Western September 2015 Issue by Autobody News

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Southern California Labor Rate Survey Announced National Auto Body Research (NABR) announced the launch of the Time Shaver Tools Variable Rate System (VRS) Labor Rate Survey for Southern California, sponsored by Time Shaver Tools, Inc., of Orange, CA. The survey is free to all Southern California collision repair shops and can be found on the NABR website, http://www.national autobodyresearch.com. According to NABR, the VRS Survey provides Southern California shops an independent, third-party source of state-wide labor rate data, based on shops’ actual prices, not on an artificially defined, single prevailing rate, thereby revealing the true, market-based labor rate ranges

throughout Southern California. “Not all shops are equal. There are differences in their level of training, investment in equipment and technology, certifications and overall cost of doing business,” said Windy Sirignano, director of sales and marketing for Time Shaver Tools. “Therefore, there are differences in labor rates that reflect the different quality and cost structures among shops. The Time Shaver Tools VRS Labor Rate Survey will help to reveal this market reality. We’re excited to work with an innovative company like NABR to help auto body shops get there.” NABR CEO Richard ValenSee Labor Rate Survey, Page 8

TV News Reports on Louis. Body Shop Owner Saying State Farm ‘Forces Him’ to Use Recycled Parts by Kiran Chawla, wafb.com

Miles Paint & Body Shop in LA said his customer’s car insurer State Farm is not allowing him to use OEM parts on his 2014 Kia Sedona. Credit: WAFB

inal replacement parts, but instead they are pushing after-market, or recycled, products. See State Farm Forces, Page 22

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

A body shop owner is warning drivers that if you get in a wreck, your car insurance policy might only pay for aftermarket or recycled parts. A 2014 Kia Sedona has been at the Miles Paint & Body Shop in Baton Rouge for three weeks after the driver ran into the back of another vehicle. It now needs a new condenser and radiator, and the front bumper was also damaged. Body shop owner Tim Elkins said the car owner’s insurance, State Farm, is not allowing him to use orig-

VOL. 33 ISSUE 9 SEPTEMBER 2015

Longtime Sacramento Auto Shop Operator Rolls Into Second Retirement by Mark Glover, The Sacramento Bee

The longtime owner-operator of the Porter-Sprague Inc. auto shop at 722 12th St., in Sacramento sold the downtown business in 1996, the end of a 32year stretch of tuneups, body repairs, engine fixes, restorations and much more at the site. A short retirement stretch of do-athome chores, leisurely rounds of golf and traveling the West in his motor home ended in February 1999, when Quint came back to take over the faltering businesses and revive it. Quint felt an obligation to the site. After all, it was one of Sacramento’s longest-running businesses, started in 1917. And Quint had been turning wrenches since graduating from Grant

Ed Quint, with his pipe, is reflected in the hubcap of a 1948 Chrysler New Yorker Highlander at Porter-Sprague, a Sacramento-based auto shop that started business in 1917. The 85-year-old Quint has decided to end his reign as shop owner and finally retire. Credit: Randy Pench

High School just after World War II. “We came back and put a sign out telling everyone that the old gang was See Second Retirement, Page 26

UTI Opens Long Beach Campus, Up to 8K Automotive Tech Students to Attend Universal Technical Institute has opened its new 142,000-square-foot, state-of-the-industry campus in Long Beach to meet the area’s strong demand for skilled transportation service technicians. The new campus has the capacity to train up to 800 students who can complete their education in Automotive Technology, Diesel Technology and Collision Repair and Refinish Technology, and be ready to work in 11 to 18 months. The campus also will offer Manufacturer-Specific Advanced Training for Nissan automobiles, trucks and SUVs as well as the SMOG program, which trains students to take the California smog check inspector license exam. “Our employer and industry partners are telling us that they can’t get enough skilled technicians to meet their demand,” said UTI-Long Beach Campus President Larry Hohl. “This is especially true in Southern California, where the need for automotive,

diesel and collision repair technicians is particularly strong.” California’s Employment Development Department estimates jobs for automotive service technicians will increase by 15 percent from 2012 through 2022. Nationwide, the U.S. Bureau of Labor Statistics projects that there will be more than 1.2 million jobs in the automotive, diesel, collision repair, motorcycle and marine industries by 2022. To reach that total, the transportation industry will have to fill more than 37,000 job openings on average every year to help meet the need. Service technician jobs in the transportation industry pay well, cannot be outsourced or offshored, offer opportunities to move up, and build rewarding, long-term careers. UTI operates 12 campuses in the U.S., including locations in Rancho Cucamonga and Sacramento. Like UTI’s successful metro model campus See UTI Long Beach, Page 8

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

2 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Contents

NATIONAL 3M Hire Our Heroes Tool Grants Awarded to Ivy Tech Automotive Graduate. . . . . . . . . . . 29 4th Annual Aftermarket Telematics Challenge . . 45 AkzoNobel Launches U-Base for U-TECH Basecoat System for Commercial Builder and Refinish Markets . . . . . . . . . . . . . . . . . 57 Allstate Delivers Sharp Drop in Operating Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . 32 An Open Letter From Charles Bryant to the New Jersey Collision Repair Industry . . . . . 18 Auto Theft and Vandalism Rise With the Temperature . . . . . . . . . . . . . . . . . . . . . . . . 64 Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be Resolved Soon . . . . . . . . . . . . . . . . . . . . . 69 Axalta Coating Systems and Ducks Unlimited Paint a Bright Future for Wetlands . . . . . . . 12 Ben Komenkul Became WIN Member to Support Women in the Workplace. . . . . . . . 60 BMW Building New Auto Body Shop in Spartanburg County, South Carolina . . . . . . 48 Carmakers are Keeping Data from Tech Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations . . . . . . . . . . . . . 42 CCC Mobile Technology Enhancements for Shops . . . . . . . . . . . . . . . . . . . . . . . . . . 54 CREF Fundraiser Co-Hosted by PPG Raises Over $100,000. . . . . . . . . . . . . . . . . . . . . . 51 Enterprise Releases Second Quarter Rental Data . . . . . . . . . . . . . . . . . . . . . . . . 60 EstimateScrubber.com Releases Invoicing APP . 32

FACA/Ray Gunder Labor Rate Survey in Florida, Other States Also . . . . . . . . . . . . . . 58 Family Touch Makes Lawrence Auto Body in Livingston County, MI A Favorite . . . . . . . 28 Federal investigators look into sunroof explosions . . . . . . . . . . . . . . . . . . . . . . . . . 66 Female Car Owners More Tech-Ready Than Men According to National Consumer Survey. . . . . . . . . . . . . . . . . . . . 18 Getting Paid for Investing in Facility, Equipment and Training . . . . . . . . . . . . . . . 40 GM Invests $1.4 Billion for Arlington Plant Upgrades. . . . . . . . . . . . . . . . . . . . . . 70 Hot Topics Discussed During Mitchell’s Q3 Industry Report. . . . . . . . . . . . . . . . . . . 56 How the National Autobody Research Labor Rate Survey Plans to Change the Industry. . 15 I-CAR® Adds Nick Notte to Leadership Team. . 58 I-CAR® Launches New ‘Production Management’ Role to Increase Shop Efficiencies, Enhance Lean Processes and Improve KPIs . . . . . . . . . . . . . . . . . . . . 64 IIHS Tests Steel and Aluminum Ford F-150 Crew Cab; Changes in the Works After Extended Cab Results. . . . . . . . . . . . . . . . . 24 July Auto Sales Surge Due to Pickups and SUVs. . . . . . . . . . . . . . . . . . . . . . . . . . 35 Mike Chaney Defeats John Mosley for MS Insurance Commissioner in GOP Primary . . 14 Mopar Helps Dealers with New Service Capacity Tool . . . . . . . . . . . . . . . . . . . . . . . 32 More Stringent Auto Recalls in 2015 are ‘New Normal’ . . . . . . . . . . . . . . . . . . . . . . . 69 New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 . . . . . . . . . . . . . . . . . . . . . . . . 30 New Sherwin-Williams Web-Based System Aims to Save Shops Time & Increase Profit. . 62 Nissan Donates $1M and 10 Autos to Habitat for Humanity. . . . . . . . . . . . . . . . . . 45 PartsTrader and State Farm Credited with Increased Chrome Bumper Sales for LKQ . . 63 PPG Pickups Drive Off With Honors . . . . . . . . 20 PPG Introduces DELTRON DPS3105 Primer Surfacer. . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Proceeds from FinishMaster’s 19th Annual Golf Tournament in Denver, CO Benefit Children’s Hospital . . . . . . . . . . . . . . . . . . . 68 Stolen Car of Beaten SW Atlanta, GA, Body Shop Owner Recovered . . . . . . . . . . . 66 Takata’s Plans For Airbag Components . . . . . . . 3 Team PRP Nationwide Recycling Network Adds Ohio’s Milliron Auto Parts, Inc.. . . . . . 58 Tesla Motors Selects Solera to Provide Collision and Customer Communication Services . . . 30 Texas Law Enforcement Vehicles Hard Hit by Takata Airbag Recall Say TV News Reports . . 54 Three-C Body Shop in OH Wins Lawsuit Against American Family Insurance. . . . . . . . . . . . . 34 TV News Reports on Louis. Body Shop Owner Saying State Farm ‘Forces Him’ to Use Recycled Parts . . . . . . . . . . . . . . . . . 1 U.S. on Pace for Deadliest Driving Year Since 2007, Says National Safety Council . . . . . . 54 Urethane Supply Unveils Nitrogen Plastic Welder With Self-Contained Nitrogen Generation System . . . . . . . . . . . . . . . . . . . 35 UT Austin and Google Test Driverless Cars in Austin, TX. . . . . . . . . . . . . . . . . . . . . . . . 35 Vehicle Safety Inspections Highlight ASA’s Forum . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 WD-40 Announces New EZ-REACH Product . . 29

Now that Takata has begun replacing defective airbags in up to 34 million vehicle recalls, regulators and consumers alike are wondering, how safe are the new parts, and how long will they last? That is why the Japanese air-bag manufacturer is in the process of proposing a plan to address these concerns. However, the details have yet to be released to the public. Out of the 37-page document posted to the National Highway Traffic Safety Administration’s website on August 11, 35 pages are redacted (blank) due to confidentiality issues. NHTSA’s Gordon Trowbridge said the agency will hold a public hearing this fall, which regulators intend to coordinate. U.S. officials have described the Takata recall as the largest in our country’s history, affecting 11 automakers. The shrapnel that can spew out from exploded airbag inflators has resulted in at least eight deaths and more than 100 injuries. Although the cause is unknown,

it is believed the ammonium nitratebased propellant plays a role. Humidity is a trigger, so states with a more tropical climate are being pri-

oritized for replacement parts. A digital campaign to raise awareness is also in the works. Takata plans for both initiatives to eventually go national. There are several updates to the Takata recall in this month’s issue including a story on Texas Law Enforcement having to park some official vehicles due to lack of parts. Fiat Chrysler is supposedly expediting those parts orders.

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli 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, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia

AAPEX Trade Show . . . . . . . . . . . . . . . .14 Alfred Matthews Buick-GMC-Cadillac . .56 Audi Wholesale Parts Dealers . . . . . . . .68 Automotive ID . . . . . . . . . . . . . . . . . . . .34 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .28 Axalta Coating Systems . . . . . . . . . . . . .71 BASF Corporation . . . . . . . . . . . . . . . . . .5 BMW Wholesale Parts Dealers . . . . . . .65 Bob Smith BMW . . . . . . . . . . . . . . . . . .44 Bob Smith MINI . . . . . . . . . . . . . . . . . . .44 Capitol Subaru . . . . . . . . . . . . . . . . . . . .72 Car-Part.com . . . . . . . . . . . . . . . . . . . . .12 CCC Information Services . . . . . . . . . . .25 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .49 Chief Automotive . . . . . . . . . . . . . . . . . .27 Classifieds . . . . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . . . . .18 Completes Plus . . . . . . . . . . . . . . . . . . . .4 CRS Collision Repair Management System . . . . . . . . . . . . . . . . . . . . . . . . .9 Del Grande Dealer Group . . . . . . . . .16-17 Diamond Standard Parts, Inc. . . . . . . . .43 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .53 Earnhardt Hyundai . . . . . . . . . . . . . . . . .51 East Bay BMW-MINI . . . . . . . . . . . . . . . . .6 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .35 Elk Grove Toyota . . . . . . . . . . . . . . . . . .30 EMM . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Enterprise Rent-A-Car . . . . . . . . . . . . . .32 Equalizer Industries, Inc . . . . . . . . . . . .45 First Auto Group . . . . . . . . . . . . . . . . . .20 Ford Wholesale Parts Dealers . . . . . . . .55 Galpin Motors . . . . . . . . . . . . . . . . . . . .47 Glenn E. Thomas Dodge-Chrysler-Jeep . .13 GM Wholesale Parts Dealers . . . . . . . . .42 H & S Autoshot Mfg. Co. . . . . . . . . . . . .39

Serving California, Nevada, Arizona and Utah. Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2015 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

COLUMNS Attanasio - Body Shops Nationwide are Joining the Blog Party . . . . . . . . . . . . . . . . 50 Luehr - Why Past Success Could Be Holding You Back . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Yoswick - ‘MSO Symposium’ Panels Presented Ideas on Human Resources, Customer Satisfaction . . . . . . . . . . . . . . . . 38 Yoswick - CIC Committee Working to Eliminate Hidden Costs of Parts Procurement . . . . . . 46 Yoswick - Farmer’s COD Program, CARSTAR’s Growth, Estimates 10 Years Ago, Texas Rate Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

by Victoria Antonelli, Online Editor

Indexof Advertisers

REGIONAL Apple is Building Self-Driver, Looking to Test in Bay Area . . . . . . . . . . . . . . . . . . . . . . . . 32 ASA-AZ Verde Valley Chapter Meeting Hosts Andy Jolley . . . . . . . . . . . . . . . . . . . . . . . . 12 CREF Adopts New Mission to Connect Students With Career Opportunities; Organizes Career Fair in AZ & UT . . . . . . . . . . . . . . . . . . . . . . 10 East Bay CAA Enjoys a Day of Golf and Giving Back . . . . . . . . . . . . . . . . . . . . . . . . . 9 Guilty Plea in NV, Staging Car Accidents to Defraud Insurance Companies . . . . . . . . . . . 4 Longtime Sacramento Auto Shop Operator Rolls Into Second Retirement . . . . . . . . . . . . 1 Mike’s Auto Body Receives Farmers Insurance Regional MSO Group of the Year Award . . . 10 Service King Acquires Cathedral City Collision . . 6 Southern California Labor Rate Survey Announced. . . . . . . . . . . . . . . . . . . . . . . . . . 1 Two UTI Campuses in AZ Named Schools of Excellence by ACCSC . . . . . . . . . . . . . . . . 6 UT and AZ Collision Centers Acquired by The Boyd Group . . . . . . . . . . . . . . . . . . . . . . 4 UTI Opens Long Beach Campus, Up to 8K Automotive Tech Students to Attend . . . . . . . 1

Takata’s Plans For Airbag Components

Herkules Equipment Corporation . . . . .15 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .36-37 Hyundai Wholesale Parts Dealers . . . . .67 Kearny Mesa Subaru-Hyundai . . . . . . .38 Kia Motors Wholesale Parts Dealers . . .59 Maita Subaru . . . . . . . . . . . . . . . . . . . . .20 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .26 Mazda Wholesale Parts Dealers . . . . . .48 McPeek Dodge of Anaheim . . . . . . . . . . .8 Mercedes-Benz . . . . . . . . . . . . . . . . . . .21 MINI Wholesale Parts Dealers . . . . . . . .64 Mitsubishi Wholesale Parts Dealers . . .54 MOPAR Wholesale Parts Dealers . . . . .41 Moss Bros. Chrysler-Jeep-Dodge . . . . . .7 Nicolosi Imports . . . . . . . . . . . . . . . . . . .12 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .62 Orange Coast Chrysler-Dodge-JeepRam . . . . . . . . . . . . . . . . . . . . . . . . . .22 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Puente Hills Subaru . . . . . . . . . . . . . . . .26 Riverside Kia . . . . . . . . . . . . . . . . . . . . . .4 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .57 San Bernardino Mitsubishi . . . . . . . . . .10 SATA Spray Equipment . . . . . . . . . . . . .31 Shingle Springs Nissan-Subaru . . . . . .50 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .63 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .24 Subaru of San Bernardino . . . . . . . . . . .10 Subaru Wholesale Parts Dealers . . . . . .61 The Bay Area Automotive Group . . . . . .33 Toyota Wholesale Parts Dealers . . . . . .68 Urethane Supply Company . . . . . . . . . .29 Valspar Automotive . . . . . . . . . . . . . . . .11 Volkswagen Wholesale Parts Dealers . .69 Volvo Wholesale Parts Dealers . . . . . . .60 Wedge Clamp Systems, Inc. . . . . . . . . .23

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 3

Guilty Plea in NV, Staging Car Accidents to Defraud Insurance Companies Nevada Attorney General Adam Paul Laxalt announced on August 3 that Martin Curiel-Guerra, 26, of Las Vegas, pleaded guilty to one count of multiple transactions involving fraud or deceit, a category “B” felony, and one count of insurance fraud, a category “D” felony. Curiel-Guerra defrauded insurance companies out of more than $10,000 between May and June of 2012. Curiel-Guerra, with the help of a co-defendant, was involved in a scheme to defraud auto insurance companies by staging car crashes. As the driver, he intentionally caused three separate car crashes and enabled other co-conspirators to make fraudulent insurance claims. “Staged car crashes are on the rise in Nevada, and this office will continue to pursue and prosecute these crimes,” said Laxalt. “These staged crashes are extremely dangerous to all involved. I encourage drivers to practice defensive driving and to be aware of the known types of staged collisions.” The charge of multiple transactions involving fraud or deceit carries a potential 20-year prison term and a fine of up to $10,000. Insurance fraud is punishable by up to

four years of imprisonment and a fine of up to $5,000. The sentencing hearing for him is scheduled for December 1, 2015 in the Eighth Judicial District Court. Criminals perpetrating the staged car accidents often include passengers in their automobiles, who also claim to have sustained injuries, knowing that such claims are difficult to disprove. The known types of staged car crashes include: Swoop and Squat – A driver causes an intentional and unavoidable rear-end collision by abruptly entering the lane in front of the victim, cutting the victim off, pulling in front of the victim, and forcing the victim to break suddenly. Drive Down – While an unsuspecting victim attempts to merge onto a freeway, a driver in the adjacent lane directs the victim forward with a hand motion, then deliberately crashes into their automobile and blames the victim for the collision. The Wave – Similarly, while driving in heavy traffic, a victim will attempt to merge into an adjacent lane. The driver in the adjacent lane waves to the victim indicating that he or she will make room for the victim

UT and AZ Collision Centers Acquired by The Boyd Group

to switch lanes directly in front. Just as the victim begins to switch lanes, the driver accelerates and crashes into the rear of the victim’s car, making it appear to be the victim’s fault. Sideswipe – The victim is in a dual-turn left lane and unintentionally veers the vehicle into the adjacent lane for a few seconds. The driver in the adjacent lane then sideswipes the victim, and subsequently accuses the victim of driving recklessly. T-Bone – The victim begins to drive through an intersection, when a driver intentionally slams into his or her automobile. The driver then accuses the victim of running the stop sign. This is also called a right-angle or broadside collision. Drivers are encouraged to be wary of how many occupants are in and around the vehicle at the time of the crash and thereafter. Drivers should also be aware of their surroundings and note whether additional people show up to the scene who claim to have been involved in the accident. Oftentimes, these individuals also file insurance claims.

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The Boyd Group (operating as Gerber in the U.S.) acquired collision repair centers in Utah and Arizona. In Mesa, Arizona, the company acquired Red Mountain Collision. “This location is an important addition to our other centres in Mesa and strengthens our presence in southeastern Arizona,” said Tim O’Day, President and COO of the Boyd Group’s U.S. operations. “This will allow us to better serve our customers and insurance customers in the region. The company also acquired four collision repair centers in Utah. They previously operated as Shine Collision Repair and are located in Salt Lake City, Murray, Ogden and Sandy. These new locations represent the company’s first locations in Utah. “We are very pleased to establish a presence in Utah with these four locations,” said O’Day. “They form a regional footprint in the state that we expect to build on.” Dave Kelsch, founder of Shine Collision Repair, will join Gerber as the Market Leader overseeing the new Utah locations. Collision centers interested in joining The Boyd Group’s existing network, can contact Kim Allen, 847-410-6003 or kim.allen@gerbercollision.com.

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Service King Acquires Cathedral City Collision

Service King Collision Repair Centers announced on August 3 continued expansion in the southern California market after reaching an agreement to acquire Cathedral City Collision. Service King and Cathedral City Collision closed the acquisition July 31. Service King now officially operates 25 southern California locations and 23 across the state. “It’s an exciting time for Service King in the southern California market,” said Chris Anderson, Service King Regional Vice President. “We’re especially excited about partnering with the team at Cathedral City Collision. They have built a business on the foundation of excellent customer service and superior quality repair service. It’s an honor to welcome them to the Service King family.” Founded in 2011, Cathedral City Collision is a 8,500 square-foot collision repair center with the capacity of repairing 100-vehicles-per month.

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Two UTI Campuses in AZ Named Schools of Excellence by ACCSC

Universal Technical Institute announced on August 4 that four of its campuses have been awarded the Accrediting Commission of Career Schools and Colleges (ACCSC) School of Excellence Award for the 2014-2015 academic year. UTI campuses in Avondale, AZ; Rancho Cucamonga, CA; Houston, TX; and Motorcycle Mechanics Institute in Phoenix, AZ are among only 24 schools receiving the award this year and will be recognized as recipients of ACCSC’s highest honor at the 2015 Professional Development Conference on September 9 in Arlington, VA. Universal Technical Institute’s Motorcycle Mechanics Institute in Phoenix was one of two Arizona schools honored with the Accrediting Commission of Career Schools and Colleges (ACCSC) School of Excellence Award for the 20142015 academic year. “Strong student outcomes are ACCSC’s key metric of success, and have been UTI’s primary objective since we opened our doors 50 years ago,” said Kim McWaters, Chairman and Chief Executive Officer at Universal Technical Institute. “This recognition reinforces our commitment to producing consistently strong outcomes for our students. Our manufac-

6 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

turer partnerships, expert instructors and state-of-the-industry facilities provide our graduates with the training they need to succeed in today’s hightech transportation industry.” The School of Excellence Award recognizes ACCSC-accredited schools for their commitment to the expectations and rigors of ACCSC accreditation, as well as the efforts made by the institution to maintain strong student outcomes. ACCSC-accredited institutions are eligible for the School of Excellence Award every five years, pending they meet the conditions of renewal of accreditation without any findings of non-compliance, satisfy all requirements necessary to be in good standing with the Commission, and demonstrate that the majority of the school’s graduation and employment rates for all programs meet or exceed the average rates among all ACCSC-accredited institutions, which includes 700 institutions across the United States, Puerto Rico and abroad. “Through the School of Excellence Award, ACCSC recognizes UTI’s commitment to delivering quality technical training programs that provide students with the high-tech, industryspecific skills they need to succeed in today’s transportation industry,” said

Christopher Lambert, Associate Executive Director of ACCSC. Since 1965, UTI has graduated more than 190,000 students for work in the automotive, diesel, collision repair, motorcycle and marine industries. Offering a variety of technician training programs across 12 ACCSCaccredited campuses, UTI has a consolidated graduate employment track record that consistently exceeds the average rate of employment among all ACCSC-accredited institutions. Four out of five UTI graduates find employment in their fields of study within one year of graduation. UTI campuses that have been honored with the ACCSC School of Excellence Award include NASCAR Technical Institute (2013-2014); UTI Lisle, IL, (2013-2014); UTI Exton, PA., (2011-2012); UTI Glendale Heights, IL., (2009-2010) and UTI Avondale (2008-2009). Additionally, UTI’s Sacramento campus was honored as a School of Distinction for the 2007-2008 academic year. “UTI is thrilled to be acknowledged again with ACCSC’s highest institutional achievement award and we congratulate all our students and staff for their commitment to excellence,” added McWaters.

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 7

Continued from Cover

zuela added, “NABR is very excited to work with Windy and Time Shaver Tools, a cutting-edge auto body shop tool and supply company. They recognize the value of using the VRS survey technology as an independent, third-party system, all for the purpose of helping Southern California shops know their market better and what rates to charge to earn a fair, reasonable and sufficient profit.” Southern California survey results at the state level are open and available for all to see at no charge. VRS subscribers gain even greater visibility to labor rates by many factors including mileage range, training, equipment, certifications and vehicle make. According to NABR, this enables shops to better define their geographic market and find apples-to-apples comparisons to their own shop, thus finding a truer, more appropriate market labor rate range for their individual shop than the one so-called prevailing rate. The VRS Labor Rate Survey is now available to all shops in California. The Northern California survey is sponsored by Dave & Skip Creech from Quality Body Works in Eureka, CA. The Southern California survey is sponsored by Time Shaver Tools of Orange, CA. To see the VRS, any shop can request a free, no-obligation demo to see how the system can help them raise and collect higher rates and generate greater profits. Other states currently running the VRS Labor Rate Survey include Florida, Georgia, Idaho, Indiana, New Jersey, North Carolina, Ohio and Texas. See related story page 15 this issue.

in Dallas, Texas, the Long Beach campus will largely serve a commuter population with class schedules that allow students to work while they go to school. Centrally located and near numerous freeways, the Long Beach campus is convenient for students, especially those for whom the Rancho Cucamonga campus is too far away. “We are excited about the reception and support we have received from the community and local educators,” Hohl said. “Student applications are ahead of schedule; we needed to open an additional session for our first classes.”

Labor Rate Survey

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Like all UTI campuses, Long Beach will be supported by local employers and major transportation manufacturers. UTI has training partnerships with manufacturers of more than 30 of the nation’s leading transportation brands, including BMW, Nissan, Ford, General Motors, Mercedes-Benz and Peterbilt, as well as with NASCAR. These partners help guide UTI programs, invest in its facilities and give UTI students the chance to work with the most current technology and tools. As a result, students leave UTI with the knowledge and skills that employers want. Students who complete the core auto or diesel program can study for manufacturer-specific certifications at

Long Beach or any of UTI’s other 11 campus locations. The nine-week Nissan Automotive Technician Training program at the Long Beach campus will teach students to troubleshoot, repair and maintain chassis, climate, drive train, electrical and engine systems for Nissan and Infiniti vehicles when it begins in 2016. Long Beach Mayor Robert Garcia will lead other policy makers and leaders, education officials and transportation industry executives, to commemorate the opening of the new campus at a special ceremony on August 18, 2015, while a formal community grand opening is being planned for October 2015. Tours of the new facility will be offered to the public beginning August 24.

East Bay CAA Enjoys a Day of Golf and Giving Back by Ed Attanasio

Former President Gerald Ford said, “I know I am getting better at golf because I am hitting fewer spectators.” Fortunately, no spectators were injured at the East Bay California Autobody Association’s (CAAEBC) 29th annual golf tournament at Diablo Creek in Concord, CA on July 18, but

J.R. Romero from Tri-City Auto Body, Chavin Prum (LKQ), Marcus Watkins (TGIF Auto Body) and Pat were the tournament’s second place mix scramble winners. Credit: Rachel Govette

a few golfers did have to yell “Fore!” or “Duck!” after sending balls into the gallery, as well as sand traps, water hazards and the surrounding foliage. Sixty-seven 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 associ-

ates. Using a scramble format, the day featured an intriguing mix of beginners, amateurs and weekend warriors as they enjoyed great weather, food and libations. CAA-EBC President Tiffany Silva was pleased with the results of the day and thankful for the entire tournament’s sponsoring organizations. “The weather was beautiful and not too hot, which

tournament has always been a rule and makes the event so not the same foursome will win each year,” Silva said. “We had hole-in-one contests at several holes, celebrity Rich Evans and giveaways from the vendors. The golfers and volunteers enjoyed a steak BBQ after the tournament and the night was ended with raffle prizes galore even including a

around the holidays. “I am so proud of our association putting on this tournament each year,” she said. “We put in so much time and effort into this tournament, which is well worth it when you see shops and vendors coming together for a fun day of golf and a great cause!” On September 22, the CAA-EBC will be hosting a meeting featuring Jill

Celebrity Rich Evans was sponsored by LKQ to attend the tournament. Credit: Rachel Govette

Jonathan Diaz from Tri-Valley Auto Body, Mia Cha (Hanlee’s Automotive Group), Danny Saalfrank (TGIF Auto Body) and Johnny Petros (George V. Arth & Son) were the first place mix scramble winners. Credit: Rachel Govette

Tim Cha from Hanlee’s Automotive Group, Dennis Thompson (TGIF Auto Body), Mace Perry (Dublin Chevrolet) and Todd Schear (Future Ford of Concord) captured third place in the mix scramble. Credit: Rachel Govette

made it a magnificent day to raise money for local automotive tech schools–Contra Costa College, College of Alameda, Eden Area ROP, Tri Valley ROP, Mission Valley ROP,” she said. “Our sponsor support was awesome as always and the tournament would not be possible with them! We had support from so many vendors including our major sponsors who were Dublin Chevrolet Cadillac Buick GMC Kia, LKQ/Keystone, and PPG. “The mixed scramble format for the

GoPro Camera and a $1,000 gift card donated by Hertz and PPG! Winner of the longest drive was Tiffany Cha and Tim Brusher won the putting contest.” Silva is already looking forward to next year’s tournament, which has become the organization’s signature event, along with their annual Toy Truck Customization Competition, to be held

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Mike’s Auto Body Receives Farmers Insurance Regional MSO Group of the Year Award

by Ed Attanasio

For the second straight year, Mike’s Auto Body has been awarded the Farmers Insurance Regional Multiple Shop Organization (MSO) Group of the Year award for its work in 2014. The award, which

recognizes the auto body company for its consistent delivery of outstanding customer service, short cycle times, overall performance, commitment to innovation, and staff professionalism, was presented at Mike’s Auto Body’s Corporate Headquarters in Concord, CA earlier this summer. “Winning this award is the culmination of our entire team’s effort,” said Dane Dearlove, marketing and sales manager for Mike’s Auto Body. “It is our team’s belief that we have a true interest with the insurers we work with. We do everything we

can to ensure that all customers have the same ‘beyond expectations’ experience at any one of our 13 stores. We truly believe in being one team with one mission and this starts with the Rose family that owns the company. This type of commitment runs through our entire

From left, Steve Kelly, Ragen Rose and Brennan Rose from Mike’s Auto Body and Jim Stokes from Farmers Insurance at Mike’s Auto Body’s Corporate Headquarters in Concord, CA with their second straight Farmers Insurance Regional Multiple Shop Organization Group of the Year award

CREF Adopts New Mission to Connect Students With Career Opportunities; Organizes Career Fair in AZ & UT

The Collision Repair Education Foundation (CREF) announced a new mission: “Supporting collision repair education programs, schools, and students to create qualified, entry-level employees and connect them with an array of career opportunities.” In addition to seeking monetary and product donations to support high school and college collision school programs, students, and instructors, the Education Foundation will take a more active role in helping ensure that students graduate with the entrylevel skill sets the industry is seeking and connect these students with industry employment opportunities. To bridge the gap between graduating collision students and industry employers, the Education Foundation will be organizing a career fair tour this fall and next spring, which will be available to all industry members to participate. The geographic markets the Education Foundation is targeting for the initial career fair tour include: Atlanta, Denver, Phoenix, Seattle, Orlando, Salt Lake City, Chicago, Dallas, San Antonio, Houston, Knoxville, Memphis, and Nashville. Vice President of Industry Relations at AudaExplore, a Solera Com-

pany, and Board of Trustees Chair of CREF Rick Tuuri, noted, “The collision industry should be proud of the fact that they have provided over $35 million in donations to high school and college collision school programs since 2009 when the foundation began its philanthropic focus. While those donations have made a significant impact on the instructor’s abilities to provide a quality technical education, to help address the industry’s need of properly trained entrylevel collision students, the board of trustees has approved this new career focus for the organization.” Those interested in joining the CREF in supporting local collision school programs and participating in the upcoming career fairs, should contact Director of Development Brandon Eckenrode at: Brandon .Eckenrode@ed-foundation.org/ 847-463-5244.

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organization.” “Farmers Insurance is pleased to present Mike’s Auto Body the 2014 Regional MSO Group of the Year award,” said Jim Stokes, MSO claims supervisor for Farmers Insurance. “This award demonstrates that Mike’s Auto Body continues to provide exemplary customer service and timely quality vehicle repairs to customers.” In other news, Mike’s Auto Body has begun expansion of Mike’s Auto Body recently broke ground for an its shop on Napa Street in Napa, expansion of its Napa, CA location, adding new CA, adding 1,950 square feet of offices, a new reception area and on-site parking new offices including a new lobby and on-site parking. The project hood. It’s going to be nice and we’re deis slated to be complete in approxi- lighted to be able to provide jobs that mately eight months and the new help the local economy and the combuilding’s main entrance will be lo- munity.” Since the first shop opened in cated on Vallejo Street with access to and from Soscol Ave. The current 1972, Mike Rose and family have built shop is located at 804 Napa Street and Mike’s Auto Body into a 13-shop orwill continue to be used as a produc- ganization, with two locations in Concord and Walnut Creek, and one in tion facility for the company. Mike Rose is pleased about the Lafayette, Pittsburg, Antioch, Brentexpansion to his 13th location, opened wood, Richmond, Fairfield, Napa, San three years ago. “We’re excited about Ramon and Fremont. the new shop and how it’s going to help our operations to become even more efficient,” he said. “I also believe the new www.autobodynews.com structure will enhance the neighbor-

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Axalta Coating Systems and Ducks Unlimited Paint a Bright Future for Wetlands

Axalta Coating Systems, a global supplier of liquid and powder coatings, has joined Ducks Unlimited as its newest corporate partner. Axalta has continued to make protecting and conserving natural resources a corporate priority through a five-year, $10 million wetlands conservation program with Ducks Unlimited.

“We are excited and grateful to have Axalta as DU’s newest corporate partner,” said Ducks Unlimited CEO Dale Hall. “With their generous support, we can continue our goal to Rescue Our Wetlands.” “Axalta and DU will both benefit from projects that conserve wetlands and natural resources,” said Axalta Chairman and CEO Charlie Shaver. “Axalta is committed to engage in sustainable manufacturing and practices, and to provide environmentally responsible products and application systems to our customers around the world, including expanding the availability of waterborne

coatings. With sustainability and conservation at the forefront of our business, we look forward to doing great work with Ducks Unlimited.” Axalta’s coatings can be seen on cars and commercial vehicles ranging from trucks and buses to ATVs and construction equipment, protecting against corrosion, adding to vehicle life and conserving resources. The company said that sophisticated engineering is used to produce coatings in sustainable ways and also enables Axalta’s customers to save energy and reduce CO2 and VOC emissions. Coatings are found in less obvious places as well, helping to sustain product life cycles. Coatings protect oil pipelines from corrosive underground environments. Building facades, lawn furniture and playground equipment rely on coatings to protect them from harsh climates. Electric generators run more efficiently when coatings insulate them from high temperatures. Now Axalta is helping to protect and sustain North America’s wetlands as well. DU Chief Conservation Officer Paul Schmidt said the partnership with Axalta fits with DU’s Rescue Our Wet-

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lands campaign. “We will start with priority wetland projects under the umbrella of the Rescue Our Wetlands campaign, focusing specifically on the Gulf Coast and Great Lakes Initiatives,” he said. “Our biologists and engineers will deliver crucial restoration work in these important breeding, migration, and wintering areas which are near some of Axalta’s major U.S. manufacturing facilities.” Waterfowl wintering on the Gulf Coast will also benefit from Axalta’s support. Through this partnership, more than 15,000 acres of threatened coastal prairie wetlands and marshes will be targeted by DU for restoration, enhancement and maintenance. “Helping sustain natural resources is critical to Ducks Unlimited, Axalta and the people we touch,” said DU Chief Fundraising Officer Amy Batson. “We see this partnership growing and developing into a significant force for continental conservation.” For more information, visit axaltacoatingsystems.com or follow @axalta on Twitter and LinkedIn. For more information about DU work, visit www.ducks.org; connect on facebook.com/DucksUnlimited; follow tweets at twitter.com/Ducks Unlimited; and watch DU videos at youtube.com/DucksUnlimitedInc.

ASA-AZ Verde Valley Chapter Meeting Hosts Andy Jolley by Cass Heckel, Research Assistant

ASA-AZ Verde Valley held their Chapter meeting Aug. 18 with about 14 members in attendance. Speaker Andy Jolley, Attorney with the Prescott Law Group, provided valuable information about the court process, small claims as well as justice court. There were many questions from the group, so the presentation took up most of the meeting, according to Executive Director Luz Rubio. Attorney Andy Other inforJolley speaks to mation presented ASA-AZ members during the meeat regular meeting ting included uplocation HEFR coming training (Hansen Enterprises available for both Fleet Repair) on technicians and August 18 service writers; as well as the date and location of next year’s ASA Arizona Training Expo which will be held June 10–12, 2016 at Fort McDowell Casino.

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 13

Mike Chaney Defeats John Mosley for MS Insurance Commissioner in GOP Primary by Clay Chandler, The Clarion-Ledger

Incumbent Insurance Commissioner Mike Chaney likely secured another term on August 4, defeating Clinton businessman John Mosley in the Republican primary. Chaney and Mosley had sparred

over insurers’ ability to dictate vehicle repairs at body shops. Mosley, whose family started Clinton Body Shop almost 40 years ago, said a series of complaints he and other body shop owners had taken to Chaney’s office regarding insurance companies moving the target as to what they would

and would pay for was the primary reason he ran to unseat the incumbent. Neither returned cell phone messages on the night of August 4. Mosley’s crusade began right after a 2013 hailstorm did millions of dollars in damage to vehicles and buildings in the Jackson area. Insurers were less

than clear about what repair procedures were covered, Mosley said, an issue he took to Chaney in a meeting attended by representatives of State Farm Insurance, the company Mosley labeled as the worst offender. The summit seemed to iron out the issues, but it wasn’t long before the

Autobody News reached out to John Mosley on August 5 and August 13 for further comments on the campaign results:

“I was strong as long as it was he and I involved, but when State Farm started sending out letters and having agents call their insured, things went south.” Mosley went on to explain, “A few weeks before the election, a good friend, who is a State Farm agent, called to tell me he had just left a meeting of agents called by State Farm. The topic of the meeting was the future of State Farm, but he said it quickly turned to three hours of this is John Mosley, this is what he has done (my lawsuit in the 90’s and the MDL) and this is what he might do if he is elected. The agents were told that if I was elected, State Farm would leave the state of Mississippi. These agents were told how they could help the effort to defeat me and save their businesses by donating to the State Farm PAC and by talking to their insureds about

the election. They were probably not the only company working against me, but they were the one I received the letters and phone calls about. At any rate, I wonder what State Farm didn’t want me to know as the commissioner.” Mosley said he sent Insurance Commissioner Mike Chaney a letter congratulating him and asking if they could meet to discuss some of the insurance issues consumers face on Mississippi. As of 8/13, he had not received a response. “I shined a light on many issues and the commissioner will have to think about what he should do. If he doesn’t work harder for the people, I will be back in four years,” said Mosley. “In the meantime, I intend to help spread the word to the citizens of Louisiana [so

14 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

they know] to expect this type of behavior intent on interfering with Matt Parker’s campaign.” Autobody News reached out to Mississippi State Farm media contact, Roszell Gadson, who stated, “State Farm, as a company, does not support state and local candidates for office. Our independent agents are free to engage in the political process as they see fit.” Jack Weatherly of msbusiness.com. reported that Chaney also put nearly three times as much funding toward his campaign as Mosley. Out of the $448,121.11 in total expenditures, $279,180 came from campaign contributions, while $98,959.88 was a carryover from his 2011 campaign. Mosley contributed $158,000 from his own pocket.

insurer reverted. Making the problem worse was insurers’ ignoring an opinion from Attorney General Jim Hood that Mosley said affirmed his position. Chaney countered with data his office gathered after the hailstorm that showed that, out of 100,000 claims filed (about 60,000 of which were for automobiles) a total of “50 or 60” complaints arose, all filed by three body shops, he said. He said last week that further investigation into the issue was a possibility, but any John Mosley (File inquiry would not photo), owner of start until after TuesClinton Body Shop, day’s primary. ran for Insurance Commissioner Who did and did of Mississippi. not appear on the candidates’ campaign finance reports became an issue, too. Mosley said he would not accept contributions from the insurance industry because he questioned the ethics behind money given by those the commissioner would regulate. “How can it not?” Mosley responded when a reporter asked if he thought Chaney was influenced by insurers’ donations. I see that campaign contribution, what am I going to think?

That cloud of doubt is hanging there.” Chaney said he regulates the industry “with a pretty strong hand. Most of mine comes from agents who have a vested interest in rates not going up. For 35 years, Mosley’s run a body shop, and most of his money comes from payments to consumers from insurance companies to get their cars fixed. Mississippi’s InSo indirectly, he’s cumbent Insurance Commissioner Mike getting insurance Chaney. Credit: The money.” Clarion-Ledger Chaney did not respond to a cell phone message on the night of August 4. Mosley said on that night if he had it to do over again, he would have started his campaign earlier. He announced his run in February. “I ran hard and talked about the issues. I congratulate him and these issues I brought up are issues that affect everybody in Mississippi. I’ll be right back four years from now if things don’t change.” We would like to thank The Clarion-Ledger for permission to reprint their article.

How the National Autobody Research Labor Rate Survey Plans to Change the Industry by Victoria Antonelli, Online Editor

National Autobody Research (NABR) has been facilitating ongoing labor rate surveys to body shops across the country in hopes that the data will “restore the free market system for labor rate pricing in the auto collision repair industry.” This will enable sufficient profitability for shops, and help ensure that customers receive the safest repairs, according to the organization’s website. Autobody News reached out to Sam ValenzueSam Valenzuela, la, NABR presiNABR president dent, to learn more about the goals of the survey, how it works, and how the results are panning out. According to Valenzuela, the Variable Rate System (VRS) surveys shops nationwide for their posted labor rates, including rates for body, paint (refinish), frame, aluminum body, aluminum structure, mechanical, paint and materials rate, and storage. “When labor rates for bicycle

repairmen are 40 percent higher than for auto collision repair technicians, something’s wrong,” he said. As of today, the VRS has collected rates from shops in 46 states. “Nationwide, the average price for body and paint labor is $50/hr, and for paint and materials is $33,” said Valenzuela. “While this is only an average (some shops are higher and some are lower), the VRS actually reports a range of market-based labor rates using statistical standard deviations to define various levels of rates from low to high.” He said the reason the VRS surveys are continuous is so shops can be confident that they are always receiving the most current results. Another differentiating factor is that the VRS survey “enables shops to find labor rates for different types of shops, based on levels of training, certifications, and investment in equipment & tools,” said Valenzuela. As expected, more highly certified shops tend to have higher posted labor rates. The Autobody News October 15 issue will feature an indepth article on labor rate surveys in all five regions.

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 15

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An Open Letter From Charles Bryant to the New Jersey Collision Repair Industry Dear Collision Shops:

I just don’t get it. Like many others in the collision industry across the country, I fight for the betterment of the collision industry on a daily basis. Like myself, collision industry advocates across the country all attempt to determine what Charles Bryant, the biggest probAASP/NJ Executive lems are and then Director (file photo) look for solutions for those problems. Based on my own personal experience and all of the research from as far back as I can remember, I can safely conclude that the number one problem in the collision industry is directly tied to the artificially suppressed labor rates. As a result, collision shops are being forced to repair expensive and technical automobiles for labor rates lower that lawnmower and bicycle shops are charging and being paid to repair lawnmowers and bicycles. Labor Rates Clearly the #1 Problem of

the Collision Industry I don’t think I am mysteriously exposing the best kept secret in the collision industry by pinpointing the number one biggest problem in the collision industry is artificially suppressed labor rates. In fact, I am of the opinion that the majority of the collision industry is well aware that artificially suppressed labor rates are the collision industry’s number one biggest problem. All other problems seem minimal when compared to the labor rate issue. For years, people across the country have tried to address and resolve the artificially suppressed labor rate issue in every possible way, but to no avail. No matter what was been tried, nothing has worked. As the result of the extreme effort being directed at addressing and resolving the artificially suppressed labor rate issue, finally a system has been created that has the potential to actually solve this chronic issue. I am speaking of the Variable Rate System (VRS), which contains among many of its important elements in its technology, the VRS Real-Time Labor Rate Survey. This is where the VRS solution begins!

Female Car Owners More Tech-Ready Than Men According to National Consumer Survey

Women tend to believe in the technology and safety potential of connected vehicles and autonomous driving more so than men, according to the annual Jabian Automotive Industry Survey. A survey of 1,045 North American drivers identified preferences for vehicle technology and automotive services. It also shed some light on the future of automotive services and car buying. Findings from the Jabian Automotive Industry Survey, fielded in July and August 2015, are available at www.jabian .com/automotive Men and women tend to have similar decision criteria when it comes to selecting an automotive service provider. More than half of respondents said they consult with a friend or family member for referrals. Yet when it comes to the automotive service itself, most women (44%) take their vehicles in to a dealership, followed by a private mechanic (37%) or a nationally branded repair shop (17%). However, when asked about who they trust, 50% of women said a private mechanic, with dealerships at 40 percent. Nearly half of female respondents (45%) said they believe they know more about their car than the

mechanic gives them credit for. More than a quarter (26%) feel they aren’t treated equally to male customers. When it comes to technology, 38% of women believe driverless cars are the way of the future, compared to only 21% of men. More than half of women (54%) would pay for an app that allows their car to communicate what’s wrong with it prior to service, compared to only 38% of men. “When diving into the numbers, we see that women want to utilize technology for convenience and empowerment, while men tend to favor its use for efficiency and entertainment,” said Jenni Crenshaw, executive director at Jabian Consulting. Nearly half (47%) of women reported feeling comfortable buying a car completely online, which was more than the 40% reported by men. The biggest hesitation among both men and women was the desire to see the car in person before purchase. When evaluating alternative fuel cars or electric vehicles, 45% of women and 35% of men would consider it for their next purchase. Higher upfront costs and long-term maintenance were the two most cited concerns about buying an electric or alternative fuel vehicle.

18 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

A System Surfaces to Solve the Labor Rate Problem The VRS Real-Time Labor Rate Survey is a survey system that will continuously measure labor rates in New Jersey or anywhere else, in real time, and determine the range of market rates based on a shop's location, training, certifications and actual cost of doing business. The VRS Survey presents the opportunity the collision industry has have been waiting for. With the VRS Real-Time Labor Rate Survey, all collision repairers in New Jersey or anywhere in the country can make their voices heard and help restore the free market to labor rate prices in their industry.

AASP/NJ Sponsors the Variable Rate Survey The AASP/NJ saw this opportunity and has now sponsored the VRS RealTime Labor Rate Survey to make it possible for New Jersey Collision shops to address and solve the artificially suppressed labor rate issue here in New Jersey. All the shops have to do is participate and filling out the survey is FREE. The VRS Survey is designed to allow shops to enter two sets

of labor and material rates, (1) their door or posted rates, and (2) the rates they would charge if insurers did not adversely influence their rates. The more shops that participate, the more accurate, representative, and statistically valid, the market rate ranges calculated by the VRS become.

Shops Must Participate for the System to Work There are two levels of participation. One is to subscribe to the Variable Rate System and pay a monthly fee to be able to go in and do virtually countless searches in a market based on the shop’s location and the shop’s training, certifications, and equipment. Included in the monthly fee, subscribers will receive a calculation of labor rates based on their actual cost of doing business. That’s right! As the result of the AASP/NJ Sponsoring the VRS RealTime Labor Rate Survey, shops now have a valid method of determining a fair and reasonable labor rate range for their services and finally actually supply documentation to support the rates charged, all of this included in the See Letter from Charles, Page 23

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PPG Pickups Drive off with Honors

The annual PPG Dream Car awards were presented at the Goodguys 18th PPG Nationals held at the Ohio Expo Center in Columbus, July 10-12. A 1955 Chevy pickup owned by Joe

1940 Ford Pickup

and Josh Bailey of Maryville, TN, and a 1940 Ford pickup owned by Robert Anderson of Savannah, GA stood out among the competition. The three-day PPG-Goodguys event displayed more than 6,200 custom cars and trucks and attracted over 75,000 auto enthusiasts. The PPG Dream Car awards are given to the two vehicles (cars or trucks) that best exhibit color, design, gloss and execution

in a paint job. Joe and Josh Bailey, a father-son team, presented their flawless ’55 Chevy pickup. The truck was acquired by an uncle in 1972 and handed down

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through the family. The Baileys took possession of it in March 2014 and worked evenings and weekends in their home shop to give the Chevy its redo. They achieved the award-winning finish using PPG’s DELTRON® 2000 DBC Basecoat and DCU2002 CONCEPT® High Solids Polyurethane Clear with PPG colors Fender Guitar Surf Green and 1957 Chevrolet India Ivory. Robert Anderson entrusted his

Ford pickup to Steve Legens at Legens Hot Rod Shop in Martin, TN. The shop customized and sandblasted the body to repaint it a custom-mix glossy green. Legens and painter Keenan Hailey

chose PPG’s ENVIROBASE® High Performance waterborne basecoat along with water-compatible GLOBAL REFINISH SYSTEM™ D8152 Performance + Glamour Clearcoat and D8372 Slow Hardener to earn a PPG Dream Car award. PPG is the official paint supplier to the Goodguys Rod & Custom Association. For information, call (800) 647-6050 or visit ppgrefinish.com.

PPG Introduces DELTRON DPS3105 Primer Surfacer

PPG announced that DELTRON® DPS3105 V-PRIME™ Quick Prime Urethane Surfacer, a gray speed primer designed for spot and panel repairs, is now available. The new primer surfacer offers film build, fast dry-to-sand times and resistance to film shrinkage. “DPS3105 is a valuable addition to the Deltron brand,” said Jennifer Boros, PPG marketing director, collision segment. “It provides PPG customers with fast air-dry performance for excellent cycle-time efficiency with high-quality results. Production-focused collision centers carrying out premium-level refinish work will appreciate this new product’s capabilities.” According to Boros, DPS3105 features dry-to-sand times taking as little as 30 minutes and a high film build of 2.0-2.5 dry mils per coat. She said the primer is easy to apply and sand. It is rollable, can be wetsanded, and allows direct application of a basecoat. DPS3105 can be used with Deltron DCX3030 Hardener and the new DCX3035 High Temperature Hardener. For information, call (800) 6476050 or visit www.ppgrefinish.com.

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 21

Continued from Cover

State Farm Forces

“They force these parts on us. They make us use them. They’ve gotten to where now they tell us where to buy the parts and who we have to buy them from,” said Elkins. Elkins said the damaged parts in the vehicle are necessary in running the brains of the car. “When the insurance company wants us to use reconditioned parts, that’s a part that’s already been damaged, already been broken and fixed. That’s not what was on this car when it came in here. I mean for that matter, I could fix what was on it. I mean that’s not what we should do. We should replace these parts with new parts. That’s what was on it when it came in. That’s what should be on it when it leaves,” said Elkins. Elkins said after-market parts depreciate the value of the vehicle, and he said the law states it could potentially affect the vehicle warranty as well. Kia, the dealership in the specific case, cannot legally void the 10 year, 100,000 mile warranty, but they can

deny the warranty saying any damage was caused by the after-market products. “Any subsequential damages caused by these parts will be void, and I mean the dealership is going to look for reason not to repair something under warranty. That’s just something they do,” said Elkins. In his push to get new parts approved for his customer, he said he called State Farm and recorded the conversation. In one recording he provided to the Investigators, the State Farm representative told him, “Her policy does allow us to use non OEM parts or recycled parts on her automobile, but we do tell her if she does want to use OEM parts, she does have the option to pay the difference.” Elkins said he’s eating the difference. He said he orders original parts even if it costs him more, but State Farm only pays for what a recycled part would cost. Elkins showed the Investigators receipts where he ordered new parts. A new condenser cost him $539.62, but State Farm only compensated him for what an after-market part would cost with $133.99. Elkins paid $368.12 for

22 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

a new radiator, and State Farm paid him $204.29. Sam Pleasant with the Louisiana Attorney General’s Office said they filed suit against State Farm last year in August. “State Farm has a pattern of deceiving consumers and also repair shops and primarily deceiving the consumers by not allowing them to choose which parts they are going to use to have their autos repaired,” said Pleasant. She said consumers are deceived, but in the recorded conversation with State Farm, the representative told the body shop owner that they gave the customer a choice of paying more for original parts. Pleasant said the body shops have contracts with State Farm where they’re forced to use cheap and often unsafe parts. She said they’ve found they often use junkyard parts or overseas parts that do not meet manufacturer standards. “Case after case, we found that insurance companies are putting cost and getting these repairs done quickly over consumer choice and safety,” said Pleasant. State Farm sent a statement:

“A vibrant, profitable auto collision repair industry is in the interest of State Farm. At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe repairer profitability and proper auto repairs that are reasonably priced can both be achieved. Claimants and our customers choose where their vehicles are going to be repaired. We provide information about the benefits our Select Service program offers while at the same time making it clear they can select which shop will do the work. Safety: The State Farm mission is to serve the needs of our customers, and we have a long, proud history of achievements in advancing research in vehicle safety. (To learn more, go to: www.Good Neighbors.com.)” Thank you to wafb.com for permission to reprint this article.

@autobodynews Accept no Substitutes!

Continued from Page 18

Letter from Charles

monthly subscription fee. The other level of participation is to simply go in and enter the shops’ rates in VRS RealTime Labor Rate Survey without actually subscribing to the system. This is FREE! The shop can then view the state and regional market rate ranges without incurring any cost at all.

Wake-Up Call to the Collision Industry This is an opportunity for the collision industry to address and solve the number one problem of the industry: the Artificially Suppressed Labor Rates. Opportunity is defined as a set of circumstances that makes it possible to do something. Some say that opportunity only knocks once. I am not sure that is correct, but I am sure that an opportunity as great as this opportunity does not come every day and this is the first opportunity that has a realistic chance of addressing and solving the problem of Artificially Suppressed Labor Rates. That is why the AASP/NJ decided to sponsor the Variable Rate Survey. The Insurance Industry has worked hard for years to artificially suppress the labor

rates through steering and playing hard ball with shops and have been able to keep the rates artificially suppressed for as long as I can remember. No matter how the collision industry tried to solve the problem nothing has worked. As a result, the collision industry has a tendency to ignore any new efforts to solve this problem because so many attempts have failed. I am calling on the collision industry to WAKE UP and don’t write off this opportunity.

If You Sit on Your Hands After This, Shame on You The AASP/NJ has made it possible for collision shops in New Jersey to go into the Variable Rare Survey and enter their labor rates and then download labor rate survey results for free that can be used to support the shops’ arguments for higher rates when an insurer attempts to limit the labor rate to what we all know to be an artificially suppressed labor rate. Once again, this is an opportunity that has the potential to solve the biggest problem in the industry and then keep it from happening again because the survey is live. That means that the shop can go back in and update its prices when the cost of business goes

up and the results show up in the survey immediately. It is only too often that collision shop owners claim they are too busy to get involved or too busy to participate in things like this. It is those same shops that call the AASP/NJ Hotline and complain that the Association is not doing anything for them. Well, to be quite frank, that line is getting old. It only takes a few minutes to fill out the VRS Real-Time Labor Rate Survey and it is the efforts of the AASP/NJ that have made it available to the collision industry in the state of New Jersey so if you are a shop that is still not willing to take advantage of this great opportunity then all I can say is, SHAME ON YOU!

Stop What You Are Doing and Fill out the Variable Rate Survey NOW! I just don’t get it when certain shop owners whine and complain about a situation and when a solution is presented they choose to ignore it or are not willing to put in a little effort to contribute to the resolution of theproblem. It takes the wind out of anyone’s sail when this happens. So, once again, I am calling on every member of the collision industry in New Jersey, AASP/NJ Member or not, go on the

National AutoBody Research website, and fill out the VRS Real-Time Labor Rate Survey. If the members of the collision industry will unite on this issue, I will be willing to bet that we can put an end to the long overdue issue of artificially suppressed labor rates.

How to Fill out the VRS Real-Time Labor Rate Survey To fill out the Variable Rate Survey, go to https://www.surveymonkey.com /s/AASP-NJ-VRS-Gunder-Survey If you would like to discuss anything in this message, please feel free to give me a call directly on the AASP/NJ Hotline at 732-922-8909. If you have questions or need assistance with completing the survey, please feel free to contact the creators of the Variable Rate Survey: Richard or Sam Valenzuela at 520-971-6110. I would like to thank you all in advance. I know this plea will result in those that haven’t yet filled out the VRS Real-Time Labor Rate Survey doing it right away. Please don’t let me down. Thank you, Charles Bryant AASP/NJ Executive Director

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 23

IIHS Tests Steel and Aluminum Ford F-150 Crew Cab; Changes in the Works After Extended Cab Results The aluminum-body 2015 Ford F-150 crew cab swept the Insurance Institute for Highway Safety’s full slate of crashworthiness evaluations to qualify for a 2015 Top Safety Pick award. The F-150 extended cab turned in a good performance in four of five assessments but stumbled in the small overlap front test. The results are the first ratings for large pickups in a group the institute is evaluating this year. The F-150 crew cab, which Ford calls the SuperCrew, earned good ratings for occupant protection in all five IIHS crashworthiness evaluations— small overlap front, moderate overlap front, side, roof strength and head re-

The crew cab’s occupant compartment resisted intrusion in the small overlap front test. The safety cage is largely intact

straint evaluations. The extended cab, or SuperCab, earns good ratings in the moderate overlap front, side, roof strength and head restraint evaluations but just a marginal rating for occupant protection in a small overlap front crash. The institute picked the F-150 to test first because it is not only the bestselling vehicle in the U.S. but also the first mass-market vehicle with an allaluminum body. “Consumers who wondered whether the aluminum-body F-150 would be as crashworthy as its steel-body predecessor can consider the question answered,” said David Zuby, IIHS chief research officer. Both the crew cab and extended cab F-150 pickups are rated basic for front crash prevention when equipped with Ford’s optional forward collision warning system, which meets performance criteria set by the National Highway Traffic Safety Administration (NHTSA). The F-150 crew cab isn’t eligible for Top Safety Pick+ because it lacks an autonomous braking system. Vehicles that earn a good or acceptable rating for small overlap pro-

tection and good ratings in the moderate overlap front, side, roof strength and head restraint evaluations qualify for Top Safety Pick. To earn Top Safety Pick+, vehicles also must have an available autobrake system that earns an advanced or superior rating.

Why two models were evaluated For vehicles with multiple body styles, the institute typically evaluates the one with the biggest sales. Initially, only the F-150 crew cab was on the schedule. “After we tested the crew cab in the spring, questions were raised about the extended cab’s ability to match the crew cab’s good small overlap performance. We did some initial analysis and decided to test the extended cab, too,” Zuby said. While a departure from the institute’s usual practice, the F-150 merits a closer look. “For starters, there has been lots of buzz around the release of the first aluminum-body pickup and how it would perform in crash tests,” Zuby said. “What’s more, even the lower-selling extended cab sales top those of many of the passenger vehicles we rate.” To provide consumers with more safety information, IIHS plans to rate multiple variants of the other pickups slated for tests this year.

Striking differences in small overlap test In the small overlap front test, each F150 traveled at 40 mph toward a fivefoot-tall rigid barrier. Twenty-five percent of the pickup’s total width struck the barrier on the driver side, where a Hybrid III dummy representing an average-size man was positioned at the steering wheel. The test replicates what happens when the front corner of a vehicle collides with another vehicle or an object such as a tree or a utility pole. The two versions of the F-150 had markedly different outcomes. “In a small overlap front crash like this, there’s no question you’d rather be driving the crew cab than the extended cab F-150,” Zuby said. The crew cab’s occupant compartment remained intact. The frontend structure crumpled in a way that spared the occupant compartment significant intrusion and preserved survival space for the driver. Measures recorded on the test dummy indicated low risk of injuries to the dummy’s head, chest, legs and feet. The front and side curtain airbags

24 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

worked together to keep the dummy’s head from contacting injury-producing stiff interior structures or outside objects. The dummy’s head loaded the front airbag, which stayed in place until the dummy rebounded.

In the test of the extended cab, there was significant intrusion. The steering wheel is close to the dummy’s chest, and the dummy’s legs are jammed against the instrument panel

The extended cab is a different story. Intruding structure seriously compromised the driver’s survival space, resulting in a poor structural rating. The toepan, parking brake and brake pedal were pushed back 10-13 inches toward the dummy, and the dashboard was

jammed against its lower legs. Measures recorded on the dummy indicated there would be a moderate risk of injuries to the right thigh, lower left leg and left foot in a real-world crash of this severity. The steering column was pushed back nearly eight inches and came dangerously close to the dummy’s chest. The dummy’s head barely contacted the front airbag before sliding off to the left and hitting the instrument panel. “Ford added structural elements to the crew cab’s front frame to earn a good small overlap rating and a Top Safety Pick award but didn’t do the same for the extended cab,” Zuby observed. “That shortchanges buyers who might pick the extended cab thinking it offers the same protection in this type of crash as the crew cab. It doesn’t.” The institute has briefed Ford on the results. In a statement, the manufacturer said, “Ford is evaluating possible changes to the extended cab for small offset performance.” Since the F-150 is a unique vehicle with its aluminum body, the institute also looked at repair costs for the 2015 model. Damage to aluminum body parts See IIHS Tests, Page 48

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 25

peak, Quint said Porter-Sprague had 22 employees and annual revenue of more than $1 million. Now, maybe Quint can adjust his back, and we kind of went from there,” body clock: “I’ve been getting up at 4 Quint said. forever. Maybe I can sleep in until 7 Now, Quint says, it’s time to move now. I tried it the other day and still on. He closed the doors for good in mid- woke up at 3:45.” July, auctioned off much of the remainQuint says he’s walking away ing repair/body shop equipment last with decades worth of fond memories. week and must be out by the end of this He’s worked on everything from Ford month, clearing the way for Sacramento Model T’s to modern, computer-chipauto dealership Mel Rapton Honda to laden luxury cars. Arguably, over eight open a downtown service center. decades, he’s put his hands on more His clients included generations motor vehicles than any other living of city officials, state lawmakers, se- human being in the region. rious car collectors and the occasional The shop’s reputation for knowing superstar singer-songwriter. At its the inner workings of decades-old cars was respected by generations of Sacramento-area auto enthusiasts. “They were one of the places in town where people with old cars could take them with confidence. A lot of the old-car community in town used them,” said David Felderstein, a 30-year customer and longtime auto restorer who sits on the California Automobile Museum’s board of directors. Ed Quint looks for a part as he reinstalls the fuel tank on a 1948 Chrysler New Yorker Highlander. Credit: Randy Pench “They were honest with you Continued from Cover

Second Retirement

We are Distinctively Different.

times, Quint said recent-vintage Mercedes-Benz and BMW models proved challenging. Both European automakers went all-in on eye-popping electronic gadgetry over a generation. Quint wasn’t stubborn about finding a solution if he couldn’t work things out himself. “If I couldn’t do it, I made sure I found somebody who could. That always worked for us. Finding the right people for the job,” he said. Quint recalls that it was about 45 years ago when he was opening the shop for the day and spotted a shirtless, shoeless young man whom he engaged in conversation. The Ed Quint, left, and Jim Havey reinstall the fuel tank on a young man asked Quint if he 1948 Chrysler New Yorker Highlander. Havey is a longtime business partner who has worked with Quint since 1980. could recommend a nearby Credit: Randy Pench place to eat. Quint obliged, over eight decades, he takes a puff on adding that his new acquaintance his ever-present pipe and says: “It’s might want to put on a shirt and a pair really been something.” of shoes. Time was, you could pop the hood A little while later, the young man on a car and look down into the guts of came back and asked Quint if he knew an engine. Now, Quint notes, “it all covwhere he could find a nearby record ered up. You have to work to get in store. Quint obliged once again, and a there.” short time later, the young man came Asked what vehicles presented the back and handed over “a new record most difficulties for him in more recent See Second Retirement, Page 66 up front. They’d say we can fix this or we can’t.” Quint, with a wiry frame, a mechanic’s viselike handshake and sporting a bumper crop of mostly dark hair, could easily pass for 65. Asked about myriad changes in his work world

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Family Touch Makes Lawrence Auto Body in Livingston County, MI, a Favorite by Wayne Peal, Livingston Daily

Lawrence Auto Body isn’t the kind of place folks ever hope to visit. But they’re glad they did. The Brighton collision shop is again a People’s Choice Award winner, marking the fourth time in the past five years — and 14th time in the past 15 years — it has claimed the honor of Best Auto Collision Shop (Nondealer). For owner Kate Lawrence, success comes down to two things: trust and quality. “We have built strong relationships with our customers, they come back generation after generation,” she said. Because it’s small, the company can provide personal service, office manager Monica Winberg said. That includes calling people to let them know their cars are ready to handing them their keys in person. “It's the personal touch,” Winberg said. It’s not an award the company takes lightly. “We know there are many, many auto shops in Livingston County,” Lawrence said. But she also knows a little some-

thing about constituent service. Lawrence served eight years as Brighton mayor between 1999-2009 and is currently a county commissioner.

Mike Lawrence installs weather seal to a replacement hood on a 2014 Ford Escape in a bay of Lawrence Auto Body. The shop was honored a People’s Choice Award, this being the 14th win of the past 15 years. Credit: Gillis Benedict/Livingston Daily

The commitment to quality extends not just to the parts themselves, but to the way they are installed.

28 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

“When we have to paint around a window, we take the window out. We don’t just tape it off,” said Kate Lawrence’s son, Mike Lawrence, who runs the back shop. The shop area also features heated floors, rapidly defrosting even the most snow-covered vehicles for faster service. Operating since 1977 at the same location, the business underwent a major renovation in 2001. It added brick fronts along with a bay window, earning a beautification award from the city in the process. “We don’t look like an auto shop, and we don’t want to look like an auto shop,” Kate Lawrence said. If anything, the business at 306 W. Grand River Ave. in Brighton looks like a home — albeit one with an unusually large garage. But that’s appropriate for a family-owned business. Kate Lawrence’s husband, Larry Lawrence, founded the business after working several years as an auto-body painter. He learned the trade at Cars and Concepts, an auto-customizing company owned by onetime U.S. Rep. Dick Chrysler. There, he received several highprofile assignments, including paint-

ing the car of three-time Indianapolis 500 winner Johnny Rutherford. “But he always wanted his own business,” his wife said. Back then, it was a one-man shop. “When he’d have a major painting job, he’d lock the door and put out a sign saying ‘Come back in two hours,’” Kate Lawrence added. She was on board from the start, tending books after completing her standard 9-to-5 insurance industry job. The couple married in 1980, raising three sons. Though Larry Lawrence retired a few years ago, the business will remain in family hands for years to come. “You could have an auto shop almost anywhere, but we love Brighton and we love being here — right on the main drag,” Kate Lawrence said. Their customers wouldn’t have it any other way. We would like to thank Livingston Daily for reprint permission.

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3M Hire Our Heroes Tool Grants Awarded to Ivy Tech Automotive Graduate

Ivy Tech Community College Northeast automotive technology student Gabriel Davis and graduate Paul Hyde recently selected more than $3,000 each in tools and equipment, as recipients of the Collision Repair Education Foundation’s (CREF) 3M Hire Our Heroes tool grant for 2015. Thirty-five winners from across the country had the opportunity to select $3,000 worth of tools and equipment to help in their education and for employment after graduation. Since 2013, 3M has partnered with CREF in support of the collision repair industry and American veterans. 3M has donated $500,000 to be used toward scholarships and tool grants for individuals who served or are currently serving in the military and their family members. “Our nation’s military veterans deserve every opportunity to get a great start in our industry,” said Dale Ross, U.S. marketing operations manager at

Ivy Tech Northeast automotive technology student Gabriel Davis (left) and graduate Paul Hyde (right) display $3,000 in tools and equipment. They are joined by Randy Minobe, senior account representative with the 3M Automotive Aftermarket Division

3M Automotive Aftermarket Division. “We are happy to continue to give back to those who have served in our military through the 3M Hire Our Heroes program, and we wish them all great success in their future careers.”

Davis served in the Indiana Army National Guard for nearly eight years before enrolling at Ivy Tech Northeast. “This grant means that there are companies out there that recognize vets are just as hard-working and dedicated to what we do as our civilian counterparts,” Davis said. Hyde, a spring graduate, served in the U.S. Army for five years. “My passion for the automotive field is screaming, and the tools that have been put into my hands by this grant will ensure that all of the hard work in getting to this point will be worthwhile,” Hyde says. Ivy Tech Northeast was one of only two colleges in 2015 to have more than one 3M Hire Our Heroes tool grant recipient. “When you have more than one individual win, that says a lot about your program,” said Darrel Kesler, dean of Ivy Tech Northeast’s Technology Division.

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WD-40 Announces New EZ-REACH Product

WD-40 Company introduced WD-40 EZ-REACH to better meet the needs of trade professionals and heavy DIYers who use WD-40® MultiUse Product as part of their jobs. For more than 60 years, automotive and construction professionals and skilled tradesmen have used WD-40 Multi-Use Product, but many expressed the challenge of getting the formula into tight and hard-to-reach places. WD-40 EZ-REACH features an attached, eight-inch flexible straw that bends and keeps its shape. “WD40 EZ-REACH was designed with our end-users’ needs and wants in mind,” said Tim Lesmeister, vice president of marketing at WD-40 Company. “This new delivery system gives trade professionals and DIYers the ability to reach the unreachable and accomplish difficult tasks in overhead areas, under the sink plumbing components, or specific sections in motors and engines, among numerous other uses.” For info, visit WD40.com/EZ.

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 29

New ALLDATA President Discusses OE Repair Info with Associations and Insurers at NACE 2015 by Victoria Antonelli, Online Editor

Over the past eight years, ALLDATA, a provider of OEM service and repair information since 1986, has expanded its predominantly mechanical focus to the collision repair sector with the addition of ALLDATA Collision. This new and improved program allows users to access a single source of up-to-date OE-direct repair information. The company’s database is available online and features information on more than 33,000 engine-specific vehicles from year 2000 to present. Featured OE procedures include sectioning and structural repairs, handling of new materials and panel removal and Mitchell Major, president of replacement. ALLDATA In March 2015, Mitchell Major became president of ALLDATA after holding various positions at ALLDATA’s parent company, AUTOZONE, for 10 years. Autobody News spoke with Major while he attended NACE CARS 2015 in Detroit, MI. “NACE has been a great opportunity to talk to people on the user side of the equation, such as associations and insurance carriers, and understand their thoughts about OEM information,” said Major. “My perspective is that I can’t imagine a world in which you would not want to be using OEM data repair information on the collision repair side, particularly if you walk the collision floor and see the complexity of the structure of vehicles.” Major said he began his career at AUTOZONE on the inventory supply chain side, where he ran replenishment for several years. He then moved

over to the operation store side before taking over the role of vice president of stores. While serving as VP, Major was responsible for 900 stores across the country, and because of that, he said he spent a lot of time out in the field talking to both DIY and commercial B2B customers. “This position gave me a deep familiarity with the concerns and opportunities on the shop side of the business,” said Major. “When I started at ALLDATA, I began filling in the blanks on the software end.” Major said that since a lot of collision shops are still not using OEM information, the liability for shop owners continues to increase. “Many collision shops are small independents without the resources of national chains and aftermarket information fills that need,” he said. “OEs are certainly changing and adapting to the market place, including customers of ours, when it comes to pricing. It's an ‘adapt or die’ universe we live in, when it comes to the economy, and everyone is going to have to change and roll with the punches.” In order to prevent incorrect repairs, which could lead to consumer injuries or even death, Major said he and the rest of the product team make a point to speak with industry members to find new ways to make OEM data that much more compelling. “Typically, if you go to a shop and say, ‘My check engine light is on and I need to understand what's going on here,’ they’ll go out and write it down on a paper pad, then they’ll go in and key it into the computer, and it takes a lot of time,” said Major. “This creates a huge opportunity to streamline that whole process. Whether you’re mechanical or collision, you want to turn the bays;

Tesla Motors Selects Solera to Provide Collision and Customer Communication Services

Solera Holdings, Inc. announced on August 3 that its collision estimating and customer communication platforms were chosen by Tesla Motors for its global certified collision repair centers. Through AudaExplore (U.S.) and Audatex (global), insurers and repairers will use the Solera solutions to process fast and accurate collision repair estimates and insurance claims on Tesla vehicles. Tesla will also leverage the AutoWatch platform within the

Solera solution set to enhance both the driver experience and communication between Tesla and its customers. “We have worked closely with Tesla over the past several months to develop highly accurate and data-driven integrated solutions for Tesla’s collision repair network,” said Tony Aquila, Solera’s founder, Chairman and CEO. “Our goal is to fully leverage Solera’s technology platforms to digitally transform the vehicle repair experience for all stakeholders.”

30 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

you want to get the cars in and out,” he continued. “Most shops have two or three bays, which gives you limited physical space and limited technicians. ALLDATA Collision is available online, on either desktop computers or mobile devices, so it can be checked nearly anywhere in the shop. [Simplifying those steps] increases cycle time and productivity, which in turn increases profit.” Tanushree Sircar, marketing manager at ALLDATA, explained that their customers span a wide range of backgrounds and age groups. While the younger generations adapt to new techTanushree Sircar, marketing manager nologies faster and for ALLDATA prefer using mobile devices, some technicians are more comfortable with older technologies. “The convenience of accessing this information is what’s interesting to everybody,” said Sircar. “The ability to access quality OEM information through their desktop or Android or iOS device, making the repair process

much easier and faster, is what makes our customers willing to change and adapt to the new technology.” Instead of paying for classroom time to keep technicians up-to-date on the latest vehicle trends and models, “you can just turn on ALLDATA Collision, and the system will lead you through the process so you don'’ make an incorrect repair. Our product roadmap is all about a training-free solution. It’s as easy as making a purchase from eBay or Amazon,” added Major. Another tool ALLDATA has implemented to help make life easier for technicians is the online database Community. According to Sircar, Community allows technicians to log on and ask other technicians detailed questions about the OE repair process and specific issues. She added that the database has recently reached 70,000 users in just two years. ALLDATA is based in Elk Grove, CA. For more information on ALLDATA Collision, visit their website at http://www.alldata.com/collision or contact the company’s marketing manager, Tanushree Sircar, at tanushree.sircar @alldata.com / 800-829-8727.

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Apple is Building Self-Driver, Looking to Test in Bay Area

Apple is building a self-driving car in Silicon Valley, and is scouting for secure locations to test it, according to Britain's Guardian newspaper. Documents show the oft-rumoured Apple car project appears to be further along than suspected. Reportedly, engineers from Apple’s secretive Special Project group met in May with officials from GoMentum Station, a 2,100-acre former naval base near San Francisco that is being turned into a high-security testing ground for autonomous vehicles. In correspondence obtained by the Guardian under a public records act request, Apple engineer Frank Fearon wrote: “We would ... like to get an understanding of timing and availability for the space, and how we would need to coordinate around other parties who would be using [it].” Apple declined to comment. GoMentum Station is on the old Concord naval weapons station still guarded by the military, making it “the largest secure test facility in the world for testing validation and commercialization of connected vehicle (CV) applications and autonomous vehicles technologies to define the next generation of transportation network infrastructure.”

EstimateScrubber.com Releases Invoicing APP

VehicleOwnersGuide.com, announced the release of the first of its’ ScrubberApps—a joint development with Saint-Gobain/Norton Abrasives to develop the Norton Invoicing App. The Norton Invoicing App allows estimatescrubber.com subscribers to create an invoice for seam sealers, corrosion protection, foams, accessories, metal bonding, bumper/ plastic repair. The Norton Invoicing App 1) automatically imports R.O, vehicle and owner information from the scrubbed estimate, 2) allows building the invoice with point and click technology, and 3) prints “the” Saint-Gobain/Norton Invoice using current retail pricing. The App is provided at no extra cost to estimatescrubber.com subscribers. “The Norton Invoicing App helps our customers create invoices supporting their materials usage on an RO basis. The invoice will have the Saint-Gobain/Norton logo and current retail prices. You just select the products and quantities used to build the materials invoice. It will help our customers more easily document their materials usage using our invoice format and current retail prices.”, said Randy Vidal, National Accounts, Norton/Saint-Gobain.

Mopar Helps Dealers with New Service Capacity Tool

Mopar is introducing a new “crystal ball” to assist FCA US dealerships in preparing for and predicting the best strategies for enhancing the customer experience, both now and in the future. The Mopar Service Capacity Analyzer is a powerful new online tool that helps dealers to assess, plan and implement changes to the number of technicians, technician hours, stalls and much more to better service customers. “Providing a great customer experience is at the core of what we do,” said Pietro Gorlier, President and CEO, Mopar Brand Service, Parts and Customer Care, FCA. “That is why this year alone we have supported the addition of more than 1,300 technicians, 700 service advisors and 500 service bays in our dealer network, which overall is well ahead of our targets. Now, the new Mopar Service Capacity Analyzer offers dealerships a ‘road map’ to more efficiently utilize these resources by forecasting customer needs out to 2018 based on dealer-specific parameters.” The algorithm-based Mopar Service Capacity Analyzer allows dealers to adjust physical capacity metrics such as number of techni-

cians/service advisors, technician available hours and stall numbers, to match projected service lane traffic. The dealer can create scenarios and evaluate the changes needed to reach the optimum level of service. Dealerships can also examine operational efficiency and identify opportunities for improving existing processes and eliminating waste or inefficiencies. A summary page allows quick comparison of how hypothetical plans stack up to current capacity statistics. Mopar also offers tools to help dealerships implement service capacity changes. The brand is launching a new Service Capacity Guidebook as part of the Service Capacity Analyzer to assist dealers in seizing existing opportunities while avoiding the pitfalls of a crowded service lane. The Mopar Career Automotive Program (CAP) works in partnership with automotive tech schools to provide dealerships with a pipeline for recruiting trained and skilled technicians. “The customer journey is about Mopar partnering with our dealers to ensure that we have the tools, the people and the plan to continue to serve those who drive us,” said Gorlier.

32 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Allstate Delivers Sharp Drop in Operating Earnings

Allstate Corp.’s 2nd Qtr operating earnings fell 41% on lower auto insurance margins and seasonally high catastrophe losses. Operating earnings are a widely watched benchmark for the insurance industry because they exclude realized capital gains and losses from companies’ investment portfolios, among other items that aren’t considered recurring on a quarterly basis, reported nasdaq.com. The decline in operating earnings reflected a broad-based increase in the frequency and severity of auto accidents by state, risk class and other factors. One of the largest drivers of Allstate’s disappointing performance was its higherthan expected auto claims costs; the company paid more in quarterly claims than it collected in premiums. The last time that happened was in the fourth quarter of 2012, when Hurricane Sandy sent auto claims skyrocketing. But there’s no natural disaster to blame this quarter. In a conference call with analysts last week, Allstate CEO Tom Wilson and President Matthew Winter attributed the increased claims to more drivers putting in more miles on the road, according to Crain.

Carmakers are Keeping Data from Tech Partners

Carmakers are limiting the data they share with technology partners Apple and Google through new systems that link smartphones to vehicle infotainment systems, defending access to information about what drivers do in their cars, according to reports in straitstimes.com. Car companies hope that the vehicle data will one day generate billions of dollars in e-commerce, though they are just beginning to form strategies for monetising the information. Apple and Google already make money from smartphone owners by providing a variety of products and services, from digital music to targeted advertising, and connecting phones to car systems will almost certainly extend their reach. But as infotainment systems such as Apple’s CarPlay and Google’s Android Auto become more widespread, car companies hope to keep tech providers from gaining access to a wealth of potentially profitable information collected by computer systems in cars. Some car companies have specifically said they will not provide Apple and Google with data from the vehicle’s functional systems—steering, brakes and throttle, for example.

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Three-C Body Shop in OH Wins Lawsuit Against American Family Insurance Three-C Body Shop in Ohio recently won a lawsuit against American Family Insurance. On September 29th, 2014, during a bench trial in the Court of Common Pleas of Franklin County, Ohio, Civil Division, American Family, the Plaintiff, levied a complaint against Three-C Body Shop. On April 10, 2013, American Family Insurance filed a lawsuit for replevin against the shop due to a dispute arising from Three-C Body Shop’s billing. On January 21st, 2015, the Magistrate ruled in favor of the insurer. Three-C’s legal team filed a Motion for Reconsideration, which was granted, and on April 29, the Magistrate reversed his earlier judgment and ruled in favor of Three-C Body Shop. The facts surrounding this matter stem from when the vehicle owner had a vehicle towed to Three-C Body shop for repair. During the repair process, American Family Insurance, recognizing they had not properly evaluated the cost to repair, and after reviewing Three-C’s blueprint deemed the vehicle a total loss. On September 19, 2011 the insurer made a settlement with the vehicle owner (their policy holder), took title/ownership of the vehicle and on October 5 took possession of the vehicle. Prior to this, Three-C Body Shop deducted its billing for services rendered from the amount

received for the repair. Because the final billing was the same as the initial payment for repair, no monies were left for reimbursement to the insurer. The insurer contested Three-C Body Shop’s billing, which prompted the legal proceedings. American Family filed a motion for replevin against Three-C Body Shop to argue the charges and to take possession of the vehice, of which they already obtained from the shop one year, six months and 24 days earlier.

writ of replevin.” A writ of replevin is a prejudgment process ordering the seizure or attachment of alleged illegally taken or wrongfully withheld property. Where a dispute in billing is at question, the disputed amount is paid to the courts and the court issues a bond that enables the consumer possession of his/her vehicle and holds the funds in escrow until either the time passes or the matter is heard by the courts and settled. The repairer has a pre-

“We are happy that our customer [the vehicle owner] did not need to come out of pocket for work that was clearly owed by American Family,” —Bob Juniper, Owner and President of Three-C Body Shop

When asked why the insurer would attempt litigation to seize a vehicle they already possessed, Bob Juniper, Owner and President of Three-C Body Shop, stated, “It’s either one-hand didn’t know what the other-hand was doing and it was a false action, which is unlikely; We have been to court a number of times with American Family and find them to be quite inept in that venue. It’s more probable that the insurer used the action as a predatory practice to use the legal system as a means to fight us on our charges and it was with intent that the insurer filed a motion with the court for a

34 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

determined time (i.e. 60 days) of which to file a lawsuit against the customer to settle the dispute. Juniper said, “Some insurers have used and abused the legal system and employed a replevin in an effort to dare the repairer into filing a lawsuit against their customer to recover their billing. This generally results in a lengthy legal battle (as was ours) which the insurer will make as costly as possible. The insurers know that most shop owners are ill prepared and don’t want to file a lawsuit against their own customers and incur the legal costs, and as a result, the repairers often

cave to the insurer’s pressures and reduce their billings. This often times results in the shop merely accepting what they can for their billing and foregoing or “eating” the rest to avoid a replevin. Thereafter, the repairers accept what they’re given to avoid similar issues in the future. The insurer wins and the repairer loses. At Three-C we don’t play that game; we charge what’s competitive and reasonable and will do what is necessary to collect it and stop such behavior.” In this instance the court initially sided with the insurer and then reversed itself when the Magistrate learned that Three-C had relinquished the vehicle and American Family Insurance had taken possession of it well before the replevin was filed. The court found on behalf of Three-C Body Shop and that American Family was not entitled to any award. There was also a claim made by American Family against Three-C Body Shop for violation of the Consumer Sales Practices Act that the Court ruled in Three-C’s favor and dismissed it. American Family had 14 days to appeal the decision; they did not do so. “It is rare for a court to grant a motion to reconsider so it was a good win. We are happy that our customer (the vehicle owner) did not need to come out of pocket for work that was clearly owed by American Family,” said Juniper.

July Auto Sales Surge Due to Pickups and SUVs

The industry kept on course for its best year in more than a decade last month after a disappointing June, driven by deliveries of SUVs and pickups as car sales lagged. Most major carmakers handily beat estimates, with the average analyst projection putting the annual selling pace at about 17.2 million vehicles, which would be the highest total since 2001. “Pickups and SUVs continue to keep new-car sales elevated,” Jessica Caldwell, director of industry analysis for car-shopping site Edmunds.com, told the Daily News. “In fact, July marks the 23rd month in a row in which trucks (together with) SUVs have outsold cars. Lower gas prices certainly are a catalyst, but the availability of cheap credit is helping consumers get into these more expensive vehicles,” Caldwell said. Buyers spent a record $47 billion on new vehicles in July, a 2.1% increase from last year, according to automobile pricing site TrueCar.com. Ford, which saw sales sputter in the first half of the year as the company faced production—and perception—problems transitioning its bestselling F-150 truck to a lighter aluminum body, reported a better-than-expected 5% jump in sales last month.

UT Austin and Google Test Driverless Cars in Austin, TX

While Google has begun testing driverless cars in Austin, Texas, the University of Texas Center for Transportation Research has begun planning for the day when driverless vehicles are the norm, News Radio 1200 WOAI reports. Driverless vehicle technology can solve our congestion problem, said Center Research Director Dr. Chandra Baht. “Driverless and connected vehicles have the congestion to reduce traffic congestion by increasing capacity,” he told News Radio 1200 WOAI. “Imaging dozens of vehicles going at 70 to 75 miles an hour as a platoon, driving only a few feet apart.” Baht added that the more cars on the road are autonomous, the safer the roads will be. “About 90 percent of accidents, or even higher than that, are caused by human judgment errors,” he told News Radio 1200 WOAI. “If you take out the human from that equation, the safety could increase substantially.” There is talk that once autonomous vehicles are perfected, it will be illegal for humans to drive cars, because vehicles that are driverless and can talk to one another will be far safer than the highways we have today, reported News Radio 1200 WOAI.

Urethane Supply Unveils Nitrogen Plastic Welder With Self-Contained Nitrogen Generation System

Urethane Supply Company revealed its new 6066-CG Nitrocell Nitrogen Plastic Welder on July 21 at the NACE/ CARS Show at the Cobo Center in Detroit, Michigan. Urethane Supply introduced the first commercialized nitrogen plastic welder to the collision repair industry in 2006, and the new 6066-CG Nitrocell is even more advanced. The 6066-CG is designed to generate its own nitrogen gas from shop air and requires no onboard air compressor. It is light in weight, making it easy for technicians to maneuver 6066-CG into position. It also features an easy-to-handle welding torch that can get into tight spots without causing user fatigue. “Repair shops want to minimize repair times and maximize profits, and we’ve designed the new 6066-CG Nitrocell Nitrogen Welder to help them do just that,” said Kurt Lammon, president of Urethane Supply Company. “The new unit will help collision

specialists reduce cycle times and increase their opportunities to do more profitable labor-based repair of plastic components.” Nitrogen gas welding creates a strong material bond, because it eliminates oxidation of the plastic during the welding process. Using the shop’s own common air supply, the 6066-CG Nitrocell employs a three-stage filter to clean impurities from the air, then uses sophisticated membrane technology to extract an endless supply of nitrogen. The 6066-CG’s analog instrumentation features a control regulator combined with an output pressure gauge and a flow gauge to give the operator control over the amount of gas used in the welding process. A low-pressure safety switch automatically cuts power to the heating element, protecting it from overheating if the flow drops too low. “Our flow meter allows shops to achieve and maintain a high-quality, repeatable result when repairing virtually all types of plastic components,” Lammon said. “Consistent results help shops meet key performance indicators, and that, in turn, drives more business from insurance companies.”

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 35

H OND A C AL I FO RN I A

AutoNation Honda Roseville Ros ev ille

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Avery Greene Honda Vallejo

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Barber Honda Bakers field

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First Honda Simi Valley

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Galpin Honda Miss ion Hills

800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 blemen@galpin.com

Honda Cars of Corona Corona

800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com AC U RA C AL I FO RN I A

Acura of Fremont Fremon t

888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com

Acura of Pleasanton Pleas ant on

888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com

Acura of Riverside Riv ersid e

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Honda of Oakland

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Metro Honda Mo n t c la ir

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Te mpe

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Jody Wilkinson Acura

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H e nd e rs on

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S al t L a ke C ity

800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 37

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

Industry Insight with John Yoswick

‘MSO Symposium’ Panels Presented Ideas on Human Resources, Customer Satisfaction Attracting, training and retaining quality employees was among the topics tackled at this year’s NACE “MSO Symposium,” a half-day event in Detroit in July that focused on the needs of multiple shop operators (MSOs), as well as those who aspire to become an MSO. During one panel discussion at the event, for example, Max Sorensen of Minnesota-based ABRA Auto Body & Glass explained how his company has

a 300-module “learning management system” that covers subjects ranging from how to greet a customer coming into the shop to preparing final billing of an insurer. Employees can use the system to learn new skills, or use the system as a “refresher” when they have questions. Darrell Amberson of LaMettry’s Collision, an MSO in the Minneapolis, MN, area, moderated the panel discussion, and said that while large MSOs like ABRA can have staff devoted to employee training and development, his company is not that large. “So we’re looking at developing a training department using some resident experts to help train some of other people,” Amberson said. That inhouse training will become part of a formalized career path the company is developDarrell Amberson (l) and Max Sorensen in panel discussion ing to offer to entry-level em-

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ployees. “Knowledge is a company assets, but knowledge has a shorter and shorter shelf-life,” panelist Jeff Peevy of the Automotive Management Institute said, emphasizing the need to hire those who will seek out continued training. “But learning is the cure for that. The willingness and capability to learn is Brandon Eckenrode the only true source of a sustainable competitive advantage.” Brandon Eckenrode of the Collision Repair Education Foundation said that organization is doing several things to help attract more people to careers in the industry. The Foundation is involved with the national association of school guidance counselors, for example, to help educate them about careers in the industry. The Foundation

is developing a national job board, and is launching a series of career fairs across the country to help students and shops connect. The Foundation is also working to attract military veterans to training in the industry and to educate employers about veterans’ benefits that can help those vets transition to careers in the industry. Several panelists said requiring entry-level employees to spend several weeks as a porter or detailer at a shop helps the employee get a feel for the business and the shop get a sense of the employee’s chances for success. “You get a good feel about whether they have a good attitude, do they show up on time, that kind of stuff,” Kevin Burnett, vide president of operations for Gerber Collision & Glass, one of the largest MSOs in North America, said. That can prevent both the shop and the employee from make an larger investment in training, etc., before they PARTS DEPT. HOURS:

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know if it’s a good fit for both, panelists said.

Entry-level pay an issue But Eckenrode also said the industry needs to address that fact that its entry-level wages often aren’t always competitive with those in other trades. That’s allowing other technical training programs and trades to attract students away from collision repair. He said the Foundation is working to help collision repair training programs understand the need to focus students on fewer skills – the skills that will help the students be more immediately productive in shops. “We’re going to do a better job of helping to instruct these school educators to not teach a mile wide and an inch deep,” Eckenrode said. Another panel during this year’s MSO Symposium focused on the use of customer satisfaction measurement to help manage MSOs. Jason Bertellotti of Mitchell International, said some of the highest customer satisfaction he sees are at shops that offer employee incentives based on customer feedback. One such company, he said, uses formalized customer follow-up interviews, but also asks customers before they leave the shop to fill out a card asking for one thing they truly enjoyed about the process. Anytime a customer mentions an employee by name on that card, that is shared with all the staff at daily meetings, and the employee receives some sort of incentive. “It’s all about creating the culture by talking about the customers’ experience, not pressuring the customer to give you a ‘10,’” Bertellotti said. Dean Fisher, a CARSTAR franchisee and leader of the MSOs field service team agreed that pushing a customer to give you a high CSI rating – something he experienced when he recently purchased a new car – is less effective than just focusing on the customer experience. “You don’t sell CSI. You do CSI,” Dean Fisher Fisher said. Bertellotti agreed. Attempting to “manage the score” only communicates to your staff that it’s the score itself, and not your customer’s experience, that you care about. He recommends taking a step back, almost as a secret shopper, to see and hear what your customers are

seeing and hearing. “See how you would perceive that, from the minute they drive on the lot, what it looks like,” he said. “All the way through how they are greeted, how they are talked to, whether they are given some empathy during the process and so forth.”

How to stay in contact Do customers prefer regular contact – including customer satisfaction indexing – by text, email or phone? Not surprisingly, the panelists said ‘it varies.’ David Kulkis, business development director for ABRA Auto Body & Glass, said he still believe phone calls are the best way to keep customers updated. Such calls give you an opportunity for a personal touch and to convey empathy, he said. Electronic communication can augment that, David Kulkis he said, and there are some customers who just don’t want the phone calls. That’s why it’s important to ask customers about their preference, Fisher agreed, because automated texting or email may even be alienating some of your customers. “We find that younger customers prefer texting and email is great for them,” he said. “But there’s at least 40 percent of your clientele who want a phone call. They still want to communicate with you regularly that way.” Bertellotti agreed that a hybrid strategy is best, particularly when it comes to follow-up customer satisfaction indexing. “There’s a very high self-selection bias in email or any sort of electronic survey,” Bertellotti said. “People who are unhappy or extremely happy typically will take it – and always more of the extremely unhappy. So you self-select downward. The results are usually lower than they would be on the phone, and you miss all of the quality data in the middle. You never get their feedback and never know what’s important to them.”

@autobodynews Accept no Substitutes! www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 39

Getting Paid for Investing in Facility, Equipment and Training by Stacey Phillips, Assistant Editor

Collision repair shops learned what it takes to keep up with the increasing rate of technological innovation and implementation, during a recent talk by Tim Ronak, Senior Services Consultant from AkzoNobel Coatings. Ronak spoke to attendees during NACE about “Getting Paid for Investing in Facility, Equipment and Training.” The following is based on his presentation. Ronak said the technological face of the automotive industry is evolving exponentially. Some of the factors involved in these changes include onboard safety systems and controls; telematics and web-connected vehicles; accident avoidance; autonomous driving capability; hybrid power systems; and CAFE requirements. Now, more than at any other time in the past, higher specialized environments, equipment and training is required, according to Ronak. “In order to be capable of repairing and servicing this new auto technology, businesses are required to invest capital in people and tooling to stay current and capable,” he said. However, many businesses are realizing a shorter period of return on their investment (ROI).

Current and Past Collision Industry Labor Profitability Trends Ronak explained how gross profit, in terms of the True Cost of Labor (TCL), has been declining over the years. In just the last two years alone, there are more facilities recording less than 50 percent TCL. Ronak said that a decreasing TCL can be attributed to four factors:

1) Wage and benefit unit costs rising faster than lagging labor reimbursement rates This includes the impact of higher costs to retain a decreasing number of skilled trainable workers. Ronak defined a “unit” as a measurement of time that it takes an average skilled technician with an average set of tools in an average equipped facility to complete a specified operation.

2) Absence of a retail door rate in market areas Ronak pointed to the fact that there is currently no prevailing rate survey process in place. In addition, there is often a perception that customers should pay the same or less than insurers. 3) Credit Card Effect Ronak said the increasing use of credit

cards for payment is eroding the realized labor gross profit as shops are taking cards for the payment of jobs and deductibles. “Shops have not adjusted to the retail pricing model to deflect this increasing erosion of marginal profitability,” he said. For example, to cover the credit card fee with a seven percent sales tax, you need an additional $3.26 to $6.66 over the original $60 door unit rate to

myth,” he said. “People invest for the singular incentive of a return!” Ronak explained that ROI essentially compares the magnitude and timing of investment gains directly with the magnitude and timing of costs. “A high ROI means that gains compare favorably with costs,” he said. “The goal is not to simply break even. The reason to invest is to generate a return.” Costs include such things as in-

The definition of “Customer Value” is: “ANYTHING the customer is willing to pay for,” —Tim Ronak, AkzoNobel

cover the lost revenue. In this case, the adjusted retail door unit rate would need to be at least 5.4 percent to 11.1 percent higher to just preserve the previous profit margin. Ronak said the retail differential may need to increase by 15 percent if a component is built in to shield against fees paid when a deductible is paid with a credit card.

4) Vehicle Technology Advancing at Frantic Pace With vehicle construction and technology changing yearly, repair methodologies become outdated quickly. Vehicles require specialized training and no longer can one skill fit all vehicles. In addition, there is more of a requirement for precision with technology such as accident avoidance and on board safety systems. Ronak said OEM certification is now required to restore some of this technology. “It is now more important than ever to ensure that a facility restore a 4.5 star crash-rated vehicle back to the same 4.5 star crash rating,” he said.

How Much to Invest in Facility, Equipment & Training Ronak said it can be very difficult to determine how much to spend on facility, equipment and training since each business has its own needs. Ultimately, facilities will make a choice depending on what services they offer to customers such as aluminum repair, OEM certification, and servicing hybrid technology.

How to Determine ROI and What is a Reasonable Return Investing in a business requires a return greater than what is available in alternative secure investments. Ronak recommended that an analysis be done prior to making an investment to determine what it will actually cost the business. “The idea that capital investment is ‘just a cost of doing business,’ is a

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terest expenses/finance charges, property taxes, and the opportunity cost of alternative investments. He advised that investors have a minimum target return they are willing to accept, which should typically be higher than a more secure alternative investment.

Payback Time Period to Expect for an Incremental Investment Since each investor will have his/her own rationale for determining the expected payback period, Ronak recommended performing a more complete ROI analysis that factors in all costs as they occur against the desired rate of return. Some of the considerations include time frame, residual value, technology, setup costs and finance charges.

Equating Capital Expense for Training, Facility and Equipment into a Reimbursable Charge Ronak said that the actual capital needed for the investment needs to be quantified first. Then the acceptable return for that investment of capital should be defined. He stressed the importance of then determining how to capture revenue related to an expense and how to apportion the expense to the revenue it generates.

Training: Ronak said that training is becoming an annual requirement for individual OEM certification and some of it can be very expensive and time consuming. “These costs need to be tracked and considered when determining the rate you choose to invoice for that skilled and capable labor resource,” he explained. Since the average tech will generate about 3,000 units of billable labor per year, an annual training expense of just $6,000 (including tuition, testing, wages, travel, meals, accommodation and certification fees), it results in a

training surcharge of $2/unit billed. If that labor is specialized to a particular OEM and requires an annual renewal, it could be a recurring charge. Ronak asked attendees to also consider that perhaps only 50 percent of the time the tech is actively engaged in work that requires that certification, the required reimbursement could double to $4/unit billed to recapture the investment in training. Facility: Additional facility expenses may imply that a shop is increasing its capacity or reconfiguring use of a facility or portion of that facility. “A reasonable expectation would be to determine break even and return sales targets,” said Ronak.

Equipment: Businesses equipping to service or repair new technology may not necessarily increase efficiency, according to Ronak. “In some instances specialized tooling may quickly become obsolete as new devices are deployed.” This implies that the $12,000 self piercing rivet tool that may be used five times before a new replacement version is required should be critically considered. He said it might be better to rent these pieces of equipment and charge them on each job … much like a frame fixture/jig. When calculating equipment expenses, Ronak said to determine the total equipment investment, determine the required return on that investment and then calculate incremental sales targets that provide sufficient returns. If additional volume is not forthcoming, he said to consider a higher door unit rate for work and then develop a plan to achieve sales targets. Ronak then addressed the final question: “Are these expenses just the cost of doing business?” He said the definition of “Customer Value” is: “ANYTHING the customer is willing to pay for.” “It is not a large inductive leap to infer that a customer would be willing to pay to ensure the 5 star crash worthiness of the vehicle would be restored back to a 5 star through the repair process by properly equipped and trained resources,” said Ronak. “When investment costs are incurred for the singular purpose of creating customer value they should be passed on as a cost to the customer in one way or another,” said Ronak. “The challenge is to clearly ‘know your cost’ before you justify and ultimately ‘establish your price.’”

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 41

Car-O-Liner and AudaExplore Hold Seminar on Trends in Fixed Operations by Victoria Antonelli, Online Editor

The presentation, held at NACE, began with an industry flashback to 40 plus years ago. Pulling and heat, mild steel, paper estimates, and a non-existent internet were just a few of the hang ups older generations can remember dealing with on a daily basis. Now, more than ever, time drives efficiency on the shop floor. Every new collision repair system is designed with decreasing cycle time as the top priority.

Car-O-Liner/AudaExplore PowerPoint

To ensure that other tasks don’t slip to the wayside while technicians are rushing to clear and refill the bays, Dave Scribner, Car-O-Liner techni-

ified entry-level technicians, while also showing changes concerning business operations and the collision repair technician workforce.” Tools that can aid in accomplishing the above goals include: ● Increasing the profit margin ● Driving CSI improvement ● Driving industry leading KPI’s ● Creating uniform and positive customer experience ● Expanding related add-on services

According to the business statistics side of the previously mentioned

survey, in the last six years “the industry has experienced a market size reduction of 3,047 shops (7%) to a current count of 40,488 shops.”

● Upper and lower measurements ● “Before” and “after” validation

The reps from Car-O-Liner then discussed how math data provides for a more complete damage analysis, and how insurance “robotics” can lead to a faster repair decision. Henderson then covered latest industry trends: Luxury Specs on High-End Vehicles: ● Computer-driven efficiency ● Collision avoidance tech ● Focus on infotainment ● Increased complexity

● Semi-autonomous safety

Due to the high percentage of accidents caused by human error (90 percent), the driver assist technology trend is becoming the most prominent. According to Henderson, OEMs are planning on reducing accidents by 80 percent through the implementation of these programs. AudaExplore data shows that by 2020, 80 percent of vehicles will be cognitive automated, bringing manual assistance down to 20 percent. As recently as 2014, these See Seminar on Trends, Page 45

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cal director, Dan Trahey, manager of technical training at Car-O-Liner, and Gordon Henderson, vice president of collision repair services at AudaExplore, have some suggestions for body show owners: ● Increase insurance count ● Invest in employees ● Invest in training ● Attract, grow & retain the best technicians

Surveys conducted by the Collision Repair Education Foundation and I-CAR every three years “confirmed the need for a continual supply of qual-

Other significant points of change according to the Car-O-Liner and AudaExplore presentation include: ● Digital measuring & validation ● Body tolerances decreasing ● Much less pulling, more replacement ● HSS, aluminum, carbon fiber evolution ● Bonding and riveting ● Measuring, universal anchoring and “fixturing” required on more vehicles ● Increasing OEM certification programs ● OEMs driving more repair procedures ● Stand alone 3D measurement ● “Triage” estimates

42 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

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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

Why Past Success Could Be Holding You Back with David Luehr

One of the most fascinating career experiences for me was also one of the most difficult. It was called a 360 Degree Evaluation. I thought maybe it was called a 360 Degree Evaluation because when the results were read aloud to me about my management performance, that’s how hot it felt in the room! In those days I was in auto body operations management for a large company that rightfully believed that a healthy culture involved giving all employees a voice. The price for this culture was of course that the employees had the opportunity to evaluate their managers, yikes! The benefit was powerful and has profoundly affected my leadership style to this day. Now in my business as an industry mentor and consultant, I work with very successful people daily. These people are often your typical “type A” business folks that have accomplished a great deal in their lives already. Typically when dealing with these person-

alities I find that there is a great deal of confidence surrounding themselves, their business operations, and the skills they possess as leaders. The dogged determination, the courage to face difficult situations, and absence of fear in asking for more from life propel these people to a level of success higher than the average person. While these are great qualities that will continue to help them in the future, what these individuals often don’t understand is that they may have become successful despite of some of their inferior qualities. Because they are so confident overall, the not so great qualities get lumped into their overall belief system along with the good qualities as an overall success “formula.” In other words, they see no need for change within themselves because what they have been doing has been working fine. At least up to now. What is ironic in this scenario is that these same successful leaders are the very ones that are usually com-

plaining about how difficult it is to get their own people to accept change when in reality they are the most stubborn ones! This takes me back to the 360 Degree Evaluation. This method has become my most powerful weapon in my arsenal for getting leaders out of their own way of achieving big-time success. I am reminded of my own utter disbelief years ago in that hot office when I get to share employees’ real feedback with their disbelieving bosses. I don’t mean to make light of this process, because it is not easy for even the most battle-hardened body shop manager, it can rock their world in a big way! Growth can of course be difficult but well worth it for those serious about living up to their true god given potential. So how can leaders overcome this curse? The short answer is AWARENESS. When a person can come to grips with the fact that their beliefs may be holding them back, there are a couple ways fix it.

1. Be curious! I strongly encourage those that want to be hugely successful to balance their confidence with an equal dose of curiosity. We are no longer living in the Industrial Age and things are changing way too fast to become educationally complacent. How cars are repaired and the methods used to lead people in the modern “Conceptual Age” requires a completely different skillset than most people currently have. It doesn’t have to be a “scary” thing, but future success will require an open mind, and a willingness to learn. I believe curious people will someday rule the planet.

2. Be brave! Those that have thick enough skin to hear the truth about themselves will also benefit greatly. How do people know what to change to? How do they identify areas in their personalities and skillsets that may need some help? There are two main tools I like to use. The first I have

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already mentioned. The 360 Degree Evaluation is a great way to get to the truth if people in the organization trust the process and have no fear of retribution from superiors. Shops could probably create their own employee survey, but companies tend to get more accurate and relevant feed-back when a 3rd party company provides the service.

3. Use science! The second tool that I use with all my clients is the tti Trimetric Assessment. This is an incredibly insightful tool that can give leaders and their employees a scientific look at personality traits, behaviors, values/motivators, and skills. If leaders are serious about getting to the next level in their careers and moving closer to reaching their potential, this is a great place to start! For those successful people that are wondering why things may not be progressing as you would like, I invite you to consider the advice in this article. Be aware, be curious, be brave, and use science. As always my associates and I at Elite Body Shop Solutions are always here to help you find the resources you need to win! Contact me at: david.luehr@elite bodyshopsolutions.com

4th Annual Aftermarket Telematics Challenge

The Auto Care Association (ACA) and the Equipment and Tool Institute (ETI) announced that applications are now being accepted for the 2015 Aftermarket Telematics Challenge. Now in its fourth year, the challenge seeks to recognize the best examples of aftermarket technology in telematics. This is the first year the challenge is being co-sponsored by ETI. “The Auto Care Association established the Telematics Challenge in 2012 to demonstrate that the auto care industry can provide the technology and solutions today for vehicle telematics,” said Kathleen Schmatz, president and CEO, ACA. “We see the telematics initiative as a very big task for ETI members and the aftermarket as a whole in the coming years and there will be many challenges and opportunities along the way,” said Greg Potter, executive manager, ETI. Applications can be found at: www.autocare.org. They must be received by Friday, Oct. 2. The winner will be announced at AAPEX and the winning entry will have a $10,000 scholarship awarded in their name to the Aftermarket Foundation.

Nissan Donates $1M and 10 Autos to Habitat for Humanity

Ten years after its first donation to Habitat for Humanity, Nissan has announced a $1 million grant to help build affordable, sustainable homes and to support Habitat’s disaster response efforts. Nissan’s contributions to Habitat for Humanity in North America amount to more than $13 million over the past 10 years. “Having a permanent home allows a family to realize stability and a sense of community,” said Nissan Senior Vice President Scott Becker. “Nissan employees engage directly with those families by making personal commitments of their time and effort in Habitat home builds. This partnership is a tangible example of how we carry out our corporate vision to build a sustainable future for all Nissan stakeholders.” A portion of Nissan’s contribution will be used to double Habitat’s Mobile Response Unit fleet to 10 units, boosting its capacity to quickly support U.S. affiliates and their long-term recovery efforts following natural disasters. “The generous donation from Nissan and the volunteers who continue to work alongside those in need of decent housing makes such a difference in the lives of families and communities,” said Jonathan Reckford, CEO of Habitat for Humanity International.

Continued from Page 42

Seminar on Trends

statistics were reversed. So, what can be done to stay ahead of the game, or even just keep up with it? According to the PowerPoint presentation, use predictive analytics to: ● Leverage thousands of data points ● Provide guidance and support ● Increase operational consistency ● Every dollar that flows to the bottom line starts with the estimate

Improve the customer’s experience by: ● Provide automated, electronic updates on the status of repairs on their terms ● Increase kept informed and net promoter scores ● Reduce waste in phone-tag

Lastly, Scribner, Trahey and Henderson encourage shop owners to: ● Embrace change in order to thrive ● Invest in people, training, equipment certifications ● Change how we engage with consumers ● Mindset of operating a growing business ● Leverage software and technology

www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 45

Industry Insight

CIC Committee Working to Eliminate Hidden Costs of Parts Procurement with John Yoswick

A Collision Industry Conference (CIC) committee is working to identify some of the costs – for shops, insurers and parts vendors – associated with various inefficiencies related to the parts procurement process. The committee views this as a key step in determining what electronic parts procurement systems are – or aren’t – doing to reduce such inefficiencies. At CIC in Detroit in July, CIC Parts and Materials committee member Amjad Farah of AkzoNobel Coatings acknowledged that the entire parts ordering process is non-value-added. “No one is paying us to order parts,” Farah said. “We get paid to paint them or put them on, but we’re not getting paid to order the parts. So the process in and of itself is nonvalue-added. But we still have to do Amjad Farah it. So the objective here is to look at the entire process [to figure out how to] make it as efficient as possible given that it has to be done.” During the meeting, the panel shared a “process map” it is building showing all the steps in traditional parts ordering, looking at all the wasted steps and trying to establish some idea of the costs these steps add to the process. John Bosin, chairman of the committee, said some of those initially reviewing the process map criticized the fact that it still included fax or phone orders. “I want to assure you that while some of us may consider faxing ‘20th century,’ the fax is still very much alive,” Bosin said. “When you talk to parts suppliers, ask them how many faxes they get a day with orders. Not only is the fax machine still being used, but the phone is being used and a John Bosin lot of parts salespeople and delivery people are carrying orders back into the office. We all think it’s super-streamlined and elec-

tronic parts procurement is just rapidly sweeping the industry. It’s not.”

The hidden costs Turning to the committee’s process map, Farah said each step in the process has risks that can add waste and costs to the process. For example, shops sometimes order both OEM and nonOEM versions of the same parts at the same time in order to save time if the non-OEM version proves unusable. But receiving multiple parts and returning one adds costs for both the shop and parts vendors, he pointed out. Choosing only parts offered by the “best vendor” identified by the shop can offer some efficiencies for the shop, Farah noted, but can raise the total costs of the parts used, or – if the shop can’t pass those costs along – reduce the shop’s profits. Similarly, if a shop’s ordering decision is based on price alone, one risk could be poor service from the vendor, resulting in delays. Ordering parts from multiple vendors for the same job results in multiple invoices to be paid. If it costs you $25 to receive a part and process that invoice, Farah said, and that happens on 75 percent of your repair orders, that can quickly add up to thousands of dollars in costs. When you look at the whole process as a whole, Farah said, you quickly “come to the realization that as an industry we really need to find a way to make the whole process more efficient for all parties involved.” The committee’s work, he said, is a start to building that awareness. But Aaron Schulenburg of the Society of Collision Repair Specialists said the issue is more complex than a “process map” might indicate, given the often competing interests of shops, insurers and vendors. Some insurer mandates on shops regarding parts – or parts procurement systems – are a good example, he said. “What do we do as a group if we determine that certain processes create inefficiencies and costs for some, while creating reductions in costs for others?” Schulenburg posed, rhetorically. But CIC Chairman Randy Stabler said he’d like to see the commit-

46 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

tee finish the process map to document the potential costs, then see whether and how the electronic parts procurement systems measure and track such potential inefficiencies so they can be reduced. “It’s one thing to say we need better cycle time, but if you don’t know the incremental steps in the entire process, and start to look at them incrementally, you can’t drive out the costs,” Stabler said, as an analogy. “So we may have electronic parts procurement models that do a good job sourcing by price, but do they look at all those other factors that can reduce the overall internal cost of operation?”. “Suppliers, repairers, consumers and insurers all pay for these inefficiencies,” Stabler concluded. “But if we don’t know the additional costs, then we’re going to continue to do it. That’s what I’m hoping to try to ferret out here.”

State of industry training Another panel discussion at CIC in Detroit focused on what was assessed by many as an abysmal rate of technical training among collision repair technicians. Several panelists cited an I-CAR statistic from several years ago that 69 percent of working technicians who weld in U.S. body shops lack formal welding training. “As an industry, we need to be ashamed of this,” Jeff Peevy of the Automotive Management Institute said. “And it’s not just the collision Jeff Peevy repair shops; it’s all of us involved in this. It takes time and resources to train your technicians, and all of us need to acknowledge that. Regardless of what segment we’re in, we need to take an honest approach and say, ‘Are we contributing to this problem, or are we a solution to this problem?’ This is an ethical issue, that we as an industry allow this to be okay. Shame on us as an industry.” Industry consultant and former shop owner Mike Anderson of Collision Advice said he thinks there’s a lack of a ‘training culture’ in the industry.

When he operated his shops, he said, he let new-hires know up front how many hours of trailing they were expected to complete each year. One night a month, he held after-hours training for the body department; another night was reserved for refinish department training, etc. “That allowed our entry-level people who had a desire to grow to stay after-hours for those classes,” Anderson said. “We also opened that up to SkillsUSA student in our local area, so they could attend, and that helped us recruit some of the best of the best.” Anderson said shops always blame the lack of training on time, which is understandable. “We have these unrealistic mandates put upon us that say we need to upload an estimate in x amount of hours,” Anderson cited as one example, “But if I do that, I don’t have time to research the OEM procedures properly. But is that really the reason? Or is it because I was never trained how to integrate OEM software into that process? It boils down to time and culture.” Independent consultant Roger Cada, a retired insurance company executive, suggested that increasing consumer awareness about the dangers of improperly repaired vehicles could help address the training issue. He said salvage yards have examples of cars that were repaired but later declared total losses because the vehicles were known not to be safe based on how they were “repaired.” He suggested that the industry could have the Insurance Institue for Highway Safety crash test such “repaired” vehicles to draw consumers’ attention to the need for safe repairs. “Show the consumer what poor repairs look like, because they don’t have a clue,” Cada said. “They’re not the experts. But if they take away that their family and friends who ride in that car are in danger, they will search out those repairers that are good.”

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 47

BMW Building New Auto Body Shop in Spartanburg County, SC by Trevor Anderson, Herald-Journal/GoUpstate.com

BMW’s plan to beef up its body shop is beginning to take shape. The Germany-based automaker is constructing a 527,000-square-foot body shop at its Spartanburg County plant. BMW Manufacturing Co. spokeswoman Sky Foster said the facility will “contain some of the most advanced technology in the automotive industry,” including more than 650 robots. Foster said the body shop, which is the third at the plant, is part of the $1 billion expansion announced by BMW in March 2014 to increase the plant’s output, start production of the X7 sports activity vehicle and create 800 jobs. Foster did not say whether the facility will be used to house X7 production, rather that it will be used to “accommodate future capacity.” She said the company will construct a 1,800-foot conveyor that will transfer welded bodies from the body shop to the main building for finishing, painting and assembly. Construction and tooling is scheduled to be completed in 2017, Foster said. The company also will build a visitor parking lot with more than 120 spaces around the Zentrum. The project should be completed in October, she said. Foster said when the new lot is completed, the current visitor lot will be used for additional associate parking. “Since we are adding 800 new jobs by 2016, we need additional parking spaces,” she said. Last March, the automaker said the expansion will boost BMW ManContinued from Page 24

IIHS Tests

can be more complicated and pricier to repair than steel, analyses by the Highway Loss Data Institute have shown. The institute ran crash tests at 10 mph with the new F-150 crew cab and its 2014 steel-bodied predecessor. Engineers crashed the front left corner of the aluminum pickup into the right rear corner of the steel pickup at a 15 percent overlap, and then flipped the test and ran the steel pickup into the back of the aluminum one. In both test scenarios, the aluminum F-150 had more extensive damage than the steel model. Total repair

ufacturing Co.’s output by 50 percent to 450,000 cars a year and increase the plant’s workforce to almost 9,000 associates, making it the world’s largest BMW factory.

BMW Manufacturing Co. has begun work on another addition to its manufacturing facility in Greer. The automaker is building a 527,000square-foot body shop. Crews work on the expansion. Credit JOHN BYRUM/ john.byrum@ shj.com

The local plant, which celebrated its 20th anniversary last year, is the “center of competence” for BMW’s X model lineup, including the X3, X4, X5 and X6. It produced 32,478 vehicles in July, according to the company. It boasts more than five million square feet of production space on a 1,150-acre campus, as well as its own Energy Center, on-site Family Health Center and 24-hour security and firefighting departments. BMW has invested nearly $7 billion in the plant to date, the company said. About two-thirds of the vehicles produced at the plant are shipped to more than 140 markets worldwide. The plant was named the nation’s top automotive exporter in 2014. Its exports totaled $9.2 billion last year, a 13 percent increase compared with its 2013 value, according to the U.S. Department of Commerce.

costs for the front and rear damage combined were 26 percent higher for the aluminum F-150. Extra time to repair the aluminum body accounted for the higher price to fix frontal damage, while higher parts costs pushed up the repair bill for the rear damage. “From a simple bolt-on parts replacement to a more-involved removal and installation of entire body panels, fixing the aluminum F-150 is more expensive than repairing a steelbody F-150,” Zuby said. The IIHS fender-bender tests show the potential implications for out-ofpocket costs as well as insurance premiums when consumers opt for vehicles built with more aluminum.

48 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

In March, the plant celebrated the completion of its three-millionth vehicle since production began in 1994. The South Carolina Ports Authority announced in February plans to build a 60,000-square-foot site operations center for BMW next to the plant’s main entrance near the intersection of Highway 101 and Interstate 85. “What is so exciting is that the fact that this validates their decision in 1992 to build their first plant outside of Germany in South Carolina,” said David Britt, Spartanburg County councilman. “It was a leap of faith… We have become the No. 1 plant for BMW in the world. Make no mistake, we build the finest automobiles in the world.” Britt praised local residents for their resiliency in the wake of the textile industry’s demise. BMW’s expansion was one of several large projects announced during 2014, including Toray’s new $1 billion carbon fiber plant in Moore and a new Bass Pro Shops store across from the BMW plant. In total, the county landed 14 projects last year worth nearly $2.4 billion and 2,114 jobs.

The momentum has continued this year with several more projects announced, including Rite Aid’s Southeast distribution center, Kobelco’s excavator plant and Dollar Tree’s distribution center at Upstate Corporate Park, an industrial park shared by Spartanburg and Cherokee counties. “BMW changed South Carolina,” Britt said. “We became an international community, county and state because of them… We have proven to the world that this is the place to do business. It doesn’t matter if you are making the world’s-finest carbon fiber or world’sfinest excavators. This is the place to do business. And that is because of our people.” Britt said there are more economic development projects in the pipeline. He expects to see BMW’s investment in Spartanburg continue. “I predict more great things to come for Spartanburg with BMW,” he said. “I think they will do more and more in their growth than we can probably dream of.” Thank you to the Herald-Journal/ GoUpstate.com for permission to reprint this article.

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Social Media for Shops

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

Body Shops Nationwide are Joining the Blog Party with Ed Attanasio

One of the items on my marketing todo list for 2015 (January 2015 ABN) was entitled Get a Blog and I can’t take credit for it, but there are more body shop blogs out there now than ever in the collision industry. Four years ago, there were 156 million blogs in existence and today there are more than 180 million worldwide. Shops that didn’t even have web sites now have them complete with blogs that contain weekly posts, sometimes more. Blogs are no longer a fad or even a trend—no, they’re here to stay and gaining traction more and more as they stampede into the World Wide Web. A decade ago, people didn’t really take blogs seriously. They thought a blog was for amateur poets, soccer moms or quilting clubs, but those days

are long gone. Blogs are an ideal way to enhance your Search Engine Optimization (SEO) efforts because Google indexes blog articles and will move

your company’s name up their rankings by regularly sending its search spiders through your blog. And with more players now in the SEO game, blogs are all about getting companies to that desirable first page of Google.

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It’s inexpensive to create a blog (using Word Press, for example) and linking it to your web site. In a busy shop, there are a lot of things going on to blog about, including employee birthdays, holiday events (such as a company costume contest for Halloween); new babies, I-CAR certifications, community mixers and so much more. Once you start searching out topics for blog articles, you’ll see that there is a wealth of great things for you to write about. With blogs now the norm rather than the exception, it’s hard to believe that many body shop owners still don’t know exactly what they are, so here is a rather brief description. A blog (a truncation of the expression weblog) is a discussion or informational site published on

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the World Wide Web and consisting of discrete entries (“posts”) typically displayed in reverse chronological order. Until 2009, blogs were usually the work of a single individual or occasionally of a small group, and often covered a single subject. More recently “multi-author blogs” (MABs) have developed, with posts written by large numbers of authors and professionally edited. The rise of Twitter and other “microblogging” systems helps integrate MABs and single-author blogs into societal newstreams. Rich Pannazzo is the Chief Operating Officer at AutoBody-Review.com in Chino Hills, CA, a company that was created to increase capture ratios and instill confidence in consumers when referred to a body shop by DRP partners, dealers and previous customers. They help their shops find local shops nearby, tour their facilities and schedule an appointment quickly and easily using AutoBody-Review.com. In addi-

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tion, the company also assists body shop clients with marketing efforts— including blogs. “The collision industry is changing on multiple levels,” Pannazzo said. “Not only is their rampant consolidation happening at an unprecedented rate, there is also a significant change in the demographics of the typical collision repair customer. Crossgeneration communication skills are CEO Rich Pannazzo essential to any marat www.AutoBody keting initiative in -Review.com cites blogs as an our industry. Blogeffective way ging, for instance, for body shops to has become an efget their brand in fective way of getfront of consumers ting your brand in as well as helping their Search Engine front of consumers Optimization efforts as well as helping your Search Engine Optimization efforts. In order to be effective however, your Blog must be relevant, routinely updated and well-scripted.” “Collision repairers are not, by nature, good marketing professionals,” Pannazzo said. “And even a vast majority of marketing professionals are

not good collision repair marketers. Collision repair customers are unique because 95% of a shop’s business comes from insurance, dealer and customer referrals. Marketing to get 2% of the 5% that are left just isn’t a logical course of action, nor is it economically efficient. Companies such as AutoBody-Review.com have figured this out. Everything done to promote the brands represented by AutoBody-Review.com is specifically targeted at increasing the capture rate of the referral business being sent to those locations. Even down to the unique blogs posted for their thousands of customers each month. No two blogs are identical and each blog is tailored to the specific body shop that it is being written for.” Eric Gouldsberry is a Silicon Valley-based media consultant and owns EGAD, a company that designs web sites and adjoining blogs for body shops and large automotive companies that end up at the top of search results on a consistent basis. He has seen the incredible growth of the blog universe and the recent popularity of blogs among body shops large and small. “The Hummingbird algorithm went into effect during the summer of 2013 when Google announced the

change on the eve of the company’s 15th anniversary,” Gouldsberry explained. “It was their first major update to their search algorithm since 2010. At that time, people didn’t realize that it would lead to the explosion of blogs. Hummingbird is all about content and what they call ‘semantic search.’ Google now focuses more attention to each word in a query, ensuring that the whole query—the entire sentence or conversation or meaning—is taken into account rather than just a handful of keywords or word streams.” So, why are so many body shops finally coming to the blog party? “Body shops talk a lot to each other and they’re always looking at the shop down the street,” Gouldsberry said. “Look at all of the body shops that are gearing up to work on aluminum vehicles, for example? The shops that started doing blogs three to four years ago are in a prime position, because they’ve already established a top position. It won’t be easy to unseat those shops, but it’s never too late to improve your spot by blogging. If you’re thinking about a blog, I would tell you start today, because right now the stragglers are getting ready to enter the fray!”

CREF Fundraiser Co-Hosted by PPG Raises Over $100,000

The 14th annual Collision Repair Education Foundation (CREF) industry fundraiser, co-hosted by PPG Automotive Refinish, raised a record $100,000+ 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 22nd, and the funds raised from this event will go toward supporting scholarships and grants for collision schools and students. “Thank you to the event sponsors, golfers, volunteers, and to PPG Automotive Refinish for making this event an incredible day of fun and fundraising for high school and college collision students,” noted CREF Director of Development Brandon Eckenrode. The CREF is already starting to plan for the 2016 event, which will be the organizations 25th anniversary year, and the date and location should be announced in the coming months. Individuals and companies interested in getting involved with next year’s fundraiser should contact Brandon Eckenrode at 847-4635244 or Brandon.Eckenrode@edfoundation.org.

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 51

Historical Snapshot

Farmer’s COD Program, CARSTAR’s Growth, Estimates 10 Years Ago, Texas Rate Survey with John Yoswick

20 years ago in the collision repair industry (September 1995) Also at the Collision Industry Conferences in Kansas City in September, Bob Matejzel of Farmers Insurance said that although one of the company’s regional offices has asked Chicago area shops for price concessions in order to participate in Farmers’ “Circle of Dependability” (COD) program, he did not foresee that happening elsewhere. “I do not see this as a wave of the future, at least I hope it is not,” he said. “Our program was instituted with no concessions. It’s still that way.” – As reported in ABRN. Matejzel, who was among the principle designers of the COD program, retired from Farmers Insurance just 15 months after making this statement and after 32 years with the insurer. The COD program has changed significantly since that time.

15 years ago in the collision repair industry (September 2000) The consolidators have been seemingly very open about their goals and business strategies—and about what they look for in the shops they acquire. CARSTAR, for example, has announced an ambitious 5-year growth plan for the Kansas-based company. While most of its more than 250 shops are franchises, the company plans to add 200 company-owned locations over the next five years. What will CARSTAR be looking for as it acquires shops? Kam Nassar, the company’s chief financial officer outlined a set of characteristics that are fairly consistent with those described by other shop consolidators. CARSTAR, he said, will look to acquire shops that have: ● At least $1.5 million in annual revenues—preferably $2 million. ● About 10,000 to 13,000 square feet of space, with the production capacity (or room to expand) to handle in excess of $2 million a year in sales. ● A computerized shop management system, and good accounting practices. ● A well-trained staff, and excellent relationships with customers and insurers. ● A visible, high-traffic location in areas with high household incomes

and an abundance of late model vehicles with young drivers. – As reported in The Golden Eagle, September 2000. CARSTAR subsequently abandoned its growthby-acquisition plans and sold many of its corporate-owned stores back to franchisees. It currently has about 440 franchises in 32 states and 10 Canadian provinces.

10 years ago in the collision repair industry (September 2005) The information providers faced criticism at the Collision Industry Conference (CIC) for their proposed solutions and timelines for addressing the issue of shops having to rekey insurer-prepared estimates. The CIC Electronic Commerce Committee outlined two types of scenarios in which shops should be able to receive insurer-prepared estimates electronically. In the first, the insurer’s estimate is prepared at the shop, so the file could be transferred to the shop’s estimating system via a thumb-drive, the USB drive or even a CD or floppy disk. The second scenario that leads to estimate rekeying is when the shop and appraiser are not at the same location and cannot physically move the estimate file from one computer to the other. The committee believes this is a more common situation leading to rekeying than is the “face-to-face” scenario. In terms of the ability to copy an estimate file to an external drive or disk or otherwise transfer it from one computer to another within the shop, Chad Taylor of Mitchell International said his company offers such capability now, and Bruce Yungkans of CCC Information Services said Pathways 4.3, released in mid-October, would as well; Yungkans said CCC’s system would require a one-time set-up fee of about $150. But Scott Jenkins of ADP drew fire from some CIC participants when said his company has no plans to create such capability, preferring to put its “development effort” into addressing the other type of scenario that requires estimate rekeying. “What kind of ‘development’ does it take?” Craig Griffin of Laney’s Collision Center in El Dorado, AR, asked

52 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Jenkins, pointing out that virtually all software allows a user to copy a file to a disk to transfer to another computer. “My assumption is since every other software in the world allows me to do this, that it’s more likely more difficult for you to keep me from doing that than it is to let me do it, other than you can’t charge me for it.” But Jenkins said ADP sees the ability to download an estimate from an insurer’s library as the solution that would address the majority of the estimate rekeying situations and has pledged to make this possible by next April. He said ADP currently has such a system in place for a shop in an insurer’s direct repair program; that capability, he said, will be expanded to shops not in a particular insurer’s DRP once the insurer gives a oneIn 2005, Craig time permission Griffin of Laney’s for the shop to do Collision Center in so. El Dorado, Ark., – As reported in questioned why Autobody News. It shops couldn’t use an external drive or would be several disk to transfer an years after this disestimate on an cussion before all insurer’s laptop to three information a shop’s computer. providers offered Griffin is still involved in his complete solutions family’s 2-location to estimate rekeycollision repair ing. ADP eventubusiness. ally sold off its estimating system business, which later became AudaExplore.

5 years ago in the collision repair industry (September 2010) The Texas Department of Insurance has received written responses from the state’s top five auto insurers to four pages of questions the Department asked about labor rate determination, shop referrals to consumers, DRP agreements, reimbursement caps or thresholds and other claims practices by the insurers. The insurers were asked, for example, how many DRP shops they have in Texas (State Farm = 636, Allstate = 388, Progressive = 277, GEICO = 56, Farmers = 285), and what percentage of their claims in 2009 went through DRP

facilities (State Farm = 50%, GEICO = 35.2%, Farmers = 32%, Allstate = 23.7% of 1st-party claims and 12% of 3rd-party claims; Progressive said it was providing this information to the Department in a supplemental response). The insurers were asked, “Does your company set caps or limits on the reimbursement rates for certain labor, services, parts and/or materials, e.g., paint?” State Farm and Farmers said they do not. Allstate said thresholds and pricing guidelines are negotiated individually with its DRP shops; for non-DRP shops, the company said, thresholds may be used and “additional costs are negotiated with the shop to arrive at an agreed repair cost.” Progressive said it has a “local payment authority” for its claims reps on paint materials, but said it is not a “cap” and “does not represent the maximum we’ll pay on a per vehicle basis.” The amount is sufficient for most estimates, Progressive said, but if the requested amount exceeds it, the claims rep should ask for supporting documentation and also may reference Mitchell’s paint and materials calculator “to confirm or negotiate any differing amounts.” GEICO, too, said it has no caps, only an authorization level on materials “to alert the adjuster to reviews any repair facility charges that appear abnormal in order to determine the appropriateness of such charges.” The Texas survey of insurers was prompted by a petition circulated by a handful of Texas shops asking the Insurance Department to request claims processing procedures and information from the insurers. Larry Cernosek, owner of Deer Park Paint & Body in Pasadena, Texas, presented the petition to the Insurance Department, and helped review drafts of the survey questions. All five of the insurers prefaced their responses to the Department of Insurance by saying the information and documents should not be disseminated beyond the Department. But Cernosek filed an Open Records Act request with the Department to receive copies of the responses. – As reported in CRASH Network (www.CrashNetwork.com), September 27, 2010.

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Texas Law Enforcement Vehicles Hard Hit by Takata Airbag Recall Say TV News Reports Given that more than 30 million vehicles are affected by the massive air bag recall, a few local vehicles may not seem noteworthy, but for a Sheriff’s department the recall is taking a toll. Included in the 30 million are 2005 to 2010 Dodge Chargers in use by many law enforcement departments across the United States. Texas law enforcement vehicles have not been spared the recall, according to TV reports by Dallas’ NBC5. Ten Ellis County Sheriff’s Department vehicles are not currently being used after Sheriff Johnny Brown ordered them out of service when he learned they fall under the massive nationwide recall of defective Takata airbags that when deployed can rupture internally with too much force and send metal fragments flying into the cabin of the vehicle. “We made the decision at the time to park all our 2010 units,” said Lt. James Saulter. “We don’t want a deputy getting hurt or somebody that’s been arrested getting hit with flying fragments, as well as we have folks that ride out with us, and we didn’t want anybody getting hurt.” Saulter said the department was

notified the parts to take care of the recall were not available. “It’s a huge impact,” Saulter said. “But we definitely want our citizens to know it’s not going to impact us being able to answer calls or take care of them.” NBC 5 reached out to Fiat Chrysler Automobiles and was told the parts are now en route to Ellis County and service for those units is imminent. “Customer safety is a top priority at FCA US LLC. Accordingly, we are executing this recall campaign in the most expeditious manner possible, keeping NHTSA fully apprised of our progress,” said a statement from the company. With safety concerns looming, some departments immediately started repairs when the parts were available, including both Irving and Dallas police departments. In Dallas, about 530 of the departments Dodge Chargers fall under the recall, according to Equipment Building Services representative Charitta Johnson. However, Dallas Police did not remove any of the recalled vehicles from service. Johnson tells NBC 5 the recall did not instruct

U.S. on Pace for Deadliest Driving Year Since 2007, Says National Safety Council

The National Safety Council estimates traffic deaths are 14 percent higher through the first six months of 2015 than they were during the same period in 2014, and serious injuries are 30 percent higher. From January to June, nearly 19,000 people died in traffic crashes across the U.S., and more than 2.2 million were seriously injured, putting the country on pace for its deadliest driving year since 2007. Costs are also up. The six-month estimated bill for traffic deaths, injuries and property damage is $152 billion—24 percent higher than 2014. “Follow the numbers: the trend we are seeing on our roadways is like a flashing red light—danger lies ahead,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Be a defensive driver and make safe decisions behind the wheel. Your life really depends on it.” While the high death and injury toll could be due to many factors, an improving economy with lower gas prices and unemployment rates herald increases in vehicle miles traveled. Average gas prices are 30 percent

lower than they were in 2014 and are projected to remain relatively stable heading into 2016. This generally means an increase in traffic; more people can afford to drive, and many travel longer distances and take vacations. To help ensure safety, the Council recommends drivers: ● Make sure every passenger buckles up on every trip ● Designate an alcohol and drugfree driver or arrange alternate transportation ● Get plenty of sleep and take regular breaks to avoid fatigue ● Never use a cell phone behind the wheel, even hands-free ● Stay engaged in teens’ driving habits. Teens are three times as likely to crash as more experienced drivers. Learn about your vehicle’s safety systems and how to use them. My Car Does What can help drivers understand the ins and outs of features such as adaptive cruise control, blind spot warning systems and backup cameras.

that the vehicles should not be used. In Irving, 46 of the police department’s more than 250 vehicles are affected by the recall. The department has already repaired 10 of those units and is continuing repairs on others. “It really hasn’t affected us too bad. Some of these are unmarked, they might be in use by our detectives or not in use every day,” said Irving Police Department spokesman James McLellan. “Only a portion of those are marked cars, and those are being called in as they have the parts and paperwork for them, so it really doesn’t have an impact on our operations.” Chrysler Fiat Automotive also pointed out there are two airbag inflators that are subject to recall, Alpha and Beta. All deaths have been associated with the Alpha inflators. FCA vehicles have never been equipped with Alpha inflators, according to the company. The company is aware of an issue with a Beta inflator in a 2006 Dodge Charger, which resulted in non-life threatening injuries, according to FCA. Fiat Chrysler told NBC 5 they are not using Takata parts to replace the potentially defective inflators.

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CCC Information Services Inc. (CCC) announced on July 22 enhancements to its consumer solutions, helping repair facilities provide a more streamlined experience to customers throughout the repair process. CCC ONE® UpdatePlus will now offer text messaging that includes pertinent shop and estimate information. CCC ONE® Repair Workflow will now include digital signature capabilities, allowing customers to authorize repair work at the vehicle using the CCC ONE® Touch application on a mobile device. “Consumers expect hassle free interactions with the companies they do business with,” said Mark Fincher, VP, Market Solutions, CCC Information Services Inc. “We’ve looked at our solutions to see how we could change them in order to create high-impact, low-touch interactions that don’t require a phone call or sitting in a lobby waiting for paperwork. We’re excited to introduce enhancements to CCC ONE UpdatePlus and CCC ONE Repair Workflow to enable a better customer experience, while helping our repair facility customers be more efficient.” Call 877-208-6155 for more info.

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Hot Topics Discussed During Mitchell’s Q3 Industry Report by Stacey Phillips, Assistant Editor

During Mitchell’s August review of its Industry Trends Report for the third quarter of 2015, Greg Horn, Vice President of Industry Relations and Data Analytics, highlighted a variety of topics of interest to attendees. This included addressing rumors and misconceptions surrounding the new Ford F-150. Ford has announced discounts of up to $10,000 on the aluminum-bodied F-150, depending on trim level and power train. While some in the industry are saying this means slow sales and/or buyers are rejecting aluminum, Horn said this is a misconception. “In a new vehicle launch, car makers typically over product load top-of-the-line models.” He said the rebates are designed to “move a buyer up to the next level,” so they purchase a more expensive vehicle. The F-Series reported a modest gain this quarter, although overall sales are down 1.3 percent. Horn said much of this is due to a ramp up of production. “There was a lack of availability of all model ranges of the F-150. As

production is now fully up to speed and they are meeting demand plus incentives, I think you are going to see the latter part of the year look good for the F-150. The average transaction price of an F-Series pickup was more than $44,000 per truck, which is $3,600 higher than last year. “The all-new F150 is turning twice as fast on dealer

During a new Chevy commercial, the Silverado and F-150 are compared. Chevy hired an independent firm, AMCI Testing, to document the cost and time for repairs. Based on the results, Chevy said it took twice as long and cost more to repair the Ford F-150. Horn pointed out that it may be a risky campaign for GM, since it uses aluminum parts on its existing Silverado. In

“I think we’re going to repair more vehicles than total out vehicles in this year,” — said Greg Horn lots than the industry average for halfton pickups, as Ford continues building dealer stocks,” said Horn. Although the 2015 Ford F-Series continued to be the top-selling full-size pickup truck in the United States during July, Horn said the Chevrolet Silverado is closing in. The Silverado showed the most improved for both the month and year to date, selling 33.9 percent more in July this year than July 2014. He mentioned Chevy’s new ad campaign, which he described as “provocative.”

addition, the company announced that it will be using a predominantly aluminum structure in 2018. Horn told attendees that after the Insurance Institute for Highway Safety (IIHS) announced repair costs being higher for the F-150, Ford disputed this finding, saying their studies show that costs are actually slightly lower for aluminum vehicles. Horn pointed out that the test used by the IIHS was unusual because they used two F-150s crashing into one another (a 2015 steel-bodied vehicle and a 2015 aluminum-bodied

one), which brings up the question of mass. He said it would be interesting to see the same type of vehicle being used side by side. Horn also conducted a live poll during the broadcast. Out of the 528 attendees, 70 percent participated in the survey. When asked if the F-150’s aluminum structure will hurt sales, 73 percent said no. Ninety-two percent of those who answered the poll said they don’t think repair costs will be more for the F-150. In terms of insurance rates, 65 percent said they would be more expensive. Horn plans to share these findings with Ford.

Average Appraisal Values & Estimates During the presentation, Horn discussed the average age of vehicles, actual cash values and actual appraisal values. Since 2002, the average age of a car has steadily increased and Horn said it has now hit a record high of 11.5 years old. Cars 16-24 years old also hit a record of 44 million units and cars on the road that are 24 years and older hit a high of 14 million. “We have an aging vehicle population,” said Horn. “We had thought ear-

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lier that with record new vehicle sales of 17 million units that this trend would reverse itself and we would start to see a newer average age. What’s happening is we have a record number of light vehicles on the road at 257.9 million.” This is up from 239 million five years ago. He attributed it to the fact that fewer vehicles are being scrapped than before. When looking at the average age of a vehicle being repaired, Horn said the second quarter of 2015 showed it was 7.42 years old. The average actual cash value showed a record value of $14,794 and the appraisal value was $2,884. When looking at auto physical damage (third party losses) the average vehicle age was 7.77 years old. The average actual cash value was a record $13,983 and the average appraisal value was $2,620. Horn said by looking at these numbers it’s a good indicator of the repair versus replace comparison. “I think we’re going to repair more vehicles than total out vehicles in this year,” he said. He then looked at the three factors that make up a repairable estimate: parts, labor and paint materials. In the second quarter of 2015, he found that labor dollars were actually the largest percentage of the overall

contribution to repair costs. In terms of the number of parts used per repairable estimate, the OEM percentage was down slightly at 66.47, compared to the second quarter of 2013 and 2014. Meanwhile, there was an increase in aftermarket parts at 14.52 percent, and recycled parts at 12.95.

Ford has announced discounts of up to $10,000 on the aluminum-bodied F-150, depending on trim level and power train

Remanufactured parts, the lowest percentage of parts dollars, are mainly categorized into two categories: bumpers and alloyed wheels. Horn said the availability of these parts, due to the cost of remanufacturing and availability of plastic bumper covers, is significantly lower than a few years ago. There is also a growing trend using more aftermarket covers. “We’re starting to see the overall decrease in the percentage of parts dollars towards re-

manufactured parts,” he said.

Replacing Damaged Parts Mitchell’s feature article this quarter addressed, “How Often Are the Top Damaged Parts Replaced.” Horn said that out of the number of claims made through the repairable system, 68 percent had a bumper cover included. The replacement rate was 72 percent. “That is a very very high percent; 31 points then the next most replaced part, the fender.” He advised both insurers and repairers to look closely at how bumper covers are handled. He recommended they be efficient when ordering, replacing or repairing bumper covers. “You really need to focus on expertise,” said Horn. The third most common involved part is the bumper absorber. “The takeaway is to look at bumper covers, and make sure appraisers are making the optimal decision for that bumper cover, whether it is repair versus replace,” said Horn. Mitchell’s Industry Trends Report can be accessed online: http:// www.mitchell.com/industry-trendsreport/itr-2015-q3-apd/index.html. For more information, contact Mitchell@lewispr.com.

AkzoNobel Launches U-Base for U-TECH Basecoat System for Commercial Builder and Refinish Markets AkzoNobel’s Vehicle Refinishes business released a new U-TECH basecoat system U-Base, designed for the commercial builder and refinish markets. It is a two-component polyurethane basecoat system and replaces the Polybase and Polybase Plus systems. The U-Base basecoat system introduces four components: U-Base Binder, R300 Reducer Fast, R300 Reducer Slow and Metallic Wet Blend additive. These components work with the existing U-TECH toners to create an all-in-one system for basecoat and single stage applications. U-Base utilizes a simple mix ratio of 3:1:1 and offers a ready-to-spray low VOC HAPs-compliant solution with less than 3.5 lbs/gal, making it a universal fit for all refinish regulated markets. “For the painter, the system lives up to the U-TECH brand promise of Better process, better results,” said Kari Greason, commercial vehicle segment manager for AkzoNobel’s Vehicle Refinishes business in North America. “It is extremely easy to use. With the scale and size of jobs in this segment, most painters believe that the better and more easily paint ‘wets up’ during application, the better the end result.

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FACA / Ray Gunder Real-Time Labor Rate Survey is Underway in Florida, Other States Also The Florida Auto Body Collision Association (FACA) has joined forces with Ray Gunder to sponsor the Ray Gunder Real-Time Labor Rate Survey in Florida. In so doing, FACA supports Florida shop owner, Ray Gunder of Gunder’s Auto Center Inc.’s selection of an innovative young company, National AutoBody Research (NABR), to conduct a series of nationwide Gunder Labor Rate Surveys. One reason is NABR’s Survey Methodology, a second is its unique Survey Criteria, and a third is that its Survey Results are viewed in real-time. The FACA / Ray Gunder RealTime Labor Rate Survey has two primary purposes. First, to provide Florida collision repair shops with the current Prevailing Market Rate Ranges (PMRR’s) in their markets which more accurately reflect labor and shop rates than does one single “prevailing rate.” Second, based on their cost of doing business, to provide Florida auto body repairers the opportunity to enter the fair and reasonable labor and shop rates they would charge to attain sufficient profitability, if insurers did not adversely influence their rates.

Survey Methodology True Real-Time Survey by Geographic Area, Zip Codes, and Mileage. National AutoBody Research’s Variable Rate System surveys are performed continuously in real time rather than as a “snap shot” of rates measured at a fixed point in time as is done by other survey companies. The VRS technology determines labor rate ranges (Prevailing Market Rate Ranges or “PMRR’s”) down to the ZIP

code level together with a mileage distance from the shop’s zip code which better reflects a shop’s competitive market. It is not limited to a state, county, city, or other predefined region.

Survey Methodology for the FACA / Ray Gunder Real-Time Survey As soon as a shop completes the FACA Ray Gunder RealTime Labor Rate Survey, Online its rates are immediately entered into the VRS system and the PMRR’s are computed in real time for searches of 100 miles from the zip codes centrally located in each of the 4 Regions (Northwest, Northeast, Central, Southern) (See Map). The VRS then computes the unique PMRR’s for each of the 4 Regions and the entire State of Florida (See Tables below). Among many analysis and comparisons that can be made, this unique computation of rates helps shops see how their rates compare with shops in the other Regions. 3 Shop Groups. For the FACA / Gunder Survey, three different groups of shops have been selected to be surveyed. The first group, “Total Shops,” includes all non-certified and certified shops. The second group, “I-Car Gold Class Shops,” is comprised of only shops with I-Car Gold certifications. The third group, “Shops with Multiple Certifications Excluding ICar Gold,” is comprised of shops with two or more certifications from the list of ASE, Verifacts, Assured Performance, or Original Equipment

I-CAR® Adds Nick Notte to Leadership Team

I-CAR®, the Inter-Industry Conference on Auto Collision Repair, announced that Nick Notte has joined I-CAR as Director, Finance and Operations. As a member of the leadership team reporting to John Van Alstyne, CEO & president, Notte will lead the Accounting and Finance, Data Services, Information Technology, Project Management and Lean Process Improvement teams. Notte will be based at I-CAR’s Training Support Center in Hoffman Estates, IL. “Not only does Nick bring deep

background across the collision repair industry, he is also recognized for his contributions to our industry, and he brings solid operational and financial leadership Nick Notte joined experience to the I-CAR as Director, Finance and role,” said Van AlOperations styne.” Before joining I-CAR, Notte was most recently with PDR International as COO.

58 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

Manufacturer (OEM) factory certifications. The VRS differentiates between quality of shops to justify higher labor rate payments. Most insurance companies pay a single rate to shops, regardless of their level of training,

certifications, and equipment. By contrast, the VRS methodology purposefully uses these factors to differentiate quality among shops, empowering them to charge higher rates than other shops with lower levels of training, certifications, and equipment.

FRP Rates. FRP rates are the fair, reasonable, and sufficiently profitable rates that shops would charge if insurers did not adversely influence repair labor rates. The FACA / Gunder Survey along with entering their current door / retail rates, provides Florida auto body repair shops the rare opportunity to enter their FRP rates based on their shop’s actual cost of doing business.

Survey Results Seen in Real Time FACA and Ray Gunder are also making the results available to the public. For the first time in the history of labor rate surveys in the Collision Industry, the collection and computation of rates can now be viewed continuously in REALTIME. The VRS documents these changes by a date and time stamp as seen below. The map provides a visual orientation of the location of the zip codes from which the 100 mile searches were conducted. For more information go to http:// www.nationalautobodyresearch.com/ labor-rate-surveys.html

Team PRP Nationwide Recycling Network Adds Ohio’s Milliron Auto Parts, Inc. Milliron Auto Parts, Inc., located in Mansfield, Ohio, has become the newest automotive recycler to join with the Team PRP nationwide network. “I am extremely excited to announce the addition of Milliron Auto Parts to Team PRP,” stated Team PRP’s Executive Director, Mark Gamble. “They are a key addition within our Midwest expansion that provides a critical transportation link to our Northeast partners, as well as benefiting our customers with expanded inventory and quicker delivery. Their inclusion certainly provides a building block for expansion in Ohio, and continues our strong momentum in adding first-rate partners across the nation.” Grant Milliron founded Milliron Auto Parts in 1954. Currently owned and operated by his son, Karl Milliron, this second-generation business now operates a hybrid facility, conducting its full-service operation alongside of its newly founded selfserve You Pull and Save business. Milliron operates on an 18-acre facility with 40,000 square feet under roof, and employs 26 individuals. “The Team PRP family of recy-

clers is the right choice for Milliron to be aligned with,” explained Karl. “Over the last several years, we have seen major industry shifts that have changed the landscape in which we operate. I have watched the Team PRP organization grow over the years, and I am excited about the direction in which it is heading and the leadership taking it there. By joining Team PRP, we help preserve our existence in this industry and allow ourselves the best opportunity for profitability.” Milliron Auto Parts, according to a press release, “has placed strong emphasis on environmentally friendly and best management practices since its inception. We also place great importance on modernization and use of current technology to provide the highest quality service to their customers.” Milliron’s professional industry affiliations include Automotive Recyclers of America (ARA), United Recyclers Group (URG), and Ohio Auto and Truck Recyclers Association (OATRA).

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 59

Ben Komenkul Became WIN Member to Support Women in the Workplace by Ruth Weniger

Ben Komenkul, Vice President at ClaimForce, is a man among (wo)men. As one of a handful of male members of Women’s Industry Network, Komenkul is so convinced of the value of women in the workplace and in his workforce, he not only joined the organization in 2011, but he has attended every eduBen Komenkul, cational conference Vice President at since he joined. ClaimForce joined We talked with WIN in 2011 Komenkul about the value of his membership in this mostly female organization.

Tell me a little about yourself: I started in the insurance industry when I was 18 in a sales position, representing life, property and casualty policies. I had family that was in the insurance business, so you could say that it was just in my blood. Throughout my career I have worked in various capacities with companies that were all somehow connected to insurance. Now, I am vice-president at ClaimForce.

Tell me about your organization and what you do” With ClaimForce, we saw an opportunity to use technology to improve the claims process. At the same time, we are independent and we provide a sort of ‘Angie’s List’ of the insurance world. Women make up a large portion of our corporate office, probably 40%. Of that group, two key roles, VP of Technology and Material Damage Vendor Manager, both traditionally male roles, are filled by our female leaders. And in the field, women make up about 25% of our total force.

Why are you a member of WIN? I first heard about WIN three employers ago, and in that particular company only 15-20% of our appraisers were women. When looking at the business, I noticed that those female appraisers’ estimates were very detailed and complete—we seldom had issues with their “sheets.” They just didn’t miss the small things. What I took from that is that I wanted to learn more about how women think, work and communicate. That’s when and why I joined WIN…to learn. What value has the organization (WIN) brought to you personally or to your or-

Enterprise Releases Second Quarter Rental Data

The national average length of replacement rental (LOR) rose slightly in the second quarter of 2015 to 11 days overall, reversing a downturn seen in the first quarter’s data. Compared with the second quarter of 2014, the LOR increased 0.3 days and was up 0.5 days over the 5-year average. The quarterly data, gathered by Enterprise’s Auto-

mated Rental Management System® (ARMS), tracks the length of time replacement vehicles are rented to collision center customers and is considered a proxy for vehicle repair time. Though an increase in accidents due to weather may have played a role in the second quarter LOR increase,

there were likely other contributing influences, according to Frank LaViola, assistant vice president of collision industry relations for Enterprise. “While some regions, such as the Midwest, experienced wetter than normal weather conditions, others were below normal and still increased in LOR,” said LaViola. “We need to look at other factors that may be driving longer cycle time. Those could include technician shortages and training, the complexity of newer vehicles being repaired and other issues, such as parts delays.” The Northeast region led the nation with the highest LOR at 12.3 days. The lowest LOR, 9.4 days, occurred in the Northwest region. The Mountain Region saw the largest increase in LOR, 1.2 days, due in part to the recent hail catastrophes in Colorado. The ARMS digital management platform enables repair centers to book rental reservations and send vehicle status updates to insurance partners and customers. In addition, repair centers can track, measure and forecast labor needs, and generate monthly reports through ARMS. To learn more about the ARMS Automotive Suite, visit www.armsauto suite.com.

60 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

ganization? Aside from giving me the opportunity to network with segments of the industry that I would simply not be exposed to, WIN has helped me relate better to both my male and female clients as well as my employees. Witnessing the co-operation and willingness to work together across this entire organization has been incredible. Isn’t that what we strive for in all of our companies? I was recently at a conference and was acutely aware of the women in the room being the minority…just as I am the minority at WIN conferences. That role reversal gave me a whole new perspective on how I choose to interact when I attend these events. At that same conference I saw that there was a group of women taking a picture. They were from all segments of the industry but the energy and co-operation around this group was remarkable. It turned out that this was a “WIN photoop.” There is no other organization that I have either been part of or witnessed that demonstrates that level of “community.”

What advice do you have for business leaders who may consider joining WIN or sending their female execu-

tives/staffers to the educational conference? Nobody reaches success without the support of the women in our lives. Starting from our mentors, colleagues, assistants, to our partners at home, women are the ones men seek for encouragement when we need it most. WIN, being the sole organization in our industry that encourages more female leadership, deserves to hear that we, as men, support WIN as they work to support their members and their careers. You don’t need to be a woman to understand WIN’s contributions to our collision industry. If you support WIN, you are supporting our daughters, our wives, our colleagues, and our friends. WIN gives women an anchor and motivation to do something more; it gives them inspiration to be more than they ever imagined. So, what would I tell them? I would say “send your employees to conferences, become a member, or sponsor the organization.” It’s the right thing to do, it’s the smart thing to do and it’s a great business decision. Opportunities have opened up for me at WIN and attending WIN conferences has even helped me communicate better with the real decision maker in my home.

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 61

New Sherwin-Williams Web-Based System Aims to Save Shops Time & Increase Profit by Stacey Phillips, Assistant Editor

A new web-based system developed by Sherwin-Williams Automotive Finishes was designed to help shops decrease the time it takes for the paint selection process to less than five minutes. After being tested by hundreds of shops across the United States and Canada, the company’s Formula Express 2.0 color retrieval system was officially launched in August. John Ceglarek, color systems manager for Sherwin-Williams Automotive Finishes, said the new FormulaExpress 2.0 Color Retrieval System was designed to achieve the best color match results in the shortest possible time, which can result in improved profitability, cycle time, and customer satisfaction. “The problem with so many of the existing color retrieval systems is that they are slow, cluttered, and difficult to enhance, change or maintain because they are built on aged platforms,” he said. Ceglarek said color selection can typically take seven to eight minutes or even 30 minutes or sometimes more. “A significant percentage of vehicles don’t fit the mold,” he said. “Those are the ones that cause that time to identify a color to skyrocket. It’s those non-typ-

ical things going through your process that are most disruptive in the body shop.” He said that if just one vehicle in 10 is difficult to identify color, it can completely disrupt the entire lean process in the repair facility. “Those were what we were trying to eliminate,” said Ceglarek. It took approximately two years for Sherwin-Williams, a manufacturer and distributor of automotive refinish and

fleet/commercial transportation coatings and sundries, based in Ohio, to develop the product. Ceglarek said that the faster system will be more efficient for the automotive repair industry. “With FormulaExpress 2.0, painters and technicians will spend much less time picking the right color for the job, and much more time delivering vehicles,” said Ceglarek.

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“This will increase through-put, productivity, and profit in their shop.” Formulas are sorted by popularity instead of the “standard with alternates” method widely used by many existing color retrieval systems. Additionally, FormulaExpress 2.0 has a patent-pending Color Filter™ feature. This feature helps the painter select from a list of color variations by selecting a few user-friendly filters. Ceglarek said that no other system has this way of picking from a set of variations. When Autobody News talked to Ceglarek about the new product, he demonstrated how a painter is able to look at the various color options on the screen to help make a decision. He noted that they can be sorted by most likely to match vs. least likely to match which really helps make color retrieval faster and easier. “Instead of doing it the way traditional software would to add more information to look at, we take information away,” said Ceglarek. “We start to take away data from the screen that we know isn’t relevant to try to help [painters] make those decisions faster.”

Unlike other systems that require the user to know the specific information about the vehicle such as formula code, color code, color chip, etc., the new system allows the user to enter whatever is known about the vehicle. “The system provides intuitive search functionality, and is extremely fast, reliable and provides real-time updating,” he said. FormulaExpress 2.0 also provides storing, tracking and reporting. Designed to work with multi-platforms including tablets, smartphones and PCs, Ceglarek said it has the most updated color information readily available, 24/7, 365 days a year. He also said the new FormulaExpress 2.0 system is extremely versatile. “It is literally functional with every automotive finishes intermix and factory pack system Sherwin-Williams provides, with access to more than 750,000 color formulas,” he said. It also works in conjunction with Sherwin-Williams Automotive Finishes color tools, including the PROSPECTOR® color reference system and Color Works® The Match Box (for fleet refinish and OEM colors). For more information about Sherwin-Williams Automotive Finishes FormulaExpress 2.0, visit www.sherwin -automotive.com/formula-express or call 1-800-798-5872.

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PartsTrader and State Farm Credited with Increased Chrome Bumper Sales for LKQ Since State Farm implemented PartsTrader as its electronic parts ordering partner, its use of aftermarket parts appears to be changing based, in particular, on increased chrome bumper sales. Last summer State Farm released a document titled “Replacement Parts Promises” which suggested new aftermarket and recycled parts policies. Now, more details have been revealed of State Farm impacting the growth of aftermarket chrome bumpers from quarterly financial statements by LKQ. LKQ CEO Rob Wagman told analysts during LKQ’s most recent July 30 quarterly conference call that chrome bumper sales were up nearly 16.9% and attributed it to the nation’s No. 1 auto insurer. In previous conference calls Wagman has cited State Farm purchasing aftermarket chrome bumpers as a factor in increased sales, as recorded in the Seeking Alpha website’s transcripts of the calls. State Farm has been out of general aftermarket purchasing since October of 1999, when the company “temporarily” suspended the use of aftermarket crash parts. At the time Edward B. Rust, chairman and chief executive officer State Farm Mutual Automobile Insurance Company, said, “We don’t want

our policyholders caught in the middle of the lawsuit-driven confusion and misinformation about the quality of the aftermarket parts we specify. To prevent that from happening, we’ve decided that the best course for now is to begin specifying only crash parts made by auto manufacturers.” In a consumer document released July 2014 called “Replacement Parts Promises” on the State Farm website, the company says: “We're committed to your satisfaction regarding new nonoriginal equipment manufacturer (nonOEM) and recycled parts used in the repair of your vehicle. Below please find additional information regarding the State Farm promise of satisfaction.” A link to a PDF entitled All States but Indiana is viewable at https://www .statefarm.com/claims/resources/auto/ replacement-parts-promises. The linked document states in part that “State Farm® keeps the promise of “Good Neighbor” service every day as we pay individual claims. Our promise includes a commitment to your satisfaction regarding new non-original equipment manufacturer (non-OEM) and recycled parts used in the repair of your vehicle. “When a damage estimate is prepared, it may include competitively

priced, readily available new nonOEM parts, recycled parts or new parts provided by the manufacturer of your vehicle.” Wagman told investors on April 29, 2014, that the insurer’s return to aftermarket parts with certified chrome bumpers came “in close conjunction” with its partnership with PartsTrader. On Oct. 30, 2014, LKQ CEO Rob Wagman cited “again really good growth on chrome bumpers” for the third quarter, with the company up 22.4 percent likely partly because of State Farm interest. He also told investors that GEICO had just become the No. 2 auto insurer, and “they’re very active users of our products.” On Feb. 28, 2015, Wagman reported a 22.3 gain in fourth-quarter 2014 chrome bumper sales and told analysts LKQ was “cautiously optimistic” State Farm would use more aftermarket parts. Despite the big 2014 first quarter of chrome bumper sales, purchases of the parts were still up 19.5 percent, Wagman said April 30. “We continue to really raise the number on the products they (State Farm) are writing in the aftermarket, in the bumpers,” Wagman said. “Looking at these particular part types, year-over-year sales of after-

market chrome bumpers were up 30 percent in January, 29 percent in February and 33 percent in March. While some of this increase may be weatherrelated, we believe that some of the increase is related to State Farm’s new policy regarding aftermarket certified chrome bumpers. We continue to have open dialogue with State Farm, and we hope that they will continue to expand their use of our aftermarket product offerings.” Wagman later said in the call that LKQ wasn’t involved in the decision. “They came upon this on themselves, and they did it in conjunction with the rollout of PartsTrader,” Wagman said, according to the transcript. “And as PartsTrader has gone across the country, obviously, we’ve seen more and more sales. Our reps that are on PartsTrader reviewing those estimates know about those 2 part types and are pushing them hard.”

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I-CAR® Launches New ‘Production Management’ Role to Increase Shop Efficiencies, Enhance Lean Processes and Improve KPIs I-CAR®, the Inter-Industry Conference on Auto Collision Repair, launched its new Production Management curriculum that provides end-to-end instruction designed to drive bottom-line improvements in productivity and profitability throughout the collision-repair process. Available now, Production Management is a part of I-CAR’s Professional Development Program™ (PDP), filling an important curriculum placeholder that was planned when the PDP was launched in 2010. The new role and curriculum, which goes beyond technical training, was developed using direct industry input, collaborating with production managers, shop owners and experts from the collision repair industry. It provides insight into critical issues and multiple areas of the shop floor, while enhancing critical-thinking and problem-solving skills, enabling participants to quickly address complex problems shop personnel face in collision-repair production. “The broad-based process focus designed into this new Production Management Role allows shops to empower all of their resources, finetune their KPI’s and realize maximum ROI on shop-wide training invest-

ment,” said John Van Alstyne, CEO and President of I-CAR. “This industry has a strong, immediate need for production management training,” said Josh McFarlin, I-CAR Director of Curriculum & Product Development. “By working directly with shop owners and experts across the shop floor, we were able to build a unique curriculum that accurately reflects critical areas and challenges the industry faces.” A core component of the Production Management curriculum is the Learning Culture Overview, the first course of the sequential series. Understanding and embracing a culture of learning and knowledge-sharing as a long-term strategy is key to enhancing and maximizing a facility’s success rate in KPIs. Courses available now are part of the ProLevel® 1 pathway for the role within I-CAR’s industry-recognized PDP. Additional courses are under development for subsequent ProLevels as students progress through the curriculum. This role introduces the idea of pre-requisites to the PDP, as each course in the Production Management role must be taken sequentially, thereby minimizing course-to-course

Auto Theft and Vandalism Rise With the Temperature

Theft and vandalism is the leading cause of non-collision auto claims in the summer, according to the latest Seasonal Smarts Digest from Farmers Insurance. Among Farmers Insurance customers during the two-year period of 2013 and 2014, almost 30 percent of national claims filed in July, August or

September were related to vandalism, mischief and partial or total theft. California saw the most third-quarter theft and vandalism-related claims; nearly 40 percent of its claims came from vandalism, mischief and partial theft, and another 40 percent were due to total theft. Texas, Oregon, Washington, and Arizona also saw higher rates of theft and vandalism claims. “Warm weather means more people are out and about—and that includes thieves and vandals,” said Paul

Quinn, head of claims customer experience at Farmers®. “Whether you’re leaving your car at a trailhead or a tourist attraction or just parking it in your home’s driveway, you should always make sure it’s not an easy target for criminals.” Quinn said drivers should consider putting the following tips into practice to decrease the chances that thieves will target their vehicles: ● Park as close as you can to your destination, in a well-lit area, and make note of where you parked. ● Thieves are most likely to target engines, air bags, radios, GPS units and portable handheld devices, according to the NHTSA. If the navigation device is mounted to the window, remove the mount and wipe off the ring left by the suction cup. ● Thieves commonly go after the third-row seat from an SUV. If a car has a removable third row, consider removing it and leaving it in the garage if you know you won’t be using it. The complete Farmers Seasonal Smarts Digest can be found online at http://www.farmers.com/ news/seasonal-smarts/.

64 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

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● Learning Culture Overview (PM101E01) ● Before the Repair Starts (PM105E01) ● Matching the Repair to the Team (PM110V01) ● Workflow Essentials (PM115E01) ● Synchronizing Workflow through Team Communication (PM120L01) ● Problem Solving for Workflow Changes (PM125V01) ● Quality Is Your Business (PM130E01) ● Optimizing Processes, Equipment and Compliance (PM135E01) ● Developing the Team and the Business (PM140V01) ● Refining the Team and the Businesses (PM145L01)

Students can review detailed information, register for classes and track their training progress for the Production Management curriculum online on www.I-CAR.com. To watch a video about I-CAR’s Production Management Role, visit: w w w. y o u t u b e . c o m / w a t c h ? v = DauZjmikqWA.

Vehicle Safety Inspections Highlight ASA’s Forum

The Automotive Service Association (ASA) hosted the first Service Repair Leadership Forum (SRLF) during NACE | CARS in July. The program included a segment on periodic motor vehicle inspections. Panelists addressed the challenges facing safety inspection programs across the United States, in addition to the benefits of strong programs in states such as Pennsylvania and Missouri. Speakers included: ● Bill Hanvey, Automotive Aftermarket Suppliers Association ● Joe Battista, Parsons Corporation ● Tom Gebbie, Automotive Service Association, Pennsylvania The SRLF vehicle safety segment serves as a run-up to ASA’s second safety inspection and maintenance forum this fall. The forum will bring together shop owners, industry leaders and policymakers to discuss the importance of periodic motor vehicle inspection programs as well as strategies to protect these programs. The forum will be held in St. Louis, MO, December 2. The ASA is the largest not-forprofit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. For info, visit www.ASAshop .org or call (817) 514-2900.

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 65

Continued from Page 26

Second Retirement

he’d just recorded.” And that was how Quint obtained his copy of James Taylor’s “Sweet Baby James” album, the 1970 classic that crossed rock, folk and country charts and cracked No. 3 on Billboard’s album chart that year. Quint’s business also provided memories for everyday Sacramentans. Daisy Smith-Brown remembers her grandfather bringing her to the shop back in the 1960s. “It looked like an old-school auto shop back then, and I liked that. It had character,” Smith-Brown recalled. “My grandpa loved his old cars, and he always said he wanted his cars worked on by real car people … people who loved those cars as much as he did. It’s kind of sad to see it all closed up. It really was

something unique from times gone by.” Quint’s journey to his second retirement covers a wide road map. He acquired his early welding/mechanic education at Grant High School, taking a break to work during World War II and then graduating in 1948. As a youngster, he raced motorcycles and worked at a string of Sacramento automotive enterprises before finally landing at what was then PorterSprague Co., dating back to 1917 when founders Widley Porter and Eddie Sprague were selling radiators at the site. The shop also did sheet metal work and installed auto panels and running boards. Quint and partner Harold Hoff were doing their own thing when the opportunity to buy Porter-Sprague fell into their laps. They purchased the company for $5,000 in June 1964. Quint bought out his partner in 1986. Then

Federal investigators look into sunroof explosions by Amy Davis, KPRC Channel 2 Consumer Reporter

An ongoing federal investigation is looking into what dozens of MidSoutherners recently experienced: cases of spontaneous sunroof explosions. “My eyes are blurry. I can't read anything. I can't see anything on my phone,” said Wade Owens. Owens was on a routine drive to work when he felt small pieces of glass raining into his car and into his eyes. It was no less frightening for Ayesha Farr when she heard the sound while driving her 2013 KIA Optima. “It was closed. Luckily, that day it was closed,” Farr said. “I mean, literally sounded like a gunshot. I was scared because I thought someone was shooting on the highway.” Hundreds of drivers have made

complaints to the National Highway Traffic Safety Administration about the problem. It has even caused Audi and Hyundai to issue voluntary recalls on some models. One YouTube video shows it happening to an Infiniti SUV. When some drivers called other car manufacturers, like KIA, to report what the NHTSA calls “spontaneous sunroof breakage,” the company blamed “external impacts from rocks or other foreign objects.” “They're not taking responsibility because they've had to make the cars lighter,” said Don Phillips. Phillips is an expert on the problem in Shelby County. He consults in accident investigations and specializes in auto glass. He said there are several factors resulting in so many fractured and faulty sunroofs in recent model years. “The main issue is that the glass

came that first “retirement” in November 1996, when Quint sold the business. The operation went under two years later, and Quint jumped back into the game. The shop was actually shuttered from mid-December 1998 until Quint reopened it in February 1999. For his second stretch at the shop, Quint made his longtime friend, Jim Havey, the company president and his daughter, Adrienne Oehler, the secretary-treasurer. They rehired seven of their former workers and personally called old customers to let them know that the “old” Porter-Sprague operation was back. It was Oehler’s suggestion to put out a simple sandwich-board sign at the shop site. It read: “Ed, Jim and the old gang are back!!” “Well, it worked, and we were back in business just like that,” Quint said. Havey is still around and helping in the structure around the sunroof is being made thinner in vehicles,” Phillips said. He said car makers are under pressure from the federal government to make vehicles with better fuel mileage, and they’re doing that by using lighter metals for the frame and auto bodies. “The problem is that going with the thinner materials and the thinner sheet metal in the cars, you're getting more movement, so now you're more on the edge of what they used to be when things were heavier and thicker and more robust,” Phillips said. KIA’s own investigation found no evidence of a defect, but federal regulators opened their own, noting that the rate of reported incidents is a concern. The investigation, which started in May 2014, is still open, but until more car manufacturers issue recalls, Phillips said there are some

Stolen Car of Beaten SW Atlanta, GA, Body Shop Owner Recovered

by Alexis Stevens, AJC.com

A southwest Atlanta shop owner and former school board candidate was in critical condition on August 17 after he was found beaten inside his auto repair shop. Michael Jeter, 52, of Atlanta was supposed to meet his brothers on the night of August 16 for dinner, but never showed up, Officer Kim Jones with Atlanta police said. One of Jeter’s brothers drove to Gordon’s Body Shop on Ralph David Abernathy Boulevard, where he found Jeter covered in blood

Michael Jeter, owner of Gordon’s Body Shop, was found in his car in critical condition on August 17

with severe head trauma. Jeter was not alert and barely conscious, according to police. He was taken to Grady Memorial Hospital, where he remained on the afternoon of August 17. A family member told Channel 2 Action News that Jeter was in the intensive care unit and

66 SEPTEMBER 2015 AUTOBODY NEWS | www.autobodynews.com

The owner of Gordon’s Body Shop on Ralph David Abernathy Blvd. was found severely beaten inside the shop late Sunday. Credit: John Spinks

Quint close down the shop. That included preparations for last week’s online auction of shop equipment and helping Quint with the occasional chore, like reinstalling a fuel tank on a 1948 Chrysler New Yorker Highlander. Quint said the closing of PorterSprague not only represents the end of a longtime enterprise but the passing of a way that auto shops used to do business, doing everything from body work to brakes to glass work to tuneups to paint jobs. “We did it all. That’s just the way it was. You don’t see that much anymore,” he said.

We would like to thank The Sacramento Bee for permission to reprint their article.

www.autobodynews.com CHECK IT OUT! things consumers can do. When it’s really hot out, leave the shade to your sunroof open when you’re not in the car so heat does not build up between the glass and the To advertise shade, putting more pressure onat: the call Advertising Sales glass. 800-699-8251 Getting a sunroof tinted on the inside can prevent glass from showere-mail: ingadvertising@autobodynews.com down on you if the sunroof does break. www.autobodynews.com Drivers already burned by the problem said they will not risk it again. “Probably, my next car, I won’t get a sunroof,” Farr said. You can search your car’s make See the and model in the NHTSA’s database to find out how many others have complained about this issue with your car.

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Thank you to KPRC Channel 2 for permission to reprint this article.

had had two surgeries. advertise A black To Infiniti G37 belonging to callreported Sean Hartman at: the Jeter was missing from business 800-699-8251 — and later recovered by police, Channel 2 reported — but it was not immediatelye-mail: known if robbery was theshartman@autobodynews.com motive, police said. No one was in custody on the afwww.autobodynews.com ternoon of August 17. In 2011, Jeter ran for a spot on the Atlanta Board of Education, but was not elected. We would like to thank AJC.com for reprint permission.

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 67

Proceeds from FinishMaster’s 19th Annual Golf Tournament in Denver, CO, Benefit Children’s Hospital by Chasidy Rae Sisk

On Wednesday, July 22, FinishMaster Automotive and Industrial Paint held their 2015 Annual Golf Tournament at

Omni Hotels and Resorts’ Interlocken Golf Club in Denver, CO. Chris Johns, Tournament Coordinator and Business Development Manager for FinishMaster, stated, “This was our 19th annual FinishMaster golf tournament, and it was attended by 122 body

FinishMaster’s CO sales team shows gratitude to event sponsors

shop personnel, dealership personnel, mechanical shop personnel, insurance companies, rental car companies, manufacturer representatives and manage-

ment, multiple vendors and warehouse providers, ASA members and The Children’s Hospital, as well as the Colorado FinishMaster sales team. The event benefits The Children’s Hospital with the generosity of everyone’s donations, raising over $5000 this year. The event has lasted for over 19 years due to our customers, attendees and manufacturer/vendor sponsorships who all contribute for the great cause of raising money for The Children’s Hospital.” Sign-in began at 7AM with an 8:30AM shotgun start for the four-man scramble. Tournament fees of $125 per golfer included greens fees, carts, GPS, range balls and lunch as well as a chance to win a variety of guest door prizes. Golfers also received goody bags with Cutter and Buck golf shirts, Axalta golf tees, Norton USB Car Chargers, FinishMaster golf balls, AutoStaffNow tee packets, PPG Coozies, ASA-CO Notepads, The Children’s Hospital iPad covers, State Farm Insurance bags, and drink tickets for the course. The yearly event benefits The Children’s Hospital, plus it provides attendees with a fun afternoon of golf and networking with industry members. The event exceeded Johns’ expectations with the generous donations

raised for The Children’s Hospital, and he said attendees responded “very positively with everyone enjoying the golf, camaraderie and business networking. Many travelled from as far south as Colorado Springs, CO and as far north as Cheyenne, WY. This is a great event with longevity in the market and positive results from year to year and for years to come.” According to Johns, “The FinishMaster event went great with perfect ‘Chamber of Commerce’ type weather, pristine Omni Interlocken golf course conditions, an Augusta style barbecue provided and over $5000 worth of door prizes available. It’s important to the industry because it provides a neutral venue for interacting with customers, would-be customers, manufacturer/ven-

The day’s luncheon provided an opportunity for attendees to socialize and network

dor relationships and industry networking, all for a great cause to benefit The Children’s Hospital.”

Participants enjoyed a beautiful day at the range

This year’s Golf Sponsors included 3M, Axalta, BASF, PPG, Norton and Enterprise Rent-A-Car. KLC Equipment and A&H Finishing provided Silver Sponsorships, and Bronze Sponsors were Air Flow Technology, SATA and Evercoat. FinishMaster also expresses appreciation for the sponsorship of Omni Hotel and Resorts, State Farm, Mitchell, PBE, Rex Marketing, Starbucks, Einsteins, AutoStaffNow, Gunslinger Custom Paint, Hacienda Colorado, Chili’s, Edgewater Pizza, Geno’s Burritos, Uniram, Wizards, Innovative Tools, Common Grounds G.C., RKD, Hickory House, Texas Roadhouse, Lowes, UFC Gyms, and Purgatory Cellars Wine.

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Automotive Writer Speculates About Why the AL vs Steel Repair Cost Debate Won’t Be Resolved Soon

“Here’s why we won’t really be able to answer the question of aluminum vs. steel repair costs for a long time,” writes Richard Truett for Crain.com. ● There are too many different kinds of vehicle accidents. The F-150 is going to have to be crashed thousands of times in every conceivable way before we’ll really know about the true cost of repairs. In all likelihood, some repairs will be less and some will be more. ● There are too many insurance companies with different levels of coverage. One body shop operator recently told me many insurance companies don’t distinguish between steel and aluminum repairs. He said it takes longer to repair aluminum and often the owner of the vehicle has to pay the difference between the repair cost and the insurance payout. ● Body shops charge different labor rates. ● The investment needed in tools and facilities to repair aluminum is substantial, more than $100,000 in many cases as body shops have to buy the tools, train the technicians and build a separate area to fix the aluminum-bodied trucks. So, some body shops may be charging a premium to

fix the truck and pay off their investment. “To Ford’s credit,’ says Truett, “the company has made repairs as easy as possible by creating hundreds of small repair panels that can be stitched in to the F-150’s body. And these parts are shipped with the repair instructions. That saves time. “But in many cases, repairing an aluminum panel is more complex than fixing a similar steel panel. The 2015 truck’s body is held together with rivets and adhesive, which usually takes more time to repair than a steel part. Here’s the bottom line: If it turns out there is a significant difference in repair costs for the new truck, Ford will likely do whatever it takes to keep the F-150 competitive. The stakes are simply too high in the highly profitable, hyper-competitive U.S. truck market. We don’t really don’t have enough information to definitively say the new F-150 is more or less expensive to fix.” For the full article go to: http:// w w w. a u t o n e w s . c o m / a r t i c l e / 20150731/BLOG06/150739949/itstoo-early-to-settle-aluminum-vs.steel-repair-cost-debate

More Stringent Auto Recalls in 2015 are ‘New Normal’

U.S. automakers and other vehicle manufacturers overseen by the National Highway Traffic Safety Administration already have recalled more than 32.4 million vehicles in nearly 500 campaigns through early August, according to a Detroit News analysis of government data and automaker reports, says David Shepardson, writing for the paper’s Washington Bureau. That’s still fewer than the 63.95 million vehicles recalled in 2014 in 803 campaigns. But it’s already topped the previous record of 30.8 million vehicles recalled in all of 2004. Several automakers are on pace for a record-setting number of recalls. And the total number of campaigns this year could come close to last year. Accounting for nearly one-third of all U.S. vehicle recalls this year is Fiat Chrysler. It has called back a companyrecord 10.2 million vehicles this year in 24 recall campaigns in the United States, including 77,000 new 2015 Chrysler 200s for an electrical problem that could cause stalling. About 4 million of the automaker’s callbacks are for Takata air bag inflators. The NHTSA has demanded recalls in several instances. In documents released Friday, Volkswagen AG disclosed the agency had demanded the recall of 420,000 cars and SUVs in the

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U.S. for electrical problems that can prevent air bags from inflating; VW had determined it wasn’t a safety issue. Automakers are facing electronic issues they haven’t seen before. Fiat Chrysler recalled 1.4 million vehicles because of concerns they can be hacked and controlled wirelessly. This year’s higher-than-normal recalls also have been boosted by air bag manufacturer Takata Corp.’s decision to declare more than 32 million vehicles defective in the U.S. See related article this issue. More than 14 million of those already had been recalled by automakers last year. New NHTSA Chief Mark Rosekind caught the industry’s attention when he suggested in January that automakers could recall more vehicles in 2015 than in 2014. Sean Kane, president of Safety Research and Strategies, an auto safety advocacy group, said NHTSA’s aggressive posture is prompting carmakers to move faster. “There is a new normal,” Kane said. “Manufacturers are becoming much more diligent about fixing things that they would have been able to get away with doing customer satisfaction or dealer bulletins that NHTSA would have accepted in past. Today, no one’s even going to cut these corners.”

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www.autobodynews.com | SEPTEMBER 2015 AUTOBODY NEWS 69

GM Invests $1.4 Billion for Arlington Plant Upgrades

In its largest single plant investment in the U.S. this year, General Motors announced $1.4 billion for a range of improvements to its Arlington Assembly Plant to more competitively produce high-quality full-size SUVs. The investment allows the plant to be reconfigured with a new paint shop, body shop and general assembly area upgrades. Construction is expected to begin this summer and take approximately three years to complete. Production schedules for Chevrolet Tahoes and Suburbans, GMC Yukons and Yukon XLs and Cadillac Escalades will be unaffected by the construction.

“This super-sized investment reflects GM’s commitment to our fullsize SUV customers who expect nothing but the absolute best from us and their vehicles,” said Cathy Clegg, GM North America Manufacturing and Labor Relations Vice President. “Today’s investment will contribute to Arlington Assembly’s winning tradition marked by strong customer focus, innovative thinking and teamwork.” Since 2011, GM has invested nearly $2 billion in manufacturing improvements at Arlington Assembly including this announcement, the launch of the current full-size SUVs and a new stamping plant.

“I have seen first-hand the success that is possible for a city when GM supports the communities where they work and live,” said Arlington Mayor Jeff Williams. “The city of Arlington has benefited tremendously from the strong business and foundational support from GM. This new investment in Arlington solidifies its continued stewardship and commitment to our community.” This has been a monumental year for the more than 60-year-old assembly plant. Arlington Assembly celebrated its 10 millionth vehicle build, hosted GM’s Board of Directors and provided $100,000 in GM Foundation grants to local community organizations. Mean-

while, the UAW-GM team continues to work regular overtime in the only GM plant to make award-winning full-size SUVs for Chevrolet, GMC and Cadillac customers globally. “By working together, the UAW and GM are making a difference in communities across the United States,” said UAW Vice President Cindy Estrada, who leads the union’s GM Department. The announcement is part of the $5.4 billion GM announced it would invest in U.S. manufacturing over the next three years. Approximately $4.5 billion of the $5.4 billion has been identified, leaving about $900 million to be announced by year-end.

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