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VOL. 32 ISSUE 10 OCTOBER 2014
Napa Body Shops Get Jolted After 6.0 Quake
The Newest Shop in Utah Opens November 1
In most parts of the country, snow, tornadoes, floods and other severe weather can lead to an unexpected windfall for body shops. But most of California isn’t usually affected by dramatic seasonal weather. However, when an earthquake hits, like the one that shook Napa, CA, on August 24 at 3:20 a.m. and measuring at a 6.0 on the Richter scale, everyone, including body shops, are impacted. The quake’s epicenter was located approximately 3.7 miles northwest of American Canyon near the West Napa Fault beneath the Napa Valley Marina, just west of the Napa County Airport. The earthquake was the largest to hit the San Francisco Bay Area since
After nearly a year building their new state-of-the-art facility in Southern Utah, Red Rock Collision Repair & Auto Painting is expected to open on November 1, 2014. “We’re planning to be a one-stop shop for everything,” said Josh Borrowman, the general manager of the company. The 16,000 square foot collision repair and painting facility will be located at 765 N. Red Rock Road in St. George, UT. In addition, they are opening a 6,000 square foot mechanical shop on site as well as Red Rock Towing. Since founding Red Rock Collision Repair & Auto Painting in January, the company has operated out of a temporary location in St. George at 1275 E. Red Hills Pkwy.
by Ed Attanasio
See Jolt in Business, Page 14
Most cars damaged by the Napa Earthquake needed just cosmetic work, but obviously some vehicle required much more. (Photo courtesy of Michael Smith)
Federal Court in FL to Rule on Overtime Pay Under FLSA for Auto Repair Employees
See Overtime Pay, Page 10
P.O. BOX 1516, CARLSBAD, CA 92018
A federal court case involving overtime payment for employees under the rules of the Fair Labor Standards Act (FLSA) was filed in State Court February, 2014, and removed to the Federal Florida Southern District Court in July. The court’s ruling in Smoluk v. Action Auto Body, LLC, has the potential to clarify confusing and contradictory positions from the Department of Labor and rulings by
courts with regard to exempt status for employees in automotive repair. The plaintiffs, Jospeh Smoluk and Michelle Smoluk, are suing their former employer, Franck Tatto and Action Auto Body, LLC., for damages exceeding $15,000, excluding attorneys’ fees or costs for breach of agreement and unpaid wages under the FLSA. Franck Tatto and Action Auto Body, LLC., located in Broward
Change Service Requested
by Stacey Phillips, Assistant Editor
by Stacey Phillips, Assistant Editor
Mike Keetch, the owner of the company, managed MAACO Collision Repair & Auto Painting in St. George for the last 10 years prior to starting Red Rock. Keetch has also owned an auto dealership, Approved Auto Sales, in the area for the last four years. With 25 years of experience in the auto body and paint industry, Keetch opened his new company with two distinct departments to differentiate between the types of services provided. The collision repair center offers factory-to-match collision repair using industry best practice repair methods, OEM parts and experienced technicians, who will all be I-CAR certified. Borrowman, who worked with Keetch for the last 10 years, said they See Newest Shop in UT, Page 8
Six Holmes Body Shop Locations Acquired by Cooks Collision Centers, All but Original Shop in Pasadena Cooks Collision Centers, based in Rosedale, CA, has acquired six collision repair locations from Holmes Body Shop. Holmes will continue to own and operate the original Holmes Body Shop location in Pasadena, CA. The transaction is Cooks Collision’s first MSO acquisition in the Southern California market. Terms of the agreement were not disclosed. The Holmes Body Shop locations solidifies Cooks’ position as the largest independently owned and operated collision repair organization in California, with 25 locations throughout the state. The Holmes collision repair centers are located in Alhambra, Canoga Park, Duarte, El Segundo, Riverside and Westlake Village, CA. “We are very excited about Cooks Collision assuming ownership of our six locations,” said Tom Holmes, owner and CEO of Holmes Body Shop. “Since 1972, our team has focused on delivering outstanding customer service and quality collision repairs to our
customers. We made our final decision to join the Cooks team based on the honesty and integrity of the entire
The original Holmes Body Shop location in Pasadena, CA, from which it grew into an MSO with seven collision repair centers throughout the Los Angeles area. This location will continue to be owned and operated by Tom Holmes
Wood family and Cooks employees that we met and dealt with. Our team is excited to join the Cooks Collision organization.” Cooks Collision said Holmes will continue to own and operate the Holmes Body Shop location in Pasadena, CA. See Holmes Body Shop, Page 8
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
Contents
NATIONAL 21st Century Insurance Files Suit Against Two Jersey Physicians for Alleged Auto Insurance Fraud . . . . . . . . . . . . . . . . . . . . . 57 A First-Person Account of the Consolidated MDL Hearing in Orlando, September 11 . . . . . . . . 9 AASP-PA Offers Two New Membership Levels . 61 ABRA Auto Body Acquires USA Collision Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Aluminum Association to Present During SCRS’ OEM Collision Repair Technology Summit. . 67 ASA Announces Plans to Relocate Headquarters . . . . . . . . . . . . . . . . . . . . . . . 49 ASA Confirms Detroit as Location and Dates for Next NACE-CARS Expo . . . . . . . . 65 Attanasio - AASP-MN President Jerald Stiele has Lifetime of Repair Experience . . . . . . . . 58 AudaExplore Study Finds Major Gap in Trust and Customer Satisfaction in Collision Repair Experience. . . . . . . . . . . . . 46 Auto/Steel Partnership to Present During OEM Collision Repair Technology Summit at SEMA Show . . . . . . . . . . . . . . . 66 Boyd Group Acquires Seven Champs Collision Centers in Southeast Louisiana. . . . . . . . . . 61
Victoria Antonelli is Our New Online Content Editor
Contact Stacey at:
Contact Victoria at:
Stacey Phillips
is our new Assistant Editor. She has written and edited for numerous online and print publications over a 15-year period. Stacey graduated from the University of Southern California with a double major in journalism and political science. Born and raised in Los Angeles, CA, she also lived in Calgary, Alberta where she edited several magazines before joining Suncor Energy. There she helped create an online company newsletter that received the Apex Award of Excellence two years in a row. Stacey also co-authored a commemorative history book for the Province’s Institute of Chartered Accountants. After moving back to San Diego in 2007, Stacey has spent the majority of her time writing about local issues. When she isn’t writing, Stacey enjoys playing tennis, reading and spending time with her family.
sphillips@autobodynews.com with your story ideas and news items. 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, David Petro (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
AAMStraining.com . . . . . . . . . . . . . . . . .25 Audi Wholesale Parts Dealers . . . . . . . .64 Automotive Art (Refinish) . . . . . . . . . . . .17 Automotive ID . . . . . . . . . . . . . . . . . . . .30 AutoNation Chrysler-Dodge-Jeep-RamFIAT . . . . . . . . . . . . . . . . . . . . . . . . . .32 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .14 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Dealerships . . . . . . . . . . . . . . .19 BlackWow . . . . . . . . . . . . . . . . . . . . . . .28 BMW MINI of Escondido . . . . . . . . . . . .40 BMW Wholesale Parts Dealers . . . . . . .55 Bob Smith BMW . . . . . . . . . . . . . . . . . .56 Bob Smith MINI . . . . . . . . . . . . . . . . . . .56 Capitol Subaru . . . . . . . . . . . . . . . . . . . .35 Car-Part.com . . . . . . . . . . . . . . . . . . . . .16 Celette . . . . . . . . . . . . . . . . . . . . . . . . . .15 Cerritos Dodge-Chrysler-Jeep-Ram . . .34 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .45 Chief Automotive . . . . . . . . . . . . . . .42, 43 Classifieds . . . . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . . . . .24 DCH Chrysler-Jeep-Dodge-Ram . . . . . .23 DCH Kia of Temecula . . . . . . . . . . . . . . .23 Del Grande Dealer Group . . . . . . . . .12-13 Dent Magic Tools . . . . . . . . . . . . . . . . . .10 Dominion Sure Seal, Ltd. . . . . . . . . . . . .20 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .47 Drew Hyundai . . . . . . . . . . . . . . . . . . . .53 East Bay BMW-MINI . . . . . . . . . . . . . . . .61 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .31 Elk Grove Toyota . . . . . . . . . . . . . . . . . .38 Enterprise Rent-A-Car . . . . . . . . . . . . . .46 Equalizer Industries, Inc. . . . . . . . . . . . .22 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .51 Galpin Motors . . . . . . . . . . . . . . . . . . . .33 GlasWeld Systems, Inc. . . . . . . . . . . . . .16 Glenn E. Thomas Dodge-ChryslerJeep . . . . . . . . . . . . . . . . . . . . . . . . . .29 GM Wholesale Parts Dealers . . . . . . . . .69 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .36-37
Victoria Antonelli
is the newly appointed online content editor at Autobody News. Victoria will be managing our new website and social media pages. She is originally from South Kingstown, RI, and has lived in San Diego, CA, since August 2013. Victoria graduated from the University of Rhode Island in May 2013 with a BA in journalism. Previously, she attended High Point University in High Point, NC, for two years, and studied abroad for a semester at Oxford Brookes University in Oxford, England. Victoria completed two internships while in college, one with the University of Rhode Island Marketing and Communications Department and another at Rhode Island Monthly Magazine. Victoria’s favorite color is turquoise and her hobbies include hiking, reading, writing, and photography.
vantonelli@autobodynews.com with your story ideas and news items. 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. ©2014 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
COLUMNS Antonelli - Autobody News Launched Our New Website on September 13. . . . . . . . . . . 4 Attanasio - Is Angie’s List Impartial or Is She Playing Favorites? . . . . . . . . . . . . . . 38 Franklin - End Useless Marketing—Redirect Funds and Get Results!. . . . . . . . . . . . . . . . 44 Luehr - Better Blueprinting, Part 2: How to Set Up a Blueprinting Area . . . . . . . . . . . . . 26 Yoswick - CIC Committees Look at Autonomous Vehicle Issues, Impact of “Length of Rental” Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Yoswick - October Retrospective—ADP, Non-OEM Parts, AAIA Study. . . . . . . . . . . . 23
Car Submerged an Estimated 18 Yrs Found in UT Reservoir . . . . . . . . . . . . . . . . 54 Counterfeit Engine Control Devices Found in Florida . . . . . . . . . . . . . . . . . . . . . 60 Crowd Favorite the “Telephone Doctor” Returns for SEMA Education Days . . . . . . . 64 Education Foundation Announces Scholarship Winners Including Nation-wide Students . . . 60 Federal Court in FL to Rule on Overtime Pay Under FLSA for Auto Repair Employees . . . . 1 FL is the Third Most Expensive State in Which to Own a Car . . . . . . . . . . . . . . . . . . 68 Ford and Chrysler Up, GM down in August Car Sales . . . . . . . . . . . . . . . . . . . . 69 Former Texas Prosecutor Asks State to Pardon in Fatal GM Crash, Accident Already Listed by GM . . . . . . . . . . . . . . . . . 56 Four Found Guilty of CA Insurance Fraud & ID Theft . . . . . . . . . . . . . . . . . . . . . . . . . 20 GM Posts Best July Sales Since 2007, Toyota Also Up. . . . . . . . . . . . . . . . . . . . . . 65 Herkules to Host NASCAR Driver Brendan Gaughan During SEMA Show . . . . . . . . . . . 62 Illinois is Third State to Provide Online Access to Insurer Filings . . . . . . . . . . . . . . 31 K & M Collision Sends Second Version of ‘Open Letter’ Video to NC Attorney General. . . . . . 52 Louisa. Has Most Expensive Auto Insurance in the Country . . . . . . . . . . . . . . . . . . . . . . . 8 MS is the 4th Most Expensive State for Car Ownership Overall . . . . . . . . . . . . . . . . 68 NABC 20th Anniversary Golf Fundraiser, January 14, 2015. . . . . . . . . . . . . . . . . . . . 65 Nationwide Auto Insurance in NJ for First Time Since 1981 . . . . . . . . . . . . . . . . 34 NC Auto Injury Attorney Urges Drivers to Use the New NHTSA Online Recall Check . . . . . 62 NC Body Shop Owner and 12-Year Old Help Authorities Solve Hit and Run . . . . . . . . . . . 57 NC Shop, K and M Collision, Joins RICO Case Against Seven Major Insurers . . . . . . . . . . . . 9 New Caliber Shop Open in CA. . . . . . . . . . . . . 54 New CO Program Asks Shops to Report Potential Hit-and-Runs . . . . . . . . . . . . . . . . 54 NJ Firefighter Accused of Arson . . . . . . . . . . . 20 NJ is 5th Most Expensive State for Auto Ownership . . . . . . . . . . . . . . . . . . . . . 69 NV Mom Sues Over Device That Disables Car . 54 NY Shop Owner’s Forgotten Lottery Ticket is a Nearly-Lost $2.9 Million Winner . . . . . . 53 OEConnection Ships Updated CollisionLink Application . . . . . . . . . . . . . . . . . . . . . . . . . 56 PartsTrader Hits 1,000,000th Order Milestone . 31 Rise in Accidents Leads to Lower Speed Limit and More Signage in Natomas, CA . . . . . . . 22 Roseville, MN, Police Replace Local Auto Body Shop as Provider After Employees Take Squad Cars on Joyride . . . . . . . . . . . . . . . . 64 SCRS Posts Tribute to March Taylor for Supporting and Inspiring the DEG . . . . . . . . 68 Season 34 of MotorWeek 2014 Features Collision Mitigation, Traffic Alerts . . . . . . . . 69 Sisk - Parts Authorization, Indemnification and More—Documentation Part 3. . . . . . . . . . . 42 Theft and Serious Injury at PA Auto Body Shop . 53 Toyota to Donate $1 Million to the Detroit Institute of Arts . . . . . . . . . . . . . . . . . . . . . 57 Volvo Reappears on World Market with XC90 . 67 When Cars Are as Hackable as Cell Phones . . 20 WI is the 5th Cheapest State in Which to Own a Car . . . . . . . . . . . . . . . . . . . . . . . . . 68 WY is the Most Expensive State in the US for Car Ownership . . . . . . . . . . . . . . . . . . . 68
Stacey Phillips is Our New Assistant Editor for Print
Indexof Advertisers
REGIONAL ABRA Auto Body & Glass Expands WA Operations . . . . . . . . . . . . . . . . . . . . . . . . . 30 Allstate Insurance Report: Desert, Central CA Cities Have State’s Best Drivers. . . . . . . 18 ASA-NW Follows Golf Tourney with Family Fun Night. . . . . . . . . . . . . . . . . . . . . 16 Attanasio - Southern California Shop is Happily DRP-Free . . . . . . . . . . . . . . . . . . 50 CA Has 100K+ Plug-In Cars and Counting . . 15 CA Men’s Colony Inmates Give Back to Community . . . . . . . . . . . . . . . . . . . . . . . 6 Crews Tackled Blaze at Auto & Truck Repair in Irwindale, CA . . . . . . . . . . . . . . . . . . . . . . 8 Donated Toyota Eases Military Family’s Troubles in Rancho Cucamonga, CA. . . . . . 18 Freemont Location is Lucky 13 for Mike’s Auto Body . . . . . . . . . . . . . . . . . . . . . . . . . 15 Massive Tesla Battery Factory to Be Built in NV . 20 Napa Body Shops Get Jolted After 6.0 Quake . . 1 Pittsburgh Glass Works Opens Distribution Center in NV. . . . . . . . . . . . . . . . . . . . . . . . 31 Six Holmes Body Shop Locations Acquired by Cooks Collision Centers, All but Original Shop in Pasadena . . . . . . . . . . . . . . 1 The Newest Shop in Utah Opens November 1 . . 1 Third Party Adminstrator from CA Expands Into Texas. . . . . . . . . . . . . . . . . . . . . . . . . . 31 Uber, Lyft Approve California Insurance Minimums . . . . . . . . . . . . . . . . . . . . . . . . . 22 Zipcar Expands Car Sharing in Las Vegas with UNLV . . . . . . . . . . . . . . . . . . . . . . . . . 30
New Talent Joins the Autobody News Editorial Staff
Hyundai Wholesale Parts Dealers . . . . .62 Infratech L.L.C. . . . . . . . . . . . . . . . . . . . .8 Innovative Tools & Technology, Inc. . . .72 Kearny Mesa Subaru-Hyundai . . . . . . .67 Kia Motors Wholesale Parts Dealers . . .59 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Los Gatos Luxury Cars . . . . . . . . . . . . .49 LumaIII, Inc. . . . . . . . . . . . . . . . . . . . . . . .6 Maita Subaru . . . . . . . . . . . . . . . . . . . . .58 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .46 Martech Services Company . . . . . . . . .20 Mazda Wholesale Parts Dealers . . . . . .68 MINI Wholesale Parts Dealers . . . . . . . .54 Mitsubishi Wholesale Parts Dealers . . .62 MOPAR Wholesale Parts Dealers . . . . .41 Moss Bros. Chrysler-Jeep-Dodge . . . . . .7 Mossy BMW of Vista . . . . . . . . . . . . . . .48 Mossy Volkswagen . . . . . . . . . . . . . . . . .4 Motor Guard Corp. . . . . . . . . . . . . . . . . .6 Nicolosi Imports . . . . . . . . . . . . . . . . . . .18 Nissan/Infiniti Wholesale Parts Dealers . .66 PreFab Ads . . . . . . . . . . . . . . . . . . . . . .28 Prima srl, Inc. . . . . . . . . . . . . . . . . . . . . . .9 Puente Hills Subaru . . . . . . . . . . . . . . . .50 Rare Parts, Inc. . . . . . . . . . . . . . . . . . . . .24 Replica Plastics . . . . . . . . . . . . . . . . . . .18 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .60 SATA Spray Equipment . . . . . . . . . . . . .39 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . .26, 27 Shingle Springs Nissan-Subaru . . . . . .57 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .52 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .44 South Bay Volkswagen . . . . . . . . . . . . .42 Subaru Wholesale Parts Dealers . . . . . .63 TG Products, Inc. - The Rail Saver . . . .32 Toyota Wholesale Parts Dealers . . . . . .68 TYC/Genera . . . . . . . . . . . . . . . . . . . . . .21 Valspar Automotive . . . . . . . . . . . . . . . . .2 Volkswagen Wholesale Parts Dealers . .65 Volvo Wholesale Parts Dealers . . . . . . .64 Weatherford BMW . . . . . . . . . . . . . . . . .26
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 3
Web Window
Autobody News Launched Our New Website on September 13 with Victoria Antonelli
On Sept. 13, 2014, Autobody News launched a new and vastly improved website, under the same domain name— www.autobodynews.com. Enhanced video handling, strengthened social media connectivity, optimal organization, and an eye-catching color scheme are just a few of the many up-
Home The home page (see p. 8)displays the most recent articles in the following categories—Regional Content, Product News, National Events, Recent Association Articles and the Video Gallery. The Video Gallery will feature recent videos that has impacted the industry.
Regional Content Regional Content is grouped, like our print editions, into five major sections of the country—Midwestern News, Southwestern News, Western News, Northeastern News, and Southeastern News. National News, which is replacing the former Industry News category, covers stories that affect all corners of the US. The regions are color-coded at the top of the page to match the headings of each section. Each region now has its own domain. For example, western.autobodynews.com will take you to Western Regional Content, including News, Associations, and Events. You can also located and save RSS feeds from each of these regional categories.
SPS SPS stands for Shop & Product Showcase. This unique publication gives shop owners and managers a detailed, peer to peer perspective on the prod-
ucts and services being used. Downloadable PDFs of each issue are located in this section, with the most recent being October 2014. The next drop down item, Advertising in SPS, gives detailed information about advertising policies, and how you can get your products noticed by the owners and managers of over 40,000 collision repair shops nationwide. Columns This tab features articles by industry enthusiasts. With the help of over 15 contributors, AutoBody News is able to produce thought-provoking, informative features.
Events This drop down menu not only lists meetings, classic automobile shows, and other activities for all five regions, but also national events, including the latest on SEMA and NACE. See Our New Website, Page 6
Need Parts?
Our parts department is always ready to help you out with our Original Volkswagen Parts & Accessories. grades this advanced template has to offer. The template is fully responsive, meaning you can view it optimally on any device you carry. The main functionality is to group our regional coverage into Regional Content pages, one for each of the print issues of Autobody News.
News Here you will find National News, Company News, Product News, Insurance News, and Automakers and Dealers. Find current and timely news stories about automobile companies, new product releases, insurance dealings, and news provided by dealerships.
4 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
Mossy Volkswagen 1695 Auto Park Way Escondido, CA 92029 email: rcurry@mossy.com Hours
Mon-Fri 7:30-6 / Sat 8-4
Parts Department
760-745-8012
760-745-7805 Fax
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 5
Tips for Smooth Operation If you’re a frequent flyer on our site your browser may store links to our old site in its cache. If you’re not getting active links, go to your history and delete the cache file, then relaunch autobodynews.com.
Continued from Page 4
Our New Website
Associations The association stories come from all five regions, as well as national association news. Examples include news about the Iowa Collision Repair Association (ICRA), Automotive Service Association (ASA), and the Louisiana Collision Industry Association (LaCIA).
Some Ugly Regional Placeholders? You’ll notice some placeholder banner ads on the regional content sections of the website. If you’re a dealership doing wholesale parts trade in your area, consider replacing these ‘eye catching’ spots with a banner of your own. We’ll design it for you at no charge. Email advertising@autobodynews.com for more information.
Digital Editions Download a PDF version of past and present regional issues.
Contact Us Click here to find numbers and emails for all staff members at AutoBody News. Information on how to sign up for the eNewsletter or a print subscription can also be found here.
Login Click this link in the top right corner to create and sign into your account. You will need to create an account and log in in order to post a comment on an article or column for example.
Social Media On the top left corner, you will find
links to our Twitter, YouTube, Facebook, and LinkedIn pages. On the left side of each article, you will also see a Facebook tab, which allows you to “like” our page.
Take Advantage of Regional Coverage As a shop owner or association member we want to know what’s going on with your shop or your association in your state. Send us an email with the date of your meeting in advance, we’ll post it in our regional secction. Let us know what happened with pictures or video. Likewise if there’s something special going on with your shop, we can get the word out. Email your details to: editor@autobodynews.com. Thanks. We hope you enjoy using our new site.
CA Men’s Colony Inmates Give Back to Community
Since his first day on the job, Elvin Valenzuela, warden of the California Men’s Colony (CMC), has made a point to reach out to other law enforcement agencies in need in San Luis Obispo County, California. The most recent gesture by CMC, which provides secure housing for minimum and medium security inmates, was made possible with the assistance of Vocational Auto Body Instructor, Thomas Wilt, and the inmates assigned to his class. The San Luis Obispo County Sheriff’s Office purchased an overused forklift in need of serious repair. When asked if there was anything CMC could do to help, Warden Valenzuela was happy to continue his tradition of helping those in need. The organization took the time to not only restore the forklift, but transform the piece of equipment into a “work of art,” according to those in the program. Warden Valenzuela and his crew were happy to present Sheriff Ian Parkinson with his newly refurbished forklift as a good neighbor gesture. It was also an opportunity for the inmates involved to give back to the community, according to the organization.
(316) 650-0524 LumaIII, Inc developed the world’s first and only LED attachment (the Aurora) that fits directly behind the nozzle of your paint spray gun. Ergonomically designed Intrinsically safe Lightweight & Durable 2 hours of Illumination Saves on labor hours Reduces materials Reduces technician errors Reduces the wet sand/buffing stage Gives visual recognition of the center of spray pattern Innovation and imagination is what drives our passionate team to design products for the following refinishing industries: automotive, aerospace, industrial, marine, military, and architectural. VISIT US AT SEMA #
www.lumaiii.com 6 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
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Continued from Cover
Holmes Body Shop
“The acquisition of the six Holmes locations is a key step in executing our strategic plan by expanding to the Los Angeles basin and serving
Chris Rose, vice president of Southern California operations for Cooks Collision, said the company plans to add several more collision repair locations throughout the Southern California market in the future. Symphony Advisors consulted with both Cooks Collision Centers
The seven locations of Holmes Body Shop are dispersed over a wide area of greater Los Angeles
Southern California consumers,” said Rick Wood, co-CEO of Cooks Collision Centers. “Cooks Collision is committed to providing our new Southern California customers the same high quality collision repair, customer service and value that our Northern California customers have come to expect for the past 33 years.”
and Holmes Body Shop throughout the acquisition process and separately Veritas Advisors, Inc. assisted Cooks Collision Centers.
infrared innovation for industry
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Newest Shop in UT
are expanding their business to include trucking companies and fleet vehicles because they noticed the increased demand. “What makes us unique is that we’re going to have the only downdraft truck booth in all of Southern Utah,” said Borrowman. They will also have a downdraft car booth and laser frame rack. Red Rock will offer customers multiple paint lines and options, varying from cost-effective single-stage Urethane to premium commercial fleet paint. He said the goal is to cater to a wider market to meet everyone’s needs. “Currently there is no option for customers to get their whole car painted unless they want to spend $4,000 to $5,000,” he said. Borrowman said their team takes pride in offering customers good prices and quality, guaranteeing all of their repairs and paint jobs. “We’ve never once turned anyone away,” he said. His advice to other shops is to “build good, solid relationships and you’ll never run out of business.”
Crews Tackled Blaze at Auto & Truck Repair in Irwindale, CA
Crews were on the scene of a commercial fire on Sept. 13 that burned through the roof of an auto body shop, according to information on CBS Los Angeles. The Los Angeles County Fire Department said it broke out in the Irwindale Auto & Truck Repair building just after 6:30 p.m. in the 16300 block of East Arrow Hwy. Officials reported heavy smoke and flames protruding through the roof of the building. It was unclear if anyone was inside when it broke out. No injuries were reported. The cause of the fire is under investigation.
Louisa. has the Most Expensive Auto Insurance in the Country
Louisiana is the most expensive state (including D.C.) for estimated annual insurance costs, according to Bankrate, at $1,277, slightly ahead of Washington, D.C. Repair costs are $354 and gasoline costs an estimated $924 per year. All told, owning a car costs $2,555 per year in the state. See other rate and cost comparisons from bankrate starting on p. 68 this issue.
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NC Shop, K and M Collision, Joins RICO Case Against Seven Major Insurers
A First-Person Account of the Consolidated MDL Hearing in Orlando, September 11
K and M Collision LLC of Hickory, NC, has been included as a plaintiff in a lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) against seven major insurance carriers and their affiliates. The suit, originally filed in an Illinois district court on April 30, accuses State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual, Nationwide, and many of their respective subsidiaries, for short pays and conspiracy to establish “an artificial market value for collision repairs.” Kevin Michael Bradshaw, VP of Operations at K and M Collision LLC, says, “I think the lawsuit will uncover and prove what many shops throughout the country have known for years, that the insurance companies are refusing to pay for proper repairs, and are using illegal methods to suppress the market rate.” This is the latest in a series of actions taken by body shops throughout the country in an effort to push back against insurance company tac-
As an observer of the initial court proceedings for the repairers Multi-District Litigation against dozens of insurers in the Orlando Federal Courthouse [on Sept. 11], I can’t tell you the feeling that I had and that other repairers present expressed while watching the proceedings. I’m not sure any words can capture the feeling but it was a feeling that I believe was long overdue for repairers... and insurer’s alike. While phones and cameras were not allowed in the courthouse, the picture of the hearing was one I wish every repairer could have seen. I was sitting at the back of the courtroom, close to center and from my view point I saw 50 plus attorneys who were there representing the 40 plus defendant insurers, all in dark suits, sitting side by side, row after row along the entire right side of the court room. In the center, on an elevated bench were the two Honorable Judges (Presnell and Smith) who sat facing
by Lee Emmons
tics that they believe to be unlawful. The Mississippi Collision Repair Association filed to block State Farm’s PartsTrader parts procurement mandate in the summer of 2013; a Tennessee body shop filed suit against Progressive for steering and shortpays in November of 2013, and Ray Gunder has filed suit to block State Farm’s PartsTrader in Florida. The RICO Class Action plaintiff, Crawford’s Auto Center, is a Pennsylvania-based automobile collision repair facility who alleges that the defendants conspired amongst themselves and/or others to “suppress compensation to repair facilities for automotive collision repairs covered by insurance.” For more on the RICO case, search ‘RICO’ at www.autobodynews.com.
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the court room, and then to my left were five attorneys sitting at the plaintiff’s table who were there representing hundreds of collision repairers from various states. To the far left, in spectator’s area were 15 or more shop owners who were plaintiffs in the lawsuits to witness this first step in what will prove to be, no doubt, a pivotal and historical event for the entire collision repair industry. When provided the opportunity to speak and ask quotations, few came from the defending attorneys. John Eaves Jr. mentioned to the courts that since the litigation, some repairers have experienced various levels of abuse from some insurers as and asked of the court to consider rendering a ruling to prohibit steering and retaliatory efforts against those repairers who are named as plaintiffs in the litigation and to enjoin them from efforts to harm them by making disparaging comments about them and to steer consumers away from them. The judge stated in so many words that he would not render an See MDL Opens, Page 63
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Continued from Cover
Overtime Pay
County, FL, deny the allegations. In court documents, the defendants say the “… Plaintiffs have been paid all wages due in full and in a timely manner.” According to the lawsuit, Jospeh Smoluk worked for Action Auto Body as a non-exempt service writer from October 1, 1997 to January 25, 2012. Michelle Smoluk claims she performed work as a non-exempt secretary from approximately May 2004 to January 25, 2012. The plaintiffs say they worked an average of 50 hours per week and were not paid the proper overtime rate for the hours they worked over 40 per week, as prescribed by Federal and Florida law. They also say that Action Auto Body received gross revenue in excess of $500,000 per year, which satisfies the FLSA’s coverage requirements of working in interstate commerce. According to Section 7 of the FLSA guidelines, unless employees are specifically exempted from this
rule, “...employers must pay covered workers at least one-and-a-half times their regular hourly wage for hours worked over 40 hours a week at a given job. Employers may choose to pay more than time-and-a-half for overtime or to pay overtime to employees who are exempt from overtime under the FLSA.” The Smoluks are seeking damages for unpaid minimum wage and unpaid overtime compensation for hours they worked in excess of 40 per week with interest; an equal amount in double damages/liquidated damages; the cost of the action and reasonable attorneys’ fees and additional relief decided by the court. If the plaintiffs prevail, there is likely a statute of limitations for any entitlement going back two or three years, at the discretion of the court, from the date on which the case was filed. Since the case was filed in State Court in February 2014, that would be the effective date for damages. The defendants assert that Jospeh Smoluk was exempt from the FLSA under the executive and/or professional exemptions and Michelle
Excerpt from FLSA Regulation §779.372
Nonmanufacturing establishments with certain exempt employees under section 13(b)(10). (c) Salesman, partsman, or mechanic. (1) As used in section 13(b)(10)(A), a salesman is an employee who is employed for the purpose of and is primarily engaged in making sales or obtaining orders or contracts for sale of the automobiles, trucks, or farm implements that the establishment is primarily engaged in selling. As used in section 13(b)(10)(B), a salesman is an employee who is employed for the purpose of and is primarily engaged in making sales or obtaining orders or contracts for sale of trailers, boats, or aircraft that the establishment is primarily engaged in selling. Work performed incidental to and in conjunction with the employee's own sales or solicitations, including incidental deliveries and collections, is regarded as within the exemption. (2) As used in section 13(b)(10)(A), a partsman is any employee employed for the purpose of and primarily engaged in requisitioning, stocking, and dispensing parts.
(3) As used in section 13(b)(10)(A), a mechanic is any employee primarily engaged in doing mechanical work (such as get ready mechanics, automotive, truck, or farm implement mechanics, used car reconditioning mechanics, and wrecker mechanics) in the servicing of an automobile, truck or farm implement for its use and operation as such. This includes mechanical work required for safe operation, as an automobile, truck, or farm implement. The term does not include employees primarily performing such nonmechanical work as washing, cleaning, painting, polishing, tire changing, installing seat covers, dispatching, lubricating, or other nonmechanical work. Wrecker mechanic means a service department mechanic who goes out on a tow or wrecking truck to perform mechanical servicing or repairing of a customer's vehicle away from the shop, or to bring the vehicle back to the shop for repair service. A tow or wrecker truck driver or helper who primarily performs nonmechanical repair work is not exempt.
10 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
Smoluk was exempt under the administrative exemption. Over the years there has been considerable confusion about the status of service writers and whether or not they are exempt from the overtime pay provisions of the FLSA. The answer appears to lie in whether or not the employer is a dealership or a collision center. The distinction is important, since the exemption for service writers only applies to service writers who work in an auto dealership, that is an ‘establishment . . . primarily engaged in the business of selling automobiles, trucks, or farm implements to the ultimate purchaser.’ 29 CFR 372(b)(ii). If the service writer works in a collision center, service shop, or some other business which does not actually sell cars, then the exemption does not apply, according to attorneys. If Action Auto Body, LLC is a dealership, then the service writer exemption pretty clearly applies. There is a case called Brennan v. Deel Motors, 475 F.2d 1095 (5th Cir. 1973) which is directly on point, and is actually binding on the court where the Smoluk case is pending. “A body shop would have all of
the general exemptions available under the FLSA at their disposal,” said an attorney with a nationwide firm that represents employers in labor and employment matters. “For example, executive, administrative, professional, computer professional, outside sales. They just would not have the three commonly used dealership overtime exemptions: salesperson, partsmen, and mechanic,” said the attorney, who is not affiliated with this case, adding the service writer exemption is considered part of the salesperson exemption. In 1966, Congress amended the FLSA and created an exemption for any salesman, partsman or mechanic employed at a retail dealership. A year later the U.S. Department of Labor (DOL) confirmed service writers were exempt from overtime pay; however, they retracted their statement a month later and issued an opinion letter saying service writers would not be included in the exemption. Since then numerous federal cases have ruled that service employees are exempt from FLSA overtime. On April 5, 2011, the Wage and Hour Division of the DOL clarified its See Overtime Pay, Page 16
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 11
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Continued from Cover
Jolt in Business
the 1989 Loma Prieta earthquake 25 years earlier. Significant damage and several fires were reported in the southern Napa Valley area, and there was also damage in the nearby city of Vallejo, in Solano County. Napa, of course, is best known for its wine industry, and certainly wineries were damaged. So were distributors and retailers whose inventory was subject to breakage. Bistro Don Giovanni in Napa lost about a third of its wine and liquor inventory, worth $20,000 to $30,000, said Curtis Bradford, the restaurant’s manager. The quake could lead to economic losses of as much as $4 billion from wrecked wine stock and shuttered businesses that rely on tourists, according to an estimate from Kinetic Analysis Corp. Brent Blackwood, the owner of Blackhawk Body Shop in Napa was obviously concerned about his shop when the earthquake hit, but once he realized that the damage was minimal, his focused shifted to repairing cars. “There was a little sheet rock damage
and quite a bit of broken glass here at the shop. A few tool carts and a jack fell over, but other than that we were fine. It was just enough to make a big mess, that’s all.” Since the earthquake, Blackhawk Body Shop has been inundated with customers and business is up at least 40%, Blackwood explained. “On a normal day, we do 4–6 estimates, but since the earthquake, we’re doing 15 or more every day. It’s mostly PDR (Paintless Dent Removal) work, but in some cases if the paint was affected, we need to do more than just PDR. We knew that we would get a spike in business, so we came in the day after the shaker and made sure we’d be prepared. We have a PDR guy that we work with regularly and he’s normally here once a week, but now he’s been down here almost every day.” A second-generation body shop owner, Blackwood and his father have seen a few earthquakes over the years, including the 1989 Loma Prieta quake, but this one hit closer to home. “[Loma Prieta] impacted us, of course, and some people here in Napa lost their homes,” Blackwood said. “We’ve been here since 1957 when my dad opened this shop, so we have second and third-
14 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
property can be damaged.” Mike’s Auto Body in Napa experienced some toppled shelves and flipped chairs, but overall the shop came through without damage, according to the shop’s Manager Brad Woodland. “We were extremely lucky,” he said. “The city greentagged our building, which means we’re clear for business as usual. I live here in Napa and we know people whose homes have been redtagged or yellow-tagged and some that came down completely.” Business was already brisk even before the quake hit, so now Woodland’s workload is over the top, he explained. “The repairs are all earthquake-related, involving dented roofs, hoods, fenders and trunks. The earthquake has been good Older buildings in Downtown Napa didn’t fare well during for us from a business standthis 6.0 shaker. (Photo courtesy of Michael Smith) point, but in the end we’re different. In this industry, we make more focusing on helping people in money when people get into accidents, need after a disaster like this.” but when things like earthquakes hapRandy Lichau, a Napa native and pen, everyone is affected and anyone’s the owner of Lito Auto Body near generation customers. We’ve developed relationships with them over the years, so seeing their cars coming in and asking them about their homes was
downtown was shocked by the magnitude of the quake. “Our refrigerator danced across the room and it’s a very large unit, so I was impressed by that,” Lichau said. “We lost a lot of good buildings and several parts of the town took it hard, but we never shut down and we have been working hard to fix all the cars that have been coming here.” Lichau has been fast tracking his production to meet the increased need and getting his customers back on the road as quickly as he and his crew possibly can. “We’re coming in early and working on Saturdays, because we were actually busy even before the quake,” he said. “We’re doing all of the glass-related repairs first, replacing windshields, headlights, side mirrors and things that make the cars unsafe to drive. We’ve definitely seen a spike in business, but as someone who was born here and grew up here, a tragedy like this is never a good thing. We’re happy to be helping people by fixing their cars and allowing them to return to their normal lives.” Insurers will probably cover about $2.1 billion in damage, according to research firm Kinetic Analysis. Costs borne by the insurance industry may be
limited because many homeowners don’t have earthquake coverage, according to the Insurance Information Institute. The costliest earthquakes in the U.S. have occurred in the state. But just 10% to 11% of California homes with homeowners insurance have earthquake coverage, which must be obtained on top of the standard homeowners policy, according to the California Earthquake Authority, a state-managed earthquake insurer. California residents seeking a CEA policy can contact an insurance agent for a premium quote, or go to CaliforniaRocks.com for an estimate. “I’m sure more people are going to buy earthquake insurance now,” Amy Bach, executive director of San Francisco-based consumer advocacy group United Policyholders. Ms. Bach’s main buying tip is: “Don’t forgo buying it because you think the high deductible is a rip-off. No earthquake insurance means you’re carrying a 100% deductible!”
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Freemont Location is Lucky 13 for Mike’s Auto Body
On Sept. 3, 2014 Mike’s Auto Body acquired Central Collision in Fremont, CA, making this 78-year-old, 30,000 square foot second-generation body shop its 13th location. With a goal to increase the size of its market and establish a presence down the Nimitz Highway 880 corridor, Mike’s Auto Body is taking its successful business approach to Fremont, CA, the Bay Area’s fourthlargest city with a population of approximately 222,000 people. CEO Brennan Rose started discussing the acquisition with the owners of Central Collision back in early 2013 and both parties came to a decision immediately before Labor Day, he explained. “We have been in discussions with Bill Brunelli, the shop’s owner, numerous times over the last year and a half and got the call a month ago saying he was ready to move on and join our team here at Mike’s Auto Body. Their operational standards, facility structure and employee base will fit our model perfectly. We are very excited to have the opportunity to expand our market share to the south and undoubtedly we will see other opportunities arise out of it.”
CA Has 100K+ Plug-In Cars and Counting
Cumulative sales of plug-in electric cars in California have surpassed 100,000, industry experts announced Sept. 8, according to reports in the Sun.com by Morgan Lee. As of the end of August, Californians had purchased 102,440 plug-in cars, including both all-electric vehicles and plug-in hybrids that run on a combination of electricity and gasoline, according to figures compiled by HybridCars.com and Baum & Associates, a Michiganbased market research firm. The sales records date back to December 2010, when the all-electric Nissan Leaf and plug-in hybrid Chevy Volt were first introduced to consumers in select U.S. markets. California regulators celebrated the milestone as the state bets on plug-in vehicles to meet aggressive goals for reducing emissions of heat-trapping gases linked to global warming. “This milestone shows that industry and government can work together for the good of the environment and the good of the consumer,” California Air Resources Board Chairman Mary Nichols said in a statement.
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 15
Continued from Page 10
Overtime Pay
position. According to their website, “Salesmen, partsmen and mechanics employed by automobile dealerships are exempt from the overtime pay provisions of the FLSA.” Richard Longo, Director of Enforcement for DOL’s Wage and Hour Division in the Western Region said, “The April 2011 cleanup rule did stipulate our current position on this matter and that we don’t take an automatic position that service writers are exempt just because of their job title. That would be consistent with how we apply any of our exemptions. We look at the facts of the case. “With that being said, even though we’ve made these changes when appropriation came in for the spending bills they basically didn’t fund some of the changes,” said Longo. “We’re taking a non-enforcement position on the matter currently but it does not prohibit individuals from seeking court decisions to determine exempt or non-exempt status.” Longo said that if courts are looking for interpretive guidance, the
most recent guidance would be the April 2011 update. “If the company is able to establish that service writers satisfy one of the white collar FLSA exemptions, it would eliminate any need to record service writers’ hours worked or pay overtime for hours worked over 40 in a work week,” said the attorney consulted. “While service writers typically work long hours, they are usually paid quite well. If service writers are found to be exempt under one of the FLSA white collar exemptions, this would be a great victory for body shops and collision centers.” The defendant’s attorney has a policy of not commenting on pending litigation. The plaintiff’s attorney was unavailable for comment at press time. Autobody News will continue to follow this story and update readers on the status of Smoluk v. Action Auto Body, LLC. Details about the applicable FLSA regulations are available on the following website: www.ecfr.gov under section 779.372. As always, consult a qualified attorney before acting or reacting to any business news discussion such as this.
16 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
ASA-NW Follows Golf Tourney with Family Fun Night
The Automotive Service Association Northwest (ASA-NW) held two fun annual events in August to provide members with opportunities to network. On August 13, the association held their 21st Annual Golf Tournament, and their 5th Annual Family Fun Night took place on August 26. Jeff Lovell, President and Executive Director of ASA-NW, noted “we always have a great time at these two events. We can’t always be all business; we have to have a little fun along the way too!” ASA-NW’s 21st Annual Golf Tournament was held at the Elk Run Golf Course in Covington, WA. The sun came out for the 130 golfers and sponsors who participated in the events. Teams enjoyed 18 holes, followed by a steak dinner and raffling of prizes. No one scored a hole-in-one, so no one received a new car! First place went to Jonah Hartfield, Justin Smith, Shane Skillings, and Charlie Marshall. ASA-NW thanks the sponsors who made the tournament possible. The proceeds from the event benefit the association’s scholarship fund; ap-
proximately $15,000 was raised this year. Lovell states, “it was a great time to get together and network with our members and to help raise money for the ITEC Education Scholarship Fund.” This year was the last year that the golf tournament will be held at Elk Run as the course is closing, but the association is actively searching for a new venue for next year. Over 160 members attended ASANW’s 5th Annual Family Fun Night, held on the private party deck at Cheney Stadium in Tacoma. Attendees cheered the Rainiers on to a 5-3 victory while enjoying a barbeque buffet. Lovell believes that networking is important for members. “Family Fun Night presents a great opportunity for shop owners to bring their employees and families out for a good time. Everyone gets to network with other industry professionals, and it’s always great to see the kids get foul balls while laughing and enjoying the game!” ASA-NW, 7403 Lakewood Drive West, Suite #7, Lakewood, WA, 98499, 253-473-6970, www.asanorthwest.com
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 17
Donated Toyota Eases Military Family’s Troubles in Rancho Cucamonga, CA by Stephen Wall, The Press Enterprise
Brandon Walker was serving his country in Japan when his daughter, Kira, was born nine months ago. During a complicated birth, Kira suffered kidney failure and brain damage. Three weeks later, Walker, an aviation electrician in the U.S. Navy, was transferred to a naval base on Coronado Island, in San Diego, CA. In the past few months, Brandon and Kyla Walker have struggled with mounting medical bills and a lack of reliable transportation. His $27,000 annual salary barely covers expenses for his family of four, including daughter Zoe, 3. “We are right on the brink
of not being able to afford anything,” said Brandon Walker, 26. His outlook brightened when his family received a refurbished 2012 Toyota Corolla in August. The car donation came from a nationwide program through which collision repair companies, insurers and others collaborate to provide vehicles to families in need. “It’s overwhelming,” Kyla Walker said at an Aug. 19 donation ceremony at Caliber Collision Centers in Rancho Cucamonga. “I’m so grateful everyone was able to come together and do this for us.” The Toyota was donated by Esurance Insurance Services and restored by Caliber employees, who did the work on their own time. Other businesses do-
nated parts and gifts for the family. “It’s such a great feeling to do something for somebody that needs a car,” said James Krauss, Caliber manager. Brandon Walker said his daughter has cerebral palsy and requires kidney dialysis each night for 12 hours. Kyla Walker hopes to be able to donate a kidney to Kira. Transportation issues have made it difficult to travel between home, work and the hospital, Brandon Walker said. After moving to San Diego, he bought a 2006 Volkswagen Jetta, but the engine died after three months. He still owes $9,400 on the vehicle, but it would cost more to fix it than the car is worth, he said.
Allstate Insurance Report: Desert, Central California Cities Have State’s Best Drivers
Slow-paced, sprawling Visalia ranks first in California and seventh nationally as safest among the 200 largest U.S. cities in terms of car collision frequency, the Insurance Journal said in a recent online article. Allstate Insurance Co. on Aug. 26 released its 10th annual “Allstate America’s Best Drivers Report,” which contains new data rankings and historical rankings from the past 10 years.
According to the report, the average driver in Visalia will experience an auto collision every 12.4 years — an improvement of one month or more for the second consecutive year — and a collision rate 19 percent better than the U.S. average. Fort Collins, Colo. for the fourth year has held the top spot. According to the report, the average driver in Fort Collins will experience an auto colli-
sion every 14.2 years, which is 29.6 percent less likely than the national average of 10 years. Other top safe driving cities in California were Lancaster, Salinas and Rancho Cucamonga. California’s biggest cities didn’t fare as well in the report. San Francisco drivers were 55.6 percent more likely to be in a collision compared with the rest of the nation, putting it at 190th overall in the U.S. Los Ange-
Brandon Walker found out from co-workers about Support The Enlisted Project, a San Diego-based nonprofit that gave $330,000 last year to military service and family members for food, rent, car payments and other needs. The group provided diapers, baby wipes, clothes and other necessities to the Walker family, and contacted Caliber, which arranged the donation of the Toyota. The organization also is trying to pay off the Jetta loan, but is $3,400 short, said Chief Executive Tony Teravainen. “This is amazing,” Brandon Walker said after seeing the Toyota. “I want to thank everybody. This is going to make my life so much easier.”
les ranked 188th, Long Beach was 141st and San Diego was 112th. According to the National Highway Traffic Safety Administration, 33,500 car crash fatalities occurred in 2012. Additionally, Allstate research found that 70 percent of vehicles involved in auto claims are considered drivable, which indicates that most claims are the result of low speed (under 35 miles per hour) collisions.
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Massive Tesla Battery Factory to Be Built in NV
Four Found Guilty of CA Insurance Fraud & ID Theft
Tesla Motors announced on Sept. 4 that Nevada was selected as the official site for the Tesla Battery Gigafactory. “This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead,” stated Governor Brian Sandoval. “I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” said Chairman and CEO Elon Musk.
Following their no contest pleas to felony charges of insurance fraud and identification theft, four suspects accused of filing false insurance claims for windshield repairs have been sentenced, according to the Sacramento District Attorney. David Ludd was sentenced to state prison for two years, while Aaron Bonner was sentenced to one year in county jail and placed on five years of felony probation. Bonita Clayborn and Atlakea Scott were sentenced to 240 days in county jail and placed on five years of felony probation. Between May 23, 2011 and May 24, 2012, the defendants were accused of impersonating insurance policyholders and submitting approximately 1,000 fraudulent claims for automotive glass chip repairs to numerous insurance companies. The insurance companies paid almost $100,000 on the claims, according to the District Attorney. They allegedly worked for companies based in Sacramento, CA including Safetek Auto Glass Consulting, Auto Glass Professional and Clear View Autoglass.
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When Cars Are as Hackable as Cell Phones by Alexis Madrigal, theatlantic.com
Imagine this scenario: Self-driving cars form an orderly procession down a highway, traveling at precisely the right following distance and speed. All the on-board computers cooperate and the vehicles reach their destinations safely. What if one person jailbreaks her car, and tells her AI driver to go faster than the other cars? As the aggressive car moves up on the other vehicles, their safety mechanisms kick in and they change lanes to get out of the way. It might make efficiency of transportation lower, but this person would get ahead. This is one of many scenarios that Ryan Gerdes of Utah State University is exploring with a $1.2 million grant from the National Science Foundation to look at the security of the autonomous vehicle future. “The designers of these systems essentially believe that all of the nodes or vehicles in the system want to cooperate, that they have the same goals,” Gerdes said. “What happens if you don’t follow the rules? In the academic theory that’s built up to prove things about this system, this hasn’t been considered.”
NJ Firefighter Accused of Arson
Riverside, New Jersey police arrested and charged a Riverside Fire Company member with 2nd degree arson. According to authorities, Robert Campolongo, 43, of Delanco, was arrested Aug. 27 after police say he was driving with a suspended driver’s license. Campolongo is accused of a fire that happened Aug. 17 at the abandoned Mortlands Auto Body building on North Pavilion Avenue. Investigators say they have surveillance footage from the area and statements from witnesses. He is being held at the Burlington County Jail on $100,000 bail. Police continue to investigate. If you have any information, contact Lt. Fisher at Riverside Police Department at 856-461-8820.
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Uber, Lyft Approve California Insurance Minimums by Joseph Jaafari, PropertyCasualty 360.com
Amendments made to a CA bill that would require minimum insurance standards for ridesharing have eased opposition from companies like Lyft and Uber which, for the past year, have been waging war with state lawmakers on the issue. Insurance requirements for ridesharing have remained a heated issue for taxicab companies, which can pay upwards of $1 million in insurance premiums per year. They argue that companies like Uber and Lyft sidestep expensive insurance liabilities for their drivers by allowing them to drive using only their personal insurance. “Right now, there is no rule,” says Armand Feliciano, vice president of the Association of CA Insurance Companies (ACIC). “So we said, ‘Okay, we’re going to make a new commercial standard for you.’ When the app is on, it’s akin to turning that light on.’” ACIC worked with state lawmakers, including the bill’s author, Assemblywoman Susan Bonilla, to require that ridesharing companies carry at least $300,000 worth of insurance coverage, making the final change to the law last week. Still, that total is just
under half a million less than what’s required of limousines and a quarter of what’s required for taxicabs in some jurisdictions of CA, according to ACIC. “We worked closely with the administration to create that number,” says Feliciano, who also commends Bonilla for taking a hardline stance on an issue that has dominated CA headlines. Even though there has been unilateral agreement within the ridesharing community, there is still debate on how the insurance industry should modernize to meet the substantially increased demand for companies like Uber and Lyft. “We have agreed to a compromise that provides clarity for the ridesharing community in CA,” Chelsea Wilson, a Lyft spokeswoman, tells PC360. “However, a truly permanent solution must include the creation of modern insurance products tailored for drivers who participate in peer-to-peer transportation.” Wilson says that innovation in the insurance marketplace will be the determining factor in setting safety standards without hampering the growth of rideshares. The bill, AB 2293, is being debated on the floor today and, if approved, will go to Gov. Jerry Brown’s desk for signing.
22 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
Rise in Accidents Leads to Lower Speed Limit and More Signage in Natomas, CA
In response to a rise in accidents through the “across the top” work zone on Interstate 80 in the Sacramento area of Natomas, the California Department of Transportation and the California Highway Patrol have reduced the speed limit from 65 mph to 55 mph. Caltrans also added more signage directing motorists to prepare to merge where on-ramps connect to I-80. In addition, all exit signs have been positioned to increase visibility. “The primary types of traffic incidents were rear-end collisions, primarily between Truxel and Northgate where motorists should slow down and stay alert,” said Caltrans District 3 Construction Safety Engineer Ed Yarbrough. CHP data shows 29 of 38 traffic incidents were rear-end collisions. Three drivers had no license or were driving with a suspended license. Caltrans will continue to monitor collisions in the work zone to see if any more patterns develop. “Slowing traffic in the work zone can help reduce the incidence of rear-end collisions by giving drivers more time to observe and react
to traffic conditions,” Yarbrough said. Rear-end collisions are the most common type of work zone crash, according to the Federal Highway Administration. Distracted driving also contributes to 93 percent of rearend collisions, according to a study by the Virginia Tech Transportation Institute. CHP officers will monitor traffic throughout the construction site and issue citations to motorists who exceed the 55 mile per hour speed limit. The $133 million Across the Top project is adding bus/carpool lanes to I-80 between West El Camino Avenue and Watt Avenue, and adding one mile of auxiliary lanes in both directions of Interstate 80 from West El Camino Avenue to the Interstate 80/Interstate 5 interchange. In an effort to reduce congestion in the area, Caltrans created two express lanes which extend four miles for motorists who are commuting through the area and do not need to exit the freeway. Another lane is provided for drivers who do need to exit.
Historical Snapshot with John Yoswick
—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.
October Retrospective—ADP, Non-OEM Parts, AAIA Study ing these retail prices to be listed on an estimate. More than 30 dealers were discounting retail prices through the system.
what insurers will pay, the shop was still being charged the same wholesale price. “The dealers are not giving a discount, they’re not giving anything up,” California shop owner Darrell Malott said. “They’re selling at wholesale anyway. All they’re doing is putting a different retail price down there. They can mess with that list price all they want because it doesn’t change what they sell it for. The system encourages them to play that game and at no cost to themselves. They’re giving California shop owner Darrell Malott was among those away our margin for their adcritical in 1994 of an ADP tool that allowed dealers to vertising so that they can be promote discounted retail parts pricing through the ADP estimating system. ADP eliminated the system in selected by a third-party to response to industry criticism. make us buy from a particuShop owners at a previous CIC lar OE vendor, and they didn’t have meeting had pointed out that while to give up a thing.” the discounted retail prices affected ►As reported in Autobody
20 Years Ago In The Collision Repair Industry (October 1994) Responding to complaints from the collision repair industry, ADP will be pulling the plug on a program that allowed dealers to promote discount retail parts prices using ADP’s “Parts Exchange New” system. “As a result of the issues that responsible parties of the industry brought to our attention, we will be taking discounted OEs off the ‘Parts Exchange New’,” ADP’s Rick Tuuri announced at the Collision Industry Conference (CIC) held in Nashville, TN. “They will be off the system by January 1, 1995. I want to emphasize that this is no reflection on the way the discounted OEs themselves are doing business.” Although the parts prices listed in the ADP database are the manufacturers’ suggested retail prices, the “Parts Exchange New” system allowed the names of dealers discount-
News. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006. Tuuri (who left Audatex in 2004 and spent four years with I-CAR) became AudaExplore’s vice president of industry relations in 2007. Malott died in 1999.
15 Years Ago In The Collision Repair Industry (October 1999) After losing a $456 million class action jury verdict and being assessed an additional $730 million by the trial judge, State Farm has stopped writing for non-OEM crash parts on its estimates. The class action trial concluded early in October in Marion, IL, with the 4-man, 8-women jury finding against State Farm. A week later, trial judge John Speroni assessed the insurer a financial penalty, including $600 million in punitive damages. The total judgment against State
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Farm came to $1.1 billion. The insurer plans to appeal. In response to the verdict, State Farm stopped promoting non-OEM crash parts. A State Farm memo to its employees dated October 6 said, “Effective immediately, State Farm will temporarily suspend quoting nonOEM crash parts on repair estimates. This decision applies countrywide and in Canada, until further notice.” ►As reported in Hammer & Dolly. Other insurers also halted use of non-OEM parts temporarily, but most returned to the practice of calling for their use. State Farm has not, at least in the case of 25 parts types, including hoods, fenders, doors and decklids. The insurer did, however, appeal the ruling all the way to the Illinois Supreme Court; in 2005, that court overturned the lower court’s judgment against the insurer. The case remains in the news, however, because of a pending lawsuit over whether one of the judges on the Illinois Supreme Court at the time it overturned the verdict should have recused himself from the case because of election campaign donations the lawsuit alleges he received from State Farm.
10 Years Ago In The Collision Repair Industry (October 2004) The Automotive Aftermarket Industry Association’s recently released study, “Collision Repair Trends,” examines a number of the trends that continue to reshape the collision repair industry in the United States. “Total collision repair-related sales by aftermarket repair shops increased 5 percent in 2003 to $34 billion,” the report states, noting that this was driven by an increase in the number of miles driven and the increasing cost of collision repair per vehicle. The study forecasts that sales will increase 5.4 percent in 2004 and an additional 5.1 percent in 2005. AAIA found that there were roughly 43,360 shops that specialize in collision repair—34,700 independents and 8,600 dealership affiliated body shops. That’s a decline of about 2,000 shops since 1999. ►The AAIA earlier this year rebranded itself as the “Auto Care Association.” The total collision repair market is now estimated at about $33.7 billion—about the same amount as a decade earlier—but if total industry revenue had grown just
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by the rate of inflation over the decade, today’s collision repair market would need to be about $44 billion to be equivalent. The current total number of shops is estimated at about 40,100—about 3,200 fewer than a decade ago, a decline of 7.4 percent. Dealership shops account for much of that decline, dropping to about 6,350 (down by more than 2,200) while there are about 900 fewer independent shops.
5 Years Ago In The Collision Repair Industry (October 2009) Last month’s press conference by Connecticut Attorney General Richard Blumenthal in which he condemned steering by insurers prompted a Hartford Business Journal columnist to write that, “It’s probably not the state’s business whether you, your insurer, or your Momma chooses the body shop that fixes your car.” If someone trusts an insurer enough to do business with them, freelance writer Laurence Cohen said, why wouldn’t they trust them to suggest a particular body shop even if other shops “are unhappy about not being included in the big hug from the insurers” and say that the pre-
ferred shops “often attach new equipment with used chewing gum.” In a letter to the editor of the paper, Bill Denya, owner of Denya’s Auto Body in Meridan, CT, and a board member of the Auto Body Association of Connecticut, said what customers “don’t know about those secret deals is that the insurance companies typically put huge pressure on these preferred body shops to reduce costs—and increase insurance company profits.” Denya said Cohen may have been joking about “chewing gum” being used in repairs, but that the association has “documented countless instances of these shops doing significantly substandard repairs.” “If you needed heart surgery, would you allow your insurance company to select the least expensive surgeon for the job or would you want the best surgeon possible?” Denya wrote. ►As reported in CRASH Network (www.CrashNetwork.com), October 12, 2009.
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Lean Operations
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
Better Blueprinting, Part 2: How to Set Up a Blueprinting Area with David Luehr
In last month’s Better Blueprinting Part One, we discussed reasons that shops have failed at Blueprinting. This month we will focus on performing Blueprinting, and how it can greatly benefit your collision repair shop.
Blueprint Admin Staffing Over the years I tried numerous variations and combinations of people to staff a Blueprinting program. All of them worked better than no Blueprinting program, but some combinations definitely worked better than others. Much of what influences your Blueprint staff is simply the size and volume of your shop. Many clients run smaller shops where people wear many hats. In a small shop it is not uncommon for the manager to also be the estimator, the parts guys and the Blueprint guy. It is pretty easy to determine how to staff a really small shop, but what about a shop that is a little bigger? I recently worked with a
client that had two estimators, one of them liked being in the shop and the second one was better at dealing with customers. So we moved one of them into the shop to be the Blueprint Analyst, and the other efficiently handled the entire volume of customers as the Customer Service Manager. You may need to experiment with different staffing combinations to make it work for your unique needs.
Blueprint Technician Staffing The best Blueprint team I put together had an older and very knowledgeable technician working alongside an apprentice disassembly technician. This was a high volume shop and the team worked in a dedicated Blueprint workspace with a Blueprint analyst who never left his station. Many advanced shops have taken advantage of the benefits that creating a team system brings. It is still possible to use a dedicated Blueprint area with individual flat rate
techs who are not paid as a team, but there is a lot of movement of tools and people. Some shops using rolling computer carts are finding some success performing the Blueprinting in the technician’s stalls. It works, but I still prefer a dedicated area. Again, there are many ways to create a Blueprint staff and each shop is going to be a little different than the next based on skill level, shop size, personalities, etc.
Space Don’t fall in the trap of believing that your shop may be too small to be successful with Blueprinting. I have analyzed damage in space from 2,000 sq. ft. to over 60,000 sq. ft. and the practical application is still the same.
1. Disassemble and analyze the damage. 2. Move the car until enough parts arrive to continuously work on it. (Notice I said continuously.)
3. Move the car in and fix it. The key here is to only allow vehicles on the shop’s repair floor once they are ready to be worked on continuously. If you follow this discipline, you will find shop space you knew you never had! Some setups used by successful shops: ● One or two dedicated Blueprint stalls inside the shop
● Laptop or dedicated computer in the Blueprint area ● If possible, keep the area accessible for tow trucks ● Keep fasteners and fluids in the Blueprint area
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6. Small mirror 7. Flash light/drop light 8. Mobile Estimating system 9. Creeper 10. Collision estimating system 11. Access to OEM parts schematics 12. Colored markers 13. Heavy Gloves 14. Safety Glasses
Recommended Tools In addition to the usual hand tools, the following items are needed to complete the inspection procedure: 1. Parts cart 2. Clipboard 3. Tape measure 4. Tram gauge 5. Tread depth gauge
Better Blueprinting Techniques Step 1. Vehicle Check-in Even though the process of performing a “check-in” with the customer during vehicle drop-off may not be considered a part of the Blueprint process, the information obtained is absolutely vital to the Blueprint. With the customer present, this process involves walking around the vehicle and
communicating and documenting the following. It is a great way of communicating the customer’s concerns indirectly to the Blueprint Analyst to ensure things don’t get missed! ● What damage is a result of the accident? ● Unrelated prior damage? ● Upsell opportunities? ● MILs such as check engine warning lamps on dash – prior or related? ● Anything unusual about the vehicle’s performance mechanically? ● Touch-up paint and other “freebie” promises
Step 2. Identify Mechanical Issues Identifying mechanical issues prior to disassembling and disabling a damaged vehicle is always preferable. (But not always possible.) Everyone can relate to the delays that are caused when these problems are discovered on the day the car was supposedly going to be ready! In a collision, mechanical issues could involve many things; however the most common are suspension, air conditioning /cooling system, wiring and supplemental restraint systems. I recommend that first you address these items by: ● Review the customer concerns on the check-in sheet ● Test driving ● Performing suspension alignment prior to disassembly (if possible) ● Using a scan tool to help diagnose trouble codes (check engine lights, etc.) ● Always ask the customer how many passengers were in the car, especially if restraint systems were deployed. Check those seatbelts! ● Check interior electronics, heat/air, etc. ● Check fluid levels Step 3. Communication between Estimator and Technician How many times have you seen a techSee Better Blueprinting, Page 28
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Better Blueprinting
nician take the front bumper off a car that was in the shop to get the rear bumper fixed? This is not a complicated step, but one that is often skipped with costly results. Shops need to include this step as a standard procedure and hold people accountable because the technician must be properly informed prior to touching a single wrench to the vehicle! Make it part of your program to have the estimator or Blueprint Analyst go over the checkin sheet with the technician and also review the estimate if one had been previously prepared. Use the next step (visual mapping) to help with this communication as it will clearly indicate what parts need to be removed in order to properly analyze the damage.
Step 4. Visual Mapping A great form of communication between the Blueprint Analyst and the disassembly tech is the use of a colored water marker to write on the vehicle or “visual mapping.” It can sometimes be difficult to pull the technician aside for an extended period of time to discuss
the details of a particular vehicle’s disassembly requirements. This technique can help by writing the instructions on the car in advance. This technique can also be used by the customer service rep who is identifying damage during vehicle check-in and is particularly handy when there are multiple dents or scratches on a single panel, some which are supposed to be repaired, and some that are not. When doing visual mapping, you can use any color you wish; however, I prefer to use traffic light colors: red, yellow and green.
● Red = Don’t fix ● Yellow = Caution, Don’t know if fixing yet? ● Green = Fix it! You can come up with your own system of words, abbreviations, or symbols to mark the vehicle, but here are a couple of the most common ones.
28 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
● X = Replace ● R = Repair ● RI = Remove and Install
Step 5. Meticulous Disassembly in Sequence (if Possible) In this step, it is time to start disassembling the damaged vehicle. If you have a dedicated Blueprint Analyst who will be keying-in the estimate as the technician removes the parts, it will be much easier to remove the parts in approximately the same group sequence as your estimating system parts groups i.e. bumper, grille, lamps, etc. This method is not always possible, but you will find that removing damaged parts and entering damage into the estimating system with both people following the same group sequence (Step 10) will make your life easier. You have probably heard the
terms “meticulous disassembly” or “100% Teardown.” This refers to the practice of taking off EVERY damaged component that is bolted or otherwise fastened to the vehicle. This practice should not only include damaged parts but also parts being re-
moved for blend panels or that need to be removed for access. Damaged assemblies such as bumpers should not only be removed as an assembly, but See Better Blueprinting, Page 32
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Zipcar Expands Car Sharing in Las Vegas with UNLV
The University of Nevada, Las Vegas (UNLV) launched a partnership with Zipcar on Sept. 3 to offer its car sharing service to students, faculty and staff on campus, as well as community members. Two vehicles, a Toyota Prius and Ford Focus, are available for use by the hour or the day, providing a convenient and cost-saving alternative to car ownership. These new vehicles at UNLV come in addition to six Zipcars available at the McCarran International Airport, including a BMW 328i, a Mazda 3 Hatchback and a Toyota Prius. The Zipcars will have designated parking spots located on the UNLV campus in Resident B Parking Lot for pick-up and return. Students ages 18 and older and members of the local community ages 21 and over can reserve the cars via the Zipcar mobile app for Android or iPhone, via the web www.zipcar.com, or touchtone phone. “Zipcar’s presence at UNLV is a continuation of our efforts to add convenient alternative transportation options for our faculty, staff and students,” said Tad McDowell, director of UNLV Parking Services. “As more students choose to live on campus and as the UNLV community
turns to mass transit for their commute, Zipcar provides the freedom and flexibility for those without a car on campus to get where they need to go.” “Zipcar and UNLV are bringing the next generation of students the next generation of mobility to their doorstep,” said Katelyn Lopresti, general manager for Zipcar University. “With ‘wheels when they want them’ students can forget about the cost and hassles of car ownership and enjoy the excitement of going to school in an incredibly vibrant city.” UNLV students, faculty and staff can join Zipcar for $25, with rates starting as low as $7.50 per hour and $69 per day. Gas, insurance, and up to 180 miles of driving per day are included, and cars can be reserved for as little as an hour or for multiple days. Zipcar has established relationships with more than 350 universities across North America. More information is available at: www.zipcar.com/unlv. and by following @ZipcarU on Twitter.
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ABRA Auto Body & Glass Expands WA Operations ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced the opening of its newest franchise repair center in Ellensburg, Washington. ABRA is one of the collision industry’s largest and most-respected multi shop repair operators in the country. The company uses an operational excellence philosophy that significantly improves its operating metrics which distinguishes it from competitors. ABRA’s repair center portfolio now stands at 239 in 19 states. The new repair center is located at 641 West University Way in Ellensburg, Washington, about 100 miles east of Seattle. It is the first ABRA franchise in the state and is owned and operated by Tom and Sandy Morris. Mark Wahlin, ABRA’s Vice President of Franchise Development and Relations said, “Part of our growth strategy is to expand our franchise conversion rates in small and midsize markets to help meet the demand of our customers and insurance partners in the communities in which we serve. Opening the Ellensburg ABRA repair center is another important step toward meeting our goals.”
ABRA franchise owner Tom Morris said, “I am impressed with ABRA’s operational excellence philosophy, their culture of ethics and integrity. There is no doubt this is great for Kittitas County and a tremendous opportunity for our employees to flourish and grow.” ABRA plans to continue expanding in the months and years ahead as part of its aggressive national growth strategy. It is actively seeking new opportunities to acquire repair centers and integrate them into its industry-leading operating system. Interested parties in major markets should contact Scott Gerling, Vice President of Corporate Development (sgerling@abraauto.com or 763-585-6210). For franchise opportunities in small and midsize markets, contact Mark Wahlin, Vice President of Franchise Development/Relations (mwahlin@abraauto.com or 763585-6315). ABRA is committed to conducting business based on responsible business practices including implementation of environmentally sustainable initiatives, health and safety, and a commitment to the communities it serves.
Third Party Adminstrator from CA Expands Into Texas
Calif.-based Athens Administrators, a full-service, third-party claims administration services provider since 1976, is expanding into Texas and appointing Vance A. Root as executive vice president, in charge of driving expansion and operational efforts in the Southern United States Region. Athens’ move to the Texas market maintains its national growth strategy. Root has over 25 years of experience in the claims and commercial brokerage arena and has developed claims programs for some of the largest accounts in the U.S. In his role as executive vice president, Root will lead the company’s new business development and expansion initiatives into Texas and surrounding states, as well as provide management and oversight of Athens Administrators’ liability claims unit.
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PartsTrader Hits 1,000,000th Order Milestone PartsTrader announced that it has successfully processed its 1,000,000th collision repair parts job since it launched its online marketplace in February 2012. On August 7, Bowman’s Auto Service Inc. of Flatwoods, Ky. opened a repair order on a 2011 Ford F-150 and used PartsTrader to source and order the required parts, marking the 1,000,000th repair job that has been supported by the PartsTrader system in the last 30 months. “I’ve been working with PartsTrader for over a year now,” said Doyle DeLawder, Bowman’s Parts Manager. “This system makes it easier to send out quotes and receive responses. It really cuts down on my workflow.” Since the initial product launch, the PartsTrader team has worked through many product updates and enhancements, all driven by user feedback such as from Bowman’s Auto Service, Inc. “Our 80 plus US-based associates have worked very hard for the last few years to get us to this point, and we’re pleased that an ever growing number of repairers across the country are turning to us for their parts sourcing needs,” said Dale
Sailer, PartsTrader’s Vice President of Business Development. There are currently more than 7,500 collision repair businesses and 8,500 suppliers active on the PartsTrader system, using the online marketplace to process more than $1 billion in parts orders annually. “We’re thrilled to be the onemillionth parts job!” said DeLawder. Sailer contacted Bowman’s to notify them of the milestone and purchased lunch for all of the shop’s employees to commemorate the occasion.
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Illinois is Third State to Provide Online Access to Insurer Filings
The Illinois Department of Insurance (DOI) is now providing online access for consumers to view insurance company records. Insurance product filings, such as rates and forms, filed with DOI are now available to the public through the online tool SERFF Filing Access (SFA). Illinois became the third state nationwide to implement the new service that will provide consumers direct access to insurance records, the department said. Prior to submitting a Freedom of Information request for records, the requestor (whether a consumer or member of the media) may first check the information is available to them via SERFF. All public records not legally declared by law to be closed, and for which DOI has legal custody and control, are available for inspection. Documents that are closed (not public) are not available on this website. Filings will be available electronically through SERFF upon the completion of DOI’s review. Access SERFF at https://filingaccess.serff.com/sfa /home/il. SERFF was developed under the leadership of the National Association of Insurance Commissioners (NAIC).
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Better Blueprinting
should also have all the grilles, lamps, moldings, fasteners, etc. removed. There are three main reasons that 100% Teardown is recommended.
1. To reveal all hidden damage 2. Ensure fasteners will be reused 3. Facilitate ease in mirror matching the replacement parts
Step 6. Divide Parts by Good and Bad (R&R and R&I) As the technician is disassembling the vehicle, the parts being removed should be separated and placed in two visually separate spaces. One space for damaged parts (Bad) and another for parts just being removed and later re-installed (Good). I prefer to use a table to lay parts out, but you could also use the floor.
and billed out on the initial Blueprint, they become a profit center! I have seen several ways to capture and record these, but my favorite technique is to use a clip sheet. By the tech taping a sample of the damaged clip to a clip sheet and writing out the quantity needed, the person entering the information into the estimating system will have the information. There are two additional benefits to using this system. 1. You can take a photo of the clip sheet to send to the parts vendor. 2. The clips are where you can mirror match them until the new clips arrive. If your company stocks the needed clips, you should put the new replacement clips in a marked bag along with
Step 7. Using a Clip Sheet Clips and fasteners tend to be an often overlooked part of the damage analysis process and with costly consequences. Some shops consider clips and fasteners an expense. When damaged or missing fasteners are captured
● Is ready to go back on during assembly (part of the “kit”)
the old re-usable clips so when it comes time to reassemble the vehicle, everything the tech needs will be there. It’s a term called “kitting” because you are actually building a kit with everything needed to assemble the car on a parts cart.
Step 8. Re-backing Moldings and Trim As mentioned, we are trying to build a “kit” for the technician during reassembly so cleaning the adhesive and applying new adhesive backing on moldings and emblems should be done immediately after removing them. There are advantages to re-backing the trim now. ● If molding is painted, lessens chance of damaging paint later on ● If they are going to break, it is better to know now so it can be added to repair plan
Step 9. Sequenced Analysis of Damage Using Arrow-Down Method There are several schools of thought about what sequence to put damage entries onto the estimate. Most of us were taught to start with the point of impact and then work outwards. I don’t agree with this because it opens up too much room for error. Nearly 10 years ago, a good friend suggested that I should use the information in the estimating system and take it to the damaged car, instead of the other way around. By keying down through every part in each group, you will now catch parts that may have been completely destroyed or torn off during the accident. I also highly recommend using actual OEM diagrams.
Step 10. Photo Documentation In addition to your company’s photo standards, I suggest getting photos of the parts as they are being laid out on the table or floor. Your local insurance adjuster will most likely appreciate it. Step 11. Blueprint Verification Process, Loading Parts Cart See Better Blueprinting, Page 40
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Nationwide Auto Insurance in NJ for First Time Since 1981 Nationwide Mutual Insurance Company began offering New Jersey auto insurance policies in August, after being approved to enter the insurance market in June. “We are very pleased to welcome a company of the size and stature of Nationwide Mutual Insurance Co. to New Jersey,” said the Department of Banking and Insurance Commissioner Ken Kobylowski. “This is positive news for consumers as it gives them more choices. The company’s decision to begin offering auto insurance policies here also indicates that the State’s insurance market is strong and that the Administration’s pro-growth policies continue to draw business to the State.” Nationwide, headquartered in Columbus, Ohio, will initially market the auto policies over the phone, through the Internet and through Nationwide’s agents in New York, Pennsylvania and Delaware. “Nationwide is excited about this opportunity and the commitment the State and the Department have made to enhance the regulatory climate in New Jersey,” said Mark Pizzi, president and chief executive officer of Nationwide Insurance. “They have opened the doors to more choices for
New Jersey residents and Nationwide is pleased to be part of this vibrant market. Expanding into the Garden State is an important step in Nationwide’s goal to become a truly national brand.” The arrival of Nationwide means that nine of the nation’s top 10 auto insurers are writing auto insurance policies in New Jersey. The other top eight are: State Farm, GEICO, Allstate, Progressive, Farmers, USAA, Liberty Mutual and Travelers. (American Family, the ninth largest auto insurance company, by premium, in the U.S. does not write insurance in the Eastern region of the country.) Overall there are 77 active insurance companies and 35 insurance groups writing auto policies in New Jersey with a total of 5.4 million exposures and $6.82 billion in written premiums in 2013. Nationwide is not new to the New Jersey insurance and financial services marketplace. Nationwide offers auto insurance in New Jersey
through Harleysville Insurance Co. and Harleysville Preferred Insurance Company of Pennsylvania. Nationwide merged with Harleysville in 2012. Nationwide wrote auto insurance in New Jersey previously, but left the market in 1981. Many Nationwide Financial Services and Nationwide Agribusiness products have been available to New Jersey residents for years. Additionally, Scottsdale, Nationwide’s excess and surplus and specialty insurance company, has served the New Jersey market for more than 30 years. “Nationwide’s entry into the market is a major milestone for New Jersey,” said Commissioner Kobylowski. “The fact that we now have nine of the nation’s ten largest insurance companies writing auto insurance here is a both a testament to the strength and competitiveness of the market and another indication that New Jersey is a good place to do business.”
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ABRA Auto Body Acquires USA Collision Centers
ABRA Auto Body & Glass, a leading national damaged vehicle repair company, announced it had acquired USA Collision Centers in Harrison, West Chester, and Cincinnati, Ohio. The news follows ABRA’s initial entry into the state in June 2014. Terms of the transaction were not disclosed. The recent growth in Ohio is part of the company’s strategy to increase its national footprint. ABRA is one of the collision industry’s largest multi shop repair operators in the country. ABRA’s portfolio now stands at 243 repair centers in 19 states. “The acquisition of USA Collision Centers represents a fantastic opportunity to expand our presence in Ohio and continue building on the extraordinary success we’ve achieved in the region,” said Duane Rouse, ABRA’s president and chief executive officer.” Joseph Sanfillipo, Jr., founder and co-owner of USA Collision Centers, said, “I have complete confidence ABRA will continue the legacy my family and I have built over the years. There is no doubt our employees will flourish and our customers will receive the highest quality repairs and superior service they’ve come to expect.”
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 35
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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.
Is Angie’s List Impartial or Is She Playing Favorites? with Ed Attanasio
Some body shops swear by Angie’s List and call it the “Anti-Yelp,” but in the end, isn’t it just another advertising-based review system? If you’re not familiar with Angie’s List, it’s a paid subscription supported website containing crowd-sourced reviews of local businesses. They currently have 2.3 million paid members, although the company lost $1 million last year. Right now, Angie’s List is under fire and many small service companies have put her on their enemies list. Poor Angie is getting bad feedback from subscribers, investors and businesses alike, for bad reviews from low-rated businesses, disappointing earnings, executive departures, and lawsuits alleging misleading practices. Then, there’s the younger, hipper competition offering similar information for free. Angie’s List wants users to think they’re consumer-driven, when in fact 70% of their revenue comes from advertising. “It’s not advertising from Coca Cola, it’s advertising from the companies they rate,” Jeff Blyskal, a senior editor for Consumer Reports explained. While companies do not pay to be listed on Angie’s List, companies can pay to appear higher up in the search results—which Blyskal believes compromises the validity of the Angie’s List sorting system. “If you’re looking for a contractor, you’re only going to look at page one or two. That skews the ratings,” said Blyskal. “It’s about who advertises and I don’t think they’re being straight with the public on that.” In a recent statement, Angie’s List founder and CMO Angie Hicks said, “Angie’s List is built on a foundation of fairness and transparency. Everything at Angie’s List starts with the consumers. The consumers give the reviews and assign grades. The companies’ A–F ratings are the average of the consumer reviews we receive. Companies that are A–B rated are eligible to advertise with Angie’s List, but they must offer a discount with that advertisement and if their grades fall below a B, we pull their advertising.” Hicks also noted that the company puts itself through an outside audit in order to determine that the data-han-
dling process is fair to all businesses listed on the site, and that these audits have “always found Angie’s List reviews a fair, impartial, trustworthy source.” Angie’s List has been criticized for the fundamental contradiction between its mission statement which states, “Companies can’t pay to be on Angie’s List,” while in reality its toprated businesses are allowed to advertise. Small business owners (like body shops) are crying foul, because they’re aware of the fact that if a company advertises with Angie’s List, their negative reviews will be removed. The company’s effort to keep advertisers happy reveals their conflict of interest, which is why subscribers and businesses are claiming that Angie is playing favorites. Angel Iraola from Net Business Consulting & Solutions in Santa Rosa, CA has advised his clients in the past to use Angie’s List, because for many years it was better and more credible than Yelp, he claimed. But no longer, Iraola said. “The A- and B-rated companies on Angie’s List can buy their way to the top of the default search results and that makes it patently unfair. My automotive repair clients are gravitating more now toward Yelp, because they’re not so blatant about giving special treatment to advertisers.” One body shop owner (who chose to be anonymous fearing bad reviews from Angie) said the following: “It seems to me that just a few short years ago Angie’s TV commercial was completely different. She seemed to end each one with the statement ‘no company can pay to be on Angie’s list.’ But, now they’re forced to make money and advertising seems to be the way they’re doing it. I think ‘truth in advertising’ should pertain to everyone, especially those that claim complete transparency but don’t adhere to their own claims. Do we even know if Angie is the real owner or just a paid actor like Flo on the Progressive commercials? I’ve lost my faith in this site, so we don’t use it anymore and we took their link off our web site as a result.” How can a body shop owner be certain that Angie’s List is on the up and up or playing games with your re-
38 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
views? Iraola says do your due diligence and get everything in writing. “Angie’s List is just like any other review site” Iraola said. “They need to make money somehow and at the beginning they were going to the customers to get it. But, how many people are going to pay $100 annually to find good, honest companies if they know that these companies are also paying for their positions on Angie’s List? That’s one of the biggest problems with Angie’s List. Are the toprated companies really there because they do excellent work or are they there because they bought that spot? Once any review site loses its credibility and the end users doubt its validity, problems will follow. I hope Angie’s List can figure out a way to re-invent itself, so that my clients will want to get involved and the customers will believe in it again.” When it comes to review-based sites, Iraola prefers Yelp to Angie’s
List, especially for body shops. “Yelp is more relevant and many shops still don’t like it, but in the end it’s their best way to go. I tell collision marketing people to manage your Yelp page and respond to every review, both positive and negative. Use it as a tool and stay on it, because if you let a bad review sit, it looks like it’s justified. And stay away from Angie’s List at least for now. They will undoubtedly re-invent itself to a certain degree very soon, because right now they’re losing traction.” Curtis Nixon is the president of AutoBody-Review.com in Chino Hills, CA, a company that verifies every customer review by tapping into a database that confirms their identity and thereby gets true reviews for its body shop clients. “The big problem with these review sites is that they do not contain verified reviews,” Nixon said. “We make sure that the customer See Angie’s List, Page 40
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ASA-AZ’s Phoenix Chapter Board Prepares Next Year’s Schedule, Calendar Forthcoming
by Chasidy Rae Sisk
During the weekend of Sept. 12, the Phoenix Chapter Board of ASA-AZ met in Prescott to discuss and establish plans for the upcoming year. Though the board has been working over the past year to schedule speakers and training for their membership, a consistent schedule has yet to be established. “The board’s goal was to create a calendar of activities that will service the entire Phoenix Metro area,” says Luz Rubio, Executive Director of ASA-AZ. Jeff Lovell, President and Executive Director of ASA-Northwest, attended the meeting to help facilitate the group’s discussions and guide them toward completing their goal. “The majority of the board members attended, and were prepared to be creative and commit to draft activities in their assigned area, with topics such as industry marketing, employee retention, insurance, etc. The event went very well,” said Rubio. “The board members took the planning very seriously, and the outcome was a list of meeting descriptions, dates and possi-
ble locations through August 2015. The calendar showcases meetings in the East Valley, West Valley and Central Phoenix area which will allow members to attend a meeting in their area. We will also be alternating the general meetings with small roundtable meetings to allow for discussion on industry issues and group resolutions.” ASA-AZ recognizes the importance of developing a calendar of activities in advance because it gives members time to plan their attendance. As with all industry associations, generating interest and engaging members is very important for both the association and the industry. “The board members agreed that their value in being a member of ASA came when they started attending meetings and becoming more active,” Rubio explains. “The network of business owners that they interact with has added value to their business. We, as an association, need to get the message out to our members; it’s not about the discounts that may go away at some point, it's about the conversations that take place at meetings.”
Continued from Page 38
Continued from Page 32
doing the review indeed had their car repaired by the shop they’re reviewing. We illicit the reviews by doing a customer satisfaction survey and we’re finding out that about 25% of the customers are writing reviews on our site as a result. This way, both body shops and customers can rely on these reviews, because they’re real.” AutoBody-Review.com charges its body shop clients a monthly fee and does not offer advertising to get any shop at the top of any list. “Staying objective is crucial and that’s why our reviews carry weight. We never manipulate reviews or call customers to have them changed or delete any review, negative or positive. Our playing field is 100% level, so if a shop does good work, they get praised and vice versa. Selling ads for prime positions is definitely a clear conflict of interest and not the right way to do things, in my opinion. The customers should dictate position, not the almighty dollar and that’s why we will never sell ads to our body shop members—ever!”
This is the most important step! Print the estimate out. Check off each damage entry on your estimate as the corresponding part is loaded onto the cart. If you have everything checked off your estimate and there are still dam-
Angie’s List
Better Blueprinting
aged parts on the table or floor, you may have missed something. It’s a simple but very powerful technique. Finally, be sure to place the parts in the same manner as discussed in Step 6. When you orderly divide the good and the bad parts on the cart, it makes checking the replacement parts for correctness (mirror matching) easier to do. For more information or to schedule a Blueprint Clinic at your shop, please contact David Luehr at: dluehr@msn.com
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 41
The Legal View with Erica Eversman
Erica Eversman is an attorney, frequent speaker and author on automotive legal topics. She has been quoted in such publications as The Wall Street Journal Online, USA Today, Kiplingers Personal Finance, Cars.com, Yahoo! News and other trade magazines.
Parts Authorization, Indemnification and More—Documentation Part 3 by Chasidy Rae Sisk
Over the past two issues (see August and September Autobody News), industry attorney Erica Eversman has offered some insights into the various types of documentation that collision repair facilities can use to protect their interests and help them obtain proper compensation for work performed. In the final installment in this series on repair documentation, Eversman helps explain the purpose for and how to use the Parts Notice/Authorization and the Indemnification/Hold Harmless Letter, with a few additional documents. The Parts Notice/Authorization is an important form for repair shops to utilize since most states have statutes pertaining to the use of used or aftermarket parts which requires the shop to notify the consumer if these types of parts are used to repair their vehicle. When choosing the parts to use in a repair, the facility has several op-
tions: new OEM parts, aftermarket parts, or salvage yard parts (which the insurance industry commonly refers to as “recycled parts”), but dependent on and subject to state laws, the repair facility must be sure that the consumer understands which parts are being utilized in their vehicle—and that disclosure can be easily be substantiated by having their customers sign a Parts Authorization. Often, the insurance company instructs the repair facility to utilize aftermarket parts in the repair, but ultimately, the consumer is putting their life in the repairer’s hands, not the insurer’s. “Nothing gives a repairer the right to knowingly put an unsafe part on someone’s vehicle,” Eversman admonishes; however, there will be situations that repairers face when they are not entirely comfortable with the insurer’s suggestion to use particular used or aftermarket parts in the repair. In those situations, if the consumer is
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unwilling/unable to pay for new or new OEM parts when the repairer has concerns about using used or aftermarket, Eversman states, “the repair facility is ethically responsible for performing a safe repair, despite pressure from insurers, so the repairer must ensure that the consumer is notified that the repairer really prefers to use different parts during the repair process.” Although aftermarket or recycled parts may work just fine the majority of the time, there is always the potential for problems when parts used in the repair are not new OEM. In the event of an accident related to the failure of these parts, the repair facility needs to make certain it has protected itself by proving the insurer refused to pay for new OEM parts, the consumer was informed about the use of these parts but refused to pay the difference for the preferred parts, and the repairer possesses this signed document establishing the consumer’s notification and
consent. “People don’t want to think about accidents,” Eversman points out. “Generally, they don’t think of it until after an accident when they’re already vulnerable. We, as an industry, need to do a better job of educating consumers in advance.” In addition to the Parts Notice/Authorization, repair facilities that are averse to installing certain used or aftermarket parts should also ask their customers and the customer’s insurer to sign an Indemnification/Hold Harmless Letter which explains that the repairer is only using the specified parts because both the customer and the insurer insisted on them. This document makes the insurer liable for the use of the specific parts and documents their agreement to pay for any lawsuits or damages the repairer suffers for problems with the parts. Insurers rarely agree to sign this document, often opting to pay for the appropriate part instead, but if the insurer insists on the
use of potentially unsafe parts and the customer agrees, the repair facility must protect itself from the insurer’s influence; otherwise, the insurer will claim it has no responsibility for the use of those parts in the repair. Because manufacturers don’t offer a warranty on aftermarket parts, using these in a repair can lead to a partial or complete restriction on the vehicle’s bumper-to-bumper warranty. OEMs cannot automatically void a warranty due merely to the use of aftermarket parts, but they can restrict or void the warranty if the aftermarket part results in problems with the vehicle or causes an accident due to part failure or malfunction. Still, many insurance companies’ DRP contracts require the use of aftermarket parts, yet they will not insure the shop’s liability if there is an issue. Though insurers say they will “guarantee” the work of a DRP shop, doing so requires assuming liability, which insurers invariably try to avoid. While they generally say they offer warranties on the aftermarket or used replacement parts, insurance companies’ warranties do not cover the facility’s workmanship unless specifically stated. As a result, consumers are too
often told by insurers that the insurer “guarantees the repair”, but if a consumer actually reads what the insurer is guaranteeing, it is often nothing more than a statement that it will try to address a problem with an aftermarket part after the consumer has addressed the warranty problem with the part manufacturer. Eversman states, “the insurance company’s guarantee is useless. Warranties are like insurance policies – they contain more exclusions than actual coverage. The insurers will say they don’t fix cars—they just pay for repairs and that all of the decisions for how the vehicle was repaired were the collision facilities; however, their ads brainwash consumers by creating the impression that insurers are involved in the repair. These ads focus on a magical restoration without the involvement of the consumer or the repair facility. Much of this glib advertising creates the wrong impression for consumers that doesn’t reflect reality.” Eversman also strongly discourages shops from offering a warranty on anything besides their workmanship, especially on parts. Thanks to the Magnuson-Moss Warranty Act, insurers can offer a warranty for the repairer’s workmanship and parts used
in the repair, though this puts them on the hook to assume liability in the event of a problem. Eversman advises shops to “refuse the insurer’s demands to offer aftermarket or recycled parts warranties. Repairers should clearly state in all customer documents that you guarantee your services and repair work, but never offer a warranty for any part used in the repair. Doing so only subjects repairers to potential lawsuits involving double or treble damages and the payment of the consumer’s attorney fees if there are issues with the parts.” In addition to the documents discussed in detail throughout this threepart series, Eversman feels that shops should also be aware of some additional documentation that they may find useful. The Customer Notice of Insurer Deficiency is a form that serves to inform the consumer of their insurance company’s refusal to pay for a proper, safe repair. Eversman notes, “this form can help with the public relations battle; the insurance companies don’t like to be called out on their actions, so they are more likely to handle the problem. It also reminds the customer that you are the collision repair professional and that you are re-
fusing to perform an unsafe repair, despite the insurer’s demand that you breach this part of your contract with your customer.” The Customer Notice of Insurer Delay keeps the consumer in the loop by alerting them to the fact that the insurer is causing a delay in the repair process. The Vehicle Damage Insurance Election Form, which only applies in first-party cases, is a document that the customer can send to their insurance company demanding to know what specific remedy under the insurance policy the insurer is choosing. This forces the insurer to define whether it is “electing to repair” and accepting all liability for the repair or paying for the loss in money. Though the insurer is unlikely to sign this document, the customer can note their refusal to responds to the request, and this can be useful if a trial is necessary as the insured has the right to demand a response from the insurer to questions related to their claim. A Notice of Additional Cost is a nice way to inform the insurance company of an additional repair cost, granting them a specific amount of time to respond before resuming the See Documentation Series, Next Page
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 43
On Creative Marketing with Thomas Franklin
Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
End Useless Marketing—Redirect Funds and Get Results! The marketing world has changed significantly during the past few years. So much has moved on-line that most other marketing expenditures may no longer make sense in your area. If you track results from your marketing efforts, you have probably noticed the lack of business coming from print ads, print version yellow page, and other phone book ads. It may be time to pull the plug on non-productive marketing and make better use of those funds. As insurance companies establish toll-free numbers to report claims, you should probably stop marketing to most agents. Unless you have nearly unlimited funds to advertise just to keep your name in front of the public, you should probably end off radio and TV advertising. And stop paying for useless advertising schemes. These moves should free up money to pay for real marketing results. So where should you redirect these funds? Mainly you want to double up on-line and live contact efforts. On-line yellow page, Superpage, and similar services will allow prospective customers to find you. Enhancing your website, Facebook page and other social media will be one good use for expanded expenditures, but this should only be a start. As the volume of collision repairs decline due to advances in vehicle accident avoidance technology, to survive shops will have to embrace other profit centers. This may call for a new mindset not familiar to most shop owners and managers. For example, merchandise store marketing rule number one is “Get as many people as possible into the store!” People like to go to famil-
iar places and prefer not to have to try out a new place if they are happy with the old one. The intent is always to make a prospective customer’s first experience so incredible, they will always come back first before trying out any other place. How can a shop make use of this fundamental principle? Perhaps it’s time for shops to copy what dealerships have done for decades. Shop owners and managers accustomed to $2000 repairs and up, may scoff at a couple of hundred dollars here and there in profits from vending machines, accessories, audio sales, and cosmetic automotive merchandise. But keep in mind that many “profit-centers” have a second benefit as marketing opportunities. Every new person that comes into the shop should be given a powerful propaganda piece. This should be a booklet featuring the shop’s “special” features. Shop personnel often think prospective customers know what equipment shops have, and what they do, but this is rarely true. A booklet should spell out why a shop’s frame machine, welding equipment, and painting capabilities are better than the competition, and why special skills in repairing hybrids, electric vehicles, exotic cars and more make this the best shop to repair a vehicle. The reality is the public is generally unaware of shop expertise, and the unspoken message of the booklet is that our competitors are unlikely to have this high quality equipment and systems (even though they may have it too). Sharing or piggybacking businesses is increasingly popular as rents go up. Local grocery stores now often
Continued from Page 43
website). Obtaining proper repair documentation is essential to providing customers with the best possible repair. Eversman encourages all collision repair facilities to protect their businesses by contacting a local attorney to begin drafting these vital documents. Erica Eversman is the Chief Counsel for Vehicle Information Services, Inc. and founder of the Automotive Education and Policy Institute.
Documentation Series
repair, since this saves rental car time for the insurer. It also gives the impression that the insurance company must respond to you because you’re in control of the repair process. Lastly, an Authorization and Release gives you the right to use photos or videos of the repaired vehicles for your own purposes (such as on your
44 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
have a Starbucks or similar concession in the store. Some hamburger chains now have a donut vendor concession or a pizza concession sharing the space. Sharing the cost of a space again frees up funds for marketing and perhaps advertising deals on line using Craig’s List, eBay and other sites. Auto glass, headlights, accessories, cosmetic fixes, running boards, pet restraints,, child proofing, older cars with no GPS are all profit-center prospects for sales and/or installations and add new names to an e-mail marketing list. A shop might want to partner with an automotive accessories vendor and provide an alternate display area—and not only share in the sales profits, but also profit from installations and again capture prospect names. In a shop where estimators only write estimates a few hours a week, product sales and installation fees can be an on-going supplemental commission opportunity.
Beyond front office space, a collision repair shop also has a huge amount of space compared to most businesses. Some shops open up repair space for mini-trade shows, and not only for collision repair products. Convention centers are costly places to hold trade shows, and small groups like furniture and equipment vendors could appreciate a local space to show products. This could bring in local businesses with company vehicles and provide an opportunity to solicit their vehicle repairs. Another alternative is more community-based uses of space. Sundays some shops make open space available for meetings, church groups, school groups, and boy or girl clubs or activities.. Kid’s activities bring parents, especially moms who can be good prospects for vehicle repair. Redirecting marketing funds like this will generate far more sales than old-style advertising and promotions. Original BMW Parts
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AudaExplore Study Finds Major Gap in Trust and Customer Satisfaction in Collision Repair Experience
AudaExplore™ has released a study showing a major gap in trust and customer satisfaction in repair shops and insurance carriers. The study found that collision repair technicians are less trusted than many other professions and that almost half (48 percent) of consumers surveyed believe that repair shops sometimes, rarely or never provide great customer service. Insurance companies didn’t fare much better, with only 22 percent of respondents saying carriers decreased their stress level after a car accident. There is a clear consensus that repair shops and insurance carriers must improve in the areas of communications, trust and price. “With increased competition, employee turnover, evolving vehicles, digitally empowered consumers and endless streams of data, the relationship between customers and companies has changed dramatically,” explains Adam Vasquez, VP Marketing, AudaExplore. “We are living in the Era of Disruption, and providing a great customer experience is more important than ever. In this new era, it’s not just about the number of shops or the size of your network; it’s about building trust with constant communication and
transparency throughout the repair process.”
Communications When it comes to delivering a great customer experience, communication is the driving force. According to the survey, respondents find timely electronic updates valuable, with more than one in three wishing they received these more often. In fact: ● 74 percent say they would like to better understand the work their repair shop is doing. ● 62 percent say that it would be very or somewhat valuable to receive timely electronic status updates, such as email alerts, text messages, or social media notifications during the repair process. ● Being kept informed on progress of repairs ranked highest (4.2 on a scale of 1-5) among a list of eight customer desires.
Trust Out of five professions (teacher, doctor, law enforcement, automotive collision repair technician and lawyer) collision repair technicians rank second to last on the trust scale. Twentyeight percent of those polled reported trusting collision repair technicians the
least. In addition: ● Only half of those surveyed believe that repair shops always or often provide the most qualified technicians. ● Less than half (49 percent) believe technicians always or often perform only repairs that are necessary.
Cost Overall, respondents would like more accurate estimates and better premiums, and they don’t believe insurance providers are doing a satisfactory job in this area. ● Only 34 percent of those surveyed believe a fair price is charged always or often. ● Almost half (46 percent) of respondents say that repair shops sometimes, rarely or never deliver a final price that matches the original estimate. ● For insurance carriers, more than one-third (34 percent) of those surveyed say they would like more accurate collision repair estimates. “The research shows that there is a gap today with customer expectations that is having a negative impact on insurance carrier and repair shop business,” continued Vasquez. “By leveraging advanced data and technology to manage customer expectations, insurance carriers and repairers can keep customers informed, making re-
pairers more trusted and helping to better manage the difficult price conversation.” This study sheds light on some of the present issues in the collision repair industry, unveiling that ultimately, communications is the driving force behind customer satisfaction. By solving these challenges, customers will not only be more informed and trusting, but companies will position themselves to be successful in a competitive marketplace. For more details about the study, please visit www.collisionrepairinsights .com.
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John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision 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
CIC Committees Look at Autonomous Vehicle Issues, Impact of “Length of Rental” Formulas Lawmakers and regulators on a state, federal and international level are working to make sure they can stay ahead of the quickly-developing “driverless vehicle” technology—but what will it mean for collision repairers? That was one of the questions considered in a presentation at the most recent Collision Industry Conference (CIC), held in Detroit, Mich. The committee looked at what laws and regulations are being enacted surrounding the technology, and what that could mean for collision repairers, insurers and other industry segments. Steve Regan, chairman of the committee, said that for insurers, the new and costly safety-related equipment involved in autonomous cars will impact repair costs. Access to or use of “black box” data will continue to be an issue. And liability related to the repair of the vehicles could be an issue for insurer offering garage-keepers, as well as liability policies for collision repairers.
The auto manufacturers and system suppliers will potentially face liability if their systems are controlling these vehicles, Regan said, but some of that liability is addressed in the state and federal regulations being enacted. “We started tracking these laws and noticed the missing component,” Regan said. “There’s no protection in any of these laws for those who are fixing the cars.” That’s an issue the industry will need to continue to monitor, Regan said.
‘Length of rental’ formulas discussed Also at CIC in Detroit, a panel tackled a new twist on the issue of cycle time. The topic: Do insurer formulas used to calculate the number of “rental days” on an initial estimate drive down cycle time? Do they set unrealistic expectations for consumers? Do they add friction and inefficiencies? Or do they do some combination of all
of these things? Pat O’Neill of Bodyshop Revolution, who moderated the discussion, noted that there is a wide variation in the formulas shops and insurers use to determine expected “length of rental” (often used as a proxy of “cycle time”) and even in the statistics about average length of rental that are reported by the rental car companies or information providers. Data provided by Enterprise Renta-Car, for example, found that length of rental in the secPat O’Neill ond quarter of this year averaged 10.7 days nationally, but ranged from a low of 8.9 days to a high of 14.1 days in another. With a 5-day difference between some states, repairers on the CIC panel asked, is it reasonable for an insurer to set length of rental expectations using a national formula? Panelist Darrell Amberson of
LaMettry’s Collision in Minnesota read some of the formulas that the CIC committee had collected that insurers use (or require their direct repair shops to use) to establish the initial completion date, which may be included on the paperwork given to the vehicle owner. Those formulas ranged from one day for every three hours of labor to one day for every six hours of labor on the estimate. Some formulas allow the shop to exclude weekends or delays caused by parts. Panelist Aaron Schulenburg of the Society of Collision Repair Specialists said one insurer acknowledged to the association that it recognized its hours-per-day formula for its direct repair shops was outside the norm for the industry, but that it set that goal to make sure its shops prioritized that insurer’s work over one who had set an unrealistic hours-per-day goal to try to get its work prioritized. If the goal is to drive performance, Schulenburg said, that’s one
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thing. But when it establishes unrealistic expectations for the consumer, and requires multiple adjustments by the shop and rental car company to the completion date information, that impacts efficiency and customer satisfaction. He said it’s also unfair for a shop to have to pick-up the cost of a rental if repairs exceed a calculation based on an unrealistic formula. “The shop didn’t sell a rental coverage policy, and they didn’t profit from the sale of that policy,” Schulenburg said. “My concern is: Is that the best way to drive behavior,” Amberson asked about the formulas. “If you’re going to push us to fix cars faster, is that really the best way to do it? I might suggest there are more cooperative ways to do this. This feels like a negative approach with a negative consequence if we don’t achieve what you’re looking for, and on top of that causes us to create an unrealistic expectation to the customer, which only irritates and frustrates them.” Amberson said that his company is making an effort to reduce cycle time by using blueprinting – but that “the formulas insurance companies use have very little to do with the improve-
ments we’ve shown in our numbers.” Chris Andreoli of Progressive Insurance, the lone insurance company representative on the panel, agreed that the customer should not be given inaccurate completion date information, but that length of rental formulas can be used as a starting point in that conversation. He agreed that using the same formula for every vehicle across the nation isn’t as accurate a system as he believes the industry will develop as data sophistication improves. He predicted that at some point shops and insurers will be able to establish more Chris Andreoli accurate completion dates based on data that will include year, make and model of vehicle, as well as market or region. “I think that’s where the level of sophistication needs to go in the industry,” Andreoli said.
Not a lot of consensus The panel did not seem to agree on how often consumers currently are being given an accurate completion date.
Curtis Nixon of UpdatePromise.com said his company’s research indicates shops are hitting promise dates 88 percent of the time; however, he shared data showing the impact on CSI Curtis Nixon based on the number of times a promise date changes, a chart that showed the impact on CSI for as many as 12 such promise date changes on a job. The rental car companies on the panel seemed to experience more changes to the initial completion date information than an 88 percent accuracy stat indicates. “We do see a lot of changes,” said Mckenzie Spalding of Choice Auto Rental, a regional company in the Twin Cities market of Minnesota. “It happens a lot.” “We see an average of 2-4 changes that occur per claim,” concurred Frank LaVioila, assistant vice president for collision industry relations at Enterprise. Amberson said using better data instead of arbitrary formulas could reduce or eliminate such changes, which impact shop and rental car company
efficiency as well as potentially lower customer satisfaction. Because of such formulas, Amberson said, “Sometimes we meet the customer’s basic expectations but we’re not exceeding the customer’s expectations. We’re not wow’ing them. We’re not creating raving fans. And that’s what we should be striving for. We should be striving for excellence, not just a tolerable experience for the customer.”
ASA Announces Plans to Relocate Headquarters
It’s been a busy season for the Automotive Service Association (ASA) as the national office prepares to relocate its headquarters in a few weeks from Colleyville, Texas, to nearby North Richland Hills. In addition, the association recently held its successful NACE|CARS trade show in Detroit. Effective immediately, the association’s 800-ASA-SHOP (2727467) number is changing to (817) 514-2900. Please update your records to reflect this change. And effective Oct. 1, 2014, the association’s new headquarters will be located at 8209 Mid-Cities Blvd., North Richland Hills, TX, 76182.
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Western News
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Southern California Shop is Happily DRP-Free with Ed Attanasio
Direct Repair Programs (DRPs) have become the main source of revenue for body shops nationwide, and that doesn't appear to be changing any time soon. While many collision repairers look at DRPs fondly, others do not. One body shop owner in southern California said enough to DRPs, and even though his numbers have dipped slightly since then, he’s sleeping better at night knowing his profits per car are continuing to climb. Owner Hiten Adhvaryu, 36, purchased Quality Assured Collision Center in Long Beach, CA in 2007. In 2008, the shop had its worst year as the economy imploded, but by the middle of 2009, the business was almost back to normal. Since then, the shop has improved its revenues every year.
Owner Hiten Adhvaryu (back row, fourth from left) and his staff at Quality Assured Collision Center in Long Beach are proud to be known as “an independent that is independent from the insurance companies.”
Adhvaryu’s theory for success is simple--concentrate on the work and everything else will fall into place. “The work comes first and that’s our approach,” he said. “There are things that will happen in any business that you can’t control, but you can control the quality. Once we get a customer in here, we go out of our way to exceed their expectations. Getting customers isn’t easy and we work hard to acquire them, so once they’ve agreed to bring their car here, we want to perform at a high level. Repeat customers and referrals are the backbone of any business and collision is a great example of that.” Quality Assured operates out of a 63,000-square-foot facility that was built in the 1940s, but Adhvaryu is proud of the fact that his approach to fixing cars is cutting-edge, not old
school. If there is a new form of technology available to him, Adhvaryu will adopt it without hesitation, he said, as long as it helps his business in a tangible way. “I always want to be on the cutting-edge of every aspect of the new technology in this industry,” Adhvaryu said. “We were one of the first shops in the area to spray waterborne and a first adapter with our management systems. We’re ramping up to work on the newer aluminum cars and our people are certified to work on the new Ford F150s. If we can use something to do a better job, we will pursue it, but only if it makes sense for us.” During the summer of 2010, Adhvaryu received a phone call from Allstate offering to set his shop up on a DRP, he said. “They said we’ve been watching you and we’re seeing some good things, so we’d like to set you up on the program. I was so excited and I called my brother to share the news. Business was good and we had just experienced our best year ever. When Allstate explained the DRP, we thought, this is too good to be true. Well, unfortunately—it was.” After signing on the dotted line with Allstate, reality started to seep in and the relationship quickly soured. “It became evident that I had to do all the work up front and invest all the money in parts upfront,” Adhvaryu said. “When we started the DRP we had to put up nearly $50,000 for parts and labor because they were bringing us a lot of cars. That’s the way DRPs work and that was irritating, but not a real deal breaker at that point. But, when Allstate started making more demands, I realized this isn’t a true partnership. I began to feel like an employee instead of a partner.” Adhvaryu had to change his business model to adhere to the DRP. “We were able to survive the financial impact, but it was starting to put a strain on the business. After that initial deluge, Allstate wasn’t sending us enough cars to justify the investment and then they kept re-inspecting our estimates and wrestling with us on every one. My policy has always been to avoid debt at any cost, but this DRP had me in the hole almost right from the beginning. After a
50 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
while, we started asking ourselves, is this really a good deal for us?” Quality Assured’s lone DRP completely fell apart when Allstate asked Adhvaryu to compromise the quality of one particular repair.
Quality Assured Collision Center in Long Beach, CA is DRP-free and flourishing
“The final straw was when they wanted us to fix a car that I didn’t feel was safe. It’s one thing to save money, but it’s another thing to make an unsafe repair in order to save a few bucks. I value my customers more than any amount of money in the world and I want to be able to sleep at night.” Finally, Adhvaryu convinced the insurance adjustor to come out and look at the car. It was determined that it shouldn’t be repaired, and therefore was totaled. The price was too high and the risks too numerous, so Adhvaryu pulled the cord on the DRP. “I told Allstate that I don’t want to fix a car and provide a lifetime warranty on the work if the repair is not up to our standards. What happens if the customer complains for whatever reason? What can I tell them? So, I told Allstate thank you for the opportunity but take me off the program right now.” Amazingly, the world did not stop See DRP-Free, Page 54
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 51
K & M Collision Sends Second Version of ‘Open Letter’ Video to NC Attorney General K & M Collision, a NC shop that is known for strong advocacy (see previous story this page and search autobodynews.com), posted a consumer-
ferral program or preferred list, we won’t warranty or guarantee the repair’. “This statement isn’t just misleading, It’s completely false. The insurance company does not, has not and will not warranty the repair even if your car is repaired at their direct repair facility. “Let’s say you do follow their recommendation, and take your car to one of their shops. If there are problems with that repair, the shop itMeredith Bradshaw narrates the second version of the self is liable, in exactly the open letter video. Previous videos are viewable online same way that K&M is liable oriented video on YouTube that it pro- for any of the repairs that we perform. duced in support of Louisiana Attor“The shop you choose, whether it ney General Buddy Caldwell’s action be an insurance preferred shop or an against State Farm. independent shop, is solely responsible “These kinds of unfair trade pracfor the warranty on the repairs to your tices aren’t just a problem in Louisiana,” vehicle. owner Meredith Bradshaw states in “So why do insurance companies the video. “They pose a threat to conmake this misleading statement to their sumers here in North Carolina and policyholders? It’s just another scare throughout the United States.” tactic. The text of a related video states “In reality, the insurance com“After an accident, one of the most pany itself doesn’t provide any guarcommon things you’ll hear from an antee. In fact, with the pressure they insurance company is ‘if you take place on their shops to turn out high your car to a shop that’s not on our re- volume, they create an environment
that’s more likely to result in bad repairs. “But they don’t have to worry about that. Because ultimately, the shop is responsible. “At K&M Collision we don’t participate in referral networks. Our only priority is to serve our customers by fixing their car the right way. You can rest assured that any repair that comes through our doors is guaranteed for life.” A previous version of the video was suspended from YouTube because of a copyright complaint from the Insurance Institute for Highway Safety (IIHS) due to its use of one of the organization’s crash test clips. K & M Vice President of Operations Michael Bradshaw alleges State Farm persuaded IIHS to file the complaint. “The basis of their complaint was that we used a few-second clip of a crash test to give our viewers a sense of the way a ‘crash management system’ works,” says Bradshaw. “We found this clip on YouTube, created by what we thought was an independent, nonprofit organization dedicated to consumer safety. We’re also certain that our brief, educational use of this clip constitutes ‘Fair Use.’ However,
we didn’t notice that this ‘independent, nonprofit organization’ was founded by State Farm.” Bradshaw says K & M has countered the copyright claim through YouTube and is awaiting word on the outcome. He says the video has gotten the attention of the North Carolina Attorney General’s office, and they have even taken an interest in the IIHS’s effort to remove K & M’s video from YouTube. “We will be documenting State Farm’s efforts to get our content removed from the Internet and will continue to fight back and notify the industry press about their actions,” Bradshaw says. “People should know that the IIHS, supposedly a nonprofit organization dedicated to highway safety, is nothing more than a puppet of State Farm, an organization responsible for putting unsafe cars on the road.” The new version of the video can be viewed directly at http://kandmcollision.com/open-letter/?utm _source=YouTube&utm_medium=Vi deo&utm_campaign=2ndVersionof AGLetter A link can also be viewed at: www.autobodynews.com.
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NY Shop Owner’s Forgotten Lottery Ticket is a Nearly-Lost $2.9 Million Winner by Victoria Antonelli, Online Editor
A change in Jerry Ritieni’s routine on July 19 almost cost him close to $3 million. When the Extreme Auto Body owner stopped at Cumberland Farms in Syosset, NY, to buy $10 in Quick Pic lottery tickets, he placed the tickets in his center console, instead of their usual spot—clipped to his visor mirror. There they sat until Ritieni found the tickets a month and a half later while searching for his Vermont house keys. After entering the numbers online at his shop, he became a millionaire in the blink of an eye. “I’m a joking-around kind of guy, so
qua local. “Kenny [an employee] said, ‘I think he’s serious, he hasn’t left the shop
during business hours in 22 years, and he’s been gone for almost an hour!’” Ritieni, 48, says that he will continue to work. “The money is life-easing, not life-changing,” Ritieni explains. “I never had a retirement plan, which was always a concern of mine, so it’s nice to have that taken care of.” Ritieni’s 20-year-old daughter and 17-year-old son are his priorities, specifically their college tuition. He also bought the building next door to his shop for expansion purposes. “I drove into a Maserati dealership next door to the lottery office while my son was in the car, just to mess with him,” said Ritieni. Ritieni said he’s
happy with the way the community responded to his win. “I live by my father’s words: Be honest, be fair, and do the right thing,” said Ritieni. “A lot of the locals said I won because of good karma and I believe that to be true.” Ritieni said he is not affiliated with any DRPs, and that the customer is the priority. “Everybody wants to make a living, but money is not my driving factor,” said Ritieni. “I don’t believe in taking advantage of people. At my shop, everybody gets what they paid for, and everybody gets treated the same.” After a cash buyout and tax deductions, he collected $1.3 million.
“He thought it was one of his friends at first,” said Joe Sokolowski, the owner of the shop. Sokolowski said when the car started Harlack opened the door to stop the thief. A surveillance video, aired on WTAE Pittsburgh Action News 4, showed Harlack being dragged away by the car before hitting the side of a tow truck and falling to the ground, with a broken leg. The thief sped away, hitting eight cars and totaling the Subaru before running away.
Sokolowski said he wished that Harlack wouldn’t have tried to stop the thief. “I just hope he’s going to be okay,” said Sokolowski, who has worked with Harlack since the shop first opened and considers his colleague a close friend. Ultimate Auto Body specializes in complete collision repair and works on the police cars for the City of Pittsburgh Bureau of Police and the Mount Oliver Police Department. The auto body shop is continuing operations during this difficult time; however,
Sokolowski said it is frustrating as a small business to have Harlack in the hospital and the thief at large. Autobody News contacted the police department for an update and learned no arrests have been made. Ultimate Auto Body Shop is offering a $500 reward to identify the thief.
my son, friends and employees didn’t believe that I had won the lotto, until I sped out of the parking lot,” said the Massape-
Extreme Auto Body owner Jerry Ritieni in front of his NY shop with the winning ticket (Photo courtesty of VICTORALCORN.COM)
Theft and Serious Injury at PA Auto Body Shop by Stacey Phillips, Assistant Editor
An attempted auto theft at a collision repair shop in Pittsburgh, PA on August 30 left the shop manager seriously injured in the hospital and nine cars damaged. Pittsburgh police are investigating the incident that took place at Ultimate Auto Body Shop, in business for more than 30 years. Mike Harlack, the manager, noticed someone getting into a new Subaru that had just been dropped off that morning and was ready to be put on the rack.
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 53
New CO Program Asks Shops to Report Potential Hit-and-Runs
A new Denver Police Department (DPD) program asks shops to keep an eye on customers' damaged cars, and report potential hit-and-run suspects to officals. The purpose of the program, called Denver Auto Body Alert, is to “establish a two-way communication between police and local auto body businesses,” DPD said. Body shop owners who opt in will receive information about suspect vehicles believed to have been involved in hit-and-run accidents. If a customer brings a similar car in for repairs with matching damage, shops are asked to contact police before doing any work that could alter potential evidence. From kdvr.com
Car Submerged an Estimated 18 Years Among 4 Fished from Reservoir in Utah
Four vehicles were fished out of Pineview Reservoir, UT, on Sept. 13, 2014 and a fifth was located, but is still under water. Authorities in Weber County are investigating the situation. Search and Rescue deputies were testing new sonar equipment when they stumbled across the unique find. According to a press release from the Weber County Sheriff’s Office, the vehicles appear to have been dumped off the embankment of the pull-outs on the reservoir’s south side. The vehicles were found about 30 to 50 feet out from the shore in about 30 to 40 feet of water. Search and Rescue dive teams worked with a towing crew to hoist the vehicles out of the water. The fifth vehicle is located closer to the dam, and officials said that vehicle will be removed later due to the length of time it takes to extract the vehicles, according to Mark Green and Robert Boyd of Fox 13 Salt Lake City. They say the first vehicle was a Dodge Raider with a license plate that expired in 1996. The second vehicle was a Suzuki Samurai with a registration that expired in 1999. The third vehicle was a Ford pickup truck that expired in 1999. The fourth vehicle was a Toyota 4Runner that was reported to be stolen out of Ogden City on August 30 of this year. The press release stated that no bodies were found and it is not believed any of the cars were occupied when they were submerged. Officials are working to determine if the other three vehicles were reported stolen, but they figure there is a good chance that is the case, according to Fox 13.
New Caliber Shop Open in CA
The Encinitas Chamber of Commerce and City Council members Lisa Shaffer and Tony Kranz welcomed Texasbased Caliber Collision Centers to town during a ribbon-cutting ceremony held Sept. 10 in Encinitas, CA. For its Encinitas location, Caliber Collision Centers chose to occupy an existing auto body repair shop at 204 North Coast Highway 101. Now there are more than a dozen locations in the San Diego region, 88 in CA and 188 in the U.S, according to a Caliber news release. “We are committed to adding centers across every Caliber market to provide industry-leading customer convenience and CSI metrics,” said CEO Steve Grimshaw.
NV Mom Sues Over Device That Disables Car
A Las Vegas, NV mother says her car was disabled electronically on more than one occasion, even though her payments were never more than 30 days late. During one of these instances, she was bringing her child to the doctor, according to I-Team Reporter Glen Meek. Nevada law says a buyer isn’t in default until the payments are 30 days past due. Now, legal aid lawyers are suing the finance company, alleging the company has been violating the grace period. Mary Gibbs-Bolender bought a Chrysler Town and Country minivan and claims she did not learn until after she made her down payment that a PassTime GPS unit was installed. The class action lawsuit was filed on behalf of Gibbs-Bolender and others in a similar situation by the lawyers for Legal Aid Center of Southern Nevada and the Kemp-Jones-Coulthard Law Firm. The suit alleges that the finance company was violating Nevada law by repossessing the car and electronically denying Gibbs-Bolender the use of her vehicle.
Pittsburgh Glass Works Opens Distribution Center in NV
Pittsburgh Glass Works (PGW) opened a distribution center in Las Vegas, NV. It is located at 4701 Cameron Street Suite K, Las Vegas, NV 89103. “As a leader in the automotive replacement glass industry, PGW recognized the need for this additional location to fill gaps in our service areas to our customers. We are excited and look forward to working with our existing customer base as well as new customers in the Vegas area,” according to officials. PGW held a grand opening Oct. 2, 2014 from 11 a.m. to 2 p.m.
54 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
Continued from Page 50
DRP-Free
when he quit his DRP, Adhvaryu said. “We’re actually healthier now than before, because we’re not fixing as many cars but we’re making more per vehicle for the ones that we’re getting, without any DRPs. Our net is more and we can say that we’re not sacrificing the quality of either the repairs or the parts. “DRPs are a one-sided partnership between an insurance carrier and the shop, and it is definitely not a winwin situation for both sides,” Adhvaryu said. “In reality the only true partner in our industry is the relationship between the shop and its customers and it’s the only true partnership we care about. Around here DRP stands for Decreased Repair Profits. “My point is that the insurance companies should do what they know best which is to insure people and let the shops decide what's best when it comes to repairing cars,” he said. “In many industries in this country, we let the consumer decide where they can take their business. There is a lot of information out there for consumers to do research and find really good shops that will
work for them and not the insurance company. If you balance the positives and negatives in a DRP environment, only the insurance company gains while the shops and the customers lose.” Adhvaryu said that while his DRP with Allstate didn’t work out, he would be open to considering DRPs again in the future. “We work with all insurance companies and I’d be open to listening to their programs – if they make sense for my business. If they will allow me to do it our way without going into debt and cutting corners on repairs, I have no problem working with them in a DRP.” In the interim, Adhvaryu likes to call his shop “an independent that is independent from the insurance companies.” “We’re trying to get cars in here, of course, because if we’re not growing we’re dying, but we want to do it the right way. I know that the quickest way to get business is to hook up with some insurance companies, but we don’t need them. We’re DRP-free and happy about it, because at the end of the day we have complete control of every repair, including the types of parts we want to use and the way we want to fix them.”
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 55
Former Texas Prosecutor Asks State to Pardon in Fatal GM Crash, Accident Already Listed by GM
A former Texas prosecutor has asked the state to pardon a woman who pleaded guilty in a 2004 car crash that killed her fiance, saying she now believes the accident was caused by a faulty General Motors ignition switch. Candice Anderson was driving a 2004 Saturn Ion in November 2004 when the car suddenly veered off a road and ran into a tree in Van Zandt County, southeast of Dallas. Her fiance, Gene Mikale Erickson, who was 25, was killed. Anderson, then 21, was severely hurt. Because there were no skid marks, authorities believed Anderson was at fault and charged her with negligent homicide. Anderson pleaded guilty and was sentenced to five years of probation and 260 hours of community service. GM has said the faulty switches – which have resulted in 17.1 million vehicles being recalled – have caused 13 deaths. GM spokesman Jim Cain said Wednesday the automaker is not “confirming the identity of any of the accident victims out of respect for their privacy.” But Anderson’s attorney, Robert Hilliard, said the National Highway Traffic Safety Administration in May confirmed for Erickson’s mother that
the crash was caused by a bad switch. In an email to Rhonda Erickson, Kevin Vincent, chief counsel for the National Highway Traffic Safety Administration, wrote that although his agency “does not have direct information from GM about individual identities, we understand that GM counts Mr. Erickson’s death in its list of thirteen deaths.” In a letter written this week to the Texas Board of Pardons and Paroles, Leslie Poynter Dixon, a former Van Zandt County district attorney, said she would have dismissed the case against Anderson if she had known about the crash’s true cause. “It is my opinion that no action or omission of Ms. Anderson was the cause of the accident that led to her criminal charges. Had I known at the time that GM knew of these issues and has since admitted to such, I do not believe the grand jury would have indicted her,” Dixon wrote. Dixon, now in private practice, did not immediately return a phone call on Wednesday. “I feel it is important that, at this point, we come together to do whatever we can to alleviate any further damage and pain that this horrific tragedy caused her,” she said in the letter.
OEConnection Ships Updated CollisionLink Application
OEConnection LLC has launched a new version of the CollisionLink Shop application. It provides access to OEM-quality part illustrations through catalog integration, ensuring all the correct parts needed for repair are ordered. Shops will also have a new and improved workflow and Web-based user interface, which helps streamline the parts ordering process and keep shops organized. “We spent a great deal of time with collision shops and dealers learning about and understanding the process of buying and selling parts, and that has helped us identify new value-added features that are a part of our next-generation CollisionLink Shop application,” said Bill Lopez, director of collision and OEM program management for OEConnection. “Our primary focus is to make sure we continue to provide a parts procurement solution that is easy to use while meeting the needs of our users, both body shops and automotive franchise dealers. Features we’ve included in new CollisionLink Shop focus on making body shops more productive and efficient when it comes to ordering parts.” In addition, the new CollisionLink Shop will feature the ability to locate, source and purchase recycled parts by providing an integrated
workflow with Car-Part Pro. “Car-Part is seen as a market leader in recycled parts locating and sourcing,” said Lopez. “We feel by enhancing CollisionLink to include recycled parts as part of our workflow and feature set, we are delivering a solution that builds upon the value it already delivers to current body shop users of CollisionLink.” The CollisionLink Shop allmakes, all-models parts ordering and fulfillment solution is currently used by thousands of collision shops across North America on a daily basis to source, price and purchase OE collision parts from automotive dealerships. Sixteen automakers in the U.S. and Canada utilize CollisionLink to administer their parts marketing programs, enabling dealers to more effectively compete with non-OEM parts suppliers for the sale of OE parts. Through CollisionLink, collision repair facilities are able to more effectively manage repair costs while improving repair quality, cycle time and customer satisfaction. CollisionLink Shop is offered to collision repair facilities at no cost. OEConnection will begin upgrading current shops to the new version of CollisionLink Shop this fall. See http://marketing.oeconnection.com/c lshopcomingsoon.
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NC Body Shop Owner and 12-Year Old Help Authorities Solve Hit and Run The North Carolina State Highway Patrol honored three citizens on a recent afternoon after they went the extra mile to help catch the killer of a woman that lost her life in a hit-andrun accident on May 21, according to reports by Annie Blackburn writing for the Lincoln Times News. First Sgt. Daryl Conley and Lt. Doug Amos were on hand to present the Second Mile award to 12-year-old Randy Guardado, William “Bill” Boone and Gary Gaston, for going out of their way as citizens to help law enforcement in solving the hit-and-run death of Sherry Kittle. The antennae from the vehicle of interest was found in the grass just beyond the scene of the investigation on U.S. 321 near Summerow Road where Kittle was hit, said Sgt. Kelly Stewart. Travis Kirk Fitzpatrick, 33, was charged with felony hit-and-run after officials say he struck and killed Sherry Kittle on Highway 321 near Lincolnton. Fitzpatrick eventually turned himself in. Troopers worked with Skeet’s Auto Body Repair & Wrecker Service in Conover, where William “Bill” Boone was able to determine that the antennae, together with pieces of a broken right front headlight, were from one of three Chevy models—a Suburban, Tahoe or Silver-
ado—from between 2001 and 2006. After information from a resulting Crime Stoppers tip, troopers went to a residence on Little Mountain Road in Sherrills Ford, where they found a gray Silverado truck with damage to the windshield, grill, headlight housing area and passenger side
Members of the Kittle family, at left, pose with individuals who helped the Highway Patrol investigate the hit-and-run death of Sherry Kittle: telecommunications shift supervisor Gary Gaston, Randy Guardado and Bill Boone of Skeet’s Auto Body Repair
mirror, as well as a missing antennae. The truck was in a secluded wooded area, parked next to a building down a dirt drive from the home, officials said, noting it was not visible from the road. Fitzpatrick was not at home. But his mother, who also lives at the residence, gave investigators his cell-
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phone number, they said. He was charged with felony hit and run and placed under a $25,000 secured bond. Kittle was walking along Maiden Highway/Business 321 when she was struck by a vehicle that left the scene. Kittle was later pronounced dead at CMCLincoln. According to Sgt. Kelly Stewart, the supervising investigator on the scene, were it not for the actions of Guardado, Boone and Gaston, Highway Patrol might still be investigating the crime. Sgt. Stewart credited the chain of events beginning with Guardado and his respect for human life. The 12-year-old was so devastated by Kittle’s death that he scoured the debris field in his yard until he found an antenna that helped Highway Patrol narrow down the search for the suspect vehicle to a Chevy. It was Gary Gaston that went a step further. Though employed by the Highway Patrol as a telecommunications manager, Gaston used his knowledge of the area and his own time to further narrow the search to vehicles of the particular make and model that were owned by people who lived around the scene of the hit and run. After knocking on numerous doors, Highway Patrol was given the final tip they needed to identify the suspect which led to his arrest.
21st Century Insurance Files Suit Against Two Jersey Physicians for Alleged Auto Insurance Fraud
21st Century Insurance, a group of insurers which are a part of the Farmers Insurance Group of Companies, has filed a lawsuit in the Superior Court of New Jersey against two medical doctors and their professional organizations alleging that they knowingly submitted false, fraudulent and misleading billing, treatment and testing records to obtain payment for Electromyography/Nerve Conduction Velocity (EMG/NCV) studies that it is alleged were not medically valid for the reasonable and necessary treatment of patients. The complaint also alleges that the EMG/NCV tests were performed inaccurately and interpreted in such a manner as to misrepresent the clinical condition and medical status of patients. The detailed civil complaint seeks restitution and reimbursement of all monies paid to defendants as well as compensatory and treble damages under the New Jersey Insurance Fraud Prevention Act (N.J.S.A. 17:33A-1, et seq.) including investigation costs, costs of suit, interest and attorney’s fees. 21st Century Insurance also seeks an order declaring that defendants are not entitled to the payment of bills for EMG/NCV studies submitted by defendants for claims under automobile insurance policies issued by plaintiffs.
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 57
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Midwest Associations
AASP-MN President Jerald Stiele has Lifetime of Repair Experience with Ed Attanasio
Many body shop owners are content with making a decent profit, while others are willing to work toward bettering the collision industry in their state. Jerald Stiele, president of the AASP-MN and the owner of Hopkins Auto Body in Hopkins, MN, fits into the latter category. Stiele, 40, is a third-generation body shop owner, who takes pride in offering full and mechanical collision repair. Hopkins Auto Body was established in 1963 by Stiele’s grandfather, Floyd Stiele. Today, Stiele co-owns and manages the shop with his uncle, Dale Stiele. “When I first came onboard fulltime, I was working as an estimator,” Stiele said. “Prior to that I worked on and off through the summers in high school and in college, cleaning the shop floor and masking cars and whatever other entry level task that needed to be done.” Initially, Stiele wasn’t expecting his path to lead to collision repair. “After graduating from North Dakota State University with a degree in Economics, I did not go into the business, because at that time, the shop consisted of a six-car garage and there wasn’t room for me,” he said. “Today, we’re working out of a 26,000 squarefoot shop that fixes approximately 150 vehicles every month and employs 16 people. I run the front office and Dale manages the production/shop floor and we work very well together. But, getting into this industry wasn’t a slam dunk at the beginning.” Stiele is proud of what AASP-MN has achieved. “In Minnesota, we have a really strong association and we’re proud of the fact,” he said. “Whenever I travel to out-of-state conferences, people from other state organizations tell us that we’re a really well-respected group. We have a strong association that starts with Executive Director Judell Anderson and a board that works really well together. Judell’s assistant Jody Pillsbury runs the office really well and Tom Kluver is having great success as our new recruiter. We’ve got a great team here and that’s why we’ve been so successful.” AASP-MN’s membership consists of 697 shops, both mechanical and collision. We asked Stiele, “what
are some of your major concerns with the future of the organization?” “From a body shop’s perspective, we want to retain the control of our businesses and our procedures,” he said. “The way we manage and order our parts really concerns us and I know it’s the same thing across the whole country. DRPs are a reality in this industry and some of them can be great partnerships, but we don’t want to compromise our work as a result. AASPMN’s main concern is that we don’t want to lose control when it comes to the parts and part venders that we use on our repairs. We’re being asked to handle more and more of the administrative work as it gets handed off to us by the insurance companies, so we constantly have to be adjusting to that. It now takes us additional front office staff to fix these vehicles, which of course means that we’re making less profit on these cars. Yes, we’re still profitable with our DRPs, but we’re starting to see that our DRPS are less profitable and we’re obviously concerned about that.” Stiele believes that in some cases, aftermarket parts are suitable. “New, OEM is not the only way to go in every situation, in my opinion,” he said. “There are situations that call for the use of aftermarket or LKQ parts. As shop owners, we know when it’s right to use them. The point is—we want to make the determination and we don’t want to be forced or coerced into making those decisions, because they can impact the quality of our work and cycle time. “Minnesota is one of the few states where we have aftermarket parts legislation on the books,” Stiele said. “If the owner does not want aftermarket parts they can specify that. So it’s a matter of who talked to the customer first. A lot of times it’s the insurance company that will talk to them and say ‘Hey--there are going to be aftermarket parts incorporated into the repair of your car.’ They don’t ask, they tell them. It will fix it back to pre-accident condition with a lifetime guarantee and you know so it’s up to them to say yes sometimes that’s the case. In some cases, the aftermarket parts don’t fit as well, but in other cases, they work just fine.” “Many shops are torn about the whole topic of steering, but in a perfect
58 OCTOBER 2014 AUTOBODY NEWS | www.autobodynews.com
world it would be better to not exist altogether,” Stiele said. “If an insurance company is steering business away from another shop, that’s bad obviously. But, if they’re recommending one shop over another, that’s called a DRP. Collectively at the AASP-MN, we agree that from the perspective of the entire industry, we’re better off without steering. We would rather compete with each other fairly and gain our business through marketing and doing a good job, by focusing on things like quality and customer service. We have anti-steering laws in Minnesota, which may lead to less steering--at least that’s the intention.” The majority of shop owners have a love/hate relationship with the DRP concept, and Stiele is no exception. “The DRP relationships are the biggest change in this industry, no doubt. Many body shops rely exclusively on their DRPs. Our DRPs make up is around 40% of our total business.
We have three main relationships with larger insurance companies, but handle a lot of customers and insurance companies outside of the DRP arrangement.” It’s hard to say what the future holds, but Stiele is excited to be working in today’s collision industry in Minnesota. “We really enjoy using technology to do a better job, whether we’re using tablets or smart phones to capture data from vehicles and writing the estimates. We’re working on being aluminum-ready and spending the money and time needed to get onboard in that regard. It’s a significant investment as all of the necessary equipment isn’t cheap. It’s important for us to be ready as the manufacturers start increasing the use different types of metals and materials. I can’t predict how many or when the new F-150s will start showing up, but when they do I want our shop to be trained and ready.”
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 59
Education Foundation Announces Scholarship Winners Including Nation-Wide Students The Collision Repair Education Foundation has announced the winners of several scholarships it administers. The Atlanta I-CAR Volunteer Committee awarded a $5,000 student scholarship to Godofredo Pacheco of Maxwell High School of Technology in Lawrenceville, GA, through the Collision Repair Education Foundation this spring. This scholarship will assist Pacheco with education costs to continue his technical education study of collision repair. Funding for this scholarship was made possible through the committee hosting annual golf and car show fundraiser events. I-CAR Georgia State Chairman and Atlanta Committee Chairman Gerry Poirier stated “The members of the Atlanta I-CAR Committee have continued to focus on supporting new technicians entering the collision field. This scholarship will be the third awarded since 2012 that will help replenish our dwindling technician base. The fundraising efforts are a critical part of what our committee members and supporting businesses have done to make this scholarship a reality. Many thanks go out to everyone who made this possible.” The I-CAR Northwest Region has awarded two $1,000 collision student scholarships through the Colli-
sion Repair Education Foundation. Collision students from Washington were eligible to receive these scholarships. Funding for these scholarships was made possible through the local ICAR volunteer committee hosting fundraising events. The 2014 I-CAR Northeast Region collision student scholarship winners include: Anatoliy Fesenko – Green River Community College (Auburn, WA.) Michaelangelo Vega-Ortiz – Bellingham Technical College (Bellingham, WA.) PPG Industries Foundation awarded four collision students with $5,000 scholarships through the Collision Repair Education Foundation. These scholarships are awarded to full-time students in a post-secondary school with a focus or degree in collision repair and who have demonstrated interest and involvement in the collision repair community through extracurricular activities. The funds will be used to assist students with educational expenses such as tuition, books, tools, and equipment. The student winners of the 2014 PPG Foundation Scholarships include: Elizabeth Mahsem (Madison College, Madison, Wis.) Ian Zapata (College of Lake County,
Grayslake, IL.) Rita Gonzales (Texas State Technical College, Harlingen, TX) Seth Cushing (NCK Tech, Beloit, KS.) Additional funds were raised during PPG’s recent MVP Business Solutions Conference in Phoenix, Ariz., and these were used to create the PPG MVP Industry Student Scholarship. The selected collision student winner of this $2,100 scholarship is Ashley Thomas from Washtenaw Community College, Ann Arbor, MI. “PPG strongly believes in supporting the future professionals of the industry and assisting them with any type of educational barriers they might encounter,” said Domenic Brusco, PPG Automotive Refinish, senior manager, industry relations. “PPG has supported the Collision Repair Education Foundation for over 20 years and we look forward to continuing our support and growing this relationship in the future.” Industry members interested in working together with the Collision Repair Education Foundation in supporting secondary and post-secondary collision repair students, instructors, and their school programs should contact Director of Development Brandon Eckenrode at 847-463-5244.
Counterfeit Engine Control Devices Found in Florida
A Florida man has been charged with one count of trafficking in counterfeit engine control devices— an offence that carries a maximum penalty of 10 years in federal prison. The goods at issue are counterfeit versions of goods produced and marketed by Hondata for use in modified Honda and Acura vehicles. In a plea agreement filed with a U.S. District Court, the defendant admitted that, beginning in 2009, he arranged for Hondata’s K-Pro and S300 devices to be reverse-engineered. The counterfeit devices bore Hondata’s trademarked name, as well as counterfeit serial numbers. The defendant also admitted creating counterfeit packaging, labels, instructions and compact discs for the devices. The investigation in this matter was conducted by the Federal Bureau of Investigation. For more information on how to protect your intellectual property, go to www.sema.org/ipr.
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Boyd Group Acquires Seven Champs Collision Centers in Southeast Louisiana The Boyd Group Inc. has signed a definitive agreement and concurrently closed the acquisition of Champ’s Holding Company, LLC (“Champ’s”) the company announced in a news release on Sept. 12. Champ’s is a premier full-service auto collision repair service provider in southeast Louisiana, owning and operating seven collision repair centers. Champs locations are in New Orleans, 4047 South Carrollton Ave.; Elmwood, 200 Edwards Ave, Harahan, LA; Kenner, 1601 22nd Street; Westbank, 3621 Lapalco Blvd., Harvey, LA; Northshore, 2501 Florida Street, Mandeville, LA; Hammond, 500 South Morrison Blvd.; and Baton Rouge, 6137 Siegen Lane. Champ’s has grown significantly since its inception in 1978 and generated sales of approximately $37 million for the trailing twelve months ended June 2014. This acquisition increases the number of Boyd collision repair locations to 313 across 16 states and five provinces. “We are very pleased to enter the Louisiana market which will expand
our reach to new customers, increase our geographical footprint for our insurance industry partners and also provide us with another new market from which to execute our single location growth strategy,” said Brock Bulbuck, President and Chief Executive Officer of the Boyd Group. “With this acquisition we strengthen our position as the largest multi-shop operator in North America in terms of number of locations, and demonstrate our ability to add attractive multi-shop operations in line with our growth strategy.” “Our team is proud of the business we have built over the last 36 years,” added Champ’s President Danny Kingston. “Champ’s decades of growth and success in the collision business are a direct result of the efforts of our knowledgeable, friendly, and professional team. We are excited to build on our accomplishments as part of the Boyd team.” The total purchase price consideration of approximately $35.0 million. It is within the range of other recent multi-location acquisitions completed by Boyd.
AASP-PA Offers Two New Membership Levels
Since the Alliance of Automotive Service Providers of Pennsylvania (AASP-PA) formed in 1955, it has been a member association for shop owners in the state, but now, the association has decided to offer two new membership levels. For the first time, AASP-PA will offer free memberships to students studying in the automotive field in a PA school, and the association will also offer a low-cost membership to industry professionals, such as technicians, towers and service writers, among others. AASP-PA’s goal in offering these two new levels of membership is to continue to further their initiative of educating all automotive service providers throughout the state of PA, and the Student Membership level in particular will aid in their attempts to engage the younger generation and show them the value of education, leadership and involvement in industry associations. The association’s Student Membership level is available to students studying in the automotive field in a PA high school, technical school or at the university level. The free Student Membership includes an electronic version of “Pennsylvania Automotive
& Insider News,” the association’s bimonthly magazine, and invitations to select chapter meetings and training events as well as free enrollment in ASE’s Student Certification Program (a $30 value). To sign up, students can visit www.aasp-pa.org/memberresource/student-membership.aspx. The Technician Membership is available to anyone working in the automotive industry in PA, such as technicians, tower and service managers. Technician Members will receive an electronic copy of “Pennsylvania Automotive & Insider News” bi-monthly, invitations to select chapter meeting and training events, reimbursement for the cost of up to three ASE Certifications, and potentially, a discount on personal electric bills. The cost of a Technician Membership depends on whether the individual’s employer shop is a member of AASP-PA; the fee is $50 per year for employees of member shops, or the Technician Membership costs $100 annually if the employer is not an association member. For more information or to sign up, visit www.aasp-pa.org/memberresource/technician-member-ship .aspx.
www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 61
Herkules to Host NASCAR Driver Brendan Gaughan During SEMA Show Herkules Equipment Corporation will be hosting NASCAR Driver Brendan Gaughan at the 2014 SEMA Show, being held in Las Vegas, Nevada November 4-7. Gaughan will be
NASCAR Driver Brendan Gaughan will be signing autographs on Nov. 4 & 5 at the Herkules booth during the SEMA Show in Las Vegas, NV
signing autographs and chatting with fans on Tuesday and Wednesday, November 4 and 5, from 1 to 3 pm, in
the Herkules booth #11139. Brendan Gaughan has been a NASCAR Driver since 1997 with his debut in the Camping World Truck Series and winning this race in 2000. A Georgetown University graduate and family man, he holds 17 career wins and 83 top-five finishes throughout all of the NASCAR Series races. His latest win was in June 2014 at the NASCAR Nationwide Series Gardner Denver 200 race. His website is: www.brendangaughan.com. Herkules Equipment Corporation, established in 1984, is a leading manufacturer for the Automotive Paint & Body Repair industry, having designed, manufactured and patented the first Paint Gun Washer. They have been manufacturing quality vehicle lifts and scissor lift tables for close to 30 years, providing many industries with ergonomic solutions for countless applications. Herkules also supplies Sparkle Clean, Air Jacks, Carts & Stands, and Crushing Equipment. For more product information, please contact Herkules at 800-4444351, or at info@herkules.us or visit their website at: www.herkules.us.
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NC Auto Injury Attorney Urges Drivers to Use the New NHTSA Online Recall Check
The North Carolina auto accident law firm of Riddle & Brantley LLP, is urging consumers to use the National Highway Traffic Safety Administration’s (NHTSA) new Online Recall Check feature on their website. Drivers can now use this tool to search for recalls which may affect their particular vehicle by entering their car’s Vehicle Identification Number (VIN). “As we saw with General Motors’ defective ignition switches, it is extremely important for consumers to stay up-to-date on recalls which may affect the safety of their vehicles,” said attorney Gene Riddle, partner at Riddle & Brantley. “Our firm is urging drivers to use the NHTSA’s tools to keep their families safe.” According to an August 20, 2014, report from the Associated Press, U.S. automakers have recalled over 40 million vehicles this year alone. Over 29 million of these vehicles were the results of extensive recalls from General Motors after faulty ignition switches blamed for causing multiple accidents leading to over a dozen fatalities and many more injuries.
Before the creation of the tool, drivers had to search multiple sources to make sure that their vehicles had not been recalled. According to the NHTSA’s VIN checker website, this new tool lists all ongoing safety recalls, any recalls which have been conducted in the past 15 years, and all recalls by major car and motorcycle manufacturers. The checker does not cover non-safety related recalls, recalls for international vehicles or ultra-luxury cars, or vehicles which are over 15 years old. According to an August 14, 2014 press release from the NHTSA, consumers were previously limited to searching using a car’s make and model year. Now, the addition of VIN searches will allow consumers to find alerts specific to his or her particular vehicle. In addition to the creation of this checking tool, the NHTSA is also mandating that auto manufacturers maintain a list of current recalls which affect their models on their websites. Automakers must update this information at least once a week. To use the NHTSA’s recall checker, consumers should visit: https://vinrcl.safercar.gov/vin.
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MDL Opens
order at that time as he anticipated the insurers would not make it necessary to do so... but he would consider it if indeed their behavior warranted it. This was pivotal as it placed the concern in the judge’s minds as well as became part of the record. Repairers will be documenting any such instances and share them with their legal counsel.
The five attorneys representing the repairers were Mississippi attorneys John Eaves Sr., John Eaves Jr., Allison Fry, Hal Wilkins and Florida’s own Brent Geohagan, who, as most know, has represented Ray Gunder in his ongoing legal quests. Because this was a pretrial hearing, the judges were cordial yet to the point regarding their conveying the court’s expectations for the attorneys. The judges made it clear to all that frivolous filings and unnecessary delays and such would not be tolerated, and
due to the sheer volume of the issues and evidence that was to be presented, that the court would be quick to discourage and stop such behavior. Based upon the limited questions posed by the insurer attorneys, the judge’s message had been received clearly and duly noted. Upon conclusion, as the court rose to its feet and the judges left the bench, while it was quiet and subdued, there was a sense of relief along with excited expectations by the repairers who were there. They knew that this
was the beginning of long overdue changes in the automotive collision repair and casualty insurance industries normal behavior and practices. It wasn’t a day of reckoning… but I firmly believe it is the first day of its beginning!
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www.autobodynews.com | OCTOBER 2014 AUTOBODY NEWS 63
Crowd Favorite the “Telephone Doctor” Returns for SEMA Education Days Nancy Friedman was recently featured in a column by Ed Attanasio, so we were pleased to see that she’ll be back at the SEMA Show this year with her session, “Have You Asked Your Customer to Marry You? (Are You Really Engaged?).” The session will be offered twice during SEMA Education Days. Friedman spoke with SEMA about what attendees can expect from her sessions. SEMA: What is a Telephone Doctor? Nancy Friedman: I got that name from an editor in Davenport, Iowa, who said, “You’re the doctor. You’ve got the prescription for everything.” We know more business is lost to poor customer service and poor treatment than to poor
products, and it’s usually done on the phone. There are people in businesses whose job is to answer the phone and have more of a service mentality than a sales mentality, and that’s so wrong. SEMA: What is the right thing for a business to do after the phone rings? Friedman: There are many lead generators around the country who can tell you how to make the phone ring. That’s great, but what happens when it does ring? The phone can ring, but turning it into a sale is what matters. Companies hire people to pick up the phone when it rings, but often they get screwed up and lost when somebody answers. SEMA: What’s the biggest telephone mistake businesses make? Friedman: We’re just not friendly
enough. Companies spend hundreds of thousands of dollars to make that phone ring and, if it’s not handled just right, all that money is wasted. We answer that phone and we’re in a bad mood. We let it ring too long. We answer the phone improperly or without a name. You get less than 30 seconds to build that rapport. SEMA: Your session includes something called “Poor Man’s Jeopardy.” What’s that? Friedman: If you watch “Jeopardy,” you know there’s a big board with bells and whistles. We don’t have the budget for all the bells and whistles and the big board. Instead, I bring a bag, and the bag has golden nuggets, little pieces of information. I go through the audience. They get to pick out a nugget and
the nugget may say “irate caller.” It might say “closing skills” or “telephone greeting” or “voice mail phrases.” They get to pick a nugget and each nugget could represent one hour of information. However, we have scaled it down to two or three minutes. By the end of the hour, we will have covered 15 to 20 golden nuggets of sales and service. SEMA Education Days will feature more than 60 educational sessions in 12 different tracks, ranging from new-vehicle technology to best business practices to marketing strategies and emerging trends in the industry. The complete schedule of SEMA Show Education courses and educational events is available at: www.SEMAShow.com/education.
The Roseville Police Department in MN has hired a new auto body shop after employees from its former vehicle repair vendor reportedly drove squad cars at “irresponsible” speeds on the way to be fixe, as reported by Johanna Holub at LillieNews.com. On the morning of Thursday, Sept. 4, there were two phone calls from “concerned citizens” regarding two marked squad cars “being driven at excessive speeds” on County Road C, which has a 40 mph speed limit, from Victoria Street
to Western Avenue. The department found the vehicles were being driven by employees from a local auto shop the department used for repair services. The employees came to the Roseville Public Works garage to pick up two squad cars that needed body work following a police pursuit that took place overnight, and were supposed to drive the vehicles to the repair shop. They had authorization to do so. The department decided to “end business dealings” with the shop. “The department recognizes its ac-
countability to the community,” the statement reads. Lt. Lorne Rosand said the vehicles were equipped with everything “except the rifle,” which is secured in the police armory before a vehicle is taken to any location for repair work. Because the department contracts several vendors for service including a local dealership, Rosand said mechanics often pick up police vehicles and drive them to the shop for repairs. Certain repairs also require a test drive to be sure the problem is fixed.
They’ve never had a problem with vendor employees driving their vehicles unprofessionally until now. “It’s not uncommon for civilians to drive our cars,” Rosand explained. “We just hope they do so in a manner that represents the city in a very positive way. These two individuals did not.” But, from now on, the department plans to put in the “best effort possible” to have a city mechanic or police officer drive squad cars to be repaired, Rosand added.
Roseville, MN, Police Replace Local Auto Body Shop as Provider After Employees Take Squad Cars on Joyride
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ASA Confirms Detroit as Location and Dates for Next NACE-CARS Expo The Automotive Service Association (ASA) announced that NACE | CARS 2015 will again be held in The Motor City, July 23–25 by ‘popular demand.’ The ASA Board and management considered feedback from attendees, exhibitors, and other industry constituents. Dan Risley, ASA Executive Director, stated “The response for Detroit was overwhelmingly positive. Many said this was the best event in recent memory. Attendees were pleased with the education and training, and numerous exhibitors made significant sales on the show floor. There were many requests for the exhibition to continue through Saturday, and we will incorporate that for 2015.” Partnering with industry organizations and associations is key to the success of Industry Week, and that format will continue. I-CAR, CIC, CCIF, MERA, NABC, and CREF have already committed to Detroit next year. I-CAR will again host the center stage in the exhibit hall to provide education and awareness on advancing vehicle technologies and related repair and industry trends, maintain a booth for membership, provide live technical demonstrations in the demo zone, and offer add-on I-CAR training sessions in classrooms. John VanAlstyne, I-CAR CEO & President, said “We are very pleased with
the results of Industry Week this year. Attendance was up significantly on the NACE floor and the I-CAR Conference was a great success. We are committed to NACE and will continue with a similar footprint in 2015. We also plan to continue holding the I-CAR Conference in conjunction with Industry Week moving forward, shifting to a biennial cadence, so make plans to attend our next Conference in 2016.” ● CIC will once again host the summer quarterly meeting during Industry Week following a successful meeting this past July in Detroit. ● CREF will hold its annual golf fundraising event during the week. ● After drawing a larger-than-expected Canadian contingency, and with close proximity to the growing Canadian market, CCIF will be back once again with their education program, sessions, and a keynote speaker. ● MERA will host a series of sessions again in 2015. ● NABC will produce the Recycled Rides program on the exhibit floor. Other organizations are currently evaluating co-located meetings and announcements are forthcoming. “On behalf of the ASA members, the board of directors, and our team, we are pleased to be working with I-CAR, CIC, CRES, CCIF, MERA, NABC, and others for the benefit of the automotive
repair industry,” said Darrell Amberson, ASA Chairman. “With our organizations working together we can provide the most current education and training in the market. We look forward to seeing everyone in Detroit the week of July 20, 2015.”
GM Posts Best July Sales Since 2007, Toyota Also Up
General Motors has posted its best July sales since 2007. GM sold 256,160 cars in July, a 9% uptick from July 2013. Retail sales were only up 4%, though—perhaps a sign that those who buy cars for fleets have more faith in GM than individual customers. This is the ninth straight month of year-overyear sales growth for GM, and an improvement from June when yearly growth was at around 1%. Toyota said it sold 215,802 cars last month, an 11.6% increase over a year ago.
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NABC 20th Anniversary Golf Fundraiser, January 14, 2015
The National Auto Body Council (NABC) is holding its 20th Year Anniversary Golf Fundraiser on Wednesday, January 15, 2015 in Palm Springs, California. The fundraiser at the Tahquitz Creek Golf Resort will be a highlight of special activities NABC is planning to commemorate its anniversary. Hertz will continue as the presenting sponsor for the annual event, which is one of the NABC’s major sources of funding to support its ongoing community service programs. These programs include NABC’s signature Recycled RidesTM, First Responder Emergency Extrication (FREETM) and the Distracted Driving Initiative. “Last year’s golf event was a sold-out success, with a lot of positive feedback from participants, and plans are underway to raise that bar even higher this year,” said David Merrell of Parts Trader and Domenic Brusco of PPG Automotive Refinish, co-chairs of the NABC fundraising committee. Companies interested in sponsorships should contact the NABC at 1-888-667-7433 ext 119 or email M.mcmanus@NationalAutoBodyCouncil.org
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Auto/Steel Partnership to Present During OEM Collision Repair Technology Summit at SEMA Show The Society of Collision Repair Specialists’ (SCRS) OEM Collision Repair Technology Summit will be held on Wednesday, Nov. 5th at the Las Vegas Convention Center during the SEMA Show. The Summit will allow the industry to explore how automotive design, technology and materials impact repairability, and how in turn repairability influences structural design and David Rigg development. The full-day program will include four unique panel discussions with automakers, equipment suppliers, certified repair facilities, and OEM certifiers/auditors and will also feature special presentations from subject matter experts on automotive materials. Registration is required to attend and seats will be limited. Register today at: www.semashow.com/scrs. As the newest development to the agenda, SCRS has announced that David Rigg, Project Lead with the
Auto/Steel Partnership (A/SP) Advanced High-Strength Steel (AHSS) Repairability Project, will provide a detailed overview of the market developments and repairability research taking place between the steel industry and the automakers. The A/SP is a collaboration between the steel company members of the Automotive Applications Council of the Steel Market Development Institute and Chrysler Group LLC, Ford Motor Company and General Motors Company to pursue research, validation and education that help automakers enhance vehicle safety, fuel economy and improve design and manufacturing. Through the A/SP, automakers and steel companies have worked to drive improvements and innovation in vehicles on the road—and in repair businesses— today. “Participating in the SCRS OEM Collison Repair Technology Summit allows us the opportunity to interact with the leaders of the automotive repair industry to better understand their needs, so that we can incorporate them into our project plan,” said Terry Cullum, director of the A/SP. “Our goal is
to share the latest technology on these innovative advanced high-strength steel materials so that they can be repaired in the field using the best practices developed from our repairability project.” Rigg will deliver visibility into the technological advancements being made in the steel industry relative to automotive materials, and an overview of how their market is developing as a result of increased collaboration towards ever evolving safety and sustainability goals. He will share reasons behind the automakers’ continued reliance on steel as a critical substrate; and what their industry is doing to aid in the development of that relationship. The presentation will ultimately address how repairability plays a role in material research and development, and the prevalence steel will have in the vehicles of tomorrow. In addition to his role with the A/SP, Rigg serves as Global Service Lead - Structures, Front and Rear Closures at General Motors where he is responsible for the development, consensus, documentation and implementation of Global Service Re-
quirements. He also represents service at the Advanced Vehicle Development Center for body structures. In his previous position as Body Service Engineer, Rigg was responsible for authoring collision repair manuals; however, his career with GM extends back to 1998. Rigg’s formative years were spent working in his father’s body shop making the traditional advancements from washing cars to eventually straightening frames and writing estimates. His first-hand experience in the repair community has given him valuable insight into the collision repair industry. For more information about SCRS’ Repairer Driven Education (RDE) series, and to register for the OEM Collision Repair Technology Summit and other RDE sessions, please visit: www.semashow.com /scrs.
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Aluminum Association to Present During SCRS’ OEM Collision Repair Technology Summit In early August, the Society of Collision Repair Specialists (SCRS) announced the launch of the first issue-specific collision repair industry forum being held at the SEMA Show. The OEM Collision Repair Technology Summit will be held on Wednesday, November 5th at the Las Vegas Convention Center and will explore how automotive design and technology intersect with repairability, and how developments in this area impact the collision repair process and the professional businesses planning for their future in the ever-changing landscape of this industry. Registration can be made at www.semashow.com/scrs. In addition to panel discussions with technology experts representing the automakers, certified repair facilities, equipment suppliers, and certifiers/auditors, the program will feature special presentations from subject matter experts on automotive materials. SCRS announced that Doug Richman, Technical Committee Chairman of the Aluminum Transportation Group (ATG) will offer insight into the role aluminum will play in collision re-
pair businesses now, and in the future. “The ATG is eager to share with SCRS session attendees key insights on aluminum’s long history in the automotive industry,” said Richman. “Aluminum-intensive vehicles have been in the marketplace for many decades and are regularly repaired as needed. Within the next ten years, seven out of 10 new pickups produced in North America will be aluminumbodied, according to a recently released survey of automakers conducted by Ducker Worldwide. As Doug Richman aluminum use in auto bodies grows exponentially in the next decade, we applaud the SCRS’ efforts to educate and train repair professionals to be better prepared for the change in status quo materials that come through their shop doors.” Richman will deliver visibility into the technological advancements being made in the aluminum industry relative to the automotive market, and an overview of how their market is de-
For more information about SCRS’ Repairer Driven Education (RDE) series, and to register for the OEM Collision Repair Technology Summit and other RDE sessions, please visit: www.semashow.com/ scrs.
Volvo Reappears on World Market with XC90
Volvo is trying to regain a foothold worldwide with the introduction of its XC90 full-size crossover, the first for China’s Zhejiang Geely’s acquisition of the Swedish automaker from Ford in 2010. The premium seven-seater will contend against models like the Lexus RX350, BMW X5 and Chevrolet Tahoe. Its arrival is considered critical for Volvo dealers who have watched sales plummet since Ford, in the midst of financial difficulties, sold the brand to the Chinese company for $1.8 billion.
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veloping as a result of increased integration into our modern fleet. He will share reasons behind the automakers interest in, and use of, aluminum; and what their industry is doing to aid in the development of that relationship. In addition to his role with the ATG, Doug Richman is Vice President of Engineering and Technology for Kaiser Aluminum. He joined Kaiser in 1996 and was appointed to his current position in 2001. Before joining Kaiser, Richman was Vice President of Automotive Castings for Alcan Aluminum and his background also includes almost 20 years of experience in development and design management at General Motors. Richman is a long-standing member of the ATG, serving as technical chairman of the sub-committee. He also serves as co-chairman of the Society of Automotive Engineers (SAE) Light Metals committee. The OEM Collision Repair Technology Summit is made possible through support from PPG Refinish Products, Ford Motor Company, BASF, Toyota Motor Sales and The Hertz Corporation.
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SCRS Posts Tribute to March Taylor for Supporting and Inspiring the DEG Seven years ago this month in August of 2007, the Society of Collision Repair Specialists (SCRS) and the collision repair community lost a dear friend and tremendous asset with the untimely passing of March Taylor. Those that were fortunate enough to have been touched by March knew him as a dedicated family man, an innovative shop owner, an experienced master technician, and a selfless and iconic collision industry leader and contributor. He was a fixture within SCRS, March Taylor the SCRS Board of Directors and a mentor to many of us in our careers and businesses. March was passionate about addressing inaccurate estimating data and volunteered his time collecting, researching and processing hundreds of database inquiries. He was a technician at heart and was insistent on identifying areas where the data failed to reflect the real world requirements technicians’ face in the repair process. His work was the catalyst and inspiration behind the creation of the Database Enhancement Gateway (DEG), and the concept to have a centralized point for our industry to submit inquiries to.
The DEG (www.degweb.org) is an initiative that was developed to help address collision repair estimates data, through proactive feedback from the collision repair industry to the information providers (IPs) that supply the databases for the various estimating products. The DEG was created, and is equally funded and maintained by SCRS, Alliance of Automotive Service Providers (AASP) and Automotive Service Association (ASA). It is a perfect example of our organization putting membership dollars at work to address real issues in the industry. The DEG has processed more than 7,000 inquiries from the industry, many of which have resulted in changes to the estimating system database, or necessary explanations of how they work. The process is simple, the shop submits the inquiry to the DEG and the administrator works with the representatives from the IPs to bring the inquiry to resolution. Here are some great recent examples of responsive results from DEG submissions: 7112 - 2004 VW Beetle Left Door Skin 6939 - 2013 VW Beetle Roof Panel 6602 - 2013 Chevrolet Camaro SS Side Body Drip Molding If you are using electronic estimating systems to itemize your repair process and price your services, it is important to pay attention to the information being used to create the estimate.
Talk to your estimating staff about the DEG and visit www.degweb.org to check it out today. The DEG and all of its successes are dedicated to the memory of our good friend, March Taylor.
MS is the 4th Most Expensive State for Car Ownership Overall
Mississippi is the third-most expensive state for annual estimated gasoline costs, at $1,231. Other costs are not too outrageous: the state ranks as the 21st most expensive for insurance at $901, and repair costs come in at $356 per year. But thanks largely to those gas prices, owning a car in Mississippi comes with an annual estimated cost of $2,487.
WI is the 5th Cheapest State in Which to Own a Car
Repair costs are about in line with Ohio’s, at an annual estimated cost $329, and insurance is the third-cheapest of all states at $658. Wisconsin, though, is 1 of 22 states with gasoline prices over the annual estimated cost of $1,000 ($1,031). That’s over half the annual estimated car ownership cost of $2,018 in the state.
WY is the Most Expensive State in the US for Car Ownership
With relatively cheap repair and insurance rates, why is Wyoming the most expensive state in which to own a car? Gas prices. The state is the most expensive for annual estimated gas costs, and it’s not even close. Wyoming is over $350 more expensive per year than second-ranked Alabama. It costs about $1,588 annually to fill your car up in Wyoming. At $324, repair costs are reasonable, as is insurance at $792. In total, it costs about $2,705 per year to own a car in the most expensive state.
FL is the Third Most Expensive State in Which to Own a Car
According to Bankrate.com there is no one cost that is astronomical in Florida when it comes to owning a car, but all three factors Bankrate measured were on the high side. Estimated annual repair costs are $377, 11th most-expensive among the 50 states and D.C. Insurance costs are $1,124, comfortably in the top-10 most-expensive states, and gasoline costs are $1,015. Overall, the cost of owning a car per year in Florida is about $2,516.
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Season 34 of MotorWeek 2014 Features Collision Mitigation, Traffic Alerts Season 34 of MotorWeek, television’s longest-running automotive series, celebrates the reinvention of the automobile. Upcoming 2015 and 2016 models will feature the highest level of infotainment, safety, and driver’s aid technology ever on four wheels and MotorWeek will cover all of it in exciting detail. This new technology is transforming how automobiles interact with consumers as well as how they drive, paving the way for the emergence of the autonomous, self-driving car. The new season of MotorWeek premieres on public television stations nationwide beginning Sept. 5, 2014. Season 34 of MotorWeek will highlight advanced functions such as Collision Mitigation, Lane Keep Assist, Rear Cross Traffic Alert, and other driver aids that are a step towards cars that completely drive themselves. While this approach may be somewhat alarming to automotive enthusiasts, it will be a boon for everyone that loves or needs the everyday freedom that driving an automobile provides. “The autonomous automobile will not only continue America’s love affair with the automobile, but move it to an even higher level of usefulness,” says John Davis, MotorWeek Host
and Senior Executive Producer. One new technology, Collision Mitigation, which uses a radar aided braking system to slow and even stop a vehicle to avoid a collision, will become a special focus of MotorWeek’s continuing commitment to driving safety. In season 34 MotorWeek will
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inaugurate a new test for cars with automatic braking systems. MotorWeek will add a low speed barrier test, the first all-new test in our Road Test regime in a generation. This new barrier test was created to measure the effectiveness of the various automatic braking systems among different makes and models. MotorWeek Season 34 will reveal how automatic braking systems react in low speed collisions; one of the most common accidents causing billions of dollars
in insurance claims for injuries and property damage. The season premiere of MotorWeek features the newest addition to the BMW family, the exotic 2015 BMW i8 advanced hybrid, the compact 2015 Lincoln MKC utility, the 700-plus horsepower 2015 Dodge Challenger SRT Hellcat, along with the all-new 2015 Acura TLX. Other highlights from MotorWeek’s new season include road test reviews of the 2015 Chevrolet Camaro Z28, designed and engineered to be the fastest street-legal Camaro ever built; and the new 2015 Lexus NX, the brand’s first compact luxury crossover. MotorWeek’s line-up of popular segments returns with Master Technician Pat Goss offering do-it-yourself car care advice at Goss’ Garage. Yolanda Vazquez will continue to tackle consumer news and trends in FYI and Motor News. Roving reporter Zach Maskell goes Over the Edge with a quirky and fun look at the auto world in overdrive, while Brian Robinson reviews the newest motorcycles and scooters in Two Wheelin’. MotorWeek also continues its decade-long emphasis on the widening availability and practicality of hybrid and electric vehicles in Green Motoring.
NJ is 5th Most Expensive State for Auto Ownership
It costs more to fix your car in New Jersey than in any other state, with an annual estimated cost of $393. New Jersey is also the third-mostexpensive state for auto insurance at $1,244 per year. Gas, though, is affordable, with New Jersey ranking as the sixth cheapest state in this category at $783. For owning a car in New Jersey, you pay about $2,421 per year.
Ford and Chrysler Up, GM down in August Car Sales
It was an up and down sales month for the Big Three US automakers, with Chrysler and Ford seeing gains while General Motors saw retail sales decline, though fleet sales made up some of the ground. All told, a total of 1.58 million light vehicles were sold in August, according to data from Wards Auto. This brings the year-to-date total to 11.3 million units, a 5% increase over 2013.
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