Western Edition California Nevada Arizona
32
YEARS
VOL. 31 ISSUE 11 NOVEMBER 2013
www.autobodynews.com ww ww.autobodynews.com
NACE 2013 Proceeds As Expected, Eyes Turn to Revitalized Show in Detroit in 2014 To no one’s surprise, the 2013 NACE exhibition was a downsized event from previous years, but the Las Vegasvenue may have been the most appropriate launching pad for what is expected to be a revitalized NACE event in Detroit next summer. Attendance has been down for the past three years, with a slight uptick for the 2011 show in Orlando, FL. This year’s event saw another attendance dip, which ASA Executive Director Dan Risley says was expected. There were significant successes at the 2013 show such as a popular
keynote by industry veteran Mike Anderson and the MSO Symposium which has been growing in attendance, Mike Anderson kicked off the 2013 NACE Expo with a keynote speech entitled “The Future Is Not Set in Stone” at the Opening General Session/Collision Industry Forum. Anderson’s familiar audience engagement techniques were on display as he employed humor, moving personal annecdotes, and even his Tourette’s syndrome ticks, as models and metaphors for perseverance, unity and action in the industry.
“We get caught up in how much things cost, in Parts Trader, in cycle time, and we forget that what matters is how we fix the car,” Anderson said.
“When the industry gets a black eye, it affects every single person [in it].” “With insurers, they try to come See NACE 2013, Page 12
Autobody News Associations Issue covering some associations from all parts of the US. See pp. 4, 16, 22, 26, 34, 38, and 67.
In the Spring, we’ll publish updates on associations from other parts of the country. Tell us about your favorite Collision Repair Associations.
Aluminum Repair Impasse Causes Oregon Shop Not to Renew Select Service Agreement
aluminum repair. Our terminating the Select Service agreement stems from our company being a certified Tesla repair facility and the investments in time, equipment, training, specialized equipment and facilities which we could not offer for the rates State Farm was willing to pay. This will no doubt enable our company to re-evaluate and revise our pricing on other goods and services for the other manufacturers of which we are a certified repairer for including Porsche, Audi, Volkswagen, Nissan, Volvo, GM, Chrysler and several others.” See Aluminum Impasse, Page 15
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
During a meeting with the area State Farm Estimatics Manager, Ron Reichen, President of Precision Body and Paint in Beaverton Oregon, chose not to re-negotiate his company’s Select Service agreement with State Farm Insurance, the nation’s largest personal auto insurer—a relationship which lasted over 17 years and of which accounted for $2 million dollars in business over the past year. “It was actually a business decision we had been considering for some time” stated Reichen. “Discussions came to an impasse over fair and reasonable rates and allowances for
ASA-AZ Surveys Wholesale Parts Dealers on PartsTrader Usage, Majority Not Impressed Over 130 people attended an Automotive Service Association of Arizona (ASA-AZ) meeting on the evening of August 13th that featured Dale Sailer from Parts Trader and George Avery, national spokesperson from State Farm Insurance. Mike Anderson of Collision Advice facilitated the meeting in which questions were answered following presentations by Mr. Sailer and Mr Avery. Among those in attendance were two state legislators curious about the program and the impact on constituents. (See John Yoswick’s article on this event in the September Autobody News.) The meeting coincided with the national rollout of Parts Trader in Arizona, Texas, New Mexico and Colorado. Arizona was the first state in which Select Service shops were required to locate and purchase all parts using the relatively new and controversial program without benefit of the “fax only” option. Select Service shops are now only allowed to purchase parts from vendors that agreed to sign a Parts Trader Agreement. As a follow up to this meeting,
ASA-AZ sent out surveys to new car dealerships parts departments. “The overwhelming majority of our collision repair members are opposed to the mandated use of parts procurement programs” stated Luz Rubio, Executive Director for ASA-AZ. “We sent out the surveys to find out how Parts Trader was actually working for vendors and whether they felt it added value to their business.” Thirty OEM vendors replied to the survey with results that were overwhelmingly negative in regards to how parts departments felt the program was working for them. “The results of our survey do not seem to support Mr. Sailer’s claims that Parts Trader has been well received by many of the vendors using it” said Ms. Rubio. One of the respondents commented on the overall program, “We have not seen a value in the program. We pride ourselves on relationships built with repairers throughout the years and find Parts Trader to be an unnecessary part of our business. There are a lot of unanswered quesSee ASA-AZ Survey, Page 8
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244
2 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Contents Attanasio - Do Ad Specialties (“Swag”)
Aluminum Repair Impasse Causes Oregon Shop
AudaExplore™ Introduces GoTime Line
ASA-AZ Surveys Wholesale Parts Dealers on
Auto Data Direct Adds 3 New States to Database . 60
Attanasio - I-CAR Instructor Looks Back
Autobytel Acquires Assets of Advanced
19 Arrested in Arizona’s Tin Man Sting Operation . 6 Not to Renew Select Service Agreement . . . . 1 PartsTrader Usage, Majority Not Impressed . 1 at 20 Years in the Business. . . . . . . . . . . . . 55
Attanasio - September’s East Bay CAA Meeting:
Yelp, Facebook and Troops . . . . . . . . . . . . . . 4
Body Shop Employee Was Robbed
Really Make an Impression?. . . . . . . . . . . . 32 of Driver Focused Mobile Solutions. . . . . . . 64
Auto TECH Expo to Debut in Chicago Next April . 40 Mobile LLC. . . . . . . . . . . . . . . . . . . . . . . . . 64
BASF Joins ASA as Newest Corporate Member . 69 BMW Asks California Court to Strike Class
Action in Leaking Sunroof Case . . . . . . . . . 66
Helping Customer. . . . . . . . . . . . . . . . . . . . . 6
Bob Stevenson Joins Carbench . . . . . . . . . . . 21
Driver License Bill. . . . . . . . . . . . . . . . . . . . . 8
Consumer Groups Go to Court to Force Obama
CA Gov. Approves Undocumented
CA Gov. Brown Vetoes Metal Theft Bill . . . . . . . 6
CAPA Tops 60M Certified Parts . . . . . . . . . . . 24 Administration’s Hand on Back-Up Cameras . 54
Caliber Acquires 12 Golden State
Enterprise Makes Amusing Video at
California Shop Owner Gets 50-Years-to-Life
Faces of NACE 2013 . . . . . . . . . . . . . . . . . . . 46
For Murdering His Customer in 2011 . . . . . 28
California’s Workers’ Comp Reform
My13days.com . . . . . . . . . . . . . . . . . . . . . . 9
Franklin - Glendale/Foothill CAA Looks
at Preproduction and Analysis . . . . . . . . . . 26
Shows Signs of Progress . . . . . . . . . . . . . 52
Lincoln Electric Announces New Welding
Gift Car . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
NACE 2013 Proceeds As Expected, Eyes Turn
from Hayes Bros. . . . . . . . . . . . . . . . . . . . . 10
NHTSA Recommends Back Up Cameras
in CA and MI . . . . . . . . . . . . . . . . . . . . . . . 10
Overall Parts Solutions is a NABC Top
in Oregon is Welcomed Back by SCRS . . . . 14
Profile of the Evolving Collision Repair
Worker’s Comp Claims. . . . . . . . . . . . . . . . . 6
Quintela Sues 21st Century A Second Time
Car West Auto Body and Farmers Insurance Cooks Collision Acquires 4 Locations
IGC to Open Two New Glass Warehouses
Northwest Automotive Trades Association based Obamacare May Boost Some CA
Phoenix Body Shop Owner Accused of Staging
Accidents to Collect Insurance Benefits . . . 15
COLUMNS
Devices/Lifters . . . . . . . . . . . . . . . . . . . . . . 21 to Revitalized Show in Detroit in 2014. . . . . . 1 for New Cars . . . . . . . . . . . . . . . . . . . . . . . 64 Level Member . . . . . . . . . . . . . . . . . . . . . . 60
Marketplace, Part 1 . . . . . . . . . . . . . . . . . . 30 for Short-Pays, Says it Makes ‘Cents
out of Sense’ . . . . . . . . . . . . . . . . . . . . . . . 21
Rate of Auto Production Leads to
Poorer Vehicle Quality. . . . . . . . . . . . . . . . . 59
Franklin - Take 15 Seconds to Think about
Safelite Attorneys Dispute Connecticut Officials’
I-CAR Tech - New Honda “Body Repair
SCRS Adds Consolidation Tracks to SEMA
Insurance Insider - Cycle Time is Money
SEMA Supports Ban of E15 . . . . . . . . . . . . . . 63
Putting Marketing Ideas to Work . . . . . . . . . 58 News” Publication . . . . . . . . . . . . . . . . . . . 44 for Everyone. . . . . . . . . . . . . . . . . . . . . . . . 50
Sisk - Virginia-Based Automotive Recycling Association Does More Than Green
the Industry . . . . . . . . . . . . . . . . . . . . . . . . 67
Yoswick - November Retrospective on
the Collision Repair Industry . . . . . . . . . . . . 62
NATIONAL
3M’s Hire our Heroes Campaign Has NASCAR’s
Greg Biffle in the Driver’s Seat . . . . . . . . . . 20
AASPI Board of Directors Denounces
PartsTrader Mandates . . . . . . . . . . . . . . . . 15
AASPI Opposes State Farm Sand/Buff Policy . . 51
AASP-MN Files Formal Complaint with State Dept. of Commerce Re PartsTrader Mandates . . . . 9
Claims in Anti-Steering Case. . . . . . . . . . . . 45
Repairer Driven Education. . . . . . . . . . . . . . 63
Sheep Bolts Farm Truck, Seeks Refuge
in Detroit Body Shop . . . . . . . . . . . . . . . . . 28
Sherwin-Williams Adds Full Feature
Claims Portal . . . . . . . . . . . . . . . . . . . . . . . 60
Sisk - ABAC’s Decade-Long Battle Against
the Hartford Insurance Co. . . . . . . . . . . . . . 38
Sisk - Choice Autobody Repair Association
Advocates for Both Consumers and Repairers . 16
Sisk - Rhode Island’s Don Cushing Wears Multiple Hats in Parts Wholesale and
Auto Body Associations . . . . . . . . . . . . . . . 22
Sisk - Taking it to the Capitol—WMABA Fights
Battles for Shops in DC and Nationwide . . . 34
Todd Chizmar on I-CAR Board . . . . . . . . . . . . 21
Tru-Way’s New Website, Data. . . . . . . . . . . . . 28
Allstate Plans to Increase its MA
Urethane Supply Company Offers New
Allstate Says Usage-Based Insurance Increasing . 64
US Auto SAAR to Hit 16.4M, Highest
Workforce by 130 Agents . . . . . . . . . . . . . . 69
ASA Ohio Writes to State Farm’s CEO Ed
Rust Jr. Opposing Insurer Mandated Parts . 18
Welcome We elcome to our Ass Associations socia i ti tions Issue Issu uee which h will run in the fa fall all and spring in future. In addition to covering national tradeshows like NACE and SEMA, Autobody News is dedicated to providing regular coverage of regional auto body and vendor associations. We hope you like the coverage here. Autobody News is pleased to announce that, beginning in November 2013, we have expanded our circulation into eight additional states. These states are North and South Carolina, Tennessee, and Virginia—in our Southeast Edition—and Connecticut, Massachusetts, Rhode Island and Maryland—in our Northeast Edition. This expansion will enable us to reach out to thousands of “new” body shops and provide coverage of these states' regional auto body association activities and industry events. Our readers continue to tell us that our coverage of regional industry news keeps them informed about what’s going on locally and what other associations are doing nationwide. Get in touch with us at editor@autobodynews.com if you have a regional article or event that you’d like the rest of the collision community to know about.
Indexof Advertisers
Collision Centers . . . . . . . . . . . . . . . . . . . . 10
Is Expanding to New Readers
Welding System . . . . . . . . . . . . . . . . . . . . . 60
Level Since 2006 . . . . . . . . . . . . . . . . . . . . 10
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, David Dawson (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
American Innovative Manufacturing . . .18 Audi Wholesale Parts Dealers . . . . . . . .52 Automotive Art . . . . . . . . . . . . . . . . . . . . .9 Automotive ID . . . . . . . . . . . . . . . . . . . .52 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . .14 Axalta Coating Systems . . . . . . . . . . . . . .5 BASF . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Bill Luke Chrysler-Jeep-Dodge . . . . . . .51 Bill Luke Fiat . . . . . . . . . . . . . . . . . . . . . .51 Bill Luke Suzuki . . . . . . . . . . . . . . . . . . .50 BMW Wholesale Parts Dealers . . . . . . .61 Bob Smith BMW . . . . . . . . . . . . . . . . . .48 Bob Smith MINI . . . . . . . . . . . . . . . . . . .48 Car Bench America . . . . . . . . . . . . . . . .29 Car-Part Pro . . . . . . . . . . . . . . . . . . . . . .40 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .35 Chief Automotive . . . . . . . . . . . . . . . . . .27 Classifieds . . . . . . . . . . . . . . . . . . . . . . .70 Colortone Automotive Paints . . . . . . . . . .4 Completes Plus . . . . . . . . . . . . . . . . . . . .6 DCH Chrysler-Jeep-Dodge-Ram . . . . . .39 DCH Kia of Temecula . . . . . . . . . . . . . . .39 DJS Fabrications, Inc. . . . . . . . . . . . . . .23 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . .41 Drew Hyundai . . . . . . . . . . . . . . . . . . . .58 East Bay BMW-MINI . . . . . . . . . . . . . . . .24 Elk Grove Toyota . . . . . . . . . . . . . . . . . .15 Enterprise Rent-A-Car . . . . . . . . . . . . . . .6 Equalizer Industries . . . . . . . . . . . . . . . .16 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . . . . .57 Forklift Wrecker . . . . . . . . . . . . . . . . . . .16 Galpin Motors . . . . . . . . . . . . . . . . .26, 38 Glenn E. Thomas Chrysler-Jeep-Dodge .20 Glenn E. Thomas FIAT . . . . . . . . . . . . . .20 GM Wholesale Parts Dealers . . . . . . . . .66 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .36-37 Hyundai Wholesale Parts Dealers . . . . .50 Infinity 3D Laser Measuring . . . . . . . . . .25 Innovative Tools & Technology, Inc . . . .44
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. ©2013 Adamantine Media LLC. Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com Email: news@autobodynews.com
Western
REGIONAL
Intertape Polymer Group . . . . . . . . . . . .30 KBS Coatings . . . . . . . . . . . . . . . . . . . . .10 Kearny Mesa Subaru-Hyundai . . . . . . .54 Kia Motors Wholesale Parts Dealers . . . .65 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Los Gatos Luxury Cars . . . . . . . . . . . . .42 Maita Subaru . . . . . . . . . . . . . . . . . . . . .32 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Mazda Wholesale Parts Dealers . . . . . .62 Mercedes-Benz . . . . . . . . . . . . . . . . . . .19 MINI Wholesale Parts Dealers . . . . . . . .60 Mitchell International . . . . . . . . . . . . . . . .8 Mitsubishi Wholesale Parts Dealers . . . .56 Momentum Auto Group . . . . . . . . . . . . .49 MOPAR Wholesale Parts Dealers . . . . .43 Moss Brothers Chrysler-Jeep-Dodge . . . .11 Nicolosi Imports . . . . . . . . . . . . . . . . . . .28 Nick Alexander BMW . . . . . . . . . . . . . . .47 Nick Alexander MINI . . . . . . . . . . . . . . .72 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .63 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Pro-Spray Automotive Finishes . . . . . . .13 Replica Plastics . . . . . . . . . . . . . . . . . . .56 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .22 Sartorius . . . . . . . . . . . . . . . . . . . . . .21, 45 SATA Spray Equipment . . . . . . . . . . . . .12 Sherwin-Williams Automotive Finishes . . . . . . . . . . . . . . . . . . . .32, 33 Shingle Springs Nissan-Subaru . . . . . .46 Sierra Chevrolet-Honda-Mazda-Subaru .34 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .28 SprayZone.net . . . . . . . . . . . . . . . . . . . .31 Subaru Wholesale Parts Dealers . . . . . .69 Timmons VW-Subaru . . . . . . . . . . . . . . .59 Toyota Wholesale Parts Dealers . . . . . .64 Tsunami Compressed Air Solutions . . . .10 Valspar Automotive . . . . . . . . . . . . . . . .17 Volkswagen Wholesale Parts Dealers . . . .67 Volvo Wholesale Parts Dealers . . . . . . .68 Walcom USA . . . . . . . . . . . . . . . . . . . . .55 Weatherford BMW . . . . . . . . . . . . . . . . .53
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 3
Associations Assembling
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
September’s East Bay CAA Meeting: Yelp, Facebook and Troops with Ed Attanasio
Approximately 70 people attended the disagree or how you can rectify it. ReEast Bay Chapter of the California Auspond to every review on Yelp, tobody Association’s (EB-CAA) meetwhether they’re negative or positive.” ing on September 17 at PPG’s northern The next hot topic that body California Training Center in Concord, shops are most interested in involves CA, to enjoy a BBQ dinner and a pressocial media and Facebook is leading entation by Michelle Nelson, the the way. So, Nelson discussed Faceowner of b2b Automotive, a 25 year- book next. “One mistake body shops old company based in St,. Louis, MO make with Facebook is they don’t crethat helps collision and mechanical reate a business page. With a standard pair shops with their marketing, social page, you’re tapped out at 5,000 folmedia and advertising efforts. lowers, but by creating a business Nelson’s highly entertaining prespage for your shop, you can accumuentation was packed with information late as many followers as you want.” body shops can use, as she moved Nelson also provided several addiquickly from topic to topic. Nelson tional tips on how to use Facebook for grew up in the body shop business and best results. “Avoid selling on Facecomes from what she calls a “collision book,” she said. “Posting fun and inforfamily” and has been doing marketing mational things on Facebook involving in varied capacities videos and photos will always get the since 1991. She most hits. Also, post something new on landed her very your page every day, to keep the interfirst client when action high. It all works together to imshe dropped one of prove your Search Engine Optimization her business cards (SEO) while strengthening your brand.” in a free lunch proAfter Nelson’s presentation, motion jar at a Dennis O’Keefe and Doug Rogers Michelle Nelson, sandwich shop. A from 3M’s Automotive Aftermarket the president of b2b automotive local body shop Division discussed their company’s was the main owner fished her Hire our Heroes program. 3M recogspeaker at the card out of the jar nizes the need for qualified techniEB-CAA meeting, and gave her a call. cians in the collision repair industry discussing social Today, b2b autoand is creating an opportunity through media, marketing and advertising motive is a highly this program for returning veterans to for body shops successful comfind rewarding careers with the right pany that represents 90% collision reeducation and support. 3M Automopair businesses, with the remaining tive Aftermarket Division’s Hire Our 10% dedicated to mechanical shops. Heroes campaign provides training To kick off her speech, Nelson and support for our nation’s returning addressed one web site many body veterans and their families. shops have on their minds, and that’s Yelp. “More than half of all the consumers out there go online to look at reviews about shops before they will consider them,” Nelson said. “That’s why you have to constantly monitor your Yelp page on a weekly The PPG Nor Cal team was in the house and in full force at or even a daily basis. If you the EB-CAA Sept. meeting. From left, Dave Miller, Instructor, PPG Business Development Center, Ken Mattos, Terridon’t address bad reviews tory Manager, PPG Bay Area, Donna Mathison, Admin promptly, it can definitely be- Assist, PPG Business Development Center Tom Wolf, PPG come a serious issue. When Regional Manager and Territory Managers, Sherman Lou, you see a negative review, Adrian Gomez, Ben Shell and Rob Hengemihle find out who wrote it and if it’s not O’Keefe briefly outlined the profrom a customer, contact Yelp. If it’s gram, whose main goal is to provide a legitimate review, post a rebuttal ex- funding for education of our nation’s plaining your position and why you returning veterans and their families
4 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
through the Collision Repair Education Foundation. “If body shops make a qualifying purchase of 3M products, the company will make a donation to the Hire our Heroes Foundation and
Dennis O’Keefe a sales rep for 3M’s San Francisco Bay Automotive Aftermarket Division (left) and Doug Rogers, also a rep for 3M, stand beside two car hoods as part of their Hire our Heroes program
the shop will receive one of two attractive car hoods, one designed by Chip Foose and the other by the legendary painter Mickey Harris,” he explained. “In addition, 3M is funding
rehabilitation for our wounded veterans through Operation Comfort as part of a unique automotive skill-based rehabilitation program and to support the U.S. Chamber of Commerce in raising awareness for hiring America’s heroes and help drive employment in the collision repair industry for these deserving veterans and their families.” “Hire Our Heroes will contribute a target amount of $250,000 to the Collision Repair Education Foundation and Operation Comfort, based on sales of select popular 3M products,” O’Keefe explained. “In addition to finding jobs for returning vets, we’re also honoring veterans already serving in the collision repair industry. Shop owners and managers can nominate a veteran working in collision repair for a chance to win a trip for themselves and their vet to a NASCAR® race where 3M will recognize their service.” For more on Hire our Heroes, see p. 20 this issue.
Paints, Materials & Supplies rving Body Shops PBE Distributor Se motive Paints with the Best Auto lies since 1933 and Body Shop Supp • Technical Service Specialists trained by BASF in Glasurit and R-M paint systems. • Colortone is an Authorized ColorSource Distributor for BASF Products
Colortone Automotive Paints 2420 Ripple Street, Los Angeles, CA 90039
www.colortonepaints.com
(323) 661-1181 (323) 661-1103
Fax
(323) 660-1823
LIMCO ONYX
SUPREME
90 L i n e
®
Built for performance. Big success takes singular focus. That’s why at Axalta Coating Systems, formerly DuPont Performance Coatings, we’re 100% dedicated to the science and technology behind coatings. Our 145 years of innovation inspire us to perform better in every measure, designing systems that work harder than ever. Fueled by passion and perspective, we’re raising the bar and building a brighter future for our customers. Learn more at axaltacoatingsystems.com
© 2013 Axalta Coating Systems, LLC and all affiliates. All rights reserved.
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 5
Obamacare May Boost Some CA Worker’s Comp Claims
19 Arrested in Arizona’s Tin Man Sting Operation
State and local authorities served search warrants at several locations in Phoenix, Coolidge and Tucson as part of a 15-month investigation into an alleged auto theft ring. According to authorities, car thieves took stolen vehicles to the “Hendrix & Co.” salvage yard where the cars would be reduced to scrap, no questions asked. “They provided opportunities for people that steal cars to dispose of those vehicles,” said DPS Capt. Bruce Campbell. “Word gets out... if you’ve got stolen silverware, people know where the crooked pawn shops are. Same thing with recyclables and salvage yards.” 15 search warrants related to the Hendrix company were served at businesses and homes. Investigators raided three scrap yards in Phoenix, one in Coolidge, and one in Tucson. Authorities say the business served as a front for the illegal sale of metal, scrapped from stolen cars. Several members of the criminal organization were also involved in the sale of drugs. The charges range from participating in a criminal syndicate, trafficking in stolen property, warrants, and drug charges.
The Patient Protection and Affordable Care Act may be pushing up claims frequency by driving increased part-time employee hiring, speakers said during a California workers compensation conference. For now, the Workers’ Compensation Insurance Rating Bureau of California is conducting research to determine whether the hiring of more part-time workers, over fulltime employees, is driving a spike in California claims frequency by adding “more exposure units in the system,” said Bill Mudge, president and CEO the San Francisco-based WCIRB. While workers comp claims in the rest of the nation have been falling, claims in the Golden State are rising. Early data shows, for example, that claims in California rose 6% during the first half of this year, Mudge said. The frequency increase is particularly noticeable among employers amenable to staffing with part-timers, such as the hospitality and restaurant industry, Mudge said. Said Mudge, “the rising in frequency of workers comp claims... may be a unintended consequence of Obmacare.”
The Radiator and Condenser Headquarters for Collision Centers
Radiators A/C Condensers As a Tier 1 supplier to Toyota, Honda, GM and others, Denso offers true First Time Fit radiators and condensers to the repair industry » » » »
Free Daily Delivery by 30 Company Trucks Free California Overnight Shipping Four Los Angeles Warehouses Limited Lifetime Warranty on All Radiators & Condensers 10425 S. La Cienega Blvd. > Los Angeles, CA 90045
Mon-Fri 7:30 am-6:00 pm
Call our Cooling Specialists:
888.500.6557 Fax: 310.703.5752
www.completesplus.com 6 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Body Shop Employee Was Robbed Helping Customer
An employee of Alameda Collision Repair was robbed and injured as he was giving a courtesy ride home to a man who brought a car to the auto body shop for an estimate Saturday morning, Sept. 28, Alameda police said. The employee was treated at a local hospital for injuries to his jaw, which are not considered life-threatening. An Oakland man suspected of beating and robbing the auto body shop employee was arrested after he returned to Alameda Collision Repair to collect his damaged car. The suspect was captured on surveillance video and shop employees alerted police to his return. Meanwhile the robbery victim remains hospitalized. Friends of the young man told Alameda Patch that he is undergoing surgery for a fractured jaw. The suspect had asked for a ride from the shop at 1911 Park St. to his home in Oakland, Police Lt. Jill Ottaviano said. After they reached Oakland, the suspect attacked the driver and stole money from him, she said. The incident is considered a strong-arm robbery and reportedly no weapon was used, she said.
CA Gov. Brown Vetoes Metal Theft Bill California Gov. Jerry Brown has vetoed Assembly Bill 841 (AB 841), which would require a scrap metal recycler to pay for the purchase of scrap metal by a check mailed to the seller. The bill was designed to help prevent theft. Brown explained his decision in a public letter acknowledging that theft of nonferrous metals is a problem throughout the U.S. but current laws should be enough to reduce the problem, including four bills he has signed in the last year on the topic. “Existing law requires that a seller wait three days before receiving payment for metal materials, a written record of the transaction, the name, driver’s license number, license plate number, thumbprint of the seller and a photograph or video of the seller and the material being sold. How much more do you need?” said Brown. Brown said the state should focus more attention on enforcing current laws before implementing new ones, a statement that received praise from the Institute of Scrap Recycling Industries (ISRI) in Washington, D.C.
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 7
CA Gov. Approves Undocumented Driver License Bill California Insurance Commissioner Dave Jones has thanked Governor Brown for signing into law Assembly Bill 60 (Alejo), which will allow all Californians to apply for and receive a driver license if they are able to show appropriate identification and receive proper training and education. Commissioner Jones issued the following statement. “Assembly Bill 60 will improve safety on our roads by allowing all properly trained and tested individuals, regardless of their immigration status, to qualify for a California’s drivers’ license. Over a million newly eligible drivers will now get tested in order to get a license, ensuring that they know the rules of the road. We know that properly trained drivers who know California’s rules of the road are safer drivers and involved in fewer collisions. This makes driving safer for all of us. Allowing these drivers—who are already on our roads without a license and without any testing—to get a license will also increase the likelihood that they will get auto insurance, which they are separately required to do. Many who are not able to get a license now also decide to forgo auto insurance because they
figure why bother since they are already driving illegally. Bringing these people out of the shadows and allowing them to apply for a license increases the likelihood they will also get insurance. Fewer drivers operating without insurance and lower accident rates could lead to auto insurance savings for all consumers. Having supported this important reform for years now, first as an Assemblymember and now as Insurance Commissioner, I applaud the Legislature and Governor Brown for making our roads safer for all Californians by enacting AB 60.” The California Department of Motor Vehicles estimates there are likely more than two million unlicensed drivers on California roads. They also estimate that 1.4 million individuals will become licensed pursuant to AB 60. The insurance industry estimates approximately 15 percent of all drivers are uninsured. A significant number of these uninsured vehicles are operated by those without legal immigration status, as prior to AB 60 the undocumented were prohibited from obtaining a drivers’ license. AB 60 will take effect no later than January 1, 2015.
8 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Continued from Cover
ASA-AZ Survey
tions as to who will pay for the Parts Trader program and how that will affect established relationships and pricing models.” ASA-AZ released a position statement opposing Parts Trader on July 27, 2012. “Feedback from OEM parts vendors as well as repairers has given us no reason to change our position regarding the use of Parts Trader” commented Ms. Rubio. “Not one collision trade association has come out in support of the State Farm mandate and now, it is clear, that OEM parts departments are also opposed to its use. It is time for State Farm to consider an alternative instead of forcing repair shops and parts vendors to use a program that is both unpopular and ineffective.” The ASA AZ continues to reinforce its position that insurance companies should stay in the business of insurance and leave all aspects of the collision repair process including parts ordering to the collision repair professionals. The Automotive Service Association of Arizona is a not-for-profit
trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA of Arizona serves a membership base that includes groups from both the mechanical and collision repair segments of the automotive service industry. ASA of Arizona’s mission advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA of Arizona visit www.asaaz.org. Survey results can be downloaded at Autobodynews.com.
The source for timely information that every body shop needs!
CALL 800-699-8251 Start Your FREE Mail Subscription.
AASP-MN Files Formal Complaint with State Dept of Commerce Re PartsTrader Mandates The Alliance of Automotive Service Providers of Minnesota (AASP-MN) has filed a formal complaint with the Minnesota Department of Commerce requesting timely administrative and/or legal action to prevent State Farm from mandating that repair shops use the PartsTrader parts procurement system. The Complaint and Request for Relief is based on State Farm’s violation of Minn. Stat. § 72B.092, subd. 1(6). This provision, enacted in 2007, prohibits insurers from specifying “…the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the vehicle.” The complaint states that the mandated use of PartsTrader restricts market options for parts procurement, and therefore should be prohibited as intended by the legislature. AASP-MN was instrumental in getting this provision included in Minnesota law. In May 2007, Minnesota’s Governor, Tim Pawlenty, signed into law a bill, proposed by AASP-MN, that added specifying
parts procurement vendors to the list of prohibitions on insurers in collision cases. In addition to existing language providing for an insured’s right to choose a shop and other prohibitions, two additional prohibitions were included to prevent insurers in collision cases from adjusting a damage appraisal without conducting a physical inspection or specifying parts vendors. The law states that no insurer shall: ● adjust a damage appraisal of a repair shop when the extent of damage is in dispute without conducting a physical inspection of the vehicle; or ● specify the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the vehicle. This clause does not require the insurer to pay more than a reasonable market price for parts of like kind and quality in adjusting a claim. For more than a year, AASP-MN has corresponded and met with Department of Commerce officials to express concerns regarding the mandated use of PartsTrader in other
states. According to AASP-MN, the department was reluctant to act until State Farm indicated its intention to implement PartsTrader in Minnesota. AASP-MN is also pursuing this issue with the office of the Attorney General. Information has been transmitted to the appropriate officials to request that they work with, or in lieu of, the Department of Commerce to prohibit the implementation of PartsTrader as a violation of Minnesota Statute. In addition, AASP-MN has consulted with legal counsel to identify possible causes of action that could be brought before a court. In May of 2012, AASP was among the first industry associations to go on record stating that State Farm’s newly-mandated bidding process for parts procurement was an unprecedented and uninvited intrusion into the business of collision repair. AASP-MN says its efforts reinforce that position and are intended to protect the interests of the collision repair industry and give voice to its concerns.
Enterprise Makes Amusing Video at My13days.com
According to Enterprise Automated Rental Management System (ARMS®) data, vehicles are in the shop for an average of 13 days after an accident, leading vehicle owners to have to borrow family cars, hitch rides or pay out-of-pocket rental fees of up to $400. “Many people aren’t sure if they’re covered for a replacement rental while their vehicle is in the shop, and many don’t find out until it’s too late,” said Mary Mahoney, vice president at Enterprise Rent-ACar. “One year of rental reimbursement coverage can cost less than a one-day car rental. With that in mind, the video and website are fun, lighthearted ways to generate awareness and educate drivers.” Enterprise’s short YouTube video has already gained nearly one million views in just one week. The dedicated micro-site, my13days.com also takes a humorous approach to the vexing challenges drivers could face—like driving a teenager’s car for nearly two weeks—without this inexpensive insurance offered by auto insurance companies.
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 9
Car West Auto Body and Farmers Insurance Gift Car
Car West Auto Body and Farmers Insurance presented a 2005 Mazda 6 to a local Bay Area family in need on October 6 at the Family Community Church in San Jose, CA. About 3000 people attended the presentation that was streamed all over the media worldwide. With the collaborative generosity of the Family Community Church, Farmers Insurance Claims department of Northern California, Farmers Agent John Williams of San Jose, Hertz and LKQ, a former homeless family was surprised with a car. “Many of us are more fortunate than others and have never been in a position where we have no place to go, sleep or eat,” said Craig Moe, President of Car West Auto Body. “It is imperative that we all give a little because the little that we give can mean the world to another’s life.” Prior to being helped by the Family Community Church, the once homeless Rafidi family found refuge in their car and local camp sites as a result of abrupt job and income loss. They stabilized their lives with new jobs and a new home this past year with the help of the church.
Cooks Collision Acquires 4 Locations from Hayes Bros.
Cooks Collision Centers, a Roseville, CA-based MSO, has acquired four locations in the greater Sacramento area from Hayes Brothers Collision Repair. The Hayes transaction is one of five acquisitions in the past 12 months that have added locations to Napa, the Peninsula and the South Bay area. An additional location is scheduled to close at the end of this month. With this latest acquisition, Cooks now operates 33 locations and is the largest independently owned and operated collision company in California, and the largest family-owned repairer in the country. “We are closing the year with several prime acquisitions that complement our growth strategy,” said Don Wood, who owns Cooks with his brother, Rick Wood. “We have built a solid infrastructure for continued growth in 2014 and beyond.” Added Brett Hayes, co-owner of Hayes Brothers Collision Repair, "Part of our legacy is that we are a family-owned business. It gives us comfort to know that Cooks Collision, another family-owned business, will take good care of our employees and customers.”
10 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
IGC to Open Two New Glass Warehouses in CA and MI
Import Glass Corp., a Californiabased automotive replacement glass distributor, is opening two new warehouses within the month. The new warehouse in Pomona, CA, is now open. The location in Plymouth, MI, is expected to open November 1. IGC is a family-owned company that offers a full line of windshields, tempered parts, mouldings and more. IGC carries a full line of OEM windshields, tempered parts, moldings, truck windows, mirrors, adhesives, regulators, tools and related materials.
US Auto SAAR to Hit 16.4M, Highest Level Since 2006
The U.S. auto industry’s new-vehicle sales in 2014 will hit their highest level since 2006 as consumers continue to replace aging cars and trucks. Edmunds.com forecast that sales next year will hit 16.4 million vehicles. That would be up from an estimated 15.5 million the firm expects in 2013 and the highest total since 16.5 million were sold in 2006. However, the projected 6% growth rate would be the industry’s smallest increase since sales bottomed out at 10.4 million vehicles in 2009.
Caliber Acquires 12 Golden State Collision Centers
Caliber Collision Centers announced that it has acquired Golden State Collision Repair Centers. Recognized as one of the premier collision repair companies in Northern California, Golden State Collision Repair Centers has 12 locations in and around the Sacramento market. Steve Grimshaw, Caliber Collision Chief Executive Officer announced, “Our acquisition of Golden State Collision Repair Centers marks our initial expansion into the Northern California market. After spending time with Golden State’s management team, it was obvious that Golden State aligns perfectly with Caliber by delivering industry-leading customer satisfaction across all 12 Sacramento area locations.” “We are proud that Golden State Collision Repair Centers is now a part of the nation’s leading collision repair provider” said Bruce Mackie, Golden State President. “This combination will allow the company to continue to grow, while providing Golden State’s customers with the same high standards of quality and personal service that has become our trademark.”
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 11
Continued from Cover
NACE 2013
in our industry and do things to us and not with us,” he said, citing his experience living briefly in Hawaii where he was counseled about developing a more colobarative style while teaching. At the conclusion of his talk Anderson was honored with the 2013 Joe Jackson Industry Champion Award, presented by Axalta Coating Systems, which recognizes collision repairers exhibiting outstanding leadership, charity or humanitarian works.
MSO Symposium The largest Multi-Shop Operator (MSO) Symposium to date was held on Oct. 16 and provided a strong draw to the shops in attendance. It attracted a sold-out crowd of 275 MSOs. “We had the combined benefit of collision repairers and capital market leaders, as well as expert speakers on leadership and decision-making contribute to our interactive event that focused on the current and future state of the U.S. collision repair in-
dustry,” said Vincent Romans, The Romans Group, producer of the MSO Symposium. (See p. 30 this issue for the Romans Group Profile of the Evolving Collision Repair Marketplace, Part 1.) The MSO Symposium was full from start to finish. Several attendees commented it was the main reason they came to Las Vegas for the con-
Mike Anderson (l) receives the Joe Jackson Industry Champion Award from Axalta’s Michael Bennett
vention and a few described the event as a kind of speed-dating process in which some smaller MSOs vied for attention from the four big players in attendance. “All the major players were represented at this year’s MSO Symposium
12 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
and the room was a veritable ‘who’s who’ list,” says Ron Nagy, AAM, of Nagy’s Collision Specialists. “This event continues to deliver.” “The representation from both large and small MSOs at the symposium provided a good view of the changing landscape occurring within the industry on an almost daily basis,” says Frank LaViola, Assistant Vice President at Enterprise Rent-A-Car. “These changes will undoubtedly affect all the constituents within the industry and helps us all be better prepared to tackle these changes.” “The attendance at the MSO was strong and key MSOs were well-represented,” says Shelton Byrd, Sales Executive Western Region, Mitchell International. “The overlying message of the panel discussion was the importance of recruiting talented people and fostering their growth.”
Stone Fort Takes Over the Show Major changes will occur in the show management with Stone Fort Group taking over the NACE-CARS show from current show operator Hanley Wood Exhibitions, who has managed the show for the past 13 years. Stone
Fort Group offers an experienced team to provide conference management, sales and marketing for NACE and CARS 2014, and will work closely with the association in a similar capacity to Hanley Wood, who will now concentrate on the trade shows that they own. Stone Fort Group co-founders Sean Guerre and Brian Nessen have 20 years of trade show and conference experience, and reportedly have broader international marketing reach than Hanley Wood.
NABC Presented Three Vehicles The “First Responder Emergency Extrication” presentation was delivered by the Clark County Fire Department from Henderson, NV, who conducted live emergency extrication techniques on late model vehicles. The NABC’s Recycled Rides presentations featured three vehicles donated to local community organizations targeting those in need. The first was a specially equipped, handicap-accessible van that has been repaired by Gerber Collision and donated by State Farm Insurance. The van was donated to the Foundation for Positively Kids and will be used to trans-
In this business, it’ it’s s a mat matter ter of survival. sur vival. Color is the first – and sometimes the only – thing that customers QRWLFH 7KDW¡V ZK\ ZLWK 3UR 6SUD\¡V accurate color match and H[FHSWLRQDO KLGH \RX JHW WKH
How important is your color match?
color right the first time. <RX DOVR JHW WKH LQGXVWU\¡V cutting edge color tools. Like the Navigator â&#x201E;˘ Precision Color Selection System and the PaintXpert ÂŽ Software.
:KDW¡V HYHQ EHWWHU" 1DYLJDWRU delivers high performing QDWLRQDO UXOH ORZ 92& solvent and pigment rich waterborne formulas in one simple system. All at a value that will not only help your EXVLQHVV VXUYLYH but also thrive.
Visit us at SEMA booth #11247
Serious Color. Smart Business.â&#x201E;˘ 800.776.0933 ProSprayFinishes.com
facebook.com/prospray youtube.com/prosprayautofinishes
A Quest Automotive Brand
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 13
port medically-challenged children so that they can receive the medical care they need.
Fred Schultz, CEO of Positively Kids, accepts Handicap-Accessible Van donation
NABC also hosted the presentation of two vehicles donated by Allstate Insurance and repaired independently by Caliber Collision and the Van Tuyl Group. The vehicles were donated to the Nevada Partnership for Homeless Youths.
I-CAR Presentations I-CAR offered three technical presentations of its “Repairability Technical Support” initiative, designed to help bridge the information gap between the repair industry and vehicle manufacturers. I-CAR hopes to improve industry access to technical repair knowledge, address gaps in repair procedures, and enhance industry
technical communication with OEMs. “Vehicle Maker Repair Information and I-CAR Technical Support,” stressed the importance of OEM repair procedures, how to access information online and various resources available when accessing them. “Today’s Advanced Vehicle Construction Materials & Safety Systems,” focused on the advanced materials used by car makers and how those materials affect the repair process now and in the future. “Advanced Joining Methods–Understanding OEM Procedures and Repair Processes” covered important repair information on advanced joining technologies, which ones to use in different situations, and how to replace parts following OEM recommendations. All presentations were led by Jason Bartanen, I-CAR director of industry technical relations, and Jamie Boettcher, instructional designer and trainer. NACE and CARS 2014 will take place July 29–Aug. 2 at the Cobo Center in Detroit, MI, and will be colocated with I-CAR and CIC. To learn more about NACE, visit www.ASAshop.org or call (800) 2727467, ext. 361.
14 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Northwest Automotive Trades Association based in Oregon is Welcomed Back by SCRS The Society of Collision Repair Specialists (SCRS) announced that the Northwest Automotive Trades Association (NATA), an Oregon-based organization serving automotive professionals in the Pacific Northwest has rejoined as an Affiliate Association. NATA serves and represents virtually every segment of the automotive specialty markets in its region, including the collision repair industry. NATA is rooted in the first Oregon automotive association, the Pacific Automotive Trades Association (PATA), formed by ten automotive aftermarket entrepreneurs in 1914. PATA merged with the Oregon Autobody Craftsman Association and the Automotive Service Association of Oregon in July of 2001 to create NATA. “Any time you have the opportunity to affiliate with the expertise and information found in a national association like SCRS, you do it because of the benefits it ultimately provides to members locally,” said NATA Executive Director Barbara Crest. “SCRS brings us an informed national perspective. They have proven
time and again to be a valuable resource that contributes to the success of the industry-the exact kind of partnership that can help collision repairers get up to speed on the issues affecting their businesses. Affiliation will help our members better plan for the future and form strategies that will allow them to grow and thrive.” “NATA and SCRS share a passion for industry improvement,” said SCRS Chairman Ron Reichen. “Training and education have become more critical than ever in reaching that goal given the growing sophistication of collision repair. Smart resource planning and mastering new technologies is more important than ever, as is motivating qualified men and women to enter our workforce by compensating them appropriately, creating more professional working conditions and improving trade school curricula and apprenticeship programs. NATA has made outstanding efforts to date in addressing these needs in their region. Working with them to find solutions on a regional and national basis is an exciting prospect, and we look forward to it.”
phisticated metals, manufacturing and repair techniques, repairers, party to such programs as Select Service are precluded from keeping pace with their increasing costs. We found attempting to do so, while maintaining the highest level of quality and service, to be both unreasonable and unsustainable, and as a business decision we elected to resign from the insurer’s program. “This was Precision’s last insurer Direct Repair relationship, and as in the past, we will continue to work with all insurers on our customer’s behalf. Precision is committed to its customers and our community and will continue to work diligently to serve them with the highest quality repairs and service in an expeditious manner regardless of which insurer is involved.”
Continued from Cover
Aluminum Impasse
Along with all other insurers, State Farm has paid Precision’s posted aluminum labor rates in the past. With Precision being the only certified Tesla repairer in the state, it is believed that with its growing popularity and its all aluminum construction, that State Farm has now elected to deny Precision’s aluminum rates under the Select Service Program. As a result, like all other insurers, State Farm will no longer be provided the concessions (e.g. storage) Precision offered in the past. Reichen stated: “While insurers continue to adjust their rates based upon economic pressures; as vehicle technology advances with new so-
AASPI Board of Directors Denounces PartsTrader Mandates The Alliance of Automotive Service Providers of Illinois (AASPI) Board of Directors has released a statement officially denouncing PartsTrader and supporting the efforts of the Mississippi Collision Repair Association (MCRA) in their lawsuit against State Farm to halt the insurer from requiring that shops in Mississippi use PartsTrader. AASPI’s statement comes on the heels of State Farm expanding its mandated use of PartsTrader beyond the Chicago metro area and into the entire state of Illinois. “PartsTrader and its mandated use by State Farm proves beyond a shadow of a doubt that the overwhelming purpose of this program is to minimize the shop’s control of their
business and expand the profitability of State Farm,” said AASPI President Jeff Kallemeyn. “PartsTrader is crippling the business relationship between shops and suppliers, and ultimately the vehicle owner will receive inferior repairs due to mandated usage of PartsTrader.” AASPI will be hosting a statewide meeting on November 23, 2013 at Pheasant Run Resort in St. Charles, IL, featuring guests from MCRA and their lead attorneys in their lawsuit against State Farm. Also making an appearance will be Ray Gunder of Gunder’s Auto Center, who has successfully settled lawsuits with State Farm for underpayments of labor rates, paints and material.
Phoenix Body Shop Owner Accused of Staging Accidents to Collect Insurance Benefits Twin investigations led to the arrest of a Phoenix body shop owner on suspicion of identity theft and staging hitand-run accidents to collect insurance benefits. Hugo Alejandro Mejia-Regalado was charged on Sept. 16 with several felonies involving fraud schemes, insurance fraud, forgeries, theft and ag-
gravated identity theft. Agents with the Arizona Department of Insurance, assisted by the Phoenix Police Department and agents with the National Insurance Crime Bureau, executed search warrants on X Auto Body Shop at 1540 West Broadway Rd. in Phoenix and his home in northwest Phoenix.
Investigators said they discovered auto policies had been taken out on different vehicles in fraudulent names using of fake Mexico driver’s licenses. Within a couple weeks, the vehicles were involved in hit-and-run accidents, which investigators believe were staged. The false names were also used to
obtain Arizona motor vehicle titles just prior to the policies being taken out, said the Arizona Department of Insurance. Numerous other claims are still under investigation. Mejia-Regalado was booked into the Maricopa County Jail. He is also incarcerated on a federal immigration hold.
• Dedicated Wholesale Staff with Over 100 Years Experience • Large Inventory • Daily Local Deliveries
Parts 800-952-5307 Direct 916-405-4700 Fax 916-405-8045 Hours: Mon-Fri 7-7 • Sat 7-5
9640 W. Stockton Blvd. • Elk Grove, CA 95757 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 15
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, Great Lakes Associations 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.
Choice Autobody Repair Association Advocates for Both Consumers and Repairers with Chasidy Rae Sisk
Consumers play a vital role in the collision repair industry—and educated consumers are the best customers. Choice Autobody Repair Association (CARA) recognizes the importance of educated consumers as customers and believes that trade associations help repairers perform better for their customers. In fact, President Rick Finney explains CARA’s mission as “to educate the consumers of the collision industry, educate the consumers on their rights, so that if they are ever involved in an automobile accident, they (the consumer) can make an educated decision on who they want repairing their automobile. Give back the Rick Finney choice to the customer about who repairs their vehicle. Make the consumers the decision maker!”
CARA is a non-profit association dedicated to educating consumers, and they believe “it is their choice who repairs their vehicle. We’re not
anti-DRP or anti-insurance—we’re simply pro-consumer. We want to empower the motoring public with the confidence that it’s their opportunity, right and power to make you their choice.” CARA was established in late 2005 when Finney and several other shop owners in the Ohio Valley decided to form their own, consumerbased organization. “We felt that it was very important the consumers were aware of their rights after being involved in an automobile accident. We have had a very good response from our consumer awareness campaign.”
BY MINUTE MAN MFG. INC.
The Minute Man Forklift Wrecker is a mechanical auto-load wheel lift attachment. Simply slide this onto the forks of any forklift. Don’t lose time calling a wrecker
It’s like your own Forklift Wrecker!! when all you need to do is move a vehicle across the lot. Spring loaded “C-Hooks” pivot around the wheels of the parked vehicle. Lift the drive wheels and go! For More Info:
Call Us! 877-593-6959 6673 Pine Ridge Court Suite B • Jenison, MI 49428
www.forkliftwrecker.com 16 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Though CARA is based in OH, they are actually a national association with members throughout the US. They recently started a Southwestern Michigan chapter in Battle Creek, MI, plus they are planning to add many more chapters throughout the country in the near future. Currently, CARA has around 50 members, and they offer both associate and corporate memberships, each of which features various benefits, such as discounts on BASF management training, Collision Billing Services and a plethora of other purchasing discounts. CARA also makes documentation available to members, and they distribute informational fliers to consumers. One of CARA’S most important goals right now is to strengthen the association by attracting new members. Finney notes, “Whenever I talk to a shop owner, managers, etc., I hear the same issues, no matter where the person that I talk to is from. Ohio,
Michigan, Florida or California, the same issues. We need to attract new membership so that we can better address the issues that we are business owners face on a daily basis.” Other goals include continuing to address industry issues by working with other associations to share information and ideas, in addition to improving matters for their members and their customers. Finney “would like to show our membership that we need to regain control of our business as well as our customer base.” With so many lofty aspirations, it is no surprise that one of the biggest challenges CARA faces, like many other associations, is dealing with the cost of maintaining operations. Finney elaborates, “we have many issues that we need to address, and like anything else, it takes time and money. In my opinion, we as an industry need to start meeting more often with various agencies on a consistent basis and
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 17
bring to their attention what some of the issues are that our membership faces in their daily business practices. I would personally like to meet with the automobile manufacturers, paint manufacturers and departments of insurance.” In addition to growing their association with new members, CARA is also in the process of scheduling meetings to address some of the issues plaguing the industry, such as the issues related to purchasing paint materials. Addressing the ongoing controversy of PartsTrader, Finney asks, “what is the benefit for shop owners and their customers? PartsTrader is just another way for an outside entity to control your business. In my opinion, this is bad for our industry, period!” Finney believes that Right to Repair is a consumer issue, and “every consumer has the right to have their vehicle repaired wherever they choose. Having said that, as shop owners, we believe we should have access to the information so that we may be able to properly repair our consumer’s vehicle as well.” When asked about CARA’s stance on the PARTS Act, Finney
notes, “I have read in a consumer reports issue that consumer groups estimate the cost of collision repairs would raise by 1 billion a year, nationally, and consumers would foot that bill through their insurance premiums. It is my understanding that when the insurance industry calculates the cost to the consumer, they are calculated with the repairs installing new OEM parts. As far as the aftermarket parts issue, we keep hearing they are guaranteed to fit and have a lifetime warranty. I believe we would all like to hear how they must be crash tested and be subjected to the same testing as the OEM parts are subjected to.” Overall, CARA’s viewpoint on many industry issues reverts back to their mission statement and their belief that is should be the consumer’s choice as to who repairs their vehicle, as is inherent in the very name of the association.
CARA PO Box 392 Cadiz, OH 43907 740-942-3107 www.c-a-r-a.org
INNOVATIVE MANUFACTURING
parts vendors. Furthermore, the letter describes that the added influence that such a mandate would give State Farm over collision repair market pricing would have a negative impact on repair facilities’ operations and would take even more control away from automotive repair professionals. The letter explains that the most efficient method of ordering parts is in a free market system. Disrupting this process through a single mandated system will negatively affect the relationship repair professionals have developed with their customers, who have trusted them to service their vehicles. In its letter, ASA Ohio encourages State Farm to offer the online parts ordering system to its Select Service network on a voluntary basis. Should the electronic platform prove to be efficient and improve the automotive repair process, then ‘certainly’ the industry would adopt the program.
www.autobodynews.com CHECK IT OUT!
All products are made in the USA • Patented Technology Distributor Territories Available
www.ai-mfg.com
Panel Beater
™
Model 1000DX Battery Powered
Dent Puller
Hybrid Welding Station Squeeze Typee
Si l to t use: “Stick, “Sti k PPull, ll TTwist” i t” · Simple · Completely Portable · Built-in charging system
For Sales Sale and Service Call: 18 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
The Automotive Service Association of Ohio (ASA Ohio) has sent a letter to State Farm CEO Ed Rust Jr., expressing the association’s opposition against any insurer-mandated parts ordering system. In the letter, ASA Ohio President Joe Sanfillipo III explaines the association’s concerns surrounding State Farm’s new policy, which requires all collision repair shops participating in its Select Service program to electronically order parts through PartsTrader LLC. After a brief pilot program was tried in various locations throughout the country, it has been reported that State Farm intends to complete a nationwide rollout of the plan by the end of 2014. ASA Ohio carefully reviewed the information available on State Farm’s new parts procurement mandate and held open sessions to discuss the proposal. After reviewing the program and hearing concerns from ASA Ohio members, it was determined that the State Farm mandate has the potential to disrupt the relationship between automotive repair facilities and their
Get the D.C. Advantage
AMERICAN
Booth #11219
ASA Ohio Writes to State Farm’s CEO Ed Rust Jr. Opposing Insurer Mandated Parts
Resistance Spot Welder · Factory weld quality that runs on 110V power · Meets or exceeds OEM specifications
1.800.644.2730 730
1419 N. Thierman Road, Spokane Valley, WA 99212
Fax: 509.2 509.244.2721 244..2721
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 19
3M’s Hire our Heroes Campaign Has NASCAR’s Greg Biffle in the Driver’s Seat At the NASCAR Sprint Cup race this fall at Texas, NASCAR star Greg Biffle will be driving a No. 16 3M Ford Fusion with a strong force behind it – the power of the 3M Hire Our Heroes program. Biffle’s No. 16 3M Hire Our Heroes Ford Fusion will feature a paint scheme created by legendary car designer Chip Foose to honor the veterans recognized through the 3M Hire
(L-R) SSgt. Caruthers, U.S. Army, Greg Biffle, driver of the No. 15 3M Ford Fusion, Sgt. Grant, U.S. Army, Jack Roush, owner, Roush Fenway Racing, Lt. Gen. Tom Waskow, U.S. Air Force (ret.) and board member of USO-NC
Our Heroes program in 2013. Chip Foose will also be in attendance in Texas to cheer on Biffle. The car’s hood design reflects the
respect of the saluting soldier flanked by the stars and stripes, with the stripes down the side creating a fast, sleek look for the car. “It’s an honor to drive a car that recognizes the many contributions of our country’s military members while they were on active duty, and also support a program that enables them to learn new skills that translate to careers in the collision industry now that they are back home,” said Biffle. “The car looks regal and fast, and we’re going to need all of that speed at Texas if we’re going to claim that Sprint Cup trophy.” 3M recognizes the need for qualified technicians in the collision repair industry and has created an opportunity to help returning veterans and their families that have chosen to pursue careers in the collision repair industry. The 3M Hire Our Heroes campaign raised funds throughout the year to help offset the costs of tuition, books, tools and equipment for returning veterans and their families. 3M is partnering with the Collision Repair Education Foundation, the National Auto Body Council, and Op-
T
Glenn E. Thomas
If you're planning planni l ning ng to to invest inve in est the the time time e and nd know-how needed d to perform per p erfo form rm car ar repairs, make sure you also use se certified FIAT parts from Glenn lenn E. Thomas Fiat.
www.fiatusaofsignalhill.com
2102 E Spring St Signal Hill, CA 90755-2115
Parts: 562.595.9584 20 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
eration Comfort to help support rehabilitation and training and drive employment in the collision repair industry for America’s returning vet-
erans. The goal of the 3M Hire Our Heroes campaign, which kicks off in January 2013, is to donate up to $250,000 to benefit returning veterans and their families. The donation is based on the sales of select popular 3M products to qualified distributors. “The men and women who have served our country bring excellent training and skills, a commitment for doing the job correctly, a passion for intellectual achievement and a strong work ethic – all tremendous attributes for employment in today’s collision repair industry,” said Dale Ross, U.S. Marketing Operations Manager for 3M Automotive Aftermarket Division.
“Our industry needs qualified repair professionals with the necessary skills to keep pace with the evolving repair standards,” added Ross. “We are committed to helping repair facility owners and managers around the country get the capable, qualified repair professionals they need to perform at the high standards expected in today’s collision industry while honoring the tremendous service of our military men and women.” Nearly 60 grant winners, including military members and family members of veterans, were selected from applicants all across the United States. Each recipient received a financial grant to purchase tools and equipment needed to start their career in collision repair. 3M partnered with the Collision Repair Education Foundation to award and administer the grants for these deserving applicants. A number of the nation’s military veterans who work in auto body repair shops and their shop owners who nominated them are headed to the November NASCAR Sprint Cup Series race in Texas. The winning military veterans will have an opportunity to
experience the pre-race ceremonies from pit road and meet Roush Fenway Racing owner Jack Roush, as well as Biffle and Foose. Ultmately the 3M Hire Our Heroes campaign is supporting the U.S. Chamber of Commerce in raising awareness for hiring America’s heroes and helping drive employment in the collision repair industry for these deserving veterans and their families. 3M is proud to have the honor of being a national board member of the U.S. Chamber of Commerce Hiring Our Heroes program.
Bob Stevenson Joins Carbench
Car Bench America welcomes Bob Stevenson to the position of National Sales and Training. Stevenson will be responsible for sales and training of; Car Bench®, Inverter Spot Welders, Computerized Measuring, AluminumSteel-and MIG Brazing Machines, Self-Piercing Riveting (SPR), Aluminum Repair Tools and most all other equipment needed to rebuild today’s and forthcoming automotive body and chassis construction. Stevenson brings 20 + years of professional collision knowledge and experience in both paint and equipment.
Lincoln Electric Announces New Welding Devices/Lifters
Lincoln Electric announced Sept. 19 that it has added a line of magnetic angle fixturing devices and hand lifters to its Radius tool Welding Gear product group. The tools are designed to position steel for tack welding or other pre- or post-weld operations. They also are ideally suited for cutting and grinding applications. The magnetic fixtures are available in three different models intended for various material thickness or applications. The design makes them ideal for tight spaces.
Todd Chizmar on I-CAR Board
I-CAR announced the appointment of Todd Chizmar of Chrysler Group LLC to its international board of directors. The senior manager of technical training for Chrysler, Chizmar has been part of the automotive industry for nearly 20 years, the last 14 in technical and management roles at Chrysler. Said I-CAR chair William Brower, “His insights will be particularly helpful as I-CAR begins to significantly increase its repair-related technical support of the industry through its new Repairability Technical Support and Knowledge initiative.”
Quintela Sues 21st Century A Second Time for Short-Pays, Says it Makes ‘Cents out of Sense’ by Barrett Smith
Eddie Quintela, Owner and President of Collision Concepts of Delray Beach, FL has once again found it necessary to file a lawsuit against 21st Century Insurance on behalf of his customer who made a claim under their policy with the carrier. In 2012, on behalf of his company’s customers, Quintela filed three separate lawsuits against 21st Century of which the insurer agreed to settle before the trial dates. In addition to the disputed amounts, the insurer paid all of Eddie’s legal fees and costs. In spite of recent claims whereas the insurer has provided full payments, 21st Century has elected to once again deny payments for the repairer’s posted labor rates—processes and procedures as deemed to be reasonable and necessary to properly restore their customer’s vehicle. As Such, Quintela, on behalf of his customer, has found it necessary to once again file a lawsuit against the insurer on his customer’s behalf for such denials. “As in the past with this company”, states Eddie, “they pay us only after we
file suit but before they go before a judge and/or jury. Thereafter they pay in full for every needed material, process and rates for a while… then abruptly change back to their old ways. I’m puzzled; as I am confident their company share-holders would be as well, since the insurer has often paid 20 times Eddie Quintela the amounts in dispute, often paying upwards of $2,500.00 in legal fees and costs for a dispute that may be under $100.00!” “I don’t care” said Quintela; “it would be much easier for their policyholder if they just paid what they owe without the need for litigation, but when they don’t, I’ll be helping my customer to have their ‘day in court.’ As I see it, they [insurers] can either pay fairly now… or pay much more later! “It doesn’t make a lot of sense and even makes less ‘cents’ says Quintela. “It’s no wonder insurance rates continue to climb and it has absolutely nothing to do with the cost of proper repair as the insurers would have people believe!”
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 21
Northeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Rhode Island’s Don Cushing Wears Multiple Hats in Parts Wholesale and Auto Body Associations World wide, collision repair is a complex industry with many factors weighing heavily on its practice and progress, and the environment in New England is no different. There are constant legal battles, training issues and new technology to contend with, making it difficult for many people to keep up with and stay ahead of all these changes. The easiest way for many to keep up with current trends and information is supporting industry associations with your involvement on a local and national level. Don Cushing of Rhode Island is the Wholesale Manager at Bald Hill Dodge Chrysler and Jeep. With nearly 40 years of experience in and around the collision repair industry, Cushing is a valuable resource for information and trends locally and nationwide. Cushing exemplifies this involvement with several important associations: the Mopar Masters
Guild (MMG), the Auto Body Association of Connecticut (ABAC), and the Alliance of Automotive Service Providers of Massachusetts (AASP/MA). “I take my career with Bald Hill DCJ and my involvement with the Mopar Masters Guild, ABAC News and AASP/MA very seriously, and I’m determined to make a difference! I use all of these avenues to network with customers and build relationships because without our customers we are nothing.” After graduating ITT Technical Institute in 1974, Cushing began his career as a parts counterperson at a small dealership in Providence RI, and after a few months, he was recruited by a large dealership, under the direction of Ernie Wennerstrom, his current Parts Director at Bald Hill. After a few years working for various smaller dealerships during which he “yearned to get back to the
wholesale side of the business,” Cushing was hired as the Wholesale Representative at a Chrysler dealership where he was employed for 16 years. A change came in 1997 when Wennerstrom hired Cushing as Bald Hill’s Wholesale Manager and made him responsible for supplying over 1100 customers for their mechanical and collision departments. Cushing notes, “I have several parts representatives that work alongside me in my endeavors to gain customer base and formulate new and exciting ideas to increase the company revenue.” Cushing became involved with MMG in 1998 when Wennerstrom introduced him to the Executive Board who were interested in having Cushing create their newsletter. Cushing’s contributions yielded success. He says, “What started out as a simple updated pamphlet to members
has now turned into a multi-page magazine featuring members’ stories, vendor profiles, vendor ads and industry news! The plus side of working for the Mopar Masters Guild is that I get to listen and hear what the ‘Best of the Best’ have to offer at guild events.” The same year, Cushing began expanding Bald Hill’s customer territory into CT, and as Bald Hill acquired more customers in their neighboring state, Cushing met many collision repair shop owners who belonged to ABAC. Over time, he told them about his success with MMG’s newsletter, and in 2001, he helped them launch ABAC News, the official newsletter for ABAC. The newsletter, combined with the financial support of its advertisers, allowed ABAC to continue growing their educational and legislative programs. Through his roles with Bald Hill,
Great Service.
Great Prices. Riverside Nissan
Riverside Volkswagen Competitive Parts Pricing!
Direct Line:
951.509.2125 951.509.2123 Fax
8330 Indiana Ave., Riverside, CA 92504
FREE DELIVERY TO MOST OF THE INLAND EMPIRE
Mention this ad for a free gift!
951.509.6550 9
Riverside Hyundai Genuine OEM Parts!
Qualified Staff!
9951.509.6523 Fax 8330 Indiana Ave., Riverside, CA 92504
Hours: Mon-Fri. 7-7; Sat. 8-5 8330 Indiana Ave., Riverside, CA 92504
Riverside Honda We Use Collision Link!
D Direct Line:
GENUINE SERVICE & PARTS
Riverside Mazda Huge Inventory!
Direct Line:
Direct Line:
Direct Line:
951.509.6574
951.509.6577
951.509.6577
8330 Indiana Ave., Riverside, CA 92504
8330 Indiana Ave., Riverside, CA 92504
8330 Indiana Ave., Riverside, CA 92504
951.509.6575 Fax
951.509.6578 Fax
22 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
951.509.6578 Fax
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 23
MMG and ABAC, Cushing also became involved with AASP-MA, and in November 2012, he was appointed as their Statewide Association Division Director. His duties are to serve the Board of Directors by using his experience as a vendor to contribute input on the many concerns and issues facing the industry. Currently, ABAC’s most important topic is the Hartford Lawsuit. In regards to this endeavor, Cushing notes, “This class action lawsuit will certainly be a game changer in the way that insurance companies conduct themselves in the future, both on the local (Connecticut) level, northeast and nationwide. Increasing membership, the education of ABAC members and shop owners and legislation are some of the ongoing issues that the ABAC is focusing on. These endeavors will prove extremely valuable as they move forward.” He also explains that a few of the ways that ABAC works toward achieving their goals is through seminars, OEM presentations, guest speakers at events and advertising. Another important concern in CT right now is their Anti-Steering Bill,
and Cushing has “always supported the fact that everyone has a right to choose the repairer of their choice. There should be no influence from the insurance company on where a customer brings their vehicle.” One of MMG’s biggest events is their annual meeting at NADA, and their next meeting is scheduled for January 2014 in New Orleans, LA. According to Cushing, “This annual meeting draws the best Mopar parts managers (and the top 100) in the country. The motto for the MMG is ‘the exchange of information by likesize dealers in a non-competitive environment.’ This meeting combined with several Performance Group meetings throughout the year keeps members apprised of new and innovative ideas that are brought forth from these gatherings.” Recently, Cushing was elected as President of the Southern New England Mopar Service and Parts Master’s Guild. The group meets once a month, and their variety of guest speakers tends to draw a decent crowd. Cushing hopes that this role will also allow him to aid with necessary industry improvements; “I plan on using this position to help to
24 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
further educate attendees in their daily operations and hopefully share some ideas and best practices (as we do with the Mopar Masters Guild) with each other.” In regards to issues impacting the collision repair industry as a whole, Cushing notes, “As we move forward in the automotive industry, there are challenges that we all face. The Right to Repair Act is one. Working for a dealership and with our large customer base, we have always shared and assisted with information that our customers (collision and mechanical shops) need. I don’t believe that we should just sell parts to our accounts and not help them when they are in need. This is also one of the main reasons why I don’t support the Parts Act. We as a dealer of OEM parts have the resources to give our wholesale customers information on repairing their vehicles in the best and safest way possible according to our manufacturer specifications.” Though PartsTrader has not yet impacted the New England area, Cushing believes that these type of insurer-mandated parts programs are the biggest challenge facing the industry, and he fears that it will soon spread to
impact his company’s market area. “I can see alienation of customers, delayed deliveries, reduced profits and most of all, dissatisfied consumers. The only winners in this game are State Farm and PartsTrader.” What can be done about PartsTrader, insurer steering, and other issues plaguing the industry? Cushing advises, “I hope that all parties involved (mainly collision shop owners) work towards getting educated and ‘doing their homework’ before embracing this product. Let your thoughts be known. Be vocal. Get involved!”
CAPA Tops 60M Certified Parts
The Certified Automotive Parts Association (CAPA) announced that its parts volume has reached nearly 62 million CAPA certified parts. In the past five years, CAPA has increased its number of part applications by and average of 16% each year and added 17 new manufacturers to the program, bringing the total to 43 manufacturers. The number of CAPA parts sold in the market has also increased by 13% in that time frame. While metal parts have been the backbone of the CAPA program, plastic parts and lights are now the fastest growing part categories.
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 25
Association Meetings
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
Glendale/Foothill CAA Looks at Preproduction and Analysis with Thomas Franklin
The California Autobody Association Glendale-Foothill Chapter met Wednesday, September 18, 2013, at J & L Body Shop in Sun Valley, CA. Chapter president Linda Holcomb is still undergoing treatment for breast cancer and couldn’t attend. Chuck Bistagne, an owner of Bistagne Bros. Body Shop in Glendale, presided over the meeting. J & L Body Shop was founded in 1983 by John Panduro and his son Leon. Leon moved on to other things but John’s eldest daughter, Sandy, joined her father in the business after she graduated from Cal State, Northridge, with an emphasis on marketing and business administration. John’s younger son, Danny Panduro, also joined his father in the business for five years after graduating from U.C. Irvine with a degree in economics and business administration. Danny’s presentation at the meeting covered every aspect of repair planning—gen-
erally called “blueprinting”—that the shop now employs. After five years in the business, Danny was frustrated by the continual inefficiency and waste that he observed. So Danny studied damage analysis and lean procedures under instructor, Mike Anderson. He returned to the shop determined to use this knowledge to make the shop much
production. A thorough analysis of the charted steps revealed that most of the causes of the subsequent waste and inefficiency occurred during the preproduction phase. Danny said what emerged from this analysis was a new awareness of the importance of staging the job before sending it on to production. This came down to three factors: (1) Inter-
“My parts manager is easily worth $100 per hour” — Danny Panduro, J & L Body Shop
more efficient and more profitable. He also drew on a friend’s knowledge of charting to create a flow chart showing all of the steps used to take a vehicle from start to finish in the shop. The intent was to eliminate waste at every step possible. The chart is broken down into three phases: Pre-production, production, and post-
26 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
viewing and reviewing the damage and cause of the damage with the customer; (2) Damage analysis consisting of a 100% teardown to determine absolutely all parts needed; and (3) Parts procurement. Some said interviewing the customer was a waste of time but Danny said this often revealed important data, like the angle of the collision,
the effect of the road condition at the time, the number of people in the car, and more. He said this information could feed into the parts procurement step, for example indicating interior parts that otherwise might have been missed. He noted that a failure to order all the needed parts or to get the right parts was one of the greatest causes of poor cycle time and wasted effort. The damage analysis step also provided an opportunity to head off wasted motion and slow repair completion. Danny said never rely exclusively on the estimating platform. His shop subscribes to ALLDATA, Auto Parts Bridge, OEMOneStop.com and more. Karl Kerschenman from ALLDATA also did a brief presentation at the meeting that included the importance of having Technical Service Bulletins on-hand from vehicle manufacturers. Both Danny and Karl emphasized the upcoming changes to
vehicles and what this will mean for collision repair. The use of tools like ALLDATA during the damage analysis step prevents serious errors from occurring during the production phase. Danny shocked a few people at the meeting when he said his parts manager was easily worth $100-perhour. He said with as much as 40 percent of parts changing as new vehicles are modified, getting the right parts is the biggest key to eliminating duplicated effort. He indicated, for example, that there is a significant cost to placing a parts order. The cost of returning wrong parts and reordering the right ones not only adds time to the repair process, but also adds cost that it seems few shop owners recognize. Another step his shop uses that some have said unnecessarily adds time to the process, Danny said has frequently prevented incorrect parts ordering. He calls it “mirror match-
ing” —visually comparing the ordered part to the actual damaged part to see if it really is the right part. A discussion with the painter is included in the pre-production process. An effort is made to head off questions that may come up later: Is there unrelated or other damage that could affect blending? Have all steps been added to the work order? Have all judgement times been agreed upon? Were there rock chips that could result in an acne appearance later if not taken into account up front? Will the techs really need more time? Once again they try to avoid an over-reliance on the estimating platform. Taking that extra time to look at ASA's “Not included” charts and degweb.org for repair times can head off duplicating steps later. Danny says if the job is properly staged, the actual production time can be reduced to a fraction of what he often observed by the end of his first five years on the job.
Give us your opinion on matters affecting the industry.
write us! publisher@autobodynews.com
w
GET THE TRAINING ING THA THAT ATT HAS EQUIPPED TABL ABLLY REPAIR RE 50,000+ TECHSS TO PROFIT PROFITABLY TODA AY’S VEHICLES. TODAY’S Learn complex structure repair with comprehensive, hands-on training from Chief University. Chief instructors teach the latest design-based repair procedures on today’s vehicles. Fully cer tified and associated with the I-Car Training Alliance, there’s no better training system for accurate – and profitable – collision repair.
NNew ew ccou courses ouurrseess nnow ow aava available. vailabble le. CCall a l 8800-445-9262 al 00000 4445 45-9922662 oorr ssee eeee tth the he ccomp oom mpleete ttee ccourse oour urse llist ist aatt cchiefautomotive.com/courses/an. hhiieffau automo oom omot motivvee.ccom/co com oom/ m /coouur urssees //an. an . complete
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 27
California Shop Owner Gets 50-Years-to-Life For Murdering His Customer in 2011 An auto body shop owner who shot and killed a dissatisfied customer whose car never got fixed was sentenced to 50-years-to-life in prison for first-degree murder. Anthony Michael Vigil, now 49, first had to duck a tissue box thrown at him in the courtroom by the wife of the victim, Michael Paul Gonzales Jr., 26. “This man is going to suffer for the rest of his life, his pathetic life, and then for all of eternity, and that’s the only thing that brings me satisfaction,” Jami Bryan said before Sacramento Superior Court Judge Kevin J. McCormick sentenced Vigil. Vigil ran a business called Anthony’s Body Shop on Amalgam Way, just off Sunrise Boulevard in an industrial neighborhood near Gold River, CA. According to Vigil’s probation report, Gonzales brought his car into the shop several months before he was killed the night of Oct. 6, 2011. “The defendant stated the work would be completed in approximately one week,” the probation report said. When it still wasn’t done a week after that, Gonzales “called, texted, and emailed the defendant numerous
times, but never received a call or text back,” according to the probation report. The repair itself was a simple fender bender. Vigil later told Gonzales, “there were issues with his insurance company paying for the repairs,” the report said. Two weeks before the shooting, Gonzales met another customer who said he was having trouble with Vigil. Gonzales agreed to accompany the other man to Vigil’s shop to serve him with a small claims suit, the probation report said. Gonzales and the other man arrived at the shop around 10 p.m. the night of the shooting. When Vigil arrived later, the report said, he retrieved a shotgun from inside his shop, called 911 and told the dispatcher, “Hold on, I’m going to shoot these m——————s.” A California Highway Patrol dispatcher heard one gunshot before the line went dead. Paramedics pronounced Gonzales dead at the scene. Vigil waited for sheriff’s deputies to arrest him. He claimed the shooting was in self defense. Deputies arrived at Amalgam Way and Gold River Road shortly
after 10 p.m. and found a man in the driveway of an industrial business complex. The man had been shot at least once in the upper body. He Anthony Michael was pronounced Vigil dead at the scene. They also Vigil, standing outside the business holding a shotgun. Homicide detectives later arrested Vigil. Vigil has a past felony conviction for filing a false insurance report in 1997 that put him in jail for 10 days and on probation for five years, according to the probation report. The record also shows that he was convicted of a misdemeanor in 2004 for driving without a license. At the sentencing, Gonzales’ family described him as a devoted father of a son who was 3-years-old at the time of the fatal shooting. Citizens have a right to protect themselves if they feel their life is in danger, but trespassing doesn’t justify shooting someone and the victim in this case was not armed, Sacramento County Sheriff’s Deputy Jason Ramos said.
Automotive Automotive Paint Paint & Body Body Shop Shop Supplies Supplies
Tru-Way’s New Website, Data
Tru-Way Company has launched a new, data-driven website offering point-to-point vehicle measuring data for cars, trucks and SUVs from the 1950s to now. The website’s database contains more than 10,000 vehicles that can be searched by vehicle year and model, or by classification—domestic, imports or classics. Said Loretta Clos, manager at Tru-Way. “Tru-Way is unique in [its] offering of valuable historical data for older vehicle platforms that may be difficult to find... with the ability to purchase measuring data in a choice of format appropriate for them.”
Sheep Bolts Farm Truck, Seeks Refuge in Detroit Body Shop
A sheep escaped from a truck and was seen running down Eight Mile Road before she darted into Nortown Collision & Glass on the city's east side. The frantic creature ran around the shop, knocking things over, and tried to escape through a window made of safety glass. Employees eventually corralled the sheep, tied her up and gave her food and water.
www.autobodynews.com CHECK IT OUT! Original BMW Parts
NICOLOSI IMPORTS
bmwusa.com
SERVING THE SAN FRANCISCO BAY AREA SINCE 1975
San Carlos
PH (650) 413-0150 FAX (650) 413-0154
975 E. San Carlos, San Carlos, CA 94070
San Jose
PH (408) 573-7146 FAX (408) 573-7148
1758 Junction Ave., Suite F, San Jose, CA 95112
Bringing the best products to our customers since 1975. Including our REAL European Clear and Primer. Beta and Color Time Clears and Hardeners are directly imported from Italy. No Generics here! Contact us today for more information. Also, come visit our booth at SEMA in Las Vegas this year! Booth #11550 WWW.NICOLOSIDISTRIBUTING.COM 28 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
WHOLESALE PARTS Original BMW Parts & Accessories • Dedicated Wholesale Staff • Competitive Wholesale Prices • Exceptional Customer Service • Prompt & Dependable Delivery
Sonnen BMW 1599 East Francisco Blvd. San Rafael, CA 94901
415.482.2000 415.482.2024 Fax www.sonnenbmw.com
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 29
A Profile of the Evolving Collision Repair Marketplace by Vincent J. Romans & Mary Jane Kurowski, The Romans Group
Part 1 of our annual series examines the largest shop groups in the industry, their growing market share, and an analysis of the numbers. This yearâ&#x20AC;&#x2122;s report expands to include Canada. The impact of globalization is increasingly evident with the emergence and migration of new and hybrid auto physical damage models that exist in other countries throughout the world; some of which are finding their way to the United States. There has also been an increase in U.S. and foreign trans-border investments involving various segments within the collision repair, property and casualty auto insurance and the automotive aftermarket ecosystem. In light of this, we have expanded our annual analysis and profile of the U.S. collision repair marketplace to include Canada.
United States In 2012, U.S. merger and acquisi-
tion activity for multiple-location platform transactions took place in 10 states and involved 17 independent collision repair organizations with 128 locations as compared to 48 locations in 2011. These platform transactions shifted approximately $300 million in revenue during 2012 with average revenue transferred of $2.35 million per location.
Year to date through September 2013, we see slower M&A activity within the collision repair industry as reflected in the following chart. The 2013 YTD acquisition activity for multiple-location
30 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
platform transactions took place in 5 states and involved 9 independent collision repair organizations with 59 locations. These platform transactions have shifted approximately $158 million in revenue to date during 2013 with average revenue transferred of $2.2 million per location. See first chart. Through September 2013, ABRA entered two new markets, Washington and Indianapolis, while Caliber and Service Kingâ&#x20AC;&#x2122;s transactions were in existing markets. Boyd/Gerber entered the Michigan market with its Hansen Collision platform transaction. These MLOs also had a number of single-location acquisitions in 2012 and 2013 along with Brownfield and Greenfield locations which built out their respective markets. The following map indicates which states had the most independent multiple-location platform merger and acquisition activity from 2010 through 2013.
Despite the slowdown in merger and acquisition activity thus far in 2013, multiple-location operators, and the collision repair industry in general, continue to move through what we have identified as Contraction, Consolidation and Convergence. We believe that Constructive Transformation, the inevitable and necessary heavy lifting associated with the integration of different organizations and their business platforms, is one of the main reasons consolidation momentum has tapered down. Other factors, such as higher valuations and more complex transactions requiring longer periods for due diligence, also contribute to this temporary respite. We continue to see three main active expansion strategies shaping the collision repair industry. One strategy is being driven by independent and dealership regional MLOs which are focusing their expansion within existing and/or contiguous markets. Another strategy of national independent consolidaSee Evolving Marketplace, Page 42
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 31
Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Do Ad Specialties (“Swag”) Really Make an Impression? with Ed Attanasio
As I start to pack for my annual pilgrimage to SEMA, I’m thinking about all those overloaded shopping bags carried through the exhibit halls bulging with what we know in the business as the advertising specialty. Anything emblazoned with your company’s name: pens, scratch pads, key chains, calendars, baseball caps, mugs, bags, foam footballs, clocks, and bottle openers—is called an ad specialty. Although some simply know them as “swag” or “chotchke,” other people call them “things that sit around my office.” I’m guilty of enabling my hoarding tendencies this way. We’re so used to seeing them that it may be a surprise to learn that the automotive industry is by far the largest user of these promotional items. Some people (including me) delight in collecting pens and baseball caps while others argue that most ad specialties end up in the roundfile and
then the landfill. What will future civilzations think about us when in the year of 2220, archeologists dig up tons of coffee mugs and refrigerator magnets that say “Bill’s Body Shop” or “Tom’s Auto Collision”? Will they laugh and point out ad specialties as a token of our society’s eventual demise?
they a good use of my advertising money?’ Have you ever encountered a customer who actually said, “I saw your name on a desk pad and that’s why I brought my car here.” The Advertising Specialty Institute (ASI) is the largest media, marketing and education organization serving the $19.4 billion promotional
“Nationwide the automotive industry buys more promotional items than all other consumer product companies combined” — Advertising Specialty Institute
Many companies use them as an effective form of branding and advertising, particulaly for businesses that have infrequent contact with their customers, like body shops. If you’re a body shop and spending a significant amount of money on ad specialties, you should always ask yourself ‘are
products industry, with a network of over 25,000 distributors and suppliers throughout North America. ASI’s CEO is Tim Andrews and I had a chance to talk to him recently about the power of the ad specialty and how automotive repair businesses can benefit from using them.
Maita SUBARU
“For impressions, ad specialties are by far the most cost-effective form of advertising out there,” Andrews explained. “Every time someone sees your name on a pen or a key chain, that’s called an impression. During lean economic times, ad specialties are an ideal solution for smaller companies that need to get their names out there, but they can’t afford other forms of conventional advertising. Ad specialties are remembered and kept and many of them are used by people for many years, based on our research.” Getting a high-quality ad specialty and personalizing it for your current customers is also a great way to further strengthen your position with your customer base, Andrews says. “For your return customers or top influencers in your community, personalization is a unique way to really connect even more with your mostprized contacts. If someone has a t-
Announces: A
• Delivery to Greater Sacramento and Reno/Tahoe Areas • Highly experienced parts personnel • No order too big or too small • Largest late model inventory in the area • Absolute best prices
2 2013 Fourth Quarter Training Schedule T Classes consist of multiple courses designed to increase shop productivity and include sessions focusing on painter certification, AWX Performance Plus™ waterborne system, color adjustment and blending, commercial fleet refinishing, accurate estimating, workshop efficiency and much more. Training Center
www.maitasubaru.com
Call us Today!
877.484.4870 916.484.4876 Fax: 916.484.4878 Hours: M-F 7:30 am - 5:30 pm 2410 Auburn Blvd. - Sacramento, CA 95821 32 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Date
Training Course Description
Number of Days
Reno
11/12/13
Color Adjustment & Blending
3
Reno
11/12/13
Estimating Solutions for Profit
1
Reno
11/13/13
Achieving Service Excellence
1
Reno
11/19/13
AWX Performance Plus™ Waterborne Painter Certification
3
Fleet CFR
3
Reno
12/03/13
For more information about Sherwin-Williams Automotive Finishes training or other products, visit the training section at: http://www.sherwin-automotive.com/Training/TrainingCourseSchedule.aspx or call 1-800-SWULTRA (1-800-798-5872).
shirt or a pen with their own name on it, they will logically keep it for a much longer period of time. It creates additional value and the impressions derived from a personalized ad specialty can be ten times higher, in some cases.” Also, instead of buying 2,000 cheap plastic pens, for example, maybe purchase a smaller number of higher-quality pens, in order to keep them in the hands of your customers longer. “The more they use that pen, your brand name and logo will remain further in the top of their minds, which means your efforts will grow exponentially,” Andrews said. “An inexpensive pen or key chain might get discarded after limited use, but if the
end-user values it and sees it as being special, it will remain on their desk and in their possession for a much longer period of time. It just makes sense.” The products that leave the most positive impressions and those that recipients keep longer are: outerwear, shirts, recognition items (awards, plaques), caps/headwear, flash drives, health and safety products, desk/office accessories, and bags, according to Andrews. ASI provided several statistics that are worth noting when making decisions on promotional products. ● Nearly nine in ten (87%) recipients of promotional merchandise can identify the advertiser on the item. ● Over one-half (52%) of the time, ad
specialties leave a more favorable impression of the advertiser. ● Promotional products deliver the same or a better ROI than other forms of media. ● 81% of product recipients indicated that an item’s usefulness is the primary reason to keep it. ● There are nearly 8,000 different automotive-related promotional products currently in ASI’s database. ● The automotive industry buys more promotional items than all of other consumer product companies combined nationwide. ● Study results show that most people own approximately 10 ad specialty items on an on-going basis and hold on to them for an average of six months, a far longer time period than
any other traditional form of advertising. What’s your ultimate goal in giving a pen, hat or key chain away? Who’s your target audience? Are you trying to reach out to prospective customers? Or, are you staying in touch with your VIP clients, those who seem to get into more accidents or have higher-end vehicles? Are you doing a campaign targeting your vendors, insurance agents, local community leaders or organizations? It all comes down to finding your target market and continually branding. Many automotive-related businesses use ad specialties as one of their main forms of marketing. For example, glass replacement companies often distribute scratch pads, desk calendars, and other items to auto body shops. Since most body shops frequently work with several glass replacement companies, it’s a good idea for them to keep their name and phone number in front of them. Car dealers often provide license plate brackets to their customers with the dealer’s name and logo—nine times out of ten the customer never thinks about it again, but the dealership is being advertised to everyone who sees that new car and thinks about buying that model for themselves. So, as I run around at SEMA, loading up on pens, hats, key chains, scratch pads and any else I can get my hands on, I will be thinking about the power of the ad specialty. Ad specialties are a useful form of branding and that’s why they’ll continue to be an integral part of the marketing and advertising efforts of almost every body shop in this country today. Recently, for example, a company that manufactures and sells these items sent me a nice little key chain flashlight with my name and company printed on it. It’s something I might actually use, if I can find room on my already overloaded key chain.
The source for timely information that every body shop needs!
CALL 800-699-8251 Start Your FREE Mail Subscription. www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 33
Associations Assembling with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
Taking it to the Capitol—WMABA Fights Battles for Shops in DC and Nationwide In existence since 1968, the Washington Metropolitan Auto Body Association (WMABA) has spent the past 45 years supporting member shops and acting as their members’ voice for business and legislative concerns. The organization was founded by DC-area shops who sought to work together to combat some of the common issues facing the collision repair industry. Since its inception, WMABA’s efforts have been focused on addressing shop issues and continuing education on a local and national level, including aspects regarding legislative issues. Because they emphasize the importance of addressing issues on a larger scale, many WMABA members have also played a key role in establishing larger national associations, including the Society of Collision Repair Specialists (SCRS) of which the association is an affiliate. WMABA’s service area encompasses MD, VA & Washington DC, and as the
association continued to grow, they absorbed the Virginia Auto Body Association. In 2007, Jordan Hendler became the Executive Director of WMABA. Through her previous work with SCRS, NABC and CIC, Hendler has gained insight into collision repair markets and trends across the United States, and in her current role, she Jordan Hendler, participates in nafile photo tional industry forums, such as SCRS and CIC, to address issues and try to affect positive change for collision repairers. On a day-to-day basis, WMABA focuses on maintaining active involvement with current legislative initiatives in VA and MD, meeting with legislators and shop representatives, as well as participating in national
groups. Additionally, WMABA conducts an annual labor rate survey for the region in order to report their findings to individual shop owners, local government and the industry at-large. Hendler also assists with addressing issues at a shop level, including documentation, OEM service providers and other problems that impact shops during their daily operations. Hendler notes that the main challenge WMABA faces is keeping shops informed and involved with issues in the industry, including education, yet she notes, “I don’t feel that we’re alone in that; most associations deal with the same problem.” One way they strive to combat these types of issues is through the publication of their monthly magazine Hammer & Dolly, as well as their quarterly membership newsletter which serves to disseminate relevant information and generate shop involvement within WMABA’s service
area. WMABA serves their members by offering representation in legislative matters, both locally and nationally, in addition to working with individual shops on their issues, such as in the instance of short-pay cases. The association also strives to keep their members educated and informed through their magazine and newsletter, as well as by holding educational meetings and seminars. They act as a resource for vendor and insurer contacts, but most importantly, WMABA is at their members’ disposal when they face any type of problem or have general questions. Still, despite the many services WMABA provides to their members, Hendler claims that the biggest benefit members get from involvement with the association is “our peer network which gives them the opportunity to compare the issues they face See WMABA Fights Battles, Page 40
• Exceptional Service • Full-time Experienced Wholesale Specialists • Ready to Serve You • Genuine OEM Tires Hours:
• Extensive Inventory • Free Delivery • Dedicated Wholesale Parts Staff • Genuine OEM Tires Hours:
Hours:
• Open Saturdays • Serving all of San Gabriel Valley for over 30 Years • 5 Delivery Trucks • Genuine OEM Tires Hours:
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
Mon.-Fri. 7am - 6pm; Sat. 8am - 4pm
• Wide Delivery Area • Competitive Pricing • Ready to Serve You • Genuine OEM Tires
Parts Dept.:
Parts Dept.:
Parts Dept.:
Parts Dept.:
626-249-0032
800-245-8509
626-359-8291
800-320-9065
Fax: 626-932-5660
Fax: 626-932-5660
Fax: 626-932-5660
Fax: 626-932-5660
www.sierraauto.com
www.sierraauto.com
www.sierraauto.com
www.sierraauto.com
parts@sierracars.com
parts@sierracars.com
parts@sierracars.com
parts@sierracars.com
CHEVROLET 1450 South Shamrock Ave. Monrovia, California 91016
MAZDA 735 East Central Ave. Monrovia, California 91016
34 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
SUBARU 1450 South Shamrock Ave. Monrovia, California 91016
HONDA 1450 South Shamrock Ave. Monrovia, California 91016
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 35
36 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Subscribers:
The Honda and Acura Dealers Listed Here are HO N DA CA LI FO R N I A
AutoNation Honda Roseville R os ev ille
800-262-3201 916-783-5628 Dept. Hours: M-F 7:30-6; Sat 8-5:30 autonationhondaparts@hotmail.com
Avery Greene Honda Vall ejo
800-834-8886 707-551-3202 Dept. Hours: M-F 7:30-6; Sat 7:30-5 parts@averygreenemotors.com
Barber Honda B ake r sf i el d
CAL IFO RNIA
Ocean Honda
C o ro n a
S an ta Cr uz
Tu cs on
800-557-3652 951-734-9045
831-464-1800
800-461-6744 520-202-5770
Dept. Hours: M-Sat 7-5 terry.love@pscauto.com
Honda of Hollywood H o l l y wo o d
First Honda S im i Val le y
888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com
Galpin Honda Mi ssi on Hill s
800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 blemen@galpin.com
No r th Ho ll ywoo d
800-508-3894 818-301-3511
AutoNation Honda Chan d ler
Dept. Hours: M-F 7-6; Sat 8-5
Dept. Hours: M-F 7:30-6; Sat 8-5 parts@hondaofhollywood.com
San Francisco Honda
Dept. Hours: M-F 7-5:30; Sat 7-5 wholesaleparts@santanhonda.com
Honda of Oakland
415-913-5125
O a k l a nd
Dept. Hours: M-F 8-5:30 partsws@sfhonda.com
510-547-8047
Kolbe Honda
Dept. Hours: M-F 8-5; Sat 8-5 parts@clawsonhonda.com
Robertson Honda
Dept. Hours: M-F 7-6; Sat 8-4 robertevenson@chapmantucson.com
800-765-1353 480-285-2804
Dept. Hours: M-F 7-8; Sat 7-6
F res n o
Dept. Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz.com
Chapman Honda
800-371-3719 323-466-3205
661-396-4235
559-435-5000
AR IZONA
Honda Cars of Corona
Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com
Clawson Honda
C ALIF OR N IA
R e se d a
800-735-1424 818-609-7441 Dept. Hours: M-F 7:30-6; Sat 7:30-5 carparts@kolbehonda.com
Larry Hopkins Honda S u nn yva le
408-720-0221 408-736-2608 Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com
Metro Honda M o nt cl a ir
800-446-5697 909-625-8960 Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com
S an F ra nc i sco
Selma Honda S el ma
Tempe Honda Tem pe
800-571-7019 480-421-4860 Dept. Hours: M-Sat 7-6 Jdodge@penskeautomotive.com
800-717-3562 559-891-5111 Dept. Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall.com
University Honda Davis
800-585-8648 530-758-8770 Dept. Hours: M-Sat 8-6; Sun 8-5 dfortier@uhdavis.com N EVAD A
Findlay Honda Henderson He nde r s on
got repair info?
888-234-4498 702-568-3531 Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com
AC U RA CA LI FO R N I A
CAL IFO RNIA
C ALIF OR N IA
AR IZONA
Acura of Fremont
Cerritos Acura
Santa Monica Acura
Frem o n t
C e rr i t o s
S an ta Mo n ic a
Peoria
888-435-0504 510-431-2560
855-895-2678 562-207-0554
866-332-4950 310-449-0064
866-347-4507 623-792-2559
Dept. Hours: M-Sat 8-6 mike.ohare@acuraoffremont.com
Dept. Hours: M-F 7-7; Sat 7-6 srandall@browningautogroup.com
Dept. Hours: M-F 7-7; Sat 8-6 Scott.p@santamonicaacura.com
Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com
Acura of Pleasanton
Metro Acura
P lea s an t on
M o nt cl a ir
888-985-6342 925-251-7126
800-446-5697 909-625-8960
Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com
Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com
Acura of Sunnyvale
Power Acura South Bay
Su n n y vale
To rra nc e
408-328-6341
310-784-8647
Acura Authorized Service Center Dept. Hours: M-F 8-5:30; Sat 8-5 Mike.Oâ&#x20AC;&#x2122;Hare@sunnyvaleacura.com
Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com
N EVAD A
Acura of Peoria
Acura of Tempe
Findlay Acura He nde r s on
877-770-5873 702-982-4160 Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com
Tem pe
866-455-6601 480-344-6703 Dept. Hours: M-F 7-6; Sat 8-5 acuraparts@acuraoftempe.com
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 37
Northeast Associations with Chasidy Rae Sisk
Chasidy Rae Sisk is a freelance technical writer from Wilmington, Delaware, who writes on a variety of fields and subjects, and grew up in a family of NASCAR fans. She can be contacted at crsisk@chasidyraesisk.com.
ABAC’s Decade-Long Battle Against the Hartford Insurance Co. For nearly ten years, the Auto Body Association of Connecticut (ABAC) has been engaged in a legal battle with the Hartford Fire Insurance Company (the Hartford), and though a judge and jury awarded the victory to ABAC, the fight is not yet over as the Hartford has appealed the ruling to the David Slossberg state’s Supreme Court. Still, Tony Ferraiolo, President of ABAC, remains optimistic, noting “this is one of the biggest things happening in the industry right now, and it will rock the country if—no, when—we win next year.” ABAC filed a class-action lawsuit against the Hartford in 2003, claiming the insurer was manipulating labor rates across the state and using steering practices to direct customers to shops on their direct repair program
(DRP). Besides getting a discounted rate from their network of DRPs, the insurer also had their appraisers use
the same uniform labor rate in their estimates across the state, thus pressuring independent shops to lower their rates. David Slossberg, lead attorney for ABAC in this lawsuit, noted that, as a result of this conduct across the industry, profit margins for auto body shops have decreased from 6% to less than 2%, which disregards the shops’ expenses related to training, equipment and environmental regulations. In November 2009, a Superior Court jury in Stamford ruled in favor of ABAC, awarding $14.7 million in compensatory damages to the shops
38 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
represented in the lawsuit because they found that the Hartford engaged in unfair trade practices which resulted in a loss to CT body shops. Earlier this year, in May, Superior Court Judge Alfred J. Jennings granted injunctive relief which mandated that the Hartford “refrain from interfering with the independent judgment of motor vehicle physical damage appraisers in its employ in the performance of their duties… including the determination of the hourly rate to be applied in calculating the labor component of costs to repair.” The injunctive relief was granted after the jury found the Hartford to be engaging in unfair business practices through the use of in-house appraisers and their network of DRP shops to artificially suppress labor rates in CT. In
addition to being prohibited from interfering in their appraisers’ judgments, the Hartford will also be required to submit a Quarterly Compliance Report to the court which must include: (i) the range and average of hourly rates used by each Hartford appraiser, (ii) hourly rate(s) charged by all shops under DRP contract with the Hartford, (iii) any changes the Hartford makes to esti-
mates or appraisals as a result of reinspection or supervisory reviews, and (iv) a summary of any adverse or disciplinary action against any of the Hartford’s CT-licensed appraisers. Judge Jennings ruled in favor of ABAC and the shops they represent yet
again in June 2013, awarding $20 million in punitive damages intended to punish the Hartford for manipulating the labor rate and to deter other insurance companies from engaging in the same unlawful conduct; the award is believed to be the largest unfair trade practices award ever issued in the state of CT. Jennings explained the award was meant to send a message to the Hartford and other insurers that any violations of fair trade rules will not be tolerated. After the Hartford appealed the court’s decision, a stay was placed on the injunctive relief, but Ferraiolo notes that during the two weeks it was in effect, it seems to have caused other insurers to begin negotiating higher labor rates and concessions. He emphasized that appraisers should be negotiating rates on a shop-by-shop basis, establishing labor rates based on the individual shop’s business model, the quality of their repairs and the model of the car being repaired. “What we have sought to achieve in this lawsuit is simply for the Hartford and its appraisers to follow the law,” said Ferraiolo. “We already won the case, but now we’re dealing with the political and bureaucratic nonsense. Yet, there is merit in the fact that we’ve engaged in a ten-year battle, and
the jury decided in our favor.” ABAC also acts as a “watchdog” on their members’ behalves, meeting with legislators to explain how the Hartford’s actions negatively impact their constituents. Ferraiolo says, “we’ve had a lot of success in showing the negative impact on consumers, but the insurers consistently try to muddy the waters. Still, this is industry-changing stuff! As long as it doesn’t become politically corrupt, we will win next year.” Like Ferraiolo, Slossberg is confident that after fighting this battle for more than a decade, the ABAC will ultimately prevail. “This case should give hope to all those individuals and small businesses who think they can’t push back against the big insurance companies. The ABAC and some 1000 small businesses in the State of Connecticut won a hard fought and well-earned jury verdict which was followed by carefully written and well-reasoned decisions by the trial judge regarding injunctive and punitive damages.” While Ferraiolo is definitely pleased with the court’s ruling, he is less confident that the Hartford will comply with the judge’s mandates, noting that the insurers just don’t seem to be getting the message,
despite ABAC’s victories in court. Ferraiolo believes that DRP shops are part of the problem because they are doing the publicity for the insurers, claiming that it’s necessary to be on DRPs in order to stay in business. He notes, “they’ve helped build this big monster, but now they can’t destroy it.” A & R Body Specialty, Ferraiolo’s shop, is a medium-sized, independent shop which represents that market that’s in trouble as most mid-sized shops participate in DRPs in order to stay in operation; however, he insists that while solutions are few and far between, and shops like his are at a competitive disadvantage due to the unfair trade practices of the Hartford and other insurers, independent mid-sized shops are trying to compete in the market by providing education to both their employees and the consumer and by offering excellent customer service. Because the case is still in the appeals process, none of the shops have received any of the awarded funds yet. If the Hartford’s appeal is rejected, each member of the class-action lawsuit will have to apply to receive their share of the money, and the trial court will establish a process to distribute the funds.
The class originally began with 1000 CT body shops, but it has since grown to include an estimated 1500 shops affected by the Hartford’s practices. The sheer number of complainants “shows the breadth and extent of the damage caused by the defendant’s misconduct,” according to Judge Jennings. In establishing the amount of punitive damages, Jennings also considered the net worth of the Hartford, somewhere in the $12 to $13 billion range, in order to ensure the award would be a meaningful deterrent to the insurer. Jennings has not yet determined the amount that will be awarded to ABAC’s attorneys who have not received a cent of compensation from this ten-year long lawsuit. Ferraiolo praises the attorneys’ dedication to the cause; “our attorneys are aggressive and are working very hard to win this case. They have just as much, if not more, invested since they don’t get paid unless we win!” In fact, these attorneys have proven their support of local auto body shops yet again by representing ABAC in a second, similar lawsuit which was filed four years ago against Progressive for steering and labor rate suppression. This case is being pursued in Federal Court, and ABAC will be seeking class
www.dchtemecula.com • Genuine Kia OEM Parts • Fast & Free Delivery
• Efficient Service on All Orders • Parts Specialists On Call
951.491.2538
Fax: 951.491.2589
Hours: Mon-Fri 7:00am-6:00pm / Sat 8:00am-4:00pm 26799 Ynez Road • Temecula, CA 92591 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 39
certification later this year. As Ferraiolo stated repeatedly, these lawsuits could change the collision repair industry if the association is victorious. Industry leaders from other states have already begun contacting ABAC to express interest and seek advice on how to pursue these types of battles. The Hartford was contacted for opposing point of view or comments, but none have been received at press time.
Auto Body Association of Connecticut (ABAC) 104 Cheshire Rd Prospect, CT 06712 203-767-5731 www.abaconn.com info@abaconn.com
Continued from Page 34
WMABA Fights Battles
with what other shops are going through. It lets them see that others are experiencing the same problems, and we’re all in this together.” Regarding the challenges facing the industry as a whole, Hendler believes “shop awareness is the biggest hurdle. If all shops were aware of the proper repair techniques, tooling and education, these issues wouldn’t be as hard as they are, but many repairers don’t know how to gain access to proper information. Those who don’t know are affecting those who do. It’s not necessarily on purpose, but it is ignorance nonetheless.”
Auto TECH Expo to Debut in Chicago Next April Auto TECH expo, a refocused automotive aftermarket trade show, makes its debut April 3–5 at the Hyatt Regency O’Hare in Chicago. Formerly known as Showpower, Auto TECH expo will include a wider variety of training seminars for technicians dealing with in-depth diagnostics and drivability issues. Industry-requested seminars addressing transmissions, brakes, steering
and suspension, emission controls and shop management will be presented by nationally known automotive instructors, according to Michelle Dickemann, president of M D Publications Inc. This show is a perfect fit for shops that once offered specialized services but are now expanding to a wider range of offerings to meet the demands of motorists.
40 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Hendler also notes that the advancement of vehicle technology, tooling and regulations is another challenge as it raises shops’ costs at the same time that insurers are becoming stricter in their payment of operations and services, especially for independent shops that do not participate in their direct repair programs. Thus, the cost of operation is steadily increasing while the ability to earn a profit decreases. Though PartsTrader has been a ever present news item for over a year now, WMABA has not taken a stance against their business model specifically but instead is against any insurer-mandated program that dictates which vendors can be used. “It is an interference in the collision repair business,” says Hendler. In fact, the association is currently working on legislation and an agenda to address the process of mandating parts or supplies. Why is WMABA’s legislative work so important? Hender explains, “it is one of the few options left to us to address these problems since the insurers are not willing to stop their pursuit.” Legislation also benefits the consumer because it
“helps keep the free market free… if insurers become more involved in all aspects of collision repair, they reduce the shops’ ability to operate properly and give the customer the widest capacity of options for a safe repair.” Hendler admits that there are challenges inherent in the legislative process, noting “it’s arduous at best.” In order to get new legislation to pass, WMABA must meet with legislators to convince them that the matter is in the best interest of their constituents, the consumers, and then, the legislators must vote. Hendler notes that the process is long; “we have to go through all of the committees and hearings to get the vote without the opposition tearing it down.” Luckily for WMABA members, Hendler is not easily discouraged and will continue to fight on their behalf to make the collision industry better for everyone involved. Washington Metropolitan Auto Body Association (WMABA) 804.789.9649 http://wmaba.com/ info@wmaba.com
WHEN IT ABSOLUTELY POSITIVELY MUST BE DELIVERED ON TIME. Call
OF DOWNTOWN LA
TEL: 213-748-4624 FAX: 213-222-1278 Service Hours: Mon - Fri 7:30am - 6:30pm / Sat 8am - 4pm
1900 S. Figueroa St. • Los Angeles, CA 90007
www.porschedowntownla.com
• Best Delivery Service (Twice Daily) to LA County • 8,000 Numbers in Stock • 750,000 Genuine VW Parts Inventory
VOLKSWAGEN l l Ca OF DOWNTOWN L.A. TEL: 213-747-7246 • 213-747-7247 FAX: 213-222-1272 Service Hours: Mon - Fri 7:30am - 6:30pm / Sat 8am - 4pm Parts Manager: Carlos L.
1900 S. Figueroa St. • Los Angeles, CA 90007
www.vwdowntownla.com
Audi Genuine Parts For a fit that will impress. Best Delivery Service (Twice Daily) to LA County $750,000 in Audi Genuine Parts Inventory $8,000+ Parts in Stock
Audi of Downtown LA 1900 S. Figueroa St., Los Angeles, CA 90007 Tel: (213) 747-7248 Fax: (213) 222-1261 Parts Manager: Fausto G. www.audiofdowntownla.com Service Hours: M–F, 7:30 – 6:30; Sat 8 - 4 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 41
Continued from Page 30
Evolving Marketplace
tors, such as Boyd/Gerber, ABRA and Caliber, is the continued focus of activity primarily within existing markets through clustering and leap-frogging into new regions and markets using platform acquisitions to gain entry.
Unlike these larger, multi-region MLO companies, there have been few regional MLO consolidators venturing into new platform markets. The northeast markets continue to be absent of any significant MSO market entry. The third strategy is aggressive expansion by franchise con-
solidator MLOs such as CARSTAR and ABRA. ABRA is onboarding both dealer and independent franchisees in second- and third-tier markets. CARSTAR is targeting growth with independent repairers in specific targeted markets with some market penetration in the northeast. Fix continues its twopronged strategy of building out its franchise model in target markets while maintaining and growing its banner network across a broader U.S. marketplace. These acquisitions, Brownfield and Greenfield, and franchise conversions strategies will continue to influence the direction of consolidation and right-sizing within the collision repair industry and will result in increased MLO market share in the U.S. The $20+ million U.S. collision repair segment continues to grow their market share and brand relatively faster than other segments of the collision repair industry. This growth is being driven by an increasing number of variables.
● Private equity’s continued interest in the collision repair industry ► U.S. MSO organizations with private equity financing and support include the following (see chart):
● MLO access to various private and strategic partner capital for business, market growth, expansion and infrastructure development increasing consolidation through single- and multiple-location acquisitions ● The segment’s local and multimarket footprint which offers greater consumer and insurance company choice ● Multi-level selling and marketing for insurer choice brand preference with access to insurance company direct repair claims ● Ongoing operational improvement, resulting in increased vehicle repair
quality, higher daily touch time, increased throughput, lower cycle time, and shorter length of rental ● Business service differentiation, market segmentation and brand recognition/reputation ● MLO market leadership through sustainable, toptier, competitive performance results ● Expanded business hours of operation including multiple daily shifts, weekends and hybrid work shifts ● Insurance DRP focus that drives single point of contact, operational conformity, predictable and sustained repair quality, and competitively ranked repairer performance outcomes ● An integrated, multi-level sales and marketing approach to capturing consumer, insurance, rental, and fleet ● Expansion of new and hybrid network platforms involving MLOs
United States $20+ Million MLO and the $10 to $20 Million Segments In the past, we have reviewed and profiled the $20+ million MLO segSee Evolving Marketplace, Page 48
866.381.7223
Fax: 408.356.8245
www.lglcparts.com e-mail: parts@losgatosluxcars.com 620 Blossom Hill Rd., Los Gatos, CA 95032
42 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Business Hours: Monday - Friday, 8:00 am to 5:30 pm
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 43
I-CAR Tech
This article first appeared in the I-CAR Advantage Online, which is published and distributed free of charge. I-CAR, the Inter-Industry Conference on Auto Collision Repair, is a not-for-profit international training organization that researches and develops quality technical education programs related to collision repair. To learn more about I-CAR, and to subscribe to the free publication, visit http://www.i-car.com.
New Honda “Body Repair News” Publication
A new free publication from Honda features body repair information on their new models. The first two edi-
tions of Body Repair News are now available on Honda’s Service Express website. The premier publication in
Figure 1 - This colored illustration shows the materials and strengths of steel used on the 2014 Acura MDX. (Photo courtesy of American Honda Motor Co, Inc.)
44 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Figure 1), to new structure applications, to structural foam locations, and repair guidelines. Body Repair News summarizes new body and vehicle technology that may affect collision and other body repairs. It is not intended to replace the detailed information contained in the body repair and service manuals. Rather, it simply helps collision repair industry personnel understand why using the vehicle maker service information is so important to complete and safe repairs. The new Acura MDX has a front door ring reinforcement made of 1,500 MPa steel. During replacement, where spot welding does not reach, Honda specifies MIG brazing and no GMA (MIG) Figure 2 - This photo shows tensile strength test results plug welds. In the publicaof welding 1,500 MPa steel to 590 MPa steel. The 1,500 tion, the restrictions for MPa steel fractured first, because the welding heat rewelding on the 1,500 MPa duced its strength far below 590 MPa. (Photo courtesy of steel are not only spelled American Honda Motor Co, Inc.)
the series focuses on new model body repair information for the 2014 Acura MDX and the second edition covers the 2013 Honda Accord. Subsequent Body Repair News editions will be created, or updated, for each new model and any minor model change where significant body design changes are made. Body Repair News is more than just a token few pages of new model highlights. The premier issue is 10 pages of technical information collision repair professionals need to know, everything from colored diagrams showing strengths of steel (see
out in detail, there are photos of what can go wrong if welds are done on this steel (see Figure 2). Several other welding precautions and guidelines are included. Also included are details on the passive restraint system on the vehicle, and electrical repair information, which shows how Honda wants repairs done on wiring pigtails and connectors. Body Repair News is available on the opening page of the Service Express website. Click on “Industry Position Statements & Body Repair News”, and then scroll down to Body Repair News. It is provided free of charge, along with the company’s position statements and emergency response guides. Repair techniques on the 2013 Honda Accord are included in the I-CAR Live Vehicle Technology and Trends 2013 (NEW13), the Online Collision Repair for Honda and Acura Vehicles (HON01e), and the upcoming Live Replacement of Unitized Structural Vehicles (SPS10) courses. Repair features on the 2014 Acura MDX are included in the upcoming Live Vehicle Technology and Trends 2014 (NEW14) course. For comments or suggestions on the Advantage Online, please contact I-CAR at advantage@i-car.com.
Safelite Attorneys Dispute Connecticut Officials’ Claims in Anti-Steering Case by Jenna Reed
“The omissions and errors in the state’s response to Safelite’s motion for a preliminary injunction are glaring and dispositive,” Safelite’s attorneys claim in court documents filed in the U.S. District Court of Connecticut. The company’s attorneys filed the memorandum disputing Connecticut officials’ opposition to a preliminary injunction in the antisteering case. “The state starts by incorrectly labeling Public Act 13-67 ‘presumptively constitutional,’ even though the state bears the burden of establishing its constitutionality. And the state does not even come close to demonstrating that the law satisfied the U.S. Supreme Court’s Central Hudson test for regulating commercial speech,” Safelite’s attorneys claim. “… The state cites no evidence establishing that an interest in ‘consumer’ choice motivated the adoption of PA 13-67,” Safelite’s attorneys go on to claim. “Instead, the state argues that such a goal either was ‘implicit in Connecticut’s enactment of PA 13-67’
or can be inferred from various proposed bills that the legislature considered but did not adopt. But the uncontroverted evidence in Safelite’s opening brief demonstrated that, throughout the legislative hearings related to PA 13-67, legislators repeatedly explained that the purpose of the act was to advantage local businesses in competition with larger interstate businesses—specifically Safelite.” Safelite’s attorneys claim the defendants have not shown evidence that there was any harm to customer choice that would be helped by PA 1367. “… So PA 13-67 did not address any harm to consumers from alleged ‘steering’ or from understanding their legal rights,” Safelite’s attorneys claim. “Rather the only ‘harm’ the state identifies as being addressed by PA 13-67 is that customers are choosing Safelite shops too often. This is simply not a ‘harm’ that the state is entitled to address by restricting protected commercial speech.” Safelite’s attorneys also claim the public act only addresses third-party administrators who own an affiliated
auto glass service. They question why other third-party administrators are left out even though they “may have a financial incentive to refer business to particular shops.” “… For the foregoing reasons, Safelite is likely to prevail on its claim that PA 13-67 violates its rights under the First Amendment. … Accordingly, this court should issue a preliminary injunction preventing the defendants from enforcing PA 13-67 pending the resolution of this action,” Safelite’s attorneys claim. Oral arguments are next on the schedule for this case. They will be held December 2, 2013 at 3 p.m. in Courtroom Two of the U.S. District Court of Connecticut. PA 13-67, which the governor approved in early June, “requires initial communications between a glass claims representative or a third-party claims administrator of an insurance company doing business in Connecticut and the company’s insured about automotive glass works or products to inform the insured about his or her right to choose where to have the work done.”
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 45
Faces of NACE 2013
SHINGLE SPRINGS
SUBARU
Wholesale’s Our Business For Your Business
• Professional and Knowledgeable Staff • FREE UPS Ground Freight • We Match or Beat All Competitor Coupons • Serving Northern California for Over 25 years • Mention This Ad for an Extra 5% Off
H Hours: M-F 8:30 am - 5:30 pm / Sat 8 am - 5 pm
Call us Today!
530.676.0444
530.677.6528 FAX
SHINGLE SPRINGS
NISSAN
We Have The Parts You Need!
• Highly Experienced Parts Personnel • No Order Too Big or Too Small • Serving Northern California for Over 25 years • Family Owned and Operated • Order Parts: parts@shinglespringsnissan.com • Mention This Ad for an Extra 5% Off
Hours: M-F 8:30 am - 5:30 pm / Sat 8 am - 5 pm
Call us Today!
530.676.0444 5 530.677.6528 FAX
4045 Wild Chaparral Dr., Shingle Springs, CA 95682
4045 Wild Chaparral Dr., Shingle Springs, CA 95682
www.shinglespringssubaru.com
www.shinglespringsnissan.com
46 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
GENUINE SERVICE & PARTS
Nick Alexander BMW
www.alexanderbmw.com
(800) 800-NICK
NICK ALEXANDER BMW
Original BMW Parts & Accessories
95% Same Day Order Fill Rate. We Stock the Parts You Need to Serve Your Customers Quickly. Four Delivery Vehicles. Serving All of Los Angeles Metro Area and Nearby Cities. Ten Knowledgeable Parts Specialists with an Average of 17 Years of Experience Ready to Serve You. Get the Correct & Complete Order the First Time.
www.alexanderbmw.com E-mail: parts@alexanderbmw.com Hours: M-F 8am-5:30pm; Sat 8am-4pm 6333 S. Alameda St. Los Angeles, CA 90001
Toll Free: 800.800.NICK
Wholesale Direct: 323.583.4108 Parts Fax: 323.582.3709
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 47
Continued from Page 42
Evolving Marketplace
ment. The 2012 U.S. profile has been expanded to include our work on the $10 to $20 million multiple-location operator segment. This profile of the $20+ million and the $10 to $20 million multiple-location collision repair operators includes: ● Independent and dealership MLO collision repair operators processing $20+ million or more in revenue annually within the U.S. market ● Independent and dealership MLO collision repair operators processing $10 to $20 million in revenue annually within the U.S. market ● Professionally-managed operators providing performance-based, brand-recognized and competitively-differentiated collision repair services ● Companies focused on achieving top-tier, self-managed, and customer-required performance results, high customer satisfaction, and consistent and sustainable quality repairs ● Businesses that tend to pursue
multiple customer segments for collision repair revenue including property and casualty insurance DRP, automotive dealer, accident management, rental car, and direct-pay consumers ● Organizations typically incorporating strategic planning as part of their proactive approach to their business, market development and growth ● Operators practicing business process improvement and operations excellence; managing the organization by incorporating and integrating all functional areas such as finance, personnel, operations, sales/marketing, and technology as a minimum foundation for their business platform Both the $20M+ MLO and the $10 to $20M MLO collision repair profile used for this analysis excludes repair facilities that focus exclusively or primarily on expedited paint and cosmollision, paintless dent removal, glass repair, and mechanical only; and collision repair related primarily to auction vehicles. We do recognize that within these segments some companies continue to be in various
stages of strategic growth, transformation and transition to business models approaching that of an insurance company DRP or diversified customer collision repair segment platform. Portions of this report contain a specific segment of multiple-location networks (MLNs) that include collision repair conversion and multi-segment customer-focused franchisor Maaco along with franchise consolidator networks CARSTAR and ABRA. Fix Auto, currently a hybrid model which includes both franchise members and non-franchise repairers participating in Fix’s franchise brand and its banner network model, are also included. These organizations represent a significant market segment of the collision repair industry that warrants continued tracking and monitoring. There are various types of multiple-location networks that are not currently included here such as integrated and outsourced auto physical damage and glass networks, Safelite and LYNX APD, accident management firms such as The CEI Group, cooperative
marketing, consumer advocacy and management networks like Assured Performance, and peer performance groups including The Everest Partners, PPG’s Par Kaizen and the Coyote Group. Nevertheless, we do understand the value and growing importance these organizations have among their customers and constituents in providing solutions and supporting their needs.
Key Findings for the 2012 U.S. $20+M MLO Market Segment ● The 68 $20+M MLO organizations: ►Processed 14.7 percent of the $30.7 billion in collision repair revenue nationally ►Represent $4,504 billion in revenue, up 65 percent from 2006 ►Represent 3.9 percent of the 35,200 collision repair locations ● When combining the $20+M MLO organizations and the four franchise branded consolidator MLN networks: ►They represent $5.8 billion or 19.1 percent of the $30.7 billion collision repair market See Evolving Marketplace, Page 52
Original BMW Parts
bmwusa.com
Dedicated Wholesale Staff Prompt & Dependable Delivery Knowledgeable and Enthusiastic Parts Team ORIGINAL BMW PARTS & ACCESSORIES BMW Trained Parts Advisors Competitive Wholesale Prices Large Inventory Of Original OEM Parts
Bob Smith BMW Hours: M-F 7am-6pm; Sat 8am-5pm 24500 Calabasas Rd. Calabasas, CA 91302
www.bobsmithbmw.com
818.346.3144 Parts Fax: 818.340.9455
Toll Free:
48 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
BOB SMITH MINI
Original MINI Parts
818-346-3144 Toll Free 818-340-9455 Fax BOBSMITHMINI.COM Hours: M-F 7am-6pm; Sat 8am-5pm 24500 Calabasas Rd. • Calabasas CA 91302 ©2013 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
Momentum Mitsubishi Hours: M-F 7:30am - 5:30pm / Sat 9:00am - 4:00pm
Parts: 707.402.5700 2775 Auto Mall Parkway • Fairfield, CA 94533
Infiniti of Fairfield Hours: M-F 7:30am - 5:30pm / Sat 9:00am - 4:00pm
Parts: 707.402.7130
IN FIN ITI
2855 Auto Mall Parkway • Fairfield, CA 94533
Momentum Nissan • Daewoo Hours: M-F 7:30am - 5:30pm / Sat 8:00am - 4:00pm
Parts: 707.402.3250
GENUINE SERVICE & PARTS
2545 Auto Mall Parkway • Fairfield, CA 94533
Momentum Toyota Hours: M-F 7:00am - 6:00pm / Sat 7:00am - 5:00pm
Parts: 707.402.3174 2575 Auto Mall Parkway • Fairfield, CA 94533
Volkswagen of Fairfield Hours: M-F 7:30am - 5:30pm / Sat 9:00am - 4:00pm
Parts: 707.402.7130 2855 Auto Mall Parkway • Fairfield, CA 94533
Momentum Hyundai Hours: M-F 7:30am - 5:30pm / Sat 9:00am - 4:00pm
Parts: 707-402-5700 2775 Auto Mall Parkway • Fairfield, CA 94533 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 49
Inside Insurance
Cycle Time is Money for Everyone with The Insurance Insider
How often have you heard the expression Time is Money? It’s a phrase that applies to many businesses but—as it pertains to body shops, insurance companies and vehicles owners—it is only half of the equation. In this industry, time equals money and customer service. It’s much more expensive to find a new customer than to retain an existing one. As insurers we are aware that the time it takes to repair an insured vehicle is directly tied to the insured’s CSI score and retention rates. Low cycle time equals high CSI, so we need to focus on reducing cycle time. Here’s what I mean. Although customer service can’t be defined by an algebraic equation, it’s safe to assume that cycle time is less than or equal to customer service. (I promise I won’t reference algebraic equations for the remainder of the article.) The important idea is that the less time it
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com
takes to repair a vehicle, the greater the customer service is. That’s because, even when the vehicle owner rates customer service poorly in terms of the repair itself—or the handling of the
For the collision repairer, reduced cycle time equals increased sales equals more money. Increased CSI increases customer-driven repeat and referral business. Therefore, reducing
claim, the overall score is going to be better when the repair is done quickly. Also, if you can get repairs through your facility faster, you can move more repairs through the same facility and you make more money.
cycle time translates to increased collision repairer profitability, CSI, and customer referrals and repeat business. I am not suggesting that shops should sacrifice quality just so you can get the customer’s car back
QUALITY IS ALL WE THINK ABOUT. THAT AND QUALITY.
sooner. But I am pointing out the importance of managing cycle time. The importance of cycle time goes far beyond the dollars saved in rental car expense. It also goes beyond the fact that if you repair the car quicker, you can get another car in the shop. For insurance companies, there’s another factor: open claim liability. The longer a claim is open, the more likely the claim will increase, for a lot of reasons. Paying and closing claims quickly reduces open claim liability, and that’s additional motivation on the insurer’s part to push for reduced cycle time. Body shops tend to think that this is just part of the game for insurance companies, that we are just imposing our will on hapless shops to save a few dollars on a rental car. But if you remove yourself from that “usagainst-them” posturing and think about something other than arguing with insurance companies, you will realize that this just makes sense.
The only Suzuki dealer in Arizona
See these Hyundai dealers below for all your collision parts needs!
SO. CALIFORNIA
Drew Hyundai
Kearny Mesa Hyundai
SA N D I E G O
SAN DIEGO
888-839-0777
800-469-9731
619-668-7782 Direct 619-460-4082 Fax importorder@drewauto.com www.drewhyundai.com
858-300-3331 Fax Mon-Fri 7am - 6pm; Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com
NO. CALIFORNIA
Lithia Hyundai F RE SN O
800-462-2231 559-436-6041 559-436-0743 Fax Mon-Fri 7am - 6pm; Sat 8am - 1pm etaylor@lithia.com 50 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Bill Luke is a family owned and operated dealership in the valley since 1927. Having trouble finding specific parts? We staff a highly-efficient Suzuki parts department that proudly serves the greater Tempe, Phoenix, Scottsdale and Avondale areas. Parts Dept. Hours 8:00 a.m. - 5:00 p.m. M-F 8:00 a.m. - 2:00 p.m. Sat.
480.496.8888
7799 South Autoplex Loop, Tempe, AZ • www.billlukesuzuki.com
We are all in business to deliver a service to the customer. You just happen to repair cars; we simply provide coverage in the event of a loss. But the bottom line is that delivering customer service is a more important business proposition than anything else the shop or insurance company does. In the highly competitive insurance and collision repair markets, retaining policyholders and getting repeat business will make the difference between survival and prospering. The challenge for insurance companies is that we are beholden to the time that body shops take to make the repairs. With few exceptions, the time it takes for you to repair a vehicle is solely dependent upon your shop’s management and operational efficiency. Although you may think it’s an insurance company goal to manage your shop, it isn’t. We don’t have enough manpower or systems to manage your business for you. Instead we need shops to be conscientious about cycle time. Better cycle time equals high customer service scores which equals greater policyholder retention. It is frustrating as an insurance executive to realize that we lose policyholders because the customer was
dissatisfied with the length of time it took to repair their vehicle. I realize that insurance companies can adversely impact cycle time with outdated processes or lack of trust (though I’m sure many of you will email me to point this out). But the fact remains that there are tens of thousands of body shops in the industry. A small percentage of you understand what I am saying. And an even smaller percentage actually take action to ensure that cycle time and operational efficiency are dominant in all phases of your facility. The greater percentage of body shops repair cars at their own pace because, after all, they don’t owe anything to the insurance company. They proclaim that they are repairing the car the right way and you just can’t rush such things. If you are one of those short-sighted people, please don’t repair any of my customers vehicles. But for those that want to survive what is going to be a continual reduction of shops in the United States, please keep reading. The moment you are notified that there is a claim, we are starting the clock. Why? Because we are doing that internally with our own staff. We are
monitoring and assessing every step of the claim process. The stopwatch starts the moment you are notified of the claim, and only stops when the customer is handed back their keys. The days of measuring cycle time by the number of days is gone. Insurance companies are measuring cycle time by the minute. We can no longer tolerate working with shops that aren’t driven to improve their efficiency and cycle time—especially when your competition down the street understands the rules of engagement and how to win. I know that all shops aren’t created equal. Fortunately, we are getting better at identifying the “haves” from the “have-nots.” If you aren’t keenly aware of the cycle time in all phases of your operation, your fate will be sealed because your customers won’t tolerate it. Time is money. Customer satisfaction and retention is driven by how long it takes you to repair the car.
The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com.
AASPI Opposes State Farm Sand/Buff Policy
The Alliance of Automotive Service Providers of Illinois (AASPI) released a statement declaring its opposition to State Farm Insurance’s new “verbally imposed” policy regarding reimbursement of “wet sand and buff” procedures. State Farm, according to the AASPI release, has informed a number of shops that it will not pay for “wet sand and buff” on original estimates. The insurer has not put out a formal, written notice regarding the issue. AASPI regards the process as a standard in the repair industry to duplicate the original sheen by eliminating orange peel and remove any normal imperfections occurring during the refinish process. AASPI is encouraging all collision repair businesses in Illinois to request that State Farm document items they are declining to cover under the policy in writing and forward received documents to AASPI. These correspondences can be sent to issues@aaspi.org.
Search: Autobody News on Facebook
BILL LUKE FIAT Your Go-To Source for FIAT Parts
ü
ü
ü ü
ü Phone: Fax:
602-336-1489
602-336-1469
www.billlukefiat.com Hours: Mon-Fri 8am-5pm / Sat 8am-2pm 7833 S. Autoplex Loop • Tempe, AZ 85284 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 51
Continued from Page 48
Evolving Marketplace
● When the $20+M MLO organizations are combined with the MLN networks and the $10m to $20M MLO segment: ►These combined three segments represent $7.2 billion or 23.5% of the $30.7 billion collision repair market ● Within the top ten $20+M MLOs, five are independent and five are dealer groups ►These top ten organizations account for 55.9 percent of all $20+M MLO production locations ►They represent 54.1 percent of all $20+M MLO revenue ►On average, the $20+M MLOs process $3.2 million per production location, over four times more than the average annual revenue for <$20M MLO repairers of $775,718. ● Revenue for the top ten independent and dealership MLOs was $2.4 billion, an increase of $1.1 billion over 2006’s revenue of $1.3 billion Key Findings for the 2012 U.S. $10 to
$20M MLO Market Segment As indicated earlier, this group of MLOs represents the next level segment being tracked as part of the broader U.S. market. These MLOs compete not only on a local market basis, but also with the regional and larger multi-platform MLOs. They each bring an entrepreneurial and customized approached to how they succeed and compete. They continue to grow their businesses organically and through new locations in order to remain competitive or position themselves as merger or acquisition candidates. ● The 107 $10 to $20M MLO organizations: ►Represent $1.4 billion in revenue ►Processed 4.5 percent of the $30.7 billion in collision repair revenue nationally ►Represent 530 or 1.5 percent of the 35,200 collision repair locations ● The top 25 processed $409M revenue and have 140 locations while the top 50 represent $745M, over 50% of this segments revenue, with 272 locations.
Audi Genuine Parts
Nothing else measures up.
Order Audi Genuine Parts from these select Dealers
So. California Audi of Downtown LA Circle Audi LOS ANGELES 213-747-7248 213-222-1261 Fax
LONG BEACH 800-675-2472 562-597-2854 Fax
Ask for Carlos or Fausto
Ask for Eddie or Nate
Arizona Audi Peoria PEORIA 623-561-4750 623-561-4703 Fax Hours: M-F 7-6; Sat 8-4 www.autonation.com 52 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
California’s Workers’ Comp Reform Shows Signs of Progress Says Dept. of Industrial Relations Director
Ten months after “historic reforms” were made to California’s workers’ compensation system there is evidence that the changes are taking hold, however bad actors continue to find ways to game the system, said Department of Industrial Relations Director Christine Baker. Baker, who’s considered one of the state’s top labor officials and oversees the Department of Workers’ Compensation, offered an update on Senate Bill 863 during the recent California Workers’ Compensation & Risk Conference in Dana Point. The annual three-day conference was attended by a broad swath of professionals with interest in workers’ comp, including insurance agents, insurers, attorneys, interpreting services, investigative agencies, medical provider networks and billing services. The theme of this year’s conference was “Surf’s Up! Navigating the ‘Waves of Change’ in Risk Management.” The conference included an expo, several panels and guest speakers. Other keynote speakers included motivational speaker Bethany Hamilton, a professional surfer and shark attack survivor.
Baker was one of a handful of people who hammered out the workers’ comp reform passed literally at the 12th hour as Legislative session was ending in 2012. She told the crowd it was too early to tell if some reforms were having an effect, although immediate results were seen in the form of a 30 percent increase in permanent disability indemnity rates for workers phased in over two years and lien reform. Under SB 863, liens for reasonable medical expenses incurred by or on behalf of the injured employee are subject to a filing fee of $150. For liens filed before Jan. 1, there will be a $100 activation fee which must be paid prior to Jan. 1, 2014, or the lien will be subject to dismissal. The fees were intended to reduce the hundreds of thousands of liens filled each year costing the system hundreds-of-millions of dollars, according to SB 863 backers. However some of those reforms may have pushed people to file liens quicker to get them in on time, while other reforms may have prompted quicker resolution of ongoing workers’ comp disputes to get them out of the way before reforms kick in.
Weatherford BMW
www.weatherfordbmw.com
(800) 995-9269
ORIGINAL BMW PARTS AND ACCESSORIES
Over $1 million parts inventory Extremely Knowledgeable Parts Crew Our fleet of vehicles will get your order delivered when you need it At Weatherford BMW we are 100% committed to your complete satisfaction
Weatherford BMW 750 Potter Street, Berkeley, CA 94710 www.weatherfordbmw.com
Toll Free:
(800) 995.9269 (510) 841.5996 Fax
parts@weatherfordbmw.com www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 53
Consumer Groups Go to Court to Force Obama Administration’s Hand on Back-Up Cameras Consumer groups are taking the Obama administration to federal court over its about-face on backup cameras. In a lawsuit filed today in federal court in New York, two individuals and four organizations—including Consumers Union, the advocacy wing of Consumer Reports magazine— asked a judge to order the U.S. Department of Transportation to set rear visibility standards for light vehicles, as required by a 2008 law. DOT proposed rules in 2010 that would have required backup cameras in all new cars and light trucks. Final rules were delayed multiple times after automakers and White House officials raised concerns over costs. Before leaving office this year, Transportation Secretary Ray LaHood set a new goal of completing the standards by 2015. With the lawsuit, the consumer groups hope to force the administration’s hand and make backup cameras a standard feature on new light vehicles several years sooner. “When Congress ordered this rule issued in three years, they meant three years, not seven,” said Scott Michelman, an attorney for Public Citizen, a consumer advocacy group. Neither the DOT nor the U.S. Department of Justice would comment on
the lawsuit. DOT has added the safety device to the list of recommended features under the federal New Car Assessment Program. The move does not impose any requirement on automakers but it “will encourage both automakers and consumers to consider more vehicles that offer this important technology,” LaHood’s successor, Anthony Foxx, said in a statement. “While adding this technology to our list of safety features is important, I remain committed to implementing the rear visibility rule as well,” Foxx added.
Opposition and support The rules still face resistance from some car companies, though some suppliers stand to gain from a mandate. Trade groups representing automakers challenged the rules in meetings with the White House in 2011, saying that backup cameras would be less cost effective than other features required in cars, such as electronic stability control. DOT said rearview cameras would replace electronic stability control systems, which are now required by law, as a recommended advanced
Cost per life Also in 2010, NHTSA estimated that adding a backup camera to a car would cost $58 to $203, depending on whether the car already has a display screen, and would save 95 to 112 lives per year—and up to $18 million per life. Even without a mandate, backup cameras have become more common in recent years. They were standard or optional in 77 percent of 2013 model-
year vehicles, according to Edmunds.com, up from 32 percent of 2008 models. Trucks, minivans and crossovers, which tend to have more limited rear visibility than cars, have often been the first vehicles equipped with the cameras. But some automakers have decided to put them into smaller cars, as well. When the redesigned 2015 Honda Fit subcompact arrives in showrooms next year, Honda’s entire lineup will have backup cameras as a standard feature. Ami Gadhia, senior policy counsel at Consumers Union, said all types of cars could use better visibility. Even if backup cameras gain widespread acceptance across the market, that is no substitute for a government mandate, she said. “We don’t see a need for a compromise on safety,” Gadhia said in an interview. “We think it should be offered across the board.”
Search: Autobody News on Facebook
KEARNY MESA
KEARNY MESA
SUBARU se. It jus t mak es sen
technology feature in the NCAP program. According to NHTSA estimates, an average of 292 fatalities and 18,000 injuries occur each year as a result of back-over crashes involving all vehicles, the agency said in a December 2010 report. NHTSA said 228 fatalities of those fatalities involve light vehicles weighing 10,000 pounds or less. “Two particularly vulnerable populations—children and the elderly —are affected most,” the report said. “Approximately 44 percent of fatalities involving light vehicles are children under five—an unusually high percentage for any particular type of crash. In addition, 33 percent of fatalities involving light vehicles are elderly people 70 years of age or older.”
The right part makes the difference.
HYUNDAI YOUR SEARCH ENDS HERE.
www.kearnymesasubaru.com/parts
www.kearnymesahyundai.com/parts
• We Have Wholesale Specialists Ready to Help and Advise You on All Your Subaru Genuine Parts Needs • Offering Free Delivery (M-F) and Competitive Discounts
• We Have Wholesale Specialists Ready to Help and Advise You on All Your Hyundai Genuine Parts Needs • Offering Free Delivery (M-F) and Competitive Discounts
800.548.9124 Fax: 858.300.3331 Email: cguth@kmhyundaisubaru.com Hours: Mon-Fri 7 - 6; Sat 8 - 5
4797 Convoy St. • San Diego, CA 92111
54 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
800.469.9731
Fax: 858.300.3331
Email: cguth@kmhyundaisubaru.com Hours: Mon-Fri 7 - 6; Sat 8 - 5
4797 Convoy St. • San Diego, CA 92111
Old School Know How
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
I-CAR Instructor Looks Back at 20 Years in the Business with Ed Attanasio
When body shop professionals in Northern California yell “Show me the Money!” they’re probably not quoting from Jerry Maguire, the 1996 film starring Tom Cruise. No, it’s more likely that they’re referencing Kurt Money, a body technician who is renowned for being an especially skilled instructor for the Inter-Industry Conference on Auto Collision Repair (I-CAR). Virtually all repairers know I-CAR is a not-for-profit training organization focused on education, knowledge and solutions for the Collision Repair Inter-Industry and developing and delivering technical training programs to professionals in all areas of the Collision Repair InterIndustry. Money is celebrating 20 years as an I-CAR instructor this year, but he’s surely not resting on his laurels. As a full-time body man working at Larkfield Body and Paint in Santa Rosa, CA, and teaching a wide range of I-
CAR courses, Money’s schedule is jam-packed. If he’s not mentoring body techs and fixing cars, he’s enjoying his Harley motorcycle. Money is all about teaching people, helping them and making a better industry; by volunteering his time when possible and showing that he cares. Money, 56, came to northern California from Spanish Fork, UT—just outside of Provo—in 1979. After graduating from Utah Valley Technical College, Money decided to start his own shop and later hired two of his classmates to work for him. It was called Money’s Body & Paint and before long the shop was doing well. But Kurt was not ready to own and operate his own business at that point in his life. “The business was fine, but I was more into having a good time, playing a lot of golf, bowling and not paying attention to the shop. I was playing when I should have been working and pretty soon I ran it into the ground. It was a
useful lesson and what I learned was, I don’t want to own my own shop!” After working briefly for a Chevy dealership’s collision center in Provo, UT and supervising a crew of nine, Money decided to go west. “I loaded my tools in my van and headed to California,” Money said. “I was actually going to San Diego, but my voltKurt Money has been teaching techs age regulator failed through I-CAR for and caused my vetwo decades hicle to break down in Santa Rosa. I took it to a dealership and they told me that the van made it all the way from Utah on the charge that was left in the battery, which was very surprising.” After working for a decade as a body tech at a Cadillac dealership in Santa Rosa, Money got a job at Larkfield Body and Paint in 1990, where he
still works today. “It’s a third-generation shop and they treat all of us like family,” he explained. “Dave Hartman is the owner and he’s an exceptional individual. He’s the best boss I’ve ever had, because he cares about us and doesn’t treat us like employees.” In 1985, Money started taking ICAR classes, to learn as much as he could about his profession and improve his skills, he said. “When I first found out about I-CAR, some of the older guys told me that I didn’t need to take those classes. But, I found out that ICAR was offering information I couldn’t find anywhere else. Back then, they had approximately 16 classes and I took them all. My instructor was a guy named Bob Puckett and he’s retired now. When I saw him in action, I thought to myself, I can do this.” His I-CAR teaching career started over a gentleman’s bet, Money said. “I told one of my fellow techs that I was thinking of becoming an in-
Painters like it
Thermodry Technology BENEFITS:
Hot
Heat your materials at the point of atomization within your spray gun nozzle, increase spray gun transfer efficiency and eliminate waste.
1. 25% to 40% reduction in drying time for waterborne and solvent based paints 2. Material savings from 15% to 30% due to higher transfer efficiency with maximum coverage 3. Reduce cycle times & operating temperatures of your existing spraybooth saving time and energy(additional cycles) 4. Clean paint work equals considerably less buffing and faster delivery to your customer
“Quality in the finish”
Walcom USA
www.walcom-usa.com
Tel: 401-293-0200 Fax: 401-293-0925
SEMA
BOOTH #11047
30 Centennial Street, Pascoag, RI 02859
The complete and efficient solution to resolve problems related lated to new generation paint applicati application. www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 55
structor for I-CAR. But he said, ‘You can’t talk in front of two people, how are you going to get up there and talk to a group?’ So, we made a bet and it actually provided me with additional motivation. I jumped in there and started teaching and I’ve been doing it now for 20 years.”
tion in front of him and it wasn’t easy. I learned a lot from that and now I integrate it into my teaching. I use humor and I try to present the information in a way that the students can absorb easily. I’m hands-on and I like to teach visually. My approach is I teach the way I would want to be taught. I come up
Peter Lock (left), the head instructor at Contra Cost College and Jim Boyle, the owner of Regal Collision in Vallejo, CA have known and worked with Kurt Money for many years
To see what he could do, I-CAR sent Money to Orange County to meet with Lead Instructor Ronnie Swaggert. “I admit, it was a little intimidating,” Money said. “I had to make a presenta-
with scenarios that the techs can relate to and that way they get involved and retain the information.” By using his proven techniques, a wide range of people within the col-
Parts You Need. People You Trust. Genuine Mitsubishi Replacement Crash Parts are close at hand through the following quality dealerships.
CALIFORNIA
Glendale Mitsubishi
800-424-7884 GLENDALE
(818) 549-3850 Fax M-F 7:00 am - 6:00 pm Sat 8:00 am - 4:00 pm parts@glendalemitsubishi.com
Oakland Mitsubishi
510-267-0688 OAKLAND
(510) 267-0622 Fax M-F 7:30 am - 5:30 pm Sat 8:00 am - 4:00 pm info@oaklandmitsubishi.com
56 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
lision industry have grown to know and respect Money for his uncanny ability to connect with his students. One of these is Dan Welsh, the owner of Crockett’s Premier Auto Body in Pinole, CA and a former I-CAR instructor who currently sits on the organization’s board. “All I can say is Kurt Money is a special individual,” Welsh said. “I keep waiting to run into his twin, because the man gets so much done there must be two of them. He’s very methodical and exceedingly fair and in everything he does, he puts other people first. He never takes credit and makes himself accessible to all his students, by giving them his cell phone number and even his home phone number.” Peter Lock, the head instructor at Contra Costa College’s auto tech department has been working with Kurt Money since day one. Money periodically teaches Lock’s students welding classes and uses the Contra Costa College’s classroom to teach I-CAR classes on Saturdays, he said. “When I first met Kurt, I was expecting someone completely different. He pulled up on his Harley with the long hair and he had a Harley T-shirt on (he owns 86 HD T-shirts). I thought, what is going
on with this guy? But after spending a day with him, I realized he’s pretty amazing. He’s a special person and he lives to teach. Kurt gives his time freely and has helped us in so many ways.” Jim Boyle, the owner of Regal Collision in Vallejo, CA, also goes way back with Money and like everyone else, has nothing but good things to say about the man. “He is a unique individual and the one thing I can say is that his passion for teaching and helping people really stands out,” Boyle said. “When he gets up there in front of a class, you want to listen to him. I most appreciate his sense of humor and his attention for detail. He inspires people to be better, and that’s what teaching is all about.” Gene Lopez, a regional manager for I-CAR is yet another Money fan, for several reasons. “Kurt is a tech, so he can deliver the information in a way that other techs can relate to,” Lopez said. “With 20 years of teaching experience at I-CAR, he is an integral part of the Santa Rosa market. He is a selfstarter and works wells with other people, including Maria Reynaga, our chairman in that region. For him, it’s his life, not just a profession and that’s why we value him so greatly at I-CAR.”
FORD FORD Parts
Blow
Smoke
Use OEM Genuine FORD Parts
Call your local Authorized Ford Wholesaler today!
These dealers are Genuine Ford Parts wholesale specialists. Bob Wondries Ford AL HAMB RA Wholesale Direct
888-238-5415 626-284-9109 Fax
www.bobwondriesford.com parts@bobwondriesford.com
Buerge Ford
W E S T LOS AN GE L E S
310-820-1431 310-826-0221 Fax
Citrus Ford ON TARI O
909-390-0948 909-390-0982 Fax
scunningham@citrusmotors.com
Colley Ford
GL E N D ORA Wholesale Parts
800-253-3807 909-592-8577 Fax
E-mail your orders parts@colleyford.com
Drew Ford L A ME S A
SO. CALIFORNIA
Future Ford of Clovis CLOVI S
800-350-2552 559-294-0816 Fax
Fritts Ford RI VE RS I D E
951-343-7556 951-687-3044 Fax
wsparts@frittsford.com
Galpin Ford VAN N U YS
818-778-2005 818-778-2090 Fax
Kearny Pearson Ford S AN D I E GO
858-560-5033 800-635-6669 858-560-9648 Fax
Largest wholesaler in San Diego with 17 delivery trucks.
Pacific Ford LON G B E ACH
800-353-7224 562-492-9452 Fax
parts@pacificford.com
800-648-7431 619-668-7765 619-668-7719 Fax
Palm Springs Motors
S AN B E RN AR D I N O Wholesale Direct
Super Ford Lincoln Mercury
www.drewauto.com
Fairview Ford
909-386-0220 909-889-1741 Fax
CATHE D RAL CI TY
760-328-7149 760-328-5092 Fax
(Formerly Puente Hills Ford) CI TY OF I N DU S TRY
800-965-1055 626-965-9666 Fax
phfordparts@yahoo.com
Tuttle-Click Ford Lincoln Mercury
NO. CALIFORNIA
Serramonte Ford
NEVADA
Friendly Ford
I RVI N E
COL MA Wholesale Parts Dept. Phone:
650-301-7190
702-877-6546 702-870-6280 Fax
Vista Ford Lincoln Mercury
www.serramonteford.com
L AS VE GAS
949-472-5230 949-472-0327 Fax OX N ARD Wholesale Direct
805-983-4551 805-278-0554 Fax
Vista Ford Lincoln
Wholesale Parts Dept. Fax:
650-301-7087
Sunnyvale Ford Lincoln Mercury S U N N YVAL E
408-738-1530 408-738-3125 Fax
W OOD L AN D HI L L S
www.fordautodirect.com
www.vistaford.com Rabi_kadi@vistaauto.com
S AN L E AN D RO
818-710-9594 818-251-4339 Fax
Worthington Ford LON G B E ACH
800-622-4225 562-421-4033 562-496-1871 Fax
tonyc@calworthington.com
NO. CALIFORNIA
Harrold Ford S ACRAME N TO
The Ford Store of San Leandro 800-690-6906 510-347-4160 Fax
NEVADA
Ford Country HE N D E RS ON
702-558-8100 702-566-7037 Fax
www.fordcountrylv.com
L AS VE GAS
Gaudin Ford
702-796-2762 702-792-5370 Fax
ARIZONA
Berge Ford
ARIZONA
Power Ford North Scottsdale S COT TS D AL E
480-998-0652
Sanderson Ford GL E N D AL E
800-367-3673 623-842-8762 623-842-8799 Fax
www.sandersonparts.com
ME S A
480-497-7660 480-497-7581 Fax
www.bergeford.com parts@bergeford.com
Chapman Ford S COT TS D AL E
480-946-3900 480-949-7617 Fax
Earnhardt Ford CHAN D L E R
480-763-6233 480-783-4655 Fax
www.earnhardtford.com
916-922-8355 916-922-2691 Fax
mdiaz@harroldford.com www.harroldford.com
Livermore Ford Lincoln L I VE RMORE
925-294-7700 925-449-7254 Fax
Hours: M-F 7-6; Sat 8-4 dreeves@lagmail.net
Make us your one-stop shop today!
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 57
On Creative Marketing
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
Take 15 Seconds to Think about Putting Marketing Ideas to Work with Thomas Franklin
A few years back I attended a man- strategy or another. And yet I seldom titled The Fifteen Second Principle agement-training seminar put on by see these strategies put into action by (Berkley Books, 1999). Simply put, Kepner-Tregoe, Inc., a prestigious shop owners that I know read the pub- he suggested committing to spending management consulting company lications. I can only conclude that at least 15 seconds on the project based in Princeton, New Jersey. The there are too many things on a shop every day. When he spoke I thought principal speaker noted that the com- owner’s “to-do-list” to allow him or that 15 seconds seems like a ridicuher to focus on a new marketing strat- lously small amount of time. What can pany had completed a follow-up survey to find out how many companies “Unless the pain of not doing something is had implemented the costly plan and with Dick Strom procedures they had developed for greater than the pain of doing it, most people those clients. Sadly, they found that will choose not to do it” only about 20 percent of their clients had put more than a few of their rec—United Health Plan Manager ommendations to work, and many had simply put the entire package on a egy. There are only 24 hours in a day, you do in 15 seconds? At the very shelf and forgotten about it. This ten- and even less than that in a typical least, he said, you will find out if you dency to put new projects on the shelf workday. Finding the time to intro- care enough about getting it done to is common to many kinds of business, duce what might be a complicated spend a few seconds, or you will find and the collision repair industry isn’t new marketing strategy can seem out that you don’t even care that nearly impossible. much. And if you do care, even a few immune to it. Back around the year 2000, I seconds are enough to focus on at Many autobody industry publicawith Lee Amaradio Jr. another speaker named Al Se- least one step you can take to further tions have had articles on body shop heard marketing for years, often describing cunda who had an interesting new ap- the project. Once into a marketing project, spectacular business gains made by proach to getting a difficult project specific shops using one marketing under way. He had written a book en- you will often discover that there are
Opinions Count
Action Counts
previously unrecognized reasons why you didn’t want to take on the project. For one shop, the idea to put up some new signs ran squarely into a city’s legal prohibition for certain kinds of signs. This meant working around the prohibited ones to find those that would be acceptable. Another shop owner decided to begin a prior customer-calling program to dig up some return business or referrals. This project flew in the face of employee resistance to phone soliciting and required some re-training and even recruiting new personnel. With a new project there is always the possibility of running into what can seem to be insurmountable obstacles, but without taking a few moments to consider it, nothing will ever be done. Probably the most frequent barrier to getting a new project under way will be the resistance of people needed to do the work. A manager at United Health Plan once said, “Un-
DREW HYUNDAI
Your Turn
• Large Inventory with Sheila Loftus • Fast & Free Delivery • Experienced Wholesale Specialists Ready to Serve You • 12 Trucks Serving San Diego County, Imperial County and parts of Riverside County
Shop Showcase with Janet Chaney
888-839-0777 LOCAL:
619-668-7782
Industry Overview
8850 GROSSMONT BLVD., LA MESA, CA 91942 with Janet Chaney
58 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
WWW.DREWHYUNDAI.COM e-mail: importorder@drewauto.com MONDAY - FRIDAY: SATURDAY:
7:00AM - 6:00PM 8:00AM - 5:00PM
less the pain of not doing something is greater than the pain of doing it, most people will choose not to do it.” Of course that suggests punishing people for not taking action, an unwise approach to getting those projects under way. But in the real world of many body shops competing for limited repair jobs, failing to implement better marketing strategies can subject one to the real pain of a lost job. Probably a better motivational strategy is to give the people expected to do the work the current repair volume numbers versus the potential jobs that can come from the marketing initiative, but this can’t be done in 15 seconds. So what can? Many body shops in the U.S. are enamored with Toyota’s lean production philosophy, based on kaisen, the concept of continuous improvements. When focusing on continuous marketing improvements, small incremental steps may be best. Marketing genius Jay Abraham, in his invaluable book Getting Everything You Can Out of All You’ve Got writes, “It’s amazing how few companies ever test any aspect of their marketing and compare it to something else.” Abraham suggests exper-
imenting and always testing a small sample before committing to a major marketing expenditure. Just devoting those few seconds every day to evaluating a marketing initiative could save a shop owner a lot of wasted money and perhaps zero in on one that really brings in the business! A good example is calling prior customers to see if there might be more need for repairs now, or perhaps a referral to a friend or family member. So what’s to test? A wrongly worded phone call could annoy the prior customer and do more harm than good. But some carefully planned test calls could reveal what approach www.autobodynews.com works best. And an astute shop owner OUT! in just a might putCHECK this test IT together few seconds. It’s worth a try.
To advertise call Advertising Sales at:
800-699-8251
e-mail: advertising@autobodynews.com www.autobodynews.com www.autobodynews.com CHECK IT OUT!
Rate of Auto Production Leads to Poorer Vehicle Quality
The recent surge in U.S. auto produc- from raw materials to marketing to tion is hurting vehicle quality because paper towels. automotive parts suppliers have less U.S. auto sales are on pace to time to fix problems that emerge on reach 15.6 million units this year, acthe line, Ford Motor Co.’s new global cording to J.D. Power and LMC Aupurchasing chief told reporters for Au- tomotive. Many analysts expect auto tomotive News. sales to exceed 16 million vehicles in Hau Thai-Tang, who led the 2014, possibly topping the 16.1 miloverhaul of Ford’s Mustang sports car lion vehicles sold in 2007. in 2005, also said the No. 2 U.S. auJ.D. Power and LMC forecast tomaker is exploring a cost-cutting that U.S. auto production will rise 3 strategy that requires Ford to tweak percent to 16.5 million next year. the design of its global models for speTo meet increased demand, supcific regions. pliers have less time tothe do preventative Give us your opinion on matters affecting industry. Auto parts suppliers, which maintenance on their equipment beclosed scores of factories during the fi- cause the are working to meet rising nancial crisis, are operating around- U.S. vehicle demand, Thai-Tang said. the-clock to meet consumer demand One of Ford’s vehicle programs publisher@autobodynews.com for cars and trucks that is marching to- has a “yellow” rating, meaning that ward pre-recession levels. too many suppliers are operating at “Everyone is running flat out and full tilt, Thai-Tang said, without namit’s contributing to some of the quality ing the vehicle. In the past, Ford execchallenges that we’ve seen,” said utives have said supply problems Thai-Tang, who oversees Ford’s $100 hampered the launch of the Lincoln billion global budget for everything MKZ sedan.
write us!
To advertise The source for timely call Joe Momber at: information that every Give us your opinion on matters affecting the industry. 800-699-8251 body shop needs!
write us!
e-mail:
jmomber@autobodynews.c
CALL 800-699-8251
www.autobodynews.co Startpublisher@autobodynews.com Your FREE Mail Subscription.
Surf with us for a Great Surf with us for a Great See the NEW Register Your E Deal on Collision Parts! Deal on Collision Parts! To advertise To advertise Free Monthly Autobody News Website The source for timely call Advertising Sales at: call Joe Momber at: information that every
www.autobodynews.com 800-699-8251 body shop needs!
Miles ahead with
Miles ahead in
e-mail:
$850,000 inventory... www.autobodynews.com
customer service...
www.autobodynews.com
Start Your FREE Mail Subscription.
Ask for Tee or Bill
800-699-8251
e-mail:
jmomber@autobodynews.com
CALL 800-699-8251
advertising@autobodynews.com
3 delivery trucks serving South Bay, L.A., Orange County Irvine to Brea To—advertise Parts@TimmonsLongBeach.com call Sean Hartman at: M-F 7-6, Sat 8-4 (No Delivery) See the
at www.autobod 800-699-8251
Ask for Miguel or Dana
NEW
3 delivery trucks serving South Bay, L.A., Orange County — Irvine to Brea Parts@TimmonsLongBeach.com M-F 7-6, Sat 8-4 (No Delivery)
Register Your Em
e-mail: Autobody News Website shartman@autobodynews.com
Free Monthly
www.autobodynews.com www.autobodynews.com
at www.autobody Forester
Passat CC
Toll Free
To advertise call Sean Hartman at:
1-888-489-5001 800-699-8251 Fax
562-426-3550 e-mail:
3940shartman@autobodynews.com Cherry Ave., Long Beach, CA 90807
www.autobodynews.com
Toll Free
1-888-489-5001 Fax
562-426-3550
3940 Cherry Ave., Long Beach, CA 90807 www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 59
Overall Parts Solutions is a NABC Top Level Member
Overall Parts Solutions, a leading parts procurement and logistics technology provider for the collision industry has become a top-level Diamond member of NABC. Based in Grand Prairie, Texas, Overall Parts Solutions provides a collision parts tool called OPSTRAX, a Web-based parts coordination system designed to work with major estimating and management systems. “We look forward to being an integral part of the National Auto Body Council,” said Nick Bossinakis, president of Overall Parts Solutions. “With the help of many of our partners in the collision industry, we have been quietly growing our business. As we now take our business to the next level, we believe we have an obligation to support the work of the National Auto Body Council, which will strengthen and benefit all of us in the collision industry. “ With the addition of Overall Parts Solutions, membership in the National Auto Body Council now includes 199 businesses and individuals representing all facets of the collision industry. OPS joins 26 other companies at the top-tier Diamond sponsor level.
Auto Data Direct Adds 3 New States to Database
Auto Data Direct, a Web-based motor vehicle record database, has added Washington, Virginia and Indiana to its lineup, bringing the company’s state count to 31. Company president Jim Taylor said, “This is an important milestone in the growth of our company’s services. ADD’s core business is to provide real-time motor vehicle inquiries to DPPAqualified companies. We’ve grown from Florida records only in 1999 to now working with 31 states. Our customers value a single point of access for records so that the process of finalizing transactions is easy, accurate, and can be completed from online without extra steps to retrieve the information from other sources.” The records provided by ADD include include owner, lien holder, and registration information as well as vehicle data such as make, model, year, tag and title number, and records are made available through a secure internet connection, based on a company’s qualifications under the Federal Driver’s Privacy Protection Act (DPPA). ADD also provides a national title pointer with information from the National Motor Vehicle Title Information System.
Sherwin-Williams Adds Full Feature Claims Portal
Sherwin-Williams Automotive Finishes A-Plus Network, in affiliation with VehicleOwnersGuide.com, has released a new dispatching system aimed at increasing car count for APlus shops and making claims management simpler for insurers. A-Plus shops will now have access to the provider’s Open Claims Gateway, a full feature claims portal that includes claims workflow, dispatching, estimate review, vendor e-Coupons, consumer translations and analytics. The new dispatching system is populated with the A-Plus Network’s leading collision repair facilities and will provide a turnkey repair network for insurance companies throughout the U.S. and Canada. The Open Claims Gateway portal will also dispatch cars to A-Plus shops, and then these facilities and insurance companies can use the system to manage the claims. “Open Claims Gateway will be provided free of charge to A-Plus Network facilities, and there is no contract to sign,” said Troy Neuerburg, director of sales excellence at SherwinWilliams. “This system offers numerous benefits.” It also includes the ability to generate a consumer estimate and an e-Coupon program.
Urethane Supply Company Offers New Welding System
The Urethane Supply Company recently released the 6057-C Nitro Fuzer Welding System, a new nitrogen welding technology that combines hot air and nitrogen welding. The Nitro Fuzer includes fine-flow control regulators on both the air and nitrogen sides. Those are combined with output pressure gauges and a flow gauge to give users control over the amount of gas that is used during the welding process. The system includes a pressure safety circuit to help prevent burn out in heating elements, an electrically actuated air-nitrogen switch, and a melt-proof silicone and fiberglass braided hot air welder hose. The Nitro Fuzer also features an integrated airless welding system to allow for smoothing out the nitrogen weld and for repairing thermoset polyurethane. “It’s a fraction of the cost and time of two-part epoxies,” said Kurt Lammon, president of the Urethane Supply Company. “An average six-inch repair costs about $2 for the plastic welding rod; with epoxy, it could cost over $30.” The Nitro Fuzer is shipped fully assembled and includes a variety of accessories and an instructional DVD.
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. Choose Original MINI Parts. Because you can’t repair your reputation. These Dealers Below Are Original MINI Parts Distributors:
Southern California
Bob Smith MINI Calabasas
888-215-7854 818-340-9455 Fax MINI of Escondido Escondido
800-544-4269 760-291-2878 Fax
Nick Alexander MINI Los Angeles
800-800-NICK 323-583-4109 Direct ALEXANDERMINI.COM
Northern California
East Bay MINI Pleasanton
888-686-4580
M-F 7:30-6; Sat 7:30-5
South Bay MINI Torrance
310-939-7342 310-939-7343
©2013 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
60 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Original BMW Parts
bmwusa.com
Original Thought #78
YOU ONLY GET ONE CHANCE AT THE FIRST REPAIR. When you repair a BMW, use the parts that are identical to those used in Series production – and just as reliable. Choose Original BMW Parts and Accessories. Because you can’t repair your reputation.
Northern California BMW Centers East Bay BMW
Pleasanton (888) 686-4580 M-F 7-6; Sat 7:30-5; Sun 10-5
Niello BMW
Sacramento (916) 486-1299
Southern California BMW Centers BMW of Escondido
Escondido (800) 544-4269
BMW of Murrieta
Murrieta (888) 805-2393 FAX (951) 698-2086 www.bmwofmurrieta.com
BMW of Palm Springs Palm Springs (760) 324-8314
Bob Smith BMW
Calabasas (818) 340-9640 FAX (818) 340-9455 parts@bobsmithbmw.com
Center BMW
Sherman Oaks (818) 990-9518
Long Beach BMW
Signal Hill (800) 794-4269 (562) 427-5494 www.longbeachbmw.com
Sonnen BMW
Weatherford BMW
New Century BMW
Sterling BMW
San Rafael (415) 482-2040
Alhambra (626) 576-2867 www.ncbmw.com
Berkeley (800) 995-9269
Newport Beach (949) 645-8729
Nick Alexander BMW
Los Angeles (800) 800-NICK (323) 583-4108 Direct parts@alexanderbmw.com www.alexanderbmw.com
South Bay BMW
Torrance (310) 939-7342 (310) 939-7343
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 61
Historical Snapshot
—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.
November Retrospective on the Collision Repair Industry with John Yoswick
20 years ago in the collision repair industry (November 1993) “My time away from the industry this year made me more aware than ever that many of the people who keep telling us how we can improve the claims process, improve parts ordering, improve productivity, improve turn-around time and cut car rental costs don’t know the first thing about how our shops operate or half the steps required to properly repair a damaged vehicle. Computers and software programs are great, but computers don’t take the nuts and bolts out of a fender, and they can’t comprehend the fact that a left door can’t be replaced with a right door, even if the part numbner on the invoice is the correct part number. “It seems that many insurance companies—and some shops—have bought into the promise that one or another computer system will solve many or all of their problems. There is always one direct repair program or another telling shop owners that something will greatly expedite the claims handling process…All these promises sound great on paper or in panel discussions, but they don’t do the repair work.” ► from a column by Bobby Johnson, at that time the owner of B&J Collision in Jefferson, Texas
15 years ago in the collision repair industry (November 1998) PPG has done a comprehensive study of over 2,000 collision repair facilities. Here is a snapshot of some of the statistics: The average labor rate: $34 an hour. Average gross profit per hour per technician: $45.63 (top 25 percent), $32.57 (middle 50 percent), $19.69 (bottom 25 percent). Labor efficiency (hours sold versus available hours): 154 percent (top 25 percent), 118 (middle 50 percent), 82 percent (bottom 25 percent) PPG’s Rich Altieri said it is likely that repair opportunities will continue to decrease. His prediction: By 2006, 40 percent of today’s shops will cease to exist. If the collision industry is a $24 billion business, 24,000 shops doing $1 million a year in sales would take care of the market. ► As reported in Hammer & Dolly. Indeed in 2006, there were about 36,000 shops, 40 percent fewer than the 60,000
Altieri said there were in 1998. (Last year there were about 34,500.) The average labor rate nationally last year was $45.43, up 33 percent since 1998, but below 41 percent cumulative rate of inflation during that period; to keep up with inflation, the national average last year would have had to have been $47.89.
10 years ago in the collision repair industry (November 2003) Collision repairers who are part of State Farm’s “Select Service” or “Service First” direct repair programs have been lauding the insurer for the way it administers its claims management process for vehicle repair. It’s a process that technicians and shop owners are saying puts trust in collision repair professionals. Repairers have often been frustrated with how insurers handle the claims management process. For years they have argued that many insurers are overly involved in the process and don’t let repairers do their job without telling them how it should be done. But State Farm is taking a different approach. “To put it simply, State Farm is letting the experts—collision repair professionals—do what they do best,” says Don Keenan, owner of Keenan Auto Body in Clifton Heights, Penn. Keenan said State farm respects its Select Service collision repair shops’ experience and expertise and “as a result, we’re freed up to do the best possible job.” The Society of Collision Repair Specialists earlier this year issued a press release praising State Farm for what the organization is calling a “professional approach to claims management.” “I have received countless calls from members commenting on the positive relationship with State Farm, SCRS Executive Director Dan Risley said. ► As reported in Auto Body Repair News (ABRN). The most recent national survey allowing shops to rate insurers with regard to reimbursement policies and claims handling efficiency still found State Farm at the top, but with a score of 64.8 (out of 100), down from 93.4 in 2003. In 2003 it had a nearly 30point edge over its closest competitor. Now two other insurers are within 4.2 points of knocking State Farm out of the top spot. SCRS this past year has been among the most vocal critics of State
62 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Farm’s implementation PartsTrader, and Risley, now with the Automotive Service Association, wrote to State Farm in September saying the insurer’s mandated use of a vendor “that solely financially benefits State Farm is more dictatorship than partnership.”
5 years ago in the collision repair industry (November 2008) Minnesota shop owner and NACE chairman Darrell Amberson said (at the event’s opening sessions) that the collision industry should also be paying close attention to increased efforts by automakers to gain design patents on crash parts, which could limit competition from non-OEM parts manufacturers. He said that while design protection is a “fundamental right” for any industry, it could also drive up parts costs, also leading to more total loss vehicles. He called on the estimating system providers to bring more automation, sophistication and automaker information
to the systems to help them evolve from being “just a guide to a tool that could be used to blueprint jobs.” The systems, he said, currently are too incomplete and subject to interpretation. “Can you imagine a world where we didn’t have to spend so much effort negotiating, debating (and) looking for non-included operations? I think whether an insurer or repairer, we could probably increase our life expectancy if we didn’t have to deal with this,” Amberson said, drawing laughter and applause from the crowd. Overall, Amberson, despite the struggling economy and the specific challenges the collision repair industry faces, is optimistic about the opportunities for those shop owners who embrace new technology and processes, diversify their business, and think of themselves as business people, not repairers. ► from Autobody News coverage of the 2008 International Autobody Congress and Exposition (NACE)
What are the Best Parts of Driving? Mazda Parts.
Order your Genuine Mazda Parts from one of these parts specialists in your area.
SO. CALIFORNIA
Galpin Mazda Van Nuys
818-778-2005 Fax 818-778-2090 www.galpin.com
SCRS Adds Consolidation Tracks to SEMA Repairer Driven Education SCRS has included several tracks in its Repairer Driven Education (RDE) series at the SEMA Show that will address the consolidation trend in the industry. “SCRS is continually looking at ways that we can help collision repair business owners succeed in the marketplace, and we realize that what defines success varies for the wide array of repairers operating in today’s shifting landscape,” said SCRS Chairman Ron Reichen. “We suspect that the private equity entering our industry is going to continue to fund acquisitions, and that means independent collision businesses are likely to be interested in one of two models for success: they will either position themselves to compete against consolidation or position the business to sell for the highest value.” SCRS has put together several sessions, including a panel of well-known industry veterans who made headlines of their own during the sale of their previous businesses. The panel, “If I Knew Then What I Know Now – Lessons Learned Selling My Body Shop,” will be held from 3 to 5 p.m. on Thursday, Nov. 7. Panelists will discuss things they learned in the process that can help attendees interested in proceeding down a simi-
lar path best prepare themselves. Subject matter experts include: • Aaron Clark, former owner of Collision Solutions, sold to ABRA Auto Body & Glass • Pat O’Neill, former owner of 911 Collision Centers, sold to Caliber Collision Centers • Dan Bailey, former owner of A&B CARSTAR, sold to CARSTAR Franchise Systems • Mike Anderson, former owner of Wagonwork Collision Centers, sold to Pohanka Collision Centers “There is a great deal of combined knowledge among these experts, who will be offering first-hand insight into how to navigate the process of valuing and selling your business,” said SCRS Executive Director Aaron Schulenburg. “That said, it is very important to point out that we have a great deal of optimism that independent collision repair owners can thrive in today’s marketplace as well, and have also defined specific programs that address solutions for them.” Perhaps none of the programs address these solutions more specifically than Wednesday afternoon’s session entitled, “Competing in a Consolidated Marketplace.” This session will be led by Tim Ronak of AkzoNobel and will take place from 3 to 5 p.m.
Ronak will discuss the most current consolidation information available as of November 2013 and suggest the path consolidation may take and the impact it might have on the industry at large. He will compare collision consolidation to other industries to identify strategies that were successful within those industries when consolidation reshaped their business model. Participants will have better understanding on how to navigate in this environment and insight into survival strategies for their business. On Friday from 12:30–2:30 p.m., Scott Biggs of the Assured Performance Network will host a session entitled, Creating a Parallel Universe: Reinventing the Collision Repair Industry, focusing on profit, prosperity and business survival in the decades ahead. Attendees will see alternative versions of the future based upon the plans and agendas of insurers, MSOs and OEMs. The 2013 RDE series is sponsored by industry organizations such as SEMA, PPG Automotive Refinish, GM Genuine Parts, BASF Refinish, Ford Motor Company, AkzoNobel, Hertz, Axalta Coating Systems, Goliath Carts, PBES (a division of AAIA), LKQ Corp., SATA, Spanesi Americas, Sherwin-Williams and AASP.
SEMA Supports Ban of E15
SEMA is supporting legislation (S. 344) introduced in the U.S. Senate to ban the sale of gasoline containing 15% ethanol. The bill would overturn actions taken by the U.S. Environmental Protection Agency (EPA) two years ago to permit ethanol levels to rise from 10% (E10) to 15% (E15). The agency is only requiring a gas pump warning label to alert motorists that E15 could potentially cause equipment failure for vehicles older than model-year 2001. “This legislation is necessary to protect auto enthusiasts by preventing damage to older vehicles and high-performance specialty components,” said SEMA Vice President of Government Affairs Steve McDonald. “SEMA applauds Senators Roger Wicker (R-MS) and David Vitter (RLA) for their efforts to correct by statute a flawed decision by the EPA. Unless enacted into law, E15 may soon appear at a gas station near you.” Ethanol increases water formation that can then create formic acid and corrode metals, plastics and rubber. Older cars and certain highperformance specialty parts are not constructed with corrosion-resistant materials or able to tolerate the higher temperatures at which E15 may burn.
Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards.
Shift into Genuine Nissan and Infiniti OEM Parts
GENUINE SERVICE & PARTS
The following dealers stock genuine parts for your Nissan or Infiniti repairs. S. CALIFORNIA
DOWNEY NISSAN DOWNEY
888-444-1355 (562) 334-1195 Fax Billy Smith-Parts Manager M-F 7-6, Sat. 7-5
www.downeynissan.com
INFINITI OF BAKERSFIELD
BAKERSFIELD
661-617-2020 (661) 617-2039 Fax M-F 8-5
www.infinitiofbakersfield.com
METRO NISSAN INFINITI OF MONTCLAIR MONTCLAIR
800-243-5575 (909) 625-4087 Fax Ask for Rita or Steve Large inventory available
MOSSY NISSAN
NATIONAL CITY
800-300-7251
(619) 474-4347 Fax Largest Inventory in San Diego www.mossyparts.com
NISSAN OF BAKERSFIELD
BAKERSFIELD
888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5
www.nissanofbakersfield.com
N. CALIFORNIA
DIRITO BROTHERS NISSAN WALNUT CREEK
800-865-5792 (925) 934-8459 & (925) 934-8221 Fax
SHINGLE SPRINGS NISSAN
SHINGLE SPRINGS
530-676-0444
(530) 677-6528 Fax www.shinglespringsnissan.com
LITHIA NISSAN FRESNO
800-870-7779
559-436-6040 Parts Direct 559-438-0183 Fax M-F 7-6, Sat. 8-1
Etaylor@lithia.com www.lithia.com
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 63
Autobytel Acquires Assets of Advanced Mobile LLC
AudaExplore™ Introduces GoTime Line of Driver Focused Mobile Solutions
Allstate Says Usage-Based Insurance Increasing
NHTSA Recommends Back Up Cameras for New Cars
Autobytel has purchased Advanced Mobile LLC, a provider of mobile communications services for the automotive industry. Autobytel said it will offer OEMs and dealers the ability to connect with consumers using a preferred method of text communication, via a secure platform that protects consumers’ privacy. Autobytel will also offer dealers a comprehensive suite of mobile products including apps, websites, Send2Phone capabilities and text message marketing. Advanced Mobile, founded in 2006 and based in King of Prussia, PA, markets a full range of advanced mobile technologies that facilitate communication between dealers and car buyers on smart phones and tablets. This platform will be the core of an array of mobile services Autobytel will offer to its dealer and manufacturer customers, and will also be available to consumers through Autobytel’s websites. “Last year, more than 326 million U.S. wireless subscribers sent more than 2 trillion text messages,” said Jeffrey Coats, president and CEO. “This acquisition enables us to offer the industry the mobile resources it requires to successfully communicate with car buyers in a preferred manner,” Coats said.
Allstate reports that drivers that are signed up for its usage-based insurance program, Drivewise, will register more than one billion miles driven this month. Allstate said that Drivewise is launching in Kentucky and Montana this month, making the usage-based insurance product available in 22 states including New York and New Jersey. Allstate’s usagebased auto insurance (UBI) product measures mileage, hard braking, excessive speed, and the time of day when a customer drives. Using that data, Allstate calculates insurance premium savings for each customer using its telematics technology. Customers can receive savings equal to 10 percent of premium. After the first six months of use, savings are based on driving performance calculated from the data collected. The company said that seven of every 10 Drivewise customers save money through the program and no one receives an increase. Of the drivers earning a discount, the average savings is 14 percent per vehicle. Allstate reports that roughly, a third of all new customers enroll in the Drivewise program, where it is available.
AudaExplore™ has announced the launch of GoTime, a new line of driver-focused mobile solutions that streamline and accelerate a range of partial and total loss claims and repair processes while driving an improved and optimized vehicle owner experience. “There’s a perfect storm of change hitting the market—from a new generation of vehicle owners to the pervasiveness of mobile devices to newly available self-service offerings that enable new ways of engaging vehicle owners never before possible until now,” said Neal Lowell, AudaExplore’s vice president of product management and innovation. “Our GoTime line of mobile solutions empowers insurers and repair facilities to address these market dynamics head on, with features that take business efficiencies and the vehicle owner experience to the next level.” The GoTime family of mobile solutions is powered by AudaNet, AudaExplore’s global, intelligent, nextgeneration claims and collision repair platform. GoTime product highlights include: ● GoTime Autosource. Drives immediate accuracy and quicker per-
The National Highway Traffic Safety Administration (NHTSA) has included a recommendation in its New Car Assessment Program (NCAP) that encourages manufacturers to equip new vehicles with a rearview video system. NCAP includes a fivestar rating system for raising consumer awareness about crashworthiness and rollover safety information. The NCAP update is separate from NHTSA’s proposed rule to update Federal Motor Vehicle Safety Standard No. 111 (Rear View Mirrors) to require all new passenger cars be equipped with a rearview camera system. The equipment is intended to prevent accidents by alerting drivers when pedestrians are behind the vehicles. Under a law passed in 2008, the NHTSA had until 2011 to issue the rule to be phased-in by 2014. While the law permitted sensors, mirrors or other devices to provide drivers with rearward information, the NHTSA determined that a camera and dashboard display screen system was the best solution. The automakers have generally objected to not being provided more flexibility in determining cost-effective ways to achieve the goal.
64 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
formance for insurance staff and independent appraisers. According to AudaExplore, it is the only smart phone app with advanced vehicle identification, one-thumb conditioning, and the market-driven valuations of Autosource, AudaExplore’s valuation service. AudaExplore says the intuitive design of GoTime Autosource empowers appraisers to easily complete comprehensive vehicle-side inspections. ● GoTime Repair. Designed to enable peak performance for collision repair facilities through better repair tracking and shop management. By combining AudaExplore’s AutoFocus body shop management system (BMS) with AudaExplore’s AutoWatch collision repair tracking software on smart mobile devices, the company states that users can quickly and easily optimize operations, reduce cycle times and maximize customer communications. ● GoTime Appraiser. AudaExplore calls this feature an all-in-one mobile solution that enables appraisers to efficiently and effectively manage appraisal appointments and vehicle repairs while providing vehicle owners with an optimized customer experience. Going beyond just photos,
GoTime Appraiser features drag-anddrop schedule updates, integrated turn-by-turn directions, single-click customer communications, AudaExplore’s patent-pending vehicle photo guides, and location-specific repair statuses and alarms. “With the mobile technology age comes new ways of increasing the efficiency and productivity of appraisers and collision repair experts in the field, as well as delivering immediate and optimal communications to vehicle owners,” added Lowell. “We are fanatical about providing our customers’ customers with the best experience possible and are proud to bring the first three GoTime solutions to market, building upon our commitment to delivering continuous innovation and integrated intelligence for the automobile claims market.” In other news, the company announced Oct. 8 it will expand its global automotive data footprint with the addition of Chrysler vehicle manufacturing build data, for vehicles in the US., Canada and Mexico. The expansion brings Chrysler vehicle build data accuracy to every country where Chrysler vehicles are sold through AudaExplore’s AudaVIN™ vehicle identification technology.
THESE DEALERS are GENUINE WHOLESALE PARTS SPECIALISTS. C AL IFOR NIA
Elk Grove Toyota ELK GROVE
916-405-4700 800-952-5307
916-405-8045 Fax Mon. - Fri. 7am - 7pm; Sat. 8am - 5pm www.elkgrovetoyota.com
Precise fit and finish, easy installation and a limited warranty direct from KIA — all genuine advantages of genuine KIA parts. Your local KIA retailer has all the parts you need.
SO. CALIFORNIA Car Pros Kia Carson
Toll Free (800) 553-0940
Kia vehicles are at the forefront of today’s automotive design. Unique
Parts Direct
(310) 221-9101
details in our Kia vehicles demand precise
(310) 816-9811 Parts Fax #1 Wholesale Dealer Serving Southern California
engineering and fit. Kia customers deserve Genuine Kia collision replacement parts
Citrus Kia
to keep them satisfied for
Ontario
years to come. Our brand’s
(800) 583-7042
popularity continues to
(909) 390-0948
grow meaning more Kia
(909) 390-0982 Fax
customers for your shop.
scunningham@citrusmotors.com www.citrusmotors.com
Always specify Genuine Kia Parts for the
M - Sat 7:00am - 6:00pm Free Local Delivery Ask for Ike, Jimbo, Chris, Juan, Sean, Jeff Se Habla Español
highest level of fit, finish and quality. Contact your local Kia dealer today for
First Kia
assistance and delivery of your parts.
Simi Valley
1-888-531-4785
NO. CALIFORNIA Concord Kia
(805) 306-1085 Fax Free Local Delivery M-F 7:00am - 6:00pm Sat 8:00am - 5:00pm Se Habla Español Ask for David or Julio
Elk Grove Kia
Concord
Sacramento/Elk Grove
(925) 685-2952 Fax M-F 8:00am - 5:30pm Sat 9:00am - 1:00pm
(916) 753-1045 Fax
(888) 811-3058
Dublin Kia Dublin
Wholesale Direct
(925) 828-8251
(925) 829-2941 Fax M-F 7:00am - 6:00pm Sat 8:00am - 4:30pm
(888) 244-3404 (916) 753-1040
www.elkgrovekia.com
Momentum Kia
San Leandro Kia San Leandro
(510) 347-3010 (510) 347-3003
(510) 895-1027 Fax Free Local Deliveries Shipping Available
North County Kia Escondido
(760) 945-9939 (866) 888-3074 Fax
parts@autogrp.com www.northcountykia.com M-F 7am - 6pm In San Diego Over 10 Years
Vallejo
(707) 638-1825 (707) 554-2637 Fax
bvahl@momentumautogroup.com M-F 8am - 5pm Sat 8am - 3pm
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 65
BMW Asks California Court to Strike Class Action in Leaking Sunroof Case
BMW has asked the U.S. Northern California District Court to strike the proposed state class action status of a lawsuit filed against the company by two BMW owners who claim that drainage tubes installed to pull water away from vehicles’ sunroofs do not properly work, leading to water damage. Plaintiffs’ attorneys claim the class should include California residents who have “owned or leased any BMW X5 series vehicles, X3 series vehicles and 5 series vehicles.” In response, BMW’s attorneys claim in court documents, “First, the purported class is not ascertainable because it includes many persons who have no claims against BMW North America. Those putative class members whose cars have never manifested the alleged defect, those whose sunroofs leaked for reasons other than the alleged defect and those whose cars are covered under warranty—and thus eligible for repair at no cost to them— cannot claim they suffered any cognizable injury and therefore lack standing.” The attorneys also claim, “The class includes many vehicles purchased more than ten years ago, meaning that the transactions at issue are well outside
the statutes of limitation of, for example, plaintiffs’ CLRA (three year), UCL (four year) and breach of express warranty (four year). At a minimum, persons whose claims are outside the statutes of limitation should be excluded from any proposed class.” BMW’s attorneys also point out that it is difficult to identify owners who have “experienced water damage because of the alleged defect, rather than other reasons—including lack of maintenance, accident damage or even leaving the sunroof or trunk open before a rain storm.” Citing the certified pre-owned BMW warranty, attorneys claim that the automaker “cannot be held liable for ‘failing to company with the warranty’ or ‘refusing to repair’ if putative class members did not comply with their own obligations under the warranty or if the warranty does not provide coverage for the damage claimed. Determining whether such compliance exists will require individualized inquiries precluding class certification as a matter of law.” BMW’s attorneys conclude by claiming, “Plaintiffs cannot represent the putative class specified in their complaint because the class is simply too board and faces overwhelming in-
dividualized inquiries and because plaintiffs cannot satisfy basic typicality requirements. These deficiencies are plain, even at the pleading stage. For the foregoing reasons, the class allegations therein should be stricken.” Attorneys for plaintiffs’ Monita Sharma and Erica Anderson claim “BMW designed, manufactured, distributed, sold and leased various makes and models of BMW vehicles that contain a serious design defect that significantly impacts both the safety and value of its vehicles. Specifically, numerous models of BMW vehicles manufactured during the class period were designed so that certain vital electrical components known as SDARS, RDC, and PDC modules, are located in the lowest part of the vehicles’ trunk. … Because BMW decided to place these vital electrical components in what is essentially the lowest part of the vehicle (the spare tire well under the trunk), they are especially prone to water damage that can be caused through the normal and ordinary use of the vehicle. “When this water damage occurs, the vehicles become inoperable and pose a serious safety risk to those who experience this problem. Although these components are highly suscepti-
ble to water damage, BMW provides no warnings or advisories to BMW owners about the location of this vital equipment or the importance of keeping the vehicle’s trunk compartment free of liquids,” they continue. The attorneys point out that drainage tubes are installed to pull water away from the sunroof. “Unfortunately, these sunroof drains were designed in such a way that they are prone to become clogged with dirt, debris, leaves, and other naturally-occurring materials. When these tubes become clogged, they come loose or leak into the trunks of the vehicles. These leaks, which eventually flood the trunks of the vehicles, cause the vital electronic components contained at the bottom of the vehicles’ trunks to short-shutting off certain components of the automobile necessary for driving and creating a potential safety risk,” the attorneys allege. BMW had asked the court earlier to dismiss the lawsuit by Sharma and Anderson. The court had not issued any decision at press time.
www.autobodynews.com CHECK IT OUT!
ORIGINAL GM PARTS RTS FOR RA
PROFESSIONAL FINISH Call Any of These Wholesale Parts Dealers.
AU TO M OT I V E G R O U P San Fernando Valley
We are YOUR Source for GM Parts in Los Angeles!
Serving Contra Costa, Alameda, San Joaquin Counties. An Authorized Saturn Wholesaler.
Extensive inventory — Delivery trucks are in your area Accountable, responsible & unconditionally dedicated to excellence
818-832-1660 Fax: 818-832-1692 nrparts@rydells.com Mon-Fri: 6:00 AM - 7:00 PM Saturday: 8:00 AM - 5:00 PM
www.gmgoodwrench.com ©2013 GM Corp. All rights reserved
66 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
Wholesale Direct: 925-828-8251 Fax: 925-829-2941 Hours: Mon. - Fri. 7am - 6pm Sat. 8am - 4:30pm 4200 John Monego Ct., Dublin, CA 94568 Chevrolet•Cadillac•GMC•Buick•Pontiac Oldsmobile•Saab•Saturn•Hummer
National Associations
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.
Virginia-Based Automotive Recycling Association Does More Than Green the Industry with Chasidy Rae Sisk
CEO Michael Wilson explains their mission: ARA aims to further services and programs to increase public awareness of conserving the future through automotive recycling and to promote the industry’s value to the automotive consumer. ARA encourages aggressive environmental management programs to assist member facilities in maintaining proper management techniques for fluid and solid waste materials generated from the disposal of motor vehicles. ARA offers many benefits to their members, such as networking opportunities, legislative representation, marketing tools and even discounts on liability insurance and training through their own university, ARAU. Their website features resources for members, and ARA publishes weekly electronic newsletters as well as a bimonthly magazine, Automotive Recycling, to provide members with needed information on the latest in-
Environmental concerns have become a major priority in the collision repair industry and removal and reutilization of recyclable material. The Automotive Recyclers Association (ARA) is playing an increasing role in this movement. Since it was established in 1943, ARA has been the only trade association representing the automotive recycling industry. It is dedicated to efficiently removing and reutilizing automotive parts as well as seeing to the safe disposal of inoperable motor vehicles. ARA has expanded to repreMichael Wilson sent approximately 1250 companies through direct membership, plus over 3000 additional companies worldwide through their affiliated chapters in 43 states and 14 other countries.
So. California NO RTH HIL L S
LO NG B EA CH
818-778-2005
1-888-489-5001
FAX: 818-778-2090 www.galpin.com
dustry trends, training and technological updates. According to Wilson, ARA serves members by offering a broad spectrum of programs and benefits for all sizes of automotive recy-
cling operations: “business models for professional automotive recyclers include both full and self-service platforms, and our clients range from do-it-your-selfers to independent repair shops to large insurance based collision repair facilities.” ARA also maintains two foundations for the benefit of their members and the industry at-large. Their Educational Foundation hosts a library of
industry-specific training courses which are available through the ARA University. ARA’s Scholarship Foundation promotes continuing education by awarding over $30,000 in scholarship grants to the children of their members and their members’ employees. Discussing the challenges ARA faces to maintain operations, Wilson lists branding, consolidation within the industry, the exportation of salvage vehicles out of the country, the unlevel playing field at salvage auctions and with unlicensed or illegally operating entities, and advancements in technology. He says the industry needs to overcome the competition and barriers erected by auto manufacturers seeking to protect their market share. ARA also deals with the common problems of adapting to the changes inherent as new generations come of age, such as how to get them involved
WE WANT TO BE YOUR SOURCE FOR REAL VOLKSWAGEN PARTS.
FAX: 562-426-3550 parts@timmonslongbeach.com
LO S AN GEL ES
213-747-7246
FAX: 213-222-1272 Ask for Carlos or Erasmo
No. California
WA L N U T CR EEK
1-800-VOLKSWAGEN FAX: 925-934-0786 diritovw@aol.com
We have the Real Volkswagen Collision Parts that make your job easier and your customers happier. With your skills and our parts, every collision repair will be a bang-up job. And that will add up to more repeat business for both of us. Call your order in today. These dealers are Genuine VW Parts Wholesale Specialists.
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 67
with the association and its leadership. Wilson explains their current focus: “the professional automotive recycling industry is not immune to the effects of the type of seismic events that have transformed the American automotive sector over the past few years. Our members must be equipped to adapt to the effects of this change in order to meet emerging markets in new and creative ways. We are also focused on providing our members with the skills and knowledge to meet the challenges that new, more complex motor vehicles bring to our facilities. A recent Polk report detailed that the number of vehicles older than 12 years has increased by more than 20 percent, and that percentage is expected to continue to rise for at least the next five years. These numbers predict a significant wave of inoperable motor vehicles that will be arriving soon at automotive recycling facilities throughout the United States. As an industry, we must seize the opportunities these increasing inventories create for the proper and efficient removal and reuse of ‘green’ automotive parts.” ARA leadership held a strategic planning retreat earlier this year the purpose of which was “to articulate a future that realizes the full potential of members’ businesses. ARA is working continually to engage industry partners that want to help advance the automotive recycling profession and, at the same time, try to bridge gaps between us and those entities that have minimal interest in supporting policies that promote the utilization of OE recycled parts.” Currently, ARA is planning for their upcoming 70th annual convention which will be held November 6 –9 at the Sheraton Convention Center in Phoenix, AZ. They are planning a robust program of educational and training opportunities for their members, such as the Certified Automotive Recyclers (CAR) program. ARA is currently working on the new CAR program in order to emphasize the industry’s environmental stewardship. ARA also looks forward to hosting automotive recyclers from around the globe for the International Roundtable on Automotive Recycling which will take place immediately after their convention. Recently, ARA partnered with CIECA in order “to leverage expertise and implementation tools of both par-
ties, develop standards and advance new business platforms. CIECA develops technology electronic communication standards that allow better connectivity within the industry. This partnership is increasing parts sales and reducing risk.” Other pending projects include ARA9001, a quality control system specifically tailored to the automotive recycling industry that is based on elements of the association’s current Gold Seal program and continued recognition and utilization of the Green Recycled Parts trademark. The association also recently released ARA Direct, an online auction plat-
form where members can purchase vehicles from various insurance companies, wholesalers, fleets, franchise dealers and others in a manner that significantly changes the means by which members’ vehicle acquisition demands are met and increases their inventory. Though these matters are more than enough to keep ARA occupied, they work in the regulatory and legislative sphere as well. In addition to working with the EPA to make storm water permitting appropriate and effective for professional automotive facilities plus regularly educating members on OSHA standards, ARA has been working with the DOJ to increase compliance and enforcement of the National Motor Vehicle Title Information System (NMVTIS). Their work with DOT to combat the use of counterfeit airbags has led to ARA’s involvement in legislation on this topic as educate consumers about recycled OEM airbags. Wilson believes this legislation also “benefits body shop owners because they will be able to better identify counterfeit airbags and also understand the cost-effective option of using non-deployed recycled OEM airbags in repairs.” ARA also supports evaluations on the need for and cost of new regulations while keeping an eye on how these changes impact jobs which ben-
68 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
efits collision repair shops. The current motor vehicle safety recall legislation under consideration in the Senate applies to rental fleets, “but ARA is taking the opportunity to educate policymakers on the need to include recall data into third party inventory management systems so recyclers can identify through their electronic inventory searches whether a particular part has been recalled; this benefits body shop owners because this would guarantee that the recycler wouldn’t unknowingly sell a recalled part to a repairer,” says Wilson. Additionally, ARA has taken an interest in metal anti-theft legislation to prevent duplicative mandates on professional automotive recyclers. Though recyclers are already regulated by sales and reporting requirements, anti-theft legislation proposed in Congress protects city and municipality infrastructures as well as body shops and consumer assets. Wilson admits there are always challenges when trying to get legislation signed into law, beginning with misrepresentations about recycled parts.
In order to educate legislators about the industry, ARA must combat those opposed to the proposed legislation, presenting a challenge since these competitors often have significantly more resources. Wilson believes that OEMs need to embrace parts reutilization at the design stage. He says, “technological advances are eliminating past barriers to foster robust international commerce. Access to parts data that only automotive manufacturers can provide is crucial to enable the auto body industry as well as automotive recyclers to compete in emerging technologies and business platforms; this is a need both our industries share. Only with this important data can the automotive recycling profession efficiently and accurately identify OE recycled part matches for repairs and total loss determination calculations.” Another challenge is the expansion of parts technology as electronic parts are all being added to the mix of collision and mechanical parts inventory, necessitating even more specific data to appropriately describe for reuse. Though ARA has not taken a formal position on PartsTrader, Wilson notes, “we continue to monitor
volvo Genuine parts Right Part. Right Price. Right Now.
Your Source for Wholesale Volvo Parts So.California
Galpin Volvo VAN NUYS
818-778-2005 818-778-2090 Fax www.galpin.com
Trust your order to the collision parts specialists at these fine Dealers
and evaluate the program’s rollout. Several ARA recyclers are members on the PartsTrader Advisory Board, and ARA invited PartsTrader representatives to provide a presentation on the program at our upcoming convention.” ARA is also monitoring initiatives related to Right to Repair, and Wilson explains, “ARA has long argued that car owners and independent repair shops need full access to the information, parts and tools necessary to accurately diagnose, repair and re-
program vehicles. ARA staff has been actively coordinating with our affiliated state chapters in New England to monitor R2R initiative on the state legislative level as well as continued to dialogue with stakeholders involved in the national Right to Repair conversations.”
ARA 9113 Church St Manassas, VA 20110 888-385-1005 www.a-r-a.org
Allstate Plans to Increase its MA Workforce by 130 Agents
Allstate Insurance Co. plans to significantly increase its Massachusetts workforce by the end of 2014 by hiring 130 more insurance agents. Allstate opened its first Massachusetts office in October 2012 and has since expanded to more than 18 locations throughout the state with more than 40 employees. The company plans to open another 30 offices in the next year. Several other national insurance companies, including Geico and Progressive, have also entered the Massachusetts market in recent years.
Sierra Subaru of Monrovia
SO. CALIFORNIA
Monrovia (626) 359-8291 (626) 932-5660 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@sierracars.com www.sierraauto.com
Timmons Subaru
Long Beach (888) 489-5001 (562) 426-3550 Fax Tue. 7-8; Mon., Wed.-Fri. 7-6; Sat. 8-4, Sat. No Delivery Parts@timmonslongbeach.com www.timmonssubaru.com NO. CALIFORNIA
The following dealerships are eager to serve your needs. Call your local Subaru collision parts specialist today! SO. CALIFORNIA
Galpin Subaru
Santa Clarita (818) 778-2005 (818) 778-2090 Fax www.galpin.com
Kearny Mesa Subaru San Diego (800) 548-9124 (858) 300-3331 Fax Mon.-Fri. 7-6 cguth@kmhyundaisubaru.com www.kearnymesasubaru.com/parts
Marin Subaru
San Rafael (415) 257-4690 (415) 257-4684 Fax Mon.-Fri. 7:30-5:30; Sat. 8-4 marinmazdasubaru@yahoo.com www.marinsubaru.net
Subaru of Glendale Glendale (818) 550-1500 (818) 549-3850 Fax Mon.-Fri. 7-6; Sat. 8-4 parts@glendalemitsu.com www.subaruofglendale.net
Maita Subaru
Sacramento (877) 484-4870 (916) 484-4876 (916) 484-4878 Fax Mon.-Fri. 7:30-5:30 www.maitasubaru.com
BASF Joins ASA as Newest Corporate Member
BASF is the newest corporate member of ASA. “BASF is excited about the changes at ASA. They’re off to a fresh start with a new leadership team and are strengthening relationships within the collision repair industry. A good example is the combined NACE/I-CAR/CIC conference in Detroit next year. We believe collaborations like this can help the collision industry thrive,” said Joe Skurka, manager, OEM and Industry Relations. Visit www.ASAshop.org or call (800) 272-7467, ext. 361.
Camelback Subaru ARIZONA
Phoenix (866) 641-9880 (602) 776-6407 Fax Mon.-Fri. 7-6; Sat. 8-4 wholesaleparts@camelbackdifference.com
AutoNation Subaru Scottsdale Scottsdale (480) 425-2950 (480) 425-2948 Fax Mon.-Fri. 7-6; Sat. 7-4
Subaru Superstore of Chandler Chandler (877) 443-3239 (480) 268-2402 (480) 621-3805 Fax Mon.-Fri. 7-6; Sat. 7-5 subaruparts@shopsubaru.com www.shopsubaru.com
Shingle Springs Subaru Shingle Springs (530) 676-0444 (530) 677-6528 Fax www.shinglespringssubaru.com
Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 69
AUTOBODY MARKETPLACE
location in AUTO • Great Bakersfield Ca. BODY • 5000 sqft full equipment gross per year SHOP •• 500,000 250,000 for business only $ $
FOR SALE
Give us your opinion on mat Call Emil: 661.369.3653
write
www.autobodynews.com
YUMA, AZ
publisher@autob
CHECK IT OUT!
AUTO BODY SHOP FOR SALE
499,000 or $150,000 lease option
$
Great location in Commercial Center 7720 sq. ft. of building~29,982 sq. ft. of land
Compare our $130 and less gallon kits of clears against the competitors $400 kits of clear and see the difference every time.
To advertise call Advertising Sales at:
House of Klear 818-504-4933 Sun Valley − Valencia − Maui Santa Ana − Van Nuys
advertising@autobodynews.com
office: 928.344.8300 or cell: 928.920.7520 Don Woodke at don.combrokers@aol.com
The source for timely information that every body shop needs!
800-699-8251 e-mail:
Find out for yourself why so many painters love Southern Polyurethanes.
CALL 800-699-8251
www.autobodynews.com
Start Your FREE Mail Subscription.
www.southernpolyurethanes.com
See the NEW
WHEELS AMERICA
Autobody News Website
Nine Locations in the USA!
• Thousands of OEM Remanufactured Wheels in Stock 101 • Lifetime Guarantee • CNC Quality • Powder Coated
www.autobodynews.com
888-4-FIX-RIM $109 to repair with this ad www.fixrim.com
To advertise call Sean Hartman at:
Advertise in our CLASSIFIED SECTION 800-699-8251 e-mail: for $50 per column inch! shartman@autobodynews.com 800-524-1504 www.red-viper.com
www.autobodynews.com Place an ad in our AUTOBODY MARKETPLACE section of Autobody News.
Give us your opinion onltedesco@autobodynews.com matters affecting the industry. 800-699-8251 www.autobodynews.com CHECK IT OUT!
write us! publisher@autobodynews.com
Looking for Good Collision Personnel? •1,262 Collision Techs resumes online •1,295 Painters resumes online •1,177Want Estimators Mgs resumes online to& Contribute to •11,256 Mechanical Tech resumes online
write
ACTautostaffing.com or 727-733-5600
Call or e-mail now for rates: 800-699-8251 or ltedesco@autobodynews.com
70 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com
th
publisher@autob
Promote your business w an exclusive article featur
$UL]RQD .H\VWRQH $XWRPRWLYH 3KRHQL[
.H\VWRQH $XWRPRWLYH 7XFVRQ
/.4 RI $UL]RQD
&DOLIRUQLD .H\VWRQH $XWRPRWLYH 2QWDULR
.H\VWRQH $XWRPRWLYH )UHVQR
.H\VWRQH $XWRPRWLYH 6DQ 'LHJR
.H\VWRQH $XWRPRWLYH 6WRFNWRQ .H\VWRQH $XWRPRWLYH /RV $QJHOHV
/.4 6RXWKHUQ &DOLIRUQLD
/.4 1RUWKHUQ &DOLIRUQLD /.4 &HQWUDO &DOLIRUQLD
<RX¶UH &RYHUHG :H 3URPLVH Â&#x2021;
Â&#x2021;
Â&#x2021;
2XU FRPPLWPHQW WR TXDOLW\ DOORZV XV WR EDFN RXU UHF\FOHG DQG DIWHUPDUNHW FROOLVLRQ SURGXFWV ZLWK OLIHWLPH ZDUUDQWLHV
6SHFLDOL]HG 3DUWV 3ODQHW
1HYDGD /.4 RI 1HYDGD
/.4 LQGHPQL¿ HV OLFHQVHG DXWR UHSDLU VKRSV WKDW SXUFKDVH DQG LQVWDOO DQ\ /.4 UHF\FOHG 2(0 DIWHUPDUNHW RU UHPDQXIDFWXUHG SURGXFW RQ SULYDWH SDVVHQJHU YHKLFOHV DQG OLJKW WUXFNV
7KH JURXQGEUHDNLQJ /.4 3URPLVH RI 3URWHFWLRQ SURGXFW OLDELOLW\ LQGHPQL¿ FDWLRQ PHDQV WKH DXWR UHSDLU VKRS RZQHU LV SURWHFWHG IURP FODLPV OLDELOLWLHV DFWLRQV DQG FRVWV WKDW PLJKW UHVXOW LQ LQMXU\ RU GHDWK GXH WR DQ\ GHIHFW LQ WKDW SURGXFW
.H\VWRQH $XWRPRWLYH /DV 9HJDV
/.4 5HQR
6FDQ WKH 45 FRGH ZLWK \RXU VPDUWSKRQH RU YLVLW XV DW ZZZ ONTFRUS FRP IRU PRUH LQIRUPDWLRQ
/.4 /.4 &253 _ .H\VWRQH $XWRPRWLYH Â&#x2039; /.4 &RUSRUDWLRQ 1$6'$4 /.4
www.autobodynews.com | NOVEMBER 2013 AUTOBODY NEWS 71
95% Same Day Order Fill Rate. We Stock the Parts You Need to Serve Your Customers Quickly. Four Delivery Vehicles. Serving All of Los Angeles Metro Area and Nearby Cities. Ten Knowledgeable Parts Specialists with an Average of 17 Years of Experience Ready to Serve You. Get the Correct & Complete Order the First Time.
Nick Alexander MINI 6201 S. Alameda St. Los Angeles, CA 90001
Toll Free:
800-800-NICK
Original MINI Parts
Wholesale Direct:
Parts Hours: Monday-Saturday: 8 - 7 Sunday: 10 - 6
Fax Line:
ALEXANDERMINI.COM
323-583-4109 323-277-8213
Š2013 MINI, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks. 72 NOVEMBER 2013 AUTOBODY NEWS | www.autobodynews.com