October 2022 West Edition

CAA Releases Update on Key California Bills Tesla Powerwall Customers Continue to Help California’s Grid

The 2022 California legislative ses sion ended late Aug. 31. Gov. Gavin Newsome has until Sept. 30 to sign or veto bills on his desk.

Below is a list of key bills CAA tracked this year. CAA will continue to monitor bills on the governor’s desk and report.

Legislative Bills

CAA has concerns over these cata lytic converter theft bills:

AB 1740 Requires core recyclers who accept converters from commer cial enterprise, which includes auto repair dealers, to obtain the following from seller: name, business address and phone, business license or tax

ID, date of sale, number of converters sold, amount of money and written agreement to be kept for two years.

Status: Governor’s desk.

AB 2407 Requires core recycler who accepts converters from seller to have a written agreement and ob tain thumb prints from seller dispos ing of catalytic converters. The bill was amended to exempt automotive repair dealers from thumb print re quirements.

Status: Died.

AB 2682 Any auto repair shop that installs or replaces a catalytic con See California Bills, Page 18

California Officially Requires All New Cars Sold to Be Zero-Emission by 2035

by Madison Hirneisen, The Center Square

California air regulators have set a 2035 deadline for all new passenger cars and trucks sold in the state to be zero-emission vehicles, a move that will make the Golden State one of the first jurisdictions in the world to enact this increasingly-costly re quirement.

The state’s plan, adopted by the California Air Resources Board on Thursday, sets specified targets to phase out sales of zero-emission vehicles in the state starting in 2026. According to the plan, 35% of vehi

cles sold in the state will be required to be zero-emission in 2026, 68% in 2030, and 100% in 2035.

by Johnna Crider, Teslarati

Tesla Powerwall customers continue to help California as the grid strug gles in the face of an extreme heat wave and the looming possibility of rolling blackouts.

On Sept. 5, Bloomberg reported the state declared another power grid emergency and said blackouts could happen. Elliot Mainzer, CEO of the California Independent System Op erator (Caiso), said rotating outages were a possibility.

“We are now moving into the extreme part of this heat wave, and

really stepping up those actions will be essential for maintaining reliabil ity,” Mainzer said.

Tesla Powerwall customers won’t have to worry about the rolling blackouts, however, and some are enrolled in Tesla’s virtual power plant (VPP) beta program with Pa cific Gas and Electric (PG&E).

Tesla and PG&E recently launched the VPP beta program in which Tesla Powerwall customers can participate and help the grid when it is in need.

See Tesla Powerwall, Page 20

The regulations will largely phase out the sale of gas-powered vehicles in California, though there See Zero-Emission, Page 24

California Gas Vehicle Ban Faces Pushback from 17 States

by William Johnson, Teslarati

Seventeen states have filed a lawsuit with the U.S. Court of Appeals, suing to prevent California from banning new ICE vehicle sales after 2035.

California’s Air Resources Board (CARB) voted Aug. 25 to ban the sale of new ICE vehicles after 2035, but 17 states’ attorneys general have sued in federal court to block the move. California’s regulations are accepted as regulations in 14 other states and Washington, D.C.; an approval or blocking of this regulation could prove far-reaching.

According to the St. Louis Post-Dispatch, Missouri’s attorney general, along with the attorneys general in Ohio, Alabama, Arkansas,

Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, Oklahoma, South Carolina, Texas, Utah and West Virginia, have sued to prevent CARB from banning new ICE vehicles after 2035.

“If California can set restrictive ‘gas emissions’ standards, manufacturing becomes astronomically expensive, and those additional costs are passed onto consumers, many of which are Missourians,” the Missouri attorney general said.

From a legal approach, the opposition to CARB’s regulation aims for the federal government to regulate what it sees as interstate commerce, as it is allowed via the U.S. constitution. At the same time, CARB

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REGIONAL

CAA Releases Update on Key California Bills 1

California Emission-Free Mandate Presents New Risks for Auto Insurers 8

California Power Grid Operator Says ‘Miscommunication’ Caused Unnecessary Blackouts 4

EchoPark Retail Hub Opening near Sacramento, CA 6

GM Self-Driving Unit Cruise Issues Software Fix on 80 Vehicles After Crash 10

Hyundai Motor America Announces $400,000 Donation to CHOC 10

NICB, California Highway Patrol to Discuss Combating Rising Crime 13

ProColor Collision Opens Newest Location in Glendora, CA 4

Redwood Materials Recycling Consumer Devices for Essential Battery Materials������� 20

Tesla Files to Build EV Batteries on New Production Lines at Fremont Factory 16

Tesla Powerwall Customers Continue to Help California’s Grid 1

COLUMNISTS

Anderson - Your Auto Body Shop Needs to Provide Consumers ‘Social Proof’ You’re Their Best Choice 12

Attanasio - Are Your Processes and People Strategically Aligned? 42

Attanasio - Auto Collision Instructor Makes Industry Employment a Priority 28

Phillips - EV Safety Precautions for Collision Repair Facilities 22

Phillips - Florida ‘Shop of the Future’ Focuses on OEM Certifications, Building a Culture & Customer Reviews 36

Yoswick - CIC Panel Looks at How Auto Body Shops Can Respond to Rising Costs of Paint and Materials 34

Yoswick - Insurers, Collision Repairers Discuss How to Improve Estimating, Claims Adjusting Process 50

NATIONAL

12 Can’t-Miss SEMA Show Features 46

2022 MSO Symposium Conference Agenda Released 59

2022 SEMA Show New Products Showcase Expands 63

AAPEX Ranked Among Top Trade Shows 44

Apple Already Has High Future Vehicle Consideration with Consumers 49

ASE Summer Testing Registration Ending 38

California Gas Vehicle Ban Faces Pushback from 17 States 1

California Officially Requires All New Cars Sold to Be Zero-Emission by 2035 1

California Regulators Request EV Charge Pause, Energy Conservation for Heat 26

CIECA Webinar Focuses on New Technologies in Paint and Coatings 52

Cost of Car Ownership in the U S Increases 5% 58

Crash Champions Acquires Treasure Valley Collision Center in Idaho 40

CREF Hosting PiN Master Challenge 16

Driven Brands Adds Auto Glass Fitters, Becomes 2nd Largest in U S Auto Glass Services 63

Enhance Your Career Through SEMA Show Education 41

Fisher Retiring After 50 Years in Industry 24

Kia Recalls 2023 Sportage Following 2 Fires 44

Maximum Equipment Named Preferred GFS Refinish Distributor for Southern California 40

Mitchell Transforms Estimating Platform to Meet the Needs of Electric Vehicles 62

Monterey Car Week Sees New Auction Record 30

New-Vehicle Prices Increase for 5th Straight Month, Set Record Again in August 45

NHRA Champion Antron Brown Warns Congress Motorsports at Risk 54

Not Enough Lithium to Satisfy U S EV Adoption Goals, Says Mining CEO 53

PPG Upholds EcoVadis Gold Rating 6

SEMA Scholarship Fund Winners Announced 52

Solera VP Joins CIECA Board 26

Used Car Market Finally Reaches Peak, as Prices Fall After 2 Record-Breaking Years of Inflation 60

INDEX OF ADVERTISERS

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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 ©2022 Adamantine Media LLC

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Hyundai Wholesale Parts Dealers 58

Kearny Mesa Subaru-Hyundai 30

KECO Body Repair Products 19

Kia Downtown Los Angeles 48

Kia Motors Wholesale Parts Dealers 56-57

Kia of Carson 50

AutoNation Honda Costa Mesa Wholesale Kia Ford-Lincoln-Mercury 28

FH Dailey Chevrolet 6

Ford Wholesale Parts Dealers 45

Future Nissan of Roseville 42

Galpin Motors 47

Garden Grove Kia 26

Glenn E Thomas Dodge-Chrysler-Jeep 23

GM Wholesale Parts Dealers 61

GUNIWHEEL 12

Honda-Acura Wholesale Parts Dealers 32-33

Kia of Irvine 26

Launch Tech USA 31

LKQ Corporation 29

Mazda Wholesale Parts Dealers 60

Mercedes-Benz Wholesale Parts Dealers 60

Michael Hohl Motor Company 48

MINI Wholesale Parts Dealers 52

MOPAR Wholesale Parts Dealers 37

Niello Audi 38

Nissan/Infiniti Wholesale Parts Dealers 55

Novato Chevrolet 6

NRD 4

Porsche Wholesale Parts Dealers 54

Porterville Ford 8

Roseville Kia 38

Sandberg Volvo Cars 44

Santa Monica Audi 35

SATA Dan-Am Company 7

Shoot Suit 21

Sorbothane Soft-Blow Mallet 20

Steck Manufacturing Company 34

Subaru Wholesale Parts Dealers 53

Sunmight USA 14-15

The Bay Area Automotive Group 43

TYC Genera Corporation 11

USI of North America 64

Volkswagen Pasadena 46

Volkswagen Wholesale Parts Dealers 59

Volvo Wholesale Parts Dealers 52

California Power Grid Operator Says ‘Miscommunication’ Caused Unnecessary Blackouts

by Madison Hirneisen, The Center Square

California’s power grid operator blamed miscommunication with utility operators for some residents experiencing “unnecessary” rolling blackouts amid the heat the evening of Sept. 6.

Officials from the Califor nia Independent System Operator (CAISO) confirmed Sept. 7 that de spite reaching record-level power demand, operators did not need to

operators] to make sure there is no miscommunication at all tonight.”

Shortly after 5 p.m. Sept. 6, CAISO issued a level three Energy Emergency Alert, which warns utili ty providers to prepare to trigger roll ing blackouts, though it does not of ficially order outages to begin. Some providers, including Palo Alto Utili ties and Alameda Municipal Power, went ahead with initiating some roll ing outages even though CAISO did not order rolling blackouts.

California Power Agency (NCPA) instructed them to begin “load shed ding operations.” As a result, about 1,400 customers were without power for an hour the evening before.

“In conjunction with NCPA working with the CAISO, we are working to clarify procedures to ensure unnecessary outages do not occur moving forward,” Alameda Municipal Power said in a statement.

NCPA is a conglomerate of 12 utility districts in northern Califor nia. Palo Alto, Healdsburg and Al ameda are member utilities. NCPA didn’t respond to a request for com ment Sept. 7.

order rolling blackouts the evening before. However, CAISO did con firm a handful of utility operators moved ahead with rolling outages anyway, saying “miscommunica tion” led some providers to believe outages had been requested.

“We did not need, nor was it our intention to signal the need for rotat ing outages,” President and CEO of CAISO Elliot Mainzer told report ers Sept. 7. “We’ll work with [utility

The City of Healdsburg also an nounced on Facebook it was direct ed by CAISO to begin rolling power outages but called them off shortly after 8 p.m. Sept. 6. Healdsburg city officials could not be immediately reached for comment regarding the outages.

Alameda Municipal Power re leased a statement Sept. 7 explain ing that shortly after CAISO’s level three power emergency, the Northern

The operators that issued rolling outages called them off shortly after it had begun. However, outages un related to the rolling blackouts left thousands of Californians without power Sept. 6 due to the extreme heat.

The state sent out an emergency notification to millions of Califor nians that evening, warning them to conserve energy immediately to avoid rolling blackouts. Gov. Gavin Newsom said at a news conference Sept. 7 the notifications were sent to

27 million Californians.

Mainzer said the notification, which Newsom ordered, resulted in a “significant amount of load reduc tion” of about 2,000 megawatts with in a half hour.

“That significant response from California consumers to the Wireless Emergency Alert allowed us to re store our operating reserves and took us back from the edge of broader grid disturbance,” Mainzer told reporters.

CAISO issued a Flex Alert for the eighth consecutive day Sept. 7, urging residents to conserve energy between 4 and 9 p.m. to reduce stress on the grid. Mainzer said Sept. 7’s peak demand forecast was projected to reach 51,243 megawatts.

High temperatures of more than 100 degrees were expected in many inland areas of the state through Sept. 9 and officials were still asking Californians to be prepared to con serve energy to reduce the chance of outages.

ProColor Collision on Aug. 25 an nounced the opening of its newest location in Glendora, CA, joining Mondofix, Inc.’s growing family of advanced collision repair facilities.

Located at 517 West Foothill Blvd., ProColor Collision Glendo ra is a full-service collision repair facility that has built a strong rep utation in the region for offering high-quality body repair services to motorists in the San Gabriel Val ley and beyond.

ProColor Collision Glendora is the fourth ProColor Collision location for Avalon Holdings USA and CEO Ashraf Jakvani, with other locations in La Puente, Chino and Yucca Valley. Avalon Holdings USA has been a part of the colli sion and insurance industry for more than 35 years.

ProColor Collision is an I-CAR Gold Class facility equipped with the latest cutting-edge equip ment the collision repair industry has to offer. The shop employs an elite group of repairers equipped with the necessary expertise, skills and equipment to repair the latest

vehicles properly and safely.

Avalon has invested in techno logical and equipment upgrades to enhance the customer experience and operations at ProColor Colli sion Glendora. Like its sister loca tions, ProColor Collision Glendora offers in-house calibration.

“Our goal is to fix it right the very first time with a focus on qual ity assurance,” said Qazi Asad, vice president of operations for ProColor Collision Glendora. “Our executive team collectively has more than 100 years of combined experience in the auto collision industry with a strong background serving the auto insur ance industry.”

“We are excited AJ and his team are adding a fourth location to the ProColor Collision family,” said Peter Polito, ProColor Collision’s general manager for the Western U.S. “It is clear they see, and have experienced firsthand, the benefits of joining one of the largest, fastest and franchisee-focused aftermarket networks in the world.”

Source: ProColor Collision

“We did not need, nor was it our intention to signal the need for rotating outages,” — Elliot Mainzer

PPG on Aug. 29 announced it has maintained a Gold Rating in corporate social responsibility from EcoVadis, a trusted busi ness sustainability ratings plat form.

PPG ranked higher than 92% of evaluated companies. The company earned high scores for its environmental, ethics and sus tainable procurement practices.

PPG recently expanded as sessment of its global supply base using EcoVadis’ four sus tainability categories. By the end of 2021, more than 67% of invit ed PPG suppliers had responded to the assessment, many of which performed above the EcoVadis average.

EcoVadis experts evaluate company performance on 21 fac tors grouped into four categories: environment, labor and human rights, ethics, and sustainable procurement. Each company is assessed in these areas based on size, location and industry.

Source: PPG

Sonic Automotive, Inc., one of the nation’s largest automotive retailers, on Sept. 7 announced the continued expansion of the EchoPark Automo tive brand with the opening of its newest Retail Hub in Roseville near Sacramento, CA.

EchoPark Sacramento is the brand’s second location in Califor nia. To date, EchoPark has 41 retail

promise of Every Car, Happy Own er,” said David Smith, CEO of Son ic Automotive. “Our EchoPark retail hubs and delivery centers allow us to serve the growing number of con sumers who want to start their auto motive shopping experience online, but complete their purchase in-per son at a dealership. The brand’s website EchoPark.com allows for

has generated more than 50,000 five-star ratings and reviews, with EchoPark earning the highest con sumer review ratings and receiving the highest in consumer sentiment within the categories of pricing and customer service and sales amongst all major competitors within the seg ment.

EchoPark Sacramento is lo cated at 180 N. Sunrise Ave., Ros eville, CA. It is open 9 a.m.-9 p.m. Monday to Saturday. The store can be reached at (916) 999-9044 or at www.echopark.com.

Walk-ins and appointments are welcome. The Sacramento location includes an Imagine Bar for guests to research their next ride, a cafe with coffee and snacks, and a Small Blocks fun spot where kids can play.

hubs and delivery centers across 21 states, and is continuing its expan sion toward a nationwide distribu tion network expected to reach 90% of the U.S. population by 2025.

“We look forward to bringing the best quality pre-owned vehicles and our world class guest experience to residents of the Sacramento area by delivering the EchoPark brand

any car to be sold to anyone, any where, while expansion of new locations allows EchoPark to be a trusted source for consumers to take delivery close to home.”

Regardless of location, Echo Park’s success has come from its award-winning guest experience that is grounded in the mission of creating happy owners. This effort

Source: Sonic Automotive, Inc.

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Green is more than just a color to us.

The green SATAjet X 5500 FUTURE is not only a reference to nature, it is also a symbol of harmony and hope, especially for the future! We are striving for a sustainable and connected future that makes the most out of the potentials of the digital transformation. The globe-shaped circuits on the spray gun represent the technology which is connecting people and thus enables the globalized world of the future. The radiant green color with the black components not only looks harmonious, it stands for aligning our actions with sustainability and the preservation of nature.

As a manufacturing company, sustainable growth is of great importance to us and an integral part of our daily activities. This includes the consistent conservation of resources and avoidance of waste. As an example, we produce part of our electricity with our own solar power and have reduced our waste volume by around 20% in the last five years.

California Emission-Free Mandate Presents New Risks for Auto Insurers

by Jim Sams, Claims Journal

A state mandate in California that will require all cars sold after 2035 to be emission free presents a formi dable challenge for auto insurers to properly price and fully understand the risks presented by electric vehi cles.

The rule adopted by the Califor nia Air Resources Board comes as average collision repair wait times are lengthening and repair costs are rising, said Susanna Gotsch, an analyst with CCC Intelligent Solu tions. CCC data shows electric vehi cle repairs generally take longer and are more expensive.

Electric vehicles also present new kinds of risks. The propensi ty of defective lithium batteries to self-ignite is well known, which is why recall notices for electric cars often come with instructions to park the vehicle outside until the defect is fixed.

Consumers may be less aware that their vehicles can be hacked while connected to public charging stations, said Sandee Perfetto, se nior director, personal lines, prod ucts underwriting solutions for Ver isk. She said there is even potential for “mass hacking events” that could cause more than $10 billion in loss es.

California is already well ahead the rest of the U.S. in electric vehi cle adoption. Electric vehicles made up 15.1% of all passenger vehicles sold in the state during the first half of 2022, according to the California Auto Dealers Association, compared to 5% for the nation as a whole.

Gotsch, senior director of in sight and analytics for CCC, said the California directive will force a more rapid adoption of the tech nology than market forces alone might provide. After the California Air Resources Board announced the zero-emission mandate on Aug. 24, state leaders in Washington state and Massachusetts announced they will also eliminate sales of all gaso line-powered cars by that date.

Gotsch said the challenge for insurers is that electric cars up un til recently have represented only a tiny fraction of private passenger au tomobile sales, meaning loss history

data is sparse.

CCC reported in July the data collected so far shows the average vehicle repair cost of $4,041 for non-luxury electric cars was 26.6% greater than for gasoline-powered cars. Repair times for electric vehi cles averaged 31 days vs. 28 days for gasoline-powered.

Gostch said a mandate for a state the size of California will re

which makes them vulnerable to hackers.

Earlier this year, researchers with the University of Oxford in the UK and Armasuisse, a government agency in Switzerland, reported the combined charging systems used in Europe and the U.S. can easily be at tacked with off-the-shelf radio hard ware. The researchers said hackers can “stealthily” deactivate the char gers by sending a signal from sever al yards away.

perform maintenance. But he said many of the vendors use poor secu rity practices, which allows hackers to exploit interfaces, the website re ported.

quire automakers to adopt by of fering a wider range of electric ve hicles at various price points. Until now, she said, electric vehicles have trended toward the luxury and high-performance market.

Gotsch said the transformation from the internal combustion engine to battery-electric power is unprec edented in automotive history. She said the closest analogy that comes to mind is the evolution from uni body construction to body-on-frame during the 1980s and 1990s. Gotsch said transition was gradual and driv en by market forces, giving collision repair shops ample time to adapt.

Insurers have no choice but to adapt. “If you’re going to under write cars in California, this is the new norm.”

The government-mandated transition to electric power might be jolting. Gotsch said the workforce for the collision-repair industry, much like the insurance industry, is aging. Repair shops are finding it more difficult to recruit new workers to the field. She said collision repair shop owners have told her electric vehicles are not inherently more dif ficult to repair, but extensive train ing is required.

“You’re talking about a whole new subset of vehicles that will have a new set of demands,” she said.

And a whole new set of risks.

Verisk’s Perfetto said electric vehicles become a part of the Inter net of Things ecosystem when they connect to public charging stations,

Even worse, hackers in the UK hacked into a popular electric vehi cle charging network, a vulnerabili ty that potentially exposed the per sonal data of customers who used its equipment, according to Which?, an online British news site.

ARSTechnica, a website that tracks technology, reported on the potential for mischief in a July re port. Joe Marshall, a security re searcher for Cisco Talus, said ven dors who operate electric charging stations communicate over the internet to process payments and

Perfetto said some electric vehicles—as well as a few gaso line-powered models—have another odd glitch that can make car theft more likely in some instances. They use a fob instead of a key for securi ty. In many models, the mirrors fold back into the car when the driver leaves the vehicle with the fob on his or her person.

But when drivers leave the fob in the car, the mirrors remain in the outward position. She said savvy car thieves have learned how to recog nize cars with the fobs left inside.

“This changes the risk level for risk,” she said.

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Hyundai Motor America’s corporate social responsibility initiative, Hyun dai Hope, announced a $400,000 donation to Children’s Hospital of Orange County (CHOC) to support its renowned pediatric healthcare services and various mental health programs at the hospital.

A ceremonial check was pre sented to CHOC at the Festival of Children® Opening Night at South Coast Plaza in Costa Mesa, CA.

“We launched Hyundai Hope with the goal of supporting the health and safety of children and fostering positive growth in communities,” said Randy Parker, CEO, Hyundai Motor America. “Hyundai is proud to continue its longstanding support of CHOC, as they share in this mis sion of supporting the physical and mental health of our community.”

Of the total donation, $150,000 will support the care, services, edu cation and research CHOC provides the community. This gift helps to en sure every child in need of medical care receives it regardless of their family’s ability to pay. No child is ever turned away.

“Having Hyundai as a partner

is vital in CHOC’s pursuit of provid ing world class medical care for the children in our region,” said Doug Corbin, chief development officer, CHOC, and president, CHOC Foun dation. “Hyundai Motor America understands and is firmly committed to making CHOC the leading desti nation for pediatric health care and

General Motors’ self-driving unit Cruise said it recalled 80 vehicles by updating software after a crash in June that left two injured.

In June, Cruise became the first company in San Francisco to receive a permit to offer driverless rides in a small portion of the city. However, one of its vehicles was involved in an accident the same month, which ultimately led to the NHTSA recalling the software.

The agency said the Cruise software could “indirectly pre dict” an oncoming vehicle’s path, noting the software could “in cer tain circumstances when making an unprotected left, cause the (au tonomous driving system) to in correctly predict another vehicle’s path or be insufficiently reactive to the sudden path change of a road user.”

Cruise issued the software up date July 6.

Cruise said, after the June 3 crash, it removed its vehicles’ abil ity to make unprotected left turns.

research. Their generosity provides families with hope. Hyundai is truly a defender of childhood.”

The remaining $250,000 of Hyundai’s latest donation will ben efit two pediatric mental health pro grams at CHOC to underscore its commitment to physical and mental health initiatives.

Source: Hyundai Motor America Donation to CHOC

The first is mental health sup port in the CHOC Emergency De

partment (ED), which is covered by psychologists and resource special ists to address mental health crises. The donation will provide more re sources to support children and teens who spend many hours in the ED for assessment and a post-discharge plan or waiting for appropriate placement in an inpatient program.

The second is mental health support of children at the Thompson Autism Center, a multidisciplinary clinic that provides diagnostic eval uations, behavioral consultations, therapy and medical management for children and families affected by Autism Spectrum Disorder. The donation will aid in continuing to provide a full range of mental health and diagnostic services at the cen ter, specifically those provided by psychologists who have training and experience in autism and other neu rodevelopmental issues.

“We are thrilled with this tru ly generous gift from our friends at Hyundai,” said Dr. Heather Huszti, chief mental health offi cer, CHOC. “The gift will provide CHOC with vital resources to sup port children in need or mental health care, services and support. Every child deserves to be happy, and Hyundai’s gift will allow us to expand care, providing hope to families in need.”

In addition, Hyundai Motor America also gifted a 2022 Hyundai Palisade to CHOC to help transport families around CHOC’s Orange campus and to deliver medications to immune-compromised patients in the community. This vehicle pro vides support to a vulnerable patient community in need of access to life-saving medications.

It also reduced the area of oper ation, which was already small, and avoids downtown traffic and routes. The fleet vehicles were limited to a top speed of 30 MPH and were only allowed to operate between 10 p.m. and 6 a.m.

“Cruise AVs are even better equipped to prevent this singular, exceptional event,” the company said, according to Reuters. The company added the recall “does not impact or change our current on-road operations.”

The NHTSA opened a special investigation into the Cruise acci dent in August.

Cruise said its vehicles will hard brake while performing un protected left turns in order to avoid severe front-end collisions, but only in extremely seldom in stances. Additionally, the vehicle involved in the accident “had to decide between two different risk scenarios and chose the one with the least potential for a serious collision at the time, before the on coming vehicle’s sudden change of direction.”

by Joey Klender, Teslarati

When I was in Chicago recently, I had an opportunity to go to lunch with Nick Schoolcraft and Tina Biancalana from Phoenix Solutions Group, which offers marketing and strategic solutions for collision re pair businesses.

One of the things they shared with me was the term “social proof.” Here’s what that is, and what it should mean to you and your busi ness.

First, a definition. One source says “social proof” is a term coined back in 1984 by author Robert Cialdini in his book, “Influence.”

“This phenomenon is also called

saying I in no way am claiming to be an expert on “social proof.” But as I did some research into it, I realized it fits with one of my key messages

day have a “trust but verify” men tality. So just because an insurance company, automaker or dealership says, “This is a body shop we rec ommend,” that consumer is still going to seek out “so cial proof,” evidence that you can be trusted and that the referral to you is a good one.

So what can be used as “social proof”? Certainly, if a customer can see you’re engaged with your custom ers through social media, that offers them some proof you’re creating customers

tions. Is it easy for customers to find evidence of your training and cer tifications with clear explanations of what that means to them? Just saying your shop has earned I-CAR Gold Class Professional status isn’t enough: They need to know how and why that sets you apart.

Are you providing them links to where they can see the OEMs real ly are saying you are qualified and certified to repair their brand of ve hicle?

“Social proof” also includes customer-generated content, like Google or Carwise reviews, that help potential customers follow the “wisdom of the crowd.” When I had my shops, I kept a list of Audi, BMW and Porsche owners whose vehicles

mation if someone wanted to speak with a “reference.” A lot of that type

Mike

of social proof can now be done on line through reviews and car club blogs, etc.

If you’re not convinced “social proof” is important in our industry, spend a couple minutes visiting a few websites. State Farm’s shop locator, for example, now includes customer reviews of the shops list ed. Nissan’s certified shop locator now includes customer reviews of certified shops. Something I haven’t heard talked about much is CCC’s consumer-facing website, Carwise, now allows consumers to search for shops based on OEM certifica tions—more “social proof.”

I know many shops are so busy they may not be thinking as much about their marketing right now as they should. (Check out my column on “Pigs get fat and hogs get slaugh tered.”) But you need to market when you’re busy so you stay busy even when other shops are not.

And as an industry, we need to understand the way customers think today. They are out there looking for evidence you can be trusted. Just saying it isn’t enough. You need to provide them with “social proof.”

NICB, Discuss Rising Crime

As vehicle and catalytic converter thefts and carjackings continue to plague many U.S. cities, including cities across California, the Nation al Insurance Crime Bureau (NICB), the insurance industry’s association dedicated to predicting, preventing and prosecuting insurance crime, is strengthening its longstanding rela tionship with the California High way Patrol (CHP).

Goodbrand and RATT/ISU CHP Commander Gil Campa on Sept. 14 in San Diego to discuss the contin ued partnership between the two or ganizations and ways to strengthen the relationship as crimes continues to increase across the nation.

“NICB has enjoyed a strong partnership with the California Highway Patrol for many years,” said Glawe. “We value our rela

fornia.”

According to a recent NICB re port, the U.S. is seeing the highest vehicle theft numbers since 2008, including a staggering increase in catalytic converter thefts. NICB and CHP will continue to work together on crime prevention and finding new ways to raise awareness and investi gate and deter crime in California.

If you believe you have been a victim of fraud, call the NICB at 1-800-TEL-NICB. For addition al information, visit NICB’s web site, WWW.NICB.org.

California currently has the third highest rate of vehicle thefts per 100,000 people, and crime is no stranger to California residents.

NICB and CHP are focusing on ways to combat these crimes.

NICB President and CEO Da vid Glawe, Senior Vice President and COO Tim Slater and other NICB leadership will meet with CHP Border Division Chief Scott Parker, CHP Assistant Chief Don

tionship and are looking forward to identifying new ways to collaborate to help deter crime in the Golden State.”

“Vehicle theft remains a high priority for the California Highway Patrol,” said CHP Commissioner Amanda Ray. “The National Insur ance Crime Bureau has been a valu able partner as we strive to provide the highest level of safety, service and security to the people of Cali

Anyone with information concern ing insurance fraud or vehicle theft can report it anonymously by calling toll-free 800-TEL-NICB (800-8356422) or submitting a form on the website.

Source: NICB

“We value our relationship and are looking forward to identifying new ways to collaborate to help deter crime in the Golden State.” — David Glawe

Don’t Miss the Weekly Industry NEWS Your Shop Needs. Up Free Today!

by Joey Klender, Teslarati

Tesla has filed to build a new battery manufacturing equipment line at the Fremont Factory in Northern Cali fornia.

The factory, which Tesla pur chased in 2010, is the only in the company’s lineup to produce all four models. It has not been known as a battery cell or pack manufacturing plant, as the company’s Gigafactory in Sparks, NV, produces those EV components. However, the filings indicate Tesla may be looking to slightly expand its cell manufactur ing efforts with new production lines at Fremont.

The permit was filed and signed by Tesla on Aug. 30. The project is valued at $1.5 million, according to documents seen by Teslarati.

Additionally, another applica tion reveals a $1.3 million project that includes the installation of a new maintenance office, a storage area, production cells with equipment for hood, fender and trunk lids, and of fline cell manufacturing equipment. This project is listed to be on the first floor of the assembly building.

The Fremont Factory has been one of Tesla’s more spacial ly-confined facilities. Earlier this year, during a visit from Morgan Stanley analysts, including Adam Jonas, the firm noted the Fremont Factory was incredibly tight in terms of storage capacity and room in gen eral, despite running at a capacity of 20% above what has been considered its maximum.

“The plant was never designed to produce 450K units (at its peak produced ~300K units before Tesla took it over from Toyota), which was immediately apparent at the tour, ” Jonas wrote describing the visit. “Tesla does not shy away from the fact the plant is inefficiently designed with four assembly buildings, one of which is a tent that cars are assem bled in,” referring to GA 4.5, which was made permanent last year.

Just two weeks prior to Mor gan Stanley’s visit to Fremont, CEO Elon Musk said Tesla was consider

Pushback

operates under the assumption the federal government is limited in how it can affect state-level regulations.

CARB has long faced legal challenges from other states and corporations alike. GM and Toyota have notably sued CARB for imposing emissions regulations; however, both have since rescinded their suit.

With such a big case, this suit could end up in not only federal court but the Supreme Court to finally legally define if states may regulate emissions.

turing process altogether.

Tesla has held battery supply deals with Panasonic, CATL and LG Chem, but has also started building its own cells in-house. In 2020, Tesla unveiled its 4680 battery cell, which has been prototype-tested by Panaso nic. Tesla has been building the cell at the Kato Road facility just a few blocks away from Fremont’s front doors. However, the automaker has not scaled this cell to mass produc tion as of yet, and Tesla could always use more battery cells.

With the 4680 cell not quite reaching mass production volumes yet, an order log that grows with what seems to be every minute, and a production volume that just simply has not caught up to Tesla’s demand, it would make sense to expand inhouse battery manufacturing efforts as supplementary support.

Over the past month or so, Tes la has filed to make many signifi cant changes at the Fremont Facto

of new foundations and manufactur ing equipment. Even things as simple as light poles are being repositioned to make way for potential new man ufacturing buildings.

Tesla has also started relocating Model S and X production equip ment to other portions of the factory. “GASX,” which we can assume is General Assembly Model S and X, has had a hoist relocated, according to filings.

Tesla has also filed to install production tools and other associat ed Model S and Model X manufac turing utilities in the factory. This does not necessarily imply produc tion lines for the two vehicles will be expanding, especially considering the vehicles make up an extremely small portion of Tesla’s overall sales. However, these manufacturing lines may be shifting to other locations at Fremont to make way for the perhaps imminent installation of cell manu facturing lines there. on New Production Lines at Fremont

verter must ensure it is engraved or otherwise permanently marked with VIN. The repair shop may charge a reasonable fee for permanently mark ing the converter. A smog station must visually inspect and notify cus tomer whether or not converter en graved with VIN. The smog station needs only perform a visually inspec tion without any responsibility of re moving any part, if converter not vis ible. The bill also makes it a crime to remove or alter a VIN that has been added to the catalytic converter.

Status: Died.

SB 986 Requires core recyclers who accept converters to maintain specified written records from seller with sufficient particularity, includ ing markings to match any convert er in recyclers inventory to written agreement and prohibits a dealer from selling a vehicle unless convert er has been engraved, etched or per manently marked with VIN.

Status: Died.

SB 1087 Requires core recyclers who accept converters from seller to obtain and maintain written re cords, including name, date, number of converters and amount of money and specifically prohibits any person from purchasing used converter oth er than specified business which in cludes an auto repair dealer.

Status: Governor’s desk.

CAA has concerns with the follow ing employment bills:

AB 1949 Requires employers with five or more employees to provide employees up to five unpaid days of employee bereavement leave upon the death of a family member.

Status: Governor’s desk

AB 1993 Mandates employers to require each employee to show proof that employee has been vaccinated against COVID-19.

Status: Died

AB 2243 Requires Cal-OSHA to submit a proposal to the Heath Stan dards Board to revise the heat illness standard.

Status: Governor’s desk.

AB 2932 Requires all employers to pay overtime to employees work ing more than 32 hours a week.

Status: Died.

SB 1044 Prohibits an employee, in the event of emergency, from threat ening adverse action against an em ployee for refusing to report to work because employee has reasonable be lief that workplace is unsafe.

Status: Governor’s desk.

SB 1162 Requires employers of 100 or more workers to submit an nual pay data reports by company name. Encourages litigation against employers based on the unreliable data collected by the state. Under mines employers’ ability to hire, imposes burdensome administrative and record keeping, and subjects em ployers to potential private right of action and penalties under PAGA.

Status: Governor’s desk.

CAA supports the following em ployer tax credits bills: SB 1349 Allows for $1,000 state tax credit for each employee hired by employer.

Status: Died.

AB 1864 Allows for a tax credit against taxes to qualified small busi ness employers in an unspecified amount for each newly hired employ ee, as specified.

Status: Died.

CAA supports the following COVID-19 relief for employers bill: AB 152 This bill establishes COVID-19 Relief grant program to assist qualified business that are in curring costs for COVID-19 supple mental paid sick leave.

Status: Governor’s desk

CAA supports the following career tech bills:

AB 2058 This bill would increase career tech funding from $300 mil lion to $450 million annually.

Status: Died.

SB 1351 Establishes the California Youth Apprenticeship Program for purpose of awarding grant funds.

Status: Died.

CAA is watching the following tire

AN AXALTA COATING SYSTEMS BRAND

bill:

SB 1181 This bill requires the De partment of Resources Recycling and Recovery to strengthen the California tire tracking system to quantify the number of used tires flowing from and through California into Mexico.

Status: Governor’s desk.

CAA has concerns about the fol lowing engine oil and transmission fluid bill:

AB 2968 The bill would revise en gine oil specifications and prohibit transmission fluid from being sold without clearly disclosing each duty type classification.

Status: Died.

CAA is watching the following battery fee bill:

AB 1 This bill makes technical corrections to the current notice re quirement to reflect the increase of the battery fees.

Status: Died.

CAA has concerns about the following hydrofluorocarbon gas es bill:

SB 1206 This bill prohibits a person

from selling or distributing hydroflu orocarbons gases (which are used in refrigerants, air conditioning, etc.) that exceed global warming limits.

Status: Governor’s desk.

CAA is watching the following zero emissions aftermarket conversions bill:

AB 2350 Requires CARB to estab lish the Zero Emissions Aftermarket Conversion Project to provide appli cant with a rebate for the aftermarket conversion of a motor vehicle into zero emissions vehicle.

Status: Died.

CAA has concerns with the follow ing vehicle exhaust bill: AB 2496 As introduced, this bill would have required smog stations to include a sound level test that vehicles would fail smog if the exhaust sys tem emits a sound level of more than 95dBA. The bill has been amend ed to delete the smog check station requirements and instead require a court, beginning Jan. 1, 2027, to no tify DMV to place a registration hold on a vehicle found to have a noncom pliant modified muffler until the court

has been presented with a certificate of compliance from a referee autho rized to test the vehicle

Status: Governor’s desk.

CAA supports the following vehi cle insurance bill: SB 1107 This bill, among other things, would increase the amount of liability insurance coverage an owner of vehicle is required to maintain from the current $15,000 for single injury or death, $30,000 for injury or death of more than one person and $5,000 for property ($15K,$30K,$5K) to ($30K, $60K, $15K).

Status: Governor’s desk.

Source: CAA

by Maria Merano, Teslarati

Redwood Materials launched a Con sumer Recycling Program to reduce the world’s reliance on newly mined materials. “If properly recycled, your old and broken devices can decrease global reliance on mining and lower the cost and environmental impact of products,” explained Redwood Ma terials.

The company asks people to recycle consumer devices in their homes, like electric toothbrushes, electric shavers, drills, robot vacu ums and rechargeable TV remotes, among other everyday household items. Redwood specifically said it accepts any rechargeable device with a lithium-ion battery.

The company said it can recov er more than 95% of materials, like nickel, cobalt, copper, aluminum, lithium and graphite, from a lithi um-ion battery. The materials re covered would return directly to the supply chain to make batteries for electric vehicles and energy storage products. Anyone interested in join ing the program can send recharge

able devices they don’t use straight to Redwood at the following address: Redwood Materials Attn: Consumer Program 2401 Conestoga Dr. Carson City, NV 89706

People should properly package their devices before sending them to Redwood. Participants sending devices with batteries should use standard packaging like a strong cardboard box with inner packing materials. The package should not exceed 66 pounds.

For loose lithium-ion batteries, Redwood advised people to follow DOT guidelines.

Redwood is willing to work with businesses and large organiza tions that want to recycle and partici pate in the program. They can contact business@redwoodmaterials.com.

Redwood Materials does not offer compensation for the Consum er Recycling Program. Currently, the program seems to concentrate within the U.S. However, Redwood plans to build a plant in Europe and may expand the recycling program as well.

All a customer has to do is opt into the beta testing program, and the Powerwall does the rest. It will determine if the grid needs energy and if so, it will send energy to the grid, but without depleting the Pow erwall customer’s own energy.

Recently, Tesla VPP beta testers pro vided the grid with more than 20 MW of energy.

Tesla CEO Elon Musk took to Twitter to invite people to order a Tesla Powerwall battery for black out protection. Currently, custom ers can’t order a Powerwall without ordering a full solar system but this could change by the end of the year.

Musk said this was due to the supply being too low, but ordering a Powerwall by itself should be possi ble at the end of the year. Powerwall

Tech Talk

with Stacey Phillips

EV Safety Precautions for Collision Repair Facilities

When body shop technicians ask Dirk Fuchs about the risks involved while working on electric vehicles (EVs), I-CAR’s director of technical program and services says the dan ger is “very real.”

To help prepare and educate shops and their teams to repair EVs, Fuchs recently shared information

electrical power in the high-voltage system and the current, which runs the flow of electricity through a con tactor.

“The current kills you, not the volt,” he explained. “Therefore, you need to know what kind of current there is.”

The following graph outlines

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.

ratory arrest can occur, which has deadly consequences.

Although EV technology can be very dangerous, Fuchs said that auto manufacturers have “many, many safety systems in place.” He stressed the importance of technicians being aware of the risks.

When an EV arrives at a col lision repair facility via tow truck/ flatbed, Fuchs reminds technicians

one time without pressing the brake pedal. The light on the dashboard will come on, signifying you are in axillary mode and the battery con tactors are open. Fuchs said no high voltage can go into the system using this method, which is important to know when connecting a diagnostic tool and pre-scanning the vehicle.

“Pre- and post-scanning EVs is really important to know the system configuration,” he said. “If there is a problem, we want it contained in the battery where the risk is.”

He also talked to shops about using a factory scanner to see the fault codes. By viewing the live data, technicians can check the bat tery/cell balancing.

“It’s important to know the dif ference between the minimum and maximum voltage between the indi vidual battery cells,” he said.

dustry stay safe,” said Fuchs.

Before removing the battery, he encouraged technicians to always follow the described pre-scan proce dure and check the battery tempera ture, as well as the live data and/or use a heat gun.

In a case where there is a prob lem with the battery, Fuchs highly recommended not bringing the ve

hicle into the shop until the vehicle can be monitored and the battery is removed.

Fuchs also advised shops to create a designated safe zone where EVs can be repaired apart from ICE vehicles in a very clean environ ment. “If someone grinds on a quar ter panel or does a repair that is full

High-Voltage disconnecting procedure tips:

* Remove the ignition key and lock it in the lockbox so only the technician working on the vehicle has access

* When the ignition is off, discon nect the 12-volt battery (plus and minus cable) and then remove the high-voltage disconnect with prop er personal protective equipment (PPE)

is to let the capacitors completely drain because they can store energy like a battery and contain the same voltage, which is dangerous�

* Use PPE to remove the connec tions closest to the high-voltage bat tery and use a two-pole voltmeter or multimeter to verify zero potential�

to take precautions to stay safe. “You’re working on the unknown and that’s what can kill someone,” he said.

Fuchs recommended never double-clicking the start button of an EV. Instead, he advised pushing it

The difference between two cells can lead to a higher internal re sistance, which creates higher tem peratures and can “end up in a fire.”

New OEM and aftermarket di agnostic tools are being introduced to the market to read the live data.

“It’s a great way to help the in

* Place the removed battery discon nect in the lockbox�

* Ensure high voltage is isolated in the battery and perform a Zero [elec trical] potential test after the vehicle manufacturer’s recommended wait time The reason for the wait time

* Always take the following three measures on both the battery and the system side to check if the high-voltage battery is isolated and the system is safe: high voltage plus against high voltage minus, high voltage plus against ground, and high voltage minus against ground

The EV Lab at I-CAR’s Chicago Technical Center in Vernon Hills, IL

is an allowance for a small portion of vehicle sales to be plug-in hybrid electric vehicles, which can run on gas. These vehicles are “designed to prioritize their electric function and use their gas engines in limited cir cumstances,” according to CARB.

Officials acknowledged Aug. 25 that, despite the new regulations, combustion engine vehicles will likely remain on California roads for years after 2035.

Electric vehicles tend to be more expensive than their com bustion engine counterparts, rais ing concerns among consumers regarding affordability. In October 2020, the average transaction price for a new gas-powered vehicle was $46,000, while the average EV av eraged above $56,000, according to Kelley Blue Book. Costs have inflated since 2020 due to a world wide microchip shortage and record inflation.

The new rules also include in centives to expand electric vehicle access to more Californians, par ticularly in low-income and disad vantaged communities. The board’s resolution directs officials to con tinue working with manufacturers and environmental justice advocates to develop strategies and incentives to expand zero-emission vehicle access to low-income communities starting in 2025.

The rules also set minimum du

rability standards for zero-emission vehicles, which aim to ensure vehi cles can maintain 70% of their elec tric range for 10 years in the first few years after the regulation takes effect in 2026. Come 2030, that percentage will rise to 80% of electric range.

Officials emphasized Aug. 25 that the new regulations will help re duce greenhouse gas emissions and address climate change in the Gold en State.

“A clean transportation sector is essential to protect the health of both our communities and our climate,” CARB Chair Liane M. Randolph said Aug. 25. “More stringent mo bile source emission controls are necessary to help California achieve federal air quality standards and the state’s greenhouse gas target that will protect public health and miti gate the effects of climate change.”

The regulations are expected to result in additional cumulative costs of $29.9 billion to manufacturers be tween 2026 and 2040, representing $2 billion on average per year, ac cording to an analysis from CARB. The board estimates that the regula tions will result in the total statewide cost of ownership net cost savings of $92.9 billion between 2026 and 2040 for businesses, fleets and in dividuals who purchase these vehi cles.

“Much of the [total cost of ownership] savings stem from re duced gasoline consumption, with gas prices conservatively assumed to remain relatively constant around $4 per gallon, with even greater sav

ings if prices remain at their current elevated levels or increase further,” CARB’s summary stated.

The adopted regulations imple ment Gov. Gavin Newsom’s pre vious executive order that required new car sales to be zero-emission by 2035. Newsom called the CARB’s new regulations “groundbreaking” and “world-leading” in a statement Aug. 25.

The board’s regulations gar nered praise from vehicle manufac turers, including Ford. In a state ment, Ford’s Chief Sustainability Officer Bob Holycross called the regulations a “landmark standard that will define clean transportation and set an example for the United States.”

“At Ford, combating climate change is a strategic priority, and we’re proud of our partnership with California for stronger vehicle emis sions standards, forged during a time when climate action was under at tack,” Holycross said.

The Advanced Energy Econo my, a national business group, also praised the board’s decision on Aug. 25, saying the decision “charts the

path toward a zero-emissions trans portation future for the whole coun try.”

“The California program will have a major ripple effect nation ally, opening the door for states to increase EV adoption, encourage economic growth and reduce emis sions,” AEE Transportation Policy Director Ryan Gallentine said in a statement. “We call on other states to take this opportunity to drive the growth of electric transportation na tionwide.”

California has historically set the standard for more than a doz en of other states when it comes to vehicle emission standards, and 16 other states could follow Califor nia’s lead with these new standards, according to the New York Times.

CARB staff said Aug. 25 the plan to transition away from gas-powered vehicles is “well-sup ported” by the recently signed state budget, which includes $2.9 billion this year and $3.9 billion over three years to invest in the state’s electric vehicle infrastructure and provide incentives for in-state manufactur ing.

Longtime industry veteran, former CARSTAR franchisee and, most recently, Driven Brands collision president Dean Fisher announced his retirement for the end of the year.

Fisher has always had an in terest in cars and owned multiple automotive-related companies for more than 35 years. In 1990, Fisher took a leap and brought his independent repair center into the CARSTAR family as a franchisee. Through his time with CARSTAR, Fisher had a commitment to oper

ational excellence and customer service, propelling him to earn the CARSTAR Franchisee of the Year Award in 2012. After passing the business along to his son, Fisher joined the CARSTAR corporate team, quickly rising through the organization and becoming an in spirational leader to many at Driv en Brands.

Chris Dawson has been pro moted to president of paint and collision for Driven Brands.

Source: Driven Brands

California Conservation for Heat

by Madison Hirneisen, The Center Square

With extreme heat expected to hit California and the West through La bor Day Weekend, California grid operators are calling on residents to voluntarily conserve electricity by avoiding the use of large electron ics and even stop charging electric vehicles.

The California Independent System Operator issued a statewide Flex Alert on Aug. 31, calling on residents to voluntarily conserve energy between 4 p.m. to 9 p.m. to reduce stress on the electrical grid.

The announcement comes days after California air regulators announced the state will phase out the sale of gas-powered vehicles by 2035, mandating all new cars sold in the state by 2035 must be zero-emis sion vehicles or hybrids.

In a notice posted Aug. 31, Cal ISO urged residents to set thermo stats at 78 degrees, avoid the use of larger electronics, turn off unneces sary lights and avoid charging elec tric vehicles.

“Reducing energy use during a Flex Alert can help stabilize the

power grid during tight supply con ditions and prevent further emer gency measures, including rotating power outages,” the announcement said.

The alert is the first of what could be several Flex Alerts issued throughout the holiday weekend. Cal ISO issued a warning Aug. 30 it could issue a “series of emergency notifications” preparing the public for potential energy shortages if grid and weather conditions worsen.

“The power grid operator ex pects to call on Californians for vol untary energy conservation via Flex Alerts over the long weekend,” the announcement said.

A heat wave is expected to hit the state over the holiday week end, with temperatures expected to be 10-20 degrees above normal in Northern California and 10-18 de

grees higher in Southern California, Cal ISO said.

Cal ISO’s recommendation to unplug electric vehicles was met with criticism from energy groups like Power the Future, which drew the connection between the EV mandate and the Flex Alert.

“When it comes to good ener gy policy, California’s leaders are unplugged from reality,” Daniel Turner, founder and executive di rector for Power the Future, said in a statement. “Temperatures are soar ing, and residents are being asked to power down their everyday ap pliances and air conditioners over a long holiday weekend.”

To prepare for a Flex Alert, the grid operator recommends pre-cool ing the home to 72 degrees and us ing major appliances like dishwash ers before 4 p.m.

Solera Joins Board

CIECA announced Aug. 29 that Bill Brower, vice president of in dustry relations for Solera, joined CIECA’s Board of Trustees, effec tive immediately.

Brower is a claims leader across the insurance property and casualty (P&C) claims industry who has more than 35 years of experience leading claims teams with top brand companies, includ ing Solera, Nationwide Insurance, Liberty Mutual Insurance and LexisNexis Risk Solutions.

Additionally, Brower re cently joined the newly formed CEICA AI Committee and has a wealth of prior board experi ence. Previously, he served as a member and past chairman on the I-CAR Board, a former member of the Certified Automotive Parts Association (CAPA) Board, past chairman of Simplicity Car Care Advisory Board (a Canada-based MSO), and a former member of North Fulton Community Char ities Board of Directors in Ros well, GA.

Source: CIECA

Auto Collision Instructor Makes Industry Employment a Priority

by Ed Attanasio

Abe Sells is a collision repair in structor at Tidewater Community College in Chesapeake, VA, teach ing in the dual enrollment program at the Chesapeake Career Center.

His students and industry part ners—vendors and local auto body shops—know Sells is in it to win it when it comes to making great things happen for everyone he en counters.

It’s a lot more than just a job for Sells.

“I like what I am doing and I guess it shows,” Sells said. “This industry has been good to me, and I want to help fill the void in the collision industry by creating career opportunity for them. When you see a young person embracing what I am teaching it is a great thing, and I want to tap into that as much as I can.”

Sells, 51, is constantly busy and enjoys the variety. When he isn’t teaching, he runs Dent Chasers, where he performs paintless dent repair (PDR) for his clients in the Chesapeake area. It works out well during the summer months when he is not teaching full-time.

It’s remarkable Sells ended up teaching collision repair classes be cause at first, carpentry was what he wanted to take at his local vocation al school in Ohio. Auto body was his second choice and he had no interest in it.

After graduating from high school, Sells needed a job. His fa ther worked two hours away at a steel mill. But Sells didn’t want to move and have to work as hard as his father did, so he thought maybe he should give collision repair an other shot.

Sells started at $4.25 an hour, making $170 for a 40-hour week. Then he made $7 an hour, averaging 50-55 hours a week, making $380 a week—which meant he doubled his income and was moving in the right direction.

When Sells took ownership of his future, fortunate things started to happen for him in the collision field. In 2013, he was approached to run the collision repair program for Tidewater Community College.

Working with the Collision Repair Education Foundation (CREF), Sells was able to apply for grants that helped finance some of his equipment for the program.

“We have received grants through the past years ranging from $3,000 and up over the years, which really helped to strengthen my pro gram with updated tools and equip ment,” Sells said. “Starting out, we

make changes to help accommodate their needs,” he said. “Employers of ten come and speak with the kids to offer possible employment opportuni ties when they graduate. Hiring them is the first step, but then retaining them is another part of the equation.

like welding, dent repair and panel replacement.

“This gives us an opportunity to expose them to the industry,” Sells said.

had to find a facility for our pro gram and a local career center had just closed their auto body program down. So TCC was able to lease and partner with Chesapeake Career Center to revive the program.

“Collision repair is a two-year program where we provide dual en rollment for high school kids and adults,” Sells said. “They both take the same course using the same cur riculum at the same time.”

Sells appreciates the fact he is getting a self-motivated student in his classrooms, in most cases.

“We have a lot of former mili tary people who take my class, so I get a better quality student,” he said.

“In addition, even the high school students have to pay to take our program because they get college credits. When they graduate from college with a career study certifi cate, they also receive their I-CAR pro-level 1 and 2 certifications.”

When Sells started the program, the school had solid enrollment numbers, but students weren’t get ting good placement in the job mar ket, he said.

“My goal from the beginning was to create good quality techni cians and fill the void,” Sells said.

“That first year, I had 16 students and I got jobs for four of them, and now I make sure that 100% of my students get hired. It is important to us and our program that we create careers for these young people and set them up for ongoing success.”

Members of his advisory com mittee, industry partners and body shops offer praise and criticism as well, Sells said.

“We value their feedback and

“I implemented several ideas for retention. One idea was putting a tool box with basic tools for en try level techs. They are given the tools if a student stays with the com pany, say for six months to a year. The largest expense that a collision repair student will encounter is their tools. So $700-$1,000 on average for a tool kit, so helping them in that regard is a major deal.”

This summer, the Chesapeake Career Center held Camp Collision, a four-day camp hosting 11 rising freshmen and sophomores from lo cal schools. Students were exposed to several parts of the collision field

One of the projects Sells got them involved in was the design and painting of Tervis tumblers, which every student got to make and take home.

With classes of 26 students cur rently, Sells is hopeful he will be able to add more as the pandemic looks more and more like a thing of the past.

“Yes, the COVID set us back like it did at a lot of other schools,” Sells said. “But we are in a very good position because we have established a great repertoire with our business owners and industry partners. We have their support and the parents are onboard too—so I anticipate further growth and a very bright future here at Tidewater Community College and the Chesapeake Career Center.”

“My goal from the beginning was to create good quality technicians and fill the void,” — Abe Sells

EV Safety

of dust or debris that goes into the environment, it can have severe con sequences for an EV,” he said.

Ongoing EV Education Implemented

Earlier this year, Fuchs helped host an I-CAR EV Technical Repair Summit with vehicle makers, colli sion repairers, insurers and tool and equipment manufacturers. The goal was to gain industry input, share learning and other EV information and training required to keep the in dustry safe.

During the summit, Fuchs ex plained current EV disconnecting procedures can be challenging for technicians to follow due to the number of hyperlinks included.

As a result of industry input, I-CAR developed and published best practices and safety protocols for high-voltage disconnecting proce dures, modeled after the European regulation ECE-R-100. “It was cre ated so everyone can perform a safe disconnecting procedure,” said Fuchs.

The document can be found at https://rts.i-car.com/best-practices/ high-voltage-disconnecting-proce dure.html

Due to strong engagement and interest, regular EV Technical Re pair Summits are being planned. A September summit will focus on handling high-voltage batteries and their disposal.

I-CAR currently offers eight EV courses and 29 electrical, diag nostics and calibration courses, in cluding a new five-day EV HandsOn Skills Development EV course taught at I-CAR’s Chicago Tech nical Center. Learners will receive in-depth instruction, with activities and practical hands-on exercises performing electrical measurements vital to determining the status and safety of HV systems using specif ic high-voltage systems test equip ment. Additionally, attendees will perform hands-on high voltage shut down, zero potential verification, bonding and isolation testing, and power up in a shop environment.

Find the latest course news, re sources and webinars at info.i-car. com/electric-vehicles

by Elizabeth Puckett, Motorious

It’s hard to hide the excitement over the results from Monterey Car Week, which prove with no wiggle room for doubt that enthusiasm for collector cars is going absolutely nowhere.

After weathering the storm of the pandemic, uncertain civil times and a looming recession, collector car buyers are still betting on the market.

“A new breed of collectors gaining wealth are buying the dream cars of their youth, while others continue to buy 1960s sports cars or pre-war greats for the val ues they have long traded at,” Hag erty reported.

The annual gathering on the Monterey Peninsula returned after a pandemic-driven hiatus in 2021, with a result of $343 million in sales. With more than $100 million added to that figure, it blew out the previous record of $395 million in 2015.

Without doubt, the presence of the inaugural Broad Arrow Auc tions event helped to push these numbers over the line. The Jet Cen ter Auction event pulled in $55.3 million alone, with a highest price of $5.5 million.

In addition to big bids, the Monterey Car Week is the No. 1 economic engine on the Monte rey Peninsula. Officials were pro jecting more than 85,000 visitors would pass through the area. The hotel and restaurant industry al most certainly got a massive boost from the week, which were at ca pacity before the events even start ed.

Please Honda

Barber Honda Bakersfield 661-396-4235

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Capitol Honda San Jose 408-445-4412

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Galpin Honda

Mission Hills 800-GO GALPIN 818-778-2005

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Honda of Hollywood Hollywood 800-371-3719 323-466-3205

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Honda of Pasadena Pasadena 800-433-0676 626-683-5880

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Keyes Honda Van Nuys 818-756-6549

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Larry Hopkins Honda Sunnyvale 408-720-0221 408-736-2608

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autobodynews.com

A panel discussion at this summer’s Collision Industry Conference (CIC) related to the impacts of inflation fo cused primarily on how body shops can address increases in the costs of paint and materials—including how to discuss rising costs with insurers.

No matter which of the major refinish paint lines is being used within a shop, virtually all colli sion repair businesses have received at least one letter—and generally multiple—in the past 18 months an nouncing price increases for those materials.

One paint company, for exam ple, notified its U.S. shop customers in January 2021 of a “weighted av erage increase of 4.1%,” followed by a similar “weighted average in crease of 4.25%” in May 2021, and another of 9.8% in February of this

Panelists at CIC noted some

shops may be confused by the term “weighted average,” particularly if they see their paint costs rising above the percentages noted in the letters.

Paint company representatives said those average increases are

“So some products may be raised more, some will be raised less,” said Braxton Ewing of BASF. “A lot of that is dependent on supply chain issues and raw material avail ability.”

Tim Ronak, senior services con sultant for AkzoNobel, concurred.

“An individual shop may not buy that entire weighted range of products in the same distribution that we’ve averaged it,” Ronak said, noting most companies offer a vari ety of clear coats, for example, that might increase in price at different rates. “What that means is that each shop may see its own unique price increase, irrespective of what’s pub lished.

Track and Document Costs

Panelists noted one way a shop can better document its costs is through the use of a paint materials calcu lator or billing system other than the traditional “paint labor hours times a given rate.” A “Who Pays for What?” survey in January found although the percentage of shops using that method has been falling, about half still do.

Committee co-chairman Aaron Schulenburg pointed to an article on the CCC Intelligent Solutions website stating although most of its customers use the “rate times hours” method for calculating materials charges, “this is also usually inaccu rate.”

an aggregate average across all the various products that manufacturers may include in the notice.

“A 10% published number might be, for an individual shop, a 12% increase in actual expenses, whereas another might see an 8% increase,” Ronak said.

Ronak said most shops in the 20 Groups he oversees have moved away from using a “rate times paint labor hours” billing method for ma terials.

“In fact, they’re becoming far more specific about what is a paint material, and creating invoices and documentation for that,” Ronak said. “They’re taking some of the things that used to be called materi als, like panel bonding adhesive and seam sealers, and billing for those independently on a per-job, docu

he recommended. “You need to truly understand job-costing. The trans formative moment for most shops that I’ve worked with in all the years I’ve been doing this is when they un derstand job-costing and they stop doing the things that take money away. That’s typically all you need to do: Stop doing the stuff that costs you money, and start doing more of the things that make you money.”

Ewing, a performance group manager for BASF, said shops using the Mitchell Refinishing Materials Calculator, PMCLogic from Com puter Logic or their paint scale to more accurately track and invoice for the actual materials used will see two otherwise identical jobs may have different paint costs just be cause of the color. Charging based on paint labor hours doesn’t take into account so many factors like that, he said.

continue to become more detailed over the long term, just as estimates themselves were once as basic as “replace and paint fender for $xxx.”

Shorter-term, he said, shops need to work with the manufacturer of the paint they are spraying “to re ally understand how to be profitable with their products,” and then “learn how to document and communicate that” to whoever is paying the bill for repairs.

Addressing Costs with Insurers

An insurance company representa tive on the panel said, like shops, insurers are seeing their costs rise quickly. Dan Tessadri, auto physi cal damage business consultant for CSAA Insurance, said at least in some states, there can be a long lag time before insurers can reflect their higher costs in premiums.

“That’s a little different than what [a paint company CEO said in a news clip played at the meeting] where every quarter they look to ad just prices,” Tessadri said.

Tessadri was asked about shops’ approach in seeking rate increases.

“There is an incredible differ ence in the documentation, in the communication, in the overall sort of understanding of the impact infla tion is having on their store,” Tessa dri said.

The most effective way he sees for a shop to start that conversation?

“From my perspective, it’s un derstanding that you’re not oper ating in a vacuum. We’re not all in the same boat, but we’re in the same storm,” Tessadri said.

Work for some open discussion, he recommended.

mented basis.”

He said “knowing your num bers” is even more crucial for shops in inflationary periods.

“Be able to break down how you look at your business, rather than just sales versus a pile of costs,”

“You may have a weak esti mator who writes lower hours than should be expected for that repair, or may have missed something during the estimating process,” Ew ing said. He said paint and materials documentation and invoicing will

In California—and some other states—insurers must get the premi um increases approved in advance. Between the process of determining the increases needed and getting ap proval, he said, it can take up to two years to see the increase reflected in premiums.

“‘This is what I want, but this is what I could potentially live with,’” Tessadri suggested. “Those are the discussions that end up probably more successful. I’m a data guy. So I do sort of enjoy seeing [some one who has] gone to the length of crunching that information to ex plain it to me.”

Tim Ronak of AkzoNobel said collision repair ers really need to be on top of their numbers during inflationary periods

and Christina Molina, Collision Care Xpress, of ten tell customers no job is too big or too small. They take pride in build ing trust with customers and offering the latest auto body repair and paint technology at their Florida facility.

Robert always had a passion for cars. In 2008, during the Great Re cession, he worked as a body shop manager for Cadillac and Hum mer outside of Ft. Lauderdale, FL.

“The whole world was on fire back then,” recalled Robert. “I thought it was a great time to open a shop of my own.”

In 2010, Robert and Christina found a location in Pompano Beach, FL, north of Fort Lauderdale, to open their shop. For the first few years, Robert was a one-man show.

made the business successful.

How did you begin building the business?

Christina: In 2015, I had just given birth to our second child, and instead of returning to nursing, I stayed on board and helped Robert run and grow the business.

Working there was a natural feeling because my dad was a me chanic for 40 years and I was always at his shop. I have photos of myself in a diaper with grease from head to toe.

Robert and I purchased our first freestanding building in 2016, about a mile from our original location. It was really scary. We were promised that a DRP would come in and they never did. We looked at each other and said, “What did we get ourselves into?”

We have the expertise and re sources to provide insurers with documentation and procedures to justify necessary repairs, and that aids the insurance estimator to prop erly value the repair.

To be a high-caliber facility, we believe you have to be OEM certi fied and repair vehicles the way the OEM specifies.

About a year after opening the new facility, we began working with Tesla and were one of the first Tesla-certified shops in Florida.

Robert: We’re proud that as of to day, we have more than 20 OEM certifications. That goes a long way with customers. We find they put a lot more trust in us and feel they are bringing their vehicle into a shop that is well-versed in repairs.

What is the importance of customer

service and reviews?

Robert: We can’t afford to have cus tomers come in and not do a good job. After every repair, I follow up to find out if there was anything more I could do to help.

From the beginning of running the business, every time we finished a job, we asked customers to go online and leave a review on Goo gle or Yelp. We have thousands of five-star reviews. That wasn’t as common then as it is now, but it’s what started growing the company. We began picking up traction and getting more business because of those reviews.

We’re customer-centric and want to ensure our customers are happy. If we receive one star due to a situation we couldn’t control, we work hard to convert it into five stars.

“I did everything, including estimat ing, body repairs, welding, pulling, painting and dealing with insurance companies,” he said.

Christina was a nurse at the

“Those first years, she was con cerned that I had left my job to open my business,” recalled Robert. “I told her it’s going to be something special one day.”

The shop focused on custom restoration work, which helped them get through the early years until they built up the collision side of the business.

“Christina paid the bills and kept me alive there,” said Robert. “With her support, I was able to continue chasing my dream and was determined not to give up.”

I talked to Robert and Christina about OEM certifications, building a culture and initiatives that have

Looking back, it was probably the best thing that could have happened because it made us not be dependent on a DRP for steady work. We had to think outside the box and focus on marketing and so cial media to succeed.

Robert: We went from having about 3,000 square feet of shop space to 16,500. I thought we had made a huge mistake by listening to a DRP, but it was a blessing in disguise. We were able to figure out how to mar ket and grow our company.

An essential part of your busi ness is focusing on OEM certifica tions. Why is this important?

Christina: Our marketing efforts made us realize that we wanted to focus on OEM certifications. We have a great working relationship with all major insurance compa nies. Because we are an independent shop, we never deviate from facto ry-mandated restoration procedures and are always able to keep the best interest and safety of our customers as the top priority.

Christina: We want customers to have the best possible experience. Many think of a body shop as a dirty dark space where their car gets lost in a black hole. We hold a higher standard than that and customers can feel comfortable bringing their cars here and know they are fixed properly.

We’re serious with our tech nicians and ensure that they do the right thing with every repair, espe cially when no one’s looking. We re pair about 250-300 cars a month and neither Robert nor I can personally check every car.

How do you encourage teamwork?

Robert: We think outside the box. We have an on-site gym with a shower, an arcade, a recreation room for our 60 employees, and several employee lounge areas.

Christina: We also hold a lot of parties and events. We find these gatherings help build a culture and lead to happy employees who want to come to work. When you have happy employees, you get wonder

ful results. Unhappy employees are disgruntled and unlikely to put out a great product.

Robert: Customers can sense that. It’s like when you walk into a restau rant and know the servers are upset. You’re uncomfortable. It’s import ant to ensure our staff is happy be cause they will radiate that to cus tomers. It’s a critical part of being successful.

What are your plans for the busi ness?

Robert: We’ve purchased a new building almost every year since opening and are expanding again. We have more than 90,000 square feet of air-conditioned repair space and call it our campus compound. It’s a shop of the future that custom ers can drive their cars into and is gorgeous.

There are four buildings and each has a different focus and cus tomer base we market to: DRP, elec tric vehicle repairs, combustible engine repairs and fleet repairs. By breaking up each part of our busi ness, it is easier to coordinate em

ployee training, offer better service and be more efficient.

We recognize the industry is changing and we can no longer re pair everything the same way. We have to divide and conquer and provide customers with the best op tions.

Christina: Using this system, we’ve found our business is more organized. It allows us to spend time with employees and offer special ized training, especially with EVs.

If you aren’t focusing on OEM cer tifications and learning about EVs, you aren’t going to have a shop in the future. It’s important to be for ward-thinking.

Robert: Another development is the creation of a human-less valet system that moves cars automatical ly through the shop. This will help with repair planning and being more efficient. That’s the future of the collision business—less human and more interactive with computers.

www.autobodynews.com

ASE Summer Testing

Registration Ending

Registration for the National In stitute for Automotive Service Excellence (ASE) summer test ing period ends Sept. 30.

Those service professionals who register will have 90 days to schedule an appointment to take the selected ASE tests, whether registering on the first day of the registration period or the last.

More than 50 ASE certifi cation tests covering nearly ev ery aspect of the motor vehicle service and repair industry are available for ASE certification. ASE testing is available through out the year and is conducted days, nights and weekends at nearly 450 secured, proctored test centers.

To register, visit ASE. com, click on register and signin. Once logged in, users can next click on “orders” and then “store” where they can find the tests they want to take, add those tests to the cart and check out, and registration is complete.

Source: ASE

Global Finishing Solutions (GFS) is excited to announce Maximum Equipment & Technical Services is now its preferred automotive and truck refinish distributor in South ern California, giving body shops and collision repair centers a local equipment supplier they can trust.

Founded in 1992, Maximum Equipment supplies, installs and services a variety of automotive repair equipment in Southern Cal

20-person staff that covers three lo cations, with their headquarters in Upland, CA.

GFS is committed to provid ing the highest level of service and support to its customers through the finest distribution network in the industry. GFS is confident cus tomers in Southern California will benefit greatly from increased ac cess to technical support, parts, fil ters and a wide range of GFS prod ucts.

To talk with a GFS sales repre sentative or to be put in touch with a GFS distributor in your area, call 800-848-8738, option 3, or email autorefinishsales@globalfinishing. com.

Crash Champions, LLC, one of the nation’s fastest growing inde pendent collision repair service providers, announced Sept. 13 it has grown its presence in Idaho through the acquisition of Treasure Valley Collision Center, consisting of two locations at 8247 W. State St. in Boise and 870 W. Franklin Road in Meridian.

The acquisition of Treasure Valley gives Crash Champions eight locations in the Gem State and follows the company’s acqui sition of Ruben’s Body Shop earlier this year.

ourselves on providing our cus tomers with first-rate collision re pair and outstanding service, and it has been an honor for me and my family to serve the community,” said Mike Barber, owner of Trea sure Valley Collision Center. “With Crash Champions, we have the op portunity to transition the business to new ownership, while guaran teeing that our neighbors in need of collision repair will continue to be met with compassionate and highly competent professionals.”

ifornia, Southern Nevada, South ern Utah and Hawaii. Maximum Equipment provides full-service solutions, including training and growth planning, having devel oped a track record of completing projects on time and on budget to help shops save money and in crease efficiency.

Owner Max Hirsch

To talk with a Maximum Equipment sales representative, call 800-318-6508 or email info@ maximumequipment.com.

Source: GFS

“Treasure Valley will be a ter rific addition to our growing Idaho footprint,” said Matt Ebert, found er and CEO of Crash Champions. “Mike and his team have dedicat ed themselves to excellence, with talented technicians possessing industry leading certifications who utilize the latest technology and equipment to deliver exceptional results. I am thrilled to welcome the team to the Crash Champions family.”

“At Treasure Valley, we pride

For more information about Crash Champions, visit crashchampions. com. For those collision repair companies interested in selling their business, Crash has made it easy. Visit crashchampions.com/ sell-your-shop to learn more.

Source: Crash Champions

Enhance Your Career Through SEMA Show Education

by SEMA Editors

The 2022 SEMA Show Education program will feature more than 70 seminars designed to inspire personal and professional development.

Led by industry- and sub ject-matter experts, the program of fers a customizable lineup of sessions and workshops that confront industry challenges, capitalize on emerging trends, highlight and reinforce busi ness best practices, enhance leader ship skills and much more.

One of the newest components of the 2022 Show Education program are four sessions focused on the Di versity, Equity and Inclusion (DEI) in the workplace.

The first DEI session, “Diver sity and Inclusion: How You Can Advance Equal Opportunity in Your

will motivate aspiring builders and technicians as they hear from leading customizers sharting their experienc es crafting off-road machines, hot rods, musclecars and detailed resto rations.

The new “Enthusiast” track, scheduled for 8-9 a.m. Nov. 4, will feature industry personalities and ce lebrities providing insight on building cars, ideas for obtaining sponsorships and the importance of protecting the automotive aftermarket from over regulation. One of the five sessions, “Celebrity Insights,” moderated by African American Racers Associa tion co-founder Chris Harris, will give attendees a glimpse into the lives of some of their favorite celebrities, legends and luminaries.

The “Keynote” track will fea ture the new “Main Stage Experi

Show.

Building on the success the 2021 Show’s education program, the “Leadership Essentials” track, pre sented by Dale Carnegie, returns to the Show, offering six courses spread out over three days. The courses, which can be taken as a whole or individually, feature trainers from Dale Carnegie providing the institu tion’s acclaimed leadership, commu nications and sales program that im prove both individual and business performance.

“The SEMA Show has a lot to offer, from seeing new products and vehicle builds, meeting with manu facturers, learning from experts and developing meaningful relationships that you can only get from an in-per son event,” said Tom Gattuso, SEMA vice president of events. “We

•

• Aftermarket Updates & Future Trends

• Business Management

• Digital Marketing

• Electric Vehicles

• Enthusiast

I-Car Collision Repair Training

• Inside the Shop

• International Roundtables

• Keynote

• Leadership Essentials (present ed by Dale Carnegie)

• Legislative and Regulatory

• SCRS Repairer Driven Edu cation

• Tire Industry Association

• Vehicle Technology

All sessions are held in meeting rooms at the Las Vegas Convention Center, making it easy and conve nient for attendees to schedule sem

Are Your Processes and People Strategically Aligned?

by Ed Attanasio

An auto body shop owner or manager might say “we are a process centric shop,” “we stress processes here and focus on efficiency and productivity” or “it’s all about workflow here and everyone knows their role.”

But they are thinking “our pro cesses need to be updated, but is ev eryone on board,” “we are forgetting about the people part of the equa tion,” “do we have the right crew to achieve our goals” and “our process es take too long and don’t help our cycle time.”

To achieve consistent results, every successful body shop needs to devise a series of processes that maximize its strengths while com ing up with viable solutions for problematic areas. It’s Business Management 101—“strategic align ment,” a mechanism by which an or ganization uses tools to visualize the relationship between processes and strategies.

Every auto body shop owner and manager is always looking to optimize workflow because they know it’s a critical component that can significantly impact productivi ty and performance.

Production often gets caught up in the day-to-day roller coaster and managers fail to realize the shop’s processes are outdated, inefficient or no longer in use. Continually changing processes and workflow strategies isn’t a bad thing. In re ality, frequently assessing internal operations to ensure they are lean and working efficiently is something every body shop should do.

The rub here is how to take theory and put it into practice while using the technology and tools avail able. In many cases, body shops devise methods that look good on paper but don’t offer practical solu tions for real-world applications.

When a shop is in a rut, it’s time to re-calibrate and update its processes to better coincide with the workplace environment. In many instances, the plan is reliable, but if the crew does not strictly adhere to the strategic policies devised, the department will never realize its full potential.

Rick Selover, industry insider/

consultant, gives a historical per spective on how processes eclipsed the importance of people over the years.

Selover, a former refinish in structor, is a multi-award-winning sales leader, collision industry con sultant and advisor, motivational coach and host of a personal and professional development podcast series, “The Mind-Wrench Pod cast.”

“Today, you’ll hear things like ‘your people are your business’s greatest asset,’ ‘teamwork makes the dream work’ and ‘your compa ny is only as strong as your weakest link,’” Selover said. “But this wasn’t the credo that body shops lived by back in the 1970s to 1990s, not at all. Back then if you could bump a panel, skin a door and pull a frame or unibodies, or you could DA, paint and rub a car, and didn’t mind hard work, you could work in this indus try, or even start your own shop!

“Baby Boomers were probably 90% of the workforce in those days, and just plain old hard work was the standard,” Selover said. “Concepts such as job satisfaction, fulfillment and work-life balance weren’t a thing yet! If a shop owner didn’t like your work, or your attitude, or the fact that you came in late—or hungov er—every other day, they would fire you and your replacement would be unloading his toolbox the same time you were rolling yours out the door.

“The technology—or really, lack of—and finish of those vehicles set the talent bar relatively low com pared to what is needed to repair to day’s vehicles,” Selover continued. “Most shop owners couldn’t swing around a seized-up come-along without hitting eight to 10 body and paint guys looking for work.”

But as car technology started to advance through the 1990s into the 2000s, paint companies started teaching lean concepts, introducing repair processes, MSOs started tak ing root in the industry and things began to change, Selover said.

“The growing groups of MSO shops started focusing on creating, defining and implementing repair processes and operating procedures that increased the efficiency of their shops and increased production, or

the number of cars going out the door each week,” he said.

As this transformation evolved, the focus was really on the process es, not the technicians, Selover said.

“They were treated more as assembly-line workers than crafts men,” he said. “Remember, techs were easily replaceable in the past. But today, the required talent level has been increasing and the talent pool has shrunk drastically smaller.”

Fast forward a couple decades and vehicle technology and com plexity has grown exponentially, Selover said.

“The talent level required to do the work has increased to an unbe lievable degree, and meanwhile, in surance company DRPs have ruined the mindset and broken the will of the 90% of the workforce that was the ‘engine’ of collision repair for the past 30 or 40 years,” Selover said. “As the average age of those Boomer techs creeps up on 60, they have been on a steady march right out of this industry at an alarming rate—either aged out, burned out or

just grown too tired to fight the fight anymore.

“The collision repair business is highly unique in the service sec tor of business, as the combination of intelligence, creativity and pas sion require unique individual men and women,” Selover said. “Finding them is more challenging now than ever in our history. But that is where collision center owners need to en gage their own intelligence, creativ ity and passion to mold their busi ness, create a desirable culture and provide a unique place that appeals to multiple generations.”

If you are currently in a po sition where you want to re-work your processes and shake things up a little, here are three takeaways to ensure ongoing success.

Get Input from Everyone

If management creates workflow strategies for all employees at ev ery level, there is going to be some disconnect along the way. After all, it’s never easy to ensure the process es being installed without getting

feedback from your service writers, technicians, parts people and front office personnel.

If you’ve discovered your em ployees are drifting away from your workflow, you may need to make adjustments to eliminate potential obstacles. Getting input from staff at various levels can help give the insight needed to devise the most ef fective and solution-based approach that works.

Be Realistic

In addition to polling your crew and letting them play a role, also be trans parent and accountable when deter mining what they can and cannot do. This requires an accurate assessment of the challenges your department currently faces. Some strategically aligned processes will work for some staff and not others, and a good man ager will be able to recognize that and pivot successfully.

There is never a one-size-fitsall approach to business process management. What works for some service departments might not for yours. That’s why it is essential to ensure your processes are tailored to

AAPEX Ranked Among Top Trade Shows

The Automotive Aftermar ket Products Expo (AAPEX) is among the winners of Trade Show Executive’s Gold 100 awards that recognize U.S. trade shows in 2021 that set the gold standard during a tumultuous year.

AAPEX is co-owned by the Auto Care Association and the Automotive Aftermarket Suppli ers Association (AASA) and is organized by trade show man agement specialist W.T. Glasgow Inc.

The Gold 100 awards recog nize trade shows for their accom plishments during the ups and downs of the pandemic, and for prevailing even with the many challenges and new protocols put before them.

AAPEX and its show or ganizer will be honored at this year’s Trade Show Executive’s Gold 100 Awards & Summit, Sept. 21-23 at the Ritz-Carlton Bacara, Santa Barbara, CA.

Source: AAPEX

your department’s individual needs.

But you also have to be truth ful about their strengths, weakness es and tendencies. Too many shop owners and managers install pro cesses that are based more on wish ful thinking than anything else— so be real and deal with the cards you’ve been dealt.

Select the Right Tools, People and Technology

If your employees don’t have the right resources and tools to perform their job responsibilities properly, it will undoubtedly disrupt your entire workflow and impede every aspect of your business. The more intuitive your technology, the better posi tioned you will be to make intelli gent decisions to help enhance your efficiency, streamline your workflow and uncover even better processes.

To be effective and stay at the top, body shops need to create a se ries of processes that will position their crews for ongoing success. By using new technology, soliciting valuable feedback from the team and being realistic when assessing staff, collision repairers will score big.

by David A. Wood, CarComplaints com

It may be 2022, but Kia has already recalled nearly 20,000 of its 2023 Sportage vehicles right from the get-go.

According to Kia, the Sportage alternator battery positive terminal nut may loosen and cause a stalled engine or even a fire due to electrical arcing at the B+ termi nal.

ing a customer who complained the 2023 Sportage lost power, shut off and wouldn’t start. The Kia dealer found melting of the alternator B+ terminal and nut.

Kia is aware of two 2023 Sportage fires, one that involved melting at the B+ terminal and one with localized damage around the alternator. But Kia says it is un aware of any fatalities, injuries or crashes.

Kia says the alternator battery positive (B+) terminal nut ensures the electrical connection is main tained between the battery wire harness terminal plate and the al ternator B+ terminal. But the B+ terminal nut may not have been properly torqued by the supplier during assembly.

In May, Kia learned about a complaint made to a dealer re garding a 2023 Kia Sportage that wouldn’t start. The dealer found a loose alternator cable and thermal damage to the alternator, wire har ness and intake manifold.

Kia then received a second re port in July from a dealer concern

A Sportage driver may notice an illuminated charging system warning light.

Kia Sportage recall letters will be mailed Sept. 23, and Kia dealers will tighten any loose alternator B+ terminal nuts.

Kia Sportage owners may contact Kia at 800-333-4542. Kia’s number for this recall is SC248.

The average price paid for a new vehicle in the U.S. in August topped July’s record and kept the average transaction price (ATP) solidly above the $48,000 mark, according to new data released Sept. 12 by Kelley Blue Book, a Cox Automotive company.

The Kelley Blue Book new-ve hicle ATP increased to $48,301 in August, beating the previous high of $48,080 set in the prior month. Au gust prices rose 0.5% ($222) month over month from July, and 10.8% ($4,712) year over year from August 2021.

New-vehicle inventory days’ supply held steady in the mid-to-high 30s during the summer and is show ing signs of increasing. In August, days’ supply was 43% higher than it was in the same timeframe of 2021, when inventory shortages first start ed to impact the market. Still, with roughly 1.2 million units in invento ry in the U.S., new-vehicle inventory remains significantly below levels seen in 2020 and 2019.

In the face of tight inventory and high prices, new-vehicle sales remain depressed, averaging just 1.1 million units per month in 2022. For

comparison, sales in the first eight months of 2019 averaged 1.4 million per month.

Hyundai, Land Rover, Honda and Kia continue to show the most price strength in the market, transact ing between 5% and 9% over sticker in August.

Ram, Volvo, Lincoln, Buick and the smaller Italian brands Alfa Ro meo and Fiat showed the least price strength, selling 1% or more below MSRP in August. Understandably, the brands with the lowest price strength also have the highest days’ supply of vehicles.

“Prices are still high and climb ing incrementally every month,” said Rebecca Rydzewski, research manager of economic and indus try insights for Cox Automotive. “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021. However, supply of pop ular segments like subcompacts, hybrids and EVs still remain very low. Automakers are focusing on building and selling high-margin vehicles. Essentially, the product mix is the primary factor keeping

prices high.”

The average price paid for a new non-luxury vehicle in August was $44,559, up $132 month-overmonth and a record for non-luxury vehicles, beating out the high set the prior month. Car shoppers in the non-luxury segment paid on av erage $1,102 above sticker price, an increase from the prior month. Non-luxury shoppers paid nearly 2% above MSRP in August, compared to 1% above MSRP a year ago.

One bright spot for buyers: truck shoppers paid $142 below sticker in August.

In August, the average luxury buyer paid $65,935 for a new vehicle, up $878 from the prior month, when luxury ATPs hit a record $65,057. Luxury buyers continue to pay more than MSRP for new vehicles, al though prices are trending closer to sticker prices. Luxury vehicle share remains historically high as well, al though share decreased to 17.5% of total sales in August from 17.7% in

new electric vehicle (EV) rose in Au gust by 1.7% compared to July and increased by 15.6% versus a year ago. The average price for a new electric vehicle more than $66,000, according to Kelley Blue Book esti mates remains well above the in dustry average, aligning more with luxury prices versus mainstream prices.

Incentives decreased slightly in August versus July, remaining historically low at only 2.3% of the average transaction price. A year ago, incentives averaged 5.5% of ATP. Full-size cars and luxury cars had the highest incentives in August, while high-performance cars, vans and electric vehicles had the lowest incentives.

Brands with higher inventory levels offered higher incentives in August. The Stellantis brands, for example, generally had higher than average inventory in August and also higher than average incentives. While still low from a historical per

by Douglas McColloch, SEMA

Celebrating its 55th anniversary in 2022, the annual SEMA Show has evolved to fit the times, reflecting and responding to changes in the specialty automotive industry, and this year’s Show should be no different.

With an extra 600,000 square feet of exhibition space courtesy of the new West Hall, last year’s Show provided attendees with more room to conduct business in a collegial environment while still having ample space to enjoy a dazzling array of enthusiast events, builds, competitions and networking opportunities. The 2022 Show promises more of the same.

Year, SEMA Powersports Vehicle of the Year and SEMA EV of the Year.

SEMA Award winners are determined and voted on by SEMA Show exhibiting manufacturers to recognize vehicles that manufacturers are investing in and developing products for. The program heightens awareness for aftermarket products and exemplifies the industry’s partnership between automakers and aftermarket manufacturers that develop products to improve vehicle performance, safety and convenience as well as appearance and comfort.

The New Products Showcase Upper South Hall, Booth #31307

SEMA Gear.

SEMA Central is also the place to see celebrity appearances, to take in daily panel discussions and Brew Talks with some of the industry’s most notable and knowledgeable figures, and to get an up-close look at last year’s Battle of the Builders winner Bob Matranga’s classic ’55 Chevy, which will be on display during Show Week. SEMA Central is also the site for the finals of SEMA Launch Pad, SEMA’s annual competition of automotive entrepreneurs.

Feature Vehicle Displays Various Locations

and out, the displays connect with Showgoers as an extension to the exhibit booths of the product creators. The SEMA Show app features a scanning function that allows attendees to quickly capture product and exhibitor information from feature vehicles on display throughout the Show.

SEMA Overland Experience West Hall, Booth #62236

While the SEMA Show floor is organized by category and numbered to improve navigation, an ideal way to simplify the Show experience is with the 2022 SEMA Show app, which contains detailed exhibitor information, interactive floor plans and daily event information all accessible from mobile devices.

The Show app also features a scanning function that allows attendees to capture product information from the New Products Showcase and exhibitor information from feature vehicles on display. The app puts the entire SEMA Show in your pocket, and it’s available as a free download from your mobile device’s native app store or by logging on to www.SEMAShow.com/app.

SEMA Awards Presentation

5-7 p.m. Oct. 31, Silver Drive, Outside the Central Hall Entrance

The annual SEMA Awards, given to the top-trending vehicle models in six categories, will be presented Oct. 31, the day before the SEMA Show officially opens. The awards are presented to automakers for the SEMA Car of the Year, SEMA Truck of the Year, SEMA 4x4-SUV of the Year, SEMA Sport Compact of the

A first stop for many attendees and a must-see for everyone else, the New Products Showcase provides a window into the automotive aftermarket for the coming year as hundreds of manufacturers roll out their latest innovations. In all, the 2022 New Products Showcase is expected to exhibit more than 2,500 new and featured products in a brandnew, 30,000-square foot exhibition space in the Upper South Hall.

For 2022, two additional product categories will be added to the Showcase: advanced driverassistance systems (ADAS) and EV technology.

The New Products Showcase enables buyers to focus their efforts on the companies they need to see to keep the product pipelines active and their inventories fresh, and media attendees can get a glimpse of the latest trends to emerge from the industry’s leading influencers. Additionally, scanning products with your mobile device using the SEMA Show app enables communications between buyers and exhibiting companies to generate leads and drive future sales.

SEMA Central Grand Lobby, 8 a.m.-5 p.m. Oct. 31–Nov. 3; 8 a.m.-4 p.m. Nov. 4

This year, SEMA Central expands to offer Showgoers a more immersive industry experience than ever before. Visit this Show hub to see top-tier vehicle builds and center-stage interviews with iconic personalities. There’s even a boutique shop to outfit you with the latest

The SEMA Show is renowned for the innovative parts and accessories displayed on show vehicles representing every industry niche, from cars and trucks to powersports. Much more than rolling works of art, the vehicles offer an inperson look at real-life applications of the aftermarket’s latest and most impressive products.

Located throughout the Las Vegas Convention Center, inside

With many similarities and connections to off-roading, adventure travel, aka overlanding, has strong roots in Australia and South Africa, and in the U.S., its popularity has exploded over the past decade. Buyers at the 2022 SEMA Show will be able to see products and vehicles specifically for overlanding in the expanded SEMA Overland Experience area. This special exhibit will include dozens of customized vehicles with fully popped-out tents, survival accessories and portable kitchen systems all displayed among exhibitors supporting the growing

See SEMA

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overlanding market.

SEMA Electrified

North Hall, Booth #11268

As a trade association, SEMA looks down the road for emerging trends in performance and hot rodding, and it views vehicle electrification as a modern-day expression of those enthusiast pursuits. Now SEMA Electrified offers the industry an opportunity to see where this growing segment might take us in the next five to 10 years and beyond.

Experience for yourself the surprising technologies that are advancing and redefining the performance aftermarket. At SEMA Electrified, you’ll encounter some incredible custom electric-vehicle conversions and noteworthy parts and products that are currently driving the market.

SEMA Launch Pad

Central Hall, Booth #22970

Fifteen executive-level

innovators compete in a “Shark Tank”-like business competition for automotive entrepreneurs. The Top 5 are then selected for an elimination competition to be held Nov. 2 at SEMA Central, with the final two candidates presenting their pitches at the SEMA Industry Awards Banquet on Nov. 3. The ultimate winner will then receive a prize package of nearly $100,000.

Throughout Show Week, each of the 15 competitors will have their new products on display in the Launch Pad Corral and the Featured Products Showcase. Visit the Corral to learn about the products and businesses.

SEMA Battle of The Builders

North Hall, Booth #10139

Since its debut in 2014, SEMA’s premier showcase of the builder’s art has become one of the Show’s biggest attractions. It returns for 2022 and runs all during Show week before culminating Nov. 4 in North Hall.

Forty of the world’s most creative builds will be judged by a panel of industry experts, with the Top 12 vehicles advancing to the finals in four distinct categories that are new

for 2022: Hot Rod/Hot Rod Truck, 4-Wheel Drive & Off-Road, Sport/ Compact, Import Performance, Luxury & Exotic and Young Guns (builders under age 29). The winning vehicles will lead the procession at SEMA Cruise, which takes place immediately after the winners are announced.

SEMA Cruise Silver Drive

Vehicles from the 2022 SEMA Show begin parading out of the Convention Center at Show close 4 p.m. Nov. 4 to the delight of thousands of fans in grandstands along the route.

More than 1,000 vehicles will take part in the SEMA Cruise, which proceeds toward the West Hall parking lot and SEMA Ignited, the Show’s official after-party that’s open the public. Spectators have a ringside seat to view the coolest cars on the planet, and the Cruise has become one of the Show’s most anticipated events.

SEMA Ignited West Hall Parking Lot

The 2022 SEMA Show culminates at SEMA Ignited, the

official after-party that launches immediately after the Show ends Nov. 4. The event takes place in the West Hall Parking Lot just a short walk away and is free to all credentialed Show attendees.

Introduced in 2014, the annual event is also open to the public, giving consumers the chance to glimpse some of the vehicles and excitement from the world-famous, trade-only SEMA Show. The party is a great way for Showgoers to unwind from the week while enjoying a night of food, entertainment, drifting demonstrations and more.

Gates open at 3 p.m., and your SEMA Show badge serves as your free ticket. For more information, visit www.SEMAignited.com.

SEMA Gear Various Locations

For your shopping convenience, SEMA Gear stores are located throughout the Show in the Bronze Lot, the East Lobby, SEMA Central, the Grand Lobby, the Grand Plaza, the Central Hall, the Skybridge and the West Hall. Don’t forget to stop by and pick up gifts and SEMA Show

memorabilia for friends and business associates back home. You’ll find T-shirts, hats, bags and more at each store. A portion of the proceeds from every sale is donated to SEMA Cares charities.

LVCC Loop West Hall, Central Hall, Lower South Hall

Walking the SEMA Show floor can eat into valuable time, so Showgoers looking to maximize their efficiency during Show Week can take advantage of the new LVCC Loop. A 1.7-mi. subway tunnel that connects West, Central and South Halls at three dedicated stations, the Boring Company-built Loop can save time by transporting attendees from one end of the Convention Center to another in roughly four minutes, and the system can transport more than 4,000 passengers per hour.

While all of the information contained in this article was accurate at the time this issue went to press, be sure to visit www.SEMAShow. com or the SEMA Show app for the latest updates and schedules.

Source: SEMA

Apple Consideration with Consumers

Even though Apple has yet to an nounce plans to produce an automo bile, the brand already has some of the highest future brand consideration among recent new vehicle buyers, ac cording to Strategic Vision’s New Ve hicle Experience Study (NVES).

NVES is the largest, most com prehensive survey of new vehicle owners in the U.S., and these findings indicate that if Apple builds it, cus tomers will come. For nearly 30 years, Strategic Vision has asked new vehicle owners whether they would consider and how they feel about the quality of over 45 automotive brands, including some not available in the US. In 2022, a potential Apple-branded vehicle was introduced to that list.

“Apple is the third-highest brand consideration, with 26% of customers stating they would ‘definitely consid er’ an Apple branded vehicle in the future, just behind Toyota (38%) and Honda (32%), followed by Ford (21%) and Tesla (20%),” said Strategic Vi sion President Alexander Edwards.

“However, Apple’s strength doesn’t end here. “What should be concern ing to others is that Apple generates a greater amount of love than any other

automotive company, double that of strong brands like Honda, Toyota and Tesla,” Edwards said. “For example, more than 50% of Tesla owners would ‘definitely consider’ a future Apple ve hicle; everyone should be prepared.”

Apple has the greatest combined score when looking at the top-box re sponses of two key measures: Future Consideration (“definitely consider,” 26%) and Your Impression of Quality (“I love it,” 24%). “Of course, what Apple ultimately presents in terms of styling, powertrain, product and other key features will finally determine the level of interest generated among car shoppers. However, their brand aware ness and reputation provide a formi dable platform that automotive manu facturers should brace themselves for accordingly,” said Edwards. Combined with recent news of the next generation of its CarPlay system, Apple has with in its brand arsenal the ability to take a moonshot among automotive manu facturers. Of course, this depends upon how established competitors respond as potential newcomers like Apple nav igate their way into the market.

“If others don’t prepare today for this type of disruption, they may

find themselves wondering ‘What happened?,’ similar to when Tesla en tered the market,” said Christopher Chaney, Strategic Vision senior vice president. “All the current players in the industry mostly hold their own destiny. If they simply stay lulled into spending all their ingenuity chasing electric mo tors, LED lighting and flat screens with thousands of apps and every high-tech feature you’ve never dreamed about, Apple may land the moonshot right in their sales backyard.”

The only weak spot in Apple’s position is they haven’t yet produced a vehicle, leaving 34% of new vehi cle buyers to state they “don’t know enough about” what an Apple prod uct might be like. “The good news for current automotive brands is that Apple’s road to destiny isn’t a given,” said Chaney. “Designing future strate gy and building cars based on ‘true in novation’ involves rich and impactful impressions, a blend of art and science. Having highly motivational features that are each linked to the customer’s values and emotions is what will keep a potential Apple car on a relatively level playing field.”

Source: Strategic Vision

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Regardless of the age

Collision repairers and insurance company representatives at this summer’s Collision Industry Con ference (CIC) discussed the friction that exists between the two segments of the industry in terms of estimat ing damages and adjusting claims.

An appraiser for Erie Insurance seemed to surprise some collision repairers at the meeting when she suggested shops and insurers should keep customers in the loop about the claims adjusting processes.

“So if you’re emailing the shop, ‘cc’ your customer in that for infor mation purposes,” Connie Hutton

my first line says: If you need a sup plement—photos, invoices, sublets, whatever—just send all that’s clear, and you’ll be paid,” she said. “Half of [shops] don’t even read that. It just wastes time for you, not me.”

Hutton was asked what types of repair operations are the hardest for her to approve.

“A sublet to a [dealer] that doesn’t include any documenta tion when the bill is $3,500,” Hut ton said. “It just says, ‘Calibration done.’ I need a little bit more than that. I’ll pay it, but give me a lit tle bit more information. And the shop should need it, too. Any time you sublet something, it’s on you, still. We’ll come back to you, not to them.”

Collision repairers on the pan el were asked what operations they most struggle to get approved for payment.

shop involving the same Lexus ve hicle, with virtually the same dam age and the same insurer involved. Shortly after the shop completed the first $17,000 repair to the vehicle, the customer hit a deer, resulting in similar damage and a $19,000 bill.

“With the first repair, there was a short-pay of about $2,500, and on

the second repair there was a shortpay of about $2,500,” Wagner said. “But items that the insurer said on the first claim they would never pay, got paid on the second claim, no problem. And vice versa. It just seems like they reach a quitting point [when reviewing a claim], and decide, ‘That’s good enough.’”

Wagner also drew applause at CIC when he challenged the es timating system providers to do a better job including small and onetime-use parts often needed during repairs in their systems.

“Clips, O-rings, screws are parts, and they need to be in the da tabase,” Wagner said. “If you want to talk about the one thing that abso lutely irritates me to no end, it’s all the time I have to spend digging to try to find all those parts.”

Wagner said his shop recently

suggested during the CIC Estimat ing Committee panel discussion. “And continue the thread. It keeps them informed and, believe it or not, when I was on the shop side, I got paid for most everything I did because I kept [the customer] in

Panelist Rob Wagner of Rob Wagner Auto Body in Pittsburgh said he was “blown away” by Hutton’s suggestion.

“We need to invest in cloning technology,” Wagner said of Hutton, drawing laughter. “Because that’s literally something that’s created friction between me and appraisers before. It’s, ‘What are you doing talking to the customer about this?’ But it’s their car.”

Insurer Estimate Not a Repair Plan

Hutton also emphasized there’s a clear difference between an insurer estimate and a repair plan.

“When I send my estimates out,

“Safety inspections. It’s getting easier, but that’s definitely one,” Wagner said. “If you have structur al damage on a Subaru and you’re writing to take the whole interior apart, and you have a bill-payer that’s not used to seeing that, that’s probably going to freak them out.”

Panelist Erin Solis of the Cer tified Collision Group referred back to Wagner’s reference to cloning.

“You want to clone them, but the rest of us want to clone you,” she told Wagner. “Because part of the reason why you can’t get paid for the R&I of the steering column on a Subaru when you have to measure it could be because you’re the only one in your market doing it.

“There are still a lot of repairers not doing the safety inspections, and I hear from shops all the time they are getting push back because [they are told] no one else in their market is doing it.”

Claims Handling Inconsistency

Wagner said one of his frustrations with how auto claims are adjusted is the inconsistency in what proce dures get approved.

He pointed to two claims at his

Connie Hutton of

See

by John Yoswick

Representatives of several automo tive paint companies on a CIECA webcast this summer cautioned that, like nearly every other aspect of collision repair, ADAS will im pact refinishing.

“Colors that are formulated with high metallic content, me tallic flake, can be a problem for radar and lidar, so that’s one area in the next three years that will be impacting actual colors,” said Dan Benton, global product director of color marketing for Axalta Coating Systems.

“It’s becoming much more important to follow the refinish procedures, just like we talk about following OEM repair procedures,” said Jeff Wildman, manager of OEM and industry relations for BASF North America. “You need to do the same thing with paint, be cause it really is a functional part of the safety systems.

“In some cases, especially with some of the translucent colors, we may be looking to reflect off the primer behind the color, rather than

the color of the vehicle,” Wildman said. “If you’re not applying the right color of primer, or if you’re applying too much base coat, that may not operate properly. I’ve

of electric vehicles in order to help keep the interior cooler; the goal is to reduce air conditioning use to help maintain battery range. What that could mean in terms of refin ishing isn’t yet known, Wildman said.

Just as environmental issues have driven the development of waterborne primers and base coats, he said, waterborne clears are being used in other markets and other in dustries.

SEMA Scholarship Fund Winners Announced

The SEMA Memorial Scholarship Fund issued a total of $297,250 in scholarships and loan forgiveness awards to help 119 individuals who currently work for, or are planning to pursue careers in, the automotive aftermarket industry.

worked with a lot of painters who apply one extra coat, just to make sure they get coverage. Well, that one extra coat may cause a radar sensor not to work. So you really need to follow those procedures.”

Wildman also said it’s likely shops will at some point have to invest in some equipment changes in their paint department, but the “when” and “what” aren’t yet clear.

He said paint manufacturers are working, for example, on fin ishes that will reflect more heat off

“We’ll see those in our indus try at some point,” Wildman said. “I don’t know when exactly, but they’re coming. When those come out, then I can tell you what equip ment you will need for them.”

Similarly, UV primers require only a small UV light. But if UV clears begin to be used, he said, that too would require equipment changes in body shop paint depart ments. E-Newsletter.

The winners include 103 stu dents who received scholarships ranging from $1,000 to $5,000, and 16 employees of SEMA-mem ber companies who received loan forgiveness awards to help pay off student loans.

The SEMA Memorial Schol arship Program was established in 1984 to help support the future of the automotive aftermarket indus try. Since its inception, more than $3 million has been awarded to de serving students. One of the prima ry criteria for scholarship recipients is that the winner must have clearly demonstrated a passion for the au tomotive industry.

The online application for next year’s program will open in January at www.sema.org/scholar ships.

Source: SEMA

by Steven Loveday , InsideEVs

Automakers already made it clear the rules that will be put into law thanks to the Inflation Reduction Act will likely cripple EV produc ers long before promoting them.

This is because the U.S. sim ply doesn’t have the battery ma terial mining operations in place needed for the growing number of EVs on the road today. Now, the CEO of Piedmont Lithium is chim ing in.

For background, the new U.S. federal electric vehicle tax cred it has strict requirements related not only to the EVs being manu factured in North America, but also to where the materials are sourced from. More specifically, the EVs’ batteries must be made with ma terials sourced domestically, or from a country that has a free trade agreement with the U.S.

The rules aren’t as strict ini tially, but by 2026, vehicles will need 80% of critical materials to be sourced based on the rules.

Having rules that help make the U.S. less reliant on other coun

tries is arguably a positive. How ever, it’s going to take some time for the country to catch up when it comes to lithium extraction and

Lithium probably has a pretty sol id grasp of the supply and demand issues related to battery materials. Moreover, as we continue to add more electric cars to the mix, the materials will become more scarce.

In the meantime, companies are trying to do what they can to find solutions, but there simply ar en’t enough facilities or workers to make anything happen immedi ately. This is all contributing to the fact that lack of supply and grow ing demand are causing battery material prices to rise when we have been repeatedly promised EV batteries are going to get cheaper over time.

Piedmont Lithium is one of only a few lithium mining compa nies in the U.S. It has already an nounced plans to begin construc tion on a new lithium processing facility in Tennessee in 2023. It also has another similar project planned for North Carolina.

“The world has changed,” Phillips said. “We’re now in an era where everyone’s going to want an electric car. The car companies can’t make them fast enough, and people are now looking for the lith ium they need for the batteries to go in those electric cars.”

processing. “Yes, we’ll [eventually] have enough, but not by that time,” Pied mont Lithium CEO Keith Phillips told Yahoo Finance Live in a recent interview. “There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] produc tion in the world by 2035.”

While we never suggest rely ing on one single individual to tell it how it is, the CEO of Piedmont

Despite the challenges that lie ahead, President Joe Biden has set a goal that all new cars sold in the U.S. by 2030 must be electric cars. To encourage people to make the switch, they’ll be afforded a credit of up to $7,500. However, once the new rules officially kick in, most EVs sold in the U.S. will no longer be eligible for a credit. It will take time for automakers to put the right pieces in place to ensure their elec tric vehicles are eligible.

Phillips is looking at a very long road ahead. He told Yahoo the U.S. has a very slow permitting process, which makes matters even worse. China continues to domi nate the industry, and Australia and Chile are the largest lithium pro ducers in the world.

Phillips noted lithium-related projects get permitted in Austra lia in less than a year, while it has taken as many as eight years in the U.S., though some permits only took two years, which is still way too long.

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NHRA Champion Antron Brown Warns Congress Motorsports at Risk

by SEMA Editors

Just days after winning the NHRA Top Fuel Race in Indianapolis, Antron Brown made his way to Washington, D.C., to urge Con gress to pass the SEMA-supported Recognizing the Protection of Mo torsports (RPM) Act.

On Sept. 7, the three-time Top Fuel world champion, who began his racing career nearly 40 years ago, appeared before Congress to share personal stories about the need for federal law to protect grassroots racing and tens of thou sands of jobs in the motorsports parts industry.

With his two sons and wife at his side, Brown shared how motor sports taught him to set goals, work hard to achieve them and other im portant life lessons.

Representing a four-genera tion family of racing professionals, Brown talked about how he began racing motorcycles at the age of 4, has enjoyed a successful career with 70 NHRA wins and became a team owner earlier this year. He continues to support and promote the NHRA to the community and youth groups, relaying the origins of the organization that was formed in 1951 to get hot rodders safely off the streets and onto the track.

“Americans all over the coun try enjoy the hobby of modify ing vehicles into racecars,” said U.S. Sen. Shelley Moore Capito, R-WV, ranking member of the Sen ate Committee on Environment and Public Works. “The bipartisan RPM Act would clarify that vehicles to be used solely for competition are not to be treated like the cars that drive on our nation’s roads. This legisla tion would ensure small businesses that help hobbyists who transition vehicles into racecars, which are not driven on the roads, are not un fairly punished or targeted through EPA enforcement.

“It was a pleasure to welcome champion driver Antron Brown to

day and hear his life’s story, which reinforces how the RPM Act would protect the future of motorsports by making clear those who want to pursue their passion can affordably do so without fear of Washington bureaucrats,” Capito said.

though the ruling was never final ized, the EPA maintains its position that such conversions are not legal and continues to enforce against the production and sale of high-perfor mance parts.

Brown emphasized during his testimony the RPM Act is focused solely on dedicated race vehicles that are trailered to and from the racetrack. Opponents to the RPM Act acknowledged during the Sen ate hearing that such vehicles do not have a measurable or meaning ful impact on the environment.

federal Clean Air Act.

Capito is amongst the 31 bipar tisan co-sponsors of the RPM Act. First introduced in 2016, the bipar tisan bill would enshrine in federal law that it is legal to modify street vehicles into dedicated race vehi cles.

“Racing is much more than just a pastime for me,” said Brown. “I have countless fond childhood memories and have learned many life lessons at the racetrack. I have built a life on the track and am building a business through AB Motorsports. I feel strongly that we must keep the path to entry into motorsports accessible to future racers.”

Brown explained that for am ateur racers, modifying production vehicles is the only cost-effective way to get into racing. He testified the converted motorcycle that he began racing cost about $5,000; a purpose-built vehicle would have been 10 times that amount.

This practice of converting street vehicles into dedicated race vehicles had gone unquestioned until 2015 when the U.S. Environ mental Protection Agency (EPA) issued a draft ruling stating it is not legal to convert production vehicles into dedicated race vehicles. Al

“Racing is important to many Arizonans and it’s a part of our state’s legacy,” said U.S. Sen. Mark Kelly, D-AZ. “The RPM Act will help provide certainty to Arizona’s amateur racers and auto mechanics from EPA regulations, which could harm their ability to enjoy the hob by of motorsport.”

The RPM Act would not im pede on the EPA’s ability to en force clean air laws. Vehicles driven on public streets would continue to be governed by the

“For nearly 45 years, the Clean Air Act did not apply to dedicated race vehicles. The EPA’s recent in terpretation of the law has thrown the motorsports industry into a state of uncertainty,” said Mike Spag nola, SEMA president and CEO. “Now that the Senate Environment and Public Works Committee has held a hearing on the RPM Act, we urge the committee to schedule a vote on the bill. SEMA is urging all racers, motorsports businesses and fans to ask their elected officials to support and pass the RPM Act.

“Racers and small businesses that manufacture, distribute and sell race parts have waited long enough. It’s time to pass the RPM Act and give the racing community the clarity it needs and deserves,” said Spagnola.

The SaveOurRacecars.com website has resources to help iden tify and contact the appropriate pol icymakers about the RPM Act.

Source: SEMA

NHRA driver Antron Brown advocates for the motorsports industry by testifying before the U S Committee on Environment and Public Works in Washington, D C , on Sept 7

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Cost of Car Ownership in the U.S. Increases 5%

doxo, a web and mobile bill pay ser vice, on Aug. 24 released two new doxoINSIGHTS reports for 2022, revealing the cost of car ownership has increased 5% year over year to $5,722.

The report also revealed Amer icans as a whole spend $743 billion annually, on auto loans and auto in surance combined. A statistical anal ysis of actual household payments toward auto loans and auto insur ance was used to size the market and amount spent per household across 97% of U.S. ZIP codes.

es up.

Simultaneously, inflation is im pacting not only auto purchasers, but insurers who are passing the more expensive cost of vehicle repair and replacement on to consumers.

The 5% year over year increase in loan and insurance costs that doxo tracks represents only the fixed cost of ownership and doesn’t include the substantial increases that have occurred over the past year with re gard to the variable cost of fuel.

“The last few years created a bit of a perfect storm to increase the

different service categories. By in corporating tens of millions of bill payments across 97% of U.S. ZIP codes and all U.S. income and re gional demographic segments, the U.S. Auto Loans and Auto Insurance Market Size and Household Spend ing Reports represent a true and direct representation of what Amer icans actually pay for their auto re lated bills.

Each report provides a compre hensive look into the auto loan and auto insurance bill pay market, with a deep dive into category market size and average spend at the na tional, state and regional level. Key findings include:

Cost of Car Ownership in the U.S.

Americans spend a total of $743 billion dollars a year on auto loans and auto insurance

The average annual cost per household is $5,722 a year for both auto loans and auto insurance

Auto Loans Market Size and Household Spending Snapshot

Total Market Size: $493 billion spent per year

Average Monthly/Annual Cost: $433 spent per month; $5,196 spent per year

Percent of Households: 73% of U.S. households pay auto loans

Average Annual Cost per U.S. Household: $3,793 per year

Percent of Annual Income: Auto loan bills amount to 8% of consumers’ income per year

Auto Insurance Market Size and Household Spending Snapshot

Total Market Size: $250 billion spent per year

Average Monthly/Annual Cost: $196 spent per month; $2,352 spent per year

Percent of Households: 82% of U.S. households pay auto insurance

Average Annual Cost per U.S. Household: $1,929 per year

Percent of Annual Income: Auto insurance bills amount to 4% of consumers’ income per year

Source: doxo

The 2022 U.S. Auto Loan Mar ket Size and Household Spending Report and the 2022 U.S. Auto In surance Market Size and Household Spending Report found U.S. House holds with auto loan and auto insur ance bills spend $629 per month, or $7,548 per year or $5,722 when averaging across all U.S. house holds.

The reports also break out the U.S. household spending market size, percentage of households that pay each bill, and average monthly and annual bill pay costs by state, largest metro areas and cities based on population.

A number of factors have com bined to drive up costs across both categories. Interest rates on auto loans are at a near-peak high over the last eight years, with supply chain issues and limited inventory pushing both new and used car pric

cost of car ownership across the cat egory. Driving went back to pre-pan demic rates, and so did the accidents and insurance rates associated with it, just as the cost of buying a car and buying gas were both on the rise,” said Jim Kreyenhagen, vice pres ident marketing and consumer ser vices, doxo. “doxoINSIGHTS gives consumers transparency into the av erage costs in both auto loans and in surance so they can make informed decisions about their own finances, whether that’s negotiating a better rate with their insurance company or rightsizing their auto loan with their budget.”

U.S. Auto Loans and Auto Insurance Market Size and Household Spend ing Reports doxo’s bill pay service enables allin-one bill pay to more than 120,000 providers across the country in 45

The MSO Symposium, an exclu sive one-day conference created by and for multi-shop owners and operators, will be held Oct. 31, the Monday before SEMA/ AAPEX, in Las Vegas.

opportunities for attendees during this event include a formal luncheon sponsored by Berkeley Capital Advisors, a refreshment break sponsored by Axalta Coating Systems and an exclusive industry reception sponsored by Repairify, from 5:15-6:30 pm.

Below is an overview of the MSO Symposium’s 2022 confer ence timeline and agenda:

Monday, Oct. 31 9:30–10:30 a.m.: Networking Breakfast, Sponsor Showcase 10:30–10:45 a.m.: Welcome and Introductions

4–4:30 p.m.: Electric Vehicles 4:30–5:15 p.m.: Artificial Intelli gence and New Technology 5:15–6:30 p.m.: Industry Recep tion

Those interested in register ing for the 2022 event are advised attendance is limited and one must qualify to attend. Those in vited to attend include multi-shop operators of all sizes, insurers, OEMs and single-location repair facilities with revenue exceeding $3 million in annual sales.

Developed by the Automo tive Service Association (ASA) and the MSO Symposium adviso ry board, the conference includes unique programming with insight on a diverse set of topics top-ofmind to the leadership of the in dustry’s most influential collision repair operators in North America and beyond.

The event begins at 9:30 a.m. PDT with a light breakfast, networking and vendor displays. Three additional networking

10:45–11:45 a.m.: Industry Macro & Micro Trends with Vincent Ro mans & CCC Intelligent Solutions 11:45–12:30 p.m.: Panel discus sion: Inclusion and Diversity 12:30–1:30 p.m.: Formal Lun cheon

1:30–2:15 p.m.: Panel discussion: Environmental, Social and Gover nance (ESG) & Why it Matters 2:15–3 p.m.: Economic Trends 3–3:30 p.m.: Labor Trends, Chal lenges and Opportunities 3:30–4 p.m.: Networking Break

To begin the registration ap plication process, go to the MSO Symposium’s website: www.mso symposium.com/register

Attendance by media per sonnel and equipment or service providers is available, but also limited. For additional informa tion visit msosymposium.com or send your questions or requests for sponsorship information to Jennie Lenk or Brian Nessen.

Source: MSO Symposium

www.autobodynews.com

Improve Estimating

was repairing a vandalized Jeep and needed to disassemble the dash to re move broken glass. The two O-rings needed as part of that work weren’t in his shop’s estimating system, so he had to locate them in OEConnec tion’s RepairLink, then manually enter them into his estimate.

“Luckily the O-rings were $24.30 each, so we’re at least mak ing a little more money than we would on a $3 O-ring,” he said. “But it still can make my blood boil when I just spent 20 minutes to sell $50 worth of O-rings that should have just been a simple click in the [esti mating] system.”

Panel moderator Danny Gre dinberg of the Database Enhance ment Gateway encouraged the in dustry to report such missing parts to his organization, something Wag ner does regularly.

“Submit that inquiry, and we’ll work with the information providers to hopefully get that added in there,” Gredinberg said.

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Used Car Market Finally Reaches Peak, as Prices Fall After 2 Record-Breaking

Years of Inflation

After used car prices rose to alltime highs amid the COVID-19 pandemic and resulting supply chain disruptions and even held firm amid multiple interest rate hikes this year the market has finally peaked, according to the monthly Return to Normal in dex from leading car shopping app CoPilot.

Overall used car prices fell in August to an average of $33,414, as dealers dropped prices across the board to maintain sales mo mentum. Prices are now $8,497 or 34% above projected normal levels, a premium that fell by a staggering 9% from July, the larg est-ever monthly drop for CoPi lot’s index.

Most segments and brands have dropped in price after reach ing record highs in recent months.

CoPilot’s Return to Normal Index shows the price premium, or the differential between current listing prices and what the same used cars would have been worth, if not for the COVID-19 pandemic and other unprecedented events of the past two years. This provides a unique measure of the relative in flated value of vehicles for Ameri can consumers, and a new econom ic barometer for the retail used car market.

Across all age brackets, prices declined in August, and this trend was seen most prominently in the prices of 1- to 3-year-old vehi cles. While, for much of this year, nearly-new car prices remained near all-time highs, as consumers turned to them as a substitute amid record-low new car inventory, they are now falling the fastest of any age bracket, down $715, or 2%, to $41,545 in August.

The Price Premium for these cars fell the most of any age brack et, dropping 7%, from $11,944, or 39%, in July, to $11,097, or 36%, in August.

Used SUVs and pickup trucks remain the segments rela tively closest to returning to nor mal pricing levels, with SUVs priced $8,092, or 23%, above normal, and pickup trucks list

ed $8,638, or 26%, above nor mal. Average used SUV prices now $43,222 have fallen for the past six months, while used pickup truck prices now $41,469 have seen month-over-month declines for the past four months.

Electric and hybrid vehicles are also reflecting this broader trend within the used car mar ket. As gas prices continued their steady decline in August, used electric and hybrid vehicle pric es which had skyrocketed along with fuel costs in the spring fell dramatically. Used electric vehicle prices declined by 4% from July to August, to an average of $64,306, while used hybrid prices fell by 3%, to $47,790.

Additionally, used Teslas of ten seen as a proxy for the electric vehicle market dropped in price by 4%, or just over $3,000, to an average of $67,324. After peaking at an all-time high of 50% above projected normal in June, Tesla prices are starting to show early signs of softening, with prices de clining in August to 43% above normal levels.

“After years of astronomical price hikes in the used car market, relief may finally be imminent,” said CoPilot CEO and founder Pat Ryan. “While we’re still a long way from normal prices in absolute terms, across the vast majority of vehicle segments and brands, it’s clear that prices have fallen off their record highs. Consumers who have been waiting out this unprec edented market for months, or even years, should be ready to finally make their move.

“Cars are still moving fast on dealer lots, but as days-to-sale ticks up in recent months, dealers are dropping prices by hundreds of dollars for nearly-new cars to keep sales moving in the face of rising interest rates and other eco nomic headwinds that dampen demand,” Ryan added. “The story is evolving, but we recommend shop pers should prepare to strike when they find a car that matches their needs, and be close ly looking out for the moment soon when prices may fall off even more substan tially. In many cases, buyers will already find they finally have more negotiating leverage at the dealer.”

Some brands, however, con tinued to hold firmly near alltime high prices in August. On

average, foreign brands were priced $8,105, or 44%, above projected normal levels, a slight increase from last month’s Price Premium of $8,012 above normal. Used Volkswagens had the high est Price Premium among foreign brands, averaging $9,338, or a massive 57%, above normal pric ing levels.

“While most vehicle segments and brands have fallen off their peak prices, some still are lingering near their record-high prices, so it pays to explore alternative brands to find the best value,” Ryan said. “For people with a used car to sell, now is the time to make a move and sell that vehicle at a profit, in order to capitalize on these oncein-a-lifetime market conditions, before prices fall much further on your trade-in.”

Source: CoPilot

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Mitchell on Sept. 13 announced en hancements to Mitchell Cloud Esti mating that can simplify the collision damage appraisal process for battery electric vehicles (BEVs).

and appraiser efficiency.

The enhancements to Mitchell Cloud Estimating will address these challenges by incorporating new functionality not available in other appraisal platforms. This includes tools designed to simplify the esti mating process and support proper, safe repair.

Among those new tools are EV-specific:

industry-standard definitions for EV battery capacity and motor size that appear on the vehicle selection screen and under the vehicle descrip tion detail on the printed estimate.

for damage appraisals on all vehicle types passenger, commercial and specialty is a real game changer.”

These enhancements which come as the electric vehicle (EV) sector is bracing for unprecedented growth establish Mitchell’s position as a trailblazer in the development of advanced appraisal and claims man agement solutions for automotive in surance carriers and collision repairers.

Historically, estimating plat forms have not accounted for the design differences between EVs and their internal combustion engine (ICE) counterparts. This can create challenges for insurance apprais ers and collision repairers. Without EV-specific parts and categories, they have to write BEV damage as sessments using ICE alternatives, which can impact estimate accuracy

Vehicle Types: Once the Vehicle Identification Number (VIN) is de coded, Mitchell Cloud Estimating automatically updates the user in terface, making it specific to BEVs instead of ICE-powered passenger, commercial and specialty vehicles.

Part Categories: New part catego ries dynamically surface the relevant parts data in a way that specifically relates to EVs.

Data Organization: EV data is now consistently organized, helping ap praisers easily locate the information needed to complete the estimate.

Qualifiers: Mitchell has established

According to Bloomberg, the U.S. surpassed 5% of new car sales pow ered only by electricity this summer, a critical tipping point that signals the start of mass EV adoption. In Canada, IHS Markit reported one in 20 new vehicle registrations in 2021 were for BEVs and plug-in hybrid electric vehicles (PHEVs), a jump of nearly 6% from 2020.

With some car manufactur ers shifting to all-electric fleets, EVs will inevitably appear in a greater number of collision claims going forward.

“We’re seeing more EVs in the shop than ever before,” said Jeff Baggett, owner of Classic Car Mo toring, Inc., an EV-certified collision repair facility for Mercedes, Tesla and Rivian. “Having an estimating platform that accounts for the differ ences in EV design and construction is really going to save us time. And being able to use that same platform

“Gas prices are accelerating EV adoption and driving one in four Americans to say that they will likely buy an EV the next time they purchase an automobile. This makes having a damage appraisal platform that can support these vehicles crit ical,” said Debbie Day, executive vice president and general manager of Mitchell’s Auto Physical Dam age division. “Mitchell continues to lead the industry in the development of ground-breaking technology that streamlines the automotive claims process and supports the safe return of both EV and ICE vehicle owners to the road.”

The patent-pending EV en hancements to Mitchell Cloud Es timating will be available later this year.

For more information on the company’s cloud-based appraisal solution, visit www.mitchell.com/ solutions/auto-physical-damage/esti mating/cloud

Source: Mitchell

Consistently voted as the No. 1 destination by SEMA Show buyers and media, the 2022 New Products Showcase will expand to include two new product categories.

Showgoers will find products related to electric vehicles (EV) and Advanced Driver Assistance Sys tems (ADAS) along with products in 16 other categories, in what is the world’s largest display of new auto motive aftermarket products.

Accessible exclusively to SEMA Showgoers on Nov. 1-4, the New Products Showcase is the auto motive aftermarket industry’s most comprehensive collection of new and trending products. SEMA Show attendees visit the area to discover and see parts and accessories before they hit the market.

A Featured Products component includes items that may not qualify as new; the product may have been on the market for more than a year but is amongst an exhibitor’s top products.

“Through the SEMA Show New Products Showcase, buyers, retailers and distributors can easily discover and learn about all the hot products

that they may want to carry,” said Tom Gattuso, SEMA vice president of events. “They will find details about the products, including the exhibitor’s booth number. They can then connect directly with the man ufacturer on the Show floor to learn more. It’s no surprise that SEMA Show buyers rely on the New Prod ucts Showcase to help them stock their shelves.”

Details on all the products from the Showcase are also included in the SEMA Show mobile app, giving attendees a year-round resource to help them after the Show. The mo bile app’s product scanning feature enables attendees to flag items of in terest and create custom lists of note worthy products. Only at the SEMA Show in Las Vegas will attendees be able to connect with all product ex perts from the exhibiting companies for quality one-on-one discussions, demos and presentations.

Participation in the New Prod ucts Showcase, available as a ben efit to SEMA Show exhibitors, is easy and affordable. All exhibitors qualify to submit one product entry at no cost. Subsequent entries range

from $75-$150 each, depending on the submission date, and there is no limit to the number of entries. New this year is an on-site freight delivery service to make it easier than ever for exhibitors in West, North and Central Halls to participate.

Through the new service, exhib itors drop off their products at a near by designated area in their respective hall, and then coordinate to meet the product at the New Products CheckIn area in South Hall.

Qualifying products may also be recognized as a Best New Prod uct. Winners and runner-ups in 18 categories including the new EV and ADAS categories will be an nounced and presented at the Kickoff Breakfast on Nov. 1, just before the official opening of the SEMA Show. Additionally, all products in the Showcase are professionally photo graphed. The photos are often used by outside media and helps brand awareness.

Source: SEMA Show New Products Showcase Expands

with products in the Showcase see more buyers in their booths and re ceive more media coverage than those who do not participate in the Showcase.”

A nearby transportation hub that includes taxi and shuttle drop-off, as well as an entry point for the Las Ve gas Convention Center underground tunnel, makes it easy for attendees to visit the Showcase. More than 2,000 product entries are expected to be in cluded in this year’s Showcase.

Exhibitors can enter the SEMA Show New Products Showcase by visiting www.semashow.com/newproducts-rules. To register to attend the SEMA Show, visit www.sema show.com/register.

Driven Brands Holdings Inc. on Sept. 8 reported the acquisition of Auto Glass Fitters, making it the second largest player in the U.S. auto glass repair, replacement and calibration category after entering the U.S. market in early fiscal 2022.

This further densifies the com pany’s East Coast presence in auto glass services and significantly adds to its mobile capabilities.

The $5 billion and growing auto glass services market has been a strategic growth focus for Driven Brands, and this acquisition en hances its presence in this highly fragmented, needs-based category.

Leveraging operational exper tise from its Canadian auto glass servicing business and its existing blueprint for growth across seg ments like Quick Lube and Car Wash, the company has used its deep expertise in M&A to kickstart growth in the U.S. auto glass ser vicing market. At the same time, Driven Brands has built a robust pipeline of greenfield glass loca tions, using its proven playbook in real estate and development.

With the addition of Auto

Glass Fitters, the company now serves customers across more than 150 locations and more than 600 mobile units across 41 states after entering the U.S. market less than a year ago.

“Exhibitors that participate in the New Products Showcase report much higher success than those that do not participate,” said Gattuso. “Research tells us that exhibitors

The four-day SEMA Show is a trade-only event that connects man ufacturers of automotive specialty products with buyers from all over the world. Taking place in Las Ve gas, NV, exhibitors come to the an nual event to debut new products that enhance the performance, styling and functionality of cars, trucks and SUVs.

Now part of the broader Driv en Brands glass portfolio, the Auto Glass Fitters business will have access to robust shared service capabilities like data analytics, di rect-to-consumer marketing, pro curement and commercial customer relationship management, includ ing the company’s insurance and fleet relationships.

“We have significant momen tum across our auto glass service business, propelling us to quickly

become one of the dominant players in the category. Auto Glass Fitters has been on an incredible growth trajectory growing sales 25% yearover-year with over 100% growth in glass calibration and we’re thrilled to add another phenomenal team to our growing Driven Glass family,” said Michael Macaluso, EVP and group president of paint, collision and glass.

“Glass continues to be one of our focus areas of growth given its highly compelling economics including sales, 4-Wall EBITDA margins and cash-on-cash returns,” Macaluso said. “As we scale our already rapidly growing national presence, we have a massive oppor tunity to unlock the B2B potential by extending our glass services to our existing insurance, fleet and other commercial relationships furthering the already compelling economics of this business.”

Auto Glass Fitters has been in business for more than a decade and through its commitment to profes sional and efficient repairs, estab lished a strong East Coast presence, along with service coverage in more

than 35 states through a combina tion of service locations and mobile units.

“I’m deeply grateful for all the support our Auto Glass Fitters fam ily has provided to the many com munities we serve and for helping grow the business to become what it is today. I am humbled to see how much we have accomplished,” said Auto Glass Fitters founder Richard Rutta. “I’m excited to see what our amazing team can achieve with the resources and capabilities that Driven Brands will bring to the business.”

“We’ve demonstrated our ability to build and scale the glass business, becoming a leader in the category in such a short period, fol lowing our playbook for growth,” said Macaluso. “Once we further scale our glass business, we will be the only player in the category to provide a nationwide footprint for paint, collision and glass services together.”

Visit DrivenBrands.com for more information.

Source: Driven Brands