October 2018 West Edition by Autobody News

37 YEARS

WEST EDITION

AUTOBODY

Vol. 36 / Issue 10 / October 2018

AK / CA / HI / ID / MT / NV / OR / WA / WY

How To Squeeze Maximum Value Out of SEMA 2018

As the world’s leading automotive trade event, the SEMA Autobody News recently discussed Show is the best place for automotive the 2018 SEMA Show with SEMA professionals to connect face-to-face Vice President, Communications and with business partners, make new Events Peter MacGillivray. connections, see the latest His department organtrends and new products izes and produces the annual and learn new skills to help SEMA Show in Las Vegas their businesses. and several regional trade It’s where the $43 billion shows, international shows specialty aftermarket indusand special events throughtry gathers every year to out the year. conduct business. There is Peter MacGillivray no other trade show like it. Why should a body shop Over the last few years, our atowner/manager or even a tech tendance among the automotive reSee SEMA 2018, Page 42 /estimator/painter, etc. attend SEMA?

by Ed Attanasio

ASA’s Attorney Discusses Overtime Laws by Chasidy Rae Sisk

On Wednesday, August 22, the Automotive Service Association (ASA) hosted a webinar on “Making the Overtime Law Work for You” as part of its Webinar Wednesdays initiative. The presentation featured Brian Farrington, ASA’s wage and hour attorney and expert, who addressed federal overtime laws and the costly impact they have on non-compliant shops. ASA Vice President Tony Molla opened the webinar by welcoming attendees and introducing Farrington.

Farrington began by discussing the Fair Labor Standards Act of 1938 (FLSA), which is the basic wage and hour law in the United States and establishes standards in four areas: minimum wage, overtime, child labor and recordkeeping. As of July 24, 2009, the federal minimum wage is $7.25 per hour. Farrington emphasized that when state law varies from federal law, an employer must follow whichever standard most benefits the employee. For example, if the state’s minimum wage is higher than the federal minimum wage, but there is no state overSee Overtime Laws, Page 32

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New Technology, Leadership Highlight CAA’s Path Into 2019 by Ed Attanasio

The California Autobody Association (CAA) said good-bye to its executive director, David McClune, at the beginning of the year so he could focus on his health and family after 17 years of service. As a result, Don Feeley stepped down from the organization’s executive committee and is now the volunteer non-paid interim executive director while an ad hoc committee is formed to search for a permanent full-time executive director. Past

President Ted Stein has assumed Feeley’s vacated position on the executive committee on an interim basis as this 51-year-old organization institutes a new series of changes. Autobody News recently sat down with Feeley to discuss this transformational period for CAA, as they will soon be looking for a new executive director and developing new technology as they enter an exciting time.

One of the main things that you’ve been working on is See CAA’s 2018 Path, Page 22

INTRODUCING A NEW COLUMN! From the Desk of Mike Anderson with Mike Anderson

See page 40 in this issue.

Like a Good Neighbor... State Farm Settles by Bruce L. Roistacher, Esq. NY, FL and DC Bar

A brief history of this very long case is in order. Back in 1999 in Avery v. State Farm, a class action lawsuit was filed claiming State Farm was using non-OEM parts. The class included more than 4 million State Farm policyholders. The jury found that the non-OEM parts were inferior to OEM and that State Farm breached its contract in failing to return the damaged vehicles to “pre-loss condition.” It also found that State Farm concealed known problems with the non-OEM parts. The jury returned a $1.2 billion judgment against State Farm. In 2001, State Farm appealed and an appellate court affirmed the decision but lowered that award to $1.05 billion. State Farm then filed an appeal to the Illinois Supreme Court.

This is where it gets really interesting. In 2004, Judge Lloyd Karmeier was elected to the Illinois Supreme Court. The Avery judgment was eventually overturned. The Illinois Supreme Court ruled that there was no breach of contract by State Farm, no damages were proven and that the “class” was not legally shown based on a legal technicality. The plaintiffs appealed to the U.S. Supreme Court and they denied hearing it. THE CASE SEEMED DEAD at this point. The plaintiffs continued to investigate and in 2012 filed a new lawsuit in federal court (Hale v. State Farm) claiming, among other issues, that they had newly discovered evidence that State Farm recruited Judge Karmeier as a judicial candidate and heavily financed his campaign that led to his election to the See State Farm Settles, Page 38

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CONTENTS REGIONAL 2 Veterans Receive Wheelchair-Accessible Vans in MT Body Shop’s Giveaway . . . . . . . 14 A&B Collision Owners Discuss AB 1679 With

Fix Auto USA Appoints Dennis O’Mahoney Attanasio - Who Should Be Your #1 Audience for Your Advertising and Marketing? . . . . . . 58 Chess - Plastic Bumper Repair Part 1: Adhesives . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Fix Auto USA recently announ-ced the appointment of Dennis O’Mahoney as vice president of business development with responsibility for all revenue-generating activities and will report to Fix Auto USA’s CEO, effective immediately. As a member of the Fix Auto USA executive management team,

O’Mahoney’s principle focus will be to develop relationships with insurance carriers while nurturing existing MSO relationships, ensure Fix Auto USA is well positioned to take advantage of OEM certification programs and continue expanding the franchise network.

ASA Northwest Enjoys Successful 25th Annual Golf Tournament . . . . . . . . . . . . . . . 18 ASA Northwest Spokane Chapter Participates in WACTE Conference . . . . . . . . . . . . . . . . . 20 AutoX Launches Autonomous Grocery Delivery in San Jose, CA . . . . . . . . . . . . . . . . 4 Driver Blames Autopilot for Crashing Tesla Into Fire Truck in CA . . . . . . . . . . . . . . . . . . 13 Haunting Images of Cars Caught in the CA Wildfires . . . . . . . . . . . . . . . . . . . . . . . . 12 In Las Vegas, 96 Percent of Passengers Would Use Lyft’s Self-Driving Car Again . . . . . . . . . 26 Monterey Collision Owner Robert Snow Passes Away. . . . . . . . . . . . . . . . . . . . . . . . 13 New Technology, Leadership Highlight CAA’s Path Into 2019. . . . . . . . . . . . . . . . . . . 1 OR Students Work for Work Experience, Exposure to Career Fields . . . . . . . . . . . . . . 10 Police Seek Vandals Who Slashed Cars’ Tires at Fremont, CA, Auto Shops . . . . . . . . 12

NATIONAL AAPEX 2018 Mobile App To Help Attendees Navigate Show . . . . . . . . . . . . . . . . . . . . . . 20 AAPEXedu To Highlight Top Trends in Automotive Aftermarket. . . . . . . . . . . . . . . . 16 ACA’s Bill Hanvey Testifies on 301 China Tariffs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Apple’s Secretive Self-Driving Car Program Suffers 1st Reported Crash . . . . . . . . . . . . . . 6 ASA Northwest Celebrates 9th Annual Family Fun Night. . . . . . . . . . . . . . . . . . . . . 26 CIF Disaster Relief for 2018 Hurricane Season . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 CREF Invites Industry to Its Annual Reception During SEMA 2018 . . . . . . . . . . . . . . . . . . . 23 Fix Auto USA Appoints Dennis O’Mahoney . . . . . 3 Oldest Body Shops in America: Keene Auto Body . . . . . . . . . . . . . . . . . . . . . . . . . . 92 SCRS Announces Audi of America . . . . . . . . . . 92 SEMA Show Week Member Buyer Rewards. . . 20 Tesla Model 3 Almost as Expensive as

COLUMNISTS Anderson - Are You Upgrading Your Shop’s Customer Service Experience? Or Losing Out to Shops That Are? . . . . . . . . . . . . . . . . 40 Attanasio - After the Donation: Kathleen St. John Gets a Car and a Job . . . . . . . . . . . 52 Attanasio - How To Squeeze Maximum Value Out of SEMA 2018 . . . . . . . . . . . . . . . . 1

Porsche 911 to Insure . . . . . . . . . . . . . . . . . 92 Tesla Opens Its First 9 Body Repair Centers . . 75 TN DOT Commissioner Talks Autonomous Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Top Automakers Committed to Advanced Technology . . . . . . . . . . . . . . . . . . . . . . . . . 28 Ultimate Collision Repair Centers To Expand to North Las Vegas . . . . . . . . . . . . . . . . . . . . 8

INDEX OF ADVERTISERS

Cecilia Aguiar-Curry in CA . . . . . . . . . . . . . . 16 Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr, Stacey Phillips, Victoria Antonelli, Gary Ledoux Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bill Pierce Art Director: Rodolfo Garcia Graphic Designer: Michelle Lucas Online and Web Content Editor: Rochelle Beckel Accounting Manager: Heather Priddy Editorial/Sales Assistant: Randi Scholtes

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. Autobody News is a monthly publication for the collision industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2018 Adamantine Media LLC.

AkzoNobel . . . . . . . . . . . . . . . . . . . . . . . . 19 AMH CANADA LTD. . . . . . . . . . . . . . . . . . . 37 Anchorage Chrysler-Dodge-Jeep-Ram . . . 26 Apollo Sprayers International . . . . . . . . . . 14 Aria Tools, Inc . . . . . . . . . . . . . . . . . . . . . . 10 asTech . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Audi Wholesale Parts Dealers . . . . . . . . . . 91 AUTEL Automotive Intelligence . . . . . . . . . 35 AutobodyLaw.com . . . . . . . . . . . . . . . . . . 64 AutoNation Chrysler-Jeep-Dodge-Ram-Fiat. 12 AutoNation Collision Parts . . . . . . . . . . . . . 15 Axalta Coating Systems . . . . . . . . . . . . 5, 23 BASF Automotive Refinish Coatings . . . . . 21 BMW of North America, LLC . . . . . . . . . . . 47 BMW Wholesale Parts Dealers . . . . . . . . . 84 Capitol Subaru . . . . . . . . . . . . . . . . . . . . . 96 CCC Information Services . . . . . . . . . . . . . 57 Celette, Inc . . . . . . . . . . . . . . . . . . . . . . . . 79 Certified Automotive Parts Association . . . 28 Chevrolet of Anchorage. . . . . . . . . . . . . . . 68 Chicago Pneumatic Compressors . . . . . . . 40 Chrysler-Dodge-Jeep-Ram of Seattle . . . . 65 Classifieds . . . . . . . . . . . . . . . . . . . . . . . . 94 Colortone Automotive Paints . . . . . . . . . . . 50 Courtesy Chevrolet San Diego. . . . . . . . . . 60 Cutter Auto . . . . . . . . . . . . . . . . . . . . . . . . 56 Dave Smith Motors . . . . . . . . . . . . . . . . . . 55 DCH Auto Group Temecula . . . . . . . . . . . . 70 Del Grande Dealer Group. . . . . . . . . . . 24-25 Dent Magic Tools . . . . . . . . . . . . . . . . . . . 30 Diamond Standard Parts . . . . . . . . . . . . . . 81 Downtown Motors of LA (Audi, VW) . . . . . . 74 DUZ MOR . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Dynabrade, Inc . . . . . . . . . . . . . . . . . . . . . 39 Eckler’s Automotive . . . . . . . . . . . . . . . . . 27 ECS Automotive Concepts . . . . . . . . . . . . . 58 EMS Automotive . . . . . . . . . . . . . . . . . . . . 50 Enterprise Rent-A-Car. . . . . . . . . . . . . . . . 64 Equalizer Industries, Inc. . . . . . . . . . . . . . . 54 First Auto Group . . . . . . . . . . . . . . . . . . . . 80 Ford of Kirkland . . . . . . . . . . . . . . . . . . . . 65 Ford Wholesale Parts Dealers . . . . . . . . . . 89 Fusor Repair Adhesives. . . . . . . . . . . . . . . 22 Galpin Motors . . . . . . . . . . . . . . . . . . . . . . 77 Glenn E. Thomas Dodge-Chrysler-Jeep . . . . 9 GM Wholesale Parts Dealers . . . . . . . . . . . 93 Honda-Acura Wholesale Parts Dealers . 44-45 Hyundai of Kirkland. . . . . . . . . . . . . . . . . . 65 Hyundai of Seattle . . . . . . . . . . . . . . . . . . 65

Hyundai Wholesale Parts Dealers . . . . . . . 88 Industrial Finishes and Systems . . . . . . . . . 7 Infinity 3D Laser Measuring . . . . . . . . . . . 16 Kearny Mesa Subaru-Hyundai. . . . . . . . . . 75 Kia Motors Wholesale Parts Dealers. . . 82-83 Kia of Carson . . . . . . . . . . . . . . . . . . . . . . 40 Killer Tools & Equipment Corp . . . . . . . . . . 33 Launch Tech USA . . . . . . . . . . . . . . . . . . . 95 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Markingpendepot.com . . . . . . . . . . . . . . . 31 Mazda Wholesale Parts Dealers . . . . . . . . 86 Mercedes-Benz. . . . . . . . . . . . . . . . . . 48-49 Mercedes-Benz Wholesale Parts Dealers . . 90 MINI Wholesale Parts Dealers . . . . . . . . . . 86 Mitsubishi Wholesale Parts Dealers. . . . . . 92 Mobile Environmental Solutions, LLC. . . . . 71 MOPAR Wholesale Parts Dealers . . . . . . . . 51 Moss Bros. Chrysler-Jeep-Dodge . . . . . . . 17 Motor Guard Corp . . . . . . . . . . . . . . . . . . . 26 Nicolosi Distributing, Inc . . . . . . . . . . . . . . 52 Nissan/Infiniti Wholesale Parts Dealers . . . 87 No. 1 Vinyl & Leather Repair . . . . . . . . . . . 13 Pacific Best, Inc. . . . . . . . . . . . . . . . . . . . . 20 Penske Hyundai . . . . . . . . . . . . . . . . . . . . 76 Polyvance . . . . . . . . . . . . . . . . . . . . . . . . . 42 Porsche Wholesale Parts Dealers . . . . . . . 86 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ProLine Tool & Supply, LLC . . . . . . . . . . . . 38 Puente Hills Subaru . . . . . . . . . . . . . . . . . 72 Rapid Tac . . . . . . . . . . . . . . . . . . . . . . . . . 69 RBL Products . . . . . . . . . . . . . . . . . . . . . . 59 Reliable Automotive Equipment. . . . . . . . . 46 Riverside Kia. . . . . . . . . . . . . . . . . . . . . . . 76 Robaina Industries, Inc . . . . . . . . . . . . . . . 63 SATA Dan-Am Company . . . . . . . . . . . . . . 29 Sherwin-Williams Automotive Finishes . . . 11 Shop-Pro Equipment, Inc. . . . . . . . . . . . . . 61 Sierra Chevrolet-Honda-Subaru . . . . . . . . 62 Subaru Wholesale Parts Dealers . . . . . . . . 85 Symach . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Tacoma Dodge-Chrysler-Jeep-Ram . . . . . 53 The Bay Area Automotive Group . . . . . . . . 67 USI of North America, Inc. . . . . . . . . . . . . . 73 Vintage Flatz/Cumberland Products . . . . . 36 Volkswagen Wholesale Parts Dealers . . . . 90 Volvo Wholesale Parts Dealers . . . . . . . . . 92 Walcom USA. . . . . . . . . . . . . . . . . . . . . . . 18 Wedge Clamp Systems . . . . . . . . . . . . . . . 32

Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

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AutoX Launches Autonomous Grocery Delivery in San Jose, CA AutoX is launching a grocery delivery and mobile store pilot in San Jose, CA, allowing public users to order and receive fresh produce and other goods delivered by AutoX selfdriving cars. Arriving in time for the autumn harvest produce season, the new amenity will be available to customers in geo-fenced areas throughout the city.

and is a testament to our cutting-edge AI and all its potential capabilities. We believe self-driving car technologies will fundamentally change people’s daily lives for the better.” AutoX’s featured partner on fresh produce is e-commerce company GrubMarket.com, which is one of the key partners fulfilling the grocery orders. GrubMarket sources organic and healthy food directly from

“We’re very excited to launch the first autonomous grocery delivery and mobile store service in the heart of Silicon Valley with self-driving vehicles on the road,” said AutoX Founder and CEO Jianxiong Xiao, who has a PhD from MIT Computer Science and Artificial Intelligence Lab and is a pioneer in the research field of 3D computer vision and robotics. “It’s the first step of our mission to democratize autonomy

producers and offers fresh food at the lowest cost to popular retail stores such as Whole Foods, Blue Apron, Hello Fresh and Chipotle. “AutoX is a true innovator in the autonomous driving industry, as evidenced by their pioneering self-driving delivery vehicle,” said GrubMarket CEO Mike Xu. “We are thrilled to combine the fresh and affordable grocery experience of GrubMarket with the ingenuity

“You can order goods from an app and get them delivered by a self-driving vehicle. Or, our self-driving car brings a shelf of goods to you, and you can select and purchase onsite in front of your house.” — Jewel Li

TN DOT Commissioner Talks Autonomous Vehicles by Matt Masters, Lebanon Democrat

Tennessee Department of Transportation Commissioner John Schroer spoke about the coming revolution of autonomous vehicles August 23 at the Lebanon-Wilson County Chamber of Commerce’s Lunch and Learn event at Five Oaks Golf & Country Club in Lebanon. Gov. Bill Haslam appointed Schroer the 29th TDOT commissioner. Schroer is also former mayor of Franklin. He spoke to a packed room of about 70 people with a presentation on the future of transportation and more specifically, the coming revolution of autonomous vehicles that will operate almost completely free of human operators with the goal of safer, cheaper and more efficient forms of transportation. “Those cars are going to be available in the next two or three years in our country,” Schroer said. “You’re not going to be able to go buy a Ford Escort or whatever they’re selling because those cars will be for their autonomous fleet. You won’t probably buy autonomous vehicles, and the reason being is because [of] 4

the way insurance is working and the way the national government is talking about autonomous vehicles. They’re making the car producers— the manufacturers—insure that vehi-

cle, so you won’t have to have [car] insurance. They’re going to make sure they maintain them, they’re in control of them and everything is working on them because ultimately it’s the technology that’s doing the driving. “So we’re going to belong to the services, the Ford service or the

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

from the L4 autonomous driving crowd is its emphasis on inexpensive but high-resolution cameras as the primary sensor, rather than expensive LiDAR laser arrays and other costly sensors. AutoX’s high resolution camera sensing enables the AI to safely detect small objects, such as kids and pets, and see farther ahead than other autonomous driving technologies that heavily rely on LiDAR. “Highest safety and lowest cost; this is where our key technology lies,” said Jianxiong. With a diverse team of research minds from the likes of MIT, Stanford, CMU and AutoX is launching a grocery delivery and mobile store Berkeley, along with engipilot in San Jose, CA. Credit: Business Wire neering talent from Google, “We are enabling two shopping Apple, Microsoft, Amazon, and Ford, experiences with self-driving cars,” AutoX is determined to make a mark explained AutoX COO Jewel Li. on the autonomous driving industry. AutoX’s grocery delivery and “You can order goods from an app and get them delivered by a self-dri- mobile store pilot will roll out in two ving vehicle. Or, our self-driving car phases: The first pilot is in San Jose, brings a shelf of goods to you, and and phase two will expand the pilot you can select and purchase onsite in west to Mountain View and Palo Alto with more delivery partners joining front of your house.” What sets AutoX’s system apart soon. and delivery capabilities of AutoX. We look forward to providing our customers with even more convenient delivery options.” When the AutoX car arrives, the window rolls down with AutoX’s selections for customers to pick.

General Motors service or the Audi service, and that’s how we will go to and from work. We’ll probably own a car for a while. We’ll use it when we drive to the grocery store or go out on the weekend, but most of the time, we’ll use autonomous vehicles, and as we do that we will start saving lives, and that’s really what this is all about.” Schroer gave an example of New York City from 1900–1913, where the mode of transportation changed from horse and buggy to the automobile in a relatively short timeframe. Schroer said it’s currently in the first five years of a similar revolution that will take about the same amount of time, 13 years, to become fully integrated in society. Schroer cited several numbers and said the average cost to own a car in the United States is between $700– $800, coupled with the near 40,000 highway deaths per year, 94 percent of which are caused by human error. Schroer said the goal of TDOT is to make sure government investments are compatible with the future of autonomous vehicles. He said safety is the main concern with any efforts to which TDOT commits.

Schroer also promoted a hightechnology corridor between Murfreesboro and Nashville that will act as a pilot program to implement a variety of technologies to make travel safer and more efficient. “We’re putting every type of technology available to us in that corridor of I-24 and Murfreesboro Road, which will include [dedicated shortrange communications] units that will receive and transmit information from the cars and to the cars. We’ll have traffic-signal coordination on Murfreesboro Roads, dynamic message boards telling drivers what to do and where to go, what speed to drive in order to reduce congestion; so lots of new technology that’s going to be involved,” Schroer said. We thank Lebanon Democrat for reprint permission.

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Apple’s Secretive Self-Driving Car Program Suffers 1st Reported Crash by Ethan Baron, The Mercury News

The first rule in Apple’s self-driving car program called “Project Titan” is you don’t talk about Project Titan. But thanks to California regulations, if a company’s autonomous vehicle gets in a crash on a public road in the state, the company must talk about it in a report to the DMV. After an accident involving an Apple self-driving SUV on August 24 in Sunnyvale, Apple filed such a report, but didn’t say much.

“An Apple test vehicle in autonomous mode was rear-ended while preparing to merge onto Lawrence Expressway South from Kifer Road,” said the Cupertino tech giant’s report to the DMV, which was released by the agency the week of August 26.

Titan remains mostly unclear outside the company. Although CEO Tim Cook suggested in 2017 that the firm was developing self-driving software to be used by car companies, its recent poaching from Tesla of highprofile engineering executive Doug Field was seen as a possible indication that it was aiming to build its own autonomous vehicles. More than 50 technology firms and car makers have permits to test selfdriving vehicles on California public roads. Google spin-off Waymo pioneered the technology and appears to be leading the pack on developing it—albeit with issues. Apple CEO Tim Cook speaks in front of a rendering of the Among autonomous vecompany’s new “spaceship” headquarters during a prodhicle accidents reported to uct launch event March 21, 2016, at Apple in Cupertino, the DMV, rear-enders are CA. Cook said that the next time Apple does a product common, and industry oblaunch event, it will be announced at the new facility. servers have noted these Credit: Karl Mondon, Bay Area News Group crashes appear to be caused Both vehicles sustained damage, frequently by the robot cars driving in with the Apple vehicle’s described as a more hesitant fashion than vehicles “moderate,” but no injuries were re- driven by humans. “Autonomous cars make other ported. The ultimate goal of Project drivers worse,” the Wall Street JourApple’s self-driving Lexus RX 450h SUV was crawling along at less than a mile per hour on a clear day around 3 p.m., “waiting for a safe gap to complete the merge,” when a Nissan Leaf smashed into its back end, according to the report.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

nal said in a 2015 op-ed, when the hit-from-behind issue started to become apparent. “A driver in Google’s neighborhood … reported ‘Google cars drive like your grandma.’” Apple has significantly ramped up its public roads testing program for autonomous vehicles in California. After having permits to test only three vehicles last year, by this May it had 55, putting it second behind GM—with 104 permits—for number of test cars authorized to drive on the state’s public roads, this news organization reported. Unlike Waymo, which has been public about many aspects of its autonomous vehicle program, Apple has kept its program largely secret, with bits of information trickling out through public records of government agencies. We thank The Mercury News for reprint permission.

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Ultimate Collision Repair Centers To Expand to North Las Vegas capacity,” said Brad Gothard, a partner in Ultimate Collision. Gothard expects the operation North Las Vegas, NV, is set to get a new locally owned auto body repair will be able to repair 200 to 250 cars operation aimed at competing with a month, raising the company’s citywide capacity to between 900 and the national brands. 1,000 vehicles monthly. Ultimate is coming to the end of what is always its busiest time of the year—June, July and August—when residents are active in summertime activities and millions of tourists unfamiliar with the roadway terrain flood Southern Nevada streets and highways. The steady increase in Ultimate Collision Repair Centers owner Brad Gothard, tourism and arrival of left, and manager Mario Watson stand in front of the new residents spurred Ulcompany’s Summerlin location on Friday, June 16, 2018. timate’s need to expand, Credit: Michael Quine, Las Vegas Review-Journal Gothard said. “I’ve been in Las Vegas for 25 Ultimate Collision Repair Centers is expected to open its fourth years, and I just love the way it’s Southern Nevada location in Decem- evolved with big-city growth,” he ber at North Fifth Street and Centen- said at the company’s Summerlin facility. nial Parkway. Gothard has partnered with “Our new location in North Las Vegas will be a carbon copy of our ex- Wayne Tew, who served as president isting facility in Summerlin, but the lot and CEO of the Clark County Credit size is bigger so we should have more Union for 29 years, retiring in 2015. by Richard N. Velotta, Las Vegas Review-Journal

They opened their first Ultimate Collision shop at Rancho Drive and Cheyenne Avenue in 2002. The company’s valley-wide operation has 105 employees. It will add 35 more when the North Las Vegas shop opens.

Brad Gothard, owner of Ultimate Collision Repair Centers. Credit: Michael Quine, Las Vegas Review-Journal

The partners are investing more than $1.5 million in equipment, and several workers are receiving certification in paint application, structural repair, welding and auto body repair. The most expensive machines in the shop are the paint booths because they have to be kept at the optimal temperature of 75 degrees during painting, which means they have to have heating and cooling in addition to proper environmental safeguards.

Gothard said auto repair has become more sophisticated over the years as technology in vehicles has advanced. “Thirty years ago, most cars had nothing but a seatbelt,” Gothard said. “Today, most average models have

Tommy Ha of Ultimate Collision Repair Centers buffs out new paint as part of the finishing process. Credit: Michael Quine, Las Vegas Review-Journal

airbags, anti-collision sonar, backup cameras and lane-divergence technology. All of that has to be recalibrated when a car is brought in for repair.” He said the average age of a vehicle brought in for repairs is 3 years old. We thank Las Vegas Review-Journal for reprint permission.

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OR Students Work for Work Experience, Exposure to Career Fields Derick Johnson isn’t sure what he wants to do after high school—yet. But after interning this summer for Ken’s Body and Paint, he has a better idea. “I want to be a photographer or work in an auto body shop—or both,” he said as he sanded the body of a Toyota Land Rover.

there,” he said. “I would give him a shot at learning the trade.”

Resume, Application This summer, the program included students from Bonanza, Hosanna, Triad, Mazama, Henley and Lost River high schools. To participate, students must have completed their freshman year of high school. Students apply to the program like they would a job—creating a resume that includes their GPA and other significant achievements. A committee determines whether the student gets into the program and their placement with a business or organization. “We started it mostly just to teach kids how to be good employees,” said Benji Derick Johnson, a sophomore at Mazama High School, Henslee, internship program sands the body of a Toyota Land Rover. He was an intern at coordinator and business Ken’s Body and Paint for six weeks this summer as part of teacher at Mazama High the Basin Partners Internship Program. Credit: KCSD photo School. “People always say, “I’ve been working on it,” he ‘You have to have experience.’ Well, added, indicating the Rover. “The guy how do you get that experience if you wants a new paint job; he wants it to can’t get a job?” look classic.” Participating businesses allow Johnson has spent the last six interns to learn about a variety of poweeks with A.J. Halda, owner of sitions within their organizations. Ken’s Body and Paint, learning every “We ask the hosts not to just have aspect of the business, from customer them wiping tables for six hours,” service to sanding and painting vehi- Henslee said. cles. Johnson, who will be a sophomore at Mazama High School, is Waders On among 18 Klamath Basin students Nevaeh Nelson and Sierra Niehus, who participated in the Basin Part- as part of their internships at the Tuleners Internship Program. The pro- lake National Wildlife Refuge, put on gram, which started in 2016 as a waders and caught and banded malpartnership between the Klamath lards. County School District, Oregon State “They taught us how to grab University Klamath Basin Research them, put them between our legs and and Extension Service and the South- band their legs,” Nelson said, “and ern Oregon Education Service Dis- then we’d release them.” trict, is open to all students in the Nelson also helped lead canoe Basin. The goal is to provide local trips around the refuge, answered students with work experience and phones and provided information to exposure to career fields. tourists at the front desk. Participants contribute $1,200 Niehus and Nelson spent part of to the program. Of that, the interns their time on the refuge with the earn a $1,000 stipend for interning Youth Conservation Corps, building for 120 to 140 hours over a six-week trails and painting sheds. Nelson, period. who wants to be a zoologist, hopes This was Halda’s first summer to get a job next year with the YCC. participating as a host for the pro“One day, we pulled 600 thisgram. He enjoyed watching Johnson tles,” Nelson told a roomful of parents learn new skills and mature over the and supporters at a recent end-of-theweeks he interned at the shop. year celebration. What she learned: “I think the bang for the buck is “Do NOT touch thistles barehanded.” 10

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Bedside Manner Hunter Cox, a junior at Henley High School, interned with OSU Extension Service’s 4-H program. Among other duties, he organized and set up the small animal barn for the Klamath County Fair. Next year, he plans to do it again—as a volunteer. Cox, who wants to be a pediatric oncologist, said his internship helped him learn tolerability and likely improved his “bedside manner.” The goal of BPIP is to provide students with work experience they can use to apply for jobs outside the program. Ray Holliday, owner of Holliday Jewelry in Klamath Falls, joined the program last summer and hosted his second intern this summer. He believes the program benefits the teenagers it serves. “It helps them see the importance of what they’re learning in school, and they get a taste of the working world,” he said. Further Employment Holliday offered a part-time job dur-

ing the school year to his intern last summer. He has offered a similar position to Steven Luna, his intern this summer. “He’s learned a lot about the inner workings of the business,” Holliday said of Luna. “This program is a great opportunity for students to get work experience, and valued work experience—not just flipping burgers.” Jordan Buckley, 16, was one of two interns at Turn Thom Tire. She mostly interned in the marketing department and helped with customer service, though she spent some time in the shop as well. “It was really outside my personality,” she said of working at Turn Thom. “I’m really girly. But I’m really glad I did. I’m always learning something new.” Hosting Interns Program organizers would like to have more business participation, and at the recent celebration, Henslee encouraged parents and community members to support those businesses See Work Experience, Page 14

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Haunting Images of Cars Caught in the CA Wildfires In October of 2017, wildfires ripped through Northern California, destroying everything in its path with 8,900 structures destroyed, 44 deaths and more than $3 billion in losses.

More than 100,000 people were displaced from their homes, and countless numbers of people have lost absolutely everything. When the fires and smoke eventually cleared, they revealed a cemetery of a wide range of vehicles across the land. Art Out of Ashes felt one way they could communicate the people’s losses was through photographs of these vehicles. While the collective of these vehicles represents the loss felt by all those affected by the fires, each unique vehicle represents how each individual's losses

are different. Art Out of Ashes has captured the souls of these vehicles through the incredible lens of talented photographer Scott Maddern and has turned the photos into artwork for you to help raise money for the victims still struggling. You can support the victims of the wildfires by purchasing tickets to the Art Out of Ashes dinner and auction on Saturday, Oct. 13 at St. Francis Winery & Vineyard, purchasing their photos or purchasing their photobook. They are looking for several volunteers who share their passion of helping the victims of the fires. They are also seeking donations to extend the fundraising efforts beyond the artwork. Vistit www.artoutofashes.org to donate or to get involved. The proceeds will go to benefit the victims of the fires through their partnership with the Sonoma County Resilience Fund to address the mid-to-long-term needs of those impacted by these devastating fires.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Police Seek Vandals Who Slashed Cars’ Tires at Fremont, CA, Auto Shops by Charles Clifford, KRON 4

In California’s East Bay, police are looking for whoever burglarized and slashed the tires of at least eight vehicles. It happened in Fremont early the morning of August 27 and so far, no suspects have been identified. It’s an auto shop’s worst nightmare—arriving to work and finding that all of your customers’ car tires have been slashed. According to the Fremont Police Department, the evening of August 26 or possibly early the morning of August 27, someone burglarized at least one car and slashed the tires of eight vehicles behind two different auto repair shops in the 41000 block of Albrae Street. “Monday, five cars of mine were all flat,” said Fil Bertolfo, owner of Fil’s General Auto Repair. The vandals slashed tires on five cars behind his shop. Three cars were vandalized behind ASCO Auto Body, which is next door. The Fremont Police Department has launched an investigation, but so far no suspects have been

identified and a motive for the vandalism remains a mystery. There are multiple surveillance cameras nearby, but it isn’t clear if any of them captured an image of the suspect or suspects. Bertolfo said that a camera at a nearby business did record what appeared to be a black car in the area early the morning of August 27, but it was too dark to see the driver. “I’m responsible,” he said. Fil said the cars belong to his customers, but since the vehicles were in his care, he has to pay to fix the tires, meaning he’s potentially out thousands of dollars. He hopes whoever did this will be arrested and punished. “I’m hoping that the people doing that will get caught. Because it’s not funny,” he said. The owner of ASCO Auto Body was unavailable to comment for this story. Anyone with information is asked to contact the Fremont Police Department. We thank KRON 4 for reprint permission.

Driver Blames Autopilot for Crashing Tesla Into Fire Truck in CA by Mario L. Major, Interesting Engineering

As the revenues and output of Tesla’s autonomous vehicles continue to rise, there has also been a small rise in the number of accidents involving the cars. And based on the latest incident, it seems that the unmanned vehicles hold an inexplicable grudge against fire trucks.

Credit: SanJoseFireFighters, Twitter

The latest example is a collision that occurred the weekend of August 25 involving one of the company’s Model S cars. The black vehicle struck the parked fire truck from behind around 1 a.m. on Saturday morning, close to Coyote Creek on the Southbound Highway 101 in California. The impact of the vehicle resulted in two of the passengers in the car requiring a trip to the hospital, though as in the other two cases

from earlier in the year, no firefighters were hurt. There is some suspicion that a DUI may be part of why the incident occurred, which led to an arrest of the driver, 37-year-old Michael Tran. He reportedly said on the scene, “I think I had auto-pilot on.” As for Tesla, it has remained clear about the autopilot feature: “Traffic-Aware Cruise Control cannot detect all objects and may not brake/decelerate for stationary vehicles, especially in situations when you are driving over 50 mph (80 km/h) and a vehicle you are following moves out of your driving path and a stationary vehicle or object is in front of you instead.” What this means is that until data is recovered from the car in question, the company most likely will not be releasing a detailed statement. This reiterates the point that parked vehicles are, and based on the latest incident, continue to be, a flaw (which Tesla acknowledges) when using autopilot. The San Jose Fire Department shared images from the scene on Twitter. Interestingly, this is the most recent of a string of similar incidents

involving parked fire trucks. The incidents, added with the reported string of cases involving Model S cars catching fire, are raising safety concerns. Encouraging Responsible Use In terms of the Model S, Tesla’s position on what it needs to do in order to enhance safety has remained consistent this year, which has meant that the company is not entirely to blame for the small pop-up of collisions. After all, there is a reason why the phrase informed consumer is popularly used. On the other hand, with the unprecedented influx of technological innovations, companies must go above and beyond the minimum to equip customers to the best of their abilities. A good step would involve playing nice with consumer reporting groups and the National Transportation Safety Board (NTSB), influential groups who are always looking for opportunities to provide the latest and most effective safety regulations to consumers. In other words: full cooperation. We thank Interesting Engineering for reprint permission.

Repair vs. Replace

DO YOU KNOW YOUR OPTIONS? Before

Robert Snow, owner of Monterey Collision, unexpectedly passed away Sept. 2. Snow’s passion was his family and his work. He is survived by the love of his life, Karen Montini Snow and their children whom he adored and was so proud of, Shelly (Jonathan) Higgins, Steven (Kailee) Snow and Rachel Snow. The owner of Monterey Collision in San Jose, CA, for almost 30 years, Snow ran a highly successful business and made it fun for employees, customers and colleagues with his ever-present wit and magnetic personality. He was and will always be deeply loved by his extended Snow and Montini families, who will miss his big heart and contagious humor. Published in San Jose Mercury News/San Mateo County Times on Sept. 11, 2018

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Continued from Page 10

Work Experience

that hosted interns. This year, those businesses were: American Family Insurance, Bigoni’s Pizza in Malin, Holland’s Dairy, Holliday Jewelry, Klamath County School District, Ken’s Body and Paint, Klamath County Library, Mac N’ Cheese Steak, MC’s On Main, OSU 4-H Program, OSU KBREC Horticulture, OSU KBREC Nutrition, Three Rivers Mosquito and Vector Control, Turn Thom Tire and Tulelake National Wildlife Refuge. Any business or organization interested in hosting an intern for summer 2019 should contact Benji Henslee, BPIP coordinator, at 541619-7019 or hensleeb@kcsd.k12.or .us.

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2 Veterans Receive Wheelchair-Accessible Vans in MT Body Shop’s Giveaway A Helena Valley, MT, auto body shop gave back to some local veterans on August 18. Top Gun Auto Body hosted the Hero of Helena giveaway. Owner Ted Culbertson and his employees

sible van, meaning second-place finisher John Cole won as well. Koehl said he currently has a truck, but it’s difficult for him to load his wheelchair without falling. “I’ll be able to do anything I need to do to get in the van [now] without falling,” he said. “I can’t say

Daniel Koehl

John Cole

by Jonathon Ambarian, KTVH News

prepared a fully wheelchair-accessible van. They then picked three local veterans with special mobility needs and asked the public to vote for one to receive the van. At the giveaway, Culbertson announced the first-prize winner was Daniel Koehl, known for his Veterans Coffee Drive program that collects donations of coffee and other items for patients at the VA. But, in a surprise, he also announced that Stephen Keim, another local veteran, had donated a second acces-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

how good it’s going to be. It’s just awesome. My heart is just so full.” Cole has a van, but said the new one will be easier to get in and out of. “I just wanted to say thank you for the van,” he said. “This is the first time in my life I’ve ever won anything.” The third veteran, Royal Magnus, was not able to attend Saturday’s event, but he also received a $250 grocery card from Vans Thriftway. Culbertson said he was honored to be able to help these deserving

veterans. “It’s very important for me to give back, and one thing we can give back is cars,” he said. In addition to Top Gun Auto Body, a number of other businesses worked on the new van. Point S Tire donated the wheels and tires, Milledge Muffler and Brake provided the exhaust system, and Axalta Coatings did the van’s finish. Koehl said the Helena community has always been remarkably supportive of veterans. “This community takes [such] good care of us,” he said. The giveaway came during Top Gun Auto Body’s second annual classic car show. The event also featured a barbecue and an exhibition by freestyle motocross riders. We thank KTVH News for reprint permission.

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AAPEXedu To Highlight Top Trends in Automotive Aftermarket The 2018 AAPEXedu program is offering 18 sessions on the top trends, challenges and opportunities in the automotive aftermarket industry and how attendees can position themselves to stay ahead of the curve and grow their businesses. AAPEX represents the $740 billion global automotive aftermarket industry and will take place Tuesday, Oct. 30 through Thursday, Nov. 1, at the Sands Expo in Las Vegas. During the “2019 Aftermarket Outlook” sessions, NPD Group Inc. will once again unveil the results of its latest Consumer Outlook Survey— now in its 13th annual edition—exclusively to AAPEX attendees. IHS Markit will return with its information-packed “Five Trends in Five Minutes: Key Trends Impacting the North American Automotive Aftermarket” session to reveal the hottest trends shaping the industry. The additional sessions will cover the impact of the latest industry trends and developments, including emerging vehicle technologies, shifts in vehicle ownership and fleet management, autonomous vehicles and ongoing North American Free Trade Agreement (NAFTA) negoti-

manufacturers and professionals under 40. Sessions are organized in the following tracks: Technology, Industry Trends, Service Professionals Program, Business Management, Import/Export, Heating/Cooling, Heavy Duty, Paint & Body, and a Young Professionals Program. AAPEXedu sessions are accredited by the University of the Aftermarket toward the Automotive Aftermarket Professional (AAP) and Master Automotive Aftermarket Professional (MAAP) AAPEX 2018 attendees will learn how the top trends in designations. the automotive aftermarket will impact their businesses All AAPEXedu sesand how to prepare for the future sions are included in the part failure, advanced driver assis- AAPEX online registration fee, tance systems (ADAS), as well as which is $40 (U.S.) through Friday, Transportation as a Service (TaaS) Oct. 12. To register, visit: www .aapex show.com/attendee. and Mobility as a Service (MaaS). The AAPEXedu 2018 program will comprise approximately 50 sessions. While many are suitable for all SUBSCRIBE TO OUR automotive aftermarket audiences, the program offers specific sessions YOUTUBE CHANNEL: designated for automotive service professionals and repair shops, parts suppliers, national service chains, ations. AAPEXedu sessions also will address enabling the connected future and the secure vehicle impact, the digital transformation of China’s automotive aftermarket, predictive

CIF Disaster Relief for 2018 Hurricane Season

On Sept. 12, the Collision Industry Foundation (CIF) announced its Disaster Relief Task Force is continually poised to render assistance to industry members who may be impacted by natural disasters. As Hurricane Florence barrels toward the East Coast and the 2018 hurricane season goes in full swing, the CIF wants to bring awareness of its mission and seek support for this cause. “It’s comforting to know the Collision Industry Foundation exists to assist our fellow brothers and sisters impacted by natural disasters,” stated Dale Matsumoto of Auto Body Hawaii and board member of ABPAH. “If you or others you know are impacted by any storms or other natural disasters, please go to the CIF website and request aid,” said Michael Quinn, CIF Disaster Relief Task Force chairman.

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A&B Collision Owners Discuss AB 1679 With Cecilia Aguiar-Curry in CA by John Jensen, Lake County News

Assemblymember Cecilia AguiarCurry recently traveled to Clearlake, CA, and met with Bill Stone and Alvaro Valencia, co-owners of A&B Collision, before attending the Clearlake Oaks Business Association meeting later that day. Stone and Valencia had previously met Aguiar-Curry at a legislative day event earlier this year and wanted to talk about Assembly Bill 1679, which would have handed more control to insurance companies than auto body repairers, according to Valencia. During the meeting, AguiarCurry spoke with both business owners about the potential impacts of the legislation over a front bumper that was approved by insurance but re-

quired retooling to actually fit on a vehicle. Opposed by auto body shop owners, including Stone and Valencia, as well as the nonprofit group Consumer Watchdog, the bill failed to clear its appropriations committee by the deadline of January 2018, effectively killing the legislation. If the bill is renewed and defeated, body shops will have more impact on auto body repairs, Valencia told Lake County News. Should AB 1679 pass in the future, Valencia said, “insurance companies will have more impact on repairs. They don’t know all the repairs that have to be done [to] a vehicle.” We thank Lake County News for reprint permission.

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ASA Northwest Enjoys Successful 25th Annual Golf Tournament Tournament included multiple contests and many winners. The firstOn August 8, ASA Northwest held its place team consisted of Benjamin 25th Annual Golf Tournament at the Breon, Jeremy Hart, Bob Hogan Eagles Pride Golf Course in Tacoma, and Jim Newman. The second-place WA. winners were Scott Tveten, John Hinkemeyer, Rich Freil and Brian Johnson. Bobby Walker, Paul Krupa, Bob Ward and Mike Badgley took third place. The winners of Poison Ball were Dan DeBusk, Pat McCaffrey, Heather O’Malley and John Smith. John Hinkemeyer, Bob Kucera, Donnie Eaton, and Paul Tegantvoort were the KP winners. Linda Staples and Mike Badgley won The first-place team consisted of Benjamin Breon, Jeremy the Long Drive contest, and Hart, Bob Hogan and Jim Newman (not pictured) Karen Ekrenn and Todd According to ASA Northwest Early won the Straight Drive compeExecutive Director/President Jeff tition. The Putting Contest winners, in Lovell, “Over 140 golfers and spon- order, were Scott Tveten, Mike Badsors participated in this annual fun- gley and Rich Freil. filled event. We had a day full of Lovell expressed gratitude to the warm sunshine for the event. After 18 association members and sponsors holes of golf, everyone enjoyed a who made the golf tournament such BBQ dinner buffet and lots of great a success. raffle prizes.” “A BIG shout-out to our golf ASA Northwest’s 2018 Golf committee: Kevin Marks, Mark Siby Chasidy Rae Sisk

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

mons, Brian Smith, Dan DeBusk, Brian Johnson, John Hinkemeyer, Jill Brothers, and Vicky Welcher,” he said. “ASA Northwest would also

Benefit Consultants Northwest, AutoVitals, Jet Chevrolet, Transmission Remanufacturing Co, Moose Radiator, WORLDPAC, Integrated Claims

Scott Tveten, John Hinkemeyer, Rich Freil and Brian Johnson took second place in the golf tournament

The third place winners of ASA Northwest’s 2018 Golf Tournament were Bobby Walker, Paul Krupa, Bob Ward and Mike Badgley

like to say ‘thanks’ to all of our sponsors who helped make this event so successful.” The 2018 ASA Northwest Golf Tournament sponsors included Enterprise Rent-A-Car, Fast Undercar, Basin Pacific Insurance, Advance Auto Parts, Federated Insurance, Seattle Automotive Distributing, Country Financial, Drivelines Northwest, Associated Petroleum Products, Interstate Batteries, Wesco Group, Tacoma Dodge Chrysler Jeep, LKQ Corporation, Performance Radiator,

Management AutoZone, CARSTAR, Farmers Insurance, DoubleTree Seatac Hotel, Harborstone Credit Union, Wagonmaster Washington, Colonial Life, Card Connect/First Data, and ASE/ITEC Education. For more information on ASA Northwest and its future events, visit: www .asanorthwest.com.

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ASA Northwest Spokane Chapter Participates in WACTE Conference by Chasidy Rae Sisk

On August 6, the Spokane Chapter of ASA Northwest participated in the Washington Association Career Technical Education (WACTE) Conference at the Davenport Grand Hotel in Spokane, WA. Attendees received valuable information about the automotive industry’s involvement on advisory boards during a one-hour presentation delivered by ASE’s Walt Commans and Sarah Patterson from the Office of the Superintendent of Public Education. Pamela Meyer, ASA Northwest member support specialist, stated, “The WACTE Conference class that I attended was very informative. Every shop owner needed to hear the message. The discussion was primarily focused on how badly the automotive industry is looking for technicians and how important it is to be involved in the educational programs at the high school level (if they exist) and college levels. “The attendees responded to the event with great concern and new awareness of true need in our industry and how we need to start working

together to get to the end result. The industry and educators need to be talking more, and industry needs to get more involved with supporting the advisory boards and programs.”

The presentation’s purpose was to bring awareness to the industry’s need for involvement from industry professionals in terms of advisory boards. “The discussion showed examples of how effective advisory boards can be if they are properly supported by [the] industry,” Meyer shared. “Advisory boards are very interested in listening to industry input, but it seems as though a lot of our automotive shops either do not know this or care. ASA Northwest is working very hard to bring attention to this matter and have these discussions with our shop members. “Association-sponsored events are critical to our members and the

AAPEX 2018 Mobile App To Help Attendees Navigate Show AAPEX has introduced its 2018 mobile app, which provides everything to help attendees plan for and

navigate this year’s event taking place Tuesday, Oct. 30 through Thursday, Nov. 1 at the Sands Expo in Las Vegas. 20

To plan for AAPEX, attendees can use the app to register, as well as locate exhibitors and products, build a personalized itinerary and view a schedule of AAPEXedu sessions and events. Entries in the AAPEX 2018 New Product Showcase are featured on the app, as is a list of speakers. While at AAPEX, the app has a maps feature that identifies booth locations and provides company descriptions and a walking map with a Locate Me feature designed to help attendees orient themselves on the expo floor. The app also helps attendees stay up-to-date with AAPEX 2018 and industry news by providing access to social media discussions and AAPEX TV 360 videos. The AAPEX 2018 mobile app is sponsored by BOLT ON TECHNOLOGY, Booth 30001. The app is free and will update automatically for users who have the 2017 version. For new users, additional information is on the AAPEX website and the app can be downloaded from the Apple Store and Google Play.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

industry because it’s easy to get blinders on and just move on with everyday life in running your business and not seeing the big picture of where we are headed. I keep saying, ‘We are late to the party, but it’s not too late’ in getting involved and doing the hard work. We can no longer sit back and let the educators do it alone. The industry owes it to the programs to get involved and support secondary education. If we choose to continue the way we are, we will not have students that want to work in automotive or collision. ASA Northwest is working very hard at getting involved and bringing attention to this very real problem. We are working closely with secondary education and trying to figure out how we can get involved at middle school and high school levels so that these students even know about a viable career in automotive. We are very committed to bringing awareness to the industry and making an impact that will change the direction of students entering our shops.”

For more information about ASA Northwest, visit asanorthwest.com.

SEMA Show Week Member Buyer Rewards

SEMA members attending the 2018 SEMA Show as buyers have access to the Member Buyer Rewards (MBR) program perks. Just by wearing their MBR cards and lanyards during the SEMA Show, they will be recognized as MBR members, giving them access to the following: ● VIP Taxi Line: Enjoy shorter lines available Tuesday–Friday during select hours. ● Members-Only Lounge: Book meeting rooms, charge your devices, network with other SEMA members, purchase food options and more. ● MBR Lounge: Located inside the Members Lounge–North, this lounge offers MBR members exclusive access to a space to relax and enjoy complimentary refreshments during the SEMA Show. ● MBR cards will be mailed in late October. Be sure to stop by the MBR lounge early to pick up your gift; they will go fast!

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SEMA Show Week Member Buyer Rewards

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Cover

CAA’s 2018 Path

CAA’s new data portal that was unveiled last month. Tell us about your new portal and how it will help the organization.

We’re calling it CAATube, like YouTube, and its purpose is two-fold. If a member ever has a question about any particular product, topic or data, this portal will enable them to quickly get answers with an informational video. We are also asking our corporate sponsors to feature videos about their companies and even introduce their local reps in each area to our members in some instances. This is the direction we’re headed now because we realize that in addition to a website, we also need a digital portal where people can coexist and access information easily. We’ve been working with Mark Claypool and Spring McCann at Optima Automotive, the company that helped us develop our site several years ago, and they’re doing an

excellent job. It’s accessible to CAA members and non-members alike, but as you delve into the more valuebased information, you’re going to have to be a member. The goal is to drive people to our website and provide genuine value for the industry, including our sponsors. [This includes] relevant information that is up-to-date and helpful for all parties involved. The idea is that people will go to the portal before picking up the phone, thereby saving time and accessing data more easily.

You have 17 chapters, some of which are thriving while others are currently dormant. How can you help the strong ones grow and assist the others to re-establish themselves?

People ask me, why are some of the chapters going strong while others are not, even though for years they were some of our top chapters? At the end of the day, it comes down to the current condition in each market and who is willing and available to volunteer their time to run the chapter. Moving forward,

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

we will have two representatives in each area—one local and one at the state level—who will report back to us on a regular basis. Quarterly meetings will then be held to go over programs, and we will provide the funds [to] do the rest of the work. All the regional rep will have to do is tell us where and when, and all of the advertising and communications among the members will happen on our new portal through mass texts or emails, for example. If a particular chapter can’t find leadership, that does not mean that there are not a lot of valuable members there, so by providing support from the state level, that chapter can still be sufficient and active. So now, the local rep in each area will tell our board and executive committee about what they want to do, and we will do the rest to facilitate it. Until now, the chapter leaders were doing all of the work themselves, and it became problematic because they just don’t have enough time to organize meetings, reach out to the members and handle all of the arrangements. Many of the same

people have been running these chapters for years without any help, so they’re logically tired and they need support. Our plan is to visit all of the chapters sometime in 2019 to introduce our members to the new portal and answer their questions in a live format.

You are currently searching for a new executive director. What kind of person are you looking for?

The right person to fill the role is going to have to fully understand the industry and the technology that we will be using with our portal and other digital efforts. They will also need the ability to work well within our current business environment here in California, as well as within the country. We wanted to complete the portal before we started the search because it is going to be a huge part of how the organization will work in the future. We are writing a request for proposal right now, and we will begin the interviewing process toward the beginning of 2019.

The majority of your members are independent shops and consolidation is here to stay, so how do you get more of the larger collision repair chains to join CAA?

what we’re doing at CAA. This is a very key point, and that’s why we plan on bringing it to the forefront as we approach all body shops of all sizes to become members of CAA.

Q: A:

I tell people all the time that when we fix something legislatively here in California, all shops (members and non-members alike) benefit, along with vendors and everyone else in this industry. If you have a healthy industry, everyone wins—independents and MSOs alike. In the end, it costs less than $50 per month to join CAA, and what we achieve in Sacramento pays huge dividends. Several years ago, there was a proposed bill that was going to force shops to pay taxes on labor, and we worked hard with our lobbyist, Jack Molodanof, to defeat it, for example. So, collision repairers in this state have benefitted greatly from our legislative efforts alone and brought considerable value to our organization. We strongly believe that any of the big MSOs that have their own informational channels and ways of doing business are being protected by

If you had an “elevator speech” for us, what would it be?

Our mission is to adapt to changes in the marketplace and address the needs of our members, and we’re on a good path to achieve these things. Right now, we are focusing all of our revenue streams on improving this organization. We want to tell everyone that we’re still alive and well and entering an exciting time for CAA with new technology and soon, a new leader.

Your leading source for WESTERN Collision Repair News! western.autobodynews.com

CREF Invites Industry to Its Annual Reception During SEMA 2018 Collision industry members are invited to join the Collision Repair Education Foundation during its annual reception the evening of Tuesday, Oct. 30 from 9 p.m.–10:15 p.m. (PDT) in the Renaissance 1 Room at the Renaissance Las Vegas Hotel during the 2018 SEMA Show. During the reception, attendees will hear about the organization’s efforts to support high school and post-secondary collision students, 2017 donors/supporters will be highlighted, and winners of the annual 2018 Ultimate Collision Education Makeover school grants will be announced. The foundation will also announce the winners of both its Student of the Year and Collision School Instructor of the Year awards, celebrating the achievement of outstanding students training for a career in the collision industry and educators. Industry members will also have an opportunity to meet and greet attending collision school instructors and students. Collision Repair Education Foundation Director of Develop-

ment Brandon Eckenrode said, “Now more than ever, collision school programs need the industry’s support, and we welcome the industry to join us during this re-

ception to not only recognize our current industry partners and participating schools, but also showcase opportunities of how others can get involved with us to fuel the future of the industry.” Industry members are asked to RSVP online for the reception. (http:/bit.ly/CREFSEMA18). Questions regarding the reception and/or the Education Foundation’s efforts to support the future of the collision industry can be directed to: Brandon.Eckenrode@ed -foundation.org or 312-231-0258. Additional details of the event will be made available as the date approaches.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

DEL GRANDE DEALER GROUP San Jose main distribution center with remote distribution centers in Sunnyvale, Fremont and Concord! Capitol Buick GMC Russ or John

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Del Grande Dealer Group is a repeat San Jose Mercury News Top Work Place award winner.

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CapitolSubaruParts@dgdg.com 24

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

All DGDG dealers are now participating in PartsTrader.

DGDG Collision Parts Center The largest family-owned automotive group in the bay area. Speak with any of our wholesale parts professionals and you will see what everyone is talking about. From up to date inventories tailored to your specific needs, to multi-level product support to get you through a job start to finish, we will go out of our way to exceed your expectations.

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OakTreeMazdaParts@dgdg.com autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

In Las Vegas, 96 Percent of Passengers Would Use Lyft’s Self-Driving Car Again

ASA Northwest Celebrates 9th Annual Family Fun Night

by Staff, Intelligent Transport

by Chasidy Rae Sisk

Lyft and Aptiv have announced that 5,000 self-driving rides have been completed in Las Vegas, NV, with 96 percent of passengers indicating intention to ride again.

In January, the autonomous program was launched at the 2018 Consumer Electronics Show (CES) and extended into an ongoing transport mode for Las Vegas in May, consequently launching a fleet of Aptiv self-driving vehicles into the network. The average passenger rating has been calculated at 4.96 out of five, with 20 percent of passengers already experiencing their second or third self-driving ride. “Lyft is the largest network currently deploying a commercial autonomous program to the public,” said

Raj Kapoor, Lyft’s chief strategy officer. “We’re committed to redefining our cities around people instead of cars, and our partnership with Aptiv is helping make this a reality.” The self-driving rides work exactly like standard Lyft rides: If a passenger is in range when a vehicle is available, they request to ride and pay via the Lyft app. “Hitting 5,000 consumer rides is a major milestone, not just for Aptiv and Lyft, but for the entire mobility space,” said Glen De Vos, CTO of Aptiv and president of Aptiv’s Mobility and Services group. “This is a first-of-its-kind commercial self-driving program, and we are proud to be offering autonomous vehicles for public use. We continue to see exponential growth in passenger rides, with nearly perfect user ratings. Our partnership demonstrates the viability of our commercial selfdriving product, creates better efficiency for transportation network providers and offers consumers safer and more accessible transport.” We thank Intelligent Transport for reprint permission.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

On August 23, ASA Northwest hosted its 9th Annual Family Fun Night at Cheney Stadium in Tacoma, WA, as the Tacoma Rainers took on the Reno Aces.

party deck where we enjoyed a BBQ buffet with hamburgers, hot dogs, baked beans, potato chips and ice cream bars.

More than 120 ASA Northwest members participated in the association’s 9th Annual Family Fun Night

ASA Northwest’s Family Fun Night included a baseball game and a BBQ buffet on the group’s private party deck

ASA Northwest President and Executive Director Jeff Lovell stated, “We had over 120 members join us at our 9th Annual Family Fun Night, and it was a beautiful evening to watch the Tacoma Rainers win 3 to 0 on our own private

“It’s always great to see the kids get foul balls, laughing and enjoying the game. Thank you to everyone who joined us for this event!” For more information on ASA Northwest, visit asanorthwest.com.

www.autobodynews.com

UPDATED DAILY

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Top Automakers Committed to Advanced Technology by Elana Ashanti Jefferson, Property Casualty 360

In insurance, as well as the many industries, investments and individuals who rely on it, three “mega-trends” continue to force customer service and product innovations:

the Internet of Things (IoT), sensor and camera technology are driving dramatic change and improvements in automotive technology. And these

among the largest markets for vehicle sales in the world • A strong economy and low unemployment in the U.S. continues to

• Artificial intelligence (AI) • Mobility • The Internet of Things

These three themes punctuated a recent webinar hosted by CCC Information Services titled “Driving Change: How artificial intelligence and smart technologies are revolutionizing our industry.” Led by CCC’s Industry Analyst and Director Susanna Gotsch, who’s also a regular contributor to PropertyCasualty360.com, and CCC’s Senior Vice President of Product Management Jason Verlen, the presentation looked at how advanced technologies are changing the insurance business, most notably the auto insurance business. “Advances in digitalization, artificial intelligence, machine learning,

advances are creating a ripple effect throughout the entire automotive ecosystem,” Gotsch wrote in the CCC report “Crash Course 2018,” which she referenced during the webinar. Consider that: • In 2017, over 90 million vehicles were sold globally • The United States continues to be

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

drive consumer interest in vehicles with such high-tech bells and whistles as WiFi and advanced driver assistance systems (ADAS) ADAS-equipped vehicles in particular—meaning those that automate, adapt and enhance vehicle systems—are reshaping the way auto insurance is sold and auto accident claims are handled. Among the many

reasons why: “ADAS-equipped vehicles have a lower percentage of frontend accidents,” Gotsch said during the CCC webinar. “Accident frequency will reduce over time, and the industry will see fewer accidents.” In the event of an accident involving an ADAS-equipped vehicle, however, these intelligent technologies may lend themselves to tricky liability questions. Seeking Out Safety How can consumers and insurers decipher which new vehicles feature the latest ADAS technologies? In 2017, the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) tackled that question by monitoring automakers that have committed to installing automatic emergency braking (AEB) as a standard feature. Twenty automakers have pledged to voluntarily equip virtually all new passenger vehicles with a low-speed AEB system by 2022. Together, these See Advanced Technology, Page 75

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Stacey Phillips is a freelance writer and editor for the automotive industry. She has 20 years of experience writing for a variety of publications, and is co-author of “The Secrets of America’s Greatest Body Shops.” She can be reached at sphillips.autobodynews@gmail.com.

Shop Strategies with Stacey Phillips

Leadership Development, Process-Centered Environment Enable TX Shop’s Business to Grow Courteous, professional and highquality—these are some of the words Leila Bates said customers have used to describe the work provided at Bates Collision Centers. This year, the business received the Baytown Sun Readers’ Choice Award for best body shop for the eighth year in a row. Leila said they were honored to receive the award

ing floors. His ultimate goal was to own a shop of his own. Meanwhile, I was going to college and working part-time when we got married in 1989. A year later, we decided to open our first location in Baytown. We experienced some good growth our first year, so we relocated to a larger facility in 1991, which we currently operate today. We also opened a second location in the neighboring community of Channelview, TX, in 2003.

ters?

Bates Collision Centers established the Community Give Back Program eight years ago

and will continue to work hard to fulfill their mission to be the collision center of choice for customers in the Bay area of Texas. Autobody News recently talked to Leila about Bates Collision Centers and learned about some of the unique ways the company gives back to the community. She also shared how they use a process-centered environment and leadership training to facilitate the business’s growth, retain employees and offer customers exceptional service. What prompted you and your husband, Lee, to open Bates Collision Centers 28 years ago?

Lee had a lot of wrecks while he was in high school; he was in double-digit accidents before he graduated. At some point, his dad told him that if he continued getting into accidents and wrecking his cars, he was going to have to fix them. He went off to college and was doing well, but decided he wanted to focus on something else. He always had an interest in cars and his dad encouraged him to get involved in the automotive industry. Lee ended up working at a dealership in his college town, San Marcos, TX, sweep-

What is your main role and focus at Bates Collision Cen-

My official title is vice president, although as in most small companies, you wear a lot of hats and have to address the different phases of your business. I also handle CFO responsibilities for Bates Collision Centers, and both my husband and I are very involved in marketing efforts and community involvement.

Q: A:

What type of marketing have you found to be beneficial?

When we opened our business, we were operating on a shoestring budget and had to find ways to create awareness about the services we offered. Although we have a pretty good Facebook presence now, we spent a lot of time over the years getting out into the community. I’m on the board of directors with the Baytown Chamber of Commerce, we’re both active in the Chambers of Commerce in the areas where we have our locations, Lee is a Rotarian and we’re big supporters of the Relay for Life. About 15,000 people attend that event every year to raise money for The American Cancer Society. Creating top-of-mind awareness with the local insurance agents has also been a longtime focus of ours, and we’ve done this with creative contests like an annual pumpkin carving contest, offering continuing education classes quarterly at our shops and other fun contests and visits to their offices.

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

What are some of the unique ways you have given back to the community?

Baytown is where my husband and I grew up and went to school. All of our friends and family live here. After opening our business, we received sponsorship requests all the time. Eight years ago, we decided to put together a more structured program called the Community Give Back Program. Organizations can now contact us to give to their program year-round, and Bates Collision Centers donates 3 percent of a customer’s repair total to the local nonprofit organization of their choice. Whether the money goes to a school, church, the wetlands center or an upcoming event, the donation is made in the customer’s name.

Since launching the program, we’ve found that it has allowed us to get involved in the community and show our support in a more organized fashion rather than be reactive to every donation request we receive. We are dedicated to making a positive difference in the lives of others by supporting our community and the people who live here. We also give out a responsible parenting award as part of a benevolence program we set up in 1998. Bates Collision Centers presents “new” used vehicles to deserving families every holiday season. Our employees volunteer their time to refurbish a vehicle from each of our centers and fill it with gifts such as toys, gas cards, car seats and food for the family. The vehicles are then presented during a special awards ceremony and holiday reception held in See Leadership Development, Page 88

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Cover

Overtime Laws

time law, an employee in that state will receive the state’s minimum wage while being paid overtime under federal provisions. Farrington stressed, “Employers must be familiar with the state laws in every jurisdiction where they operate.” Although overtime is often viewed as a reward for an employee who works a long week, Farrington explained, “It is actually a penalty on the employer for working an employee over 40 hours. Overtime is paid out at one and a half times the employee’s regular rate of pay for hours worked over 40 hours in a workweek. The primary purpose of overtime is to spread employment because the government wants you to work more people for fewer hours. It is meant to be punitive, cost you money and be difficult to comply with.” Clarifying that a fundamental principle of overtime is that “each workweek stands alone,” Farrington defined a workweek as a “fixed and

recurring period” of seven consecutive 24-hour days that may not be altered unless it is being changed permanently. However, daily overtime is not required under FLSA, which means an employer can schedule employees within the workweek as they see fit, moving hours around to minimize overtime. Averaging workweeks is forbidden, even if the employer pays bi-weekly. For example, an employee who works 48 hours one week and 32 hours the next is still entitled to eight hours of overtime for that first week. Paid time off does not count toward overtime. If an employee utilizes eight hours of vacation, sick or holiday pay, they will be paid for 48 hours, but since only 40 hours were actually worked, there is no overtime due. “Overtime is based on time worked. Only hours that are actually worked beyond 40 hours count toward overtime,” Farrington said. Overtime must also be paid at an employee’s regular rate, which is the employee’s total remuneration for employment within the workweek divided by the total number of hours

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

worked. This means that overtime must be paid on the employee’s base rate and all compensation, including bonuses and commissions. Farrington explained how to calculate overtime on bonuses and commissions on a monthly or quarterly basis. Hours worked is defined as all time the employee is required to be on the employer’s premises, all time the employee is required to be at a prescribed work site and all time the employee spends in activities that benefit the employer. Because management has the total power to control, schedule and require the hours worked, it is therefore completely management’s responsibility to record and pay for hours worked, meaning an employer must pay for overtime even if it is unauthorized or unknown. “Make sure it’s a proactive management responsibility to see that employees record and are paid for hours worked,” Farrington stressed. Meals are not required by FLSA, but if they are given, they do not need to be paid as long as these three conditions are met: the break is long enough for the employee to consume a meal or use the time for their own

purposes (typically 30 minutes), the break is uninterrupted and the employee is relieved from their duties during the break. It is important to note that many states have requirements pertaining to lunch breaks. While short 15-minute breaks are not required by FLSA, they must be treated as paid work time when given. Noting that there is an overtime exemption for most employees paid on flat rate hours, Farrington explained that overtime is not required for “salesmen, parts men and mechanics” employed by a “dealership,” which is defined as an establishment that derives over 50 percent of its gross revenue from the sales of automobiles, trucks or farm implements. Farrington continued to describe another applicable exemption for establishments that do not derive 50 percent of its revenue from selling vehicles. Employees are exempt from overtime if the following three conditions are met: They work for a retail establishment, their regular rate is more than 1.5 times the federal minimum wage, and they are paid primarily (more than 50 percent of their earnings) by commission.

A retail establishment is considered such under FLSA if 75 percent of its income is derived from retail sales and sales made to the general public. In a collision shop, this means individual customers, even when the insurance company is paying. The three common types of nonretail income are income from work on heavy trucks (16,001 pounds or more) or specialized equipment; income from fleet work, where work is done for a fleet customer pursuant to a contract or agreement and where the customer gets a fleet discount; and income from sales for resale, in which a dealer engages a shop to refurbish a used car that the dealership then sells, or a dealership farms out its body work to a body shop. In each case, income to the shop is non-retail. If these types of income constitute more than 25 percent of the business’s income, it is not eligible for the exemption. Farrington provided several examples of how these requirements can be analyzed. He also explained the benefits of drawing against commission. He warned, “The danger is if the draw is so high that the employee

never gets commission. Then, the courts will determine that is a salary, not a commission. For example, techs paid on commission of 40 percent of labor draw $700 per week. Commissions are settled at the end of the quarter. At the end of the first quarter, employees generated $25,000 in labor charges and have therefore earned $10,000 in commissions at 40 percent. The employee has drawn $9,100 ($700 x 13 weeks), so at the end of Quarter 1, the employees get another $900 in excess commissions above the draw. “Employers should ensure that regular payments to employees are not considered salary payments. The best way to do this is to carry forward any deficits (amounts by which draws exceed commission), and charge them against future commissions,” Farrington suggested. “For instance, say the commissions had been $9,000 for the quarter. There is a $100 deficit, so it gets carried forward to the next quarter and subtracted from Quarter 2’s commission. “Under this system, a fixed number of hours are attributed to a particular job, regardless of how long it actually takes to do the job. The cus-

tomer pays for the number of hours to the shop at the labor rate, and the technician receives money so what they receive is a function of what the customer pays, and that’s a commission. A painter or mechanic may work for seven, eight or nine hours in a day and still receive credit for 10, 11 or 12 flat rate hours, depending on how much work is done and regardless of the actual time it takes to complete a certain job.” As his presentation came to a close, Farrington emphasized the importance of engaging legal counsel that is familiar with your specific state’s legal requirements. Molla stated, “Ignorance of the law is no excuse. Seek competent legal advice when in doubt.” For more information on ASA, visit asashop.org.

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ACA’s Bill Hanvey Testifies on 301 China Tariffs

Auto Care Association President and CEO Bill Hanvey testified August 23 before the U.S. Trade Representative (USTR) in Washington, D.C. on the latest proposed tariff list on imports from China. Hanvey warned the administration that the cost of an additional tariff would cause severe economic harm to the U.S. automotive industry and U.S. consumers. The tariffs are part of USTR’s Section 301 investigation to address unfair acts, policies and practices by China that are related to technology transfer, intellectual property and innovation. “The greatest impact from this action will be on U.S. consumers who will experience higher repair costs, likely leading to the delay of critical vehicle maintenance procedures that may result in serious highway safety concerns,” Hanvey said in his testimony.

www.autobodynews.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Industry Insight with John Yoswick

—John Yoswick is a freelance writer based in Portland, Oregon, 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.

‘Who Pays for What?’ Surveys Illustrate Shops’, Insurers’ Practices for Scanning Vehicles Two recent “Who Pays for What?” surveys offer a glimpse into shops’ and insurers’ practices related to vehicle scanning. The most recent of the quarterly surveys found that of more than 500 shops that responded from across the country, 78 percent said they are paid “always” or “most of the time” to conduct post-repair “health scans” of vehicles by the country’s eighth-largest auto insurers. That’s up significantly from the 64 percent in the same survey a year earlier.

There was an even bigger jump in the percentage of shops reporting they are being paid regularly for prerepair vehicle scans. Though the percentage being paid regularly is a bit lower (71 percent) than those reporting being paid for post-repair scans, it is still up 20 percentage points over a year earlier.

supplies, is open throughout October. Shops can go to https://www.crash network.com/collisionadvice to take the current survey before Nov. 1. Last spring’s survey found that more than half of shops say they conduct scanning in-house, using their own equipment. Of those, about 1 in 4 charge a flat fee, and just over 40 percent charge one labor hour (or less) at a mechanical labor rate. The remaining 35 percent of shops conducting scanning in-house were all over the map—some charging up to two hours at a body labor rate, some charging more than one hour at mechanical labor rate, a few not charging at all and some saying the charges vary by vehicle. That particular “Who Pays” survey focused on “not-included” body repair operations. It found, for example, that compared to the same survey in 2016, more shops are seeking (and receiving) payment for the notincluded process of duplicating the OEM texture of seam-sealer. “Although the labor to apply seam sealer on a welded-on or bolted-

Most shops conduct vehicle scanning in-house, using their own equipment, according to a “Who Pays for What?” survey earlier this year; almost 30 percent use a remote scanning service, but less than 3 percent said they do not scan vehicles at all

A “Who Pays for What?” survey earlier this past spring found that fewer than 3 percent of shops said they are not scanning vehicles at all. There are four “Who Pays for What?” surveys per year, each focusing on different aspects of the collision repair process. The surveys are conducted by CRASH Network and Mike Anderson of Collision Advice. The current survey, which asks shops about their billing practices—and insurer payment practices—related to aluminum repair and various shop 34

on part may be included (depending on which estimating system you use), the additional labor required to match the OEM appearance is not included and can be very time-consuming for the technician,” Anderson said. Two years ago, more than 50 percent of shops surveyed said they had never charged any of the eight largest national insurers for the additional labor time to match the OEM texture of seam-sealer. The same survey this year showed that number has dropped to about 43–46 percent,

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

meaning more shops are charging for this procedure. Similarly, only 34 percent of shops two years ago said that when they did charge for the procedure, they were paid “always” or “most of the time,” but today, even with more shops billing for it, a higher percent-

ing,” Anderson said. Some of the other procedures asked about in the survey were:

• Replace vapor barrier. Anderson said it’s important for shop estimators or repair planners to check OEM procedures to determine whether the vapor

About 60 percent of shops report being paid “always” or “most of the time” for “replace vapor barrier,” yet the “Who Pays for What?” survey also found that nearly one-third of shops say they’ve never billed for that procedure when it was necessary and completed

age (40 percent) say they are paid “always” or “most of the time.” “Educating collision repair professionals is a big part of what these surveys are about, and findings like this indicate to me that that’s happen-

barrier is designated as a one-time use part and must therefore be replaced. “This is common if there are airbag pressure sensors in the door,” he said. In either case, labor to R&I or replace vapor barriers is a not-in-

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

cluded operation that 3 in 5 shops say they are regularly paid for when it is necessary. About one-third of shops, however, haven’t sought to be paid for this labor.

• Labor to gain collision access. “It is very surprising to me that, in most regions of the country, 25 percent of shops have not sought to be paid for this,” Anderson said. “It has been my experience that it is not uncommon for a collision technician to need to cut an access hole to remove components from a damaged door, for example, or to get the latch open when the hood is damaged.” Anderson believes more shops would seek to be compensated for this labor when it is necessary and performed if they knew, as the survey in April found, that 54 percent of shops that bill for this are paid for the procedure always or most of the time. • Clean up old urethane. When glass is removed, there’s often labor required to remove or level the old urethane left behind. The “Who Pays” survey found that more than one-third (37 percent) of shops who bill for it

said they are paid always or most of the time for this procedure when it is necessary, yet more than half of shops have not sought payment for it. Four out of five shops that participated in the “Who Pays for What?” survey series reported that they have

are required as part of the repair. About half of participating shops (46 percent) also said they have shared the survey results with insurance representatives, and more than 1 in 10 have occasionally shown the results to vehicle owners. Others have

Of the eight insurers asked about in each “Who Pays for What?” survey, six are more likely to pay their DRP shops for the “replace vapor barrier” procedure, but Progressive and GEICO tend to more regularly pay shops outside their DRP for it

been able to use the surveys and the results to improve their business. Most (about 75 percent) said they use the surveys as a regular reminder of procedures that are “not-included” in the estimating systems and to train their staff about “not-included” procedures they could be charging for when they

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

even shared the results with state regulators. The surveys, now in their fourth year, have consistently indicated that whether or not a shop gets paid for various procedures depends largely on whether the shop includes the item on estimates or invoices. One

independent shop owner from New York confirmed this. “I was an insurance company staff adjuster for over 20 years, and as a staff adjuster you were instructed not to give if the shop doesn’t ask for it,” he commented with his survey responses. Shops can take the current “Who Pays for What?” survey (or sign up to be notified about future surveys) at www.crashnetwork.com /collisionadvice. The four different surveys, conducted at one per quarter, each take about 15–25 minutes, and Anderson said they should be completed by the shop owner, manager or estimator who is most familiar with the shop’s billing practices and the payment practices of the largest national insurers. Individual responses are not released in any way; only cumulative data is released. On the website, shops also can download the results of previous surveys, reports that break the findings down by region, by insurer and by DRP vs. non-DRP. The reports also include analyses and resources to help shops better understand and use the information presented.

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Cover

State Farm Settles

Illinois Supreme Court. (A record $9 million was spent on the election that Judge Karmeier ultimately won.) Further, it was alleged that a State Farm attorney actually was the individual who recruited Karmeier and had discussions about the case with his campaign manager. This new evidence persuaded the federal judge to agree with the plaintiffs, and despite State Farm’s objection, the federal case was allowed to continue to a jury trial. The federal case included civil racketeering claims and claims of fraud. Essentially, plaintiffs alleged that State Farm recruited and funded Justice Karmeier’s 2004 campaign to be elected to the Illinois Supreme Court without revealing it. Further, the plaintiffs alleged that this was done for the purpose of getting a favorable ruling in favor of State Farm in the appeal of Avery. On August 5, 2013, the plaintiffs in Hale v. State Farm told the

eral court was to begin, State Farm agreed to pay $250 million to settle the federal lawsuit (which now charged them with Civil RICO violations). The settlement will provide benefits to more than 4 million current and former State Farm policyholders who were members of the class in Avery. Obviously, the settlement saves State Farm from any further transparency and humiliation that would result from the case going to trial. Most importantly, it prevents further monetary damage being inflicted upon them. The Avery case demonstrates that insurance companies can and should be challenged if they engage in unfair, unethical or illegal conduct. A low and unfair estimate can be challenged in small claims, civil court or a higher court. Tortious interference with your business is an actionable tort under the law that can be the basis of a lawsuit. Defamation is also a serious allegation that can affect your livelihood and reputation within your community, and that, too, is action-

federal judge that their “stated intention” was to ask Justice Karmeier to address the allegations in a deposition. The plaintiffs contended that State Farm violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, by using the U.S. Chamber of Commerce, the Illinois Republican Party and other entities or conduits to conceal its role in funding and operating the Justice’s campaign. RICO allows plaintiffs to sue persons or entities involved in a conspiracy to engage in improper activities such as bribery, fraud or violent crimes. State Farm’s motion to dismiss the above claims was denied and the federal court ruled that discovery and the case may continue. In 2016, the federal court certified the class, denied all motions to dismiss by State Farm and ultimately set a trial date for Sept. 4, 2018. State Farm denied the allegations and Judge Karmeier maintained that he didn’t know who or how much was given to his campaign. Indeed, prior recusal motions were all denied by Justice Karmeier. Moments before the case in fed-

able in court. Remember that insurance companies are for-profit businesses, and like any business, they want to lower costs and make as much money as they can. When they intrude in any significant way on your livelihood, it’s time to act! In the very near future, I will be holding seminars in which you can address any unfair or potentially illegal issues that you have had with insurance companies. They may include: steering, low or unfair appraisals, unfair or no negotiations, declaring vehicles totaled when they are fixable, defamation against you, your shop or reputation, tortious interference with your business, denial of PainTex accounting or any other issue that has damaged your business that you can prove.

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From the Desk of Mike Anderson with Mike Anderson

Mike Anderson is the president and owner of Collision Advice, a consulting company for the auto body/collision repair industry. For nearly 25 years, he was the owner of Wagonwork Collision Center, an OEM-certified, full-service auto body repair facility in Alexandria, VA.

Are You Upgrading Your Shop’s Customer Service Experience? Or Losing Out to Shops That Are? First, just a quick note to say I appreciate Autobody News offering me an opportunity to share some of my thoughts, opinions and ideas with you here. I know many of you may have only an occasional chance to attend one of my presentations or classes, so this is a way for me to try to offer you some information every month. I’ve been thinking a lot lately about a term I first heard from Mark Fincher at CCC Information Services: “liquid expectations.” What it means, in a nutshell, is that your customers and potential customers aren’t comparing their experience interacting with your shop based solely (or even at all) on their experience with another body shop. They’re actually comparing it with their experience with other types of companies. Think about it: You can book a hotel room or airline ticket any time

RN SOUTHE

of day or night. Order almost anything from Amazon (24/7) and it likely can be delivered in the next day or two—often with free shipping. You can use OpenTable to make a restaurant reservation in the middle or the night, and the large movie theater chains enable you to buy tickets in advance online. Have you picked up a rental car from an airport recently? You likely could walk straight from the plane right to a designated parking space where your car was waiting with the keys in it – with no stop at a rental counter. Are you offering any type of conveniences like this? I’ve been told as many as one-third of consumers want (or even expect) to be able to do business with you outside of business hours. Are you making that possible? Or are you at risk of losing those potential customers to shops that understand the customer experience they

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want? Can your customers go online in the evening or on weekends and book an appointment for an estimate or to drop off their car? CCC’s “CarWise” is just one of the ways you can enable this. Customers can punch in their zip code to see a listing (and possibly reviews) of shops in their area. But go to the site and you’ll see only some shops have it set up to also allow a customer to click a “Schedule Appointment” button to see what appointment days and times are available and book online. A potential customer might not think to go to the CarWise site if they already know your business. So some of the shops I work with have the CarWise appointment scheduling system embedded right into their own shop website. Do your customers have to be at the shop to sign a paper document to

authorize repairs? Or do you offer them the option of providing an electronic signature remotely? As you walk around a vehicle to check for prior damage, are you still using pens to mark the damage on the car, or are you capturing that information electronically? I know there’s lots of controversy about photo estimating, and I absolutely agree that you can’t write an accurate complete estimate from photos. I also know estimating by photo is not legal in some states. But with those limitations in mind, does providing photo estimating offer you a way to start the process with a potential customer who doesn’t find it convenient to come in for that initial step? Another client of mine has a two-minute video on their shop’s website that walks the customer through the process of shooting See Service Experience, Page 72

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Cover

SEMA 2018

pair category has increased significantly. We’ve learned that attendees from this category are finding unique value in the show via the widespread product offerings within their “home” category of collision repair, but also among the nine other sections of the show.

What are some new and exciting things that will be taking place at 2018 SEMA?

As the industry changes, so, too, does the SEMA Show. In a lot of ways, a trade show like the SEMA Show is a reflection of the industry it serves. Our collision section includes more manufacturers than ever. This year, we have over 200 exhibitors in the collision repair section alone and more than 250 in related sections like tools and equipment. Overall, we expect more than 2,400 exhibitors at the 2018 SEMA Show. Among the new features at this

year’s SEMA Show are features from Hoonigan, Polaris, Kia and Mahindra. We’re also expanding the Monday Vehicle Reveal, which debuted last year, to give media a sneak peek at some of the vehicles from the SEMA Show and an opportunity to hear from the builders. Additionally, the annual SEMA Awards, given to the top trending vehicle models in five categories, will be presented during the SEMA Reveal on Monday. In addition to awards to the top car, truck, 4x4/SUV and sport compact, an award will be presented for the first time to recognize the Powersport Vehicle of the Year. Another big change for this year is the location of the after-party, known as SEMA Ignited, and the SEMA Cruise route. On Friday, after the show closes, all the vehicles from the SEMA Show exit the convention and make their way to SEMA Ignited. Because of construction at the Las Vegas Convention Center, the cruise will have a new route and the after-party will take place at what is known as the Platinum Lot, which is on the east side of the con-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

vention center on Swenson Street, between Desert Inn road and Sierra Vista Drive.

Q: A:

How can attendees get maximum value out of the show?

Don’t just show up; plan in advance. Reading this article is a good start, since it means you’re thinking about what you need to do and how to get around the show. We recommend that attendees attend all four days of the SEMA Show. One badge allows access to each day of the event, so it’s actually the most economical. Aside from not having to rush through the show floor, attending every day ensures that you won’t miss a single thing. Every day features new events, conferences and networking opportunities. The show provides attendees an overall experience that includes more than 100 educational sessions, most of which are free of charge. The complete list of events is on www.semashow.com. Also, visiting the No. 1 destination at the SEMA Show, the New

Products Showcase, is essential because it is where an attendee can see the hottest products hitting the aftermarket. In addition, we have worldclass education (visit www.sema show.com/education) and networking events that attendees can benefit from.

What are some tips on how to cover as much territory at the show as possible?

The online floorplan (www .semashow.com/floorplan) is a great tool that an attendee can use to identify where exhibitors and features are located in order create a plan to navigate the show. The official SEMA Show Mobile App enables you to create a schedule, gives you access to the floorplan and helps you locate exhibitors and browse educations session, networking events and conferences before and during the show. Attendees can also stay up to date with the latest SEMA Show happenings by reading SEMA eNews each week and by following the official SEMA Show social media accounts.

Q: A:

What are some tips for surviving the show?

With more than 1 million net square feet of booth space at the SEMA Show, a comfortable pair of shoes is essential, as is having liquids with you at all times to remain hydrated. Items like business cards, hand sanitizer, mints and a bag to carry them in will make networking a comfortable experience. We have sectionalized the show into 10 business categories. Work the section where you have the most interest first, and then move on to other areas. Also extremely essential is being familiar with the location of amenities such as food, restrooms and pickup locations for transportation services. Given the Gold Lot’s unavailability due to construction, parking at the 2018 SEMA Show will be even more scarce, so knowing where taxi drop-off spots are located will be valuable. Using the Las Vegas Monorail is another great option to travel to and from the show. The monorail is fast and makes multiple stops, many of which are within

walking distance to most hotels.

How can attendees follow up once they get back from the show and get even more value from the event?

One easy way to follow up with manufacturers of the hottest products to hit the market is to use the scanners at the New Products Showcase to create a list of all the products you’re interested in. The list, which will be provided to you when you return your scanner, will contain key information to contact those companies. Also, have exhibitors scan your badge when you visit their booth. This will generate a list of companies visited that will be sent via email to the attendee after the SEMA Show. The list will provide access to their personal list of exhibiting companies and their contact information. Our technology keeps track of your visits and reminds you to follow up. Be sure to also visit the SEMA Association Center in the Grand Lobby to learn more about how you can connect with others in the indus-

try. Face-to-face time is more valuable today than ever before. The SEMA Show is the time to connect with others in the industry quickly and easily. SEMA can help, whether it’s through council events or an association activity.

Why is SEMA more valuable than other collision repair-related shows?

The SEMA Show is where the entire automotive aftermarket industry comes together to conduct business, so you’ll learn about crossmarketing opportunities and connect with more people than you will at any other trade show. The SEMA Show also partners with the Society of Collisions Repair Specialists, the leading organization for the collision industry. SCRS holds meetings at the SEMA Show, and they organize collision-specific seminars and workshops. Their partnership really brings a lot of value for the collision industry. Most important, we don’t try to mimic any other collision repair show; we offer a unique value proposition for

all our attendees.

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.?

If you wait until late October to make reservations to SEMA, what are some tips to get good hotel rooms, etc.? It’s never too late to register and attend the SEMA Show, but you obviously want to do so early so that your travel and lodging options are vast. Through our partner onPeak, we’ve negotiated travel discounts and secured reduced-rate hotel rooms to make the trip to Las Vegas affordable. A list of available hotels and other travel services for SEMA’s official travel partner is available at www.semashow.com/travel-andlodging.

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P HONDA CALIFORNIA

AutoNation Honda Costa Mesa

866-411-4759 714-434-5270 Dept. Hours: M-F 7-7; Sat 8-5 kleines@autonation.com

AutoNation Honda Roseville Roseville

800-262-3201 916-783-5628 Dept. Hours: M-F 7:30-6; Sat 8-5:30 autonationhondaparts@hotmail.com

Barber Honda B a ke r s f i e l d

661-396-4235 Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com

First Honda S i m i Va l l e y

888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com

Galpin Honda Mission Hills

800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin.com

Honda Cars of Corona Corona

800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com

ACURA CALIFORNIA

Acura of Fremont F re m o n t

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

Acura of Pleasanton Pleasanton

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

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Please contact these dealers for your Honda or Acura Genuine parts needs. CALIF O R N I A

CALIFORNIA

WA SHINGTON

Honda of Hollywood

Pacific Honda

University Honda

Hollywood

San D i e g o

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Auburn

800-371-3719 323-466-3205

858-565-9402

253-288-1069

jgardiner@pacifichonda.com

800-585-8648 530-758-8770

Dept. Hours: M-F 8-6 parts@hondaofhollywood.com

San Francisco Honda

Dept. Hours: M-Sat 8-6; Sun 8-5 dfortier@uhdavis.com

Honda of Oakland

415-913-5125

Oakland

Dept. Hours: M-F 8-5 partsws@sfhonda.com

San Fra n c i s c o

510-547-8047 Dept. Hours: M-F 7-8; Sat 7-6

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Larry H. Miller Honda

Scott Robinson Honda

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Honda of the Desert Cathedral City

760-770-0828

Sel m a

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Dept. Hours: M-F 7-6; Sat 7-5 mpartridge@honda111.com

Dept. Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall.com

Larry Hopkins Honda

Sierra Honda

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Monr ov i a

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McCurley Integrity Honda R i ch l a n d

800-456-6257 509-547-7924 Dept. Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley.net

Dept. Hours: M-F 7-6; Sat 8-5

South Tacoma Honda

N E VA D A

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Findlay Honda

Ta c o m a

L a s Ve g a s

702-982-4260

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Dept. Hours: M-F 7:30-6; Sat 8-5 bgregory@southtacomahonda.com

Findlay Honda Henderson Henderson

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Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com

Dept. Hours: M-F 7-6; Sat 8-4 parts@sierracars.com

Metro Honda

South Bay Honda

Montclair

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877-475-1142 408-324-7460

Lithia Honda of Medford

Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com

Dept. Hours: M-F 7:30-5 parts@southbayhonda.com

888-471-7445 541-770-3763

Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com OREGON

M e d f o rd

Dept. Hours: M-Sat 7:30-6; Sun 10-5 medfordhondaparts@lithia.com

Ocean Honda Santa Cruz

831-464-1800 Dept. Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz.com

CALIF O R N I A

AutoNation Acura of South Bay Torrance

310-784-8680 Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com

Bakersfield Acura Bakersfield

661-381-2600

CALIFORNIA

IDAHO

WA SHINGTON

Metro Acura

Lyle Pearson Acura

Mont c l a i r

Boise

Fife

800-446-5697 909-625-8960

800-621-1775 208-377-3900

253-926-3331

Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com

Dept. Hours: M-F 7:30-6 acuraparts@lylepearson.com

Acura of Honolulu

Findlay Acura

Dept. Hours: M-F 7:30-5:30 bakersfieldacuraservice@yahoo.com

Henderson

866-931-9086 808-942-4557

877-770-5873 702-982-4160

Marin Acura

Dept. Hours: M-F 8-5; Sat 8-4 Johara@lithia.com Tokuda@lithia.com RayleenGarcia@lithia.com

Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com

Corte Madera

Dept. Hours: M-F 7-6; Sat 8-5 johnny@hinshaws.com

N E VA D A

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Dept. Hours: M-F 8-5:30; Sat 8-4 parts@marinacura.com autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Tips for Busy Body Shops with Stacey Phillips

The Power of Peer Groups and Why to Join One To address this challenge, espeManaging a collision repair facility today requires an owner to wear many cially for a growing body shop, Keller different hats and have a great deal of recommends that employees get inknowledge, according to Jim Keller, volved in organizations to build relaCEO/president of 1Collision Network tionships and become the best they based in Milwaukee, WI. can be to help steer the business forThose roles might include CEO, ward. The industry veteran has held a COO, CFO, VP of marketing, VP of human resources, estimator, parts variety of industry jobs over the past manager, repair planner and customer 40 years, including paint technician, dealer manager, entrepreneur, franservice representative. “Regardless of the size of the chisee, consolidator and most recently, founder of 1Collision Netbody shop, it’s very difficult work. Established in 2012, for one owner to be an ex1Collision Network is a netpert in each one of these work of independent and fields,” said Keller during dealer collision repair busihis recent presentation for nesses that work with insurDave Luehr’s Elite Body ers and OEs to properly Shop Academy. “We either have to rely on people to fill Jim Keller, founder repair collision damaged vethose positions or we have to and CEO/president hicles. During Keller’s presenknow all of this information of 1Collision Network ourselves, which I think is a very tation “The Power of Peer Groups,” he shared personal stories that were daunting and difficult task.”

“game-changers” for him and helped him operate his business more professionally and come up with strategies to address any challenges that he faced. Keller said it all starts by joining a peer group(s).

Q: A:

What is a peer group and why is it important to join one?

Wikipedia defines a peer group as both a social group and a primary group of people who have similar interests (homophily) in age, background or social status. The members of the group are likely to influence the person’s beliefs and behavior. Peer groups also contain hierarchies and distinct patterns of behavior. According to an article in the New York Times, the average person knows 600 people. If only 50 of those individuals each influence 50 of their

friends, that number grows to be 2,500 people with whom you can potentially connect. If 50 of those people influence 50 of their friends, that number increases to 5,000. With technology, the Internet and social media, we can now connect to people throughout the world without having to go anywhere. The more people you know and positively influence, the more successful you are likely to be.

Q: A:

What is your personal experience with peer groups?

The first individual who helped me understand the peer group concept was Bob Goff of Goff’s Collision Repair Centers in Wisconsin. He is a real innovator. His body shop wasn’t far from mine, and one day he walked into my business and invited me to a body

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shop association meeting. I didn’t really understand the concept of a body shop association at that time. I thought I was on my own and was going to run my business all by myself and make my own decisions. I thought it was really strange that this guy came in and approached me, but I went anyway. To me, it was a little intimidating to go into a room full of my competitors without even knowing them. I remember going that Tuesday night and being in a room full of body shop owners from around Wisconsin. They were great guys and were friendly toward me and made me feel at home. We saw a great presentation by Blackhawk and learned what the future held for the unibody car. It was very much like our industry is today with all of the technology we are facing. It was a revolutionary time in the industry. From that point on, I didn’t miss a meeting. It was one of the most powerful things that had happened in my professional life. I went from a guy who thought he was going to fix wrecks to a guy who saw there was a much bigger world with a much

bigger opportunity than there was within my four walls. Bob got me out of my shop and into seeing what is happening in the world. Over the years, I’ve been involved in many peer groups such as the Dale Carnegie Leadership Training, ARMS management workshop, the Collision Industry Conference (CIC) Total Loss Committee, Coyote Vision Group and CARA Collision Group, to name a few. The peer groups I joined met regularly, and we learned from one another. We visited one another’s shops and were able to reach the next level by sharing strategic information, data tricks and secrets.

Q: A:

What is the advantage of being part of an association?

I can’t imagine any professional in any industry not being a member of a trade association. I think it’s critically important. We don’t always think of an association as a peer group, but it actually is. I think everyone who is in the industry should belong to a national and a local association.

The Alliance of Automotive Service Providers (AASP), The Society of Collision Repair Specialists (SCRS) and the Automotive Service Association (ASA) are three of the primary national ones I recommend because they have the most events, education and publications available. Look at all three and determine the best fit with your culture. If you don’t have a strong local association in your area, then get involved in your state association or form one of your own. In the mid1980s I formed one in Milwaukee— the Milwaukee Collision Repair Association—because there wasn’t one where I lived. Talking to your peers locally can be really powerful. Now more than ever, I think associations need our support. With autonomous cars coming out, there are issues we are likely going to deal with, such as the legal challenges that will be the result of car accidents. We need to support those associations and organizations that support us. I understand that it can be challenging to make time to do that while running your business, but if you take the time to connect with people,

you’ll learn from one another. Every time you go to a meeting outside of your shop, you’re probably going to meet more people in the industry, whether it’s two people or 500. It can be extremely eye-opening and informative.

Q: A:

What is a master mind group?

I think Napoleon Hill explained it best in his book “Think and Grow Rich.” He said a master mind is when one or two people come together in a spirit of harmony. It is believed that when they come together they will engage a third, greater mind that will allow ideas to come to them. Today, a master mind translates to a meeting or conference between two people, such as the way boards of directors and senior staff get together to do business. The third mind represents the creative energy between two or more people who get together to improve something. A master mind could be two people coming together or a group of See Peer Groups, Page 54

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After the Donation: Kathleen St. John Gets a Car and a Job by Ed Attanasio

In some cases, cars donated by body shops come with vehicle insurance, gas cards or gifts from local retailers. But in Kathleen St. John’s case, it also came with a job. When Dino Di Giulio, the owner of Body Best Collision Center in Sonoma, CA, presented St. John with a completely refurbished 2003 Buick LeSabre in 2012, it changed her life in more ways than she could have ever imagined. For the last six years, St. John has been working at Body Best, a career path that began when she received her donated vehicle and her life started to improve. Di Giulio founded his car donation program in 2011 after looking for a way to help the community and pay it forward via the gift of transportation, he said. “I called my friend Jody Gatchell with A & J Collision to ask for help doing a car giveaway,” he said. “Jody had done a few, so I thought I would call the expert for tips and advice. He gave me lots of ideas, and I went to work on organizing my first car giveaway. But I was having trouble coming up with a name for my event—in fact, you could say I hit a wall.” A couple weeks later, Gatchell called Di Giulio on his way home from work and helped him to find the program’s name. “He said, I’ve thought of a great name for the giveaway–Wheels to Prosper!” Di Giulio said. “It was the perfect name, and believe me, I was grateful for Jody’s help. The name also seemed like it could be something bigger than one car giveaway at my shop, so I thought, what if Wheels to Prosper could become an entire movement? The word ‘prosper’ means to thrive, and that is what we wanted people to do after they received the car—thrive and grow as people.” Things took off from there, and today Wheels to Prosper is a nationwide program with 60 participating shops. “We get 3–4 new shops joining every year, and it’s become a wonderful experience. All of the shops do their car presentations on the same day, the last Saturday in July,” Di Giulio said. “We wrote the program’s map, and now many shops have made it a big part of their community out52

reach. We have helped single moms, teachers, military veterans and other people. Our goal is to find individuals who can use their vehicle to help others, and that is why we call it a handup as opposed to a handout.” St. John was in a bad way 11 years ago, she said, prior to when Wheels to Prosper changed her life.

In 2012, Kathleen St. John received a completely refurbished 2003 Buick LeSabre as part of the Wheels to Prosper program. The program was established in 2011 by Dino Di Giulio, owner of Body Best Collision Center in Sonoma, CA

“I injured my neck one day in 2007 as I was walking the dogs in a vineyard,” she said. “Being who I am, I waited to see a doctor who eventually had to fuse four discs together in 2010 and shortly after that, I was diagnosed with fibromyalgia. I was in pain and aching all the time like I had a real bad case of the flu and an odd assortment of painful symptoms that didn’t go away. As a result, I had to stop my massage business after going strong for almost a decade, which really broke my heart.” In 2011, St. John’s Toyota was tboned and towed to Body Best Collision Center, where it was deemed to be a complete total. For almost a full year, she struggled with her health and did not have a car to get to doctor’s appointments. One year later, a friend and neighbor asked her if she had any hopes for a car, which she didn’t. He told her he was writing to his friend Dino Di Giulio and offering her as a possible recipient for Wheels to Prosper. She was asked to write up a page listing all of her volunteer experiences and give it to him so he could send it to Di Giulio. After several other people wrote to Di Giulio about St. John explaining her situation and outlining her years of volunteer work, it all came to fruition in July of 2012 when Body Best gave away three vehi-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

cles—one of which went to St. John. “When they handed me the keys to that vehicle, it was a complete surprise, and my first thought was, ‘How can I ever pay these people back for this incredible act of generosity?’” she said. “So I told Dino that if his secretary ever gets sick, I’ll work for you for one week for free as my way of showing gratitude. I didn’t know if he would ever call me back, but it made me feel good to offer it and I knew that this was the right thing to do.” One month later, Di Giulio called St. John and offered her a parttime permanent job, and she said yes without hesitation. “I was praying for this and so happy when Dino called,” she said. “I am an outside sales person and I love it. I go out into the community and basically meet people. We get fresh cookies from a nonprofit called the Teen Center in Sonoma. I give them to insurance agents and local companies, and they love them. The organization keeps teenagers off the streets and teaches them a trade, so Dino is helping them as well.”

After receiving the car, St. John had to deal with colon cancer and then earlier this year, she lost her donated car when she was t-boned again on Lombard Street in San Francisco. But it didn’t dissuade or deter her from her journey, she said. “It’s been six years now, and I love every aspect of the job,” she said. “Everyone is so supportive and it helps me to reach out and touch so many wonderful people while representing a great company like Body Best. I’ve been blessed in so many ways in my 60-plus years on the planet, and this job is one of them.” Recently, Di Giulio found another vehicle for St. John, and after some mechanical work, she will be driving it as she continues meeting with people from Glen Ellen to Schellville on behalf of Body Best, she said. “Wheels to Prosper has enabled me to give back to Dino while giving me a purpose and a mission, and that’s why I love it,” she said. “The goal of the program is to give people cars so that they can pay it forward, and in my case, it’s done exactly that!”

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Continued from Page 50

Peer Groups

20 trying to figure out the next steps for the group. The bigger the group, the more ideas and opinions you’ll have and the more sharing you’ll do. You’ll find things move faster, decisions get made more accurately and effectively and everyone feels involved in the process. Whether there are two people or 20, if they feel like part of the team, it creates a great synergy for success. The key is understanding that two heads are better than one and can be a really powerful collaboration.

Can you share the human relations principles you learned from attending the Dale Carnegie program you attended?

If you are attending a peer group meeting, whether that’s with one person or more, it’s virtually guaranteed that you will learn more from that person or persons, they will like you more and you will probably capitalize on opportunities

from that relationship(s) more so than any other way by following these principles.

1) Don’t criticize, condemn or complain. 2) Give honest sincere appreciation. 3) Arouse in the other person an eager want. 4) Become genuinely interested in other people. 5) Smile. 6) Remember that a person’s name is the sweetest sound to them, in any language. 7) Be a good listener. Encourage others to talk about themselves. 8) Talk in terms of the other person’s interest. 9) M ake the other person feel important and do it sincerely. 10) The only way to get the best of an argument is to avoid it. 11) Show respect for the other person’s opinion. Never say, “You are wrong.” 12) If you are wrong, admit it quickly and emphatically. 13) Begin in a friendly manner. 14) Get the other person to say, “Yes, yes.”

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Q: A:

How can a performance group be beneficial?

A good performance group will demonstrate how to achieve a higher level of success than you could most likely do by yourself. These types of groups often provide training and coaching and help develop standard operating procedures (SOPs) for your shop. Many performance groups will track data on each shop, whether it’s financial, performance or both. Sometimes they even track marketing as well. You can then learn from analyzing the numbers in the group. Data can be really powerful for business growth, especially when you are sharing the information. Performance groups also offer 20 group-type meetings, purchasing programs and assist with insurance questions, I-CAR training and OEM certifications.

Q: A:

Are there other groups you recommend taking part in? There are also non-industry networking groups/organiza-

tions such as your local church, the Chamber of Commerce, Rotary, Kiwanis and Business Network International (BNI). Even the school PTA and athletic booster clubs can be good for networking. Overall, I’ve found that the business community can help grow your business after you get integrated in these types of organizations. They are very valuable resources. For more information about 1Collision Network, email info@1collision .net or visit http://1collision.com/ body-shop-partners/.

For more information about Dave Luehr’s Elite Body Shop Academy, email info@elitebodyshopsolutions .com or visit: elitebodyshopsolutions .com/academy.

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Honda Collision Parts Program Sets New Standard by Gary Ledoux

In the earliest days of the collision repair industry, when shop employees needed a replacement part they picked up the phone and called a supplier, quite often an OE dealer. Simple? Yes. Quick? Maybe. Efficient? Not necessarily if the shop needed multiple parts, some possibly hard to find, and had to keep calling until they were found. Starting in the early 1980s and still true today, the fax machine saved time and effort for both shops and parts suppliers. By around 2006, OEConnection was able to do something no one had done before—electronically connect OE dealers with body shops, allowing the two to communicate, the shop to order parts and the OE manufacturers to run a conquest or price-matching programs utilizing the OEC software. This was a win for everyone, including the shop, the dealer, the customer, the OE and the insurance company. Utilizing OEConnection’s CollisionLink® software, American Honda launched its Collision Select con-

quest program on July 1, 2009. The program ran very well for several years. The program reached its peak around 2016 when the number of transacting body shops reached a plateau and growth had ceased. So, in true Honda fashion, the Collision Marketing Group went “to the spot” to interview dealers and body shops all over the country to see what was going on. Here is what they heard:

• Shops and dealers said, “It is taking way too much time to conquest parts.” In other words, after the estimate had been written using either aftermarket or salvage parts, it then became incumbent upon the OE dealer, using the OEC software, to contact the shop to negotiate the price of certain key OE parts to see if the dealer could change the shop’s mind about what parts to use. Ultimately, this resulted in more parts sales for American Honda and those OEs who followed this model, but it was more work on the part of the dealer and the shop. Plus, dealers were not always consistent using the

program, and the number of shops using CollisionLink® was somewhat limited compared to the size of the body shop network.

• Shop owners said, “Give me your best price up front and let me make the decision. If I am in the middle of writing an estimate, I will use the OE part if I can. If you have a conquest price, why should I have to wait for a dealer to get back to me when I am ultimately making the decision anyway?” Now, 10 years later, technology has brought parts procurement to the next level. American Honda is again on the cutting edge as the first OE to use CCC One to promote parts ordering at the time the estimate is written, rather than after the fact, and offers an MSRP or promotional price that is consistent across all participating Honda or Acura dealers. They have also made the program’s execution easier, quicker and seamless. It is already changing the culture of many shops that use it.

Here’s how it works: Shops using CCC One with the proper software engaged will be provided a list of parts suppliers for each part needed on an estimate. Depending on which parts suppliers have enrolled in the program and are using the software, the shop may see, for example, an aftermarket bumper cover, salvage bumper cover or an OE bumper cover from multiple OE dealers. In each case, the parts will have a price and availability listed. In the case of the OE part from Honda/Acura, each part number will show the MSRP price and a “Promotional Price” that will be the same no matter what Honda or Acura dealer is listed. Assuming the shop wants the OE part, it is then up to the shop to decide from which dealer to buy the part, depending on availability, the shop’s relationship with the dealer and the final price the shop will pay the dealer for that particular part. The program does not pit one Honda or Acura dealer against the other. The “Promotional Price” is what See New Standard, Page 72

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Media and Publicity for Shops with Ed Attanasio

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

Who Should Be Your #1 Audience for Your Advertising and Marketing? Depending on what part of the country you’re in, most body shops are highly dependent on their insurance partnerships (DRPs). Every once in a while, a shop owner or manager will ask me, “Why do we market to the consumer, when in the end we get most of our work through our DRPs?” It’s a logical question, so what is the answer? Should shops’ advertising and marketing efforts focus more on insurers than customers? Many of them must agree because some large shops are cutting back their marketing budgets and moving away from consumer advertising, such as broadcast, print, collateral, direct mail or various forms of online marketing. Is it a wise move or will it come back to hurt them down the road? Jim Keller, president of 1Collision Network, has heard the same question time and time again. His 45 locations nationwide are always aggressively marketing themselves to their DRPs under his organization’s direction. “We do a significant amount of marketing for our locations in addition to all of our many other programs and have seen positive results by developing unique programs catering to DRPs and agents,” he said. “Through marketing efforts that are specifically designed for both insurers and insurance agents, our shops are more likely to land a new DRP(s) when the opportunity presents itself, which can help drive revenue and the bottom line. Our performance system also enhances shop operations to gain more work from existing DRPs.” Pursuing and attaining OE certifications is another way to attract DRPs because it indicates to the insurer that a shop is committed to repairing vehicles properly and using OE procedures and recommended equipment. Keller said, “This is a huge opportunity for shops to get onboard because now we have four parties involved in the claim procedure: the shop, the customer, the insurance company and the OE car manufacturers. The certifications are becoming

recognized by the insurers, including those that have DRP programs. We make certain to promote our location’s OE certifications and I-CAR Gold Class status on their websites, social media, collateral advertising and other forms of marketing. A body shop with multiple certifications creates an added level of legitimacy and integrity, making that shop more at-

and bringing them donuts is not effective anymore,” Keller said. “We continue to have a strategy with the agents and make sure that we get enough touches per year with them because they’re the front line when it comes to the customers. We focus more on conveying a strong, relevant message through our marketing, and the results have been very positive. We stress

tractive to insurers, DRPs, agents and the consumer. We also believe certifications will aid in recruiting the better technicians to our shops because it ‘raises the bar’ within the industry.” An effective strategy for marketing to insurance agents is beneficial because in the end, a percentage of agencies will make referrals and often are connected to their clients. “At 1Collision Network, we have programs that we use to get in front of the agents and build relationships with them,” Keller said. “The biggest concern for any insurance agent is retaining their customers because they rely on those renewals, along with new customers, each year to grow their business. We believe marketing to agents is a necessary component to a solid marketing [strategy].” In the end, shops must address all parties involved—the consumer, the repairer, the insurer and the OE—when it comes to their marketing, public relations and advertising, Keller explained. “Yes, the OEs are becoming more important now, but the insurance companies aren’t going away. To be successful, we must cater to all parties involved, and to leave any of them out of the loop is short-sighted. Good companies adapt and change as the market changes and continually seek new methods and techniques to increase their visibility,” he said. Interacting with insurance agents remains an effective way to connect with them and harvest referrals, but that approach has changed as well. “Meeting with insurance agents

things like driving safety education, CE classes and the dangers of distracted driving programs, rather than social media messages about how to make the best cookies or what breed of dog is the best to buy. 1Collision has also developed a simple and effective policy retention program for agents that involves making the customer feel special, on behalf of the

“Meeting with insurance agents and bringing them donuts is not effective anymore,” — Jim Keller

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

agent, upon completion of the repairs at the point of delivery at the collision center. This has proved to increase agent loyalty and in turn, referrals.” When it comes to any effective form of marketing, Keller said that it all comes down to conveying your shop integrity and creating brand and name recognition. “When someone gets into an accident and contacts their insurance company, they will often ask about a shop that they’ve seen through the media or various forms of advertising,” he said. “If a shop has a positive, meaningful presence and continually leverages it, customers will inquire about that shop over others for obvious reasons. Having a strategic mixture of marketing and advertising will lend itself to strengthening the relationships with the DRPs. Being on their list is important, but that’s only the first step.”

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Toby Chess is an I-CAR program instructor, Training specialist, and former salvage yard operator. Toby is universally known in the collision industry for his work with first responders and advocacy for body shops and consumers. He can be reached at tcspeedster@gmail.com

Hey Toby! with Toby Chess

Plastic Bumper Repair Part 1: Adhesives Check out this ‘57 Chevy Impala. Look at all that chrome. The bumper had to weight over 200 pounds. The hood weighed another 150 pounds, and who knows what the rest of all of that steel weighed.

Let’s move forward to the 2018 Chevy Impala, which is composed of plastic headlamps, a plastic bumper, plastic grills and an aluminum hood. I would venture to say that all these parts would weigh less than the bumper on the ‘57 Chevy. A couple of months ago, I was at a welding at an MSO in Southern

California. A large bumper recycler had delivered six recon bumpers.

The parts manager inspected each recon bumper and rejected three. He took his pictures, ordered three new covers and had the estimator reflect the change in the estimate. I asked when he thought the new covers would be delivered, and he stated that it would be between one and three days. Sounded familiar. At another collision center welding, I saw this Audi Q5 rear bumper on a cart with damage to the left cor-

ner about the size of a basketball. I inquired why they didn’t repair the bumper. They said that it couldn’t be repaired and that they made more money on the new bumper. I asked them when they expected the new bumper. They didn’t know (the new bumper had been ordered six days earlier). The rear bumper was slightly under $400, and with their discount they would gross about $100. I told them they could have repaired the bumper and charged the carrier for five hours ($275 total sale and gross profit of $185), which would have translated to an additional gross profit of $125. Furthermore, the vehicle would have been in and out in two to three days instead of waiting for the new bumper. Granted, not every bumper can be repaired. I have a real hard time with the insurance appraisers, who attend a one-hour bumper class put

on by the equipment manufacturers, telling the shop how they can repair the cover. Let the shop professionals make the decision to replace or repair and compensate the shop fairly and not some arbitrary number they (insurance appraisers) pulled out of the air or even worse, a flat number of hours the insurance company will only pay. Let’s take a look at what a shop should do: repair or replace a bumper cover.

Here is a list you may want to look at prior to writing the estimate: • Repair cost vs. OEM new • Will repair allow from life time warranty? • Can the repairs be seen? • Will the repairs stand up to stress? • What does the OEM state about

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USI North America Paint Booth Plays Major Role in Shop’s Expansion Peter Sadabseng, former painter and current co-owner of Battle Born Autobody in Carson City, NV, knows that if he wants to expand, he will need to use top tier equipment and products to achieve his lofty goals.

A hands-on owner who isn’t afraid to do whatever it takes to succeed, Sadabseng acquired a USI North America drive-through spray booth for a wide range of reasons—and facilitating the growth of his business was a huge part of it.

Phouvay Sadabseng, the head painter at Battle Born Autobody, appreciates every aspect of what his USI North America spray.

“Every year we grow more, and we want to continue on that same path,” Sadabseng said. “By acquiring this amazing booth from USI, we are moving in that direction. We have only been using it for less than six months now, but we can already see that this is going to enable us to get to the next stage.” After working at another shop in Carson City for several years, Sadabseng, his brother Phouvay and two other associates partnered to open up Battle Born Autobody in 2013, he said. “For many years, a good friend of mine, Terry Layland, kept telling us that we should open our own shop. So, when we finally decided to go ahead, he was happy to invest in the company. We also brought on Steven Olivas, a body man, onboard because I had worked with him before and knew he was very talented. All four of us are hands-on owners, and that’s why we step in whenever needed,” Sadabseng said. Battle Born Autobody is now repairing 35–40 cars weekly and flourishing in a small

town with only 7–8 other collision shops. “I grew up here and know all of the other shops,” he said. “We are competitors, but we also work together because there is enough work to go around. To differentiate ourselves from the other shops, we have to stand out in the area of customer service. That’s why we are able to receive a ton of 5-star reviews on social media and get a lot of referrals as a result.” For many years, working with the local new car dealerships in Carson City helped improve the bottom line at Battle Born. “We are very loyal to the dealerships because they brought us a lot of business when we started,” Sadabseng said. “We do a significant amount of their lot work and repair cars that get damaged while being transported. They also refer us to their customers all the time, and that’s why we always come through for them—without them, we wouldn’t be here.” When Sadabseng began looking around for a spray booth, he only seriously considered two companies. But after seeing the USI North America booths in action, it was an easy decision, he said. “We called our paint jobber, and he confirmed that USI was a premier product,” he said. “They flew us out to California, and once we saw a few demonstrations, we were immediately sold. We watched two painters painting a car together inside the USI Chronotech, one on each side of the vehicle, and not one drop of paint got on either of them. So we could see that the air movement was incredible, and that’s why we never need blowers with this booth.” Battle Born is saving time and money with its USI booth, which makes it a win-win situation across the board for the busy shop.

Battle Born Autobody is growing and credits much of its growth to its USI spray booth.

“We’re saving time when it comes to baking these cars, and that is going to really help us even more when we grow this business,” Sadabseng said. “In addition, we are saving money on our gas bill with the Chronotech, which is huge. The efficiency of this booth is impressive and the

support that we’ve receiving from USI is outstanding.” By using USI’s online support system, the shop is able to stay up and running all the time and roll along at a steady rate. “We have only had to use it once or twice, and each time the solution was easy and straightforward,” he said. “Instead of waiting for someone to come here and figure it out, they helped us online, and 10 minutes later we were back up and running.”

(l to r) Steven Olivas, Terry Layland, Phouvay Sadabseng and Peter Sadabseng co-own and operate Battle Born Autobody.

Phouvay, the shop’s head painter, has quickly embraced every feature of their new USI booth, including the Easy Paint System (EPS) that automates every aspect of each paint job. “He loves it,” Peter said. “The EPS controls the entire painting process, so we don’t have to guess. Once we enter the information, the system goes for the most efficient process with each vehicle, saving us time, money and product. Phouvay started using it immediately and wouldn’t want to do it any other way now. As the collision industry changes, we need to be on the cutting-edge to stay competitive and grow, and our new USI booth is doing exactly that.” See us at SEMA Booth #11381 North Hall Collision Repair section. USI of North America Company Contact: Stefano Moretto s.moretto@usius.com (201) 405-7760

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Page 65

Plastic Bumper Repair

11A. After equalizing the twin tubes of epoxy adhesive, apply material to the hole (covered by the aluminum

tape). Make sure that pressure is applied when spreading the adhesive. You want the adhesive to be higher than the surrounding plastic, which will allow you to sand it down flush with the surrounding plastic (thus eliminating the need for additional adhesive).

12A Cover the hole with reinforcing tape. I add an additional strip of reinforcing tape at a 45 degree angle to the first strip. This method gives the repair additional strength. Apply adhesive to the repaired area and spread out the material.

15A. Apply a thin layer of epoxy finishing adhesive. Sand.

14A. Sand the front side of the repair with 220 grit DA and clean again with water-based wax and grease remover.

13A. Remove the aluminum tape from the front side after the adhesive has cured (20–30 minutes)

16A. Apply High Build Kent Primer. You can use the Revo light to cure the primer at this time. It takes about two minutes to fully cure the primer and be ready for final sanding. The bumper is now ready for the paint department. It should be noted that this whole repair, including the High Build Primer, was done in the body technician’s stall. Let’s look at the pros and cons of

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using adhesives. Pros: • Much easier to learn compared to Nitrogen welding • More than one tech can use materials at one time • No retraining if tech leaves • Faster than nitrogen welding • Start-up cost is considerably less than purchasing a Nitrogen Welder system • Materials are readily available • Faster cycle time • Charge out for materials Cons: • A greater chance of failure due to lack of training and not following manufacturers’ recommended procedures • Different material than the plastic • Repairs are very visible on the backside • Cannot repair small side brackets (hold bumper edge to fender and quarter panel • There are some limits to what can be repaired • Cannot charge out for materials

Tesla Opens Its First 9 Body Repair Centers by Mark Kane, InsideEVs

Tesla continues to evolve and adapt to the changing environment with its vertical integration of its offer over the entire value chain. One of the latest moves is the launch of its own body repair shops to solve the long wait times at 3rd party body repair shops in the Tesla Approved Body Shop Network. The idea is to achieve same-day body repairs. Currently, the first nine Tesla Body Repair Centers, envisioned only for light collision repair, are open in the U.S.: • Bellevue, WA • Dallas, TX • Eatonville, FL • Houston, TX • Las Vegas, NV • Marietta, GA • Owings Mills, MD • Van Nuys, CA • Villa Park, IL If the repairs overwhelm the Tesla Body Repair Centers or there are none in the area yet, consumers will be directed to a 3rd party body shop in the Tesla Approved Body Shop Network. Electrek cites an example

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(from reddit) of a well-executed repair at the Tesla Body Repair Centers. Hopefully, it will be the experience of all customers: “My Tesla was in and out same day with amazing service.” “He showed up at my work this morning with a loaner, had me sign a couple of forms and left with my car. “He texted me when my car arrived at their shop. He texted me to let me know they corrected my reported issue. He texted to let me know they noticed my Frunk latch was out of spec and asked my permission to fix it. And then he texted to let me know my car was ready and met me with it (washed and vacuumed.) A few minutes later, I was back behind the wheel of my fully sorted Model 3. “Tesla spent a fraction of what it would have cost to coordinate and hire a 3rd party body shop and a rental loaner—and the car was fixed by a knowledgeable Tesla employee who cares about their mission and their customers. “I’m impressed.” We thank InsideEVs for reprint permission.

Continued from Page 28

Advanced Technology

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Vision, Foresight Help Launch This PBE Jobber by Gary Ledoux

It was the mid-1940s. GIs were home from the war, the U.S. economy was booming and shiny new cars were filling America’s highways—cars that needed gasoline and service work. Only a few blocks from the downtown area in a primarily residential part of Nashua, NH, Vic Chaput opened Vic’s Garage, a Gulf station that also performed service, repairs and provided machine shop service. In typical fashion, the one work stall featured a drive-on pit to facilitate oil changes and other chassis work. Business was good. But in 1951, Vic had a vision that the parts business was the future, and so, being located on Pine Street, Pine Motor Parts was born. For his new business, Vic needed more enclosed business space and less open lot. That meant erecting a new addition to his building. But a customer and friend had a better idea. A local manufacturing company was diversifying and didn’t need all of

their building space, which was located only a few blocks away. Parts of that company’s building were physically moved down Pine Street— bricks, mortar, large wooden beams and all—and became the new Pine Motor Parts building. At the time there were only three, and a few years

later, four other auto parts jobbers in the entire city—all of them fairly small, family-run operations. All had their customer base, and all co-existed in relative harmony. It was also in 1951 that Vic’s son, Roger Chaput, joined the business and began working the front counter and helping out in the very busy machine shop. Through the 1950s and 1960s, the parts business was good … as was the machine shop business.

But by the end of the ‘60s, Roger could sense change in the air. Inevitably, cars would be built better and not consume so many parts at the blistering rate seen in the earlier ‘60s. There was talk in the industry of large, vertically integrated auto parts jobber chains taking over. Large companies were remanufacturing carburetors, starters and alternators faster and cheaper than could be done in their machine shop. Engines were better-built, so engine rebuilding and valve jobs would soon be a thing of the past. Roger looked around the industry, saw how well a local competitor was doing with paint and body supplies, saw a steady increase in the number of body shops in and around town and decided that was the direction his company should take. There was just one problem. Roger’s father, Vic Chaput, saw no reason to get into the PBE business. He had made his money in the mechanical field, parts business and machine shop business, and he was determined that his son would carry on that tradition. In time, Vic retired,

The right part makes the difference.

Roger bought his share of the business, and in 1976 Pine Motor Parts got into the PBE business with the Acme line of paint. Traditionally, auto parts jobbers had been selling paint and related products since the 1930s. By the 1970s, PBE jobbers would start to emerge. In fact, for the first time, in 1972 the Automotive Service Industry Association (ASIA) recognized PBE jobbers as a valid entity for the industry. Roger knew he was headed in the right direction. Also in 1976, Roger’s son, Dan Chaput, was fresh out of high school and had taken an interest in the paint side of the business. In fact, he had been hanging around a local body shop where the shop owner was also involved in auto racing. Young Dan was in his element there, fast cars and the smell of paint thinner. The shop owner showed Dan how to lay on a fresh, shiny coat of paint. There was a certain satisfaction that came with a well-painted car, and Dan wanted to learn all he could about body work. Soon, Roger and Dan had “the See PBE Jobber, Page 84

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Product and Process with Stacey Phillips

How the Recycled Part Procurement Process Continues to Improve When a typical collision repair facility orders an OE recycled part for a repair, Jim McKinney said there are three important concerns they likely have: price, timing and quality. “For true customer satisfaction, you must have all three,” said McKinney, owner of EZ-Management Solutions, during a recent CIECAst webinar. “Especially in the body shop business, cycle time is very, very important and has become a focal point. As a result, it’s critical from a recycler’s point of view that we meet all of a shop’s expectations.” Realizing that two out of three of these expectations were not being addressed in the industry, McKinney said his company set out to make a change. EZ-Management Solutions currently offers two cloud-based software products specifically developed for the automotive recycling process and is in the process of developing a third. EZ-Route plans and tracks deliveries of recycled parts, for example from a salvage yard to a body shop. EZ-Runner manages group trading from salvage yard to salvage yard, and EZ-QC is currently being built and brings all facets together. With more than 25 years of experience in the automotive recycling industry, McKinney shared information during the CIECAst webinar about the current challenges in the recycled part procurement process and how they are being addressed. In his presentation “How to Improve the Parts Procurement Process,” he also discussed the expansions of recycler groups to provide quality parts in a timely fashion and how software can play a critical role in the process. CIECAst webinars highlight topical industry issues and are held regularly by CIECA (Collision Industry Electronic Commerce Association). The association develops collision industry electronic standards, codes and standard messages and provides implementation guides for the collision repair industry.

Jim, can you tell us about some of the challenges today in the recycled parts procurement process?

There have been a lot of problems over the years where a body shop orders a part from us and it isn’t correct for some reason. It might be damaged, late or the wrong part in general. Although we have the ability to broker a part (if the insurer allows for brokered parts), the way it currently stands, in many cases we may not know if there is an issue until a part arrives. As a result, we find that 20 to 25 percent of our sales end up being returned, and I believe that’s an industry standard. It’s a very ineffective process. There are other issues in the current process that we have found to be inefficient. We may source parts from multiple yards with multiple yard management systems, and the communication back and forth is usually by phone or email. Many times, the salespeople will send a part without consulting the customer about discrepancies. There is no consistent method for communication, especially across platforms. There is also no real-time information available and photos are commonly taken by the auction company. Overall, the quality of the part cannot be truly assessed until the selling yard, or in some cases the shop, receives it.

How is EZ-Management Solutions’ software helping with this process?

Our software is unique to the industry because it can track a part from the beginning to end. This gives shops the ability to visualize parts live and determine if something different is needed. We can tell you exactly when the part should arrive, exactly where it is in the process, and you can see photos and data about the part. It also measures performance. We believe our software can solve inaccuracy issues and help with timing even before it leaves the sal-

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

vage yard. In one word, it’s transparency. As a recycler, we want to be transparent and provide the best product we can in a timely fashion.

ware?

What are some of the features included with the current soft-

EZ-Route software was developed in 2011 and integrates with a yard management system. After gathering information about all of the deliveries for the day, it suggests the most efficient way to run the route. It can then track the drivers’ progress with real-time GPS tracking, so you know if they are running ahead or behind schedule. It also provides metrics for deliveries to help businesses with repair planning and make better-informed decisions. EZ-Runner is the group trading software that manages shipments among salvage yards and integrates with Pinnacle, Hollander and Checkmate. It was originally built for Midwest Trucking, and we soon realized that other recycling groups might be interested in using the software as well. EZ-Runner plans the shortest route through a series of hubs and allows for the quick movement of parcels. It generates a barcode label that provides information about the part, which is scanned throughout the delivery process. The software offers part grading, so recyclers can benchmark and compare themselves to each other. It also includes return applications to approve and track returns, which are a big part of our business. Another feature is hub manager. If somebody is running a hub with 10–20 trucks, the shipments can be easily managed.

What can we expect to see with EZ-QC software, and when is the expected release?

EZ-QC is being developed to provide transparent information for everyone involved in the process, including the salvage yard and body shop. It provides a conduit

for communication and informationsharing across multiple platforms and all of the data is in one place. Parts can be tracked, a complete history of the part is visible, and shops can request a return or have a part picked up. This means that not only does the body shop have the ability to see where the part is, but it can also determine if the part is on time and as described. This will ultimately help a collision repairer with cycle time. In the past, it would take an average of two to four days to receive a part. In one example, we sold a front end to a collision shop and the part was incorrect. Using the old way to ship the part, it cost $337 vs. the $128 it would have cost with EZ-QC software. There were 25 steps involved in the process vs. 14; the part was handled 22 times vs. two, and it took 12 days to deliver the correct part vs. six. Using EZ-QC will ensure delivery of the proper product and that it is good quality even before it leaves the salvage yard. We expect to release the software in the beginning of 2019.

How has the expansion of recycler groups benefited the industry?

As an industry, we realized we needed better access to inventory in a timely fashion. As a result, over the last 20 years, recycler groups have been set up by independent salvage yards. Some were formed to compete with LKQ Corporation and others wanted a stronger pool of inventory to pull from, so independent recyclers would never have to say no to a sale. They are banding together, not through ownership, but through transportation and standardization. The days of waiting for a freight truck to send something are over. In order to fulfill marketplace demands, you must have access to inventory and affordable transportation. Working together as a group, we have the ability to source parts quicker and we’re doing it through other like-

See Continues to Improve, Page 85

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Regional Association Event Announcements: October 2018 by Chasidy Rae Sisk

Below are several upcoming regional automotive association events taking place in October. ASA-OH To Host Training Sessions With Mike Anderson, Maylan Newton In October, ASA-OH will host two educational seminars, featuring industry favorites Maylan Newton and Mike Anderson. Newton, CEO and senior instructor of Educational Seminars Institute, will present a “Building Trust and Sales with Digital Inspections” workshop on Oct. 10 and 11 at the Holiday Inn Express in Perrysburg, OH, and the Indiana Wesleyan in Cincinnati, OH, respectively. Members will pay just $49 for the workshop and non-members will pay $79. Collision Advice’s Anderson will discuss how to pull repair procedures directly from the source, the OEM, in his “Learn to Research; Research to Learn” workshop. The first workshop will be held on Oct. 19 at Ohio Auto Kolor in Columbus, OH. An encore presentation will be delivered on Oct. 20 at ESC of Cuyahoga County in Independence, OH. The full-day seminar (9 a.m. until 3:30 p.m.) costs $159 for association members and $269 for non-members. For more information, visit www .asaohio.org. RDA To Hold Fall IMPACT Performance Conference The Refinish Distributors Alliance (RDA) will hold its next IMPACT Performance Conference at the Embassy Suites Downtown in Louisville, KY, from Oct. 1–3. For more information, visit www .rda-impact.com. ASA-CO Members To Learn How to Manage Shop Workflow From Oct. 16–17, ASA-CO will host Greg Marchand for a two-day training seminar on “Managing Shop Workflow.” The class will be held at the Western Community College in Grand Junction, CO. For more information, visit www .asacolorado.org. ATRI To Host 2018 Convention and Trade Show 80

On Oct. 19 and 20, the Auto and Truck Recyclers of Illinois (ATRI) will hold its 2018 Convention and Trade Show at St. Louis U-Pic-A-Part. This year’s theme is “Gateway to the Future,” and ATRI will be joined by the Missouri Auto and Truck Recyclers (MATR). For more information, visit www .illinoisautorecyclers.com. Management Success To Host Shop Owner’s Expo in Pomona, CA Management Success will hold its 2018 Shop Owner’s Expo at the Sheraton Fairplex Hotel and Conference Center in Pomona, CA, on Oct. 19–21 to provide shops with training and management solutions. For more information, visit www .shopownerexpo.com.

ASA-AZ To Host Monthly Tucson Roundtable On Oct. 2, ASA-AZ’s Tucson Chapter will host its monthly roundtable discussion at El Corral Restaurant in Tucson, AZ, from 6–8 p.m. This monthly event serves as a platform for shop owners and decision makers to share challenges and identify solutions. For more information, visit www .asaaz.org. ASA-IL’s Leadership Summit To Feature Aaron Stokes of Shop Fix Academy On Oct. 12, ASA-IL will hold a Leadership Summit at the Chicago Room at Westwood Tavern in Schaumburg, IL, featuring Aaron Stokes, founder of Shop Fix Academy. Stokes will present “How to Grow: Taking Your Shop to the Next Level!” He will discuss the step-by-step process to success, share ideas on making life easier, discuss how and when to hire good techs and much more. The rate for the educational seminar is $195 for association members and $295 for nonmembers. For more information, visit www .asaillinois.org. ASA-Northwest’s Whatcom, Spokane Chapters to Participate in Lights-On Public Service Events On Oct. 6, the Whatcom and Spokane Chapters of ASA-Northwest will participate in a public service event called “Lights On.” The program is

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

sponsored by the association in support of National Car Care Month. Participants donate their time to perform free replacements of exterior bulbs. The Whatcom Chapter’s event will take place at Bellingham High School, where association members will be assisted by BTC automotive students. Bulbs are donated by Bellingham NAPA Auto Parts. The Spokane event will take place at Spokane Community College, and students from the college will assist with the inspections and bulb replacements. Sponsors include Motion Auto Supply, Interstate Battery of Spokane, Radio Spokane, Wix Filters and Spokane Community College. For more information, visit www .asanorthwest.com. GCIA To Hold 22nd Annual Golf Tournament The Georgia Collision Industry Association (GCIA) will hold its 22nd Annual Invitational Golf Tournament on Oct. 4 at Bear’s Best in Suwanee, GA. Registration begins at

9 a.m. with a tee off start one hour later. The game is a four-man best ball scramble, and registration costs $100 per player. Proceeds will benefit collision industry training in Georgia. For more information, visit www .gcia.org. IGONC To Host 3 Chapter Meetings In October, the Independent Garage Owners of North Carolina (IGONC) will hold three chapter meetings. The Triangle Chapter will meet at Logans Roadhouse in Garner, NC, on Oct. 2 for a presentation by Alex Brown of Alliance Hose and Tube Works. The Jacksonville Chapter will meet at Logans Roadhouse in Jacksonville, NC, on Oct. 4 for its monthly chapter meeting. On Oct. 9, the Nash/Rocky Mount Chapter will gather at Hunter Hill Café in Rocky Mount for a presentation on using promotional products to promote your business, delivered by Roger White of AllStar Sports Products. For more information, visit www .igonc.com.

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Continued from Page 76

PBE Jobber

talk” that many dads and sons have when the dad owns a business. Roger asked Dan if he would get more involved in the business if they went deeper into the PBE business. It seemed like a match made in heaven. In the winter of 1977, Dan (better known as “Mud” because of his propensity to race motorcycles through unpaved fields) took a larger role in his father’s business. They took on the RM paint line, found sources for other related products, abrasives, hand tools and the like, and Pine Motor Parts began a 30-year metamorphosis into a PBE jobber. In a telephone interview, Dan remembered those early days. “At first we were small—not able to buy products direct,” he said. “So, several times a week, I would leave my house early in the morning and drive to the AMREP warehouse in the Boston area, about a 120-mile round trip. I would get back just in time to open the store at 8 a.m. It made for some very long days.”

When asked about the difference between the parts business and PBE business, Dan replied, “In many ways, the PBE business has way more potential because we can stretch our business area much wider. In the parts business, shops are calling for parts that need to be installed in a customer’s car within hours. Most repair customers want to pick up their car at the end of the day. So the geographic space you can cover is limited. However, many PBE products will be purchased today, delivered tomorrow or the next day and consumed maybe days after that. In the parts business, we had to stay in maybe a 10-mile radius of our store. Now we can go south into Massachusetts, east as far as the Atlantic coast of New Hampshire and Massachusetts, north into New Hampshire’s Lakes region and west into New Hampshire’s Monadnock region. We have gone from about a 10-mile radius to about 100 miles. That’s a lot more customers and a lot more business.” As Roger had predicted in the mid-1970s, the auto parts business landscape changed dramatically. Many of Pine’s long-time customers

eventually went out of business due to retirements, family issues, etc. The sources for a small mom-and-pop parts store to acquire parts inventory was drying up, and the “big boys” of the industry—Auto Zone, Pep Boys and O’ Reilly’s—were taking over. In July 2017, Pine Motor Parts sent out a letter to all its existing wholesale parts accounts announcing that, after 61 years, Pine Motor Parts would cease the auto parts business and be a full-blown PBE jobber. “It was a no-brainer,” said Dan’s brother, Dave Chaput. “Our accountant showed us how much money we were making on parts and how much on paint products, and there was no question in my mind where to go.” Dan and Dave exacted something their grandfather never wanted to do—turn his Gulf station into a paint store. One of the auto parts products that consumed a lot of space and had a rapidly dwindling sales volume was exhaust pipes and mufflers. Once the exhaust inventory was gone, there was enough space to reconfigure the store, add another line of paint products and create a showroom. Dave assumed the task of man-

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aging the store on a day-to-day basis while Dan made the rounds calling on body shops. Pine still maintains a fleet of five delivery trucks running routes on a weekly basis. When asked about his present competition now that they have made the commitment to the PBE business, Dan said, “There is really nobody else in Nashua that goes after the business like we do. There are some jobber salesmen that come into NH from MA, but since our major local competitor sold their store a couple of years ago, we have been doing pretty well.” When asked if Finish Master, one of the largest PBE chains in the country, was a competitor, Dan replied, “They don’t have a brick and mortar store in NH …yet … but we can feel their presence.” Given the current state of the collision industry with so much consolidation and with smaller shops going out of business, Dan was asked how he saw the future for his business. He replied, “We don’t see the large MSOs coming to New England and gobbling up smaller shops. We

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don’t see smaller shops going out of business around here. We don’t see small shops trying to act like big shops using new business practices or repair methods. In fact, we really don’t see a lot of change at all. I think for that [the] next five years or so, things will remain pretty much the same. My only worry is where new technicians will come from to carry the industry. One of our local voctech schools had to cancel their collision repair curriculum last semester for lack of students. That’s sad.” Today, more than 70 years after Vic’s Garage first hung out its shingle on Nashua’s Pine Street, thanks to the vision and foresight of the Chaputs, the family business has morphed several times—each time bringing success with a new business model. Today, it is known as Pine Motor Parts / PBE Specialists. The drive-on pit that once ran down the center of Vic’s work bay is still there, filled in with dirt and covered with a concrete floor holding displays of primer, paint guns and sandpaper. Hopefully, Vic Chaput is looking down on the success of his grandsons with a smile.

Continued from Page 75

Continued from Page 78

tomakers are steadily moving toward the shared goal of putting standard AEB into every new car they sell,” David Zuby, executive vice president and chief research officer of IIHS, said in a December 2017 press release. “This is a big win for safety on our nation’s roads, which will see fewer crashes and injuries because of this commitment.” The chart to the left prepared by the NHTSA and the IIHS indicates which automakers are currently ahead of the game when it comes to installing AEB in every vehicle and those that still have some catching up to do.

minded recyclers. There are currently five popular recycler groups in the country: Midwest Automotive Trucking, Team PRP, Fenix Parts, Recyclers Cross Dock and iPart (Independent Parts & Auto Recyclers Team). Midwest was set up in 2001 with a half a dozen yards and has grown to nearly 80 yards today, spanning from Illinois to North Carolina. With the formation of these recycling groups, parts arrive quicker. It usually only takes one day; occasionally, it’s two. The system also allows what is called “co-mingling of freight” among the groups. The goal of co-mingling is to cut down on costs. For example, if we can haul Midwest and PRP freight on the same lines and use the same hubs, the cost is split among the groups and it makes it incredibly affordable. What’s happening with these groups is that they have all been growing tremendously over the last

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Elk Grove Subaru Elk Grove (877) 475-0659 (916) 509-8559 Fax Mon.-Fri. 8-6 shawnh@elkgrovesubaru.com www.elkgrovesubaru.com

Subaru of Santa Cruz Santa Cruz (888) 844-7131 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Sherwin-Williams Study Reveals Primary Reason Body Shops Prefer Waterborne Coatings by Stacey Phillips

With the usage of waterborne coatings on the rise, a recent study conducted by Sherwin-Williams Automotive Finishes found that quality was the primary reason collision repairers favor waterborne refinish coatings over traditional solvent systems. The study was conducted in July, prior to the company launching its new Ultra 9K Waterborne Basecoat System the following month. “As we prepared to launch our new product, we were interested in finding out general user opinions about waterborne coatings and what is driving the change to use them,” said Brian Shenk, marketing director for Sherwin-Williams Automotive Finishes. “The extensive market survey revealed a number of trends and information regarding the use and increased acceptance of waterborne systems.” Out of the 250 survey respondents across the United States, the majority classified themselves as body shop owners or managers. Sev-

[VOC] legislation and wanting to be ahead of the curve in regard to compliance,” said Shenk. What we’re finding is that the technology behind waterborne paint is so superior today that shops are changing for a completely different set of reasons other than because they are required to do so.” As a result of the study, Shenk said they learned the five key considerations from collision repairers when choosing a new waterborne system for their facility. Color match was at the top of the list followed closely by productivity and ease of system use. Price and OEM approvals were also factors in their decision-making process. The number one reason Courtesy of Sherwin-Williams Automotive Finishes shops aren’t using water“When we first started manu- borne coatings, according to the facturing waterborne coatings for study, is the cost of new equipment. the refinish market, we expected However, more than half of those that most people were going to want who currently don’t utilize them said to use them because of changing that they plan to do so or at least look

enty-seven percent work for or own an independent body shop, and 60 percent have annual revenue of $1.5 million or less. According to the survey, 64 percent of collision repair shops have used waterborne paint within the last year.

into it over the next year. “There’s a reasonably big contingent of underinformed shop owners who have misconceptions about waterborne systems,” said Shenk. Typically, he said those not using waterborne basecoats believe they are significantly slower than solvents and not going to provide the same color match or durability. They might have tried it years ago or heard mixed reviews. “It surprises me that people make up their mind one way or another about waterborne coatings and then don’t consider them again,” said Shenk. “Today’s products are vastly different.” Some of the recent innovations introduced to the market include increased production, quality of paint matching, better application equipment and supplier training. “By today’s standards, all shops should be switching to water,” said Greg Weaver, co-owner of Acworth Collision in Acworth, GA. “Shops need to forget the water-based horror See Sherwin-Williams, Page 90

The Right Parts. A Perfect Fit.

Genuine Porsche Parts...Only The Best.

Choose Original MINI Parts. SO. CAlifornia MINI of Escondido Escondido 800-544-4269 760-747-0894 Fax darrinedwards@miniofescondido.com

The Dealers Below are Genuine Porsche Parts Distributors.

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Porsche of Boise

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

Order Genuine Mazda Parts from these Parts Specialists in your area

Boise

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INFINITI OF VAN NUYS VAN NUYS

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NIELLO INFINITI PARTS CENTER CONCORD

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infinitiparts@niello.com

autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Page 30

Leadership Development

their honor to recognize and reward parents for “responsible parenting.” We feel this program focuses on a parent’s tireless efforts to parent “responsibly” while coping with the daily challenges and hardship of running a household without reliable transportation. The Bates team has refurbished and presented more than 30 vehicles since we first launched the program, and we have seen a real impact in the lives of these families through our gifts of transportation.

ment?

Why are these types of programs so important to imple-

First, we truly feel it’s the right thing to do in a community that has supported us for so many years. Second, it’s part of being a good business citizen in the community and doing your part. Third, there is no doubt that it has impacted Bates Collision Centers in a huge way by helping us grow our business and letting the community know that we’re not just a business looking out for ourselves, but one that gets involved and cares. We’ve also found that it has afforded our staff a unique way for them to put the skills they use every day into putting a family back on the road—not just a car back on the road.

What procedures have you initiated at Bates Collision Centers to help run the business more efficiently?

We’re a direct repair center for a large number of insurance companies. Since we first launched Bates Collision Centers, our goal was to standardize our processes in a way that would allow us to perform well in those DRP programs while meeting the needs of our customers. We’ve spent a lot of time setting up standard operating procedures (SOPs) and developing processes to help organize our business and ensure success. Lee’s dad worked for Exxon and shared a lot of information from a corporate mindset. We began to see that we could put processes in place to help avoid some of the pitfalls in

repairs. In the last 10 years, we’ve found that a lot of the things we were doing when we first started out are now buzzwords in the industry: lean thinking, the Toyota way, and adopting a process-centered environment (PCE).

This is the eighth year in a row that Bates Collision Centers has received the Baytown Sun Readers’ Choice Award for best body shop

We were utilizing a lot of those concepts not really knowing what the technical terms were, but we were doing it out of necessity. We’ve also always measured cycle time. We realized early on how it would help us improve customer service, deliver what we say and do it on time. As a grassroots business, we needed every customer who left us to feel like it was what we call “a legendary service experience.” We want our customers to tell family, friends, co-workers and others about our exceptional service and recognize that it’s the only way we will continue to grow our business. We’ve also participated in performance groups over the years through our paint provider, AkzoNobel, as well as a PCE group through the company. Both have been very beneficial.

How has setting up and utilizing these processes been helpful to your business overall?

If you are a DRP shop performing well on your KPIs and have a good relationship with the insurance companies, that is critical to your long-term success. However, many of the KPIs that are required are a win-win overall regarding cycle time, customer satisfaction and a low supplement rate. All of those have such a positive impact on the customer experience and therefore, a positive impact on the business. We recognized early on that we have humans working for us in a very complex environment in terms of the procedures and guidelines to meet the billing requirements of the

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

insurance companies. We had to develop ways to help our staff with the guidelines, policies and procedures in the industry. There’s a lot to remember and it’s easy to forget some of the steps, especially when insurance companies have different processes. We now use checklists as a guide for our team to help keep them on track and hold them accountable for their work. We also use cartoon signage around the shop reminding the staff that their initials on each checklist item is their “promise” that their work has met the Bates standard. Can you tell us about your company’s new focus on employee development?

We have a lot of great policies and procedures in place and maintain a rigorous standard of training for employees, but over the last several years we realized we also needed to work on the people side of the business. If employees don’t buy in and believe in our culture and who we are as a company, we’re not going to succeed.

We haven’t abandoned the concept of a process-centered environment, but we realize it won’t work on its own. Our new direction over the past five to six years has been to focus more time on leadership and employee development—what I like to call the “inside-out approach.” As a result, we’ve seen a lot greater success.

How do you stay up-to-date with new concepts at your locations?

We’ve worked with a company for the last several years now called LeadersWay, and that’s what has guided our path through this employee-centered focus and leadership development. We’ve adopted a lot of their timelines and strategies. We have monthly webinars with the owner, Kevin Wolfe, as well as live workshops and training with him and his staff. It has been really helpful! No doubt it takes extra time for staff members to do these things. At first, we didn’t know what the reaction

See Leadership Development, Page 90

The RIGHT

COLLISION PARTS

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RUSSELL WESTBROOK HYUNDAI

HYUNDAI SERRAMONTE

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KEARNY MESA HYUNDAI San Diego 4797 Convoy St.

800-469-9731 858-300-3331 Fax

Mon-Fri 7am - 6pm; Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com

Colma 1500 Serramonte Blvd.

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PARTS BUILT FOR THE ROAD AHEAD

THESE DEALERS ARE GENUINE FORD PARTS WHOLESALE SPECIALISTS Trust Genuine Ford Parts from these Select Dealers

Caruso Ford Lincoln LONG BEACH

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Continued from Page 86

Sherwin-Williams

stories. Today’s systems provide better color match, better speed and are equal to, or even less, in overall expense compared to solvent.” “We wanted to ensure our new product could perform in really busy collision shops,” said Shenk. “This research tells us that we’re on the right track. We’ve received an unwavering positive response from our customers, and it gives us confidence that the product is what our customers want.” Sold exclusively through the Sherwin-Williams branch stores in North America, the Ultra 9K system is compact, requiring less than 70 toners and a single reducer. Shenk said the new line was created to provide precise and quick color match to help shops improve cycle time and maximize throughput. It utilizes intuitive Color Retrieval Software and spectrophotometer as well as a wet-on-wet application. It is compliant in national rule and VOCregulated areas and can be used in various climates in high or low hu-

midity. Steve Raines, manager for Acworth Collision, in Acworth, GA, said the shop’s painters love to spray Ultra 9K. “It goes on wet-on-wet so it’s faster than other systems, the color match is outstanding, and it’s really more production-friendly,” he said. “It even reacts well to humidity, which is something we struggled with using other systems.” “The new Ultra 9K system addresses what is most important to every collision center—productivity and efficiency,” said Rob Mowson, vice president of marketing for Sherwin-Williams Automotive Finishes. “It utilizes the finest speed primers, color basecoat and fast glamour-producing clearcoats. We wanted this system to be a true change for the industry. We re-thought everything to make sure that the entire shop experience is best-in-class.” Shenk said the bottom line is that there are two main considerations for a shop when considering a refinish system: color match and turnaround time, both of which Ultra 9K offers collision repairers.

“We’ve been very pleased with our customers’ reaction to the new product,” said Shenk. “It’s fun to connect with customers and introduce a product that is welcomed by those in the industry who need it. It’s really satisfying to have something so meaningful in the work lives of painters and people who run body shops.” Sherwin-Williams Automotive Finishes manufactures and distributes a complete line of advanced technology paint and coating systems for automotive and fleet refinishing industries. The Automotive Finishes division is part of The Sherwin-Williams Performance Coatings Group, which supplies a broad range of highly engineered solutions in more than 120 countries around the world. Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paints, coatings and related products to professional, industrial, commercial and retail customers.

www.autobodynews.com

Continued from Page 88

Leadership Development

would be from our staff, but they quickly started seeing positive results. One of the concepts we’re currently working on is that your customer’s satisfaction can never be higher than your employee’s satisfaction. As a result, we’re looking at ways to engage all of our employees and help them understand their role and how their job impacts other people as well as making sure they feel valued. A couple of books that have helped us recently include “Whale Done” and “The Ideal Team Player.” They are short reads and I recommend both. New chapters have brought different seasons and challenges, but we’ve been very blessed for sure. People ask me all the time how Lee and I work together so well. We don’t know anything different because we started out that way in the early years of our marriage and made it work. We’re a very good team.

Finish it like a Masterpiece

THESE DEALERS ARE MERCEDES-BENZ GENUINE PARTS SPECIALISTS.

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / OCTOBER 2018 AUTOBODY NEWS

Tesla Model 3 Almost as Expensive as Porsche 911 to Insure by Mark Kane, InsideEVs

The most affordable Tesla so far— Model 3—is seemingly affected by high insurance costs, which on average are comparable to the Porsche 911.

According to Gabi Personal Insurance Agency, the average cost of insuring the Model 3 across 150 zip codes is $2,814 (from $1,958 to $3,644) per year. A Porsche 911 is more expensive by just $35. The main reason for that is explained by the higher costs of parts for Tesla and Tesla’s body shop policy: “According to Gabi CEO Hanno Fichtner, the high cost of

replacement parts and Tesla-specific body shops are major contributors to the high insurance costs. Collision insurance accounted for 49 percent of the insurance quotes collected in the Gabi analysis, and in some cases as much as 59 percent. Collision insurance accounts for only 40 percent of the cost of Gabi’s Porsche insurance quotes, on average.” Insurance Costs Tesla Model 3 buyers need to realize that over the course of several years of owning a car, they will spend considerably more on insurance than in the case of most other comparable conventional cars (in terms of size, class or price). Here are a couple more examples of average insurance costs cited in the Automotive News article: • Chevrolet Volt Premier – $2,102 • Honda Civic LX – $2,068

• Tesla Model S 75D – $3,410

Oldest Body Shops in America: Keene Auto Body

Eleanor, visited Keene, NH, about 20 miles away. They obviously liked If there has ever been a quintessen- it, and moved to Keene shortly theretial New England town, it’s Keene, after. In 1928, Ensio founded Keene NH. Auto Body & Welding Co. at 543 Main St., where the business has remained ever since. The building has undergone several changes and expansions, but after almost 100 years, the business remains in the same spot. Paul Piispanen, the son of Ensio, took over the business in the 1950s and ran it with his wife, Katherine PiKeene Auto Body founder Ensio Piispanen, date unknown ispanen. In the 1990s, Nestled in the southwestern third-generation owner Steven Pipart of the state, it is an idyllic area ispanen, Paul and Katherine’s son, for viewing the famous New Hamp- took over the reins. Keene Auto Body specializes shire fall foliage. It is the Cheshire County seat and the home of Keene in auto body repair and offers 24State College and Keene Auto Body. hour towing, serving the entire MonKeene Auto Body was founded adnock region. in 1928 by Ensio Piispanen, an immigrant from Finland. When he moved to the United States, he AUTOBODY worked for a car factory in Winchenwww.autobodynews.com don, MA. Later, he and his wife, by Gary Ledoux

OCTOBER 2018 AUTOBODY NEWS / autobodynews.com

• Audi R8 – $3,519

In 2017, AAA announced an increase in insurance prices for Tesla cars and it seems that not much has changed since then, despite Tesla launching its InsureMyTesla program. “Tesla subsequently partnered with Liberty Mutual to create a product called InsureMyTesla, which Jon McNeill, then president of sales and service for Tesla, said ‘takes into account not only the Autopilot safety features but also the maintenance cost of the car.’ “Tesla owners have posted on a number of forum threads that InsureMyTesla’s costs are consistently higher than the competition. This summer, Tesla CEO Elon Musk responded to a tweet about the high cost of the product, saying, ‘Looking into this. Will fix if so.’” Even though insurance costs may be on the high side, one should take into account other savings associated with the Model 3, like gas costs (lack thereof, actually) and lower maintenance costs. We thank InsideEVs for reprint permission.

OEM Parts You Need and Trust.

SCRS Announces Audi of America

Audi of America (Audi) represents the newest automobile manufacturer to support the Society of Collision Repair Specialists (SCRS) through Corporate Membership. The addition of Audi of America to the roster of automotive manufacturers that choose to participate as a member of SCRS represents further growth in the relationship and ongoing commitment to be connected with the top-level collision repair facilities that compose the SCRS base. “It’s important to us at Audi to be able to reach a wide audience with a shared point of view with the many different factions,” shared Mark Allen, manager of collision & equipment for Audi of America. “SCRS has a long history of working closely with Audi and other OEMs to help our audience gain access to the information they need,” added SCRS Chairman Kye Yeung.

www.autobodynews.com

volvo Genuine parts

Genuine Mitsubishi Replacement Crash Parts are close at hand from the following quality dealerships:

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So. California

Courtesy Chevrolet

Paradise Chevrolet

800-336-1404

888-5-CHEVY-5

SAN DIEGO

619-297-4023 Fax

M-F 7am - 6pm Sat 8am - 5pm www.courtesysandiego.com

VENTURA

(888-524-3895) 805-642-0134 805-644-7214 Fax M-F 7:30am - 6pm Sat 8am - 3pm

Alaska

Idaho

Chevrolet of South Anchorage

Dave Smith Motors

888-805-8677

208-786-1200 Fax

ANCHORAGE

907-365-8677 907-635-8667 Fax

Rydell Automotive Group

Thorson Motor Center

818-832-1660

626-793-0454

M-F 6am - 7pm Sat 8am - 5pm nrparts@rydells.com

M-F 7:30am - 6pm Sat 8:30am - 2pm parts@thorsonmotorcenter.com

SAN FERNANDO VALLEY

386-236-4754 Fax

PASADENA

626-795-6872 Fax

KELLOGG

866-333-6083 M-Sat 8am - 6pm www.davesmithparts.com

M-F 7am - 6pm; Sat 8am - 5pm bvargason@lithia.com

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OCTOBER 2018 AUTOBODY NEWS / autobodynews.com