves and drowned. A local dive company that had been diving in the Stevens Point area and found a body in 60-footdeep water. The sheriff’s Recreation Safety Division and dive team responded to the scene and recovered Shawver’s body from the lake bottom. Scotty Shawver was well-liked and respected in town with a reputation for helping people out. Shawver hosted a popular and free block party for Post Falls residents twelve years in a row and there were many “Body by Scotty” donations to sport teams and charitable organizations. Shawver had opened a new business, Scott Shawver’s Autobody and RV, at 2915 E. Seltice Way in Post Falls. Before that he was a longtime co-owner of Body by Scotty in Post Falls. www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 21

Continued from Page 16

Assured Performance

getting all of the pieces together as we move forward in the certification aspect of the business. As a former member of the OEM Roundtable, I’ve seen first-hand how these programs have grown and changed. Multiple carmakers building multiple vehicle models that require multiple shop repair capabilities have created a confusing and unmanageable environment for most shops. “Cars have become so much more complex that certification is going to be more and more integral to the day-today operations of a body shop, regardless of where they are or what their business model is,” Doerr explained. “Assured Performance has interpreted and simplified the many moving parts, leveraging their commonalities instead of the exceptions. Assured Performance’s program has struck a chord with the OE’s and the industry because they all see a definite need. Shops can get the certification they need and in return, the OE’s are stepping up with things like referral programs.” To ensure that the company has first-hand shop knowledge and experience, Assured Performance has five former shop owners and MSO managers onboard. Aaron Clark is one such former body shop owner. He is now Assured Performance’s V.P. of Certification and Network Development. Clark sold his seven shops at Aaron Clark is the the end of 2012, company’s new anticipating retireV.P. of Certification ment, but started and Network Development. working for Assured Performance a few months later. He‘s happy and excited to be with a growing company during an ideal time in the collision industry’s history, he said. “The certification arm of this company is gaining more and more momentum every day because getting onboard with this program has quickly gone from an option to a necessity for body shops.” Clark said, “I was prepared to step away from the business after selling my shops, but when this opportunity was presented, I could not resist. We have a chance to reinvent this industry in a positive way and work to create something that never existed before.”

At NACE, Ford representatives discussed the details of repairing the 2015 F150 and their National Body Shop Network program and Clark elaborated on it. “As the maker of the number one selling vehicle representing nearly 700,000 sales per year, it was no wonder that all of their presentations had standing room only over three days,” Clark said. “The highpoint of the presentation was how shops would be rewarded with official Ford certification—recognition for making the investment to become retooled, re-trained and re-equipped. Further, shops that can make the grade will ultimately receive referrals from not only Ford, but Nissan, Chrysler and others through their aggressive OEM consumer-facing awareness and marketing efforts.” Chrysler, Nissan, and Ford are the first ones to announce a referral program and others will be unveiling their programs Scott Biggs, right after the first President and of the year. Clark Owner of Assured sees the referral asPerformance Network in Irvine, CA pect of these certifications as a real shot in the arm for the collision industry as a whole. “These are 100% OE-driven customer referral programs that didn’t exist before, so it’s huge,” he said. “There is no question here—you will have to fix these new vehicles differently and therefore shops are going to have to invest in the training, tools and equipment. If you’re going to have to do all those things regardless, why wouldn’t you want to be recognized for it and receive referrals for doing it?” The standard certification-recognition requirements used by Ford, Chrysler, Nissan, etc. are those developed by Assured Performance in cooperation with many OEM’s. Assured Performance supports the open competition approach to procure the tools and equipment required. This key aspect is illustrated well in Ford’s aluminum repair requirements for the new F150. To be Ford certified-recognized through 2015, the shop must become “aluminum capable” including having separate aluminum repair tools, a separate area (curtains or walls) for aluminum work, and specific repair training and welding certification provided by ICAR. While Ford has these requirements, the shop can buy from several good choices where competition exists.

22 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Assured Performance’s approach to body shop certification is unique in other ways as well. Instead of a surprise “pass-fail” test, Assured Performance uses a business development process. Even before the shop enrolls for the first time, they are able to evaluate their readiness by following the online capabilities assessment referred to as the “Pre-flight Checklist.” Shops interested in becoming certified are able to complete the “Capabilities Assessment” to review the requirements, see their deficiencies, and generate a business development plan, helping them get from where they are now to where they need to be, according to Doerr. The turnkey system designed by Assured Performance even develops a shop—specific calendar, budget and equipment matrix with vendors listed to help the shop streamline the entire process. Even I-CAR working in conjunction with Assured Performance has developed a program called “Road to Gold” to address the evolving needs in the area of training. Equipment and tool vendors have also joined the effort, providing expedited online ordering and pricing to simplify and streamline the

process of retooling for the shops willing to make the journey. “Every aspect of this program is administered by Assured Performance, starting with the enrollment process, the shop capability assessments, their business development plans, the annual on-site physical audit-inspections, necessary online support systems, proof of compliance documentation, and even shop marketing,” Ron Doerr said. “Assured Performance’s joint-effort approach eliminates redundancy in equipment and duplication of the fees and the overall cost for a body shop to become certified. The cost savings for each shop is in the thousands of dollars, annually – a huge windfall by Ronald Doerr is any calculation. Assured Network’s new Senior V.P. of And, in aggregate, Strategic Initiatives the OEM’s are probably saving millions in non-core expenses - they can focus on building great cars and trucks and promoting the certified repair network while Assured Performance quarterbacks the improvements in repair business capabilities - truly a best path forward for all.”

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 23

On Creative Marketing with Thomas Franklin

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin

Glendale/Foothill & Valley/Ventura CAA July Chapters Meeting CAA members took a “A Deep Dive into KPI’s” at the Odyssey Restaurant in Mission Hills, July 24. Glendale/Foothill Chapter President Daniel Panduro began the meeting and led the flag salute. He thanked D’Angelos Automotive and Industrial Coatings for sponsoring the meeting. The first order of business was a tribute to two recently deceased industry veterans, Bob Berg and Thad Forney. Bob was well known for providing solvent-based products during a time in the 1960s when solventbased materials were nearly impossible to obtain. His PCL waste pick-up company was unique at the time. Robin Laguna concluded the tribute. Randy Stabler, the incoming Chairman of CIC this January, spoke next on his trip to Barcelona, Spain, in May, to attend a two-and-a-half day international collision repair forum. Interpreters were provided for 43 different languages. There were a few

very unusual practices revealed. One was about shops that provided an Internet site for shop employees to communicate opinions, ideas, suggestions and more. In the Netherlands where a large percentage of travel is by bicycle, vehicles are fitted with exterior airbags to protect bicyclists when they collide with a vehicle. Unlike the U.S. where insurance companies operate differently in states, in the global collision repair community, insurance companies can be involved in global standard repair technology, claims management control and more. Often a country has mainly small cars so there is no frame work—heavy hits are totaled. There is a customer pay trend and also private equity networks. Finally he spoke about the largest collision shop in the world, in Dubai, with 180,000 square feet and 550 employees! The key speaker of the evening was Jonathan Purifoy, formerly a

chemical engineer with Dupont Coatings, and currently Sales Effectiveness Manager at Axalta Coating Systems.

Jonathan Purifoy with Axalta Coating Systems spoke to CAA members about KPIs and leadership

He talked to CAA members about Key Performance Indicators (KPIs), leadership, and other topics. In addition to providing valuable informa-

tion, Purifoy proved to be an entertaining speaker, with references to bits of recorded music, pop-up videos, and audience interaction. Purifoy began by showing what tracking KPIs can and can’t do for a shop. For example he showed that the raw numbers mean nothing if not compared to current industry benchmarks. They’re like a GPS reading with no known external geographical point of reference. Another liability to managing by the numbers could result in being too quick to make changes, not taking everything into account. In fact, he pointed out, there are hundreds of indicators a shop owner or manager could focus on and be overwhelmed by the sheer volume of numbers. But there are only a few metrics that are meaningful. He asked the audience to evaluate just a few metrics and decide which one it would be most important to improve to raise See CAA July Meeting, Page 44

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Judge Denies Ford’s Motion to Dismiss ABPA Lawsuit Recent recommendation by U.S. Magistrate Judge Mazzant affirms the Automotive Body Parts Association’s standing to bring suit seeking to overturn Ford design patents. U.S. Magistrate Judge Amos Mazzant issued an opinion that a motion to dismiss by Ford in the case, Automotive Body Parts Association, v. Ford Global Technologies, LLC., should be denied. In its motion to dismiss, filed in February, Ford sought to have the case dismissed arguing the ABPA did not have standing to “… assert a claim for declaratory relief on Ford’s design patents.” On November 25, 2013, the ABPA filed the lawsuit in the United States District Court for the Eastern District of Texas against Ford Global Technologies, LLC seeking to have design patents for body parts ruled invalid. Ford Global Technologies is a wholly owned subsidiary of Ford Motor Company that manages intellectual property and technology commercialization for Ford Motor Company. The complaint seeks to have the court declare Ford Global Technologies’ design patents invalid and permanently enjoin the company from enforcing automotive body repair parts patents against ABPA members. In the motion to dismiss, Ford cited that no company members of

ABPA joined the suit, and that the suit was actually counter to the interests of LKQ Corporation, an ABPA member, and since 2009, “…exclusive licensee of Ford design patents, including the six design patent in suit for the automotive aftermarket.” Comment on the issue in his Report and Recommendation denying the motion, Judge Mazzant states, “The ABPA has met this low threshold to show that the interests it represents are germane to the purposes of the ABPA organization. For example, if the named patents are rendered invalid and/or unenforceable, then all ABPA members can sell these parts without obtaining a license from Ford to do so. This is certainly relevant to the ABPA’s objectives to promote fair and honorable trade practices between the membership and its customers and to discourage unfair competition and violation of business customs and usages of the trade.” The Judge continued, “The Court finds that under both views, the ABPA has established that the alleged conflict in this case should not defeat associational standing. Ford asserts that the interests of the ABPA in this litigation are at odds with the interests of its member LKQ, the exclusive licensee of the six design patents at issue in this litigation.

26 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Under the first view, this conflict of interest would not defeat standing, and could instead be resolved by the ABPA’s internal procedures for removal of a member for conduct that “is detrimental to the interests and purposes of the Corporation.” Mazzant continued, “Further, LKQ has an interest in the patents as the exclusive licensee and could intervene to advance its interests against the association’s position on the merits, if necessary.” Mazzant noted that the ABPA argued that the litigation is not directly adverse to LKQ’s interest because if the litigation is successful, LKQ may continue to sell the products and will no longer have to pay licensing fees to Ford for the use of the patents. The ABPA further notes that LKQ’s benefit of selling these products exclusively is to the detriment of the other members of the ABPA. The ABPA contends that this litigation was properly authorized in accordance with its procedures Parties to the suit have days after service of the magistrate judge’s report, to file specific written objections to the findings and recommendations of the magistrate judge. The APBA lawsuit is the latest in series of litigation stretching back to the mid-2000s. In December 2005, a suit

was filed by Ford with the U.S. International Trade Commission (ITC) claiming that certain aftermarket parts violate patents held by the automaker. Keystone Automotive Industries, Inc., now part of LKQ Corporation, was identified as a respondent in that action. Ford’s patents were upheld and in April 2009, Ford reached an agreement with LKQ Corporation to settle litigation filed by Ford over collision parts. As part of that agreement LKQ agreed not to challenge the validity of Ford’s design patents and, in exchange, LKQ would become the only distributor of non-OEM collision parts covered by Ford patents. In early July, LKQ Corporation announced it has entered into a Patent License Agreement with Chrysler Group LLC that grants LKQ a license under certain Chrysler design patents in connection with LKQ’s distribution and sale of aftermarket collision parts in the United States. As part of the agreement, Chrysler will dismiss the complaint it filed in January 2014 against LKQ alleging that the distribution of certain aftermarket parts by LKQ infringed Chrysler’s design patents relating to its Dodge Ram pickup truck. Further details about the agreement and its terms and conditions are confidential.

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 27

Southwest Associations with Chasidy Rae Sisk

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

HABA Holds Meeting, Co-Hosts Business-Building Events fessionals in attendance. HABA briefly discussed their association, its goals and progress thus far. CARSTAR presented a “Collision Industry Overview,” discussing the current state of the industry, and their presentation ran hand-in-hand with KAPE’s “Insurance Industry Trends.” Topics of conversation focused on the increase in multi-shop operations, the fact that 8090% of the collision repair industry remains insurer-paid, and how many insurance companies are becoming innovative in their attempts to reduce repair costs. Current trends indicate that many insurers may soon enact in-network and out-of-network deductibles, though the legality and feasibility of this model will vary by state. Also, many insurers are reducing the number of shops to which they refer customers as they’ve found it to be more efficient to work with fewer providers. A major factor in their decision about which shops will receive re-

The Houston Auto Body Association (HABA) had a busy day on Tuesday, August 5, when they held their monthly meeting on the same day they co-hosted two business-building events alongside AAMS, 3M, Mitchell, Hertz, BASF, CARSTAR and KAPE. The events were designed to provide collision repairers in the Houston area with an opportunity to learn about critical issues and trends impacting their businesses from leading industry professionals. Leo Kozadinos, President of HABA, called the events “a game changer in the collision repair industry.” The morning session was held from 8-10AM at the Homewoods Suite in Spring, TX, and from 6:30-8:30PM, the evening session took place at the Hyatt Regency Houston. Both sessions followed the same agenda and included a meal for attendees. All of the organizations co-hosting the events gave short presentations on various matters of interest to the collision repair pro-

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ferrals will be linked to cycle time because, as Kozadinos states, “increased cycle time translates into more money for insurance companies due to rental car costs, so the more efficient a shop is, the happier the insurer will be.” The group also touched on forgettable revenue and the possibility of establishing a call center to ensure the accuracy of estimates. In regards to the continuing consolidation of the insurance industry, speakers noted that the industry is stagnant with no organic growth so consolidation will continue, resulting in reductions to shop networks which means fewer shops will be doing more work. BASF informed attendees that “Repair Planning” should be professionally and proactively done in each shop by developing a game plan upfront for each repair. Ensuring an accurate estimate at the beginning of the repair process will improve touch time, an area with which many shops

in the country struggle. In “Mobile Estimating Technology,” Mitchell profiled the new technology that they plan to release in the imminent future. By compiling the estimate more automatically, their new technology should produce an easier, more accurate estimate which, in turn, will improve TATs for collision repair facilities. 3M’s “The Impact of Technology for Future Vehicles” focused on the driving changes in technology with respect to fuel efficiency and safety, highlighting some new products currently in development. They also discussed preparation for the aluminum 2015 Ford F-150 and how, with the increasing prevalence of high-strength steels being used in vehicles, it’s imperative to utilize the correct equipment. In “OSHA/EPA Compliance Training for Collision Repair,” AAMS reminded attendees that an inspection is always possible so it’s imperative to en-

sure each shop offers a clean, safe work environment. Painters must be trained and certified, and to be compliant, shops must maintain safety sheets and complete OSHA/EPA training annually. Kozadinos says, “there’s a lot that needs to be done, and though shops are busy repairing vehicles, they need to stay compliance. Luckily, there are services out there that can assist.” Hertz presented “Car Rental Technology” to inform attendees that they will be releasing a new program soon that will allow for 24/7 rentals, meaning collision repair shops will have rental cars available on their property at all hours of the day for their customers’ convenience. Approximately 60 individuals were in attendance, and Kozadinos was

pleased with the two business-building events, stating they were “well done, fun and educational. The events went very well.” In between the two events, from 5-6:30PM at the Hyatt Regency Houston, HABA held their monthly member meeting where they discussed the necessity of maintaining momentum, among other association goals including education. “Education is the main reason to be involved with HABA,” Kozadinos states. “Too many shops are not up to speed on what the industry is doing, but by keeping up with the association, they can stay informed and educated.”

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CAWA Leadership Meetings to be Held September 25–26 CAWA Leadership meetings will be held in South San Francisco, California on September 25-26, 2014. The general session to be held on the 26th of September and will include the following presentations: “A Demonstration of Telematics Hardware Available Commercially” Presenter: Stefan Gspurning, Bosch Automotive Aftermarket Description: To give the attendees an overview of the current state of telematics technology and the shortcomings of devices currently available. This demonstration should help the attendees form a solid opinion on telematics and provide insights on where the market currently stands. “Fascinating, Frightening, Fundamental Truths About eCommerce” Presenter: Scott Thompson, Vice President, Epicor Description: The parts business is being transformed by customers' rapid adoption of online sourcing tools. Whether you're selling to repair shops, consumers or both, eCommerce is revolutionizing your distribution channel. Will you ignore this trend or actively exploit the many opportunities it represents? The attendees will understand what role eCommerce should play in their business today, next year and in the decade to come, as well as, how an

eCommerce strategy can enhance their long-term competitiveness. “A State by State Legislative Forecast” Presenters: Stuart Goodman, CAWA Arizona Legislative Advocate; Gary Conover CAWA California Legislative Advocate; David Brown CAWA Nevada Legislative Advocate and Moderator Jennifer Zins, CAWA Director of Government Affairs Description: Attendees will get a sense of the political climate in each state, significant legislation, regulations and ballot initiatives of interest to the aftermarket industry and other issues affecting the industry and business in the three states represented by CAWA. “Other Association Business” Presenters and Description: President & CEO, Rodney Pierini will give a state of the Association message while other partners dedicated to enhancing business services and saving members’ money will focus upon benefits and the value the Association brings to owners and managers of an aftermarket business. For more information on the presentations and the upcoming leadership meeting, contact Rodney Pierini, President & CEO at admin@ cawa.org or 800.332.2292.

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 29

Southwest Associations with Chasidy Rae Sisk

ABAT Holds Second Meeting On Tuesday, July 29, the Auto Body Association of Texas (ABAT) held its second official meeting in Tyler, TX at Hi Way Auto Parts, a local recycled parts vendor who also provided refreshments for attendees. The twohour meeting attracted 58 attendees from shops throughout Eastern Texas,

Attendees listen attentively to guest speakers

as well as several shops from the Dallas/Fort Worth area who recently learned about ABAT, in addition to various paint companies and vendors. Burl Richards, President of ABAT,

was pleased with the turnout because “this is a huge thing to have happen as the DFW area is obviously large, and we are working together with these shops to help unite the collision repair industry here in Texas.” The meeting began with the Pledge of Allegiance followed by a benediction and review of Anti-Trust guidelines. Next, Richards introduced local State Representative Travis Clardy who is serving as ABAT’s attorney, and Clardy discussed the details associated with his role as a State Representative. He also described the process of introducing legislation, an avenue that the association may choose to get involved with in the future. Richards then introduced Craig Barker, owner of Hi Way. Hi Way is a member of the Premium Recycled

Washington-Based Andrews Auto Glass Owners Charged with Tax Fraud

The Washington Attorney General’s office has charged Andrew and Vita Onufreychuk, owners of Andrews Auto Glass, for alleged theft and fraud, accusing them of “falsifying their business tax returns in order to cheat the state out of at least $13,000 in sales tax,” according to the State Department of Revenue. “Investigators suspect the underreported amount could be higher, based on invoices, business bank account deposits and other documentation they reviewed,” officials alleged in a statement. Andrew Onufreychuk is charged with one count of theft in the first degree and six counts of filing false or fraudulent tax returns. Vita Onufreychuk is charged with one count of theft in the first degree. On the charge of first degree theft, the maximum penalty possible

Free

is 10 years and/or a $20,000 fine, according to the court documents. “Andrew and Vita Onufreychuk have an ongoing history of collecting and failing to remit retail sales tax to the department of revenue,” writes Lisa Gilman, an investigator for the Washington Attorney General’s Criminal Justice Division, in an affidavit filed with the court. Other businesses with which Andrew Onufreychuk has been involved also have unpaid tax warrants, including a business he operated until 2003 and Andrews Auto Group, which is a new corporation he leads in addition to the glass shops, State Department of Revenue officials reported. Andrews Auto Glass has locations in Everett and Seattle, Wash. No one answered the phone for a business listed under this name online.

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practices in restoring vehicles to their pre-loss condition. Richards says, “this is a survey that CSI has never done, but we have been working with them in an effort to get it accomplished, and CSI believes this will be a great survey that can possibly be repeated in others areas across the U.S.” Since the meeting, Richards has been contacted by one of the Dallas shops that attended, and he and a few other ABAT members are planning a trip to ColAttendees enjoyed refreshments courtesy of Hi Way leyville to discuss the possiAuto Parts bility of that shop becoming dicating ways that the two associa- a Charter Member of ABAT. ABAT plans to hold their next tions can collaborate to effect positive, meaningful changes in the collision meeting during the second half of September. For more information about repair industry. ABAT or their upcoming plans, email ABAT members then broached Burl@BurlsCollision.com. the topic of possibly having CSI conduct an independent survey regarding www.autobodynews.com certain short pay items and necessary Parts trade association (PRP), and Barker discussed his previous role as the President of PRP. He also drew parallels between PRP and ABAT, in-

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I-CAR® Announces Launch Of New Website

HOFFMAN ESTATES, IL – August 7, 2014 – I-CAR, the Inter-Industry Conference on Auto Collision Repair, announced today that it is launching a completely redesigned website at www.i-car.com. The new site has been carefully planned and meticulously designed to provide the industry with a comprehensive, easy-to-use online resource for collision repair education, knowledge and solutions. The new I-CAR website contains an extensive amount of newly created and highly relevant content, covering everything from specific details on all programs and services that I-CAR offers, to more strategic insights that will help users gain even more value from I-CAR solutions. For example, greatly expanded accessibility to the technical information required to support repair excellence is now available through the Repairability Technical Support Portal. In addition to the development of considerable new content, user-

friendly and actionable navigation is another key component of the website redesign. Content can be found in multiple ways: ♦ By I-CAR program: including the I-CAR Professional Development Program™, Welding Training & Certification™, Industry Training Alliance and more ♦ By industry segment: Collision Repair, Insurance, OEM, Suppliers and Career & Technical Schools ♦ By individual role: such as Repair Technicians, Training Managers, Insurance Claims Managers and Executives Expandable menus and detailed navigation options allow users to see important content at a glance, while advanced search capabilities put critical information at the user’s fingertips. Clearly labeled buttons, links and a new I-CAR Class Search functionality make it easy for users to take action once they find the information they need.

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ABRA Continues Nationwide Expansion

ABRA Auto Body & Glass, a leading national damaged vehicle repair company, continued with its nationwide expansion today by announcing the purchase of White Auto Body repair centers in Florissant and O’Fallon, Missouri and Fayetteville Collision in Fayetteville, North Carolina. Terms of the deals were not disclosed. “Acquiring these three centers today reinforces our growth strategy and underscores our commitment to servicing customers across the country” ABRA is one of the collision industry’s largest multi shop repair operators in the country. The company uses an operational excellence philosophy that significantly improves its operating metrics which distinguishes it from competitors. Today’s acquisitions increase ABRA’s repair center portfolio to 237 in 19 states. “Acquiring these three centers today reinforces our growth strategy and underscores our commitment to servicing customers across the country,” said Duane Rouse, ABRA’s president and chief executive officer. “We are delighted to continue expanding in markets and showing customers our innovative service model.”

Scott Krohn, ABRA’s Executive Vice President of Operations said, “ABRA’s reputation is built on proven processes and our commitment to excellence. We continue to grow because we have the expertise and experience needed to be successful in the collision repair industry.” Building on its increasing success, ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industry-leading operating system. Interested parties in major markets should contact Scott Gerling, Vice President of Corporate Development (sgerling@abraauto.com or 763.585.6210). For franchise opportunities in small and midsize markets contact Mark Wahlin, Vice President of Franchise Development/ Relations (mwahlin@abraauto.com or 763585-6315). ABRA is committed to conducting business based on responsible business practices including implementation of environmentally sustainable initiatives, health and safety, and a commitment to the communities in which it serves.

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Lean Operations

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

Better Blueprinting, Part 1: Why is Blueprinting Important? with David Luehr

In the collision repair business, the only time the shop makes money is when the technician is actually working on the car. So for a shop to optimize profitability, systems must be put in-place to ensure that wasteful delays are eliminated. Some of the more common delays are. ■ Techs wandering around looking for parts, fasteners, or information ■ Missing, damaged, or incorrect replacement parts ■ Waiting for approval and parts on supplemental (missed) damage A great way to reduce or eliminate such delays is through the process of damage analysis or “blueprinting.” Blueprinting is one of the most important processes a shop can implement to reduce or eliminate delays and can have a dramatic effect on important KPIs such as cycle time, customer satisfaction and profitability.

The Goal of this Article Blueprinting is not a new concept by any means, but many shops still fail at either successfully implementing it, or if they have implemented it they are not getting the results they expected. My goal is to guide the reader through some reasons why shops fail at Blueprinting and then in part two give some proven simple techniques that are being used by shops that do have successful Blueprinting programs.

Why Shops Commonly Fail at Blueprinting We Make it Too Difficult for the Real World When lean concepts including Blueprinting were first introduced to our industry, the initiatives were often led by well-intended paint companies that had over-complicated curriculum. Lean was the “new kid on the block” and came with all the bells and whistles; in many cases, too many bells and whistles. When concepts such as these are taught to us by people from the manufacturing industry from a 30,000 foot level, many of the basics were over-looked or misconstrued. So as the years progressed, most people stopped doing Blueprinting, a lucky few figured out better and simpler ways of performing it. Those that were successful

found ways of using lean thinking and applying it to Blueprinting in a “real world” manner, a manner that would work on the shop floor and not from a philosophical 30,000 foot high vantage.

Lack of Visual Mistake Proofing Systems As someone that has been teaching Blueprinting for many years, I hear excuses all the time why damage was missed during Blueprinting. The one that kills me is “We are only human.” Tell that to a surgeon or a Blue Angels pilot some time. The point is, that yes, we are human, so in order to be successful at Blueprinting, we have to put systems in place that make mistakes VISIBLE so that we can catch them before it’s too late. This is an old trick introduced by Japanese manufacturers. This mistake proofing is a technique called “Poka Yoke.” So if you want to have a successful Blueprinting program, mistake-proof it by using some of the “Poka Yoke” techniques in this article.

No Written Repeatable Process The lucky few that were able to achieve Blueprinting success at some level often doomed the process from future success by not carefully documenting the Blueprint system they worked so hard on into a Standard Operating Procedure. Because of this lack of standardization, the program was susceptible to failures caused by new employees, lapses of memory, or many other reasons. If a process has simple written instruction, and people are well trained, the likelihood that the vital steps needed to produce a consistently accurate Blueprint is increased immensely.

Technicians are hired to Repair Vehicles, Not Write Supplements To this day, most shops continue to ask their body technicians to perform a teardown and then write a supplement. This IS NOT Blueprinting! Please keep in mind that the only time a shop is making any money is when the technician’s hands are touching the car. So if we ask them to perform supplement writing for us, not only are we inviting problems with esti-

34 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

mate accuracy, we are also not making money! Technicians are a very integral part in the Blueprinting process, and can offer a lot of insight into good damage analysis, but their involvement should be limited to collaboration during the disassembly plan, and damage analysis, then disassembling the vehicle and placing the damaged or R&I parts in their designated areas.

A Common Misconception Having a dedicated Blueprint Analyst or Department always causes bottleneck delays The reason that many say that they don’t like having a dedicated Blueprint Department or Analyst is because it often causes a bottleneck and delays. All the repair jobs have to go through one resource, so by definition the Blueprint guy is a bottleneck, but here’s what some people don’t understand. Every system is going to have a bottleneck that dictates the shops throughput

ability and that is okay, the problem is that shops continue to bring all their work in on Monday. If smarter scheduling was practiced, the bottleneck will manage to produce the needed amount of work. This misunderstanding of production management is another main reason people abandon their Blueprinting attempts. In the real world, even when using good scheduling habits, bottlenecks do become a problem at times. When Blueprinting starts getting behind schedule, it is extremely important to stick to the program with discipline and not abandon it. Instead additional resources or extended hours may occasionally need to be dedicated. In next month’s continuation of Better Blueprinting by David Luehr, we will discuss how to setup a proper Blueprinting area regardless of the size of your shop, and then we will discuss some great techniques that will allow you to get consistent and positive results with your Blueprinting efforts.

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Wheels to Prosper’s Annual Giveaway by Chasidy Rae Sisk

On Saturday, July 26, Wheels to Prosper shops across the country gave away 15 vehicles to deserving people in their communities. Dino DiGiulio, owner of Body Best Collision Center in Sonoma, CA, and founder of Wheels to Prosper, notes that it is “mind-blowing to be able to change people’s lives in this type of way” and wonders “how big it could be if we got all the shops in the country involved?” This year, Body Best awarded their car giveaway vehicle, a 2004 Saturn L300, to Irene Morgan. DiGiulio’s son, Chance, helped Body Best’s tech-

Chance DiGiulio poses with winner Irene Morgan in front of the car he helped repair for his senior project

nician with the body repairs as his senior project, which his father proudly reports received a grade of “A”. In 2010, DiGiulio took a public relations class at Management Success, and he admits “I didn’t realize how important it was until I took the class.” When the topic of car giveaways came up, DiGiulio thought it seemed like a practical way of giving back to the community. His friend, Jody Gatchell who owns A & J Collision Repair in Conway, AR was involved with a similar concept through Recycled Rides, and when DiGiulio saw an emotional video about a giveaway recipient, he knew he had to do it. After acquiring information about the program from Gatchell, including how to organize a car giveaway, DiGiulio began planning Body Best’s first Car Giveaway with the initial intention of donating two to three vehicles yearly. Rather than choosing a person in need, DiGiulio put together a committee to choose a winner, enlisting the aid of a diverse panel of public officials and community leads to select a deserving individual. Early on,

DiGiulio decided to choose winners who deserved a vehicle, rather than simply donating to someone in need, because “need is always there,” he explains. “We wanted to help people who help others. Everyone has to do their part, and this is my way of volunteering. By helping this person, he or she can help so many others.” Gatchell suggested Wheels to Prosper as the name for DiGiulio’s giveaway, and Management Success advised DiGiulio to secure the name and website, helping him build the site. The idea behind Wheels to Prosper was to establish a program to help shops begin the process of sponsoring car giveaways, and when he pitched the idea for a national giveaway to 30 shops in hopes of getting more interest in the program, 11 shops signed up that same day. “We laid out some parameters and established a process, including marketing – there’s a lot of marketing you can do for free because people want to help,” DiGiulio states. In the four years since its inception, Wheels to Prosper has increased to include 34 shops donating around 25 cars annually, but the program is growing consistently; DiGiulio hopes, by next year, 100 shops will participate in Wheels to Prosper’s annual giveaway because “Jody and I cannot do as much alone as we can when we involved the entire industry. Wheels to Prosper is all about telling shops how easy it really is.” Though Wheels to Prosper is expanding to include non-Management Success shops, shops interested in participating in the program need to acquire approval from DiGiulio and the program’s administrator, Jim Anderson, because they want to elicit involvement from shops committed to giving away at least one car each year. Anderson, owner of Anderson Automotive in Marion, IA, did a giveaway called “Wheels of Change” several years before DiGiulio began his program, but Anderson joined Wheels to Prosper’s board as their administrator because he wanted to be part of something bigger. Participating shops pay a one-time fee for inclusion on Wheels to Prosper’s website, but this provides a place to promote their business as it generates traffic back to the shop’s website; DiGiulio estimates receiving around 100 visits to his shop’s website annually through the link from Wheels to

38 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Prosper. He states, “it demonstrates that you actually care about the community. It’s a little about business but not really – it’s mainly about how many people are impacted by the donation.” Wheels to Prosper does not hold any type of contest to determine their winners. Instead, they solicit stories from community members about a person who deserves to win the car

Dino DiGiulio hands over the keys for Body Best’s 2014 Car Giveaway through Wheels to Prosper

giveaway, and a panel of judges reviews the stories to select a winner. “The difference between Wheels to Prosper and other giveaways is that it’s about who is deserving,” DiGiulio explains. “There’s always a need, but we want to help someone who is helping the community, so our winners are

always majorly involved with volunteering efforts.” In May 2011, DiGiulio held his first giveaway, awarding a car to a five-person family run by a local woman who is very active in her community. “She always thinks of everyone before herself. Even though she didn’t have the means to buy a car, she was still actively volunteering in the community, so we rewarded her efforts by giving her a car which allows her to help others even more.” Gatchell held his giveaway in July 2011, and DiGiulio held a second giveaway that same year. Afterwards, they decided to choose a consistent date for the annual giveaway, electing the last Saturday in July at 12PM CST. Ultimately, the goal is for all Wheels to Prosper shops to hold their annual giveaway on the same day each year. While the participating shops acquire the giveaway vehicles through various means, Wheels to Prosper requires the donated vehicle to be in good shape with less than 100,000 miles on it in hopes of servicing the winner for at least five years without See Annual Giveaway, Page 41

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National Associations with Ed Attanasio

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

How Can I Squeeze More Out of My SEMA Experience?

Trade shows are huge right now and that’s why SEMA is more popular than ever. If you’ve ever attended one of these events, you know they’re frenetic, fun, packed full of things to do and your time is usually limited. So, that’s why we’re offering some invaluable tips about how to take full advantage of any trade show, but specifically the upcoming SEMA show, in Las Vegas November 3-7. When the economy took a hit in 2008, many body shops started dialing down their participation in industry conferences, but now that the economy seems to be a little healthier, this is a smart time to re-engage. The main question for any business owner considering SEMA is this –will the money and staff that I will invest into a show like SEMA really pay off in the long run? After discussing the “SEMA Experience” with collision professionals from all over the country for at least

the past decade and attending many as an automotive journalist, I’ve heard a wide range of responses about the

ers getting wiped out at the tables and other foolishness were probably halftrue when originally told and undoubtedly pure fiction by now. On the serious side, I’ve heard things like “Too crowded and we spent too much time trying to find the right booths;” “The classes were either packed or not suited for us;” or “Now we’re back to work and we need to take a vacation just to recuperate from SEMA!” But in the end all of them said the same thing about the show— Peter Macillvray, VP of Communications and Events for “It was useful and we did SEMA and his staff work hard to make the show a winhave a good time!” win for both attendees and exhibitors Since SEMA is an indusshow, both positive and negative. Be- try-only show, you’re obviously not cause the setting is Las Vegas, many going to get any customers from of these anecdotes are not suitable for SEMA and that’s not the goal. The this article, but you can imagine. Tales main reasons you attend conferences of quickie marriages, body shop own- such as SEMA are to connect with

40 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

current and prospective vendors and to learn about new technologies or products that will influence your future. The first step is to make a list containing your goals with realistic objectives, while determining the costs involved. For example, you may want to visit a dozen equipment companies, paint companies and other suppliers. If you’re going to be at the show for three days, you will obviously need to visit at least four every day, pacing yourself and hydrating continually. To decide if SEMA is right for you and your business, ask yourself these questions: ■ Is SEMA going to offer you the most cost-effective way of sourcing products, services and information in the collision industry? ■ Is SEMA the best forum for you to keep up- to-date on the collision industry’s newest technologies, state-

of-the-art products, innovations and new developments in your market? Are you going to encounter a highly targeted audience of your fellow industry professionals? ■ If your answer is yes to more than one of these questions, SEMA is probably a slam dunk for you, your manager and even other members of your crew as well. Peter Macillvray, VP of Communications and Events for SEMA, offered some helpful tips about how to squeeze the most out of your SEMA experience. “We’re extremely vested in making sure that all of our attendees and exhibitors will leave here with a year’s worth of new business ideas. We’re committed to doing everything we can to bring value to your time here at SEMA. We want you to make more money by using what you’ve learned at SEMA, so that’s we’ve created a whole range of things to make it happen.” Everyone’s goal at any trade show is different, so the first thing you need to do is define what success means for you at SEMA. Before you jump in, make a list and plan your show. “We call it ‘shaping’ the show and it’s so valuable,” Macillvray said.

“Too many people jump on a plane and don’t register until they get here and then start wandering through the aisles without any real plan. Time is so precious and by aimlessly walking around you’re losing opportunities. Being prepared at any trade show or industry event is imperative, so map it out and don’t leave anything to chance.” To get more out of your SEMA, take a few classes and learn things you can take back to your business. “We have top companies that have partnered with us on these classes,” Macillvray said. “We’ve got some of the world’s top experts on things like marketing, technology and management. Everything taught at SEMA is created with two words in mind— useful and relevant.” If you’re looking for cutting-edge products and equipment that can help your shop and make your life a little easier, SEMA is the place to be. “This show is always about unveiling new technology and we’re proud to lead the way,” Macillvray said. “Our New Product Showcase is always a huge attraction and a great place to get an overview of what’s new. Many products that have won awards at past

SEMA shows are now used by body shops all over the world and the first time anyone saw them was here at SEMA.” SEMA has two ways to help you as you navigate through the show— by calling on their popular Pocket Guide, available almost anywhere at SEMA, as well as by using their 2014 SEMA app, available for free at any Apple Store or online, sponsored by Showcase. “We have been fine-tuning our app over the years by listening to our customers and we believe it’s stateof-the-art,” Macillvray said. “It contains some planning tools that can really help you to get more out of the show while also allowing you to stay in the loop about the show yearround. Lots of people walk around with the app open on their iPads and iPhones and refer to it during the entire show. We want to offer every tool we have available to us to help you, and that’s why we’re heavily involved in social media. You can like us on Facebook, connect with us on LinkedIn, Twitter and Instagram. We have the largest social media following of any automotive show in the world.”

Continued from Page 38

Annual Giveaway

any troubles. DiGiulio’s first giveaway was a salvage loaner with low mileage, and for his second giveaway, he purchased a vandalized car that just needed a new paint job. No matter how the vehicles are acquired, the Wheels to Prosper shop makes any collision and mechanical repairs necessary before donating the vehicle to their deserving new owner. Thus far, nearly 50 cars have been given away through Wheels to Prosper with a few more giveaways scheduled to take place in October. A film company is currently in negotiations to develop a 12-part miniseries on a shop sponsoring a giveaway, and DiGiulio is optimistic about the publicity that such a program would provide for Wheels to Prosper. www.wheelstoprosper.org

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www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 41

National Associations with Chasidy Rae Sisk

IADA Holds 46th Annual Conference, Hopes to Attract New Members Although the Independent Automotive Damage Appraisers Association (IADA) was forced to move the location of their 46th Annual Vehicle Repair Conference to the Lord Baltimore Hotel, located at 20 West Street, Baltimore MD 21201 at the last moment, the conference was successfully held on June 18-20, 2014 as “an educational tool for our members and the industry,” John Williams, Executive Vice President of IABA explains. “For guest speakers, we have experts in various fields relating to current methods of repair as well as what to expect from manufacturers in the future. Our expectations for this event are to promote our association and members as professionals committed to exceeding industry expectations as well as providing our members an educational and social venue to network with clients.” According to Williams, “attendees were very pleased with both the location and the agenda. Our event always focuses on education and training as well as being a social event for members and guests, and it is important because it provides members with an opportunity to train and remain a viable force in the industry. This year, our conference exceeded expectations. We try to build on what we learned in the past to make our next event even more dynamic.” Registration for the conference began on Wednesday, June 18, at 1PM and continued until 6PM when IADA held their Welcome Reception followed by exhibitor showcases which concluded at 9PM. After breakfast on Thursday morning, IADA President Leo Maki’s Welcoming Address served as the opening to the event. IADA planned an exciting agenda filled with informative seminars led by nine industry leaders. Around 8:30AM, the educational seminars began with Wayne R. Schaumburg’s “An Illustrated History of Baltimore,” followed by “Best Claims Practices” which was presented by Harvey Lightstone, Vice President of the Directory of Claims and Risk for Management Claims Professionals Liability Insurance Company. Before lunch, Jim Aulby, Vice

President of Claims Protective for Sagamore Insurance, discussed “Heavy Equipment Estimating.” The seminars resumed at 12:45PM with the Highway Loss Data Institute’s Senior Vice President Kim L. Hazelbaker’s “New Technology of Electronics in Vehicles.” Thursday’s lectures concluded at 4PM with “Investigating Fuel System Contamination” as presented by Jeff Lange, President of Lange Technical Services LTD. Attendees then enjoyed a twohour break which gave them a chance to visit exhibitors before attending the President’s Reception and dinner banquet. On Friday morning, Dan Oscarson, Vice President of Global Marketing Insurance Auto Auctions, explored “Marketing Salvage in a Global Economy.” He was followed by CIECA Executive Director Fred Iantorno’s “Getting It Done for the Industry.” The final presentation, “Aftermarket Truck Parts,” was led by Donald B. Cameron, President and Founder of Dawson Truck Parts. After their closing remarks, IADA’s conference culminated with their membership meeting. “Our 46th conference went well, even after facing the challenge of relocating to the Lord Baltimore Hotel at the last moment due to unexpected issues with the hotel we had contracted with. Our conference has always focused on education and training; this year was no exception!” Williams recalls, “our conference started with an excellent presentation by a local historian speaking about the history of Baltimore, and attendees were amazed to learn how Baltimore’s history helped shape many industrial and cultural advances we enjoy to this day. Attendees were given a glimpse of future vehicle technology as well as a look at the past to learn how far vehicle technology has progress and what to expect in the future.” In regards to the valuable information provided at the conference, Williams also notes that “a presentation on Global Salvage was of great interest to learn how salvage vehicles are being purchased in the US, then shipped in cargo containers with avail-

42 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

able parts to repair included with each vehicle. Vehicles that would not be put back on the road are repaired in many third world countries due to cheap labor and a shortage of vehicles. Vehicles we take for granted are a luxury in many countries since few have options such as air or other power options.” IADA was first founded in 1947 as the Independent Appraisal Plan (IAP) with a mission “to offer an unbiased automotive specialist appraiser to assess vehicle damage and establish a fair cost of repair,” Williams recalls. That same year, IAP was approved by the Association of Casualty and Surety Companies and the National Association of Mutual Companies. In 1964, the IAP reorganized and was reborn as the IADA, a national not-for-profit trade association. Currently, IADA has 98 members in 43 states who employ more than 600 appraisers in over 400 service lo-

cations. Over the past 15 years, membership in IADA has increased around 15%. Williams details their membership process: “in order to apply for membership, applicants are required to have five years’ experience in the industry and owned and operated an appraisal firm for the past two years. We conduct a background investigation on all applicants, followed by a site inspection requiring the applicant to prepare a professional damage appraisal. Our Board of Directors then vote on the applicant.” Though obtaining membership to IADA seems somewhat involved, the cost-savings benefits offered to members makes it well worth the effort. For starters, E&O/GL insurance is provided under a blanket policy and is included in membership dues with no additional charge. Members receive discounts on estimating software from all three providers plus See Page 44

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discounts on CarFax, NADA Online and Old Cars Price Guide reports. IADA members are also listed on the association’s website as well as in their annual service directory, around 7000 copies of which are distributed throughout the industry. In addition to the national marketing supplied, members have the opportunity to attend IADA’s national conference which provides them with useful educational seminars as well as the chance to network with other IADA members. Still, IADA strives to continually add new member benefits in their efforts to attract new members. They also continue to promote educational and training seminars at regional and national events. The association works toward securing new business for their members by “upholding the integrity of the association and being consistent with our honesty policy to enhance our position with the public, insurance industry and automotive repair businesses,” Williams explains. “Our current goal is to recruit new members who have an interest in joining a professional organization dedicated to serving the industry with truly ‘Trained Professionals.’ Our members take pride in delivering pro-

fessional, unbiased damage appraisals. Our goal is to treat the consumer the way we would expect to be treated if we had a claim.” Regarding challenges currently facing the industry, Williams notes, “DRP programs have impacted our volume of business to a great degree. While DRPs may be a good concept for smaller losses, I feel some carriers’ attempts to completely control the repair process, no matter how large or small the loss, is a mistake. Having owned and operated an appraisal firm for 24 years, I enjoyed a great working relationship with repair facilities. Preparing an accurate appraisal and securing an agreed price with a reputable shop is quickly becoming a lost art. The industry is losing qualified appraisers at a rapid pace. Many of our members had second, third and fourth generation family taking over their businesses, but we are no longer seeing as much of that.” IADA Association PO Box 12291 Columbus, GA 31917 www.iada.org 800-369-4232

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Continued from Page 24

CAA July Meeting

profitability. His lists included parts ordering, body labor, paint labor, and rental car days. Obviously a decrease in labor hours could lengthen cycle time and reduce customer satisfaction. Adding training to technicians could increase output and perhaps profitability. Reducing rental car time would show a decrease in cycle time but again could result in a drop in quality. Better parts ordering could also decrease cycle time but Purifoy suggested that a different focus could result in much greater profitability. Purifoy’s tentative conclusion was that an owner’s vision for the business may be the most important indicator of all with a focus on purpose, behavior, and culture. He suggested that the owner’s vision establishes the culture of the business and therefore the attitude and behavior of employees. When this improves, production improves and profitability along with it. He also suggested that blind spots could be limiting his or her vision. An owner or manager might see most elements

in the environment that exists, but be missing some major aspects that exist but are not noticed. In depth looking with humility could yield a better understanding of the shop’s existing culture. And then there is the greater industry existence that is not immediately in view, implying a need to get out and see what other shops and industry leaders are doing. And finally there are the things that don’t exist yet. These call for a greater need to search, to listen and then to create something new within the culture that may yield much more profitability than KPIs and numbers could ever produce. CAA Foothill/Glendale President Daniel Panduro noted that future meetings the CAA board is putting together might include the impact of the Ford F150 and the growing presence of aluminum. Another focus may be to understand the rules and regulations that govern our industry. And we might take on some potential solutions to the topic that keeps many of us up at night —where do we find quality technicians? Daniel invites all members and repairers to come and be a part of a group where the focus is to re-energize the voice of the collision repairer.

Western Associations with Ed Attanasio

East Bay CAA Chapter Plays 18 Holes for Charity

The legendary golfer Arnold Palmer once said “I have a tip that can take five strokes off anyone’s game: It’s called an eraser.” And no one is implying that the golfers at the East Bay California Autobody Association’s (CAA-EBC) 28th annual golf tournament at Diablo Creek in Concord, CA on July 18, cheated on their scores, but if some hedged a little on their

handicaps and used too many mulligans to improve their performances— well, so be it. 60 golfers played 18 holes on a sunny day in the East Bay, while raising money for local automotive tech schools and networking with body shop personnel, vendors, friends and ringers. Using a scramble format, the day featured an eclectic mix of duf-

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

fers, former stars, emerging standouts and a bunch of people yelling “Fore!”

Second place winners were Renee Camp (left) with Ryan Nobriga from George V. Arth & Sons in Oakland, CA. Not pictured: Brian Anderson

From left, Tim Cha from Hanlees Toyota, his wife Mia Cha, his daughter Tiffany Cha and their cousin Young Lee captured first place at the 2014 East Bay California Autobody Association’s 28th annual golf tournament at Diablo Creek in Concord, CA.

CAA-EBC President Tiffany Silva was pleased with the turnout and thankful for all of the tournament’s sponsoring organizations. “Our tournament is about shops, vendors and friends coming out to enjoy a day of golf that raises funds to benefit Contra Costa College, College of Alameda, Eden Area ROP, Mission Valley ROP, and Tri-Valley ROP,” Silva said. “We had 60 players participate in our 28th

annual tournament that included lunch sponsored by LKQ/Keystone and a fantastic BBQ dinner sponsored by Dublin Chevrolet Cadillac Buick GMC and Kia. Hertz and PPG were also major sponsors for our event. I want to thank all our sponsors and acknowledge their continued support for our organization and helping our chapter raise much-needed funds for our trade schools. We had a lot of body shops here, which is always great!”

Hertz sponsored the tournament’s hole-in-one car, but once again it went unclaimed. Daniel Zenzano (left) and Yazminda Tennapel from Hertz enjoyed the summer sun

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 45

The Legal View

Erica Eversman is an attorney, frequent speaker and author on automotive legal topics. She has been quoted in such publications as The Wall Street Journal Online, USA Today, Kiplingers Personal Finance, Cars.com, Yahoo! News and other trade magazines.

Repair Documentation Series, Part 2: Assignment of Proceeds and Writ of Replevin with Erica Eversman

by Chasidy Rae Sisk

Repair documentation plays an important role in your collision repair business, but many shop owners are not very familiar with what they need to protect their interests, so I’ve turned to an industry-leading attorney to provide crucial information on what you need to know about documentation in the collision repair industry. Last month, Erica Eversman, Chief Counsel for Vehicle Information Services, Inc. and founder of the Automotive Education and Policy Institute, a nonprofit organization geared toward educating consumers, explained how collision repair facilities can use the Authorization to Repair and Repair Contract to receive proper compensation from insurers in legal battles. While those two documents are extremely important, they may not be the only documents you need to successfully pursue a shortpay case in a courtroom. Here, Eversman explains the relevance of an Assignment of Proceeds and Writ of Replevin in these situations. The purpose of the Assignment of Proceeds is to create a bridge between the insurance company and the collision repair shop, and this is especially important when you have a consumer who is unwilling or unable to pursue proper compensation via a shortpay lawsuit on the shop’s behalf. Though the insurance company owes their customer the duty of indemnity and the customer thus expects their insurer to pay the shop that repairs their vehicle, many consumers simply do not know or care enough to pursue litigation in instances of shortpays. By asking your customers to sign an Assignment of Proceeds, your shop creates a necessary bridge to the insurance company, giving you the right to step into the consumer’s shoes (for purposes of collecting the full repair costs), force the issue and get paid. The “devil is in the details”, so your first step is going to be hiring an attorney with experience in the collision repair industry who can assist you with properly wording the document. Eversman cautions, “you don’t

have the right to sue on the consumer’s behalf for everything, such as diminished value; because you’re only being assigned the rights to proceeds, you can only sue the insurance company to collect proceeds for the repair. You need to understand what this industry is about, clarify exactly what’s going on, and specify which rights are being assigned to you.” Though a Power of Attorney (POA) would also serve this purpose, customers are less likely to agree to sign this type of document. The problem with the POA is that, while it gives a repairer more power, it is also more complicated, leaving the repair facility with the burden of making all decisions for the customers, so Eversman discourages the use of the POA. While every insurer has an anti-assignment clause written into their policies, most states permit the use of post-loss agreements, making the Assignment of Proceeds a viable option. It also makes sense for the shop to assume responsibility for prosecuting the insurance company, if necessary, since it requires less action on the part of the consumer. Once you get to the point of pursuing litigation in order to receive proper compensation, you must remember that the burden of proof falls on you, the plaintiff. In court, you should try to avoid allowing the insurance company to present their estimate as evidence because part of your battle entails proving that their estimate is meaningless – as the collision repair professional, YOU are the one with the right to determine how the vehicle should be repaired, while the insurer is merely obligated to pay for the repair, not to control the process (unless the insurance company has elected to repair). In order for an Assignment of Proceeds to be legitimate, it is imperative that the consumer understand what they are signing, so it is also a good idea to ask your customers to sign a separate document confirming their comprehension of the Assignment of Proceeds. When constructing your Assignment of Proceeds, begin by defining what it is and how it will be used. The purpose of the document

46 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

is to allow “a transfer of property or other rights from one person (the assignor) to another person (the assignee) which confers a complete and present right in the subject matter to the assignor… Essentially, this means that the assignee stands in the shoes of the assignor,” Eversman explains. Because the assignment serves as a contract between the assignor and the assignee, it is thus subject to contract law and interpretation. An important item that must be included in Assignments of Proceeds is a definition of the assignable rights which will identify causes of action issuing from a wrong that causes injury to property or from tort by which property is diminished or damaged; both of these are generally assignable. It is also vital to inform your customers that they can assign their right to recover damages to their property without conveying the title to that property.

For an Assignment of Proceeds to be valid, it must contain clear evidence of the intent to transfer rights in addition to a description of the subject matter in question. The assignment must be clear and unequivocal and be noticed to the obligor. While there are no formal requirements regarding the verbiage used in this document, the language must clearly indicate the owner’s intention to transfer the claim. Valuable consideration is essential to support the assignment, and while the word “consideration” doesn’t necessarily have to appear on the document, Eversman recommends it as evidence of the exchange required to make an Assignment of Proceeds valid. Essentially, this allows you to take possession of the vehicle without receiving payment if the document is signed, but you are also agreeing not to sue the consumer for money owed as part of the assignment. See Documentation Series, Page 65

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Master Painter JoAnn Bortles Gets Dose of Reality on Motor City Masters by Ed Attanasio

Renowned automotive and motorcycle painter JoAnn Bortles was eliminated at the conclusion of episode #3 on Motor City Masters (Tuesday nights, 10 p.m. PST on truTV) a re-

ality series that pits 10 mega-talented designers from different parts of the automotive industry against each other week after week in the ambitious task of creating concept cars based around a different theme. One by one, designers who fumble their role during each weekly build will be sent home by the judges until one lone Motor City Master will remain. The winner gets $100,000, a new 2014 Camaro Z28 and becomes a Chevy ambassador for the carmaker. Bortles is a 33-year veteran painter, the owner of Crazy Horse Custom Paint in Waxhaw NC and an

author of seven books about automotive painting and airbrushing techniques. Known as a leader in custom hot rod and motorcycle paint, Crazy Horse Painting has been producing show winning and road worthy paint jobs for 33 years. Known as the “Queen of Flame”, Bortles has won numerous awards for her work including some of the top custom painting awards in the country. In 1998, 2005, and 2012 her work won Best Motorcycle Paint of the Year and in 2006 she won PPG’s Top Five Most Outstanding Paint Award. Bortle’s paint work has been featured in Street Rodder, Hot Rod Milestones, Hot Rod, and other automotive publications. Her paintwork has appeared in nearly every bike magazine and on the covers of many magazines, including American Iron, Easyriders, VTwin, Biker, In the Wind, Auto Graphics. Her custom chopper was featured on the cover of Easyriders in Sept 2004, making her the first woman to have her own personal bike appearing on the cover. ABN interviewed Bortles the morning after the world discovered

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that JoAnn had been eliminated during episode #3 of Motor City Masters. She sounded a little down, but appreciative of the fact that she was asked to be on the reality series. “Yes, it was frustrating, but a lot of good things have come from it,”

JoAnn Bortles is an award-winning custom painter, airbrush artist, car builder, journalist, and book author with over 30 years of experience in the automotive industry

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Bortles said. “My approach to my work is by always focusing on the future, so I’m not going to dwell on what happened on Motor City Masters. I’ve been getting a steady stream of new followers on Facebook and people have been really great. One of the main themes of the show stressed my leadership skills and my positive approach to everything I do. I thought I made some solid decisions about the design elements, especially on the truck we designed in episode #3. As soon as we were doing trucks, I wanted to do suicide doors; I wanted to give our team’s truck a step side look, so we did the suicide doors immediately and everyone took my concepts and ran with them. After that, it was all about keeping my team going to make sure they had what they needed so that we could build a nice vehicle. But in the end, you’re depending on three other people you don’t know and you can’t do it all by yourself.” What was her overall impression of Motor City Masters in general? “I love reality television personally and I

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selves to the limit, both mentally and physically. We had very little sleep during each build, so we were always a little on edge and cranky. I pushed the people in my team as much as I could, but one guy walked out of the paint booth after making one little suggestion, so it was the battle of egos pretty much. If I had fought more, I think I would have had a mutiny. When I paint a car or a motorcycle at my shop, it’s pretty much me and my people, so I’m not used to the type of drama I encountered on Motor City Masters.” It was a short run, but a great one for Bortles on the series, she explained. “This was the opportunity of a lifetime, so when they asked me to be on the show, I jumped on it. My attitude is always go for it. I don’t see how it can’t help my business, because now I’ve been seen by a whole new audience. It’s a resume builder and that’s imBortles made her case about the truck her team designed portant, because all of it on episode #3, without success, as she was voted off at works together to support and the conclusion of this episode of Motor City Masters strengthen the brand—my we had build techs to help us. It was brand. Literally thousands of people exhausting and we were pushing ourapplied to be on Motor City Masters always watch Project Runway and Best Ink,” she said. “This show is different in that you break into teams. The team dynamic is a tough one, because you have a lot of very different people from different backgrounds and you have to put them together and hope they’ll work well together in a stressful situation. So, it was 100 times tougher than I thought I would. It got pretty intense out there in the design studio and some people walked out and there was a lot of arguing. On top of it, we had to do much of the physical work ourselves, even though

great thing in my career. You always have to keep your feet on the ground so that you can be prepared for what’s coming around the corner.” You can meet JoAnn Bortles at SEMA this year at Hypertherm’s booth and also some of her work will be on display at the PPG booth. This is her 10th anniversary Judge Jenn Jennings (left) discussed her team with Bortles of attending SEMA shows, during episode #3 of Motor City Masters she said. “SEMA is all about the networking and I have and they chose me, so it means a lot.” made some amazing contacts there Bortles was energized by the ex- over the years, so I am anxious to perience on the reality series and is make new friendships while re-connow looking for more exciting proj- necting with old friends at SEMA this ects. “I look back at all the work I’ve year.” done and I think—wow I did this?” she said. “It’s a great feeling. I feel the same way about Motor City Masters. Camilo Pardo, a car designer on the show, said something and I totally agree with it—‘Shut up and let your Be Seen by Our Readers! work speak for itself’ and that’s what CALL Advertising Sales at: I do. I let my body of work speak for itself and if people can see that I am able to share their vision, then that’s advertising@ @autobodynews.com com the right customer for me. I try to stay humble because once I start thinking www.autobodynews.co www.autobodynews.com om that I’m all that, I might miss the next

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Lean Operations

The Process of Winning with David Luehr

This was my first article for Autobody News but it has not yet appeared in the Western edition. I’m going to write about winning. That sounds simple, you might think, but there’s a problem: Everything you know about winning is wrong. The moment of triumph, the congratulations, and the final score—those are the basic components of winning? Right? Wrong! If this surprises you, you are not alone. Until I learned the true secret to winning, I thought I knew all about the subject. I was totally wrong. I had a lot to learn. Now I’ve discovered the real sources of success, in both business and sports. Have you ever repaired a picky relative’s vehicle? Let’s say Aunt Patty’s new SUV. If you have, you know that no matter how hard you try to make everything perfect, she’s going to find fault with something. Either the color won’t precisely match, or a taillight will fail to work, and with your very particular Aunt Patty, no job is ever done on time. I’ve never liked working for people I’m close to—relatives, neighbors, or friends. No matter how good the work is, they always seem to want something more, often something that’s indefinable. It’s one of those situations where no one wins. So why is it that the jobs we fuss over the most give us the biggest headaches? Why can’t we win when it counts? Maybe we care too much.

Outcome thoughts vs. Process thoughts I know a little about tennis and a lot about body shops. Sometimes what works in one works in the other. One day my tennis coach told me the chief obstacle to improving my game was the fact that I care too much. “Care too much?” I asked. “Are you serious?” “Yes,” he said, “I am. You care too much about winning. When you start to play, you get so emotional that you can’t look at what you’re doing objectively.” It turned out I was having “outcome thoughts.” As I competed against my opponent on the other side of the net, my mind was on my hoped-for victory. I saw my last shot hitting just out of my opponent’s reach, and imagined

him congratulating me at the net with a handshake. My thoughts weren’t focused on what it would take to get there.

Scoreboards Scoreboards aren’t just for fans. They help players too, especially after complicated actions. Once the confusion is over, the scoreboard tells them where things stand. However, if we allow our minds to get too wrapped up in the scoreboard data, we lose sight of the game right in front of us. If we always focus on the results posted on scoreboard, we’re ignoring what we need to do to win. At Nick Saban’s University of Alabama football program, throughout the season the coaching staff and players don’t talk about the National Championship, but they’ve won it three times in the last five years. How? Each Crimson Tide player and coach asks: What do I need to accomplish right now to dominate the competition? They know that you don’t earn the championship on the day of the championship game. You win it through a process of preparation that takes years. When we fail to prepare and execute at the body shop we invite all those hectic Fridays, when everything goes wrong. Why? Because we didn’t properly prepare on Monday and Tuesday. If we had, those Fridays would be easy. In the collision repair business, we hold ourselves accountable, using a system of Key Performance Indicators. These include Profitability, CSI, Cycle Time, Alternative Parts Usage, and many others. A good shop manager understands these metrics. A great manager always executes the tasks required to consistently reach the metrics. This isn’t something you do once in a while. In the collision repair business winning comes from the same basic principles as those found in tennis or football: constant attention to disciplined preparation and following the right process.

Scoreboard-based compensation Companies that rely on results-based compensation systems need to examine these carefully. Results-based com-

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pensation is popular because it seems fair: workers get paid on the basis of the results they produce. However some companies don’t, won’t, or can’t measure results accurately, and sometimes they measure the wrong things, or fail to measure the right ones. This can lead results-based systems that create motivational “silos” that can damage your business globally. For instance, if your company’s “scoreboard” holds people accountable for Alternative Parts Usage, pressure to perform well on that could have a negative impact on Quality, Cycle Time, or CSI. It’s something you must watch out for. What might work better would be a program that rewards consistent quality in employees’ performance as they follow processes designed to ensure that work is done to a high standard. If their work follows a good process, and measures up to the best standards, results will usually take care of themselves.

Three Elements of Winning Big MSO consolidators, like ABRA, Caliber, and Gerber, know that fast, profitable growth comes from consistent, predictable positive results, one job after another. This is the only way to create secure relationships with insurers and customers. These companies also understand the staffing and training requirements for rapid and sustained growth. What winning principles do these industry giants follow? PROCESS, TRAINING and INSPECT WHAT YOU EXPECT. Their winning ways are based on a written process that produces consistent, predictable results. They train their people to follow the process, then they constantly check to make sure this discipline is followed day after day. Process, alone, isn’t enough. It must be accompanied by periodic testing. Shops that don’t implement PROCESS, TRAINING and INSPECT will struggle; most will fail. See Process of Winning, Page 54

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Western Associations with Chasidy Rae Sisk

ASA-AZ Serves a Big Geographic Area with Diverse Interests The sixth largest geographic state in the nation is home to over 6.5 million citizens and over 6.8 million registered vehicles. With a major population and such busy roadways, it is no surprise that there is an overwhelming number of collision and mechanical repair facilities scattered throughout the state, and all those independent businesses need a collective voice. That’s where the Automotive Service Association of Arizona (ASA-AZ) comes in! Incorporated in 1976, ASA-AZ was founded on the concept of establishing collaborative efforts amongst automotive service professionals from all across AZ. As a state affiliate, the association shares the same mission as ASA-National which is “advancing professionalism and excellence in the

automotive repair industry through merging with the Arizona Automotive education, representation and member Trade Organizations, an association comprised of service station dealers, services.” With 169 members in the 113,909 convenience stores and repair facilities. square mile area, ASA-AZ consists of When the Arizona Collision Craftsman’s Association experienced some seven chapters: Prescott, Mohave, Tucson, Phoenix, Verde Valley, Yuma and the Grand Canyon Chapter “which incorporated all businesses that are not in close proximity to any of the other chapters,” explains Luz Rubio, Executive Director of ASA-AZ. “Each chapter provides local chapter meetings and outreach to its members. ASA-AZ provides educational opportunities for members Some chapters meet monthly, and others not as often. These meetings membership fallout in 2004 and found allow our members to exchange ideas, that they were unable to sustain their operations through their volunteer discuss challenges and identify soluforce, they also merged with the fortions, thus elevating the professionalmerly all mechanical ASA-AZ, leading ism of the industry. Rubio assumed the role of ASA- to the creation of the association’s colAZ’s Executive Director in 2002 while lision division. the association was in the process of As a registered lobbyist, Rubio

monitors legislation that may have an impact on the automotive industry. When action is required on a legislative bill that may have a negative effect, members of ASA-AZ receive alerts requiring that they contact their legislators to share their views, and the association works with other small business organizations to strengthen their position. In 2012, ASA-AZ successfully defeated a bill that would have forced body shops to absorb the cost associated with vehicle storage in many situations. Though ASA-AZ is not currently working on any legislation, Rubio plans to continue monitoring introduced legislation in January when the new session begins. She notes “ASA supports legislation that protects the consumer’s rights in the full repair process of their vehicle, both mechanical and collision related.” ASA-AZ monitors national legislation as well, and Rubio shares their stance on sev-

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eral current matters: “Though the Right to Repair no longer seems to be in the forefront for mechanical repairers, we continue to work with NASTF to ensure that information for repairing vehicles is available. [Concerning PartsTrader and other insurer-mandated parts procurement systems], ASA-AZ believes that the insurance companies should stay in the business of insurance and leave all aspects of the repair process to collision repair professionals.” In addition to providing legislative representation, ASA-AZ members receive discounts from various industry vendors, and the association also provides members with opportunities to interact with their peers in both educational and purely social situations. Some of the association’s current goals include providing ongoing activities for their membership to network and encourage all chapters to conduct monthly activities. Rubio says, “what would an association be without any fun? Our annual convention – Sunrise – offers everything: education, resources and lots of fun. Next year’s event is already on the calendar for June 19-21 at the Wild Horse Pass Hotel and Casino. We are

In addition to reviewing and upgrading their website, one of ASAAZ’s current projects entails forming Automotive Roundtables for their various chapters. Rubio states, “these are forums that allow business owners with single operations to discuss the day-to-day challenges and identify solutions.” Unfortunately, recent increases in the number of multi-shop operations in the mechanical industry and consolidators buying out collision repair shops has reduced the number of independent automotive businesses in AZ, creating a challenge for ASAAZ to maintain operations. Another concern Rubio has noticed on both sides of the Luz Rubio with members of ASA-AZ’s Board of Directors industry is “the lack of qualimembership. She says, “we identify fied young technicians. The current topics that our members need and host workforce is getting older, and there out-of-state speakers that will bring are not enough upcoming technicians them the information that they need to in the field to replace those who will improve their business, including top- be retiring. We have not yet addressed ics such as ‘Survival Skills for the this issue, but we have begun to disService Advisor’ for our mechanical cuss it as an association.” shops and ‘Profitability to Preserve As an affiliate of the national asSurvivability’ for our collision mem- sociation, ASA-AZ offers both ASAbers.” National and state only benefits to their looking to bring in a great line-up of speakers; there will be lots of learning, but also time for fun!” At the State Office, Rubio collaborates with ASA-AZ’s Board of Directors to coordinate the technical, collision and management training that the association offers to their

members, including partnering with various vendors, or associate members, to provide the utmost customer service to members. “We encourage our associate members to attend the local chapter meetings and build relationships with the local shop owners, managers and technicians,” Rubio says. “It’s a business of relationships, and the sales will come when the need arises. We have a strong support network of vendors in this industry that offer great products and services, and we want to make sure that they too are educated and understand the industry.” Through training, representation and member benefits, ASA-AZ continually seeks ways to improve their communication and outreach to member shops, but Rubio encourages “non-member shops to join us and learn what ASA is about. We are a network of like-minded independent owners who are looking for ways to provide outstanding customer service to the motoring public.” ASA-AZ PO Box 81517 Phoenix, AZ 85069 602-544-2600 www.asaaz.org

www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 53

Continued from Page 50

Process of Winning

Process If you’ve ever watched the best golfers, you’ve seen them go through their “routines” just before hitting the ball. This routine is settling, and helps the golfer build confidence. Doing it every time also encourages a player’s consistency. Most start behind the ball, lining up the shot. Many golfers take a few practice swings. This is followed by visualization, and finally execution without tension or hesitation. One thing this does is to keep the golfer from allowing emotions to rule. The golfer has a strategy, and a proven process. The golfer who does this every time will avoid choking, and will live up to his or her potential. Almost everything in life is a process. Most of us have a morning routine: getting up, eating breakfast, going out the door. It gets us to work on time. Fixing cars is no different. Every shop has a process, whether they know it or not—but some have very poor processes. Many processes are outmoded, while others were flawed from the start. Many shops have good processes, but don’t consistently follow them. I’ve worked with organizations that had stale old policies created for situations that no longer existed—yet the policies went on and on. Such “sacred cows” must be slaughtered! In lean thinking circles, many of us have been involved in Value Stream Mapping. This is a detailed analysis, and “mapping out,” of a shop’s current processes. It looks at what goes into a process, how it works, and the value of the result. It forces the shop leadership to examine each task and method to see if these provide customers with the value they are willing to pay for. Value Stream Mapping should help the shop’s staff identify those tasks and methods necessary for a good process. Most shops I’ve worked with had fragmented processes, each for a different area. These betray a lack of unity and direction. They often conflict with one another. This creates a disconnect between the administrative processes of the business, and the work processes used on the shop floor. This leads to poor communication, unnecessary delays, poor quality and upset customers. Any good administrative workflow process begins with

the proper flow of dependent events in the system. Quality control must be built into the process, so, at each stage, the recipients get a product that meets all quality standards. A good process should: 1. Produce consistent, predictable results every time. 2. Have simple, clear instructions, written out and accessible to everyone. 3. Flow well from resource to resource, without unnecessary delays. 4. Identify who does what. 5. Be visual—both in the operating manual and on the shop floor. 6. Be comprehensive, well-planned, and free of waste and inefficiency— and no sacred cows! 7. Be based on proven methods or best practices. 8. Be created with the customer’s, and the employee’s happiness in mind. 9. Be created with the input and buy-in of the entire organization.

Training In business and in sports, you may know the process, without knowing how to use it. Great athletes spend endless hours practicing, and perfecting their craft. These athletes know without the right preparation, they won’t be able to win. But they also know they must execute. If they can’t apply all that preparation to the game itself, then what good is it? This is also true when dealing with collision repair customers. Though you may know how to prepare an estimate, can you sell the job to the customer? Do the people on the floor know how to apply the process to the work? Have they been trained to do this? Remember, just because you give someone has an SOP manual, doesn’t mean he or she will be able to do every job in it. They might need a few lessons! These lessons come in various forms: I-CAR and other outside training services, in-house or on-the-job training, videos, workshops etc. Make sure your people have a deep understanding of how the processes work, and give them all the tools they need to execute successfully.

Inspect What You Expect Testing and auditing are the “secret sauce” that brings it all together. I’ve seen many improvement initiatives fail, even in some organizations that had great people. Despite the dedication and effort that went into them, in most cases these initiatives failed, partially or fully, within a few months. Most

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often they fail because they neglect proper testing and inspection procedures. Testing and auditing isn’t a complicated task. It requires leadership, discipline, and a written test. It only takes an hour or two to type out a test. I prefer about twenty questions, some trueor-false, and some multiple-choice. Of the various auditing methods, I prefer this: 1. Identify the process’s most important elements. 2. Write an auditing form asking: “Is this critical task or process being followed consistently? Yes or No?” Your form may have as few as ten items, or it might have over a hundred, but all should be noted and answered in the course of an audit. I recommend frequent auditing, especially whenever new processes are being implemented. In a more stable system this should still be done at least every quarter. Those who are engaged in the auditing process should see it as an ongoing coaching opportunity. Summary Finally, the Process of Winning is this: 1. Create good processes that are aligned with the entire organization.

2. Slaughter the “sacred cows.” 3. Focus on process, not outcomes. 4. Be careful how you measure people, and how you define success. 5. While it’s okay to look at the scoreboard once in awhile, don’t focus on it! 6. Don’t get emotional. When the pressure is on, stick to the process. 7. Training, training, training. 8. Testing, testing, testing. 9. Inspect What You Expect. 10. Most importantly, be disciplined… and don’t ever give up! Body shop people are some of the smartest, hardest-working folks on the planet. They shouldn’t suffer from the diminishing returns so typical in today’s ultra-competitive and ever-challenging marketplace. It’s not so much that they “care too much,” but they often work in hurried environments, where they aren’t given time to direct their passions sensibly. Care about the task at hand, and don’t worry about Aunt Patty’s smile. You might improve your repair process as much as I improved my tennis game. Once I learned to love the rewards of each step in the journey, I found my first trophy at the end. You can too!

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Northwest Associations

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

with Ed Attanasio

MCRS Lobbyist Represents Collision Repairers in Big Sky Country

Drew Geiger, 44, is the chief lobbyist for Communication and Management Services in Helena, MT. He’s been a lobbyist for more than two decades and began working for the Montana Collision Repair Specialists (MCRS) seven years ago, representing the organization in the Capitol and acting as a watch dog as he steadfastly keeps an eye on proposed bills for its membership. Geiger’s connection to the collision industry goes all the way back to his high school years, he explained. “The body shop guys in high school kept my $500 car on the road, so I’ve been indebted to this industry ever since then.” Geiger respects the collision repairers he works with at the MCRS, he explained. “The board at MCRS is a very mature group consisting of very successful body shop owners. You could take this board and give them another business and within six months, they’d

be running it successfully. They’re sharp business people who started out working on cars, but then they took it to the next level by understanding how to run a successful business. It’s been a good relationship, because they seem to like my counsel and we’ve been able to achieve some good things over the years. We’ve gotten some bills passed that have helped the collision indusDrew Geiger is the try significantly in chief lobbyist for Montana and so it’s Communication and worked very well.” Management ServGeiger has been ices in Helena, MT. He’s been a lobbyist stressing from day for more than two one that body shops decades and began are good employers working for the and important conMontana Collision tributors to the Repair Specialists economy in Mon(MCRS) seven years ago tana. “Back when I

safety component here as well, and we stress that. The point is that body shops are main street businesses and my clients are fixing their neighbors’ cars. We have more deer than people here in Montana and almost all of our legislators have been in a deerrelated accident, so our body shops have helped them more than once, in some cases. We stress all of this, because we want to illustrate that we’re a useful industry that helps the public and that’s what legislators respond to.” There have been some big wins for the MCRS and Geiger since he began in 2007, he said. “The most significant bill we’ve encountered during the seven years I’ve been in this position was HB 265, sponsored by Representative Gordon Vance, which prohibits the insurer from disregarding cost items identified by an estimating system. In some states, this same bill is 500 pages long, but here in Montana

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started with MCRS, I did some research and found out that body shops in Montana pay 30% above the state average in wages and give the majority of their employees health care,” Geiger said “So, we’ve really tried to communicate to the legislature and the public about the industry in general. A proposed bill might be opposed by the insurance industry or have proponents, but we want to show that we have a broad public interest when we walk into the state Capitol to start talking about legislation, and we’ve been successful at doing that. “We also stress the level of professionalism in this industry,” he said. “When a customer’s car is in the shop, the insurance company obviously plays a role, but ultimately, the body shop professionals are the ones that are saying, not only are we going to get you your car looking fine, but it’s going to be performing the same way it did when it was towed in here. There’s a huge public

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it’s basically one sentence: ‘An insurer may not unilaterally disregard a repair operation or cost identified by an estimating system that the insurer and the auto body repair business have agreed to utilize.’ It doesn’t get easier than that, does it? We had some major push back from the insurance side on this bill. In the end, it’s a David vs. Goliath situation here. You have a larger industry being told by a smaller industry that we need to sit down and negotiate and you can’t tell us what to do, essentially. It took a couple sessions, but the legislature ultimately said that it shouldn’t be a problem for us to sit down with the insurance companies and work it out. It impacts the body shop, but if you’re a customer and it’s your car being repaired, you want your car back in that same condition. But, if procedures are denied by the insurance company, how can you be sure what’s being done and what isn’t being done? So it’s absolutely a consumer protection issue and that’s why it passed in 2011.” Geiger is also concerned with steering practices in Montana, he said. “Steering is absolutely a problem here

in Montana and an ongoing issue. If the insurance companies could take it off the books, they would do it absolutely. So, we have to be vigilant when it comes to steering. Our Insurance Commissioner Monica Lindeen is absolutely open to working with us and she’s had an open door policy since day one. She’s pro-consumer and has been good for the collision industry in Montana. She knows many of our board members by name and we hold regular informal meetings in her office all the time. My office is two blocks away and I see her at the grocery store, which is definitely an advantage of working in a smaller state like Montana.” One of Geiger’s jobs is going through each and every bill with a fine tooth comb. “Our legislature meets every other year for four months and there are roughly 2,000 bills that get thrown out there,” he said. “So, I have to read through all of them, to make sure they don’t contain anything that can negatively impact the collision industry in Montana. My MCRS members don’t have time to read 2,000 bills every year and that’s one of the main things that we provide.

Knowing how to act while working with the legislators in Montana is important, Geiger said. “With 2,000 bills in play, you want to have a presence but you don’t want to be pushy. You want to maintain a fine balance between being around and being engaged, but you also want to be respectful of the fact that these legislators have to study, decide and vote on 2,000 bills. You have to learn the process and the protocol if you want to get things done. You don’t want to go in there and make demands and stomp your feet. You have to be professional and pragmatic with your presentation if you even want to be considered. The people I work with at MCRS get it and understand that and I think that’s why we’ve had so much success.”

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Former Vallejo Shop Owner Sentenced for Fraud

The former owner of a Vallejo auto body shop was sentenced this month for automobile insurance fraud, the California Department of Insurance said July 30. Armand Eulano, 45, former owner and operator of G Collision in Vallejo, was convicted in Solano County Superior Court after pleading no contest to three felony counts of insurance fraud, CDI said. Eulano billed Farmers Insurance for work he did not perform by cutting corners on bodywork and repairing parts instead of replacing them as agreed by the insurer, according to CDI. The fraud came to light when Farmers Insurance did a random re-inspection of 11 vehicles that had been repaired at Eulano’s body shop, according to CDI spokeswoman, Madison Voss. The Farmers Insurance inspection disclosed some of the vehicles had only been patched and painted despite Eulano’s claim he replaced the damage with a new part. Eulano received payment for the higher repair cost, the Department of Insurance said. The fraudulent billing happened between late 2009 and August 2010, Voss said. Eulano was sentenced to probation and 30-day home detention and was ordered to pay $40,000 restitution, CDI said.

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SCRS Announces Repairer-Driven Education at SEMA The Society of Collision Repair Specialists (SCRS) launched their first iteration of the Repairer Driven Education series at the SEMA Show in 2010, and with annual adjustments to the format and content it has become one of the most comprehensive programs of collision repair education being offered to the industry. This year, one of the most noticeable new developments to the SCRS program is the launch of the very first issue-specific, collision repair industry forum that will be featured on Wednesday, November 5th, and titled as the OEM Collision Repair Technology Summit. “There is really no topic more captivating of everyone’s attention right now than the rapidly changing landscape of automobile technology, and how it is driving adaptation in the collision repair marketplace,” shared SCRS Chairman Ron Reichen. “It is a topic that has broad-reaching impact on everyone in the industry and it was important to both SCRS and SEMA to develop a forum that would address the significant interest from all who are making the investment to join the industry in Las Vegas this fall.” “We are really excited about how this program has come together, and the unique nature of the participants, “added SCRS Executive Director Aaron Schulenburg. “We have speakers coming in from all over

the world, and participation from a wide variety of well-respected automakers such as Ford, GM, Toyota, Tesla, BMW, Audi and Mercedes - but we will be hearing from representatives that we often don’t have a chance to interface with.” The panelists represent companies with rich histories of producing sophisticated structural designs and technological advancements, and will be bringing technical insight into the design, architecture and development of their vehicles, and how advancements in those areas intersect with the repair process. The discussion will fittingly be moderated by Jason Bartanen, Director of Industry Technical Relations for I-CAR, and one of the lead representatives from the training organization involved in their work as an “OEM linking pin.” The program will also include separate panel discussions with representatives from certified repair facilities, equipment suppliers, certifiers/auditors and special presentations from the aluminum and steel industries. “SCRS really crafted a completely unique networking and learning forum with this event, and we are convinced it will put repairers in an interactive environment with subject matter experts that simply can’t be found in any other event,” added Peter MacGillivray, Vice President, Events and

Communications for the Specialty Equipment Market Association (SEMA). “As a show organizer, we are keenly focused on how to enrich the attendee experience, and this partnership with SCRS continues to deliver toward that objective.” “Every participant in this industry can benefit from better insight into how vehicles and materials are evolving, what that means in the repair process and what will be expected of those who are performing these repairs,” added Schulenburg. “The future of our collision repair industry is highly skilled professionals, working on highly sophisticated automobiles that require the industry to embrace the necessary investments in training and equipment; but also relies on informed business owners who understand how to define for themselves what a sustainable and successful business model to support that investment looks like.” The OEM Collision Repair Technology Summit is made possible through support from PPG Refinish Products, Ford Motor Company, BASF, Toyota Motor Sales and The Hertz Corporation. For more information about SCRS’ Repairer Driven Education (RDE) series, and to register for the OEM Collision Repair Technology Summit and other RDE sessions, please visit: www.semashow.com/scrs.

NICB Warns Consumers That Thieves Use Scanner Boxes

Recent news reports detailing the theft of personal items from locked cars by criminals using high-tech electronic devices may be alarming, but the National Insurance Crime Bureau (NICB) says car owners can take some steps to protect themselves. The key-less entry feature on newer cars is a popular advancement that lets drivers unlock their cars with the simple click of a button on a key fob using radio frequency transmission. The technology also helps prevent drivers from locking their keys in the vehicle. Not surprisingly, thieves have found a way to partially outwit the new technology using electronic “scanner boxes.” These small, handheld devices can pop some factorymade electronic locks in seconds, allowing thieves to get into the vehicle and steal personal items left inside. “Our law enforcement partners tell us they are seeing this type of criminal activity and have recovered some of the illegal devices,” said NICB President and CEO Joe Wehrle. “And unfortunately, some of these devices are available on the Internet.”

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58 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

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www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 59

As Vehicle Designs Evolve, Frame Racks and Measuring Systems Are More Important than Ever Says Chief Automotive The increasing use of aluminum and other “exotic” materials in vehicle design has led to evolving repair procedures. Long gone are the days of pulling out every dent. But even as the use of sectioning and parts replacement grows, the foundation of a solid collision repair remains the trusty frame rack, backed by a reliable measuring system. Although high-strength steel and aluminum vehicle bodies are getting a lot of industry buzz, even the most cutting-edge light-duty trucks and many other SUVs and vans continue to be built on steel frames. These steel frames may need to be pulled back into shape after a collision. Frame racks also play a crucial role in keeping a vehicle in place during the parts removal and replacement process. “Using high-strength steels and aluminum, vehicle manufacturers are able to direct collision forces around the passenger compartment and into areas specifically designed to absorb an impact,” explains Bob Holland, director of collision in North and South America for Chief Automotive Technologies parent company Vehicle Service Group (VSG). “This protects passengers, but also transmits damage across the en-

tire vehicle. If any damaged components are not properly repaired or replaced according to OEM specs, the vehicle’s entire impact-absorbing design could be compromised. Today’s damaged vehicles should be fully measured before and during the repair, held securely while being fixed, and, if needed, pulled in multiple strategic locations.” Before attempting to repair a modern vehicle, technicians must look for damage beyond the point of impact. Using Chief’s LaserLock™ Live Mapping™ system, they can map an entire vehicle at once. LaserLock measures more reference points than any other system to provide a thorough depiction of all damage. Since its out-of-level capabilities simplify the setup process, LaserLock can be used to measure every vehicle that comes in to blueprint repair plans that reduce the risk of repair delays. During the repair, Chief’s new Structural Holding Package can help ensure that new high-strength steel and aluminum pieces are placed according to OEM specs. This preserves the vehicle’s impact-absorbing design. The Structural Holding Package works with any Chief frame rack and features

more than 50 components that can be combined in a variety of ways to add holding points at strategic locations along the body. These additional holding points prevent the vehicle from shifting out of place during the repair process. The Structural Holding Package includes vice clamps that can be used to secure vehicle frames to the rack at multiple locations. The additional holding points provided by the Structural Holding Package help distribute pressure when pulling out frame damage, which reduces the risk of inflicting additional damage to the vehicle. When paired with a modern frame rack, the LaserLock Live Mapping System and Structural Holding Package can provide shops with an ideal setup for returning modern vehicles to OEM specs. Chief’s full-sized impulse®-E/VHT, Goliath® and Titan®360 frame racks all feature 360-degree, multipoint pulling capabilities

that allow technicians to isolate damaged areas for accurate, efficient repairs. Their decks offer variable height settings for versatility and each pulling tower is equipped with 10,000 lbs. of power at the hook for handling nearly any job. “Vehicle design has evolved, and without the right equipment, shops will not be able to properly repair the vehicles of today and tomorrow,” says Holland. “Chief’s collision repair equipment is more powerful, versatile and capable than ever before, and has been specifically designed to service modern cars and trucks.” To learn more about the full line of Chief collision repair equipment, contact your local Chief distributor, visit www.chiefautomotive.com or call (800) 445-9262. Chief is active on Twitter, twitter.com/ChiefAutomotive, Facebook, www.facebook.com/ChiefAutomotive and Vimeo, http://vimeo.com/groups/ chief.

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ACD and ARA Finalize Associate Membership Relationship at NACE

The Automotive Recyclers Association (ARA) is pleased to announce that ACD has joined the Association and is the most recent associate member of ARA. Servicing over 225 insurance companies, ACD presents insurance providers award winning technology, top-quality auto damage appraisals, subrogation auditing and a team of highly skilled claims professionals.. ACD delivers key information, decision support, auditing, consulting and serves to connect the links of the entire claims value chain. “We are pleased that ACD has joined the ARA,” said CEO Michael E. Wilson. “For years, professional automotive recyclers have utilized successful associate partnerships to increase sales of recycled OEM automotive parts in today’s ever expanding automotive parts marketplace. “We look forward to working closer with ACD and other industry partners on initiatives that unlock even more market opportunities for our 4,500 members to sell quality, recycled OEM parts to consumers around the world.”

Auto Parts Executive Pleads Guilty to Bid Rigging and Price Fixing G.S. Electech executive is the 36th person charged in the U.S. Department of Justice antitrust probe into parts manufacturers. Executive sentenced to serve 13 months in jail. An executive of Japanese auto parts maker G.S. Electech Inc. pleaded guilty and was sentenced July 31 to serve 13 months in a U.S. prison for his role in an international conspiracy to rig bids and fix prices on auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced. Shingo Okuda, the former Engineering and Sales Division Manager for G.S. Electech, pleaded guilty in the U.S. District Court for the Eastern District of Kentucky in Covington, to a one count charge of bid rigging and price fixing. As part of his plea agreement, Okuda also agreed to cooperate with the department’s ongoing investigation and to pay a $20,000 criminal fine. On Sept. 11, 2013, a federal grand jury in Covington, Kentucky, returned an indictment against Okuda, charging him with conspiring to rig bids and fix prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor

Engineering and Manufacturing North America Inc., in the United States and elsewhere. According to the indictment, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. The indictment charged Okuda with participating in the conspiracy beginning at least as early as January 2003 until at least February 2010. “Today’s guilty plea is a victory for consumers, who deserve to know that the essential parts used in their automobiles are not subject to anticompetitive agreements,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division remains committed to holding executives accountable for behavior that undermines the competitive marketplace.” G.S. Electech manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage. On May 16, 2012,

G.S. Electech pleaded guilty to the conspiracy and agreed to pay a $2.75 million criminal fine. Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. Including Okuda, 36 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Okuda is the first individual in the investigation to plead guilty following an indictment. Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.3 billion in fines.

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Midwest Associations

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

with Ed Attanasio

ICRA Lobbyist Defends Rights of Iowa Body Shop Owners

R. Scott Weiser, 58, is the lobbyist for the Iowa Collision Repair Association (ICRA) and works closely with the organization’s Executive Director Janet Chaney to act on behalf of its members throughout the state. Weiser established Capitol Strategies Group, Inc, (CSG) in 1998 and seven years ago he began working with the ICRA. He has been a registered lobbyist with 33 years and CSG is a full-service lobbying, consulting, and advocacy company providing services at the statehouse in Des Moines, Iowa and in Washington, D.C.

Q: Some lobbyists are attorneys, but others are full-time lobbyists and not lawyers. Which are you and describe the difference? A: I am not an attorney. Some lobbyists are lawyers and some aren’t. Attorneys are usually seeking negotiated outcomes, but when you’re an advocate like I am, you don’t always get negotiated outcomes. There are winners and losers, so it’s an interesting dynamic. Sometimes we’re for something or opposed to it and that’s all there is to it. There’s no room for negotiation when it comes to many of these situations, especially in the collision industry. So, that’s how a lobbyist can differ from an attorney.

Q: What do you do specifically for the ICRA? A: I represent a wide range of business groups here in town. I took on the ICRA as a client several years ago because I like these people and I’ve stayed with them because I really enjoy working with them. They’re hard-working honest folks and top business people and not afraid to fight, so I enjoy working on their behalf at the State House. The ICRA has recently had some successes and that’s really important to any association in terms of building membership and visibility and tracking other winners. We had a tax issue here about three years ago now. Our body shop guys were one of the last businesses in Iowa that were still being taxed on the products they use on their repairs. In other words, tape

and putty and fillers and other ancillary products that they need in order to complete the work for their clients was being taxed. They were paying six per cent on that and we were able to secure an exemption for them for the past three years. That was a R. Scott Weiser nice rallying point is the lobbyist for for our members the Iowa Collision and I think our Repair Association group is stronger (ICRA) and the president of Capitol now than it has Strategies Group, been in years beInc. in Des Moines, cause of that vicIowa tory. We got that handled and it’s definitely a shot in the arm for the collision industry in Iowa, because now the body shops can take the six per cent and put it in their pockets.

Q: Is it difficult for the body shop owners in Iowa to be heard by their legislators? A: No, not really because the ICRA, has an excellent reputation for gaining access over at the State House. We built a three-pronged approach to how to solve problems here in Iowa and it works. We have our legislative work which involves committee work and testifying and those sorts of things. We also are working on the regulatory side to engage our Insurance Commissioner and our Attorney General as it relates to things like PartsTrader and other things that begin to be issues for them as well as the industry.

Q: What are some of the hotter issues right now for you and the ICRA? A: During this past session, we introduced some legislation after carefully looking at some other states to see what they’re doing and how they’ve had successes. So we looked at a couple of issues, one of which involves the use of aftermarket and recycled parts in repairs and the other concern is with short pay. It was our first shot out of the box addressing the short pay issue and it wasn’t as fruitful as we imagined. We have a

62 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

very large insurance presence here in Des Moines. We’re second only to Hartford, Connecticut for insurance company headquarters, so we’re very insurance-friendly here. Almost all of the insurance companies are right here and of course they show up at the State House whenever you introduce a piece of legislation and they tend to have data–lots of data. On top of that, we currently have one of the lowest auto rates in the nation here in Iowa, so we began to testify. The problem is that when our members are asked to testify on something such as short pay, for example (involving what we believe includes things such as safety issues and other issues) we don’t have any data on our side. We’re giving them individual stories from our members and they’re valuable, but here in Iowa it’s difficult to pass bills without the data. Our members are pretty sophisticated over here and they work it

pretty hard. So, right now we’re regrouping and during this past year, we’ve been working pretty hard to capture and quantify short pay issues that are going on right now in the collision industry in Iowa. We’re going to have some good, solid, well-supported and documented cases of short pay and will be able to go toe to toe with the insurance companies. We’re going to professionalize our approach more, so by owning the data that we’re assembling it’s really going be a key thing for us here.

Q: What are the main issues surrounding short pay? A: Well, first off–the consumer is being short changed here—the customer is not being made whole. There are safety concerns when certain parts of the vehicle are not paid for or used appropriately. In many cases, our own elbow grease is being short paid, but sometimes it’s other

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things and so I think we’re hoping by the end of December we’re going to have a pretty good documentation to use.

Q: What does the future of the ICRA hold for you and your members? A: Our body shop members have done a great job politically here in Iowa, but it all comes down to the fact that we have to help ourselves ultimately. That’s where we find ourselves right now. Our Executive Director Janet Chaney is doing an

excellent job and that’s important, because these body shop owners can’t do it alone. We’ve got some good things happening right now with the ICRA and with Janet onboard, they’re definitely headed in the right direction. I am paid to be an advocate for this organization and it’s a pleasure because they take their own time, energy and money to try and make a difference and by achieving things for them is very fulfilling personally and professionally.

Education Foundation’s Record Fundraiser The thirteenth annual Collision Repair Education Foundation industry fundraiser, co-hosted by PPG Automotive Refinish, raised a record $85,000 through the support of attendees and sponsors. Sponsors and participants enjoyed a day of golf at Northville Hills Golf Club in Northville, Michigan on July 31, 2014 and the funds raised from this event will go toward sup-

porting scholarships and grants for collision schools and students. There were also several additional big winners during the event. Attendee Rick Johnson won $10,000 at the AirBagSolutions. com sponsored hole-in-one contest by sinking his shot. The second annual helicopter golf ball drop, sponsored by LORD Fusor, was a big part of the event.

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www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 63

Northwest Associations with Chasidy Rae Sisk

ASA-NW Members Enjoy Summer Retreat

During the weekend of June 19 Range Sports Complex in West Rich- sues in the industry as well as their through 22, ASA-Northwest held their land for their “Hogs & Dogs” event biggest challenges. Lovell shares, Semi-Annual Summer Retreat and where over 2000 motorcycles were on “most agreed that finding good technicians is one of the biggest challenges Management Conference the Red display. with EdatAttanasio currently facing the automoLion Hanford House in Richland, WA. tive industry today. Our memThe four-day event featured educabers shared information on tional seminars, industry roundtable how they advertise for emdiscussions, networking opportunities ployees and where techniand general fun for all present. Jeff cians come from. Another Lovell, President and Executive Diwithnoted Ed Attanasio topic was the challenge of rector of ASA-NW, that the running a family-owned busievent went very well with around 80 ness; how do you fire your participants, though this year’s retreat son? Being the boss can be was smaller than in the past were attough on families!” tendance was closer to 100 individuals, a fact he attributes to many During the roundtable disRick White of One Eighty Business Solutions presents cussions, the Ascettes played graduation ceremonies taking place with Ed AttanasioCommunicating for Success a game of croquet in the courtthat weekend. On Thursday, attendees had the On Friday, the group gathered for yard, and in the evening, the Cool option of enjoying a free day or play- their Board of Directors meeting Desert Nights event allowed attendees ing golf with their peers, and those where conversations ensued about the to enjoy two hours of classic cars cruising past the hotel. From 9-11PM, the who chose to golf seemed to im- association in general and their finanmensely enjoy the day in the sunshine. cial plans, followed by a Mechanical evening concluded, as did all others during the trip, with ASA-NW’s HosLater in the day,with a group of ASA-NW and Collision Roundtable which alThomas Franklin pitality Suite, allowing members to inmembers traveled to the Bombing lowed members to discuss common is-

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dulge in hors d’oeuvres and adult beverages while socializing with their peers in a relaxed setting which provided “an excellent networking opportunity,” according to Lovell. On Saturday morning, Rick White of One Eighty Business Solutions presented a seminar, approved by the Automotive Management Institute (AMI), entitled “Communicating for Success.” Lovell states, “the seminar was great, and everyone loved Rick… He praised ASA-Northwest as one of the most fun associations he gets to work with!” When the group gathered for lunch, Joel Baxter, Past Board Chairman, presented plaques to Brian and Zoya Johnson as well as ASA Honorary Member Ron Willand. Current Chairman Todd Black also presented the “Hunt Endowment” to Travis and Renee Mosley of My Auto Pro. That afternoon, ASA-NW members gathered for a productive General

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nated by Jude and Lindsy Larson of CompTrek Consulting, Brian and Jen Smith of Gig Harbor Automotive, Beven Weeks of ICM, Mark and Sara Simons of Rolf’s Import Auto Service, Bryant and Melissa Kelley of Valley Automotive Electric, Janel Black of Unlimited Services, and Janae Schindler of Rod’s Japanese Auto Care. Between the live auction and the raffle, the Ascettes raised over $2300 towards their scholarship fund. ASA-NW is grateful to the members who took time from their busy schedules to make ASA-NW members enjoyed a weekend filled with the event such a success. socializing and discussions Lovell believes everyone had such as croquet and ladder ball. Dura great time networking and dising the barbeque, the Ascettes auc- cussing the issues, and he looks fortioned off a “Pamper Yourself” basket ward to the next retreat this winter. donated by the Ascettes, a two-person fishing trip donated by Scott and ASA Northwest Rachael Tveten, and a Butter Pecan 7403 Lakewood Drive W, Suite 7 cake donated by Casey Hall; the cake Lakewood, WA 98499 was so popular that a second one was 253-473-6970 also auctioned off, to be supplied at a www.asanorthwest.com later date. At the Hospitality Suite later Satwww.autobodynews.com urday evening, the Ascettes held their CHECK IT OUT! raffle prize drawings with prizes doBusiness Session, while the Ascettes held an equally fruitful business meeting. Saturday evening’s main event was a barbeque in the hotel courtyard where attendees partook of ribs and chicken while playing lawn games

Continued from Page 46

Documentation Series

In your supporting documents, you should also include an Assignment for Money Due which must identify the customer, the repair facility, the vehicle and the loss. As long as this is without defects, it should be enforceable without being notarized (dependent upon state laws). The Writ of Replevin is a document that the insurance company typically uses to retrieve a total loss vehicle, filing it to say a shop is unlawfully withholding a vehicle when they do not want to pay for the repair. Because this document is only valid if Advertise in our the insurance company can prove the CLASSIFIED SECTION for shop is wrongfully withholding the $50 per column inch! vehicle, it is imperative that you are prepared to defend yourself against a Place an ad in our Writ of Replevin by including a clause in the Repair Contract that states the AUTOBODY MARKETPLACE consumer cannot transfer the title of section of Autobody News. the vehicle without ensuring the repair Give us your opinion on matters affecting the industry. bill is paid in full. With the vehicle owner’s signature affixed to this verbiage, the insurance company has no ltedesco@autobodynews.com right to the vehicle until they have publisher@autobodynews.com paid for the repair, making their Writ

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ABRA Acquired by Hellman & Friedman and Senior Management Team Expected since June, ABRA is the latest privately-held MSO to secure new investors. ABRA Auto Body & Glass and its principal owner, Palladium Equity Partners, LLC, announced a definitive agreement for ABRA to be acquired by affiliates of Hellman & Friedman, LLC., along with ABRA’s senior management team. A deal for Palladium to exit its stake had been expected since June. ABRA’s network includes 186 company-owned vehicle damage repair centers and 48 franchised centers in 19 states. “It is with the dedicated work of our employees, the trust of our customers, and the tremendous support of our insurance partners that ABRA has become an iconic name in auto body and glass repair in the three decades since its founding,” said Duane Rouse, president and chief executive officer of ABRA. “Hellman & Friedman brings deep insurance and automotive service industry expertise and an exemplary record of helping companies such as ABRA continue to evolve and grow. We look forward to working together to build on our track record of success.” “Within the $30-billion collision repair sector ABRA stands out as a

highly-respected, exceptionally wellrun business,” said Erik Ragatz, managing director of Hellman & Friedman. “Built on a foundation of delivering superior standards for repair quality and customer service, ABRA has become a trusted partner of leading automotive insurers and a reliable source for quality collision repair services across the nation. We see outstanding growth prospects ahead and look forward to partnering with ABRA’s team to continue to execute on their strategic plan.” Luis Zaldivar, Managing Director of Palladium, said, “We are proud to have been part of ABRA’s successful growth over the past three years. During our partnership, we worked closely with ABRA’s exceptional management team to enter new markets, accelerate the company’s acquisition program and enhance the company’s industry-leading capabilities. We are confident Hellman & Friedman will be an ideal partner in the next stage of the company’s development.” The transaction is expected to close in the third quarter of 2014 and is subject to customary conditions. Hellman & Friedman has previous experience investing in businesses

within the greater collision industry. In the early 2000s, it owned Mitchell International. In February 2007, Mitchell was sold to a group led by Aurora Capital Group and including General Electric Pension Trust. The deal for ABRA is the just the latest transaction for the big three privately-held MSOs. In July, Service King was acquired by funds controlled by Blackstone. In November, OMERS Private Equity (OPE) announced that it, along with existing management, had acquired Caliber Collision Centers from private equity firm ONCAP. Harris Williams & Co. acted as advisor to ABRA in connection with the transaction. Greenberg Traurig LLP andwww.autobodynews.com Simpson Thacher & Bartlett LLP served as legal advisors to ABRA and ITrespectively. OUT! Hellman &CHECK Friedman,

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IN Shop Owner Charged in Child Exploitation/Porn

An Alexandria, IN, shop owner was charged with possession of child pornography and child exploitation after police said they found evidence on his computer. The charges are so inflamatory that Autobody News is withholding the name of the owner and his shop pending resolution. The shop owner was turned in after he asked a woman if he could have sex with her minor daughter. According to a probable cause affidavit, the woman contacted police in April to report the incident. She said that after meeting theGive man inus February, the two spent your opinion on ma time together. One night when the two were at the shop office at the owner displayed pornographic movies on his computer, according to the woman. Hepublisher@auto showed videos that portrayed bestiality and later, videos with children ranging from ages 3 to 15 years old. The woman said he showed her about 20 clips, then allegedly asked the woman if he could have sex with her 3-yearold daughter. Detectives executed a The on source for timely search warrant the owner’s office and found video clips and submitted information that every them to the Indiana State Police Cyber body shop needs! Crime Unit for examination. The arrest warrant was issued Aug. 13.

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AutoZone Offers Double Rebates for ASA Members in August Longtime benefit provider AutoZone has announced it is offering Automotive Service Association (ASA) members an unprecedented rebate offer for purchases made in August. ASA members who double their AutoZone purchases this month – based on net purchases from June 1-30, 2014—will receive double rebates for August 2014. “This is an end-of-year ‘Thank you!’ to our loyal customers,” said Lisa Kellett, AutoZone business development manager. “Members who double their June ‘buy’ will get twice their standard eligible rebate amount based on their purchases from August 1-30, 2014.” Dan Risley, ASA president and executive director, said, “AutoZone, which offers national account pricing with volume rebate programs for ASA members, and recently introduced a compelling battery charging program, was named ASA’s Benefit Provider of the Year during NACE|CARS 2014 in Detroit last week. They have a long history of supporting ASA and our members, and this special rebate offer is a great example of why they were the perfect choice for this year’s honor.”

For more information about these ASA member benefits, call your local AutoZone store or the AutoZone Sales Center at (866) 727-5317, or email SC53@autozone.com. View ASA’s entire benefits portfolio in the ASA Marketplace at ASA.bizunite.com. To learn more about ASA’s dedication to service and repair professionals, the value of ASA membership and how to join, visit www.ASAshop.org or call (800) 2727467, ext. 361. The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at: www.TakingTheHill.com.

ASA-AZ Prescott Chapter Meeting Brings Value to Attendees

On Wednesday, June 18, ASA-AZ’s Prescott Chapter held their June member meeting at the Gurley Street Grill in Prescott, AZ. Luz Rubio, Executive Director of ASA-AZ, says “you know meetings can vary in how valuable they are, [but this meeting] became the epitome of great ASA value for all of us in attendance, ASA member or not.” The meeting began with a roundtable discussion about what successful Platform-based Automotive Shop Marketing is currently and what it will be in the future, facilitated by Tara Tabrizi of Kukui. Tabrizi led participants in examining the importance of utilizing a fully integrated platform to easily and effectively track a shop’s marketing, ROI, conversion rates, and many other items. The group concluded that, in two to three years, the only shops that will remain in business are those who’ve embraced developing technology and who practice an aggressive form of customer service. The group examined several ways that shops are already making this happen, providing useful ideas for practices that attendees can implement in their own shops immediately in order to secure their place in the future of the industry. Another topic that generated a lot of interest during the roundtable discussion was the ability to track a service writer’s con-

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version rate over the phone. Knowing the closing rate of your service writers allows a shop to examine how many potential customers call the shop daily and how many of those actually become paying customers. Attendees enjoyed an excellent dinner with six menu selections, of which the ribeye appeared to be the most popular. Additionally, one lucky attendee received a 42-inch flat screen TV, courtesy of Kukui. Though the Prescott Chapter of ASA-AZ will be taking a hiatus over the summer, they anticipate many more valuable meetings in the fall, beginning on Saturday, September 13th with the “ASA Shop Management Traveling Show,” combined with a Vendor Fair, in Prescott, both of which are being sponsored by ASA-AZ’s state board. Rubio anticipates the benefits of the event: “again, attendees will see the true value of ASA membership. All are invited, member or not. This includes owners, managers, service writers, technicians, and spouses. Two great presentations begin at 9AM, followed by a roundtable discussion, then lunch and the Vendor Fair for everyone there! The only cost to attendees is your time to take advantage of this great ASA resource!” ASA-AZ, PO Box 81517 Phoenix, AZ 85069 602-544-2600 www.asaaz.org

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www.autobodynews.com | SEPTEMBER 2014 AUTOBODY NEWS 67

Social Media for Shops with Ed Attanasio

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

Is Your Reception Area Making a Good First Impression?

I was recently at a body shop that does lision Specialists in Randolph, NJ amazing work, garners incredible cus- hired Aurora Kitchens and Interiors of tomer reviews and skillfully fixes Somerville, NJ to completely re-do nearly 200 cars monthly. All of the their reception area in 2011. It won a with Ed Attanasio shop’s techs are dressed in clean uni- design award in the National Associaforms and you could eat off the shop tion of Remodeling’s annual contest in floor. But, then I took a look at their 2012, according to Kelley Evens, the reception area and it’s an OMG mo- owner and chief designer at Aurora ment. Ugly yellow walls covered with Kitchens and Interiors. greasy handprints; one little table that “The owner of Towne Auto looks like it was pulled out of the Ti- wanted to provide his customers with tanic; magazines from 2010; a coffee a different experience than is usually machine covered in what looks like found in auto body shops,” Evens mud and an old, beat-up sign on the said. “A comfortable, upscale waiting wall that the guys from American area for customers was top priority. Pickers wouldn’t even want. Other amenities on the owner’s wish My first reaction was shock. Why list included a television viewing area, does this shop work so hard to provide a working area with free Wi-Fi for amazing customer service, maintain- customers, a gourmet coffee/tea cening a professional image with a ter, an inviting reception desk, an area highly-trained staff and then they for insurance adjusters to speak with badly fumble the appearance of their clients privately, multiple employee reception area (or some call it a “wait- work stations and beautiful resting room”), the only part of their shop rooms.” that customers will definitely see? Figuring out how to keep the waiting room clean in an auto body shop environment was one of the biggest challenges. “Collision technicians often track oil and grease from the shop into the waiting area when they are speaking with customers,” Evens said. “The key was a durable yet attractive concrete floor with a multi-sized tile pattern, some texture and a VictorEric Design in Vancouver, British Columbia designed color variation from gold to this high-end reception area for B&D Autobody & Glass, terra cotta. Cleaning is a also in Vancouver breeze with just water and a Think about it. Collision repair is mop. To make the seating area more one of the only industries in the world inviting, a multi-colored jewel-toned where your average customer is un- rug was used to anchor the space. A happy before they even interact with brown leather sofa and gold leather you. They’re looking for reasons to chairs were grouped for seating. take you off their list, in some cases, Their colors complement the so why give them any ammunition? A concrete floor and area rug.” body shop’s reception area should be While many auto body shops have comfortable, clean and inviting, but so a single unisex restroom, which is often many of them just don’t make the dark and dingy, the owners at Towne grade. So, we found three examples of Auto insisted on separate restrooms, body shops that understand the im- each modern, clean and well-lit. “We portance of a waiting room that fits the achieved this through the use of mirrors aforementioned qualities. They see the and artwork, with warm paint colors to value in making a good first impres- keep the restrooms from feeling cold sion, because like the old deodorant and sterile,” Evens said. “The combicommercial used to say, “You may nation of bold colors, wall art and acnever get a second chance.” cent pieces created exactly the effect Towne Auto Restoration & Col- that the owner was trying to achieve.”

SEMA Show Goes On

68 SEPTEMBER 2014 AUTOBODY NEWS | www.autobodynews.com

Ace Architects designed this cool and comfortable reception area for Uptown Auto Body in Oakland, CA

Another award-winning reception area designed by a leading interior design firm was created by VictorEric Design, a Canadian design firm located in Vancouver,

British Columbia. “B&D Autobody & Glass, (also in Vancouver) came to us looking to upgrade their space,” according to the company’s blog.

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“B&D Auto body is the preferred auto body shop of the Vancouver MINI Cooper Club – they are factorytrained for repairing MINI’s and are used exclusively by MINI Yaletown for body work. That being said they wanted to update their look to suit their new clientele. We wanted to design a waiting area for our client that offered style and comfort, and one that conveyed organization and efficiency. We took a blank concrete canvas and chose to create a cool vibe with bold colors of grey, black and white. We custom fabricated a table topped with glass with a base of stacked tires, added colorful automotive themed artwork and threw in accents of chrome and silver. This is not your ordinary auto body shop. Customers don’t even mind waiting.” Our third example of a well-received reception area that is both cool and comfortable was designed for Uptown Auto Body in Oakland, CA by Ace Architects, also located in Oakland. Ace’s Co-Owner Lucia Howard loved working on the design and dealing with the shop’s owners Lisandro Allende and Giovanna Tanzillo was a creative and enriching experience, she said.

“Giovanni’s idea behind this project was to create a space where people could forget that they were in a body shop,” Howard explained. “Both owners collect art, so they wanted art to play a role. We were also interested in using car images in the overall look, because Lisandro is a big car guy and loves racing cars. We wanted to inject a ton of their personality into the reception area and I believe that’s what we achieved. We also wanted it to be open, so that when customers enter, they can also see part of the offices, so that they don’t get that stifling feeling. We didn’t want the customers to feel like they were being stored off in some room waiting for their car. When you sit in this reception area, there is so much happening throughout the room that you don’t’ even have a chance to be bored.” So, maybe it’s time to take a longer look at your reception area. When was the last time you did anything to it? It’s all about what the public sees and perceives, so if you do A+ work, but your reception area is getting low grades from the people who matter the most, a makeover might just be money well-spent.

California Insurance Firm Pays Settlement With Buckets of Coins

An insurance agency settled a lawsuit with a Los Angeles man by dropping off buckets full of thousands of quarters, nickels, dimes and pennies, his attorney said Wednesday. Andres Carrasco, 76, filed a lawsuit in 2012 against Adriana’s Insurance Services, a Rancho Cucamonga-based company. The East Los Angeles man alleged that during an argument over why the company had cancelled his auto insurance, an agent assaulted him by physically removing him from the office. The agency reached a settlement in June and last week delivered partial payment in the form of a check, but also tried to leave buckets of loose change in his lawyer’s East Los Angeles office, attorney Antonio Gallo said. Gallo said he refused to accept the delivery because he couldn’t verify the amount in the buckets. But, he said, the cash was left the next day when he was at court. His assistant said eight people came in “and just dropped it off in the lobby,” Gallo said. Gallo, who wouldn’t disclose the settlement figure, estimated there may be $20,000 or more in coins.

“There’s maybe 17 buckets of coins,” he said. “They probably (each) weigh anywhere between 70 to 100 pounds. I’m assuming, because I can’t lift them.” One bucket is entirely full of pennies, he added. Gallo said he didn’t think the payment was illegal in California but it is unique. “It’s insulting to my client. He’s 76 years old, he just had a hernia operation. Come on,” Gallo said. “He feels that he wasn’t treated as a human being.” “I am disappointed by the way Adriana’s treats their customers and the elderly,” Carrasco told KNBC-TV. “We might be poor, but we are people too.” A call to the insurer’s attorney, Edvin Flores, wasn’t immediately returned. Gallo said he has been in contact with the agency’s attorney and would like to see the insurer issue a check for the rest of the settlement and take away the coins by Friday. Otherwise, he will have to hire someone to count the stash. “If the money’s short, then we’ll probably go back into court” to ask for the full amount, along with the cost of counting the coins “and hopefully some sanctions,” Gallo said.

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Sonoma County Windshield Repair Business Ordered To Pay $1.4 Million In Fraud Case A Sonoma County Superior Court judge has awarded Allstate Insurance Co. and the state of California more than $1.4 million in a judgment against a local man accused of creating a fraudulent billing scheme for auto-glass and windshield replacements. The judgment, announced Thursday by Allstate, was issued against Reshat Alkayisi on March 31 by Judge Nancy Case Shaffer. Court records alleged Alkayisi engaged in an elaborate scheme to create multiple bogus auto-

glass replacement businesses, by using fake names and identities, and then deceived insurers by submitting fraudulent claims. Several of his family members had their names used without their consent or knowledge. Investigators were able to track the source of the fraud to Alkayisi by reviewing claims payments from 2007 to 2010 that were sent to accounts opened at Exchange Bank in Rohnert Park and were controlled by him, court records show.

Investigators reviewed the serial numbers of windshield invoices and found that Alkayisi submitted claims for more expensive auto-glass replacements that did not match the cheaper after-market products that were actually installed. Allstate charged in court that Alkayisi submitted at least 118 fraudulent claims to the company out of the 162 it examined. State law allows damages as much as $10,000 per fraudulent claim in such cases. All of Alkayisi’s windshield

businesses have ceased operating. Shaffer also ordered Alkayisi to pay $168,416 in legal fees and expenses. Court records indicate Alkayisi did not have an attorney and did not fully contest an earlier default hearing. Alkayisi could not be located for comment. He is on probation for a felony check forgery, and the judge in that criminal case has given Alkayisi permission to travel to Turkey for one month starting on Aug. 15, according to court records.

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