November 2012 Western Edition

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California ‘Key is in the Mail’ Bill Vetoed, CAWA and AAIA Claim Credit Two industry organizations, CAWA (California, Nevada, Arizona Automotive Wholesalers Association) and the AAIA (Automotive After Market Industry Association) are claiming credit for stopping a bill aimed at restricting access to certain aftermarket parts.

On Sept. 26, the two organizations claimed a victory for consumers and the automotive aftermarket alike as a bill aimed at attempting to lock out the industry from information relative to key replacement in certain automobiles was vetoed by Governor Jerry Brown.

SB 750, carried by Sen. Hernandez, which was sponsored by BMW, sought to exempt automakers from providing electronic key code infor-

mation to locksmiths, requiring motorists to contact the automaker to get a replacement key for their vehicle.

SB 750 would have deleted the January 1, 2013, sunset provision exempting automakers from providing electronic key code information to locksmiths so long as the manufacturer operates a 24 hours a day, 7 day a week (24/7) request line whereby vehicle owners can request replacement keys and receive them within one day of the request or via the next overnight delivery.

Arguing in support of this bill, the sponsor, BMW, noted that the January 1, 2013, sunset provision was included to allow BMW to continue the process

VOL. 30 ISSUE 11 NOVEMBER 2012

NACE 2012 in New Orleans

Dick Cross, keynote speaker at the opening session, demonstrates the pyramid top of the organization. See story p. 26.

A New Orleans-style National Anthem kicked off the keynote address. New Orleans appears to have recovered its pre-Katrina spirit.

CARS chair Bill Moss (l) and NACE chair, Ron Nagy, address the opening session.

Mike Dolabi (l) of National Autobody Parts Warehouse and Terry Fortner of LKQ on the Parts Panel discussion.

Attendance was down on the show floor but some booths attracted record business.

ALLDATA’s Dan Espersen imparts his 37 plus years of experience in “OEM Best Practices”.

AEII’s Tony Passwater presented on designing and implementing a complete repair plan.

The Autobody News staff doing its part to cover the industry.

See Key Bill Vetoed, Page 16

Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’

Autobody News asked former State Farm Estimatics Team Manager Steve Plier about his thoughts on PartsTrader earlier this month. Plier worked for State Farm for more than 22 years, starting out in 1987 as a property damage claim representative handling auto claims, and in 1993, he moved into a supervisory position where he spent the last 13 years of his State Farm career as an estimatics team manager. Today, Steve Plier is president of Consumer See Steve Plier, Page 36

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2 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

COLUMNS Attanasio: The Original Social Media, and Most Important, is the Phone Call . . . . . . . 44 Franklin: The New Co-Op Marketing . . . . . . . 40 Gesterkamp: E-Coated Parts Procedure . . . . 24 Sisk: The NitroTech Spray Generator Controls the Uncontrollable. . . . . . . . . . . . 18 Yoswick: NACE Keynote Speech Focuses on Thinking about Business . . . . . . . . . . . 26 NATIONAL American Honda Launches ProFirst Shop Recognition Program . . . . . . . . . . . . 19 Automaker, OEM and Recall News . . . . . . . . 34 BASF Showcases Newest Additions to VisionPlus Online Tools at NACE . . . . . . . . 57 DEG & the Keys to Successful Estimating Presented in New Orleans. . . . . . . . . . . . . 57 Dykstra Automotive Institute Survey Identifies Broad Industry Concerns in 2013 . . . . . . . 42 Esurance recognizes Three CARSTAR shops with awards . . . . . . . . . . . . . . . . . . . . . . . 56 Greg Coccaro Wins Significant Appeal from Progressive Insurance . . . . . . . . . . . 53 Honda Develops New Welding Technology, UHSS Structure for 2013 Accord . . . . . . . 20 How to be a ‘Courageous Leader’ Presented at NACE . . . . . . . . . . . . . . . . . . 56 Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends. . . . . . . . . . . . 43 John Shoemaker Coaches Shops to ‘Negotiate for Success’ . . . . . . . . . . . . 48 Martin Senour Kicks Off 4Q Training Program . 56 Matrix Electronic Measuring, Inc. Awarded Two Patents . . . . . . . . . . . . . . . . 20 NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE . . . . . . . . . . . . . . . . . . . 58 NACE 2012 in New Orleans . . . . . . . . . . . . . . 1 NACE Sees Fewer People, But Quality Events. 28 PartsTrader Coverage ASA’s Caspersen Comments on PartsTrader Meetings . . . . . . . . . . . . . . . . . 3 Former State Farm Claims Rep, Steve Plier, Now Consultant, Talks ‘PartsTrader’ . . . . . . 1 George Avery Spoke on PartsTrader to GCIA Sept. 20 . . . . . . . . . . . . . . . . . . . 54 PartsTrader Reduces Minimum Quote Time to 30 mins . . . . . . . . . . . . . . . 40

Repairers are responsible for recommending suppliers and determining their default OEM and preferred OEM suppliers. Once a Select Service shop requests a quote on an estimate, the quoting request is sent to all suppliers whose application “preferences” match the content of the estimate. Suppliers, just like repairers, are able to set preferences. Suppliers are also responsible for setting their market area, parts type, and rates of delivery. Meeting attendees questioned why State Farm is doing this, what happens to repairers’ parts profits if this goes into effect, where is the efficiency, what State Farm sees as the future for collision claims and the size of their Select Service network—and the reigning question overall—where is the benefit to the collision repairers participating in the pilot?

“We continue to present to State Farm the concerns of ASA members.

If State Farm cannot provide data showing how this application benefits collision repairers (operationally/financially), ASA will respond appropriately on behalf of repairers,” said Caspersen. “ASA has provided State Farm with a timeline for data and will be meeting with State Farm to assess future actions.”

Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Melanie Anderson Contributing Writers: Tom Franklin, David Brown, John Yoswick, Rich Evans, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Jay Lukes (800) 699-8251 Sales Assistant: Kristy Navarro Art Director: Rodolfo Garcia

Audi Wholesale Parts Dealers . . . . .60 Auto Data Labels . . . . . . . . . . . . . . . .7 Automotive ID . . . . . . . . . . . . . . . . . .16 BASF . . . . . . . . . . . . . . . . . . . . . . . . .5 BMW Wholesale Parts Dealers . . . .45 California Superstores . . . . . . . . . . .21 Capitol Mazda . . . . . . . . . . . . . . . . .28 Champion Pneumatic . . . . . . . . . . .63 Chief Automotive . . . . . . . . . . . . . . . .8 Classifieds . . . . . . . . . . . . . . . . . . . .62 Completes Plus . . . . . . . . . . . . . . . .15 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .25 Drew Hyundai . . . . . . . . . . . . . . . . .22 Elk Grove Toyota . . . . . . . . . . . . . . .44 Enterprise Rent-A-Car . . . . . . . . . . .40 Equalizer Industries . . . . . . . . . . . . .12 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .37 G & C Auto Body . . . . . . . . . . . . . . .20 Galpin Motors . . . . . . . . . . . . . .31, 39 Garmat USA . . . . . . . . . . . . . . . . . . . .6 Glenn E. Thomas Chrysler-JeepDodge . . . . . . . . . . . . . . . . . . . . .13 GM Wholesale Parts Dealers . . . . . .49 H & S Autoshot . . . . . . . . . . . . . . . . .4 Haydell . . . . . . . . . . . . . . . . . . . . . . .18 Henderson Chevrolet . . . . . . . . . . . .26 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .51 Kearny Mesa Subaru-Hyundai . . . . .38 Kia Motors Wholesale Parts Dealers .41

Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Permission to reproduce in any form the material published in Autobody News must be obtained in writing from the publisher. ©2012 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax www.autobodynews.com Email: news@autobodynews.com

Western

Tesla Unveils Solar Powered Charging Stations. 12 Thieves Use Hammer to Break into South Sacto Shop . . . . . . . . . . . . . . . . . . . 4 Three Arrested in Grass Valley Body Shop Burglary . . . . . . . . . . . . . . . . . . 4 Top 3 Body Shops Named in Orange County’s 19th Annual ‘Best of 2012’ Contest . . . . . . 9 Two Arrested in Shop Theft. . . . . . . . . . . . . . 15 Young’s House of Klear Opens Santa Ana Facility . . . . . . . . . . . . . . . . . . . 10

Reductions in parts profits was the biggest concern voiced by more than 125 collision repairers who attended two Automotive Service Associationsponsored meetings recently in Ohio centered around State Farm’s electronic parts ordering pilot.

The meetings were open to everyone in the collision repair industry at no charge. The first meeting was held in the Cleveland area Sept. 18; the second in the Cincinnati area Sept. 19.

Denise Caspersen, manager of ASA’s collision division, presented the elements of the pilot to date, reviewed industry concerns, and collected any additional questions, concerns and suggestions from attendees.

Repairers are concerned over the pilot’s inclusion of a discounted manufacturer’s suggested retail selling price (MSRP) column. Suppliers have the option to provide a discounted MSRP along with the margins of the part and the quote price. If a supplier elects to provide a discounted MSRP along with a quote for a part, it could result in lower profit margins on parts for the collision repair shop if that part is selected. State Farm stated in July that it does not ask for discounts on parts but if a supplier provides a discounted MSRP, this data is available to State Farm.

Indexof Advertisers

REGIONAL 15 Years of Successful Toying—But Will it Keep on Truckin’? . . . . . . . . . . . . . . . . . 52 Bodycraft Collision Hosts 8th Annual Golf Invitational . . . . . . . . . . . . . . . . . . . . . 4 CAA Orange County Chapter Meets on Regulations . . . . . . . . . . . . . . . . . . . . . 39 CAA Ventura Chapter Hosts Jack Molodanof and Micki Hazz. . . . . . . . . . . . . . . . . . . . . 49 Caliber Collision Doubles Size with New Redlands Digs . . . . . . . . . . . . . . . . . . 6 Caliber Collision Expands in LA; Opening 18th Center . . . . . . . . . . . . . . . . 10 California ‘Key is in the Mail’ Bill Vetoed, CAWA and AAIA Claim Credit . . . . . . . . . . . 1 Carroll Shelby Foundation Unveils Signature Program . . . . . . . . . . . . . . . . . . 16 CAWA Appoints Mike Eldard . . . . . . . . . . . . . 19 CAWA Appoints New Director . . . . . . . . . . . . 15 CAWA Hosts Buller at Annual SEMA Dinner . 12 CAWA Reports BAR Cracking Down on Fluid Flushers . . . . . . . . . . . . . . . . . . . 15 Cypress College Receives $50,000 in Makeover Tools, Equipment . . . . . . . . . . . 60 Di Giulo’s Management Award . . . . . . . . . . . . 4 Drew Auto Center Held Free Hands-On Seminar for First Responders . . . . . . . . . . 22 Driverless Car is ‘Science Fiction Becoming Reality’ . . . . . . . . . . . . . . . . . . 10 East Bay CAA Members Get Schooled at University of Toyota . . . . . . . . . . . . . . . 38 FinishMaster’s Industry Golf Tournament Celebrates 15 Years . . . . . . . . . . . . . . . . . 50 Fremont Mechanic John Donovan Memorialized . . . . . . . . . . . . . . . . . . . . . . 24 Glendale/Foothill CAA Chapter Previews Technology Pre-SEMA . . . . . . . . . . . . . . . 14 Google’s Driverless Cars Raise Safety and Privacy Concerns . . . . . . . . . . . . . . . 10 Koreatown (LA) Robbery . . . . . . . . . . . . . . . . 4 Long-time Oregon Body Shop Couple Sell to Kadel’s . . . . . . . . . . . . . . . . . . . . . . 8 Los Angeles County Sets National Teen Driver Safety Week in Honor of Teenaged Crash Victim . . . . . . . . . . . . . . . . 6 LV Police Seek H&R Suspect . . . . . . . . . . . . . 4 New Ford Dealership Opens in Juneau . . . . . . 8 Precision Collision Auto Body Hosts Emergency Extrication . . . . . . . . . . . . . . . . 9 Prosecutor: School District Schemed with Body Shop Owner . . . . . . . . . . . . . . . 12 Redding’s Accurate Gets U-Haul. . . . . . . . . . . 4 San Diego High School Opens New Tech Training Facility . . . . . . . . . . . . . . . . 46 Service King Closes on Auto Body World Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . 4 Service King in Deer Valley, AZ . . . . . . . . . . . 19 Shop Burns in Las Vegas . . . . . . . . . . . . . . . . 4 Shop Co-Owner Arrested in Disappearance of Partner. . . . . . . . . . . . . . . . . . . . . . . . . 15 Shops Help Victim of Road Rage Repair Car . . 6

ASA’s Caspersen Comments on PartsTrader Meetings

Levan Group, Inc. . . . . . . . . . . . . . .53 LKQ . . . . . . . . . . . . . . . . . . . . . . . . .59 Maita Subaru . . . . . . . . . . . . . . . . . .24 Malco . . . . . . . . . . . . . . . . . . . . . . . .15 Mazda Wholesale Parts Dealers . . .48 MINI Wholesale Parts Dealers . . . . .50 Mitsubishi Wholesale Parts Dealers .61 MOPAR Wholesale Parts Dealers . .29 Nick Alexander MINI . . . . . . . . . . . .64 Nick Alexander BMW . . . . . . . . . . . .17 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .35 North County Kia . . . . . . . . . . . . . . .36 PPG . . . . . . . . . . . . . . . . . . . . . . . . . .2 Pro-Spray . . . . . . . . . . . . . . . . . . . . .11 Reliable Automotive Equipment . . .14 Replica Plastics . . . . . . . . . . . . . . . .23 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .47 Safety Regulations . . . . . . . . . . . . . .10 SATA Spray Equipment . . . . . . . . . . .9 Shingle Springs Nissan-Subaru . . .30 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .42 Solution Finish . . . . . . . . . . . . . . . . .56 Subaru Wholesale Parts Dealers . . .55 That’s Included . . . . . . . . . . . . . . . .23 Timmons VW-Subaru . . . . . . . . . . . .43 Toyota Wholesale Parts Dealers . . .58 Volkswagen Wholesale Parts Dealers .52 Volvo Crash Wholesale Dealers . . .57 Weatherford BMW . . . . . . . . . . . . . .27 Wedge Clamp System . . . . . . . . . . .19

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 3

Service King Closes on Auto Body World Acquisition

Service King Collision Repair Centers has closed on its acquisition of Auto Body World Inc., an Arizona-based operator of eight repair facilities. Terms of the agreement were not disclosed.

With the acquisition, Service King said it is now the third largest collision repair organization in North America. The company now operates eight Auto Body World locations in Arizona and 51 Service King locations throughout Texas.

“We are very excited about Auto Body World joining the Service King Team,” said Mark Turner, president of Auto Body World. “Both companies believe that we’re a great match for each other in that we share very common cultures. While Service King brings national insurance relationships and financial strength, Auto Body World brings dominance in a new market, with a strong operations team and platform for rapid growth.”

The Carlyle Group recently purchased majority ownership of Service King to help the company initiate a national expansion effort. Auto Body World is Service King’s first acquisition outside of Texas, “but it's not our last,” said Chris Abraham, CEO of Service King.

Bodycraft Collision Hosts 8th Annual Golf Invitational

Bodycraft Collision Centers in the Sacramento, CA, area hosted their 8th Annual First Tee Golf Invitational on Sept. 10 at the Serrano Country Club in a benefit for The First Tee of Greater Sacramento (TFTGS). Bodycraft Collision Centers and event cosponsors have successfully raised more than $350,000 for The First Tee of Greater Sacramento over the past eight years.

The First Tee of Greater Sacramento evolved from the success of the Sacramento Area Youth Golf Association, and The First Tee’s programs have led the way with character education classes, youth golf clinics, programs for the disabled, and a competitive golf tour that has developed players for high school, college and professional golf programs.

Bodycraft Collision Centers hosted a sponsor reception featuring golf legend and honorary chairperson Tony Jacklin, which preceded the event on Sept. 9 at Mercedes Benz of El Dorado Hills. A post-tournament reception included speakers from TFTGS, including Louie Euer, who recently participated in the PGA sponsored Ryder Cup Outreach Program.

Di Giulo’s Management Award

Dino Di Giulio, of Body Best Collision in Sonoma, CA, shows off The Master of Shop Management award at the Management Success convention in Glendale, CA. It’s a national honor recognizing outstanding business performance. “The award is a result of our drive for continuous improvement,” he said. “We feel honored and thankful.

All I’m doing is making our business the best possible place for customers to take their cars for auto body repairs.

Dino and Trina Di Giulio

Three Arrested in Grass Valley Body Shop Burglary

Three suspects were quickly arrested after a burglary at an auto body shop in Grass Valley, CA. The suspects were arrested at a residence directly across the street from the scene of the alleged crime.

The suspects had scaled a fence and stolen items, including tools, equipment and stereos out of vehicles, said Capt. Rex Marks of the Grass Valley Police Department.

“We tied (that burglary) to several recent incidents in which we had suspects,” he said.

Eric Lester, 31, was arrested on suspicion of second-degree burglary and possession of stolen property.

Devon Howell, 24, was arrested on suspicion of having outstanding warrants and violating probation.

Thomas Bailes, 31, was arrested on suspicion of possessing drug paraphernalia and violating probation.

“We recovered all of the property from the (burglary),” Marks said.

“We are continuing to investigate their connection to other burglaries.”

LV Police Seek H&R Suspect

Las Vegas, NV, police are looking for a suspect in a hit and run crash that left one woman in critical condition.

The unidentified woman was walking across Fremont Street in the dark at night when she was hit, police said.

Police said a side mirror from the vehicle was found at the scene. Police have not been able to locate any witnesses.

Some good samaritans did stop and attempt to help the woman and keep her from being hit by another vehicle. “I’m telling you, people would not stop,” said Paige Romero.

4 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Thieves Use Hammer to Break into South Sacto Shop

Thieves hammered windows to break into a south Sacramento auto shop on Oct. 5 around 2 a.m. after cutting power to the business in an attempt to knock out the security system at California Auto Body on Power Inn Road just south of 14th Avenue. Once the security system was disabled, they smashed out a window and climbed inside. The suspect also apparently took a hammer to the wall inside the auto shop.

Fortunately, the security system had back-up batteries and an alarm company alerted the owner, who called police. By the time police got there, no one remainde inside. Although the alarm still sounded, the power outage did disable the security cameras. The shop owner said it did not look like anything was taken.

Shop Burns in Las Vegas

Firefighting crews battled a fire at an auto body shop in Las Vegas, NV, on Oct. 9. The fire was reported at about 9:30 p.m. on the 2100 block of North Decatur Boulevard, near West Lake Mead Boulevard. Firefighters responded to find flames and heavy smoke showing from the roof. The cause of the fire was not immediately clear.

Koreatown (LA) Robbery

An investigation is under way after an attempted robbery in Koreatown on the night of Oct. 19. The incident happened at the Grand Prix Auto Body shop on the 3100 block of West Pico Boulevard. Police responded to the business at about 8 p.m. after reports that it was in the process of being robbed. Several employees were inside, so the SWAT team was called to the scene but the suspects fled. It was not immediately known if they stole anything. None of the employees were hurt. Contact Los Angeles police at (877) LAPD-24-7.

Redding’s Accurate Gets U-Haul

Ron Green, owner of Accurate Auto Body in Redding, CA, recently added U-Haul truck and trailer rentals to the auto repair business he has been operating since 2011.

Accurate Auto Body now offers its customers a variety of moving equipment and supplies designed specifically for moving household furnishings, including moving vans, open trailers, closed trailers, furniture pads, appliance dollies, furniture dollies, tow dollies and auto transports.

Accurate Auto Body also will sell items to protect their customers’ belongings.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 5

Caliber Collision Doubles Size with New Redlands Digs Caliber Collision doubled its capacity with a move to a new 71,000 square foot facility in Redlands, CA. The new, state–of–art collision repair facility features the latest in collision repair technology and equipment, state–of–the-art customer service systems, and energy–efficient, green technologies throughout its operations.

“We’ve only moved a mile-anda-half away,” said David Goldstein, Caliber Collision Vice President of Operations, “but this relocation gives us increased capacity to ensure we deliver the highest quality repairs in the industry while quickly restoring Red-

lands customers to the rhythm of their lives.”

“Our Redlands customers should expect a seamless transition to our new location and will continue to benefit from Caliber’s expert auto body repair and finish, quality auto glass repair, free estimates, and a lifetime Caliber Collision warranty on our award-winning work,” said Rusty Rauls, Caliber Collision Regional Manager for the Inland Empire.

Caliber operates a total of 111 collision repair centers throughout California, Arizona, Nevada, Oklahoma and Texas.

Los Angeles County Sets National Teen Driver Safety Week in Honor of Teenaged Crash Victim

Nearly two years after Conor Lynch was killed instantly by a distracted and unlicensed teen driver in Sherman Oaks, the Los Angeles County Board of Supervisors proclaimed “National Teen Driver Safety Week in Los Angeles County” in honor of the 16year-old.

On October 19, 2010, Conor was struck by an 18-year-old driver when she failed to yield while he was crossing Woodman Avenue with his high school cross country team. A memorial bench honoring Conor’s memory now sits on Woodman Avenue near Addison Street.

“Proclaiming National Teen Driver Safety Week in Los Angeles County will honor Conor’s memory and bring attention to the fact that texting and focusing on other things while driving can be a fatal mistake,” said Supervisor Michael D. Antonovich, chairman of the Metropolitan Transportation Authority.

The Conor Lynch Foundation was also commended for its role in raising awareness and promoting the safety of runners, pedestrians, cyclists and young drivers.

In 2010, 191 teens from ages 15

to 19 were killed and another 24,616 were injured in traffic crashes in California. Of those individuals, 39 teens were killed and another 7,120 were injured in traffic crashes in Los Angeles County, according to the California Highway Patrol.

The Foundation officially kickedoff the 6th Annual National Teen Driver Safety Week with its 2nd Annual 5K Run/Walk In Honor of Conor event at Van Nuys Sherman Oaks Park. Close to 2,000 runners and volunteers participated in the fundraiser to support the non-profit’s new and existing programs.

“I’m personally touched and moved that the Board has dedicated this very important week to my son,” said Jeri Dye Lynch, president of the Foundation. “Obviously, October 19, 2010 is a day I’ll never forget, and it still boggles my mind that his death occurred during National Teen Driver Safety Week and just right after the Department of Transportation’s Distracted Driving Summit in Washington, D.C. We’re a real family representing some of those statistics, and we will continue to stand up against distracted driving.”

6 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Shops Help Victim of Road Rage Repair Car

Radio listeners in Seattle, WA, stepped up to help a woman who was a victim of road rage. Emily Lawson works for a non–profit organization and said she was unable to pay for the repairs to her car. When 97.3 KIRO FM radio aired the story, two generous listeners offered to help Lawson pay for the repairs needed to her car.

Shayne Hedahl with Special Interest Auto Body in Everett offered to complete all the repairs needed, and Jason Martin with Auto Glass USA spoke with Lawson about replacing the back window that was smashed.

The damage was done to Lawson’s Ford Escort while Lawson was driving home from a family barbecue.

She was at a red light and when the light turned green, a boxy, black SUV cut her off. The SUV was driving erratically. Lawson said when it moved over to the shoulder, she was able to get around him.

“He proceeded to follow us, swerving around the road, screaming and waving his arms,” said Lawson.

It was so ridiculous, Lawson and her 25-year-old passenger laughed it off at first. That is, until both cars got stuck at a red light. The driver of the SUV stopped behind her, jumped out and ran toward her car.

The man, described as six-feet tall and a very muscular 200 pounds, jumped on the back of Lawson’s car and slammed his arms down on the roof hard enough to leave a dent.

Then, Lawson said, he ripped the spoiler off the back of her car and used it to smash through her back window. The impact was so hard, pieces of glass flew at the back of Lawson’s head and up onto the dashboard of her car.

“As soon as he busted out the window and was still screaming in such a fit of rage, I thought he was going to kill us,” Lawson says.

When the light finally turned green and Lawson drove away, she says the man threw the spoiler back into her car through the missing back window.

A few minutes later she stopped to call 911, and she realized a lot of people must have seen what had happened.

“Nobody stopped to help us.

That was disappointing. We were two women in a car being attacked by this ‘Hulk’ guy who was just bashing our car up,” said Lawson.

Lawson works for a non-profit that does outreach to homeless kids.

She said she could not afford to fix all the damage to her car. She was ecstatic when she learned she would not have to pay for the repairs.

Auto Data Labels is a preferred vendor for MSO’s, Dealership Collision Repair Centers, Franchises, Networks, Independent Collision Repair Facilities, and Insurance Companies throughout North America.

If your business would like to make Auto Data Labels your “Preferred Vendor” please submit your info through our “Contact Us” page and we will be more than happy to assist you. www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 7

New Ford Dealership Opens in Juneau A new Ford dealership opened in Juneau, AK, in early October.

Stanley Management Group Executive Director of Dealerships Kevin Lauver made the announcement in mid September, the Juneau Empire reported.

The group owns the Stanley Ford dealership in Kenai. Emelia and Jose Stanley have owned the business since the fall of 2006. Stanley Motor Group also owns six Budget Rent-A-Car stores in Alaska and four Driven Auto Body shops.

They have about 200 employees among their businesses. The Stanleys started their automotive empire with a Budget Car and Truck Rental in Anchorage.

“Cars in stock will include the Ford F-150 Super-Crew — our pride and joy, and Escape, Expedition, Explorer, Flex, Edge, Taurus and Fusion models — many of which are offered in all–wheel drive,” said Lauver.

Juneau also has the climate and road system that would make it suitable for sales and service of Ford’s electric Focus C-Max, Lauver explained.

“That is something you don’t see much in Alaska,” he said.

Lauver said Stanley plans to build a new facility in two to two–and–a–half

years. The group’s auto body business will move into the vacated property.

Stanley will also incorporate its Budget Rent–A–Car franchise in Juneau and its Boss Plow business into the dealership.

“It is a neat triangle,” Lauver said. “Driven buys all their parts from the dealerships. Budget buys their cars from the dealerships.

Driven fixes them and then after two seasons, we re–sell them as certified pre–owned vehicles. It is a really neat synergy.”

Lauver said Stanley is a community-oriented business which supports local organizations. “One of the things I’m passionate about is the jobs,” Lauver said. “There are going to be a bunch of new jobs here.”

Lauver said Stanley has recruited Juneau’s Evergreen Motor Works and its Ford–certified technicians. Evergreen co-owner Dave Wall is Stanley Ford of Juneau’s new General Manager and he and co–owner Todd Thingvall are adding Evergreen’s moving lifts to the state–of–the–art equipment Stanley is bringing to the dealership’s automotive department.

Evergreen Motor Works co-owners Wall and Thingvall started the business after the breakup of Skinner Sales and Service, Juneau’s former Ford dealership.

8 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Long-time Oregon Body Shop Couple Sell to Kadel’s

Back in 1988, Hank and Sandy Tarter opened Tarter’s Autobody in Keizer, OR. The business grew from a mom–and–pop to a large operation, with three buildings and nine full-time employees. It was later renamed Keizer Collision Center.

Hank and Sandy Tarter sold their business to Kadel’s Auto Body

Hank and Sandy, both in their mid 60s, recently sold their business to Kadel’s Auto Body, which operates 16 shops in Oregon, Washington and Idaho. It will operate under the Kadel’s Keizer Collision Center name and will maintain the same staff.

Kadel’s newest location marks its third collision repair facility in the Keizer, OR, market, and the company’s 17th shop overall.

“We are very excited with this most recent addition to Kadel's Auto Body,” said Don Braden, president

and CEO of the company. “Kadel’s success is based on a commitment to quality repairs, excellent customer service and our support of the local community. Keizer Collision Center enjoys a very good reputation and will be a great addition to the Kadel’s Family.”

“When you’ve virtually started a business, it’s kind of a hard thing to step back,” Hank Tarter said. “Talking with them, we got a real good feel with the people we dealt with.”

Hank Tarter knew the farm he grew up on near Monmouth wasn’t his future, so he learned the auto repair trade at a community college in Bend and a General Motors school in Tigard. Before jumping into it for a career, he spent several years as a logger – until a friend was gravely injured in the summer of 1974.

“He’s a paraplegic today,” Hank said. “I decided at that point I’d better go back to auto work.”

With a partner, he bought North Salem Auto Body on Pine Street, eventually selling his interest to start his shop in Keizer.

Their community involvement includes Keizer Rotary and the Keizer Chamber of Commerce. They have two children and three grandchildren.

Top 3 Body Shops Named in Orange County’s 19th Annual ‘Best of 2012’ Contest Fountain Valley Body Works won first place for Best Auto Repair Shop in Orange County’s 19th Annual Best Of 2012 contest.

Fountain Valley Bodyworks on Newhope Sreet has been under the same ownership of Dave March for 40 years.

Family-owned for almost 40 years, Fountain Valley Body Works prides itself on being one of the best auto-body shops in Orange County because of the staff's attention to detail and customer service. It boasts a customer-service index of 97.4, with more than 80% of customers coming from referrals.

Fountain Valley Body Works repairs about 700 cars each month. The Newhope location covers more than 50,000 square feet and the Euclid express center spans more than 25,000 square feet. The facility can work on cars of all makes and models, small and large repairs.

“We have a huge, yellow 15-feet smiley face that hangs on the front and back of the building, and it symbolizes happiness. We pride ourselves on being a friendly, down-to-earth facility that everyone seems to love,” March said.

The second place winner is A-Z Tech Automotive located in Mission Viejo and is known for its outstanding customer service, according to owner Nancy Long. A-Z offers service for virtually every model, including Aston Martin, Bentley, Ferrari, Jaguar, Maybach, Mini, Porsche and Rolls Royce. Owners Doug and Nancy Long started A-Z Tech Automotive in 1989 in a small rented space in Mission Viejo with a box of tools and a floor jack. Doug had been repairing cars since 1974. The facility has grown to a 10,000-square-foot shop with 20 employees.

The third place winner for Best Auto Repair Shop is Star Motors located in San Juan Capistrano. The shop specializes in luxury and European motorcars with ASE-master certified technicians who have more than 50 years of combined factory-trained experience. Founded in 1985, Star Motors began as a Mercedes-Benz repair shop in Laguna Niguel, and then expanded to working on BMW, Jaguar, Lexus, Porsche, Volkswagen, Audi and all other luxury vehicles.

Star Motors is one of the few Green Station Certified auto-repair facilities in Orange County.

Precision Collision Auto Body Hosts Emergency Extrication, Jaws of Life and Airbag Event

Precision Collision Auto Body, LKQ Keystone Aftermarket Parts and many local insurance providers have hosted 13 first responder events in Washington State over the past three years.

An extrication class on Sept. 12 was held for local Snohomish County and King County firefighters and EMT’s in Monroe, WA.

EMT separates rear door to simulate patient access. Vehicle was donated by Insurance Auto Auctions of Seattle

EMT’s who respond to accidents on our streets and highways came together for a free class provided to their departments by the collision repair industry.

The collision repair industry, along with West Coast Fire & Rescue

and Holmatro USA equipment supplier, put on this increasingly important event to help keep our firefighters and EMT’s current with new technologies.

Newer vehicles with high strength steels (HSS) that are on our roads today are used at these events.

Insurance companies who donated these hard-to-get vehicles included Progressive Insurance and American Family Insurance.

Vehicles today have many complicated structures and can be challenging to access during an accident.

Enterprise Rent-A-Car has supported these classes for the past three years by providing brand new hybrid cars to help educate our firefighters on the electric vehicle dangers at an accident.

Precision Collision is a local family owned and operated business, is a member of the National Auto Body Council (NABC) www.autobodycouncil.org, and has been serving collision repair customers in WA State since 1985.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 9

Google’s Driverless Cars Raise Safety and Privacy Concerns Recently, Governor Jerry Brown signed a driverless car law into effect, but safety and privacy issues are raising concerns about Google’s robotic car.

In late September, California Governor Jerry Brown signed a driverless car law into effect at a ceremony at Google’s headquarters in Mountain View, CA. According to advocacy group Consumer Watchdog, the law poses threats to safety and privacy.

SB 1298 directs the Department of Motor Vehicles to write regulations covering robot cars by January 2015, but the Legislature didn’t require Google to come back for final approval before the driverless cars go from testing stage to the car lot.

The law, written by Sen. Alex Padilla, provides no real privacy protections, the nonpartisan, nonprofit group said.

“Substantial safety and liability questions remain,” said John M. Simpson, Consumer Watchdog’s Privacy Project director. “On the privacy issue, the law gives the user no control over what data will be gathered and how the information will be used.”

Consumer Watchdog said that there is little question that driverless

Young’s House of Klear Opens Santa Ana Facility

Young’s House of Klear is pleased to announce the opening of their Santa Ana product distribution satellite facility. Partnering with expert painter Alfredo Jasso, we are able to offer high level technical support and rapid daily material delivery for the Orange County market. Initial availability will include the full line of Southern Polyurethanes (SPI) products, and additional high quality, value priced product lines will follow.

Demand for SPI products continue to grow as many shop are aggressively looking to find a competitive cost advantage on paint materials, while at the same time actually improving the quality and long term durability of their refinish work.

Young’s House of Klear remains committed to providing better products, better technical education, better service and better value than currently offered in Southern California by existing traditional paint jobbers.

Orange County shops are invited to call John Young at 818-5044933 and invite House of Klear and Alfredo Jasso to meet with you and your painter.

car technology will become a reality.

The problem is the way the Legislature and Governor rushed to endorse the technology without considering its ramifications.

“What this demonstrates more than anything else is Google’s ability to dazzle and get its way,” said Simpson. “The governor and many legislators have been taken for a ride by Google, and I don’t just mean in the Internet giant’s driverless test vehicles.”

It is clear that driverless car technology is coming, so collision repairers need to be aware of the potential impact that this technology might have on their businesses and the industry in the mid- to long-range future.

“From a collision perspective, I think the body shops need to be prepared for the future as technology continues to change and they need to be prepared to invest in both their staff and equipment,” said Sharon Ashley, Business Development Manager, Canada for Summit Software and Marketing Solutions. “Without ongoing training and more sophisticated tools that will be required to repair these types of vehicles, we could see a great deal of poorly repaired cars in the not too distant future.”

Caliber Collision Expands in LA; Opening 18th Center

Caliber Collision Centers recently announced the opening of its 18th center in the Los Angeles area. Caliber Collision in early October acquired the Hooman Collision Center in Inglewood, CA. “The acquisition and grand opening of our new Ladera Heights location increases our Los Angeles locations to 18 as we continue implementing our 2012 expansion plans,” said Steve Grimshaw, Caliber Collision Centers’ Chief Executive Officer. “This new center provides additional Caliber Collision capacity in the largest automobile market in the U.S. while providing our insurance clients the customer focus, operational consistency and cost management they demand in today’s competitive insurance market.”

Caliber Collision’s newly acquired 30,000 square foot collision repair facility is located less than two miles from the LAX airport at 737 North La Brea Avenue.

“Our newest Los Angeles location provides yet another example of how we continue to grow across the California market as the collision repair provider of choice.”

10 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

The law does not give carte blanche to Google to send driverless cars on to roads. According to Ashley, “There needs to be an actual licensed driver in the vehicle in case they need to take control of the vehicle.”

But Consumer Watchdog warns that rushed technological policy shifts have seen some poor results for California in the past. The last time Sacramento moved so quickly on such an extraordinary technological policy shift was over electricity deregulation, which ended with unprecedented massive blackouts engineered by energy companies like Enron, Consumer Watchdog said.

The time to ensure that the new driverless car technology has the necessary safety and privacy protections is while it is being designed and developed, according to Consumer Watchdog. Trying to catch up after a new technology is developed and broadly implemented simply will not work.

“Google has repeatedly demonstrated that it only pays lip service to privacy concerns and repeatedly violated consumers’ privacy,” said Simpson. “Consumers must have the right to give opt-in consent before any data gathered through driverless car technology is used for any purpose other than driving the vehicle.”

Driverless Car is ‘Science Fiction Becoming Reality’ Gov. Jerry Brown, describing Google Inc.’s robot cars as “science fiction becoming tomorrow's reality,” recently signed legislation allowing driverless cars to be tested on public roads.

“Today we’re looking at science fiction becoming tomorrow’s reality: the self-driving car,” the Democratic governor said at a bill signing event at Google’s headquarters.

Google co-founder Sergey Brin said he could “count on one hand” the number of years it might take before driverless technology becomes widely available.

Google and other supporters of the legislation, Senate Bill 1298, say robot-controlled cars could drive more safely and efficiently than people, whose errors are responsible for a high percentage of crashes.

“Self-driving cars,” Brin said, “do not run red lights.”

Sen. Alex Padilla, the Southern California Democrat who authored the bill, called it a ‘dream bill,’ saying it will save lives, create jobs, ease congestion and reduce emissions.

Opponents of the bill included the Alliance of Automobile Manufacturers and Consumer Watchdog.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 11

Prosecutor: School District Schemed with Body Shop Owner to Bill for False Repairs

The former transportation director for the Coachella Valley Unified School District in Indio, CA, schemed with a body shop owner to bill the district for repairs that weren’t done so they could pocket the money, a prosecutor told jurors last month during the trial.

Raul Portillo Lopez, 56, is accused of misappropriating more than $200,000 in district funds between 2003 and 2007. He faces 27 felony counts, including misappropriation of funds and embezzlement.

His longtime girlfriend, Clemencia Ochoa, is charged with four felony counts of grand theft in excess of $400 for allegedly signing timesheets for overtime she never worked.

Lopez, who worked for the district for 25 years and as transportation director for the last 10 of those years, authorized more than $109,000 in payments for vehicle parts for district vehicle repairs that were instead used at his own auto repair shop, the prosecution alleges.

Lopez also is accused of authorizing payments of more than $75,000 to an auto body shop for bus repairs that were never done, and giving the body shop’s owner a cut of the repair money.

The body shop owner, Gregorio Zarate, pleaded guilty to a felony

charge of grand theft in excess of $400 in October 2009 and was sentenced to a year in sheriff’s custody and three years probation, according to court records.

Lopez is additionally accused of approving more than $17,000 in fraudulent overtime pay for Ochoa.

“They started coming up with invoices for repairs on these buses ... Mr. Lopez would sign it, it goes to the district and Mr. Zarate gets the check, he cashes it and takes it to Mr. Lopez,” Deputy District Attorney William Robinson told the jury in his closing argument. He said Lopez got 75 to 80 percent of that money and Zarate got the rest.

Robinson said Lopez sent buses to Zarate’s shop even though employees told him the shop did poor work, and Lopez sent the buses to the shop behind his fleet supervisor’s back.

“I submit to you, ladies and gentlemen, the reason he did that was he had the agreement with Mr. Zarate,” Robinson said.

A transportation expert found no evidence of repairs on buses invoiced for repair, the buses weren’t taken out of service and Zarate said he didn’t work on some of those buses. In one instance, the district was billed for

Tesla Unveils Solar Powered Charging Stations

Tesla Motors unveiled the first of its six Supercharger stations in six California locations (Folsom, Gilroy, Coalinga, Lebec, Barstow and Hawthorne).

The Supercharger stations are powered by a solar carport system made by SolarCity, and will allow the Model S sedan to receive a 90 kilowatt (KW) charge, which will keep the vehicle going for 150 miles. The solar carport system is designed to generate more solar power over a year than the average Tesla vehicle requires. This will result, according to a press release by the car company, in a “slight net positive transfer” of solar power being generated back to the power grid. Tesla plans to install 100 Superchargers in “high traffic corridors” throughout the U.S. by 2015. It will start installing them in Europe and Asia in 2013.

The Supercharger, at 90 KW, delivers 4.5 times more electricity to the battery of the Model S than Twin Chargers. Elon Musk, Tesla cofounder and CEO, calls the Supercharger network a “game changer for electric vehicles.” He cites several reasons why the Supercharger network is a game changer, including the longer traveling distance they provide Model S vehicles.

“Tesla is demonstrating just how

fundamentally better electric transport can be,” said Musk.

There is a downside to the Superchargers: they are only compatible with Model S sedans. Tesla has produced 255 Model S vehicles, but only delivered 132, according to a September 25 Securities and Exchange Commission (SEC) filing. Sources told Wired.com that each solar carport system “costs somewhere in the neighborhood of $250,000, with the total cost to cover the planned 100 stations at between $20 million and $30 million.”

That is a lot of money for a car company that clearly has a cash flow problem. In the September 25 filings, Tesla reported to the SEC that it is offering 4.3 million shares of its stock for sale. Tesla plans to have $228 million in cash available from the sale of its stock. It will need the money as it was informed by the Department of Energy (DOE), according to the filing, that it has until October 31 to submit plans for “early repayment” on its $465 million loan.

In the filing, Tesla reported that it is at “full drawn down” on the DOE loan.

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12 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

the same parts twice, Robinson said.

He also argued that Lopez authorized payments for hundreds of parts ordered from Napa, including parts for vehicles that weren’t part of the district’s fleet. Of several mechanics who testified, only one said he asked Lopez to order parts and received parts from Lopez.

“So what happened to them?

That’s the big question,” Robinson said.

Lopez started with the district in 1981 as a mechanic and worked various jobs in the transportation department. He was promoted to director in 1997, and was responsible for 100 employees and a nearly $7 million budget, Robinson said.

In fall 2006, district officials suspected the transportation department wasn’t being run efficiently and hired a consultant, who “concluded there was mismanagement at the very least,” Robinson said.

Lopez was put on administrative leave in 2007.

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CAWA Hosts Buller at Annual SEMA Dinner

Randy Buller of Parts Authority will be the guest speaker at CAWA’s annual dinner meeting to be held in conjunction with Industry Week in Las Vegas on Sunday, Oct. 28 at 7:00 p.m. at the Venetian hotel.

Buller will cover areas such as: What are the contemporary issues facing distributors and their suppliers? What does the immediate future hold for business owners and managers, particularly in the areas of technology, Internet sales, data, inventory, brand reliance and off shore product?

Buller will share his experience regarding his company, their growth and the development of partnerships that were critical to their success. If you are a manufacturer, retailer or distributor, you need to hear what information and thought–provoking business solutions he will share with you.

For more information on registration for the dinner meeting, contact Julie Snyder at 800.332.2292, ext. 2 or email programs@cawa.org. All proceeds from the event go to CAWA’s scholarship fund. Watch for an invitation to be coming to industry representatives soon.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 13

Glendale/Foothill CAA Chapter Previews Technology Pre-SEMA

by Tom Franklin

The last chapter meeting of 2012 for the Glendale/Foothill Chapter of the California Autobody Association was held as usual at the Brookside Country Club in the Rose Bowl in Pasadena, CA. The meeting was called-to-order

by President Linda Holcomb. She announced the two speakers for the meeting: Tom Gattuso, who heads up the SEMA Trade Show, and Toby Chess who spoke on ‘Where our Industry is going.’ Sponsors for the meeting were Gyant Compliance and D’Angelo’s Business Group.

Tom Gattuso is the trade show director for SEMA, the Specialty Equipment Manufacturers Association, held annually in Las Vegas. This year, the show is being held Oct. 30 – Nov. 2.

SEMA attracts well over 60,000 attendees. It is the largest event of its kind in the world, covering nearly one million square feet of convention floor space! Tom noted that SEMA started in 1963, when toy manufacturers of the various mini-hot rod and related toy vehicles sought to consolidate the many sticker types from hot-rod groups

around the country into one consolidated set of stickers. As technology grew more complex, the various groups saw a need for an umbrella organization. The first organized SEMA Show took place under the bleachers at Dodger Stadium. Tom said it was little more than some card tables and conversations between buyers and sellers.

At the end of his talk, he said that the show is still mainly a conversation between buyers and sellers.

Since both CIC and SCRS voted again to support and sponsor SEMA, rather than NACE, which will be exhibiting in New Orleans instead of Las Vegas, the collision section of the show now includes 150 exhibitors in the North Hall of the Las Vegas Convention Center. CAA will also have a booth. Both SCRS and I-Car will be providing training seminars and programs throughout the week. Tom suggested a special focus on 2,000 new products that will be exhibited at the show this year. He suggested attending the New Products Breakfast Tuesday morning, Oct. 30 at 7:30 a.m. Industry experts will serve as judges and give an Innovation Award.

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Tom emphasized having a preshow, during-the-show, and post-show plan to maximize an attendee's benefits. The www.semashow.com website provides a complete floor plan and one can search by product, category and company. CAA chapter president Linda Holcomb suggested that no one could possibly cover the entire show in five days, so a good pre-plan is really necessary — plus a comfortable pair of shoes or rent a scooter.

During the show, a mobile app is also available this year showing housing, registration and floor plan all on one dashboard. Close attention should be paid to the 800 signs, color drapes and carpeting delineating the 12 sections of the show. Badge scanning will speed up product visitations and followup for a post-show review and analysis.

Tom also pointed out that there will be some spectacular fun with the show. The ‘SEMA Cruise’ will put 2,000 vehicles that were in booths during the show in a parade down Paradise Road Friday afternoon. And then there is the Global Rally Cross, racing many vehicles modified with products demonstrated at the show.

The meeting continued with Toby Chess speaking about ‘Where our industry is going in the future, and what are you going to do about it?’

He opened with the fact that average fuel economy would have to be from 27.5 to 30.7 mpg for cars by 2015, and from 23.5 to 28.6 mpg for trucks.

He also noted that even the Ford F150 pickup truck would be all aluminum.

All vehicles will be smaller, lighter and safer. Vehicles will have high-strength steel that will be ‘replace only’ and cannot be repaired. All vehicles will have Electronic Stability Control and steering angle sensors that will monitor the number of revolutions during the speed of a turn. If the turn is too fast, there will be an automatic computer correction. This will require recalibration during every wheel alignment.

All of this means that every shop will have to have the tools, equipment and training to work on these new vehicles. These jobs will require longer cycle times and far more attention to small details.

Now is the time to be prepared for all aluminum repairs. The latest scan

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tools are a must. No shop that hopes to survive in this future can afford to wait to get ready. That future is arriving faster than most shop owners realize.

Toby finished with an introduction to the Matrix Measuring System.

From a layman’s point of view, this is a brilliant use of cameras and minute measuring technology to capture an exact picture of any differentiation in vehicle structure, from side to side and bottom to top. Toby noted that you can only measure length and breadth with a transguage, but with the Matrix Measuring System, you can add in depth and that makes all the difference.

Two Arrested in Shop Theft

Two men arrested in connection with the attempted burglary of a Taft, CA, body shop have agreed to plead no contest to burglary charges. Bryan Henry Landreth, 22, and Corey Joe Huckins, 21, will be sentenced on Nov. 13.

Landreth was arrested at Devon’s Body Shop and Towing early on Sept. 30 by police officers responding to a report of suspicious noises. Huckins was arrested the next day at a home. Landreth pleaded no contest to burglary and auto theft. Huckins pleaded no contest to one count of burglary.

Terms of the plea agreement were not disclosed.

CAWA Reports BAR Cracking Down on Fluid Flushers

CAWA Appoints New Director

Richard Reyes has been appointed to the CAWA Board of Directors representing General Parts Inc., CARQUEST. He currently serves as General Manager of Sales and Operations in California and Arizona.

He was appointed by Chair of the Board, Steve Sharp of WORLDPAC in Newark, CA. “Mr. Reyes has a diversified career in the automotive aftermarket industry and as a representative of GPI – CARQUEST, is a welcomed addition to CAWA’s leadership,” said Sharp.

CAWA says BAR’s enforcement officials are cracking down on fluid flushes. Concerned that these preventive maintenance activities may be being sold unnecessarily to unsuspecting motorists, CAWA says they are hearing that enforcement officials are reinterpreting existing policy to crack down on fluid flushes that do not adhere to strict manufacturer recommendations. For more information on this issue, contact Norm Plotkin at norm@pzallc.com or (916)275-0796.

Shop Co-Owner Arrested in Disappearance of Partner

The co–owner of a Tempe auto body repair shop and his wife are facing murder and hindering charges after being arrested in connection to what officers believe is the homicide of Jason Johnson, the other co–owner of the business who was reported missing since Sept. 14.

Chad Norris, 33, co–owner of Scottsdale Auto Collision Center in Tempe, and Tamara Norris, 31, were arrested on suspicion of second–degree murder and felony hindering, respectively in connection to the case.

A missing persons report was filed with Tempe police after it was reported that Johnson, 45, had not been seen since approximately 6 p.m.

Sept. 14 at his auto body repair shop near Priest Drive and Elliot Road in Tempe.

Detectives contacted several employees at the business during the course of follow–up on the missing persons report and during questioning, detectives acquired information about a confrontation that happened between Johnson and Chad Norris.

After Chad and Tamara Norris were contacted about the disappearance of Johnson, neither one of them were willing to cooperate with authorities, according to Tempe police.

Detectives then conducted sur-

veillance on the Norrises based on the evidence that they were involved with Johnson’s disappearance.

Later that day, detectives observed suspicious activity from the couple that led them to believe they were attempting to cover up a crime.

The Norrises were observed leaving their residence with a box trailer attached to the rear of an SUV. The couple then drove to an area in Phoenix where they abandoned the trailer, police said.

Police deployed a canine cadaver dog and obtained a search warrant. The search revealed what detectives believe to be a homicide scene. Blood was located inside the trailer along with spent shell casings from a firearm and a wallet that contained Johnson’s Arizona driver’s license, according to police.

Investigators believe that Johnson was killed and his body hidden in an unknown location and have yet to find his body.

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Continued from Cover

Key Bill Vetoed

of providing a 24/7 key replacement request line while it determined if additional technology could be developed that provided the same level of security and accommodates customer needs. BMW reports that since the effective date of SB 1542, they have replaced 4,397 keys and in only one instance was the key not delivered to the owner consistent with the provisions of that bill.

Therefore, BMW concludes that operation of the 24/7 key replacement request line is as a suitable alternative to providing key code information to locksmiths and that this alternative means of providing key code information should be allowed to continue indefinitely.

BMW said their preference to continue the 24/7 key replacement request line rather than provide key code information to locksmiths because BMWs are one of the most frequently stolen vehicles. BMW contends that releasing key code information, despite existing security measures, could result in increased theft risks, to the detriment of BMW owners.

BMW also contends that very few locksmiths possess the sophisticated equipment necessary to create electronic keys for BMWs and other highend vehicles and therefore, most BMW owners would need to use the 24/7 key replacement request line anyway.

Under the leadership of CAWA and AAIA, working in collaboration with industry coalition partners including AAA, CARE, ASCCA, CalABC, advocates were successful in communicating concerns about motorists being inconvenienced and often stranded in dangerous situations because of the inability to obtain a replacement key from a locksmith due to automakers refusal to provide this information which helped convince Governor Brown to veto SB 750.

Arguing in opposition, the Auto Clubs contend that this bill would benefit only a narrow group of foreign special interests and weaken the landmark, bi-partisan consumer protection legislation that was approved by the California Legislature and supported by consumer groups, police and fire departments, cities, insurance companies, and other civic, taxpayer, and business organizations.

The Auto Clubs also contend that

the exemption and sunset clause included in SB 1542 was provided to give sufficient lead time for auto manufactures to come into compliance with the law. They note that even though they were given this lead time, BMW has failed come into compliance, despite the fact that over 90% of auto manufacturers now provide key code information as required by the legislation.

Also arguing in opposition, the California Locksmiths Association (CLA) said claims by BMW that very few locksmiths possess the equipment necessary to create keys for high-end vehicles such as BMWs are untrue.

CLA contends that a large number of locksmiths (particularly in metropolitan areas) possess the appropriate equipment and can provide replacement keys or similar device for highend vehicles within 1-2 hours at a cost ranging from $100 to $400.

The CLA also noted that locksmiths carry a $1 million liability bond along with other insurance and that for some vehicles, such as Volvo and Lexus, the transfer of key code data is done wirelessly in such a way that the locksmith is not able to view or have access to the key code information at any time. CLA also notes that transmittal of key code data is tracked, so if a code were to be used by an unscrupulous locksmith to create a duplicate key, such activity would be easily traced and the perpetrator easily identified. Automotive wholesalers and the automotive after-market industry, also arguing in opposition to the bill, contend that in some cases key code information is utilized to affect vehicle repair since information contained in electronic keys are used to communicate with a vehicle's on-board diagnostic system. These groups claim that if the key code information is faulty or missing, technicians must create a new key or similar device to properly diagnose problems and perform repairs. It is argued that currently, this process cannot be accomplished for BMWs because the key code information is not released.

Therefore, opponents of this bill contend that by withholding key code information, BMW is essentially forcing BMW owners to have their vehicles serviced at dealerships, thereby eliminating the option for consumers to have their cars serviced at independent repair shops. The automotive repair industry claims that this practice violates existing law, SB 1146 (Burton), Chapter 1077, Statutes of 2000,

16 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

that ensures essential service, repair information, parts, and tools are made available by vehicle manufacturers so that vehicle owners have continued access to a competitive marketplace for automotive service needs. The automotive repair industry has expressed concerns that if this bill passes, other vehicle manufacturers may choose to operate 24/7 key replacement request lines which would broaden the exemption to other manufacturers, to the detriment of consumers and the automotive industry.

CAWA and AAIA say the real success was in the grassroots participation and involvement by members of these organizations who wrote letters, sent faxes and email and made phone calls urging a veto of the bill.

“This is a tremendous legislative victory for the aftermarket with an unbelievable final push to urge the Governor to veto this anti-consumer, anti-aftermarket bill,” stated Rodney K. Pierini, CAWA President & CEO. “The industry rallied with letters, faxes and emails to the Governor’s office.

This grassroots lobbying effort, along with our professional lobbying effort is what made the difference for victory See Key Bill Vetoed, Page 31

Carroll Shelby Foundation Unveils Signature Program

Established by automotive legend Carroll Shelby, the Carroll Shelby Foundation will honor the man who devoted his time to helping children in need with the highly-anticipated unveil of the exclusive Carroll Shelby “Commemorative Signature” Program. Dedicated to providing financial support for children and medical professionals to help overcome lifethreatening health issues and continuing education among today’s youth, the Carroll Shelby Foundation will offer this exclusive commemorative signature program to raise money for its mission.

“The commemorative signature program is a way to remember and continue Carroll’s good work,” said Jenni Shreeves, executive director of the Carroll Shelby Foundation. “We hope people join us in the fight to help children at home and around the world receive the medical treatment and transplants they so desperately deserve, as well as the education they need.”

Enthusiasts will have the option to receive the commemorative signature on an assortment of exclusive items including signed art, sculptures, die-cast models, books and more.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 17

Company Connections

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

The NitroTech Spray Generator Controls the Uncontrollable with Chasidy Rae Sisk

For many collision shops, spray painting with compressed air means dealing with uncontrollable or difficult to control variables, including temperature, humidity and pressure.

“Compressed air is a problem because air changes based on temperature, altitude, and other variables that cannot be readily controlled,” says Michael Haydell, president of Haydell Industries. As a result, the viscosity of painting material also changes with each use due to moisture and temperature, as well as the build-up of static electricity. Static makes the material do what it wants to do, not what the painter wants it to do.

Haydell Industries offers a solution to this dilemma in the form of their NitroTech Spray Generator.

Their vision is to “be the premier provider of Innovative solutions and systems for customers’ productivity,” and they achieve this through their values of integrity, excellence, com-

munication and accountability.

Haydell Industries was founded in 1986 by Michael Haydell as a manufacturing representative company. But their focus changed to the production and distribution of nitrogen-based spray systems in 2005. They also now sell a variety of shop equipment, including industrial paint booths and filters.

The use of inert nitrogen offers painters a gas to spray with, providing a more consistent finish. This leads to a reduction in the use of wet materials, an increase in booth through-put, and a decrease in the cost of booth exhaust filters. As an added bonus, the NitroTech Spray Generator is also environmentally-friendly as it significantly reduces the VOCs and HAPs released into the air.

Haydell Industries separates the impurities at a gas level to redirect the air’s properties, and by controlling the temperature through their hose, they are also able to control viscosity, while

18 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

using ionization processes to eliminate static electricity. This uses less paint as the nitrogen allows the substrate to be fully covered in fewer coats than can be accomplished using compressed air.

Though an air compressor is still necessary to supply the NitroTech Spray Generator with compressed air, the compressed air is replaced by a perfect fluid carrier of Nitrogen, Argon and/or Carbon Dioxide. The system can easily be integrated into a shop’s existing system without changing spray equipment, processes or the preferred coating. The only maintenance required for Haydell’s Nitrogen system is a change of inlet air filters once a year.

Since Haydell Industries’ NitroTech Spray Generators reduce the use of materials by 30–50%, collision shops can save up to 20–30% in material costs by integrating this technology into their repairs. Nitrogen spray also reduces application time by 30–50%, providing even more savings in man hours.

Haydell Industries received their patent for the third generation of their Nitrogen Technology in May 2012.

Michael Haydell proudly states, “Our newest generation uses 250% less compressed air than the first generation, making it 250% more efficient.”

Haydell Industries’ impressive list of clientele includes Boeing, Mercedes-Benz and Hendricks Motor Sports. Their website claims, “we are gaining momentum, ensuring we remain in the forefront of any competition, as we keep a firm hold on Advanced Application Technologies through our nationwide distribution network...

Haydell Industries can be reached at: 163 Pellerin Road Lafayette, LA 70560 1-800-877-4362 1-337-989-0307 (fax) www.haydell.com info@haydell.com

American Honda Launches ProFirst Shop Recognition Program

American Honda Motor Co, Inc. announced the launch of the ProFirst body shop recognition program on Oct. 15. Open to both dealer-owned and independent collision repair shops, the program is designed to promote the correct, complete, and safe repair of Honda and Acura vehicles and provide support to shops that have demonstrated a commitment to a high level of customer care and satisfaction.

To qualify, shops must conduct a minimum number of transactions using OEConnection’s CollisionLink software, be a designated ICAR Gold Class Professionals® business, and have at least one person presently employed by the shop who has completed the I-CAR course, Collision Repair for Honda and Acura Vehicles (HON01).

“CollisionLink is a component of the ProFirst program because of the numerous benefits it provides to both shops and dealers, said Bill Lopez, Director of OEM Program Development at OEConnection. “Through CollisionLink, shops can take advantage of Honda’s Collision Select parts program, which enables them to use more genuine Honda and Acura parts while managing their overall repair costs.”

Lopez added, “CollisionLink also helps to increase efficiencies and parts

ordering accuracy, which means fewer returns, faster cycle times and, ultimately, more satisfied customers” John Van Alstyne, I-CAR CEO & President stated, “The ProFirst body shop recognition program, in conjunction with the I-CAR Gold Class Professionals designation, will align participating shops with a training program that is meant to elevate the customer experience and enable shop employees to work up to their full po-

tential.” Van Alstyne added, “Training and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.”

Qualifying shops will receive a handsome plaque, a place on the shoplocator tool on the recently-launched American Honda consumer web site, free access to the Honda and Acura parts catalog, parts bulletins, service and repair information, and more.

Shops will benefit through increased recognition of the shop’s professionalism, increased opportunity to reach more customers and the promotion of customer confidence and loyalty.

To see full program details, go to profirst.honda.com or profirst.acura .com.

Each shop must enroll as a separate entity at its place of business as the ProFirst web site will manage the shop’s access to the parts catalogs and service information.

Jim Roach, Senior Vice President for American Honda’s Parts & Service Division noted, “We are pleased to be working with OEConnection and I-CAR for the ProFirst program. As the industry changes and automotive technology changes, we must make changes in our programs to keep pace. ProFirst, and our association with both OEConnection and ICAR, is a step in the right direction.

ProFirst is a win / win for all involved, especially for Honda and Acura owners.”

For more information on the I-CAR Gold Class Professionals® program, visit the I-CAR website (www.i-car.com) and click on “Collision Repair Gold Class Professionals® “ under the “Training and Recognition” tab.

CAWA Appoints Mike Eldard

Chair of the CAWA Board of Directors, Steve Sharp of WORLDPAC, has appointed Michael Eldard of ADVICS to the Association’s 2012 Manufacturers Advisory Council. Eldard was most recently appointed as the Western Region Account Manager of ADVICS and immediately prior to that he was a District Manager for 10 years with the Akebono Corporation. He started in the industry as a counterman and eventually became store manager before he entered the manufacturing segment of the industry with Cooper Industries.

Service King in Deer Valley, AZ

Service King Collision Repair Centers on Monday announced the opening of a new shop location in Deer Valley, AZ. Service King’s new 12,000square-foot Deer Valley location is its ninth collision repair center in Arizona.

The shop—which was established as a result of Service King’s national expansion effort—currently has eight employees, but will eventually expand to a 20-employee operation, the company said. “Our insurance partners needed help to handle the many customers they have in the area,” said spokesman Chris Anderson.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 19

Honda Develops New Welding Technology, UHSS Structure for 2013 Accord

Honda has developed some new technology for vehicle construction, and they have applied it for the first time in the world to a mass-production vehicle; and not just any mass-production vehicle, the Honda Accord, one of the top-five selling vehicles in the United States.

The newly redesigned 2013 Honda Accord went on sale in the United States on September 19, and its construction is the result of Honda’s next-generation Advanced Compatibility Engineering (ACE) body structure which utilizes the new welding technique as well as hot-stamped and other ultra-high strength steels to build its cabin structure.

The Accord’s subframe is made with a combination of steel and aluminum joined together with a process called Friction Stir Welding (FSW).

The continuous weld technology generates a stable metallic bond between steel and aluminum by moving a ro-

tating tool on the top of the aluminum which is lapped over the steel with high pressure. Honda says the resulting weld strength is equal to or greater than conventional MIG welding.

Honda also developed a non-destructive inspection system for quality control that uses a highly-sensitive infrared camera and laser beam to inspect every unit. The carmaker says the Friction Stir Welding system it developed for this process can be also be used for aluminum-to-aluminum welding and could be used for production of a full-aluminum subframe.

The subframe however, should not cause many repairability issues according to I-CAR Technical Director Jason Bartanen, as Honda provides no repair procedures at all for the part, and specifies complete replacement only.

“What will cause some issues is the high strength steel used in this car’s body structure,” said Bartanen speaking from the I-CAR Tech Centre in Appleton, Wisconsin.

The newly redesigned 2013 Accord body uses 55.8% high-tensile steel, more than in any previous Accord. And 17.2-percent of the steel is grade 780, 980 and 1,500 MPa, extremely high grades that have never before been used in any Accord, and in fact, very few other cars, according to Bartanen.

Matrix Electronic Measuring, Inc. Awarded Two Patents

Matrix Electronic Measuring Inc., a developer of advanced measuring devices for the automotive collision repair industry, has obtained two patents for its new vehicle measurement system called the Matrix Wand.

Rob Bailey, director of sales engineering and business development for Matrix Electronic Measuring Inc., details how the Matrix Wand adds efficiency and quality to shop estimating procedures. Watch now » The Matrix Wand is a handheld vehicle measurement device used for estimating structural collision damage.

The tool, which was publicly launched in April, uses two cameras that capture three-dimensional images of vehicle damage. Estimators can use the images to measure all damage on a vehicle’s body and engine components, reveal hidden damage, verify repair quality and enable predictive wheel alignment.

Matrix has been awarded two patents for the measurement system and method, which was developed by Guidelight Business Solutions, a global business and enterprise application development company based in Austin, Texas. Matrix has two more patents pending on the tool, which the company expects to be awarded soon.

With ownership of the patents, Guidelight said Matrix will be able to reduce the number of competitors in the market and obtain revenue from licensing.

“The patented innovations Guidelight has developed for Matrix pushes the Matrix Wand to the forefront of the burgeoning marketing of vision systems and augmented reality,” said George Stevens, CEO of Guidelight.

For more information about the Matrix Wand, visit thematrixwand.com.

20 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

“This is one of the first cars to use such high strength steel (1500 MPa) in its body structure,” says Bartanen. “Most applications only use it only for bumper beams. But the new

Accord uses ultra-high strength steel in its A pillar and B pillar reinforcements as well as its rocker reinforcements. Honda is requiring MIG brazing only in these areas.

While Honda is not the very first to build such a body structure, none of the previous vehicles even come close to the sales volume of the Accord.

“The Volvo XC60 is also using similar ultra-high strength steel (1,500 MPa) in the structure,” Bartanen noted.

The Accord has historically sold between 250,000 and 400,000 units a year compared to XC60 sales of approximately 25,000.

Bartanen said I-CAR is currently updating its Honda and Acura training available online. The new Accord will be covered in I-CAR’s Collision Repair Overview for Honda and Acura Vehicles (HON01) and should be available within the next few months.

“We have an Accord body in white on its way here right now,” Bartanen noted. “We are going to paint it to show the various steels used in this car and prepare it for display at the SEMA show.”

The ninth generation Accord, which also contains Forward Collision Warning and Lane Departure Warning technologies, officially debuted at dealerships across the U.S. on September 19 at a base price of $21,680 plus destination charge.

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Drew Auto Center Held Free Hands-On Seminar for First Responders

Drew Auto Center in La Mesa, CA, held a free extrication demonstration and seminar on Sept. 22.

I-CAR instructor and welding specialist Toby Chess and Steve Carpenter, extrication specialist-instructor, led the hands-on demonstrations after a one-hour seminar on how to efficiently and safely cut through damaged and mangled late model and hybrid vehicles.

Toby has trained more than 2,000 firefighters across the country on the techniques to quickly and safely work with new and late model cars and how to find the weakest

spots on the frames of vehicles made with high strength steel.

Steve Carpenter also provided state-of-the-art training equipment from Holmantro Rescue Tools.

Over 35 Firefighters from El Cajon, Alpine, La Mesa, Lemon Grove and Ramona attended the event and were able to work on multiple damaged vehicles that were donated by the insurance company sponsors.

Brian Boggeln, Captain of the Alpine Fire Protection District said, “This type of hands-on training is invaluable for our first responders. We really appreciate getting this opportunity.”

Drew Ford sponsored the free seminar for firefighters, EMTs, police and first responders. The seminar was

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Autowrecking, Wawanesa Insurance, FinishMaster, Kent Automotive, Galaxy Towing, and the California Autobody Association. Multiple vehicles were donated for attendees to practice cutting on.

“We put a lot of effort into this event and we’re happy with the turnout.

It’s critical that our first responders get this type of hands-on training,” said Larry Houk, Drew Collision-Fix Auto and Glass Manager.

Bill Drew, President, added, “We’re happy to host the event. This is our way of giving back to the community.”

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 23

Paint Management

E-Coated Parts Procedure with Stefan Gesterkamp

For some months now, people keep asking me why I haven’t recently contributed to Autobody News. The answer is simple, I didn’t feel I had anything interesting or of value to write about. This changed a few weeks ago.

As a paint manufacturer’s rep, there is not a month that goes by without being put in the middle of collision repairers and insurers, expected to chime in on a dispute about what is necessary for a proper repair. One of my customers called and informed me that an insurance agent declined to pay for priming or sealing new ecoated parts. The agent told my customer that sealing or priming new parts wasn’t a necessary step in a proper repair process. Anybody that knows me well will not be surprised to learn that I got very excited about this statement. How can someone in our industry make such an irresponsible statement? And then I leaned back and thought about this for a moment.

During the course of a year, I visit hundreds of shops and have witnessed this exact procedure performed more often than I cared to admit. By simply looking around our industry, an insurance agent that likely never had to repair a vehicle for a living could easily get the impression that sealing or priming new parts is an optional, but not necessary, step in a repair process. I feel comfortable about the fact that most, if not all major paint manufacturers will agree with me, painting directly over e-coat is not a recommended repair process. Furthermore, paint failure as a result of this practice would not be covered by most manufacturer’s warranties.

There are several problems with painting directly over e-coated parts.

Although OEM e-coat is an excellent corrosion protection coating (not sure about some of the aftermarket parts), e-coat contains no UV protection package. E-coat is generally epoxy based and unless completely shielded from UV rays, its surface can become unstable, resulting in paint layer separation and peeling. Some of the newbies in our industry may not remember the early 90’, but many of us do. How many GM and Chrysler

factory paint peelers did you repair in your professional career? These cars and trucks peeled for the same reason, UV exposure to the e-coated surface.

If you repaired one of these vehicles, you likely remember that the surface of the vehicle was powdery after you peeled of the paint layer. This powdery subtends that easily rubbed off onto your fingers was the top layer of deteriorated e-coat.

Just put enough paint on it and you should be fine, right? I wish it were that easy. The first problem with this thought process is: how much is enough? Are you thinking 4, 5, or 6 coats of paint? 8 to 10 coats on some reds? The truth is that no one knows when full coverage is achieved during the paint process. Take a piece of glass and paint it with basecoat and clear.

After it cured completely, hold it up to the sun and see if any light penetrates through. Attempting this exercise will quickly demonstrate that this approach doesn’t work. It takes much more paint than anticipated before 100% coverage is achieved through basecoat application. Protecting the integrity of your work through sealing or priming instantly emerges as a more cost effective solution. And if cost wouldn’t be a factor, the resulting high film build of basecoat color would present a paint problem of its own.

The next issue with painting directly over e-coat is stone ship resistance. E-coat is a very hard coating.

The difference in hardness between ecoat and basecoat is too great for a long lasting paint finish. The application of a primer or sealer to the e-coat will bridge this cap. Although there is no way of fully preventing rock chips from happening, a sealed or primed surface will outperform an e-coated surface after impact by a large margin.

The last point I like to make is the surface prep. E-coat is a hard surface and sanding it can be a workout. 90% of shops will use a DA sander to prep the e-coated surface. If you don’t seal or prime the part, how do you know if you left enough e-coat behind for proper corrosion protection? Most ecoat layers are only 0.5 to 1 mil to start with. My observations suggest

24 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Stefan Gesterkamp is a Master Craftsman and BASF representative who has been in the automotive paint industry for 27 years. He started his career in a custom shop before turning to collision repair. Stefan graduated from the University of Coatings and Colorants in Germany and is the author of “How to Paint Your Show Car.”

that 70% of all sanded e-coat surfaces display some level of transparency or bare metal surfaces. Unfortunately, I have seen people paint right over that too.

When asked why, the most frequent explanation I receive from shops that paint directly over e-coat is cycle time. Shops don’t feel that they can afford to give up the time to seal parts in the booth. While I appreciate the value of cycle time and booth hours, it is no excuse for painting directly over e-coat. Nobody says you have to do it as a part of your final paint work, in a matter of fact, I strongly advice against it. I propose sealing parts ahead of time, ideally as part of the cut-in process. Put one good coat of sealer on the outside of the part, let it flash off to a point that you can safely turn them over and cutin the rest. All the shop has to do after hanging the part is giving the sealer a light scuff by hand for adhesion, clean

and paint. This process allows the shop to maintain booth KPIs and put out a quality repair at the same time.

As an added bonus, you will also improve coverage and color match as well.

Fremont Mechanic John Donovan Memorialized

A public memorial was held Saturday, Oct. 19, for longtime Fremont mechanical shop owner John Donovan, 60, who ran Mowry Automotive Center for 25 years. He passed away Oct. 3 from cardiac arrest, the Fremont Argus reports. The memorial was held 5 p.m. Saturday at the Alameda County Veterans Memorial Park, located at the corner of Paseo Padre Parkway and Walnut Avenue.

“John [was] the best, most honest, and nicest mechanic around,” one longtime customer told media sources. A memorial is currently in place at the body shop, located at 5100 Mowry Ave.

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Industry Insight

John Yoswick is a freelance writer based in Portland, Oregon, who has a body shop in the family and has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com).

Contact him by email at jyoswick@SpiritOne.com.

NACE Keynote Speech Focuses on Thinking about Business with John Yoswick

During his keynote address at the 2012 International Autobody Congress & Exposition (NACE) in New Orleans, LA, former CARSTAR CEO Dick Cross offered his corollary to a Mahatma Gandhi quote by telling a crowd of 800 attendees, “A business is but the product of the CEO’s thoughts. What she thinks, it becomes.”

It’s a concept NACE organizers themselves may need to keep in mind as they acknowledged that while this year’s show offered “some big wins,” it also was down slightly in terms of both exhibitors and attendees.

Twenty minutes, three times a week Cross kicked off the event by saying that although the business successes that he’s had that were cited in his introduction are true, his career has not been a “charmed path.”

“I have probably over two-and-ahalf decades made every business mistake that everyone in this audiences has made, and maybe even some of them that you would never make,” Cross said.

“Unintentionally, I have made decisions that have hurt business performance. I have failed to create circumstances that would allow everyone to make their contribution to the cause. I have terminated people that I have wondered in the aftermath whether it was the right thing to do. There were times in my career when I hesitated to lay my job as CEO on the line, to stand my ground for what I knew was right. But as painful as all those things are to remember and think about, they are the things that drove my obsession to understand and to become very good at the job at the top.”

In addition to leading CARSTAR from 2005–10, Cross has been brought in by private equity firms to run a halfdozen other under-performing companies, and through his consulting firm, he said he’s helped more than 150 other CEOs improve their company’s performance. He said one of the biggest failings he sees among many business owners and CEOs is not regularly setting aside time to just think about the business.

“For most of us in this room, thinking is the hardest work that we have to do,” he said. “If there’s anything else to occupy our time besides

thinking, we’ll generally be doing it.

My observation is that about 90% of the time, most of the CEOs in the United States are doing things that have nothing to do with this job at the top. But thinking helps you understand what the possibilities of your business could be, and helps you to understand generally how to make it happen.”

Dick Cross, former CEO of CARSTAR, presented concepts from his book, “Just Run It!” Copies on display sold out quickly

He offered several “big picture” ways that CEOs should think about the business. For example, he said that businesses are like products in that they have a life cycle; they begin with an idea, an embryo, and then some go on to grow and mature. Whether they go on to continued success or wither and die, Cross said, is often up to the person at the top, who can either get complacent and coast—usually leading to the company’s demise—or who can restart the cycle by finding a new set of customers for the business or by finding other ways to serve the needs of existing customers.

Cross said good CEOs also recognize the difference between leadership and management. Leadership, he said, sets in front of others very enticing goals and helps make them want to help achieve those things. Management is only about assembling the resources needed to execute on that vision.

At CARSTAR, he cited as an example, he worked to help everyone in the organization realize their purpose wasn’t to just fix cars.

“The purpose of CARSTAR became: We help people though a crisis in their lives,” Cross said.

The kind of thinking that makes

26 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

companies succeed, Cross said, can be accomplished by those at the top who set aside 20 minutes a day, three days a week, to tune out other day-to-day distractions and just think about the business.

“Running a business is not a fulltime job,” Cross said. “You probably spend most of your time doing other stuff, stuff that others ought to be doing themselves rather than having you do it.

But you can do a great job running your business 20 minutes, a day three days a week, thinking about those things.”

Show leaders offer their view Two years after shifting away from holding NACE in Las Vegas each fall, event organizers cited a number of reasons attendance may have been down this year, from the still-slowly-recovering economy to the New Orleans location, which has fewer shops than Orlando within an easy-to-drive distance.

“Attendance at all the key (show)

events was up,” Lindsay Roberts of Hanley Wood, who manages the show for its sponsor, the Automotive Service Association, said just hours before the show closed. “We had some major players who hadn’t exhibited at the show for a while. We got some of the paint companies back. We got some of the OEMs back. But we are a little disappointed.

Total attendance is going to be down. It’s pretty hard to compare to the Orlando last year where we up over 20% from the 2010 event. We had really hoped we would see that growth through to this year. We’ll release final numbers probably within the next five to seven days.

But we do think we’re going to be slightly down over last year.”

But Roberts chiefly cited a continued decline in the number of companies exhibiting at the show, which is down about 17% from as recently as 2010.

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NACE Sees Fewer People, But Quality Events Collision repair professionals from across North America came together recently at NACE in New Orleans, LA, to network, see the latest and greatest in equipment and products, and to contemplate a smaller but still high-quality event. Some 225 companies occupied 50,000 sq. ft. of exhibit space but attendees were fewer in number from last year’s Orlando venue.

“It was a great pleasure to have Dick Cross open the 30th Anniversary general session,” said Ron Pyle, ASA president. “He delivered a practical and easy-to-implement plan for success. I am sure everyone in attendance agrees that he was extremely motivational and an excellent choice to kick off this very special ASRW.”

Leadership and Management Tactics NACE began October 10 with a series of seminars and lectures regarding sales tactics and innovation of paint and materials, including The Art of the Deal—Acquiring and Developing New Locations; Marketing to Generations X and Y; and Paint and Materials: The Paradigm Shift.

The afternoon sessions saw a focus on leadership, delegation and customer management tactics, aimed at retaining and appeasing your staff and customers. Seminars included Leadership Best Practices—How to Inspire, Delegate and Coach Your Team to Success, by Mike Anderson; Calming and Retaining Angry Customers, by Margie Seyfer and Guilt

by Association—Defining Your Image,

by Tony Nethery. Kurt Lammon of Urethane Supply Company instructed viewers on how to properly weld plastic with nitrogen, while Dan Espersen of ALLDATA taught the best practical applications of OEM Information.

I-CAR spokesmen Bob Zelano and Jeff Poole ran afternoon seminars on Corrosion Protection and Hazardous Materials, Personal Safety and Refinish Safety, respectively.

The first day of NACE was capped off with the Assembly, a confidential, closed-door forum for collision repairers.

Profit Building NACE continued with tutorials, demonstrations and information pertaining to every aspect of the collision repair industry. The exposition portion of the event also opened at 10:00 am, offering the latest products, services

and technologies from industry leaders.

The Profit Building Pavilion portion of the exposition showcased vendors with customer-driven products, such as Autoshop Solutions, Demandforce, Mudlick Mail Co. and Net Driven Media.

Ron Pyle, ASA President and ASRW Chair

The morning of Oct. 10 saw several seminars headed by I-CAR. Bob Zelano ran a seminar on automotive foams and Tony Nethery instructed participants on proper measuring methods.

Educational highlights included ICAR representative Shawn Collins’s workshop on Blueprinting Process and Damage Discovery, (BLU01); I-CAR’s Bob Zelano presenting the Steel Unit-

Rich Southerland of Alldata attended the Thursday premiere of Blueprinting Process and Damage Discovery and stated, “This is the best I-CAR class I’ve attended. I couldn’t imagine how this would not benefit any tech or shop employee.”

The course led students beyond the disassembly of damaged parts to help them uncover hidden damage that can impact the repair process and provided a number of demonstrations, including quick checks and implementation tips. Students who attended the course gained an understanding of the definition of the blueprinting process and how the process can help improve repair quality through a standardized approach to collision repair planning.

The day wound down with the ASRW Welcome Party, sponsored

by CCC, was held at the iconic Mardi Gras World venue, basically a warehouse of larger than life characters used on floats and in Mardi Gras themed events. Attendees were toured through the warehouse where Mardi

Gras floats are manufactured, and ended up at the Grand Oaks Mansion next door where some excellent local dishes were offered.

NACE events on Oct. 11 ended with the ASRW Industry Awards ceremony completing the second day of NACE. The ceremony was held at the National World War Two museum.

The NACE conference continued on Oct. 11 with several I-CAR seminars, human resource tutorials and team development clinics. The ASRW Collision Forum also took place in the morning.

MSO Symposium The ten-and-a-half-hour MSO (Multistore operators) Symposium hosted by Matthew Ohrnstein of Symphony Advisors took place Friday. The symposium spanned the duration of the NACE Friday schedule and was comprised of five panels that aimed to help multi-store business owners, many of whom take over failing operations in order to rejuvenate them, improve aspects of their businesses including culture, branding, customer relations, leadership and finance.

See Fewer People, Page 30

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ized Structures Technologies and Repair class and Bryan Dodge of Dodge Development’s presentation on balancing your work and life.

Blueprinting Process and Damage Discovery This new course provided an interactive training experience and was filled to capacity during both sessions. ICAR offered special premiere pricing for this course launch with a cost savings of $56 for standard pricing.

The new Live Demo course demonstrates I-CAR’s commitment to increased student interaction in the classroom and uses an actual vehicle to demonstrate technique while engaging students in the learning process.

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Continued from Page 28

Fewer People

The MSO Symposium also included networking opportunities for owners, and ended with a networking reception in the evening.

Shawn Collins held his second seminar on Blueprinting Process and Damage Discovery, while Bob Zelano taught the second Structural Straightening Steel seminar, both hosted by ICAR. The seminars were add-on educational seminars available on both Thursday and Friday. OEMs including General Motors, Toyota and Nissan all sponsored booths during the show, offering promotional giveaways and showcasing new products.

Expo Floor Some highlights from the on-floor demo area included exhibits from Innova Electronics Corp. on how their CarScan tools benefit shops and CAS of New England revealing The Truth About Programming in Today’s Vehicles.

Kaeser Compressors created an informative technical (not sales-oriented) presentation titled “Compressed Air Requirements for Waterborne Paints.” It was held October 10 to help repairers

make practical choices for their shops.

Topics included: sources of moisture and contaminants, air system components that affect paints and finishes, the

Mike Anderson, CollisionAdvice.com spoke on Financial Best Practices

impact of air amplifiers and more.

Some workshops on Friday afternoon focused on the financial aspect of collision repair. Mike Anderson of CollisonAdvice.com spoke on measuring performance in Financial Best Practices. Dan Stander of FIX Auto Highland Ranch moderated The Keys to Successful Estimating! panel, in which data providers addressed audience questions.

Denise Caspersen of ASA and Melissa Miller of CARSTAR encouraged women to be courageous leaders in their seminar, one of several in the

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Twenty 2.0 peer benchmarking A new-to-NACE-this-year, Twenty 2.0 peer benchmarking event was attended by about 20 repairers and ran on Friday afternoon hosted by keynote speaker Dick Cross.

Twenty 2.0 is/was a peer benchmarking/virtual 20 group concept, applicable to both mechanical service/repair and collision repair shop owners focused on doing “the job at the top.” The 90-minute session began with a half hour introductory session, followed by an hour-long breakout session. All participants had the opportunity to enroll in the formal (ongoing) Twenty 2.0 virtual 20 group at the conclusion of the session.

“Shop owners interested in obtaining the value of participating in a 20 group process with a non-traditional time or financial investment won’t want to miss this unique session,” said ASA president Ron Pyle in advance of the event. “We’ve taken the 20 group concept and upgraded it to the digital age. Participants who formally enroll will receive all the benefits of belonging to a 20 group, with a virtual twist.”

NACE Keynote Speech

more exhibitors on the show floor,” Roberts said. “We need to give attendees three days worth of product and people to network with. We need the executives from these major companies who were here walking the aisles to have booth space on the show floor and to support the show.”

She did say that more than 40 companies have already signed on for next year’s event, up one-third from the number who had signed contracts for this year’s show during the 2011 event.

But NACE organizers have also given themselves the added challenge of holding the 2013 event in Las Vegas next October 16–19—in the same city just two weeks before SEMA, which has been working to attract collision repair industry exhibitors and attendees.

That may have been one of the reasons NACE organizers took the unprecedented step of also announcing that two years from now, NACE will again be on the east coast, returning to the city that hosted the very first NACE back in 1983: Nashville, TN.

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30 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Continued from Page 26

GENUINE SERVICE & PARTS

Continued from Page 16

Key Bill Vetoed

in this long drawn-out battle.”

“While the veto of SB 750 is a victory for the independent repair industry and for locksmiths, it is most of all a victory for the state’s consumers who will have convenient access to the key codes for their vehicles just as the state legislature had mandated in 2006,” stated Aaron Lowe, AAIA Vice President of Government Affairs.

John Burton, Chair of CADEM sent a letter supporting the veto, which read in part: “In 2000, I authored SB 1146 that allowed independent repair shops to have the information necessary to service their customers’ vehicles. This measure was strongly opposed by the auto industry and dealers that were benefiting from the exclusivity they had to deal with motor vehicles computer access codes, etc. It is no secret that the manufacturers and dealers have a vested interest in keeping these motor vehicles computer access codes and tools to themselves because they have a captive customer base.

“Statement of policy for SB 1146

was that it was important “to encourage competition so that consumers have choices available to them in the service, repair, and parts used in the service or repair of motor vehicles.”

“The bill took almost two years to pass, and there were several negotiations with manufacturers, including protection for certain proprietary information.

“In 2006, Senator Migden passed SB 1542, which was sponsored by the Automobile Clubs, to provide vehicles effective means of obtaining replacement ignition keys in a secure and convenient manner. Given that more and more vehicles were designed with “smart keys,” it made it necessary for locksmiths to have the key code information from the manufacturers.

“The proponents of SB 1542 presented numerous examples in which customers were greatly inconvenienced when locksmiths were unable to create keys because the manufacturers refused to provide them with key code information.

“In some situations, vehicles owners were left stranded in unsafe situations or forced to have their vehicles towed to dealerships, sometimes at great distance and expenses, for re-

placement keys. In many of these examples, vehicle owners had to wait a long time for their keys to be made by manufacturers and were forced to pay exceptionally high prices.

“BMW sought an exemption to exempt certain manufacturers until 2013 from the requirement to provide key information for locksmiths as long as the manufacturers provide a 24/7 telephone or electronic request line in which the owners could request the keys within one day via overnight delivery. The manufacturers who qualified for the exemption were all foreign manufacturers - BMW, MercedesBenz, Jaguar, Land Rovers, and Porsche.

“The three-year exemption for the foreign manufacturers was to give them lead time to perfect their processes in order to comply with the law. 90% of the automakers had complied with the law. Only it seems that BMW has refused to do so.

“If I were locked out of my car or lost my key, I would rather have an immediate locksmith on duty as opposed to waiting 24 hours to wait for a UPS or FedEx package to come to me. A locksmith costs between $100 to $400 for the replacement. The cost of a deal-

ership replacement key is from $300 to $500 plus towing charges. Locksmith association notes that locksmiths carry a $1 million liability bond alone and other insurance. For vehicles such as Volvo and Lexus, the key code transfer is done wirelessly. The locksmith does not view or have access to the code information.

“The total elimination of the sunset provides BMW with, if you would pardon the pun, a lock on all of its customers who may have lost their keys. I personally don’t think this is fair. Also, waiting for your keys to be Fed Ex’ed in 24 hours versus having a locksmith show up within a half an hour or an hour is an easy call.

“BMW does claim that out of over 400 something people who lost their keys, only one did not receive their keys within 24 hours. Again, that seems to be no reason to give BMW a monopoly for replacement keys. Also individual car owners would have the ability to go with the 24-hour key replacement, including the possibility of having the automobile towed at a pretty stiff cost, or to call a locksmith.

Again, this is a customer’s free choice.

I would respectfully request that this measure be vetoed.”

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 33

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News Honda Recalls 820,000 Civics, Pilots Over Headlight Problem

Honda recently expanded its March recall of vehicles with a low-beam headlight wiring issue to include 820,000 Civics and Pilots in North America, its second big expansion of a recall in recent days. “[A] potential failure with the wiring of the headlight switch ... may cause the low-beam headlights to become inoperative” in the model-year 2002-2003 Civic sedans and 2004-2005 Pilot sports utility vehicles that have been added to the recall, the carmaker said in a statement. Meanwhile, some 550,000 model-year 20022004 CR-Vs and 2003 Pilots were the vehicles named in the initial recall in March.

Honda said the low-beam problem could “increase the risk of a crash,” but stated that “no crashes or injuries have been reported related to this issue.” The company advised owners of the models in question to take their cars to authorized Honda dealers for inspection and replacement of components in the headlight wiring system if necessary.

Honda also recently expanded a May recall related to a leaky power steering hose to include 572,000 model-year 2003-2007 Accord V6 cars in the U.S., in addition to the 2007-2008 Acura TL models in the original recall.

High temperatures under the hood on those models can cause the power steering hose to crack and leak fluid that could cause smoke or even a fire. Honda said one engine fire had been reported but no reported accidents or injuries had occurred as a result of the problem.

The carmaker said owners of vehicles being recalled for the power steering hose issue wouldn't be able to have their cars fixed until early 2013 due to a shortage of parts.

The company said it began mailing customers about the lowbeam recall in late September.

CALIFORNIA • NEVADA • ARIZONA

GM Recalls 41,000 Chevy, Pontiac and Saturns Over Fuel Leak

General Motors Co. is recalling about 41,000 Chevrolet, Pontiac and Saturn cars in the United States because of concerns that a defective plastic part might cause a fuel leak, according to the National Highway Traffic Safety Administration. GM’s latest move follows the company’s recall of 473,841 Chevrolet, Pontiac and Saturns in September to fix a condition that could lead the cars to move when the drivers think they are in park. Potentially, 40,859 vehicles sold in Arkansas, Arizona, California, Florida, Nevada, Oklahoma, or Texas could be affected in the latest recall.

Chrysler Halts Tests Plug-ins After Batteries Overheat

Chrysler Group LLC temporarily suspended testing of its fleet of advanced plug-in hybrid electric vehicles after three of the pickups were damaged when their prototype lithium-ion batteries overheated.

The trucks were unoccupied when the incidents occurred, and no one was injured. But the automaker will replace the batteries in the test vehicles with units that use a different chemistry.

“Hiccups happen. We’re disappointed, but it by no means spells the end of the program,” said Chrysler spokesman Eric Mayne.

The pickups are part of a fleet of 109 trucks being evaluated by the Auburn Hills automaker and a group of utility companies and municipalities across 20 states. It is part of a program jointly funded by Chrysler and the U.S. Department of Energy.

They include the first-ever factoryproduced vehicles capable of reverse power flow. The experimental system would allow fleet operators to use their plug-in hybrids to supply electricity for a building during a power outage, reduce power usage when electric rates are high or even sell electricity back to their utility company.

“You can link them all together and establish your own mini grid,” Mayne said.

34 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chevy Dealer Sells Car for Wrong Price, Buyer Arrested

A Virginia man spent four hours in jail after purchasing a Chevrolet Traverse from Priority Chevrolet in Chesapeake, VA. The dealer’s sales staff accidentally sold the SUV to Danny Sawyer for $5,600 less than they should have, and when Sawyer refused to sign a new, more expensive contract for the correct amount, the dealership called the local police alleging the buyer had stolen the vehicle. Law enforcement then picked Sawyer up and held him for four hours before getting the situation straight.

Dennis Ellmer, president of Priority Chevrolet, says he owes Sawyer an apology on behalf of the dealership, and had intended to do right by the buyer by letting him have the vehicle at the agreed-upon price. But Sawyer’s lawyer says it’s a little too late for saying sorry. The briefly-incarcerated owner has filed two lawsuits against the dealer, accusing the business of malicious prosecution, slander, defamation and abuse of process. All told, the suits seek a total of $2.2 million in damages, plus attorney fees. That $5,600 seems awfully cheap now.

GM Recalls Saturns

General Motors is recalling certain model year 2007-2010 Saturn Aura and model year 2008-2010 Chevrolet Malibu and Pontiac G6 vehicles, equipped with a 4-speed automatic transmission. On these vehicles, the tabs on the transmission shift cable end may fracture and separate.

If the tabs were to fracture and separate, the shift lever and the actual position of the transmission gear may not match. The driver would be able to move the shifter to PARK and remove the ignition key, but the transmission gear may not be in PARK. The vehicle may not be able to be restarted and the vehicle could roll away after the driver has exited the vehicle, resulting in a possible crash without prior warning. GM will notify owners, and dealers will install a retainer over the cable end or replace the shift cable as necessary. This service will be performed free of charge.

www.autobodynews.com

November 2012 GM Recalling Some Sonics

General Motors is recalling certain model year 2013 Chevrolet Sonic vehicles manufactured from May 29, 2012, through August 29, 2012.

When a turn signal lamp fails to operate, the Body Control Module in these vehicles does not detect this condition and will not indicate the condition to the driver. These vehicles fail to conform to Federal Motor Vehicle Safety Standard No. 108, “Lamps, Reflective Devices, and Associated Equipment.”

If the driver is not aware that the turn signal is not functioning and does not have the light repaired, other drivers may not be alerted that the vehicle is turning, increasing the risk of a crash. GM will notify owners, and dealers will reprogram the BCM and the vehicle’s key fobs, free of charge.

The safety recall began on October 3, 2012.

Dodge Charger As All-Wheel Drive Enters Police Market

Chrysler Group is upping the ante in the battle for the police cruiser market, offering a new all-wheel-drive version of its Dodge Charger Pursuit sedan equipped with a powerful 5.7-liter HEMI V-8.

“Adding available all-wheel-drive capability to the already popular Dodge Charger Pursuit will broaden the Charger’s appeal to police departments that are accustomed to dealing with rough winters and adverse weather conditions,” said Peter Grady, vice president in charge of fleet operations for the Auburn Hills automaker.

“With the Charger Pursuit now offering dual capability of both rear- and all-wheel-drive, we’ll be able to meet the needs of our police fleet customers across the country.”

The all-wheel-drive version will be equipped with the same engine as the HEMI-powered rear-wheel-drive model that achieved the fastest-ever lap time at the 2012 Michigan State Police’s Vehicle Evaluation Test at Grattan Raceway in Michigan. The engine delivers 370 horsepower and 390 lb.-ft. of torque.

Chrysler Sales Up for Small and Mid-Sized Cars

Strong sales of small and mid-sized cars propelled Chrysler Group to its best September since 2007 and its 30th consecutive month of yearover-year sales gains.

The automaker sold 142,041 units last month, up 12% from September 2011.

Car sales rose 27% to 42,050, while sales of light trucks climbed 6% to 99,991.

Through September, Chrysler Group’s sales totaled 1,250,670, up 24%.

All of the automaker’s brands posted gains in September, with Ram recording the smallest gain at 4% and Fiat the largest at 51%. Chrysler said six of its vehicles had record September sales.

“With our current product lineup, record low interest rates and a stable U.S. economy, we remain optimistic about the health of the U.S. new vehicle sales industry and our position in it,” Reid Bigland, Chrysler’s head of U.S. sales, said in a statement.

The Dodge Avenger recorded the largest gain last month, up 89% to 8,716 units. Sales of the Fiat 500 also rose sharply, climbing 51%.

VW Beetle Convertible to Get Platform Shared with Jetta, Golf

GM Will Hire 3,000 HP Workers to Bring Info Tech Work in-house General Motors said it will hire 3,000 Hewlett-Packard Co. employees as part of its ongoing effort to bring most information-technology work back in-house.

The hiring will be part of a new multi-year software and services agreement between the two companies. GM described the deal as “costneutral,” but it did not provide any additional details on the size or length of the contract or where the workers will be located.

The employees being hired already work on GM’s business at HP and are expected to be on GM’s payroll within six months. An undisclosed number of HP employees currently assigned to GM are not affected, the companies said.

“These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners, and reduce the cost of ongoing IT operations,” Randy Mott, GM’s chief information officer, said in the statement.

The convertible version of the Volkswagen Beetle will get its debut at the Los Angeles auto show in late November, shortly before the car goes on sale in the United States. The launch of the 2013 VW Beetle convertible trails the arrival of the redesigned Beetle coupe by about a year in the U.S., where Volkswagen expects to gain a majority of sales. Both Beetles use VW’s PQ35 front-drive platform that is shared with the current Jetta and Golf. VW says the Beetle convertible’s folding cloth top can be raised or lowered in about 10 seconds. Safety equipment includes rollover bars concealed behind the back bench seat. If the car’s safety system senses a crash, the rollover bars are deployed.

U.S. Sales Up, GM & Ford Down

www.autobodynews.com CHECK IT OUT!

U.S. auto sales, led by Toyota, Kia, American Honda and Volkswagen, rose 13% last month as the annualized pace of sales accelerated to 14.9 million—the highest rate since March 2008. The overall results topped analysts’ expectations and signaled the auto industry is poised to continue overcoming mixed economic reports to finish the year on a strong note.

Maserati Recall: Brake Lights

Maserati is recalling almost 1,800 of its 2008-10 GranTurismo coupes and convertibles for what it calls a “deviation” in the manufacture of taillight assemblies. The assemblies’ bulbs, including those in the brake lights, may fail, the automaker informed the National Highway Traffic Safety Administration.

Maserati said it investigated after noticing a large number of warranty claims. The high-centered brake light, it noted, was not affected.

Toyota to Add 21 New Hybrids in Next Three Years

Toyota Motor Corp. is boosting its green vehicle lineup, with 21 new hybrids in the next three years, a new electric car later this year and a fuel cell vehicle by 2015. Japan’s top automaker outlined its green vehicle plans amid growing concerns about global warming and surging gas prices. Toyota will offer an electric compact called eQ, based on its iQ model, in Japan and the U.S. in December though the number of the vehicles made will be extremely limited —about 100. The fuel cell vehicle, which runs on hydrogen, will be offered from 2015.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 35

Continued from Cover

Steve Plier

Auto Repair Excellence, Inc. (CARE).

ABN: Why did you quit State Farm?

Plier: I resigned my position at State Farm because my responsibilities were being defined as ‘manage in a perfect world by numbers.’ More often than not, in this industry, reality is much different than the perfect world. Reports/scorecards of repairers are formed through a perfect world computerized format. For example: new parts can and are often damaged in shipping, causing returns and delays; used parts often are not of quality to be used in the repair process; vehicle owners often leave their vehicles (that are safe to drive) at repairers on Fridays because a claims representative has ok’d a rental. These examples are only a few that come to mind that can affect a repairer’s scorecard. Some of the numbers/averages on the scorecard include formulas that have key performance indicators in a weighted format that could never be explained as how the particular number/average score was determined.

Not a comfortable situation when attempting to discuss a repairer’s performance considering we do not live in a perfect world.

ABN: What do you think of the PartsTrader pilot program?

Plier: My opinion of the Partstrader program is not positive. The information provided to me by repairers on the program, from individuals that were in meetings with State Farm employees during the test pilot roll out in Alabama, the information that is being provided by the many different publications and the information provided

by State Farm Consultant George Avery at the recent Georgia Collision Industry Association meeting indicate to me there are a lot of questions that State Farm and/or PartsTrader either refuse to answer or do not have an answer for. I would suggest everyone to consider if something is mandated, why is it being mandated? Items, programs, actions, etc. that have to be mandated usually have a lot more bad for a large multiple sectored group than good. Is this the reason the portion of the Select Service agreement is being actively enforced on this program? Any repairer on the Select Service program agreed if re-

quested/required by State Farm to use a parts locating/procurement program they would. There are several others sections within the Select Service agreement with the same type language that repairers have agreed to.

ABN: Why do you think State Farm introduced this program? Where do you think State Farm is going with it?

Plier: I feel there are multiple reasons. First and for the immediate time, I feel State Farm was aware of manufacturers offering parts pricing match programs and believed the implementation of a program such as PartsTrader could lead to suppliers taking an aggressive approach to expand business by reducing prices in a bid/quote program such as this. However, I believe the bigger purpose here is if successfully implemented, this would open the door to the other sections of the Select Service agreement requiring additional actions from repairers as agreed to such as this.

ABN: How do you think the program will affect the industry? Repairers are saying this pilot program is inefficient and costs them more than its worth.

Plier: I feel if State Farm is successful with this program resulting in mandated use of locating and procurement systems, the balance of the insurance industry will quickly follow with the same or similar programs. My opinion is this will not be good news for the consumer. I know State Farm is saying this is intended to be focused on claims expense and no one should be against anything that might result in reduced cost, and according to State Farm, a possible reduction in premiums for policyholders. I am currently a State Farm policyholder; I definitely want my premiums to be as cheap as possible, but even more importantly, I want my vehicle repaired properly. For repairers to keep up with the ever-changing technology, training is a must.

Equipment requirements must be maintained so if programs such as this affect industry members’ ability to meet these needs it is not good. I have read and heard Mr. Avery say State Farm does not want to tell repairers who to buy from, but I have not heard State Farm address the actual inefficiencies that to date I have seen this program cause to repairers and other inefficiencies I have been told of by repairers. There does not seem to be any concern from State Farm and/or Partstrader that this program does indeed have an additional labor and adminis-

36 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

trative time/expense associated to it for the repairer and supplier. I read in an article, that according to the writer, the repairers they had spoken with suggested an average additional 30 minutes per day. The repairers I have spoken with in Birmingham suggest to me they approximate spending an average of an additional 30 minutes per claim. Birmingham repairers note you may have some claims that only require an additional five to ten minutes of additional time, but you also have those claims they may require an additional hour of administrative time. I have not spoken specifically with any parts suppliers on the PartsTrader list, but feel any supplier on the Partstrader list is also incurring additional administrative time and expenses if they are following the rules of the program.

ABN: Does this program offer any benefits to the repairers?

Plier: Based on the current information provided and from the feedback received from Birmingham area repairers, I have not been able to identify what I would consider a benefit for a repairer on the program. State Farm has stated they have received positive feedback from their evalua-

tions, the only thing is, to my knowledge, State Farm has not to this date provided a single item with the industry that can be viewed as positive feedback. If there has been anything positive for the repairer, I have not heard nor have I read about it.

ABN: With repairers highly wary of the program, what do you think the solution is?

Plier: I feel the distrust and confrontational nature of this industry between the two parties are much deeper than this program. I am not sure there is a simple solution for this issue if all sides must benefit. If attempts are made to identify efficient alternatives, both sides must work together to identify the many different possibilities.

There already exist electronic ordering opportunities used by many repairers, so if there is ever to be a solution that all sides agree to, I feel there will be multiple businesses/ venders to choose from. I do not feel mandating a particular program is the answer.

ABN: Was State Farm too aggressive in launching this program?

Plier: Considering the information that See Steve Plier, Page 42

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East Bay CAA Members Get Schooled at University of Toyota

by Ed Attanasio

They don’t have a sports team, a fight song or a mascot, but it’s a major institution that can help body techs and painters throughout the country to work smarter while repairing a leading car brand. It’s called the University of Toyota and it offers the collision industry a unique opportunity to learn how to work on 27 different models of University of one of the world’s Toyota’s Chris most popular vehiRisdon was the keynote speaker at cles ever made. the East Bay CAA’s When the East September meeting Bay chapter of the California Autobody Association (CAA-EBC) convened for their September meeting in Walnut Creek, CA, the evening’s speaker was Chris Risdon, a senior product education and development administrator for the University of Toyota’s product education department. That means that he’s a mega-expert on how to repair any vehicle manufactured by

Toyota within the last two decades.

Risdon shared his wisdom with the shops in attendance and his presentation was followed by a spirited question and answer session. The hottest topic in the room revolved around how to properly work on the Prius. With more than one million now in the country’s fleet and especially popular in California, body shops want to know more than before about this model and the manufacturer’s other hybrids.

The University of Toyota trains approximately 8,500 collision professionals every year at their three locations—in Los Angeles, Jacksonville, FL and New Jersey. The cost for the training is nominal and most classes last no more than two days. The University’s mantra is “Fix-It-Rite/Fix-It Smart” and Risdon explained that its one of the few institutions of its type in the world.

“We’re one of the few car manufacturers out there that teach collision repair,” Risdon said. “By offering collision professionals the latest tools to fix these vehicles, it helps the industry as a whole. It impacts the body shops, be-

involved, such as the 2012 Camry SE with the new Entune in-car technology, for example, you’re going to need the best, most updated repair procedures available. We want your techs fixing these cars with confidence and correct-

Arth & Sons in Oakland, California was well-represented at the meeting with (from left) Owner Ron Arth, Body Tech Scott Ledbetter and Assistant Manager Tom Lehman enjoying the evening.

sophisticated, the proper information and associated procedures will be more essential than ever before.”

Risdon stressed the importance of accessing Toyota’s ongoing collision repair bulletins, because new, important information becomes available to shops all the time, he said. “By staying on top of the changes, you can eliminate the guesswork. With our latest models and all of the new technologies

ness and without training and data, they’re just guessing. If you don’t have the latest technical information, you’re probably fixing it incorrectly.”

Hybrid classes are one of the most coveted forms of training offered by the University of Toyota for obvious reasons, Risdon explained. When he asked how many shop owners in attendance had at least one Prius in their shop right now, more than a few hands were raised.

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Estimator Bernadette Lira (at left) and Owner Giovanna Tanzillo from Uptown Body & Fender in Oakland brought Michael Bott (center) owner of Torchio’s Auto Repair as their guest to the EB-CAA’s September meeting

“Our 100% dedicated hybrid training is world-class and our advanced hybrid training is very popular with body techs nationwide right now. By coming to the university and tapping into this training, you learn how we want it done, and that’s vital to developing a solid, safe and effective repair plan.”

As Toyota strengthens its position in the development of new vehicles using emerging technologies, the University of Toyota will be offering new training, Risdon said. “We’ve got a lot of new, exciting things on the boards right now, including hydrogen vehicles and natural gas cars. We’ve also been exploring the viability of an autonomous car, which drives itself.

That’s obviously down the road, but we should all accept the reality that within the next six to eight years, conventional gas-powered cars will be the minority in this country.”

The University of Toyota was created to help the collision industry to fix its cars right, even though it’s not the manufacturer’s main objective, Risdon stated.

“We’re actually in the car sales business, not the repair business. But,

we know that by fixing our vehicles properly the first time they come into your shop, it provides a better customer experience, makes everyone’s lives easier and makes your techs more productive. And that’s we provide all this invaluable training.”

In other CAA East Bay news, Mike Govette from FinishMaster distributed model trucks for the chapter’s 15th annual Model Truck Customization event, to be held on Nov. 20 at the prestigious Blackhawk Auto Museum in Danville, CA.

The model trucks for this year’s Toys for Tots Model Truck Customizing Competition on November 20th were passed out to the participants after the meeting. From left, Bill Andrews, head automotive instructor at College of Alameda, Event Coordinator/Founder Mike Govette and Peter Lock, head automotive instructor at Contra Costa College get ready to compete

CAA Orange County Chapter Meets on Regulations

The California Autobody Association–Orange County Chapter met on Oct. 17 for a presentation about regulations. Guest speaker Jack Molodanof of Molodanof Government Relations works closely with the Department of Insurance and Commissioner Dave Jones and is also on the Bureau of Automotive Repair Advisory Council.

Some of the topics he covered included: ● Who will fight for this industry on future legislation that could put you out of business? The CAA has a full time lobbyist and staff working in this area. ● Do you know how to keep up with the Bureau of Automotive Repairs laws and regulations? The CAA is part of the BAR Advisory Board and provides members with the Collision Industry Guide. ● Are the insurance companies changing the rules every day? ● Are you aware how the Department of Insurance can help you? The CAA works on your behalf to eliminate steering and other problems with insurance companies.

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On Creative Marketing

The New Co-Op Marketing with Thomas Franklin

In the early ‘90s, the term “Piggyback marketing” meant that the trial of a new product on the market was linked to another product that already had wide acceptance in the marketplace. The intent was that this weaker new product would be “piggybacked” on the strength of the “carrier” product. Soon the practice was expanded so that many products were “piggy-backed” on products already being used. You see this all the time when you receive a credit card bill or gasoline credit card bill and find offers inside to buy a wide range of products. You know this must be a successful strategy because it has continued on so long.

The question is how can a fixed service like collision repair, use “piggy-backing” to increase sales and business volume? Marketing guru Jay Abraham, in his great book Getting Everything You Can Out of All You’ve Got, calls this a “host-beneficiary” relationship. Greatly simplified, it’s sort of a co-operative marketing plan whereby two (or more) companies that are non-competitive but possibly complement one another’s products or services, can either bring customers and sales to one another’s businesses, or bring some other value.

Collision repair facilities engage in this kind of relationship all the time, but probably don’t think of it in those terms. DRP relationships are the best example. Insurance companies send customers to the shop. The value they receive in return mainly consists of lower labor and parts and materials costs. Dealership relationships and fleet management company relationships operate similarly. Some shops also have a more direct exchange relationship with a towing firm, pinstriping and graphics service, car

rental company, transmission repair shop, personal liability attorney or car wash.

As valuable as these relationships may be, often a few major shops have most of the best relationships in an area locked up so that many other shops are out looking for business the hard way. For them, it may be time to engage in some creative thinking about other possible “piggy-back” or co-operative arrangements. Even though the SEMA Show in Las Vegas is becoming a major gathering place for collision repair professionals, few shops have yet to take advantage of the vast accessory marketplace. Dealerships, of course, have entire accessory showrooms and enjoy a substantial profit flow from accessory sales. But few shops can afford to invest in a similar showroom, and only a few push for add-on accessory sales.

An obvious “piggy-back” relationship would be with one or more accessory stores in the area. But less obvious are other retail establishments that offer audio-video products or cosmetic elements that car owners should find attractive. Some printers now offer wraps for cars. Since vision is important for safe driving, an optometrist might be interested in a co-op referral arrangement.

A common arrangement is cash for referrals—especially with a towing company or new and used car dealership. But this is mainly a oneway street and can be very expensive.

The ideal co-op arrangement is one where the shop also refers business to its co-operative partner. The easiest way to do this is through promotional programs. Obviously website links and other web-based connections are easy to arrange, but if a shop also sends out a newsletter or sends sum-

PartsTrader Reduces Minimum Quote Time to 30 mins

PartsTrader announced that in two of the four markets where the system is being used, the minimum time a shop can give vendors to quote prices on parts has been reduced to 30 minutes, rather than the previous one-hour minimum. The change is designed to improve the efficiency of using the system for shops, the company said.

Suppliers can still quote prices in “overtime” but only until the shop begins review of submitted quotes. The system also allows the shop to extend the deadline in 30-minute increments if they wish to receive more quotes, or to use “placeholder quotes” for OEM dealers with which they have established relationships.

40 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Tom Franklin has been a sales and marketing consultant for fifty years. He has written numerous books and provides marketing solutions and services for many businesses.

He can be reached at (323) 871-6862 or at tbfranklin@aol.com.

See Tom’s columns at www.autobodynews.com under Columnists > Franklin

maries of completed work with enclosures there is an opportunity to refer many other kinds of businesses, much as your credit card companies do. If a referring business also has on-line and/or mail promotions, the arrangement would have your shop information (or even literature) included with theirs.

Mailing a summary of completed work after a vehicle has been delivered is a very inexpensive way to establish a longer-term relationship with customers. If a vehicle owner resells or trades-in the vehicle, having a summary of work done on the vehicle may help keep the purchase price higher. Along with sending the summary, a promotional offer for a discounted detail or cosmetic improvement should be included, plus perhaps a specified discount for a friend, family member or business associate in need of vehicle body repair. For a shop with deeper pockets,

sending a before and after photo along with the summary would be appreciated.

A more in-depth approach to the co-op referral partnership can extend to events, educational seminars or workshops and more. Driving schools would be a good candidate for this.

New drivers are brought to the shop for a walk-through to see the damage that may have been done to vehicles because of careless or reckless driving.

And if the driving school has a weekly or monthly group presentation, the shop should always have someone there to answer questions. Many shops now do exchange events with insurance agents and auto dealerships, but this should only be a beginning. The possibilities of piggybacking on the success of other businesses and entering into cooperative promotional schemes will only be limited by the imagination and ingenuity of a shop owner or manager.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 41

Continued from Page 36

Steve Plier

has been provided to the industry, ‘yes.’

I do not believe the details had been thoroughly reviewed and considered.

ABN: What does it suggest to you when State Farm can’t come up with a single benefit to repairers?

Plier: Maybe because there is not a single benefit associated to the shop in regards to this program. I believe if State Farm had identified benefits for the shops and or the suppliers, we would all have heard about them by now.

ABN: What kind of damage control could State Farm do now?

Plier: I’m not sure there is a definite single thing that could be focused on here. There are many issues in the repair industry that need to be addressed for the “RIGHT REASON”—the consumer. Many of these issues have been around for many years, but have never been addressed. As rules identified in repair agreements continue to expand, the magnification of the many issues grow. For example: the need for an independent third-party survey process

to identify a competitive pricing range; the agreement that the repair procedure pages are not pick and choose, but will be honored completely at all times, just to name a couple.

ABN: What should affected shops be doing right now about PartsTrader?

Plier: My recommendation would be for each and every repairer on the Select Service repair program or any repair program to review their program agreements and then reread them again. List questions or concerns identified in the agreements and contact the particular insurance company to discuss any questions or concerns.

After any discussions, make a business decision based on consideration of all factors of what you feel is in the best interest of your business.

ABN: What is the background of State Farm’s previous efforts on this issue?

Plier: State Farm had a trial program in California and Indiana in 2009, but discontinued the program after Chrysler filed for bankruptcy and GM accepted a government bailout in 2009. The trial was structured differently then as compared to the PartsTrader program now.

About CARE Plier started his business, CARE, in 2010 after leaving State Farm. His goal, focus and efforts with Consumer Auto Repair Excellence, Inc. has been to assist repair facility owners and manager with a better understanding of simple business principles, such as understanding their business operating cost and the importance of quality control programs, and to understand simple things involved in the repair process, that if itemized, they should and could be compensated for by the majority of the insurance companies.

The services provided by CARE also involve assistance to repairers by investigating issues and questions that repairers encounter and providing documentation to back the recommended positions. Plier assists repairers with identifying possible solutions that would be beneficial to the industry and in particular focused on what is appropriate and in the best interest of the consumer.

Steve Plier, President Consumer Auto Repair Excellence Inc. www.consumerautocare.com 205-623-9307

Dykstra Survey Identifies Broad Industry Concerns in 2013: Especially Financing and Suppliers

According to the 2012 Dykema Automotive Institute Survey, which was released on October 17th, automakers will have to contend with limited financial bank lending and raw material costs in the following year.

“Every major company has gone through tremendous upheaval and dealt with changes to every step of its supply chain,” said Aleks Miziolek, director of Dykema’s Automotive Industry Group.

“There are many challenges still on the horizon for automotive executives that may impact the long term success of the industry’s future.”

From the total of 100 auto industry advisers and senior executives that took part in the survey, 40% of them said that raw materials increasing costs is the main concern of the auto industry, while 21% of them said that it is the financial bank lending that will affect the automakers in 2013. Besides these two challenges, the survey also includes labor issues, financially troubled suppliers and even the potential liabilities of self-driving vehicles and other new technologies.

A respectable 43.4% said that they were working on vehicle-to-vehicle See Dykstra Survey, Page 47

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42 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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Insurers Talk MSOs, Consolidation, the Cloud, and Tech Trends A NACE panel of three representatives from top auto insurers discussed industry consolidation, technology and future trends during the Collision Industry Forum insurance panel discussion Oct. 12. Speaking on a panel moderated by Dan Stander of Fix Auto Highlands Ranch in Littleton, CO, the insurers responded to the noticeable consolidation trend affecting both repairers and insurers, specifically the growth of several MSOs such as The Boyd Group, ABRA, CARSTAR, Service King and Caliber Collision—but also that of smaller regional MSOs. “MSOs that can replicate quality procedures are attractive as a group,” George Avery of State Farm said.

“Using a score card to rate MSOs across the board represents an interesting opportunity. But just like independent shops, they must perform to stay on our system.”

Avery said that any MSOs on their DRPs are measured as individual shops and must compete to perform on that basis. He recalled State Farms’s experience with M2, the 27-shop consolidator in California that closed abruptly back in 2005, reinforced his

Insurance Representatives on panel (l to r): Moderator Dan Stander, State Farm’s George Avery, Nationwide’s Rob Knott, and Allstate’s Randy Hansen.

company’s interest in finding top-performing individual shops, whether stand-alone or part of an MSO. “State Farm maintains that whether you are an independent or an MSO, you should be able to compete, and so State Farm evaluates even MSOs as individual repairers,” Avery said. “I’m not discounting [the MSOs’] ability, but I am saying that those with individual repair facilities have skin in the game, and that can have a lot of value on the customer service side, which we’re all after.”

Rob Knott of Nationwide concurred. “We think the mom-and-pops still have a place,” Knott said. “Some of the challenges that the MSOs have is over-saturation in certain marketplaces, so you’re not going to put (all their shops in a market) on (the direct

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repair program). And then there’s the consistency issue, when they expand too fast and aren’t able to maintain the same service levels and quality.”

Randy Hansen of Allstate also said each facility on his company’s DRP, even if part of an MSO, has to stand on its own performance.

But the three acknowledged that MSOs can offer some appealing services such as call centers, extended hours and a single point-of-contact. Hanson said the collision repair industry suffers from a “tremendous amount of inefficiency” that consolidation alone cannot cure. Instead, shops should consider expanding their hours of operation or finding other ways to better utilize their facilities and equipment.

Consolidation in the insurance in-

dustry is likely to continue as companies seek to grow. “The only other way to grow is by taking another company’s customers,” Knott said, and those are costly acquisitions because acquiring a new customer is seven times more costly than retaining their own customer, he said.

Avery added that MSOs present an “interesting platform” in which to experiment with a change on a large but not national scale.

“You hear people talk about how the model is broken,” Avery said.

“There are components [of change] that could be perhaps introduced into an MSO that you couldn’t quite introduce companywide. So I feel compelled to tell you, not to make anyone nervous about MSOs taking over, but I do have to say that is a place where you could possibly go and say, ‘Look, we’d like to try something different.’” Avery suggested later in the discussion that attendees think like a young driver using her mobile device to find out what to do after a minor accident. “What can we do together? Can we work together to offer her a 48-hour repair?” Avery See Insurers Talk MSOs, Page 51

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Social Media for Shops

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

The Original Social Media, and Most Important, is the Phone Call with Ed Attanasio

While thinking through some social media topics recently I realized that the original and still current champion of real social media is the simple phone call.

In the past several years, I’ve called literally hundreds of body shops, vendors and collision-related businesses over the phone to interview them for articles I write for Autobody News. And every time I encounter a strange phone experience when calling a body shop I’m surprised. In any business, the phone is usually the first contact you’re going to be making with the public, and that’s why it’s so important. And in the collision industry it’s even more crucial.

Think about it. Your potential customer gets in an accident. They get three or four names of body shops in their area from their insurer and they start calling them. If they’re left on hold or the person answering the phone is rude or inattentive, many people will simply hang up and call the next shop on their list. So the big question is—do you give good phone or are you currently losing business by falling short in this important area of customer service?

Although e-mail and text messaging have become more popular ways of communication, we still use our telephones almost constantly for both personal and business reasons. It seems that good telephone manners are common sense, but my recent experiences have led me to believe that there are many lessons to be learned by body shops in the arena of telephone etiquette.

The topic of phone protocol and how some body shops don’t seem to value the importance of it became more apparent recently when I was calling a body shop to interview the owner for an upcoming ABN article.

First, the phone rang at least 12 times before someone picked up. Okay, I’m thinking, they’re a busy shop, no problem. It happens.

Then, I heard a voice, but for just a millisecond. “Hold.” It made me feel like I was ordering a pizza for delivery. Without a simple “hello” or “I’m really busy, can I get back to you in just a minute?” I sat on hold for at

least five minutes, and then the call went directly to voicemail (or in this case, I call it “voice jail’) without any explanation. No greeting, just a beep.

So, I hung up and called back so that the painful process could resume all over again. This second time, the woman answering the phone shouted out “Bill’s.” Not “Bill’s Collision,” which is the actual name of the business.

But at least this time around we had a brief conversation. I could hear her chewing gum and her indifference to my inquiry was immediately evident. “Is Bill there?” I asked. “No,” she replied. “Do you know when he’ll be returning?” After a long sigh, she said, “No idea. Do you want his voicemail?” Been there, done that, I thought. “We’re really busy right now,” she added. And without any further warning—boom, I was back on hold.

At that point, I hung up once more and decided to try again later.

But each time I called, I got the same person and each time she seemed even more bored than the time before. I could almost hear her eyes rolling!

The other call I hate is the one where the receptionist grills you and after a series of questions you might be allowed talk to the boss. I can understand, because most body shops receive 10-15 sales calls every day, so screening out the wannabes is crucial and a good phone person is adept at it.

But, when you feel like they’re interrogating you in the process, that’s bad phone protocol. Hey, I’m not trying to reach Obama, it’s a body shop owner—so why are you making me feel like I’m the paparazzi chasing your boss down? It’s all about the way things are said and when a receptionist gets too protective of his/her boss, it’s a real turn-off.

So, how should body shop employees act on the phone? I asked an expert on the subject. Her name is Cynthia Grosso, a business consultant, etiquette coach and author of the owner of the Charleston School of Protocol and Etiquette in Charleston, SC. She gave me a very simple list of do’s and don’ts about phone manners: ● Never call someone “Honey,

44 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sweetie, or darling” on the phone, especially if you don’t know them. It’s too personal and unprofessional. ● Be conscious of the tone of your voice, especially when you answer the phone. (If you’re having a bad day, please keep it to yourself.) ● Be sure to identify yourself immediately when the person you are calling answers. Dead air will kill a call every time. ● If you happen to be screening calls, do it gracefully without acting like a bodyguard and offending the person who is calling. ● Do not eat while talking on the phone. That’s why lunch breaks were invented. ● Always return phone calls. Make a point to find the time. It only takes a few seconds to call someone back or to send an email explaining that you will call them back when you are available. Not returning a phone call is the worst offense and inexcusable.

The rule on returning phone calls is within 24 hours and the standard for emails is 48 hours for a return response.

“Phone communication is all about finding a common language,” Rosso explained. “Everyone wants to feel important, and keeping that in mind is key to any successful phone interaction from a customer perspective. Don’t leave people on hold for more than 30 seconds without checking in. And remember this—the telephone is your front other door and an extremely valuable component of how to run your business.”

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 45

San Diego High School Opens New Tech Training Facility

by Melanie Anderson

Morse High School in San Diego, CA, recently celebrated the opening of its new auto body and engineering facility with a dedication and open house.

The school’s auto body and engineer-

pair and refinishing career pathway within the transportation industry sector, including introduction to auto body, transportation technology, and auto body repair and refinishing.

“My students and I give a special thanks to our ex governor, Arnold

gram Specialist for the College, Career & Technical Education program.

In addition, Quirin said, “The demonstration lab houses the specialty tools and instruction materials.

Across from the demonstration area, there are eight professional repair bays and one paint booth. The booth is state-of-the-art and designed for the environmentally-friendly waterborne paint products. It has a paint mixing room and two Becca gun-

specialty tools. The tool boxes each have foam cutouts for each and every tool for inventory control. On the east end of the shop, there is a Jollift 103t frame rack and laser measuring system, as well as a Hunter DSP 600 alignment instrumentation, road force wheel balancer and tire machine.

“Several bays are equipped with mig-welders and Prospot welding equipment. The list goes on and on.

cleaning machines. The repair bays have stainless steel work benches with ample storage and a computer at each terminal. The computers in each bay have Mitchell estimating software and Indentifix repair information. Each bay is also equipped with a MATCO professional series tool box fully equipped with hundreds of hand tools, and a variety of auto body

The fact is, if you are a high school student enrolled in this program, you will be well- equipped with a plethora of resources and opportunities for a rewarding career in the auto collision industries,” said Quirin.

“Morse High School is the only auto body program in the San Diego Unified School District,” Quirin added. “In all of California, there are only three schools that are NATEFcertified auto collision and repair facilities. Our goal is to be the fourth NATEF training program in the state and to be the first high school in the state.”

The Sept. 27 open house and dedication included a ribbon-cutting ceremony and presentation of colors by Morse High School’s Army Junior Reserve Officers’ Training Corps. Also in attendance were representatives from the following sponsors: I-CAR, FinishMaster, Fix Auto Mission Valley, Kimball Midwest, PPG, Mitchell International, Sherwin Williams, West Coast Auto Wreckers, Fiberglass Evercoat, State Farm, SkillsUSA and the California Autobody Association.

Morse High School auto body instructor Leonardo Zarate with student John Abad

ing program provides students with a professional working environment while still in high school. The new and remodeled College, Career and Technical Education (CCTE) facilities for auto body and engineering were funded by state Prop. 1D and local Prop. S. The new $3.7 million ‘Tiger Paw Auto & Engineering Facility’ now gives Morse High School students the opportunity to work on cars and get hands-on experience. For the past seven years, auto repair instructor Leonardo Zarate has been teaching the automotive repair program in the classroom only.

The four-year project involved partially modernizing a 9,067-squarefoot, one-story, wood-framed building, and constructing a new one-story, concrete masonry building measuring 6,855 square feet. The larger building features an auto disassembly area, instructional classrooms, a computer lab with 34 PC stations, an engineering design room, and tool/special equipment storage. The newer building features a paint booth, clean room, auto alignment and frame bays, student and faculty restrooms, faculty offices, and a mechanical/electrical room. Another enhancement staff and students are excited about: air conditioning. The new facility is the only building on campus that offers air conditioning.

The Morse High School auto body program provides career and technical education in the collision re-

Schwarzenegger, and our present Governor Jerry Brown and to the taxpayers of the State of California,” said Zarate. “We are also grateful to all the collision repair shops in San Diego and to my advisory board who every year kept their doors open for student internships.”

Each student now has access to the Introduction to Collision and Repair online curriculum, as well as an extensive library of I-CAR specialty training modules. “The new facility has everything one could ever imagine. There is a large instructional demonstration lab with two new lifts used for pre-vehicle inspections and estimating. This area is large enough to have an entire class of 32 students work safely,” said Greg Quirin, Pro-

Instructor Leonardo Zarate with students John Abad (l) and Silverio Layna (r)

46 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

career that I want to have until the day I retire, because I know there’s always money to be made in this industry because as long as people buy cars, they are going to break and those people will be coming here to Morse Tiger Paw because we are the future technicians that are going to get the job done right the first time.”

Morse High School is a traditional high school that includes college, career and technical programs such as auto body, engineering and culinary. The delicious gourmet appetizers and desserts at the open house were prepared and provided by the culinary students.

The new auto body program now includes a computer lab and 34 PC stations

“This new auto body program will have full support from these sponsors to assure the proper, up-todate industry standards are being taught to the kids,” said Hilary Castro, manufacturers sales representative with Sherwin-Williams. “This school and the programs it offers to the kids are crucial to educate them not just about collision repair, but to show them their avenues of education in front of their eyes.”

Guest speakers at the event included Morse High School students from the auto body and engineering programs, Principal Harry Shelton,

board member Sheila Jackson, and alumni and city councilman Tony Young.

In his speech, auto body student John Abad said, “Can you just imagine what kind of job offers us students can receive by just learning basic knowledge of automotive repair? Personally, being in the automotive business isn’t just going to be a job for The new $3.7 million ‘Tiger Paw Auto & Engineering Facility’ now me, it’s going to be my gives Morse High School students the opportunity to work on cars

Continued from Page 42

Dykstra Survey

technology, but even more— 55.3%—said that their companies were working on vehicle-to-infrastructure or systems, which would allow cars to “talk” to traffic lights and other elements on the grid.

Over 92% said that they’d seen an increase in demand for their company’s products/services over the past year.

Most, 76.8%, have had to make internal changes to meet that growing demand.

Given that vehicles are becoming increasingly connected to the web, Dykema asked respondents about their biggest concerns on that front. Just over 35% said that they were worried about the distractions that accompany connected cars. However, more than 28% said they had no real concerns.

When asked about investments in technology, 60.5% said that the were developing “sensor-based safety systems that either warn or assist drivers in potential collision situations.”

On the legislative front, the biggest issue of concern was “energy and environmental legislation.” Part of the survey also discussed potential liabilities of self-driving vehicles and other emerging automotive technologies; about 1 in 3 respondents said driver distraction was their chief concern. Approximately 1 in 4 had concerns about data ownership of technologies.

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John Shoemaker Coaches Shops to ‘Negotiate for Success’

by Melanie Anderson

John Shoemaker of Virginia is an Air Force veteran with 23 years service in the automotive field as a technician, trainer and formal instructor, and with several additional years as a collision center director for a major dealership group, overseeing three collision centers in Virginia. Shoemaker is now a consultant with JSE, a company he created to share 35 years’ worth of automotive management experience to assist collision centers in improving operations.

During the 30th anniversary of NACE in New Orleans, LA, Shoemaker presented Negotiating for Success — a Look at the Negotiations Necessary to Keep Your Collision Center on Top. Negotiations, Shoemaker says, not only affect profits, but is important in preparing a contract or business deal. To negotiate successfully, several elements must be in place during the preliminary stage of a business deal. Those elements include establishing a set of core values, being honest and ethical, maintaining a standard that meets industry and customer expectations, delivering as agreed and responding to the customer’s needs. What is non-negotiable is making a profit.

Are you a negotiator? You can be if you are confident, focused, able to stay on track and be unemotional. A successful negotiator will know the objective before he or she begins, be able to define the main issues and can focus on them one at a time. Negotiations will go much smoother if a win-win is determined. Always have supporting documentation as back-up, which can include manufacturers specifications, a complete damage appraisal and structure measurements. The person with the most information usually wins, says Shoemaker.

One of the first steps to take when entering negotiations is identifying the appropriate person with whom to negotiate with. Develop a rapport with that person and determine their focus.

Finding a common ground will help you to capitalize on similarities and keep the conversation from getting confrontational. Verbal tone and body language is important. Keep your emotions in check.

It is important that you establish your repair standards up front. Have a complete damage appraisal prepared

and itemize each repair step required.

Document only the repairs required and isolate prior damage. List customer concerns.

Negotiating with Insurers When dealing with insurers, review the entire appraisal and make a note of the ‘no’s’ but keep moving. Go back to the ‘no’s’ after reviewing the complete appraisal. Negotiate the repair first, then

the labor, but do not negotiate your repair standard. Realize that you will not see eye-to-eye with an insurer. Their job is to negotiate the cost down because they have specific numbers to meet and they are protective of their bonuses.

Negotiating with Insurer DRPs One of the best things you can do when negotiating with a DRP insurer is to develop a friendship and a rapport with the insurance adjuster and get to know the insurer’s agents. You want to create a good reference by ensuring the adjuster’s experience is always good.

Promote your efficiencies and your customer service. But also make sure the adjuster knows what you want on their program. Agents are required to maintain training and this can be an opportunity for your shop to sponsor events. Having a manufacturer certification makes your facility more attractive to an insurer and helps establish credibility. Have space available for them to work. Use existing work to establish opportunity with the insurer.

Look at the number of non-DRP repairs performed for the insurer and provide insurer performance reports for those repairs. This cements your abilities and proves a need.

Negotiating with Vendors When negotiating with vendors, determine a retail rate for services, such as towing, alignments, and glass work.

With parts suppliers, explain your needs and cycle time mandates. Find out what they need to get the correct

48 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

part and incorporate electronic parts ordering. Give vendor complete order information to reduces parts errors.

Negotiate inventory levels by defining guidelines for out-of-stock parts and require them to search other dealers. Establish a process for parts returns and coordinate order cut-off times. Set a different time for each vendor. In addition, define the delivery process and specify that only complete orders are delivered. Identify inspection requirements and negotiate parts price differences. Parts price differences are the #1 cause of supplements, Shoemaker says, while insurance companies strive for zero supplements. Set a reasonable dollar amount for a price matching estimating system and establish guidelines for higher amounts. Set a performance measurement tool in place to manage system reporting; to track parts returns and delivery delays, to identify damaged or wrong parts and the frequency.

Negotiating with Paint Suppliers Explain your needs to the paint supplier. Define the paint level required

and the flexibility you need in your paint line. Understand their distribution capabilities and specify your delivery expectations.

Negotiating with the Vehicle Owner Determine your customer’s need, identify their concerns and communicate to the customer so they know you understand them. Work to resolve the situation, not to sell. Provide a solution, but make sure you understand the complete situation before answering too quickly. Be flexible. Educate the customer on repairs required and write a complete damage appraisal. Is a complete repair needed and will aftermarket parts fit their need? It is easier to remove items than to add items later.

Discuss a specific time for the repair and determine their transportation needs. In regards to payment, who is paying for the repair? Is it being processed through a third party? Is the customer aware of the deductible? Assist with claims processing and remember that vehicle owners don’t deal with this everyday. Help them to understand the process and be their advocate if necessary.

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CAA Ventura Chapter Hosts Jack Molodanof and Micki Hazz, Presents President of Year Award

by Tom Franklin

October 17th, The Valley-Ventura Chapter of the California Autobody Association met at the Hilton Hotel, Woodland Hills, to hear two speakers: Jack Molodanof, lobbyist for the CAA in Sacramento, and Micki Jack Molodanof Hazz, Website and

social media designer for the Valley Motor Center.

CAA Representative Cindy Shillito also presented a CAA President of the Year award to chapter president, Jim Marko, owner of Westlake Auto Collision. Mr. Marko was selected for the award over more than twenty other chapter presidents.

Attorney Jack Molodanof, a son of a shop owner and a long-time advocate for our industry, works closely with the California Department of Insurance to

Jim Marko receiving President of the year award from Cindy Shillito

gain favorable handling of legislation that could affect collision repair shops

in California. He is also on the Bureau of Automotive Repair Advisory Council. At the meeting he discussed several items of great interest to our industry.

When John Garamendi was Insurance Commissioner, SB-1460 was passed requiring insurance companies that required the use of after-market parts to warranty those parts. A recent bill was pushed by the insurance industry to shift that liability onto the shop installing the part. With the help of InsurSee CAA Ventura, Page 54

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www.hendersonchevy.com www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 49

FinishMaster’s Industry Golf Tournament Celebrates 15 Years

by Ed Attanasio

On Sept. 18, 120 golfers representing every aspect of the collision industry hit the links with a passion at Harding Park in San Francisco, an immaculate TPC 18-hole layout that is ranked as the 13th best amongst municipal courses in U.S. The annual Harding

acre course, golfers frightened the local birds, as well as squirrels, gophers and more than just a few course marshals. When “Fore!” doesn’t work, “Duck” is also good, they suggested.

FinishMaster’s Harding Park Tournament is a non-profit event that raises much-needed funds for Young

3M was well-represented, by District Sales manager, Stan Berceau, and Account Manager, Doug Rogers, who was asked by his company to help out with the tournament as opposed to actually playing golf in the event

(From left) Michael Avery, owner of B-Line Body Shop in San Jose, CA, had breakfast at the Cypress Grill before the tournament began, along with Mel Green, Jason Green and Alan Ranieri

Park Tournament was originally hosted by the San Francisco chapter of the California Autobody Association, but when the chapter folded several years ago, FinishMaster took over the sponsorship to continue this premier tournament.

Featuring golfers with varied skills, including those with low handicaps and all the way to a few firsttimers, the tournament started veiled in morning San Francisco fog. Errant golf balls hit by participants missed

Life, an organization that mentors adolescents and helps them to live more productive lives. Tournament secondary sponsors were DuPont, PPG & BASF, Oak Distributors, 3M Company, Norton/Saint Germain, Putnam Buick Pontiac GMC of Burlingame, Fiberglass Evercoat, Air Flow Technologies, Transtar Industries, LKQ, Last Call Marketing and Enterprise Rent-A-Car. Putnam Buick Pontiac GMC of Burlingame once again sponsored a

First place for the tournament went to a foursome consisting of Mike Castro from FinishMaster, Blake Andros, the owner of Blake’s Auto Body, with four locations in the North Bay. The victorious foursome also included two employees from Blake’s Auto Body, General Manager Mark Sebastian and Estimator Easan Geroux.

Blake Andros was pleased about his foursome’s performance, which finished with a score of 54 (18 under), he said. “This is a world-class tournament and one of the reasons we come

out every year. I believe in FinishMaster and the charity, so we donate money and support this event without hesitation. If we can get out there and play golf and give money to a great cause at the same time, it’s a nobrainer. There were a lot of very good golfers out here, but anyone can play and that makes it more fun. We hit some good shots, but we were also lucky. You can be a skilled golfer, but being lucky makes it a lot easier!”

Tournament volunteers included Natasha Theiss of 3M, Doug Rogers of 3M and Jeff Vail of Norton Abra-

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(From left) Regional Sales Vice President for FinishMaster Craig Stevenson; Marty Evens, business development manager for BASF and KC Fedder, an account manager for BASF enjoyed the San Francisco weather and the lovely Harding Park course

greens completely and ricocheted off many of Harding’s statuesque Monterey Cypress trees all day long, while more than a few also splashed into Lake Merced, which acted as huge water hazard for many wannabe golfers. Using every inch of this 125-

hole-in-one, featuring a new vehicle and FinishMaster also sponsored a hole-in-one offering a $10,000 cash prize. Once again, no one came close, so the car and the money are safe for another year and possibly for eternity, based on the quality of golf exhibited.

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sives. Special credit also belongs to Hostess Melissa Perez of FinishMaster, and of course, Regional VicePresident of Sales Mike Sheedy of FinishMaster who was also again the tournament’s director.

we’ve developed over the years in our business and this event only strengthens those relationships. This tournament provides us with an excellent opportunity to spend time together as golfers in a relaxed atmosphere. Man-

(From left) Volunteer Jeff Vail, account manager from Norton Abrasives, and Hostess Melissa Perez, a district sales manager for FinishMaster, ran the Harding Park tournament, which was attended by 120 golfers.

Sheedy was thrilled by the collision industry’s participation in the tournament and everyone was impressed by the condition of the course and the favorable weather, he said.

“Everything came together nicely and it ended up being a beautiful day.

We appreciate the great relationships

ufacturers, vendors, jobbers and collision centers are here to celebrate this amazing industry—one that we’ve invested our lives in. Thanks to everyone who has supported this tournament over the years. It’s a unique tournament and we’re happy to be celebrating its 15th year.”

Continued from Page 43

Insurers Talk MSOs

asked. “You might say, ‘Yeah, if you quit making me take all these pictures and jump through these hoops.’ And I might say, ‘Okay, I’ll stop that.’ So as we look at the future, I’m leaning toward partnering and saying, look, that customer is going to leave us and go somewhere else. She is not going to tolerate inefficiency.”

Cloud Computing and Data Ownership Knott said technology changes so quickly that it’s hard for insurers and repair shops to keep up. “Our customers are pushing insurance companies to evolve with technology and a challenge is how fast can we adopt new technology. But if we don’t change we will be left behind.”

Allstate has consolidated 100 legacy systems into one delivery platform, Hanson said. “It was tremendously complex and we spent hundreds of millions of dollars to implement it.

We recently adopted cloud computing.

It is very flexible and offers more applications and options.”

With cloud computing convenience comes the more complex issue

of data ownership.

“Cloud computing is great because it allows you to access your data anywhere,” Knott said. “However, there is great concern over data ownership and who has access to the data. Hanson said the issue of data ownership is clear to Allstate. “We view it as the customer’s data, not the shop’s or the insurance company’s. It is our obligation to keep it secure and protect it. “State Farm is developing its own cloud and securing the data is one of the most important initiatives,” according to Avery.

Advancing OEM technology is a trend that concerns repairers and insurers. Stander asked: “If cars won’t be crashing into each other due to accident avoidance technology, what does that mean for repairers and insurers?”

Avery said that accident avoidance technology won’t be fully implemented for 15 to 20 years. “With or without that technology, we need to figure out a way to help our customers in the future. Customers will not tolerate inefficiency. They will find what they want with or without us.”

Hanson said the new OEM technology has the potential to change the way insurers do business, but it’s not clear what those changes will be.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 51

15 Years of Successful Toying—But Will it Keep on Truckin’?

by Ed Attanasio

The California Autobody Association East Bay Chapter (CAA-EBC) once again will be hosting its annual Toys for Tots Model Truck Customizing Competition to be held Nov. 20 at the prestigious Blackhawk Auto Museum in Danville, CA. It’s the event’s 15th anniversary, but some are concerned that this could be its last year.

“Yellow Racer” made by Mike’s Auto Body in Concord, CA got some great reviews at the Toys for Tots Model Truck Customizing Competition in 2002

The highly-regarded event is attended by 300-400 people every year and is the CAA-EBC’s signature occasion to raise toys for Toys for Tots and money for local automotive trade schools and area charitable organizations. So, why is its continued success possibly in jeopardy? Mike Govette, a branch store manager for FinishMaster in Concord, CA, is the founder of the event, as well as a former president and board member of the CAA-EBC, and has been running the competition since its inception in 1998.

“We can’t get any more model trucks,” Govette explained. “A company named Nylint stop making them a few years ago and we were getting them imported from a Korean company until just recently. I’ve learned that they’re all gone and no more are going to be made. If anyone out there has a connection for getting blank (white) metal model trucks or can suggest a viable alternative, we’d be very appreciative.”

Until then, this year’s competition will prove to be spirited once again, as many of the area’s top body shops tap into all their skills to convert these plain model trucks into pieces of art, Govette said.

“These trucks represent the work of many of our most talented collision repair technicians and it can get very competitive amongst rival shops. All of the trucks entered are up for the first place perpetual trophy, which is

held by the winner for a full year.

Their shop’s name is added to the trophy, which lists all of the first place winners since the contest began 15 years ago.”

After the contest, all of the model trucks are then auctioned off in a silent auction. The funds that are raised usually go to a local charity chosen by the board of directors, Govette said.

“But, this year the money will go directly to local colleges and regional occupational programs—schools that teach our next generation of auto body repair technicians as they enter this trade that we are so proud of. These schools have done some tremendous good for our industry and they design great trucks every year.”

The truck competition has changed and evolved over the years, Govette said. “The contest originally was to benefit Toys for Tots alone.

The dinner meeting, traditionally held on the third Tuesday of November, included a toy drive and the trucks were to be donated as well. It turned out that many of the trucks were incredible works of art representing hours of work and amazing talent and creativity. So, the members wanted to buy the toys back. The marines agreed, and the money went to Toys for Tots that first year in 1998. Thereafter, the trucks were auctioned off in a silent auction and the proceeds donated to local charities as well as Toys for Tots.”

cluding STAND! Against Domestic Violence, Bridges Intervention Services, Bay Area Crisis Nursery, Through The Looking Glass and the Contra Costa Food Banks, to name just a few.

When the San Francisco Giants won the World Series in 2010, Crockett Auto Body created this winning model truck, complete with a mini barbecue and grilled baseballs

Celebrity judges pick the winners every year, which adds a whole level of legitimacy to the model truck competition. “Each year we bring in wellknown customizers to judge our contest,” said Govette. “From local legends such as Art Himsl, Leonard Lopez, Kirk Kapfenstein, Darryl Hollenbeck, Steve Martinez, and

Marcos Garcia to renowned customizer Rich Evans, of Huntington Beach Bodyworks, who has appeared on Car Warriors and Pimp My Ride.

These talented technicians are best equipped to judge our trucks, which never cease to amaze me.”

The auction nets a considerable sum every year as well, and as a result many of the top model trucks currently sit in peoples’ homes and in body shops all over the state. “Proceeds from our auction each year will bring in somewhere between $2,500 and $7,000,” Govette explained. “In the past 14 years, we have raised over $60,000 for local charities, as well as

Although this did not win in 2011, a Space Shuttle created by Accurate Auto Body was a crowd delight. It’s amazing to think this was originally a model truck

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over 2,000 toys for the Marines’ Toys for Tots programs. I am most proud of what our members have done for our industry. We have had some great competitions, customized close to 200 trucks, and have helped further the image of the automotive repair industry as a benevolent and philanthropic group. I am honored to be associated with this contest and the people who participate in it. The East Bay Chapter should be proud as well.”

“It’s great when organizations like CAA raise funds for us for muchneeded scholarships and supplies,” Peter Lock, department chair of the auto technician program at Contra Costa College, said. “The CAA East Bay chapter has always been an outstanding supporter of our program, and we greatly appreciate it. The students always get into designing and building these model trucks, an every year we see more and more top entries from the schools involved.”

If you want to attend the event or for more information about customizing a truck, call Mike Govette at (925) 685-6500.

Greg Coccaro Wins Significant Appeal from Progressive Insurance, Changes NY Case Law to Allow Claims for Deceptive Acts, Practices

sales. We conclude that it does.”

Progressive in the legal system.”

North State Autobahn Inc., a Westchester-NY-based body shop owned by North State sued Progressive Along with Artese, North State Greg Coccaro, has won an important under New York’s deceptive acts and was represented by Finley Harckham victory in the New York Supreme Court practices statute, General Business Law of Anderson, Kill & Olick and solo Appellate Division against Progressive section 349, for misleading consumers practitioners Anthony J. Mamo, Jr. Northeast Insurance Company, Prointo taking their damaged vehicles and Richard P. Stone. gressive Casualty Insurance Company, away from North State to competing The Progressive Group was repreProgressive Direct Insurance Company, body shops within Progressive’s “netsented by Nelson Levine de Luca & Progressive Specialty Insurance Comwork.” North State’s suit alleges that Horst, LLC, New York, N.Y. (Michael pany, and Nicholas Stanton. The result the insurance company coaxed cusR. Nelson, Kymberly Kochis, and likely creates a case law basis for detomers away by maligning the shop’s Francis X. Nolan IV of counsel). ceptive acts and practices claims work and pricing. against auto insurance companies that In North State Autobahn v. ProBackground divert policyholders away from repair gressive Insurance, the Second DepartIn 2007, North State Autobahn, Inc. shops outside their DRP networks. ment’s ruling, denying Progressive’s commenced this action against the ProIn a fifteen page decision, the court motion for summary judgment and algressive defendants and a number of went into great lengths explaining the lowing North State’s suit to go forward, Progressive employees, including the history of “Business Law Section 349, confirmed a business’ standing to redefendant Nicholas Stanton. Asserted Deceptive Business Practices” and the cover for direct harm caused to it by anin the complaint, was that the Progresintent of it, writing: “This case presents other business’ deceptive acts and sive defendants had violated General us with the question of whether a busipractices—even if that business is a Business Law §349. Specifically, the ness entity [North State] has stated a competitor. complaint alleged that the Progressive valid cause of action for violation of Justice Robert Miller, writing for a defendants deceived claimants who General Business Law §349(h) where unanimous panel, held that North State’s sought to have their vehicles repaired at it alleges that another business entity allegations concerning Progressive’s acts the plaintiffs’ and other repair shops Give us your opinion on matters affecting the [Progressive] deceived and misled depriving consumers of industry. their choice of that did Want not participate in their DRP by to Contribute to th prospective customers, causing it to body shop satisfied the statute’s requiremaking misrepresentations as to [Cocsustain direct economic loss in the form ment that the deceptive acts at issue have caro’s shop’s] workmanship, price, www.autobodynews.com of more than $5 million in lost business an impact on consumers at large. The timeliness of service, and character. publisher@autobodynews.com publisher@autob CHECK IT OUT! court further held that the law does not North State also alleged that the Prorequire that North State identify specific gressive defendants issued damage reconsumers who were harmed. pair appraisals well below fair-market CERTIFIED AUTO PARTS The court also rejected Progresvalue at about one-half the estimate of Promote your business w sive’s argument that North State’s inthe plaintiffs’ estimate, and that the ProOEM QUALITY CAPA CERTIFIED an exclusive article to featu jury was merely derivative of that of the gressive defendants represented MECHANICAL PARTS AUTO BODY PARTS your products servic injured consumers, finding that North claimants that the plaintiffs wouldor make To advertise To advertise The source for timely State adequately alleged direct harm the only partial payments for repairs which call Advertising Sales at: call Joe Momber at: information that every instant customers were misled into tak- would necessarily require claimants 800-699-8251 800-699-8251 ing their vehicles to a network shop, rewho had their vehicles repaired by the body shop needs! gardless of whethere-mail: such customers plaintiffs or other independent shops to e-mail: CALL: Joe Momber for det advertising@autobodynews.com jmomber@autobodynews.com suffered pecuniary injury. incur out-of-pocket expenses.

CALL 800-699-8251 ultimately The fact that North State was a business The plaintiffs further alleged that www.autobodynews.com www.autobodynews.com 800-699-8251 Start Your FREE competitor and not the consumer in the the Progressive defendants engaged in Mail Subscription. transaction was held to be irrelevant for such deceptive practices in order to mispurposes of standing under the statute, lead customers of the plaintiffs and under which punitive damages and atother independent shops to believe that torneys’ fees are recoverable. they must have their vehicles repaired at See the NEW Register Your Email for Our “This is a significant decision that repair shops that were members of the enables businesses to pursue ‘deceptive DRP. The Progressive defendants al- F acts and practices’ claims in businesslegedly failed to inform these claimants www.autobodynews.com at www.autobodynews.com to-business disputes—even between that the repair shops that participated in competitors—that have an impact on the DRP used inferior aftermarket parts, consumers at large,” said Dennis or were not registered or qualified to SACRAMENTO BAY AREA MONTEREY Artese, a shareholder at Anderson Kill work on specific vehicle models. As a PENNINSULA & Olick who represented North State. result of the Progressive defendants’ ac916-381-5712 408-293-6122 “That’s critically important because it tions, the plaintiffs alleged that they sus650-610-8852 831-783-1220 SINCE 1988 allows well-funded businesses to police tained direct economic loss in the form 510-380-8718 LToEadvertise VA N deceptive practices where the state atof more than $5 million in lost business GROUP, INC. torney general does not, and where insales, and that the public at large suscall Sean Hartman at: dividual consumers cannot, because tained other damages.

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 53

George Avery Spoke on PartsTrader to GCIA Sept. 20: Parts Margins “Not Guaranteed to Remain” As Are The Georgia Collision Industry Association met on Sept. 20 and hosted guest speaker George Avery, State Farm’s claims consultant. Avery gave information about the PartsTrader parts procurement pilot program to a crowd of approximately 130, some of whom had traveled to the meeting from Birmingham, AL, one of the test markets.

“Mr. Avery gave an overview of the PartsTrader program and why they started the pilot program,” said GCIA Executive Director Howard Batchelor. “He said that they spend roughly $3 billion a year on parts and needed a way to control the cost. The meeting was mainly subdued until the Q&A session at the end. Many of the attendees wanted to know how this benefits the shops. There [was concern about] additional administrative duties for both the suppliers and the shops.”

Avery also talked about some of the enhancements State Farm has created since the pilot began. “The estimating systems have created an interface that will update the prices on the estimate. They have also cut the time to respond from two hours down to 30 minutes.

Several shops from Alabama also attended and said that PartsTrader needed to work out some of the bugs before they implement the program in other areas. Some of the attendees also mentioned they are willing to try the program but asked ‘If this program does not work for me, am I able to quit using it?’ and George replied that ‘This is a business decision that each shop should review and evaluate on its own merits,’” Batchelor reported.

Steve Plier, President of Consumer Auto Repair Excellence, Inc. (CARE), a consulting company based in Birmingham, AL, was also in attendance taking notes. (See interview with Plier this issue.) CARE is a company focused on the auto repair industry with its primary focus assisting repair facilities with basic fundamentals and basic business principals that are often overlooked resulting in diminished compensation and profits for the repair facility.

Plier said the first number listed in Continued from Page 49

CAA Ventura

ance Commissioner Dave Jones and legislators Jack was able to reach, the

Avery’s PowerPoint presentation was “$3 billion” which Avery stated was the amount State Farm ‘gives’ to the repair industry for parts in a year. Later, during the Q&A, a member of the audience spoke up and said he took offense to Avery’s statement of “giving” as the $3 billion actually refers to the amount of parts purchased, not given.

Avery’s slide presentation indicated that State Farm holds 41 million automobile policies and the insurer handles an average of 32,000 claims each day. State Farm had 20,000 Service First repairers at the peak of the old

to assist the industry (use of PartsTrader and a parts locating/procurement program) by reducing totals because of parts competitiveness reducing repair cost. He says this would be an assistance to all (the consumer, the OE manufacturer, the insurance company, and the repair facilities),” reported Plier.

During his presentation, Avery stated only suppliers nominated by Select Service repairers are and will be on the PartsTrader list. Avery also said that PartsTrader is continuing to make improvements in the electronic process and two of the test market areas now are

Service First program compared with approximately 10,300 Select Service providers in the Select Service program today.

Avery noted that 63% of all claims are handled through Select Service, with the lowest percentage of 17% of claims being handled through Select Service in Long Island, NY. “Mr. Avery spoke of meeting with different large providers discussing where the majority of delays occurred and noted the response centered on parts delays and that by assisting the industry and improving cycle time to reduce the time of repairs by one day would reduce State Farm’s rental expense by $43 million for each day of cycle time reduced,” Plier reported.

State Farm originally piloted a parts procurement program back in 2008/2009 but it was discontinued when Chrysler filed for bankruptcy and GM accepted government bailout funds.

However, during that pilot they discovered by their numbers a parts return percentage between 14–17%, and based on this fact, the decision was made to search for additional options after shutting down the pilot. Shortly after the program was discontinued, State Farm filed a request for proposal and PartsTrader was selected from this process.

“Per Mr. Avery, State Farm wants

operating on a 30-minute bid window.

Avery also noted that the number of repairers in the Chicago metro area, the fifth and final test market who are expected to test the PartsTrader program in December, will outnumber the total number of repairers currently on the pilot in the other four test markets combined.

Plier reported that during the Q&A, the first question asked came from a frustrated individual about a slide from Avery’s presentation showing a PartsTrader screen shot that indicated parts, days of delivery and the shop cost, but not the price that would be listed on the estimate. After several other attempts by members of the audience to get clear answers on list price, “Mr. Avery eventually admitted that the shops’ margins were not guaranteed to remain what they currently are,” Plier reported.

Another sticking point in the meeting centered around whether or not repairers in test markets were giving positive feedback.

“Mr. Avery stated State Farm had received positive feedback from the evaluation from the four current test areas, but he gave no specific examples of positives,” Plier said. The evaluations indicated there must be a better training process and that is being ad-

“Mr. Avery eventually admitted that shops’ margins were ‘not guaranteed’ to remain what they currently are”

bill was killed, saving shops from significant potential liability.

Several states now tax services and a study was begun to consider taxing services in California. This would force shops and other businesses to be re-

54 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

sponsible for withholding a percentage of payments to independent contractors, a costly administrative nightmare. Fortunately the study was vetoed.

Perhaps the hottest item was a bill to require insurance companies to

dressed by PartsTrader. “Mr. Avery noted State Farm and PartsTrader are hand-in-hand in this process and PartsTrader must prove and provide a value to the industry.”

As Avery was saying the evaluations had returned positive information, Dave McBroom, director of the Florida Automotive Collision Association, spoke up to disagree. [Editor’s Note: Dave McBroom, passed away on Oct. 11. Read his obituary on page 10.]

“Mr. McBroom told the participants he had flown in from Tuscon that afternoon so he could be a part of the meeting. Mr. McBroom noted to the group he had been in Tuscon for a week and had spent time in repair facilities on the program and had completed the steps to sending out the bids, and then went to the parts suppliers to see how the program worked on both sides,” Plier said.

“Mr. McBroom then began naming different repairers and suppliers who had removed themselves from the PartsTrader program. At this point, Mr. Avery spoke up and stated he did not feel this was fair. The audience became vocal enough that Mr. Avery allowed Mr. McBroom to continue for a few additional statements.”

In general, members of the audience felt that much of the information provided by Avery was very much the same information that has been published since the pilot program was started, and that the only new information he provided was related to why State Farm was attempting another parts procurement program.

“At no time did or could Mr. Avery provide how this program would benefit a repairer and/or a supplier,” Plier said. He also reported that several of the audience questions were repetitive in nature because Avery avoided giving specific answers. The meeting ended late at 9:45 p.m. Before closing, Batchelor invited shop owners from Alabama to return for another meeting later this year to allow GCIA members to hear their side of the story now that they had heard from State Farm.

Special thanks from Autobody News to Steve Plier for providing notes on the meeting.

pay for a replacement part if a part prescribed turned out to not be of “like kind and quality” from an OEM part.

The insurance industry has vowed to fight this one all the way to the Supreme Court if necessary. Jack also

discussed other hot items like the steering issue and consumer’s right to choose and the liability for counterfeit airbags issue, where he has helped push to get favorable treatment for our industry.

Recent CAA meetings hosted the Labor Enforcement Task Force that has promised more sting traps and violation citations. Jerry Brown’s new appointees have promised “aggressive enforcement.” Jack works with the B.A.R., Cal/OSHA and other agencies to try to help point enforcement activ-

ities toward the real wrong-doers rather than attacking reputable shops for minor issues. Jack says CAA members with concerns can always contact him and he will be glad to assist with any problems they might have. He added that it’s in a shop’s best interest to stay in touch with local legislators, Council members and officials to personally make the industry’s concerns known and appreciated.

It would also be of great value to attend Legislative Day to help make concerns understood.

Micki Hazz, Website and social media designer for the Valley Motor Center (VMC), spoke next. She provided detailed insight into how a website could be integrated with Yelp, Facebook, Youtube, and Twitter to provide a total, interactive Micki Hazz experience for collision repair customers and prospects.

She emphasized “relationship market-

ing” where people can share photos, videos, opinions and referrals. A show of hands revealed that most shop owners and managers present did have a website but rarely updated them and made little if any use of these other social media tools.

Micki showed a video that explained that 95% of young people get their news, product information and peer recommendations on-line. The next generation of drivers will rarely, if ever, look at See CAA Ventura, Page 62

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www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 55

How to be a ‘Courageous Leader’ Presented at NACE

by Melanie Anderson

Two strong women presented “Courageous Leadership” at NACE in New Orleans on Oct. 12. Sponsored by WIN, Women’s Industry Network, Denise Caspersen, ASA Collision Division Manager, and Melissa Miller, CARSTAR Sr. Operational Manager, talked with a group of women about what it takes to be brave in the workplace and in their lives.

Having courage is not the same as being fearless. Courage is the ability to do the right thing, despite feelings of fear or discomfort when facing situations of pain, risk, opportunity, uncertainty, hardship or intimidation.

Caspersen and Miller described three different types of courage and discussed the impact fear has on personal and organizational performance, and how by tapping into your own ‘courage history’ you can use your past to strengthen your future.

“We’re not all born with courage, but we’re born with the capacity to be courageous,” Caspersen said.

However, acting with courage is often avoided because of fear, because

Esurance recognizes Three CARSTAR shops with awards

Esurance recently honored three CARSTAR facilities with Auto Body Repair Expert of the Year awards during CARSTAR’s annual conference in San Antonio. CARSTAR said Esurance presents the CARSTAR Auto Body Repair Expert of the Year award to the top performing stores in three U.S. regions. The award is based on several key performance indicators, such as estimate cycle time, compliance with Esurance’s direct repair program, re-inspection variance, I-CAR Gold status and customer service. The award was created to recognize the top shops and technicians in the industry for customer service excellence and continuation of technological education, CARSTAR said. The award-winning facilities include the following: ● Ace Sullins CARSTAR in Miramar, FL, owned by Kyle Wharff. ● Hunter’s CARSTAR in Norwood, PA, owned by Gary Hunter. ● Jungerman CARSTAR in St. Peters, MO, owned by Kerry and Bobbie Woodson.

“I congratulate them for earning the titles, and I thank Esurance for its continued campaign to educate technicians in this industry,” said David Byers, CEO of CARSTAR.

it’s easier, people are afraid of embarrassing themselves or they don’t want a confrontation. But the benefits could result in growth, better communication, advancement, innovation and happier employees.

The cost of fear is high. According to Human Resource Executive Magazine (2008), a third of U.S. employees waste at least 20 hours of work time each month complaining about their bosses. Stress-related illnesses account for 1/3 of worker absenteeism, and 37% of American workers report being bullied on the job. Fearful workers are twice as likely to be depressed and 33% are more likely to report exhaustion and sleep disorders.

Ways that employees display fear in the workplace could include hostility, hiding mistakes, being distracted, and playing it safe versus taking a creative approach.

Ways to combat fear include looking for ways to build your confidence, not obsessing about things that frighten you, gathering facts, seeking mentoring and developing new skills.

“If we can address fear, little by

Martin Senour Kicks Off 4Q Training Program

The Martin Senour Company kicked off its fourth quarter training session in October, offering courses to collision center professionals on technical skills, estimating solutions, new technologies, and updated application techniques required for collision center profitability. The Fall 2012 course lineup, which is held at various Martin Senour training locations nationwide, includes an emphasis on sustainable operations from both a business and technical standpoint.

“We seek to help collision repair owners, managers and technicians better practice profitable and more productive thinking and hands-on doing,” says Jeff Green, Martin Senour Director of Sales. “We also have seen significant interest for classes regarding waterborne technologies, application certification, and lean practices, so we’ve provided additional courses specific to those practices.” Martin Senour professionals will be providing instruction on a number of class topics including its VORTEX® waterborne, Tec/Base® and Pro//Base™ refinish systems, painter certification, and color adjustment and blending. Visit martinsenour-autopaint.com or call 1800-526-6704 for schedule.

56 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

little, every day, it becomes a habit,” said Caspersen.

Caspersen and Miller asked the group of women what they thought courage was and the answers were varied: willing to take a risk, standing up for yourself, standing up for your beliefs, finishing what you started, not giving up, speaking your truth, and being true to yourself.

Caspersen pointed out that we often make mistakes to learn by.

Something her parents told her still rings loud today: “You always have a choice, but you have to live with the outcome.”

When considering taking a risk, consider these factors: passion, purpose, principle, prerogative, and profit. These are the right reasons to take a risk. Can you suffer through the anguishing moments that accompany ‘right risks’ while caring intensely?

Can you harness that passion and stay focused and headed in the right direction? Do you have the right set of values? Do you have the power to choose? And, profit, is only to be considered lastly.

Three different types of courage

were described as: ‘try,’ ‘trust’ and ‘tell.’ Those who ‘try’ step up and make the first attempts to take action.

Those who ‘trust’ follow the lead of others and let go of control. Those who ‘tell’ are those who speak out, assert one’s voice, and tell the truth. And there are always risks. Your actions may harm others. Other people’s actions may harm you. Or, you could be cast out of the group for truth telling.

“The ‘tell’ type of courage can be the most difficult as you may say things the other person doesn’t want to hear,” said Miller. “There is always a difference between being respectful and being offensive. Always make it about the process, not the person.”

Caspersen and Miller also described two leadership styles. The first is called ‘spillers’ — those who rely on fear as a motivator, are negative during times of challenge, or who discourage others who try to grow.

The other leadership style is ‘fillers’ — those who build other people’s confidence, provide support during challenges, and encourage others to grow.

Which kind of leader are you?

DEG & the Keys to Successful Estimating Presented in New Orleans Collision damage experts Larry Montanez and Arthur Harris presented “The Keys to Successful Estimating!” during NACE in New Orleans, LA, on Oct. 12.

The focus of their presentation centered on DEG, Database Enhancement Gateway, a free service funded by the Society of Collision Repair Specialists, the Automotive Service Association and the Alliance of Automotive Service Providers. The DEG is an advocate for accurate collision data and acts as a gobetween for shops and information providers—CCC, Mitchell and Audatex.

The DEG was developed to improve the quality and accuracy of collision repair estimates by those who use collision repair estimating databases to provide feedback to information providers.

“The DEG was created because there was a disconnect with information providers and DEG was created to bridge that gap,” said Harris,

DEG Administrator.

The DEG public database has been around for five years, said Harris, who has been with the company for

Larry Montanez (l) and Arthur Harris (r) talked about the DEG at NACE on Oct. 12

two years. He describes his job as “facilitating the gap between information providers and the estimate user.”

Collision repairers and insurers may submit questions and inquiries or

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ask for assistance with a particular problem and DEG will work with the information provider to reach a resolution. Often, this can result in changes to the database or P-Pages. Shops are also encouraged to submit pictures or short videos with technicians performing a task in regards to a question or problem that arises, said Montanez, a collision damage analyst with P&L Consultants.

To submit an inquiry, log on to www.degweb.org and fill out an online worksheet.

“The DEG is free and people should send in their inquiries. It helps everyone get questions answered,” said Montanez.

The DEG database is a valuable tool for the collision repair industry as it provides valuable feedback on missing, unclear or potentially inaccurate data within the estimate systems, Harris said. He adds that the DEG provides timely responses on both the status on

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an inquiry and the response from the information provider in question. Users can also read all other inquiries made by other repairers and see how the issue was resolved.

Through feedback by repairers, the DEG can help fix footnotes, inaccurate labor times, missing parts, incorrect part numbers, and substrate identification.

In addition, Harris advised those in attendance at the NACE presentation not to print out the P-Pages, or estimating guides as he called them, because they could be outdated. Montanez says he downloads the P-Pages once a month to replace the older version from the previous month.

“The P-Pages aren’t guides. The estimates aren’t suggested. It is the manual,” said Montanez. “The P-Pages are not open to interpretation.”

For more information on the DEG, go to www.degweb.org.

body shops the ability to measure themselves against industry standards by tracking their costs, sales, and performance. Used as a sales marketing tool, the Business Analyzer Tool breaks down the numbers of a shop’s costs, sales and profit based on several key indicators, such as paint and material costs, said Vitor Margaro-

nis, Marketing Director of BASF Coatings Solutions.

“We use the tool to help customers grow their businesses in the areas of improvement they want to focus on,” said Margaronis. “From a business standpoint, we go above and beyond a paint company. It’s not just about paint. It's about profits, growth, cost control, and overall better management of their business.”

The Business Analyzer Tool is available as a mobile app.

According to BASF, VisionPLUS Online allows collision repair centers to track, analyze and improve their business in real time so repair facilities can discover and act on improvement immediately, without having to wait for the usual end-of-month reports.

BASF produces coatings for the automotive, commercial fleet and collision repair markets.

Some of the refinish solutions from BASF are Limco, R-M and Glasurit paint products. The offering is supported by advanced color information systems, technical training programs and business management seminars.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 57

NABC Gifts 6 Vehicles to Needy New Orleans Families at NACE

by Melanie Anderson

The National Auto Body Council gifted six vehicles to needy families through its Recycled Rides program at NACE on Oct. 11.

Four local shops in the New Orleans area donated their time to refurbish the vehicles: • Car Craft Collision Centers (2 cars) • Champ’s Collision Centers (2 cars) • Collision Xperts • Fradella’s Collision Center Seven years ago, in the wake of Hurricane Katrina, these shops received assistance from NABC with basic necessities, such as household goods, clothing and technician tools.

Now, these shops paid it forward to others in need.

Recycled Rides is a national initiative through which National Auto Body Council members refurbish donated vehicles and gift them to families in need. In addition to body shops donating their labor, insurers, paint suppliers, parts vendors and rental car companies contribute as well.

At the NACE event, five insurance companies donated vehicles for refurbishing: Allstate, Esurance, GEICO, Progressive and State Farm.

Enterprise Rent-A-Car donated a vehicle as well.

The Maltese family received a Ford Escape refurbished by Car Craft Collision Center and donated by Enterprise.

The Jiles family lost their vehicles in Hurricane Isaac and received a Honda CRV, refurbished by Champ’s Collision Center and donated by GEICO. The Easley family received a Dodge pickup truck, refurbished by Collision Xperts and donated by Progressive.

Brenda Kenna was overjoyed to receive a Toyota Camry that was refurbished by Car Craft Collision Center and donated by Esurance.

Carolyn Gagliano, a retired teacher, is thankful for her new Chevrolet Impala refurbished by Fradella’s Collision Center and donated by State Farm.

David Marlowe is retired and has major health issues. He will benefit from the Ford Explorer that was refurbished by Champ’s Collision Center and donated by Allstate.

“This car is giving me my life back,” said Marlowe. “You lose your

last vestige of independence when you lose your transportation.”

For Calvin Schenck, owner of Car Craft Collision Centers, participating in the Recycled Rides Program means paying it forward.

tires on this vehicle and an alignment, as well as completing an oil change and a complete analysis of the proper function of the vehicle and servicing the A/C system,” said Schenck.

Brenda Kenna received a 2007 Camry at NACE, thanks to the NABC Recycled Rides program and the collision centers, insurers and other businesses that donated their time, labor, services and products

“This journey started seven years ago as a result of the largest national disaster that the United States had ever experienced. That disaster was named Hurricane Katrina,” Schenck said.

“No one could have expected the amount of physical, financial and emotional damage that one event could cause. Thousands of people were left jobless, homeless and directionless. We were part of that group.

“As we struggled to get our lives and businesses back together, we were contacted by people in our industry, who told us that they were ready to roll up their sleeves and help, and that they did. We were given hope that there were people out there who cared.

Help arrived in the form of tool replacements and emotional support,” Schenck said.

“Before we knew it, we were beginning to heal. Had it not been for the help of these people, we don’t know if we could have made it. Because of this, we have decided to pay it forward. The cars given away are part of a project that has required us to complete all necessary repairs to these vehicles, some of which we have equipped with new tires and paint jobs. We would also like to thank Mike n’ Jerry’s Paint and Supply, Lamarque Ford and Gulf States Glass for the supplies they donated.”

Car Craft Collision Centers donated body and paint work to a 2007 Toyota Camry. “We put four new

58 NOVEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Champ’s Collision Centers, owned

by Tim and Danny Kingston, worked on two cars, a 2002 Ford Explorer and a 2004 Honda CRV. The cars were donated by Allstate and GEICO.

“Both cars have under 100,000 miles and should provide safe and reliable transportation for years,” said Tim Kingston. “Champ’s is proud to have had the opportunity to contribute to such a great cause benefitting our community.”

Fradella’s Collision Centers refurbished a 2007 Impala donated by State Farm. According to Fradella’s Vice President Al Waller, the shop repaired small dents and scratches, replaced the front bearing, brought its maintenance up to date and detailed the vehicle inside and out.

“The goal is to help people help themselves,” said Chuck Sulkala, the executive director of the NABC. “And all of the industry segments commit to playing a part in seeing that happens.

Most that participate find it a lifechanging experience.”

The Recycled Rides program was born in 2007. Since then, 150 cars are given away every year throughout the country, said Liz Stein, VP of Industry Relations, Assured Performance Network and VP of NABC. “Imagine the impact this would be in your community if more people did this.”

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Cypress College Receives $50,000 in Makeover Tools, Equipment

by Melanie Anderson

The Collision Repair Education Foundation hosted an Open House Sept. 25 at Cypress Community College in Cypress, CA to present new equipment and tools to its collision repair instructor and students - the first recipients of the $50,000 California Matching Makeover Grant.

Audatex, a Solera company, offered the $25,000 matching grant to provide one California school’s collision program with an Ultimate Collision Education Makeover through the education foundation. The initial $25,000 came from Audatex, with an additional $25,000 in contributions matched by other industry companies.

Solera’s matching funds come from a $100,000 donation from Solera and CEO Tony Aquila, the largest cash donation ever received by the not-for-

Industry supporters of the California Matching Makeover grant program for Cypress College that fulfilled the second $25,000 of the grant include 1-800-Radiator and A/C; ALLDATA; Assured Performance Network; Chilton Auto Body; Collision Services; Crockett’s Premier Autobody; FIX Auto, Hobart, Matco Tools and Oakland Autobody.

“Through all of the companies’ participation we were able to fulfill the school’s $50,000 wish list and this event is meant to showcase what the school received with their support and who the donors are that made it happen,” said Brandon Eckenrode, Associate Director of Development with the education foundation. “This event, along with our other makeover open houses, take place months after the announcement due the fact that it takes that long to coordinate all of the items

on their own cars or start a second caneeded to by the collision program.

Dan Snook, head of the collision reer. Many of the students get jobs in repair department at Cypress College, the industry before they receive their two-year associates degree, although is credited with bringing in the $50,000 makeover grant to his school where Snook pushes his students to finish their degrees.

150 students are enrolled in the colliBill Noxon, 56, is retired from the sion repair program. The department includes seven instructors and classes grocery warehouse business after 26 years. He is in his third semester in the in automotive detailing, collision repair, paint and refinishing, structural repair and estimating. Cypress College is the only NATEF (National Automotive Technician Education Foundation) accredited school in Southern California.

An instructor at the college since 1999, Snook himself graduated from the program in 1986.

As a student, he said, the instructors gave him the opportunity to make a good liv- The collision repair program at Cypress College received $50,000 worth of tools, equipment and laptop computers ing doing something he enjoyed. And now that he’s an in- collision repair program at Cypress structor he enjoys seeing the growth College. “I’ve liked cars all my life. It in his students and watching them started out as a hobby,” he said. “At excel. While a majority of his students first I enrolled in just the collision reare in their mid 20s, some are older pair, then I added paint and refinishadults who want to learn how to work ing, then added auto detailing.” He

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Cypress College instructor Dan Snook (holding award) with (l to r) Cypress Mayor Doug Bailey, college president Dr. Bob Simpson and Education Foundation executive director Clark Plucinski

profit education foundation that assists secondary and post-secondary collision programs through industry support. The Solera grant was made available exclusively to California secondary or post-secondary schools.

Cypress College, the first school to receive this exclusive Californiaonly award, was announced the winner during the 2011 SEMA show.

With the $50,000 makeover grant, Cypress College received its wish list of needed tools, equipment and supplies.

At the open house event, the education foundation presented Cypress College with $50,000 worth of equipment and products, including a velocity frame measuring system, desktop and laptop computers, hand tools, windshield repair system, polishers, detail equipment, tool trays and stands to hold fenders or doors and epoxy floors.

being ordered and at the school for them to showcase it during the event.

Plus with the school closed during the summer, we had to wait until they were back in session.”

The goal of the Ultimate Collision Education Makeover grant is to honor a school that has been doing an outstanding job in educating students in collision repair, but needs some financial assistance to improve their program’s teaching materials and equipment. With strained school budgets, the education foundation and industry supporters have the opportunity to bridge the program’s financial gap and to make a difference in the lives of the students studying collision repair. As part of the Makeover grant application, schools provide an itemized wish list which can include any tools, supplies, and equipment that are

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ment. The $50,000 makeover grant and other donations from the industry totally transforms his student shop.

“Everything we do is made possible by the industry partners who donate, provide and supply everything that we have,” said Snook. “On our $6,000 budget, I couldn’t do anything more than a hobby shop with minimum tools, equipment and paint. With companies like AkzoNobel, Meguiar’s, Sherwin Williams, 3M, and others, we are able to provide what our students need. Without them we wouldn’t be able to operate. It’s ultimately all about our students to help them succeed in the industry.”

As he was applying for the makeover grant, roughly an 80-page application, Snook said he consulted with his instructors and asked them what they needed for their classes.

This 1968 Subaru 360 was just painted in a special “Each instructor in the departprojects class ment received something out back then, you could just lift up the of the grant that they would have never hood and see everything, where nowaotherwise gotten their hands on. They days you plug in a computer.” got the latest and greatest available in For many years, Snook has been equipment and tools.” operating his department on a $6,000 Snook added, “The grant has given annual budget for supplies and equip- us the ability to bring the department enjoys the classroom time and working in the lab doing hands-on training.

He plans to graduate with an AA degree and perhaps get side jobs and work for himself or get hired at a shop, or buy an old car and customize it himself. Noxon enjoyed working on cars as a teenager, and back then, he and his buddies taught themselves. “Things are a lot different now — 35 years later a lot has changed. It was a lot simpler

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into the next 10 or 15 years with stateof-the-art equipment. As instructors and as a college that has one of the few collision repair facilities left, we are so appreciative of the companies that come in and donate, get involved and serve on our advisory committees and give us direction and support through donations. Without them we couldn’t do what we do,” Snook said.

“Many secondary and post-secondary collision programs throughout the country are barely surviving on their small budgets. What we’re learning is, without the focus from the industry, schools will continue to struggle to keep up with the technology today,” said Clark Plucinksi, Executive Director at the Collision Repair Education Foundation. “Without the support from the industry and the education foundation, these stu-

portunities in the industry.

Since 2009, the foundation has offered their annual national Ultimate Collision Education Makeover school grant to one secondary or post-secondary school’s collision program.

Over the past four years, over 200 schools nationwide have applied for this grant. “Non-profit schools are eligible to apply, and to be a recipient speaks wonders of the instructors and their commitment to students and their program,” said Eckenrode.

In 2011, the education foundation raised $4.1 million and by 2013, the organization hopes to raise $10 million annually in materials, supplies, support and cash donations. According to Eckenrode, 85 cents of every dollar raised in 2011 in combined product and monetary donations went directly to help schools.

Instructor Dan Snook (center) poses with his students in the collision repair program at Cypress College. The college is the first recipient of the new $50,000 California Matching Makeover Grant

dents — the future of our industry — don’t have the advantages of learning and gaining experience using the latest in equipment and tools.” Plucinksi was a shop owner for 43 years in the Washington, DC area with true2form, a 43-store chain located in Ohio, Pennsylvania, Maryland and North Carolina. The chain was sold to the Boyd Group in 2010.

“Our main focus is to help students and instructors,” said Eckenrode.

The Collision Repair Education Foundation was founded in 1991 originally as the I-CAR Education Foundation and its original focus was to help place I-CAR curriculum into collision school programs. In 2008, curriculum sales to the schools transitioned over to I-CAR, becoming a separate organization from the education foundation.

The Education Foundation became a 501c3 charitable organization that fundraises and supports collision repair education to enhance career op-

The 2012 Education Foundation secondary and post-secondary makeover grant winning schools will be announced at a Oct. 30 reception during SEMA 2012 in Las Vegas. The foundation received 70 applications from schools in 31 states. According to Eckenrode, starting this year, two makeover grants will be offered so that secondary and post-secondary schools don’t have to compete with each other. Additionally, because many of the companies donate their products, the foundation is still able to help fulfill the wish lists of schools who did not win the makeover grant.

For more information about the Collision Repair Education Foundation’s Ultimate Collision Education Makeover $50,000 school grant, visit www.CollisionEducationFoundation.org or contact Associate Director of Development Brandon Eckenrode at brandon.eckenrode@ed-foundation.org or call (847)463-5244.

www.autobodynews.com | NOVEMBER 2012 AUTOBODY NEWS 61

Continued from Page 55

CAA Ventura

printed media or ads for much of anything and definitely not for collision repair. VMC’s website opens with an invitation to “Join the Valley Motor Center experience,” and to make an appointment. With a focus of reviews on Yelp, photos on YouTube, updates on Twitter, and comments on Facebook, all of these come together on the website

with links and references to all of the above.

Each section of the website guides the visitor to these integrated elements plus a shop tour, FAQs, staff photos, a check-vehicle-progress page, an insurance agent page, and a continual updating of references. The website will never be finished, because there will also be a continual influx of new stories, shop improvements, before and after photos, and more. She concludes that in the future most people seeking collision repair will search

on-line, and the size and quality of a shop won’t make as much difference as its presence on the top of multiple search engines with a website that sells the job without the person setting a foot in the shop.

The one question that remains unanswered is where a smaller shop than VMC can get competent website design and maintenance without employing a full-time person like Micki, or paying an arm and leg for highpriced web services. Perhaps this will be the focus of a future meeting.

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