November 2023 West Edition by Autobody News

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U.S. House Passes Bill To Prevent Internal Combustion Engine Bans The U.S. House of Representatives passed the Preserving Choice in Vehicle Purchases Act, prohibiting the EPA from issuing a waiver to California for regulations that would ban the sale of new motor vehicles with internal combustion engines (ICE) in the state by 2035.

Environment and Public Works Committee. SEMA thanked Joyce for leading the fight to ensure Americans can choose the type of motor vehicle that best meets their needs. “The last thing my constituents want is another oppressive Biden

42 YEARS

Vol. 41 / Issue 11 / November 2023 REGIONAL NEWS

Owners of Ka’anapali Collision in Maui Suffer Tragedy from Devasting Wildfires By Stacey Phillips Autobody News

On Aug. 8, wildfires burned parts of the island of Maui in Hawaii. The hardest hit area was the resort town of Lahaina. Nearly 3,000 structures were reportedly damaged or destroyed and about 115 people were killed. Many residents lost their homes and businesses, including Amanda Funkhouser and her husband, Jess Unruh, owners of Ka’anapali Collision. They have built a reputation for providing personalized service to customers. “We really care about customers. I go above and beyond… making sure they are paid what they deserve

and they receive a quality repair with a smile,” said Funkhouser. “When customers pick up their cars, I always joke and say, ‘I’ll see you at the grocery store, but I don’t want to see you here again. Be safe.’” Funkhouser shared her family’s story with Autobody News. A longer version is available on autobodynews. com.

An Unexpected Emergency Our house was in the south end of Lahaina along the highway. Jess and I woke up at about 3 a.m. because the wind was blowing so hard. We had no idea this was coming. I don’t think anyone realized how bad it was going to be. l CONTINUED ON PAGE 18

REGIONAL NEWS

Potentially Groundbreaking Tesla Autopilot Trial Begins in California The SEMA-supported legislation was introduced by U.S. Rep. John Joyce, R-PA, and passed with bipartisan support—222 to 190, with eight Democrats joining their Republican colleagues. U.S. Sen. Markwayne Mullin, R-OK, co-chair of the Congressional Automotive Performance and Motorsports Caucus, introduced a Senate companion bill. The House and Senate versions of the Preserving Choice in Vehicle Purchases Act now await consideration in the Senate

Administration mandate that puts a radical environmental agenda and far-left special interests above their individual freedoms,” said Joyce. “There is nothing more quintessentially American than the freedom of the open road, and I’m grateful to my colleagues for supporting this important legislation protecting the freedom of all Americans to drive the vehicles of their choice.” House Energy and Commerce l CONTINUED ON PAGE 4

By Joey Klender Teslarati

Tesla went to trial Sept. 28 in what could be an important trial in terms of driver assistance features. Opening statements were set to begin in a California courtroom in a case stemming from a crash that resulted in the death of one person and injuries to two more, who are suing Tesla and accusing Autopilot of causing the accident. In 2019, Micah Lee’s Tesla Model

3 suddenly veered off a Los Angeles highway at 65 mph and struck a palm tree, according to the suit, filed by the two passengers and Lee’s estate. The car then caught fire. Ttwo passengers, one of whom was an 8-year-old boy, were seriously injured. The suit accuses Tesla of knowing Autopilot and other active safety features were defective when it sold the Model 3 to Lee. Tesla claims Lee consumed alcohol before getting behind the wheel l CONTINUED ON PAGE 14

INSIDE THIS ISSUE 26

Columnist Mike Anderson: Doing More Calibrations ‘In-House’ Often

Doesn’t Mean in Your Shop

Columnist Abby Andrews: ‘Going Green’ Can Be a Profitability Opportunity for Collision Repairers

Columnist Stacey Phillips: The Rivian Evolution Revolution

Columnist John Yoswick: CCC Breaks Down Rise in Total Cost of Repairs, Other Trends

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Contents

COLUMNISTS Mike Anderson Doing More Calibrations ‘In-House’ Often Doesn’t Mean in Your Shop �� 26

REGIONAL NEWS Car Dealers Protest Proposal Allowing Direct EV Sales in Washington State � 4

Tesla Cybertruck Fetches $400K at 29th Petersen Gala Auction �� 14

Potentially Groundbreaking Tesla Autopilot Trial Begins in California �� 1

Tesla Plans for Major Supercharger Expansion in Las Vegas �� 6

ProColor Collision Santa Ana Opens in California �� 10

WA Senator Moving Forward on Bill to Detect Price Gouging at Gas Pump 36

Abby Andrews ‘Going Green’ Can Be a Profitability Opportunity for Collision Repairers �� 34

Cole Strandberg The Collision Vision(aries): 6 Months into Autobody News’ Podcast �� 38 John Yoswick ‘Most Influential Women’ Honorees Discuss Roads to Success Within Collision

Stacey Phillips How MS Auto in Hawaii Ensures Customer Satisfaction and Keeps Up With Industry Changes ��8

Repair Industry �� 30

Owners of Ka’anapali Collision in Maui Suffer Tragedy from Devasting Wildfires �1

Labor Times �� 12

The Rivian Evolution Revolution �� 16

Repairs, Other Trends �� 20

Another Estimating System to Add Flexibility for Calculating Blend Refinish

CCC Breaks Down Rise in Total Cost of

Index of Advertisers

NATIONAL NEWS 2023 Hood Master, PiN Master Winners Announced �� 55

Hunter Wins PTEN People’s Choice Awards �� 22

ASE Education Foundation Board Chair Releases Message �� 48

Is the Peak Price for Gas in the Rearview Mirror? �� 60

ASE Fall Testing Registration Open ��6

ADAS Calibration �� 39

Indasa USA �� 13

AirPro Diagnostics �� 11

Industrial Finishes and Systems �� 7

American Chevrolet �� 38

Kendall Subaru of Marysville �� 59

John Bean Updates Calibration Info � 52

Audi Wholesale Parts Dealers �� 42

Kia Downtown Los Angeles �� 61

ASE Offers ADAS Specialist Certification ��4

Minivans Don’t Make the Grade When it Comes to Rear-Seat Safety �� 35

Auto Data Labels �� 23

Kia Motors Wholesale Parts Dealers �� 45

asTech Creates Instant Repair Recommendations �� 10

Mitchell Wins Award for Appraisal Review Solution �� 51

Axalta Coating Systems �� 10

Kia of Carson �� 40

BMW Wholesale Parts Dealers �� 47

Kia of Irvine �� 35

Auggie Calibrations Meet NHTSA Standards �� 19

New-Vehicle Prices Fell Further in September, Led by Price Cuts at Tesla �� 40

BodyShopJobs.com �� 22

Lithia Honda of Medford �� 44

Camp Chevrolet �� 36

Mazda Wholesale Parts Dealers �� 54

Car-O-Liner �� 2

Mercedes-Benz Wholesale Parts Dealers � 54

Car Pros Kia �� 55

Michael Hohl Motor Company �� 50

Car Pros Kia Renton �� 58

MINI Wholesale Parts Dealers �� 47

Certified Automotive Parts Association �� 46

MOPAR Wholesale Parts Dealers �� 37

Chase Chevrolet �� 54

NextLED �� 19

Citrus Kia-Ford �� 50

Niello Audi �� 60

Autel Releases ADAS Calibration Updates �� 28 Auto Parts Suppliers Brace for Effects of UAW Strike �� 52

NHTSA Investigating Failures in Engines in 710K Ford, Lincoln Trucks and SUVs �� 25

Automakers Join Other Businesses to Ask for Federal Investment in Clean Aluminum �� 22

Owners of 3.3M Kia, Hyundai Vehicles Told to Park Outside Due to Fire Risk �� 51

Average EV Prices Plummet as Oversupply Concerns Grow �� 59

Political Rivals Biden, Trump Enter into UAW Strike Discussion �� 48

BrightDrop Delivers First Electric Vans to Ryder for Rental Fleet �� 63

PPG to Invest $2 Million to Train Workers �� 47

Classifieds �� 62

Nissan/Infiniti Wholesale Parts Dealers �� 53

Colortone Automotive Paints �� 63

NorthAmerican Bancard �� 18

CAPA Integrates Tracker Into Mobile App �� 39

Rivian Offers Faster Delivery Option with Purchase from Inventory �� 63

Cool Boss A Division of BendPak Inc �� 27

Porsche Wholesale Parts Dealers �� 57

Corwin Buick-GMC �� 58

Porterville Ford �� 59

Car Ownership Now Costs Average U.S. Household Nearly $700 a Month �� 57 CCC Offers AI Solutions to Collision Repair Labor Shortages �� 24 CCC, Google Enable Online Appointments �� 42 CIF Announces Repeat Annual Donors �� 46 Driven Brands Holds Inaugural Joint Collision Conference �� 58

Rivian R1T Fender Bender Fixed for Fraction of $41K Repair Estimate �� 52

Courtesy Chevrolet San Diego �� 41

PPG Industries �� 9

SCRS Announces Focus of OEM Summit Session II �� 42

CPS Products Inc �� 4

RelyOn Technologies �� 64

SEMA Show Exhibit to Highlight Future Vehicle Propulsion Technology �� 61

Dublin Chevrolet �� 60

Roseville Kia �� 56

Dynabrade, Inc �� 21

Sandberg Volvo Cars �� 26

Equalizer Auto Glass Tools �� 25

Santa Margarita Ford �� 61

EZ Universal Wheels �� 30

Santa Monica Audi �� 56

Toyota Airbag Control Unit Settlement Reached �� 54 Traffic Fatalities Continued to Decline in First Half of Year �� 39

FH Dailey Chevrolet �� 38

SATA Dan-Am Company �� 5

Ford Wholesale Parts Dealers �� 43

Sorbothane, Inc. �� 20

Future Nissan of Roseville �� 46

Subaru Wholesale Parts Dealers �� 51

Galpin Motors �� 31

The Bay Area Automotive Group �� 29

Garden Grove Kia �� 35

Transtar Autobody Technologies, Inc �� 15

Glenn E. Thomas Dodge-Chrysler-Jeep �� 14

USI of North America, Inc �� 17

Global Finishing Solutions �� 28

Vin Label Shop �� 34

GM Wholesale Parts Dealers �� 49

Volkswagen Pasadena �� 55

Drivers Learn to Use Vehicle Safety Tech, But on Their Terms �� 56

Trainer Says ‘Who Pays?’ Survey Data Shows Industry Needs to ‘Wake Up’ on Weld Testing �� 28

Federal Rebates on ‘Clean’ Vehicles to Be Given at Purchase in 2024 �� 47

U.S. Auto Insurer Claim Payouts Soar Due to Increasing Inflation �� 46

First Production Lucid Air Sapphires Roll Off Assembly Line �� 60

U.S. House Passes Bill to Prevent Internal Combustion Engine Bans ��1

Fisker Expects to Ramp Deliveries to 300 Vehicles Per Day �� 62

Widespread Autonomous Vehicle Adoption at Least a Decade Away �� 44

Honda’s First All-Electric SUV Set to Debut Early 2024 �� 50

WIN Kicks Off Sponsorship Campaign �� 25

Guniwheel �� 6

Volkswagen Wholesale Parts Dealers �� 57

Honda-Acura Wholesale Parts Dealers 32-33

Volvo Wholesale Parts Dealers �� 63

Hunter Wins 2 MOTOR Top 20 Awards �� 61

With More Choices, Brand Loyalty Slips among New-Vehicle Owners �� 43

Hyundai Wholesale Parts Dealers �� 47

Yatu Paints, USA �� 24

autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 3

Car Dealers Protest Proposal Allowing Direct EV Sales in Washington State By TJ Martinelli The Center Square

The state Transportation Electrification Strategy is intended to help guide Washington along the path away from the use of fossil fuels in vehicles, with a 2035 ban on the sale of new gas cars. However, recent public testimony offered on the draft TES indicates that many of its recommendations or goals have numerous logistical and political hurdles ahead. Currently, Washington is second only behind California in EV sales, with one out of five new cars a hybrid. Yet, the state estimates only 27% of vehicles on the road will be electric in 2040, and it will take more than 20 years for a full transition to occur. One of the challenges the state faces to get more EVs on the road are the relatively high prices for those vehicles compared to gas cars, as well as a limited number of charging ports around the state. According to the draft TES, “Charging infrastructure is generally decentralized, can be unreliable, lacks interoperability, and can result

l CONTINUED FROM COVER

U.S. House Passes Bill (E&C) Committee Chairwoman Cathy McMorris Rodgers, R-WA, shepherded the bill through the committee in July. As chair of the E&C Committee, which has jurisdiction over automotive issues and the Clean Air Act, McMorris Rodgers has been a lead advocate for technology-neutral vehicle policies. “Seventeen other states have similar bans on internal combustion engines that would be triggered if EPA approves California’s request,” said McMorris Rodgers. “This affects 40% of the United States’ new vehicle market—and companies don’t customize cars for every state.” To date, 14 out of 17 CARB states have begun adopting regulations to follow the California zero-emissions vehicles (ZEV) mandate. The existing ZEV regulations are so onerous that Stellantis has stopped shipping gas-powered Jeeps to dealers in those states and customers wanting gas-powered vehicles must place a special order. For more information on these efforts, visit sema.org/advocacy/icebans or contact tiffanyc@sema.org.

in queues for open chargers due to slow speeds.” The TES draft offers numerous recommendations on how to resolve the price issue, including direct sales from EV automakers to consumers and a “cash for clunkers” type program to incentive medium and heavy-duty vehicle owners to turn them in for credit on a new EV. The proposal to allow direct sale of EVs drew protest from several car dealerships during the EV Council’s Oct. 11 meeting. Among them was Shayne Goff, whose family owns Wendell Motors in Spokane and is the president of Washington State Auto Dealers Association. He told the council the direct sale of EVs “will hurt consumers and our employees across the state in ways the recommendations simply ignored. This would ultimately put me out of business and my employees and customers would suffer. The vast majority of dealerships are familyowned small businesses.” Also speaking in opposition was Jen Moran, executive manager of Carter Motors. She told the council “the recommendation

is shortsighted and ignores the significant negative impact this action would have on our small local businesses, employees and communities. Many franchise new car dealerships, step up to help meet the needs in our communities that would otherwise go unmet. That’s not something you see from corporate manufacturers based in California or Texas. Allowing manufacturers to cut local dealers out of the sale and service of new cars would make it hard for those local businesses to survive. If these EVs are sold directly, we would lose a long-standing relationships we have built with the customers and the community.” Others testifying stressed to the council the importance of timely permitting for charging station ports. Cory Bullis with FLO EV Charging told the council “streamlining local permitting processes is actually really, really important to just expediting getting EV chargers. We can sometimes often run into very inconsistent requirements across local jurisdictions and just increasing the transparency and standardizing the process to permit

EV charging can really help simplify the process for us.” Expediting that process will be vital if Washington is to have 3 million EV charging ports the EV Council says the state will need by 2035. Currently there are just 4,600, which would require 250,000 built every single year starting in 2023. However, Tesla lobbyist Jeff Gombosky told the council “simplicity, flexibility and removing barriers are key” to achieving the TES’ goals. “There is no way we can meet Washington’s decarbonization goals if charging station permitting takes six to 18 months…or if the estimated utility timelines for energizing new charging stations are over five years. These timeline challenges are not unique to Washington, and many other states and countries have adopted effective policies to reduce timelines.” The EV Council is accepting public comment on the draft TES until Oct. 31.

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ASE Offers ADAS Specialist Certification ASE’s ADAS Specialist Certification test (L4) recognizes proficient service professionals and helps shops optimize repair opportunities on ADAS-equipped vehicles by employing L4 certified technicians. ASE created the test to identify technicians who possess knowledge of the skills required to diagnose, service and calibrate ADAS. The L4 test covers content focused on the diagnosis, service and calibration of radar, camera, ultrasonic and other advanced driver assistance systems. Before taking the ASE ADAS Specialist test (L4), automotive service professionals must have passed either the Automobile Electrical/Electronic Systems (A6) or Collision Mechanical and Electrical Components (B5) test. An L4 study guide is available for individuals to help with test preparation. For more information and to register, visit www.ASE.com/ test-series.

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ASE Fall Testing Registration Open ASE’s fall registration period for testing and recertification is now open. Those registering by the Dec. 31 deadline will have 90 days to schedule an appointment to take their selected ASE tests. ASE offers three test-taking options. In-person testing is available for all tests and is held throughout the year on days, nights and weekends at more than 450 secured, proctored Prometric test centers. The ASE renewal app for recertification is available to those with unexpired automobile certifications (A1A9). ASE also offers ProProctor remote testing as an online recertification solution for all ASE recertifications tests, excluding L1 and L2 tests. To register, visit ASE.com by Dec. 31, click on register and sign in. Once logged in, users can click on “orders” and then “store.” For assistance from ASE customer service, call 800-3906789.

Tesla Plans For Major Supercharger Expansion in Las Vegas By Joey Klender Teslarati

Tesla is planning a major Supercharger expansion in Las Vegas, with more than 75 new stalls to be available to EV drivers by the end of the year.

Tesla already operates Superchargers in a variety of locations across Sin City, but the demand for charging locations is increasing. The automaker announced on a small, curbside

sign it was planning to bring more stalls and stations to various areas of the city. Its three most notable Las Vegas Superchargers are located on S. Las Vegas Boulevard, which features 24 V3 chargers, at the city’s convention center, where 12 V3 stalls are available, and at the Red Rock located west of downtown, where there are 16 V3 Superchargers. There is another station south of the airport on Las Vegas Boulevard that features 28 stalls. There are several other locations in the greater Las Vegas area, all offering a variety of stall quantities, mostly V3, offering 250 kW. The new locations are set to be installed at Arroyo Crossing, a shopping center with a Walmart and other retail names, W. Russell Road and S. Decatur Boulevard, and a final location at E. Pebble Road and S. Maryland Parkway. Supercharge.info shows the three sites have already been permitted. There are also two locations currently under construction: one on S. Fort Apache Road and

another on Paseo Verde Parkway, which is located in Henderson, just southeast of downtown Las Vegas. Las Vegas is not only a highly-populated area, but its entertainment and nightlife bring in millions of tourists every year. The Supercharger stations will be needed for Tesla drivers visiting the area, but they will also be needed to handle the increase in EV drivers that will visit the area as electric cars become more popular. There is also a need to start preparing for next spring when other car companies will gain access to Tesla’s Supercharger network. Demand for stalls will be higher than ever. At the end of Q2, Tesla said it had 5,265 Supercharger stations worldwide and 48,082 total connectors.

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Stacey Phillips — Shop Strategies

How MS Auto in Hawaii Ensures Customer Satisfaction and Keeps Up With Industry Changes In Hilo, HI, Manuel Soares III and his family have built a reputation for excellent customer service at their collision repair facility, MS Auto Inc. Established more than 53 years ago, the family business repairs all makes and models and works as a team to bring cars back to their preaccident condition. In 1970, Manuel III’s father, Manuel Jr., began doing repairs out of his home garage. His son, known as Jr., grew up helping his dad, handing him wrenches, sanding filler and cleaning up trash.

MS Auto is an I-CAR Gold Class shop and is currently certified by Chrysler, FCA, Hyundai, Kia, INFINITI and Nissan.

Over the years, they moved five times and are now located on Kukila Street in Hilo. Their 26 employees include Jr.’s wife, Tracey Soares, and their daughter, Macey—both of whom are production managers—as well as their son, Manual IV, who works in the body and paint department. Macey and Manual IV are both transitioning to take over the company. Autobody News talked to Jr. about the challenges operating on an island and how they stay up to date with the latest vehicle technology.

How do you ensure customer satisfaction at

MS Auto?

We are passionate about what we do and work hard to ensure customer satisfaction. Presentation is everything. You need to be optimistic when dealing with clients, and they need to have that warm and fuzzy feeling and know that you’re willing to engage and move things along. I try to pre-schedule clients and provide repair expectations and cycle times. We want to be transparent. Sometimes, staff can forget, but that’s human nature. We review the status of the vehicles with the team each day. When delivering cars, we let customers know they will be asked

to provide a review. We have about 1,200 online reviews through Carwise.com. Depending on what they say, the next day I might call to follow up or thank them. By doing that, they become customers for life and tell friends and family about the great service they received.

Q: A:

What are some challenges operating on an island?

We want to deliver cars on time but not compromise quality, especially with the adversities we deal with on an island. Ensuring we have supplies can be challenging because we ship them in from Honolulu. Sometimes, we can’t get products so we resource what we can or surplus products. Before the pandemic, we inventoried parts even though it was costly. I’m glad I had that foresight because it carried us through. I prioritize maintaining good relationships with my vendors and they put stock away for me. I have high expectations and work with like-minded people. We are one of the biggest buyers on the island, so when we need something faster, I speak up and they find someone who matches our performance level.

How do you stay up to date with new vehicle technology?

I’ve worked on cars almost every day since I was about 12 years old and have been involved in every aspect of the company. I try to stay ahead of the curve and keep up with the latest information and training by talking to other shop owners and OEMs. I reach out to dealerships to learn the latest information. With the technology being introduced on cars, I’m finding that today’s customers spend more time researching them before making a purchase and often know more than the salesman. I learn as much as possible so I’m prepared when a car comes into the shop.

What is the importance of accessing OEM repair procedures and obtaining OEM certifications?

Accessing OEM repair data is priceless. We want to ensure that cars are repaired to their pre-accident condition.

8 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Although they can never be exactly like they were pre-accident, we want to give people the sound mind they are getting a repair done the way the OEM requires it. We also want to protect the auto manufacturers’ brand and ensure customers are safe for the life of the vehicle. To do this, we have put an emphasis on obtaining OEM certifications and are certified by Chrysler, FCA, Hyundai, KIA, INFINITI and Nissan.

Pictured, left to right, are Scot Takemoto, owner of Island Concepts, with Jr., Tracey, Macey and Manuel IV.

How are you handling calibrations and the new procedures needed?

We do everything inhouse. First, we pre-scan the vehicle and later, do an inprogress scan. I do road tests on the vehicle’s functionalities; then, we’ll deliver the car to the dealership to do the calibration. When it comes back, we conduct a post-scan and operations test to make sure it has a final clean bill of health. We also provide documentation of what was done during the repair. When we take vehicles to the dealership, we stay on top of what is being done. Open communication is very important to let them know what functionalities need to be checked and what we expect. We also ask them to call us if they find certain procedures that need to be done.

With an increase in EVs and vehicles with ADAS features, what is the importance of training?

It’s imperative. Customers want accuracy when we fix their vehicles, so we need to keep up with the changes taking place. I started I-CAR training in 1985 and have I-CAR Platinum recognition. The shop became I-CAR Gold Class in 2016. We have been doing a lot of training with I-CAR and I’ve found that it is a great resource.

We have good relationships with dealers and vendors and train with them. We also train in-house, as well as online every month and are ASE-certified. Training in Hawaii is challenging but we make it happen.

Q: A:

How do you find and hire technicians?

I never solicit other people’s staff. The only way to be successful is to build your own team. We’re finding new employees who aren’t part of the industry and training them to be technicians. We have a lot of young staff. If they are intrigued, we start investing in their training. What is the importance of building a culture?

Q: A:

Building a culture is critical. Once we think alike, we can address and see things with the same eye and adapt. Today’s kids are often defined by what they do in recreation rather than what they do as a vocation. We teach the younger generation that this isn’t a job; it’s a career. We teach them to be diligent and responsible and invest in themselves. We want them to be proud of what they do and feel they work in a respectable job that puts families in safe vehicles. The new generation is used to instant gratification. We want them to understand that they can’t spend 15 minutes on YouTube or Google to learn this job. They need to put time into it and have patience.

What tips can you share about being successful in running a family business?

It takes a different breed of people and a lot of families fail. Growing up, there were some days I wanted to throw in the towel. I was pushing training and building more technicians because I knew that would be needed in the future and saw the potential for growth. At the same time, my dad was happy with how things were and didn’t feel change was needed. I learned from those experiences, so I’m open with my kids and share what my dad didn’t with me. That might mean putting the difficulties or insecurities on the table so we can work well together. I always say I’m never the best because I push harder every day. That way, I never stop trying.

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AsTech Creates Instant Repair Recommendations asTech, a Repairify company, announced asTech Insights, a revolutionary, generative AI product that will immediately enhance its OEM-compatible scans. Through the power of AI, asTech Insights uses the results from an asTech OEM-Compatible pre-scan to automatically generate custom collision repair recommendations specific to the vehicle and identified DTC codes—all within seconds after completing the pre-scan. For shops, asTech Insights will be like having a certified technician at their side wherever and whenever they need them. Within seconds, they’ll get collision specific repair recommendations to enable them to complete the repair correctly. Combined with asTech OEM-Compatible scans, shops will be able to perform an OEM-quality scan and generate a complete repair plan in under seven minutes.

ProColor Collision Santa Ana Opens in California ProColor Collision Santa Ana, formerly known as S&C Auto Body Shop, recently opened at 1020 N. Harbor Blvd. in Santa Ana, CA. Owners William and Ranya Mudawar joined ProColor Collision

to continue the growth plan for their family-owned auto shop business that has served southern California for 35 years. Theirs is a full-service collision repair facility performing superior quality repairs for personal and commercial vehicles in the Santa Ana area. ProColor Collision Santa Ana showcases the Mudawars’ dedication to providing exceptional customer service and superior collision repair services to private

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10 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

and commercial customers. This, coupled with their commitment to using leading-edge technology and well-trained technicians, gives them the perfect opportunity to take their business to a different level. “As we looked toward the future and explored opportunities with multiple networks, we determined ProColor Collision was the right fit for us,” said William Mudawar. “Talking with many ProColor Collision shop owners further strengthened our confidence in the operational support, resources and organizational acumen that ProColor Collision provides.” ProColor Collision Santa Ana is an I-CAR Gold Class facility equipped with the best repair equipment, including two down draft heated paint booths, two frame machines, a 3D measuring system, aluminum rivet gun and a spot welder. It specializes in factory certified work with certifications with GMC and Nissan. It also does the auto repairs for various fleets

and government agencies. “ProColor Collision is honored when strong body shops see the value of joining our network,” said Scott Bridges, senior vice president of Fix Network USA, ProColor Collision. “From our first conversation with the Mudawars, their commitment to providing topquality service to the greater Santa Ana community was obvious and infectious. We welcome them and their skilled staff to the ProColor Collision family. We anticipate continued growth and success for their team.”

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AirPro Diagnostics Offers the Most Cost-Effective, Tested and Proven Tools, Guaranteed to Reduce Cycle Time! Brand Specialists Make it Possible to Calibrate Most Makes and Models In-House As the popularity of ADAS-equipped vehicles continues to rise in the U.S., the proper repair and calibration of these vehicles presents cycle time challenges for independent collision repair facilities as well as all automotive repair sectors. Contrary to popular belief, calibrations can be performed in your shop even where space constraints are present with AirPro’s ADAS tools including the revolutionary Auggie device which meets National Highway Traffic Safety Administration (NHTSA) standards to ensure a complete and safe repair.

Quality

Simply put, ADAS-equipped automobiles need to be repaired efficiently and correctly by qualified personnel. An AirPro Diagnostics Brand Specialist who is focused on key brands with access to multiple tools ensures a properly repaired, well-documented diagnostic service with a clear blueprint of the calibrations needed from manufacturer service information to assist shops.

Expertise

It is not reasonable to expect body shops to be experts in 35 automakers’ electronics and safety systems. Service to these systems should only be carried out by Brand Specialists from remote providers like AirPro Diagnostics, who are trained and experienced in ADAS calibrations and advanced diagnostics. We find the problems and fix them right the first time.

Cycle Time Rebound?

In the second quarter of 2023, Enterprise reported the average length of rental (LOR), or repair cycle time, in the U.S. was 17.4 days. For reference, pre-pandemic LOR in Q1 2020 was 13.2 days. This represents over four (4.2) days difference. While supply constraints during the pandemic contributed to the increase in cycle time, they have lessened for the most part and availability is no longer the single contributor. The rapid acceleration of vehicle technology and unique vehicle network design by manufacturer is a major contributing factor in the other 4.2 days of cycle time. This results in increased rental car costs and declines in customer satisfaction. Further compounding this issue is the lack of qualified staffing across all sectors including body shops, dealerships and mechanical shops. The thought that any one technician in a shop with a simple scan tool can service 35 or so brands is unreasonable. AirPro’s on-demand Brand Specialists can efficiently service 97% of shop’s needs across all brands (except Tesla). Having ondemand Brand Specialists means when you submit for GM vehicle services at AirPro, for example, a GM Brand Specialist will service the vehicle, not a Toyota technician or vice versa. This is not to say that Toyotas are not complicated, but to point out there is complexity by manufacturer and only those experienced in servicing those vehicles should diagnose, program and calibrate them. After all, you wouldn’t send a GM vehicle to a Toyota dealer for service, right? AirPro Diagnostics’ services can reduce cycle time / LOR by at least two full days, guaranteed. In many cases even more!

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AirPro Diagnostics has a 10-Minute Response Pledge from the time a facility requests service to the time an AirPro Brand Specialist is connected in the vehicle and performing live-data tests. As of September 2023, AirPro’s daily average response time in close to 500,000 service requests is one minute and 23 seconds (1:23) with a 97.3% service success rate.

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Remote diagnostics from AirPro Diagnostics strikes an attractive balance between cost and efficiency. AirPro solutions are the most cost-effective in the marketplace and pricing plans including $0 down are available. Per vehicle service fees are a small fraction of mobile or dealer fees.

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A collision repair facility always assumes all the liability for a repair, whether it was sublet to a dealer or a mobile vendor or if the services were performed in-house. AirPro Diagnostics is the only ADAS recalibration system on the market today that has an indemnification clause in its service contract with its customers. AirPro Diagnostics is the trusted global leader in remote scanning, diagnostics, ADAS calibration and programming services. AirPro’s Brand Specialist-driven solutions are guaranteed to reduce cycle time. AirPro offers repair facilities affordable, streamlined alternatives to tackling the logistical, financial and training demands of providing their own in-house ADAS technicians to tackle the unique requirements of multiple vehicle makes and models. The other option is subletting those services to dealerships or other vendors, where quality, cycle time, cost and profit is out of their hands. Remember, only AirPro Diagnostics can provide you with the Auggie device which meets National Highway Traffic Safety Administration (NHTSA) Standards to ensure a complete and safe repair. To reduce cycle time contact AirPro Diagnostics today 904-717-1711 or visit: www.airprodiagnostics.com .

autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 11

Another Estimating System To Add Flexibility For Calculating Blend Refinish Labor Times By John Yoswick

believes demonstrated blending takes more time than a full panel refinish, rather than the 50% less Audatex became the second of the time allocated in the three major Big 3 estimating system providers to estimating systems. say it will offer users more flexibility CCC Intelligent Solutions this past in establishing or adjusting refinish spring announced it too would give blend times within the system, users an option to input their own according to an announcement refinish blend time or set their own made at the Collision Industry default blend value beginning this fall. Conference (CIC) held in Indianapolis “That’s an adjustment based on this summer. the conversations, the data and Like the other two systems, the effort,” Aaron Schulenburg, Audatex currently defaults to a labor executive director of SCRS, said of time for the blend panel equal to the association’s work on this issue. 50% of the full refinish time—though â€œThis is pretty significant. This is the Audatex system does allow a saying there are different variables user to adjust the automated blend that exist, and a static [blend] formula doesn’t necessarily reflect them all. That’s a positive change. Schulenburg and other SCRS leaders at CIC expressed displeasure with what they view as Mitchell International’s failure to address the blend formula issue. “We’re surprised and shocked at the public vitriol that came out because we CIC Chairman Frank Terlep calculated processing ve been in discussions with supplements could be costing the industry more than [SCRS] since they published $3 billion a year the study,” Mitchell’s Jack Rozint said following the hours on estimates. In a change to be meeting. “We continue to research implemented in the coming months, possible changes or modifications the system will still default to 50%, or enhancements to our software and the user will continue to be able in this area. We expect to be able to to adjust it on a per-estimate basis, announce something in the SEMA but the Audatex system also will timeframe, at the next CIC meeting.” allow a user to set a blend formula In any case, even some advocates at the profile level to any percentage for the change admit it could have between 50% and 150% of full limited value for collision repairers. refinish time for the blend panel. If the estimate is written at whatever percentage the user has specified at the profile level---whether 50% or as much as 150%---no asterisk will appear next to the labor time; an asterisk will appear if the percentage has been manually adjusted from the percentage set in the profile. A new note also SCRS’ Aaron Schulenburg said the association’s work will appear at the bottom on the blend formula issue is resulting in changes to the of all Audatex estimates estimating systems showing the blend refinish labor percentage used on that estimate. Insurers, they say, are likely to The change is expected to require their direct repair shops to appear in the Autatex Database maintain the 50% default in their Reference Manual this fall, and then estimating system profiles for DRP be implemented within the Audatex claims. Even in non-DRP claims, system by the end of the year. insurers can—or can try to—push It comes following a Society of a shop use the carrier’s approved Collision Repair Specialists (SCRS) profile when submitting estimates or study last year the association supplements. Autobody News

12 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Schulenburg acknowledged at CIC one other potential shop concern about the change. “There are certainly repairers out there who will say, ‘But now this makes more work for me,’” Schulenburg said. “’Now I have more things that I need to argue about or justify. I have one more thing that isn t established. It’s now on the table for me.’” But Schulenburg argued shops should have the knowledge and the study’s published findings to support a decision to bill beyond the 50% default when appropriate. “The reality is: We’re the professionals,” Schulenburg said. “You know what you’re performing in your facility. You know what products and processes you are using. You have the justification that you need. This has put the opportunity back on the professional to establish what they’re performing.” A representative of a regional multi-shop operation who attended the CIC meeting but asked not to be identified said he is among those viewing the blend formula change with some skepticism. But he also acknowledged some successes in recent years in negotiating changes to direct repair program agreements with insurers concerned about losing his company’s significant repair capacity in his region given the industry’s backlog of work. I could see asking for a higher blend formula percentage if an insurer was resistant to other changes we were asking for, he said.

Chairman Calls for Fix to Supplements Frank Terlep, chairman of the CIC, kicked off the quarterly meeting by walking through what he sees the increased time for shops to get supplements approved is costing multiple segments of the industry. “We do about 14 million claims a year in this industry, and according to CCC statistics, 60% of those have a supplement,” Terlep said. “In my opinion, that’s not acceptable. But let s talk about those numbers for a second in a little bit more detail. “Even if that 60% have even just one supplement, he said, that’s 8.4 million supplements a year. If shops wait an average of 4.7 days for those supplement reviews—the average time shops wait for remote supplement review, according to a CRASH Network survey in June— that equates to 39 million man-days wasted each year in this industry, Terlep said. “We’re accepting that. It’s crazy.”

A CIC committee in the 1990s concluded processing a supplement cost both the shop and the insurer about $150. Adjusting that for inflation to $200 each, Terlep said— acknowledging even that estimate is probably low and does not include rental vehicle costs—means it s costing this industry more than $3.3 billion every frickin year to improperly write initial estimates or repair plans.

“That’s an adjustment based on the conversations, the data and the effort.” — AARON SCHULENBURG EXECUTIVE DIRECTOR, SCRS

We ve got to come together and figure this out, Terlep said. The consumer is unhappy. Shops are wasting their time. Insurers personnel are wasting their time. All it takes is for us to get together and figure out how do we fix a broken process that s costing this industry more than $3 billion a year? I challenge this body, the insurers, the shops and everybody in this room to find a way to get together and fix this problem. Because it’s only getting worse, not better.

Scan Tool Company Updates User Agreement At industry meetings this past spring, several speakers noted under the terms of the licensing agreement of at least one aftermarket scan tool used in the industry, the user was agreeing to allow the data collected through the tool to be transferred to the company in China, subject to China laws, including those governing the privacy and security of your information. The Autel end-user licensing agreement indicated a shop user also agreed to notify and acquire consent for such collection and transfer of vehicle data from each customer or prospective customer, and to the use of the information by the scan tool company and third parties. At CIC, however, a representative of Autel said that licensing agreement has been updated. Everyone who logs into their tool for the first time will be opted in to acknowledge it, said Paul Marshall, senior product and operations manager for Autel. If you have any questions or concerns about it, you can contact me directly. This is something we did internally, with legal counsel in New York and back at our headquarters in Shenzhen. I think it s a huge improvement. What was in there was old and was dated. We d just kind of lost track of it.

autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 13

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Autopilot Trial and said it cannot confirm whether Autopilot was engaged when the accident occurred. A similar lawsuit was recently decided in April. Justine Hsu claimed her Model S swerved into a curb while operating on Autopilot. The collision gave Hsu a fractured jaw, missing teeth and nerve damage to her face. Hsu sought more than $3 million in damages, but a California court awarded her zero damages and acquitted Tesla of any wrongdoing. It was a major victory for Tesla, as it was the first of potentially many cases involving a plaintiff getting in an accident and blaming a car

company’s semi-autonomous vehicle capabilities. However, the case brought by the two passengers is more significant and could set a precedent for future cases because there was a fatality involved. Reuters said the pre-trial battle has been intense, and Tesla has succeeded in getting some of CEO Elon Musk’s public statements about Autopilot excluded from evidence. Lee’s family will be able to argue his blood alcohol content was below the legal limit. Tesla has never claimed Autopilot, nor its Full Self-Driving suite, is capable of fully autonomous driving. Disclaimers from the company state the driver must pay attention to the road and its surroundings, as they are responsible for taking control of the vehicle.

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Tesla Cybertruck Fetches $400K At 29th Petersen Gala Auction By Simon Alvarez Teslarati

Reports suggest a low-VIN Tesla Cybertruck was auctioned for $400,000 at the 29th Petersen Gala at the Petersen Automotive Museum in Los Angeles, CA, hosted Oct. 7 by automotive legend Jay Leno. Gala attendees were allowed to bid for the vehicle. It was speculated the Cybertruck could fetch a high price, considering the fact a seat at the event cost $1,750. As could be seen in a short video shared on social media by Cybertruck enthusiast @ greggerruck, the bidding for the all-electric pickup truck was interesting, as one of the attendees seemingly had their paddle “ripped” out of their hands. The Cybertruck was reportedly sold for $400,000, several times the vehicle’s consumer price. It should be noted the winning bid is quite a bit lower than those for other electric vehicles.

The GMC Hummer EV pickup truck’s VIN 001 unit sold for $2.5 million, and its sister vehicle, the GMC Hummer EV SUV, also sold its VIN 001 unit for $500,000. Both vehicles were auctioned for charity. It appears the Cybertruck auctioned was not necessarily VIN 001. Tesla only described the vehicle as a “low-VIN” unit. It still remains to be seen who will be driving the Cybertruck’s VIN 001 unit, though CEO Elon Musk is known to have kept some of Tesla’s VIN 001 vehicles in the past, including the original Tesla Roadster, which Musk personally drove.

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The Rivian Evolution Revolution By Stacey Phillips Autobody News

Whether they are out on an adventure or part of an electrified fleet, Rivian vehicles are all designed with a common goal—to help preserve the world for future generations. Frank Phillips, Rivian’s former senior manager of the Certified Collision Network North America, shared information about the manufacturer’s adventure vehicles at the September CIECA CONNEX Conference in Bloomington, IL. Attendees also had the opportunity to tour the Rivian plant nearby in Normal, IL.

the things we have.” Prior to Rivian’s ownership, the plant was operated by Mitsubishi Motors North America (MMNA). Phillips said it was an industry-leading facility in the U.S. with more than 400 advanced robots. The plant closed in late 2015. “They were going to repurpose the property and it was an opportunity for us to refurbish the facility,” said Phillips. “That’s part of our culture and what we stand for. Our intent is to make sure that we keep the world adventurous forever and we become sustainable for our kids to enjoy that adventure as well.” Since purchasing the property for $16 million in 2017, Rivian has invested about $4.5 billion into refurbishing the plant. “It’s probably one of the brightest, cleanest looking facilities you will walk into,” said Phillips. “A tremendous amount of white paint has gone into getting where we are today.”

The Rivian plant is home to some of the largest robots in the manufacturing business to accommodate EV construction.

During his presentation, “The Rivian Evolution Revolution,” Phillips discussed what the OEM is doing differently to impact the collision industry, both as an electric vehicle (EV) manufacturer and a certified collision program. Rivian was founded in 2009 by Robert “RJ” Scaringe, the company’s CEO. Scaringe named the company Rivian after the Indian River in Florida, where he grew up. Phillips said Scaringe, a graduate of MIT, was known by many as an ambitious young man who always wanted to own a car company and revolutionize the world with the vehicles he sold. Phillips recalls walking into the Rivian factory for the first time and seeing Scaringe on the catwalk. After introducing himself to Phillips and the other 10 people he was with, Scaringe recalled who they were based on information from their resumes. “At that time, we were about 4,000 employees and he was able to recall who we were,” said Phillips. “That’s the brain power he has.” Since then, Rivian has grown to include 14,000 employees, which include approximately 7,000 who work at the assembly plant. “When you think of when the company started and where it is today, it really is an evolution,” he said. “I think Rivian has taken on a revolution at the speed in which we’ve done some of

Following the CIECA CONNEX Conference, attendees had an opportunity to tour Rivian’s plant in Normal, IL.

The approximately 4 millionsquare-foot plant builds all Rivian models. Three vehicles, constructed of steel and aluminum, were launched in 2021: the R1T electric pickup truck, the R1S, a sevenpassenger SUV, and the Amazon electric delivery vehicle (EDV). Earlier this year, a smaller version of the EDV was launched. The company is producing a fifth product, a service van, an iteration of the EDV designed to travel to Rivian owners’ locations to take care of their service needs. Phillips said the plant is home to some of the largest robots in the manufacturing business to accommodate EV construction. The massive robots build pieces for Rivian’s EDV, which is 9.5 feet tall. The refinishing section was designed to be a cutting-edge facility. “There isn’t another one like it in automobile manufacturing,” said Phillips. With a focus on sustainability, Phillips explained each vehicle is painted off an individual packet so there isn’t a wash out of lines, compared to a traditional manufacturing facility that pumps

16 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

in paint. As a result, colors can be changed quickly as vehicles come through the paint shop. Rivian’s assembly line is similar. There are two lines, one for passenger vehicles and another for the EDV, so Rivian can interchange the R1S and the R1T. In addition, Rivian has created a recycling program to recondition its batteries.

The approximately 4 million-square-foot plant builds all Rivian models.

“Recycling is a great opportunity,” he said. “When an EV battery reaches its end of life, there’s still a tremendous amount of life and capability in that battery. It doesn’t just need to be thrown away.” EV Charging Infrastructure As the industry moves away from internal combustion engine (ICE) vehicles to battery electric vehicles (BEVs), Phillips foresees charging networks will help drive adoption rates across all EV product lines. “I absolutely love Rivians,” said Phillips, who owns an R1T and an R1S. “They’re fantastic vehicles, but I will confirm… I have charged at Electrify America chargers and others and have been very frustrated.” Phillips said the recent adoption of the North American Charging Standard (NACS) chargers designed by Tesla will help address infrastructure challenges and lead to more rapidly available and reliable charging. “Manufacturers are working on solutions to deliver robust, highpowered charging locations nationally and each OEM has a branded strategy to address the gaps,” he added. Phillips talked about Rivian’s role in contributing to the charging infrastructure. As a new vehicle company, Phillips said the charging network is something leadership understood needed to be addressed to succeed. “The scope of our company ethos is to keep the world adventurous,” he noted. “When you take your Rivian out on the trail, we want to have a charging network there for you to access.” In addition to a wall charger and portable charger, Rivian is building the Rivian Adventure Network, a

comprehensive network of fastcharging sites, initially capable of adding up to 140 miles of range in 20 minutes to the R1T and R1S. Open to Rivian owners, the network is planned to grow to more than 3,500 fast chargers at over 600 sites across the U.S. and Canada. Rivian is also collaborating with Tesla to charge its vehicles at more than 12,000 Tesla Superchargers across the U.S. and Canada with an NACS adapter. Although Phillips said the transition to EVs is an adventure, he encourages repairers and customers to stay positive while the charging infrastructure is implemented. Rivian Certified Collision Network When Phillips joined Rivian three years ago, he was tasked with creating a certified collision network across North America with Kelly Logan, Rivian’s director of collision. The first body shop was certified in August 2021; there are now 220 certified locations. They are comprised of four programs under the Rivian Certified Collision Network umbrella: Rivian Certified Collision Centers (RCCC) locations working on R1 products, Rivian Certified Fleet Center (RCFC) locations working on the commercial vans, RCDC locations offering calibration and diagnostics, and RCV locations, B2B partners working with Rivian on predelivery repair needs. The Rivian collision team is in the field recruiting shops and working with repairers to help them perform better. Each program is designed to address specific customer needs, which Phillips said allows the network to focus on vehicle specialization. “Flexible program offerings ensure a better customer experience by placing clients in the right locations to start,” he said. “Offering choice also adds appeal to the program by addressing program entry costs.” Phillips said one of Rivian’s unique features is the manufacturer’s certified diagnostic and calibration program, created to ensure a successful calibration and safe and proper repairs. “When you look at a Rivian, there are cameras and sensors everywhere so it is going to need calibration if it’s in an accident,” he said. Since Rivian opened its doors, Phillips said the company is happy with its progress. “The quality of the Rivian continues to ramp up and improve and they are a treasure to drive,” he said. “Our customers are saying the same.”

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 17

l CONTINUED FROM COVER

Devasting Wildfires We heard there was a fire but allegedly, it was contained. It was surreal because we could hear

Amanda Funkhouser provided this image of her and her husband’s business, Ka’anapali Collision, after wildfires swept through in August

popping noises. It sounded like heavy equipment or moving boulders but it was propane tanks exploding in people’s houses. Friends came over around 4:30 p.m. and there were 10 of us standing on our lanai [patio] watching the fire come. We packed an overnight bag and told our 10-year-old daughter, Coraline, to bring whatever she wanted as long as she could carry it.

She did a good job. Once the fire crossed the highway, our friends evacuated. We stayed a while longer… who would have thought our house would burn down? We saw the fire department come down the road and asked if we should leave. They said yes. I have a friend in Wailuku who invited us over. They were amazing. They made my daughter pancakes, let my niece, Hana, take a shower and gave us coffee. A couple who coordinates our business insurance and payroll asked us to stay in their Ohana [guest quarters] in Kihei. Once we got there, we had a sigh of relief and felt we had a safe place to stay.

shop, like family, it has been really hard to lose one of our own.

Taking Next Steps On the day of the fire, I changed our voicemail so customers had my email and could contact me because we couldn’t access our phones.

and half of the people there were my previous customers. I may not be close to them. We might not be friends but I know these names and faces. It hurts all the same. This disaster is much bigger than people losing their homes or businesses. This is our entire community losing. The mayor said it would be a minimum of two years before we start rebuilding Lahaina. I feel so overwhelmed because not only did we lose our business, but we also lost our home.

Welcomed Support

Devasting Loss The first few days, we had hope that our house was still there or the shop wasn’t a complete loss. Within the week, we watched a video online and saw the shop was destroyed. So was our home. Three employees lived on the other side of the island so I knew they were OK and I saw my estimator. Another employee, Mark Kaminsky, who lived in the apartment above my office, didn’t make it. I found out about a week later after talking with the Red Cross and FBI regarding missing persons. We are such a small

Jess Unruh, left, Amanda Funkhouser, right, and their daughter, Coraline, center

I felt like a zombie, knowing that I needed to do certain things but didn’t have the capacity. I told vendors to cancel pending orders and contacted our insurance providers. I told them my family is safe but the shop is likely destroyed and to not send any more claims. I went to the community meeting

We’ve been overwhelmed by the amount of care, concern, love and support we’ve received from our industry. Almost immediately, Michael Chong, Rob Collins and Brandon Okahara from the Automotive Body and Paint Association of Hawaii contacted me. They have been a shoulder to cry on and an ear to listen to sound advice. They’ve been amazing. Michael Quinn and Petra Schroeder from the Collision Industry Foundation (CIF) have been wonderful. Michael was able to help us apply for funding and Petra is so kind and helpful. CIF provided a $20,000 grant for our shop and split it

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among our employees so everybody received a $2,500 initial payment. CIF is also going to help retool everyone. Todd, my estimator, was my painter and his equipment was destroyed in the fire. For my body techs, they were going to put together a tool drive on Oahu. Greg Schneider, president of Hi-Line Distributors, reached out and wants

I are independent and built this business on our own. We don’t take out loans or have debt aside from our mortgages. If we want something, we save up and buy it. To be in a position where you don’t have control over anything and can’t help yourself was a hard pill for us to swallow. I knew our industry and association want to see each other succeed. The amount of support and genuine concern everyone has had for us is humbling. People really do care.

Words of Advice

After evacuating, Amanda and Jess learned their business was a total loss

to work with me on getting new equipment when we find a space. Axalta has gone above and beyond. I can’t believe how much care they’ve shown. CCC reached out and was able to help me access my databases and wrap up some files so I could still assist customers. One of the hardest things was taking the help offered. Jess and

I’ve learned is to ensure you have appropriate insurance coverage and talk to your agent to prepare for something like this. I wasn’t. None of us think we will be in a situation where we lose everything. Make sure you run through all the scenarios and have a contingency plan. I recommend having everyone’s phone number saved in your cell phone or cloud. We all know how hard this industry works but when you get thrown a curve ball like this, you realize how important it is to access information. Make sure all your databases are backed up and everything is on the cloud. If your computer burns and you don’t have anything saved, it’s much harder.

The Healing Process Our good fortune is not lost on us. I am thankful that the exit from our house was not overly traumatic. Obviously, it wasn’t great, but we didn’t have to jump in the water or outrun the fire. There was no immediate concern for safety and our story is much less dramatic than so many others. I feel a huge amount of guilt for how easy it was for us to leave. We’re currently living in Napili. Jess and I are very much a team and we could not do any of this without each other. We both have good days and bad days and some are harder than others. Everyone reminds me that I need to take time for myself and grieve. I’m trying to do that but I want to put business plans in place. I’m working with a Realtor to find another commercial location to reopen our business. We prided ourselves on being part of our community and serving customers with a quality of repair and a lot of Aloha. We need to get that back. To send a donation to CIF, visit www.collisionindustryfoundation. org/donate.html. To ask for assistance, visit www. collisionindustryfoundation.org/ disaster-relief1.html.

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Auggie Calibrations Meet NHTSA Standards AirPro Diagnostics announced its Auggie mobile static recalibration device has been independently tested, and calibrations performed prove to meet the NHTSA vehicle requirements to help ensure a complete and safe repair. FT Techno of America (FTTA), an independent vehicle evaluation company, performed NHTSA NCAP Crash Imminent Braking (CIB) or Automatic Emergency Braking (AEB) and Lane Departure Warning (LDW) test scenarios on a vehicle recalibrated with Auggie, and determined the vehicle successfully passed all CIB and LDW tests performed at the Fowlerville Proving Grounds to the NHTSA testing standard. Auggie is a wireless, compact solution that saves time and increases efficiency rendering the ADAS targets and lighting conditions in a theater-like environment to precisely perform forward-facing camera (FFC) recalibrations. For more information, visit www. airprodiagnostics.com.

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630-361-6210 autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 19

CCC Breaks Down Rise in Total Cost of Repairs, Other Trends By John Yoswick Autobody News

CCC Intelligent Solutions offered a look at industry stats and trends as of mid-year during a recent webinar hosted by the Collision Industry Electronic Commerce Association (CIECA). Bart Mazurek, vice president of consulting services for CCC, said vehicle miles traveled through the first five months of this year, according to the U.S. Department of Transportation, was running a bit ahead of 2022. “When we compare it to [prepandemic] 2019, it’s actually fairly similar except for the April timeframe,” Mazurek said, which means there’s been “a noticeable bump compared to last year.” More miles driven generally means some increase in vehicle accidents. And claims this year are, perhaps not surprisingly, involving a continued increase in the total cost of repairs. DRP claims in the first quarter of this year averaged $4,444, up $223 from the average for all of 2022. But that 5.3% increase is more in line with the increases seen in 2019 and 2020, and significantly smaller than the jumps in total cost of repairs in 2021 (10.6%) and 2022 (14.3%). While the increase should be good news for shops, the breakdown of those total costs may mean fewer dollars on the bottom line for collision repairers. In 2019 and 2020, according to CCC data, labor accounted for as much as 40.4% of total repair costs. That’s dropped by about two percentage points in 2022 and the first quarter of 2023, as parts and other costs—which generally have lower profit margins for shops— have increased as a percentage of the total costs of repairs.

Types of Parts Used Has Shifted The breakdown of those parts costs by parts type—new OEM, non-aftermarket, salvage—also has shifted, according to data reported by CCC. In 2020, non-OEM parts accounted for 18.4% of the total dollars, but that fell to as low as 15.6% in the first quarter of 2022. “That was because most aftermarket parts come from Asia, and supply chain issues certainly took effect,” Mazurek said. “So there was limited availability of aftermarket parts.” But that began rebounding in the second quarter of last year, reaching 19.2% in the first quarter of this year, “really right back to its historical

norms,” Mazurek said. He said he expects total cost of repairs to push closer to $5,000 in this half of 2023. That’s because repairs of newer vehicles are requiring more parts—about 16 per claim compared to about 12 for vehicles seven years or older.

current model year vehicles, the recent change is even more dramatic. “It’s really gone from 20% [of those claims] to 35% effectively in just in the last five or six quarters,” CCC’s Mazurek said. “I anticipate that as even more vehicles have ADAS capabilities built in,

The percentage of direct repair claims that include one or more scans has jumped 14% since the start of 2022, according to CCC Intelligent Solutions, with every age of vehicle seeing a steady increase

“It’s much more part intensive because today’s vehicles have so much more technology that either works [after an accident] or it doesn’t, so it’s not necessarily repairable and needs to be replaced,” Mazurek said. Claims on vehicles up to 3 years old are already averaging more than $5,000 compared to about $3,600 for the oldest vehicles repaired. About 37% of DRP claims last year were $4,000 or higher, up from just 26% in 2019. And the percentage of claims over $10,000 doubled from 4% to 8% between 2019 and 2022.

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More Scans, Calibrations In other trends CCC is seeing, the percentage of direct repair claims that include one or more scans has jumped 14% since the start of 2022. About 73% of those claims this year have included a scan, up from 63% in the first quarter of 2022. Scanning fees on those claims in the first quarter of this year averaged $137 per claim—the national average including DRP and non-DRP claims was $141—with an average of 2.3 scanning line items per claim. Fees for calibrations averaged $401 and 1.4 line items for DRP claims in the first quarter of this year, with calibrations being listed on 16% of claims, up from 10% in the first quarter of 2022. Looking at DRP claims involving

much more common across the industry.” Labor rates have continued to increase, particularly for mechanical labor. CCC data show mechanical rates rising 11% in 2022, and 8.6% through the first half of 2023. Those are larger percentage increases than the year-over-year change in that period in rates for body and frame labor, which were generally in the 6% to 9% range. Turning to electric vehicle trends, Mazurek said about 295,000 new electric vehicles were purchased in the second quarter of this year, signaling the annual pace of EV sales will top the forecast for not just this year but next year as well. “It’s really outpaced everyone’s expectations,” he said. “So my expectation is that by the time we actually get to 2024, we will be significantly north of the [forecast] 1.2 million vehicle [annual sales] mark.” CCC data shows the average total cost of repairs for EVs in 2023 is running 38% higher when compared to non-EVs, with an average of 34.7 labor hours per appraisal, compared to 27.7 for non-EVs, and an average of 24.7 parts replaced, 10 more than non-EV claims.

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Automakers Join Other Businesses To Ask For Federal Investment in Clean Aluminum

Hunter Wins PTEN People’s Choice Awards

Ford, GM and Rivian, along with 11 more companies in a wide range of other industries, sent a letter Oct. 5 to the U.S. Department of Energy (DOE) to encourage the investment of Inflation Reduction Act funds in modernizing the American aluminum industry. The letter was published on www. buycleanaluminum.com and in full page ads in five newspapers in New York, Missouri, Kentucky, South Carolina and Indiana, where the remaining six primary U.S. aluminum smelters are located. DOE officials are currently evaluating applications from those smelters to invest IRA dollars that will reduce emissions from manufacturing processes and power supplies. In a news release, Ford said aluminum is used in everyday food and beverage products, as well as “clean energy” products like solar panels, wind turbines, heat pumps, transmission lines, electric vehicles and more. Global demand for aluminum is set to increase nearly 40% by 2030 and 80% by 2050. Yet, in the past 18 months, the U.S. primary aluminum industry has been pushed “to the brink,” plagued by layoffs, curtailed production and

Hunter Engineering is proud to announce two Hunter products— the 1708-T Alignment Guide and BL Series of bench lathes with HunterNet 2 connectivity—were named winners in the 2023 PTEN People’s Choice Awards, voted on by readers of PTEN Magazine, following the selections made by an expert panel of judges from the PTEN Innovation Awards earlier this summer. The 1708-T Alignment Guide was also a winner of an Innovation Award. Previously available in print only, Hunter made its well-known and highly respected 1708-T Alignment Guide available online via the HunterNet® 2 portal at no charge. Hunter added HunterNet 2 connectivity to its BL Series of bench lathes with tablet. HunterNet 2 is a free customer portal developed for undercar service operators with single or multiple rooftops, allowing operators to access performance data for all Hunter-connected equipment. For more information on the 1708T Alignment Guide or HunterNet 2, contact your local Hunter business consultant at www.hunter.com/ contact.

closures due in part to the volatile price of fossil fuels. Power supply accounts for 40% of U.S. smelters’ total production costs, and smelters in Kentucky and Indiana said high energy costs due to volatile fossil fuel prices necessitated curtailing operations last year. At the same time, the price of electricity from renewable sources like wind and solar has plummeted over the last decade. Rather than allow these smelters to become priced out, the federal government can secure low-cost electricity supplies in the short term while investing in long-term supplies of cheap, renewable energy. “As significant buyers of primary aluminum, we strongly support federal investments via the Inflation Reduction Act (IRA) to ensure that the United States will be a leader in producing this critical material, which is essential to America’s economic growth,” the letter to the DOE said. “The IRA is poised to make the largest-ever investment in U.S. manufacturing, supercharging aluminum-dependent clean energy technologies” like wind and solar, which is forecasted to alone exceed all current aluminum consumption,

the letter said. “In order to meet increased aluminum demand that will affect all our industries, the U.S. must invest heavily in supply,” the letter said. Investing in the U.S. aluminum industry will retain and create manufacturing jobs, help reduce emissions and grow and sustain the industry in the interest of national security, the letter said, urging the DOE to prioritize decarbonization of aluminum and the deployment of low-cost carbon-free energy the industry critically needs. “Ford is committed to achieving carbon neutrality across our vehicles, operations and supply chain no later than 2050, and sourcing domestically produced, lower-carbon primary aluminum is part of a host of actions we are taking that will help us meet our ambitious sustainability goals,” said Cynthia Williams, global director of sustainability, homologation and compliance at Ford, in a statement. “The Inflation Reduction Act presents a powerful opportunity for the Department of Energy to prioritize American-made, clean sources of aluminum, which will in turn make more sustainable options available to companies like Ford.”

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CCC Offers AI Solutions To Collision Repair Labor Shortages CCC Intelligent Solutions Inc. on Oct. 11 announced the introduction of Repair Cost Predictor and Mobile Jumpstart, two applications of its AI offering relief to a community hit particularly hard by national labor shortages. The new AI-powered solutions integrate into the repair process of CCC ONE® users, automating initial damage assessments and jumpstarting the estimating process. This helps experienced estimators—a shop’s valuable, yet scarce resource—remain focused on the most important tasks. Repair Cost Predictor uses AI to automate an initial damage assessment, instantly generating a repair cost prediction of damage for consumers, while Mobile Jumpstart uses AI to pre-populate an initial estimate from a user’s mobile phone. Both solutions save an estimator’s precious time by streamlining labor-intensive tasks, as well as delivering intelligent solutions that help create the best possible outcome for everyone involved in the repair process. “Our estimators are putting in long hours, struggling to keep up

with the daily demands placed on our shop,” said Michael Whittemore, owner of Flagstaff Collision Center in Flagstaff, AZ. “CCC’s new AI solutions have already made a real difference. Our estimators now have breathing room to focus on what truly matters—delivering exceptional service to our customers. Our customers that have used Repair Cost Predictor love how quickly they can get an idea of how much repairs may cost, empowering them to make informed decisions about what to do next.” Repair Cost Predictor, a feature of CCC Engage, applies AI to digital photos of vehicle damage submitted by consumers, generating a predicted range for the cost of repair in seconds. The tool helps inform consumers about the potential extent of damage to their vehicles so they can determine next steps, including if they want to file a claim. It also allows them to schedule an appointment for a detailed estimate with their selected repair facility. “Our estimators have wanted the ability to start writing estimates

from their phone while at the car and Mobile Jumpstart lets them do just that,” Whittemore continued. “AI gets the estimate started and then we can document additional damage right at the car with the customer using CCC ONE Mobile.” Mobile Jumpstart, a feature of CCC ONE Estimating IQ, enables technicians to initiate the estimating process right at the vehicle using their smartphones. Advanced AI analyzes vehicle damage photos and pre-populates estimate lines using AI developed with millions of historical data points contained within CCC’s system. It also provides recommendations to repair, replace, or remove and install parts. Mobile Jumpstart empowers repairers to initiate estimates on the spot, sync work seamlessly and harness AI technology for more accurate estimates. “We’re bringing Repair Cost Predictor and Mobile Jumpstart forward at a time when repairers are being challenged by labor shortages, supply chain disruptions and growing vehicle complexity,” said Mark Fincher, vice president, product management, automotive

services at CCC Intelligent Solutions. “These tools will help repairers to meet the evolving demands of the industry, all while delivering exceptional service to consumers.” Both Repair Cost Predictor and Mobile Jumpstart are available to shops via CCC ONE, CCC’s cloudbased platform that improves every stage and level of the collision repair cycle, including the consumer experience. Added Fincher: “Repair Cost Predictor streamlines the consumer experience and creates opportunities for new business, all while allowing repair shop staff to focus on core tasks. Mobile Jumpstart enables technicians to initiate estimates on the spot, leveraging AI for more precise estimates and enhancing overall efficiency, benefiting both consumers and repairers.” CCC introduced its first AI solution for vehicle damage assessment in 2013 and has since developed more than 300 AI models, many of which are applied and widely adopted across a range of solutions.

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The National Highway Transportation SafetyAdministration (NHTSA) announced it has opened an engineering analysis of 2.7L and 3.0L EcoBoost engines produced by Ford for several model year 2021 and 2022 trucks and SUVs.

The engines are present in about 710,000 Ford Bronco, Edge, Explorer and F-150 and Lincoln Aviator and Nautilus vehicles. NHTSA said owners have reported a sudden loss of power due to catastrophic engine failure related to an alleged faulty valve. The agency first started looking into the engines in March 2022, when it received a

request to investigate a possible defect from the owners of three 2021 Broncos with the 2.7L EcoBoost engine. A preliminary evaluation was opened in July 2022, at which time NHTSA asked Ford for materials related to the 2021 Bronco, as well as any other vehicles equipped with the 2.7L EcoBoost engine. Ford provided evidence of 328 customer complaints, 487 warranty claims and 809 engine exchanges—but zero crashes or injuries—as well as evidence that the alleged defect is present across the Nano engine family, which includes both the 2.7L and 3.0L EcoBoost engine variants. On Sept. 23, NHTSA opened the engineering analysis, which will determine if a recall is warranted. NHTSA said its investigation so far has identified multiple

contributing factors which can lead to the fracturing of the intake valves in the engines. Ford acknowledged a fractured intake valve can result in catastrophic engine failure and a loss of power, and noted that following a valve fracture, a vehicle typically requires a full engine replacement. Ford said the defective valves were manufactured out of a specific alloy known as Silchrome Lite, which can become excessively hard and brittle if an overtemperature condition occurs during machining. A design modification was implemented in October 2021, which changed the intake valve material to a different alloy known as Silchrome 1, that is less susceptible to over-temperature during machine grinding. Ford said the defective intake valves commonly fail early in a vehicle’s life and suggested the majority of failures have already occurred.

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The Women’s Industry Network (WIN) announced the launch of its 2023-24 sponsorship campaign. The organization, which provides networking and connection opportunities for women in the male-dominated collision industry, announced this year’s sponsorship campaign is vital to the organization’s goal to attract, retain and advance women in the collision repair industry. Today’s prospective employees are looking for organizations that offer professional development opportunities and invest in educating their employees beyond the typical benefits package. Sponsoring an organization such as WIN is a great way for employers to use the resources and events WIN offers. Numerous sponsor level opportunities exist for WIN supporters, with various features and benefits available for all six program tiers: For more information, visit thewomensindustrynetwork.site-ym. com/page/Sponsorship or contact a member of the sponsorship committee at sponsorship@ womenindustrynetwork.org.

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Mike Anderson — From the Desk of Mike Anderson

Doing More Calibrations ‘In-House’ Often Doesn’t Mean in Your Shop I’ve been a proponent—here in this column and elsewhere—in collision repair businesses working to conduct more ADAS calibration, resets and reprogramming in-house. One of the members of my Spartans groups recently told me he had some concerns about that view, and he had some valid points I thought were worth addressing here. Let me start by saying I still believe shops should do more of their ADAS work themselves, for several reasons. Clearly, it’s a potential—and growing—profit center. But more importantly, it gives you more control over the process. It can reduce cycle time issues caused when work is sublet. And most importantly, it better ensures the work is being done properly—for the safety of your customers and to reduce your shop’s liability. That said, Andy Tylka pointed out there are some real challenges to bringing more ADAS “in-house” I didn’t fully spell out. Andy owns multiple body shops in the Midwest, is the current treasurer on the Society of Collision Repair Specialists’ board of directors, and is co-owner of Midwest ADAS, stand-alone calibration centers serving body shops in Indiana and Illinois. Andy’s concern with my position about bringing ADAS in-house is it’s just not something many—if not most—shops have the facility to do under the same roof in which they are performing collision repair and refinishing. And he’s right about that. So let me clarify what I’m saying. First, bringing ADAS work in-house involves so much more than just buying some equipment. You need to get the training required, for example. Some automakers, like Toyota/Lexus, offer hands-on technician training in ADAS work. I-CAR is offering training as well. But the key is you can’t just think you can just take somebody off the street and start doing this work without the right training. Second, you need to have the right equipment. To the best of my knowledge, no automakers, other than Lucid and Rivian, have approved any aftermarket solutions for calibrations. So until that happens, until the OEM engineers have signed off on an aftermarket solution, I stand by my position that you need to be using factory scan tools, targets and

equipment for all ADAS work. The precision this work requires makes that an absolute must. Third—and this was one of the key points Andy pointed out I failed to mention—is you have to have the right space and environmental conditions within your facility to do this work accurately. Most existing body shops just don’t, which limits their ability to bring this work “in-house.”

An ADAS Midwest calibration center has the space, level floor, consistent lighting and other requirements to perform ADAS calibration work properly

All of the automakers, for example, spell out their space requirements for ADAS calibrations. While it varies, you generally will need a minimum between 2,000 and 4,000 square feet of space. That’s space with no obstacles—columns or poles, or even toolboxes. Some shops think they can re-engineer the calibrations to offset or compensate for their space. “I only need this much space on the left rear of the car because I’m only doing a blind spot monitor calibration in the left rear.” That’s not accurate. You have to have the specified space on all sides of the vehicle to do consistent, accurate ADAS work. The floor has to been precisely level; if there’s a drain in the floor, that’s generally an indication that floor will not be level enough for accurate ADAS calibration work. Again, what qualifies as a “level enough” floor varies by automaker, but they all provide those specifications. A slope of even just a couple millimeters beyond the specification can have a tenfold impact on that calibration. Very few existing body shops have a level enough floor for calibration work. Controlled, consistent and dimmable lighting is equally important. If your shop has skylights or windows or overhead doors open during calibrations, all those variances in lighting can impact the accuracy of

26 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

ADAS work. The presence of metal, the glare of the floor or anything hanging on the walls also can impact calibrations. Given all this, I want to clarify that when I say shops should be working toward bringing more of this work “in-house,” that generally doesn’t mean trying to do it in their existing shop. The clients of ours I see doing this most successfully are developing other facilities specifically for this work, sometimes as separate businesses from their shop—dedicated buildings, employees, equipment and training for this work. As I said, the key upside for doing this is ensuring the work is being done correctly. With no offense to dealerships, many of them are not doing correctly the calibration work body shops are subletting to them— often because they don’t have the space and environmental conditions needed. Andy shared with me one such story. “We had an educational session

at one of our facilities right after we opened it, and we had more than a dozen adjusters there from three insurance companies, along with representatives from other shops, dealerships and even an automaker there,” Andy told me. “That morning we had received a vehicle that had been calibrated elsewhere. We checked it, and the automatic emergency braking was off by twoor three-and-a-half degrees. This was a car that had been returned to the customer as calibrated. The car wasn’t telling the customer there were any issues with it. But the radar was off by several degrees and pointed up in the air. So we had a perfect example of why this work needs to be done right, in the right facility.” I want to thank Andy for pointing out that when I say shops should be doing more of this work themselves, I need to clarify that doesn’t necessarily mean “in-house.” They have to be able to do it with the precision needed to do it correctly.

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Trainer Says ‘Who Pays?’ Survey Data Shows Industry Needs To ‘Wake Up’ on Weld Testing More than one-third of repairers (37%) have never sought to be paid to perform test welds, according to the latest results of the “Who Pays for What?” survey. While that is a big improvement from the 80% of repairers who acknowledged in 2015 never charging for that procedure, it still leads Mike Anderson of Collision Advice to question whether that one-third of shops are even conducting weld testing. “We need to wake up on this one,” Anderson said. “This is a non-negotiable procedure that every OEM says is necessary. If your techs aren’t doing this, don’t delay, get them doing it today. I recently was at a shop that set up and performed a destructive test weld that failed because the welding equipment did not have the latest software update. That was not the first time I’ve seen that happen. Be sure to check with your welder equipment company to know when any updates should be performed.” In 2015, 78% of repairers said

the eight largest insurers never paid for the time it takes to make and destructively test welds prior to welding on the vehicle. That number has since dropped to 38%, but still only 33% of repairers say they are regularly paid for the procedure.

“Our whole industry needs to acknowledge how critically important test welds are. Repairers need to perform them routinely, and insurers need to pay for them routinely.” — MIKE ANDERSON COLLISION ADVICE

Anderson said he’s disheartened by the fact only onethird of shops say insurers pay them for destructive testing of welds. “Our whole industry needs to acknowledge how critically important test welds are,” he said. “Repairers need to perform them

routinely, and insurers need to pay for them routinely.” The latest quarterly “Who Pays for What?” survey is now open through the month of October. It focuses on billing and payment practices related to scanning and calibrations, aluminum repair and shop supplies. Shops can take the survey at www.surveymonkey. com/r/N57XS3R Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. The survey can be completed in about 15 minutes by anyone familiar with their shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released. The results of previous surveys are also available online at www.crashnetwork.com/ collisionadvice.

Global Finishing Solutions (GFS) is dedicated to helping body shops be more productive, efficient and profitable, while achieving flawless paint finishes. Whether you are investing in your first paint booth or looking to increase throughput within your current footprint, we will work with you to find the right solution for your needs. 28 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Autel Releases ADAS Calibration Updates Autel has released another round of 2023-24 vehicle models ADAS calibration coverage software, providing ADAS calibration coverage for the most common systems on many Audi, GM, Porsche, Hyundai/Kia, Mitsubishi, Nissan and Stellantis models to all MaxiSYS tablet owners, MS906 Pro and higher, with active ADAS calibration software subscriptions. Autel also announced at Auto Glass Week in Virginia Beach, VA, it is taking pre-orders for its new Subaru wide-angle mono camera calibration target set. Specific trim lines of Subaru Outback, Ascent, Legacy and Crosstrek vehicles feature a wide-angle mono camera designed to work with the Eyesight system to recognize pedestrians and bicycles entering the roadway from the sides. The Subaru target set is compatible with all ADAS calibration frame systems. Find information by visiting the ADAS Calibration Guide at Autel.com.

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‘Most Influential Women’ Honorees Discuss Roads To Success Within Collision Repair Industry By John Yoswick Autobody News

The six women speaking during a Women’s Industry Network (WIN) webinar this fall have very different roles within the industry: a sales manager for a paint company, a dealership body shop manager, a senior vice president for a large multishop organization, etc.

But what they all had in common was being named WIN 2023 Most Influential Women award honorees, and during the webinar, they talked about how they approach their dayto-day work, how they manager their careers, and how all that interacts with their daily lives. Jaime Shewbridge, an I-CAR welding instructor, discussed how she handles the stressful aspects of working in the industry. She said that’s something she’s focused on this past year because of the impact she’s seen it have on her physical health. She said you first have to admit to having “a whole lot on your plate,” and “learn how to say no” at times. “Saying ‘no’ really lowers your stress level,” she said. “You would think it would be the other way around, but it’s not.” She said she uses “time blocking,” designating certain time for her family, for example, during which “they have 100% of my attention,” and “it doesn’t matter if somebody needs help at work, or if there’s a class, whatever it is, that block is theirs and nothing changes that.” She also said the book “Extreme Ownership” by Jocko Willink and Leif Babin will “change your perspective on life and help you prioritize your tasks and then execute.” The biggest change she said she made, however, was giving up multitasking.

“It’s an illusion, right? We all think that we’re good at multitasking. We all think we can do lots of things at one time,” she said. “But I read a study, and I might get the numbers wrong, but if you stop one task, it takes between 17 and 23 minutes to then refocus yourself back on that task. So you lose quite a bit of time by trying to do that. And when I gave up multitasking and just

focused on exactly what I was doing at that moment, I became way more productive. I got way more done in a certain timeframe than if I was literally trying to do three things at one time.” Finding a Mentor Yohanna Peet, who leads the Technician Apprenticeship Program (TAP) for Caliber Collision, said whatever your role in a collision repair business—from owner to apprentice technician—finding a mentor can help you reach your goals. Look for those, she suggested, who “maybe have gone through a circumstance like you’re going through” or who may also be mentoring someone else. “Sometimes it’s just asking, and what’s the worst they can say, ‘I’m flattered, but I don’t really have time right now,’” she said. “Or, the other side of it is, ‘Wow, I had no idea that you saw me from that perspective.’ And what does that do for that person’s self-efficacy, that now [they realize] you see them as a promoter, a mentor. So a lot of what I’m saying is speak up. And when you’re offered a seat at the table, take a seat at the table, take the opportunity to say, ‘That’s great. I want to learn more about this. Can you help me? How did you get there?’ Ask the questions because that’s where you’re really going to see all the reciprocity come with it.”

30 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Being a Mentor April Lausch also discussed how her experience with mentoring shapes her current role as manager of Faulkner Collison Center of Lancaster in Pennsylvania. Her first job in the industry at age 18 was as an office manager at a collision center. “The manager at that time was, I would say, my mentor to a point,” she said. “They wanted me to be an estimator. So they sent me to estimating school for two weeks. I got my estimating license. And when I came back to the shop, I still only knew the basics. So the manager kind of took me under his wing. We wrote tow-ins together, and for a couple years, he taught me how to be a really good writer. So as a mentor in that aspect, he was really good.” She also viewed the shop’s technicians as mentors. “They helped me more, and still do, even to this day,” she said. “I will be in the shop, and they would just teach me a lot.” After five years, she said, she got an offer to work at a Chevrolet dealership as an estimator, a job that offered about $60,000 more than she was making. The manager

at her existing employer, however, suddenly became very discouraging, “telling me that I couldn’t do it, there was no way that would ever happen, that that job opportunity wasn’t out there,” Lausch said. “After two weeks of that, I almost stayed, but I decided to go, and I ended up becoming assistant manager” at the Chevrolet dealership. She later joined the Faulkner dealership, where she became manager within a year.

“You know, I’ll never hold any of my employees back. I want them to grow. I want them to become better.” — APRIL LAUSCH

COLLISION CENTER MANAGER, FAULKNER COLLISON CENTER OF LANCASTER

“So I had a great mentor until it was time to move on to the next space,” she said, saying that experience has stuck with her. “You know, I’ll never hold any of my employees back. I want them to grow. I want them to become better.”

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 31

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32 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Please contact these dealers for your Honda or Acura Genuine parts needs. HONDA CALIFORNIA

CALIFORNIA

Barber Honda

Honda of Pasadena

661-396-4235

800-433-0676 626-683-5880

Bakersfield

Pasadena

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San Francisco Honda

McCurley Integrity Honda

San Francisco

415-913-5125

Richland

Dept. Hours: M-F 8-5:30 bestchoice@barberhonda.com

Dept. Hours: M-F 8-6; Sat 8-4

Dept. Hours: M-F 8-5 partsws@sfhonda.com

Capitol Honda

Honda of the Desert

Scott Robinson Honda

Dept. Hours: M-F 8-5:30; Sat 8-4 hondaparts@mccurley.net

408-445-4412

760-770-0828

310-371-8320

South Tacoma Honda 888-497-2410 253-474-7541

San Jose

Torrance

Cathedral City

Dept. Hours: Mon-Sat 7:30-6; Sun 8-5 sbettencourt@penskeautomotive.com

Dept. Hours: M-F 7-6; Sat 7-5 mpartridge@honda111.com

Dept. Hours: M-F 7-6:30; Sat 7-5 mluna@scottrobinson.com

Concord Honda

Keyes Honda

Selma Honda

818-756-6549

800-717-3562 559-891-5111

Concord

925-825-8016

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Larry Hopkins Honda

800-GO GALPIN 818-778-2005

408-720-0221 408-736-2608

Mission Hills

Sunnyvale

Dept. Hours: M-F 7:30-6; Sat 8-2 mteeman@galpin.com

Dept. Hours: M-Sat 8-5 parts1@hopkinsdirect.com

Honda of El Cajon

Metro Honda

El Cajon

619-440-5851

Dept. Hours: M-F 7-6; Sat 7-5 parts@hondaofelcajon.com

Honda of Hollywood Hollywood

800-371-3719 323-466-3205

Dept. Hours: M-F 8-6 parts@hondaofhollywood.com

Montclair

800-446-5697 909-625-8960

Dept. Hours: M-F 7:30-5:30; Sat 7:30-4 wholesaleparts@metrohonda.com

Tacoma

Selma

Van Nuys

Dept. Hours: M-F 8-6 kevin.valenzuela@concordhonda.com

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Dept. Hours: M-F 7:30-6; Sat 8-5 bgregory@southtacomahonda.com

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Larry H. Miller Honda Boise

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Hinshaw’s Honda Auburn

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Bakersfield Acura

Montclair

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Acura of Honolulu

Dept. Hours: M-F 8-6; Sat 8-5 mike.ohare@acuraoffremont.com

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Marin Acura

866-931-9086 808-942-4557

Pleasanton

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Corte Madera

800-77-Acura 415-927-5350

Dept. Hours: M-F 7-6; Sat 8-5 johnny@hinshaws.com

HAWAII

Bakersfield

661-381-2600

Fife

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Dept. Hours: M-F 8-5; Sat 8-4 Johara@lithia.com Tokuda@lithia.com RayleenGarcia@lithia.com

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 33

‘Going Green’ Can Be a Profitability Opportunity For Collision Repairers By Abby Andrews Autobody News

The latest installment of AirPro Diagnostics’ TechTalk 360 webinar series featured guest Gabriel Morley, AVP of DEKRA North America, and hosts Jordan Hendler and George Avery. The conversation delved into the impact of sustainability on daily auto body shop operations, environmentally-friendly initiatives and the shift towards a greener automotive world in general. From carbon neutrality to waste management, energy efficiency and the role of recycled parts, Morley explored various facets of sustainability and how they intersect with collision repair. “How does sustainability affect shops day to day, and what initiatives can they take to be on the leading edge?” Hendler said. “This is an opportunity to get in front of something you won’t have to catch up on later.” “Sustainability is a bucket of profitability shops can look into,” Morley said. “It’s not as scary and regulatory as it may seem. This is about doing good business, and staying on top of efficiency.” Morley went over environmental, societal and governance (ESG) components of sustainability. Environmental Components “We hear a lot about carbon neutrality,” Morley said. “States are trying to get to carbon-zero, moving away from ICE vehicles.” However, few shop owners have analyzed their own carbon footprint, in terms of things like materials used and equipment efficiency. Morley recommended keeping a closer eye on the use and potential waste of consumables like sandpaper and tape, and either upgrading equipment to newer, more efficient technology or keeping up on routine maintenance of what the shop already has. “It’s better for your bottom line because you save money on utilities and also get better production,” he said. Simple steps like switching to LED light bulbs and considering solar panels can save money and reduce environmental impact, Morley said, but every business owner needs to evaluate which strategies make sense for their individual situation. Morley also highlighted the potential environmental impact of incidents like EV thermal events. It can take 40,000 gallons of water to put out an EV battery fire, and anything on the shop floor, like oil, can be swept up into the runoff. He recommended keeping shop floors clean, as regulatory agencies like the EPA scrutinize such events, focusing

on their environmental implications and future prevention measures. The conversation shifted to recycled parts. Morley said he has spoken to insurer carriers for their perspective, and he expects to see a

tendency to repair parts when possible rather than replacing them, as a green initiative. The integrity of recycled parts remains a topic of discussion. He noted the importance of supply chain transparency and material integrity. “Yes it’s greener [to use a recycled part], but we also have to look at OEMs’ position on repairs,” Morley said. “There’s a strict chain of command so you know the integrity of that piece when it goes on a vehicle.” Despite these challenges, Morley sees opportunities for partnerships between OEMs and sophisticated recyclers. On a global level, several countries, particularly in Europe, have much more stringent regulations in place than in the U.S. Those regulations can drive advancements, Morley said, noting Nordic countries moved to ban sales of new ICE vehicles years ago, something the U.S. is working toward. However, he said, when applied too quickly or forcefully, regulations can squelch innovation. For instance, alternative fuels, like synthetic gas, could be used to run ICE vehicles, rather than banning the engines altogether. “We have to balance it out,” Morley said. “It’s easy to make advancements with regulations, but you also stifle innovation a little bit when you go too fast.” Societal Components There is a lot of conversation throughout the industry about the technician shortage, Morley said, and how to engage younger people and different demographics . Sustainability studies have shown

34 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

Governance Components Finally, governance is not just data privacy, Morley said, but whether or not “what you present on paper is the story you’re living.”

that when a repair shop has a defined career path for new hires, it is likely to outperform its profitability objectives by 21%, Morley said. On the flip side, the average three-month vacancy can cost a shop $107,000 to $160,000.

“Make sure your actions follow the mission statements and policies you put in place,” he said, noting those policies could be on anything from smoking to anti-harassment. “If you say you’re going to do something, make sure you’re doing it.” Conclusion: A Greener Road Ahead In conclusion, Morley encouraged repair shops to embrace sustainability as an opportunity rather than a regulatory burden. He emphasized that sustainability aligns with good business practices, contributes to efficiency, and can even boost profitability. As the automotive industry continues to evolve, embracing sustainability will be essential to stay ahead of the curve. He encouraged shop owners to seek guidance from a company like DEKRA, which does testing, inspection and certification for anyone involved in the automotive supply chain, including OEMs, parts suppliers and MSOs. View the complete presentation at airprodiagnostics.com/techtalk360/

The key is to not just find new employees, but keep them, by offering a workplace they enjoy, and help them develop in their careers. “Are we prepared to facilitate a good workplace where they want to stay and grow?” Morley said. “I think it pays off.”

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Minivans Don’t Make the Grade When It Comes To Rear-Seat Safety Popular with parents, minivans ought to boast the safest secondrow seating on the market. Instead, they’re lagging behind. None of the four minivans tested by the Insurance Institute for Highway Safety earned an acceptable or good rating in the updated moderate overlap front crash test, which now emphasizes back seat safety. The Chrysler Pacifica, Kia Carnival and Toyota Sienna are rated marginal, while the Honda Odyssey is rated poor. All but the Sienna also lack seat belt reminders for the secondrow seats, as IIHS highlighted in February. “Back seat safety is important for all vehicles, but it’s especially vital for those, like minivans, that customers are choosing specifically to transport their families,” said IIHS President David Harkey. “It’s disappointing that automakers haven’t acted faster to apply the best available technology to the second row in this vehicle class.” IIHS launched the updated moderate overlap front test last year after research showed that

in newer vehicles the risk of a fatal injury is now higher for belted occupants in the second row than for those in front. This is not because the second row has become less safe. Rather, the front seat has become safer because of improved airbags and advanced seat belts that are rarely available in back. Even with these developments, the back seat remains the safest place for children, who can be injured by an inflating front airbag, and the rating does not apply to children secured properly in child safety seats. In the updated test, a second dummy is positioned in the second row behind the driver. The driver dummy is the size of an average adult man. The rear dummy is the size of a small woman or 12-yearold child. IIHS researchers also developed new metrics that focus on the injuries most frequently seen in back seat passengers. For a vehicle to earn a good rating, there can’t be an excessive risk of injury to the head, neck, chest or thigh, as recorded by the secondrow dummy. The dummy should

remain correctly positioned during the crash without “submarining,” or sliding forward beneath the lap belt, which increases the risk of abdominal injuries. The head should also remain a safe distance from the front seatback and the rest of the vehicle interior, and the shoulder belt should remain on the shoulder, where it is most effective. A pressure sensor on the rear dummy’s torso is used to check the shoulder belt position during the crash. As in the original test, the structure of the occupant compartment must maintain adequate survival space for the driver, and measurements taken from the driver dummy shouldn’t show an excessive risk of injuries. All four minivans provide good protection in the front seat. But each is plagued by multiple issues when it comes to the second row. “The restraint systems in all four vehicles leave the secondrow occupant vulnerable to chest injuries, either because of excessive belt forces or poor belt positioning,” said Jessica Jermakian, IIHS vice president

of vehicle research. “That’s concerning, because those injuries can be life-threatening.” Of the four vehicles, only the marginal-rated Sienna is equipped with belt pretensioners and force limiters, technologies designed to reduce belt forces. However, the rear dummy submarined beneath the lap belt and the shoulder belt migrated off the shoulder toward the dummy’s neck during the test. In the two other marginal vehicles, the Carnival and Pacifica, the seat belt exerted too much force on the dummy’s chest. The side curtain airbag of the Pacifica also did not deploy during the test. The forces on the rear dummy’s neck were within reasonable limits in the Pacifica and Sienna but substantially higher in the Carnival, increasing the chances of a head or neck injury. In the poor-rated Odyssey, the forces on the head and neck were higher still, and the crash video demonstrated the rear seat belt allowed the dummy’s head to come too close to the front seatback, which also increases the risk of head injuries.

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WA Senator Moving Forward on Bill To Detect Price Gouging At Gas Pump By Brett Davis The Center Square

Washington State Sen. Joe Nguyen, D-White Center, thinks the state’s high gas prices are the result of oil companies gouging customers, not the state’s cap-and-trade law that went into effect at the beginning of the year. Washington’s cap-and-trade law, part of the Climate Commitment Act of 2021, involves polluters buying allowances at state-run auctions to offset their carbon emissions. The money raised—more than $1.4 billion so far—is meant to go to programs to fight climate change and improve the environment. Drivers in Washington currently pay the second-highest gas prices in the nation, an average of more than $5.13 a gallon, according to AAA. The national average cost of a gallon of gas, per AAA, is just under $3.80. Nguyen, who chairs the Senate Environment, Energy & Technology Committee, is the legislative lead in crafting anti-profiteering legislation for oil companies that could be introduced in the state Legislature next year. “The reason why gas prices are so high in Washington state is that there is only one pipeline from Alaska to Canada down through Oregon and California and Washington state,” the senator explained. “There’s only a handful of refineries. So they effectively have a monopoly in terms of fuel in Washington state and we end up being a cash cow.” The average profit per gallon of gas in Washington state is 20 times higher than the national average, Nguyen contended. That demands more scrutiny from the state, according to the senator, in the form of legislation he is working on that mirrors a new law in California, which also has a cap-and-trade program, that creates an independent division of the state to monitor the fuel market on a daily basis for any unethical or illegal behavior. California’s law is keeping oil

companies there honest, Nguyen said, and reducing volatility when it comes to the price at the pump. “So they knew that when somebody was watching, they couldn’t just randomly do things like shut down pipelines, for instance, say maintenance,” he said. That kind of thing—scheduling maintenance that affects British Petroleum’s Olympic Pipeline carrying fuel through the state, which can cause gas prices to go up—is a concern in Washington, according to Nguyen. “That’s what happened to us in Washington state,” Nguyen said. “We don’t actually know when they’re going to shut down a pipeline for maintenance and for some reason, it seems to correlate oftentimes with high-demand weekends like July Fourth or Labor Day weekend.” Nguyen laid out how a gas-price gouging bill might work. “And what ends up happening is that we’re going to request and get proprietary information that won’t necessarily be shared publicly, but it’s going to be reviewed by some sort of tribunal or organization or entity that can then sift to see if there’s nefarious behavior,” he said. The state Attorney General’s Office has a subdivision that does this kind of work, Nguyen noted, but it only has access to public information in that effort. He said the U.S. Constitution’s dormant commerce clause, which bars states from regulating interstate commerce, means Washington can’t regulate oil companies’ profit margins. Efforts to root out “nefarious behavior” could nevertheless be strengthened, according to the senator, under any new antiprofiteering legislation. “What you can do is see if there is, for instance, collusion, price gouging or things like that where there’s anticompetitive behavior,” Nguyen said. Others remain skeptical that California’s gas price-gouging law is a good model for Washington. “The working families of the Golden State are currently paying the highest gas prices in the entire country, so

anyone who feels the need to copy California’s abysmal energy policies needs a serious reality check,” Larry Behrens, communications director at energy advocacy organization Power The Future, emailed The Center Square. With an average price of $6.02 a gallon, California has the most expensive gas in the nation, according to AAA. Steven Greenhut, western region director at the R Street Institute think tank, was even more blunt in his criticism of California’s overall energy policy and its gas price-gouging law. “[Gov.] Newsom and Democrats in this state have been playing this game of trying to blame price gouging for our exceedingly high prices,” he said. “They’re pushing this idea that it’s corporate greed. It’s amazing how the refiners are less greedy in other parts of the country than they are in California.” Several other factors are responsible for the state’s high gas prices, Greenhut said. “It’s not hard to trace California’s high prices,” he continued, noting the state’s special blend of gas, which is formulated to reduce pollutants and makes it more difficult to import gas from other states, as well as high gas taxes and banning the sale of new

gas-powered cars by 2035. Washington, following California’s lead, also plans to ban the sale of new gas-powered cars by 2035. “So, if you are a refiner, you would probably not be investing in more capacity when the state is trying to put you out of business,” Greenhut said. “So that all reduces supply and we end up with prices well above the national average.” He has no confidence in the state’s gas price-gouging law or that any such law would work better in Washington. “And I don’t think commissions, new regulatory bodies and new reporting requirements, I don’t think in and of themselves … are going to do much one way or the other, but it’s yet another regulatory hurdle, another way that this state is signaling to refiners that they don’t want them here,” Greenhut concluded. Nguyen is confident a gas pricegouging bill will pass Washington’s Legislature next session and that it will be good for the people of the state. “We want to make sure as we’re doing this [decarbonizing] that we’re not going to be gouged by oil companies, and this is kind of that protection that consumers deserve that we should have in Washington state,” he said.

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The Collision Vision(aries): 6 Months Into Autobody News’ Podcast By Cole Strandberg Autobody News

In the realm of collision repair, the past six months have marked a compelling journey for The Collision Vision. As the host of Autobody News’ weekly podcast dedicated to the business side of the collision repair industry, I’ve had the distinct privilege of connecting with industry trailblazers who have cast a penetrating light on the road ahead. Join me as we reflect on the past, navigate the present and peer into the exciting future of the collision repair industry. A Decade of Remarkable Transformation Over the past decade, the collision repair landscape has undergone a dramatic evolution. From the surges of consolidation and the infusion of sci-fi-worthy vehicle technologies to the escalated significance of OEM certifications and the persistent challenge of recruiting skilled technicians, our industry has witnessed a remarkable evolution. How has your business performed throughout this period of evolution? And how are you feeling about the future?

Navigating the Persistent Talent Shortage A recurring theme throughout The Collision Vision has been the industrywide talent shortage—a challenge that transcends the boundaries of single shops, regional and national MSOs, and even vendors in the collision space. While this issue may intensify before it gets better, industry thought leaders have presented some seemingly attainable solutions. Mike Anderson, a revered figure in the industry and a three-time guest on The Collision Vision, has stood at the forefront of addressing the technician shortage. Mike’s perspective is clear: as a shop owner, you have the power to enact change at the micro level. Need technicians? Consider expanding your talent pool. Struggling to find skilled workers? Be prepared to offer competitive compensation. If your pay scale falls behind local businesses, much less global business powers, attracting top talent will remain a challenge. Dave Luehr, another industry thought leader, echoes this sentiment, emphasizing personal responsibility in overcoming the technician shortage. How can you take action and make the rubber meet the road? Follow

the example of Thomas Goforth at Absolute Collision in North Carolina, who proactively engages with local trade schools, organizing events and supporting the establishment of new educational institutions. While powerful players within the industry are diligently working on this issue on a broader scale, the immediate responsibility falls on individual businesses. Charting the Course for the Bright Future Some of the most exhilarating conversations we’ve had on The Collision Vision have revolved around the future of collision repair. Electric vehicle collision leaders like Kelly Logan and Jake Rodenroth, who lead collision repair programs at Rivian and Lucid, respectively, have shared their perspectives on what lies ahead. The outlook is undeniably bright. Success in the future of collision repair may not come easily, but for those willing to invest in training, equipment and scaling their operations, prosperity awaits. For those with limited resources or a shorter time horizon to attain that return on investment, there remains good news: the market for consolidation and mergers and acquisitions remains robust for body

shops. Private equity firms actively seek platform investments, while existing consolidators, both national and regional, are in pursuit of add-on acquisitions, each with its own unique flavor. For those reasons, another industry icon, Frank Terlep, and I share a favorite saying in the industry: There has never been a better time to be a business owner in the collision repair industry. What Lies Ahead for The Collision Vision? The Collision Vision is more than just a podcast; it’s an invaluable resource for the collision repair industry. Alongside our distinguished guests, we’ve delved into a wide range of topics, from marketing and growth strategies and new-store development to the intricacies of OEM certifications and financial planning. These insightful conversations are readily available for your perusal at www.autobodynews. com/podcasts.html. The journey continues, and I’m excited to see what the future holds for the collision repair industry and The Collision Vision. As we celebrate our first six months, the road ahead promises to be as enlightening and transformative as ever.

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CAPA Integrates Tracker Into Mobile App

Traffic Fatalities Continued To Decline in First Half of Year Fatalities on U.S. roadways appear to continue to be on the decline for the fifth straight quarter, according to early estimates of traffic fatalities for the first half of 2023, released Sept. 28 by the National Highway Traffic Safety Administration (NHTSA). NHTSA estimated 19,515 people died in motor vehicle traffic crashes, representing a decrease of about 3.3% as compared to 20,190 fatalities in the first half of 2022. Fatalities declined in both the first and second quarters of 2023. Continuing the trend identified in the first quarter estimates released in June, preliminary data shows vehicle miles traveled in the first half of 2023 increased by about 35.1 billion miles, roughly 2.3% higher than the same time last year. More miles driven combined with fewer traffic deaths resulted in a fatality rate of 1.24 fatalities per 100 million VMT, down from the projected rate of 1.31 fatalities per 100 million VMT in the first half of 2023.

“After spiking during the pandemic, traffic deaths are continuing to slowly come down—but we still have a long way to go,” U.S. Transportation Secretary Pete Buttigieg said. “Safety has always been the core mission of this department, and thanks to President Biden, we are delivering unprecedented resources to communities across the country to make their streets safer.”

“While we are encouraged to see traffic fatalities continue to decline from the height of the pandemic, there’s still significantly more work to be done,” NHTSA Acting Administrator Ann Carlson said. “NHTSA is addressing traffic safety in many ways,

including new rulemakings for lifesaving vehicle technologies and increased Bipartisan Infrastructure Law funding for state highway safety offices. We will continue to work with our safety partners to meet the collective goal of zero fatalities.” NHTSA estimates a decrease in fatalities in 29 states, while 21 states, Puerto Rico and Washington, D.C., are projected to have experienced increases. NHTSA has announced several safety initiatives aimed at reducing traffic deaths, including proposed rulemakings to require automatic e m e r g e n c y braking systems in passenger cars, light trucks and heavy vehicles. The agency has also published a proposed rule for seat belt warning systems and issued an order to collect more data about crashes that occur when automated driving systems and ADAS are engaged.

The Certified Automotive Parts Association (CAPA) announced the expansion of its CAPA mobile app, integrating the CAPA Tracker. Users will now be able to enter part information into the CAPA Tracker seamlessly through the CAPA app, without interrupting a repair to input information via computer into the CAPA website. The CAPA Tracker closes an information gap and provides visibility throughout the supply and repair chain from manufacturer to distributor to repairer to consumer. The app provides two options to input part information: users can type in the unique CAPA Seal number into the CAPA Tracker or simply scan the CAPA Quality Seal on the part using the phone’s camera, which will automatically populate part information into the form. The updated CAPA app is now live and can be downloaded for free from Apple’s App Store and the Google Play store.

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New-Vehicle Prices Fell Further in September, Led by Price Cuts At Tesla The average price Americans paid for a new vehicle in September 2023 was down 3.4% from the start of the year, as higher inventory levels and increased incentives continued to put downward pressure on pricing. The average transaction price of a new vehicle in September was $47,899, down $360 from one year ago (0.7%), according to Kelley Blue Book, a Cox Automotive company. Prices decreased by $227 (0.5%) from August’s downwardly revised ATP of $48,126. “After new-vehicle prices peaked at nearly $50,000 at the start of 2023, we’re seeing average transaction prices dip below $48,000 for the first time in more than a year,” said Rebecca Rydzewski, research manager at Cox Automotive. “Dealers and automakers are feeling price pressure, and with auto loan rates at record highs and growing inventory levels, new-vehicle prices continue to ease. Assuming the UAW strike is short-lived, current inventory levels are healthy enough to prevent any significant impact on consumer prices.” With the UAW strike entering its fourth week and General Motors’ inventory levels far below Ford Motor Company and Stellantis, Detroit’s largest automaker slashed incentives on all four of its major brands in September. General Motors’ average incentive as a percentage of transaction price was 4.0%, down from 4.7% in August and below the industry average of 4.9%. Both Ford and Stellantis, which have inventory levels well above the industry average, saw average incentive packages increase month over month in September to 5.2% and 7.3%, respectively. GM and Stellantis posted higher ATPs month over month in September, while Ford ATPs declined less than 1%, aligned with the industry average.

Non-Luxury Vehicle Prices Increase Less Than 1% Year Over Year The average price paid for a new non-luxury vehicle in September was $44,626, an increase of 1% from one year ago. Compared to August, non-luxury prices were down $82. The average incentive spend in the non-luxury segment was 4.7% of ATP in September, up from 2.3% one year ago. Month over month, incentive spending was flat. Only three vehicle segments had average transaction prices below $30,000 in August—

compact cars, subcompact cars and subcompact SUVs. All three segments saw month-over-month price increases. August’s lowestpriced vehicles in the U.S. market were the Mitsubishi Mirage and Kia Rio—the final two vehicles still transacting under $20,000—and are expected to be discontinued in the coming years as the market shifts away from sedans.

Average Luxury Prices Down Year Over Year, Largest Decline in a Decade Luxury vehicle prices in September decreased by $873 compared to August. Luxury transaction prices were down 6.2% year over year to $62,342. Since the start of 2023, luxury prices have declined by almost 7%. Overall, the luxury segment continued to deliver strong results in September, holding an 18.5% share of the U.S. market. Luxury price declines in 2023 are primarily driven by aggressive price cuts at Tesla, the luxury market leader. Compared to September 2022, Tesla transaction prices are down 24.7%; Tesla Model 3 prices are down more than 26% year over year to $41,484, well below the average luxury car price. Tesla average transaction prices are now lower than Acura, Lexus, Infiniti and Volvo. Tesla’s price cuts have offset price gains by many luxury automakers. Audi, Mercedes-Benz and Porsche all booked year-over-year price increases in September, with Mercedes-Benz ATPs up more than 10%. Audi and Porsche posted a year-over-year increase of more than 8%. BMW, Cadillac, Infiniti, Land Rover and Lexus also posted price increases. Brands with year-over-year price declines in September included Buick, Jaguar and Volvo. Luxury vehicle incentives have significantly increased year over year, rising from an estimated 1.7% of ATP a year ago to 5.7% last month. Luxury vehicle sales in September were up 19% year over year, helping to push overall industry volume higher by more than 18%. During the same timeframe, non-luxury sales were higher by 17%.

Electric Vehicle Prices Continue to Decline EV prices continue to fall, led again by market leader Tesla. In September, the average price paid for an electric vehicle was $50,683, down from $52,212 in August and down from more than $65,000 one

40 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

year ago. Incentives for EVs in September were 9.8% of ATP, or $4,991.

“At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales.” — STEPHANIE VALDEZ-STREATY DIRECTOR OF INDUSTRY INSIGHTS AT COX AUTOMOTIVE

At the start of October, EV availability, as measured by days’ supply, was well above the industry average as product availability and EV production rapidly increases. EV and internal combustion engine (ICE) inventory started the year off at about 52 days’ supply. Since then, EV days’ supply dramatically increased while ICE remained consistent between 52 and 58 days. EV supply at the start of October was 97 days, down from the peak inventory of around 111 days during early July.

“EV sales continue to grow in the U.S., partly due to strong supply and more choice,” said Stephanie Valdez-Streaty, director of industry insights at Cox Automotive. “At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales.”

Auto Incentives Offered by Manufacturers Reach 24-Month High Incentives averaged $2,368 in September, the highest point in the last 24 months and at 4.9% of ATP. While September incentives were essentially flat month over month, they remain historically low. For comparison, Kelley Blue Book estimates incentives averaged 10% of ATP in September 2020 and 10.2% in September 2019. The high-end luxury car segment had the highest incentives in September at 10.6% of ATP, followed by electric vehicles at 9.8%, luxury cars at 7.4%, entry-level luxury cars at 7.1% and full-size pickup trucks at 6%. Vans, high-performance cars, and small and midsize pickup trucks had some of the lowest incentives in September.

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CCC, Google Enable Online Appointments CCC Intelligent Solutions Inc. has teamed up with Google to streamline the online appointment booking process for repair shops that use CCC® Engage. The collaboration introduces a user-friendly “Book Online” button added to Google Business Profiles, Search and Maps, helping participating repair shops stand out in search results and making it easier for consumers to schedule repair appointments. The new “Book Online” button is now live on the Google Business Profiles of repair shops with subscriptions to CCC Engage, a CCC ONE® solution that drives digital traffic to repair shops. The button seamlessly directs consumers to schedule appointments through Carwise, CCC’s online platform that helps consumers find local collision repairers. Carwise integrates with CCC Engage to provide real-time access to repairers’ calendars. The CCC ONE platform improves every stage and level of the collision repair cycle, including the consumer experience.

SCRS Announces Focus of OEM Summit Session II The Society of Collision Repair Specialists (SCRS) announced the topic of the second of three sessions in its OEM Collision Repair Technology Summit, taking place Nov. 2 in the Las Vegas Convention Center as part of the 2023 SEMA Show. Join the collision industry from 11 a.m.–12:30 p.m. for Session II: North American Automotive Material Outlook and Implications to Collision Repair. The session will be led by Abey Abraham, principal or automotive and materials, and Bertrand Rakoto, director of strategic intelligence, both with Ducker Carlisle. The Ducker Carlisle team will outline research on the expected metallic and nonmetallic material strategies that collision repair facilities will encounter. As the fleet sees an increased transition from ICE vehicles to EVs and other alternate fuels, there are dynamic changes in the material makeup of vehicles including more advanced grades of steel, various types

of aluminum, magnesium and composites that the collision repair industry will need to contend with. Following the presentation, Abraham and Rakoto will introduce Dan Black, senior manager of service engineeringcollision at Rivian, and Matthew Pitta, body repair technical manager at Lucid Motors, to discuss material selections in their models, and important details the industry will need to understand when repairing those vehicles. SCRS previously announced the first session, from 9–10:30 a.m.: Understanding OEM Insurance, featuring presentations from Andrew Rose, president of OnStar Insurance, Mike Slattery, head of insurance for Rivian, and Rob Spencer, president of Toyota Insurance and vice president of Toyota Motor Credit Corporation (TMCC). The presenters will provide a deep dive into the emerging world of OEM insurance programs, insurance products

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With More Choices, Brand Loyalty Slips Among NewVehicle Owners

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As new-vehicle inventory and sales rebound to pre-pandemic levels in the U.S., more buyers are choosing to forego loyalty to a specific brand, according to the J.D. Power 2023 U.S. Automotive Brand Loyalty Study. “As vehicle availability increased and more choices hit the market for consumers, loyalty among brands as a whole saw a decline this year,” said Tyson Jominy, vice president of data & analytics at J.D. Power, in a news release. “Additionally, owners were tied down to their vehicles for longer than normal due to ongoing supply chain disruptions, and as a result were more likely to experience problems with their vehicles. “Now that some of those issues have eased, consumers are looking to get behind the wheel of something different and are no longer remaining as loyal to a brand. However, many of the highest-ranking brands

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perform similarly year after year. When vehicles deliver an experience that meets owner expectations, such as by offering superb build quality, owners are likely to reward brands with their loyalty.”

Highest-Ranking Brands Porsche ranks highest among premium brand car owners for a second consecutive year, with a 56.8% loyalty rate. MercedesBenz (50.5%) ranks second. Volvo ranks highest among premium brand SUV owners with a 56.5% loyalty rate. BMW (56.1%) ranks second. Toyota ranks highest among mass market brand car owners for a second consecutive year, with a 60.0% loyalty rate. Honda (55.0%) ranks second. Subaru ranks highest among mass market brand SUV owners with a 61.1% loyalty rate. Toyota (60.5%) ranks second.

Ford ranks highest among truck owners for a second consecutive year, with a 64.6% loyalty rate, the highest loyalty rate in the study. Toyota (60.4%) ranks second. The study, now in its fifth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. Only sales at new-vehicle franchised dealers qualify. The study includes brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck. The 2023 study calculations are based on transaction data from September 2022 through August 2023 and include all model years traded in.

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Widespread Autonomous Vehicle Adoption At Least a Decade Away A world of self-driving vehicles and mobility-on-demand is likely to exist eventually, but for the next decade, widespread implementation of autonomous technology will not be realized, according to a new forecast from S&P Global Mobility, released Sept. 25. The report reflects findings from robust model-level forecasting that autonomous vehicle expectations have not been fulfilled and still face more headwinds—affording significant opportunity and scale to automated driving implementations in the interim. For the next decade, autonomous tech will be limited to two specific areas: geofenced robotaxis operated by fleets in specific areas, and handsoff systems with various safeguards in personal vehicles that will still require some form of driver engagement. The latest forecast from S&P Global Mobility said Level 5 Autonomy—a vehicle that can go anywhere and do everything a human driver can”—will not be publicly available before 2035, “and probably for some time after that,” said Jeremy Carlson, associate director for the autonomy practice at S&P Global Mobility. “But the outlook for more targeted implementations of the same fundamental technologies, especially in Level 2+ and Level 3 but also for some forms of Level 4, is more positive and will certainly happen on a much shorter timeline.” This latest outlook from S&P Global Mobility reflects the headwinds and slower pace of development that both the automotive and tech industries have demonstrated over the past several years. It paints a stark contrast to the optimism of just five years ago, when the world was swept up in the promise and excitement of a future of self-driving vehicles in Levels 4 and 5. Automated—rather than autonomous —driving continues to be the focus of industry development. Today’s broad deployments of Level 2+ and Level 3 systems by many automakers in multiple regions will reach at least 31% of new vehicle sales globally by 2035, according to the forecast. L2+ and L3 allow the driver to be hands-off while supervising, or to disengage entirely in specific driving scenarios, such as in Super Cruise by General Motors and Drive Pilot by Mercedes-Benz, respectively. “There is immense opportunity for automated driving systems in L2+ and L3, and they are benefiting from the standardization of basic safety features which provide a foundation of in-vehicle architecture, sensing and compute,” Carlson said. “Their functionality also complements driving today rather than fully replacing

the driver, making consumer adoption less of a challenge. The next several years of wider deployment across brands and vehicle platforms will be a boon for automakers selling these optional features as well as suppliers who continue to build scale and a strong foundation for the future.” L4 Technology Slow to Develop in Personal Vehicles The S&P Global Mobility forecast predicts fewer than 6% of light vehicles sold in 2035 will have any Level 4 functionality, as described by the SAE J3016 classification. Early L4 implementations in personally-owned vehicles offer advanced parking functions, often with the support of infrastructure. But many technology providers remain focused on the longterm potential of scaling autonomous vehicles in fleets supporting MaaS business models. There are positive examples of autonomous vehicles performing as well as humans in today’s pilot programs in places like San Francisco, CA, and Phoenix, AZ, in the U.S., and Beijing, Shanghai and Guangzhou in Mainland China. But these same vehicles can still be confounded by complex traffic scenarios the next minute or the next day, giving regulators and consumers alike reason to be cautious. Mobility-as-a-Service (MaaS) and robotaxis are nonetheless expected to lead the transition to an autonomous vehicle future, even with the relatively cautious growth ahead. There are growing numbers of small-scale deployments in certain cities around the world. But S&P Global Mobility forecasters do not expect that to become widespread and broadly accessible within the next decade. MaaS-equipped vehicles and robotaxi applications are expected to represent less than 800,000 vehicles sold globally in 2035. Robotaxis will be carefully geofenced for the foreseeable future—offering revenue service only within specific areas where they have already been extensively tested, Carlson predicted. But their high rate of use can be nonetheless effective at bringing new mobility options to some consumers and new revenue streams to automakers and mobility providers. Owen Chen, senior principal analyst from S&P Global Mobility, said robotaxi development and commercialization is a complex and multi-stage process which can be summarized in three stages. First, technical feasibility demonstrations confirm robotaxis can operate safely and reliably in the targeted conditions. Second, the long process of

44 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

technology optimization, integration and refining vehicle design eventually brings scale to manufacturing and deployment. Third is the efficient expansion to many new locations and operating conditions, with profit on top of revenue from meaningful adoption by consumers. “In 2023, many are working through stage 1 while several are seeking scale in stage 2, led by Mainland China and the U.S.,” Chen said. “But the opportunity to restructure personal and shared mobility exists.” In August, the California Public Utility Commission approved an expansion of operations in San Francisco for Waymo and Cruise. Mainland Chinese regulators are also enabling providers like Baidu Apollo, Pony AI, WeRide and more to test or operate paid services in parts of many major Chinese cities. Europe is also actively developing regulations to help bring some uniformity to such vehicles and services across the region. While the U.S. captured an early lead in both development and deployment of L4 MaaS, Mainland China is expected to contribute the greatest volumes long-term, followed by the U.S. and Europe in that order, according to S&P Global Mobility. Challenges nonetheless remain for

successful and widespread deployment of L4 MaaS. In addition to a fragmented regulatory landscape and relatively low public trust that may hamper consumer acceptance and adoption, the cost of technology and the time needed for robust development and validation of hardware and software have quashed the optimism that defined much of the last decade. Reduced complexity in L2+ and L3 features face less risk or uncertainty for each of these factors, hence the more positive outlook for those technologies in the short term. This optimism is further boosted as some regulators are also mandating certain basic safety assistance features that will generate even wider exposure for selective automation. Automakers, suppliers, technology companies and mobility providers alike, however, remain committed to a future of safe and equitable autonomous mobility, even if it takes more time to get there. “There’s plenty of opportunity and growth ahead,” says Carlson. “Significant volumes measured in the hundreds of thousands per year are quite likely to come before 2030—but a future of shared mobility everywhere all the time will remain an aspiration for the industry.”

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 45

CIF Announces Repeat Annual Donors

U.S. Auto Insurer Claim Payouts Soar Due To Increasing Inflation U.S. personal and commercial auto insurer liability claim payouts combined were $96 billion to $105 billion higher between 2013 and 2022 because of social and economic inflation, according to a news release from the Insurance Information Institute (Triple-I). “For personal auto liability insurance, increasing inflation drove loss and DCC (defense containment costs) higher by $61 billion,” according to Triple-I’s study, Impact of Increasing Inflation on Personal and Commercial Auto Liability Insurance. “For the same period (2013-2022), increasing inflation drove commercial auto liability loss and DCC higher by $35 billion to $44 billion.” Liability insurance covers what the policyholder is legally obligated to pay because of bodily injury or property damage. Every state except New Hampshire requires its drivers to carry a personal auto insurance policy, with mandatory minimum amounts of liability coverage, to operate a vehicle. Commercial auto insurance liability policies are commonly bought by small businesses and corporations to cover trucks and other vehicles used

for commercial purposes, such as limousines and taxis. The study was researched and written by Jim Lynch, FCAS, MAAA, Triple-I’s former chief actuary; Dave Moore, FCAS, MAAA, president, Moore Actuarial Consulting LLC; and Dale Porfilio, FCAS, MAAA, Triple-I’s chief insurance officer. The research methodology compares the latest loss development patterns to a baseline assumption without social inflation and with stable inflation rates. Economic inflation is measured in the study as the Consumer Price Index (CPI), a U.S. Bureau of Labor Statistics benchmark, whereas social inflation indicates how insurer claim payouts exceed the CPI. “The business of personal auto liability insurance is also many times larger than commercial auto. Personal auto liability had $152.6 billion in net earned premiums in 2022, four times as much as commercial auto liability,” the study said. Yet personal auto policyholders typically have $100,000 or less in liability coverage, while a typical commercial policyholder has a coverage limit of $1 million, the study explained.

Supported by detailed analyses of claims payouts dating back years, the study concluded that, for personal auto liability insurers: • •

•

The Collision Industry Foundation (CIF) is delighted asTech and Enterprise have committed again to the CIF Annual Donor Program, their third and consecutive donations at the Urgent Care (second highest) tier, respectively. Introduced in 2021, the Annual Donor Program was designed to bring needed recurring resources to the foundation, so it can deliver on its mission to “Answer the Call” when those in the industry have been impacted by catastrophic events such as wildfires, hurricanes, flooding or COVID. For more than two decades through the generous support of corporations and individuals, CIF has been able to assist hundreds of collision repair professionals in need after disaster. CIF is grateful for asTech’s and Enterprise’s continued support of the Annual Donor Program, which will enable CIF to continue its work for disaster relief assistance.

Losses have been growing faster than premiums in recent years Since 2020, standardized losses rose 15% while standardized premium fell 13% Severity, the size of losses, increased dramatically after 2019

The study concluded that commercial auto liability insurers saw: • Losses grow faster than the overall economy • Social inflation as a primary influence on these losses prior to 2021 • The average size of loss—claim severity—increase dramatically since 2020 “For both personal and commercial auto liability lines, social inflation was the main source of increasing inflation before 2021. For 2021 and later, increasing inflation came from a combination of economic inflation and social inflation,” the study said.

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Federal Rebates on ‘Clean’ Vehicles To Be Given At Purchase in 2024 Beginning Jan. 1 2024, people who buy qualifying new and used “clean” vehicles will be able to effectively receive federal rebates when they buy it, rather than waiting for a rebate on the following year’s tax return. The U.S. Department of the Treasury released guidance Oct. 6 on how customers will be able to transfer their Inflation Reduction Act (IRA) clean vehicle credits—up to $7,500 for a new vehicle and up to $4,000 for used—to the dealership, which will then credit it to the purchase price. Researchers have found consumers overwhelmingly prefer an immediate rebate, rather than a tax credit. “President Biden’s Investing in America agenda is focused on lowering transportation costs for consumers and giving American car companies the tools to lead the market,” said Laurel

Blatchford, chief implementation officer for the IRA. “For the first time, the Inflation Reduction Act allows consumers to reduce the up-front cost of a clean vehicle, expanding consumer choices and helping car dealers expand their businesses. The IRS has focused on streamlining this process for car dealers as part of its commitment to improving service and helping taxpayers claim the credits they are eligible for.” Later in October, dealers will be able to register via IRS Energy Credits Online, a new website. In January, they will use the website to submit clean vehicle sales information to receive payment for customers’ transferred credits. Dealers must register with Energy Credits Online for customers to be eligible to transfer their credits. Customers must meet income requirements to be eligible to transfer the credit.

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PPG To Invest $2 Million To Train Workers PPG and the PPG Foundation announced a commitment to invest $2 million through 2025 to support workforce development initiatives that provide training and opportunities for future skilled workers in manufacturing and coatings application. The commitment aims to introduce students to the diverse and high-tech career paths within modern industry and provide them with educational opportunities to pursue fields such as advanced manufacturing, automotive collision repair, automotive refinishing and painting. “We understand the importance of providing students with a hands-on, practical education that arms them with the advanced skills needed for career placements in technical and STEM- related fields,” said Malesia Dunn, executive director, PPG Foundation and corporate global social responsibility. Through existing and new partnerships with local technical schools, community colleges and organizations, PPG and the PPG Foundation will support preparation and training for specialized industry certifications and careers.

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ASE Education Foundation Board Chair Releases Message Trey Michael, senior director of career and technical education for the North Carolina Department of Public Instruction and chair of the ASE Education Foundation Board of Directors, released the following message to schools, educators, students and employers as the 2023-24 academic year begins. It is with great pride that I serve as chair of the ASE Education Foundation for 2023. As an individual dedicated to education, I am fortunate to have insight into the essential efforts conducted by the foundation to enhance the connections among schools, educators, students and employers. As we welcome students back for another school year, it is worth pausing to recognize the value that the foundation provides. For 40 years, the ASE Education Foundation has been focused on creating a pipeline of well-prepared entry level technicians from high school and college programs across the country through its network

of ASE accredited automotive, collision and medium/heavy truck programs. These programs are critically important to the industry as a solution to the technician shortage. The service industry continues to drive and shape the accreditation standards. ASE accredited programs have demonstrated that they have the facilities, tools, equipment, curriculum and qualified instructors to meet these industry-developed national standards. Students benefit by receiving a thorough introduction to service and repair, and employers benefit by having a steady supply of skilled new talent. This collaboration works best when schools and businesses work together at the local level to support each other. The ASE Education Foundation has a network of field managers across the country that actively help connect schools and employers to build these partnerships.

Many states have adopted our industry recognized credentials for career and technical education (CTE) students which includes ASE entry-level certifications. These certifications confirm a student’s technical knowledge but not experience. That is where businesses come in, giving students work-based learning opportunities and much needed experience that reinforces classroom learning. For employers that aren’t sure how to get started working with their local schools, the ASE Adopt-A-School Program is a valuable tool. This online resource helps bridge the gap between local businesses and schools, offering specific steps that employers can take to get involved. The Adopt-ASchool program also provides information on implementing job shadowing and structured work-based learning programs for students. To learn more, visit ASEeducationFoundation.org/ AdoptASchool or contact an

ASE Education Foundation field manager who can help you build these connections. Lastly, the 2023 ASE Instructor Training Conference was held in Concord, NC, recently with a tremendous turnout. I would like to thank all who participated. More than 300 instructors attended the conference, which included 100 technical update training sessions from 60 different industry partners. Presenters covered topics of great interest such as ADAS systems and calibration, electric vehicles and high voltage systems, and strategies for effective teaching. The ASE Education Foundation continues to be the leader in bringing the automotive service industry and education together to help students start rewarding careers. On behalf of the ASE Education Foundation Board of Directors, I extend our gratitude for your continued hard work and support, and we wish you all the best this school year.

Political Rivals Biden, Trump Enter Into UAW Strike Discussion By Andrew Hensel The Center Square

The strike continues for United Auto Workers union members as President Joe Biden and former President Donald Trump weigh in. The strike has reached 30 General Motor plants scattered across the nation, including two Illinois plants in Naperville and Bolingbrook. So far, nearly 19,000 workers have joined the strike. The strike is against the three major auto companies: Ford, Stellantis and General Motors. The UAW initially sought wage increases of as much as 46% over four years, cost-of-living adjustments, pensions and retiree health care for all workers and a 32-hour work week paid as 40 hours, including the 46% pay hike. On Sept. 26 in Michigan, Biden spoke with union leaders, becoming the first sitting president to join striking workers, and offered his support. “You gave up a lot when these companies were in trouble. Now they’re doing incredibly well. And

guess what? You should be doing incredibly well, too,” Biden said. The Biden visit comes one day before Trump travels to Michigan to meet with workers. “With Biden, it doesn’t matter what hourly wages they get, in three years there will be no autoworker jobs as they will all come out of China and other countries,” Trump said in a statement. Biden’s Inflation Reduction Act adds and expands tax credits for purchases of new and used electric vehicles for American drivers. Trump said Biden does not care what these workers make because he does not view them as a part of his political future. “Crooked Joe should be ashamed to show his face before these hardworking Americans he is stabbing in the back,” Trump said. Mark Mix, president of the National Right to Work Committee, spoke about the relationship between United Auto Workers Union President Shawn Fain and Democratic leaders. Mix said Fain will have a difficult time

48 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

getting his workers to support Biden. “He’s got to come out of this with a union that will continue to support Democrat political candidates who are literally driving United Auto Worker members out of their jobs by a cram down of electric vehicles,” Mix told The Center Square.

The UAW posted this photo to its Facebook page, showing President Joe Biden, right, and UAW President Shawn Fain, left, with UAW members Sept. 26

Mix said the Biden visit shows the importance of having these auto workers on his side come election time.

“He’s got to have the United Auto Workers union and the rest of big labor, and I mean the union officials, not the rank and file workers, on his team as he heads into 2024,” Mix said. Trump’s visit is planned for Sept. 27, but he released a statement following Biden’s Michigan trip. “Joe Biden’s draconian and indefensible Electric Vehicle mandate will annihilate the U.S. auto industry and cost countless thousands of autoworkers their jobs. The only thing Biden could say today that would help the striking autoworkers is to announce the immediate termination of his ridiculous mandate,” Trump said. “Anything else is just a feeble and insulting attempt to distract American labor from this vicious Biden betrayal.” The UAW contract expired Sept. 14. The big three manufacturers make up 50% of all vehicles manufactured in the U.S. So far, Ohio, Michigan, Missouri and Illinois have workers who have joined the strike.

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Honda’s First All-Electric SUV Set To Debut Early 2024 The 2024 Honda Prologue, the brand’s first all-electric SUV, will open pre-sale activities later this year and make its first deliveries in early 2024, Honda said in a news release. The Prologue will be available nationwide with prices expected to start in the upper $40,000s, before government incentives or tax credits. The Prologue is a “spacious, adventure-ready midsize SUV,” according to Honda, with an anticipated EPA range rating of 300 miles and DC fast charging capability. “The arrival of the all-new Honda Prologue is a pivotal moment for the brand as Honda begins the transition to our zeroemissions future,” said Lance Woelfer, assistant vice president of Honda National Auto Sales, American Honda Motor Co., Inc. “Prologue is aptly named as our first volume Honda EV, a stylish, sporty and spacious SUV that will take us toward our vision of 100% zero emissions vehicle sales by 2040.” Honda said the Prologue will

be built on a state-of-the-art EV platform and multi-link front and rear suspensions, and will be available in both single-motor (front-wheel-drive) and dual-motor (all-wheel-drive) configurations with three trim levels—EX, Touring and Elite.

Standard features will include the latest digital services technology and features with Google built-in, and wireless Apple CarPlay and Android Auto™ compatibility. Targeting IIHS Top Safety Pick+ and NHTSA 5-star ratings, the Prologue will come standard with the Honda Sensing® suite of safety and driver-

assistive technologies, including Honda’s first applications of Rear Cross Traffic Braking, Blind Zone Steering Assist and Rear Pedestrian Alert. Customers interested in the new Prologue can find more information and sign up for updates at automobiles.honda. com/future-cars/prologue. Honda also announced it reached agreements with EVgo and Electrify America, plus roaming network partners, to give its EV drivers access to more of the largest charging networks in North America. These agreements are in addition to the recent announcement that Honda will adopt the NACS charging standard to gain access to Tesla’s Supercharger network, and that Honda established a joint venture with six other automakers to create a high powered charging network. Honda and Acura EV customers will be able to use the majority of public DC fast chargers starting in 2024 and can anticipate having around 100,000 DC charge points available to them by 2030.

MICHAEL HOHL Motor Company

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Owners of 3.3M Kia, Hyundai Vehicles Told To Park Outside Due To Fire Risk Hyundai Motor America and Kia America have issued “park outside” recalls for more than 3.3 million vehicles due to the risk of fire, the National Highway Traffic Safety Administration announced Sept. 27. The vehicles’ anti-lock brake system module could leak brake fluid internally and cause an electrical short. An electrical short could result in significant overcurrent in the ABS module, increasing the risk of an engine compartment fire while driving or parked. Hyundai plans to notify owners to bring their vehicles to the nearest dealership to replace the ABS module fuse. Kia is still working on a remedy. Until these recalled vehicles have been repaired, the manufacturers say the safest place to park them is outside and away from homes and other structures. Fires can occur whether the vehicle is parked and turned off or while driving. The recall includes about 1.64 million select Hyundai and Genesis vehicles: 20122015 Accent, 2012-2015 Azera, 2011-2015 Elantra, 2013-2015 Elantra Coupe, 2014-2015 Equus, 2011-2015 Genesis Coupe, 2013-

2015 Santa Fe, 2013 Santa Fe Sport, 2011-2015 Sonata HEV, 2010-2013 Tucson, 2015 Tucson Fuel Cell, 2012-2015 Veloster and 2010-2012 Veracruz. About 1.73 million select Kia vehicles are also affected: 20142016 Cadenza, 2011-2013 Forte/ Forte Koup, 2015-2017 K900, 20102015 Optima, 2011-2013 Optima Hybrid, 2011-2017 Rio, 2010 Rondo, 2011-2014 Sorento, 2011-2013 Soul and 2010-2013 Sportage. To date, Hyundai and Kia do not know of any crashes, injuries or fatalities associated with this defect. Hyundai said there have been 21 related vehicle fires in the U.S. as well as 22 thermal incidents, including visible smoke, burning and melting. Kia knows of one engine compartment fire, three fires in the unit, and six instances of melting components. Vehicle owners can visit NHTSA. gov/recalls and enter their 17-digit vehicle identification number to see if their vehicle is under recall. If it is, vehicle owners should call their nearest dealership immediately to schedule a free repair when a repair is available.

Mitchell Wins Award For Appraisal Review Solution Mitchell, an Enlyte company, received a 2023 Stratus Award for Cloud Computing from Business Intelligence Group, for its recent innovation, Mitchell Intelligent Review, in the Software as a Service (SaaS) product category. It combines cloud computing, Mitchell-authored vehicle data and the company’s machine-learning and computer-vision models to scan photos of collision damage and automatically evaluate the labor operations entered on the estimate. The artificial intelligence (AI) then flags problematic estimates that require a closer look by a trained appraiser. Automating this traditionally manual, time-consuming and resource-intensive task is intended to help carriers increase estimate accuracy, ensure quality and pinpoint workflows or areas of the business in need of improvement. It also gives insurers the ability to review every estimate written and then assists them in identifying the specific appraisals they should focus on to accelerate settlement times for policyholders.

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 51

Auto Parts Suppliers Brace For Effects of UAW Strike By Autobody News Staff

News 5 Cleveland he is “bracing for the next hit” as more plants like As the United Auto Workers’ strike Stellantis’ parts distribution center against the Detroit Three stretches in Streetsboro, OH, go on strike. into its second week, auto parts Juscelino Colares, a business suppliers are being forced to law professor at Case Western respond as demand wanes at new Reserve University, told the news vehicle production plants—but the outlet dealerships and repair shops effects are also trickling down to should stock up on parts, and collision repair shops. vehicle owners should get needed repairs done now before shortages start to materialize. Tim O’Day, president and CEO of Boyd Group Services Inc., on Oct. 3 commented on the potential impact of the strike. “To date, the strike has not impacted our Members of UAW Local 2177 in Langhorne, PA, participate in the strike, in these photos posted Sept. 27 ability to source parts to the UAW International Union Facebook page required to complete collision repairs; Auto body repair shops still however, should the strike continue dealing with lingering supply chain for an extended period of time, it issues caused by the pandemic is possible that parts supply from in 2020 might see the situation General Motors, Stellantis and Ford exacerbated by a prolonged strike. could be disrupted in a way that In Cleveland, OH, William could have a material impact on our Worley, owner of Piney’s Auto future results,” O’Day said. Repair and Customer Service, told “Leading up to this, many of

our supplier partners increased their inventory levels to mitigate disruptions to supply. In the event of an extended strike, based on information available to date, a number of actions could be taken to reduce the impact of the supply chain disruption so that some repairs for the impacted vehicles could continue; however, many repairs could be suspended until parts become available,” O’Day added. In Michigan, WXYZ News reported some shop owners are using third-party parts suppliers and junk yards to fill in the gaps when OEM parts aren’t available. Dave Keene, manager of Kesho Collision in Warren, MI, told the news station his shop was “in a relatively good place for parts” as of Sept. 25, but if the strike continues for a few weeks, customers might have to wait a lot longer for a repair. “That car’s just gonna sit until those parts are available. That could be months,” Keene said. In Cincinnati, OH, Charlie Smith, a technician at Smith Muffler, told WLWT5 News the shop, owned by his father, sees the strike as a

Rivian R1T Fender Bender Fixed For Fraction of $41K Repair Estimate By Iulian Dnistran InsideEVs

The Rivian R1T is different from the majority of internal combustion pickups, not only because it has an all-electric powertrain but also because it has a hybrid construction that mates a unibody shell to a skateboard platform similar to a traditional ladder frame chassis. This has its benefits: more load-sharing points compared to a typical frame-based pickup, as well as the cool Gear Tunnel that offers a pretty large lockable storage space between the rear seats and the bed. However, this approach also has its downsides, the biggest of which is the high level of work involved in fixing the truck after it’s been in an accident. Because the bed is fused to the body, rear-end repairs usually mean the whole bedside has to be cut off and replaced with a new piece of sheet metal. We’ve reported on several instances where R1T owners were quoted more than $30,000

for repairs to the body after being involved in seemingly minor fender benders, and this latest one is no different. After being hit from behind, an R1T owner from North Carolina was quoted $41,000 by a local body shop to get his truck back in tip-top condition, which ultimately led his insurance company to say “Nope, we’ll total the vehicle if that happens.” (They didn’t actually say this, but you get the idea.) So the owner did a bit of research and came across Matt Boyette, who runs All Out Paintless Dent Removal in Jacksonville, FL, and decided to ship his EV 500 miles south to try and get the damaged rear end fixed. I got in touch with Matt through his Instagram account (@thedentslayer) to find out more about the repair that has gone viral online, amassing over 8 million views on YouTube. Matt worked on the truck for two days, during which he put to good use all the techniques learned in the past 25 years doing

52 NOVEMBER 2023 AUTOBODY NEWS / autobodynews.com

hail damage repairs and other types of paintless dent removal jobs across the U.S., Canada and Australia. The result is close to perfect, and you’d be hard-pressed to notice any defect if you’re not looking for it: a tiny dent and two dots that will need some paint touch-up. As for the price, Matt said a repair like this usually costs between $3,000 and $7,000, so between 7% and 17% of the original quote. I asked him if he expects to see more Rivians coming his way. “I’m definitely expecting to see more Rivians. Since the video went viral, which is now at almost 8 million views, I’ve had numerous people reach out to me from all over the country in need of similar repairs,” he said. Since posting the original video with the green R1T, Matt posted two more repair clips, one with a gray R1T that had a similar dent as the green one, and one with a black R1T that had a minor dent in the tailgate, which landed the owner a $13,000 repair estimate from a different body shop.

possible boon. “We weren’t getting nervous because if automakers are going on strike, alright, people aren’t going to want to buy a new car cause they’re skeptical. They’re going to want to keep their car. And that’s when we come in to play to help them maintain that older car,” Smith said. CNBC reported about 5,600 smaller parts suppliers, employing a total of 871,000 workers, mostly in the Midwest, may need to lay off workers if the strike continues for more than a few weeks. Some have already announced plans to do so. The Detroit Free Press reported Wixom, MI-based Eagle Industries, Inc., a parts supplier, told state officials it may need to lay off 171 plant workers, production and administration employees—though President John Bull said the paperwork was “precautionary,” and any layoffs would likely affect 55 to 60 employees.

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John Bean Updates Calibration Info John Bean® has updated the website for its Tru-Point™ ADAS calibration tool, providing users with advanced information on proper calibrations to enhance performance and productivity. The updated website features system coverage videos that demonstrate calibration processes and procedures in a clear, concise manner. New information has been added to help shops ensure accurate calibrations and learn about floor space and lighting, service data, vehicle alignment and target placement, as well as scan tool solutions. In addition, an ADAS profit calculator can illustrate how much revenue a shop can realize by performing ADAS procedures. The Tru-Point calibration tool performs a check of the ADASrelated wheel alignment values and closely monitors each step of the setup procedure. To learn more, visit www. johnbean.com/us/adascalibration-systems/tru-point/.

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 53

Toyota Airbag Control Unit Settlement Reached By David A. Wood CarComplaints.com

A Toyota airbag control unit settlement has been reached between the automaker and 11 vehicle owners who allege their airbag control units are defective. None of the plaintiffs claim their control units, seat belts or airbags failed. The Toyota airbag control unit settlement arises from a huge consolidated class action which includes Kia, Hyundai, Fiat Chrysler, Toyota, Honda and Mitsubishi. Toyota decided to settle the lawsuit to put the matter behind it because the case could drag on for years. “Toyota has denied and continues to deny each and all of the claims and contentions alleged in the Actions, and has denied and continues to deny that it has committed any violation of law or engaged in any wrongful act or omission that was alleged, or that could have been alleged, in the Actions,” Toyota said. You are included in this class action if you own, lease, or previously owned or leased one of these vehicles as of July 31: 2011–2019 Toyota Corolla

2011–2013 Toyota Matrix 2012–2018 Toyota Avalon 2013–2018 Toyota Avalon HV 2012–2019 Toyota Tacoma 2012–2017 Toyota Tundra 2012–2017 Toyota Sequoia Toyota recalled nearly 3 million vehicles in January 2020 except for the Tacoma, Tundra and Sequoia, even though the automaker had received no warranty claims about the airbag control units in the older vehicles. The class action alleges the Toyota airbag control units are defective because they contain DS84 application-specific integrated circuits which can suffer from electrical overstress from too many electrical signals during crashes. This causes the airbag control units to fail, which in turn cause failures of the seat belt pretensioners and airbags. When Toyota issued the 2020 recall, the automaker said the condition was “rare” because several circumstances must occur at the same time during a crash. At least 13 class action lawsuits were filed against multiple automakers after the National Highway Traffic Safety Administration opened an airbag control unit investigation in

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2018. Those class actions were consolidated into the case known as In Re: ZF-TRW Airbag Control Units Products Liability Litigation. Toyota Airbag Control Unit Settlement The Toyota airbag control unit settlement provides reimbursements for out-of-pocket expenses related to the Toyota recall such as for towing or rental cars. However, Toyota had already offered reimbursements when the recall was announced in January 2020. Toyota has also agreed to extend the time period for the service part warranty coverage to 12 years. Certain Toyota customers may be eligible for a one-time payment of $250, “on a per capita basis to all Class Members who submitted out-ofpocket claims and to all Class Members who registered for a residual payment only.” The judge will hold a final fairness hearing Nov. 16. An owner who wants to object to the Toyota airbag control unit settlement must do so by Oct. 20. That’s also the deadline if you want to exclude yourself from the settlement. If the judge approves the airbag

control unit settlement, the 11 owners who sued will receive $2,500 each. The attorneys representing those owners will receive $25.9 million.The 11 owners who sued are Mark Altier, Alejandra Renteria, Samuel Choc, Tatiana Gales, Gary Samouris, Michael Hines, Brent DeRouen, Danny Hunt, Even Green, Joy Davis and Dee Roberts. The Toyota airbag class action lawsuit was filed in the U.S. District Court for the Eastern District of Michigan: In Re: ZF-TRW Airbag Control Units Products Liability Litigation. The plaintiffs in the consolidated ZF airbag lawsuit are represented by Keller Rohrback L.L.P., Baron & Budd, P.C., Lieff Cabraser Heimann & Bernstein, LLP, Ahdoot & Wolfson, PC, Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., Bleichmar Fonti & Auld LLP, Boies Schiller Flexner LLP, Casey Gerry Schenk Francavilla Blatt & Penfield, LLP, DiCello Levitt Gutzler LLC, Kessler Topaz Meltzer & Check LLP, Levi & Korsinsky, LLP, Podhurst Orseck, P.A., Pritzker Levine LLP, Robbins Geller Rudman & Dowd LLP, Robins Kaplan LLP, Seeger Weiss LLP and Hellmuth & Johnson.

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2023 Hood Master, PiN Master Winners Announced The winners of the 2023 FinishMaster Hood Master and PiN Master challenges were announced Sept. 22 at the Biltwell Event Center in Indianapolis, IN. More than $22,000 in prizes including cash, tools and equipment were awarded to this year’s winners. In addition, the FinishMaster team raised a record-breaking $30,000 for the Collision Repair Education Foundation (CREF) through fundraising efforts. About 350 guests attended the event, where 105 hoods and pins were on display, including a gallery of select prior winners displayed on the main stage. Guests could meet Dave Kindig of Kindig-It Designs and watch live pinstriping demos from Cory Mroz of Mr.Oz Designs, both featured judges for this year’s challenge. There was also an activity station with 2023 Hood Master challenger and double winner Tom Hudach of TNT Custom Paint, who encouraged everyone to do hands-on taping and design activities with him. 2023 Hood Master Winners This year’s challengers brought their talent and experience to a whole new level. From intricate painting techniques to lighting and 3D sculptures, everyone was in awe of what they saw. Each

challenger poured their heart and soul into their artwork and the industry panel of judges did not have an easy job. “The FinishMaster Hood Master Challenge is a great opportunity for all skill leveled artists to show their talents and I was very honored to have had the opportunity to see and judge the contest this year,” Kindig said. “The FinishMaster team did a great job presenting the competition and putting on a quality reception and display.” Airbrush First place: Tom Hudach, Urethane Circus; $3,000, SATA TrueSun color match light, SATAgraph 4 airbrush and premium sponsor promotional items Second place: Tom Strait, Perseverance through Pain; $2,000, SATA 4400 minijet, SATAgraph 4 airbrush and premium sponsor promotional items Third place: Craig “WIZ” McNeil, Melting Pot; $1,000, Sagola 3300 GTO Gravity, Sagola Classic Lux Gravity and premium sponsor promotional items Pinstripe First place: Tommy Strader, Endless Summer; $3,000, SATA TrueSun color match light, Sagola Classic Pro

XD Gravity and premium sponsor promotional items Second place: Kevin Campbell, Purgatory; $2,000, Sagola Mini Xtreme Gravity, Sagola Classic Lux Gravity and premium sponsor promotional items Third place: Austin Polen, Turmoil; $1,000, Sagola 3300 GTO Gravity, Sagola Classic Lux Gravity and premium sponsor promotional items Overall Wild Card: Tom Strait, Perseverance through Pain; $2,000, Sagola Mini Xtreme Gravity, Sagola Classic Lux Gravity and premium sponsor promotional items Online Crowd Favorite: Tom Hudach, Urethane Circus; $2,000, Sagola 475 XTech Gravity, Sagola Classic Lux Gravity and premium sponsor promotional items 2023 PiN Master Winners PiN Master is a student challenge hosted at the same time as the Hood Master challenge. The contest is for students in collision repair programs across the U.S., who compete by repairing, designing and painting retired bowling pins. The goal of the PiN Master Challenge is to showcase the students’ skills and to support the future of this industry. More than 50

bowling pins were on display this year. First pace: Ahryus Griffin, ‘Murica Second place: Julian Perez, Project Neon Razor Third place: Kenny Rolle, Hot Fudge Sundae Wild Card: Kenny Rolle, Hot Fudge Sundae This year’s PiN Master winners’ prizes included tools and equipment to help advance the start of their careers in collision repair, and premium sponsor promotional items. FinishMaster is beyond grateful for the continued support from the key industry partners listed below who make the challenges and event possible with their sponsorship commitments. Diamond: 3M, AkzoNobel, Axalta Platinum: Smart Gold: Norton/St. Gobain, Sagola, SATA Silver: Accudraft, DeVilbiss, Dynabrade, Evercoat, GFS–Global Finishing Solutions, Innovative Tools, ProStat, RJE–Business Interiors, SEM, Transtar Congratulations to this year’s winners. In 2024, the fifth anniversary of the Hood Master event will be celebrated with another chance to give back to collision repair programs supported CREF.

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autobodynews.com / AUTOBODY NEWS NOVEMBER 2023 55

Drivers Learn To Use Vehicle Safety Tech, But on Their Terms By Andrew Gross AAA

on their behavior and attitudes toward the driving assistance technology.

New research from the AAA Foundation for Traffic Safety found drivers who use advanced driver assistance systems (ADAS) grow more comfortable with the technology over time—sometimes too comfortable. After weeks of using ADAS, attention to driving tended to drop. However, these drivers also used ADAS more when highway demands were lower. “The AAA Foundation findings from this research are a cautiously positive sign for the future of vehicle automation,” said Dr. David Yang, president and executive director of the AAA Foundation. “As drivers become more comfortable with the technology, they will be more likely to use it, which could lead to safer and more efficient transportation. But they must use it properly and understand the system’s limitations.”The study involved 30 drivers operating a vehicle with advanced driving assistance system (ADAS) features, including Adaptive Cruise Control and Lane Keeping Assistance. The study participants drove the ADAS-equipped vehicle for six to eight weeks on highways and were assessed before, during and after

Key Takeaways • Drivers can become comfortable with ADAS over time but are less likely to use the technologies in high-demand situations, preferring to use driver assistance on roads with lower traffic and better weather conditions. • Drivers who used their vehicle’s ADAS reported lower stress levels and greater driving enjoyment. • Over six to eight weeks, there was an increase in the frequency of system warnings reminding the drivers to pay attention. This suggests drivers became more comfortable engaging in non-driving activities as they gained familiarity with ADAS. Intriguingly, the research found drivers initially paid more attention to the driving task when using ADAS than when driving manually. However, after a few weeks of experience, drivers began to relax and multitask more often while the vehicle was in partial control. These findings suggest drivers can learn to trust and rely on ADAS over time. However, drivers must be aware of the technology’s limitations and prepared

to take over in an emergency. ADAS are widely available, with some technologies combining acceleration with braking and steering. Since the introduction of these sorts of ADAS features, there have been numerous newsworthy instances of drivers misusing the systems by watching videos, working, sleeping or even climbing into the back seat. To prevent such activities, some vehicles equipped with this technology monitor drivers using a camera-based system that watches their faces or a system that tracks steering wheel movements. Recent AAA automotive research testing found the camerabased system to be superior. The AAA Foundation’s research reinforces the importance of the Safe System Approach (SSA). ADAS systems provide a safety benefit to drivers and other road users, such as cyclists and pedestrians, by alerting the driver to their presence. The SSA is a strategic way of leveraging the engineering and behavioral countermeasures proven effective at preventing traffic crashes and the injuries that can result from them. The study’s findings suggest drivers are willing to use driver assistance systems but are still cautious about

relying too heavily on them. This is essential information for automakers and regulators as they work to develop and deploy safe and effective automated vehicles. What This Means for the Future of Vehicle Automation The findings of this study suggest ADAS-equipped vehicles have the potential to be a safe and efficient way to travel. A foundation report released in August estimates available ADAS technologies could prevent approximately 37 million crashes, 14 million injuries and nearly 250,000 deaths over the next 30 years. However, automakers and regulators must consider that drivers must retake complete control of their vehicles in certain situations. Vehicle automation must have safety features, allowing drivers to intervene quickly and easily. “The potential lifesaving benefits of vehicle safety technologies are maximized only when drivers keep them on and use them correctly,” said Jake Nelson, AAA’s director of traffic safety advocacy. “These study results help illuminate the important and sometimes irrational ways we as drivers interact with technology.”

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Car Ownership Now Costs Average U.S. Household Nearly $700 a Month The cost of car ownership has increased 7% over the past year to $6,184 per year, as Americans spend $811 billion annually on auto loans and insurance combined, according to two new reports from doxo. A statistical analysis of actual household payments toward auto loans and auto insurance was used to size the market and amount spent per household across 97% of U.S. ZIP codes. The 2023 U.S. Auto Loan Market Size and Household Spending Report and the 2023 U.S. Auto Insurance Market Size and Household Spending Report found U.S. households with auto loan and auto insurance bills spend $674 per month, or $8,088 per year---or $6,184 when averaging across all U.S. households. The reports break out the household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, as well as the 50 largest U.S. cities (based on the number of households), and those cities with 40,000 or more residents.

Key Findings Cost of Car Ownership in the U.S. * Americans spend a total of $811 billion dollars a year on auto loans and insurance * The average annual cost per household is $6,184 a year for both loans and insurance Auto Loans Market Size and Household Spending Snapshot * Total Market Size: $544 billion spent per year * Average Monthly/Annual Cost: $467 spent per month; $5,604 spent per year * Percent of Households: 74% of U.S. households pay loans * Average Annual Cost per U.S. Household: $4,147 per year * Percent of Annual Income: Auto loan bills amount to 9% of consumers’ income per year

* Average Monthly/Annual Cost: $207 spent per month; $2,484 spent per year * Percent of Households: 82% of U.S. households pay auto insurance * Average Annual Cost per U.S. Household: $2,037 per year * Percent of Annual Income: Auto Insurance bills amount to 4% of consumers’ income per year The rising cost of car ownership continues the trend of recent years. Auto loan debt currently stands at $1.5 trillion, a record high on the upward trajectory starting in 2011. Supply chain issues brought on by the pandemic, interest rate hikes and inflation have all combined to make car ownership more expensive than ever. The high

Auto Insurance Market Size and Household Spending Snapshot * Total Market Size: $267 billion

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cost of car repairs combined with record underwriting costs for some insurance companies means the cost of insurance premiums has simultaneously skyrocketed. “While supply in the market is finally starting to catch up to the demand of the past few years, drivers are far from getting a reprieve from the numerous factors that have made it so expensive to own a car,” said Liz Powell, senior director of INSIGHTS at doxo. “Armed with information on both the rising costs in auto loans and insurance, consumers can make an informed choice if they’re considering whether now is the right time to trade in their car or buy a new one or negotiate rates with their insurance company.”

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Driven Brands Holds Inaugural Joint Collision Conference Driven Brands hosted Evolution 2023, its inaugural U.S. collision repair joint conference, gathering Abra, CARSTAR and Fix Auto USA franchise partners, Sept. 2830 at the Gaylord Palms Resort and Convention Center in Kissimmee, FL. The conference featured two days of education, thought provoking discussions and networking opportunities, capped off with the Fenders and Fairways charity golf event. Before the conference got underway, three Orlando-area women and their families were presented refurbished vehicles, courtesy of the National Auto Body Council (NABC) Recycled Rides® program. GEICO donated all three vehicles. CARSTAR Collimotive Center refurbished two of them and CARSTAR Superior Auto Body refurbished one, while Jerry’s Abra in Mankato, MN, and Fix Auto Fort Myers helped stuff the trunks with much-needed items and gift cards. The conference officially opened with Hannah Whitesides, senior vice president of paint and collision marketing at Driven Brands, serving as emcee. Driven Brands collision repair leaders Sabrina Thring and Damien Reyna took the stage to share their outlook for the collision repair network and the year ahead.

“There are three critical pillars for us to have a common vision and common goal: profitability, excellence and growth,” said Thring. “We have the collective power to continue driving this industry forward. We are in the best position to influence the changes in the field and by uniting our forces, we will continue to blaze trails in the collision repair industry space.” Reyna shared his outlook on how CARSTAR, Abra and Fix Auto USA can continue to move forward and navigate this ever-changing industry. “While we are making great headway on many areas of our performance, there are still several opportunities for improvement across the network,” he noted. “We’re confident that, working together, we can meet and exceed our goals for the remainder of the year, maintaining our position as America’s leaders in collision repair.” The rest of the activities on opening night included a keynote address from Jon Acuff, New York Times bestselling author of eight books, who spoke about facing the inevitability of change and the dilemma of pivot or panic; and a party featuring whiskey tasting, cigar rolling, axe throwing, a live jazz band and fund raising that raised more than $6,000 for the Cystic Fibrosis Foundation. The conference continued Sept. 29

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with keynote speaker Matt Mayberry, retired Chicago Bears linebacker and internationally acclaimed speaker; an OE panel focused on the current and future state of EVs, led by Dirk Fuchs and featuring panelists from Nissan, Lucid and Rivian; presentations on marketing and DrivenAdvantage; and breakout sessions for the franchise partners. A vendor tradeshow in the afternoon was followed by the awards gala that evening, where the guests donned their formal attire and celebrated the collective achievements during the conference. On Sept. 29, during a media roundtable call, Thring expanded on her comments from the previous evening. Collectively, there are 1,031 CARSTAR, Abra and Fix Auto locations in North America, Thring said, and Driven Brands plans on continuing to add more in 2024. Thring said Driven Brands is welcoming new owners from outside the collision repair industry, some of whom have private equity backing, as well as helping existing owners expand. “When you invest in your people and your shop, when you leverage the resources [of Driven Brands] and engage, you’re able to scale faster and you can take that talent, trust it, and

move on to the next location,” Thring said. “Thee is an appetite to grow and expand; people still love this business.” Among those resources made available to franchisees are recruiting tools, to help find and hire quality technicians; partnerships with companies like asTech to provide the latest AI technology to expedite processes and ensure safe and proper repairs; and tools and training to repair the growing number of EVs on the road. “We are encouraging owners to get more OE certifications to attract talent,” Thring said. “We want to be seen as leader in [EV repair.]” Thring said Driven Brands currently has 92 Tesla-certified shops, as well as shops certified by Lucid and Rivian, and it wants to increase those numbers. The final day, Sept. 30, featured the Fenders and Fairways golf fundraiser, held at Disney’s Magnolia Golf Course to benefit the Cystic Fibrosis Foundation. The event was attended by 60 golfers who teed it up in the scramble for fun and fundraising. Throughout the conference week, the attendees raised more than $90,000 through sock purchases, onsite competitions, a 50/50 raffle and an art auction to be donated to the Cystic Fibrosis Foundation to support research, advocacy and care.

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Average EV Prices Plummet As Oversupply Concerns Grow By Suvrat Kothari InsideEVs

The consistently falling prices of electric vehicles over the past year could be an encouraging and worrying sign in equal measure. Largely influenced by Tesla’s price cuts, EV prices fell sharply month-over-month and year-over-year, according to Cox Automotive’s latest data. In July, the average price Americans paid for a new EV was $53,633. In August, the price fell by $257 to $53,376. That’s a remarkable 18.7% lower than the average transaction price of $65,688 in August a year ago. The effective prices could be even lower after factoring in federal and state incentives. Franchised auto dealers have a diminishing outlook for EV sales in the short term, said Cox Automotive Chief Economist Jonathan Smoke. The dealers are reportedly feeling pressure from oversupply concerns rather than lack of demand. Tesla has a direct-to-consumer modus operandi, so the dealers’

declining expectations are concerning non-Tesla EVs, whose sales are growing but not on a particularly steep curve. It’s a “natural speed bump and an expected part of growth,” wrote Smoke. The economist forecasted surplus inventory and increased competition could lead to further reduction in prices, and will positively impact buyers considering EV adoption. Moreover, manufacturer incentives have also peaked over the last 12 months, now standing at $2,365, which can help boost EV adoption further. Tesla’s impact on this trend is a truism. The brand witnessed 390,377 new registrations in the U.S. in the first seven months of 2023, and it is enjoying a nearly 60% EV market share. Chevrolet is second with a 6% market share followed by Ford at 5.2%. The Elon Musk-led brand has disrupted the EV space with multiple price cuts worldwide over the past 12 months. The latest cuts took effect in August, with inventory discounts of up

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to $5,500 on the Model 3 Long Range, as the brand prepares to make room for its incoming facelifted version. In fact, the average transaction price of a Tesla has declined by 19.5% over the last 12 months, falling from $68,233 a year ago to $54,943 in August. Meanwhile, hybrid and alternative fuel vehicles have witnessed a contrasting trend. The average price of a hybrid car increased by 18.1%, from $33,555 in August 2022 to $39,624 in August 2023. Despite that, hybrids continue to be considerably more affordable than pure EVs.

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First Production Lucid Air Sapphires Roll Off Assembly Line By Maria Merano

via X of a Lucid Air Sapphire release candidate on the line at Casa Grande. In August, Lucid On Sept. 29, Lucid Motors shared released the official specs of the on X a snapshot of the first halo car. production Lucid Air Sapphire The $249,000 Lucid Air super sedan going through the Sapphire is expected to be the ADAS system calibration in its world’s first fully electric luxury AMP-1 manufacturing facility super-sports sedan. Lucid noted in Casa Grande, AZ. The EV the EV can achieve 0-60 mph in manufacturer added customer 1.89 seconds, making it faster deliveries will begin soon. than the Tesla Model S Plaid. “Sapphire represents the pinnacle of electric performance, finally achieving the performance that I’ve so long searched for,” said CEO Peter Rawlinson. “After painstaking development work, I am able to confirm Lucid Air Sapphire has achieved a satisfactory performance, and I trust the Lucid Motors on Sept. 29 posted this most discerning drivers will photo to X, showing one of the first Lucid agree.” Air Sapphires. The Lucid Air Sapphire is a limited-production model Lucid Motors teased the Air to be available in the U.S. and Sapphire’s start of production in Canada. The Sapphire will start Arizona in the summer. In July, at $249,999 in the U.S. and the company shared a picture $325,000 in Canada. Teslarati

Is the Peak Price For Gas in the Rearview Mirror? By Andrew Gross and Devin Gladden AAA

The national average for a gallon of gas hit what may be 2023’s peak price of $3.88 early in the week of Sept. 18, only to slide a few cents in the following days. The average as of Sept. 21 is $3.86—a penny more than a week ago. “The recent drop in the national average, while small, is fairly typical this time of year as much of the country makes the switch to less expensive winter blend gasoline,” said Andrew Gross, AAA spokesperson. “But the gradual seasonal decline in pump prices is being slowed by higher oil costs, hovering around $90 a barrel.” According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.31 to 8.41 million b/d over the week since Sept. 14. Meanwhile, total domestic gasoline stocks declined slightly from 220.3 to

219.5 million bbl. Higher gas demand, amid tighter supply, has contributed to elevated pump prices, but oil remaining above $90 per barrel continues to steer the price increases seen by drivers. The Sept. 21 national average of $3.86 is the same as a month ago but 18 cents more than a year ago. Since Sept. 14, these 10 states have seen the largest changes in their averages: Nevada (+33 cents), California (+29 cents), Georgia (+15 cents), Arizona (+14 cents), Iowa (+11 cents), Florida (+8 cents), North Dakota (+8 cents), Minnesota (+8 cents), Utah (+7 cents) and Oklahoma (+7 cents). The nation’s top 10 most expensive markets: California ($5.79), Nevada ($5.06), Washington ($5.04), Hawaii ($4.83), Oregon ($4.68), Arizona ($4.65), Alaska ($4.60), Utah ($4.25), Montana ($4.19) and Idaho ($4.14).

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SEMA Show Exhibit To Highlight Future Vehicle Propulsion Technology The SEMA FutureTech Studio, a new exhibit at the 2023 SEMA Show, will give attendees at the world’s leading automotive trade show an opportunity to learn about what the future of vehicle propulsion may look like, SEMA announced Sept. 27. Located in Central Hall, the SEMA FutureTech Studio will be part of the new EV & Future Propulsion section that evolved from the popular SEMA Electrified exhibit at recent shows. “The automotive aftermarket has always been at the forefront of vehicle innovation and technology, and this new section will help showcase how our industry is leading the wayin the creation of new engine and fuel options,” said Tom Gattuso, SEMA vice president of events. “The FutureTech Studio is a visionary space designed to inspire and support innovation across all segments and vehicles.” Through various spotlights and showcases, the new immersive environment will feature parts and equipment that cater to the new technology, as well as vehicles that will highlight how

these are employed. The exhibit will also include a SEMA Education stage, named FutureTech LIVE, where industry leaders will discuss different propulsion technology, including EV, hybrid, hydrogen, alternative fuels and other advancements in technology. Additionally, the new EV & Future Propulsion area will include more than 15 exhibitor booths showcasing parts and tools that cater to this emerging technology and more than 75 vehicles will help highlight the future of automotive innovation. “The FutureTech Studio will help attendees understand what’s happening in the industry and how the industry is already pushing the creative envelope with new innovations, parts and services,” said Luis Morales, SEMA director of vehicle technology. “The EV & Future Propulsion section embodies our commitment to featuring the latest and future trends at the SEMA Show, and it is a testament to SEMA’s dedication to helping the community remain at the forefront of technological advancements.”

Hunter Wins 2 MOTOR Top 20 Awards Hunter Engineering has been named the recipient of two MOTOR Top 20 Awards, for the Maverick® tire changer and the new Ultimate ADAS™ system. The Maverick is a premium center-clamp tire changer that shares many features with Hunter’s standard-setting Revolution™ tire changer, but keeps the technician completely in charge with smooth and fully variable operation. The Maverick’s proportional controls combine low-speed functionality with on-demand faster operation. Ultimate ADAS, introduced earlier this year to Honda and Acura dealerships, is an innovative system that eliminates error-prone manual layouts common to static ADAS calibrations, combining Hunter alignment technology with an efficient and easy-touse guided target placement system for around-the-vehicle coverage. Gimbal-mounted lasers are the key component.

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Fisker Expects To Ramp Deliveries To 300 Vehicles Per Day Co-President & Publisher Nathan Gregory

Accounting & HR Manager Heather Priddy

Co-President & Publisher Paul Stepanek

Permissions Editor Randi Scholtes

Fisker Inc. announced Sept. 26 it has built 5,000 Fisker Ocean SUVs and expects to ramp deliveries of the Ocean to 300 vehicle per day later this year.

Editor Abby Andrews Contributing Writers Mike Anderson, Stacey Phillips, Cole Strandberg, John Yoswick Advertising Sales Joe Momber, Norman Morano, Steve Sklenar Office Manager Kelly Cashman Digital Marketing Manager Bryan Malinski Art Director Rodolfo Garcia Senior Designer Vicki Sitarz

Serving Alaska, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington and Wyoming. 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. ©2023 Autobody News, LLC. Autobody News P.O. Box 1516 Carlsbad, CA 92018 (800) 699-8251 (760) 603-3229 Fax www.autobodynews.com editor@autobodynews.com

“We want to thank our customers for their patience as we have refined our delivery processes,” Chairman and CEO Henrik Fisker said. “As we complete the third quarter and move into the fourth, we are preparing to significantly increase our pace of deliveries in the U.S. and Europe. We are expanding both our teams and our physical

locations, and we are targeting deliveries of 300 vehicle per day to meet strong demand for the Fisker Ocean. I’m tremendously pleased that our company has geared up to achieve these milestones.” To date, Fisker has delivered more than 900 customer vehicles in its European and U.S. launch markets. Several hundred more are expected to be delivered the same week of the announcement. The $68,999 Fisker Ocean Extreme has a 113 kWh battery pack (106 kWh usable) and an EPA range of 360 miles on standard 20” wheels and tires, the longest range of any new electric SUV in its class. The all-electric SUV starts at $37,4992 for the Fisker Ocean Sport trim level in the U.S.

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BrightDrop Delivers First Electric Vans To Ryder For Rental Fleet BrightDrop, owned by General Motors, is delivering its Zevo 600 electric van nationwide, with the latest batch going to four Ryder facilities in California, Texas and New York, the company announced in a news release. Earlier this year, Ryder announced plans to introduce 4,000 BrightDrop EVs to its fleet through 2025, with the first 200 ordered this year. The BrightDrop Zevo 600 electric van boasts a range of up to 250 miles, a payload of 1,460 to 2,450 pounds, and a cargo capacity of 615 cubic feet. “Electrifying commercial fleets can reduce operating emissions without sacrificing range, safety or performance. By adding BrightDrop EVs to its fleet offerings, Ryder is helping make electrification possible for companies big and small,” said Steve Hornyak, COO of BrightDrop. “Working with companies such as BrightDrop keeps Ryder at the forefront of identifying and testing advanced and emerging vehicle

technology, and we’re excited to incorporate these new EVs into our fleet,” said Tom Havens, president of fleet management solutions for Ryder. “Through our partnerships with technology providers and equipment manufacturers, Ryder can offer commercial fleet management solutions that drive sustainability and operational goals for our customers.”

To introduce these new EVs into the Ryder fleet, Ryder hosted “Ride & Drive” events for customers showcasing the vans, as well as EV chargers from ChargePoint, Ryder said in its own news release. The BrightDrop Zevo 600 electric vans are now available for rent at Ryder locations in Santa Fe Springs and Hayward, CA, Saginaw, TX, and Long Island City, NY.

Rivian Offers Faster Delivery Option With Purchase from Inventory By Joey Klender Teslarati

Rivian informed customers its R1T inventory shop has officially opened, meaning customers can get their orders sooner if they order through it.

“Now, there are two ways to get behind the wheel of the awardwinning R1T. You can make a reservation and put together your own custom configuration. Or you can shop available R1T inventory that deliver in just one to six weeks,” Rivian said in an email to customers. Rivian’s inventory shop is designed to get customers the R1T they want immediately. The search starts with customers typing in the ZIP code where they

wish their R1T to be delivered. Then Rivian asks for their paint preferences. For instance, under New Jersey ZIP code 08234 and blue paint options, one vehicle is listed: an R1T Dual-Motor AWD unit for $83,500, which includes

additional charges of $6,000 for the large battery pack and $2,500 for the blue exterior. The R1T’s Ocean Coast + Dark Ash Wood interior also gets an additional $2,000 charge. The electric pickup truck’s estimated delivery date is one to six weeks. A blue R1T with similar configurations would cost the same if customized. Custom Rivian R1T builds usually deliver in four months or less.

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