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Other States Add More MSO Locations, but Alaska Tops in Percentage Growth by John Yoswick
The fact that shop consolidation has continued at a brisk pace over the last two years shouldn’t come as a surprise to anyone in the industry. However, the state with the fastest pace of MSO growth may be more surprising—Alaska. New research published in CRASH Network shows that the number of U.S. shop locations owned by multiple shop operators (MSOs) with 10 or more locations has increased by more than 40 percent since 2015. Caliber Collision has nearly dou-
bled in size over the past two years, for example, while other large MSOs (ABRA, Gerber and Service King) have also added between 50 and 100 locations each. In addition to this group of large consolidators, there are now more than 20 other regional MSOs that operate 10 or more locations (up from just 13 such chains two years ago). Combined, they add another 269 locations (up from 195 in 2015) to the total. While other states, particularly in the Western and Southern regions of the country, have added more MSO See Alaska Tops, Page 8
State Farm is Dropped from Suit Alleging Coerced Repair Temporarily, 3M Will Be Included When Refiled
See State Farm Lawsuit, Page 34
P.O. BOX 1516, CARLSBAD, CA 92018
John Eagle Collision Center in Dallas, TX, and State Farm were sued in two separate cases for $1 million for allegedly using only adhesive to attach a new roof panel to a Honda Fit rather than welding it, as required by Honda OEM procedures. Matthew and Marcia Seebachan have dismissed their cases against State Farm Mutual Automobile Company, which alleged the insurer influenced an auto repair that didn’t meet OEM specifications in order to increase its bottom line. The lawsuit against State Farm was dismissed only 13 days after being filed.
According to the plaintiffs’ attorney the couple dismissed their lawsuit without prejudice, meaning refiling is likely. The plaintiffs’ law firm has confirmed to Autobody News that the action is procedural because including State Farm in the suit would delay the action against John Eagle Collision Center, which is scheduled to go to trial in early September. The plaintiffs also state that 3M, the manufacturer of the adhesive, will become part of the suit when refiled. The original lawsuits allege that the faulty repair caused the car to crush 33-year-old Matthew Seebachan and his
Change Service Requested
by Ed Attanasio
VOL. 35 ISSUE 9 SEPTEMBER 2017
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CIC Panel Focuses on Legislative Requirements Related to Use of Non-OEM Parts
Manufacturers. “Some insurers will suggest that the consumer consented to their State legislation on disclosure and consumer consent policy when they signed it involving the use of nonoriginally, and they should OEM parts has been proknow what’s in there. We don’t posed – or challenged – in a think insurers do a very good job of explaining to consumers number of states this year. Wayne Weikel of the Alliance of what’s in there. So we think Panelists on both sides of the Automobile Manu[consent to the use of the parts issue squared off at the Colfacturers said lision Industry Conference consumers deserve at the time of the claim] is very important.” (CIC) held in Chicago this disclosure and the At its best, Weikel said, the summer. opportunity to give “Consent is very impor- consent for parts at consent process lays out in tant,” said Wayne Weikel, the time of the claim writing a good explanation to the consumer of what his or her options senior director of state government afSee CIC Panel, Page 24 fairs for the Alliance of Automobile by John Yoswick
Autobody News welcomes readers in Alaska where we are distributing our publication for the first time. If you’re reading this issue in another person’s shop contact us for a free subscription.
NY and CA Off the List of Most Active States for New Dealerships, TX Adds Most Since 2016 Urban Science released statistics and insights from its 2017 mid-year Automotive Franchise Activity Report (FAR), indicating continued stability in the number of automotive dealerships in the United States. For the first time in about 10 years, New York state did not appear on Urban Science's most active list, or a ranking of states which have the most dealerships added each year. California routinely ranks high on the most active list, but also did not land a top spot for the second straight year. “An interesting observation is California and New York, both typically on the most active list, are no longer included on the most active list, demonstrating a period of stabil-
ity,” said Mitch Phillips, global director of data for Urban Science. States that experienced the highest net decrease in dealerships were Illinois and Washington, with a loss of five dealerships each last year. Texas added the most dealerships, gaining nine since 2016. Florida came in second with seven additional dealerships, followed by Pennsylvania at six and Missouri with five. According to the study, as of July 1, 2017, there were 18,199 dealerships (rooftops), a 0.2 percent increase from the January 1, 2017 total of 18,170. The number of franchises, or brands a dealership sells, also experienced a period of stability, slightly increasing See NY and CA off the List, Page 11
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