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Attorney John Arthur Eaves and Shop Owner Bill Fowler Appear on Memphis Radio to Discuss MDL Suit by Chasidy Rae Sisk
On Tuesday, August 26, attorney John Arthur Eaves and shop owner Bill Fowler, of Bill Fowler’s Bodyworks in Southaven MS, appeared on the Drake and Zeke Show, a popular early morning radio talk show in the Memphis, TN area. The reason for their guest appearance was to explain the MDL lawsuit to consumers and educate them on their rights during the collision repair process in hopes of raising awareness about this important issue impacting collision repair facilities across the country.
To begin, the radio hosts summarized the lawsuit they planned to discuss. In January 2014, Eaves filed a complaint against insurers on behalf of 21 collision repair shops. Though the lawsuit began in MS, it has spread and continues to gain traction so that it is now a national lawsuit, involving six states, which will be tried by a single judge in FL. Multiple insurers have been implicated in the complaint as the habit of insurer steering is an industry-wide problem. Fowler pointed out that steering has become so pervasive in the indusSee Memphis Radio, Page 9
Congress Expresses Support of Repair Industry in Response to Owners’ Trip to Washington D.C. by Stacey Phillips, Assistant Editor
Sixty-five collision repair shop owners recently traveled to Washington D.C. to educate Congress about the struggle body shops face to protect consumers when providing a complete and safe repair. The majority of them were part of a Nationwide Anti-Trust Multi-District Litigation filed earlier this year against multiple insurance companies in several states. (See also other cover story this page.) After more than 150 meetings with representatives and senators over a three-day period, the result was an outpouring of support for an industry faced with the challenge of insurance compa-
nies dictating how they run their body shops.
VOL. 32 ISSUE 11 NOVEMBER 2014
MSO Consolidations in CA Heat Up Industry by Stacey Phillips, Assistant Editor
Last month we reported on the final closing of the purchase of Holmes Body Shop’s seven locations by Cooks Collision Centers. The Holmes acquisition was initiated in May 2012 and concluded with the seventh Holmes location closing in September of this year, after our last issue went to press. With 35 locations in CA, Cooks is the largest independently owned and operated collision repair organization in the state. But Holmes is not even the latest medium-sized MSO to be acquired by larger consolidators in California. In September, Service King Collision Repair Centers acquired Marco’s Collision Centers, also a medium-sized MSO having seven locations in
Southern California. Shortly thereafter Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. Is there some kind of ‘rule of sevens’ at play here? More seriously, we wanted to know what forces were driving the acquisition of small to mid-size MSOs and why they seem more attractive than individual shops for acquisition. Nearly 20 years ago David Roberts, the co-founder and former Chairman of the Board for Caliber Collision Centers, wrote an article predicting the future of consolidations in the collision repair industry. It was entitled Shop Consolidation: Is it Inevitable? Undoubtedly, Roberts anSee MSO Consolidations, Page 4
Pro Spot is Ford’s Rotunda Supplier of the Year Carlsbad’s Pro Spot is very proud to be awarded the supplier of the year award by the Ford Motor Company Rotunda Program. Pro Spot was approved by Ford to supply aluminum repair equipment to the Collision Repair Program for repairs on the new 2015 Ford F-150 all-aluminum body truck. The Ford Rotunda Dealer Equipment Program is a national program endorsed by Ford
Matt Parker with House Speaker John Boehner See Congress Support, Page 60
(l to r) Mike Berardi (Ford Director of Service Engineering Operations), Ashley Olsson (Pro Spot Director of Communications), Ron Olsson (Pro Spot Founder & President) and Steve DeAngelis (Ford Manager of Technical Support Operations). Photo Credit: Ashley Olsson
Motor Co. to their dealer base, selling service and body shop repair equipment. The approved equipment included: the SP Pulse MIG welders— the most sold Ford-required MIG
welders in North America, the Aluminum Dent Repair Stations, Fume Extractors, and the SPR Riveter; all of which contributed to the winning of the Supplier of the Year award. “We would like to thank Team Pro Spot for all of their hard work and all of our customers that have supported us in purchasing our aluminum repair products. This means a lot to our team at Pro Spot,” said Ron Olsson, Pro Spot President, “I’m overwhelmed and very honored to win this award from Ford. We have been working very hard and appreciate the trust in our equipment and of course, the overwhelming amount of orders we have received for the aluminum program.” The 2015 F-150 is revolutionizing the repair industry by mainstreaming aluminum repair. With the hard work by Ford Motor Company in designing a repairability-focused, all-aluminum body F-150, shops across the country are getting prepared to repair the top selling vehicle. Pro Spot is proud to be recognized as a supplier of quality aluminum repair equipment to the Collision Repair Program and the 2015 Ford F-150 truck. Pro Spot looks forward to continuing to design innovative equipment for shops and technicians to repair vehicles back to OE standards.
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2 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
Contents Arizona Body Shop Connects With
Customers and Community . . . . . . . . . . . . . 8
ASA-AZ’s Management Training Road Show . . 38
Norman Morano is Our Newest Regional Sales Manager
Car-O-Liner Participation Enhanced
With Social Media . . . . . . . . . . . . . . . . . . . 56
Chevrolet Brings Back the Corvette Stingray
in Time for SEMA . . . . . . . . . . . . . . . . . . . . 10
Attanasio - Fontana, CA, Shop Thinks BIG
Chevrolet Debuts Pickup Concept Trucks
CAA Relaunches Website with New
Chrysler Recall of SUVs . . . . . . . . . . . . . . . . . 46
on its 26-Year Anniversary . . . . . . . . . . . . . 18 Features, Design, Content. . . . . . . . . . . . . . . 6
Collision Repair Instructor Inspires Students,
Paves Way for SEMA . . . . . . . . . . . . . . . . . 47
Mike Miller Appointed National Director of Certified Network Development for
Assured Performance. . . . . . . . . . . . . . . . . 51
MSO Consolidations in CA Heat Up Industry . . . 1
Pro Spot is Ford’s Rotunda Supplier of the Year. . 1 COLUMNS
Attanasio - Body Shops are Tapping into
the Persuasive Power of Video . . . . . . . . . . 30
for SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Congress Expresses Support of Repair
Industry in Response to Owners’ Trip
to Washington D.C. . . . . . . . . . . . . . . . . . . . 1
Daimler Chairman Dr. Dieter Zetsche to Deliver Keynote Address at 2015
Consumer Electronics Show. . . . . . . . . . . . 50
Energy Transfer in Today’s Vehicles Makes Measuring, Multi-Point Pulling More
Important . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Ferrari Recall of 458 Italia and Spider Models. . 46 Ford Recalls 850,000 Cars for Airbag
& Seat Belt Glitch . . . . . . . . . . . . . . . . . . . . 58
Attanasio - Chicago Body Shop’s Anti-Texting
Honda and SolarCity Partnership Will Create
Attanasio - Gas Monkey Garage and Dodge
Hot-Pink Roadster Makes Rental
Franklin - Are You Marketing to Merely Survive
I-CAR Launches Two New Refinish Courses . . 56
Luehr - Lean Implementation Strategies . . . . . 24
Lamborghini and IMSA Extend Partnership . . . 40
Campaign Catches Fire. . . . . . . . . . . . . . . . 26 Recruit Mötley Crüe to Rock Dallas. . . . . . . 34 or Are You Trying to Grow?. . . . . . . . . . . . . 44
Sisk - ASA-IL’s 2014 CAN Conference
Attracts More Attendees, Falls Short
$50 Million Fund for Solar Projects . . . . . . . 44 Reimbursement Red Hot. . . . . . . . . . . . . . . . 6
Iowa Pulls Plug on Tesla Test Drives . . . . . . . . 52 Mercedes Will Train 26,000 in the
Brand’s New Culture. . . . . . . . . . . . . . . . . . 52
New Legislation Introduced to Simplify
Country to Discuss Insurer Interference
Nitroheat Launches New Product at SEMA . . . 58
Sisk - SafeCars Hosts Meetings Around the
and National Lawsuits . . . . . . . . . . . . . . . . 36
NATIONAL
2015 Hyundai Genesis Preview Before
SBA Loan Applications . . . . . . . . . . . . . . . . 52
Omix-ADA to Give Away 2014 Jeep Wrangler
at SEMA. . . . . . . . . . . . . . . . . . . . . . . . . . . 48
PPG Waterborne Shop Conversions
Exceed 10,000 . . . . . . . . . . . . . . . . . . . . . . 48
SEMA Debut. . . . . . . . . . . . . . . . . . . . . . . . 44
Quest Donates $280,000 in Paint &
CC TRU Parts Network . . . . . . . . . . . . . . . . 59
Quotes Pros Website Offers Insurance
Briefing in Washington D.C. . . . . . . . . . . . . 46
Roush-Modified 2015 Ford Mustang
Shipments in Q4. . . . . . . . . . . . . . . . . . . . . 56
SEMA: Sales of Auto Parts & Accessories
Sheet Capabilities in North America . . . . . . 40
Senate Subcommittee Looks Into Effectiveness
Aftermarket Auto Parts Alliance Joins
AkzoNobel Hosts Sustainability Media Alcoa Forecasts Record Auto Sheet
Aleris to Add Aluminum Automotive Body
Attorney John Arthur Eaves and Shop Owner Bill Fowler Appear on Memphis Radio to
Discuss MDL Suit. . . . . . . . . . . . . . . . . . . . . 1
Abrasives to CREF . . . . . . . . . . . . . . . . . . . 38
Rates Information. . . . . . . . . . . . . . . . . . . . 56 To Be Revealed at SEMA. . . . . . . . . . . . . . . 54
Reach $33B . . . . . . . . . . . . . . . . . . . . . . . . 48
of the National Highway Traffic Safety
Administration . . . . . . . . . . . . . . . . . . . . . . 55
Takata Airbag Recall May Include GM Vehicles . 52
AudaExplore’s Annual Total Loss Summit
Three Types of Parts Account for 50%
Auto Glass Safety Council Updating
Toyota Moves to Aluminum Hood for
Axalta Program Provides Shop Owners
Toyota Produces Urban Utility Concept Vehicle . 51
Held in Boston, MA . . . . . . . . . . . . . . . . . . 37
Certification Exam . . . . . . . . . . . . . . . . . . . 58
of Sales Online . . . . . . . . . . . . . . . . . . . . . . . 3
Camry in 2018 . . . . . . . . . . . . . . . . . . . . . . 52
With More Data . . . . . . . . . . . . . . . . . . . . . 58
Universal Technical Institute to Open
Group, Largest Privately-Owned Auto
WIN 2015 Membership Drive . . . . . . . . . . . . . 55
Berkshire Hathaway to Acquire Van Tuyl
Dealership Group . . . . . . . . . . . . . . . . . . . . 59
Cadillac to Introduce New Technology
on 2017 Models. . . . . . . . . . . . . . . . . . . . . 54
Car Donation Helps Army Veteran
Get Back on the Road. . . . . . . . . . . . . . . . . 55
Long Beach Campus . . . . . . . . . . . . . . . . . 10
World Steel Dynamics Predicts Short Gains for Aluminum Before High-Strength
Steels Take Over. . . . . . . . . . . . . . . . . . . . . 50
Yoswick - DRPs 20 years ago, Early CCRE,
Contact Norm at: nmorano@autobodynews.com to discuss your advertising needs.
Three Types of Parts Account for 50% of Sales Online
In terms of dollars spent on automotive replacement parts through online purchasing, or e-tailing, three categories represent half of the dollar volume in 2013, according to E-Tailing in the Automotive Aftermarket from the Auto Care Association. The top three product categories are braking systems (primarily pads and shoes); ignition and engine (fuel pumps, alternators, ignition coils, etc.);
Indexof Advertisers
of Collision Goals . . . . . . . . . . . . . . . . . . . . 28
Autobody News is pleased to introduce Norman Morano who joined our team in October as an Advertising Sales Manager. Norm has been a Sales Director for 13 years handling Hammer & Dolly, New Jersey Automotive, New England Automotive, AASP-News/MN and Wisconsin Automotive News. He has also sold exhibitor space for the past four years at the Northeast Automotive Trade Show. Norm graduated from the University of California at Berkeley in 1982 with a BS degree in Environmental Studies. After college he travelled extensively before attending Law School at Rutgers University School of Law. He was admitted to the bar in New Jersey and Pennsylvania and has kept his NJ bar license active. Born and raised in Nutley, NJ, Norm has also lived in Orono, ME, Berkeley, CA, and Sydney, Australia. Before concentrating on automotive advertising he had his own sign company building his sales contacts throughout NY, NJ, PA, CT and DE. When he isn't working, Norm enjoys biking, yoga, surfing, motorcycling, movies, pizza and the New York Times. He has been a resident of the Jersey Shore for the past 26 years. Contact Norm to discuss your advertising needs at nmorano@autobodynews.com.
ADP Revises Labor Times . . . . . . . . . . . . . 14
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies Assistant Editor: Stacey Phillips Online Editor: Victoria Antonelli Contributing Writers: Tom Franklin, David Brown, John Yoswick, Janet Chaney, Toby Chess, Ed Attanasio, Chasidy Sisk, David Luehr Advertising Sales: Joe Momber, Sean Hartman, Bill Doyle, Norman Morano (800) 699-8251 Sales Assistant: Louise Tedesco Art Director: Rodolfo Garcia
and glass, mirrors and lamps. The E-Tailing in the Automotive Aftermarket digital study analyzes the online retail market for sales of aftermarket parts, and serves as the foundation for the Auto Care Association to provide a unified estimate of online sales within the aftermarket. For pricing and more information, visit www.autocare.org/etailing.
Audi Wholesale Parts Dealers . . . . . . . .54 Automotive ID . . . . . . . . . . . . . . . . . . . .10 AutoNation Chrysler-Jeep-DodgeRam of North Phoenix . . . . . . . . . . . . .8 Axalta Coating Systems . . . . . . . . . . . . . .5 Bill Luke Dealerships . . . . . . . . . . . . . . .23 BMW MINI of Escondido . . . . . . . . . . . .42 BMW Wholesale Parts Dealers . . . . . . .53 Bob Smith BMW . . . . . . . . . . . . . . . . . .37 Bob Smith MINI . . . . . . . . . . . . . . . . . . .37 Capitol Subaru . . . . . . . . . . . . . . . . . . . .45 Car-Part.com . . . . . . . . . . . . . . . . . . . . . .6 Certified Automotive Parts Association (CAPA) . . . . . . . . . . . . . .39 Classifieds . . . . . . . . . . . . . . . . . . . . . . .62 Colortone Automotive Paints . . . . . . . . .14 Completes Plus . . . . . . . . . . . . . . . . . . .19 Courtesy Chevrolet . . . . . . . . . . . . . . . . .9 DCH Chrysler-Jeep-Dodge-Ram . . . . . .18 DCH Kia of Temecula . . . . . . . . . . . . . . .18 Del Grande Dealer Group . . . . . . . . .12-13 Dent Magic Tools . . . . . . . . . . . . . . . . . .22 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . . . . . .7 Drew Hyundai . . . . . . . . . . . . . . . . . . . .50 Earnhardt Buick-GMC . . . . . . . . . . . . . . .4 East Bay BMW-MINI . . . . . . . . . . . . . . . .24 Eco Repair Systems of North America, LLC . . . . . . . . . . . . . .25 Elk Grove Toyota . . . . . . . . . . . . . . . . . .26 Enterprise Rent-A-Car . . . . . . . . . . . . . .36 Equalizer Industries, Inc. . . . . . . . . . . . .28 Ford Wholesale Parts Dealers AZ, CA, NV & UT . . . . . . . . . . . . . . . .49 Galpin Motors . . . . . . . . . . . . . . . . . . . .41 GlasWeld Systems, Inc. . . . . . . . . . . . . .20 Glenn E. Thomas Dodge-Chrysler-Jeep .31 Glenn E. Thomas FIAT . . . . . . . . . . . . . .31 GM Wholesale Parts Dealers . . . . . . . . .58 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .32-33
Serving California, Nevada, Arizona and Utah. 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. ©2014 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
New Talent Joins the Autobody News Sales Staff
Hyundai Wholesale Parts Dealers . . . . .54 Infratech L.L.C. . . . . . . . . . . . . . . . . . . .16 Innovative Tools & Technology, Inc. . . .64 Kearny Mesa Subaru-Hyundai . . . . . . .43 Kia Motors Wholesale Parts Dealers . . .61 LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Los Gatos Luxury Cars . . . . . . . . . . . . .38 Maita Subaru . . . . . . . . . . . . . . . . . . . . .34 Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Mark Kia-Mitsubishi . . . . . . . . . . . . . . . .28 Matrix System Automotive Finishes . . .15 Mazda Wholesale Parts Dealers . . . . . .60 Mercedes-Benz . . . . . . . . . . . . . . . . . . .21 MINI Wholesale Parts Dealers . . . . . . . .52 Mitsubishi Wholesale Parts Dealers . . .48 MOPAR Wholesale Parts Dealers . . . . .35 Mossy BMW of Vista . . . . . . . . . . . . . . .47 Mossy Volkswagen . . . . . . . . . . . . . . . .44 Motor Guard Corp. . . . . . . . . . . . . . . . . .6 Nicolosi Imports . . . . . . . . . . . . . . . . . . .22 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . . . . .59 PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Pro-Spray . . . . . . . . . . . . . . . . . . . . . . . .11 Puente Hills Subaru . . . . . . . . . . . . . . . .40 Replica Plastics . . . . . . . . . . . . . . . . . . .14 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . . . . .29 SATA Spray Equipment . . . . . . . . . . . . .27 Shingle Springs Nissan-Subaru . . . . . .51 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . . . . .46 Sonnen BMW . . . . . . . . . . . . . . . . . . . . .20 South Bay Volkswagen . . . . . . . . . . . . .30 Subaru Wholesale Parts Dealers . . . . . .57 TG Products, Inc. - The Rail Saver . . . .26 Toyota Wholesale Parts Dealers . . . . . .56 Valspar Automotive . . . . . . . . . . . . . . . .17 Volkswagen Wholesale Parts Dealers . .55 Volvo Wholesale Parts Dealers . . . . . . .56
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 3
Continued from Cover
MSO Consolidations
swered, “the answer is ‘yes.’ ” Fast forward to the present time Roberts told Autobody News, “In the last 24 months nearly $3 billion of sales volume in the collision repair industry has changed ownership, which is 10 percent of the entire industry.” Roberts is currently the Managing Director and Automotive Services Group team leader for FOCUS Investment Banking. He said there are several reasons for this sudden acceleration, including the availability of acquisition capital and the number of MSOs looking to sell. “There are more than 44 MSOs with $20 million or more in revenues with another 110 between $10 and $20 million.” “Consolidators are looking to get bigger and achieve more scale, which has rewards for the acquirers as well as for insurers and consumers,” said Roberts, whose company has offices in Atlanta, Los Angeles, and Washington D.C. “Large insurers have increasingly rewarded the best performing consolidators and large MSOs with more volume. Cars are repaired faster, with less hassle, and more predictable costs and quality.” We asked Lillian Maimone, former CEO and co-founder of Marco’s Collision Centers, for her perspective on the industry. She was excited about her upcoming retirement, saying, “Marco and I have nothing to do and all day to do it, and we like it that way. It’s a wonderful sense of freedom and peace of mind.” “Seeing the trends in the new cars and the new equipment that was Lillian Maimone necessary to repair these cars, I saw ourselves having a very difficult time competing against the consolidators. We knew it would cost my company hundreds of thousands of dollars in new equipment and training,” While running Marco’s, which was established in 1972, Maimone said her primary function was ensuring the company was ready and geared for the future. “My focus was on dealing with possible threats and opportunities,” she said. In order to stay informed about
Vincent Romans of MSO Specialists The Romans Group on Consolidation Autobody News asked Vincent Romans, the founding partner of The Romans Group LLC, to comment on the recent MSO consolidations. Romans has over 30 years of consulting and operating experience with domestic and global enterprises. The Romans Group LLC, established in 1996, provides business, market, financial, and strategic development advisory services to the property and casualty auto physical damage insurance, automotive services, property restoration, and related supply chain segments. Why are we seeing an increase in the number of consolidators acquiring MSOs and do you think this trend will continue? We are at the early stage of consolidation, contraction, convergence and constructive transformation in the collision repair industry. Within this industry construct, private equity has stepped up its interest in acquiring MSO consolidators. This interest is backed by unprecedented private equity and strategic buyer cash seeking investment opportunities in the MSO model which today provides strong cash flow, growth through both organic and acquisition growth and shorter term investment cycles that ultimately drive higher valuations. How will it affect the collision repair industry? We will continue to see large multiple location operators (MLOs) be acquired by the four MSO consolidators. The still
trends in the industry, Maimone regularly attended conferences, talked to industry leaders and listened closely to what others were saying in forums such as the Mitchell webinars, for example. “I went to Pepperdine’s business school [and used those skills in analyzing the industry.] I spent a lot of my time looking at what is happening in the industry and how it was affecting my company,” she said. Eventually she and husband Marco decided they “didn’t want to be in the game anymore.” When employees asked why they sold, she explained, “We were the powerhouse in our area. We were the big fish in the little pond.” With the changes in the industry and larger MSOs coming in, she said they realized how increasingly difficult it would be to compete. For example, the benefits they gained as a midsize DRP over the years were no comparison to the gains made by the national DRP programs. She invited her employees to consider the buying opportunities with the national DRP accounts, rather than local ones. “I figured whatever percentage See MSO Consolidations, Page 42
4 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
fragmented industry will continue to contract to a more normalized number of required collision repairers throughout the United States over the next decade. Today, three collision repair segments, ≥$20M, ≥$10-20M and the franchise multiple location, MLO, operators represent 24% of the US collision repair market. I expect this market share for these three segments to grow over the next three years. Additionally, we should shortly see the first MSO with annual revenue of $1.0B. Through September YTD 2014 we have seen $650.0M in annual revenue transferred through multiple location transaction acquisitions among the four MSO consolidators. What are the relevant issues facing the collision industry today? There are numerous trends and prevailing conditions that offer both risk and opportunity for repairers today. No one trend or prevailing condition has the impact that the confluence of these prevailing trends and conditions have. It is when one understands that these individual prevailing conditions are part of a confluence of many individual dynamic prevailing trends and conditions, that you start to realize the order of magnitude and the exponential impact they have and will continue to have on the new world order of collision repair within the broader auto physical damage ecosystem. We will continue to see how one company's transformation is an-
other's disruption, while one company's innovation is another's disintermediation. Some of the short and long term conditions include, but are not limited to changing macro-economic influences, globalization, consolidation causing industry structural changes, telematics and the movement to an integrated electronic claims process model, accident avoidance technology associated with semi-autonomous and eventually autonomous vehicles (VEHBOTS), private equity and strategic buyers, predictive analytics, down turn in accident frequency, MSO performance contracts, hybrid claims management models, insurers embracing the MSO model, trained technician shortage, parts procurement, repair segmentation, urbanization and others too numerous to mention here. How does an independent shop fit in the picture? Independent high performance, brand recognized shops will continue to provide solid alternatives to the large MSO consolidator model especially with insurance companies that embrace their own customized repair models and prefer to have non-MSO providers in the market or a mix of MSO consolidators and local market independents. Additionally, specialty repairers who perform any number of niche market or high value repair alternatives will have a place in the future collision repair industry. See MSO Consolidations, Page 42
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Hot-Pink Roadster Makes Rental Reimbursement Red Hot Rental reimbursement – an inexpensive auto insurance option that covers the cost of a rental car – is the focus of a humorous marketing initiative sponsored by Enterprise Rent-A-Car in California. Enterprise Rent-A-Car has created “Rosie the Rental Reimbursement Roadster,” a hot-pink sedan and a replica of the vehicle used in Enterprise’s My 13 Days video. Last year, the video was produced to illustrate some of the amusing challenges drivers sometimes face – such as driving a teenager’s car for nearly two weeks – when vehicles are being repaired after an accident. The video’s title highlights a little-known fact: Damaged vehicles are in the shop for an average of 13 days after an accident, leaving those who don’t have reimbursement coverage to borrow family cars, hitch rides or pay out-of-pocket rental fees of up to $400. “With more than 1.6 million views on YouTube, the ‘My 13 Days’ video has proven to be both fun and memorable,” said Mary Mahoney, Vice President-Insurance Replacement Division for the Enterprise Rent-A-Car brand. “As a result, our Sacramento team decided to really bring the concept to life locally, so that Rosie can at-
tend insurance agents’ classes, collision center openings, fund-raisers and vendor fairs, as well as other company events.” Enterprise’s “My 13 Days” video and microsite not only are helping raise awareness about rental reimbursement overall, but also educating policyhold-
Rosie the Rental Reimbursement Roadster. Photo credit: Enterprise Rent-A-Car
ers so that they don’t have to worry about borrowing family cars, hitching rides or paying out-of-pocket rental fees if their vehicle is in the shop. For example, many consumers don’t realize that one year of rental reimbursement coverage can cost less than a one-day car rental. As U.S. News & World Report stated in a personal finance article last year: “You might also want to consider rental coverage. Auto insurance policies often allow you to add on cover-
6 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
age for renting a vehicle while your car is getting fixed after an accident, and if you only have one car, that kind of coverage can pay off.” In that same article, Richard Arca, senior manager of pricing at Edmunds.com and a former insurance adjuster, estimated it typically adds only about $20 for six months to a policy, noting: “Every customer who didn’t have rental coverage wished they had it.” Furthermore, according to the J.D. Power 2013 U.S. Auto Claims Satisfaction Study, providing exceptional customer service is an important element in driving customer loyalty and advocacy. “That’s another strategic reason to support our insurance partners and help remind their policyholders about this simple, budget-friendly option,” Mahoney said. “It’s a win-win, because it benefits individual consumers, which in turn enhances satisfaction levels with the insurance industry for the long term.”
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CAA Relaunches Website with New Features, Design, Content
The California Autobody Association (CAA), the nation’s largest state association dedicated to the collision repair industry, has launched a new website for its 1,000+ members. The new site can be found online at www.calautobody.com. According to CAA Executive Director, David McClune, “We wanted something simple to navigate through, yet packed full of information that will be useful to our members. We created a “Member’s Only” section which gives CAA members access to statewide labor rate information and legal resources. Development was spearheaded by Mark Claypool of Optima Automotive which also created a “Member’s Only” legislative group on LinkedIn that will actively keep our members informed of the most pertinent things going on in Sacramento and Washington that affect their businesses.” There is a way for businesses to join online, an interactive calendar of events, a consumer advocacy section, chapter information, hot links, direct access to regional managers, and a “Find A CAA Shop” feature for consumers. Ongoing news is highlighted in the site’s Blog. The site can also be fully translated into Spanish with a simple click on the Mexican flag at the top right corner of the page.
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Arizona Body Shop Connects With Customers and Community by Stacey Phillips, Assistant Editor
When a Northern Arizona body shop owner heard that the local school district needed a travel bus restored for their students, he said that he didn’t hesitate to help out. It took two months and 100 hours of work removing dents and painting the bus, but Jim Bachler, owner of Vince’s Auto Body, said it was well worth the time. “In business I believe we should give back to the community. What you get in return is always more than you give,” said Bachler, who currently has two locations for his business, one in Sedona and one in Camp Verde, and is planning to open a third within a year. One of Bachler’s employees in Camp Verde told him that the director of support services for the Camp Verde School District, Stacey Barker, wanted to convert one of their school buses to a travel bus for athletic trips. The district offers 13 different sports every fall, winter and spring. Barker had a vision for the bus, which included painting it blue, and worked closely with Vince’s Auto Body to plan what the bus would look like. One of his goals was to ensure that student athletes had a sense of
pride when they stepped off the bus. He said that he has found that it elevates their performance. “I believe in community involvement and bringing the school and community together,” said Barker. During the past summer seven employees at Vince’s Auto Body shop
“I didn’t grasp the magnitude of the project until we started,” said Bachler, who explained it was the equivalent of painting five small cars. Bachler started working at Vince’s Auto Body in Sedona as a body and paint technician in 1986 when the shop first opened and became general man-
Rod Consalvo, the lead trip driver for the Camp Verde Unified School District, is pictured with the travel bus
worked on the project, which involved 50 hours of body work and 50 hours of painting. After the work was completed, Alvey Signs in Cottonwood took care of the striping for the bus, spelling out “Camp Verde Cowboys” on the outside, which is the district’s mascot.
8 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
ager in 1993. When Vince Lansink put the shop up for sale in 2004, Bachler and his wife decided to purchase it. They realized there was also a need for a body shop in the Camp Verde area. “The closest one was 20 miles away and we were already pulling work from that area,” said Bachler. “The op-
portunity presented itself in a good way and we decided to make an investment.” The Camp Verde location was opened a year ago and focuses on RV collision repair. Recently they started building another facility on Highway 260 that will concentrate on auto collision repair and is expected to be ready within a year. Bachler has been active in the community for more than 25 years and often shows his support by sponsoring local charities and little league teams. The business donated a minivan to the family of David Zenot, a local police officer who worked in the area for more than 25 years and died in 2012 from brain cancer. Bachler said that he enjoys being able to give back to the community that has supported his business. Vince’s Auto Body has been voted “Best Auto Body Shop” by Kudo’s Magazine every year since 1993 as well as by Red Rock News and Market Surveys of America since 2006. “I attribute it to customer care and concern for the repairs we do for people,” he said. “It takes a lot in a small community to stay on top of the repairs. It’s not about the money, it’s about doing things right.”
Continued from Cover
Memphis Radio
try that insurance companies often attempt to take control at the accident scene, moving the damaged vehicle against the consumer’s wishes and trying to coerce the vehicle owner to agree to having the repair completed at one of their DRP shops. Although the consumer has the right to choose where their vehicle is repaired and it could easily be argued that the insurers are taking advantage of their customers, it is easier and cheaper for insurance companies when they get their way, as they often do in these situations. When questioned about why insurers are so adamant about steering despite the possibility of being sued, Eaves noted that insurers profit greatly by this practice as the benefits to them outweigh the risk; this is the reason his pending lawsuit and other lawsuits are necessary. Fowler reminded listeners that this is a battle the collision repair industry has been fighting for 25 years, but it has come to a point where quality repair shops will go out of business if nothing is done to “rectify this travesty.” Moving on to the topic of after-
market and OEM parts, Fowler said that his opinion has changed. Previously, he believed it should be the customer’s choice whether or not to use aftermarket parts, but because most consumers don’t understand the differences and implications of using these parts, he now feels that it is the collision repair professional’s responsibility to educate the consumer. He reiterated that “testing proves that aftermarket parts do not always perform the same as genuine OEM parts.” In response to the radio hosts’ question about whether “imitation parts” have been implicated as the cause of any accidents, Eaves unambiguously stated that the use of poor quality aftermarket parts has caused a multitude of accidents across the country. Unfortunately, few people are aware of this concern because these settled cases included confidentiality agreements to prevent them from becoming public knowledge. Furthermore, as many parts, including windshields, tires and airbags, directly affect the safety of the vehicle, investment in parts is more crucial than ever. According to Eaves, YouTube features many videos on how aftermarket parts affect vehicle safety, and documentaries are currently being filmed on this issue as well.
Eaves is not optimistic that the lawsuit will go to trial quickly, but he is prepared to fight this battle for quite some time if necessary, noting “this is bigger than just a lawsuit; it’s a campaign!” Part of this campaign includes asking Congress to support legislation to restore the proper balance of power between the insurance industry and the collision repair industry. As precedent for his request, Eaves cited the Consent Decree, a similar situation in the 1960s when insurance companies tried to dictate which parts could be used and how much they would pay for repairs. The U.S. Department of Justice sued the insurance industry, and the resulting ruling was that insurers cannot force collision repair facilities to compromise the quality of their repairs. Thus, the balance of power between these two industries was restored if not enforced. Eaves said he hopes that his current efforts will yield the same results for the modern collision repair industry. Directing his attention to what consumers can do to aid in this battle, Fowler reminded consumers that they have the right to choose the facility that repairs their vehicle, and he encouraged them to act on this right by taking their car to whichever shop they prefer. He
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cautioned that it is a red flag if the insurer insists on dictating where the vehicle is repaired, and this could indicate that the insurer is engaging in other unsavory practices, such as mandating which parts are used in the repair. Though vehicle manufacturers provide specific repair information to maintain a vehicle’s safety, Fowler said he has experienced firsthand that some insurers will demand used parts be installed, even though both he and the manufacturer warned that such a practice could compromise the vehicle’s safety. Despite insurers’ tendency to use intimidating in their interactions with both consumers and repair facilities, Fowler states, “there are shops that try to do what’s right, but they are vilified, disparaged and essentially squeezed out of business.” Eaves agrees that it is imperative for consumers to trust the facility repairing their vehicle as their lives are being placed in the hands of these professionals, and a poor quality repair jeopardizes the safety of the consumer, their family and anyone else on the highway. The importance of finding a trustworthy repairer is so great that Fowler founded www.safecars.us, a website that promises to place the conSee Memphis Radio, Page 29
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Chevrolet Brings Back the Corvette Stingray in Time for SEMA The SEMA Auto Show isn’t just an event for established aftermarket companies to showcase their latest
The 2015 Stingray
creations. It’s also a chance for new players in the business to introduce themselves to the industry. This year, Revorix falls under the latter category, and it’s prepared a special program for the Chevrolet Corvette Stingray. The new aftermarket company has just set up its business in Anaheim, California with the sole purpose of creating aftermarket
products that highlights a car’s “functional beauty." Seeing as it’s still a relative neophyte in the industry, you can’t fault Roverix from enlisting the help of Rowen Japan, considered as one of the best aftermarket car body specialists in Japan. Together, the two companies created the Revorix Corvette Package, which features a comprehensive list of new aerodynamic components designed to give the Corvette Stingray a sportier look and improved dynamics. There are no performance upgrades but that’s not overly important when you’re a new entry to the market looking to make a name. The important thing is to establish yourself first, and one way to do so is to build a body kit that will catch peoples’ attention, which is exactly what it has with the Revorix Corvette Package. It’s a tough task catching some eyes at the SEMA Auto Show, but Revorix, with the help of Rowen Japan, might have the kit to pull it off.
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Universal Technical Institute to Open Long Beach Campus Universal Technical Institute, Inc. (NYSE: UTI) announced plans to open a new campus in Long Beach, California, as part of the company’s growth strategy to provide more students with convenient and affordable training. The schooling facility will also be restructuring the organization to better align with new, streamlined processes, as well as current student populations at its existing campuses. “We are very excited about expanding in the greater Los Angeles metropolitan area where there is both strong student and employer demand,” said Kimberly McWaters, chief executive officer of UTI. “Like our successful metro-model campus in Dallas, the Long Beach campus will predominantly serve a commuter population; allowing students to work while going to school without the cost of relocating to an existing campus. We believe this new campus will complement our Rancho Cucamonga, CA campus and help us fully optimize our current marketing investment in this important market.” UTI has entered into a 15-year lease agreement for a build-to-suit campus, located near numerous major freeways and Long Beach airport. The Long Beach campus, set to open
in late summer 2015, will house the company’s automotive, diesel and collision repair programs including a number of manufacturer specific advanced training programs. There are accomadations for a maximum of 800 students. “Our focus on improving operating efficiencies, controlling costs and running a lean organization gives UTI the flexibility to invest in growth opportunities like new campuses, fund initiatives to rebuild student populations in our existing campuses and make our training more accessible and affordable for all of our students,” McWaters said. During the past year, the company implemented key process technology solutions to operate more efficiently in today’s business environment. The company is also restructuring its organization and reducing staff. The first phase, completed in the fourth quarter of 2014, impacted 50 employees. Severance and outplacement charges relating to this reduction will impact the fourth quarter pre-tax earnings by $1.3 million. By 2015, these cuts are expected to provide operating expense savings in compensation and related benefits of $5.2 million.
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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.
DRPs 20 years ago, Early CCRE, ADP Revises Labor Times with John Yoswick
Recently I read an article that was critical of industry leaders who had not taken a stand against DRPs. It brought to mind a discussion I once had with (a member) who said there are things associations can do that make some members happy, but that don’t mean anything. He called it “feel good stuff.” For association leaders to denounce all DRPs when half or more of their membership participate in direct repair programs would be nothing more than “feel good stuff.” It feels good to those who are not DRP shops, but what about those member shops who chose to go DRP? It’s very easy to criticize associations that have a neutral position on DRPs, but what would happen if they came out against them? The best any association can do is to rally against the abuses where they exist; to support legislation that protects a consumer’s right to choose the repair facility; and to do what it can to advise its mem-
bers on how to determine if DRPs are a wise business decision for them. There are a number of individuals, some of them leaders, who continue to yell about DRPs without offering any real solutions. But regardless of what they have said, it’s the collision repair professionals who have voted by making the business decision whether to participate in these programs. All the yelling in the world won’t eliminate DRPs. Those of you who can’t accept that reality can keep yelling, or your can roll up your sleeves and go to work on the 65 percent of business that will never be DRP. Learn how to better market your business and sell collision repairs. Bury the DRP bogeyman and get to work. It’s in your best interest. – From an editorial by John LofJohn Loftus
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15 years ago in the collision repair industry (November 1999) Mike Melfi said the Coalition for Collision Repair Equality (CCRE) was founded about three years ago as an organization to help like-minded shops owners around the country “take back control” of their businesses and reduce insurer influence over the industry. It was incorporated as a for-profit company so that it would never have to divulge a list of its members (which the organization refers to as “sponsors” or “clients”). About 80 people – including about a dozen attorneys – attended the group’s recent meeting in Phoenix. “These attorneys are just now realizing that there’s money to be made in property damage litigation,” said Ann Spink, a Louisiana shop owner
and vice president of CCRE. “We believe that legislation and education is part of the answer but litigation is the bottom line. The reason CCRE exists is to try to put together the documentation and the expert witnesses to help these attorneys understand how to litigate for us. And because they’re class action attorneys, we don’t have to pay them, just help educate them.” Shop owner Melfi told CCRE participants he had predicted the first nonOEM parts lawsuit “victory” would take two years. “It took three years,” he admitted. “But now I have another prediction. If steering continues, one day on the 6 o’clock news, you’re going to see an executive of an insurance company in handcuffs being put in a federal marshal’s car being charged with federal racketeering.” – As reported in Parts & People. The non-OEM parts lawsuit victory Melfi referred to was the $1.1 billion
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 15
judgment against State Farm in 1999, which the Illinois Supreme Court overturned in 2005. A class action lawsuit filed in Illinois earlier this year alleges that seven of the Top 10 insurers violate federal racketeering laws by illegally conspiring to use their direct repair programs and other means to enforce “an artificial market value for collision repairs.”
10 years ago in the collision repair industry (November 2004) A widespread and significant drop in ADP refinish labor times discovered in recent weeks will be corrected in ADP’s November CD update release, which the company says has been sent to ADP customers. “The operational issues with the refinish times in the October CD are revised in the November CD,” Scott Jenkins, senior director of “Estimating Solutions” for ADP said. “The November CD is consistent with the September CD. If the user did not load the October CD, they were not impacted. We are instructing our customers to load the November CD immediately upon receipt.” The October CD included many decreased refinish labor times of 10 percent or more. Refinish times for 2000-
2004 Ford Taurus hood, for example, dropped from 3.9 on the September ADP CD to 3.4 on the October CD. Times for a 1999-2004 Pontiac Grand Am fender dropped from 2.4 to 1.9, and the front door time for a 1999-2004 Chevy Cavalier dropped from 3.1 to 2.8. Although some have looked for some sort of intent behind the widespread reductions, ADP, while avoiding using the term “mistake,” maintains that the problem was an “operational issue,” not an attempt to shave labor times. “Some of our clients have experienced an operational issue regarding refinish labor on hoods, doors, fenders, roofs, decklid/tailgates and back doors,” Peggy Adams, operations manager for client services for ADP, wrote in an email response to questions about the October CD. “All new estimates created with the November CD reflect the updated refinish labor. We apologize to our clients for any inconvenience we may have caused.” The issue has resulted in a flurry of email activity between shops and industry organizations since it came to light in early November. Part of the concern was fueled by the fact that various ADP personnel were giving conflicting - or, at a minimum, ambiguous
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- responses to questions about the labor time changes. An ADP tech support employee, for example, told one ADP shop customer in the Pacific Northwest that the revised times were based on “new time studies” ADP had done. – As reported in Autobody News. Prior to shops accessing the estimating database information over the Internet, the system providers sent monthly updates to the data to shops on compact discs. ADP’s Claims Services Group (including its estimating system) was acquired by Audatex (now AudaExplore) in 2006.
5 years ago in the collision repair industry (November 2009) In the transcript of a small claims appeal trial involving two of customers of G & C Auto Body of Santa Rosa, Calif., California Superior Court Judge James Bertoli took State Farm to task for its rate survey process and arguments regarding reasonable repair costs. Shop owner Gene Crozat’s customers had won after filing small claims court cases against State Farm insureds when the insurer refused to pay all of G & C’s charges. The insurer appealed both cases, and the court heard the two appeals together over two days.
Bertoli said State Farm could use whatever method it specified in the insurance contract to determine a reasonable price in first-party claims, even if they determined that price, “by reading chicken entrails, and consulting with the three witches from MacBeth (which is) just about as accurate as the survey itself is. I think that survey from a statistical standpoint would get a first-year college student a flunking grade.” But in a third-party case, the judge said, a reasonable charge “implies a range of charges” and “no particular charge can be said to be the only reasonable charge.” He said State Farm did not try to establish that G & C’s rate was unreasonable, and it appears to fall within a reasonable range of prices. “Quite frankly with regard to the third-party claims, this Court does not believe they should have been litigated,” Bertoli said in finding for Crozat’s customers. “I think the answer is clear, and I quite frankly see it as an effort on behalf of the insurer to try and suppress the price charged by someone outside of their range.” – As reported in CRASH Network (www.CrashNetwork.com), November 16, 2009.
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Shop Showcase
Fontana, CA, Shop Thinks BIG on its 26-Year Anniversary with Ed Attanasio
Stan Bard is the owner of Fleet Refinishing and Collision Center in Fontana, CA, a company that repairs and paints almost everything except for passenger cars. Celebrating its 26th anniversary, this shop has
part of the business model at Fleet Refinishing & Collision Center and today they’re well-known nationwide for painting and repairing RVs, commercial buses, heavy duty construction vehicles, delivery vans, big rigs, television trucks, food trucks, boats, sea containers and get this—amusement park rides. Thinking big and working smart has helped the business to grow and evolve, Bard explained, but at the beginning he and his partner were learning on the fly. “When we first started, we found a niche painting school buses for a handful of school districts in Fleet Refinishing and Collision Center in Fontana, CA and the area. We were in La its sister company SoCal Wraps has been thinking big Puente, CA back then with since 1998 two employees and we changed its focus and moved its loca- thought we’d get rich painting buses tion several times since 1998, but in yellow all day long. But, we realized general the company’s emphasis is on that it’s seasonal work, because the big vehicles. The bigger the better is school districts stop painting their
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Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
buses when school starts again every momentum when it rained and we could get those jobs in October, NoSeptember.” Many companies that survive and vember and December. So between succeed over the long term usually the buses, the moving vans and the have to re-invent their business plans construction equipment, we were busy at some point and Fleet Refinishing year round.” and Collision Center was no exception. “We were too dependent on those buses, so we started looking around for another market that wouldn’t be so seasonal,” Bard said. “So, we began painting moving and storage trucks for companies like North American Van Lines, Mayflower and Allied. Then, we found out that at the end of the year when the The shop paints and repairs RVs, buses, heavy duty weather in southern Califor- construction vehicles, delivery vans, big rigs, television trucks, food trucks, boats, sea containers and amusement nia gets rainy, that market park rides also disappeared. But when the moving companies started slowing Thinking big can make you down, we found out that painting con- money, but being realistic is also imstruction vehicles was another good portant. To keep his quality high, Bard niche for us, because their work lose will only take on projects that are a
good match for him and he won’t ever let one client become too much of his total revenues. “We were looking for several markets so that we would never be too dependent on one. We agreed that one customer could never make up more than 10% of our total production. If it’s a big job and it will eat up 90% of our production, for example, we won’t pursue it.” Well, things sure have changed from those early years, because today Fleet Refinishing and Collision Center operates in a 21,000 square-foot facility on a 4-acre lot, employs 30 people and has 50-60 vehicles in its shop all the time. With 10 drive-by bays that can hold two big rigs each and a huge parking lot filled with more awaiting paint and repairs, the shop also does a handful of vehicle restorations every year. The shop’s sister company, SoCal Wraps, has also grown quickly, due to its exceptional work and rave reviews for its vinyl digital designs and amazing artwork. Unusual items painted and repaired at the shop include medical MRI units, amusement park rides and tour buses for musical groups, accord-
ing to Bard. “We started doing the amusement rides about five years ago and it’s a nice source of business. These
“We do a lot of graphics for movie the tour and the band using it, Bard studios, advertising agencies and a lot explained. “We’ve done tour buses for of major companies’ delivery trucks Janet Jackson, Vince Vaughn (who and other vehicles, including Arrowhad a comedy tour) and the Jonas head Water and Nestle, for Brothers. The bus for the Jonas Brothexample.” In addition to ers came back here after their tour and painting new vehicles and it needed a lot of help. We created a equipment, the shop does a wrap for them that their fans could fair amount of repairs as well, sign, but they also ended up signing with two body techs who are parts of the bus that weren’t covered kept busy all the time. by the wrap. So, that was quite a re“Most of what we get in pair job on that one.” here is new, but many of it is What has been the biggest damaged to some degree. change for Fleet Refinishing and ColIt fluctuates, based on the lision Center since it opened its doors economy. During tough times, more than a quarter century ago? “We we need to make more repairs, used to hand paint a lot of our graphSpecialty vehicles is where Fleet Refinishing and Collision but when things are going betics at the beginning, but now the techCenter shines ter, we get more new vehicles nology has allowed us to create some are children’s rides and fun houses here in the shop. Right now, companies insane designs. The 5-6 color designs and they’re all on 50-ft. trailers that are building more new equipment, so that we’re doing now on vehicles and completely unfold with staircases our repair side will see less action for equipment was unimaginable 26 years and railings, walls and pathways— awhile.” ago, so that would definitely have to it’s mostly tubular steel. We’re also The wear and tear on rock music be the biggest change in our busistarting to do the graphics for these tour buses depends on the length of ness.” rides. In the past, it was all hand painted but now they’re going to the Register Your Email for Our digital vinyl graphics, for a better look.” Free Twice Monthly Newsletter SoCal Wraps has become a big part of the big picture at Fleet Refinat www.autobodynews.com ishing and Collision Center, Bard said.
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Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon who has been writing about the collision 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.
Energy Transfer in Today’s Vehicles Makes Measuring, Multi-Point Pulling More Important Some industry observers estimate that only about 20 percent of vehicles in collision repair shops are actually being measured as part of the repair Richard Perry process. Richard Perry, who oversees training for Chief Automotive, believes that changes in vehicle materials and structure mean
that at least four times that percentage should be measured. “If that vehicle is impacted, it should be measured,” Perry said. “We usually know what’s going to happen with the damage; we just don’t know the extent of it, where all it’s gone, how far did it travel through the vehicle. You’ve got to be able to find it to fix it. So before the repair we need to analyze what’s wrong to develop a repair plan. During repair, we need to
Richard Perry of Chief Automotive discusses the value of multiple-point pulling during a recent demonstration in the shop at Chief’s headquarters in Madison, Ind.
provide, almost half of our business is there,” Cranfill said. Vehicle Services Group (VSG) is itself a segment of Dover Corporation, a global producer of equipment, systems and services in a variety of businesses. In addition to Chief, VSG brands include Rotary Lift and Elektron welders. It has about 1,200 employees in the U.S., Germany and China. Its measuring, pulling and welding equipment sales each account for about
21 percent of its overall revenue, but its single biggest revenue source is the vehicle measuring data it sells directly to collision repairers and also to the estimating system providers. Does Chief collect data on the vehicles that shops are measuring with its equipment? “We do not collect it,” Bob Holland, VSG collision director for North America, said. “With our licensing agreement, we
Chief Automotive Sees Itself as Source of Information As Much As Equipment
If you still think of Chief Automotive as primarily a pulling equipment company, think again. Mike Cranfill, vice president of global collision and new business development for the Vehicle Services Group (which includes Chief Automotive) said changes in the company’s revenue sources reflect changes in the industry itself. “I like to think we’re an information company, because if you take the training, the measuring equipment and the data we
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measure multiple points, and monitor those during repair because as you start to make repairs, more than one point is going to move at a time. We need to monitor all those points.” Perry said in the past, technicians might gauge the extent of the damage by checking to see if the vehicle’s doors open and close; if they did, they felt it was safe to presume the damage had not extended beyond the passenSee Energy transfer, Page 22
have the right to collect it, but we do not.” Cranfill some companies, such as those that offer vehicle history information, may seek that information, but Chief doesn’t share it because the information tells only part of the story. “The risk is: What does it mean?” Cranfill said. “Even if the data shows the car measurers to factory specs, can you guarantee the repair was proper? Maybe you used heat when you’re not supposed to.”
www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 21
Continued from Page 20
Energy transfer
ger compartment. But vehicle manufacturers have strengthened both the lower and upper structures of vehicles, further reducing the impact of visible damage to the passenger compartment. “I’ve seen some vehicles that had straight-on impacts at 50 mph, yet you can open and close the doors like factory,” Perry said. “The passenger compartment does not react they way
Lee Daugherty, global data product manager for Chief Automotive, points out the type of measuring data available through the company’s LaserLock system
it used to. But that energy is still going somewhere; something further back in the vehicle has to give to absorb that
energy. So that old way of thinking, of not measuring everything, results in overlooking something. That’s why we need to measure the entire vehicle each time.”
Jerry Ralston explains the final assembly processes that Chief frame equipment undergoes at the company’s Madison, Ind., headquarters
Perry believes eight measuring points is the minimum that should be used to ensure all the damage is located, though the total number will depend on the severity of the impact. Start with four on the center structure of the vehicle, he suggests, then one on each of the front and rear corners of the vehicle. When it comes to pulling, multiple towers allow more precise movement, he said, given that damage can be in three directions: lateral, vertical and length-wise. “The more hook-ups you can put
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on at your initial pull, the more that damage is going to come out the way it went in,” Perry said. “But you need to be monitoring it as you pull so you know you’re going in the right direction.” Multiple pulling also reduces the amount of force used at any single point. “If you put more combined force on a vehicle but less at each location by doing multiple simultaneous pulling with equalized pressure, you can repair a lot of things that you couldn’t before because you’re not going to rip and tear it,” he said. “You’re not going to damage and distort it because you’re not putting as much pressure at each location.” Perry shared his measuring and pulling concepts while working on an actual damaged vehicle during a recent demonstration in the shop at Chief’s headquarters in Madison, IN. Among the features of the company’s “LaserLock” measuring system he pointed out was the dual monitors that allow a technician to have both measuring information and OEM repair information readily accessible. “The OEMs used to sit on the sidelines because who knew better
about repairs than anybody else? The technician,” Perry said. “After all, he’d been doing it for 20 years, and things hadn’t changed that much. But with the many changes to vehicles
Bryan Brown demonstrated the newest Elektron welder during a recent media tour of Chief Automotive’s headquarters. Elektron and Chief are among the brands owned by Vehicle Services Group, based in Madison, Ind.
today, who knows most about a vehicle now? The OEMs. They designed it. They engineered it.” That said, Perry believes another advantage of using Chief measuring See Energy transfer, Page 40
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Lean Operations
Lean Implementation Strategies with David Luehr
David Luehr is the owner of Elite Body Shop Solutions, LLC, a collision business consulting firm based in Nashville, Tennessee. He is a 30 year veteran of the collision repair industry. David is an expert in Body Shop Operations and specializes in Lean, and Theory of Constraints methods. Email him at dluehr@msn.com
One of the biggest complaints I hear from shops is that it is so hard to get people to change their habits and conform to a new way of doing things. Unfortunately, failing to implement a permanent change initiative has become the norm at most collision repair shops these days. Some of this resist-
it becomes to the staff. Sad, but so true! There are many reasons that people are resistant to change, but I am surprised at how often it is the owner or manager himself that is the real problem! The art of communicating and understanding what make your
ance we bring on ourselves by what I like to call the “Flavor of the Month.” I am sure most of you can relate to this scenario when the boss returns from NACE or some great seminar and all of a sudden he wants to fix everything overnight! These changes rarely take permanent hold in the organization and the more changes management tries to implement, the bigger the joke
people tick are of utmost importance these days. The old “iron-fisted” management style of yester-year rarely works these days. How are you going to get your staff to buy-into change initiatives and consistently perform the vital steps required with new processes such as Blueprinting, and other lean concepts? Many great books have been written
“One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform”
24 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
on the subject of change, and I recommend you read them and learn as much as you can to better understand the behaviors and intrinsic values of you and your team. In addition to you doing some studies of your own, I hope you will find these 3 tips helpful to your change efforts.
Convenience One of the biggest reasons people don’t follow the steps is because the steps are too hard to perform. Call them lazy, call them whatever you want, but the reality of it is that if you give someone a task that is critical to success and the task is too difficult, it is human nature that it likely won’t get done consistently if at all. Let me give you an example. Let’s say that at your body shop, you have discovered that checking the re-
placement parts for correctness (mirror matching) is CRITICAL to your success. So if you remove the old parts from the car and throw them into a big messy pile in the corner, do you really think the parts guy is going to dig through that heap to find the parts he needs to mirror match vs. the new replacements? Probably not going to happen, right? You must make critical
Would you expect your parts person to dig through this mess to perform a mirror match?
to success tasks as easy as you possibly can if you want them to get done. Convenience also means keeping
tools, information, and anything else that would be needed to perform a critical task close and easily accessible. Things not getting done are often not a work ethic problem as much as it is a spatial or procedural problem.
Space If you were trying to shed a few
pounds and decided that you need to quit eating donuts, do you think it would be better to have the box of
donuts that your rental car provider just gifted sitting on your desk, or would it be better to place the delicious box of devilish delight as far away as possible? My point is to set up your shop space to help drive the vital behaviors to succeed. A classic example of this is when it comes to Blueprinting. One of the vital behav-
iors of Blueprinting, in my opinion, is to have your estimating computer out with you at the damaged car. Can this happen at your shop, or are your estimators still writing everything down on a piece of paper and then walking this back to their office to enter a questionably accurate supplement into the estimating system? If this isn’t bad enough, I still see many shops that let the technician write the supplement on a piece of paper and then put it on the estimator’s desk to key in. What kind of behavior does this spatial arrangement encourage? Think about it!
Make it Unavoidable Make it difficult for people to do the wrong thing. Can you think of any tasks critical or otherwise that are being successfully performed at your shop consistently? What is different about those tasks that you can learn from and apply to your new initiatives and critical tasks? The act of moving a vehicle into the technician’s stall makes it pretty unavoidable that it will get seen and worked on by the technician. Making a task unavoidable is quite often a visual thing, and something that has to get done before it can go to the next step. Consider the use
of visual quality control in between departments to eliminate defects, and make it hard to screw up!
Outcomes • Recommended reading o Leading Change – Kotter o Influencer – Patterson, Grenny, Maxfield, McMillan, Switzer • Make critical tasks convenient o Tasks that specifically lead to your company’s success like Blueprint steps, parts mirror matching, customer communication, etc. must be made to be EASY! • Setup office and shop spaces to influence vital behaviors o Is communication a problem? Consider how your office is set up. o How far do people have to walk to get parts, information, etc? • Make critical tasks unavoidable o Think visual o Make it hard for people to screw up!
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Social Media for Shops Chicago Body Shop’s Anti-Texting Campaign Catches Fire with Ed Attanasio
Admittedly, the owner of a wellknown 80-year-old body shop in Chicago was guilty of texting in his own vehicle himself for several years until he saw more than a few damaged cars in his shop caused by his customers’ lapses in attention while texting. Rather than ignore what is now an national epidemic that causes 1.6 million accidents annually, Bob Gottfred, the owner of Erie-LaSalle Body Shop, decided to start his own antitexting campaign. Erie-LaSalle Body Shop was founded in 1934 and over the years it has become a neighborhood institution in downtown Chicago. “We’re the longest continuously owned auto body of its kind in Chicago and Illinois,” Gottfred explained. “We now have a handful of third-generation customers coming in here and it’s great to hear their stories about when their grandfather or even great grandfather brought his car here decades before. Addition-
ally, we have expanded our service area by acquiring a 30-year body shop on the southwest side of Chicago.”
Erie-LaSalle started getting involved in an antitexting campaign after creating this fire hydrant to raise money for 51 Club, an organization that raises money for families of firemen killed in the line of duty
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Gottfred, 64, had what he described as a “marginal interest” in cars as a kid, so his path to owning a body shop wasn’t part of his life plan, he said. “I grew up working here in the shop as a teenager and to be honest, I wasn’t crazy about it. I had no intention of taking over the shop, but when I came home around Christmas time in 1975, my stepfather told me he couldn’t do it anymore. His health wasn’t very good so he said, ‘If you’re interested -- hop in” or he was going to sell it. So, in January 1976 I started running the business full-time and then eventually bought out my stepfather in 1995.” Today, both of Gottfred’s sons work with him at the shop and eventually the business will belong to them – but not tomorrow, Gottfred said. “Jim (36) and Jay (34) could take over right now and do a great job, because they’ve learned the business and they’re ready. They’re right at the hand-off point now and I know it would be a seamless tran-
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Midwest 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.
ASA-IL’s 2014 CAN Conference Attracts More Attendees, Falls Short of Collision Goals with Chasidy Rae Sisk
During the weekend of September 2628, ASA-IL held their annual Chicago Automotive Network (CAN) Conference at the Hyatt Regency O’Hare in Rosemont, IL. With over 200 participants, including 150 who attended training sessions, ASA-IL’s Executive Director Donna Kelly and Co-Executive Director Deb Bullwinkel deemed the event a success. Kelly notes, “it went really well and was very exciting. It was great to see so many new faces enjoying our jam-packed schedule, and we received a lot of positive feedback on the training we offered and the new venue – many people said they’d definitely be back next year.” Although there was a slight setback on the first day of the conference due to Chicago air traffic being shut down for eight hours, causing a handful of presenters and exhibitors to arrive late, Dan Risley, Executive Director ASA National, was fortunately available to fill in and save the
day. Risley began the conference by providing an update on the national association. Bullwinkel believes “it was good for our veteran attendees to see Dan again and get to know him a little better, and it was also nice for new attendees to meet him and learn more about the national association.” This year’s CAN Conference featured an expanded program, and attendees seemed to embrace the changes, with the only complaint being that there were so many programs scheduled at the same times that it was difficult to choose which one to attend. Kelly feels this is one of the major attractions that helps the CAN Conference stand apart from similar events – “we offer a variety of high-quality, advanced-level training in one place over one weekend, plus we are fortunate enough to have a lot of top-notch trainers right here in the area.” Providing quality training is ASA-IL’s most important goal while
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planning CAN each year as this is the main purpose of the event. The secondary reason for the association to host CAN is to provide an opportunity for members to network with industry vendors and their automotive industry peers. Bullwinkel states, “return attendees get excited to see each other. It’s like a big reunion with friends made in past years.” ASA-IL also counts on their annual CAN Conference to generate operating funds for the association. “Even though we provide a great deal on training and don’t really make money on registration fees, the proceeds raised from our vendors help to sustain our association,” Kelly says. Both Kelly and Bullwinkel agree that association-sponsored events are important to their members and the industry at-large because it allows everyone to gather together to learn and network, creating a more positive feeling about the industry itself. “We
have people come from all over – attendees fly in from MA, NY, OH and Canada every year. There’s really a sense of camaraderie amongst the shop owners,” Kelly notes. “This group wants to share ideas and raise the level for everyone in the industry, rather than looking at each other as the competition.” Bullwinkel adds, “there’s no sense of competition; they want to help each other and keep the independent shop sector alive by talking shop and having valuable conversations both inside and outside the training sessions.” ASA-IL’s biggest goal this year was to increase attendance over last year’s conference since the association underwent a variety of organizational changes that caused them to start planning the event later than usual, and they were pleased at the increase in attendance by about 50 people. Kelly and Bullwinkel also agree that the 2014 CAN Conference was a
lot of fun, and the team effort from ASA-IL’s Board of Directors led to a stress-free and enjoyable time for all. The one area where this year’s CAN Conference failed to meet expectations was in their desire to attract a lot of collision repair shops since ASA-IL recently reintroduced the collision side of the business back into their affiliated association. Kelly and Bullwinkel blame this on their approach of marketing to both collision and mechanical shops simultaneously, and they believe they will have more success next year if they approach collision repair facilities on an individual basis throughout the year and target some of their CAN marketing specifically to collision shops for 2015. They also hope to elect at least one collision member to their Board of Directors next year in order to gain some insight into the collision repair industry. With six I-CAR courses, several management-focused seminars and plenty of additional training, it’s no surprise that the 2014 CAN Conference was such a success. Additionally, the trade show provided a forum for talking to vendors, and the socializing aspects of the event gave attendees
time to network with their industry peers. During the Conference, ASAIL also held a presentation to bestow the Frank Brizek Memorial Award upon Moe Kondich to honor his dedication to the association. ASA-IL has already begun planning for the 2015 CAN Conference which they plan to hold at the same venue on September 18-20, 2015. They are considering devoting a single day to management courses for shop owners to eliminate the time that technicians spend away from the shop, though these plans have not yet been finalized. Kelly and Bullwinkel are very excited to have already received new volunteers to help plan for next year’s event which is sure to be another success.
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Memphis Radio
sumer’s safety above all else and plans to feature member shops who have committed to this goal. Although Fowler believes that some insurance agents would like to do the right thing for their customers, the rules are passed down from the insurance companies’ corporate offices, leaving the agents powerless to make changes. Unfortunately, the insurers are the only ones to benefit, and these practices are actually performed to the detriment of the collision repair facilities, the consumers and even lending institutions as an improperly repaired vehicle is apt to create a situation of diminished value. When radio hosts questioned why some insurance companies have departments that deal in diminished values, Fowler notes, “they pay when they’re forced to pay, but they are never going to voluntarily do the right thing because it’s not profitable, and everything they do is profit-driven.” In fact, he warns that diminished value can occur to such an extent that the vehicle should have been declared
a total loss because it is no longer safe to be driven on the road! Luckily, diminished value is an issue that consumers are becoming increasingly aware of, and Fowler encourages anyone with doubts about the safety or integrity of a repair to get a post-repair inspection. His shop will gladly inspect repairs and provide objective assessments, as will many shops across the nation. As the show ended, Fowler encouraged consumers to stand up for their rights. Though he would like to believe that the insurers look out for their customers’ best interests, his observations indicate that they are only concerned with profits. “This war has been going on for a long time, mostly behind the consumers’ backs, but it affects everyone because if a car is unsafely repaired and out of control, it is dangerous to everyone on the highway. The U.S. public needs to be concerned with this issue… You never know what battles you can win until you fight them. Doing nothing only ensures you will lose.” To access to the radio broadcast, go to http://www.iaba.info/Documents/ Newsletters/Issues/2014/10%20 October/Full%20Stories/Article%207. html (link is at the bottom of the page).
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Social Media for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Body Shops are Tapping into the Persuasive Power of Video with Ed Attanasio
In a world where we are constantly bombarded by texts, tweets, status updates, and emails, it’s no surprise that many people read fewer books and seem to have some form of ADD. A young person recently told me with pride that he hasn’t read a book since high school. “I like pictures,” he said. So, on a planet where almost everyone has a short attention span, how do we communicate effectively with the masses? The answer for some is through video—short, sweet and to the point. Several body shops have experienced great success by working with the same video production/marketing company and the videos they’re producing are creating a buzz throughout the collision industry nationwide. Absolute Perfection Media (AP Media) in Sykesville, MD, is the company producing these attention-getting videos for body shops. They’re the hottest new video production company serving the collision industry and shops are clamoring to work with them. President Lee Emmons is now working with more and more shops owners who have seen his past productions for Mark’s Body Shop in Baltimore City, MD, and K & M Collision in Hickory, NC. The appeal stems from their direct, no-nonsense approach. Emmons has learned the collision industry along the way, he said, and now he’s known as the “body shop video guy.” “The power of video and YouTube has become apparent and now collision shops want to tell their stories using this format,” Emmons said. “These shops are willing to take on the insurance companies and this is the way they’re doing it. We’re also producing videos to educate their customers about things like certifications and the use of OE parts. These shops have learned that these videos are highly effective and very affordable and we can turn them out rather quickly. Once a shop does a few of these videos and sees the response, they want to do more. I’m traveling to K & M next week to produce a series of videos about their manufacturers’ OE certifications. Some of the videos I’ve produced for body shops have gone viral and gained a lot of national attention, so we’re getting new collision clients all the time.”
The Vice President of Operations at K & M Collision, Michael Bradshaw, has produced a series of videos with AP Media and posts them all on his YouTube Channel. “We have approximately 10 on there right now and maybe five more in production. We take an educational
great feedback about them from our customers,” Bradshaw said. “Insurance adjustors also tend to see them too!” Mark Schaech, Jr., is the second-generation owner of Mark’s Body Shop in Baltimore City, MD. He started working with Emmons at AP Media several years ago.
Lee Emmons of AP Media shooting a video for K & M Collision in Hickory, NC, featuring their receptionist, Caitlin Adams
approach to many of the consumer-related issues in this industry, including titles such as, Has Your Car Been Repaired Safely (Watch this case and stay safe after an accident)?; Do You Qualify for Diminished Value? (The Insurance Company May Owe you Money); An Epidemic of Unsafe Collision Repairs; Post Repair Inspections; What is Steering?; Who Guarantees Repairs?; and An Open Letter to the North Carolina Attorney General. Short videos with a succinct message have proven to be highly effective, Bradshaw explained, although in some situations longer, in-depth videos also work well. “We were doing longer videos at first, mostly 4–6 minutes in length, but now we’re trimming them down to two minutes and our most recent ones are coming in at 90 seconds. When we’re dealing with certain subjects, the longer videos work just fine, but we also produce shorter ones to convey the message quickly and present the topic in a way that the viewer can absorb easily.” If you’re getting your car fixed by K & M Collision, you’ve probably seen one or more of the shop’s videos. “We loop all of them together and show them on a monitor in our reception area at the shop and we’ve gotten some
30 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
“We have now produced at least five videos with AP Media and they’re being seen by shops all over the country,” Schaech explained. “We let shops use them, as long as they give us an outbound link. These other owners are realizing that these short videos are effective, because they can easily convey the information that we want to communicate, because this is a very complex industry and the average person doesn’t really know what’s going on.” Schaech, 41, took over the business from his father in 2000 and back then they had six DRPS. But, today they have none and some of their videos document why. “The first one we did with AP Media was about a post repair inspection video and it had immediate impact,” Schaech said. “A Mazda had been repaired by another shop under an insurance company’s DRP and it was completely hacked and butchered. It See Power of Video, Page 37
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661-396-4235 Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com
First Honda Sim i Valley
888-523-0698 805-584-6646 Dept. Hours: M-F 7-6; Sat 7:30-5 hondaparts@firstautogroup.com
Galpin Honda Mission H ills
800-GO GALPIN 818-778-2005 Dept. Hours: M-F 7-6; Sat 8-5 blemen@galpin.com
AC URA C AL I FO R NI A
Acura of Fremont Frem ont
888-435-0504 510-431-2560 Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com
Acura of Pleasanton Pleasan ton
888-985-6342 925-251-7126 Dept. Hours: M-F 7:30-6; Sat 8-6 mitch.cash@hendrickauto.com
AutoNation Acura of South Bay Tor rance
310-784-8680 Dept. Hours: M-F 7-6; Sat 8-5 iwashitas@autonation.com 32 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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The Honda and Acura Dealers Listed Here are C A LI FO R N I A
Honda Cars of Corona
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Larry Hopkins Honda
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408-720-0221 408-736-2608
800-717-3562 559-891-5111
800-461-6744 520-202-5770
Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com
Dept. Hours: M-F 7-6; Sat 7:30-4:30 hondapartsmgr@selmaautomall.com
Dept. Hours: M-F 7-6; Sat 8-4 robertevenson@chapmantucson.com
Metro Honda
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Tempe Honda
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Tem pe
800-446-5697 909-625-8960
877-475-1142 408-324-7460
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Dept. Hours: M-F 7:30-5 parts@southbayhonda.com
Dept. Hours: M-Sat 7-6 Jdodge@penskeautomotive.com
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Ocean Honda
Co rona
800-557-3652 951-734-9045 Dept. Hours: M-Sat 7-5 terry.love@pscauto.com
Honda of Hollywood Hollywoo d
800-371-3719 323-466-3205
Oak la nd
510-547-8047 Dept. Hours: M-F 7-8; Sat 7-6
Honda of Pasadena Pa sadena
800-433-0676 626-683-5880 Dept. Hours: M-F 8-6; Sat 8-4
Kolbe Honda
Davis
800-585-8648 530-758-8770
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831-464-1800 Dept. Hours: M-F 7-6; Sat 8-4:30 mickw@oceanhondasantacruz.com
Robertson Honda North Hollywood
800-508-3894 818-301-3511 Dept. Hours: M-F 7-6; Sat 8-5
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Dept. Hours: M-Sat 8-6; Sun 8-5 dfortier@uhdavis.com N EVAD A
310-371-8320
U TAH
Ken Garff Honda Ogden Og de n
800-821-8797 801-627-6762 Dept. Hours: M-F 7:30-6 smiles@kengarff.com
Findlay Honda Las Vegas
702-982-4260 Dept. Hours: M-F 7:30-5:30; Sat 8-5 fsanchez@findlayauto.com
Findlay Honda Henderson Henders on
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Scott Robinson Honda Torranc e
Chapman Honda
Dept. Hours: M-F 7-6; Sat 8-5 fhhparts@findlayauto.com
For more collision info, go to: collision.honda.com airbagaware.honda.com crashrepairinfo.com
Dept. Hours: M-F 7-6:30; Sat 7-5 mluna@scottrobinson.com C A LI FO R N I A
NE VADA
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Cerritos Acura
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Ce rritos
Henders on
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855-895-2678 562-207-0554
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Dept. Hours: M-F 7-7; Sat 7-6 srandall@browningautogroup.com
Dept. Hours: M-F 7-6; Sat 8-4 jmoore@findlayauto.com
Dept. Hours: M-F 7-6; Sat 8-5 acuraparts@acuraoftempe.com
Dept. Hours: M-F 7:30-6; Sat 7:30-5 pgoold@mikehale.com
Metro Acura
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800-446-5697 909-625-8960
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Dept. Hours: M-F 7:30-5:30 wholesaleparts@metrohonda.com
Santa Monica Acura
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866-347-4507 623-792-2559 Dept. Hours: M-F 7-6; Sat 7-5 dcavanaugh@vtaig.com
Jody Wilkinson Acura Salt Lake Cit y
800-234-0875 801-323-0492 Dept. Hours: M-F 7:30-6; Sat 8-5 rick@jodywilkinson.com
Sa nta Mo nic a
866-332-4950 310-449-0064 Dept. Hours: M-F 7-7; Sat 8-6 Scott.p@santamonicaacura.com www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 33
Media and Publicity for Shops
Ed Attanasio is an automotive journalist based in San Francisco, California. He can be reached at era39@aol.com.
Gas Monkey Garage and Dodge Recruit Mötley Crüe to Rock Dallas with Ed Attanasio
Richard Rawlings loves fast cars, pretty women and having a good time all the time, so it was a no-brainer when the Fast N’ Loud star opened his own bar about a year ago, followed by the purchase of a concert venue in October. The Gas Monkey Garage brand is spreading throughout the country and now, Rawlings has headquarters where he can combine food, music, libations and cars. In conjunction with Rawlings and Dodge, Charger, Challenger and Viper owners are about to get the show of a lifetime in Dallas on Nov. 1. The dealers will convene at Gas Monkey Live to attend a concert featuring Mötley Crüe, while dining on Gas Monkey Burgers, Bock Battered Chick Fried Steak, 3-Cheese Truffled Mac and Red Chile Grits. It’s a oneof-a-kind highly exclusive event open to Dodge owners looking to have an amazing time while showing off their vehicles to fellow gear-heads. Head of Dodge Marketing & Communications, Mark Malmstead, is excited about the upcoming concert and the chance to partner with Rawlings and Mötley Crüe for this unprecedented event.
what’s out there and he has an edge. As we sat down with him and got to know him better, we decided to do more with Richard. So, he appeared for us at the Woodward Dream Cruise in metro Detroit recently and everyone went crazy.”
Mötley Crüe will be performing at a Dodge owner-only event which is part concert and part car show on Gas Monkey Live on Nov. 1 in Dallas
Rawlings and his show couldn’t be any hotter. Discovery Channel currently airs Fast N’ Loud in 80 countries worldwide. The reality TV star has also opened another Gas Monkey Bar N’ Grill in the international terminal of Dallas/Fort Worth Airport. If the Gas Monkey restaurants continue to do well, Rawlings says he wants to open “15 or 20 more.” He and his team are currently scouting for location No. 3, which will likely be out of
insistent, so Tim Kuniskis (Dodge and SRT brand CEO) made it happen, basically to get Rawlings to stop asking.” Dodge was pleasantly surprised when it all came together, Malmstead said. “If we can get Mötley Crüe to play at a bar, which they normally don’t do and celebrate our 100th anniversary with a big owner party at Gas Monkey Live, we thought wow. It started out as a crazy idea and now it’s happening. The band was a little reluctant at first and they had to move a few dates around, but then they finally said yes.” Cars, cars, cars will be an integral part of the evening and many of them will get as much attention as Mötley Crüe, according to Malmstead. “We’re hoping for 2,000 people and 1,000 cars, both vintage and late model Dodge Challengers, Chargers and Vipers. People can get thrill rides in a Dodge Viper drift car and a Dodge Challenger SRT
Hellcat that night as well. We’re going to provide show parking that night, because the event is foremost a car show. You must own one of these vehicles to attend and you have to send in a photo of it, but the event is free for owners.” Mötley Crüe has been rocking the world for 33 years, and is still going strong. Rock stars Vince Neal, Tommy Lee, Nikki Sixx and Mick Mars are all car crazy rockers. Earlier this year the video for Mötley Crüe’s classic “Kickstart My Heart” was rereleased with new Dodge scenes added. The video for country music star’s Justin Moore’s version of the ballad “Home Sweet Home” (from the Nashville Outlaws: A Tribute to Mötley Crüe album) also showcases a 2015 Dodge Challenger Scat Pack parked outside the club. For Dodge Challenger, Charger and Viper owners who want more information about the event, visit: www.dodgerocksgasmonkey.com.
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“We’re big fans of Fast N’ Loud and we met with Richard Rawlings and The Discovery Channel at the SEMA show last year and started discussing the idea of working together. We talked about an in-show placement, which has yet to air and Richard has done some dealer commercials for us. The relationship has just continued to evolve from there. We love the way Richard Rawlings operates, because his show is a little different than
the area, but still in Texas. How did the band, the man and the brand all come together for this one-of-a-kind event? “Dodge is currently sponsoring Mötley Crüe’s Farewell Tour,” Malmstead said. “Last month, Richard purchased Gas Monkey Live, a music venue that was formerly owned by country star Toby Keith. So, Richard asked us, ‘Can you get Mötley Crüe to play at my new place?’ He was pretty
34 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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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.
SafeCars Hosts Meetings Around the Country to Discuss Insurer Interference and National Lawsuits Though Halloween is just around the corner, witches, ghosts and vampires aren’t the scariest things on the minds of collision repair professionals across the nation this October; what these experts find terrifying is the amount of undue influence the insurance industry, a third-party entity, exerts on their repair practices and their businesses as a whole. Given the number of lawsuits that have been filed against insurers in 2014 alone, this isn’t anything new, but the collaboration of a group of industry professionals in order to combat this issue has led to the creation of SafeCars, an organization dedicated to the premise that “every vehicle owner deserves a safe and complete repair.” As such, SafeCars has organized a series of meetings across the country to engage other collision repair professionals in the discussion to determine the best way to combat insurer interference in their industry. Ron Perretta, owner of Professionals Auto Body in Altoona, PA and one of SafeCars’ organizers, took time to explain their goals and what they have next on the agenda. “The purpose of these meetings is to discuss the issue of insurer interference in general, but it is also about bringing shops together to answer any questions they have on the current litigation.” SafeCars hopes to explain the differences between several national lawsuits that are currently pending. The first is a class action lawsuit. The second, the complaint Attorney John Eaves Jr filed against multiple insurers on behalf of 21 shops in January 2014, is the pending MDL litigation which Perretta hopes shops will be inspired to participate in. Perretta and other members of SafeCars believe that the collision repair industry has been badly suppressed over the years. Some of the issues they hope to address are static labor rates, the improper use of procedure pages in estimating systems, the prevalence of insurer steering, and the overall influence of the insurance industry in collision repair businesses across the country. On September 20, SafeCars hosted a meeting at the Holiday Inn in Fort Washington, PA, and Perretta says, “the meeting went extremely well. At this
point, PA has more people involved with this litigation than any other state.” SafeCArs also held a meeting in San Diego, CA on October 11, and they have scheduled a meeting for October 18 at the DoubleTree Hotel in Linthicum Heights, MD to run from noon until 4PM. Speakers for the MD meeting include Perretta, Attorney John Eaves Jr and Tony Passwater of the Indiana Auto Body Association. These are only a few of the meetings that SafeCars intends to hold around the U.S. as they travel “up the East Coast and down the West Coast to inform industry professionals of these issues and collaborate to find a solution,” Perretta states, adding “these efforts are way past due.” These free meetings are open to collision repairers and OEM industry vendors. Pre-registration is required, and attendees must provide a business card and photo ID to verify their identify as SafeCars has prohibited insurers from attending these meetings in order to encourage honest dialogue amongst collision repairers and to prevent retaliation against attendees. Explaining why this level of security is necessary, Perretta shares, “I received a phone call from a woman who runs a shop and wants to attend our MD meeting, but she asked if any insurance people will be there because she’s worried they’ll find out she was there getting information. It’s sad when collision repair professionals are so scared that you can’t go where you want to go, be with the people you want to be with, and talk about the things you want to talk about… The last time people acted like this was before Lincoln freed the slaves. This is America, not the Mafia, yet it’s almost like the insurance industry is the Mafia offering their protection to shops but only if we do what they say. We all rely on insurers for business, but if we continue to be scared, our businesses will just get worse. It’s ridiculous for our industry to be at this point, but it’s exactly where the insurers want us.” Ironically enough, Perretta suggests it was “actually a good thing when State Farm tried to jam PartsTrader down people’s throats. It was
36 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
the straw that nearly broke the camel’s back, and it got a lot of shops up in arms, so State Farm kind of did us a favor by introducing PartsTrader.” SafeCars has also released a video on YouTube, featuring Perretta, to address the “pressing industry issues dramatically affecting you, your technicians, your business, and the safety of your customers.” He explains how both the class action and MDL lawsuits will have a positive effect on the industry and how business is done in the near future. Claiming that collision repair professionals across the country are faced with the same issues, Perretta lists these concerns as follows: suppression of labor rates, steering, manipulation of databases, not using procedure pages as designed, refusals to pay for required procedures, refusals to follow manufacturer guidelines, pressure from insurers to cut corners and use inferior parts that could jeopardize consumers’
safety, intervention into collision repair businesses, interference with agreements shops have with their customers and their vendors, and insurers’ efforts to use intimidation to force shops to comply with their demands lest they be blackballed and targeted. In the imminent future, SafeCars plans to host webinars and teleconferences to explain the benefits to a wider audience of collision repairers, but in the meantime, Perretta encourages anyone who is interested to contact him so he can explain how you can help in more detail. In closing, Perretta pleads, “Please don’t sit on the sidelines and do nothing! Help us take back our industry so we’re able to fix vehicles properly and safely for our customers.” Perretta can be reached on his cell phone at 814-931-7669 or via email at ronperretta@aol.com. For more information on SafeCars, visit: www.safecars.us.
AudaExplore’s Annual Total Loss Summit Held in Boston, MA The focus – improving the customer experience.
“Technology is bringing tremendous change to the total loss space. Trends like big data, connected cars and digitally-empowered consumers represent both a threat and an opportunity for insurers,” said Tanya Elkins, Vice President of Valuation & Identification Solutions at AudaExplore. “Attendees agreed that data and technology tools are key to driving loyalty by providing transparent, actionable and timely communications. With more than 25% of total loss claims ending in the loss of the customer to another carrier, these differentiators ultimately earn the customer’s business in real time.” Other topics discussed included salvage trends, new valuation and identification solutions, proposed regulations, data and analytics, and how together they are all impacting the customer experience. From there, attendees discussed how insurance companies can maintain customer loyalty in this new environment. Sessions included Salvage Trends, Technology and Economics, Ways to Disrupt with Customer Experience, and Current State of Total Loss. AudaExplore also unveiled “The State of the Total Loss Customer Experience” study, which found that customers are searching for simple and convenient ways to understand and
Other takeaways focused on how the customer experience is impacted by: ● Digital empowerment ● Salvage trends ● New valuation and identification solutions ● Proposed regulations ● Data and analytics That was the main takeaway from insurance executives at AudaExplore’s annual Total Loss Summit on September 24 in Boston, MA. That focus is now enhanced by rapidly developing technology, a prime topic of discussion at the conference presented by the US business unit of Solera Holdings Inc. (NYSE:SLH), a leading data-driven solution provider to insurance carriers, repairers, dealerships, fleet owners and suppliers. For example, AudaExplore unveiled its Driver Experience Platform solution focused on changing the way consumers are digitally empowered throughout the total loss process. The new total loss offering makes it easier for insurance carriers to share critical claim updates and details on vehicle inspections and market valuations.
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manage the total loss claims process. Demonstrating the importance of communication and transparency, the survey reported that two elements of the insurance claims process that consumers were not satisfied with include processes taking too long and decisions that were not properly explained. In fact, there was a strong correlation between the satisfaction with the explanation of the valuation and claims process and overall satisfaction and the frequency of switching carriers. Forty-one percent of the people who switched carriers after reporting a bad total loss experience said they were not given an explanation of how the number was calculated. “While technology may change, one thing remains the same: the importance of the customer experience,” explained Adam Vasquez, Senior Vice President, Marketing, AudaExplore. “Customers who had access to open communication and a transparent valuation system reported being more satisfied throughout the total loss process. In order to thrive in this changing landscape, carriers must continually improve their processes by investing in new technologies that leverage mobile and big data to meet the evolving needs of their customers.”
Power of Video
was a death trap and it eventually got totaled and the driver got paid off. Our video told the story and showed the evidence clearly, and that was why it worked so well. Since coming out, the Maryland Attorney General and the Insurance Commissioner has seen the video and body shops show it to their customers all the time. We get great feedback about it and it’s also helping us to get higher rankings on Google.” Currently, AP Media is producing a series of four automotive certification videos for Mark’s Body Shop. “K & M has done a few OE certification videos and they’re powerful, to say the least, so we’re doing the same,” Schaech said. “They did a Porsche certification video and now they’re on top of all the search rankings as a result. We use video to inform and educate our customers, but enhanced SEO is also a big part of it. Years ago, we spent a lot of money on cable advertising and the response was weak, but these videos cost us less and they get us more response. We’ll be making more all the time, because we can new see they pay for themselves in the end.”
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ASA-AZ’s Management Training Road Show by Chasidy Rae Sisk
In a recent effort to revive some of their rural chapters, the State Board of the Automotive Service Association of Arizona (ASA-AZ) planned a series of meetings entitled “Management Training Road Show,” to be rotated within Prescott, Yuma, Mohave County and Verde Valley. The series debuted in Prescott on Saturday, September 20. Luz Rubio, Executive Director of ASA-AZ, explains, “the rural chapters around the state do not meet regularly. The board believes that every member needs to have access to information and the opportunity to interact with their peers. The event is sponsored by the State Board, and it gives us the opportunity to bring in nonmembers to learn about ASA and participate in an event where they can exchange ideas and learn from their peers. The board realizes that the value in being a member is more than a tangible benefit, but the ability to interact with other like-minded members.” With the intention of providing rural areas of the state with information on business topics to help them improve their businesses, ASA-AZ’s program for the
meeting was “Successful Marketing for the Right Customer,” helping shop owners identify the right marketing for their shop and their audience. Because marketing continues to be a perplexing issue for many small business owners, guest speakers Daniel Romero of Hibu and Julee Baxley, co-owner of Integrity Automotive in Tucson, provided attendees with multiple marketing suggestions, ranging from mailing postcards to social media to TV and radio advertising. According to Rubio, the meeting “went better than expected. Our 20 attendees really enjoyed the roundtable format and the ability to interact with vendors, and [they] all interacted very well. The open discussion session was very energetic, and both owners and vendors had so much information to share that we had to cut the interaction because we were past our scheduled end time.” ASA-AZ held their second Management Training Road Show in Yuma on Saturday, October 4, and the third event is scheduled for November 8 in Bullhead City. ASA-AZ PO Box 81517, Phoenix, AZ 85069 602-544-2600 - www.asaaz.org
Quest Donates $280,000 in Paint & Abrasives to CREF Quest Automotive Products (QAP) donated $280,000 in paint and abrasives to high school and post-secondary collision school programs across the country through the Collision Repair Education Foundation. The products donated by QAP will allow students the opportunity to practice their collision repair and refinishing skills. QAP is committed to bringing awareness of the shortage of technicians within the collision industry and acknowledge that many collision school programs have budgets that are shrinking each year. “QAP strongly believes in supporting the future professionals within our industry and ensuring they obtain the education that they deserve in order to be successful in the automotive profession,” said David Brunori, President of Quest Automotive Products. “QAP has recently been involved with supporting the Collision Repair Education Foundation through donating product and raising money with its first Artists 4 Education auction, held in the Matrix Automotive Finishes booth during SEMA last year, which raised $25,000 for the Education Foundation. We are proud to be working to-
gether with them again in 2014 with the second annual auction at SEMA this year (booth 10669).” Collision Repair Education Foundation Director of Development Brandon Eckenrode noted, “This product donation from QAP will have a significant impact on the collision school programs by providing instructors with the needed material in order to provide a quality technical education for students. We look forward to working together with QAP to raise additional funds through the second annual Artists 4 Education auction at SEMA this year. I would also invite collision industry businesses to follow QAP’s lead in providing both product and monetary donations to the Education Foundation so that we can work towards ensuring that the graduating collision students are ready for entry-level employment within the industry.” Industry members interested in helping high school and/or college collision school programs through the Collision Repair Education Foundation should contact Brandon Eckenrode at: Brandon.Eckenrode@ed-foundation.org or 847-463-5244.
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Aleris to Add Aluminum Automotive Body Sheet Capabilities in North America Aleris announced on Sept. 24 that it will invest $350 million to upgrade capabilities at its aluminum rolling mill in Lewisport, Kentucky. The investment positions Aleris to meet anticipated significant growth in North American automotive demand as the industry pursues broader aluminum use for the production of lighter, more fuel-efficient vehicles. Aleris is currently a leading supplier to the European premium auto industry, which has led the transition to aluminum driven by tighter emissions standards. “We have partnered with customers in the premium automotive segment from our Duffel, Belgium facility for years to develop and produce some of the most technically advanced lightweight aluminum solutions available today,” Steve Demetriou, Aleris Chairman and CEO said. “We are excited to bring these capabilities to our Lewisport, KY facility to serve automotive customers in North America as they shift toward significantly greater aluminum use.” The company expects to begin construction on the project this fall, with a goal of shipping automotive body sheet material to customers by early 2017. When fully operational,
the new facility will allow for the production of 480 million pounds of aluminum auto body sheet annually. The company’s investment will include the addition of heat treatment and finishing capabilities, including a new wide cold mill, two continuous annealing lines and an automotive innovation center. “The key to our success in Europe has been our strong partnership with customers on research and development,” Demetriou said. “We will take a similar approach with our customers in North America, ensuring they have the aluminum innovation that meets their specific needs.” A recent study of North American light vehicle aluminum content released by Ducker Worldwide, stated that the use of aluminum sheet for vehicle bodies is expected to increase to 4 billion pounds by 2025, from 200 million pounds in 2012. The properties of aluminum, which include its formability, recyclability, and high strength-to-weight ratio, make it an excellent solution for automotive manufacturers as they work to produce lighter vehicles that will meet more stringent fuel emissions in the United States. Aleris has served the automotive
Lamborghini and IMSA Extend Partnership
Automobili Lamborghini and the International Motor Sports Association (IMSA) have extended their partnership for the next four years, with the Lamborghini Blancpain Super Trofeo North America championship being contested under IMSA sanction through the 2018 season. As part of the extended partnership, the 2015 Lamborghini Blancpain Super Trofeo North America event calendar was unveiled. The schedule features 10 rounds at five venues at some of the most iconic, exciting circuits in the United States. Races will take place in conjunction with IMSA’s top sports car series, the most prestigious in the U.S. Lamborghini Blancpain Super Trofeo North America competitors also will race in the World Final, which features top drivers and teams from the three global Blancpain Super Trofeo Series –Europe, Asia and North America. The location of the 2015 World Final will be announced in November. Each Lamborghini Blancpain Super Trofeo North America event will feature two rounds. The season will open May 1–3 at Mazda Raceway Laguna Seca in Monterey, California. The next round will take place June 26–28 at Watkins Glen Interna-
tional in Watkins Glen, New York, followed by Aug. 21–23 at Virginia International Raceway in Danville, Virginia. The season will continue Sept. 17–19 with the series’ first visit to Circuit of the Americas in Austin, Texas, with the next event Oct. 1–3 during Petit Le Mans week at Road Atlanta in Braselton, Georgia. The Lamborghini Blancpain Super Trofeo North America championship debuted in 2013, with drivers competing in the Lamborghini Gallardo LP 570-4 Super Trofeo car, powered by a 570-horsepower V10 engine and featuring permanent fourwheel drive. The series ran in conjunction with IMSA events starting with its second season in 2014 and enjoyed tremendous growth, with grid sizes increasing 50 percent through the season. Lamborghini also plans to expand its racing program in North America by participating in GT Daytona (GTD) class sports car competition with the Huracán GT3 starting in 2016.
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industry from its facility in Duffel for many years. Including Lewisport, the company has 11 rolled aluminum products facilities in North America, the majority of which serve building and construction, truck-trailer, and metal distribution customers. Upon completion of the facility’s upgrade, Lewisport will be the company’s first site in North America that is equipped with aluminum auto body sheet finishing capabilities. Aleris is a privately held, global leader in aluminum rolled products and extrusions, aluminum recycling and specification alloy production. The company serves a number of diverse industries including aerospace, automotive, defense, building and construction, industrial, and commercial transportation. Headquartered in Cleveland, Ohio, Aleris operates more than 40 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.
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Energy transfer
data is that the company doesn’t just use OEM build data but actually measures vehicles off the tires and in clamps just as is done in shops. That ensures the system offers more accurate, real-world measuring data, he said, because such a set-up takes into account the slight sagging the front and rear of a vehicle does when it is up in clamps. Perry said another key message to technicians in his training is that measuring is almost always the solution to challenging repairs. “If you can’t figure out what the problem is, take more measurements,” Perry suggests. “You’ll find it eventually. You’re just not measuring far enough. You’re not taking enough points to identify all the damage.”
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 41
Continued from Page 4
MSO Consolidations
of claims would drop as a result of that is enough to make me know that we will be in trouble,” she said. “My employees are better off this way,” said Maimone. “Several have been given a promotion and better opportunities. I couldn’t give them that.” Shortly after acquiring Marco’s, Service King reached an agreement to acquire Car West Auto Body, an MSO with seven shops in Northern California. With these additions as well as the 62 Sterling Collision Centers the company acquired earlier this year in April, Service King now has 191 shops in 20 states, including 18 in CA. Service King, based in Dallas and founded nearly 40 years ago, told Autobody News that, due to company policy, they weren’t able to comment further until their acquisition of Carwest was finalized. However, Service King released the following statement: “Our recent Sterling Autobody acquisition and Marco’s Collision Centers acquisition serve as a platform for our growth in
the California market,” Chris Abraham, the CEO of Service King, said in the press release. “The addition of Car West and their 360 teammates will give us an even greater footprint in the heart of Silicon Valley. We are excited to have the team on board and look forward to delivering the ServFarzam Afshar ice King standard file photo of exceptional customer service and high quality repairs in these communities.” “People are selling because of many different reasons,” said Farzam Afshar, CEO of VeriFacts Automotive, a well-respected training company that describes itself as the industry’s only “independent onsite quality verification service and in-shop technician assessment provider.” One reason, Afshar said, “is that they able to get a very high rate of return on their investment. In addition, business owners increasingly need to compete with consolidators in their backyard while vehicles are becoming more complex. See MSO Consolidations, Page 57
Continued from Page 4
Vincent Romans
Some of these models might include various types of repair segmentation; e.g. aluminum or other new material/technology, fleet, small hit expedited repair, paintless dent repair, cosmollision, ethnic market, and car auction repair. As MSO consolidators gain in the breadth and depth of their reach and coverage in markets around the country, insurers will look to balance their local market networks with strong performing and recognized branded independent operators. The balance of power will be normalized as long as the independent’s metrics and service offering are comparable to the MSO consolidator. Insurers also want to have local market independents and MSOs competing with the MSO consolidator so that the best peer performance is always being established in a market among all current and prospective repairers. What is the benefit/challenge of being an MSO vs. a single-location shop when forming a relationship with insurance companies? MSO consolidators and many non-consolidator MSOs have the personnel, sales/marketing structure and budget to frequently call on insurance company corporate decision makers as well as multi-level contacts regionally. They participate on insurance company advisory or re-
view boards which brings them to the table for input, old business and new concept discussions, and collaboration on current and future business process and performance models. They develop multi-level personal relationships that help when issues need to be resolved quickly. However, if service deteriorates somewhere in the country for a larger MSO it could have negative ramifications across their national footprint or some other regional market of theirs. The MSO consolidator offer insurers broader multiple market coverage than smaller MSOs and independents. However, local market MSOs and independents can and do market that they provide that laser focus local market performance that insurers want. Many independents and local market MSOs position and market themselves as high performers relative to the MSO consolidator in their geographic niche. A strong recognized brand with top performance metrics relative to a MSO consolidator can give the independent and local market MSO a competitive edge when vying for insurer DRP business. MSO consolidators are also offering self-managed and co-managed capabilities for customized and new DRP models, quality assurance and self-audit process and procedures, call centers, and single point of contact, all of which helps reduce costs for the insurer while positioning the MSO consolidator for business that the independent operator may find more difficult to secure.
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in the Windy City. As part of his company’s ongoing Anti-Texting Campaign philanthropy, Gottfred decided to participate in the project. “We purchased to participate in the Great Chicago Fire a five-foot fire hydrant made out of Hydrants Project, a public art exhibition fiberglass for the project to decorate,” that celebrates the heroism of Chicago’s Gottfred explained. “We painted the firefighters. This citywide public art inwords ‘Texting & Driving, It Can Wait’ stallation features oversized replicas of on the fire hydrant and then decided to Chicago’s iconic standard fire hydrants, take the whole thing one step further. designed, painted, decorated and/or We had purchased a little Smart Car a dressed by local artists, architects, and while back and we have our logo on the even fashion and interior designers. side of it. We use it to shuttle customers These colorful sculptures are placed around or pick up parts and we love it. throughout the city in tribute to the We thought maybe we can use the work and heroism of Chicago’s beloved Smart Car and the hydrant together to firefighters. At the conclusion of each get our anti-texting message out there. year’s exhibition, the hydrants are gathWe disassembled the front end of the ered for a final exhibition before being Smart Car and parked it out front of our shop and made it appear as though the Smart Car had just bashed into the fire hydrant. We get 40,000 people driving by our shop every day and so pretty quickly everyone was talking about it.” Then last October, Gottfred Erie-LaSalle Body Shop was founded in 1934 and over the decided to use Halloween as years its iconic neon sign has become a Chicago landmark an opportunity to take his antiauctioned, with net proceeds benefiting texting message to another level, he charities that support the families of fire said. “We put a dummy in the front victims and other fire safety programs seat of the Smart Car and deployed an Continued from Page 26
Bob Gottfred (center) has been running ErieLaSalle Body Shop since 1975 and soon his sons Jim (left) and Jay (right) will be taking over the reins
car accident with serious injuries, and after we explained what was going on, we all laughed about it and they took a few photos. We left it there until the end of November and then the hydrant got auctioned off, raising $500 for the 51 Club. We bought it originally for
$1,500 and that money went to Club 51 too, so we donated $2,000 total, which was nice.” Once Gottfred got involved in his anti-texting campaign, he stopped texting altogether. “When people use their cell phones while driving, the bottom line is that they’re distracted,” he said. “I was doing it too, because you get a text message and your first reaction is to respond to it. But in the end it can really wait. We get damaged cars in here all the time and the customers will never admit that they were texting when it occurred, but I know many of these accidents are the result of texting.” Gottfred teaches CE (Continuing Education) classes to insurance agents and now he has created a class dealing with the topic of texting. “We discuss how to insure teenage drivers and what can happen when they text,” he said. “I show some gruesome videos to get their attention and to raise their consciousness about texting.”
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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
Are You Marketing to Merely Survive or Are You Trying to Grow with Thomas Franklin
By now most shop owners and managers have realized that when it comes to marketing, one size does not fit all. Franchises and multiple shop operations that account for about 15 percent of the shops in the U.S. are in a position to approach marketing from an entirely different perspective from the independent shop owner. But 72 percent of the shops are still independent, single-location shops and many of these shops market just to keep surviving. The question then becomes, what do you mean by “grow?” Growth by cloning or opening other locations is more of an operational strategy than a marketing proposition. Real growth for an independent shop is simply about getting more vehicles in the door and enjoying more profit on every job. Franchises and MSOs can afford to advertise just to build name recognition to try to drive business to any shop in the group. But few independents can afford to spend marketing dollars solely on building name recognition. A marketing plan has to differ-
entiate a shop from the competition and provide a strong reason to select that shop over all the others. A recent article in Inc. Magazine might suggest one way to do that. A software company originally called “37 Signals” changed it’s operating philosophy and changed its name to “Basecamp,” the name of a project management product that represented 87 percent of their sales and 90% of their recent growth. This reminded me of a strategic move made by Colonel Harlan Sanders when he was operating a small chain of fast food operations with about 100 items on the menu. He was having serious trouble trying to grow so he hired a consultant named David Thomas. The first thing Thomas did was cut the menu down to a handful of items and renamed the franchise operation, “Kentucky Fried Chicken.” From there on, the growth was phenomenal. Now obviously most shops can’t eliminate any of the steps needed to restore a vehicle back to pre-accident condition, but they can always choose what they want to
2015 Hyundai Genesis Preview Before SEMA Debut
ARK Performance is providing a sneak preview of their upgrade package for the 2015 Hyundai Genesis Sedan which will be revealed in full at SEMA.
Katzkin diamond door panels and stitched seats make up the interior changes. ARK installed a front strut reinforcement bar and front/rear stiffened sway bars along with an AirREX air suspension. Other changes include beefier Brembo front & rear brakes, ARK knuckles and control arms as well as custom lightweight forged wheels wrapped around in Nitto Tire NT05 summer tires. The most significant upgrades can be found under the hood where the V8 5.0-liter engine has received a Rotrex supercharger, high-flow catted 2015 Hyundai Genesis. Photo Credit: automobilemag.com test pipe and downpipes. Exterior advancements to the In addition, ARK installed a perform2015 Hyundai Genesis include an ance intake system, race-spec driveaerodynamic kit developed by Infinite shaft, GRiP exhaust and a carbon fiber Auto Design, encompassing wider engine cover. All these changes have bumpers made from carbon fiber, bumped output from the series 420 beefier front & rear fenders, carbon bhp (313 kW) to 550 bhp (410 kW). fiber side skirts, rear trunk decklid, The 2015 Hyundai Genesis different headlights and exterior wel- Sedan by ARK Performance will be come lighting. revealed on November 4 at SEMA. 44 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
emphasize in their marketing. And this may be the key to convincing the buying public that this shop is the right one for them. If you decide to try this approach to marketing, the next question is “what to emphasize?” Paint specialty shops like Maaco have already begun to capture some of the body work that independent shops rely on, but they keep paint as their central focal point. While any shop is free to make refinishing quality their main marketing emphasis, there may be reasons to choose a different emphasis. One big advantage an independent shop has over franchises and MSOs is the very fact of their uniqueness. While these other shops may have a cookie-cutter sameness look, the independent shop owner can individuate any way he or she chooses. I’ve seen a number of shops that emphasize the family aspect of their business. Photos of several generations of owners adorn the walls, the website and any ads. The em-
phasis, of course, is “we care more because for us it’s personal.” Another key factor in marketing emphasis choice is shop location. A shop in Silicon Valley or other hightech region may thrive best with an emphasis on the technical aspects of collision repair. A contemporary focus on hybrids and exotic metal repair specialties could communicate well in an area like this. In an entirely different direction, I ran across a shop in horse country that emphasized a specialty in working on horse trailers and larger transport vehicles. In an age like ours where big box stores have become the norm, a lot of people choose to look for vendors who understand their particular niche in life. Choosing which of these to focus on brings us back to the question, do you want to market to just survive, or do you want to really grow? Whatever you decide to emphasize in your marketing, to make it a See Marketing to Survive, Page 57
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AkzoNobel Hosts Sustainability Media Briefing in Washington D.C.
Collison repair industry editors gathered for an exclusive media briefing hosted by AkzoNobel Automotive & Aerospace Coatings (A&AC) North America. The event was held in conjunction with the company’s 2014 summer Acoat Selected® North American Performance Group meeting, September 17-19, at the Ritz-Carlton Hotel Pentagon City. The primary theme of the briefing centered on the need for the collision repair industry to no longer view sustainability as an option, but as a critical imperative to “future proofing” the industry’s long-term growth. Several key insights were presented for how the industry can achieve sustainability through a “triple bottom line” approach that results in greater efficiency, lower negative environmental impact, and cooperative social engagement in the work place. Guest speakers at the briefing included: · Dr. Manish Mehta, Director of Strategic Projects & Sustainability at The National Center for Manufacturing Science, who offered a 360° view of what he calls “co-opetition.” Dr. Mehta provided meaningful recommendations for how the collision repair industry can leverage what other
industries are doing to achieve sustainability. · Mr. Rocco Neglia, Vice President of Claims at Economical Insurance Group, shared his company’s journey to building sustainability into their corporate strategy, and how the implementation of effective, function-specific processes into the work environment has improved the performance, professionalism and “team vision” of their body shop network in Canada. A featured highlight of the briefing was the debut of AkzoNobel’s new online sustainability assessment tool specifically developed for helping body shop owners determine their level of sustainability, benchmark current performance against other collision repairers, and provide a path for boosting their competiveness in the marketplace. A&AC’s Commercial Services Leader, Barry Rinehart, demonstrated various features of the assessment tool and creative ways for how industry stakeholders can utilize this innovative resource. “The online sustainability assessment tool is the result of a unique collaborative effort with Economical Insurance Group of Canada, and is a great example of how powerful col-
lective thinking and actions can be in bringing tangible solutions to collision repair,” said Rinehart. “We are very excited at the initial test feedback we’ve received about the online assessment tool and look forward to seeing how it can be leveraged across the industry in the U.S.” The briefing concluded with a rallying call by event facilitator, AkzoNobel North America Communications Manager, Bill Orr, for collision repair professionals to pro-actively join forces in advancing sustainable principles and practices that both ensure a thriving industry long-term, and provide real-time solutions to the industry’s most critical issues today. In closing comments, Orr stated, “We were extremely pleased with the depth of content presented by our guest speakers and the enthusiastic participation of industry media. After leading the sustainability ‘charge’ for more than a decade through numerous sustainability-focused programs, AkzoNobel is clear on the fact that it will take a coalition of commited industry leaders to secure the future of collision repair.”
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Ferrari Recall of 458 Italia and Spider Models
Ferrari is recalling 3,000 458 Italia and Spider models for trunk safety issues. The new models' trunks will be able to be opened from the inside to decrease the possibility of injury. The previous cars lacked this feature, and were found in violation of federal safety mandates. Ferrari owners will be notified by the company and will need to return their car to the local dealer for modifications.
Chrysler Recall of SUVs
Chrysler Group is recalling an estimated 184,215 SUVs because a possible short circuit in a part could disable airbags and seat belt pretensioners. The same part was responsible for a Sept. recall of more than 850,000 Ford vehicles. Chrysler said an electrical short circuit may occur in the occupant restraint control module in certain 2014 Dodge Durango and Jeep Grand Cherokee SUVs. The automaker said it is unaware of injuries or accidents related to the issue. The recall covers 126,772 vehicles in the U.S., 8,106 in Canada, 3,722 in Mexico and 45,615 elsewhere.
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Collision Repair Instructor Inspires Students, Paves Way for SEMA
Snook. “It took some prodding to find that their interests were in the custom Inspirational teachers can be hard to end of the industry. After completing the come by, but their impact lasts a lifetime. normal curriculum, the brothers would Dan Snook, Department Coordi- stay after and mix all these wild colors nator of Collision Repair Tech at Cy- and come up with unique paint designs. press College in CA, fulfilled that role That is where they excelled.” in the lives of former students CuuCuulong and Jim opened Buddha long and Jim Le. Concepts Design in 2008, but had been “After graduation, our teacher/stu- receiving attention since they started dent relationship with Dan turned into a working out of their garage in 2005. friendship, and eventually we became Their unique custom fabrication painting like family,” said Cuulong. skills have landed their finished products in Super Streetbike, Hotbikes, Baggers, Import Tuner, Super Street, Face Off, Performance Bike Japan, and Street Fighter UK magazines, a T-Mobile commercial, Hawaii 5.0, and in three music videos with artists Chris Brown, Calvin Harris and Nero. Seventy-percent of the shop’s profit has come from motorcycle projects, but a Dan Snook poses with his newly designed Harley. recent partnership with a Photo Credit: Dan Snook & Cuulong Le luxury wheel company has The three met on Snook’s first day brought their focus back to cars. of teaching, which happened to be the “It’s nice to get noticed, but it’s not Le brothers’ first day at Cypress. about the money, it’s about doing what “They were typical college kids we love,” said Cuulong. “As long as we who weren’t sure what they wanted to are making enough to support ourselves do, but shared a love for cars,” said and our families, we’re happy.” by Victoria Antonelli
Even with international notoriety, the Le brothers remain humble, crediting success to their former instructor, as well as Frederick B., renowned airbrush artist in Orange County. “Dan is the reason we do what we do; he taught us how to paint,” said Cuulong. “He has been a major contribu-
Close-up of the intricate designs by Cuulong and Jim Le. Photo Credit: Dan Snook & Cuulong Le
tor to our success, and without him our dream wouldn’t be possible.” That is why the Le brothers were eager to give back when Smith’s girlfriend, Michelle, came to them with an idea for his 50th birthday. Snook thought his Harley was being detailed, when in reality, it was at Buddha Concepts Design, receiving an over 50-hour-long makeover. “The story kept changing, and the process was taking longer than usual, but I honestly didn’t think twice about
it at the time,” said Snook. Upon entering the birthday party, Jim introduced Snook to his now burntorange Harley, varnished with paintings of their beloved teacher, while Cuulong stood back to watch the reaction. “He had tears in his eyes,” said Michelle. “I was floored and deeply touched,” said Snook. “It’s not a feeling you can put into words.” Snook and the Le Brothers will be heading to Las Vegas for the 2014 SEMA Show. This is Buddha Concepts Design’s fifth year of attendance. Their features for this November include a full-custom Lexus GS 350 for AirRex Suspension, a Lexus LS 460 for the air runner’s booth, a Lexus LS 430 for R1 Concepts and a Nissan 240sx for the VIP Modular Wheels. “We are expecting a last minute addition before the show, but we’d prefer to not have a repeat of our first SEMA experience,” said Cuulong. “We worked 20 hour days, redesigning three cars in six weeks. I lost 35 pounds.” Snook said he is proud of his former students and all their hard work. He stresses the importance of “success that can’t be weighed by a paycheck,” and the need for more stories, like this one, that highlight industry achievements.
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Omix-ADA to Give Away 2014 Jeep Wrangler at SEMA
Omix-ADA, a manufacturer of Jeep, truck and off-road accessories, announced on October 7 that it will use its Off Road Success Center (Booth #34000) at SEMA to give away a fully-loaded Jeep.
graded rear tire carrier, making it not only look good but also ready to tackle any off-road excursion, according to reports by Scott Rousseau of off-road.com. Off Road Success Center OmixADA will also host several civilian Jeeps, including pre-WWII prototypes to the modern day JK Wrangler. The Off Road Success Center will also exhibit a custom 2015 four-door Jeep Wrangler built for SEMA Cares; a committee dedicated to supporting the education of students pursuing careers in the automotive aftermarket. The SEMA Cares Jeep is designed to raise awareness about the committee’s Anvil Blue 2014 Jeep Wrangler Unlimited Rubicharitable efforts as it tours the con. Photo Credit: www.offroad.com United States. It will be outfitForty semifinalists will be se- ted with one of Omix-ADA’s exclulected over the course of November sive Rugged Ridge restyling 4-6, and the winner will drive away packages and later auctioned as part in a brand-new, fully-equipped Anvil of SEMA Cares’ fundraising efforts Blue 2014 Jeep Wrangler Unlimited in 2015, according to Rousseau. Rubicon on the last day. The winning Jeep will be outfitted with Rugged Ridge’s new Summit restyling package, which includes the company’s XHD Modular Bumper, grille inserts, and an up-
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SEMA: Sales of Auto Parts & Accessories Reach $33B CHECK IT OUT!
Sales of automotive specialty-equipment products continue to climb, reaching $33 billion in 2013. The number represents a 6.7 percent increase over the previous year and marks the fourth consecutive year of growth, according to the SEMA Annual Market Study that is available at www.sema.org/2014samr. “The Specialty Equipment Market produced the highest growth since the recent recession,” said Chris Kersting, SEMA president and CEO. “There are a number of factors that figure into this upward trend.” The special-equipment market includes products that enhance a vehicle’s performance, styling, comfort, convenience and safety. Among the factors driving the industry’s growth are: ● Street performance products accounted for 26% of sales. The renewed focus on performance models by the OEMs has helped drive interest in this segment. New models such as the Scion FR-S, redesigns like the 2015 Mustang, and high-performance packages such as the Hellcat Challenger have inspired the industry and consumer alike to aim for increased performance. ● There was a healthy upward tick for the truck market. Sales of specialty equipment for light trucks grew 8% in 2013 to post the market’s best sales year
PPG Waterborne Shop Conversions Exceed 10,000
PPG Industries’ (NYSE:PPG) automo- preciate this and see a real difference in tive refinish business has now converted their shops’ productivity.” Jones attributed the success of more than 10,000 collision centers in the United States and Canada to its water- PPG’s waterborne products to factors borne systems, with the majority of these such as a highly-effective and easy CONconversions taking place in National Rule VERT WITH CONFIDENCE® transiareas rather than in low-VOC (volatile tion process and the service and support customers receive from PPG and its bestorganic compound) compliant regions. According to Tim Jones, PPG wa- in-class distributor partners. “Collision terborne segment manager, more than centers are converting to PPG’s water10,000 collision centers in North Amer- borne with great results,” he said. “Shops ica are now using PPG waterborne prod- are finding the actual conversion to waucts, with more than 50 percent of these terborne is simple. They’re also finding shops in National Rule markets. This that we support them and view their promeans most PPG customers choose to ductivity as a measure of our mutual sucuse waterborne products and systems cess.” Envirobase High Performance and even though they are not required to do so to meet low-VOC regulations. They Aquabase Plus products are now in their do so voluntarily because they want to third generation. PPG introduced its waterborne technology to the international improve their productivity, he said. “Waterborne is not just a compliance OEM (original equipment manufacsolution anymore,” Jones said. “More than turer) market in 1986 and brought the 10,000 PPG customers in the U.S. and world's first commercialized refinish Canada see the value in superior color waterborne basecoat to market in 1992. matching, excellent throughput and per- Since then, PPG has added new primers formance, consistent color mixes and other and clearcoats to the two brands and key qualities that our waterborne products will, according to Jones, continue to exprovide. PPG has a long-standing com- pand the product lines’ offerings. For more information about PPG mitment to the collision repair industry to deliver high-quality and time-saving prod- and Envirobase High Performance and Give us your® High opinion on matters affecting the industry. Aquabase Plus waterborne products, Performance ucts. ENVIROBASE and AQUABASE® Plus products are eas- call 800-647-6050 or visit www.ppgreier to blend and apply; our customers ap- finish.com.
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 49
World Steel Dynamics Predicts Short Gains for Aluminum Before High-Strength Steels Take Over
World Steel Dynamics’ (WSD) report AutoBody Warfare: Aluminum Attack, based on its independent consultation with steel, aluminum and automotive experts, concluded that steel can easily deliver the weight savings required to meet federally-mandated fuel economy targets for most vehicles. The report was presented to steel executives Oct. 6 at the worldsteel Annual Conference in Moscow. “This timely analysis demonstrates the value of advanced highstrength steel designs in meeting the needs of automakers while exposing the cost penalties of switching to aluminum,” said Lawrence W. Kavanagh, President of the Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI). “We are enthusiastic about the findings, which confirm our extensive research showing automakers can meet their weight reduction goals with advanced high-strength steels. The report’s conclusions, and forecast for steel, are good news for customers and consumers as they demonstrate that automakers can and will continue to depend on the performance of steel and the safety, fuel efficiency and sustainability it provides.”
Other key findings of the WSD study include:
● Advanced high-strength steels will offer more than sufficient lightweighting opportunities to automotive companies in the next decade, and from 2021-2025, automotive designers will be implementing an array of higherstrength steels; ● Once engineers decide to redesign steel-intensive vehicles from the ground up, they will implement sizable and relatively low-cost weight savings with advanced high-strength steels, enabling continued supply of steel closures; ● Advanced high-strength steels, even if priced substantially higher than other auto sheet, are quite attractive given their weight savings relative to aluminum, and will rise to 23.7 million tonnes in 2025, a 330 percent gain displacing mild steel and alternative materials; and, ● Automakers will not widely adopt aluminum or other alternative materials during their next round of design, and the growth in aluminum sheet in cars, SUVs and light trucks will peak about 2018. A summary of the report can be found at www.autosteel.org.
Daimler Chairman Dr. Dieter Zetsche to Deliver Keynote Address at 2015 Consumer Electronics Show
The Consumer Electronics Association (CEA)® announced on Oct. 6 that Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and Head of Mercedes-Benz Cars, will deliver a 2015 International CES® keynote address focused on the latest advances in autonomous vehicle technology. Owned and produced by CEA, the 2015 CES, the global gathering place for all who thrive on the business of consumer technologies, will run January 6-9, 2015 in Las Vegas, Nevada. Dr. Zetsche will discuss autonomous vehicle technology and its impact on society, mobility and the environment, as well as raise ideas and questions for the future. In addition to his insights on the future of Daimler Intelligence Drive, Dr. Zetsche’s 2015 CES keynote will feature the worlddebut of a new car concept. His address is slated for Monday, January 5 at 8 pm at the Chelsea Theater in the Cosmopolitan. “With a passion for technology innovation, Dr. Zetsche has led Mercedes-Benz to a top perch in the automobile industry, constantly re-inventing technology offerings and perfecting the driver experience,” said Gary Shapiro, president and CEO of
CEA. “Cars are becoming the ultimate mobile devices, and Mercedes-Benz’s presence at 2015 CES will definitely create synergy with other platforms and mobile technologies on the show floor. We welcome Dr. Zetsche to the 2015 CES keynote stage and look forward to hearing his views on the future of autonomous driving.” The automotive market remains a driving force behind the strength of the global consumer technology industry. The growth of new vehicle sales in 2014 will propel factory-installed systems to reach $11 billion in revenue, an increase of 20 percent over the past year. Dr. Zetsche served as a member of the Board of Management of Daimler AG since December 1998 and as Chairman of the Board of Management of Daimler AG since January 2006. He is also Head of Mercedes-Benz Cars Division. Since joining the research department of then Daimler-Benz AG in 1976, Dr. Zetsche has served the company for more than three decades. The 2015 CES will feature more than 3,500 exhibitors unveiling the latest consumer technology products and services. For more information on the 2015 CES, visit CESweb.org.
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Toyota Produces Urban Utility Concept Vehicle
Toyota revealed the Urban Utility concept vehicle—or U2—on September 10 at a private panel discussion hosted by Make: magazine in San Francisco, CA. The car design reflects the growing need for innovation in urban areas, which was discovered through interviews with Maker Faire participants and internal Toyota market research. The Toyota U2 concept, developed by Toyota’s Calty Design Research in Newport Beach, CA, features a new, open architecture and purposeful materials. This vehicle sports a roof that can be rolled back, a foldable tailgate that transforms into a ramp, and a customized interior. The concept car made its first public appearance at World Maker Faire in New York on Sept. 20 and 21. “Toyota saw an opportunity for a new approach to an urban vehicle based on increasing re-urbanization of our cities and urban drivers’ desire for flexibility, fun and maneuverability,” said Kevin Hunter president of Calty, Toyota’s North American design studio. “Calty keeps a number of projects concealed while exploring ideas and products. Revealing a project like the U2 gives people a window into the constant innovation that happens inside Toyota and our Calty studios and one possible
future for urban mobility.” Bringing the concept to a Maker community event allowed Toyota to gain feedback from a key audience. “As more products are developed expressly to appeal to Makers and their deep appreciation of design esthetic combined with open architecture and practical utility, we expect to see more trusted brands like Toyota take an unconventional approach to not only product development but their marketing and launch strategies,” said Sherry Huss, VP and cofounder of Maker Faire. “Leveraging the growing Maker movement and Makers’ broad sphere of influence can impact the success of consumer brands and future products.” The Toyota U2 concept is a flexible, functional gadget that owners can customize according to individual, onthe-go needs. The retractable utility bar can serve unique uses, such as holding a desk or grocery bag hooks. Side windows flip up for easy access from roadside. It has a durable underbody and tool-like exterior with a customizable side panel. The box-like design at the rear emphasizes the storage capabilities. Other highlights include roof panels that retract, rear glass that can slide into the tailgate and a tailgate that folds down.
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Mike Miller Appointed National Director of Certified Network Development for Assured Performance
Assured Performance announced the appointment of Mike Miller as National Director of Certified Network Development. Mike will be developing and managing Assured Performance’s national network of on-site business analysts, business coaches, and body shop Inspector-auditors. Mike Miller has 27 years experience serving the insurance and collision repair industries. His career began in the insurance arena including helping to start up and manage a direct repair program. Mike then moved to the shop world becoming a shop manager. Later, he became an I-CAR instructor and eventually Regional Manager and Zone Manager. For the past several years, Miller has been I-CAR’s National Field Support Manager developing and managing the I-CAR instructor network. Mike has been instrumental in course development, network management, and effectively training more than 450 part-time instructors and over 2,000 volunteers. Mike was also in the United States Army where he attained the rank of Captain. Scott Biggs, CEO of Assured Performance said, “We are very proud to have Mike’s proven management
capabilities added to our team. He is exactly the kind of leader and technical expert we need to refine and improve our business development and onsite inspection capabilities strengthening our national Certified Repair network of dealer and independentlyowned body shops. He also provides a natural liaison with I-CAR, an organization with which we work closely.” He said Miller’s proven abilities in managing large-scale networks and providing instructor training will be instrumental in helping deliver a series of business development and shop certification services to dealer and independently-owned collision repair businesses. The business development services are essential for the shops that have or want to become part of the national shop network, officially certified and recognized by a growing list of top automakers including Ford, Chrysler, Nissan, and General Motors. The business analysts and on-site inspectors are key to helping the network shops perform at the highest level of profitability and efficiency while delivering an unparalleled level of customer service.
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Iowa Pulls Plug on Tesla Test Drives
Tesla Motors Inc. cut short a testdrive event in Iowa earlier this month after state regulators said the electricvehicle maker was improperly acting as a dealer. According to the Des Moines Register, Tesla began offering test drives in its Model S on Sept. 9 at a hotel in West Des Moines. The company canceled the third and final day of its program at the request of the Iowa Department of Transportation. Paul Steier, director of the department’s Bureau of Investigation and Identity Protection, told the Des Moines newspaper that state law requires auto dealers to be licensed. By offering test drives, Tesla was acting as a dealer, Steier said. Steier did not immediately return a call from Automotive News. A Tesla spokeswoman told the Register that the company did not believe the statute applied because it was not selling cars, only providing test drives. No other test-drive events are planned in Iowa, the paper reported. Tesla does not have a store in Iowa. Bruce Anderson, president of the Iowa Automobile Dealers Association, said he notified state regulators about the test drives after he saw
Mercedes Will Train 26,000 in the Brand’s New Culture
Mercedes-Benz USA and its dealers are spending about $30 million over the next four years to train 26,000 employees and immerse them in the brand’s culture. Later this year, the first wave of employees will go through a two-day program called the Brand Immersion Experience at the Mercedes-Benz factory in Vance, Alabama, near Tuscaloosa. The investment includes a $6 million revamp of the visitor center at the factory for classroom training, including digital interactive displays. “We have been driving hard for the last few years on the customer experience,” said Gareth Joyce, vice president of customer services at Mercedes-Benz USA. “It is not just about the product; it is all about the package and how you look after the customers as well. “This is just one of the building blocks in our portfolio to drive that program forward through our dealer network.”
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Tesla promoting the event online. Test drives are a regulated activity in Iowa, Anderson said, according to a 1970 statute that requires anyone engaged in the business of auto retailing to be licensed. The state wants to make sure a retailer is insured and bonded, he said. “It’s really a customer protection issue,” Anderson said. Of Tesla, “I’ll take them at their word that they didn’t know” a license was needed to offer test drives,” Anderson said. Tesla has tussled with dealers in a growing number of states over whether its factory-owned stores violate state laws on direct sales. In some states recently, including Pennsylvania and New York, compromises were reached, allowing Tesla to operate factory stores but with a cap on the number of locations allowed. Anderson said Iowa’s statute prevents direct sales by a manufacturer with narrow exceptions for uses such as minority dealer development.
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New Legislation Introduced to Simplify Loan Applications
U.S. Rep. Sam Graves (R-Mo.), chairman of the House Small Business Committee, introduced a bill to simplify the loan application process with the Small Business Administration (SBA). Under the bill, the SBA would be required to accept e-signatures and electronic records for the certification of all documents associated with the management of its financing programs. Referencing this legislation, Graves said, “A lengthy and complicated loan application process is often a great impediment for many small businesses to secure the capital they need to get their products or services to market. The majority of the time spent during the SBA loan application process consists of lenders collecting required documentation and having to seek out the ink signatures of borrowers. The Small Business Loan Simplification Act of 2014 will employ widely used and proven esignature and records technology to reform the SBA loan process. This will likely cut the application process by an average of two to three days.” See the full text of this bill at: http://smallbusiness.house.gov/uploaded files/small_business_loan_simplification Give us your opinion on _act_of_2014.pdf
Toyota Moves to Aluminum Hood for Camry in 2018
Toyota Motor Corp. is set to become the next global automaker to begin making the expensive shift from steel to aluminum for a high-volume vehicle, according to reports in Automotive News. The U.S.-built Camry, the country’s best-selling car, is slated to get an aluminum hood in 2018, according to a source familiar with the plans. Toyota’s first foray into aluminum closures in North America will come next year when the 2016 Lexus RX 350 crossover, which is made in Cambridge, Ontario, gets an aluminum hood and liftgate, the source said. The aluminum sheet for the Camry hood likely will come from a joint venture between Toyota Tsusho Corp., a trading company affiliated with Toyota Motor Corp., and Kobe Steel to produce more aluminum sheet metal in the U.S. Toyota will be among the venture’s first customers, several sources confirmed. Production is expected to begin in 2017 and ramp affecting up to full output at the bematters the industry. ginning of 2018.
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Roush-Modified 2015 Ford Mustang To Be Revealed at SEMA
Aerodynamics will improve the new body pieces. A set of upgraded The Roush-tuned 2015 Ford Mus- Brembo brakes peek out from behind tang, featuring body, interior, han- the new Roush 20-inch wheels with dling, and powertrain upgrades, will Cooper RS3 tires. Two types of adbe making its first appearance at the justable coilover shocks are said to 2014 SEMA show. be available, according to reports by Roush 2015 Ford Mustang Jason Udy, motortrend.com. models feature a more prominent Previous iterations of the Roush grille and front fascia with splitter Mustang came in Stage 1 (cosmetic) and grille, accompanied by new hood and Stage 2 (handling) kits for V-6 and GT models, and Stage 3 (performance) kits for the GT model only. With the new 2015 Ford Mustang, Roush will offer RS for the V-6 model, RS1 for the Mustang EcoBoost model, RS2 for the GT, and an RS3 version that adds a supercharger to the GT’s 5.0-liter V-8. Supercharged versions could offer more than one power Roush-modified 2015 Ford Mustang. Photo Credit: level with as much as 674 www.horsepowerkings.com hp possible, according to vents and an available hood scoop, reports by Jason Udy, motortrend.com. moving the fog lights to the center air Roush is also expected to offer intake. The doors now feature side, many of the parts al a carte for ownand the rear sports a deck lip spoiler ers who want to modify their vehicles and a redesigned fascia. This latest after purchase. More details will be version features quad exhaust tips revealed at the SEMA show in Nopeeking out of the new rear diffuser. vember. by Jason Udy
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Chevrolet Debuts Pickup Concept Trucks for SEMA
For the last few years, Chevrolet has used the annual State Fair of Texas in Dallas to preview its plans for SEMA, according to an article written by Mark Williams on pickuptrucks.com. This year, the focus of the state fair and SEMA is pickup concept truck parts. The Silverado “Toughnology” reminds customers that aluminum, the latest material-fad of the auto work, cannot compete with the highstrength of steel, which is located throughout this pickup truck’s frame, cab, body and interior, which, GM has always noted, is “much less cost intensive than more exotic materials.” This concept also showcases GM accessories like unique grille inserts, sidesteps, a hard tonneau cover, a carpeted bedliner, fenderflare accents and tinted headlights. A graphic package, including 20inch wheels and tires, OnStar 4G LTE with Wi-Fi hotspot capability, a wireless charging mat and Siri Eyes Free, is also included. Read the entire article: http://news.pickuptrucks.com/2014/ 09/chevrolet-debuts-a-pair-of-pickup -concept-trucks-for-sema.html
Cadillac to Introduce New Technology on 2017 Models
Cadillac will begin offering advanced “intelligent and connected” vehicle technologies on certain 2017 vehicles, General Motors CEO Mary Barra said on Sept. 7 during her address at the Intelligent Transport System (ITS) World Congress in Detroit. In about two years, a new 2017 Cadillac vehicle will offer customers an advanced driver assist technology called Super Cruise and the 2017 Cadillac CTS will be enabled with vehicle-to-vehicle (V2V) communication technology. Super Cruise, the working name for GM’s automated driving technology, will offer customers a driving experience that includes hands-off lane following, braking and speed control in certain highway driving conditions. The system is designed to increase the comfort of an attentive driver on freeways, both in bumper-to-bumper traffic and on long road trips. Barra said the technology could mitigate many collisions and improve traffic congestion by sending and receiving basic safety information such as location, speed and direction of travel between vehicles approaching each other. It will warn drivers and can supplement active safety features, such as forward collision warning, already available on many production cars.
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Senate Subcommittee Looks Into Effectiveness of the National Highway Traffic Safety Administration The U.S Senate Committee on Commerce, Science and Transportation’s Subcommittee on Consumer Protection, Product Safety and Insurance recently held a hearing titled, “Oversight of and Policy Considerations for the National Highway Traffic Safety Administration.” The purpose of this hearing was to evaluate the efficiency of the National Highway Traffic Safety Administration’s (NHTSA) highway and vehicle safety programs. The hearing was the latest in a series of congressional reviews that stemmed from NHTSA’s handling of General Motor’s ignition switch failures. Deputy Administrator David Friedman served as NHTSA’s witness. Other witnesses included Joseph Comé from the U.S. Department of Transportation, Jacqueline S. Gillan of the Advocates for Highway and Auto Safety, Kendell Poole of the Governors Highway Safety Association, and Robert Strassburger of the Alliance of Automobile Manufacturers. During the hearing, subcommittee members from both political parties had sharp criticism for NHTSA. Sen. Claire McCaskill
(D-Mo.), subcommittee chairman, said: “Nobody on this subcommittee believes that there aren’t people [at the agency] trying to do the right thing … but it’s hard to sit here and listen to you …You want to obfuscate responsibility rather than take responsibility.” The remarks echoed the tone of the House Committee on Energy and Commerce Committee’s report released earlier that same day, detailing NHTSA’s perceived shortcomings in regard to the GM ignition switch recall. Rep. Fred Upton (R-Mich.), committee chairman, said: “It is tragic that the evidence was staring NHTSA in the face and the agency didn’t identify the warnings. NHTSA exists not just to process what the company finds, but to dig deeper. They failed. We’ll keep looking for answers, and keep working toward solutions – whether it means changing our laws or pressing for change at the companies that follow them and the agencies that enforce them – but we know for sure that NHTSA was part of the problem and is going to have to be part of the solution.”
Car Donation Helps Army Veteran Get Back on the Road
Caliber Collision teamed up with Travelers to help a U.S. Army veteran get back on the road by providing him with a newly refurbished vehicle in September as part of its nationwide Recycled Rides program. Conley joined the Army in 1965 when he was 17 and served his six-year enlistment as an intelligence and security specialist. After leaving the Army, he worked as a pilot for corporations including General Motors, federal contractors and state and local police SWAT units. His responsibilities ranged from flying VIPs in jets to dealing with hostage and crisis negotiation. About 10 years ago, he began to suffer from a series of medical conditions, including cancer and liver disease, which took a toll on him both physically and financially. “We hope this Recycled Rides gift will help Richard out of his ‘catch-22’ situation in which he is unable to afford to purchase a car but without transportation, he is unable to find employment,” said Rusty Barsanti, Caliber Collision’s VP of Operations. The company plans on gifting more than 20 vehicles during 2014 to military and first responders.
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The Women’s Industry Network (WIN) is kicking-off their 2015 Membership Drive. WIN membership is annual and based on a calendar year. Their goal is to reach 400 members by 2015. WIN is focused on engaging women in the collision repair industry through education, networking and sharing of resources. This year’s drive will include several outreach opportunities. A membership drive drawing for new members, renewing members and referrals, and an added grand prize of one free 2015 WIN Education Conference Registration Fee will all be part of the festivities. ● NEW MEMBERS Drawing - for all new members who join before December 31st; ● RENEWING MEMBERS Drawing - for all current & past members who renew before December 31st; ● REFERRALS - for all new, current and past members who refer a new member who joins before December 31st. All entries will be combined into a single drawing for the grand prize, which does not include travel expenses. For more information, visit: http://thewomensindustrynetwork.ni ng.com/page/join-win-1.
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 55
Alcoa Forecasts Record Auto Sheet Shipments in Q4
Alcoa Inc, the largest US aluminum producer, forecast profit from auto and aerospace components will increase in the Q4 as it sells a record amount of the metal to carmakers. Alcoa, which is shifting its focus to manufacturing components and alloys, said it would deliver a record amount of aluminum sheet to automakers this quarter as car and truck manufacturers use more of the lightweight metal. Earnings in the company’s rolled products segment, a supplier of aluminum sheets to car, airplane and packaging manufacturers, will more than double from a year earlier. Alcoa is benefiting from higher commercial-jet orders and a shift to aluminum components instead of steel among automakers such as Ford Motor Company, which plans to make its F150 pickup truck with aluminum body panels. Mr Lloyd O’Carroll, a Richmond, Virginia based Analyst at Northcoast Research Holdings LLC said that “Auto body sheet has a much higher margin than anything except aircraft. I think 2015 is going to get a pretty big lift of usage on the F-150 and of course all of the margin benefit of that.”
Quotes Pros Website Offers Insurance Rates Information
The Quotes Pros website has a capability that allows users to research for collision insurance rates with its open tool at: http://quotespros.com/auto-insurance.html. When comparing agencies in order to find the top policies and lowest pricin, entry can be gained to the QuotesPros.com database by using zip codes. An instant quote is available to prepare once a provider is selected while using the formatted database for collision providers in the U.S. The rates details that the public has access to using the open portal are tied to more than standard collision type policies from agencies. Collector, full coverage, high risk and state minimum protection plans can all be searched for in the location system once a provider has been selected. The Quotes Pros company has positioned its open tools on its homepage to make it faster for a person to interact with an insurer without having to call companies by phone.
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Car-O-Liner Participation Enhanced With Social Media
Car-O-Liner has entered the social media realm, and is now offering a variety of news ways for consumers to connect with the company. These channels include Facebook, LinkedIn, Google+, Twitter, Instagram, YouTube and Pinterest. Car-O-Liner President Jeff Kern, said he is excited about the new social media communications and anticipates these activities will benefit business relations through technical knowledge sharing. “Our social media connection allows us to not only share our activities, but also join the conversation through communication with both our customers and the industry,” he said. “It is important to listen and be heard as we extend our reach through these interactive tools.” Follow Car-O-Liner at: Facebook: facebook.com/caroline rcompany LinkedIn: https://www.linkedin.com/ company/car-o-liner?trk=top_ nav_home Google+: https://plus.google.com/ 102972787963006534481/posts Twitter: @car_o_liner Instagram: @car_o_liner Youtube: https://www.youtube Give us your opinion on .com/channel/UCFZEhZcZS4Xo4C wannUGcEQ Pintrest: http://www.pintrest.com/ carolinerauto/
I-CAR Launches Two New Refinish Courses
I-CAR announced that two new courses are now available to Refinish Technicians: Refinish Materials and Application Blending (REF08e) and Color Theory, Mixing Toners, and Tinting (REF09). These courses have replaced Color Theory, Application, Tinting, and Blending (REF03). Josh McFarlin, I-CAR Director of Curriculum & Product Development stated, “Nearly all repairs require some level of refinishing and typically, refinish work gets noticed first by the customer. Refinish Technicians who take these courses will learn how to correctly prepare and refinish a vehicle to ensure proper overall appearance, which can help improve customer satisfaction and increase productivity through better cycle times and reduced rework.” Refinish Materials and Application Blending (REF08e) is an interactive online course, worth 2 credit hours. It is complete with demonstrations on conventional blending and reverse blending, as industry. well as dismatters affecting the cussions on using a blending additive and a blending bed.
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MSO Consolidations
“Fixing cars is become more and more challenging than ever before,” said Afshar. “The vehicles are so different now and they may look the same outside but what’s inside is not the same.” With the standards set by the Insurance Institute for Highway Safety (IIHS) and the Corporate Average Fuel Economy, cars need to be lighter but still pass safety require-
ments. Afshar said another challenge for those in collision repair is employing proper technicians with the right mind set. Afshar, who sold his MSO Sterling Automotive Group in 1998, said technology is moving so rapidly that detailed knowledge, training and equipment is becoming even more necessary for shops to be successful and he encourages technicians to be open-minded and learn new techniques that they’ve never used before.
Continued from Page 44
Marketing to Survive
growth proposition calls for an all out effort. For example, a shop located in an area where campers and large SUVs are commonplace might choose to emphasize oversize frame machines and larger spray booths able to accommodate them. To make this a growth move, the shop would have to display these capabilities more prominently with colorful photos and stories
of exceptional jobs on the website and literature. But they would have to go beyond this to go out and be involved in trade shows, vehicle shows, club presentations and more. Choosing an emphasis that encompasses a lot of people opens up an entire horizon of opportunities to get out and connect with prospective customers. Not every shop owner is comfortable with this kind of glad-handing, but if the real growth is out there to be gotten, it’s worth while hiring someone with the skill to go out and get it.
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 57
Ford Recalls 850,000 Cars for Airbag & Seat Belt Glitch
Ford Motor Co. is recalling 850,050 2013 and 2014 vehicles for an electrical flaw that could cause airbags and seat belt pretensioners to malfunction in the event of a crash, according to reports in Automotive News. The affected vehicles include the 2013-14 Ford C-Max, Fusion, Escape and Lincoln MKZ. Ford said in a statement on Sept. 26 the restraints-control module in the vehicles could short circuit, causing the airbag warning indicator to illuminate. This is the 12th recall of the 2013 Escape, although a spokeswoman said in August that no single Escape has been involved in all the recalls. Flaws that other recalls on the Escape have addressed include fluid leaks that could cause an engine fire, doors that can open while the vehicle is moving and rollover airbags that may not deploy quickly enough.
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Auto Glass Safety Council Updating Certification Exam
The Auto Glass Safety Council™’s (AGSC) Education Committee met October 7 during Auto Glass Week in Baltimore, MD to review its plan to update the exam technicians must take to become AGSC accredited. Jeff Olive, chair of the education committee, opened the meeting with a discussion about whether the association should publish the questions. Bob Beranek of Auto Glass Consultants, who chairs the AGSC AGRSS Standards Committee and is a member of the board of directors, proposed waiting until the AGSC has developed 500 questions. The group agreed. The exam will feature 70 questions. Members also discussed ways technicians can challenge questions they might have an issue with. Mitch Becker of Abra Auto Body & Glass, recommended adding a “challenge” option as a selection for each question. Once a technician completes the timed exam, he would have the opportunity to explain why he challenged a certain question. The test results would be on hold until the AGSC Education Committee has a chance to address the challenge. Theuscommittee members Give your opinion on voted in support of this proposal.
Axalta Program Provides Shop Owners With More Data
Axalta Coatings Systems announced on Oct. 3 that its ProfitNet™ Collision Shop Management System is now interfaced with Dealertrack Technologies Dealer Management System (DMS). ProfitNet is a software program designed to measure and manage all aspects of the collision repair business. The program provides collision shop owners with access to information that they may need to help make decisions regarding the productivity and profitability of their business. The new interface, approved via Dealertrack’s Opentrack Certification Program, is an electronic bridge between ProfitNet and the DMS to help car dealerships to streamline and create greater efficiencies in managing parts, labor, and production processes within their collision repair centers. “Dealertrack is proud to partner with Axalta Coating Systems to create an interface with their ProfitNet offering that is certified by our Opentrack Certification Program,” says Sharon Kitzman, Vice President and General Manager, DMS, Dealertrack. The interface is designed to save hoursaffecting of double-entry data that is matters theofindustry. used by both systems.
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NITROHEAT Launches New Product at SEMA
NITROHEAT announced on October 20 that it will be launching a new product range of high performance compressed air filters, dryers and heaters at SEMA. This new product range incorporates NITROHEAT’S new patent pending tablet and smart phone controlled heaters, the first of its kind in the industry. This technology allows users to remotely control and monitor temperatures of the compressed air and nitrogen heaters used in the spray painting process. Clean dry air has always been a fundamental requirement for spray painting as well as pneumatic tool usage. This technology from NITROHEAT will supply the cleanest, driest air possible for optimal benefits to compressed air requirements and maximum return on investment. Nitroheat’s proven technology in the process of “Nitrogen on Demand” has been widely used since inception. This additional technology opens up a broader market in the painting and compressed air sector. The product can be seen at the SEMA expo in Las from Nov. Want toVegas Contribute 4-7 at booth 11421.
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Berkshire Hathaway to Acquire Van Tuyl Group, Largest Privately-Owned Auto Dealership Group
Berkshire Hathaway Inc. and Van Tuyl Group announced on October 2 that they have entered into a definitive agreement in which Berkshire Hathaway will acquire the Van Tuyl Group, the nation’s largest privatelyowned auto dealership group, ranking fifth among all U.S. auto dealership groups. After becoming a part of the Berkshire Hathaway family of businesses, the company will be known as Berkshire Hathaway Automotive. The company will continue to be led by Larry Van Tuyl, who will become Chairman, and Jeff Rachor, who will assume the role of CEO, as well as its experienced senior management team. Berkshire
Hathaway Automotive will be headquartered in Dallas, Texas and continue to pursue its strategy of operational excellence and disciplined acquisition growth, which is the business model the company has pursued for the last 62 years. “The Van Tuyl Group fits perfectly into Berkshire Hathaway from both a financial and cultural viewpoint. Larry Van Tuyl along with his father, Cecil, spent decades building outstanding dealerships operated by local partners. In recent years, he has shared management with Jeff Rachor, a seasoned auto retailer who will retain a financial interest in all dealerships. The Van Tuyl Group enjoys
excellent relations with the major auto manufacturers and delivers unusually high volumes at its 78 locations. This is just the beginning for Berkshire Hathaway Automotive,” said Berkshire Hathaway’s Chairman and CEO, Warren Buffett. “We are proud of all that has been accomplished with the support of our dealer partners, our employees and the manufacturers that we represent. We are very pleased to have one of the world’s most respected companies, Berkshire Hathaway, assume ownership of our company with the commitment to preserving our unique culture, business model and philosophy,” said Van Tuyl. “I cannot think of a better
steward to continue the legacy of what my father and I have built over the last 62 years, and I am confident this transaction will position the company on a course of continued success.” The transaction is expected to be completed in the first quarter of 2015 and is subject to obtaining approvals from the major auto manufacturers as well as certain customary closing conditions, including various regulatory approvals. Stephens Inc. is serving as financial advisor to Van Tuyl Group. DLA Piper is providing legal advice to Van Tuyl Group, and Munger, Tolles & Olson LLP is providing legal advice to Berkshire Hathaway.
CCC Information Services Inc. announced the addition of the Aftermarket Auto Parts Alliance (Alliance) as a supplier to the CCC TRUE™ Parts Network on October 16. The Alliance, which goes to market under a variety of store brands including Auto Value and Bumper to Bumper, becomes a significant contributor of mechanical parts and repair supplies to CCC TRUE Parts Network. “Providing our customers with ac-
cess to the Alliance’s extensive offering of repair parts and related supplies via their robust MyPlaceForParts™ network extends our footprint and provides our repair and insurance customers with even greater choice and flexibility in their parts options,” said David Boden, VP, CCC’s Parts Services Group. “We look forward to working with the Alliance and integrating its parts inventory with CCC TRUE Parts Network.”
“Collision repair shops have a tremendous need for easy access to mechanical repair parts and supplies,” said Jon Owens, Vice President of sales and market development for the Alliance. “Streamlining that access was the purpose of our participating in the CCC TRUE Parts Network and we could not be more delighted with the opportunity to bring our extensive inventory to CCC’s customers.” CCC ONE® Workflow users will
now have access to the Alliance’s network of over 2,200 locations that stock nearly 2,000,000 repair parts and supplies for both import and domestic vehicles.
Aftermarket Auto Parts Alliance Joins CC TRU Parts Network
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www.autobodynews.com | NOVEMBER 2014 AUTOBODY NEWS 59
Continued from Cover
Congress Support
“We wanted to make the legislators aware of what the insurance companies are doing to the consumer,” said Matt Parker, owner of Parker Auto Body in Louisiana who is part of the lawsuit. “The insurance industry should not tell us how to repair cars. We’re the professionals here, not them. We have all the liability, they don’t,” he said. Tony Passwater, Executive Director of the Indiana Autobody Association and President of AEII Consulting Services, said that what started as multi-district litigation in April with just five states, including Mississippi, Florida, Tennessee, Indiana and Utah, and later by Louisiana, is now part of a much bigger action to regain control that he termed “The Movement.” “Shop owners representing a dozen states went to Capital Hill “… to discuss the growing concerns for consumer safety, the mandating by insurers to require repair shops to use untested and unsafe parts on vehicles, and the intimidation tactics the insurers use when a repairer refuses to do so,” Passwater said. “Most [members of Congress] have had their car repaired and were very empathetic and were already concerned about the issue, so we were very encouraged by the response,” said the lead attorney John Arthur Eaves, Jr. of Eaves Law Firm in Jackson, MS. Eaves said many were still not aware of the Robert Kennedy-era 1963 Consent Decree which is the official public policy of the United States government. He said the body shops plan to visit Washington D.C. again in November when congress comes back into session and the hope is that a bill will be introduced at that time. “The law will really be a codification of the policy of the United States that was set in 1963.” It was that year that the U.S. Department of Justice, under the direction of Attorney General Robert Kennedy, investigated the concerns of the collision repair industry and found 265 insurance companies, and the three major trade associations that represented insurers, were in violation of the Sherman Antitrust Act. An Antitrust Consent Order was signed by these companies on October 23, 1963, requiring that insurers must refrain from “fixing, establishing, maintaining or otherwise controlling the prices to be paid for the appraisal of damage, or to be charged by independent or dealer franchised automotive repair shops for the repair of damage to automotive vehicles
or for replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.” “If you look at the Consent Decree and read it, it would look like somebody from today wrote it because all the things they’ve been doing since the 40s they are continuing to do,” said Parker. “To be honest with you, everything they’re doing is against the law.” Parker said the Consent Decree mandates that insurance companies are supposed to be in the business of insurance, “not telling us how to repair cars, not writing estimates, not telling people where to get glass put in their car. We’re the only business in the world that has to try to figure out how to make a profit when we can’t even set our own rates.” Eaves originally filed the lawsuit in April on behalf of more than two dozen body shops that claimed 16 insurance companies manipulated labor rates and other charges and weren’t compensated for their work. Eaves said the lawsuit is largely based on antitrust issues that surface when insurance companies get involved with body shops by telling them what labor rate they can charge, what percentages they’re not going to pay for, and what parts they have to put on a car. In the 1970’s, the labor rate was $16 and the mechanical rate was $15. Currently, Eaves said the body shop rate across the nation is usually half of the mechanical rate with no justification. He said this is due to insurance companies that have artificially suppressed the rate and is a clear violation of the Consent Decree. Another main component of the lawsuit is against steering. “Most states in the country say it is illegal for insurance companies to purposely interfere in the business relationship of the customer and the body shop,” said Eaves. However, insurance companies do it regularly, telling customers they have to go to their DRP body shops or select service shops. “That’s a big part of our lawsuit and one of the things we think is pure violation of the proper balance between the two industries,” said Eaves. “By having the same practices exposed by all body shops in one litigation, the judge can more clearly see that this is a pattern of practice,” said Eaves. Eaves said that in addition to these challenges faced by shop owners, the industry also has to adapt to new technology. “Only the shops that actually get paid for what they do will have the resources necessary to invest in all of this technology,” said Eaves. “That’s basically what the lawsuit component is all about… making sure
60 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
that people who do the work and do it right get paid for it so they can continue to provide that service to the American customer.” The next court date is set for November in Orlando, FL. “The allegations that are part of the multi-district litigation being heard in Florida are not in line with State Farm’s mission to serve the needs of its customers, and our long, proud history of achievements in advancing vehicle safety,” said Dick Luedke, spokesperson for State Farm Insurance. “A vibrant, profitable auto collision repair industry is in the interest of State Farm,” said Luedke. “At the same time, we are advocates on behalf of our customers for reasonable repair costs. We believe repairer profitability and quality auto repairs that are reasonably priced can both be achieved. “Our customers choose where their vehicles are going to be repaired. We provide information about our Select Service program while at the same time making it clear they can select which shop will do the work,” he said. Parker belonged State Farm’s Select Service DRP until earlier this year. Since April he said they have steered a substantial amount of business away from him.
“Just in short pays alone I have over $150,000 worth of claims they won’t pay,” he said. “Operations that we actually do the vehicles to make the vehicles safe that they won’t pay us to do. “These shops need to stand up for what’s right and quit letting the insurance industry run their business for them,” said Parker. “They are just terrified that the insurance companies are going to steer the work away.” We’re just as busy now as we were because we’re educating consumers.” He has found it beneficial to explain to consumers what the insurance companies are doing. “They need to take their businesses back and they need to run their own businesses.” When Autobody News went to press this month, an additional 25 states were in the process of filing lawsuits to meet an Oct. 31 deadline before returning to court in November. “What we want to achieve is number one, that the safety and the quality of repairs for the American public is restored,” said Eaves. “The industry will never be the same after this.” When contacted by Autobody News for comment Allstate Insurance Company and Progressive both said that, due to company policy, they do not comment on pending litigation.
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AUTOBODY MARKETPLACE
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Relocate to beautiful Clearlake, CA. Hunt, fish, dirt bike, water sports. Busy collision repair shop needs team player. Great shop & hourly pay or flate rate.
Plyworx
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See your M Se Mat atco, Co at Cornwell ll, Matco, Cornwell, Mac Tools or Snap-on Dealer to get your Pliers Rack!
Change THIS
www.a-bcollision.com
or 707-994-8800 Auto Body Best Location in LA • 6,700 sq. ft. & Mechanic • Long Lease Shop $175,000 OBO
For Sale Call 818-679-7947
®
Cosmichrome Spray a chrome finish in your paint booth. - Patented System. - Guaranteed not to turn yellow. - Used by GM, Andretti Autosport and West Coast Customs.
www.goldtouchinc.com
800.940.787 800.940.7871 216.941.7400
To TH THIS!
Looking for Good Collision Personnel? •1,262 Collision Techs resumes online •1,295 Painters resumes online •1,177 Estimators & Mgs resumes online •11,256 Mechanical Tech resumes online
ACTautostaffing.com or 727-733-5600
SAME 32 PLIERS!
940-595-1112
www.pliersrack.com
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$109 to repair with this ad
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888-4-FIX-RIM www.fixrim.com
877.593.6959
800-524-1504 www.red-viper.com
Call or e-mail now for rates: 800-699-8251 or ltedesco@autobodynews.com 62 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com
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64 NOVEMBER 2014 AUTOBODY NEWS | www.autobodynews.com