Western Edition California Nevada Arizona
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VOL. 28 ISSUE 12 DECEMBER 2010
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Results of non-OEM Parts Crash Testing Revealed at November CIC in Las Vegas by John Yoswick
Non-OEM parts again dominated much of the agenda at the Collision Industry Conference (CIC), held in Las Vegas in November in conjunction with the SEMA show. The daylong meeting included presentations by Ford Motor Company, the Certified Automotive Parts Association (CAPA), and NSF International, the organization that launched another certification program for non-OEM parts earlier this year. Ford announced at the meeting that it had followed up its simulated crash testing of some non-certified
non-OEM bumper parts last summer with some actual low-speed crash testing of the parts (sold as replacements for the 2005–09 MusFord’s Paul Massie tang) in October. The effect of the use of non-OEM parts in a subsequent crash was clear, Paul Massie, powertrain and collision product marketing manager for Ford, said. “It will change the discussion from it ‘might’ change the airbag deSee CIC: Bumper Testing, Page 47
BAR Chief Sherry Mehl talks with Autobody News about running California’s Bureau of Automotive Repair
INTERVIEW by Ed Attanasio see p. 38
Also in this issue... GM IPO, One of Largest Ever p. 46
Toby Chess Organizes Holiday Donations for Marine Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 41 SEMA, CIC, and SCRS stories . . . . . . . . . . . . . . . . . .various
CollisionHub.com founder
KRISTEN FELDER
“SOCIAL MEDIA”– Personal networking technology (and its application) is more than just the chatter mechanism that teens use to communicate with other teens. It has made its presence unavoidable in the business world in recent years. Is it profitable? Worthwhile? Here to stay? Autobody News sat down with Kristen Felder, founder and CEO of CollisionHub.com—a new social media website for the collision repair industry—to find out what all the buzz is about. ABN: What sparked your idea to create Collision Hub? KF: Well, five years ago, when Hurricane Katrina hit, I was working with State Farm Insurance Company. Most everybody’s cell phones were down after the storm, but a lot of people still had access to their social media accounts, which allowed the insurance companies a way to get a hold of customers. So I started to see social media as a very helpful tool thanks to that. Then, at NACE two years ago, I was talking to some colleagues and I thought it would be great if we could recreate that dialogue and debate within the industry more than just at expos once or twice a year. I wanted to create a place where people in the industry could talk openly and have a place to really get to know each other. I decided I wanted to build something to really connect the different segments of the industry. ABN: What did it take to get Collision Hub off the ground? KF: I spent 3–4 months programming and building the site. I didn’t have any formal web or HTML training so I sort of learned on the fly.
INTERVIEW by Erica Schroeder Related in this issue...
continued on page 24
Collision Hub Implements its Social Media strategy by David M. Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 44 Social Media 101: Why Social Media Matters in Collision Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p. 45
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2 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Contents 12 Accused in Louisiana Staged Vehicle
Crashes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
AAA Auto-Repair Shop Approved in Phoenix
Revealed at November CIC in Las Vegas . . . . . 1
Yoswick - SEMA Week Collision Meetings Focused
on Industry Standards and Estimating Systems. 54
Despite Opposition . . . . . . . . . . . . . . . . . . . . . 4
NATIONAL
Business Program . . . . . . . . . . . . . . . . . . . . . . 4
AutoTrader.com to Purchase Kelley Blue Book . . 46
Arizona Welcomes AZ Dept of Quality’s Green
Auto Body Fraud Investigator Dr. Kenneth Zion
Speaks at CAA Santa Clara Chapter Meeting . . . 36
AutoNation Sees Major Acquisitions in 2011 . . . 50 Bush Book: Automaker Bailout was
“Responsible Action”. . . . . . . . . . . . . . . . . . . 59
CAA Holds 6th Annual Holiday Party in
Chevy Volt Classified As ULEV, Ineligible For
California Repairers’ Donations Needed to Give
Chief Announces Chief University, Design Based
Capital Original Wheels Celebrates 55 Years of
China to become GM’’s Largest Market in 2011. 50
San Diego . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Back to Marines . . . . . . . . . . . . . . . . . . . . . . 41 Business in Los Angeles . . . . . . . . . . . . . . . . 10
Chrysler West Business Center (WBC) Holds
2-Day Meeting in Las Vegas . . . . . . . . . . . . . 27
Los Angeles Builds New EV Charging Stations at
Transit Centers. . . . . . . . . . . . . . . . . . . . . . . . . 6
May Hail Storm ‘Disaster’ Economic Boon for
Oklahoma City Economy . . . . . . . . . . . . . . . . 57
Mini Cooper Rolls into former Bauer Jaguar . . . . 15
Carpool Stickers . . . . . . . . . . . . . . . . . . . . . . 57 Repair Training at SEMA . . . . . . . . . . . . . . . . 56
China’s Largest Automaker Plans 1% Stake in
GM IPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
FIAT Plans Big for US Auto Sales in 2011. . . . . . 57 Five More Las Vegas Families Receive Reliable
Transportation at SEMA from NABC . . . . . . . . 52
Ford Cuts Mazda Stake . . . . . . . . . . . . . . . . . . . 50 General Motors IPO, One of Two Largest in
History, Generates $16–23 Billion . . . . . . . . . 46
Mobile County, AL, Could Recruit High
GM to Phase out Goodwrench Brand Name . . . . 29
Mobility Given to Two Orange County Families
I-CAR Premieres New Vehicle Technology and
More Than 50 Vehicle Debuts at the LA Auto
LA Dealership to be first to sell Fiat brand in
Thanks to Recycled Rides Program . . . . . . . . . . 18 Show Display Renewed Vitality Not Seen in
GM Wins Award with New DuPont Plastic . . . . . 29
Trends Course at SEMA . . . . . . . . . . . . . . . . . 57 the U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Many Years . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Matrix System Walks Away as a Winner with
California will be Jan 12. . . . . . . . . . . . . . . . . . 4
Mercedes-Benz Financial is new Daimler
Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Mickey Harris’ American Pride Camaro
Innocent Drivers . . . . . . . . . . . . . . . . . . . . . . . 9
Midterm Elections: Pro-shop CT Senator and
NABC Annual Golf Outing in Palm Springs,
Nevada Board Bans Texting While Driving State Nevada DMV Verification Sometimes Fines
New Hohl Dealerships Open in Carson City . . . . 15
Indexof Advertisers
Performance Automaker . . . . . . . . . . . . . . . . 55
Salt Eraser® . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Financier . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Commands Attention at SEMA . . . . . . . . . . . . 53
Pro-shop CDI Commissioner . . . . . . . . . . . . . . 8
San Juan Capistrano Offers $5M Incentive to
Military Buys Into R2R. . . . . . . . . . . . . . . . . . . . . 4
Sun Devil Auto Kicks Off Third Annual Toys
President Obama Says Auto Industry is “Again
Auto Dealership . . . . . . . . . . . . . . . . . . . . . . . 12 For Tots Drive Throughout Arizona, Nevada,
and Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
NCOIL Tables Model Steering Act, for Now. . . . . 40 on the Rise,” Republicans Still Skeptical. . . . . 55
Rome Technologies Now Integrates with
PMCLogic . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
COLUMNS
SCRS Thanks Repairer Education Sponsors at
Attanasio - BAR Interview with Sheri Mehl . . . . . 38
SEMA 2010, A Glimpse of Hope and New
Amaradio - My Customer, the Crash Test Dummy . 51 Attanasio - CAA East Bay Hosts Toys for Tots
Truck Customizing Competition . . . . . . . . . . . 14
Brown - Collision Hub Implements its Social
Media Strategy . . . . . . . . . . . . . . . . . . . . . . . 44
Espersen, Webster - Got Information? . . . . . . . . 19
Franklin - Promotion Up Close and Personal . . . . 45
SEMA 2010. . . . . . . . . . . . . . . . . . . . . . . . . . 34
Revenue Opportunities. . . . . . . . . . . . . . . . . . 42
Social Media 101: Why Social Media Matters
in Collision Repair . . . . . . . . . . . . . . . . . . . . . 45
Tesla Offers Battery and EV Tech to Toyota,
Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Toyota Expects 13% Rise. . . . . . . . . . . . . . . . . . 50
Schroeder - Social Media Interview with
Utility Companies Are Apprehensive About
Schroeder - Three Autobody News Collisions
Virginia Body Shop Wins Vista Print ‘Make an
Kristen Felder . . . . . . . . . . . . . . . . . . . . . . . 24
Illustrate Balancing Act Between DRPs and
Shops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Weaver - Dude, Meet My Daughter. . . . . . . . . . . 32
Yoswick - Results of non-OEM Parts Crash Testing
Publisher & Editor: Jeremy Hayhurst General Manager: Barbara Davies
Serving California, Nevada and Arizona, Autobody News is a monthly publication for the autobody industry. Per-
Contributing Writers: Tom Franklin, David Brown, John
Yoswick, Lee Amaradio, Rich Evans, Janet Chaney, Toby
in Autobody News must be obtained in writing from the publisher. ©2010 Adamantine Media LLC.
Sales Assistant: Kristy Mangum Art Director: Rodolfo Garcia
www.autobodynews.com Email: news@autobodynews.com
Editorial Assistant: Erica Schroeder
Chess, Mike Causey, Tom McGee, Ed Attanasio Advertising Sales: Joe Momber, Christina Shubert (800) 699-8251
Audi Wholesale Parts Dealers . . . . . . .58
Autoland Scientech . . . . . . . . . . . . . . .29
Automotive Equipment Solutions . . . . .41
Automotive ID . . . . . . . . . . . . . . . . . . . .22
Autobody News P.O. Box 1516, Carlsbad, CA 92018 (800) 699-8251 (760) 721-0253 Fax
LKQ . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
Malco . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Matrix . . . . . . . . . . . . . . . . . . . . . . . . . .20
Mazda Wholesale Parts Dealers . . . . . .56
Mitsubishi Wholesale Parts Dealers . . .56
British Motor Car Distributors . . . . . . . .36
MOPAR Wholesale Parts Dealers . . . . .26
BMW Wholesale Parts Dealers . . . . . . .17
ML Spraybooth . . . . . . . . . . . . . . . . . . .21
Buerge Chrysler-Jeep-Dodge . . . . . . . .11
Nissan/Infiniti Wholesale Parts Dealers .53
Completes Plus . . . . . . . . . . . . . . . . . . .10
Performance Radiator . . . . . . . . . . . . . .14
Classifieds . . . . . . . . . . . . . . . . . . . . . . .59
Crevier BMW . . . . . . . . . . . . . . . . . . . . .43 Downtown Motors of LA
(Audi, VW, Porsche) . . . . . . . . . . . . .42
Drew Hyundai-Volkswagen . . . . . . . . . .18 DuPont . . . . . . . . . . . . . . . . . . . . . . . . . .5
Pacific BMW . . . . . . . . . . . . . . . . . . . . .38
Perry Mazda-Ford . . . . . . . . . . . . . . . . .40
Power Chrysler-Jeep-Dodge . . . . . . . . .7
PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
RBL Products . . . . . . . . . . . . . . . . . . . .32
Replica Plastics . . . . . . . . . . . . . . . . . . .33
Elk Grove Toyota . . . . . . . . . . . . . . . . . . .4
Riverside Metro VW-Honda-Hyundai-
Folsom Lake Chrysler-Jeep-Dodge . . .19
SCA Appraisal Company . . . . . . . . . . . .6
Enterprise Rent-A-Car . . . . . . . . . . . . . .51 Ford Wholesale Parts Dealers
Nissan-Mazda . . . . . . . . . . . . . . . . . .15
Scorpion . . . . . . . . . . . . . . . . . . . . . . . .16
AZ, CA, & NV . . . . . . . . . . . . . . . . . .37
Sierra Chevrolet-Honda-Mazda-Subaru .39
Garmat USA . . . . . . . . . . . . . . . . . . . . .24
Timmons VW-Subaru . . . . . . . . . . . . . . .8
Galpin Motors . . . . . . . . . . .27, 30-31, 35
Impression’ Contest. . . . . . . . . . . . . . . . . . . . 49
GM Wholesale Parts Dealers . . . . . . . .49
Veterans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
mission to reproduce in any form the material published
BMW of Riverside . . . . . . . . . . . . . . . . .34
Electric Cars . . . . . . . . . . . . . . . . . . . . . . . . . 57
Wicklund’s CARSTAR Honors Kansas City Area
Western
REGIONAL
Harbor Hyundai . . . . . . . . . . . . . . . . . .34
Subaru Wholesale Parts Dealers . . . . .23
Toyota Wholesale Parts Dealers . . . . . .12
VIM Tools . . . . . . . . . . . . . . . . . . . . . . . .55
Honda/Acura Wholesale Parts Dealers .52
Volkswagen Wholesale Parts Dealers .48
Kia Motors Wholesale Parts Dealers . .25
Weatherford BMW . . . . . . . . . . . . . . . . .13
Hyundai Wholesale Parts Dealers . . . .50
Volvo Crash Wholesale Dealers . . . . . .58
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 3
Arizona Welcomes AZ Dept of Quality’s Green Business Program
The number of members of the Arizona Department of Environmental Quality’s Green Business Automotive Program reached 65 as nine more Valley autorepair shops and five more Tucson shops pledged that they would have environmentally friendly car repair practices. The new Phoenix member autorepair shops are: AAA Auto Repair, 1050 E. Camelback Road; Firestone Complete Auto Care at 2858 W. Peoria Ave. and 5125 W. Southern Ave.; and Larry Harker’s Auto Repair, 3845 W. Indian School Road. Other new Valley members are Tobias Automotive Specialists, 6022 E. Cave Creek Road in Cave Creek; and Firestone Complete Auto Care, 70 E. Guadalupe Road in Gilbert, 6707 E. Main Street in Mesa, 17038 W. Bell Road in Surprise and 9970 W. Lower Buckeye Road in Tolleson. The Tucson auto-repair shops are Jimmy’s Broadway Automotive Service, 2448 E. Broadway Blvd.; One Stop Automotive, 1545 S. Craycroft Road; Integrity Automotive Corp., 4455 W. Ina Road; Pima Community College -- Automotive, 1255 N. Stone Ave.; and Tucson Mountain Motors, 3045 S. Kinney Road.
AAA Auto-Repair Shop Approved in Phoenix Despite Opposition
The Phoenix Planning Commission voted to allow AAA-Arizona to convert an abandoned emissions station near 40th Street and Greenway Road into an auto-repair shop according to the Arizona Republic. Neighbors had objected to the change, and the Paradise Valley Village Planning Commission failed to approve the facility in two separate votes. Pending appeal by the neighbors, the commission decision now goes to the Phoenix City Council for final say. AAA asked to rezone the property where the emissions station was located from light commercial (C-1) to intermediate commercial (C-2), as required for an auto-repair shop. Neighbors objected on grounds of noise, and said the emissions station never should have been permitted there. They also expressed concern that if the AAA shop does not survive, other undesirable uses could take over the facility if it has lC-2 zoning. But AAA promised to take steps to mitigate noise and improve security, drainage and lighting. The commission voted 6-1 last week in support of AAA’s plans.
The innovative green auto shops program is a publicprivate partnership that began in 2005 when ADEQ linked up with Automobile Association of America-Arizona (AAA). The program now includes the Automotive Service Association of Arizona (ASA AZ) and City of Mesa. “We congratulate these 14 new members in the Valley and Tucson for their commitment to clean and green. We now have 65 auto repair shops in Arizona participating in the Green Auto Shop program, which is going to continue to grow throughout the state as more shops become recognized environmental stewards,” said ADEQ Director Benjamin H. Grumbles. The participating green auto shops have found ways to protect the environment and conserve resources through better waste disposal practices, parts management programs, housekeeping, parts cleaning and degreasing, fluid recycling and energy use policies to reduce pollution. The shops use low-pollution or water-based solvents for cleaning, recycle waste fluids and oil whenever possible. More information on the green shops is available at: http://www.azdeq.gov/function/about/ greenauto.html
Nevada Board Bans Texting While Driving State Vehicles
The Nevada Board of Examiners has approved a policy banning employees from texting or using electronic devices while driving state vehicles. Gov. Jim Gibbons, Attorney General Catherine Cortez Masto and Secretary of State Ross Miller were unanimous in their support for the ban. Officials say it won’t apply to emergency personnel or law enforcement. The 2011 Legislature is expected to consider bills prohibiting the general public from texting and using cell phones while driving.
Military Buys Into R2R
The American Military Society (AMS) requests that Congress support passage of the Motor Vehicle Owners Right to Repair Act (S 3181/HR 2057) on behalf of its membership which includes active, reserve, National Guard, retired and veterans of the uniformed services, their families and survivors. “Military personnel and their families are often stationed in remote locations far from any dealerships, relying on independent repair shops to service their vehicles,” said Charles C. Partridge, Col, USA (Ret) of AMS, adding “As cars become more complicated, the problem becomes more acute.”
4 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
NABC Annual Golf Outing in Palm Springs, California will be Jan 12
The National Auto Body Council (NABC) has selected January 12 for their 2011 Annual Golf Outing presented by Hertz. The outing will take place at the Tahquitz Creek Golf Resort in Palm Springs, California. The golf outing is held each year in conjunction with the NABC’s open board meeting and the Collision Industry Conference (CIC). This coming year the meetings are scheduled for January 11– 14, 2011. The open board meeting is scheduled for January 12 from 8:00 a.m. until 11:00 a.m. “The annual golf outing is a fun and relaxing way to network with industry peers, while raising awareness of the great work the NABC does to enhance the image of the collision repair industry,” says NABC Vice President Brandon Devis of Sherwin-Williams Automotive Finishes. “We are very excited to have Hertz on board as our presenting sponsor in 2011. They are a longstanding supporter of the NABC and have stepped up to the tee in support of our Annual Golf Outing.” The golf outing is open to both individuals and teams, and will be played using a four-person scramble format. Transportation will be pro-
vided by Hertz from the Palm Springs Hilton to Tahquitz Creek Golf Resort. Busses will depart at 11:00 a.m. with a shotgun start scheduled for Noon. Lunch and beverages will be provided along with the opportunity to win many outstanding prizes. The golf outing will conclude with an awards reception and return transportation will be provided by Hertz to the Palm Springs Hilton. To register for the NABC Annual Golf Outing presented by Hertz, please download an event registration form from www.autobodycouncil.org. Registration must be received by December 31, although interested parties are advised not to wait until the last minute to sign up as the event—which attracted over 100 participants last year—looks as if it will sell out. Additional sponsorship opportunities are still available for those companies or individuals interested in supporting the NABC. Please download an event sponsorship form from www.autobodycouncil.org. If you have any questions please contact Cynthia Prisco at 888667-7433 or cprisco@autobodycouncil.org.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 5
Los Angeles Builds New EV Charging Stations at Transit Centers The California Energy Commission recently announced EV Connect, a leading provider of electric vehicle infrastructure solutions (EVISs) and the Los Angeles County Metropolitan Transportation Authority (Metro) will be conducting a pilot program to assess the integration of PEVs into the transportation network and consumer behavior and ridership patterns. “This project will bring the city of Los Angeles closer to achieving its goal of reducing greenhouse gas emissions 35 percent below 1990 levels by 2030,” said Energy Commissioner Anthony Eggert. “The Energy Commission is proud to be a part of this first-of-itskind PEV infrastructure rollout with EV Connect and Metro.” This pilot project aims to understand the viability of a PEV-transit network and establish best practices that optimize the consumer experience while reducing the carbon footprint of Los Angeles. The transportation sector alone accounts for 40 percent of greenhouse gas emissions in the State of Califor-
nia, six percent higher than the national average. Completion of this project and its potential as a major transit component will further reduce priority air pollutants and greenhouse gas emissions in the City and County of Los Angeles in California. “We are looking forward to the success of this pilot effort, which will encourage drivers of plug-in electric vehicles to use Metro while charging their vehicles at our transit stations,” said Metro Board Chair and Los Angeles County Supervisor Don Knabe. “At Metro we demonstrate best practices in sustainability with over 2,500 clean air buses along with a commitment in building all new transit facilities to LEED standards. This project is another example of how Metro is protecting the environment.” EV infrastructure will be integrated at strategic points at the end of the system, such as Canoga and Sierra Madre, as well as at heavy traffic locations such as Union Station and Universal City. One objective of the study is to
understand if the integration of EV charging solutions into Metro’s system will enhance the transit experience for patrons and attract others to consider charge and ride in their daily commutes. “This is the first study of its kind to analyze the integration of EV solutions into a transit network,” said Jordan Ramer, CEO of EV Connect. “The data procured from this study will establish industry benchmarks on charge and ride commuters which will help shape the future of multi modal transportation.” For more information please visit www.metro.net.
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Rome Technologies Now Integrates with PMCLogic
Rome Technologies has announced a new capability with PMCLogic and Rome’s CompleteShop 2011 management software. PMCLogic is a management tool designed to easily and accurately calculate the amount of paint and materials used to repair and refinish a vehicle in order to return it to pre-accident condition. Information generated from this program can be used to better manage paint and material inventory and purchasing while providing accurate job costing for each vehicle repaired. The integration also allows shops to create a paint and material estimate and invoice. Scott Rome, President of Rome Technologies said, “Having PMCLogic’s paint information and associated products cost feed directly into CompleteShop provides collision repair facilities with accurate detailed information that can be used to justify these expenses to their customers and the insurance providers.” “The integration with Rome brings PMCLogic to the heart of the collision repair industry; giving shops the information they need to better manage their resources and inventory,” said ComputerLogic’s CEO, Rick Palmer.
Sun Devil Auto Kicks Off Third Annual Toys For Tots Drive Throughout Arizona, Nevada, and Texas
On Monday, November 1, Deb Hughes, Sun Devil Auto Toys for Tots team leader, began rallying employees and vendors to donate money, gifts & toys for the US Marine Corps Reserve Toys for Tots Program again this year. On December 1, collection bins will be placed inside each of the 21 Sun Devil Auto valley locations. The team expects to collect much more for the charity and will promote this campaign through December 15th. Last holiday season Sun Devil Auto, an Arizona auto-repair company, delivered a dozen bicycles and many more dozens of toys for needy valley children to the Arizona US Marine Corps Reserve Toys for Tots Program. This year they expect to deliver even more through additional in-store special events and cross-promotion focusing on their charity work. When asked why she got involved with Toys for Tots, Ms. Hughes replied, “Because this is what the holidays are all about. Every child should wake up on Christmas morning to the surprise that Santa did visit and he brought something special just for them!” Throughout the year families and churches make a list. They ask
for certain things that their children need (and want). The US Marine Corps Reserve collects all kinds of toys and delivers them to these churches before the Christmas holiday. Sun Devil Auto is proud to be part of this effort will continue to be a supporter of various children’s charities throughout the year. Over the 60 years of the U.S. Marine Corps Reserve Toys for Tots Program, Marines have distributed more than 332.5 million toys to 158.7 million needy children. This charitable endeavor has made U.S. Marines the unchallenged leaders in looking after needy children at Christmas. Over its 14 year life span, the Marine Toys for Tots Foundation has supplemented local toy collections with more than 55.5 million toys valued at more than $284 million; plus has provided promotion and support materials valued at over $3.2 million. About Sun Devil Auto: Sun Devil Auto is an Arizona-grown, familyowned and operated auto-repair company. Established in 1978, the company has successfully established an Arizona presence with 21 locations and recently has expanded into the NV and TX markets.
6 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 7
Midterm Elections: Pro-shop CT Senator and Pro-shop CDI Commissioner Connecticut Attorney General Richard Blumenthal (D), known in Connecticut for his outspoken support of the Auto Body Association of Connecticut in opposition to steering and insurance company excesses, was successful in his bid for the one Connecticut Senate seat open in this year’s midterm elections. Blumenthal defeated World Wrestling CEO Linda McMahon (R), with about 54% of the vote. Blumenthal is known for his work with local auto dealerships during large automakers’ downsizing efforts in the last few years. He has worked to enforce a Connecticut state law that provides “protection to dealers terminated without good cause” and provide arbitration rights to terminated Richard Blumenthal dealerships. More information about Blumenthal’s past in relation to collision repair can be found on the ABAC’s
website at abaconn.com, or on Blumenthal’s campaign website at richardblumenthal.com. November’s nationwide midterm Elections also had a lot of states’ Insurance Commissioner and Attorney General posts up for election, possibly affecting legislation pertaining to insurers and the collision repair industry.
Dave Jones Elected in California Assemblyman Dave Jones (D-Sacramento) defeated Assemblyman Mike Villines (R-Clovis) in the race for state insurance commissioner. The post was one of only two statewide offices held by Republicans heading into election day. Villines received a $2.2-million boost from the insurDave Jones ance industry, which cut television spots in his favor. Jones had strong backing from state trial lawyers and labor unions. Jones de-
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feated his Assembly colleague Hector De La Torre (D-South Gate) in the June primary. The state insurance commissioner has been an elected office since 1990. It’s arguably the most powerful regulator in the state, overseeing the state Department of Insurance and monitoring the actions of the $100-plus billion insurance industry in California. Automobile, homeowners and individual healthcare insurance policies are regulated by the department.
Montana Shop Owner Elected Montana shop owner Max Yates won election to that state’s House of Representatives. As Past President of the Montana Collision Repair Specialists, Max is still very involved with the association and its legislative activities. He also serves on the Society of Collision Repair Specialists Legislative Committee. Growing up in Butte, Yates has deep connections in Montana. After the election, Yates said “We have some very important decisions to
make about the future of our state and country. I am not looking to start a career or make a living in politics. I ran for State Representative because I want to improve our state government by sharing my experiences as a small business owner, a taxpayer and most importantly, as a father. I want to keep Montana as the great place that it is and make sure our children have more, not less opportunity than we had. I am humbled and honored by the outcome of this election. Now there is a new kind of work to begin. I am eager to do the best I can do to proudly represent Butte.” Max and his wife Lisa have built their Yates Body Shop over the past 28 years into a dynamic business with more than 20 employees. Auto Dealers Elected Nationally, three Republican auto dealers defeated Democratic incumbents to win election to the U.S. House of Representatives. They were Mike Kelly of Pennsylvania, James Renacci of Ohio and Scott Rigell of Virginia.
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Nevada DMV Verification Sometimes Fines Innocent Drivers Properly insured Nevada drivers are getting notices from the Department of Motor Vehicles asking them to verify they have car insurance, and some have then been told to pay a $250 fine even though they say their insurance coverage never lapsed according to reports made by the Reno Gazette-Journal. “It’s been going on for months,” said Gene Gardella, a Reno insurance agent. “It’s been exasperating. People are getting mad at us, but our hands are tied.” For some customers, he said, dealing with the DMV’s new insurance verification system has been “a nightmare, a meat grinder.” In March, the DMV switched to a system called Liability Insurance Validated Electronically (LIVE), which is linked through the Internet to some insurance firms. Insurance agents said the system works well when a company also has its data available on the Internet because the computers can communicate with each other instantly. But problems have cropped up when firms have to send verification information
to the DMV in some other electronic form. Similar problems occurred in 1997 and in 2003 when DMV computer systems couldn’t keep up with verification demand. This time, the system is usually fast but is prone to other problems, insurance agents said. Not all of the about 300 insurance companies that cover Nevada drivers have Internet-based systems. Firms that aren’t online still have to send data to the DMV about once a week. The DMV then checks the vehicle registrations against the insurance data on driver policies. Most mismatches occur when a customer switches from one company to another, agents said, or when the vehicle registrations have one version of a person’s name, such as “John Smith,” but the insurance policy is made out to another version of the name, such as “John Smith Jr.” or “John L. Smith.” DMV spokesman Tom Jacobs said problems often occur when one company terminates a policy and the company that subsequently insures the driver doesn’t quickly notify the
agency that he or she remains insured. He said name inconsistencies also cause mismatches in the data. He said DMV officials and members of the Nevada Insurance Council, a trade group, are working to educate drivers and companies about the requirements of the new verification system. He said the companies and the DMV usually can resolve problems when drivers are wrongly accused of letting their insurance lapse. “We are having some challenges,” said Gary Bishop, past president of the council. “There is a fairly lengthy list of things that create a mismatch.” He said his agency gets about “10 to 20 calls a day” from clients who have received the verification postcards. “We can usually tell them how to fill out the information (on the DMV website) to avoid further headaches,” Bishop said. “In some cases, they may have to change the registration names to match the insurance.” Donna Fisher-Brown, spokeswoman for State Farm Insurance in Las Vegas, said the LIVE system has been an improvement for her cus-
tomers because State Farm has an Internet data system that links instantly to the DMV. “There have been some issues, but it hasn’t been a big problem for us,” she said. “I know the system is having some growing pains; it’s still a work in progress.” Jacobs said his office is starting case files on complaints to resolve issues, see what went wrong and determine how problems can be avoided. “Often (errors are made) by the companies, or the motorists, or sometimes it’s us,” he said. “We’re working to solve anything that’s brought to our attention.”
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Capital Original Wheels Celebrates 55 Years of Business in Los Angeles It all started in Los Angeles with two hot rod enthusiasts still in high school; Mike Huniu and his cousin “Fast” Eddie Levy. Their shared auto shop class was about the only thing keeping them in school. It was very likely that the only reason they even graduated was that they worked on the Principal’s car. They did their work in Mike’s father’s garage behind his house. When it began to spill out onto the lawn, they were told to take their hobby elsewhere. By this time they had graduated high school and had saved enough money to go into business together.
It was in the early 1950’s when they bought a service station on the corner of 51st Street and Hoover. After a few more years of fixing and racing cars, they decided that they liked tearing cars apart better than putting them together. Mike’s mother-in-law found an existing business for sale listed in the newspaper, called Joe’s Auto Wrecking. She didn’t care for the term “Junkyard”, but knew that this was exactly what Mike and Eddie were looking for. The business was located on South Figueroa, in the small town of Gardena. The year was 1955, Mike and Eddie named their newly acquired business Capital Auto Wrecking & Used Cars, Inc., or simply: Capital. In 1981, Mike and Eddie decided they needed a hand and it would be great to bring in a family member. Enter Mike’s son Norman. Norman was not your typical college boy, he was also a businessman. While attending business classes at Long Beach State University, he ran a business selling ladies clothing out of four vans. After graduating with a bachelor’s degree in business administration, he went to work at Nordstrom Department Store as the manager of the shoe department. Norman was not keen on a career at Nordstrom, finding business attire much
too uncomfortable. He decided that working long hours, getting his hands dirty and making a little money was worth the risk of changing his career. Norman spent his first four years at Capital diversifying and expanding the existing business. It was around this time that car manufacturers began using more specialized wheels to “dress up” their vehicles. This new phenomenon, along with the industry shift from rear to front wheel drive vehicles, created a large demand for wheels since the old style wheels would not fit on the new cars. As the years passed Capital began to look more like a wheel business than a used auto parts business. “Fast” Eddie retired in 1986, and Mike and Norman bought his share of the company. Suddenly, the EPA was breathing down their necks. “They gave us 30 days to get rid of a two story pile of motors, and clean up the dirt,” Norman said. “I thought it was a great idea. It was something I knew we wanted to do, but we needed the incentive of the EPA to go through with it and that is what we did.” So away went the motor and transmission piles, the contaminated dirt and all else until we met the EPA’s requirements. Next came major organization. Capital installed a computerized inventory and billing system. They got the latest in computerized parts locating systems and networks as well as the traditional wrecking yard hotlines for locating parts not in stock. They also purchase total loss or wrecked vehicles. They carry suspension and body parts as well as engines and transmissions. In 1988 Norman’s father Mike, and business partner passed away. This left 29 year old Norman in charge of a growing enterprise. He continually refocused Capital’s goals and objectives, realizing the increasing demand for original equipment wheels. Unable to accomplish this alone, Norman searched for great managers and assembled an energetic sales team. Today Capital has one of the most qualified and knowledgeable sales staff in the industry. As the years have passed, Capital Auto Wrecking & Used Cars, Inc. has become better known as Capital Original Wheels, or simply Capital
10 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Wheels. They now proudly proclaim that most of our business comes from the O.E.M wheel industry. Capital sells new, used and “take off” wheelsthat is wheels that are used but are in
almost new condition, in addition to reconditioned wheels or remanufactured wheels. They also manufacture and sell OEM reproduction or replicas wheels and center caps. Capital not only sells wheels but of course buys wheels and wheelcovers, in fact after exhibiting at their first SEMA show over a decade ago it seemed like everyone wanted to sell their take off wheels to Capital. To address this facet
Capital has trained personnel who specializes in the buying, brokering and selling of OEM take-off or over stock steel wheels, alloy wheels and wheel covers. Capital is committed to offering fair and competitive pricing for take off wheels. They also have a wheel buyer who can go out and give you a quote for your steel and alloy wheels as well as hub caps and wheel covers. Capital has seen their business through expansion into wheel repair and refinishing. To that end, they built a state of the art repair facility utilizing the latest in wheel repair technology. They can straighten wheels from simple, minor bends due to potholes or curb scratches, to welding from more serious damage, specializing in welding cracks. They do in house refacing of wheels with their digitized C.N.C. lathe which actually re-cuts the face of the wheel to return it to showroom condition. Finally, Capital See Capital, Page 15
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San Juan Capistrano Offers $5M Incentive to Auto Dealership Trying to keep an auto showroom and the sales tax revenues that come with it in town, San Juan Capistrano’s Redevelopment Agency will pay its largest incentive to date—$5 million —to an auto group for taking over and operating a dealership that is set to shutter by the end of the year according to the Orange County Register. Capistrano Ford will end up being operated at its current location by the Tuttle-Click Automotive Group and then will move by March or April to a vacant former Nissan and Dodge/Jeep dealerships location at 33375 and 33235 Camino Capistrano under a new name. The one-time Dodge/Jeep dealership will house a Ford/Lincoln dealership starting next year due to a $5 million incentive payment by San Juan Capistrano’s Redevelopment Agency. Since 2004, five new car dealerships have closed their doors in San Juan Capistrano, and the sixth would be Capistrano Ford, its closure resulting from the expansion of Costco, according to a city report. Tuttle-Click has obtained exclusive rights to buy the franchise, the city said. The current owner has no plans to relocate or keep the business in this city. On October 20, the City Council acting as the Redevelopment Agency, voted 4-1 in favor of a 27-year deal with Tuttle-Click, agreeing to forward $3 million within five business days if the dealership opens and another $2 million over time, with payments based on a sales-tax received formula. With virtually no one other than the automotive group representatives left in the audience at the deciding council meeting, following a nearly a six-hour debate, Mayor Lon Uso was the lone dissenting voice against the incentive, saying that the amount was too high. “I think we’re giving you guys way too much money,” he said. “We’re setting a precedent through our Redevelopment Agency that I think is unsustainable with other auto dealerships. It’s going to be difficult to keep doing this.” Fellow council members felt that in offering the incentive the agency was fulfilling its role—fill blighted
vacant lots and save about 100 fulland part-time jobs in the process. “This is what redevelopment agencies are supposed to do,” Councilman Tom Hribar said. “The jobs issue is as important as anything. This is what we at a local level can do to preserve jobs.”
Councilman Mark Nielsen characterized the deal as being “right at the edge” from a financial standpoint. “I guess I look at it as, one, it’s a unique situation because of the importance of maintaining the dealership at this location and, two, at this particular location we have true blight,” he said. The two lots that Tuttle-Click will occupy have been vacant since 2008 and 2009. The agency will fund the first $3 million of the incentive using bond proceeds from its business retention/economic development allocation. The remaining $2 million is considered an agency debt and will be funded annually via tax increment proceeds, the city said. “This is the largest assistance we have offered to a dealership,” said Cindy Russell, the city’s chief financial officer, before the agency action on October 20. The 27-year agreement puts a dealership in the now vacant lots and is expected to fetch the city $17 million in sales tax dollars over that period, but with $5 million paid out as incentive to Tuttle-Click, the net gain will be $12 million, she said. The city will retain all sales tax revenue generated by the dealership, as opposed to passing a portion of it to the agency for payments under the agreement, according to the city report.
12 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
The break even point of the agreement will be reached in about 12½ years, Russell said. “You create a strong sales tax base in addition to retaining the dealership,” she said. “We’d go down to four (dealers) and it’d be more difficult for the existing stores to remain” if the deal were not struck. For their part, representatives for Tuttle-Click said they would not be able to come to San Juan Capistrano without the incentive. “Couldn’t afford it,” said Chris Cotter, president of Tuttle-Click Automotive Group, which operates dealerships in California and Arizona, following the agency decision. When asked if Tuttle-Click had ever received this kind of an incentive anywhere else, Cotter replied: “Off the top of my head, I can’t give you an answer for that one without going back.” While he could not say which incentive had come close to the one San Juan Capistrano’s deal offers, Cotter, who has been with the company for about 35 years, acknowl-
edged that the city’s incentive was the highest the company had received. Cotter said the Ford franchise at the new location would be coupled with a Lincoln franchise; an auto body shop also will be included. The downturn in the automotive industry has resulted in the loss of approximately 40 percent of retail auto sales revenue to the city, according to the city report. “The closure of another dealership will further weaken the competitiveness of San Juan Capistrano as an auto sales destination,” the city report said. Orange Coast Chrysler is on a separate track, Russell said, in obtaining permits from the city Planning Commission to open to add a new dealership in town. That, too, would be on Camino Capistrano, an automobile showroom row of sorts fronting the I-5 freeway. In the next month or so, the terms of the incentive Orange Coast Chrysler might get from the Redevelopment Agency should be hammered out.
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CAA East Bay Hosts Toys for Tots Truck Customizing Competition Ten East Bay body shops and auto repair school programs entered the The California Autobody Associacompetition. Each was given an idention’s East Bay chapter hosted its sigtical Nylint die-cast truck to modify nature 13th annual Toys for Tots and customize for the contest. Model Truck Customizing CompetiFirst place went to Crockett’s Pretion on Nov. 16 at the Blackhawk mier Auto Body in Pinole. Second Auto Museum in Danville, CA. place went to the College of Alameda in Alameda with a Coca-Cola truck, and third place was awarded to Mike’s Auto Body in Concord for a modified Budweiser truck/hot rod. The People’s Choice award also went to Crockett’s Premier Auto Body Service for “The InTimagator” (named after SF Giants pitcher Tim Lincecum) its San Francisco Championship BBQ truck, complete with smoke machine and grilled baseballs The first place winner at the 13th annual Toys for Tots representing all of the teams Model Truck Customizing Competition on Nov. 16 at the that lost in the playoffs on the Blackhawk Auto Museum in Danville, Calif. was called Giant’s road to the World Se“The InTimagator”, submitted by Crockett’s Premier Auto Body in Pinole, Calif. ries. The Educational Best-ofMore than 300 CAA members Class award, given to the best truck and friends attended the dinner, raffle, entered by an educational institution, and truck competition, which raised went to the College of Alameda. money for Toys for Tots and Bridge Louie Bain, a technician at Crockett’s Intervention Services. The latter is an Premier Auto Body was the prime creorganization that was established in ator and designer of the winning cus1999 to address the growing need for tomized truck. effective intervention with at-risk youth who are experiencing the negative cycle of current destructive youth culture. “The purpose of the agency is to create ‘Bridges of Opportunity’ to youth, their families and the community,” Kathy Second place was designed and built by the College of Alameda Mello, owner of T.G.I.F. Body Shop in Fremont said. “We put over more than 60 hours “Through collaboration with individof time building and painting the uals, local businesses, professionals, truck,” he said. “We wanted to play and various agencies, the program tribute to our championship team and seeks to provide a channel of innova- this was our way of doing it. We’re tive networks which will enhance the thrilled to have the winning truck and overall intervention process.” to play a part in raising money for a by Ed Attanasio
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good cause. We’d also like to thank top entries from the schools inBasil Platt from Concord donated his volved.” time pin striping the ball, spoiler, Mike Govette, branch manager around the flames and the lettering.” for Finish Master in Concord, has The CAA East Bay chapter also been organizing the event for 13 years gave several educational institutions and said he was very pleased with the money for their auto repair programs. turnout this year. Contra Costa College, Mission Valley ROP, and the College of Alameda all received grants from the CAA East Bay chapter. “It’s encouraging when organizations like CAA raise funds for us for scholarships and supplies,” Peter Third place was submitted by Mike’s Auto Body in Concord, Calif. Lock, department chair of the auto technician program “I’m so pleased to keep this event at Contra Costa College, said. “The going year after year with great attenCAA East Bay chapter has always dance like tonight,” Govette said. been an outstanding supporter of our “Reaching out and helping people in program, and we greatly appreciate it. need is a big part of what we’re doing The students always get into design- with this organization and so many ing and building these model trucks, body shops and schools get involved an every year we see more and more every year, which is so amazing!”
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can color match, paint or powdercoat your wheels for long lasting durability. They also offer free pick up and delivery to Orange County, Los Angeles and the Valley daily. Capital also offers sandblasting and powder coating of small parts as well as wheels. Because they do this right on their premises, the turn around time is very quick. Once the sandblasting is done, they then powder coat the parts or wheels, chosen from their large selection of colors. Each piece gets power coated, then baked for a long lasting, durable finish. Capital’s website www.capitalwheels.com is user friendly and can be used as an online reference guide. Capital is constantly adding new wheels, interchanges and update daily. Check them out online and find how their photos and reference numbers will make your wheel identifying easier. They individually inventory each alloy wheel so that at a touch of a button they can tell customers how many wheels are in stock and in what condi-
tion. They can also search and locate wheels not in stock using our network of OEM wheel sources, suppliers and auto recyclers. Capital also chrome plates wheels. Currently stocking hundreds of chrome plated alloy wheels for immediate shipping and exchange. They offer special programs for chroming your aftermarket or OEM alloys and also repairing and rechroming. Capital’s chrome wheel division has now grown to include chrome plating of motorcycle wheels. Their turn around time is the quickest in the business. Norman has continued the vision of his father: “The importance of customer satisfaction, goal setting, looking to the future, and striving for perfection”. All while providing fair, competitive pricing and superior customer satisfaction.” Capital has become one of the leading companies in the O.E.M. wheel and auto dismantling industry in Southern California. Contact Capital at 1-800-463–RIMS. 15326 S. Figueroa Street Gardena, Ca. 90248 323/321-1234 323/321-9192 FAX
Mini Cooper Rolls into former Bauer Jaguar
Tustin-based Coreland Cos. has brokered the $5.75 million sale of the former Bauer Jaguar dealership to Santa Ana Properties II, which plans to move its Mini Cooper Auto sales operation into the 3.3-acre site, according to the OC Metro. “In addition to excellent freeway visibility, the property enjoys a prime up-front position in the Santa Ana Auto Mall, which appealed to the buyer who was looking to purchase a high-profile facility for their dealership,” said Bryan Bauer, who represented the seller. The property, at 1455 Auto Mall Drive, is adjacent to the 55 Freeway at Edinger. The 35,000-square-food dealership was built in 1998. The Bauer Jaguar dealership had been owned by controversial British multinational Pendragon PLC, which acquired Bauer in 2000 during the first phase of its U.S. expansion, but walked away from their lease in January 2009. Pendragon sustained major losses during the period of ownership and was forced to sell or walk away from many of their U.S.-based dealerships.
New Hohl Dealerships Open in Carson City
Michael Hohl Automotive held a grand opening celebration October 21 for its new Honda and Subaru dealerships in Carson City, NV, as covered by the Nevada Appeal. The event ran 4 to 6 p.m. and included activities throughout the weekend. “We’re a third generation Nevada family-owned automotive dealership and we’re proud to bring this state-ofthe-art facility to Carson City,” said Matthew Hohl, general manager of Michael Hohl Honda and Michael Hohl Subaru. The Michael Hohl Honda and Subaru dealerships, at 2800 and 2910 S. Carson St., are a $15 million project that spans seven acres. They opened in June after breaking ground in 2009. On October 23 and 24, the dealerships hosted education events for parents, including the Managing Information on Lost Kids program, which is a collaboration between Farmers Insurance and the National Center for Missing and Exploited Children. Michael Hohl Automotive also operates the Chevrolet, Buick, GMC, Cadillac and Michael Hohl RV dealerships in Carson City.
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More Than 50 Vehicle Debuts at the LA Auto Show Display Renewed Vitality Not Seen in Many Years The 2010 LA Auto Show opened Nov. 17–18 for the press and will run from November 19–28 for the public. As the LA Auto Show grows in importance on the global stage, so does the number of debuts, showing the resurgence of the industry in producing new vehicles to entice consumers. The 2010 show hosted 20 world debuts and more than 30 North American debuts across virtually all vehicle categories. The show opened amidst improved auto sales and a growing sense of optimism that is evident from the increased number of debuts, more participating manufacturers and larger, more elaborate exhibits. Of the 20 world debuts, several have been already announced, including Nissan’s three world debuts; the completely redesigned Quest minivan, the Murano Cross Cabriolet crossover convertible concept, and a sedan concept called the Ellure. Land Rover unveiled its all-new, 4-door Range Rover Evoque and SAAB will showcase its only crossover, the 9-4X. KIA unveiled its first hybrid, the Optima sedan. Volkswagen showed its new Eos and Chrysler, Dodge and Jeep plan to reveal a handful of products highlighted by the new Chrysler 200 sedan and convertible. The shows 30-plus North American debuts included the completely redesigned Hyundai Elantra, which will be the next high-volume vehicle made at its Montgomery, Alabama factory. Audi brought its all-new A7 Sportback, representing a new market segment for the brand, and BMW featured its redesigned X3 crossover. Porsche showcased its new 911 Carrera GTS as well as its 911 Speedster. Lotus, known for specialty sports cars, is completely relaunching its brand and will show five new concept sports cars that outline its future for years to come. Fiat is reentering the U.S. market after a 27-year hiatus and will feature its new compact vehicle, the Fiat 500– Cinquecento, specifically designed for North America. This year’s show also marks the historic arrival of the modern electric car era. After years of anticipation, consumers can finally purchase massproduced electric vehicles complete with factory warranties.
Featuring more than a dozen electric drive vehicles arriving in the near future, including of course Chevrolet’s range-extended electric Volt and Nissan’s all-battery electric Leaf. Los Angeles will be one of the first U.S. markets to receive these two vehicles in November and December of this year and the LA Auto Show was the ideal venue to learn about EV ownership. The North American, production version of Mitsubishi’s i-MiEV will also make its official debut at the show. The all-electric compact car will get a new name, a wider stance and a variety of new features to make it more attractive to U.S. buyers.
16 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Toyota’s RAV4 EV will use battery technology developed with Tesla and is scheduled to hit the market in 2012. Other production electric vehicles at the show range from luxury sports cars such as the Fisker Karma to economy sedans like that from Coda Automotive. The LA Auto Show will also showcase at least 15 concept vehicles ranging from futuristic design studies to realistic brand design directions. Mazda will debut its Shinari concept, which will serve as a basis for Mazda’s new design language in future production vehicles. Jaguar will unveil its C-X75 sports car capable of running purely on electric power for
about 68 miles per charge, and up to 560 miles with the use of an on-board power-generating system to extend its range. KIA brings its POP electric concept with its spaceship-like cabin and front-hinged doors and Audi displays its Quattro concept to mark the 30th birthday of Audi’s Quattro all-wheel drive system. Join the LA Auto Show online and get alerts at LAAutoShow.com.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 17
Mobility Given to Two Orange County Families Thanks to Recycled Rides Program FIX AUTO body shops, together with insurance companies Esurance and Automobile Club of Southern California, donated two refurbished cars to two local underprivileged families—both participants in the Kinship Center as part of a large national initiative known as Recycled Rides. The program, which is sponsored by the National Auto Body Council (NABC), is making sure 150 families and charities around the country receive reliable transportation this year. The local ceremony took place Monday, November 22, at 9600 Stewart and Gray Road in Downey, California. The first local recipient family is headed by Ann, a Buena Park resident and single mom and grandmother with two daughters. One is an adult with a daughter of her own. The other is a 16-year-old living at home. Ann is in the process of adopting her four-year-old granddaughter who has been exposed to significant neglect and abuse. As a result, Ann’s
granddaughter has developed significant emotional and behavioral problems which require intensive therapy. Ann works full time and does her best to meet her daughter’s and granddaughter’s needs. In addition, she has
been taking parenting classes to help her learn how to take care of a special needs child. Ann’s car is over ten years old and has consistently broken down over the last year. This has created a hardship on the family as Ann has had to miss various therapy appointments.
Being the sole supporter of her family, Ann does not have the resources to buy a reliable car, making the donated vehicle a true godsend. The second family receiving a vehicle is headed by Margarite and her husband, residents of Santa Ana who have been raising Margarite’s five grandchildren for over five years, starting when the youngest was six weeks old. The birth parents of these children had a history of addiction and criminal behavior, resulting in all of the children entering the foster care system. Margarite did not want her grandchildren being separated into different foster homes, so she decided to take them into her own, with the help of the children’s aunt who also lives with them. Margarite has successfully adopted all—girls aged 6 and 13, and boys aged 7, 9, and 11. Some of the children have special needs related to their history of abuse and neglect so there are many therapy appointments and activities on their schedule. The
family currently owns a Taurus, which does not fit this family of eight. Because Recycled Rides specializes in refurbishing mini-vans and other family-sized vehicles, help will soon be on the way for Margarite. Transportation is crucial to these loving, giving, growing families. They have been touched by hardships, but blessed with the opportunity to make a great difference. Help in the form of Recycled Rides and the Kinship Center will give them the opportunity to make their lives better. “FIX AUTO is proud to have helped Kinship Center families receive valuable transportation the past three years,” states Rick Halopoff, owner of FIX AUTO Downey, operated by Little John’s Bodyworks. “I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry.” For more information please visit www.recycledrides.org.
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18 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
ALL OEM Information
with Dan Espersen and Jeffrey Webster
Got Information?
When making repairs, collision prowhile operating a profitable shop given fessionals traditionally call on experitoday’s market realities? Efficiency is ence, training and generally accepted an absolute must. And, the key to effiwith Dan Espersen practices to deliver a vehicle that satciency is accurate information. Not just isfies the customer, the insurer and any information—OE information. themselves. That formula worked well After all, the factory built the cars, for many years. Cars were pretty simtrucks, vans and SUVs, and the factory ple and repairs were relatively straightknows how they need to be repaired. forward back in the “old days.” So From sophisticated collision avoidwith what has changed? JustMike about Causey everyance systems, to new generation conthing: the vehicles, customer expectastruction materials to hybrid technology, tions, economic pressures and, last but it seems as if vehicles are becoming not least, insurer requirements. more complex by the minute. Mild steel, What has not changed is the need high-strength steel, ultra high-strength to repair vehicles to their safe, pre-colsteel, aluminum, carbon fiber, advanced with lision condition. As Mike Dennis Causey Dean plastics—who knows what the next Gamba of Cranston Collision Center model year will bring. How do you keep in Cranston, Rhode Island, puts it, up? With OE repair information! “For me, it’s all about knowing that we OE repair information benefits are doing the job right and that the vethe estimator, production manager, hicle is safe when it leaves here. I have parts manager, body technician, mewith Janet a child and I want to know thatChaney any chanical technician and the person rechild is safe in a vehicle we repair.” sponsible for all of it, the general So, how do you continue to adhere manager. OE information allows levto high standards of safety and quality els of efficiency and accuracy that can-
ALL OEM Information
Dan Espersen is ALLDATA® CollisionSM Program Manager. Dan is a Gold Pin Member of the Collision Industry Conference (CIC) and holds an AA Degree in Automotive Technology. He has 17 years of experience in the collision industry and 17 years of experience in the automotive industry.
not be duplicated by any other source. A system such as ALLDATA® CollisionSM S3500 provides a precise blueprint for sectioning, welding, panel replacement, mechanical repairs,
formation on the vehicles you see coming through your shop every day. Here are a few examples of the kind of OE information available in ALLDATA Collision S3500:
The Right Cause The Right Cause
2011 Kia® Sorento® and 2009 Kia Borrego®. Caution during Airbag Control Unit Servicing
electronic system reset procedures, hybrid precautions, detailed upper body dimensions and more. And, don’t forget manufacturers’ technical service bulletins (TSBs), which alert you to known problems that may have existed prior to a collision. ALLDATA Collision S3500 is a single source for in-
Automaker Actions and Announcements
ALL OEM Information
Always refer to ALLDATA Collision for safety procedures, identification of material types, recommended refinish materials, and removal and installation procedures. Always refer to the vehicle manufacturer for questions relating to applicable or non-applicable warranty See Got Information?, Page 21
with Tom McGee
ALL OEM Information with Tom McGee
Shop Showcase with Ed Attanasio
Shop Showcase with Ed Attanasio
Say What?! Say What?! www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 19
Shop Showcase with Erica Schroeder
Erica Schroeder is a writer and editorial assistant for Autobody News in Oceanside, CA. She can be reached at eschroeder@autobodynews.com.
Three Autobody News Collisions Illustrate Balancing Act Between DRPs and Shops
count on the repairs but they are scrurepair shop within their network is a valued partnership, it is a strained one. tinized on legal issues, including Lots of repair shops have come to rely on one or two insurers to send them their customers through their network of ‘trusted shops,’ but feelings on behalf of collision repairers on whether or not this relationship is worth the trouble are mixed. The tradeoff for a collision repairer in a DRP is familiar and simple in ..but came back to life courtesy of World Auto Body principle. Although the shop will take a steering, and sometimes get pushback dollars-per-job cut, in thefrom shops. Learning to work with inory they have more cussurers’ standards and requirements tomers coming in, as has become a necessary obligation for referred by the insurer ad- DRP shops, but many don’t like havvising customers who ing an insurer directing them as to don’t have a preferred what procedures they have to follow Christina’s car suffered a “double-reverse” rear-end impact... See Three Collisions, Page 22 shop. Insurers get a dis-
ence this time. Both of our sales account managers, Christina Shubert and Joe Momber, also participated in our ‘collision cluster.’ with John Yoswick Although the damages occurred in different scenarios and were of different severity, each experience provided a first-hand look at the DRP model and its prevalence in modern collision repair. What they underscored was that, although the relationChristina’s choice: World AutoEd BodyAttanasio in with ship between an insurer and a direct Encinitas, CA
Industry Insight
Shop Showcase
Autobody News was under a collision cloud in September this year. Three of our employees, myself included, required the immediate services of collision repair shops and insurers in three unrelated accidents in the Oceanside area of Southern California. While all of us in the company experience collision repair in the abstract as a course of reporting on the industry, we each got a real world experi-
20 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
and Sorento (XM) Airbag Control Unit (ACU) related diagnosis/repair/replacement to prevent accidental airbag deployment during servicing. As an repair information. added safety feature, a Rollover SenThis bulletin describes precausor has been incorporated into the Bortions necessary during Borrego (HM) rego (HM) and Sorento (XM) ACUs. This sensor determines if a rollover incident is imminent, and if improperly and inadvertently triggered during vehicle repairs may deploy various safety features (side and curtain airbags as well as seat belt pretensioners). 2009 Ford® F-150® Front Structure Material Identification As a result, the preContinued from Page 19
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Continued from Page 20
Three Collisions
in order to be a part of the direct repair relationship. Christina’s damage was caused when she and another vehicle backed into each other in a parking lot. Her
Erica’s car took a hit to the rear-end
claim was handled through her insurer, Mercury Insurance. She took her ‘06 Honda Civic to World Auto Body in Encinitas, CA, which is part of Mercury’s CARS network of customer authorized repair shops. Mercury receives a $14/hr labor rate discount and a parts discount only when they recommend their customers go to World Auto Body, according to owner Reily Wilder. One of the other benefits for World Auto Body when Mercury customers come in is the level of communication between the shop and
Erica’s car accident
Mercury. The customer does not have to be the middleman between insurer and repair shop when a DRP shop is used. Wilder said the shop uses Mitchell’s E-Claims Manager which allows information from repair shop to go directly to insurer without the claims adjuster having to make multiple visits to the shop. It is an easy way for collision repair shops to have their estimates quickly approved by insur-
ance adjusters and start making the repairs sooner. This also has added value for the customer, who not only doesn’t have to be the liaison for communication between the two, but also benefits from quicker repairs. “My insurance agent and the body shop communicated directly after I brought my car in,” said Christina, “They took pictures of my car and put them in the system, andshowed me the the estimation process on the computer screen that they were going through for my insurer.” Christina consulted a couple of shops before choosing World Auto Body and saw dramatic differences between the estimation process between shops where she had estimates taken at that were not part of Mercury’s CARS program. “One place didn’t even open my trunk,” said Christina, “They didn’t walk me through their estimation process at all.” As for me (Erica), I took my battered ‘08 Toyota Yaris to Len’s Autobody in Oceanside, CA, after I was rear ended by a heavier vehicle in traffic. I went through the other driver’s insurance (USAA), since they were at fault. Over the phone the USAA Claims Department told me I could choose any shop I would like to have my repairs done at. I chose Len’s because I had been there recently to do an interview and liked their shop and their staff. Len’s just happens to be a USAA direct repair shop—I would have taken my car there either way. Len’s offers a labor discount to USAA when customers come to Len’s through them, but USAA does require that Len’s use certain aftermarket cosmetic parts. In my case, USAA required that Len’s use an aftermarket rear bumper cover on my car. I was told by Body Shop Manager Alex Torres that if I wanted an OEM rear bumper cover, the difference in price would come out of my pocket. This is one of the negatives for customers in body shops having a direct repair relationship with an insurer.
22 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Len’s Autobody in Oceanside, CA
Our other Sales Manager, Joe Momber, had his car hit in the parking lot of his gym in what amounted to an early morning hit-and-run. The driver who hit his car bolted without leaving any information. Joe’s front bumper had been side-swiped and was hanging off the car. Joe took his ‘04 Dodge Stratus into Central Autobody Repair in Oceanside, CA, because he knew the owner, Sam. Joe decided not to go through his insurer since the assessed damages were under his $500 deductible. His estimate was prepared as a ‘cash’ transaction and Central Autobody offered a modest
discount to customers paying cash for their repairs. What we all learned is that there are a lot of good options for consumers out there and a lot of ways to get good results if you ask the right questions and consult the right people. And yes, we’re all still driving carefully.
World Auto Body 140 N Coast Highway 101 # A Encinitas, CA 92024-3227 (760) 753-0035 Worldautobody.com Len’s Autobody 510 Jones Road Oceanside, CA 92058-1218 (760) 757-7547 lensautobody.com
Central Autobody and Repair Shop 1702 South Coast Highway Oceanside, CA 92054-5320 (760) 722-2152
Chrysler Confirms $840 Million Investment in Kokomo, Indiana Plant
Ahead of a visit to its Kokomo, Ind., facilities by President Barack Obama and Vice President Joe Biden, Chrysler confirmed that it is planning to invest $843 million into its existing transmission manufacturing facilities in Kokomo for production of a new advanced front-wheel drive automatic transmission for future Chrysler Group vehicles. With this latest announcement, Chrysler’s total investment in U.S. fa-
cilities would climb to nearly $3 billion since June 2009. When combined with previously announced investments totaling $343 million in its Kokomo facilities, this would make Kokomo the recipient of the largest investment, $1.1 billion, in a single year in a single community, pending the Kokomo City Council’s approval of Chrysler Group’s tax abatement application on Dec. 13, 2010. The investment would fund the
installation of equipment and special tooling to modernize the Indiana Transmission Plants and the Kokomo Casting Plant. The project would extend the life of these manufacturing facilities and help retain nearly 2,250 jobs. Chrysler Group will be partnering with Friedrichshafen, Germany-based ZF Group on the next generation frontwheel drive transmission, which is making its designs and technology available to the Company and its Kokomo plants.
“For years, Kokomo has been at the center of our powertrain strategy and the potential of an additional investment reaffirms that position,” Sergio Marchionne, CEO of Chrysler, said in a statement. “When introduced, this new front-wheel drive transmission, along with the previously announced eight-speed transmission we will also produce in Kokomo, will transform our future products and position them as leaders in the marketplace.”
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 23
Kristen Felder INTERVIEW by Erica Schroeder
The site itself looks completely different now then it did when I first started it. I was fortunate enough to have phenomenal mentors to call and ask for advice when I was creating the site and even to eventually call and ask to join and create a page once it was done. It would not have launched so successfully without my mentors in the collision and insurance sides of the industry joining the site. It definitely grew by word of mouth after that. When it first got started, I remember thinking, ‘if people from both sides [of the industry] were willing to join, I had done something right in my career.’
ABN: You have a family background in collision repair, don’t you ? KF: I was born into this industry. My Dad owned a collision repair shop when I was growing up and I really spent my life in it. I worshipped my Dad, so I was in the shop every day watching him work. I did a little bit of everything to help once I got older; frame, body and paint, to name a few. Looking back I wasn’t that great of a technician, so I went to college and got a job working with State Farm Insurance in their marketing department. While working there my perspective on the insurance industry changed a lot, but I missed the people in the body shops. Car people will do anything for anybody—they’re really good people. That’s one thing I really enjoy about Collision Hub, it lets people see both sides of the industry.
ABN: Where do you see the relationship between social media and the collision repair industry in 5 to 10 years? Do you think it’s a long-lasting, valuable tool? KF: I think in 5 years we will see everything involved in the social media environment. Facebook, youtube, and twitter will become complete news sources and information sharing mediums. These sites promote friendship and respect and open up some channels for users. I think we will also see a lot more people plugged in this industry specifically. ABN: What are CollisionHub.com’s numbers when it comes to number of pages and traffic? KF: CollisionHub.com currently has about 3,000 personal pages in 22
countries. The pages break down to 54% body shops, 14% insurance and the rest are vendors and educators. As far as views, Collision Hub gets about 50,000 page views a month from about 13,000 individual IP addresses. Most of our traffic is organic; not a lot of people are coming to the site from a link on another site.
ABN: The last two years have been especially tough in the industry. What have your first two years been like for CollisionHub? Have there been any major problems or challenges? KF: It’s been hard. There have been some hard months. There are highs and lows with every business, but for Collision Hub the lows haven’t been so low recently.
ABN: What are Collision Hub’s goals business-wise 5 to 10 years down the road? KF: Overall we want to develop a community that is accepting and respectful of everyone in the industry, no matter if they’ve been a top-level CEO of a major body shop for 30 years or are just starting out as a technician. We want everyone to have an equal voice and equal footing and really create a community for this industry online. We want newcomers to the industry to have a place to share ideas and have them be heard, as well as a place for them to learn and gain industry mentors.
ABN: Tell us about your plans for Collision Hub TV. KF: I think that the size and scope of this industry isn’t really appreciated; what all we are involved with isn’t appreciated. Collision Hub TV just provides another way for people to see what goes on, to be there without having to buy a plane ticket. CH TV will give more stories a face. For example, one thing I’m hoping CH TV will be able to do is to help SkillsUSA winner Kayla Toncik be able to get enough exposure to get some more financial sponsorships for her WorldSkills event in 2011. Participants from the USA have to earn their own way to WorldSkills, unlike some participant from other countries whose ways are paid. Through CH TV people can see her, see her train and connect to her story. CH TV provides people with a way to see it, feel it and hear it; to be
24 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
more involved and plugged in. Collision Hub TV is the site’s number one driver right now.
ABN: What are some new features in the works at CollisionHub.com? KF: Well, there are quite a few things in the works, some more complete than others. First, there’s Collision Hub University, which will probably be launched in Q1 of 2011. Everyone right now is training driven and the industry wants more training, but it is expensive and time consuming for businesses to send their staff to training events and classes. So CH university would allow technicians to watch 5 to 10 minute videos to gain more technical knowledge. We’re working with some of the training organizations to set that up. We’re also working on a classifieds/auctioning section of Collision Hub, which will hopefully go live also in Q1 of 2011. This would be a marketplace where people could post job openings, for-sale items and jobs wanted posts. Also the Girl Scouts project Collision Hub did at
Cover Story
NACE this year was very successful, so we will be expanding on that in the coming months. We’re thinking of doing a Gear Heads Kids Car opportunity where the Girl Scouts can attend some classes and work regularly on projects to gain better knowledge about this industry. After the last Girl Scouts project we also have tossed around the idea of creating an 18 and under section of Collision Hub where people under 18-years-old can have a Collision Hub page and use it as a venue to learn more about this industry, but only be able to view certain, age appropriate content. We have also been experimenting with the idea of creating virtual trade shows. Collision Hub would provide a program where people can create avatars and visit virtual booths at any participating trade show. Then users can click on a booth and it will video call the physical booth where someone there will be able to answer questions and talk to them as if they were physically at the show. We’re thinking of trying this out See Kristen Felder, Page 43
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 25
26 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Chrysler West Business Center (WBC) Holds 2-Day Meeting in Las Vegas The Chrysler West Business Center (WBC) Service & Parts Business Conference was held November 1–2, at Bally’s Hotel in Las Vegas. The two day event was well at-
Guillermo Nava and Tony Walker
Mark Skinner and Susan McDaniel
tended by approximately 175 key Dealer Personnel attending from CA, AZ, NV, OR, WA, ID, AK, HI and Guam. The conference started on Monday with opening presentations by Pietro Gorlier, President and Chief Executive Officer MOPAR; Sunil Lahoti, WBC Service & Parts manager and Guest Speaker Randy Johnson, Car People marketing. Two days of breakout sessions covering a variety of topics followed. The conference topics seemed to resonate with the reenergized Chrysler dealers. “Having the opportunity to talk with the Mopar management team and viewing Chrysler’s 2011 new line really renewed my faith in the business. I came home
with 5 pages of notes and a laundry list of improvements that I want to implement in my department. I’m excited to get to work,” said Chris Brodeur, Parts Manager at Glenn
E. Thomas, Dodge-Chrysler-Jeep. The Monday night Vendor Fair featured 60 vendors and was well appreciated by the Service and Parts Managers.
(l to r) Barbie and Chris Brodeur and Joe Thomas, District Manager, WBC
(l to r) Walter Brada, Mark Skinner, John Emmons, Luke Moore and Rich Schott
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Service, Diagnostic and Mechanical NEWS
www.autobodynews.com
Detroit Sales Erosion 1997–2010 and Retailer Market Gains Western Edition
by Jim Lang, Lang Marketing
Foreign vehicles (imports and transplants) more than doubled their share of new car and light truck sales in the U.S. between 1997 and 2010. Over this 13-year span, foreign vehicles made more progress in expanding their new vehicle market share in the U.S. than they achieved in the previous 50 years. Foreign models captured 26.1% of 1997 new vehicle volume in the U.S., topping 28% of the 2000 market. Over the next five years, foreign cars and light trucks recorded steady growth in new vehicle share, climbing to 35% of the 2004 market. Then, foreign new vehicle share exploded. By 2007, foreign cars and light trucks accounted for 49% of new vehicle sales in the U.S. with their share soaring to 53% in 2008 and reaching an estimated 55% of the 2010 market.
Japanese Cars and Light Trucks Japanese models captured 37% of 2007 new car and light truck sales, and will account for an estimated 39% of the 2010 market. Growth of Japanese models would have been stronger had it not been for Toyota’s recent safety issues, which reduced Toyota’s 2010 sales share below its 2007 performance. Over the next several years, Japanese models will regain sales momentum and continue expanding their new vehicle share.
European Vehicles European vehicles, lead by German nameplates, captured 7% of 2007 light vehicle volume. European cars and light trucks are expected to capture 8% of the 2010 market. Not achieving the strong share growth projected for Japanese models over the coming years, European vehicles
CALIFORNIA • NEVADA • ARIZONA
will, nevertheless, steadily expand their U.S. new vehicle sales position. Korean Surge Hyundai, along with Kia, added dramatic punch to foreign vehicle share growth over the past 24 months. Rapidly adding dealerships, Korean nameplates will record nearly 20% sales growth during 2010, pushingup their market share more than twothirds from 2007. Covering a wide range of market niches, Korean vehicles will continue expanding their sales and market share, growing at a much faster pace than European or Japanese models. Chinese Entry Chinese nameplates will begin making a strong impact on the U.S. new vehicle market in five to seven years. Their growth will be rapid in the U.S., particularly if acquiring another carmaker is part of a Chinese market entry strategy, or Chinese vehicles are sold through an existing dealer network.
2021 New Vehicle Sales Lang Marketing expects foreign vehicles (imports and transplants) to account for at least two-thirds of new car and light truck 2021 sales in the U.S. This projection allocates only 4% of 2021 sales to Chinese vehicles. If Chinese models exceed this estimate, foreign vehicle share could rise higher than two-thirds by 2021.
Aftermarket Impact The aftermarket impact of this new vehicle sales trend will be dramatic and irreversible. By 2021, foreign models will top 60% of vehicles in the so-called age sweet spot for vehicle repair (five to ten years).
28 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Surging foreign vehicle aftermarket product share will have a revolutionary impact on product brands sold in the aftermarket, how products are distributed, as well as where parts and service are purchased.
Retailer Commercial Market Gains A recent in-house study by Lang Marketing found Retailers are making gains in the commercial (wholesale) market against several leading Programmed Jobber groups. Retailers are getting high marks from Installers on a number of key competitive issues in several markets studied. Each of the battleground cities studied by Lang Marketing contains AutoZone, Advance, and O’Reilly stores as well as NAPA and CARQUEST Jobbers. While it is not possible to generalize with great confidence from this in-house study to the commercial market nationwide, some major findings are significant: Retailers are improving commercial services, Service Stations and Garages are willing to explore alternative buying sources, and a large portion of Installer volume is “in play”. Convenience The growing convenience of buying from Retailers cannot be underestimated as a major reason they are gaining commercial business. This convenience reflects several factors: Retailers (at least in the cities studied) have inventories to support Installer business, Retailers have delivery capabilities which meet Installer expectations, and, because of their growing numbers, Retailers often are closer to Installers than are Programmed Jobbers. More “Commercialized” Retailers While the Jobber population is declining nationwide (at a slowing
December 2010
pace), the Retailer count continues to rise. Although some leading Retailers have not rolled out commercial programs to all stores, where they are emphasizing commercial business, “commercialized” Retailers often outnumber Jobber locations.
Pricing Issue The in-house Lang Marketing study did not focus on pricing in-depth, but there is evidence sharp pricing by Retailers is a critical issue in some markets covered. In other research conducted by Lang Marketing over the past several years, sharp pricing was found to be a tactic of some “commercialized” Retailers in competitive markets. While availability and service still rank highest as product buying criteria among Installers, the issue of pricing can be ignored only “at peril.”
Commercial Market is Fluid In battleground cities covered by Lang Marketing’s in-house study, Service Stations and Garages, for the most part, were open to explore alternative products sources, with Installers generally free of strong negative feelings toward purchasing from Retailers.
Jobbers Still Control Commercial Market Programmed Jobbers still control the largest share of auto parts sales to Installers in the battleground cities covered by Lang Marketing’s in-house study. That said, the major underlying finding of this study is that the commercial market is more fluid than ever before, with a large share of Installer business “in play.” From Aftermarket Insight™ by Jim Lang, President of Lang Marketing Resources, Inc., www.langmarketing.com.
GM to Phase out Goodwrench Brand Name
GM will phase out the Goodwrench brand name effective Feb. 1, 2011 in the United States. GM is dropping the GM Goodwrench car mechanic brand in the United States as the company moves to redirect the marketing emphasis around its four core vehicle brands. The company says the move is to better connect GM’s brands with customers, Chevrolet, Buick, GMC and Cadillac will each receive its own Certified Service brand: Chevrolet Certified Service, Buick Certified Service, GMC Certified Service and Cadillac Certified Service. GM marketing chief Joel Ewanick wants the vehicle brands, not corporate, to be the stars of GM, and that includes service and repairs, said one source familiar with the new campaign. “This is another part of the effort to clear out brand clutter,” the source said. “Our number one priority is providing a world-class ownership experience that creates positive long lasting relationships with our customers,” said Steve Hill, vice president and general manager, GM Customer Care and Aftersales. “Certified Service supports GM’s strategy to focus on the four brands – Chevro-
let, Buick, GMC and Cadillac -- and is a natural extension of the customer’s vehicle purchase experience at the dealership. “This is more than a name change—it is a declaration of our commitment to our customers, with exclusive vehicle diagnostics and connectivity via OnStar, competitively priced services and parts, increased advisor and technician training, and working jointly with our dealers to focus on customer satisfaction.” Customers will continue to receive competitively priced service performed by trained experts who know their vehicles best at dealerships across the country. Service is an integral part of vehicle ownership, and customers who are satisfied with their service experience are much more likely to return to the dealership. The brand, launched as Mr. Goodwrench in 1974, was once a household name when GM was a much bigger automaker. The name, which GM changed from Mr. Goodwrench to Goodwrench Service Plus in the ‘90s, also was a major sponsor of NASCAR racing—including Dale Earnhardt Sr.’s car—for several years until it dropped its involvement in 2007.
GM Wins Award with New DuPont Plastic General Motors captured a significant innovation award from the Society of Plastics Engineers (SPE) for rapidly adopting a new lightweight plastic developed by DuPont. The General Motors Ecotec Turbo engine cover won a materials innovation award for adopting new long-term, heat-aging DuPont nylon just 90 days after launch, helping underscore the role of DuPont innovation in the automotive industry. “The automotive industry is hungry for long-life, lightweight materials they can quickly use to cost-effectively cut weight to improve fuel economy and reduce emissions,” said DuPont Performance Polymers President Diane H. Gulyas. “The speed with which this remarkable material was adopted shows how collaboration combined with materials expertise can accelerate cost-effective innovation.” General Motors capitalized on new DuPont™ Zytel® PLUS nylon just 90 days after it was introduced and earned the “Most Innovative Use of Plastics Award” for an engine-appearance and acoustic cover on the Ecotec 2.0-liter Turbo powering Cadillac CTS vehicles. Nearly 70 percent of new small- and mid-sized engines scheduled to be launched between now and 2016 will
use charged air induction to boost performance, according to IHS Automotive, Englewood, Colo. “This trend toward downsized, turbocharged engines to meet fuel and emissions regulations without sacrificing power drives up heat, pressure and challenges many traditional plastics,” said Gulyas. “New materials must withstand increasingly demanding engine environments without adding cost or complexity.” DuPont introduced four Zytel® PLUS nylon products in March and recently added three new polymers that stand up to long-term exposure to hot oil, calcium chloride, impact after aging and temperatures as high as 230 C. All are based on DuPont™ SHIELD Technology, which provides the kind of long-term protection against aggressive environments that can double the life of a component. Zytel® PLUS nylon was used in this turbo application because it retains mechanical properties and great surface appearance despite long-term exposure to hot temperatures—180 C and above —common in turbocharged engines. The award-winning engine-appearance and acoustic cover is molded by Camoplast Polymer Solutions, Richmond, Quebec, Canada.
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 29
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Gonzo’s Toolbox
Dude, Meet My Daughter with Gonzo Weaver
When it comes to dealing with cus- ful. How do ya deal with that kind tomers, there are always a few things of thing?” “Oh, I guess you could say you that are sure to be an issue, i.e., Cost?, how long will it with take? and When isArnold it get used to it. It’s nothing; she’s just Richard upset that she’ll have to buy another going to be done? Then there are those times when car. Thanks for asking, it’s no big the unexpected happens. When that deal… what can I do for you?” I said front door opens and a new customer as I took that deep breath. comes in and your expectations are “My headlights go off if I tilt my high. Will this customer become a wheel all the way up.” withis Ed regular? Then there the Attanasio type that “No problem to look at it. Do make you say to yourself: What’s it you need to wait on it?” “If it won’t take long, that would going to be this time? be nice.” I filled out the paperwork and put the truck in the shop. Sure enough, if you put the wheel all the way up, the with Erica Schroeder lights would go off. Down they worked fine. Removing the steering column trim revealed the problem. The main wire that leads to the dimmer switch had come free from the multifunction Gonzo takes a moment between repairs to switch connector. Every time the colman the service desk himself with Erica Schroeder umn was up the wire would separate. The other day I was in the office It was quick fix… nothing special. when in walked a young man with Just push it back into place, make sure that “clean-cut, kid-next-door” look. it “clicked” into place and strap it He looked to me like a nice kid who down to the other so it couldn’t pull had his head on his shoulders. free again. I even adjusted the entire At the time I was busy finishing harness so there was a tad bit more up with an aggravated customer who room for the swinging motion of the was having a fit over paying for her column. car’s outcome. The lady’s car had Before I put all the trim back on broken a cam which took out the engine. It was going to need a new one. She couldn’t afford the engine replacement, and her frustration was audible. She was completely out of it because a cheaper solution wasn’t possible. So she let the shouting commence at the front desk. Who would ya think had a front row seat to this show of shows? You guessed it… Second daughter Amanda (Mandy) checking me! to see what her dad wrote about her this time As the lady continued with her rant, the young customer sat in the I tried it several times. It worked fine. background waiting for his turn at the I pulled the car around front, and he counter. She soon left with her cell paid for my time and was back on the phone stuck to her ear calling for a road. He was the kind of person who tow truck. makes your day special. Especially The lad walked up to the after dealing with a lady and her dead counter with a concerned look on engine… (‘Maintenance’ people… it his face. “Do ya need a minute? makes a difference… but that’s anHow about you take a deep breath, other speech.) just inhale slowly and exhale. A day or so later the same Wow, dude… she gave you an ear- young lad was back with a different
Jobber Journal
This is a new story by Scott “Gonzo” Weaver as posted on his website, www.gonzostoolbox.com. See his book “Hey Look! I Found The Loose Nut”, which provides a Good Laugh for Mechanics of Any Age. The book is available at amazon.com. Contact Gonzo at Gonzosae@aol.com
attitude… but now it wasn’t because the headlights wouldn’t come on while tilting the wheel. It was because the headlights blinked off and on. He seemed very stern with his explanation. He made his point, and then stood there waiting for my answer. Normally, I would be thinking it’s time to get defensive. I just fixed his “no headlight” problem the other day and now this. The wheels are turning in my head. I could feel the steam reaching the flash point. This kid was looking at me with that same look the lady with the dead engine was looking at me with… (You know the look). I didn’t want to blow my top over this but I kept thinking ‘this guy is going to tell me it’s doing the same thing. I just know it.’ He stood there staring me down.
I was waiting for “It’s doing the same thing” response. With his arms folded across his chest, sure enough: “It’s doing the same thing.”
Shop and Product Showcase Shop Showcase Shop Snapshot
32 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
First daughter Katrina (Katie) taking a break with Autobody News
I’m about to go ballistic. My daughter, Mandy, was running the service desk that afternoon. I could see she was looking for that “safe zone” to get out of the reach of dad’s soon-to-explode tantrum. But this kid
was so concerned with my well being the other day I figured I’d give him one more chance. I looked outside at the truck, turned to look at him and growled out something like, “Doors unlocked?” He answered, “Sure are.” Without another word I walked out and turned the headlights on while he followed me out to the truck. He started to tell me how the headlights would fail, and how often it would happen. As he explained the situation he seemed more concerned that I was going to blow my top. He was sorry to bother me, but he wanted to be sure to tell me it only blinks after he’s been driving for more than an hour or so, and not when it’s tilted as it did in the past. He noticed when the headlights do start to blink he could wiggle the headlight switch knob and they would come back on. “Well, that’s NOT what was wrong with it the other day. What made you say it was the same thing?” I asked. “Just wanted to razz ya man. I www.autobodynews.com thought it would be funny. You seem IT who OUT! like an CHECK uptight guy doesn’t get a
lot of laughs. Thought you might get a kick out somebody playing ya,” he answered, chuckling and patting me on the back. I don’t know how this kid pegged me for an uptight guy, but I’m starting to like him. OK, ya got me. Good one kid. I’ll give you that. I had to laugh. There’s nothing like somebody from outside the industry seeing the difficulty and stress that this job can put you under. We struck up a friendly conversation about college, family, and work, while we were waiting to see if the headlights would blink. After about a half hour or so the headlights did exactly what he predicted. It was a faulty headlight switch. After wasting the better part of an hour just chatting and small talk, the two of us went back into the office and asked Mandy to order a new headlight switch. Mandy was expecting me to come in,
slam something on the counter, say a few choice words, and rant my way back to the shop kicking doors open all the way. But instead I had a big smile on my face, and my new found bud alongside. “Dude, meet my daughter, Mandy.” You can guess her reaction. (Mandy wasn’t all that impressed with the guy.) When the switch made it to the shop I went right to work installing it, and sent my friend down the road. I’m sure he’ll be back. He made my day with his quick observations of the goings on at the repair shop. I just wish more people acted that way. It would make my life a lot easier. As for Mandy… she hasn’t decided yet. I guess my buddy wasn’t her type. Hey, but a Dad can dream, can’t he?
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NHTSA May Probe Hybrid Accord’s Acceleration
The National Highway Traffic Safety Administration will decide whether to open a full-fledged investigation into possible acceleration problems with the Honda Accord gas-electric hybrid, according to documents posted on the agency’s Web site. A woman, who was not identified, filed a complaint seeking an investigation and recall of the 2005 Accord Hybrid after a crash in July 2005 that disabled her and left a passenger dead. She said her car crashed into oncoming traffic after she drove over rumble strips on the side of a highway. The vehicle lost braking power then accelerated on its own, the woman said. An investigation would affect about 25,000 vehicles, the NHTSA said. The NHTSA said it will decide whether to investigate the Accord Hybrid for possible recall because of problems with antilock brake controls. Its documents said the woman found 22 similar complaints in its Contribute database Want involvingto Accord and Civic to t hybrids. The similar incidents involved inadequate brake performance while driving over uneven surfaces, the documents said. publisher@auto
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The Honda Accord, Buick Enclave The new ratings appear on ve- fea anwon’t exclusive article and Chevrolet Traverse became the hicle window stickers until the 2012 your products or servi latest vehicles to To get aadvertise five-star over- model year. all crash rating, under new stricter Under the old frontal tests, more call Joe Momber at: government tests. than 95 percent of vehicles got four 800-699-8251 The National Highway Traffic or five stars; that figure fell to 83 perSafety Administration issued its re- cent after the first batch of new tests. e-mail: vised, tougher five-star crash ratings, Grades dropped in several all tests for d CALL: Joe or Momber jmomber@autobodynews.com releasing 34 vehicle ratings. for many older models. www.autobodynews.com NHTSA is posting additional ratThe Toyota Camry, the best-sell800-699-8251 ings as they complete testing of 2011 ing car in the United States since model vehicles on its safercar.gov 2002, got three stars, as did the website. Camry hybrid. The Accord got five stars in The Buick Lucerne also got a three tests: side, frontal and rollover. three-star Register Your Email foroverall Our rating—after it got The Buick Enclave and Chevro- two stars on side impact—and five let Traverse got five stars for side im- stars on both rollover and frontal pact—and four stars on frontal and crash tests. rollover—but still got the five-star The Buick got one star on the at www.autobodynews.com highest rating overall. side impact for the driver and two Two of the first 34 vehicles got stars for the passenger. five stars—the BMW 5 Series and GM spokesman Alan Adler Hyundai Sonata—and the Hyundai noted that the tests have gotten more only reached that pinnacle after it was difficult—and the vehicle hasn’t modified and retested. changed. The Lucerne, which is in its Of the first batch tested, 29—in- last year of production, got four stars cluding the Ford Fiesta and Taurus, on side impact last year. Jeep Grand Cherokee, Cadillac Es“You’ve got new numbers. but calade, Audi A4, Infiniti M37 and the Lucerne didn’t change—just the M56, Kia Sorento, Toyota Sienna, ratings,” Adler said. Honda Pilot and Chevrolet Malibu— The compact Nissan Versa regot four stars in the overall score that ceived two stars, after getting a low takes into account frontal, side and score on the new tougher side-crash rollover crash test ratings. tests.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 33
SCRS Thanks Repairer Education Sponsors at SEMA 2010
The Society of Collision Repair Specialists (SCRS) is thanking the group of sponsors that provided significant financial support to get the inaugural Repairer Driven Education (RDE) program off and running. The sponsors were: BASF, GM, PPG, LKQ, and 3M. RDE’s introduction cycled over 125 individuals through two days of educational offerings. “As a collision repairer, I have attended this show numerous times, but this one was the best. The one thing missing from the past SEMA Shows I felt was a stronger presence of the collision industry segment and there was truly a big difference this year,” said Joel Lofton, RDE attendee and owner of Barnett’s Body Shop in Ridgeland, Mississippi. “The Repairer Driven Education courses were fantastic! All of the speakers were great and left a tremendous impression on all who attended.” “Now, more than ever, the industry needs relevant education,” said BASF OEM and Industry Relations Manager, Joseph Skurka. “The complexity of modern vehicles and the products and techniques needed to repair them is growing all the time. BASF’s philosophy is to make our
customer, the shop, more successful, and they can’t be successful without the up-to-date information and training that a program like RDE provides. SCRS provided a great opportunity for the industry that we were more than happy to support.” “I was so impressed with how great the SCRS RDE training classes were at the SEMA Show,” added Forest Holt, Owner of Southwest Body Shop in Amarillo, Texas. “The series added so much relevance to my experience at the show, and I received very usefull information that will help me in my business tomorrow. As an industry we need this information desperately, and I can’t thank SCRS or the sponsors of the series enough for providing this opportunity to the industry!” “The magnanimous contribution of our RDE sponsors demonstrates their understanding of the need for quality instruction,” SCRS Executive Director Aaron Schulenburg said of the sponsoring companies, “Their vision and foresight in being involved during the first of many years for this event, helped SCRS to address a critical industry need, and create a solid foundation that RDE can build upon going forward.”
ASRW Announces Improved Technology for NACE & CARS
Automotive Service & Repair Week (ASRW) recently unveiled a new website and portal design for its two flagship events, the International Autobody Congress and Exposition (NACE) and the Congress of Automotive Repair and Service (CARS). Features of the web design on NACE and CARS include a modern, streamlined look, access to all the events’ social networks (including a new Flickr photo gallery and YouTube video library), videos from key sessions of the 2010 event, and a new community section featuring real-time news and updates from various industry organizations. In addition, the online applications for 2011 exhibit space at NACE and CARS are also now available on their respective websites. A completely new feature is the custom landing page for ASRW. Located at www.ASRWevents.com, this site was created to serve as a convenient starting point for all ASRW events, and will strengthen the branding of ASRW. “Our overall goal was to create clean, sleek sites with improved easeof-use for our attendees and exhibitors,” said Lindsay Roberts, ASRW/NACE/ CARS show director.
Additionally, significant modifications were made to the “CONNECT” attendee and exhibitor portals. Further aligning them with the online social networking system of the same name, the portals personalize the attendee and exhibitor experience. The sites enable interaction between attendees and exhibitors throughout the year. The new portals feature a new layout, color scheme and easy-to-use navigation. The portal is accessible by e-code through the NACE, CARS and ASRW sites to attendees and exhibitors who have previously participated in the event. “We’ve taken some excellent steps forward this week with the resources we’re able to provide our audience. The value of these tools continue to differentiate this event, and we are confident they will have a positive impact on our attendees and exhibitors,” said Roberts. The new sites are located at www.NACEexpo.com, www.CARSevent.com, and www.ASRWevents.com. For more information on exhibiting at ASRW 2011, contact Jeff Rogers at jrogers@hanleywood.com or 972-536-6367.
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• Perform spot-welding on the flange indicated by *2. Note: Panel-bonding and weld-
bonding are not approved procedures. Definitions: • Panel-bonding is a substitution of
2010 Hyundai® Genesis® Sedan Selected Upper Body Dimensions
any specified welds with adhesive material. • Weld-bonding is squeeze-type resistant spot-welding through adhesive. For more information on OE repair information, please visit http://www.alldata.com/promo/abn8tt/ NOTE: This Repair/Service Procedure is excerpted from a Technical Service Bulletin published by the vehicle manufacturer, and is intended for use by trained, professional technicians with the knowledge, tools and equipment to do the job properly and safely. It is recommended that this procedure not be performed by “do-ityourselfers.”
2010 Toyota® Corolla® Selected Manufacturer Positions
One One of of Southern Southern California’s California’s Largest Largest Collision Collision Parts Par ts Inventories Inventories • 50,000 parts in stock and ready to ship • We do bulk buying so we can pass the savings on to you • 16 professional parts associates ready to help you • 30 delivery trucks serving Simi Valley, Thousand Oaks, Santa Clarita Valley, the San Fernando Valley and surrounding areas • Ask about our volume discounts • We ship around the U.S. and the world • Online ordering through OEConnection — Call for details
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Auto Body Fraud Investigator Dr. Kenneth Zion Speaks at CAA Santa Clara Chapter Meeting by Ed Attanasio
Dr. Kenneth Zion is an auto body instructor and the owner of Automotive Collision Consultants, a private accident investigation company in Long Beach, as well as a third-generation body tech and a consultant for various companies worldwide. He specializes in detecting automotive fraud by conducting automotive accident investigations and uncovering the facts by using a wide range of evidence collection, analysis and careAccident Investigafully documenting tor and Consultant each case in detail Dr. Kenneth Zion every step of the spoke to members way. It’s like the and guests at the CAA Santa Clara popular TV show chapter’s fall meet- CSI, but without ing in San Jose in David Caruso. And October. Zion isn’t catching murderers, but he is active in identifying people who are committing automotive repair fraud in a variety of differing ways. Dr. Zion was the featured speaker at the California Autobody Association (CAA) Santa Clara chapter’s quarterly meeting at the Three Flames restaurant in San Jose, CA, in Octo-
techniques and processes by presenting a series of slides, outlining approximately a dozen of what he described as “the most fascinating and memorable” cases that he’s encountered during his more than four decades in this role, he said. His examples dealt with issues surrounding vehicles that were doctored in various ways. Some of the more sophisticated fraudulent techniques that were committed by individuals, car dealers and body shops, probably wouldn’t have been detected, without Zion’s expertise on the job. Automotive repair fraud is a huge problem and it isn’t going away anytime soon, Zion said. “More than $5 billion is lost in auto body-related fraud every year. It’s an enormous problem and a huge drain on the industry, because in the end it results in sub-par work and puts unsafe, improperly repaired vehicles back on the road, in many cases.” The most common instances involve repairs that are listed in the estimate, but then don’t occur, for obvious reasons, Zion said. Most body shops are honest and won’t risk their businesses by committing fraud, but there are still shady operators out there who will try to save money and time by cutting corners, Zion explained. Zion discussed many of the most
name a few. It’s not easy to uncover many of the more sophisticated cases of fraud, but by using chemistry, physics, and
“This was a very intriguing presentation and auto body fraud is something we should know as much we can about it,” CAA officer Steve Sturken,
(l to r) Dean Blomquist, general manager for Pro Star Towing in Milpitas; Jason Piper, general manager of FCC Collision Center in Milpitas; Greg Folden, assistant manager at FCC and Rich Gundo, FCC parts manager were all on hand for the CAA Santa Clara chapter’s October meeting
the latest technologies while tapping into his extensive reservoir of knowledge and experience, Dr. Zion is able to catch even the sneakiest cheaters out there, he stated.
owner of Sturken Auto Body in San Jose said. “If we can see these telltale signs of fraud, we can deal with them before we run into larger problems down the road.”
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Parts Dept. Kathy Mello, owner TGIF Collision, Fremont, Calif.; Gregory Buseman, sales and service representative for WURTH USA; Gavin Lawrence, collision field sale representative for ALLDATA Collision and Matt Patterson, owner of Airbag Service.com listened to an informative talk about investigation fraud presented by Dr. Kenneth Zion
ber. Even with a San Francisco Giants playoff game happening the same night, a decent crowd of 60-plus CAA members, vendors and industry leaders were on hand to listen to a very informative talk by Dr. Zion. Zion illustrated his investigation
common fraudulent practices he’s encountered, including rigged airbags; using inferior parts or installing used parts that are camouflaged to appear new; falsely reported work and car owners who stage accidents, questionable vandalism or thefts, just to
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BAR Chief Sherry Mehl INTERVIEW by Ed Attanasio
ABN: How has the BAR changed most significantly since you took the position of Chief?
SM: I took the position four years ago and I think the organization has changed a lot in a relatively short time. Establishing open communication was the first step. I’ve been to every industry associations and group throughout the state, many of them more than once in my four years in this job. I wanted to get out and make sure that I was hearing from the industry what their issues were what their problems were so that I could go about resolving those issues. Any time you take on a new job, you want to be able to hear from your constituents. And then we started having our regular BAR Advisory meetings on a quarterly basis. Any time we got out to do regulations we also have a series of workshops throughout the state, anything that’s going to implement the industry, anything involving something we need to do or mandate that they have to do something that imposes on
them, we try to get them in the loop early on and making sure that we hear all of them concerns and address those as we go through the process. I heard a lot of horror stories about the BAR, but when I had go out and told to these groups, I would find out that these things had occurred many years ago. So, I was asking them can somebody tell me something that’s currently going on. I gave everyone my business card and told them, e-mail me, and call me if there is ever a particular issue with the BAR that is impacting you in any way. I found that many people contacted me and we were able to rectify their situation, in almost every case or work through it. I think the word got out there after that, which was good. It all starts with being very open, I believe. From an internal perspective, a lot of the management team had left when I came on, so I had the opportunity to put in various experienced leaders from throughout the Department of Consumer Affairs that I had worked with over the years, and I actually re-
placed roughly 80% of the top management. So that made a huge change, training and re-structuring the entire system BAR itself statewide. We changed how we interact with employees; how we hired employees and made huge impact in that area. So, I think there’s been a substantial amount of significant change with the BAR, much of it revolving around the changes we made at the top. ABN: “Midnight” Body Shops who aren’t licensed and are operating under the radar still seem to exist in considerable numbers, according to body shop owners I’ve talked to. How has the BAR dealt with shady shops and how can they be controlled?
SM: Many people don’t realize that we don’t have citation and fine authority on the repair side. So, we have to go to a District Attorney to get them to file criminal charges. So, that’s really the only way that we can take action against them. We can go in and take action against their license, but if
Cover Story
they’re unlicensed, then we’re unable to do anything. If we can’t convince a DA to take action, our hands are tied in some cases. Recently, we’ve been working on citation and fine authority in unlicensed activity and we’re probably 2-3 months away from implementing that, which gives us the authority to go in and actually cite unlicensed activity without having involved the DA’s office. The other thing we’ve been doing is setting up stings through Craig’s list and through that we’ve been working with DA’s for all types of auto repair stings, including auto body. And that’s been very successful. We make the phone calls, set up the appointments, and usually do it in a public area, working with the DA in each region with the local police department, to make sure that we have people there to make arrests on the spot. And they show up, give us the estimate, and then we walk them around to the back of the building and they get to meet the sheriff or the local police department. When people tell me unlicensed body shops
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are still out there in operation, I tell them we’re fully aware of that fact and I’m hoping that once we get more authority, we’ll be able to get out there and quickly cite those unlicensed shops. Hopefully that will have some impact. Obviously, the economy is playing a role and I think people are desperate; there hasn’t been a wide spread of authority for us to do a lot about it. In some areas, this is a low priority for the DA, because they’re dealing with things like murders and burglaries, for example, and these are indentified as being more important than unlicensed body shops. It’s hard to get their attention. ABN: When you took the job, one of your main promises was that the BAR would be a kinder and gentler organization. How has that been achieved?
SM: The first thing we did after getting out to the public and finding out what their issues were, was working on making sure that everything we do is fair and equitable and that our policies are consistent and that if we do have bad employees—all those things in conjunction have contributed to us
proving that we’re an organization that cares and that we’re an organization that tries to help people and not just being a punitive force in the industry. One of the things I did was restructure our operation by breaking it out into two sections, north and south. Previously, we handled the entire state through our Sacramento office. Plus, we combined our auto body and our smog department, because before they were in the same office before, but they never talked to each other. So, we combined those offices and basically broke down the previous system. Now, we now have a manager in the north and another manager in the south who manages both programs. Then, we broke it down even further, to the point where we now have a total of eight regions throughout the state and each under the direction of its own manager. So now you have a consistent message being disseminated from the top manager who oversees these regions. This way, we’re closer to what it’s happening in the field and more connected on the ground in these regions. This way, the message doesn’t get diluted or misinterpreted. Issues in the field could now be
identifying them sooner than later, so that we could deal with them proactively as a team. We wanted our managers to know that they’re never just out there by themselves and that they’re supported by a large team of experts who know what to do and how to do it.
ABN: Many people have suggested that the BAR should conduct industry rate surveys in order to guarantee objective surveys that can be trusted by both all parties involved. Is this plausible in your opinion?
SM: We have no authority to take surveys, so we obviously we can’t make anyone respond to us. We had talked to a couple of the associations to see how we might be able to set up a voluntary system, but we’re surely what the value of a voluntary survey would be. We had agreed to do it, but then with all of the budgetary problems, we were unable to do a contract to get it done. Now the budget is signed, hopefully things we’ll settle down and we can hopefully re-visit the voluntary surveys, because the offer is still on the table to do the voluntary survey.
We just don’t know at this point what the value of it will be, but we’re willing to do it and find out. I’ve asked the associations to help us in putting together the survey and we’re looking at it closely. We’re also waiting until after the election, to see who the new Insurance Commissioner will be. We’ll be obviously meeting with whoever gets the job and hopefully developing an ongoing relationship, and we’ll see what comes out of that. ABN: The BAR’s Auto Body Inspection program has gained a lot of exposure and I’ve received positive reports about it from people within the collision industry. How did you change it and have you done more or less inspections within the past year?
SM: It was a program that was in existence when I came onboard, I asked basically why it was eliminated and they said there was no funding for it. So, we brought it back and it’s done well. We kept it going and continued it and last year we did 196 inspections and so far we’ve done 176 this year. So, we anticipate breaking 200 inspections by the end of 2010. It really
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ABN: Of the complaints received every year, how many of these are collision repair-related and how many of these are acted on?
SM: Last year, we received 1,645 auto body complaints and this year to-date we’re at 1,596, so it runs very similar year-to-year. 10% of these are auto body related. Last year, we filed 18 accusations based on the complaints received and this year we’ve acted on 12 of these. As of the dozen we filed this year, 10 were fraud and the average amount in question was $5,000 in each case, so these are substantial numbers so we’re talking about very bad cases. But, in most cases the fender bender stuff and the difference in paint colors—those things are usually easily fixed and they never make it to the level where we need to act on them. The cases that we go after are pretty severe violations. ABN: In a recession, do you see more body shops cutting corners to save and
capture more revenue?
SM: Our complaints aren’t going up and our auto body inspections have stayed primarily the same, so we don’t see it. Some people are fixing their own cars or foregoing the cosmetic repairs in this recession, but we’re not seeing more shoddy work or receiving more complaints, so it’s hard to tell. People put repairs on hold during tough economic times, I think, so that when things get better, maybe there will be a lot more work out there for body shops. ABN: One of the main goals stated in your 2008-2012 Strategic Plan was to unify and synergize your overall approach organization-wide. Have you achieved this and, if so, how?
SM: Once we started on a path where we award good employees and take action against the bad ones, you start to attract more and more good employees. We’re also seeing a group of our senior employees who are now retiring, so we’re now working with the State Personnel Board to put our
NCOIL Tables Model Steering Act, for Now
At their annual meeting the weekend of Nov. 20 in Austin, Texas, the National Conference of Insurance Legislators (NCOIL) Property and Casualty Insurance Committee “indefinitely tabled” the Model Act Regarding steering. After a meeting to hear commentary on the proposed model, the committee made the decision to effectively kill the measure that had only existed as a stand-alone bill since March of this year. What began as a three-sentence sub section of the Crash Parts Model Act (still under consideration by the committee) evolved into a one page stand-alone document and soon became a multiple page, contentious proposal that drew plenty of comments and criticism from insurers, repairers and the auto glass industry. As originally introduced, the steering proposal banned requiring use of a facility or recommending it, except by consumer request. After inviting interested parties to submit proposals for amending the model this summer, the committee received numerous suggestions. The insurance groups American Insurance Association (AIA), the National Association of Mutual Insurance Companies (NAMIC) and
the Property Casualty Insurers of America (PCI) submitted a proposal to add a whole new section of the bill containing a list of repair facility prohibitions, among them: repair facilities would be required to wait three days after an accident before they were allowed to solicit a vehicle owner and would be banned from seeking a power of attorney from a vehicle owner for the repair of the vehicle. Another suggestion came from the California Autobody Association (CAA) which proposed that insurers be required to disclose to vehicle owners that the insurer receives discounts and other financial concessions from its preferred repair facilities as a condition of becoming a preferred facility, unless no such agreement exists. The Society of Collision Repair Specialists (SCRS) has vocally objected to the Crash Parts model, both during in earlier debates held during the previous decade, and since it was reintroduced to the committee in 2008. SCRS’ overarching objections to the model have remained unaddressed by legislators through the last several hearings, and include, but are not limited to concerns that:
See NCOIL Model Act, Page 47
40 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
exams online, so that now we have open exams online available 24/7. People can go online and take the exam and put be on the list. We now make our interviews very competitive, so that the best candidate has the best chance at getting the job. We’ve done new job analysis for each of our positions; we advertise in newspapers and we’re going to recruitment/job fairs; we’re reaching out to trade schools; we’ve developed a wide range of assessment tools, so that we now know what we’re looking for specific skills to fill a position. We’re making sure that it’s a fair system, so that we’re hiring the best person available. We’ve hired 53 new employees within the last year, and that’s with a hiring freeze, so we continue to find ways for getting the best and the brightest to work for the BAR, and that was one of our main goals. I think it’s definitely been a success. A lot of people are looking for jobs in this economy, due to businesses closing or getting laid off, so there is a huge pool out there of very qualified people looking for work and we’ve benefitted greatly by tapping into that pool of talent. One of the best things
we’ve done is about two years ago we started a program called Education First. Every shop that gets a new license gets a visit from BAR, we bring out the laws and regulations so that they understand them; our field rep from their area comes down to the shop and introduces him or herself; to answer any questions they may have; to spend time with them in their shop, and to get to know them on a personal level, prior to any complaints that might take place. What we found in the past, is that many shops got their first visit from BAR based on a problem or a complaint, and the first interaction was negative, so I wanted the first contact to be positive. It’s all about building a relationship, and accountability on our end, so that the shops know that they can call their field rep or their manager any time for any questions. In many cases, shops make mistakes, and I wanted to give people an opportunity to get the right answer. We’re striving for consistency straight across board, and is it perfect? No, but we’re continuing to moving in the right direction, and this Education First program has been a big part of that and a huge success.
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ABN: Another of your stated goals was to embrace the technologies available you to be more effective, including updating your Web site and using the Internet/Intranet to more effectively communicate and disseminate relevant information more quickly. How has this worked out?
SM: We’re now making all of the newest technology available to our people in the field, so that we can make their lives easier and make them more effective. Implementing videoconferencing here in our headquarters was a big step, so that we could meet with all of our managers in the various regions. This way, they were hearing things from us first-hand, to discuss issues in the field and get the information they need quickly. I think it really brought the span of control down to a more manageable level than from before. Now, we also have their Blackberries connected to our laptops, so that they can stay on the road and get more done. All of our documents are available to them on our Intranet, so that all of our correspondence is consistent as well.
California Repairers’ Donations Needed to Give Back to Marines Toby Chess is again asking for the support of collision repairers to contribute to a toy drive to benefit the families of marines at Camp Pendelton. It’s not the first time he’s done it. Back in December 2007, a group of California collision repairers led by Toby completed their mission to bring a happy and toy-filled Christmas to the families of Marines deployed overseas. Chess and a group of fellow collision repairers raised approximately $8,000 to supply Marine families with over 600 toys and 32 bikes at Camp Pendleton in Oceanside, CA. Autobody News was there to document the event and it was a heartwarming success. Recognizing that the Marines have given generously of their time to Toys for Tots for civilian children, but haven’t received in kind, the Collision Repairers mobilized their own troops. Chess and his colleagues dropped off the toys and were greeted by several dozen troops who helped unload the gifts. In return they received a certificate and heartfelt thanks for their contributions. “[In 2007], I got a call about two
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teered their time and resources in this effort. Sgt. Major Larock Benford told Autobody News: “I can’t believe the quality of toys (especially the bikes)
On December 17, 2007, Toby Chess and fellow collision repairers completed their mission to bring a happy and toy-filled Christmas to the families of Marines deployed overseas. They raised approximately $8,000 to supply Marine families with over 600 toys and 32 bikes at Camp Pendleton in Oceanside, CA. To contribute, contact Toby at 310-995-7909, or tcspeedster@yahoo.com.
to decide that I wanted to help out again,” explained Chess. “I knew I convince friends and colleagues to get involved. Approximately 30 collision repairers from the west coast volun-
my Marines and Sailors received from the California Collision Repairers. Thank you for doing your part in making this a more enjoyable X-Mas season for these kids.” See photo caption.
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SEMA 2010, A Glimpse of Hope and New Revenue Opportunities by Stefan Gesterkamp
I am not sure how many Autobody News readers attend SEMA on a regular bases. This year was noteworthy to me for several reasons. First of all, attendance was very strong from day one. Looking back in time, I can’t remember seeing crowds like this on opening day. This is particularly true when the opening day falls on a Tuesday. I don’t have the official attendance number for the show, but it was clearly a jump up from previous years. The strong attendance was coupled with a noticeable upbeat mood by all, visitors and exhibitors alike. It was a joy walking the halls and seeing people in our industry making an effort and clearly deciding that they will no longer be depressed by our economy. I hope this attitude is contagious! While walking the show floor, you couldn’t help but notice improvements in vendor’s displays. There was high-quality eye candy everywhere you looked. Companies from all aspects of our industry came to play and showcase what they have to offer and what they are all about. There were incredible displays of custom cars and motorcycles, new tools, and products that made this a worthwhile trip. The size of the auto body sector at the show has improved from previous years as well. Many new products were unveiled at SEMA, demonstrating a strong commitment by manufacturers and vendors to be part of this show. Although I personally missed NACE this year, I would venture to guess that the vast majority of the collision repair industry sector that attended NACE was also represented at this show. SEMA has always been somewhat of a trend setter, and to me it’s a gauge for where we are heading. One of the big eye openers for me this year was the drifting community. This segment of the custom market has dramatically grown in size over the last two years and is well on its way to become one of the prime focuses in the custom segment of the show. What the “Hot Rod” represents for most of us old geezers, 40+ car nuts, is being replaced by the drifting inspired cars with the younger generation. This is an important trend for anybody in our industry to recognize. It doesn’t matter if you are currently
The BASF Display at SEMA 2010
doing work in the custom segment or not, this new trend is opening doors for new revenue and work flowing into your shop. You may not be well
prepared for a ground-up build of a high-end roadster, eating up hundreds of hours, or ready to chop the top on an old Mercury in your shop. But
when it comes to modifying and painting body kits, installing vinyl graphics, smoking tail lights and modifying muffler systems and other mechanical work, collision shops are actually well suited to pick up additional business. The products and the tools used in this segment of the market are most likely already in your collision business. This is not always the case when it comes to building a Hot Rod, or restoring vehicles to concourse levels. The good news is that young people continue to invest large amounts of money in their vehicles and this could be an added revenue stream for some shops that have extra capacity
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not utilized by collision repair today. I know that many collision repair shops don’t see enough potential in the custom sector and feel it is a very specialized small niche market. Once you get to see SEMA with what I guesstimated was 130,000 attendees, you may think twice. Yes there are only a couple of weeks between NACE and SEMA and I am the first one to admit that many of us can’t financially, time, or otherwise afford to visit both show in one year. But if you have never been to SEMA, you should make it a point. Not only can you brush up on the lat-
est and greatest in the collision industry, you can also reignite your excite-
ment and passion for all the fun stuff that likely got you into the industry in
Continued from Page 24
at next year’s ASA Vision show.
have had issues generating much income from usage, how has Collision Hub done and how do you pay the bills?
Kristen Felder
Chip Foose Greets Fans at the BASF booth
ABN: I know a lot of social media sites
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the first place. I even met a person this year that had SEMA on his ‘bucket list’—as in things you have to do before you kick the bucket. SEMA is a very international show. You will meet people attending the show from all over the world. It is a great place to network and meet old friends. I have been told that this is the largest show of its kind in the world. Prepare for at least three days if you would like to see most of it, four days for all of it. Don’t forget to wear your most comfortable shoes.The venue is huge. You’re going to need them. KF: Collision Hub runs on a sponsorship model. I went to companies I had existing relationships with from my insurance background when I first had this idea and asked them if they would like to participate. Those companies make yearly donations to Collision Hub and in turn Collision Hub does advertising and product videos on our site for them. I picked products I believe in for these positions. It meant a lot that these companies had faith in my idea so early on, it was a big vote of confidence. Our founding sponsors were 3M, PPG and Enterprise and we recently landed Chief as a sponsor just before the SEMA show.
ABN: What is your sense of the value of social media for collision repairers? KF: People don’t want to choose a product anymore that they don’t have a connection to. Social media allows customers to have more of this connection easily. Social media allows a business to be there before, during, and after the customer’s need is met. I really us think social media ison thematters best Give your opinion business and marketing tool we’ve ever had. If you’re not on social media now, get there and get there now. publisher@autobody Thanks, Kristen. Sign up for free at www.collisonhub.com.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 43
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Collision Hub Implements its Social Media Strategy level of open communication to our industry as a whole,” recalls Felder, Kristen Felder believes that members who earned a public relations degree of the collision repair industry should from Arkansas State University, inmeet and meet often — and not by ac- terning for State Farm Insurance. cident. After graduation, she worked for State Her Web site, www.collision- Farm as a claims representative, then hub.com, is a network for those in the moved to Nationwide. In November collision repair and related industries 2009, she began running Collision to share information, talk shop, dis- Hub full time. cuss issues and get to know each “I like to tell people that I spent 20 other. Benton, Arkansa-based Colli- years in collision repair and 14 years in sionHub.com encourages technicians, insurance,” she adds. “It is that experishop owners, suppliers, insurance ence on both sides of the fence that recompanies, auto glass installers, tow- ally drives Collision Hub. I see and feel ing companies and rental car agencies both sides of our industry’s issues.” to log on and join in. Felder realized that four or five “After looking at groups in Face- annual industry events wouldn’t acbook and LinkedIn, I determined we complish connectedness. After NACE needed our own safe space with some 2008, she returned home, thought and content controls,” says Felder, who researched. She saw a study on Gen X notes being “born” into the collision and Next Gen which discussed the imrepair through her dad, Ted, who portance of social connections on sites began working in the business in 1965 such as Facebook and MySpace and after leaving the Air Force. He opened how those relationships will revoluhis first shop in 1970 with a business tionize business. partner and retired in 1997. “The participants interviewed for the study stated they had stronger connections with their ‘virtual’ friends through social networking then their ‘real’ friends,” she says. “Could we forge strong bonds and not be at a social cocktail reception during some industry event? Could we forge stronger bonds ‘virtually’ so that our face Kristen interviews Dan Bailey from CARSTAR at NACE 2010 time was more proShe began Collision Hub quietly ductive and respectful?” Because Colin May 2009 and then officially at lision Hub is a social media business NACE 2010 as a social networking site—and not news based— Felder site for professionals within the in- says that this establishes neutral dustry, she explains. “It was a way to ground for insurers, vendors and rebring a successful open model of pairers to participate freely. “We focus friendship and communication to life on the positive and what should be celand make it accessible to our industry ebrated in our industry,” she says. “We as a whole,” she says. monitor and control the site to ensure Two years earlier, at NACE 2008, interactions are professional and reshe and a group of collision industry spectful.” professionals had discussed commuAs a result, the site focuses on nication among themselves—espeother aspects of the industry to discuss cially as they represented different and develop content such as The segments of the industry. Women’s Project, Girl Scout NACE “We came to the conclusion that Day and Future Leaders. “We want our friendships were at the core of this Collision Hub to be a fun place to conability to communicate openly and nect, learn and grow,” Felder says. honestly and wondered how we could That makes us different and refreshuse this social model to bring that ing in the industry.” by David Brown
44 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
The site also facilitates connections according to specific interests, she says. The Collision Hub platform is based on topical communities such as pets, diet and health, women, shop owners and marketing, allowing users to find niche groups and build relationships within them. In addition, the Collision Hub has broadcast NABC,
but can also waste employee resources,” he explains. So, too: “An employee may say something damaging on these Web sites and discussion boards without even realizing that he or she has done harm to your company.” Many collision repair industry members, however, are using Collision Hub regularly— and lauding it. “Collision Hub is great way for the industry to come together via the Internet,” says Gigi Walker, president of the California Autobody Association. “It’s an open format for everyone related to the industry to talk shop: estimator to apKristen Felder interviews (l to r) I-CAR’s Jeff Peevy with SCRS’ Barry Dorn and Aaron Schulenburg at SEMA 2010 praiser, shop owner to shop owner.” I-CAR, CIECA events and will feaDave Henderson, CEO of ture live upcoming shows from Brighton Mich.-based AutoWatch, has NACE and SEMA. Kristen: “We unbeen involved with Collison Hub alderstand the power and importance of most since start-up — posting items, revideo and using the Internet to bring ceiving feedback and connecting with the industry to everyone that cannot customers and potential customers. travel to industry events.” “I have found it a great media to She notes, too, that the site’s sponget the AutoWatch name in front of sor support allows content to be memmany in the industry,” he says. “I also ber driven, providing photos, blogs like that I can look up others in the inand discussions. Sponsorship packages dustry and keep up on what is going are annual or for specific events such on. This is for sure going to be an icon as NACE/SEMA, she explains. Limin the industry and a good forum to ited spots can be purchased such as for the global market.” a featured product, job postings and Alex Hahn, lead estimator/body hot links. “Collision Hub is whatever shop manager for Fairfield, Calif.the industry wants it to be or needs it to based Fairfield Auto Body, agrees: be at any given moment,” she says. “Collision Hub is a first of a kind Still, some analysts caution place for the whole auto body indusagainst an overemphasis on social nettry, from preppers all the way up to working, urging caution about social corporate CEOs. It’s a community networking hazards such as phishing, soap box where anyone can reach out identity theft, reputation damage, deto another or ask for specific help in creased employee effectiveness and any aspect of the business.” other cyberdangers. He recently used it to learn more “Social networking and collaboabout establishing a DRP, ensuring the rative Web sites can offer their users a accuracy of estimates, and finding angreat wealth of resources at their finswers to technical questions that othgertips. However, they do have their ers at the shop couldn’t answer. place and should not come without “Searching for autobody resources limits,” says Mike Carson, a former was almost impossible. In the inforbodyman, insurance appraiser, and mation age, I was astonished that there owner of Joliet, Ill.-based Integrated was not a central site,” he recalls. Technology and Design, an Internet “It took many weeks of searches technology company. but finally I stumbled across CH in its “Collision shop owners need to be infancy and was instantly addicted. I aware that these Web sites can offer posted questions and got answers— valuable industry-related information most times within minutes.”
Social Media 101: Why Social Media Matters in Collision Repair Kristen Felder, founder and CEO of Collision Hub, and Jordan Hendler, with Admin Concepts, taught the Social Media 101 session on Thursday, November 4 at the SEMA show as part of SCRS’ Repairer Driven Education. Both social media gurus Jordan Hendler expressed that social media has become a necessity for body shops. Felder began the session by talking about the pervasiveness of social with media in business theseRich days. Evans “Your customers and competition are both using social media,” said Felder. Facebook, youtube and Twitter are the three sites that she sees as being really necessary for body shops at this point.
“We want you to be there when they come looking for you,” said Hendler, suggesting that body shops’ online presence and the social presence in their physical waiting rooms should be connected. Their online presence should reflect their store presence and vice versa. Both speakers told attendees during the session that they should focus on customer loyalty, repeat business and referrals when it comes to offers and posts they put on their social media pages. “People do not care about collision until they have one,” said Hendler. One tip Hendler offered was for body shops to have a presence and share news that’s relevant. “Make it interesting, just start with having a presence,” said Hendler,
Custom Corner
On Creative Marketing
“If they get it [information] from you, they will feel like you care.” Felder explained that social media is really a portal; a two-way interaction between body shop and the customer, unlike a regular website where the information is dispersed one way, from body shop to the customer. This gives customers a way to interact with a business outside of the physical location. “If you’re going to do your own [social media pages], it’s about a 20 minute per day commitment from you or someone in your office,” said Felder. When it comes to content, Felder and Hendler both told shops to focus on local issues, causes and events. “Don’t let irrelevant stuff get on your page,” said Hendler. Felder told shops to try to focus on creating a local network by posting
Tom Franklin has been a sales and marketing consultant for forty-five years. He has written numerous books and provides marketing solutions and services for many businesses. He can be reached at (323) 871-6862 or at tbfranklin@aol.com. See Tom’s columns at www.autobodynews.com under Columnists > Franklin
Promotion Up Close and Personal with Thomas Franklin
Recently a shop owner in my area friend who told me about his first marconverted a 12-by-14 foot space in his riage when he was a young guy. He said shop into a conference room to host after the honeymoon he and his new meetings for insurance managers and bride settled into their new apartment. agents, dealership principals, and Both sat down and breathed a sigh of reother group sources of business. He lief, as much as to say, “Now I’ve got also put in a computerized projection her (or him). I can relax now, and stop system and screen. The cost of creat- putting on the big act.” You can imaging this space wasn’t cheap. Was it re- ine how long that marriage lasted. ally worth it? with Dick Strom If “interest” could be described as Like most of you, he found that a commodity, it would be one of the trying to call on these people genermost sought after commodities in the ally resulted in very little if any face world. A young woman seeking a hustime. He finally decided if going to band wonders, “Is he interested in them didn’t work, he would try bringme?” He wonders, “Is she interested ing them to him. The last time I spoke in me?” The shopkeeper hopes the to him it was beginning to work very young woman will be interested in the well. He had hosted an insurance clothing he sells. The film producer manager and agent meeting and had hopes the public will be interested in an excellent turnout. Plus he saw some his film. And a collision shop owner immediate increase in business from hopes he or she will be able to interest with Lee Jr. owners who have accidents in that insurance company. He Amaradio was alvehicle ready planning another insurance coming to his or her shop. group meeting and possibly a dealerThe amount of attention given to ship group as well. something is generally proportionate This shop owner already had sevto the degree of interest in it. It’s easy eral major insurance DRPs. Was it reto study “interest” in a baby. The baby ally necessary to go to this expense? I’ve sees something bright and shiny and noticed many shop owners who, once is CURIOUS. The object has captured they finally get a DRP they’ve been the baby’s INTEREST. But now we seeking, sit back and wait for the jobs to can see the complete “interest speccome flowing in. It makes me think of a trum.” Next the baby DESIRES to
Opinions Count
Action Counts
Your Turn
with Sheila Loftus
on other local pages and posting about things your specific community cares about. “Social Media isn’t just about your presence, it’s about your community involvement,” said Felder. At the end of the session the pair laid out some do’s and don’t’s for body shops using social media. DON’T: Use closed statements, put up strictly ads or engage in political or religious debates. DO: Listen to posts on your page (accept the negative comments and don’t just delete them), engage in conversations, not just campaigns and measure your success through followers and comments. “Everyone is a potential customer ... but on social media you don’t need to treat them like one,” said Felder. For more information visit collisionhub.com or admin-concepts.net.
touch, play with, or eat the object. If no one responds to the baby’s interest by giving her the object to touch, play with, or eat, she may DEMAND it by crying, screaming, or otherwise trying to get her desire fulfilled. Assuming the child is given the (inedible) object to play with, eventually the child will LOSE INTEREST and REJECT (throw on the floor) the object. We now have a complete “interest to no-interest” attention spectrum, beginning with CURIOSITY, INTEREST, DESIRE, DEMAND, LOST INTEREST, and ending with REJECTION. The duration of the spectrum may be only a few minutes with the baby, or many years from the time a girl is interested in a guy, marries him, has children, cohabits for years, loses interest and finally rejects (divorces) him. The same sequence may occur when a shop has entered into a DRP arrangement with an insurance company or a contractual agreement with a dealership. The sequence will usually move from curiosity, interest, and desire to the satisfaction of demand. Of course not every set of circumstances that begins with curiosity and interest eventually declines to “no interest” and “rejection.” But in a society obsessed
with entertainment, excitement and celebrity, the full spectrum is experienced by many people in a wide variety of situations from school to jobs to relationships, whether personal or business. When interest and attention are gone, a decline begins. Once a shop has entered into a DRP arrangement with an insurance company or a contractual agreement with a dealership, after the sequence has moved from curiosity, interest, and desire to satisfaction of demand, to keep the relationship continuing without declining to no interest and rejection periodically at least one of the parties must take the initiative to re-fire the curiosity and interest. And so we come to the question of whether the shop owner who invested in conference space and presentation equipment made a good investment. Certainly there can be other ways to stimulate interesting interactions with DRP coordinators, dealership principals and other referral sources, but this seems to be a particularly attractive resource from the viewpoint of those invited to use the space (and be fed -- he provided the food for the meeting he hosted). I’m inclined to think it was a good investment.
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 45
General Motors IPO, One of Two Largest in History, Generates $16–23 Billion by Joe Overby, Auto Remarketing Staff
GM Revving up at the Opening Bell of NYSE
General Motors enjoyed the most substantial initial public offering the country has seen this year, generating at least $16 billion in its much anticipated IPO that launched the morning of Nov. 18. GM chief executive officer Dan Akerson rang the opening bell of the NYSE, which, in this case, was accompanied by the sound of a 2011 Chevrolet Camaro SS engine revving and tires squealing. GM stock began selling, and eventually the IPO would reach one of one the highest levels in history. “General Motors returns to the NYSE as a company with a great global brand and heritage, and a renewed focus on innovation, quality and the customer,” stated Duncan Niederauer, CEO of NYSE Euronext. “We welcome GM to the NYSE, and we are committed to providing the highest levels of market quality and service to the company’s leadership team, employees and shareholders.” The IPO began selling on the Toronto Stock Exchange on Nov. 18, as well. GM had priced the 478 million shares of common stock it issued at $33 per share. There were also 87 mil-
lion shares of mandatory convertible junior preferred stock that totaled $4.35 billion. GM had estimated the offering to be $20.1 billion, and if underwriters pick up their option, a total of $23.1 billion. Shortly after the market opened Thursday, Akerson and GM vice chairman and chief financial officer Chris Liddell had a teleconference to discuss the IPO. Liddell said the company had been speaking with several investors in the last few weeks and had really honed in on three key points. For starters, the CFO stressed to investors that GM’s profile was very low risk , regarding both cost and balance sheet. Second, he said: “We believe we’ve got tremendous growth prospects both in mature markets, such as here in North America, but also in emerging markets, like Brazil and China. “And third, and probably most importantly, we believe in the concept that we have talked about a lot, which is designing, building and selling the world’s best vehicles,” Liddell added.
“a very strong retail demand and we were, through the underwriters, very keen to see as much retail participation as we could,” he added.
Retail, Mutual Fund Demand While he was not able to name any specific mutual funds that bought in, Liddell said during the call that “there was a huge amount of interest both on the retail side and the mutual funds. “And we saw, essentially, all of the largest mutual funds over the last couple of weeks and I know—at least I think I know—that virtually all of them put orders in and I hope they certainly got an allocation,” he added. As far as the retail side, GM saw
Government Involvement U.S. government’s share will decrease “not quite by half,” Akerson said. Looking at it on a basic basis, the government’s ownership would drop from just over 60% to 33%, Liddell explained. Looking at it on a fully diluted basis and accounting for things like options, the government’s share falls to the 26% to 27% range, Liddell pointed out. When asked the potential impact the reduction in the government’s ownership with have on the automaker’s image, Akerson said that considering the “excitement throughout the United States and Canada,” GM having repaid its federal government debt with interest and all the preferred shares to the U.S. government and the fact that the government’s ownership has been reduced, the public reaction would likely be positive. “I would say that the average taxpayer in the United States would look at this particular transaction as very, very positive and we’re seeing that,” Akerson shared in the conference call Nov. 18. “There’s no question Ford took a different path. We arrived at about the same location. We’re both viable, strong competitors with a level playing field,” he continued. “And at this stage of the game, the best car wins. “We’re going to have to continue to prove ourselves. At the end of the day, the quality of the product, the design of the product will rule in the marketplace. And that’s where we intend to participate,” Akerson added.
The deal is expected to close by the end of the year. J.P. Morgan acted as Kelley Blue Book’s exclusive financial advisor through this process. Goldman, Sachs & Co. acted as financial advisor to AutoTrader.com. “AutoTrader.com is excited about becoming the new owner of Kelley Blue Book because we believe the company has a great future,” said AutoTrader.com President and CEO, Chip Perry. “Kelley Blue Book has a wonderful history as an iconic brand and trusted provider of vehicle information to generations of car buyers and sellers, and as we
look into the future we believe together we can bring a host of new technologies and tools to market that will significantly improve the car shopping process for consumers, and help auto dealers and manufacturers better capitalize on the fundamental efficiency advantages of the Internet.” “The future that lies before us is full of potential,” said Kelley Blue Book President and CEO Paul Johnson. “Becoming part of the AutoTrader.com family of companies will help us accelerate our growth in the vehicle valuation and consumer car shopping spaces.”
AutoTrader.com to Purchase Kelley Blue Book
AutoTrader.com, the Internet’s ultimate automotive marketplace and consumer information web site, announces that it has signed a definitive agreement to acquire Kelley Blue Book (www.kbb.com), one of the most recognized and influential brands in the automotive industry. As part of the deal, AutoTrader.com will also acquire Kelley Blue Book’s sister companies CDMdata and CDM Dealer Services. Details of the transaction are not being disclosed. Kelley Blue Book will operate as a subsidiary of AutoTrader.com and continue to be headquartered in Irvine, CA.
46 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
Possible Debt Offering Ahead When asked if GM would consider debt offering, Liddell said: “Over the short term, we may look to do a small debt offering simply to establish a credit benchmark. But that will be modest, at most … it will be in the context of just providing some more liquidity and moving toward, eventually, the concept of repaying all our debt. “So, we may take some actions over the next year, but there’s nothing of any significance from a debt point of view that you’re going to see,” he added. Reaction Sharing her perspective, Speaker of the House Nancy Pelosi released a statement Nov. 18 that lauded the IPO, calling it a “sign of progress.” “General Motors’ initial public offering is a sign of progress for America’s auto industry, for our nation’s workers, for our manufacturers and our long-term prosperity. In the midst of a severe recession, Congressional Democrats and President Obama took difficult emergency action to rescue American auto companies and strengthen critical pillars of our manufacturing sector, while protecting taxpayers,” the statement said. “Today we have more evidence that those actions are paying off, and the American people are one step closer to being made whole,” Pelosi continued. “Preserving, bolstering and expanding our manufacturing base is central to our economic growth, our national security and our competitiveness on the global stage, and key to establishing America’s manufacturers as centers of innovation.”
AutoTrader.com strongly believes in maintaining Kelley Blue Book’s independent and unbiased position in the marketplace. Furthermore, AutoTrader.com is committed to maintaining and strengthening Kelley Blue Book’s role as The Trusted Resource® for vehicle valuation and other important industry information among consumers, dealers, manufacturers, financial and governmental institutions. Paul Johnson and the rest of Kelley Blue Book’s leadership team will remain in place and continue to enhance the company’s brand in collaboration with AutoTrader.com.
Continued from Page 1
CIC: Bumper Testing
ployment to it ‘will’ change the airbag deployment,” Massie said. Massie showed video of the testing, which found that a Mustang with the non-OEM reinforcement beam, energy absorber and isolator sustained $2,982 in damage in a 5-mph crash as opposed to $1,224 in damage to the same vehicle when equipped with Ford service parts. Massie said there was only about $400 difference in the estimated repair costs in an 8-mph crash, unless the reduced energy absorption of the non-OEM parts resulted in airbag deployment. Ford engineer Dave Bauch said such a deployment is more likely with the changed “crash pulse” that the testing showed is a result from the use of the non-OEM parts. Also at CIC, CAPA announced its new standard and certification for non-OEM bumper-related parts, saying that as it developed the new standard, it found “very few bumper parts that actually matched the car company brand parts in terms of performance, materials and durability.” Jack Gillis of CAPA said that in order to confirm that its new standard accurately identifies parts that match OEM, CAPA worked with the Insurance Institute for Highway Safety (IIHS) to crash test some non-OEM bumper parts. IIHS tested some bumper reinforcement beams that met CAPA’s certification standards and some that did not. A non-OEM beam for the 2009 Toyota Camry that wouldn’t have met CAPA’s new standard didn’t buckle similarly to the OEM version in a lowspeed crash. One for the 2005 Ford F150 actually resulted in lower estimated repair costs than the OEM Continued from Page 40
NCOIL Model Act
a. The model does not place greater responsibility on the part manufacturers/distributors to improve overall quality, or limit the market to only receiving high quality parts, but instead shifts the burden onto the repair facility that is repairing the vehicle and increases their liability in the process unduly. b. Parts are sold interstate and this
version, but only because the fog lamp recesses were different than the OEM; the difference actually protected the fog lamps better, but still would prevent the part from being certified as matching the OEM. But a non-OEM bumper reinforcement beam designed for the 2008 Dodge Ram pick-up and that does meet CAPA’s new standard was also crash tested; the resulting estimated damage costs to the vehicle were virtually identical to the CAPA’s Jack Gillis damage costs sustained when the OEM version was crash-tested at low and high speeds. Ford’s Massie was asked to comment on the CAPA crash testing. “I’ve got to say, I think what Jack showed today was promising,” Massie said. “The IIHS piece of it adds a lot of credibility. I think there’s a lot more we’ve got to know before we could put our stamp of approval on it, if we ever put our stamp of approval on it, but I think it was a compelling effort.” Also at CIC, Bob Frayer of NSF International spoke about his company’s non-OEM parts certification program launched in February of this year. He said about 100 parts have been certified through the program to date, with 100 more expected to be certified by the end of this year. He said he expects that number to be close to 2,000 by the end of 2011. Like CAPA, NSF certification requires the manufacturer to meet quality control requirements, and that parts undergo testing to determine they match OEM in terms of content, fit and function. But unlike CAPA, NSF does not require that its labs conduct model has the potential to be adopted or ignored on a state-by-state basis, thus negating its effectiveness even in states which pass the model. Parts regulation needs to be a federal initiative. c. Establishing equivalence between two different types of parts simply due to a certification insinuates that part of the certification process is to be equivalent in EVERY way, versus meeting certain established criteria by the certifying body. There is a tremendous difference between acceptable parts and equivalent parts.
the actual testing of the parts; NSF merely audits that the parts manufacturer has had testing done by a qualified facility. “The manufacturers control testing,” Frayer said. “We can do the testing, but we only require the testing be done at an ISO 17025 accredited facility. I worked very closely with the OEMs in a previous life, and this is the same criteria they held us to in our testing.” NSF-certified parts bear the NSF mark, Frayer said, and certification requires the manufacturer to have a system in place to conduct a part recall if there is a safety concern. Although CAPA accepts and investigates complaints about parts it certifies, under the NSF program the parts manufacturer must have a system in place to accept and respond to complaints. How does a shop know how www.autobodynews.com to file such a complaint? Frayer said CHECK IT OUT! a phone number or email address for NSF’s Bob Frayer the manufacturer must be included on either the part or packaging. Gillis and Frayer were asked how To advertise the industry should view the fact that call Advertising Sales at: there are now multiple standards and certification programs for non-OEM 800-699-8251 parts. Gillis saide-mail: he doesn’t see it as a good thing, and could create confuadvertising@autobodynews.com sion, just as it would if competing drugwww.autobodynews.com stores had different standards for aspirin that consumers had to try to sort through.
“Multiple standards often signify a diminution of the concept of standards,” Gillis said. He welcomed critics of CAPA to contact him to get a better understanding of what it takes to meet CAPA standards, saying that those who have often are surprised and impressed by what they learn. He acknowledged that all of the significant changes to the CAPA program over the decades have been the result of challenges by collision repairers. “We want that. We welcome that,” Gillis said. Frayer pointed out that when NSF launched its program, it began with a standard for non-OEM bumper parts, a category of parts CAPA wasn’t certifying until this fall. He also said he doesn’t see multiple standards as a bad thing. “If we Give were us interested in only one your opinion on m standard, we would probably be buying only OEM parts and say that’s the standard and why don’t we stop there,” Frayer said. “I’d argue that publisher@au both CAPA and NSF are not the first standard but the second and third in the industry (after OEM). I don’t personally think that’s a bad thing.” Frayer was asked at CIC why he thinks the NSF program will succeed when CAPA The still struggles gaintimely acsourceto for ceptance byinformation shops, insurers, parts that every manufacturers and distributors. body shop “I think the people in thisneeds! room will make that decision over time,” CALL 800-699-8251 Frayer said. “I’m not going to comment directlyStart on that. Your I think FREE a year from now we’ll be talking again and Mail Subscription. see how we’re doing.”
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Autobody News Website www.autobodynews.com d. There is no requirement for testing of the parts outlined in the model, not any mention of traceability, and most importantly there is seemingly no responsibility resting with the insurer should they choose to involve themselves in repair decision such as part selection. The latest version of the Model, including suggested amendments from all interested parties is available from the NCOIL website. See http://www.ncoil.org/ for committee meetings, laws and resolutions.
Electric Vehicles to Sell About 1.4 M Units in Asia by 2015
Pike Research anticipates that China will be the largest Asia Pacific market for PEVs over the next five years, representing 53% of the region's total sales during that period. The vast majority of China's PEV fleet will be battery electric vehicles (BEVs), driven by a strong push behind this category by the central government. Plug-in hybrid electric vehicles (PHEVs) will be the largest category in Japan, which is expected to be the region’s secondlargest market for all PEVs.
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 47
CAA Holds 6th Annual Holiday Party in San Diego The CAA San Diego Chapter held their 6th annual Holiday Event on Friday November 19 at Tom Ham’s Lighthouse in San Diego. Dinner and drinks were served and holiday games were played at this annual mixer. For more information please visit CAA website: calautobody.com. Photos courtesy Drew Ford in La Mesa, CA.
(l to r) Larry Haley, Sam Porter, Kyle Bickford and Curtis Wood from Enterprise
The Drew Ford table
(l to r) Hilary Castro, George Coronel, Angie Hernandez, Amanda Smith and Shereen Najati
Drew Ford’s ‘Crazy Wives Club’ & Hop Sanchez
Games hosted by Emcee Baron Vaughn
(l to r) Ed and Sheri Mossuto and Nancy and Louis Pieper, from Bradley Allen Autobody
Want every job to be a bang-up job? We want to be your source for Real Volkswagen Parts. These dealers are Genuine VW Parts wholesale specialists.
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48 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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Virginia Body Shop Wins Vista Print ‘Make an Impression’ Contest Vistaprint, a leading online provider of professional marketing products and services to micro businesses, announced that DRP Collision Repair of Powhatan, Virginia has been selected as a winner of the Vistaprint “Make an Impression” contest. This unique micro business will receive a marketing makeover valued at $10,000 from Vistaprint. Over 875 U.S.-based micro businesses entered Vistaprint’s contest for a chance to receive one of four $10,000 marketing makeovers. The grand prize packages include a $600 HP gift card, a Web commercial produced by Pixability and a full marketing package—including a targeted direct mail
campaign—designed by Vistaprint’s creative design team. The goal of the contest was to give four deserving businesses the chance to take that next step and truly market themselves like they never had before. DRP Collision was the lone “start-up” to be selected as a contest winner. The reason they were chosen was based on owner Kendall Ickes’ compelling stance on customer satisfaction. Despite being a new business shop, the company is focused on customer satisfaction and making a big first impression. DRP Collision has already seen some success with a small marketing push, but expects to see more with the prize package.
“We are very excited to be selected as one of the contest winners,” said Ickes. “Getting your name out there as a new company is very tough. We have seen some success from our initial marketing efforts with brochures and flyers and can’t wait to work with Vistaprint to create our new materials. Hopefully it will help us drive more business.” Founded in 2010, DRP Collision Repair says it strives to achieve 100% satisfaction and backs up all of their work with a limited lifetime warranty. The company’s mission is to provide repairs and service that matches their 100 percent satisfaction guarantee and also offers free estimates and claim
Our parts in the trained hands of a professional.
handling. DRP Collision is fully-staffed with graduates or current enrollees of the J. Sargent Reynolds Community College AAS Degree program for Auto Body Collision and holds I-CAR Platinum certifications. “In this economy it is extremely difficult for new companies to get their name out to the community. We have heard from many businesses that one of the areas they cut back on first is marketing,” said Bridget O’Brien, vice president of marketing communications at Vistaprint. “Kendall’s team is focused on creating lasting relationships with their customers and our team is very excited to help them catch the eyes of potential customers.”
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 49
China’s Largest Automaker Plans 1% Stake in GM IPO
Tesla Offers Battery and EV Tech to Toyota, Others
SAIC Motor, China’s largest automaker, is in talks to acquire about a 1% stake in General Motors, according to the Wall Street Journal’s web site. The stake would be worth about $500 million. The automaker is prepared to sell more than $1 billion worth of shares to sovereign wealth funds in the Middle East and Asia, giving foreign investors about 16% of the IPO’s shares. The IPO will mark GM’s return to being a publicly traded company after it filed for bankruptcy protection in June 2009.
Tesla Motors has offered to license its battery and other EV technologies to Toyota and others, according to its CEO Elon Musk. Tesla has already contacted tie-up partners Toyota and Daimler and asked them if they are interested in licensing its technologies, Musk said. Tesla is also interested in partnering with Toyota in the area of customer service, Musk said, adding that Tesla’s cars can be serviced at Toyota facilities. Musk expects Japan to become the company’s largest market outside of the US. Two of Tesla’s major shareholders are Toyota and Panasonic.
This year, for the first time, GM could sell more vehicles in China than in the United States. So far in 2010, GM says its Chinese joint ventures sold 1,977,000 units, up nearly 36 percent. Over the same period, GM sold 1,819,000 vehicles in the United States, up 6 percent. Since industry sales in China are expected to exceed 17 million units this year—well above the U.S. market’s likely 11.5 million units—China is virtually certain to become GM’s biggest market this year. GM’s sales were up 20% from Oct. 2009.
Toyota Motor Corp sees U.S. new light vehicle sales rising as much as 13 percent next year, buoyed by several factors including a slight rise in sales of pickup trucks. Bob Carter, sales chief for the Toyota brand in the United States, said the company expects 2011 industry sales at between 12.5 million and 12.9 million, up from this year’s expected rate of 11.4 million to 11.5 million. U.S. sales are slowly recovering from the low of 10.4 million new cars and trucks sold in 2009, after a 10-year stretch when annual sales averaged 16.4 million vehicles.
China to become GM’’s Largest Market in 2011
Toyota Expects 13% Rise
Mercedes-Benz Financial is new Daimler Financier
LA Dealership to be first to sell Fiat brand in the U.S.
Ford Cuts Mazda Stake
AutoNation Sees Major Acquisitions in 2011
Daimler Financial Services has changed its name to Mercedes-Benz Financial Services USA. The change is the last step in a “clean sheet of paper” approach to the U.S. market, according to a company statement. The company separated from DaimlerChrysler Financial Services Americas in 2007 after Daimler sold Chrysler to Cerberus Capital Management. Nothing else will change for the financier, which remains the financial unit for Mercedes-Benz USA, its dealers and customers, as well as Smart USA dealers and customers.
Ford will be transferring the majority of its shares in Mazda to various business partners of the Japanese automaker, thus lowering its ownership stake. However, the two OEMs will remain strategic partners, according to Mazda. Ford has 11% ownership stake in Mazda. Ford will hold on to a 3.5% stake in the automaker and is transferring the rest of its shares to Mazda’s business partners. “Ford will remain one of Mazda's largest shareholders, and both companies are committed to continuing our strategic partnership,” said a Mazda spokesperson.
A factory-owned Chrysler dealership in downtown Los Angeles will be the first store to sell Fiat-brand vehicles in the U.S. when it opens the first week in January. Motor Village of Los Angeles will have three showroom floors and sell Fiat vehicles, along with Chrysler, Dodge, Jeep and Ram vehicles, said Ramon Cabral, sales manager at the dealership. The dealership has been known as La Brea Chrysler Jeep, is currently located about five miles west of downtown Los Angeles. Chrysler has owned La Brea Chrysler Jeep for about five years.
AutoNation CEO Mike Jackson is about to take advantage of industry stability and the falling price of dealerships. With 13 million in annual U.S. light-vehicle sales expected shortly, AutoNation plans to renovate or expand 24 stores (nine renovations will cost more than $5 million each) and open 11 completely new stores, including seven Fiat stores. The company is taking advantage of dramatically lower dealership and real estate costs. Jackson wants to have at least one of every brand in each of AutoNation’s 25 major markets.
See these Hyundai dealers below for all your collision parts needs! SO. CALIFORNIA
Drew Hyundai SAN DIEGO
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800-469-9731 858-300-3331 Fax Mon-Fri 7am - 6pm Sat 8am - 5pm cguth@hyundaisubaru.com www.kearnymesahyundai.com
50 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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Action Counts
Lee Amaradio, Jr. is the president and owner of “Faith” Quality Auto Body Inc. in Murrieta, California. Lee is president of the CRA as well as an advocate for many other industry groups. He can be contacted at lee@faithqualityautobody.com
My Customer, the Crash Test Dummy with Lee Amaradio Jr.
Action Counts
to explain even the smallest details to As 2011 approaches and we move forward into another year in the collision them and even offer them a cup of cofAmaradio feeJr. while they wait. We are concerned industry, we canwith be sureLee of one thing: vehicles are changing. The way we as about them and we want them to be collision repairers do business is also treated in a professional and honest changing. We are running our compa- manner. nies leaner. We are measuring our efThe entire collision industry has ficiencies and comparing our numbers really “stepped up” and made the cuswith other shopswith aroundSheila us. We have Loftustomers experience with collision reall become better at running busipair a much better experience than nesses. We have changed drastically ever before. Our customers trust us in how we manage our customer. We and we are beginning to replace the have improved our customer service. ‘alley body shop’ image of the past Many of us have started our own cuswith a new service-oriented ‘dealertomer marketing campaigns. We have ship’ image. with Sheila CSI programs that measure our Loftus cusBUT... While we were staffing up tomers’ satisfaction down to the last our offices and updating our claims detail. It would be safe to say that we processing and watching our numbers, have become customer-oriented comthere were few resources left over to panies. We communicate with our purchase training and equipment that customers better. We return their veactually fixes the cars. Most shops hicles faster. We give them completed have found themselves so caught up with Janet Chaney paperwork at the same time we give in the claims process that the repair them their vehicles. We take the time has become secondary to the handling
Your Turn Your Turn
Shop Showcase Shop Showcase with Janet Chaney
Industry Overview with Janet Chaney
Industry Overview with Janet Chaney
Industry Insight with John Yoswick
Industry Insight with John Yoswick
Industry Interview with Janet Chaney
of the claim. Getting the vehicle out within the cycle time allowance and making the metrics look right is more important than doing the research to know if you are even equipped and trained to repair the vehicles. In this economy very few shops will turn work away and this becomes very dangerous for the shop and the customer. So, while you may have the blessing of the insurance company and your numbers may look good and even your customer leaves happy, you unknowingly have sent them out in an unsafe vehicle because you really didn’t understand the proper repair procedure or use the proper OEM parts for that particular vehicle. Many argue that “Safety” is NOT a problem because there is no documented proof of a vehicle passenger getting hurt because of aftermarket bumper reinforcements or aftermarket structure parts such as core supports, etc. This is a foolish argument. Are you really saying there cannot be a safety issue because there is no proof yet? This argument is analagous to saying: ‘This intersection doesn’t need a RED LIGHT until we have some dead bodies.’ The tobacco companies knew that smoking was unsafe years before the bodies started piling up. They took the same stand: “There Is No Proof Smoking is Dangerous,” and continued doing business as usual. Big Tobacco cited the longevity of some smokers to ‘prove’ smoking was not hazardous to your health. We as a repair industry have stepped up our claims processes but we have neglected the collision repair itself. We reap the benefits of the one while the insurance company reaps the benefits of the other. We need to be efficient in both, but NEVER should the insurer control the repair process. It is not their business to repair collisions. It’s their business to handle claims and keep the costs down. No matter how many classes their adjusters attend, you would never assume they could repair a vehicle. We are still the ones liable for what we do, or don’t do, to each and every vehicle that rolls through our doors. We are the ones responsible for
the parts we use and for every circumstance in which we use them, so it is important to know the facts. It is important to invest in the training and to purchase the equipment necessary to call yourself a collision expert. We have a lot of so-called Collision Experts within our industry but as a shop owner you must be the real collision expert with the credentials to back up what you say and do. If you were a surgeon you would have years of training and certificates to justify who you claim to be. A surgeon can’t just talk some one into a surgery by inviting them into their garage that is set up as an operating room. Shame on those insurers that know about the crappy repairs that are being performed with crappy parts and crappy repair procedures. Shame on the crappy parts people for trying to deceive the insurers into thinking that a component test is a thorough and complete crash test when they know it is not. Shame on those collision shops that repair vehicles with out the proper knowledge and equipment. And shame on all of us for allowing this to happen when we all know the truth and the consequences. Would you send your kid to be operated on by an unlicensed doctor in a back yard clinic because there was a sign on the door? No. You would demand credentials that proved everyone knew what they were doing. You would want to see a sterile operating room, properly equipped to perform the necessary procedure. You would want to know the doctor was an expert and had only your kids’ best health in mind. I am a collision expert and I know there are some serious issues related to safety. I know that things must change because, as we speak, our customers are being used as crash dummies by those that continue to make false claims without the credentials to even have an opinion. The industry may never be fixed to the point it should be, but as collision shop owners the buck stops with you. Are you going to change the way you repair collisions or are you going to continue to make your customer a Crash Test Dummy?
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 51
Five More Las Vegas Families Receive Reliable Transportation at SEMA from NABC Imagine the negative impact a lack of reliable transportation has on a lifestyle. Getting to work, going to the doctor, or even grabbing a quart of milk at the store becomes a challenge. Most of us probably can’t imagine existing without a car at our immediate disposal, yet the United States Bureau of Transportation estimates that over 15 million Americans have difficulty getting the transportation they need.
Auto Zone Representatives with some of the SEMA Recycled Rides recipients
For this reason, the National Auto Body Council (NABC) is pleased to say that the lives of five deserving Las Vegas families was dramatically impacted on Thursday, November 4, at the SEMA Show located outside of the
Las Vegas Convention Center. Each of the families received the gift of a refurbished vehicle from NABC members through its Recycled Rides™ program. Las Vegas Mayor Oscar Goodman was in attendance, as he was last year. This was the second time within weeks that such a donation has occurred. Five other families also received vehicles from Recycled Rides at the NACE Show that took place Tuesday, October 12 at the Mandalay Bay Convention Center. Insurance companies Esurance, Allstate and State Farm donated the vehicles to be repaired. NABC members Sterling Collision, 911 Collision and Gerber Collision & Glass were responsible for refurbishing the vehicles. The recipient families were all graduates of the Family Promise of Las Vegas program, a non-profit interfaith network that provides support to families in crisis. The first family included a mother of three that could no longer afford her apartment after being recently laid off. After only 44 days in the program she is
Matrix System Walks Away as a Winner with Salt Eraser®
Matrix System Automotive Finishes, a leader in aftermarket paint products, won the New Product Showcase in the Individuality category at the Automotive Aftermarket Products Expo (AAPEX) for its Salt Eraser. Matrix System arrived at the AAPEX Show for the first time ever and won an award in the Individuality category. This included products that enhance the appearance of a vehicle or the appearance of specific components on a vehicle, such as chemicals, paints, decals, waxes and lights. Salt Eraser was featured as an innovative new product and was prominently showcased for all buyers to see. Salt Eraser is a revolutionary new product that removes stubborn salt stains from any fabric quickly and effortlessly — without scrubbing. It penetrates the fiber deeply and breaks up and evaporates the salt within minutes of application. Salt Eraser safely eliminates salt from floor mats, carpets, rugs, and runners. It cleans, freshens, and revitalizes complete car interiors without any odor. Salt Eraser is an ideal solution in the salt states located in New England, Middle Atlantic, and Mid-West areas of the United States. Additionally, this product is great for many home and business applications such
as: cloth seats, rugs, carpet, shoes, and pants. Just spray…salt stains disappear. “The advantage of Salt Eraser is its unique formulation has been designed to specifically to remove salt stains from carpet and fabric and outperforms general interior and fabric cleaners,” says Jim Caporuscio, director of business development. “It also provides consumers in the Snow Belt states with a fast, simple, colorless and odorless cleaning solution to remove crusty winter salt to restore their vehicles interior, and retailers with stores in Snow Belt markets an excellent seasonal sales opportunity to increase their car care and general cleaning sales.”
About Matrix System Matrix System Automotive Finishes, subsidiary of Quest Specialty Coatings, is one of the industry’s most successful manufacturers of high quality color, clearcoats, primers, hardeners, and reducers. With an excellent product line, Matrix System has been able to convince body shops once loyal to a particular brand to convert and experience huge cost savings. For more information please visit www.matrixsystem.com.
52 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
back on her feet and the Chrysler Pacifica she received will be used to get her to her new job and her children to school.
Nadeeryah reacts after Nick Notte presents her with her new recycled ride
The second recipient is a father of two boys, one of whom is a special needs child. The Mazda they receive will be used to get the father to work and his boys to school. The third recipient is a single mother of three daughters. All are honor students. One is graduating high school this year in anticipation of attending a prestigious college. Their vehicle will help keep their scholastic winning streak alive. The fourth family consists of a couple with two children who were in
the Family Promise program two years ago and who married while in the program. Their donated Chrysler van will get mom to school and get dad to his job helping him to maintain his perfect attendance record at work. The fifth recipient is a single mother of two toddler daughters forced to take the bus to get to work, and to get her daughters to preschool. By receiving her recycled Acura MDX, mom will be able to breathe easier knowing that the only schedule she will now have to follow is her own. “We’re really happy to be back in Las Vegas to give five more families the vehicles that will help provide them a fresh start,” said Recycled Rides Chairman and President of Sterling Autobody Centers, Nick Notte. “These are just ten examples of the 150 families who this year will receive the gift of reliable transportation to make better lives for themselves due to Recycled Rides and its participants. I am grateful to be part of a project that clearly illustrates the giving nature of NABC members and the collision repair industry in general.”
The Collision Parts that Fit the Best rts Order Genuine Honda and Acura Parts from the following dealersh dealerships.
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Mickey Harris’ American Pride Camaro Commands Attention at SEMA Airbrush artist, Mickey Harris showed off his most recent art flour-
ishes on a 2011 Camaro at the Specialty Equipment Marketing Association (SEMA) show this year. The American Pride Camaro car was commissioned by GM in the summer of 2010 and was a top secret project for the artist. The car was painted at Mountain Muscle Cars in Cosby, TN, and Detailing right down to the rocker panels on the American Pride Camaro took about three months from start to finish. This car was the brainchild of Scott Settlemire from GM’s Show car division. Mickey Harris has been painting for 30 years and has produced thousands of murals on metal. Mickey began his professional career with American Pride Camaro on the prowl
the airbrush at the age of 19, in Ft. Walton Beach, Florida. He mastered the airbrush, becoming one of the leading airbrush artists in the world. Mickey also founded Airbrush Magazine in 1994 and has been the
President of the International Airbrush Association twice, once in 1992 and again in 1999. Mickey has been teaching the art of airbrushing for over twenty years. Mickey is now working with Badger Airbrush Co. of Chicago.
Painter Mickey Harris (R) with Marine guard and the American Pride Camaro on the SEMA floor
Shift into Genuine Nissan and Infiniti OEM Parts
Genuine Nissan and Infiniti OEM Wholesale Parts are superbly crafted to strict quality standards. Use of genuine OEM Wholesale Parts is a shift in the right direction toward trouble-free repairs and quicker turnaround. The following dealers proudly stock genuine parts for your Nissan or Infiniti repairs. Call your local distributor today!
CORONA NISSAN CORONA
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DOWNEY NISSAN DOWNEY
888-444-1355 (562) 334-1195 Fax Billy Smith-Parts Manager M-F 7-6, Sat. 7-5
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INFINITI OF BAKERSFIELD
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METRO NISSAN INFINITI OF MONTCLAIR MONTCLAIR
800-243-5575 (909) 625-4087 Fax Ask for Rita or Steve Large inventory available
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888-402-6915 (661) 835-0389 Fax M-F 7-6, Sat. 8-5
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N. CALIFORNIA
DIRITO BROTHERS NISSAN WALNUT CREEK
800-865-5792 (925) 934-8459 & (925) 934-8221 Fax
LITHIA NISSAN FRESNO
800-870-7779
559-436-6040 Parts Direct 559-438-0183 Fax M-F 7-6, Sat. 8-1
Etaylor@lithia.com www.lithia.com
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 53
Industry Insight with John Yoswick
John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He is the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.
SEMA Week Collision Meetings Focused on Industry Standards and Estimating Systems
rental vehicles, estimating systems or nounced that a majority of the mem“That’s almost four additional customer service indexing. The goal, bers of its “Collision Operations Comlabor hours,” Center said. “And this Collision industry meetings held in Schulenburg said, is to show that mittee” said they felt the 20 percent was on a 2006 vehicle. I’m curious Las Vegas in with November centered some programs are more restrictive formula was adequate enough to rehow many of those we’ve repaired in Ed Attanasio around significant changes in the esti- than others in terms of vendor choice, move the issue as an ongoing point of the last four years. It’s a big change.” mating systems, the development of and to show the burden and added negotiation or friction. Next step on standards formal industry standards, and related expense such requirements can have But Schulenburg said he voiced In another meeting held during industry issues. on shops participating in multiple to Audatex SCRS members’ view that SEMA week, the effort to develop forThe meetings were held in con- DRPs. the system should only prompt the esmalized industry standards for collijunction with the Specialty EquipAlso at the meeting, SCRS board timator when a raw bumper has been sion shops and repairs took another ment Market Association (SEMA) member and industry trainer Toby added to the estimate, allowing the esstep forward with the formation of a tradeshow in Las Vegas, a massive Chess made a presentation on the timator to determine the necessary committee to hire and fund a shortautomotive aftermarket event that in need to recalibrate the steering angle labor time to be entered. term consultant to oversee the next recent years has been working to at- sensor that is part of the electronic staAudatex has said it plans to restage of the process. tract more exhibitors and attendees bility control system on an increasing store some type of raw bumper prep About 30 people attended a from the collision repair industry. number of new ve- prompt to the system based on input half-day meeting organized by the During the previous six years, the hicles. Such sys- from the industry and review by its Collision Industry Conference (CIC) International Autobody Congress tems are standard technical advisory council. “Repair Standards Committee.” Atand Exposition (NACE) was also equipment on 85 In other discussion at the meet- tendees discussed the committee’s held in Las Vegas the same week as percent of 2010 ing, Bud Center of the Database En- efforts on the project to date, and SEMA, but NACE organizers new vehicles, and hancement Gateway (DEG) shared discussed the pros and cons of demoved that event several weeks earwill be required on several examples veloping formalized industry stanlier this year because of competition all new vehicles as of changes to the dards. Toby Chess from SEMA. of model year estimating sysAt the conclusion of the meetThe Society of Collision Repair 2012. The recalibration is an additems that have re- ing, the group formed a planning Specialists (SCRS) said its first-time tional procedure that must be done sulted based on group that will work to hire a tempopartnership with SEMA this year was after the vehicle alignment. DEG inquiries. rary project mansuccessful and that the association “It’s an added step, and there’s The DEG, develager to develop a will participate in the event again also no more 2-wheel alignments with oped and supplan, timeline and Bud Center next November. Although only about these systems,” Chess said. “That ported primarily budget for com125 people attended the first-ever won’t work.” by three national repairer associapletion of formalSCRS-sponsored classes at the event, Chess said he has not yet seen this tions, allows users to submit concerns ized standards SEMA attracted about 115,000 peo- necessary step added to the estimating via website (www.DEGweb.org) and for the creple overall, up about 20 percent from systems. He’s also concerned because about the accuracy of any of the Big ation or designaScott Biggs last year. The “Paint, Body and even though no “trouble light” will be Three estimating databases and systion of an entity Equipment” section of the show in- lit on the dash and the vehicle may tems. to oversee and implement adoption cluded more than 120 exhibiting handle properly under normal driving Center said one such inquiry, No. of the standards within the industry. companies, with many other compa- conditions even if the system is not 2839, submitted in late October, raised “We’re building that broad indusnies that sell to the collision repair in- calibrated, the electronic stability con- a concern about data in the Motor Intry consensus to take this massive dustry—including most of the major trol function may not work properly in formation Systems’ database (used by amount of work the CIC committee has your opinionServices on matters the industry. paint companies and many automak- a subsequent “emergency maneuver.”Give theus CCC Information esti- affecting done, and the massive amount of work ers—exhibiting elsewhere among the mating system) related to the replacethat still needs to be done, and give it 9,000 booths and 2 million square Estimating system changes discussed ment of rear floor pan on the 2006 the right structure and put it into perwww.autobodynews.com feet of SEMA exhibit space. At the meeting, Schulenburg also pre- Toyota Rav4. The inquiry indicated spective for everybody to be able to publisher@autobodynews.com CHECK OUT! SCRS also held a board meeting sented theITassociation’s discussions that this procedure requires the puruse,” said Scott Biggs, who helped during the event, reporting on the as- with Audatex regarding the automated chase and welding of five brackets chair the meeting. sociation’s recent and upcoming ac- “prep raw bumper cover” feature that and cross-members. The need for tivities. At the meeting, for example, Audatex added and then retracted these parts isn’t indicated in the sysSCRS Executive from its estimating system this fall. tem, the inquiry points out, and no Director Aaron The change provided an automated 20 labor time is listed in the system for Schulenburg said percent of the bumper refinish time the parts. To advertise To advertise The source the association is (plus refinish materials) for the raw Within three for days,timely Center said, call Advertising Sales at: call Joe Momber at: building a matrix bumper prep operation. But Audatex Motor had responded adding labor information thatbyevery 800-699-8251 showing which in- 800-699-8251 removed the feature from the system a times of 1.5shop hours for the seat crossbody needs! surer direct repair monthe-mail: after launching it, citing con- member and 1.3 hours for the rear ree-mail: advertising@autobodynews.com jmomber@autobodynews.com programs (DRPs) cerns raised by the industry. inforcement, and doubling the labor CALL 800-699-8251 Aaron Schulenburg require use of a Indeed, in October, the Automo- time for the third-row seat cross-memwww.autobodynews.com www.autobodynews.com Your FREE specific vendor for such services as tive Service Association (ASA) anberStart to 2 hours. by John Yoswick
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Mobile County, AL, Could Recruit High Performance Automaker, Region is Struggling The sign says ‘Future Home of the Alabama Motorsports Park’. But it could be the home of the Revenge Supercar, according to Fox 10 TV News Alabama/Florida. The Revenge is a high performance car for the high tier of the market, said former Mobile Mayor Mike Dow. Dow, who spearheads the racetrack movement, said automobile maker Revenge Supercars has its sights set on 200 acres of land on the Prichard-Saraland line. The land is on the Highway 158 corridor and Highway 45. Dow is asking the Mobile County Commission for support enticing the automaker to move to the area. He said Revenge Supercars would bring 600 jobs, with an average pay of $50,000. Revenge Supercars also plans to build a 4.2 mile endurance and high performance track at the site, he said.
idea as well. “Many of us who took a risk five, six years ago to bring something here. Without us there would be no Revenge, would be no nothing,” said Lanier. Dow won’t say how much financial support he’s asking the county for. “This is economic development. You know me, I don’t talk about the details. Regardless this car will pay for itself,” added Dow. Mobile County Commissioner Mike Dean said he is The $190,000 Verde Supercar, built by Revenge, has hesitant to jump on board so an aluminum and carbon fiber body. At 3500 pounds fast, since he isn’t sure how the it’s capable of 0-60 in less than five seconds plan would affect bond rates, and what if it doesn’t perform as well Willie Lanier invested in the original Motorsports Park idea to as Dow hopes it will. Prichard Mayor Ron Davis hopes commissioners will build a world class race track in north vote to support the project. Mobile. Lanier said he’s behind this “Eighteen suppliers have shown an interest in our area if the automaker comes here. Three have committed to coming, if it does,” said Dow.
“I went in with a hope and a prayer to hope that their hearts are in touch with mine. This could help everyone, especially the city of Prichard,” said Davis. Davis said it could completely change Prichard’s tax base. Residents in Prichard said this economic boost is just what the city needs. Especially a city some consider is on its last leg. The city is struggling to pay its pensioners, and facing heightened crime and poverty. Officials said the automobile plant wouldn’t replace the racetrack, it would help jump start the project. It’s a project politicians, business owners and residents alike are counting on in Prichard.
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President Obama Says Auto Industry is “Again on the Rise,” Republicans Still Skeptical President Barack Obama said GM’s return to the stock market shows the U.S. auto industry is on the rise and will re-
sult in taxpayers getting their money back from a government bailout. “Today, one of the toughest tales of
the recession took another big step towards becoming a success story,” Obama said at the White House after GM raised more than $20 billion from investors. GM received a $49.5 billion taxpayer bailout last year and the U.S. Treasury will get as much as $13.6 billion from the initial public offering. For taxpayers to be fully repaid, the remaining shares held by the government would have to be sold at an average of about $53 each to make back its total investment, Bloomberg data show. GM gained 3.6 percent to $34.19, paring a climb of 9.1 percent. Obama defended the politically unpopular bailout of GM and Chrysler Group LLC. Failing to act would have “resulted in economic chaos,” he said. “We’ve still got a long road ahead and a lot of work to do to rebuild this economy,” Obama said. “We are finally beginning to see some of these tough decisions that we made in the midst of crisis pay off.” He said taxpayers are “now positioned to recover more than my administration invested” in the company. The IPO would lower the government’s stake to 37 percent from 61 percent. White House press secretary Robert Gibbs said earlier today that the administration hopes the government can sell its stake in GM by mid- to late 2012. The bailouts were cited by some Republican critics of the administration during the campaign for the Nov. 2 midterm congressional elections. Republicans won a majority of seats in the House of Representatives and narrowed the margin held by Obama’s Democratic Party in the Senate. House Republican leader John Boehner of Ohio, set to become House
speaker in January, today continued criticism of the bailout. Boehner said GM could “have been handled in a more orTo advertise derly call way by a bankruptcy Sales judge without Advertising at: the heavy hand of the federal govern800-699-8251 ment,” apparently forgetting that the bankruptcy process itself cost $60 billion, and e-mail: thatadvertising@autobodynews.com no private consortium stepped forward or could have financed that much. In an Oct. 7–10 Bloomberg National www.autobodynews.com Poll, 34 percent of adults said they believed the automaker bailouts would lead to a stronger economy, while 41 percent said it would weaken the economy. Fortyfive percent of likely voters said they were See the N less likely to support a congressional candidate who voted in favor of the aid. GM has said repeatedly that it wants to shed its ‘Government Motors’ www.autobodyn image. As far back as August, Company Chairman Ed Whitacre said he was eager for the U.S. to sell its shares because it would boost employee morale and help GM sell more vehicles. The Obama administration stepped in to aid GM and Chrysler with money from the $700 billion Troubled Asset Relief Program after Congress failed to act. The administration has cited a study that shows the aid helped save more than 1.3 million jobs. Obama made repeated trips to automobile factories over the summer to highlight their success. “A lot of the public animosity to the bailouts is based on principle as much as it is on performance,” said Chris Borick, director of the Institute of Public Opinion at Muhlenberg College in Allentown, Psylvania. “Even the good bottom-line news from GM won’t necessarily overcome the broader dislike of government support for struggling corporations.”
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Chief Announces Chief University, Design Based Repair Training at SEMA Chief University, the trusted training arm of Chief Automotive Technologies, introduced a new Design Based Repair course for collision repair technicians and estimators at the Specialty Equipment Market Association (SEMA) show this year. “Design based repair” means following OEM repair procedures to efficiently, economically and properly return a collision-damaged vehicle to its original design specifications. As vehicle manufacturers continue to develop new designs incorporating a wide range of advanced materials, it is essential that technicians repairing those vehicles after a collision thoroughly understand the diverse metals, fibers and plastics used, as well as the processes for reforming, reshaping and replacing them. “Change is occurring at a staggering rate within the automotive industry as manufacturers engineer solutions to meet federal mandates for improved crash survivability and increased fuel economy,” says Richard Perry, Chief training manager. “What
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was once a common misalignment may no longer be an obvious repair. In modern vehicles, collision damage may be transmitted to areas that previously would have been unaffected in a similar accident. Technicians who haven’t been trained to look for this damage can easily miss it, resulting in supplements and longer repair cycle times. As a leader in collision repair training, Chief is dedicated to providing education and training on how to best return damaged vehicles to preaccident condition through design based repair techniques.” The Chief University Design Based Repair course teaches a systematic approach to damage analysis that accurately reveals the structural, steering and suspension damage present in a vehicle, as well as procedures for correcting that damage. Because accurate vehicle height, length and width measurements are critical to a quality repair that meets OE design specifications, computerized measuring is also covered. Technicians attending the twoday Design Based Repair course will:
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•Become familiar with advanced steels and other sophisticated materials currently used in vehicle design. •Understand how these materials are used and the repair methods they require. •Understand the strategic placement of these materials in a vehicle’s structural design. •Understand the principles of collision theory and how they apply to newer vehicles. •Learn a systematic approach to structural damage analysis. •Learn to measure collision damage and verify visual inspection findings. •Participate in hands-on repair methods. Chief University’s Design Based Repair course combines classroom training with hands-on demonstrations and practice. It is led by professional certified instructors in training facilities across North America. A $655 registration fee includes comprehensive training materials and a certificate of completion. Chief University offers courses for collision repair technicians, esti-
mators and insurance appraisers. Most are approved for I-CAR points through the I-CAR Industry Training Alliance program. Chief training also has been certified by the National Institute for Automotive Service Excellence (ASE) for compliance with the Continuing Automotive Service Education (CASE) Standards. Additional Chief training topics include: Computerized Measuring Training, Full Frame Analysis & Repair Planning, Unitized Body Analysis & Repair Planning, Advanced Steering & Suspension, Advanced Frame Analysis, and Structural Damage Analysis. Design Based Repair will be offered twice in December and numerous times throughout 2011. To register, visit: www.chiefautomotive.com or call customer service at (800) 445-9262.
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FIAT Plans Big for US Auto Sales in 2011
Utility Companies Are Apprehensive About Electric Cars
I-CAR Premieres New Vehicle Technology and Trends Course at SEMA
May Hail Storm ‘Disaster’ Now Considered Boon for Oklahoma City Economy
Chrysler plans to have the new Fiat 500, a mini-car with European styling and reduced fuel emissions, in showrooms by February or March. Fiat took over management of a failing Chrysler Group last year and is close to making a profit there as it revamps Chrysler’s cars and trucks. Now, Fiat sees an opportunity to reintroduce its brand and get ahead in the fledgling U.S. small-car market. Fiat introduced two Fiat 500s at the Los Angeles Auto Show this month, a three-door hatchback and a convertible version. The hatchback is set to go on sale in the United States next month, with the convertible to follow in 2011. Electric and high-performance versions are planned in 2012, and a four-door version after that. Fiat 500’s starting price will be $15,500 next year, according to Chrysler—”significantly less” than BMW AG’s Mini Cooper, a similar car, which starts at $20,000. The car will be assembled in Toluca, Mexico. Its 1.4-liter, fourcylinder engine will be produced at Chrysler’s Dundee, Mich., plant.
I-CAR, the Inter-Industry Conference on Auto Collision Repair, has announced that it will introduce a new course on November 2 during the SEMA Show at the Las Vegas Convention Center. I-CAR’s new course provides training on the latest vehicle technology and its implications during the repair process. Vehicle Technology and Trends 2011 (NEW11) is an instructor-led course that offers students information on the many features surrounding new vehicle designs and innovations. Students will learn about new materials and equipment, changes in vehicle makers’ procedures, and government regulations. Jeff Peevy, I-CAR Director of Field Operations said, “The ability to recognize new technology and its implications during the repair process can be key to achieving a safer, more complete repair, and improved operational efficiencies. This course will be beneficial to anyone involved in the repair process. Peevy continued, “This course provides detail on new features such as electric vehicles, fuel-saving tires, stronger aluminum, and side airbag pressure-based sensors. The course also touches on what might be expected in future innovations...”
This is the first time Fiat has shown a car bound for North America since it pulled out of the market in 1983. Back then, cars like the Fiat Strada were widely derided as rustprone and unreliable. But that’s ancient history to U.S. car buyers. Laura Soave, 38, who was appointed head of the Fiat brand in North America earlier this year, said there is very little knowledge of Fiat’s earlier poor quality among current buyers, who are drawn to the 500’s huggable look. The car has a rounded shape, high roof and circular headlights, and is 7 inches shorter than the Mini Cooper. The design evokes the original Fiat 500, which sold from 1957 to 1975 worldwide. Fiat hasn’t totally erased its quality problems. The brand ranked last or near last this year in customer satisfaction surveys in the United Kingdom, France and Germany, according to J.D. Power and Associates. But the 500 was tops in the mini-car category in the French survey, and it’s been popular with Europeans. More than 500,000 have sold since the car’s introduction in 2007.
I-CAR’s new course, Vehicle Technology and Trends 2011 (NEW11) will help students:
- Recognize new vehicle materials and designs, safety features, park-assist systems, collision-warning systems, and alternative fuel systems - Distinguish newer model vehicle features and technologies from their predecessors - Determine repair procedures for plug-in electrics, hybrid high-voltage batteries, and pressure-based sensors - Understand how the economic climate, new efficiency practices, and government mandates are contributing to rapid changes in vehicle technology - Identify the newest technologies on North American, Asian, and European vehicles - Identify the trends that will become tomorrow’s standard features
Registration for Vehicle Technology and Trends 2011 (NEW11) is currently open and new classes are being added to I-CAR’s class schedule on a continual basis. Information on scheduled instructor-led classes can be found on the I-CAR website at www.i-car.com or by contacting I-CAR Customer Care at 800-422-7872.
The first mass-market electric cars go on sale next month, and the nation’s electric utilities couldn’t be more thrilled—or worried, according to the Associated Press. Plugged into a socket, an electric car can draw as much power as a small house. The surge in demand could knock out power to a home, or even a neighborhood. That has utilities in parts of California, Texas and North Carolina scrambling to upgrade transformers and other equipment in neighborhoods where the Nissan Leaf and Chevrolet Volt are expected to be in high demand. The main obstacles to wide-scale use of electric cars are high cost and limited range, at least until a network of charging stations is built. But utility executives fret that difficulties keeping the lights on for the first crop of buyers—and their neighbors— could slow the growth of this new niche. Auto executives say it’s inevitable that utilities will experience some difficulties early on. “We are all going to be a lot smarter two years from now,” says Mark Perry, director of product planning for Nissan North America. Electric cars run on big batteries that are charged by plugging into a
standard wall socket or a more powerful charging station. A combined 30,000 Nissan Leafs and Chevrolet Volts are expected to be sold over the next year. Over the next two years, Ford, Toyota and every other major automaker also plan to offer electric cars. Governments are promoting the expensive technology as a way to reduce dependence on foreign oil, cut greenhouse gas emissions and improve air quality. Congress is offering electric car buyers a $7,500 tax credit and some states and cities provide additional subsidies that can total $8,000. The Leaf sells for $33,000 and the Volt sells for $41,000. Electric cars produce no emissions, but the electricity they are charged with is made mostly from fossil fuels like coal and natural gas. Still, electric cars produce twothirds fewer greenhouse gas emissions, on average, than a similarly sized car that runs on gasoline, according to the Natural Resources Defense Council. Driving 10,000 miles on electricity will use about 2,500 kilowatthours, or 20 percent more than the average annual consumption of U.S. homes.
A disaster has turned into huge dollars for Oklahoma City. City leaders say the massive hail storm that hit the metro back in May has brought big bucks to the city’s economy. Since the hail storm five months ago, the city has seen two or three times the spending increase compared to many other city’s around the state. Roofing companies, for
storm he’s ever seen. “I would say we’ve absolutely sold 2 or 3 times more than we did the year prior,” said Curtis. “Normal growth in sales tax is 4 percent. We’re looking at 14 percent for October, so it’s been a significant increase,” said Oklahoma City budget director Craig Freeman. Specifically, comparing this year to last, Oklahoma City’s sales tax collections are up 13.81 percent. Norman is up only 4.93 percent. Edmond is up 3.47 percent. Yukon is up only 1.49 percent. It’s clear the impact the May storm has had on the state. “We believe right now, two-thirds of the growth we’re seeing in sales tax is related to the storms,” said Freeman. It’s not just roofs, auto parts businesses have also been booming. Even hotels and restaurants saw increases because of all the out of town workers. Unfortunately, city leaders say the economic boost is just starting to wind down.
one, have seen record business. “It’s the hardest I’ve ever worked in the 10 years since I owned my business,” said Mike Curtis. Curtis owns Crossroads Roofing, a local wholesale supplier of roofing parts. He says May’s hail storm brought in more money than any
www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 57
12 Accused in Louisiana Staged Vehicle Crashes
A Claiborne Parish family and a handful of other individuals have been indicted by a federal grand jury in connection with a series of staged vehicle crashes in several north Louisiana parishes over a five-year period, according to the Shreveport Times. The 12 defendants were arrested in November on charges of conspiracy, mail fraud, wire fraud and health care fraud. They include Bobby Lee Kimble, 39; Johnny Kimble, 45; Larry Kimble, 30, of Athens; Roy Kimble, 31, of Arcadia; Tony Kimble, 24, of Homer. Also, Monica Jenkins, 22, of Athens; Latiffy Robinson, 27, of Homer; Mary Lee Tate, 24, of Arcadia; Shuntorian Turner, 30, of Minden; Joe Abbott, 51, of Arcadia; Marcus Kimble, 27, of Arcadia; and Damario Henderson, 21, of Homer. The state police, Minden Police Department, Claiborne Parish Sheriff’s Office and the U.S. Marshal’s Task Force jointly apprehended nine of the suspects initially. The next day, two surrendered to state police investigators at the U.S. Courthouse in Shreveport. One of the defendants, Henderson, is incarcer-
ated at the Claiborne Parish Detention Center on an unrelated theft charge and will be taken into federal custody at a later date. State troopers assigned to the Region II Criminal Investigation Division’s Insurance Fraud Unit/Auto Theft Unit at the Monroe field office conducted the investigation that began in May 2008. Their investigation indicated the Kimble family of Athens and the others were staging vehicle crashes, prompting fraudulent insurance claims to be filed with various insurance companies that netted over $40,000. They were indicted Sept. 24. This is not the first time indictments have been for staged car crashes. In 2006, 15 people, most of whom were from Ringgold, were indicted for conspiracy to commit mail fraud and mail fraud. Some had additional charges of health care fraud. Another ring was busted in 2004 in Red River Parish. Eighteen people, including 16 from Coushatta, were indicted on charges of conspiracy and mail, wire and health care fraud. Twenty traffic accidents were staged between June 1999 and July 2001.
Wicklund’s CARSTAR Honors Kansas City Area Veterans On November 9, Wicklund’s CARSTAR Collision Center honored America’s active duty and military veterans with a special celebration as part of National Military Month. The event featured a free celebration for all veterans and active duty military members and their families, an appearance by the Kansas City Royals and presentation of a vehicle to a Kansas City area veteran by Cars 4 Heroes. Wicklund’s CARSTAR, a member of the nation’s largest family of auto body experts, owned and operated locally for 40 years held the event at their Liberty, MO shop. Thanks to the support and generosity of sponsors, the event was free to veterans, active military personnel and their spouses. In addition to prizes, food, soft drinks and beer, the Kansas City Royals distributed tshirts to the first 600 attendees. At the event, Cars 4 Heroes presented a vehicle to Greg and Debbie Kerr from Buckner, MO. They were submitted by neighbors and received a 1992 Toyota Camry. The organization takes in donated cars, makes sure they are mechanically sound and pass a
Missouri safety inspection for Veterans and their families. As part of the celebration, Wicklund’s CARSTAR partnered with the VFW Foundation on its “Return the Favor” national campaign designed to boost morale and fill-in governmental assistance gaps for troops (all Service Branches) and military families anywhere in the U.S. Liberty-area customers can simply make a donation of $5 and have their name featured on the “Return the Favor” donation cards featured in the store. All monetary donations raised will be split between the VFW Foundation and the local VFW post. Wicklund’s CARSTAR is also holding an “Adopt a Troop” donation program in conjunction with their local VFW to collect supplies for the troops. Wicklund’s CARSTAR is located at 941 Sutton Place Liberty, Mo. 64038.
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volvo Genuine parts 58 DECEMBER 2010 AUTOBODY NEWS | www.autobodynews.com
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Bush Book: Automaker Bailout was “Responsible Action,” Fails to Credit Obama
George W. Bush says he decided to ‘rescue’ General Motors and Chrysler in November 2008 because of the huge consequences for the economy if he did not act—and he acted despite his belief that the carmakers had dug their own holes. “My economic advisers had warned that the immediate bankruptcy of the Big Three could cost more than a million jobs, decrease tax revenues by $150 billion and set back American’s GDP by hundreds of billions of dollars,” he writes of his bailout of the U.S. auto industry in his memoir, Decision Points.
Bush blames the auto industry’s woes on “decades of poor management” that “saddled automakers with enormous health-care and pension costs. They had been slow to recognize changes in the market. As a result, they had been outcompeted by foreign manufacturers in the product and price.” Bush also discloses that he rejected a request for a bailout before the 2008 presidential election from GM CEO Rick Wagoner. Bush says he reversed his stance that government should stay out of the auto business when he saw how a bankruptcy would hammer the economy. Bush also
considered his successor in the decision. “I told Barack Obama that I wouldn’t let the automakers fail,” Bush writes. “I won’t dump this mess on him.” President Bush announced on Dec. 18, 2008, that the U.S. government would provide GM and Chrysler $13.4 billion in emergency funding. An additional $4 billion was made available for the car companies in February. This funding allowed the companies to survive until bankruptcy reorganization saved them. At the time President Bush said: “These are not ordinary circumstances,
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in the midst of a financial crisis and a recession allowing the U.S. auto industry to collapse is not a responsible action.” In his reflections on the subject recently Bush made no mention of his efforts being a stop-gap measure or Obama’s follow up to the crisis. The Obama administration financed the bankruptcy reorganization of GM and Chrysler, effectively rescuing the U.S. auto industry, including Ford, which has acknowledged it would have been decimated by Tier 1 (supplier) failures in the domestic supply chain. See related details on the GM IPO this issue.
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www.autobodynews.com | DECEMBER 2010 AUTOBODY NEWS 59