October 2020 West Edition by Autobody News

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AUTOBODYNEWS.COM Vol. 38 / Issue 10 / October 2020

Toby Chess: 40-Plus Years of Service to the Industry He Loves

Toby Chess Says SOPs, Industry Training & Networking are Key to Body Shops’ Future Success

by Ed Attanasio

by Stacey Phillips

If you’ve been in the world of body shops for more than a few years, you likely know the name Toby Chess. He’s the smiling bearded guy who brings gifts to people—and no, he’s not Santa Claus. His story all began in a salvage yard and has turned into a fantastic career of teaching, mentoring and helping the collision repair industry and other people on many levels. Chess, 75, has given his life to others through several channels and

Several weeks ago, a local body shop owner asked Toby Chess to help set up a welder to repair an aluminum deck lid on a Mercedes-Benz. When Chess arrived at the facility, he quickly realized the technician didn’t have an understanding of the process to repair the vehicle. As a result, Chess created a Standard Operating Procedure (SOP) for the shop, laying out the steps to get the job done. Since then, Chess has created more than 30 SOPs for the collision repair industry and has been

See Toby Chess, Page 12

Toby has been involved in First Responders’ auto body extraction for many years.

‣ See Nonprofit Finds, Matches Living Organ Donors , Page 60

Toby’s SCRS presentations are often hands -on and use attendees to push concepts.

sharing them with shops across the country. See Training & Networking, Page 14

• Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement, Page 60 • Toby Chess: Best Practice for Pre and Post Scans, Page 60

Expert Predicts Auto Industry Could Take 2 Years to Rebound to Pre-Pandemic Sales Levels

CAA More Essential than Ever, Director Rick Johnson Explains

by Dave Boucher, Detroit Free Press

by Ed Attanasio

It’s going to take at least two years for auto manufacturers to restore the sales and production numbers seen before the start of the coronavirus pandemic, an industry expert told Michigan lawmakers in Lansing on Sept. 2. Despite successful efforts from suppliers and manufacturers to keep their doors open and employees safe, staffing shortages and some overall drop in demand means the industry

The automotive industry did not take as big of a hit as many predicted due to the coronavirus pandemic. But experts and analysts told Michigan lawmakers on Sept. 2 their future is still a bit tenuous. Credit: Eric Seals, Detroit Free Press See Pre-Pandemic Sales, Page 23

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ing to CAA has become increasingly clear and critical to the industry as a California Autobody Association whole,” Johnson wrote in a recent let(CAA) Executive Director Rick ter to members. Johnson thought he had CAA’s mission has alseen it all during his 40ways been to enable the plus years in the industry— auto body industry to suruntil now. vive and prosper by helping These are surely unusuits members to produce a al times, he said, but by leadquality repair for the coning the way and keeping his sumer at a fair price for a troops informed, CAA and fair profit, Johnson said. its board are actively work- CAA Executive Director But now, with more uncerRick Johnson ing toward returning to a new tain times ahead, CAA is “normal.” more important than ever, The COVID-19 has impacted he said. every type of business nationwide, Now into the pandemic’s sevand collision repair in California is enth month with no definitive end in no exception. Johnson has seen some sight, body shops are going to have shops taking big hits and furloughing to navigate through new situations employees, while many are still doing that didn’t exist before. 70% to 80% of their pre-pandemic “That is why you need an orgavolume. nization like CAA, because there “As California’s auto body shops is power in numbers,” he said. “In have had to make it through the diffi- order to better serve our members, cult and unexpected challenges of the we offer invaluable benefits includSee CAA More Essential, Page 18 global pandemic, the value of belong-

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CONTENTS for Adoptable Dogs .......................................28

Amazon Deploys 10 Lion Electric Trucks ...........34

CIECA Holds Semi-Annual Meetings ..................45

As Wildfire Victims Return Home, NICB Urges

Commercial Fleet Sales Fall 16.8% in August....66

Caution to Avoid Fraud ..................................22 Auto Insurance Fraud, Forgery Ring Unravels in California ..................................................26

Daimler AG to Pay $1.5B for Emissions Cheating .......................................................67 Expert Predicts Auto Industry Could Take

Bend, OR, Auto Body Shop Destroyed in Fire .....26

2 Years to Rebound to Pre-Pandemic

Boring Co. Vegas Loop Expansion Looms as

Sales Levels ...................................................1

LV Monorail Files for Bankruptcy ...................27 Farmers Insurance® Assisting Customers Impacted by West Coast Wildfires .................16 Fix Auto USA Expands Oregon Footprint With Fix Auto Clackamas .................................6 Glenwood-Caribel, ID: A Hobby and a Career .....16 Gov. Newsom Signs Legislation to Protect CA Workforce Amid Pandemic ............................34 Las Vegas Man Charged in Tax Scam Involving Auto Body Shops ............................30 Los Angeles Auto Show Pushed Back To May 2021: Report .........................................30 Nevada OSHA Issues 11 More Citations to Businesses ...............................................19 NICB Commends Hawaii Gov. Ige For Stopping Fraudulent Towing Companies ......................11 Report Selah, WA, Firefighters’ Vandalized Cars to be Repaired for Free ...........................6 Several Classic Cars Destroyed by West Coast Wildfires .....................................10 Tesla Employee Foregoes $1M Payment, Works With FBI to Thwart Cybersecurity Attack ........20 Three Suspects At Large in Sacramento-Area

800-699-8251

ltedesco@autobodynews.com

AUTOBODY

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Filterworks USA Becomes Autotality to Reflect Expansion Within Automotive 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, Bill Doyle, Norman Morano (800) 699-8251 Office Manager: Louise Tedesco Digital Marketing Manager: Bryan Malinski Art Director: Rodolfo Garcia Graphic Designer: Vicki Sitarz Online and Web Content Editor: Abby Andrews Accounting Manager: Heather Priddy Permissions Editor: Randi Scholtes Office Assistant: Dianne Pray

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. ©2020 Adamantine Media LLC.

American Icon Automotive Finishes ................. 42

Innovative Tools & Technologies, Inc ................ 47

Audi Wholesale Parts Dealers .......................... 55

Kearny Mesa Subaru-Hyundai ......................... 45

AutoNation Collision Parts ............................... 21

Kia Downtown Los Angeles ............................. 50

AutoNation Honda Costa Mesa ........................ 20

Kia Motors Wholesale Parts Dealers ...........56-57

AutoNation Infiniti Tustin ................................. 24

Kia of Carson .................................................. 54

AutoNation Roseville ......................................8-9

Kia of Irvine .................................................... 33

BMW Wholesale Parts Dealers ........................ 58

Larry H. Miller Chrysler-Jeep-Dodge-Ram ....... 28

P&C Trends in the Age of COVID-19...................63

Car-O-Liner..................................................... 25

Malco ............................................................. 10

PPI: August Shows Upswing in Auto Glass

Car Pros Kia .................................................... 44

Mazda Wholesale Parts Dealers ...................... 69

Equipment Industry .......................................44 GM CEO Mary Barra: Demand is Coming Back Quicker Than we Thought.....................68 GM Tells Most Salaried Workers to Stay Home Till Next Summer ................................70 Honda Agrees to $84M Multistate Settlement for Defective Airbags.....................................64 Honda, GM Sign MoU ........................................27 Intoxicated Tesla Owners Leave Driver’s Seat Empty to Keep Drinking ................................68 Is Your Shop and Insurance Coverage Prepared for A Riot? ......................................58 KIA HECU Recall Issued Following Engine Fires ...63 Liability Exposures on the Rise Globally: AGCS ..69 Mercedes GLB250 Recall Issued for Rear Spoilers That Detach .....................................59 NHTSA Launches SaferCar App .........................44 Nonprofit Finds, Matches Living Organ Donors ..60 NSC: 20% Jump in Motor Vehicle Death Rates ..11

INDEX OF ADVERTISERS

REGIONAL

Advertise in our Classified Section for $50 per column inch!

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

Auto Fraud Scheme.......................................19

Material Pricing ............................................60

Car Pros Kia Renton ........................................ 38

Mercedes-Benz Wholesale Parts Dealers ........ 69

Vacaville Fire Consumes House, 3 Classic Cars ...22

ProColor Collision to Enter U.S. Market ..............70

CCC Information Services, Inc ......................... 43

Michael Hohl Motor Company ......................... 44

Certified Automotive Parts Association ............ 12

MINI Wholesale Parts Dealers.......................... 58

Classifieds ...................................................... 70

Mirka USA, Inc ................................................ 11

SafetyNest™ Helps Drivers Stay Insured ..........63

Clearcoat Solutions International ..................... 29

MOPAR Wholesale Parts Dealers ..................... 41

Searles Joins AMi as New President .................64

Colortone Automotive Paints ........................... 38

Network 1 Solutions Collision Equipment ........ 19

SEMA Data Co-op Acquires PartsHub ................66

Courtesy Chevrolet San Diego ......................... 39

Nissan/Infiniti Wholesale Parts Dealers............ 65

Cutter Chrysler-Dodge-Jeep-Ram ................... 34

Porsche Wholesale Parts Dealers .................... 67

DCH Chrysler Dodge Jeep Ram Fiat ................ 22

Rapid Tac ........................................................ 35

Toby Chess Says SOPs, Industry Training

Eagle Abrasives, Inc ........................................ 23

Reno Buick-GMC ............................................ 28

& Networking are Key to Body Shops’

Eckler’s Automotive ........................................ 18

RGI Spray Booth Company .............................. 26

Future Success ...............................................1

Equalizer Industries, Inc .................................. 32

SATA Dan-Am Company .............................. 2, 17

Fairview Ford-Lincoln-Mercury ....................... 46

Sherwin-Williams Automotive Finishes ...........4-5

FI. TIM SRL ....................................................... 6

Sierra Chevrolet-Honda-Subaru ...................... 51

Ford Wholesale Parts Dealers .......................... 61

Southern Polyurethanes, Inc............................ 13

Frank Subaru .................................................. 48

Steck Manufacturing Company ....................... 40

Future Nissan of Roseville ............................... 14

Subaru Wholesale Parts Dealers...................... 59

Galpin Motors ................................................. 49

Symach .......................................................... 16

Garden Grove Kia ............................................ 33

Tacoma Dodge-Chrysler-Jeep-Ram ................ 31

Glenn E. Thomas Dodge-Chrysler-Jeep ........... 15

The Bay Area Automotive Group ...................... 53

GM Wholesale Parts Dealers ........................... 63

Tsunami Compressed Air Solutions ................. 30

Honda-Acura Wholesale Parts Dealers .......36-37

Vintage Flatz/Cumberland Products ................ 27

Hyundai Wholesale Parts Dealers .................... 66

Volkswagen Wholesale Parts Dealers .............. 62

Industrial Finishes and Systems .................. 7, 72

Volvo Wholesale Parts Dealers ........................ 68

Restore Crashworthiness with Corrosion COLUMNISTS

Protection—Keys to a Safe and Proper

Anderson - Five Years of Data Shows ‘Who

Collision Repair .............................................54

Pays’ Surveys Making a Difference ...............38 Attanasio - Are You Defending Your Good Name Online? ......................................46 Phillips - Preparing & Training the Agents of Change in Future Technology ....................50 Sisk - AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID ........42 Yoswick - Committee Demonstrates How Same Part Can Be Described Differently .......52 Yoswick - Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler .......................40

SEMA360 Buyer Registration Open ...................10 Speaker Highlights Common Challenges Involved in ADAS Calibration .........................67

Toby Chess: 40-Plus Years of Service to the Industry He Loves .....................................1 Toby Chess: Best Practice for Air Conditioning

NATIONAL A Look at Kidney Disease and Ways to Help Toby Chess ...........................................24 Allstate, GEICO Among Large Auto Insurers Facing COVID-19 Rebate Backlash ................66 As Hurricane Season Arrives, CARFAX

Repair, R&I and Replacement ........................60 Toby Chess: Best Practice for Pre and Post Scans....................................................60 Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson .....62 Uber Plans to Have an All-Electric Fleet by

Provides a Flood of Information .....................71

2030 and a Zero-Emissions One by 2040 .....68

ASE Survey Finds Adaptions..............................71

White Named to Women in Automotive Board....64

CCC AutoClaims Snapshot—August 2020.........71 Charitable Roundup: AutoNation’s Enhanced Drive Pink Campaign and Subaru’s Push

Will Burgeoning E-Commerce Hurt the Collision Repair Industry?..............................48

autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 3

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Selah, WA, Firefighters’ Vandalized Cars to be Repaired for Free by Emily Goodell, YakTriNews.com

After two days with no sleep, battling the Evans Canyon Fire and risking their lives to protect hundreds of homes threatened by the wildfire, three Selah, WA, firefighters returned to their fire station early Sept. 9 to find their car windows smashed. “It is a sad day when criminals will prey on the first responders that are potentially keeping them safe,” Yakima County sheriff’s spokesperson Casey Schilperoort said. “I am sure all they wanted to do was drive home and sleep; now they have to deal with this mess and insurance companies.” But after one firefighter posted pictures of the damage, the Selah community rallied to help. Local businesses donated the materials, money and labor to fix the car windows and community members donated money, water, food and other supplies for those still fighting the wildfire. “We are so grateful for the community’s support,” Selah Fire Chief Gary Hanna said. “Anytime we have any kind of event like this, we

get the same response: people, everywhere, wanting to help.” Community members flooded local Facebook groups with messages of support, offering up their properties for firefighters to park their vehicles and offering to set up watches outside the fire station to make sure their cars are safe. Hanna said it appears nothing was taken and that the windows were

“The true heroes are the firefighters, not us, we just want to make sure we get them taken care of. They deserve it.” — Bob Dexter broken as an act of vandalism. He also said he’s working to get approval to budget in getting security cameras for all the fire stations next year. “When you just vandalize the cars, to me, that’s directed directly at the firemen,” Hanna said. “There’s no other intent there, other than just doing it to the firemen.” Yakima County sheriff’s deputies are investigating the vandalism. No arrests had been made as of the evening of Sept. 9.

Fix Auto USA Expands Oregon Footprint With Fix Auto Clackamas Fix Auto USA on Sept. 15 announced its newest location in the growing network, Fix Auto Clackamas in Portland, OR. Fix Auto Clackamas is locally owned and operated by franchise partners Camille Eber and William Bray, who, along with Dave McCollum Jr., represent an optimistic ownership group for the Clackamas location. Together, Eber and Bray also operate two additional Portland Metro locations, Fix Auto Gladstone and Fix Auto Portland East. “It’s always fulfilling to witness existing franchise partners leverage our platform to expand their operations, as Camille and William have done twice now. As with Fix Auto Lake Forest and Fix Auto Temple City, this location becomes the latest example of a business who sees opportunity while many see challenging times,” said Fix Auto USA President Paul Gange. “Camille and William carefully plotted this expansion and found a great location in Clackamas, an area that can greatly benefit from our service offering and brand promise.

With vehicle repairs already covered and countless donations made to the Selah Fire Department, Hanna said he encourages people to donate to the American Red Cross or other places that are helping those people who have had to evacuate their homes due to the ﬁre. Just hours after oﬀering up Selah Insurance Services as a drop site for donations, Ginger Tyler said her

We couldn’t be more excited to continue seeing our footprint expand in one of our inaugural markets.” “Since beginning the process of launching a new store, we have been met with overwhelming support from Fix Auto USA, and as a result are extremely optimistic about our future. We are comforted in the stability the brand oﬀers, the many resources at our disposal and the expertise the brand employs,” said Eber. “On behalf of our Clackamas ownership group, I know it’s an excellent time to expand, to capitalize on this opportunity, and am happy to be doing it with Fix Auto USA.” “We launched Fix Auto USA in 2011 knowing many owner-operators would ultimately leverage our platform to expand their operations. As one of our founding franchise partners, it is gratifying to see Camille and William do just that—expand. On behalf of the entire Fix Auto USA family, we welcome the team at Fix Auto Clackamas,” added Gange. Source: Fix Auto

lobby was packed with Gatorade, water bottles and snacks for the firefighters. “There’s money being dropped off every 15 or 20 minutes,” Tyler said. “I probably still have another 30 unanswered texts and Facebook messages ‘cause everybody’s trying to help.” Broadway Bound Dance Academy, another donation drop site, posted photos Sept. 9 on Facebook showing piles and piles of donated

supplies. Coffee At Tiffany’s also offered up their drive-thru coffee shop as an easy way for people to drop off their donations—starting with a donation of $100 from the coffee shop itself. Northwestern Auto Glass owner Bob Dexter offered up new car windows—free of charge—and ordered them Sept. 9. He said with everything the firefighters are dealing with, he wanted to do his part to ease a little of the burden. “I want to help any way I can; I’m not a firefighter, so the only way I can really help is maybe help those guys out,” Dexter said. “The true heroes are the firefighters, not us, we just want to make sure we get them taken care of. They deserve it.” The service department at Brian Harris Used Cars said they would donate their time, space and labor to install the new car windows, while Johnson’s Mobile Detailing offered up free detailing for the firefighters’ cars to get rid of any remaining broken glass inside. We thank YakTriNews.com for reprint permission.

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Several Classic Cars Destroyed by West Coast Wildfires by Steven Symes, Motorious

If you’ve been paying attention to the news at all, you know there are several wildﬁres raging in California, Oregon and Washington. Many of the ﬁres have started suddenly and spread quickly, destroying neighborhoods ruthlessly.

Credit: Stock photo image by Saiho

Among the burned wreckage have been quite a few classic and collector cars, which is truly a sad sight to behold. We’re ﬁrst and foremost a collector car site, so our focus is always on the rare, desirable vehicles in any news story. However, it’s hard to not be astounded at the

loss of life, homes and livelihoods from the fires in California, Oregon and Washington. Many have driven through what can only be described as a hellscape with fire pushing in on both sides of the road and smoke obscuring their view. Others had to be airlifted out as the fire closed in on all sides. We can’t even begin to imagine the fear that causes, or the devastating feeling of returning to your house to find everything is gone. For example, a couple in Vacaville, CA, were evacuated because of the approaching wildfire. When they returned, they found their garages, which housed more than a dozen classic cars, had been burned out. From the looks of things, the cars are pretty much done for now. The husband said he feels “kind of numb” about it all, noting the insurance likely won’t cover all the damages. Not only that, he noted the personalized details simply can’t be replaced. Video footage out of the Shaver Lake area near Fresno, CA, shows massive destruction. A first-genera-

tion Ford Bronco sits surrounded by ashes, the tires burned right oﬀ the wheels and the windshield frame warped as it lays on the front seat frames, the upholstery having also been consumed. Early drone footage of areas in Oregon where people haven’t been allowed back in reveal absolute devastation. Houses and garages are leveled, the carcasses of countless vehicles partially buried in the rubble. If the ﬁre didn’t destroy the cars, the collapsed structure which was supposed to protect them did. No doubt we’ll hear more stories of prized cars destroyed, perhaps beyond the point of making a restoration practical. In a year where riots and coronavirus lockdowns have already made vehicles scarce, this isn’t great news for people in general. Sure, it makes certain classic cars more valuable since scarcity drives prices up, but it also continues to incentivize already-rising car theft rates. Plus, we’re just not fans of senseless destruction. We thank Motorious for reprint permission.

SEMA360 Buyer Registration Open Attendee registration for buyers and resellers to participate in SEMA360 is now open at www. sema360.com. Available to SEMA-member buyers at no cost, SEMA360 is the new B2B online marketplace, taking place Nov. 2-6, that provides the industry with a robust and viable solution for conducting business in the absence of the SEMA Show. Leveraging the SEMA Show’s exclusive database and its partnerships with worldwide media, SEMA360 will give participants the ability to make quality connections and conduct valuable business that will support growth in the coming year. The fee is $25 for qualiﬁed buyers who are not SEMA members. The fee is waived for buyers who are SEMA members. For more information, visit www.sema360.com, call 909-3960289 or email semashow@sema. org. Source: SEMA

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NICB Commends Hawaii Gov. Ige For Stopping Fraudulent Towing Companies David Glawe, president and CEO of the National Insurance Crime Bureau (NICB), issued the following statement in response to Hawaii Gov. David Ige signing Senate Bill 2384. “We are pleased Gov. Ige signed into law Senate Bill 2384 that stops rogue tow truck drivers from preying on unsuspecting accident victims, scamming them out of hundreds to thousands of dollars. “In my previous role as the former under secretary of intelligence and analysis and chief intelligence oﬃcer for the Department of Homeland Security, I had the opportunity to work with Gov. Ige on combating criminal organizations and threats targeting Hawaiians. I look forward to working with the governor to discuss other ways we can share information and defend against unfair or illegal practices that prey on the most vulnerable. “We also want to thank Sen. Rosalyn ‘Roz’ Baker and Sen. Karl Rhodes for sponsoring this legislation and ending a scheme

responsible for taking thousands of dollars from the pockets of consumers across the state of Hawaii. “Hawaii is one of several states where we have seen an uptick in rogue tow truck drivers arriving, unsolicited, at the scene of

Without set rates, some towers have been known to charge motorists or their insurers thousands of dollars for a few-mile tow, and hold the car hostage incurring storage fees until the owner can aﬀord to get it out.

“NICB will continue to work with lawmakers in the House and Senate to stop this type of abuse on consumers.” REPORT FRAUD: Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling tollfree 800.TEL.NICB (800.835.6422) or submitting a form on the website.

Preliminary estimates from the National Safety Council based on the ﬁrst six months of data from all 50 states tell an erratic story about the nation’s driving behaviors and the impact of COVID-19 on roadway safety. The U.S. experienced an estimated 20% jump in the death rate—an indicator of how safely drivers are using the roadways—between January and June 2020 compared to the same six-month period in 2019. The rate increase comes in spite of a 17% drop in the number of miles driven between January and June. The total number of deaths is up 1% from six-month ﬁgures in 2019. According to NSC estimates, the 20% increase in the death rate is the highest jump NSC has calculated for a six-month period since 1999.

Source: NICB

Source: NSC

“This is a big step in the right direction by setting towing fees for vehicles involved in an accident. Without set rates, some towers have been known to charge motorists or their insurers thousands of dollars for a few-mile tow, and hold the car hostage incurring storage fees...” — David Glawe an accident and presenting themselves as an immediate solution to towing your vehicle. Many drivers, understandably shaken following an accident, might agree to the tow unaware they may be ‘on the hook’ for thousands of dollars in towing and storage fees before you get your vehicle back. “This is a big step in the right direction by setting towing fees for vehicles involved in an accident.

NSC: 20% Jump in Motor Vehicle Death Rates

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Toby Chess has never slowed down. He’s taught thousands of body technicians skills that are used every day to fix cars the right way—Toby’s way. He’s been to almost every state in the union, teaching and imparting more useful information than most in this industry will ever know. Chess is well-known as an I-CAR program instructor, training specialist and renowned industry writer, but also for his work with first responders and advocacy for body shops and consumers as well. Now he has encountered another challenge with his battle against end-stage kidney disease. He has been undergoing dialysis for the past 30 months, but hasn’t slowed down for even a minute, and is still doing everything he can to continue on his path. Toby’s passion for cars started back in the late 1960s, when he began working on old Porsches. His first project was a 1955 Speedster, and over the years, he became a Porsche expert, restoring several. In 1972, Toby and his father opened a salvage yard in Culver City, CA, specializing in Volkswagens. It had a good run until the Chess family stepped away from the business 21 years later. No longer working for his father, Toby took all her had learned about the collision repair industry and was eager to get out there and take on the world. During the next few decades, Toby worked in several capacities for independent shops and MSOs in the Los Angeles/Orange County area. He built a shop for a Honda dealership, was a regional manager for a chain of nine stores, and even worked for three years as a fraud investigator for an insurance company. In 2004, Toby started working toward becoing an instructor for I-CAR. One year later, he made a life-changing decision to take his classes on the road, when he bought a trailer and a truck and started traveling nationwide to conduct I-CAR welding instruction and testing. In his very first I-CAR welding class, Toby had 26 students, and half of them failed. So, he showed them

how to do it correctly, and realized he really enjoyed it. “I thought, I can take this on the road,” Chess said.” I could see that there was a real need for MIG and aluminum welding instruction, so I set up the road show, and it grew from there. “I hit Illinois, Indiana, Washington, Georgia, Colorado and all of California during those first years. I went where I was needed and stayed there until everyone knew how to weld. I stayed at a hotel in New Mexico for almost a month because they really needed me there. It started I-CAR’s mobile programs, which were successful and got great reviews.” During the first 40 days of his road trip, Chess tested more than 100 technicians, a number that blew up to approximately 800 during that first year. To date, Chess estimates there are more than 20,000 collision professionals out there who’ve taken his classes. It’s been a busy schedule to say the least, because during much of the time, he has worked a regular job at Kent Automotive, as well as serving on the Society of Collision Repair Specialists board and acting as a featured speaker at Collision Industry Conference and SCRS events. Other impressive things on Toby’s resume include his roles as co-chairman of the Write it Right Committee and an induction into the Hall of Eagles in 2003. Toby loves being able to teach someone and then watch him or her excel, he said. “It all comes down to how to make a good weld each and every time. I am still doing it today, and I never tire of it. I have a lot of good friends who passed one of my tests 10 years ago.” His teaching style has never changed, he said. “I learned how to simplify things so that people can absorb the information more easily, and I also try to make it fun. Early on, I could see that I was connecting with them because they could see that I really cared. After a while, I figured that I can teach someone how to weld in 20 minutes. I have a knack for this, plus I love it!” After visiting more than 5,000 shops and teaching more than 100,000 students, Toby now has former I-CAR students all over the country. “People come up to me all the

time and tell me that I taught them how to weld. Two weeks ago, a guy walked up to me at a Home Depot and said I trained him to weld many years ago. Yes, it is satisfying.” In addition to his teaching and mentoring, Toby is known for stepping up and helping others when in need. He helped an organization called Camp Make a Dream get a new bus, played a big role in three or four diﬀerent toy drives at Camp Pendleton, and worked to establish a collision repair tech department at Belmont High School in Los Angeles. Known as a leading industry writer/columnist for more than two decades, Chess began writing for Autobody News in 2008, with his “Hey Toby!” series, and has written close to 100 articles for the publication since. He covers every aspect of the industry, with a focus on things like paint, parts and procedures. He has also written for Body Shop Business, ABRN and Tire Review, to name a few others. “I started writing in the late 1990s and I like it,” Chess said. “I write the way I talk and I try to ﬁnd topics that

will provide information and tips that can be used in shops.” During every step of the way, Toby’s employers have liked his managerial and organizational skills and his “can do” attitude, and it’s conveyed succinctly in the text accompanying a recently established GoFundMe account. “Always the ﬁrst to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule,” according to the GoFundMe page established to help him. “Toby is undergoing dialysis three times a week, for four hours per treatment. “This fund represents a way for an industry that is grateful to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” As a lifelong giver, Toby was a See Toby Chess, Page 22

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Training & Networking “SOPs help walk you through each step of the repair process,” said Chess. “Body shops are going to need more of this in the future.” I recently talked to Chess about his predictions for the industry as a result of COVID-19 and what shops will need to be successful in the future. What changes have you seen at shops since COVID-19 and how do you think this will affect their businesses? Although volume is down in many shops, the good news is that most shop owners I have talked to say their bottom line is better today than it was before. This is because they were forced to make adjustments in the current environment and look at incorporating “lean” practices at their companies. Shops are rethinking how they operated previously and changing their business practices to become more efficient. Afterward, they often say they’ll never go back to doing things the way they did before. The key is to set up a good foundation by creating SOPs throughout your shop, such as picture taking, blueprinting and parts handling. If you don’t have good processes to follow, it doesn’t do your business any good. How can SOPs help shops repair vehicles more effectively and efficiently? When I ask body shops what they do, they usually tell me, “We repair vehicles.” Think about the following: Does a body shop not give a guarantee that the car will behave in the same way as before the repair? Do they not guarantee the car is back to its original length, width and height dimensions? Do they not guarantee the paint for the life of the repairs? Do they not guarantee that it will have the same corrosion protection as the OEM provides? My contention is that’s not repairing a vehicle; it is remanufacturing one. There’s a difference. If you agree that it’s a remanufacturing process, you can look at what OEMs do during that process and put it to use at your shop. OEMs have an SOP for everything; body shops should have them too. When cars come to a facility, technicians ideally fix them the same

way every time. Obviously, each dent on a car is going to be different, yet the process used should be the same. If I were a shop owner, I would have an SOP for every process in the shop to ensure a quality and proper repair. Once those are in place, training becomes key. What will collision repair training look like in the future? It’s going to be a mixture of hands-on and in-person. Like many other training organizations, I-CAR has transitioned the majority of its classes online right now. Typically, shop owners haven’t learned techniques online and many of us aren’t big fans of learning this way, relying on hands-on instruction for most of our careers. We need to recognize that many companies will be offering virtual training in the future and shops will need to adapt. However, when it’s available, I find that hands-on training is extremely beneficial. With the tremendous need for good-quality training, new opportunities are being offered through organizations such as I-CAR, the Automotive Management Institute (AMi), VeriFacts Automotive and VECO Experts. I also think more and more OEM training will be required in the future. Auto manufacturers are starting to take an active role in saying how they want their cars repaired. Just look at the John Eagle case. The insurance company didn’t pay the difference to have the vehicle repaired the proper way and the shop acquiesced and didn’t follow the OEM procedure. Who should the shop have been working for? It’s critical to remember that shops always work for the customer. OEM certification programs continue to grow and are offered by most manufacturers, including Porsche, Audi, Mercedes-Benz and BMW, just to name a few. There is also the University of Toyota, which is called Toyoland. Although certification programs are being offered across the country, I find many shops aren’t taking advantage of these opportunities. If technicians don’t have proper training, they will not be able to repair vehicles based on the OEMs’ specifications. Shops usually find that once they receive training on a procedure, it makes all the difference in the world.

How can shops learn more about the issues affecting the collision repair industry? They have to read! There is so much information offered by industry publications and other information available on the internet but often, people don’t take the time to look at it. Not only do they need to read about the industry, they also need to become part of the industry. I recommend that shop owners and managers get out and network. Industry events, such as the Collision Industry Conference (CIC), offer attendees the opportunity to interact with others and find someone who has a similar way of looking at things. It also allows you to learn new ideas. Many of today’s successful operators have realized the importance of getting out of their environments to see what is going on across the country. I highly encourage shops to join an industry association, such as the Society of Collision Repair Specialists (SCRS.) They offer so many helpful resources and are dedicated to supporting the industry. There is a lot of free information on their website and the membership fee is money well spent.

As a result of your involvement with the March Taylor Foundation and other initiatives to train technicians, what advice can you offer to find qualified workers? In the past, a technician could just open the hood and figure out how to repair the car. That’s no longer the case. As new technology is developed, shops will not only need the proper tools and sophisticated equipment, but they will also need to know how to use it properly to ensure the vehicle is brought back to the car manufacturer’s specifications. One of the biggest challenges shops are starting to have and will continue to have in the future is finding someone who can address the electronics on a car as well as Advanced Driver Assistance Systems (ADAS.) The need for calibration is going to be paramount in the industry and many dealers don’t have the ability to do it. I think mentoring is really important, but we don’t do it enough. Everyone talks about the need to find good talent and train people, but shop owners and managers need to step out of their comfort zone and take the initiative to make a change.

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Glenwood-Caribel, ID: A Hobby and a Career by Nancy Gillins, Clearwater Progress

The man loves cars. Max Childs has been fascinated with cars since he was a child watching them drive by his window, and says he was a “car kid” who grew up into a “car guy.” He started working cleaning up cars at dealerships as a teen in Southern California, and after high school graduation—and a stint in the U.S. Navy as a radio man on a submarine during the Vietnam War—went right back to it. Life in the big city wasn’t for Max, so he moved to Northern California, where he could enjoy backpacking and other outdoor activities, and then went to work for a collision repair shop doing auto painting. After moving to Lewiston, ID, in 1991, he did the painting for repair shops, opened his own business painting jet boats and found fulfillment working with troubled youth in the Lewiston Detention Center and in group homes. Max realized he couldn’t advance in that type of career without the ap-

ration business, and he especially enjoys working on classics and restomods. A restomod car is restored with the addition of modern parts that were not on the vehicle when it came from the factory. Max owns a total of eight restomods and classics. His vehicles of the moment are a classic 1954 Chevrolet and a restomod 1964 Chevelle. The Clearwater Classics Car Club is an active, loosely knit group of about 20 families from around the area that meet twice a month just for the fun of it. All members own and drive clasMax Childs at his shop with some of his cars. Credit: sic cars or restomods— Nancy Gillins which typically include In 1996, Max moved to the Shenan- those built before 1976—and park doah area, off Glenwood Road, to along the street of whatever local what he calls “God’s country,” cafe they choose to frequent at the and built his shop, where he lived time. They are proud of their beauwhile constructing his beautiful ties and enjoy the comments and questions from passersby. There log home, by himself. Max’s shop is the center of are no officers and no dues for this his collision repair and auto resto- club. propriate degrees, but could still do what he loved most—work with cars.

The Car Club sponsors a show during Kamiah BBQ Days, with help from the Chamber of Commerce, and the Kamiah Show and Shine. The benefits from the Show and Shine are sent to the Veterans’ Home in Lewiston to be used for various activities. The club also attends car shows and tries to park as a group. Several of the members, including Max and his wife, Teresa, drive to Reno, NV, for the Hot August Nights event, which can draw as many as 6,000 registered classics and street rods. One of Max and Teresa’s favorite club activities is taking day trips, such as caravanning for pizza in Riggins, or to a winery in Lewiston. Recently, the group spent five days camping at Deyo Reservoir, near Weippe. If this isn’t one man’s idea of the great life, I don’t know what is! We thank the Clearwater Progress for reprint permission.

www.autobodynews.com

Farmers Insurance® Assisting Customers Impacted by West Coast Wildﬁres Multiple wildfires have burned millions of acres across California, Oregon and Washington, prompting the evacuation of hundreds of thousands of residents. As the fires continue to spread, the Farmers Insurance Catastrophe Response Team is helping assist impacted customers with claims. “We are committed to helping our customers through this devastating situation,” said Jim Taylor, head of claims customer experience for Farmers Insurance. “Safety is our top priority, and we urge those affected by these major wildfires to heed warnings issued by emergency personnel and be ready to evacuate at a moment’s notice.” Customers who have been impacted by the fires can file a claim by: Visiting Farmers.com or Foremost.com; calling their agent; using the Farmers® Mobile App through their smartphone or tablet; texting REPORTCLAIM to 29141; or by calling a 24-hour claims center:

• Farmers Claims Contact Center: 1-800-435-7764 • Foremost® and 21st Century® customers can also use 1-800435-7764 • Bristol West® customers can call 1-800-274-7865 • Spanish-language claims assistance is available to Farmers customers by calling 877-RECLAMO (877-7325266) To help reduce the spread of COVID-19, and to make the process easier for customers, Farmers Insurance is offering a number of technological solutions for processing claims. Customers who file a claim will be able to work directly with a specially trained claims professional to guide them through the claims process. Visit farmers.com/ catastrophe for updates. Source: Farmers Insurance

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CAA More Essential ing legal consultations with our association attorney, assistance in dealing with formal complaints to the Department of Insurance, and special CAA member rates with our preferred providers offering shop insurance, credit card processing and more—savings from CAA member benefits often exceed annual dues. In addition to our lobbying efforts, the CAA has a seat on the BAR.” Proposed bills that can affect body shops on many levels will be hitting Sacramento this year and next, and if groups like CAA aren’t there to fight or support them, doing business could be even tougher. “With a great lobbyist like Jack Molodanof, we are staying ahead of the game,” Johnson said. “Our Advisory Committee grants our membership a direct voice on regulatory and legislative matters that impact the entire collision repair industry.” Keeping local people helping its respective chapters has been effective. “We have representatives

in northern and southern California who are available to answer any questions you have on topics such as labor rate surveys, regulatory matters, compliance and towing and storage fees. And although we are unable to host in-person chapter meetings, we have and will continue to hold virtual meetings open to all members on a variety of important

portunity to take advantage of the CAA’s member-exclusive benefits, Shop Tips and Resources, access to labor rate surveys and our expertise during the pandemic. During times like these, it is critically important to the health and stability of our businesses and the collision repair industry as a whole. We all need to continue to proceed in a safe, healthy and

“That is why you need an organization like CAA, because there is power in numbers,” — Rick Johnson topics. We recently held a very informative presentation from BAR Representative Matt Gibson—virtually, of course, and it was well-attended.” Non-CAA shops are missing out on crucial information that’s not only important to them and their shops but for the health and continued success of the industry statewide, Johnson said. “There are many shops that are not members of the association and therefore have not had the op-

prudent manner to ensure the safety of our employees and customers and the sustainability of our industry.” CAA is also currently in the process of bringing back its Golden Gate chapter, covering a region from Redwood City north to Marin. “It was a great chapter for many years. But it went dormant, and now we have some interest in bringing it back. There are a lot of top-notch shops in that area, so rejuvenating that chapter would be key.” Times are always a-changing,

Johnson said, but being abreast of everything going on in an ever-changing industry is no longer an option. “We know that fewer and fewer people will be commuting to work anymore because they have seen that working virtually works. But on the other hand, used car sales and RV sales are rising, and more and more people don’t want to take public transportation for obvious reasons. The shops who can adapt and tap into all of the things CAA offers will have an advantage over their competition.” In conclusion, Johnson invites members and non-members alike to visit CAA’s website at www.calautobody.com for a list of legislative accomplishments, up-to-date labor rate surveys, shop tips, upcoming events and more.

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Nevada OSHA Issues 11 More Citations to Businesses by Michael McGrady, The Center Square

The Nevada Occupational Safety and Health Administration (OSHA) and the Division of Industrial Relations said 11 businesses have received citations for failing to meet COVID-19 health and safety workplace standards. The citations come after Gov. Steve Sisolak earlier this month announced a “targeted approach” on enforcement for businesses and residents not following the necessary physical distancing regulations and public health standards meant to reduce COVID-19 spread. Ten of the businesses cited for the week beginning Aug. 10 are in Clark County and the Las Vegas Valley area. More than 700 initial inspection visits were conducted over that week, the Nevada OSHA said. A Neiman Marcus location in the Fashion Show Mall located off the Las Vegas strip was cited for non-compliance. The prior week, several stores in the same mall were also cited, including For-

ever 21, a location of Saks Fifth Avenue and Shiekh Shoes, all receiving fines of $8,501. Neiman Marcus received a fine of the same amount. Other businesses cited by OSHA include the Metro Pizza location in Las Vegas, a Walmart in Mesquite and a 7-Eleven location in Las Vegas. The only citation issued outside of Clark County was for an auto garage in Fernley, NV. “Since observations began in late June to determine compliance with mandated health and safety measures under the Governor’s Declaration of Emergency Directive 024 and Nevada OSHA’s Guidance for Roadmap to Recovery, DIR officials have conducted 6,145 initial visits at business establishments finding a cumulative 88% statewide compliance rate, a 90% compliance rate in northern Nevada and 87% compliance in southern Nevada,” a press release said. We thank The Center square for reprint permission.

Three Suspects At Large in Sacramento-Area Auto Fraud Scheme Three suspects are at large after being charged with insurance fraud and conspiracy for their alleged involvement in an automobile insurance fraud scheme where they staged vehicle damage in order to submit bogus vandalism claims for undeserved insurance payouts. After receiving a referral from GEICO, the California Department of Insurance launched an investigation that resulted in Malissa Anne Nuckles, 39, of Antelope, CA, admitting she submitted a false vandalism claim involving her 2003 BMW that she recently purchased from a Sacramento used car dealership, Abe’s Motorsports. The BMW was covered in scratches that led to the totaling of the vehicle. David Mohammadi, 37, of Sacramento, from Abe’s Motorsports, sent GEICO the sales contract for the BMW. The investigation found the vehicle was on the dealership lot for approximately two years prior to being sold to Nuckles and that the dealership was likely trying to eliminate old inventory. During the investigation, Nuckles admitted the vandalism was staged and that Mohammadi direct-

ed her in filing the claim. Nuckles also disclosed her husband, Jeffrey Combs, 54, worked as a mechanic for Abe’s Motorsports. Department detectives later discovered Combs filed a similar vandalism claim where his 2006 Chevy Cobalt sustained numerous panel scratches that totaled the car. Combs also allegedly purchased the car from Mohammadi. In Combs’ claim, GEICO never became suspicious and Abe’s Motorsports received the insurance settlement. Mohammadi and the owner of Abe’s Motorsports, Ayoub Shawesh, 34, are suspected of defrauding GEICO in this prior claim. Mohammadi self-surrendered and was booked into Sacramento County Main Jail. The three remaining suspects—Nuckles, Combs and Shawesh—are still at large. If anyone has any information regarding the at-large suspects please contact the Department of Insurance at 916854-5744.The Sacramento County District Attorney’s Office is prosecuting this case. Source: California Department of Insurance

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Tesla Employee Foregoes $1M Payment, Works With FBI to Thwart Cybersecurity Attack by Simon Alvarez, Teslarati

Sometimes, the events that transpire inside a company could be just as exciting and nail-biting as the most popular thrillers in fiction. In Tesla’s case, such a scenario recently played out, as a worker in Gigafactory Nevada ended up turning down a $1 million incentive, working closely with the FBI and thwarting a planned cybersecurity attack against the electric car maker. On Aug. 25, the U.S. Department of Justice announced the arrest of Egor Igorevich Kriuchkov, a Russian citizen accused of conspiring to breach the network of a U.S. company and introduce malware to compromise said company’s networks. Media reports about the incident have identified the U.S. company to be electric car maker Tesla. Interestingly enough, a criminal complaint filed by the FBI Las Vegas Field Office suggests the attempted cybersecurity attack is no ordinary hacking attempt—it may very well be part of a well-financed, organized scheme. The remarkable story began when a Russian-speaking, non-U.S. citizen working at Tesla’s Gigafactory Nevada was contacted by Kriuchkov. The employee, whose identity has not been revealed, has access to the electric car maker’s computer networks. On July 16, the Russian citizen contacted the Giga Nevada employee through WhatsApp, asking to meet with him in Sparks, NV. As noted in a report from Clearance Jobs, the fact Kriuchkov approached a Russian-speaking, non-U.S. citizen working at Gigafactory Nevada suggests the team behind the cyberattack attempt has done their research well. The Tesla employee, some col-

leagues and Kriuchkov met socially Aug. 1-3, which included a trip to Lake Tahoe. Interestingly enough, Kriuchkov reportedly declined to be present in any photos taken during the trip. At one point when the group

ee continued to communicate with Kriuchkov, trying to get as much information as possible about the hackers’ processes, procedures and infrastructure. The efforts proved fruitful. In

was taking a photo during a picturesque sunset, Kriuchkov reportedly remarked he would “just remember the beauty of the sunset and did not need a photograph.” After the relatively harmless Lake Tahoe trip, the Russian citizen asked the Tesla employee to meet with him for some “business.” During their “business” meeting, Kriuchkov revealed his hand. The plan involved the Tesla employee inserting malware provided by Kriuchkov and his associates into the electric car maker’s systems. After the malware is inserted, a distributed denial of service (DDoS) attack would occur that could allow the hackers to occupy the Tesla information security team. The malware would also allow the hackers to extract corporate and network data, which would be held ransom until the electric car maker paid up. For his participation in the ploy, the Gigafactory Nevada employee would receive $500,000, later raised to $1 million, to be paid in cash or bitcoin. Unfortunately for Kriuchkov and his team, the Giga Nevada employee reported the planned cybersecurity attack on Tesla, which, in turn, contacted the FBI. The FBI stepped in, and with the agency’s help, the Tesla employ-

one conversation, the hacker reportedly boasted his team had recently received a ransom worth more than $4 million from a high profile company. Later reports would reveal the company in question was CWT Travel, which reportedly paid a ransom of $4.5 million. During a meeting Aug. 19, the Tesla employee, wearing a wire from the FBI, met with Kriuchkov. The hacker agreed to pay an advance of $11,000 to the Giga Nevada worker. Two days later, on Aug. 21, the Tes-

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la employee was contacted by the hacker once more, who stated the project was being “delayed” and all payments relating to the plan would not be transferred until a later date. Kriuchkov also informed the Tesla employee he was leaving the area the following day. Behind the scenes, the FBI was able to get in touch with the hacker, who, in turn, drove overnight from Reno, NV, to Los Angeles in what appeared to be an attempt to flee the U.S. Kriuchkov was unsuccessful, as he was arrested Aug. 22 in Los Angeles. The hacker is currently being detained pending trial. Fortunately for Tesla, the company was able to get away from what could have been a serious cybersecurity attack, and it has one employee to thank for it. It takes a lot, after all, to say no to a $1 million reward, as others have compromised more far more for far less. We thank Teslarati for reprint permission.

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Toby Chess little uncomfortable about the GoFundMe page at ﬁrst, but now he has decided to accept it graciously. “My wife laid it out to me. Why not let someone do something for you and not complain about it? I am so grateful for everyone who has donated, but to be honest—I hope I won’t need the money.” GoFundMe account link: https:// www.gofundme.com/f/payitforward -to-toby-chess

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As Wildfire Victims Return Home, NICB Urges Caution to Avoid Fraud Cal Fire personnel continue to battle blazes as hundreds of thousands of acres burn following recent lightning storms causing the evacuation of thousands of Californians. When evacuees return home, they could be faced with the long, somber task of rebuilding their homes and lives—and could be victimized by dishonest contractors looking to make a quick, corrupt buck. Following a disaster, victims are understandably confused and shaken by the damage or possible loss of their homes and belongings. Sadly, it is at this time crooked contractors arrive and press homeowners into paying out their insurance claim prior to the repairs being completed. Time and again, investigators with the National Insurance Crime Bureau (NICB) have seen these bad actors collect payment, and then disappear without completing the work that was promised. Typically, these disaster repair scams are unsolicited, beginning with a visit from a contractor who seeks to help victims rebuild.

Before hiring any contractor, call your insurance company. There is no need to rush into an agreement with a contractor who solicits your repair work, especially if it was not requested. NICB suggests you consider these tips before hiring a contractor: • Get more than one estimate. • Get everything in writing. Cost, work to be done, time schedules, guarantees, payment schedules and other expectations should be detailed. • Request references and do the research. • Ask to see the salesperson’s driver’s license and write down the license number and their vehicle’s license plate number. • Look out for out-of-state contractor licenses as well as outof-state vehicle registrations as these may also indicate possible fraudulent contractors. • Never sign a contract with blanks; unacceptable terms can be added later. • Never pay a contractor in full or sign a completion certiﬁcate un-

Once again California is being consumed by fire, causing substantial property loss and unfortunately some deaths. A fire in Vacaville, in the northern part of the state, not only took out a couple’s home, but also their three beloved classic cars. Stored in the garage was a reportedly immaculate 1949 Riley which is now just a charred frame. Also claimed by the fire was a 1959 Morris Minor and a 1967 MGB. All three are historically important cars. Each is a collectible and while they can be replaced, they had tremendous sentimental value. We’ve seen other car collections burned up in fires, both in California and elsewhere. And while it’s great to hear nobody was hurt, including the couple’s four cats and dog, it’s still sad to see such beautiful cars unnecessarily ruined. We’ll be fair and say it’s also tragic that their home burned down, but we’re a collector car site first so that’s our focus.

John Phillips, a retired music teacher who still plays with the Vallejo Symphony Orchestra, has a great attitude about the situation. “Everything can be replaced,” he told local journalists. There’s nothing to be done with what’s been lost at this point, so the man is right. However, it’s reported he’s especially sad the Riley was lost. It had been his father’s car until he passed away in 2011. The Morris Minor was driven to and from work by Phillips’ father. His wife, Patty, was home alone when the power went out at 1:30 in the morning. She opened the front door to see what was happening and felt a “blast of hot air.” An oﬃcial told her to evacuate, so she grabbed what she could. Unfortunately, driving one of those classic cars to safety wasn’t part of the plan. A fundraiser has been started to help the couple recover from the catastrophic loss. We thank Motorious for reprint permission.

Furthermore, some deceitful contractors will state they are supported by the government. However, the Federal Emergency Management Agency does not endorse individual contractors or loan agencies. Consumers should call FEMA for more specifics at (800) 621FEMA. Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800835-6422) or submitting a form on our website. Source: NICB

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til the work is ﬁnished. • Ensure reconstruction is up to current code. • Make sure you review and understand all documents sent to your insurance carrier. • Never let a contractor pressure you into hiring them. • Never let a contractor interpret the insurance policy language. • Never let a contractor discourage you from contacting your insurance company.

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A Look at Kidney Disease and Ways to Help Toby Chess by John Huetter, Repairer Driven News

Collision industry trainer, mentor and Hall of Eagles member Toby Chess is among the many Americans suffering severe kidney disease, undergoing dialysis and in need of an organ from a living or deceased donor. Colleagues have started a GoFundMe fundraiser to help Chess. “Toby Chess is known throughout our industry, not only as an amazing instructor with a plethora of technical knowledge, but for his willingness to give of himself, impart his knowledge to others and to ALWAYS do the right thing,” the GoFundMe campaign states. “Always the first to step forward and help others, our industry has the opportunity to pay it forward to our dear friend Toby, who is valiantly battling kidney failure as COVID-19 cripples his teaching schedule. “He has spent his life in service of others within our industry, and now has the opportunity to feel the reciprocal support from an industry that appreciates what he has done. Currently, Toby is undergoing dialysis three times a week, for four hours per treatment. This fund represents a way for an industry that is grateful, to recognize a wonderful man for his decades of service and volunteerism. For anyone that has ever been inspired by his words, motivated by his articles, informed by his seminars or videos, or simply touched by his generosity in sharing information.” Contributions can be made here. Chess’ high-profile example might leave collision repairers and other colleagues curious about kidney disease and organ donation as well. The Centers for Disease Control estimates about 15% of U.S. adults have some form of chronic kidney disease, with nearly all unaware they have it. Simple blood and urine tests will tip off doctors to the presence of the condition. The National Institute of Diabetes and Digestive and Kidney Disease said people with high blood pressure, diabetes, heart disease or a family history of kidney failure are demographics that particularly should get tested. The illness leaves excess waste

and water within the body—the damaged kidneys aren’t able to filter out the substances to the degree a healthy kidney would. Heart disease and stroke risks increase, and more specific illnesses like anemia or a weakened immune system can arise if the condition worsens.

Toby Chess, right, hugs his wife, Sheila, after winning one of many Society of Collision Repair Specialists honors. Credit: Provided by Aaron Schulenburg/SCRS

Some forms of kidney disease are manageable. However, Chess has Stage 5 chronic kidney disease, which is considered complete kidney failure. Ongoing dialysis is necessary to live. The dialysis process serves as a replacement for failed kidneys by artificially removing waste and water from the body, according to the National Kidney Foundation. Reaching a state of chronic or endstage kidney failure stage leaves a patient on dialysis permanently unless he or she can get a new kidney. According to the American Kidney Fund nonprofit, most patients have to wait three to five years before a kidney is available from someone who has died. Chess’s transplant facility, the University of California, Los Angeles, says the Los Angeles-area wait time is five to 10 years. However, living Americans are permitted to donate a single kidney or a piece of a liver to whomever they choose. “Kidney is much more common,” said Anne Paschke, spokesperson for the United Network for Organ Sharing, the organization that manages the national transplant list. Last year saw “nearly 7,000” kidney transplants related to living donors, she said. Prospective donors should contact the prospective recipient’s transplant center, which will evaluate whether the donor’s blood type

and antibodies are an appropriate match. Though it’s possible some of the preliminary testing can be done in the donor’s home area, prospective donors should still start the process by contacting the recipient’s local transplant center, Paschke said. For Chess, donors would visit www.uclakidneydonor.org and provide his name, Toby Chess, and date of birth, Aug. 6, 1945. About one in five donors are healthy enough to provide a kidney, according to UCLA. Assuming that threshold is met, blood type and antibody compatibility are the two main variables tested to determine a match, according to Paschke. A person with Type O blood can only receive a Type O person’s kidney. Someone with Type A blood needs either a Type A or Type O person’s kidney, and someone with Type B blood must have a Type B or Type O donor. However, Type AB blood means a recipient can use a kidney from any of the four blood types. Rh factor (the + or – associated

with a blood type) only matters “in some very rare cases,” Paschke said. It’s still possible for a donor to help their intended recipient even if both parties aren’t a match, Paschke said. A donor who isn’t a match for their intended recipient can be set up with a paired exchange. Here’s how it works. Let’s say Person A wants to donate to Person B and Person C wants to donate to Person D, but neither is a match for their recipient. But if A and D are compatible and B and C are compatible, then A donates to D and C donates to B. The two donors have still given a kidney, and the two intended patients received one, so it all works out. The transplant center would set up such a pair donation. The transplant center can sort all the willing donors and their desired recipients and see if a paired match would work. Paschke said some trades even involve more than two pairs of donors to obtain the required results. See Kidney Disease, Page 30

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Auto Insurance Fraud, Forgery Ring Unravels in California by Heather Turner, PropertyCasualty360

If you think you have a lousy boss, think again. Luis Manuel Burgos of Fresno, CA, recently self-surrendered to authorities after being charged with multiple felony counts of insurance fraud and forgery tied to his involvement with an organized fraud ring. He allegedly filed fake insurance claims on a former employee’s policy and intercepted undeserved insurance checks, according to the California Department of Insurance (DOI.) Two other individuals also were charged for their role in the scheme. Burgos, owner of B&R Private Security, arranged a casual deal with an ex-employee that involved a sub-lease for a 2016 Lexus vehicle. Burgos then filed several fraudulent claims for the Lexus and his personal car on the former employee’s insurance policy without their knowledge, said the DOI.

“This type of organized fraud increases auto insurance rates for all California drivers,” said Insurance Commissioner Ricardo Lara in a statement. “Insurers pass the cost of fraudulent claims onto other policyholders. This is not a victimless crime.” Former B&R Private Security employee Darlina Gutierrez Diaz also was charged for filing an injury claim after being a passenger in a collision and forging medical documents to receive additional paid time off of work benefits. Burgos allegedly aided Diaz in producing the false documentation. Another former employee, Steven Anthony Rogers, faces several criminal violations, including intercepting insurance checks by impersonating the policyholder and forging signatures. The alleged criminals face arraignment in October. We thank PropretyCasualty360 for reprint permission.

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Boring Co. Vegas Loop Expansion Looms as LV Monorail Files for Bankruptcy by Joey Klender, Teslarati

The Boring Company, an entity owned by Elon Musk, is poised to have its Las Vegas Convention Center loop expanded to more portions of the Sin City, after the area’s monorail filed for bankruptcy. The monorail is responsible for transporting residents and tourists around Las Vegas from different points of interest, but it has not been operational since March 18. Ever since the COVID-19 pandemic began in early 2020, public transit systems have experienced a large-scale dropoff in ridership. The organization is also facing increased costs in sanitizing and cleaning its buses and trains. Since large gatherings are prohibited in many areas, some public transit options are not available, which has hit the Las Vegas monorail hard in a financial sense. As a part of the bankruptcy filing, the Las Vegas Convention and Visitors Authority has agreed to purchase the monorail for $24.3

million, according to KTVS News. The monorail is 3.9 miles long and operated for the first time in 2004. It carries 5 million riders a year, the LVCVA said. However, it is missing significant points of interest, like McCarran Airport, which has attributed to its mediocre success, said Vice President of the Monorail Society Keith Walls. The LVCVA plans to continue to operate the monorail if the deal goes through, but it could mean the Boring Company project is set for a major expansion. The purchase of the monorail by the LVCVA would remove restrictions on where the Boring Company loop could operate. As of right now, there are restrictions as the monorail has non-compete rights, which limit the areas where the Loop can operate. As of right now, the Boring Company tunnel, known as the Las Vegas Convention Center loop, is under construction, and operation is “only a few months away,” according to Musk. The Loop is expected to be operational in January 2021.

Honda, GM Sign MoU

Interestingly enough, the LVCVA was the entity that approved the contract and accepted the Boring Company’s $52.5 million bid for an underground loop that will move around 4,000 people per hour. It will also cut down a 15-minute walk into a two- to three-minute ride. As of right now, the LVCC loop will transport people from the convention center across its massive campus. However, there are plans to extend the Loop onto the Vegas Strip along with other points of interest. These include a majority of notable Vegas hotels and the McCarran Airport at the bottom of the Strip. However, the Boring Company’s plans do not stop there. According to the map for the potential expansion, the tunnel could extend to Los Angeles, and a Boring Company tent was spotted at a location between the two cities that hints toward ongoing testing for the massive tunnel. We thank Teslarati for reprint permission.

General Motors and Honda on Sept. 3 announced they have signed a non-binding memorandum of understanding following extensive preliminary discussions toward establishing a North American automotive alliance. The scope of the proposed alliance includes a range of vehicles to be sold under each company’s distinct brands, as well as cooperation in purchasing, research and development, and connected services. Under the proposed alliance, Honda and GM would collaborate on a variety of segments in North America, intending to share common vehicle platforms, including both electrified and internal combustion propulsion systems that align with the vehicle platforms. Co-development planning discussions will begin immediately, with engineering work beginning in early 2021. Source: Honda, GM

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Charitable Roundup: AutoNation’s Enhanced Drive Pink Campaign and Subaru’s Push for Adoptable Dogs by Auto Remarketing staff

Causes with strong connections to AutoNation and Subaru of America—overcoming cancer and adopting dogs—are getting extra promotional attention from the dealer group and automaker, respectively. This week, AutoNation launched what the retailer is calling a “profoundly emotional” Drive Pink omni-channel media campaign to celebrate the victories that so many have had in their fight against cancer. Meanwhile, Subaru and the Philadelphia Union announced that Subaru Park, home of the Union that competes in Major League Soccer, will provide stadium seating to the likenesses of local adoptable dogs at home games in the 2020 season. AutoNation looked to begin this latest Drive Pink endeavor in a big way, as the first ad in the campaign was set to debut during Aug. 23’s national telecast of the 104th Indianapolis 500 on NBC. The company highlighted the campaign’s 30-second and 60-second spots showcasing cancer patients’ triumphs through their own video clips, moving montages of patients receiving the life-affirming news that today they are cancer free, celebrating their final chemotherapy treatments and joining together with family and friends to tell the world that cancer can be beaten. “These are our neighbors, our siblings, our parents and our children, all sharing their stories about resilience and encouraging others to never give up,” AutoNation said in a news release. Throughout each ad, the theme of never giving up is reinforced through the use of the smash hit “Don’t Give Up On Me” by multi-platinum pop artist Andy Grammer. “There is nothing more stirring than seeing real, everyday people announce to the world that they are cancer-free, and there’s nothing more inspirational for those struggling with cancer right now than to recognize that it’s a fight that can be won,” said AutoNation Executive Vice President and Chief Customer Experience Officer Marc Cannon. “What better avenue to kickstart this new campaign than the

‘Greatest Spectacle in Racing,’ the Indy 500,” Cannon continued. The campaign was created by Fort Lauderdale’s Zimmerman Advertising, AutoNation’s long-standing agency. It is scheduled to run across TV, digital and social media platforms beginning with the Indy 500 broadcast and continuing through the end of the year. The company mentioned ads also will appear during MLB, NBA, NHL, NCAA and NFL sports programming along with extensive placement during prime time on major networks, including CNBC and Fox Business. Airing will coincide with AutoNation’s FAST START sales event TV commercials, airing coast to coast, featuring 2016 Indianapolis 500 Champion Alexander Rossi, who joins AutoNation’s DRV PNK initiative as an ambassador. In addition, the company said Rossi will star and narrate a multi-channel social media campaign to raise awareness and funds to continue AutoNation’s fight against cancer. In an additional sports related DRV PNK effort, AutoNation has announced a partnership with the Miami Marlins to “Strike Out Cancer!” During the 2020 season, whenever a Marlins pitcher strikes out an opposing batter, the Marlins will donate $50 to the DRV PNK initiative. DRV PNK is AutoNation’s hallmark philanthropic initiative, a company-wide effort that focuses on charitable giving and volunteerism to raise awareness, generate resources and build support for diverse groups impacted by cancer. “AutoNation is committed to Drive Out Cancer as we race to over $25 million donated to cancer treatment and research,” the company said. More details about adoptable shelter dogs at Subaru Park Switching from cancer triumphs to canine companions, images provided by Subaru of those adoptable dogs will begin to appear during the Philadelphia Union home game on Aug. 25. These cardboard cutouts of dogs available for adoptions will temporarily fill in for real-life spec-

tators at the Union’s home opener and very first game played at Subaru Park. Inspired by the Union’s legendary Sons of Ben team supporter group, the “Dogs of Ben” cutouts will represent a real pup available for adoption in the greater Philadelphia area. Working with local shelters, including the Providence Animal Center, Subaru said in a news release that it will fill the stands at midfield with the cardboard fourlegged Union fans with the goal of uniting the real-life pups they depict with new owners. “At Subaru, our love for pets runs as deeply as our love for soccer, and from the onset of our partnership with the Union, we knew we wanted to bring our furry friends out to Subaru Park and bring awareness to adopting shelter pets,” said Alan Bethke, senior vice president, marketing at Subaru of America. “While home games may look a bit different this year, we hope the Dogs of Ben add some fun to gameday while helping to unite local dogs in the greater Philadelphia

area with loving owners,” Bethke continued. Subaru and the Union joined forces in February, kickstarting a multi-year stadium naming rights partnership that gave the name Subaru Park to the 18,500-seat sports and events destination and home of the Union. Together, the two companies said they are committed to supporting the greater Philadelphia community with charitable programs, including the Dogs of Ben program as an extension of the Subaru Love Promise vision. “We are thrilled to be hosting the ﬁrst Philadelphia Union game at Subaru Park on Aug. 25 and to introduce the innovative ways we are incorporating our fans, community, partners and even adoptable pets into a Union gameday,” said Philadelphia Union President Tim McDermott. “As a community-ﬁrst minded company and alongside our partner Subaru, we will continue to look for ways to help and highlight organizations in need.”

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Los Angeles Auto Show Pushed Back To May 2021: Report by Adrian Padeanu, Motor1.com

The COVID-19 outbreak has been canceling or postponing auto shows left and right, and it seems the Los Angeles Auto Show is no exception. Citing “three people familiar with the show’s planning,” Automotive News claims the L.A. event originally programmed to take place in the second half of November has been rescheduled for May 21-31, 2021. It is believed an official announcement from the show’s organizers confirming the new dates could come as early as this week. If the event due to take place in the City of Angels will indeed move to May next year, it means it’ll be sandwiched between the New York Auto Show due in April and the Detroit Auto Show (NAIAS) in June. As AN points out, it would be quite tricky for car manufacturers to decide where to unveil their shiny new models considering there will be three major auto shows in a three-month timeframe, rather than the usual seven-month window in a regular year. Because of the coro-

navirus pandemic, organizers of the shows in New York and Detroit had no other way but to cancel the events, which is the same thing we can say about the Paris Motor Show. It had been scheduled for early October, but it’s not happening anymore. As far as the Beijing Motor Show is concerned, it was supposed to take place in April and has been pushed back to the end of September. At the moment of writing, the show in China is still happening, Sept. 26 through Oct. 5. With the vast majority of auto shows canceled or rescheduled, automakers have decided to organize their own reveal events. Most of them are taking place exclusively online, hence why Motor1. com is publishing more livestreams than usual. A relevant example is the Mercedes S-Class W223 debuting in the coming hours Sept. 2, with the Jeep Grand Wagoneer concept and Wrangler 4xe plug-in hybrid set for an online-only premiere Sept. 3. We thank Motor1.com for reprint permission.

Las Vegas Man Charged in Tax Scam Involving Auto Body Shops by Alexis Ford, Las Vegas Review-Journal

A Las Vegas man was indicted by a federal grand jury on Sept. 2 and charged with conspiracy to defraud the IRS for allegedly falsifying tax returns for several local auto body shops, according to the U.S. Department of Justice. Lance Bradford allegedly “conspired with others to prepare tax returns on behalf of several automotive collision centers falsely claiming that the centers and their owners incurred millions in deductible expenses,” the department said in a statement. According to the indictment, Bradford claimed more than

$11 million in deductions from 2013 to 2015. Bradford was previously charged with aiding and assisting in the filing of false individual, corporate and partnership returns on behalf of others, the statement said. If he is convicted, Bradford faces up to five years in prison for the conspiracy charge and three years for each of the 29 counts of aiding and assisting the filing of false returns, it said. Contact Alexis Ford at aford@ reviewjournal.com or 702-3830335. Follow @alexisdford on Twitter. We thank the Las Vegas Review-Journal for reprint permission.

Continued from Page 24

Kidney Disease Even if a pairing scenario doesn’t work with the known donor-recipient pairs on the books, it’s possible that a new pair or even a single, nondirected donor—a person willing to donate a kidney to anyone—will arise to set off the chain. In the case of the latter, “they will start another link in the chain,” Paschke said. It’s even possible sometimes with certain medical techniques to achieve a transplant using an incompatible donor, but Paschke said “they are not common” at every location. Paschke called the need for donations “really grave.” There’s 110,000 people on the transplant list, and about 80% are waiting for a kidney, she said. As of late the morning of Sept. 2, 92,215 of the 109,215 people on the transplant list needed a kidney. Between January and July, 7,153 deceased and 3,110 living people donated at least one organ. A living organ donation isn’t

for everyone, but Paschke did encourage everyone to sign up to donate after death. “That’s something that we all should do,” she said. Those who didn’t register to be a deceased organ donor through their DMV could sign up through a link on her organization’s website. (It’s all the same database, but there’s no harm in signing up on both if you want—you won’t be double-counted, she said.) You might help more than one person after death. For example, though 7,153 people donated organs after death between January and July, physicians performed 19,013 transplants, according to the U.S. Organ Procurement and Transplantation Network. We thank Repairer Driven News for reprint permission.

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Continued from Cover

Pre-Pandemic Sales needs to keep adapting and working collaboratively, said Carla Bailo, president and CEO of the Ann Arbor-based Center for Automotive Research. “Everyone is predicting this year about 13 million [vehicles sold], pre-COVID we were about 17 million. We expect it’s going to take another two years, but that’s predicated on a good recovery and continued recovery throughout this year,” Bailo said during a legislative hearing. “Should we have another hit in the fall, we’ll have to adjust those figures. So about two years to come back to where we were.” Bailo joined Michigan manufacturers and industry authorities in briefing lawmakers on the pandemic’s impact on the automotive world. Every speaker agreed the auto industry’s ability to produce personal protective equipment helped save lives and jobs, but there are real and practical problems that operating

during a pandemic will present for the foreseeable future. The discussion comes as every industry tries to maintain a tenuous grasp on operating during a pandemic. Gov. Gretchen Whitmer is expected to soon allow movie theaters, gyms and similar businesses to start operating again on a limited basis. But she’s repeatedly warned she may need to institute another shutdown if coronavirus case rates spike again. Automotive manufacturing shut down like most industry in March, even as suppliers and large manufacturers looked for ways to produce vital health and safety equipment to fight COVID-19, the disease caused by the coronavirus. Any new halt in production, even a short one, would be crippling, said Brian O’Connell, General Motors regional director of state government relations. “The shutdown had a huge impact on our industry and our company. And we cannot afford a shutdown. We cannot afford a week shutdown,” O’Connell said. Demand for new and used vehi-

cles is down, but Bailo said the drop was not as much as some expected. Although overall vehicle sales were down 25%, sales of pickups are down only 10%. At the same time, there are 20,000 fewer jobs in the automotive industry compared to the second quarter of last year. Michigan’s jobs in the industry are down 18%. Bailo said that’s the lowest level since 2009, during the Great Recession. “There was a lot of doomsday forecasts early on, but the automotive industry has stayed resilient and most of the plants have been able to stay open,” Bailo said. Now GM, Ford Motor Co. and Fiat Chrysler Automobiles say they continue to follow strict testing and quarantine protocols for employees who may be sick or who came in contact with someone who has COVID-19. The UAW, which represents roughly 150,000 workers from the Detroit Three, repeatedly advocated for strict safety practices and heralded the manufacturer’s recent decision to continue testing employees even if they showed no symptoms of

the virus. Workers must be healthy and feel safe to keep production moving, noted John Walsh, president and CEO of the Michigan Manufacturers Association. Manufacturing in the state has rebounded since the start of the pandemic, but as of July there are roughly 69,000 fewer Michiganders employed in manufacturing than the 628,000 who had a job in the industry in July. While working from home or virtually may not substantially disrupt other industries, it’s essentially not an option for most manufacturers, Walsh said. Bailo and others agreed that finding and keeping an employee who can work on site while handling the daily rigors of life during a pandemic is difficult. “This is going to continue to be an issue. It’s a strain on the manufacturing sustainability and keeping the production line running,” Bailo said. “You don’t have the option to work remotely when you’re on the line. And if you’re a single parent trying to educate children, that’s a

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significant problem.” Although Rep. Vanessa Guerra, D-Saginaw, agreed GM and other companies may have strong safety plans, she questioned whether they’re always followed. Without providing specifics, she said she’s heard from constituents saying some employees are not informed when colleagues are sick and companies are not doing enough to adequately clean sites where infected people may have worked. GM relies on the safety practices every day, requiring masks at all times while on site, O’Connell said. Echoing comments from other speakers, he said the company prioritizes employee health in a way that ensures operations can continue. “We cannot have an outbreak at our plants. It shuts us down. It shuts our suppliers down. The impact is tremendous on us,” O’Connell said. “We have not had a transmission at our plant where people are following safety protocols. Now, have we had employees who had it? Yes, but it was when they were home over the weekend and not working.” Shape Corp. President and

CEO Mark White said his company employees about 3,500 people worldwide, including approximately 1,000 on any given day in Grand Haven. The supplier, which designs and builds components that manage the forces that occur when a vehicle is in a crash, instituted temperature checks and socially distanced work sites for its facilities, White said. The company had 168 poten tial cases of the coronavirus among employees and 16 confirmed cases in Grand Haven, White said. Many were either prevented from entering a facility due to a potential fever or reported symptoms, or left work after reporting symptoms during a shift. White said his company is working with its employees to provide flexibility for those who do have child care and other needs. He also said they provided across the board raises. But he said concerns about child care, catching the coronavirus and “the financial security of the enhanced unemployment benefits” is causing unprecedented absenteeism and turnover. “Our government needs to de-

velop incentives to work, not incentives to stay on unemployment,” White said. “With respect, the incentives created to stay home go beyond physical well-being. They create a false sense of financial well-being, and keep people from coming to work at Shape and other good employers.” Hundreds of thousands of Michigan residents have filed for unemployment since March. Federal legislation provided an additional $600 per week for unemployment benefits in the first months of the pandemic, but those benefits are no longer available. The state recently received federal approval to provide $300 in extra unemployment benefits, but this funding is not expected to last very long. Lawmakers and industry leaders highlighted efforts by many companies to produce personal protective equipment. GM and Ford recently announced they provided the federal government with tens of thousands of ventilators, fulfilling the terms of their contracts to built the live-saving machines that

were in short supply. Ford delivered 50,000 ventilators in conjunction with a $336 million contract. The company also donated 1.5 million masks as part of a free mask initiative led by the governor. GM plans to donate 2 million masks to Michigan public schools. That’s in addition to the 30,000 ventilators it built as part of a $489 million federal contract. Moving forward, companies want to see lawmakers take action to provide some protection from lawsuits. This week, legislators took up bills that would make it harder to sue an employer or producer of protective equipment due to coronavirus concerns. The bills still require several votes before they could make it to the governor. We thank the Detroit Free Press for reprint permission.

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Gov. Newsom Signs Legislation to Protect CA Workforce Amid Pandemic Gov. Gavin Newsom on Spet. 17 signed two bills as part of his worker protection package, SB 1159 by Sen. Jerry Hill, D-San Mateo, and AB 685 by Assemblymember Eloise Gómez Reyes, D-San Bernardino. SB 1159 expands access to workers’ compensation and makes it easier for first responders, health care workers and people who test positive due to an outbreak at work to get the support they need, including necessary medical care and wage replacement benefits. AB 685 ensures timely notification to employees and local and state public health officials of COVID-19 cases at workplaces. This notification will help workers take necessary precautions such as seeking testing, getting medical help or complying with quarantine directives. “Protecting workers is critical to slowing the spread of this virus,” said Newsom. “These two laws will help California workers stay safe at work and get the support they need if they are exposed to COVID-19.”

“I thank the governor, my colleagues in the Legislature and the many stakeholders who worked with us on SB 1159 to improve the lives of the Californians who are working to keep our state, our economy and our communities operating. These workers help all of us meet the incredible challenges we face today,” said Hill. “For more than 100 years, California has stood for worker safety. In signing SB 1159, Gov. Newsom underscores and reinforces that commitment by ensuring vulnerable workers are not left out in the cold.” “In the age of COVID-19 our essential workers risk their lives and the lives of their loved ones in our fields, hospitals, grocery stores, meatpacking plants, restaurant kitchens and countless other businesses in our state,” said Reyes. “COVID-19 infections and deaths disproportionately affect the Latino, Black and Asian Pacific Islander communities. Communities that make up the majority of our state’s low-wage workers. “By notifying the public and

workers of potential exposures as required under AB 685 we allow workers to take appropriate steps to protect themselves and their loved ones while also bolstering the response of public health officials.” SB 1159 expands access to workers’ compensation by creating a rebuttable presumption for front line workers—health care workers, firefighters and peace officers. Creating a presumption removes burdens of access to workers’ compensation for those workers who most likely got infected at work. Additionally, the bill establishes a rebuttable presumption when there is a workplace outbreak over a 14day timeframe. Under AB 685, employers must report an outbreak to local public health officials. Employers must also report known cases to employees who may have been exposed to COVID-19 within one business day. This bill strengthens Cal/OSHA’s enforcement authority by providing clear authority to close a worksite due to a COVID-19 hazard and reducing

Amazon Deploys 10 Lion Electric Trucks by Mark Kane, Inside EVs

Amazon announced it will deploy 10 all-electric trucks from Lion Electric this fall in California as part of its electriﬁcation initiative, mostly based on 100,000 Rivian EV vans by 2030, the ﬁrst to be deployed in 2021.

The order follows “a long time” discussion between Amazon and the Quebec-based Lion Electric, which recently scored also its largest order for up to 50 trucks for The Canadian National Railway. In the case of Amazon, before purchasing the truck, it was required to prove its performance in various conditions.

We thank Inside EVs for reprint permission.

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“They came to drive them in various conditions, in the snow, in good weather. We’ve been in talks with them for a long time. They validated the product, ” said Lion CEO Marc Bédard. Meanwhile, in Europe, Amazon just ordered more than 1,800 all-electric vans from

Mercedes-Benz. With hundreds of BEVs on the road today and thousands ordered, Amazon soon might become one of the largest EV ﬂeets globally.

the timeframe for COVID-19 citations. Newsom has enacted other components of his worker protection package in recent weeks. Last week, he signed AB 1867, legislation that immediately ensured access to paid sick leave for every California employee, closing gaps in federal and state law. He also advanced signiﬁcant funding for worker and employer outreach, education and enforcement activities related to COVID-19. This worker protection package builds on the Newsom Administration’s ongoing eﬀorts to protect workers, among them expanded child care, access to testing and building a pipeline of personal protective equipment to help workers stay safe on the job. The administration has also released robust workplace safety and health guidance that emphasizes masks, distancing, cleaning, hand washing, screenings and staying home if feeling sick.

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 37

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with Stacey Phillips

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.

Five Years of Data Shows ‘Who Pays’ Surveys Making a Difference It’s been five years since I launched the first of our quarterly “Who Pays for What?” surveys, and I’ve been excited to see some of the changes in the industry I believe can be traced back to the industry’s participation. In the very first “Who Pays” survey back in 2015, for example, less than half of shops reported being reimbursed on behalf of the consumer on a regular basis by the eight largest insurers for tinting color. That has crept up gradually ever since, with 58% of shops this year saying they are reimbursed on behalf of the consumer from insurers for that procedure all or most of the time. Five years ago, about four out of five shops said they would bill for the labor to denib a vehicle if that procedure was necessary for the job—which it is on half or more of refinished vehicles, according to more than 75% of shops. But also

five years ago, fewer than one-third of shops said they were regularly reimbursed from insurers on behalf of the consumer for the denib operation by the eight largest insurers. In fact,

on behalf of the consumer by the largest insurers for the “not-included” denib procedure, but the situation has certainly improved. In a “Who Pays” survey this year, just 22% of

A “Who Pays for What?” survey earlier this year found more shops were being paid regularly for the “denib” procedure

44% of the shops that billed for it said those insurers “never” reimbursed them for it. Now five years later, shops are still not getting regularly reimbursed

shops said the eight largest insurers never reimburse them on behalf of the consumer when denib was necessary, exactly half of the percentage in 2015.

And just 12% of the more than 750 shops that participated in the survey said they never bill for the procedure when required, a 40% reduction over five years in the number of shops that had been doing the procedure “for free.” This is a measurable change on a very common repair procedure. I’m not the only one who thinks the surveys are having an impact. Among the shops that took our most recent survey, 88% said participating in the surveys has helped them improve their business. About twothirds said participating in the surveys offer a good reminder about “not-included” procedures they are doing but for which they may not be itemizing and billing. And more than three-quarters said they use the survey to train and remind their staff about such procedures. September is your next oppor-

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tunity to participate in a survey. It can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. We do not share information or individual responses with anyone. Visit this website to start: https:// www.crashnetwork.com/collision advice

Here’s a bit more of what the surveys have shown us this year. About 57% of shops that bill for the time it takes to mask internal areas for refinish or cut-in are reimbursed by the eight largest insurers on behalf of the consumer “always” or “most of the time,” yet nearly one in three shops (32%) never get paid for it. That’s because half of them (16%) acknowledge having never thought to charge for it, and the other half (16%) be-

lieve—presumably based on experience—the insurers never pay for it. The situation also has at least improved over time; in 2015, only 32% of shops reported being paid regularly for this procedure, and more than 40% of shops—twice the percentage as of today—believed the insurers “never” paid for it on behalf of the consumer. The surveys have also shown that some insurers are much more likely than the eight largest to reimburse shops on behalf of the consumers for “not-included” procedures when they need to be done. When asked how often they are paid to spend the extra time it takes to match the OEM paint texture on a repaired area, for example, shops said they are almost twice as likely to be reimbursed for that procedure by insurers like PURE or Chubb than they are by some larger insurers. Of the shops that negotiate to be paid for matching OEM texture, 74% said they are reimbursed on behalf of consumers “always” or “most of the time” by Chubb, compared to just 41% who said that one large insurer did.

Even more mainstream insurers like Erie Insurance (No. 12 in terms of market share) pay shops for these same “not-included” procedures much more frequently than the eight largest insurers. Shops taking the survey reported the payment frequency for five additional insurers (Acuity, Amica, Chubb, Erie and PURE) on four different repair procedures (denib; feather, prime and block; mask for prime; and match OEM texture.) Across all four procedures, Chubb had the highest payment frequency, with, on average, 76% of shops that negotiate for the procedures reporting they are paid “always” or “most of the time” by Chubb on behalf of the consumer. PURE, which like Chubb, targets more aﬄuent customers, had the second-best payment frequency, with 74% of shops, on average, saying they are paid “always” or “most of the time” for the four procedures. The three other insurers—Acuity, Erie and Amica (No. 22 in terms of market share)—were not far behind, with averages of 70%, 72% and 68%, respectively.

These averages are all far above the percentage of shops reporting the eight largest insurers reimburse them for these procedures on behalf of the consumer. For each survey you complete, you receive a free 65-page report with all the findings, and resources and ideas to help you put them to use in your business. You can also use the link for the survey above to download previous survey reports for free. So if you’ve taken the surveys in the past but it’s been a while, make this the month you get back to it. It takes just a few minutes of your time, four times a year. If you’ve not participated, consider this my personal invitation to check it out. I truly believe it can help your business, which helps the industry as a whole. As I like to say, “Don’t delay. Do it today!”

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with Erica Schroeder

Industry Insight with John Yoswick

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

Latest in Lawsuits Involving Shops, Insurers and an Auto Recycler

Shop Showcase

There was activity recently in three its third version of the lawsuit, after legal battles involving body shops, the first two were dismissed. insurance companies, an auto recyPresnell granted GEICO’s mowith Ed Attanasio tion, noting Eaves’ firm failed to file cler and consumers. A U.S. District Court judge in an opposition to GEICO’s fee request. Florida this summer agreed that a law- But Presnell reduced the amount owed suit in which two Mississippi shops are suing Progressive Insurance for tortious interference should be returned to a federal courtEd in the shops’ with Attanasio state. The two shops were part of a larger federal antitrust lawsuit, originally brought against multiple insurers in 2014, consolidated to the Florida court with about two dozen similar suits involving shops in othwith Ed Attanasio er states. Mississippi attorney John Eaves Jr. began The Mississippi shops’ suit signing body shops on to antitrust lawsuits against insurers back in 2013 was largely dismissed earlier this year, but because AutoWorks Collision Specialists in Jackson, MI, and to $30,298—GEICO had sought just Walker Collision Center in Pica- over $40,000—and said only the atwith Ed Attanasio yune, MI, each pointed to a specific torneys, who he said pursued the matcustomer they said they lost because ter “unreasonably and vexatiously,” of steering tactics they say Progres- must pay those fees, not the shops. sive used, dismissal of their portion Another insurer, Nationwide, of the lawsuit was overturned on ap- also got a court victory in August. peal. The Pennsylvania Supreme Court Progressivewith arguedStacey the Florida announced it was deadlocked in its Phillips court should continue to oversee the review of a lower court’s decision lawsuit, but Judge Gregory Presnell that overturned a $21 million bad said it should return to the Mississip- faith verdict against Nationwide repi federal court where it was origi- lated to repairs made by one of the nally filed. In remanding the case to insurer’s “Blue Ribbon” direct reMississippi, however, pair shops. with Presnell StaceyindiPhillips cated that court might choose not to Because the six justices—a sevallow it to proceed because the fed- enth justice didn’t participate in the eral antitrust claims in the original case—were “divided in a fashion lawsuit have been dismissed. That which prevents a majority disposileaves Progressive facing only accu- tion,” the lower court’s decision to sations of violating Mississippi state throw out the 2014 verdict against Nawith Stacey Phillips anti-steering laws. tionwide stands. “Since no federal claims remain, The lawsuit arose after Daniel that court may decide that it is pru- and Sharon Berg took their coldent to decline to exercise jurisdic- lision-damaged 1996 Jeep Grand tion over the state law claims,” Pres- Cherokee to a Nationwide Blue Ribnell said. bon shop. An appraiser there recHe also ruled this summer on ommended the vehicle be declared with Stacey Phillips GEICO’s request that the other a total loss, but the Bergs alleged Mississippi shops—and their at- that Nationwide, without informtorneys—involved in the portion of ing them, had the vehicle moved to the lawsuit that was dismissed cover another Blue Ribbon shop where it GEICO’s legal fees fighting the case was repaired. The Bergs sued over since 2015. That’s when Mississippi the condition of the repaired vehicle, attorney John Eaves Jr.’s firm filed claiming Nationwide knowingly re-

Social Media for Shops

SEMA Show Goes On

turned an unsafe vehicle to them as part of an effort to avoid totaling the vehicle. The couple won an $18 million verdict, plus $3 million in attorney fees, but a three-judge Superior Court panel in 2018 overturned that decision. The Bergs appealed to the state’s Supreme Court. Two of those justices issued an opinion in August saying they were in favor of reversing the lower court’s dismissal and reinstating the verdict, while two others said they believe the dismissal should be upheld; the views of the remaining two Pennsylvania Supreme Court justices is not known, but it would seem they were likely split in their views, giving neither side a majority. The justices arguing to reverse the Superior Court’s decision said such verdicts should be overturned only “in the most egregious of cases

Media and Publicity for Shops

when the trial court has committed reversible error.” The justice’s arguing to uphold the reversal of the verdict said there was some question about the trial judge’s impartiality, pointing to that judge’s “protracted we-the-consumer discourse spanning six pages of the opinion,” in which he appeared to step beyond his “judicial role and align himself personally with the interests of insurance consumers.” In yet another legal matter that could provide a lesson for all employers, an auto recycler is being sued by the U.S. Equal Employment Opportunity Commission (EEOC), which says the company violated federal law by denying an employee’s requests for reasonable accommodations—and then fired her—while she was undergoing chemotherapy for cancer. See Latest in Lawsuits, Page 45

Shop Strategies

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40 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 41 8/12/20 8:36 AM

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Historical Snapshot with John Yoswick

Associations Assembling with Chasidy Rae Sisk

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

AWAF Hosts Training, Awards Scholarships and Continues to Inspire Despite COVID

Southeast News

Although in-person meetings are on sona (your brand) and be authentic. hiatus due to the threat of COVID-19, â&#x20AC;&#x153;With a wealth of experience the Automotivewith Womenâ&#x20AC;&#x2122;s Alliance gained working for numerous ForChasidy Rae Sisk Foundation (AWAF) has not al- tune 500 companiesâ&#x20AC;&#x201D;including her lowed the chaos of 2020 to prevent current role as a senior-level global them from inspiring and enlightening executive for a $4 billion corporamembers. tion, Linda shared some of the wisFrom increasing the number of dom sheâ&#x20AC;&#x2122;s gained throughout her own virtual professional development of- career journeyâ&#x20AC;&#x201D;including some very with Chasidyand Rae Sisk ferings to awarding scholarships personal early traumas that helped more, AWAF refuses to let any glob- shape the trajectory of her career,â&#x20AC;? al pandemic stop these motivated la- shared AWAF Professional Developdies from carrying out their mission. ment Committee Co-Chair Sherry Educational content has been Muir Irwin. coordinated with the current situaChristina McKenna, founder tion in mind. with Chasidy Rae Sisk and president of Bluestone Execuâ&#x20AC;&#x153;Faced with an invisible enemy tive Communications, shared advice and a temporarily diminished automo- related to â&#x20AC;&#x153;Power Presenting for the tive marketplace, working remotely or Virtual Presenterâ&#x20AC;? on July 23. being furloughed can play havoc with According to Muir Irwin, â&#x20AC;&#x153;Chrisour daily lives, and eachChasidy programmed tina brought her knowledge, wisdom with Rae Sisk session has been specially selected to and wit to our members, emphasizing address stressors and ease transition that communication is more importto the â&#x20AC;&#x2DC;new normalâ&#x20AC;&#x2122; brought on by ant now than everâ&#x20AC;&#x201D;and with the inCOVID-19,â&#x20AC;? said AWAF Profession- creased emphasis on virtual platforms al Development Committee Co-Chair for communication, we must be intenCorinne Smereka. tional in projecting our professionalwith Chasidy Rae Sisk â&#x20AC;&#x153;Tapping into our talented mem- ism and purpose.â&#x20AC;? bership expertise and experience, McKenna shared â&#x20AC;&#x153;Seven SeAWAF has provided and will contin- crets to a Commanding Virtual Preue to provide a series of free, virtual, sentationâ&#x20AC;?: one-hour sessions via Zoom technology. These sessions designed Rae to Sisk â&#x20AC;˘ Use the video option whenever poswithare Chasidy explore new perspectives, gain new sible. skills and promote networking op- â&#x20AC;˘ Know that while style matters, conportunities during these challenging tent is king (or queen). times,â&#x20AC;? Smereka continued. â&#x20AC;˘ Assume your audience is distracted The first session in AWAFâ&#x20AC;&#x2122;s and adjust. withwas Chasidy series, held in May, â&#x20AC;&#x153;Clarity Rae in Sisk â&#x20AC;˘ Frame the flattering shot. the Midst of a Crisis: How to Find â&#x20AC;˘ Leverage good lighting. Your New Normalâ&#x20AC;? with Dr. Priscil- â&#x20AC;˘ Pay attention to audio. la Archangel, president of Archan- â&#x20AC;˘ If your event is recorded, scrap the gel and Associates, LLC, followed laptop. by â&#x20AC;&#x153;Difficult Conversations: Open with Chasidy Rae Sisk Heart, Open Mind,â&#x20AC;? presented June During â&#x20AC;&#x153;Diversity, Equity & In4 by Diane Morrison and Marian clusion 101â&#x20AC;? on Aug. 13, Cheryl Morlock, co-creators of Expanding Thompson, CEO and founder, and Leadership Capabilities. Margaret Baxter, executive direcOn June 25, Linda Taliaferro, tor, of the Center for Automotive founder and CEO of The TEEâ&#x20AC;&#x201D;The Diversity, Inclusion & Advancement Extra Effort, LLC, discussed â&#x20AC;&#x153;Turn- (CADIA) shared important insights with Ed Attanasio ing Career Trauma into Career Tri- to â&#x20AC;&#x153;help attendees gain an underumph,â&#x20AC;? sharing six tips: find your standing of the diversity, inclusion voice and use it, know your worth, and equity (DEI) fundamentals rerelationships are everything, focus quired to value differences and be on being, establish your unique per- more inclusive in order to enhance

Western Associations

Southwest Associations Southeast Associations Northeast Associations Midwest Associations

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personal and organizational contribution,â&#x20AC;? Muir Irwin said. AWAF is coordinating additional seminars for the remainder of the year and has scheduled a Virtual Annual Holiday Party for Dec. 2, when the association will be joined by Lisa Drake, Ford COO of North America and vice president of global purchasing, as they celebrate the second annual AWAF Awards. During the pandemic, AWAF also awarded seven scholarships. Danielle Didia, a junior at Kettering University in Flint, MI, received a $2,500 scholarship, provided by Warner Norcross + Judd LLP, while Kettering senior Kathryn Cesiel received $2,500 provided by Magna International. Christian Brothers Automotive provided two $2,500 scholarships, received by Eva Muller of Michigan Technological University and Kathryn Mueller from Wayne State Uni-

versity. AWAF awarded a $2,500 scholarship, in honor of the Automotive Heritage Foundation, to Twanda Dixon, a freshman at Rochester Institute of Technology in New York. The association also sponsored a $2,500 scholarship to Jacqui van Zyl, a freshman at Georgia Institute of Technology in Atlanta, as well as a $2,500 scholarship to Jennifer Mazzola from Vanderbilt University. Additionally, AWAF has gotten creative with ideas to virtually advance and empower young women in STEM by introducing a contest for high school and college students to submit ideas for a STEM Kit to be offered to young women in middle school. For more information about AWAF, visit awafoundation.org.

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42 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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PICTURE THIS.

Business lining up in your CCC ONE® inbox.

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West_Issue_1020.indd 43

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Filterworks USA Becomes Autotality to Reflect Expansion Within Automotive Equipment Industry Filterworks USA, a leading equipment distributor within the automotive repair industry and part of Inc. Magazine’s list of Fastest-Growing Companies in the United States four years in a row, on Oct. 1 announced a rebrand to its title and visual identity. The new company name is Autotality, reﬂecting recent accelerated growth within the automotive repair equipment space stemming from Filterworks USA’s acquisitions of Carolina Collision, Moore Equipment, Trans-Star and Seifert Equipment Company. The new title demonstrates the company’s full spectrum of automotive equipment services to provide quality support for premier manufacturers across the automotive industry, and captures the company’s 360-degree roster of services for automotive service departments and collision repair centers. The new tagline, “Design. Equipment. Service.” clearly conveys the centralized mission of the brand to provide customers with unparalleled facility design, industry-leading equipment and unrivaled service.

NHTSA Launches SaferCar App The U.S. Department of Transportation on Aug. 27 announced the launch of a redesigned mobile app, SaferCar, by the National Highway Traﬃc Safety Administration with an emphasis on safety and convenience for the public. Available for both iOS and Android, it allows users to save their vehicles, car seats, equipment or tires in a virtual garage on their smartphone. The app automatically checks, in the background, whether a recall is issued and alerts users when a recall occurs. Once the user sets up their virtual garage, the app checks for safety recalls every day, and will notify the user if an issue requires their attention. To download it, visit NHTSA.gov/app. Source: NHTSA

Autotality’s growing ﬂeet of vehicles to serve customers throughout the southeast U.S. will incorporate the new logo and tagline.

departments and collision centers, and our new, modern identity will drive continued advancement and growth within the space.”

“Our new brand, Autotality, brings together ﬁve of the leading automotive collision equipment distributors in the country with decades of combined experience,” said Gregg Strandberg, founder and CEO of Filterworks USA and president of Autotality. “Autotality is rooted in a passion for top-tier automotive facilities and a commitment to providing customers with industry-leading equipment. “Our new brand name better reﬂects our growing scope and capabilities as a world-class provider of equipment for automotive service

Autotality’s current market area includes the entire southeast: Florida, Georgia, Tennessee, South Carolina, Alabama, Virginia and North Carolina. Autotality is a licensed general contractor in Florida, Georgia and North Carolina, with additional states likely to be added soon. Autotality’s concrete and general contractor capabilities, collision expertise, new dealer experience and network of equipment manufacturers and dealer relationships will complement continued growth across the automotive space for years to come.

M ic hael

HOHL

Acquisition Details Filterworks USA is an authorized distributor for leading equipment manufacturers in the collision and automotive repair industry, inducing Garmat USA, Car-O-Liner, Hunter Engineering, Rotary Lifts and more. Founded by Strandberg in 1988, Filterworks USA oﬀers complete design, permitting, installation, training and services solutions for automotive collision centers and service departments, all in-house. In 2019, Filterworks acquired Trans-Star Automotive, Seifert Equipment and Carolina Collision Equipment. In 2020, Filterworks initiated its partnership with Moore Equipment Sales. Jim Seifert will continue to run and grow the Seifert division of Autotality. Larry and Lori Brolsma, the previous owners of Carolina Collision Equipment, remain in key leadership positions within Filterworks, continuing to run the CCE business. Mickey Moore, the previous owner of Moore Equipment Sales, continues to run the MES business for Filterworks. Source: Autotality

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Continued from Page 40

CIECA Holds Semi-Annual Meetings by Emmariah Holcomb, glassBYTEs.com

presented to the Collision Industry Conference (CIC) in July for use by the industry.”

The Collision Industry Electronic Commerce Association (CIECA) recently held its semi-annual member meetings virtually and covered topics including scanning and calibration, repair order and status, vehicle damage and imaging, as well as first notice of loss and glass. Each topic was discussed in a 30-minute session and was followed by a question and answer period. The meeting hosts, Charley Quirt, *former CIECA technical project coordinator, and Paulette Reed, current CIECA technical project coordinator, began the scanning and calibration meeting by explaining the association’s committee development process. “As part of CIECA’s Committee Development Process, a workflow document is created to help define which messages will need to be identified and what they will communicate. The messages can then be developed for the industry,” said Quirt. “After a workflow was created by the CIECA Calibration Committee, it was

According to Quirt, the CIC committee is looking into the possibility of creating a video that explains the calibration workflow. Both Quirt and Reed went through the process of finding specific committees and viewing the latest documents on the association’s website. *Editor’s note: Quirt was in his final week at CIECA when the meetings were taking place and Reed was transitioning into her new role. Quirt’s last day as the technical project coordinator was Aug. 28. We thank glassBYTEs.com for reprint permission. https

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requests. K&L fired her, but did not tell her she had been terminated until she finished chemotherapy. Such alleged conduct violates the Americans with Disabilities Act (ADA.) The EEOC, which filed suit after first attempting to reach a settlement with K&L, seeks back pay and compensatory and punitive damages, as well as an order barring K&L from engaging in discriminatory treatment in the future. “This comptroller was a hardworking, loyal employee who sought multiple avenues to continue working during her illness and chemotherapy treatment,” said Meaghan Kuelbs, senior trial attorney with the EEOC. “Employers should fairly consider an employee’s accommodation request and deny an accommodation only if it would create an undue hardship.”

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SEMA Show Goes On with Ed Attanasio

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.

Are You Defending Your Good Name Online? Your reputation online is always im- spective websites. portant, but during the pandemic it’s You can have amazing empmore vital than ever. loyees, great DRPs and a lot of rewith Everyone can agreeStacey there willPhillips be peat customers, but in the end all fewer cars on the road moving for- you have is your reputation. Compeward, as more and more people will tition is healthy, but sometimes peocontinue to work virtually. ple’s passions make them do things With more competition fighting they wouldn’t normally even consifor less work, a shop’s reputation on- der. with Stacey Phillips In 2008, I began writing for line will carry more weight, and that’s when some shady operators might re- a growing company that provided sort to doing sketchy things, such as “digital privacy solutions.” Their posting fake reviews to disparage the approach was to create a deluge of shop down the street. positive content about an individual In one case, a disgruntled for- or company so any bad things online mer employee with wreaked havoc Phillips on- about them would be bumped down Stacey line for a shop. A body shop owner the ratings. The goal was to get the negative articles, reviews or blogs off Google’s first page, because 75% of all browsers never look past page one, according to Junto Research. During that same period of time, with Stacey Phillips I was also contacted by a company that wanted to pay me well to write fake negative reviews. They had established a ton of bogus emails and online profiles and were targeting companies identified by its clients. When I asked them if it was illegal, they said no, although they admitted it was at with Victoria Antonelli least immoral, so I opted out. Luke Middendorf at WSI Connect in Concord, Luke Middendorf at WSI ConCA, said the best way for a shop to manage its online reputation is to proactively request nect in Concord, CA, protects his positive reviews from its customers clients’ online reputations, including body shops. fired a tech, who had a couple sons “We’ve been implementing rewho were computer whiz kids, and putation-building campaigns for alwith Ed Attanasio they destroyed the owner’s online most all of our clients,” he said. “The reputation within months. It went best way for a business to manage from being just business to being its online reputation is to proactively personal, and the shop in question request positive reviews from its cuslost a significant amount of business tomers. Google and Facebook allow as a result. businesses to proactively solicit In another scenario, a body shop reviews and there are a lot of autowith Gary Ledoux that was producing subpar work hi- mated tools that make the process red a company to defend its reputa- easier to manage. It is against Yelp’s tion by creating a ton of fake reviews policies for businesses to request and posting positive things about the Yelp reviews of their business so it’s shop to push its bad reviews down much more difficult to work with.” the line. Middendorf said you can’t rely In yet another case that occur- on websites like Yelp to monitor rewith Stacey Phillips red recently, two shops in a small views or check for their authenticity. town started manufacturing false “All of the review sites do a negative reviews against each other, very poor job of combating fake but in the end Google black-hatted reviews. Most of the time they avoboth of them and took down their re- id getting involved in any disputes,”

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he said. “They will remove reviews that violate their policies which include personal attacks and explicit language. However, those need to be reported/flagged by someone so that they can be reviewed and considered for removal.” How can you continually monitor your online presence? It’s actually not that difficult. First, perform a search on your shop name in Google, Bing, Angie’s List, Yahoo and other search engines. Delete what you can, including all of your own social networking pages, where you can easily delete your own posts, photos, comments and videos. Ask people who have posted negative things about you to delete their comments, videos and photos. If they refuse to delete a photo, for example, you can usually untag yourself, so that the photo will not appear in any search including your name.

See Defending Your Name, Page 50

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If there are news articles, blog posts, videos, photos or other mentions about your shop that are unflattering, you can always request the page’s publisher to remove them. Not everyone will cooperate, but try anyway. If that doesn’t work, or if you can’t get a hold of the people who posted it, push them down in search results by creating positive content. In many cases, the personal approach may be the best way to go. Quietly unfriend people who are apt to post negative things about you, as well as those who have their own damaged reputations to deal with. You don’t want to be linked to anyone with a questionable reputation, because one rotten blueberry can ruin the whole bunch. On a regular basis, check for any email jokes or other items people send to you or share with you on-

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46 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

with Mike Anderson West_Issue_1020.indd 46

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Will Burgeoning E-Commerce Hurt the Collision Repair Industry? by Gary Ledoux

For many months prior to March, the collision repair industry had been preoccupied with ADAS systems and autonomous cars and trucks and their effect on the collision repair business. The systems are purported to greatly reduce accidents and mitigate the severity of accidents that do occur. Many in the industry were afraid this would have an ill effect on the collision industry—fewer accidents and less severity means less work for body shops. According to Frank Terlep, industry veteran and author of the recently released book, “Auto Industry Disruption,” only about 21% of the U.S. fleet currently has ADAS capability. If past history is any indication, it could be years before ADAS-equipped cars reach a crucial mass where accident prevention and severity mitigation have a profound impact on the number of cars requiring collision repair. For instance, hydraulic brakes for cars were patented in 1917. Ford would be the last auto manufacturer in the U.S. to adopt the hydraulic system in 1939. What might have a more immediate and long-lasting effect is the burgeoning concept of e-commerce, most lately exacerbated by the COVID-19 pandemic. COVID 19 Hits With the onslaught of the COVID-19 pandemic, people started working from home if their occupation allowed it, or many were furloughed if they couldn’t. Travel came almost to a standstill. Highways were empty, airplanes were empty, restaurants and hotels closed and American business was brought to its knees for weeks. With so many people no longer commuting and/or minimizing their trips, even locally, collision shops reported a decrease in business by 40% to 50% or more. Fortunately, American business is not only resilient but also innovative and resourceful. Despite many consumers staying home, American business is continuing to find new and innovative ways to reach and engage them through online

services and products. Granted, online purchasing is nothing new. It has been growing for years. But the past few months has seen some dramatic changes and increases. Online Shopping Goes Wild QuantuMetric, a digital consulting and intelligence company, estimates an increase of 146% in online retail orders from March through June. Neilsen, an independent consulting company in the UK, notes that in March, more than 600,000 people who had never used e-commerce before ordered some product online. Similar consulting companies listed similar results. One of the commodities most affected is weekly groceries and related products. According to Joshua Schall of J. Schall Consulting, an Austin, TX-based consultant for the consumer packaged goods industry, in 2015, only 15% of those consumers surveyed had bought groceries online. In March, that number had climbed to 55%. A survey conducted by Rakutan Super Logistics, a national leader in e-commerce order fulfillment and freight brokerage, shows a 250% increase in groceries sale volume for the month of March. Other products seeing a sizeable uptick were baby products, medical and cleaning products. Not surprisingly, there was a rise in online orders of alcoholic beverages. Again, this equates to fewer trips to the supermarket and related stores, fewer miles traveled and fewer traffic accidents. Lifting Stay-At-Home Orders May Do Little To Change Customer Behavior According to Rakutan, once stay-at-home orders are lifted, most consumers are more likely to stick to their newly-developed traits of buying products and services online. Those that stopped mall shopping, due to social distancing concerns, and used online shopping instead may opt to stay away from the malls completely. And speaking of malls, they have been dying for years. According to a study done by Credit Suisse and reported in Business Insider Magazine in November 2019, between 20% and

25% of America’s 116,000 shopping malls will be closed by 2022. Note this was announced prior to the pandemic. Experts note not the least of the reasons for the mall’s death-spiral is online purchasing exasperated by stores’ slow adaptation to changing consumer demographics and subsequent buying habits. Fewer malls, less reason to drive to them, fewer traffic accidents. Rakutan also notes “some consumers have invested in fitness equipment to use at home and may never return to a gym. Others have learned how to cut their kids’ hair and may never pay for a professional cut, for as long as their kids will allow it. Many organizations will have also noticed how cost-effective allowing employees to work from home can be. It won’t come as a surprise when the remote working population increases from the current 4.7 million to even double the figure. “The point is, once consumer behaviors change, it’s hard to get back to the old way of doing things. When

these changes in behavior become permanent, shoppers will stick to the e-commerce brands they discovered over the brick and mortar spots they once frequented.” PaySafe, a UK-based company similar to PayPal in the U.S., conducted a survey of more than 8,000 consumers in seven countries. When asked how their spending habits would be impacted in the future, 38% of all surveyed consumers said they plan to do more online shopping next year regardless of the end of social distancing. In the U.S., that number was 49%. Two-thirds (65%) of consumers that plan to shop online more following the conclusion of the pandemic are doing so because they find online more convenient, and 42% of consumers who plan to shop online more say it is more enjoyable. Of those people who said they would not increase or maintain a higher level of online shopping, it was because they already conduct the majority of their shopping online. See Burgeoning E-Commerce, Page 55

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with Stacey Phillips

Techs of the Future with Stacey Phillips

Stacey Phillips is an award-winning 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.

Preparing & Training the Agents of Change in Future Technology A few years ago, when people talk- mechanical systems.” ed about connected vehicles and She recalls attending the SEMA self-driving, Elaina Farnsworth said Show in 2016 and listening to John it was perceived as a computer-based Waraniak, vice president of vehicle industry. technology at SEMA. The CEO of The NEXT Educa- “He said that many years ago, tion said every person interested in we would be standing up on this stage intelligent transportation and saying, ‘I have the fastest, coolest and loudest car,’” mobility systems was expectsaid Farnsworth. “In the next ed to have computer science 10 years, we are going to be and engineering skills. Very quickly, organisaying, ‘I have the most conzations realized the need nected car.’” for technicians to repair the Anticipating the changes infrastructure and technolo- Elaina Farnsworth ahead, Farnsworth set out gy in these vehicles after a to create a learning path for collision. the next generation of workers inter “It is no longer your dad’s auto- ested in being part of the automotive mobile,” said Farnsworth. “Cars are industry. evolving where most of all vehicles “We need technicians to underare built with sensor technology and stand the coolness around these vemove data. As a technician, you will hicles and we need the repairers to need to know a little about sensors, understand this is a very interesting technology, electrical systems and field that pays a lot of money,” she

Continued from Page 46

Defending Your Name line. We all have that one buddy or associate who sends silly videos all the time, but think twice before you share them with anyone else. You don’t want to share anything that is sexist, ageist, racist or political because you never know who might see it and be offended. Just delete them if you’re not sure, and avoid sharing inappropriate content. If the situation gets really bad for any reason, it might be time to lock down your pages. Change all of your privacy settings on all your websites so that only certain people can see what you post and respond. Another smart move is to limit what others can post about you. For example, in Facebook’s privacy settings, you can easily block other people from tagging you in photos without your permission. They can still tag you, but it won’t be public until you approve it. When none of these techniques

work, start drowning out the bad content with new positive content. One of the best methods out there is to advertise the fact that you help the community, mentor local auto tech students, give cars to deserving people, etc. You worked hard to earn fivestar Yelp reviews or positive comments on Facebook, so why not take the time to protect them? As more and more people go online to search for a body shop, your reputation is more vital, because just one negative review can affect you in many ways and none of them are good.

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said. “It doesn’t take a four-year degree.” Instead, she said technicians can learn the necessary skills through targeted education. Farnsworth has focused on certification, training and upskilling programs in intelligent transportation, connected and autonomous vehicles and new mobility systems for more than 20 years. In 2018, she established The NEXT Education, offering certification and credentialing programs related to connected transportation systems, autonomous vehicles and cybersecurity. This year, Farnsworth partnered with Regina Hopper, who has a background in transportation, communications, energy public policy, media and law, and serves as the chief strategy officer. “Our mission is simple: we want to create agents of change who will lead critical new mobility systems

development and deployment,” explained Farnsworth. The program is based on what she refers to as “MicroTraX,” a hybrid education model that combines self-paced learning with instructor interaction. The online live training is presented by subject-matter experts who are leaders in their respective fields. Each seven- to 10-minute module is built to be a consumable piece of competency-based education to prepare organizations and individuals for the future. Since COVID-19, The NEXT Education has been focusing on online live instruction, but plans to return to in-person seminars in 2021. The learning is geared to a cross-section of the industry and is targeted to both new technicians entering the industry as well as those seeking professional development.

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Fixed Operations Director Recognizes Need for Training in Future Technology About a year ago, Jamie Powers, the fixed operations director at Lujack Auto Group, learned about The NEXT Education’s certification program in autonomous vehicles. He explored what the organization offered and whether it would be a good fit for his technicians at 20 stores in Michigan, Indiana and Iowa. With autonomous features becoming more prevalent in cars today, Powers recognizes the need to have all sensors on a vehicle correctly set when a customer leaves the shop. “We are under a new liability,” he said. “That started waking me up to learn the new processes

Farnsworth said students can learn the latest in 5G or satellite technology without being overwhelmed, because the information is presented “one bite at a time.” Content is continually added every quarter, so the information remains current and relevant. “My real passion has been getting the word out about the dire need we have today for technicians as well as what we are going to see in the future,” she said.

that are coming our way.” Four of his body technicians enrolled in two online courses from The NEXT Education, focused on the electronic components included in autonomous vehicles. They have been impressed with the instruction, and the ultimate goal is to earn a certification in this area. Eventually, Powers plans to have all of his technicians participate in the educational learning. “There’s always an evolution in the car industry and I think autonomy is the next evolution,” he said. Powers said OEMs are slowly taking control

Since COVID-19, The NEXT Education has experienced an increase in usage, especially due to the short training sessions offered. The team of 20 has found organizations are reaching out to have technicians learn additional skills during the current downtime in their businesses. “Many have worked in the industry for years and are moving into a new position due to the unforeseen circumstances worldwide as a result of the pandemic,” said Farnsworth.

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over what collision shops will be required to do to repair vehicles properly. A decade ago, customers could take their cars anywhere. Now, they need to be certified by a certain manufacturer. Autonomous vehicles are going to be part of that, according to Powers, and technicians will need to be certified. “If technicians aren’t certified on autonomous vehicles, insurance companies will not ok a customer to bring in an autonomous vehicle to any shop,” he said. “If we’re not on the leading edge of being certified on autonomous vehicles, that is going to be a big part of the business we’ll miss out on.”

With the collision repair industry evolving, new businesses have been established over the past few years related to predictive analysis and connectivity. Farnsworth said having highly skilled technicians in this new environment encourages workers to remain in the industry and allows shops to stand out from their competitors. “It would be a huge competitive advantage for a small shop to be able to understand the technology changes

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that are coming both in sensor technology and data transmission,” she added. In addition to the core competencies every technician will still need to repair a vehicle, Farnsworth encourages shop owners and managers to determine where the majority of their business is coming from. “Instead of seeing this as so vast that you want to start over, take into consideration the skillsets you have See Preparing & Training, Page 55

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with Erica Schroeder

Industry Insight with John Yoswick

Committee Demonstrates How Same Part Can Be Described Differently by John Yoswick

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The committee showed several

who manufacture parts for automakers. But that’s a parts category none of the parts platforms or estimating systems currently use. So that part might be identified as “OE discount” in one parts platform and estimating system, but as “aftermarket” in another parts platform and estimating system, resulting in the same part being labeled differently on estimates.

highest possible scenario they can,” Weiss said. “This is where specific terms with specific definitions benefit the industry, rather than leaving things open to supplier interpretation or decision,” Schulenburg said. “We need to be doing our best to be as transparent as possible. There’s a big difference in someone looking at something called an ‘OE surplus’ part and assuming that’s an OEM part, versus the impression of what a ‘recycled’ part is. I think we need to do everything in our power to make sure we are distinguishing parts appropriately.” The committee, however, has had difficulty reaching a consensus on what definitions and names for the parts types should be. The committee had been so polarized on the issue that Weiss and Schulenburg decided to break it into two “more like-minded” work groups to each form a proposal on how to most clearly describe parts available in the

The Collision Industry Conference these variations in parts categories Ed Attanasio (CIC) Parts andwith Materials Commit- can result in the exact same part betee is continuing to push for more ing described two different ways on consistency in how parts are defined estimates. and described within the industry. In the first (Figure 1), a vendor During the virtual CIC this sum- selling OEM parts outside of the aumer, the committee showed how the thorized OEM channel enters those list of parts categories varies among parts into a platform that uses the with Ed Attanasio parts platforms and estimating systems. CCC ONE has six parts type categories, for example, while Audatex and Mitchell have seven. Audatex has an “OE surplus” category, while CCC has “optional OEM” and Mitchell has with Ed Attanasio “OE discount.” The parts platforms that feed into the estimating solutions have their own categories. APU Solutions, for example, segments out “surplus OEM” from with Ed Attanasio “recovered OEM,” two categories not even found—by those names—in the estimating systems. APU’s Eric Mar- Figure 1. A CIC committee used a flowchart to show how a part the suppliers describes as “OEM rello said “surplus OEM” parts are surplus” can end up with one of three different labels on estimates. new OEM parts in OEM packaging, whereas “recovered OEM” are take- “OEM surplus” category for such parts. That platform feeds into an with Stacey Phillips estimating system that uses the “optional OEM” label for those parts. California regulators, however, prohibit the use of the “opt-OEM” label. “So while that part can go into with Stacey Phillips the estimating platform as ‘opt-OEM,’ the end-user is required to choose what they are going to call it on the Ken Weiss said some parts suppliers are estimate,” said Aaron Schulenburg, genuinely unclear as to how to identify their who co-chairs the CIC committee. parts in electronic parts platforms or estimat“You then have a situation where a ing systems, while others mayStacey be trying to Phillips with shop repair plan, and an insurance Figure 2. If a parts supplier describes its part using a term – like “Tier 1 replacement”—not used by “game” the system either the electronic parts platforms or estimating systems, how it appears on an estimate may vary company estimate, may each potenoff parts, OEM parts that may have tially choose different nomenclature In a third example, the commit- marketplace for those making parts been temporarily installed or painted for the exact same part. One may iden- tee showed where an “OEM take-off” decisions. and then removed. tify that as an aftermarket part, and part can end up categorized on an es- Weiss said his work group came “We hope longer term that the one may identify it as an OEM part, timate as “recycled” or “OE surplus.” up with six different categories of industry will move in Stacey the direction and you have an estimating platform Ken Weiss, who co-chairs the new parts, whereas Schulenburg’s with Phillips to break those two part types out,” that allows for that choice.” CIC committee, said parts suppliers work group simply defined four attriMarrello said. “Certainly we need In another example the commit- may be genuinely unclear as to how butes of an OEM part, and said any to agree upon those definitions. But tee showed (Figure 2), a parts sup- to identify parts they are putting into new part not having all four of those we saw five or seven years ago that plier may choose to refer to a part as the parts platforms, or directly into attribute were “non-OEM.” those really aren’t the same part cat- a “Tier 1 replacement” part because the estimating systems. “That’s the struggle we got hung “But there are others who delib- up on last year,” Weiss said at CIC egory. They need to have a different it is manufactured and sold by Tier 1 suppliers, such as Denso and Bosch, erately will elevate their part to the this summer. segmentation.”

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Restore Crashworthiness with Corrosion Protection—Keys to a Safe and Proper Collision Repair by Chasidy Rae Sisk

“Today’s vehicles are highly engineered and not forgiving of imprecise repair processes. When it comes to crashworthiness after the repair, millimeters and milliseconds matter!” according to Scott Peirce, strategic account manager at 3M, during ASA’s Aug. 19 “Webinar Wednesday.”

simple repair, but the OEM procedures tell us the left rail has to be replaced and there are a lot of other major components that could be impacted by this collision. You have to take the rail apart, and it’s going to involve a lot of parts. It becomes a very intrusive repair, but that’s what it takes to correctly restore this vehicle to its pre-accident condition.”

“The responsibility to restore crashworthiness lies with you, your business and your technicians,” — Scott Peirce “The responsibility to restore crashworthiness lies with you, your business and your technicians,” Peirce said. “Many products and processes combine together to restore the initial condition of the vehicle so it’s capable of handling a subsequent collision.” Peirce explained corrosion protection is vital to restoring a vehicle’s crashworthiness. Corrosion can impact airbag timing, and fatalities are more likely due to rust. “If you can effectively access the area with a traditional paint spray gun, corrosion protection is best achieved by applying a direct to metal primer, followed by the vehicle’s color and clearcoat to achieve recommended dry film thicknesses, if and as required, per the specific paint company and vehicle manufacturer’s guidelines,” he said. “If you cannot effectively access the area with a traditional spray gun, that is when materials like weldthrough primer and cavity wax may be the most appropriate solution to help restore corrosion protection,” he continued. “A vehicle’s ability to resist corrosion could be significantly compromised if the vehicle manufacturer’s corrosion protection is not restored. This could also lead to future issues with safety and/or resale value.” 3M Business Development Manager Mark Algie joined in to look at a case study of a damaged bumper and examine the requirements related to 1500 MPA high strength steel frame rails. “OEM repair procedures need to be reviewed to determine repairability,” Algie said. “It looks like a

Moving on to welding, Peirce said six different weld conditions are required just for the front stiffener, and this part cannot be removed and reinstalled because of the spot welding conditions. “There are a number of manual weld settings that need to be adjusted to properly perform this repair,” Peirce said. “You can’t just move forward with replacement using automatic settings on welders. You need to stop, identify the different weld settings and adjust to get the proper welds.” After Peirce finished discussing weld-through primer recommendations, Algie shared information on several OEMs’ requirements related to bonding adhesive selection. “You always need to refer to the OEM repair procedures because they’re constantly being changed and updated,” he stressed. Bare metal seam sealers can help with corrosion protection and are designed for rapid production, but 3M recommends priming before seam sealing. “The market demands it because it’s good for production and speed,” Peirce said. “Bare metal seam sealers can be acceptable, but you have to ensure that all bare metal is covered. Any seam sealer is only effective if it is coated properly, but bare metal sealers are especially vulnerable if the coatings are too thin or do not achieve full coverage.” “Refinish technicians must be especially thorough while refinishing and be sure to paint from both directions to ensure full coverage of the ‘shadow side’ of the bead profile,” he

added. Identifying the most difficult areas to achieve full paint coverage as the door hem flanges, wheel openings, lower rockers flanges and any flange sealed near a tight corner, Peirce cautioned, “These also happen to be the most corrosion vulnerable areas of the car, so caution should be exercised.” Epoxy seam sealers provides better coverage then aerosol seam sealers, and it’s imperative to research OEM position statements and repair procedures in order to duplicate the original appearance and function of the seams. Next, Algie discussed cavity wax OEM requirements, emphasizing, “Cavity wax must be applied to all interior cavities, weld flanges, hem flanges as well as any area affected by the repair, especially where any type of welding was performed.” According to Peirce, a lack of corrosion protection inside cavities and on the back side of the welds is the most common problem found by post-repair inspection compa-

SOUTHE

nies. He also discussed some of the quality control tools that shops should invest in, such as a borescope and a mil gauge, in order to perform their own post-repair inspections. “Post-repair inspections are more common than many of us want to admit due to a more educated public— the educated consumer is much more aware,” Algie said. “We ALL have a responsibility to restore crashworthiness, and that can only be achieved by researching and documented that you’ve followed the OEM repair instructions,” Peirce said in conclusion. “You need documentation to prove that you followed the instructions, and you have to follow those recommendations; don’t choose equivalents because it’s definitely not worth a little bit of savings. Conduct your own post-repair inspection, and protect your shop.” The webinar ended with a Q&A session. For more information on ASA and future educational webinars, visit www.asashop.org/asa-webinars/.

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Continued from Page 51

Continued from Page 48

Preparing & Training

Burgeoning E-Commerce

and then look at where you want to specialize,” she said. She encourages those in the industry, especially collision repairers, to realize how great the new world will be with these technologies and try to become part of it. “Talking about all of this technology sounds awesome and it is, but when you boil it down to what really makes it work is the people,” said Farnsworth.

Again, all this online buying could mean fewer cars on the road, fewer miles traveled, fewer accidents and less collision repair work.

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Change In Shopper Preferences Eventually COVID-19 will be beaten but, according to Rakutan, but what will remain is a “permanent change in shopper preference.” Many people will become more germ conscious. Many shoppers will prefer no-touch deliveries, while social businesses and outlets like communal buffets may suffer a loss in popularity. Consumers may also be less attracted to using public keypads, something which will force retailers to switch to no-touch technology with more focus on general hygiene. Body shops may need to be “sanitizing” customer cars for some time to come. Fighting Fire With Fire It’s more important now than ever, especially since so many people are online, for businesses, including body

shops, to have a prominent e-commerce presence so customers can find them. Business owners should look at their website and Facebook or other social media presence, or better yet, have a disinterested friend look at it. How does it compare, not necessarily against other shops, but the presence of other businesses? I will expand on this in a subsequent article. Looking To The Future Rakutan suggests “consumer views on shopping in a new ‘socially distant era’ will likely remain beyond the pandemic.” Consumers must now deal with what is becoming a “longterm side effect” of the pandemic and a “new normal.” The pandemic acted as a catalyst for consumers’ swift transition to digital commerce and it will likely remain. Rakutan says the post-pandemic situation is similar to the effect of the 2003 SARS epidemic in China. Like the COVID-19 pandemic in the U.S., SARS caused the closure of shops, schools and factories, but opened the gates for e-commerce

merchants. Alibaba, the Chinese equivalent of Amazon, received a huge boost. According to GlobalData, a UK-based data analytics and consulting company, “COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most skeptical consumers forced to abandon physical stores in response to restrictions on movement.” According to PaySafe, “winning in this new e-commerce environment means an even greater focus on consumer experience. To win and keep these new customers that want to shop online more frequently, merchants must offer a seamless product via both browser and smartphone app.” For body shops, this means they must make it easy for customers to reach them via the e-commerce experience.

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 55

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NO. CALIFORNIA Concord Kia Concord (888) 811-3058 (925) 685-2952 Fax M-F 8am - 5:30pm Sat 9am - 1pm

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56 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Contact These Dealers For Your Kia Genuine Parts Needs Kearny Mesa Kia

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 57

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Is Your Shop and Insurance Coverage Prepared for A Riot? by Gary Ledoux

We have all heard about the rioting going on across the country. For months, at least a dozen cities experienced businesses being burned, looted and extensively damaged. Government instituted curfews closed off whole sections of cities and shortened business hours causing businesses to lose income. It’s unnerving for everyone. Fortunately, it would appear collision shops have dodged the bullet, so far. Industry leader Brandon Eckenrode, of the Collision Industry Foundation, indicated no shops have requested financial help from the organization due to riot damage. Any business owner can’t help but wonder if the mayhem will stop, or if it will expand into their area of the city. This must be especially perplexing for body shop owners who, besides worrying about their own property and equipment, are entrusted with customers’ vehicles, which must not only be repaired, but kept safe in the meantime.

To find out how collision shop owners can help protect themselves if faced with civil unrest, we contacted several insurance company representatives to ask their advice. Generally speaking, they were very helpful and we are grateful for their contribution, but they preferred not to have their name or company mentioned publicly.

Having Enough Coverage When talking with your insurance agent, consider not only what is covered (building, contents, equipment, company vehicles, customer cars)

Here are some of their major points: Coverage for Civil Commotion The riot (civil commotion) insurance coverage you may have, or may not have, is predicated on the state in which you operate your business, the insurance carrier and how your policy is written. Check with your own insurance agent and see exactly what is covered, and, equally important, what is excluded. One representative noted, “In general terms, basic property insurance won’t be enough, but the shop owner can purchase a business operations policy and a garage keepers

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policy, which would usually extend coverage for damage done by rioting, fire and civil commotion.”

but also the amount of coverage in terms of dollar amount. One insurance representative noted it is not uncommon for small business owners to request the barest minimum of insurance coverage; for example,

just enough to meet a standard set by the local municipality so they can get their business license or meet some other prerequisite. Business Interruption Business interruption coverage can be rather complex and beyond the scope of this article. This coverage can include loss of business hours due to official curfews and complete closure of the business due to riot damage. Policies may require a waiting period of 72 hours before claims can be made, and may be limited to a certain number of weeks of closure. Documentation of all facets of the loss are critical. Damage Mitigation Shop owners should take reasonable steps to minimize damages. This may mean boarding up windows or moving customers’ cars to another safer location. The cost of such actions, such as hiring people to board up shop windows or

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58 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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move cars to another location, may be reimbursable under the insurance policy, or not. Shop owners need to check with their agents. Vehicle Accesories If you are working on accessorized vehicles, especially those with expensive items like high-end stereo equipment, custom tires and wheels, or light bars and lift kits, check with the vehicle owner to see if their insurance will cover those items if they are lost due to civil commotion. Chances are, the shop’s insurance will only cover standard accessories that came with the vehicle from the vehicle manufacturer and not something that was added after the fact. The vehicle owner’s insurance may only do the same unless they purchased some sort of rider policy. Building and Rubble Removal If your building becomes a total loss, you may be required under a city ordinance to remove the rubble of your building. It may sound morbid, but, before this becomes necessary, check to see how much it would ordinari-

ly cost to remove and dispose of a building of your size. If your building is wrecked, chances are many others are as well. Building removal experts may see this as an opportunity to charge premium rates. Make sure you have enough coverage. Terrorists and Vandals So far, those committing the many acts of civil commotion have been largely deemed “protesters.” However, insurers may assert they are not protesters, but terrorists, and thereby the damage is not covered. Also, if your building is left unattended for a certain amount of time, your insurer may invoke a vacancy exclusion deeming damage inflicted by vandals rather than rioters, which may not be covered. Again, and this cannot be stressed enough, check with your own agent to see if you have the correct coverage, in large enough amounts.

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Mercedes GLB250 Recall Issued for Rear Spoilers That Detach by David A. Wood, CarComplaints.com

A Mercedes-Benz GLB250 recall is necessary because the rear spoilers above the tailgates may not have been welded correctly and could allow parts of the spoilers to fly off the SUVs.

The 2020 Mercedes GLB250 recall includes 11,450 SUVs— 10,644 in the U.S. and 806 in Canada. The upper surface of the rear spoiler might not have been welded correctly or not welded at all to the base part. In the beginning of March, Mercedes launched investigations

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based on a complaint describing how the rear spoiler detached from the SUV. The rear spoiler consists of an upper shell and a base part, with the upper surface welded to the base part. Mercedes found the weld connection between the upper surface and base part of the rear spoiler was missing. The supplier determined a production mistake couldn’t be ruled out that caused welding mistakes or missing welds. A driver may notice noise when opening the tailgate, scratches in the coating of the roof in the area of the tailgate or by seeing a spoiler that doesn’t look like it fits correctly. Mercedes dealerships will inspect and if necessary replace the GLB250 rear spoilers once the recall begins Oct. 13. Model year 2020 GLB250 owners may contact Mercedes at 800-367-6372.

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The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 59

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Toby Chess: Best Practice for Air Conditioning Repair, R&I and Replacement Before starting the A/C process, make sure all technicians are EPA approved with 609 certification https://www.epa.gov/mvac/ section-609-technician-training -and-certification-programs • Determine if vehicle is R12, R134A or R1234YF (possible sublet) • Get proper equipment ready for evacuation • Check for Refrigerant or Evacuate the system at teardown • Print out OEM data on A/C • Note amount of refrigerant removed* on estimate/repair order • Remove receiver drier and seal • Remove A/C condenser and seal if necessary • Seal off all A/C lines • Assemble A/C system using all new “O” rings with correct lubricant • Replace refrigerant • Any additional refrigerant needs to be added to the estimate/repair order • Add PAG oil to system if necessary and charge as necessary (Check

OE for specific oil and warranty) • Hybrids and EV vehicles may need a different oil (check OE data) • Check for leaks • Note temperature at center vent on dash and note on repair order (best practice would be to take a picture • Check A/C equipment for scheduled filtration service * Note—If there is no refrigerant in the system due to the accident, the descant in the receiver drier is compromised and the part should be replaced. Always refer to OEM procedures when an A/C has been opened. Lines Highlighted in red are non-included items

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PPI: August Shows Upswing in Auto Glass Material Pricing by Emmariah Holcomb, glassBYTEs.com

Prices for materials used in the auto glass industry showed mostly increases in August, according to recently released Producer Price Index (PPI) data from the Bureau of Labor Statistics (BLS). The monthly PPI, which includes auto glass*, increased by 1.4% on a year-over-year basis. The PPI went down by 0.1% from July. According to the BLS, the commodity classification “organizes products and services by similarity or material composition, regardless of the industry classification of the producing establishment.” Prices for motor vehicle parts went down by 0.1% from August 2019, and in that index, in the commodity grouping, month-over-month prices remained the same. The PPI for molded rubber mechanical goods (automotive) remained the same when com-

Toby Chess: Best Practice for Pre and Post Scans • Discuss diagnostics, scanning and ADAS functions and calibrations with vehicle owner if possible • Make sure that an authorization for repairs has been singed • Move Vehicle to scanning stall • Note vehicle VIN, Miles, RO# and MIL illuminations • Inspect vehicle for ADA components and controls such as cameras, radar sensors, lane departure/blind spot indicators and steering wheel/ dash controls • Print out documented OE procedures for vehicle being scanned • Hook up battery charger to maintain voltage • Hook up scan tool and put vehicle in proper state for scanning • Perform all system DTC scan • Review individual system data values with scan tool related to codes retrieved and/or required data revised such as air bag deployment history steering angle, seat weight, camera or radar angle values • Note 3 case scenarios 1. No accident related codes 2. accident codes 3. Accident related and non accident codes • Research codes and data values

to determine repair options (OE procedures OEM pertinent data • Determine ADAS options (See Airpro Data Retrieval) that will require calibrations with or without DTC”s or Data faults • Blue print vehicle and pay particular attention to the ADAS components • Repair Vehicle back to its preloss condition. On reassembly, check OE data to determine if an assembly needs to be removed for calibration. • Document Initialization, Programing and module set up using procedures from OEM documentation • Perform Post Scan after vehicle assembly and determine New as well as Old DTCs • Clear all possible DTC and correct faults codes that shop equipment will handle and document. Even with all codes that have been cleared, it still may be necessary to send the vehicle for calibration as per OEM ADAS service information • Scenario 1—All codes have cleared and no calibration is necessary, all OEM procedures have

followed and documented, vehicle goes to the next step in the repair process. Scenario 2 vehicle codes have cleared, all OEM procedures have followed and documented, vehicle needs certain system calibrated, vehicle goes to in house calibration center, an outside vendor or OEM dealership. It is highly recommended that another post scan be performed and documented. Scenario 3, vehicle accident codes have not be cleared, an outside vendor is requested and/or vehicle is sent to OEM dealership to clear the codes and perform any calibrations that are required by OEM procedures. Also documentation is essential. Scenario 4, all accident codes have cleared, calibrations performed if necessary, but non accident codes have not been cleared. Customer needs to be notified and a release signed before vehicle is released. • Final step is to determine by the OEM procedures if a road test needs to be performed. Test drive procedures will be outline in the OEM data. A final test drive documentation needs to be filled out and added to the repair order jacket

pared to its reading last month, and also saw a decrease of 1.4% when compared to last year. Adhesives and sealants saw an increase of 0.2% when compared to last month and saw an increase of 1% from last year. Motor vehicle repair and maintenance, in the services grouping, went up by 0.1% on a month-over-month basis, as well as going up by 2.1% for the year. The cost of private passenger auto insurance services went down by 0.3% when compared to last month, which resulted in a 0.7% increase on a year-over-year basis. Commercial auto insurance went up by 0.4% on a month-over-month basis and was up 3.5% year over year. *This number is for the specialty glass category in August under the commodity category. We thank glassBYTEs.com for reprint permission.

Nonprofit Finds, Matches Living Organ Donors MatchingDonors is the nation’s largest living organ donor nonprofit organization finding and registering living organ donors for people needing organ transplants in the U.S. Twenty-two people die every day in the U.S. waiting for a kidney transplant, most waiting seven to nine years. The team at MatchingDonors.com is working hard to make sure that does not happen by finding altruistic living organ donors for people needing kidney transplants. Many patients get their transplant through MatchingDonors.com within only six months, or less. In conjunction with various health organizations, MatchingDonors has created a successful PSA campaign to help people realize they can save lives by being a living organ donor, to encourage them to register as an altruistic living organ donor, and to make them realize they can help save the lives of people needing organ transplants by donating other things. For more information. see MatchingDonors.com. Source: MatchingDonors

60 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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Turn Eight Common Shop Owner Mistakes into Positive Life Lessons with Mike Anderson by Chasidy Rae Sisk

Mike Anderson of Collision Advice recently explained how to turn eight common collision shop owner mistakes into life lessons to benefit their businesses. “When you look at mistakes you’ve made, you have to realize that they aren’t mistakes if you’ve learned from them, and when you learn from them, they become life lessons. I’ve got a lot of life lessons I’d like to share today,” Anderson began. While presenting “Life Lessons of Collision Shop Owners” on Sherwin-Williams’ Ecolean University, Anderson was joined by Mike Lanza, manager of business consulting services at Sherwin-Williams Automotive Finishes, as they discussed why shops struggle and how to fix it. Anderson’s first life lesson focused on the importance of cycle time. He explained, “Cycle time should be important for DRP and independent shops alike because the basic goal in business is to get to breakeven as soon as you can every month. Fixing cars in a reasonable and timely manner will improve your customer satisfaction rate, and if you fix vehicles faster, that allows you to bring more cars in sooner and make more money.” Consumers aren’t the only ones who care about cycle time. This is a vital factor for insurers, particularly those with which the shop has a DRP relationship, because it leads to improved loss adjustment expenses, reduced rental expense and higher CSI scores. OEMs also care about cycle time because it impacts their brand; customers inconvenienced by shop delays are more likely to have a poor opinion of the vehicle manufacturer. Shops should strive to repair vehicles two to four days faster than their market average. “Cycle time is important to all stakeholders in the repair process, but it should be most important to you as a business owner because it’s the key to your breakeven point, which is how you put more money in your bottom line,” Anderson emphasized. Cycle time can be broken into three micro-cycles: pre-repair, repair and post-repair.

Pre-repair cycle time can be positively impacted through scheduling innovations, streamlining the administrative process, 100% disassembling, obtaining the right part the first time as fast as possible, dispatching in a timely manner and avoiding the pitfall of having too much work-in-progress onsite.

Mike Anderson

According to Anderson, “Pre-repair is the biggest opportunity for most shops.” Post-repair delays occur when there are issues with paperwork, last minute supplemental approval delays, notifying the customer the repair is complete too late in the day and struggles with payment verification. “These are self-inflicted,” Anderson stated. “Most of this is caused by doing things incorrectly during pre-repair.” The second mistake shops make, which can be turned into a life lesson, is inappropriate staffing. Build the team’s bench by cross-training technicians to fill each other’s shoes, and improve gross sales per collision tech by alleviating admin work from their shoulders. Anderson urged shop owners to consider the value of a parts person as well: “Shops often tell me they can’t afford a parts person, but I’ve found that the average tech makes a shop between $100 to $135 per hour in gross profit—you can hire a parts person for less than that, allowing techs to focus on fixing the vehicle, so the vehicle moves through the process quicker, making room for more cars and allowing the shop to ultimately make more profit.” Undervaluing culture and trust was the next life lesson discussed. Obtaining the trust of the OEMs, insurers and employees is vital for a shop to dominate in the future. “Broken promises lead to a loss

of trust. Sometimes, we have to go the extra mile to earn someone’s trust,” Anderson said. Lanza added information about weekly Personal Responsibility in Delivering Excellence (PRIDE) meetings held at Sherwin-Williams, where everyone shares their needs, successes and failures. “Everyone in the business is responsible for providing excellence, plus this allows management to hear everyone. Just being heard is so important,” Lanza said. Regarding the fourth life lesson—having a lack of financial knowledge—Anderson explained the purpose of a profit and loss statement is to determine where you’re making money, losing money and not maximizing profits. “When a shop is making a lot of sales, we don’t focus on what made us profitable,” he pointed out. “Lots of sales cover lots of sins.” Relying on position statements to get paid is another common mistake amongst collision repairers, according to Anderson. The 14 manu-

facturers that represent 98% of U.S. vehicles sales have position statements, but when asked what to do about the OEMs that don’t, Anderson insisted, “Quit relying on position statements. We need to dig deeper into OEM repair procedures. Often, repair procedures indicate that a scan is needed to complete a process.” Anderson’s sixth life lesson focused on the importance of hiring an in-house mechanic as it pertains to labor hours per estimate, the growth of mechanical labor operations and the impact this can have on both cycle time and gross profit. The penultimate mistake shop owners make is not mentoring others. “In the old days, people learned by working alongside a master, and everything they did was observed by the master,” Anderson shared. “Today, things move so fast that managers often aren’t around when their people first use their new knowledge. Many managers also have a ‘let me just do it’ mentality, but great leaders tell, show, watch, correct See Shop Owner Mistakes, Page 64

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Contact your local Volkswagen dealer or visit Wholesale.VWServiceandParts.com to place your Genuine VW Collision Parts order today. “ Volkswagen” and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2020 Volkswagen of America, Inc.

62 OCTOBER 2020 AUTOBODY NEWS / autobodynews.com

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KIA HECU Recall Issued Following Engine Fires by David A. Wood, CarComplaints.com

A KIA HECU (hydraulic electronic control unit) recall has been issued for more than 440,000 Optima and Sorento vehicles in the U.S. after eight fire-related complaints. In Canada, KIA is recalling 1,243 model year 2019 Stingers due to problems with the HECUs. The 2013-2015 KIA Optima and 2014-2015 KIA Sorento vehicles have HECU components that may leak brake fluid internally and cause an electrical short-circuit, starting fires in the engine compartments. In February, KIA received a complaint about a 2015 Sorento that concerned electrical failures. The dealership found the HECU had melted and it was later learned the HECU connector and circuit board near the connector suffered heat damage. KIA worked with the supplier and determined the HECU had internal damage caused by brake fluid. Two more incident reports

ge 64

were filed and more fire and heat damage reports arrived about KIA Optima and Sorento vehicles. The supplier also discovered the same HECU component used in the KIA vehicles was also causing problems in Hyundai vehicles, which today recalled more than 151,000 Santa Fe Sports following 15 engine compartment fires. KIA owners may notice burning odors, smoke from the engine compartments or illuminated warning lights. KIA dealers will inspect the HECUs for leaking brake fluid and replace the HECUs if needed. The HECU recall begins Oct. 15, but concerned Optima and Sorento owners may contact KIA at 800-333-4542 and refer to recall number SC197. We thank CarComplaints.com for reprint permission.

AUTOBODY

P&C Trends in the Age of COVID-19

SafetyNest™ Helps Drivers Stay Insured

Mitchell International, a leading provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries, on Sept. 15 released its third quarter Industry Trends Report for 2020. The report shares important data-driven trends impacting the property and casualty industry, along with expert insights, opinions and guidance that can help businesses navigate this year’s new environment. Throughout this quarter’s report, Mitchell experts share insights important to the industry, including new vehicle repair trends based on an analysis of diagnostic scanning data, complications introduced by automobiles with Advanced Driver Assistance Systems (ADAS), the challenges of the insurance industry workforce’s most experienced adjusters thinking about retirement and the impact of COVID-19 on health care employee workers’ compensation claims. Source: Mitchell

SafetyNest, a 501(c)(3) nonprofit organization created and funded exclusively by Branch Insurance, will be providing financial assistance to drivers who have suffered from reduced income or loss of work due to the pandemic. SafetyNest and Branch Insurance share the belief that by helping more people become insured, insurance can be more affordable for all. It’s with that belief that SafetyNest announces it intends to pay car insurance premiums, now through the end of 2020, up to $250 per approved application, to prevent the possible financial devastation that can result from being uninsured. The program will help those who are facing financial hardship to stay insured and be better protected from life’s uncertainties. Those affected can apply for financial assistance at safetynest. ourbranch.com if they have recently lost a job, are experiencing reduced income, or had their car insurance cancelled Source: SafetyNest

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autobodynews.com / OCTOBER 2020 AUTOBODY NEWS 63

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Searles Joins AMi as New President

White Named to Women in Automotive Board

The Board of Trustees at the Automotive Management Institute, the industry’s leading provider of management education for automotive service and collision repair professionals, is pleased to announce Chuck Searles has been selected as the organization’s new president, effective immediately. Searles will succeed Jeff Peevy, who left to return to I-CAR as VP of technical products, programs and services in late July. His career began as a dealer service technician in 1992. During nine years as a service technician, Searles was employed by three different dealers in two states, Alaska and Arizona. This diversity helped expand his skillset and knowledge base, which eventually led to a technical service support position with Nissan North America in 2001. Over the last 19 years, he has served in four different Nissan training roles.

Dana W. White, chief communications officer, Hyundai Motor North America, has been named to the Women in Automotive board. In this role, White will be a resource and advocate for the organization’s mission to empower and develop women in the automotive industry as thought-leaders, industry executives and mentors for other women seeking career advancement and growth opportunities. The Women in Automotive organization currently has 20 executive-level board representatives from a variety of automotive technology, supplier, media outlets and dealerships. In her role as CCO at Hyundai, she is responsible for leading all regional communications and public relations strategy for HMNA, HMA, Genesis Motor America and Hyundai Motor Manufacturing Alabama in coordination with other affiliates, including the Hyundai Washington, D.C., office.

Source: AMi

Source: Women in Automotive, Hyundai.

Continued from Page 62

Shop Owner Mistakes and repeat; you have to adopt this philosophy for building future leaders. Take a chance, mentor others.” Teaching allows you to learn twice. Make sure you’ve set clear expectations, provided the proper training and equipment, and allowed time to acclimate to the new information. Quoting Bob Goshen, Anderson added, “Leaders… should influence others… in such a way that it builds people up, encourages and edifies them so they can duplicate this attitude in others.” The eighth and final mistake to turn into a life lesson Anderson shared was playing not to lose, instead of playing to win. “Most of us start out playing to win! We move to playing to not lose. If I do this, my employees might quit, I might lose a DRP—we are focused on what we might lose, not what we might gain. Get off the sidelines and into the game! Don’t focus on what you might lose; focus on what you could gain!”

Anderson closed with an anecdote about his 23-year-old self being discouraged by the constant complaints he heard from collision repairers. His father told him he had a decision to make: “Once you’re gone, will folks look back and say the collision repair industry sure changed Mike Anderson? Or will they look back and say Mike really changed that industry? What’s your legacy?” For more information about Collision Advice, visit collisionadvice.com Throughout the presentation, Lanza shared insights into how Sherwin-Williams can assist shops with each life lesson. More training videos are available at www.ecolean university.com.

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

Honda Agrees to $84M Multistate Settlement for Defective Airbags Kentucky Attorney General Daniel Cameron announced Aug. 25 a more than $84 million multistate settlement with American Honda Motor Co., Inc. and Honda of America Mfg., Inc. (collectively “Honda”), over allegations Honda concealed safety issues related to defects in the frontal airbag systems installed in certain Honda and Acura vehicles sold in the U.S. The systems were designed and manufactured by Takata Corporation, a longtime Honda supplier, and were first installed in Honda vehicles in the 2001 model year. The settlement, reached between the attorneys general of 48 states, territories and the District of Columbia and Honda, concludes a multistate investigation into Honda’s alleged failure to inform regulators and consumers that the frontal airbags posed a significant risk of rupture, which could cause metal fragments to fly into the passenger compartments of many Honda and Acura vehicles. The ruptures have resulted in at least 14 deaths and over 200 injuries in the U.S. alone. “Our Consumer Protection Division represents the interest of Kentuckians and fights on their behalf when there is a widespread product

safety concern, like we’ve seen with the defective airbags in these vehicles,” said Cameron. “This multistate settlement ensures that product safety standards are strengthened going forward.” Anyone who owns a Honda or Acura vehicle is urged to visit the airbag recall website at https://hondaairbaginfo.com to learn more. The states have alleged Honda engineers suspected the airbags’ propellant, ammonium nitrate, could burn aggressively and cause the inflator to burst. Despite these concerns, Honda delayed warning consumers or automobile safety officials, even as it began partial recalls of affected vehicles in 2008 and 2009. Further, Honda continued to represent to consumers that its vehicles, including its airbags, were safe. Since 2008, Honda has recalled approximately 12.9 million Honda and Acura vehicles equipped with the suspect inflators. The states have alleged Honda’s actions, or perhaps more accurately its failures to act, as well as its misrepresentations about the safety of its vehicles, were unfair and deceptive, and that Honda’s conduct violated state consumer protection laws. Under the terms of the consent judgment, which will be filed in Frank-

lin Circuit Court, Honda has agreed to strong injunctive relief, which, among other things, require it: To take steps to ensure that future airbag designs include “fail-safe” features to protect passengers in the event the inflator ruptures. To adopt changes to its procurement process for new frontal airbags, to ensure that its suppliers have the appropriate industry certifications and satisfy key industry performance standards, as well as improve record-keeping and parts tracking. To implement recurrence prevention procedures such as requiring that Honda approve all new frontal airbag designs before the company will consider them for use in new Honda vehicles. To abide by prohibitions on misleading advertisements and point of sale representations regarding the safety of Honda’s vehicles, including the airbags. To make improvements in critical areas such as risk management, quality control, supplier oversight, training and certifications, and implementing mandatory whistleblower protections. Honda also agreed to pay the participating attorneys general a total of $84,151,210.15. Consumers who own a Honda or

Acura vehicle are strongly encouraged to visit Honda’s airbag recall website at https://hondaairbaginfo.com, or call its Customer Service toll-free number at (888) 234-2138, to see if their vehicle is subject to a recall. Consumers may also check for open recalls by going to Safercar.gov. All safety recall repairs are free at authorized Honda dealers. Consumers in Kentucky can also contact the Attorney General’s Consumer Protection Division at (502) 696-5389 with any questions about this settlement. In addition to Kentucky, the multistate group includes Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Guam, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. Source: Kentucky.gov

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SEMA Data Co-op Acquires PartsHub

The SEMA Data Co-op (SDC) has acquired PartsHub, a comprehensive catalog management solution that will enhance a participating manufacturer’s ability to create and update industry standardized product information, regardless of their product data knowledge or expertise. The SDC is the leading product data service in the specialty equipment aftermarket. Using PartsHub’s expanded product information management (PIM) software, SDC manufacturers will be able to easily organize their data, reach more resellers and sell more products. Integrating PartsHub’s interface with the SDC product information management system makes it easy for manufacturers to organize and update their data for industry resellers. The updated interface also allows possible datasets that can easily be exported in formats that meet reseller needs. Source: SDC

Allstate, GEICO Among Large Auto Insurers Facing COVID-19 Rebate Backlash by Autumn Heisler, Risk & Insurance

At the onset of the COVID-19 pandemic, many large car insurers realized that their policyholders were not driving to work, school, practices, shops and more as social distancing and shelter-in-place became the norm. In order to reflect this drop in cars on the road, large insurers began to offer rebates to customers. Liberty Mutual, State Farm, Geico, Allstate and more offered some level of premium relief for drivers. However, in some cases, it did not appear to be enough. Several lawsuits have been brought to light in recent weeks alleging certain insurers failed to provide “fair and appropriate” rebates and, instead, unfairly profited from high rates. In Illinois specifically, policyholders have come for Allstate and Geico, as well as Progressive, Travelers and a few others, with six separate lawsuits filed in the last week of July alone. The policyholders are alleging the insurance relief offered during

the pandemic did not go far enough when accounting for the drop in claims these auto insurers were seeing during the same interval. Statistics show miles driven by Illinois motorists dropped by nearly two-thirds during March and April. To the policyholders, the 15% credit offered by Allstate specifically “falls short of the relief that any fair and reasonable actuarial analysis would require.” Many of the complaints have also compared the auto insurers to their competitor State Farm, which, in April, offered most policyholders a 25% credit. The Illinois-based news source Herald & Review reports, “The suits allege the insurers violated the Illinois Consumer Fraud and Deceptive Business Practices Act. In addition to Allstate, American Family Insurance, Progressive, Geico, Erie Insurance and The Travelers Company are named as defendants.” At this time, attorneys representing the Illinois consumers are seeking class-action status for the

Commercial Fleet Sales Fall 16.8% in August Commercial fleet sales from nine manufacturers totaled 57,571 in August, representing a 16.8% overall decrease compared to the same time last year, following a 6.3% drop from the previous month. Total fleet sales for the month—which is comprised of commercial, rental and government sales—came in at 101,159, which represented a 51% drop from the same time last year. The declines seen in the rental market continue to contribute to these significant drops, as have a 19.6% drop in commercial truck and SUV sales and a 17.5% decline in government car sales. However, commercial car sales are up 18.7% in August, though sedans represent the smallest segment volume for commercial fleets. This growth reflected the second month of consecutive growth for this segment since COVID-19 was declared a pandemic. The rental fleet segment has continued to maintain its low numbers, and saw an overall 83% decline in August, close to the 84.5% drop in July.

Through August, rental fleet car sales fell by a drastic 88.9%, totaling 4,673 units. Truck and SUV segment sales decreased 79.8% at 15,074 units. Combined, rental fleet sales totaled 19,747 for the month of August. Meanwhile, the government fleet continued its overall recovery in August, despite the decline in car sales. There were 2,065 cars sold to government fleets, representing the 17.5% decline. However, this was offset by a 17.7% increase in truck and SUV sales. Combined, truck, SUV and car vehicle sales for government fleets amounted to 23,841 units, which reflected a 13.5% increase. Year-to-date, as of August, overall fleet sales from nine manufacturers total 1,129,531, 44% less on a year-over-year basis, indicating there is still a long road to recovery for 2020. So far car sales are down 59.3% year-to-date and truck and SUV segment sales are down 38% year-to-date, impacted heavily by the declines of the rental market. We thank Auto Rental News for reprint permission.

suits. Some predict thousands of policyholders represented by the named defendants could join each suit before the end of the year. Scorecard: Several large car insurers will have to prepare for incoming suits regarding their rebate response to the novel coronavirus pandemic. Takeaway: Across the country, businesses and individuals alike are seeking restitution for lost income during the pandemic. Business interruption and auto lines are just the start. We thank Risk & Insurance for reprint permission.

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Daimler AG to Pay $1.5B for Emissions Cheating The U.S. Department of Justice, Environmental Protection Agency (EPA) and California Air Resources Board (CARB) announced Sept. 14 a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC, resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. Under the proposed settlement, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the U.S. between 2009 and 2016 and pay $875 million in civil penalties and roughly $70.3 million in other penalties. The recall program and federal mitigation project are expected to cost the company about $4.36 million. The company will pay another $1.1 million to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion. Source: U.S. Dept. of Justice

Speaker Highlights Common Challenges Involved in ADAS Calibration “If you’re a shop and you have a brand new tire on the right rear, but Speaking at August’s Collision In- the other three are at the 70% or 80% dustry Conference (CIC), Bob Pat- worn level, what’s the decision? Is tengale, technical systems manager the insurance company going to pay for Opus Intelligent Vehicle Support, for all four new tires? Or just the discussed some of the challenges one? That’s something the industry collision repairers face in calibrating needs to answer. Technically you various advanced driver assistance should have a matching set of tires.” Using the Honda procedures systems. to calibrate the blind spot monitoring system on a late-model Accord as another example, Pattengale noted proper calibration requires a full tank of gas. Sandbags could be used to simulate the weight of the gas—about 5 lbs. per gallon—in a vehicle withIf sandbags are used to simulate the weight of a full tank out a full tank, he said, but of gas while calibrating a vehicle’s ADAS, they may need they need to be placed in to placed in particular parts of the vehicle, based on the portion of the vehicle where the tank is located just above the fuel tank. On Pattengale cited as an example the Accord, that means some weight a vehicle that had one or two tires on both the left and right sides of the vehicle, because it has a saddle fuel damaged in an accident. “Typically we’re looking to tank. “We need to try to be as accumake sure the vehicle has the same wear patterns on the tires all the way rate as we possibly can to mirroring around the vehicle,” Pattengale said. a full tank of fuel,” he said. by John Yoswick

Pattengale, who prior to last year spent more than a dozen years with Bosch, said he realized early on in his current position he needed to think differently about calibrations in a body shop versus a mechanical facility. On one of the first vehicles he calibrated in a body shop, he found the Allen screw used to adjust a radar unit was seized up, a common problem depending on vehicle age and geographical area, he said. “The area in that shop being used for calibrations happened to be in the paint prep area,” Pattengale said. “I’m thinking that since this thing is locked up, I’ll spray a little WD-40 on it. I had to take my mechanical hat off and think about that that spray could definitely create an issue with paint.” In some cases, he said, such ADAS units may need to be replaced because they cannot physically be adjusted. “The physical radar itself is not bad, but the bracket that holds it, or the device that adjusts it, is not functioning or in the proper position,” he said. “That can be an unexpected item [during repairs.]”

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Intoxicated Tesla Owners Leave Driver’s Seat Empty to Keep Drinking by Loukia Papadopoulos, Interesting Engineering

Social media is all about attention-seeking and very often it goes too far. Such is the case with a bunch of irresponsible guys who decide to continue drinking and singing off-key to Justin Bieber’s 2010 hit “Baby” while letting the Autopilot in their Tesla Model S drive by itself. You might be wondering how we know that this event actually happened. Well, because these smartypants actually posted video evidence of their many crimes, including drunk driving and having open fluid containers in their car, to TikTok. According to The Drive, the singing friends were going down a highway at 65 mph with the driver’s seat completely empty and just Autopilot to guide the speeding car. If you would like to see the video, but don’t want to reward bad behavior with more views, you can watch the clip on TMZ. The media outlets refer to

these dangerous boys as clowns, morons and idiots, and explain how Tesla’s Autopilot is not meant to be used as a designated driver, despite Elon Musk’s attempts at making the software completely autonomous. A Tesla on Autopilot always requires a driver behind the wheel particularly to avoid accidents, which these young men seem to be heading straight for. In fact, even with a driver behind the wheel, Teslas on Autopilot have seen their fair share of crashes that have killed at least four people so far. This is something many followers on Tik Tok pointed out to the video’s poster, blurr.tv, but something he clearly ignored as the clip is still online and gathering ever more likes and views. Needless to say, it is dangerous and irresponsible, to give attention to such behavior that’s why we declined to embed the video here. Here’s hoping more people will not seek to emulate blurr.tv’s actions. We thank Interesting Engineering for reprint permission.

Uber Plans to Have an All-Electric Fleet by 2030 and a Zero-Emissions One by 2040 by Loukia Papadopoulos, Interesting Engineering

COVID-19 was hard on all of us but it did have some positive sides. As the world slowed down nearly to a stop, pollution also faded. This trend caused some changes in people everywhere who became ever more eco-conscious. This has caused a desire for more and more companies to go green. One such company is Uber. Let’s face it, the pandemic could not have been good for the ride-sharing firm. As people sought to avoid others at all costs, they opted to choose locations they could either walk or bike to or took their own cars. Can you think of any time recently where you used an Uber? This could be why Sept. 8, Uber CEO Dara Khosrowshahi released a blog where he spoke of his company going green during the pandemic recovery. “The pandemic has caused many cities to rethink their infrastructure, transforming parking into parks and creating more space for

GM CEO Mary Barra: Demand is Coming Back Quicker Than we Thought by Brian Sozzi, Yahoo Finance

The race by car on the part of households to decamp to suburbia from congested cities amidst the COVID-19 pandemic appears to be a tailwind for at least one U.S. auto giant. “Actually, you know it varies across the globe,” General Motors Chairman and CEO Mary Barra told Yahoo Finance’s The First Trade on current demand trends. “We’re seeing the China market come back as well as the United States and North America in general, a little faster than we thought. I would say we’re cautiously optimistic. There’s a lot that we need to see start going in the right direction. But right now we’re seeing especially retail demand come back more quickly than we expected.” Barra’s comments come on the heels of GM shelling out $2 billion for an 11% stake in electric truck maker Nikola this week. The deal will make GM the lead manufacturer of Nikola’s 906-horsepower Badger pickup truck and supplier of batteries for the upstart’s semi-trucks.

To be sure, the latest data on the broader U.S. auto market is a little bit more mixed than the trends GM is seeing at the moment. Toyota reported earlier this month that sales in August plunged 23%, marking its fifth straight monthly decline. Sales at Hyundai

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“But right now we’re seeing especially retail demand come back more quickly than we expected.” — Mary Barra tanked 8.4%. Even Subaru—which has been riding high on the back of interest in its Outback and Forrester—saw sales fall 17.4%. The saving grace for automakers, as Yahoo Finance sister publication AutoBlog points out, is that transaction prices for new vehicles are up as they pull back on incentives. That should help offset weaker volumes in the near-term. Nonetheless, the auto industry is likely to have a challenging fall as dealers battle with low inventories, caused by plant shutdowns at the height of the pandemic, and cautious consumers dealing with financial

walkers and cyclists. We’ve had a glimpse of what life could be like with less traffic and cleaner air—in cities built for people, not for cars,” wrote the executive. Khosrowshahi revealed his firm would not be going back to business as usual. Instead, it will seek to reduce its environmental impact. “It’s our responsibility as the largest mobility platform in the world to more aggressively tackle the challenge of climate change. We want to do our part to build back better and drive a green recovery in our cities,” he added. This will be no easy task as Uber has very ambitious plans. The company is committed to developing a fully zero-emission platform by 2040. Uber plans to have 100% of rides taking place in zero-emission vehicles by 2040 and 100% of rides take place in electric vehicles (EVs) in the U.S., Canada and Europe by 2030. Can this lofty goal be achieved? Only time will tell. We thank Interesting Engineering for reprint permission.

potential buyers could not find what they wanted,” said Cox Automotive Senior Economist Charlie Chesbrough. “The industry is also wrestling with a shortage of MY2021 vehicles, which normally the OEMs would be rolling out at this time of year. The lack of fresh product likely kept some buyers on the sidelines. The inventory situation is going to take some time to improve, and when coupled with an ongoing pandemic and weak economy, vehicle sales could face a difficult period this fall.” We thank Yahoo Finance for reprint permission.

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Liability Exposures on the Rise Globally: AGCS by Ryan Smith, Insurance Business Magazine

Liability exposures for companies around the world are increasing, according to a new report from Allianz Global Corporate & Specialty (AGCS.) Rising litigation, collective redress and large court verdicts, frequent recalls in the automotive and food sectors, civil unrest, environmental concerns and other factors will likely impact businesses and insurers, according to the report, which highlighted ﬁve trends for the sector. “Pricing in the liability insurance market may have turned in recent months. However, social inﬂation trends and large court verdicts continue in the United States,” said Ciara Brady, global head of liability at AGCS. “This, combined with expanded exposures for non-U.S. companies doing business in the U.S. and an increase in automotive part recalls, is putting pressure on liability insurers. “Overlay this with the uncertain

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before their case is tried and therefore may be willing to settle out of court. Trend 2: Rising automotive repair and recall costs Recent years have seen a growing number of recalls in the auto industry, both in the U.S. and Europe. In the U.S., there were 966 safety recalls affecting more than 50 million vehicles in 2019. In Europe, 2019 saw 475 recalls—the highest single-year figure in the 2010s and an 11% year-over-year spike. In many cases, auto components are produced by one of only a few suppliers that serve the entire industry, which can make it prone to accumulation risks. As a result, recalls have become larger and more expensive over time, AGCS said. Industry losses are also driven by the increasing complexity of technology, which can increase time and labor rates for repairs. Trend 3: Food safety risks and recalls Food recalls are increasing globally, driven by factors like global manufacturing, fewer suppliers in complex supply chains, enhanced regulatory scrutiny, and improved technology that allows better traceability and pathogen detection, AGCS said. The COVID-19 pandemic could have a significant impact on food recalls in the future, AGCS said. While dramatically increased hygiene standards could reduce contamination risks, risk exposures could also rise due to temporarily closed and restarted factories, decreased regulatory visits and erratic supply chains. Trend 4: Riots and civil unrest

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Recent civil unrest in the U.S., Chile, Hong Kong and elsewhere are high-proﬁle examples of the rise of civil unrest globally, AGCS said. “Political violence increasingly causes property damage, disruption and loss of attraction and revenues to many businesses,” AGCS said. “For example, civil disorder in the wake of the death of George Floyd in many U.S. cities is expected to have caused losses of more than $1 billion.” While the COVID-19 outbreak may have temporarily suppressed civil unrest in some countries, AGCS warned that the underlying social issues remain—making it likely that further protests will occur in the near future. Trend 5: Indoor air quality after COVID-19 Two environmental risks are particularly paramount for businesses right now: indoor air quality concerns with legionella and mold growth, and the increasing risk of environmentally driven prosecutions, ﬁnes and remedial actions as public awareness of pollution and natural capital depletion grows, AGCS said. Mold and legionella risks have been exacerbated by the pandemic-related shutdown of commercial buildings and hotels; when certain air quality or water installation systems are dormant for a time, they are more susceptible to bacterial contamination. Undetected mold growth can also result from real estate companies delaying planned maintenance or renovation activities, AGCS said. We thank Insurance Business Magazine for reprint permission.

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is dedicated to helping improve the safety and well-being of animals in communities nationwide. The automaker’s commitment to pets is one part of its Love Promise company vision. For more information about Subaru Loves Pets, visit www.subaru. com/pets. We thank Auto Remarketing for reprint permission.

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GM Tells Most Salaried Workers to Stay Home Till Next Summer by Mark Phelan and Jamie L. LaReau, Detroit Free Press

General Motors salaried workers in the U.S. have been told to plan on continuing to work from home until at least June 30, 2021, according to an internal document provided to the Free Press. “In coming weeks, you will receive instructions from your site leader regarding the process to retrieve personal belongings and any equipment necessary to work remotely,” according to an email signed by GM Global Human Resources Chief Kim Brycz and GM Chief Sustainability Officer Dane Parker. Hundreds of GM salaried employees are already working at factories, tech centers and other facilities, but the vast majority have been working remotely since the gravity of the COVID-19 pandemic became clear in March. “Our current outlook is to continue operating as we are today until June 30, 2021,” the memo said, adding GM is working to create “a more flexible work culture” after the

pandemic. The memo concluded with a reminder for all employees to practice good safety protocols: “Wear a mask, wash your hands frequently, physically distance whenever possible and get a flu shot when they become available this fall.” GM had been considering bringing some employees back later this year. The revised schedule is the latest sign U.S. business leaders think we’re a long way from having the pandemic under control with treatments or a widely available vaccine. “Every company is struggling with when and how to bring employees back into corporate offices, particularly since mass availability of a vaccine remains months away,” Cox Automotive Senior Analyst Michelle Krebs said. “Configuration of workplaces and common areas, like the cafeteria and restrooms, have to be contemplated. Ventilation is a consideration. “Getting people to and from

their offices using elevators is a conundrum. Sure, you can try to limit the number of people in an elevator, but then how do you manage people gathering to wait for the elevator.” Separately, employees at Wards Communications cleared out their offices in Southfield, MI, this week at the company that has covered the auto industry for nearly a century. Ward’s employees will work remotely, using a portion of their previous workspace for supplies, occasional meetings and a video studio. “Employers have discovered that their workforce has been surprisingly productive working from home, albeit not ideal especially for parents with children being schooled at home,” Krebs said. “And no company—like schools and colleges— wants to get people back into the office only to suffer a virus outbreak and send everyone home.” We thank the Detroit Free Press for reprint permission.

ProColor Collision to Enter U.S. Market Mondofix (Fix Network World) has announced plans to launch the ProColor Collision brand in the U.S. “There is tremendous potential for the continued growth of the automotive aftermarket space in the United States, in particular the collision business,” said Steve Leal, president and CEO of Fix Network World. “We look forward to growing the ProColor Collision brand by directly pursuing aggressive new strategies that leverage our global track record and benefit industry partners and customers in the U.S.” Fix Network World acquired ProColor Collision in September 2019 with a vision to expand the valuable brand outside Quebec. The first ProColor Collision location in Ontario, Canada, opened in July of this year, with another 14 locations expected to launch across Canada by December. In the U.S., ProColor Collision will initially focus on building its network in California, Florida, Georgia and the Carolinas. Source: ProColor Collision

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As Hurricane Season Arrives, CARFAX Provides a Flood of Information by Auto Remarketing staff

A musty odor in the interior. Damp carpets. Rust around doors. With the arrival of hurricane season and more waterlogged vehicles showing up around the country, CARFAX is releasing information on various aspects of the situation, such as telltale signs of vehicle flooding.

CARFAX is also highlighting statistics such as the fact that 446,836 flood-damaged cars are on the roads in 2020. That is according to annual CARFAX data, and the company says that number could rise in the wake of Hurricane Laura. CARFAX says Laura damaged as many as 5,000 vehicles.

“This nationwide surge can put unsuspecting buyers at risk,” CARFAX wrote in a news release. The company also released a list of the top 10 states with the most vehicles reported as flood damaged by entities such as departments of motor vehicles and insurance companies. Although Texas leads the nation in flood-damaged cars, vehicles with flood damage show up in states where flooding might not be at the top of car-shoppers’ minds, according to CARFAX research. CARFAX general manager of data Faisal Hasan said car shoppers should do their homework, and Hasan reiterated that “flood-damaged cars surface in every corner of the country.” “Con men can quickly clean up these cars up, move them and then resell them,” Hasan said. “Once a car has been waterlogged, it will never be the same. These cars literally rot from the inside out, and the mechanical, electrical or safety systems can fail at any time.”

California motorist Carole Ross can relate. She was driving her vehicle home from the dealership and owned it for less than two hours before it broke down. “We ran a CARFAX Report while we were on the side of the road waiting for a tow truck, and that’s when we saw the car had been in a flood in Louisiana a few years ago.” To help consumers avoid such situations, CARFAX has released its list of the seven telltale signs of flooding. Those include: • A musty odor in the interior, which sellers sometimes try to cover with a strong air-freshener • Upholstery or carpeting that may be loose, new, stained or doesn’t seem to match the rest of the interior • Damp carpets • Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches • Mud or silt in the glove compartment or under the seats • Brittle wires under the dashboard • Fog or moisture beads in the interior lights, exterior lights or instrument panel

CCC AutoClaims Snapshot—August 2020 Overall repairable appraisal counts for the industry were down 14.9% in August 2020 versus August 2019. Severe weather in the Northeast from Hurricane Isaias, significant hail in South Dakota and Minnesota and dangerous derecho event in Iowa and Illinois led to an increase in comprehensive losses in the first half of the month. For example, comprehensive losses in Iowa accounted for 70% of all total loss valuations and 66% of all repairable appraisals. This underscores both the severity of the storms and the fact that non-comprehensive losses overall remain down. Losses from the wildfires in California and Hurricane Laura in Louisiana and Texas also continue to come in. Increases in comprehensive losses overall will help offset the decline in non-comprehensive losses and if September weather is as volatile, could result in claim counts for the year down only about 5%. Excluding comprehensive losses, counts also remained down over 25% year-to-date, although August 2020 non-comprehensive counts were down only 20.5% versus down

24.7% in July 2020. Areas hit hardest by the wave of COVID-19 infections in California and Texas have slowed claim

count recovery in late July and early August, with areas such as San Francisco, Los Angeles, Dallas, Houston and El Paso still seeing non-compre-

hensive appraisals down between 27% and 30%, while volume in other areas such as NYC, Chicago, Atlanta, Denver and others is down between 15% and 20%. Government data from early August reveals interstate miles are still down most among all road types, and this is consistent with data from other sources showing rush hour traffic is still below average in many cities. The primary factor most highly correlated to accident frequency is vehicles per road mile—i.e. how many vehicles on a given road at any given point. This is also typically referred to as “congestion,” which right now in most areas still seems to be below normal. With the number of COVID-19 cases rising again as many return to school, and the approach of normal flu season, many companies plan to keep at least part of their staff remote through the remainder of the year. This will likely mean non-comprehensive may remain down 10% to 15% for full year 2020. Source: CCC

CARFAX offers a free Flood Check tool at carfax.com/flood to help protect consumers. The tool includes a national map showing where flood cars have washed up, and a flood damage checklist consumers can perform. The following states have the most flood-damaged vehicles, and all of them have seen an increase since 2019: Texas: 98,400, +13% Florida: 31,300, +8% Kentucky: 26,400, +6% Pennsylvania: 23,400, +18% North Carolina: 19,300, +3% Illinois: 17,800, +14% New Jersey: 14,500, +15% Louisiana: 14,000, +22% California: 12,400, +10% South Carolina: 12,000, +10% The CARFAX information also included a list of the top 10 cities with flooded cars. Houston, New York, Philadelphia and Miami-Fort Lauderdale lead the way. We thank Auto Remarketing for reprint permission.

ASE Survey Finds Adaptions ASE conducted a comprehensive survey to understand the impact of the COVID-19 pandemic on the automotive service industry. While 19% of those surveyed have seen an increase in business since the start of the pandemic, 56% reported a decrease. The survey found that 34% of service facilities have reduced business hours, and the effect on technicians has come in the form of reduction of hours (34%), temporary furloughs (14%) and terminations (8%). Results show nearly 70% of those surveyed are using protective equipment, while 63% have implemented social distancing measures and 62% have added supplemental sanitizing measures. More than 65% said they have done some type of selfstudy or enhanced training, while 46% participated in a webinar or online training course.More than 42% of respondents said they have increased their usage of social media somewhat or significantly, with Facebook and YouTube named as the top platforms used. Source: ASE

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