December 2012 Western Edition

Western Edition California Nevada Arizona

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CDI Asked by CAPA to Reinstate Language On Certified Aftermarket Parts The California Department of Insurance in October issued the latest amendments to its proposed aftermarket parts regulations. Among the changes was the complete elimination of language pertaining to certified aftermarket parts. The result is that, as they stand now, the regulations treat all aftermarket parts the same, certified or not.

In an Oct. 23 letter to Commisioner Jones, the Certified Automotive Parts Association (CAPA) called on California Insurance Commissioner Dave Jones to reconsider the elimination of the certified parts sec-

tion. CAPA Executive Director Jack Gillis said, “The Department has joined with body shops, not only to maintain the status quo, but to ignore the only effort designed to protect California consumers from both poor quality and overpriced parts.”

The latest revision of the proposed regulations does not eliminate the requirement that insurers specifying the use of non-OEM crash parts must warrant those parts to be “at least equal to the original equipment manufacturer parts in terms of like kind, quality, safety, fit, and performSee Certified Aftermarket, Page 50

Sandy’s Total Economic Damage May Reach $50 Billion, 250,000 Flood-Damaged Vehicles

Toyota Develops and Announces ‘Predictive Estimating’ Tool—Called ‘Game-Changer’

by John Yoswick

Representatives of Toyota drew multiple rounds of applause at the Collision Industry Conference (CIC) in Las Vegas in November as the automaker previewed what it is referring to as a “predictive estimating” system for its vehicles.

Toyota’s Jerry Raskind called the system a “game-changer” in that rather than having an estimator start from a blank page and add line items based on what they know or can locate about OEM procedures, the new system begins with a complete estimate that incorporates all necessary parts and Toyota-recommended procedures, along with links to all related Toyota bulletins and published documentation.

The system allows the user to adjust the estimate, such as changing the type of part to be used or omitting a procedure not necessary based on the actual damage to the vehicle. Repairs can be substituted for parts replacement. But Toyota believes Jerry Raskind the system will help ensure estimates are more likely to be completed based on the automakers’ prescribed procedures.

“They’re more likely to include all the appropriate repair methodologies, procedures and parts, and won’t miss any of the key repair items,” Raskind said.

See Predictive Estimating, Page 24

SEMA Panel Discussion Reviews InsurerBacked Parts Ordering in Other Countries

by John Yoswick

A parking lot full of yellow cabs is flooded as a result of superstorm Sandy on Tuesday, Oct. 30, 2012 in Hoboken, NJ. (AP Photo/Charles Sykes)

$3 billion to its already substantial debt.

Eqecat said that the damage from the storm will likely be far worse than See Sandy Damages, Page 35

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Widespread power outages and subway shutdowns, added to the tremendous physical damage to property, may make Superstorm Sandy the second most expensive storm in U.S. history, according to the forecasting firm Eqecat. That would rank it right behind Hurricane Katrina.

Estimates also suggest that Hurricane Sandy will rank as the nation’s second-worst storm for claims paid out by the National Flood Insurance Program. With 115,000 new claims submitted and thousands more being filed each day, the cost could reach $7 billion at a time when the program is allowed, by law, to add only an additional

VOL. 30 ISSUE 12 DECEMBER 2012

The Society of Collision Repair Specialists (SCRS) held a variety of training sessions and panel discussions aimed at collision repairers during the SEMA show in Las Vegas in November.

Among the best-attended was one entitled, Bidding Wars, in which collision industry representatives from Australia, New Zealand and Canada discussed what they have seen in their countries after an insurer mandated use of a particular David Newton-Ross electronic parts procurement system.

“We’re not going to tell you what’s going to happen here in the United States,” David Newton-Ross, editor of a trade publication in Aus-

tralia, said as he opened the session.

“We’re going to tell you what’s happening in other countries. What happens here is up to you.”

Rex Crowther, who sold his two New Zealand shops in 2008 and is now editor and publisher of a collision repair trade magazine in that country, said PartsTrader launched there in 2005, and use of it was manRex Crowther dated initially by one large insurer.

With no domestic automakers and a vehicle population that averages 13.5 years in age (compared to 11 years in the U.S.), used parts dominate the New Zealand market, accounting for between 55% and 65% of all parts used, Crowther said. Mark-up on those parts dropped from 25% to 20% See Other Countries, Page 36

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2 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Contents

COLUMNS Attanasio: My Crazed 36 Hours at SEMA . . . 12 Franklin: What’s the Value of a Lifetime Customer? . . . . . . . . . . . . . . . . . . . . . . . . 57 Insider: Customer Service Has the Power— Don’t Perfume the Pig . . . . . . . . . . . . . . . 58 Sisk: CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More . . . . . . . . . . . 59

NATIONAL 3M Supports “Hire Our Heroes” Campaign to Support U.S. Veterans . . . . . . . . . . . . . 62 American Suzuki OK’d for $45M to Close US Dealers . . . . . . . . . . . . . . . . . . . 50 ASRW Releases Numbers from 2012 Event . 50 Audatex Announces Winner . . . . . . . . . . . . . 50 Automaker, OEM and Recall News . . . . . . . . 34 BASF and Finishmaster Win New Trial in Paint Lawsuit . . . . . . . . . . . . . . . . . . . . 51 Brindle’s Auto Body in St. Thomas, PA, Gets Home and Shop Double-Hit by Sandy . . . . 30

way to incorporate that in my sales process so I don’t have to give an estimate on site to the customer while they are standing there waiting. I will do my preliminary notes and come back in at my convenience and write the estimate and send it off for a quote request. It allows me at that point to free up myself to do other things internally, and then I go and review the estimate or quote…I can review it and export it back into my estimating software, and if I’ve already booked the job, I can go on after hours and order the parts for the estimate to the customer and keep moving. It has given me a lot of flexibility in my day. I really believe that this software is going to level the playing field for us smaller operators against the MSOs and some of the big players. I can do more in a day now than I was able to do before. With PartsTrader, I found a way to carve more time out of my day and truly operate more efficiently.” To view the PartsTrader video, go to www.autobodynews.com and search “likes Partstrader”. Steve Tomaszewski is a member of the “industry advisory council” that PartsTrader created last summer.

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

Audi Wholesale Parts Dealers . . . . .57 Automotive ID . . . . . . . . . . . . . . . . . .35 BASF . . . . . . . . . . . . . . . . . . . . . . . . .2 BMW Wholesale Parts Dealers . . . .41 Buerge Chrysler-Jeep-Dodge . . . . . .9 Capitol Mazda . . . . . . . . . . . . . . . . .36 Car-Part Pro . . . . . . . . . . . . . . . . . . . .7 Chief Automotive . . . . . . . . . . . . . . .21 Classifieds . . . . . . . . . . . . . . . . . . . .62 Downtown Motors of LA (Audi, VW, Porsche) . . . . . . . . . . .19 Drew Hyundai . . . . . . . . . . . . . . . . .28 Elk Grove Toyota . . . . . . . . . . . . . . .24 Enterprise Rent-A-Car . . . . . . . . . . .53 Equalizer Industries . . . . . . . . . . . . .15 Ford Wholesale Parts Dealers AZ, CA, & NV . . . . . . . . . . . . . . . .45 Galpin Motors . . . . . . . . . . . . . .27, 39 Garmat USA . . . . . . . . . . . . . . . . . . . .8 GM Wholesale Parts Dealers . . . . . .51 Haydell . . . . . . . . . . . . . . . . . . . . . . .11 Henderson Chevrolet . . . . . . . . . . . .46 Honda-Acura Wholesale Parts Dealers . . . . . . . . . . . . . . . . . .32-33 Hyundai Wholesale Parts Dealers . .49 I.C.E. Institute . . . . . . . . . . . . . . . . . .42 Kearny Mesa Subaru-Hyundai . . . . .26 Kia Motors Wholesale Parts Dealers .37 Levan Group, Inc. . . . . . . . . . . . . . .42

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

Western

Chess Teaches How to Make More Money Without Spending $$$$ . . . . . . . . . . . . . . 20 Clemson Students Unveil Deep Orange 3 at SEMA 2012 Show . . . . . . . . . . . . . . . . 49 CynCast Wins CEICA’s ‘E-Commerce Company of the Year’ . . . . . . . . . . . . . . . . 50 David Brunori of Matrix System Boosts Collision Repair Education Foundation Donations . . . . . . . . . . . . . . . . . . . . . . . . 31 Dealers Hit by Sandy Worry about Insurance, Inventory, Non-insured Business Losses . 55 Eagles Quarterback Michael Vick’s Flat Tire Draws a Crowd at Body Shop . . . . . . . . . 44 Education Foundation Awards $50,000 Makeover Grants at SEMA . . . . . . . . . . . . 43 Going Green Doesn’t Have to Be Expensive Says GRC-Pirk . . . . . . . . . . . . . 46 Guilty of Junk Thinking? ‘How to Think Better’ at SEMA 2012 . . . . . . . . . . . . . . . . . . . . . 54 High School Auto Body Students Restore Army Humvee . . . . . . . . . . . . . . . . . . . . . 55 Honda’s ProFirst Shop Recognition Program Puts Shops First . . . . . . . . . . . . . . . . . . . . 26 Hottest Car, Sport Compact, Truck and 4x4 SUV 2012 SEMA Show . . . . . . . . . . . 42 How Marketing Can Help Customer-Pay Sales. 28 Many NJ and NY Shops Still Closed in Aftermath of Sandy . . . . . . . . . . . . . . . . . 35 Massachusetts Shops Get EPA Grants . . . . . 44 Matrix Wand Captures Top New Product Award at SEMA Show . . . . . . . . . . . . . . . 18 MD’s Mark’s Body Shop Releases Car-O-Liner Video. . . . . . . . . . . . . . . . . . . 31 NABC Launched $1.5 Million Fundraising Effort for Wounded Troops in San Antonio . 48 New Alabama Association to Kick off Advertising Campaign . . . . . . . . . . . . . . . 51 New Mitchell ITR Trends Report Looks at Rising Deductibles and Severity Trends. . . 42 PartsTrader Produces Video of MI Shop Owner Who Likes PartsTrader. . . . . . . . . . . 3 Recycled Rides Gives Wheels to Six Needy Las Vegas Families During SEMA . . . . . . . 16 Repairer-Only Meeting at SEMA 2012 Provides Forum for Unfiltered Discussion . . . . . . . . 39 Rich Evans and Crew Unveil 2004 H2 Hummer at SEMA 2012 . . . . . . . . . . . . . . 56 Safelite Group To Acquire Southern Glass & Plastics . . . . . . . . . . . . . . . . . . . . . . . . 38 Sandy’s Economic Damage May Reach $50 Billion, 250,000 Flood-Damaged Vehicles . . 1 School Winner of Hood Art Contest Voted at SEMA. . . . . . . . . . . . . . . . . . . . . . . . . . 47 SCRS Claims SEMA Now the Premier Show for Collision Repairers . . . . . . . . . . . . . . . 30 SEMA Awards Best New Cutting-Edge Automotive Products . . . . . . . . . . . . . . . . 40 SEMA in Pictures: Car Candy . . . . . . . . . . . . 22 SEMA Panel Discussion Reviews Insurer-Backed Parts Ordering in Other Countries . . . . . . . . 1 SEMA Seeks “Collector Car Appreciation Day” Federally . . . . . . . . . . . . . . . . . . . . . . . . . 38 Seven Experienced Auto Dealers Elected to Congress . . . . . . . . . . . . . . . . . . . . . . . 38 Shelby Tribute Held at SEMA 2012 . . . . . . . . 56 State Farm Donates $70K to Collision Repair Schools. . . . . . . . . . . . . . . . . . . . . 50 Students and their Cobra at NY’s Bohlen’s Tech Center . . . . . . . . . . . . . . . . . . . . . . . 21 Toyota Develops and Announces ‘Predictive Estimating’ Tool—Called ‘Game-Changer’ . 1 VIP Auto Body Dedicates Plaque for 50th Anniversary of NY Fire that Killed Six Firefighters . . . . . . . . . . . . . . . . 44 WD-40 Keeps on Truckin’ When it Comes to Helping Others . . . . . . . . . . . . . . . . . . . 50

PartsTrader recently produced a video titled “PartsTrader Feedback from MI Owner” which features Steve Tomaszewski who has 36 years experience in the industry. Tomaszewski started out working in a small car dealership before getting a university degree in auto body repair and eventually owning his own business. In the 3:21 minute video, music plays and the words “First Impressions of PartsTrader” briefly scan across the screen before Tomaszewski starts to speak.

“I worry about the future and the sustainability of a business model my size...,” Tomaszewski says, “My initial thoughts were panic. Something new, something forced upon me by an insurance carrier…I was frustrated and angry…It was clunky and clumsy…”

The video suddenly stops, then flashes the words “After Using PartsTrader” and Tomaszewski is now making positive comments about PartsTrader: “I like the program, I like the concept. I like the efficiency that it gives me as a smaller repair facility. It gives me time to work the estimate and order parts on my schedule. I find that it takes away work. I’ve found a

Indexof Advertisers

REGIONAL ‘Information is Power’ Speaker Tells Santa Clara CAA Chapter . . . . . . . . . . . . . 15 100 Turkeys Delivered by Kadel’s Auto Body . 61 4th Generation Body Shop Celebrates 135 Years in Business . . . . . . . . . . . . . . . 14 ABRA Buys Colorado Shop. . . . . . . . . . . . . . . 4 Arizona High School Automotive Class Gets Cut Due to Dwindling Budget . . . . . . . . . . 11 CAA Inland Empire Discusses Identify Theft . . 4 California Propositions Will Affect Body Shops . 17 California Shops Help Train New Techs . . . . . 21 Californians Buy More Hybrids, Electric Cars Than Other Drivers Across the U.S.. . . . . . . 6 Californians to Benefit from New Electric-Car Charging Network. . . . . . . . . . . . . . . . . . . 10 Car Burns on Burns Avenue . . . . . . . . . . . . . . 4 Car Project for Kids Gives Hands-On Fun, Experience . . . . . . . . . . . . . . . . . . . . . . . . . 7 Carlsbad, CA, Auto Dealer Nominated for 2013 TIME Dealer of the Year Award. . . . . . 7 CDI Asked by CAPA to Reinstate Language On Certified Aftermarket Parts . . . . . . . . . . 1 Cooks Collision Opens 28th Location in Redwood City . . . . . . . . . . . . . . . . . . . . 50 Dead Woman’s Naked Body Found at Azusa Tow Yard . . . . . . . . . . . . . . . . . . . . . 4 Downtown Autobody Gives Bookmobile a New Paint Job . . . . . . . . . . . . . . . . . . . . . 4 Glendale/Foothill CAA to Roll Out Toyota Predictive Estimating Program . . . . . . . . . 39 Hemet Dealerships Go Solar . . . . . . . . . . . . . 10 Los Angeles/South Coast CAA Chapter Gets New Board . . . . . . . . . . . . . . . . . . . . 10 Man’s Body Found in Abandoned Repair Shop. 8 Mitchell Becomes Exclusive Claims Provider for AAA North CA, NV and UT Insurance Exchange . . . . . . . . . . . . . . 15 Phoenix Auto Body Shop Gives Deal for Vets. . 11 Phoenix Hosts Sherwin-Williams, Summit Software Digital Marketing Seminar . . . . . 53 Redding Shop Owner Wins SEMA trip from Chief . . . . . . . . . . . . . . . . . . . . . . . . . 8 San Diego Clean Cities Hosts Alternative Fuel Event . . . . . . . . . . . . . . . . . . . . . . . . . 4 San Diego Welding Shop and Pot Shop Catch Fire. . . . . . . . . . . . . . . . . . . . . . . . . 17 San Mateo Auto Body Shops Get Reprieve . . . 4 Santa Fe High School Hosts Car Show to Highlight Student Auto Collision Program . . 8 Train Sends Big Rig Crashing into Body Shop . 21 WIN Collision Center Hosts Verifacts Clinics . 16 Wounded Warrior Family Receives Mini-Van from Precision Collision . . . . . . . . . . . . . . . 6

PartsTrader Produces Video of MI Shop Owner Who is Also on its Industry Advisory Council

LKQ . . . . . . . . . . . . . . . . . . . . . . . . .63 Maita Subaru . . . . . . . . . . . . . . . . . .44 Mazda Wholesale Parts Dealers . . .59 MINI Wholesale Parts Dealers . . . . .40 Mitsubishi Wholesale Parts Dealers .54 MOPAR Wholesale Parts Dealers . .25 Moss Brothers Chrysler-Jeep-Dodge .5 Nissan/Infiniti Wholesale Parts Dealers . . . . . . . . . . . . . . . . . . . . .52 North County Kia . . . . . . . . . . . . . . .14 Preval . . . . . . . . . . . . . . . . . . . . . . . .64 Prevost . . . . . . . . . . . . . . . . . . . . . . . .6 Reliable Automotive Equipment . . .16 Replica Plastics . . . . . . . . . . . . . . . .43 Riverside Metro VW-Honda-HyundaiNissan-Mazda . . . . . . . . . . . . . . .29 Shingle Springs Nissan-Subaru . . .38 Sierra Chevrolet-Honda-MazdaSubaru . . . . . . . . . . . . . . . . . . . . .31 Solution Finish . . . . . . . . . . . . . . . . .56 Star-A-Liner . . . . . . . . . . . . . . . . . . .10 Subaru Wholesale Parts Dealers . . .47 That’s Included . . . . . . . . . . . . . . . . .4 Timmons VW-Subaru . . . . . . . . . . . .20 Toyota Wholesale Parts Dealers . . .61 Volkswagen Wholesale Parts Dealers .55 Volvo Crash Wholesale Dealers . . .58 Weatherford BMW . . . . . . . . . . . . . .13 Wedge Clamp System . . . . . . . . . . .17

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 3

San Mateo Auto Body Shops Get Reprieve The city of San Mateo is backing off enforcement of auto shop vehicle lifts and temporarily not issuing any new permits, saying it would rather find solutions with businesses who were hit with costly violations in recent weeks during inspections for other public nuisance problems.

“We understand this came as a surprise to many in the auto shop community and we are aware of and sensitive to the concerns which have been expressed by the business owners,” City Manager Susan Loftus wrote in an Oct. 19 letter to the shops.

While the auto lift code enforcement is on hold, Loftus said other unrelated violation such as parking, car repair on the streets and garbage must still be fixed.

The letter was a relief to Joseph Boyd of Metric-tech on South Claremont Street.

“They approached the whole situation wrong. They should have come to us first about problems with parking and people working on the street but they didn’t. That totally blew my mind when they did that,” Boyd said.

Boyd’s shop and more than a dozen others located in the area of South Claremont Street and South

San Diego Clean Cities Hosts Alternative Fuel Event

In California, the San Diego Regional Clean Cities Coalition celebrated the use of alternative fuel and advanced technology vehicles during its National Alternative Fuel Vehicle Day Odyssey event held Oct. 23 at the California Center for Sustainable Energy.

San Diego Clean Cities’ event was one of more than 160 held concurrently across the United States.

National AFV Day Odyssey was created by the National Alternative Fuels Training Consortium, a program of West Virginia University, in 2002 and held every two years since.

“We are pleased to join Odyssey 2012 as we continue to drive change across America,” said Kevin Wood, Coordinator of San Diego Clean Cities. “With our event we will spread the message of embracing alternative fuel and advanced technology vehicles and commemorate Odyssey’s Decade of Difference.”

The San Diego Odyssey event included presentations from experts in alternative fuels and technologies including propane, natural gas, biofuels, and electricity. Participants learned about the incentives available for alternative fuel vehicles.

Railroad Avenue met with City Attorney Shawn Mason earlier to say they were unfairly singled out for an array of code enforcement issues, including vehicle lifts.

Warning letters said the owners could be hit with a $2,000 administrative fee plus daily civil penalties if the owners did not comply by a certain date.

Boyd, with 18 years in the industry, said needing a special permit for lifts was news to him and the others.

He felt the city was looking for anything on which to knock the repair shops and added a number of his customers also found the situation concerning.

The city began notifying and inspecting businesses after receiving complains about “particularly excessive” double parking, repair work on the street, visible garbage and lingering graffiti, according to Loftus’ letter.

In her letter, Loftus told owners no new warning letters will be issued for lifts without permits during this time and any letters received should be ignored until further notice.

The city will contact the owners no sooner than early 2013 about next steps.

Dead Woman’s Naked Body Found at Azusa Tow Yard

The naked body of a dead woman was discovered in the trunk of a car at a Los Angeles County auto tow yard in Azusa.

The body was discovered in late October and later identified as 63year-old Gloria Darland of Covina.

A homicide investigation is underway to determine how Darland’s remains ended up inside the car.

The body was discovered after a man called to report a red Honda Accord parked on his property on Fish Canyon Road. The car was towed away from the property to a tow yard on Gladstone Street. During an inventory of the car, the trunk was opened and the woman’s body was discovered inside.

“At first it was just a shock,” the tow truck driver said. “It said on my paperwork that it had a spare tire, so I figured, you know, I have to open the trunk,” Cesar Beltran said. “So I opened the trunk, there were a lot of clothes inside the car, so I figured there would be a lot of clothes inside the trunk...Seeing the body laid there, that was pretty shocking.”

It remains unclear how the woman died. Beltran said there was no blood visible.

4 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

CAA Inland Empire Discusses Identify Theft

The Inland Empire Chapter of the California Autobody Association met Nov. 15 at a new venue, Mill Creek Cattle Company, in Corona, CA, and hosted guest speaker Lynnette Madsen from BPG Consulting. Madsen, president/CEO of BPG Consulting, Inc., addressed identify theft, federal laws and requirements.

Madsen is a certified ID Theft Risk Management Specialist and helped members become aware of mitigation plans, as well as IT requirements. In addition, the meeting covered the risk of ‘the cloud’ and third party downloads.

Car Burns on Burns Avenue

A car caught fire Nov. 7 in the Los Angeles area, outside ICS Auto Body on Burns Avenue, possibly damaging another car parked next to it. Apparently, the owner was not at the scene and it is not know what caused the fire. It took fire officials about 10 minutes to arrive to put out the blaze.

www.autobodynews.com C

ABRA Buys Colorado Shop

ABRA Auto Body & Glass recently acquired Southeast Auto Body, a collision repair shop based in Highlands Ranch, CO. The acquisition marks ABRA’s 19th repair center in Colorado, and the company’s 127th location overall. ABRA has a presence in 14 U.S. states.

“Our increased presence in the Colorado market is part of our strategy to accelerate ABRA’s national growth over the next five years,” said Duane Rouse, president and CEO of Brooklyn Center, MNbased ABRA.

Downtown Autobody Gives Bookmobile a New Paint Job

Sonoma County’s Free Bookmobile got a facelift. Last June, the van that travels county-wide distributing free books to low-income children and seniors, received a free paint job from Downtown Autobody and donated graphic by Rohnert Park’s Sign-ARama. “We are happy to give back to the community and to help further the bookmobile’s mission to promote literacy among those who might not have the means to buy books,” said Gus Trevena, the owner of Downtown Autobody in Rohnert Park.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 5

Californians Buy More Hybrids and Electric Cars Than Other Drivers Across the United States California car buyers are America’s top consumers of hybrid and electric vehicles, reports Edmunds.com.

Edmunds.com, an automotive shopping and information site, conducted a thorough analysis of hybrid and electric car buying in each of the 50 states (plus the District of Columbia) and found that California residents are buying a larger proportion of these vehicles.

Edmunds.com’s analysis of Polk’s new car registration data finds that 32% of all new electric vehicles and 24.7% of all new hybrid vehicles sold in the U.S. this year were registered in California, ranking the state first in the nation in both categories. The rates far exceed the state’s share of all new car registrations in the U.S., where California also ranks first overall at 11.1%, year to date.

The news comes in what’s shaping up to be the strongest year yet for alternative fuel vehicles nationwide.

Edmunds.com found that 3.4% of new car registrations this year (through August) were hybrid or electric vehicles, which is a full percentage point higher than the rate of 2.4% for all of 2011.

“Mainstream car buyers have been slow to accept hybrid and electric vehicles, but the numbers are trending up, and you can almost hear a sigh of relief from automakers who made big bets on these vehicles,” said Edmunds.com Sr. Analyst Jessica Caldwell. “As more alt-fuel vehicles come to the market and as prices for these cars become more affordable, we expect a higher percentage of shoppers will at least consider an alternative fuel vehicle the next time they’re buying a new car.”

Edmunds.com projects that at least 43 all-new conventional hybrids, plug-in hybrids, battery-electric vehicles, diesels and fuel-cell electric vehicles are planned for introduction in the U.S. from now through the 2015.

Thinking of making a switch to a hybrid or electric vehicle? The Hybrid and Electric Center at http://www.edmunds.com/hybrid/ provides comprehensive information on every alternative fuel vehicle on the market.

Edmunds.com lays out all the pros and cons of plug-in hybrid and electric vehicles at http://www.edmunds.com/carbuying/is-a-plug-in-hybrid-or-electriccar-right-for-you.html.

Joshua and Jammie Tanton from Joint Base Lewis McChord in Seattle, WA, recently were the winning recipients of a newly-recycled 2008 Honda Odyssey mini-van through a JBLM support charity Soldier’s Angels of Washington and a local program called Recycled Rides.

The National Auto Body Council helps body shops like Precision Collision Auto Body restore and donate vehicles to needy families.

Wounded soldier Joshua Tanton spent 10 years serving in the Army with two deployments. He was injured

in 2003 when deployed with the First Infantry Division in Iraq. He suffered brain injuries while driving in a convoy that was hit by a roadside bomb.

Mark Lovell, Director of Marketing at Precision Collision Auto Body said, “With almost 200 entries in our recent promotion via Entercom Radio KKWF 100.7 The Wolf, the Tanton’s were selected as our recipient family. Our stakeholders who really made this possible were LKQ Keystone in Kent, PPG Industries in Kent and USAA Insurance.”

Wounded Warrior Family Receives Mini-Van from Precision Collision and Recycled Rides Program

The Tanton family received a mini-van from Recycled Rides and Precision Collision Auto Body 6 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Carlsbad, CA, Auto Dealer Nominated for 2013 TIME Dealer of the Year Award Robert Hoehn of Hoehn Motors in Carlsbad, CA, has been recognized as one of the nation’s most successful auto dealers who also demonstrates a long-standing commitment to community service.

Sponsored by Ally Financial, the 2013 TIME Dealer of the Year Award will be presented at the National Automobile Dealers Association (NADA) convention in 2013.

The nomination of Robert Hoehn, dealer principal at Hoehn Motors, Inc., an Acura, Audi, Buick, Cadillac, GMC, Honda, Infiniti, Jaguar, Land Rover, Mercedes-Benz and Porsche dealer for the 2013 TIME Dealer of the Year award was announced Oct. 22 by TIME. Hoehn is one of a select group of 57 dealer nominees from across the country who will be honored at the 96th annual National Automobile Dealers Association (NADA) Convention & Exposition in Orlando, FL, on Feb. 9, 2013.

Hoehn was nominated for the TIME Dealer of the Year Award by Dean B. Mansfield, president of the New Car Dealers Association San Diego County. Hoehn and his wife, Karen, have two daughters.

In its second year as exclusive sponsor, Ally will recognize dealer nom-

inees and their community efforts by contributing $1,000 to each nominee’s charity of choice. Nominees will also be recognized on the recently launched website, AllyDealerHeroes.com, which highlights the philanthropic contributions and achievements of auto dealers across the U.S. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors.

Hoehn, 60, was chosen to represent the New Car Dealers Association San Diego County in the national competition – one of only 57 Robert Hoehn auto dealers from 17,000 nationwide – nominated for the 44th annual award.

“Our most meaningful success is the reputation we have in the San Diego community and, just as importantly, among our employees,” Hoehn said.

A 1970 graduate of Memphis University School in Memphis, TN, Hoehn went on to earn a BA in art history and English from Bowdoin College in Maine, graduating in 1974.

“I am a third-generation automobile dealer,” Hoehn said. The Hoehn family has been in the automobile business since 1928, when Hoehn’s grandfather opened a Chevrolet dealership in Memphis, TN. Hoehn’s father, who took over the company in 1938, planned to retire to La Jolla, CA, but instead founded Hoehn Motors.

“It was an ailing Honda, Mercedes-Benz and Oldsmobile dealership when my father purchased it,” he said. That was 1975 and Hoehn joined the operation in 1976. Along with his brother, they built the dealership into a successful enterprise. Today, his two daughters and nephew are the fourth generation to enter the family business.

Hoehn believes in giving back to his adopted hometown. He has created a “social responsibility” group at his stores, encouraging employees to choose worthy community projects that they can support.

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Car Project for Kids Gives Hands-On Fun, Experience

In Phoenix, AZ, kids are invited to participate in a program called Hands-On Street Ministries, a dropin center that allows youngers to work on cars and get some life lessons along the way. Recently, a 12year-old boy helped remove a car hood, take apart a door and unhook an engine, the Star Phoenix reported.

Hands-On started the car restoration project to engage kids in a proejct, teach life lessons along with some tangible skills.

“Look at these little guys. They are getting right in there and they want to work. They are pulling wrenches and having fun,” said Tom Bissonette, organizer and owner of Parr Auto Body. He worked closely with Hands-On director Rick Langlais to make the project happen.

The Hands-On center had some room to spare. With the help of donations, the shop got renovated and stocked with new tools.

Every volunteer has some kind of auto body or mechanic interest, but they aren't all professionals in the field. Bissonette says with a shortage of auto body technicians in the city, this may be a way to foster interest in the profession.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 7

Santa Fe High School Hosts Car Show to Highlight Student Auto Collision Program The student parking lot at Santa Fe High School in Santa Fe, NM, looked a lot more impressive the last Saturday of October than it normally looks during the school week.

On Oct. 27 about 60 vehicles were parked in the student lot, including shiny blue Camaros, spiffed up Mustangs, lowriders, muscle cars, a refurbished Model T Ford and even a 31-year-old firetruck looking nearly as fresh as it did responding to calls in the 1980s.

The occasion was a car show organized by teacher Chris Coriz and the students in his auto collision classes.

Coriz teaches students all aspects of auto body work—repair, sanding, painting —on the south campus of the high school. “We’re up to about 150 students this year,” he said.

The main purpose of the car show was to collect canned food for charity for the upcoming holidays, Coriz said. But it also was to raise money to buy tools and materials for his program. “Materials are getting expensive,” he said. While Santa Fe Public Schools provides some funds for materials, Coriz said to build a decent program, he needs to raise another $5,000 to $8,000.

Coriz said the program also needs money to send three students to the Skills USA leadership program and competition in Albuquerque, in which attendees will compete in refinishing, metal and plastic repair and other

skills.

The way the program works, Coriz said, is that people from the community bring in vehicles for repair, donating materials and money.

Beginning students usually start on simple repairs—basic fender benders and scratched bumpers. But sometimes there are more demanding projects for Coriz and his advanced students.

For instance, one of the cars in the show, a gold-colored 1927 Model T Ford owned by Joe Larranaga of Santa Fe, was refinished by Coriz’s

Redding Shop Owner Wins SEMA trip from Chief

Mike Bryant, owner of Artistic Body & Paint in Redding, CA, was the grand prize winner in Chief Automotive Technology’s “Show Us Your Chief Equipment” 40th anniversary Facebook campaign. Bryant won a trip for two to the SEMA Show 2012.

Bryant entered the giveaway by posting photos of his shop’s Chief EZ Liner pulling system to Chief’s Facebook page, www.facebook.com/ChiefAutomotive.

The “Show Us Your Chief Equipment” Facebook campaign was designed to celebrate Chief’s 40th anniversary as a leading manufacturer of vehicle frame-pulling equipment, computerized measuring systems and frame specifications. Bryant owns one of the oldest Chief EZ Liner frame racks still in daily use, serial number 0118. Chief estimates it was built in 1973. Bryant has used the rack at his shop since it opened 34 years ago. He bought it from the local dealership where he’d worked previously. Artistic Body & Paint has two additional Chief frame racks and a Chief computerized measuring system.

Bryant’s prize included air fare for two, three nights at the Flamingo Las Vegas, two SEMA badges, and $500 spending money.

Mike Bryant, owner of Artistic Body & Paint in Redding, CA., was the grand prize winner in Chief Automotive Technology’s “Show Us Your Chief Equipment” 40th anniversary Facebook campaign. Bryant’s shop owns one of the oldest Chief frame racks still in daily use. This EZ Liner was manufactured in 1973

The “Show Us Your Chief Equipment” campaign continues through the end of the year. Customers can enter the weekly drawing for anniversary merchandise by posting photos or stories about their Chief frame racks, measuring systems, accessories, training or support to Chief’s Facebook page. The photos and stories can be of any Chief equipment, regardless of age.

8 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

students. Larranaga said it cost him about $1,500 for materials. He’s now trying to sell the Ford, which won the “Best Oldie” prize at the show. His asking price is $25,000.

Another student project at the show was a 1981 American LaFrance fire engine sporting the same dark red color it did when it was in use by the Santa Fe Fire Department decades ago. The vehicle was in service through the 1980s until the ’90s, then sold to smaller fire departments in the state. It was located a few years ago in a field near Romeroville in San Miguel County, said Capt. Jason Arwood.

San Miguel County donated the truck to the Santa Fe Firefighter Museum.

With the help of a grant from the State Farm Insurance company, Coriz’s students restored it. “They did a great job,” Arwood said.

Coriz said this is his fifth year as a teacher. He’s a product of Santa Fe Public Schools himself, a 2001 graduate of Santa Fe High. “In fact, I took the class I’m now teaching,” he said.

“Anthony Anaya was my instructor. I took over after he retired.”

www.autobodynews.com C

Man’s Body Found in Abandoned Repair Shop

A man’s decomposed body was found Nov. 6 at an abandoned auto business on Mission Boulevard in Hayward, CA, police said.

Officers responded at 9:30 p.m. to the former Perry & Key Auto Repair business for a report of a body found inside the building, said Lt. Roger Keener.

A construction worker performing roadwork on Mission Boulevard smelled an odor and followed it to an abandoned building where he found the body then called police, Keener said.

Keener said it appears the man’s body had been there for some time based on the level of decomposition.

Police are calling it a homicide.

The man was later identified as 19-year-old Ernesto Calleros. He had been missing since Oct. 21. More than 80 friends and family members held a candlelight vigil on Nov. 11.

“None of us know what happened here,” said Mona Castro, the victim’s girlfriend of three years. “That’s the hardest part about the whole thing. We don’t have answers. The only answer we got was finding him here.” His mother heard that her son was last seen headed to a job and then he disappeared.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 9

Californians to Benefit from New Electric-Car Charging Network Californians will benefit from the nation’s most comprehensive electric vehicle fast-charging network to be built

by NRG and eVgo. NRG Energy, through its eVgo subsidiary, has been cleared to provide Californians with the nation’s most comprehensive electric vehicle (EV) charging network including fast chargers that allow drivers to add 50 miles of range in 15 minutes at premier retail environments. With the Federal Energy Regulatory Commission (FERC) approval of the agreement between the California Public Utilities Commission and NRG, eVgo can now begin work on a network that will raise the bar on convenience for EV drivers.

As part of its agreement with the Commission, NRG is investing approximately $100 million over the next four years in the eVgo California charging network, generating in the process more than 1,500 jobs and a total economic benefit of more than $185 million from employment and procurement of goods and services.

“This approval enables one of the most visionary ‘public-private partnerships’ ever conceived to move forward; enabling NRG to begin bringing the benefits of a comprehensive EV fast-charging network to the largest population centers in California,” said

David Crane, President and CEO of NRG Energy. “This network will open the door for more California drivers to enjoy the enormous benefits of EV ownership.”

The fee-based eVgo charging network will consist of at least 200 publicly-available fast-charging stations conveniently located at premier retail locations in the San Francisco Bay area, the San Joaquin Valley, the Los Angeles Basin and San Diego County.

As part of the agreement, NRG will also facilitate EV ownership for Californians who live in apartment buildings and other multi-unit housing complexes and for Californians hoping to commute to work in an electric vehicle through its ‘make ready’ commitment. eVgo will install the wiring for at least 10,000 individual charging stations located at offices, multi-family communities, schools and hospitals.

To help ensure electric vehicle charging is available to Californians of all income levels, NRG will install at least 20% of the fast-charging stations in low income areas and ensure that mixed-income housing locations are identified, evaluated, and pursued for the individual charging station make readies.

10 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

As part of the commitment to California, NRG will spend $5 million in collaboration with researchers and stakeholders on technology demonstration projects that will test new charging and related technologies and invest $4 million, in consultation with The Greenlining Institute, the California Plug-In Electric Vehicle Collaborative and other key stakeholders, to support low income car-sharing, workforce training, and related opportunity programs.

“With gasoline having just set new record highs, FERC’s decision today couldn’t be more timely or important for California drivers,” said Terry O’Day, Director of Business Development for eVgo in California.

“Now that we can start building eVgo fast-charging stations in California, EV drivers should expect range confidence from the first Freedom Station sites in early 2013 and many more to follow.”

In addition to the investment NRG will be making in EV infrastructure to benefit Californians, NRG will contribute $20 million to the California Public Utility Commission for rate payer relief.

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Hemet Dealerships Go Solar

In Hemet, CA, the Gosch Auto Group is making good use of its dealership rooftops. In a $4 million project, rooftops and carports at Gosch Ford, Gosch Toyota Scion, Gosch Hyundai and Inland Chevrolet in Hemet and Rancho Ford in Temecula, CA, are being covered with 1,600 solar panels. Eric Gosch, co-CEO for the auto group, said the panels will cover about an acre of roofs and produce enough electricity to power about 400 homes. He said the panels will reduce the five dealerships’ electric bills by about 85%.

Los Angeles/South Coast CAA Chapter Gets New Board

The Los Angeles/South Coast CAA Chapter has been dormant for the past year, but the chapter is coming back to life. Those interested in becoming a board member attended a dinner meeting Nov. 13 at WIN Chevrolet Collision Center in Carson, CA. Anthony Guinn, General Manager of WIN Collision Center, will be the chapter’s new president.

Guinn hosted the Nov. 13 meeting and officers were selected. A membership meeting is being planned for next year. (See also p. 16 this issue.)

Arizona High School Automotive Class Gets Cut Due to Dwindling Budget For more than two years, a high school automotive teacher in Sierra Vista, AZ, has been teaching two programs simultaneously.

Though it has required some creativity, automotive technology instructor Jeremy Clemons has literally been teaching auto tech and body shop at the same time, in five of his six daily class sessions.

This week the state informed Buena High School that this can’t continue and that one of the programs has to go, The Herald recently reported.

That means, despite high demand for the program, the automotive technology classes will stop at the end of the semester and Clemons will focus full time on paint and body shop. As the school’s only auto teacher, Clemon’s has put the programs on his back the last two years, even teaching through his planning period.

“We have enough students that want to take automotive technology and automotive collision care to fill three full-time teachers here and we’re not doing them a very good service,” Clemons said.

Having to stop teaching auto tech is the latest in the school’s struggles to run its Career and Technical Education (CTE) classes on reduced funding.

“It really hurts me, I was in this

program, I remember my teachers who inspired me to come back and teach,” Clemons said. “If you look at this whole wing of the school things are slowly going away … we don’t have money for it anymore.”

Next to the auto shop lies an empty construction classroom full of equipment but with no instructor, and

Jeremy Clemons, the Buena High School Auto Tech and Auto Body teacher, recently learned that the auto tech program will be cut. Photo from Herald/Review

a print shop that was recently shut down. These are examples of the financial constraints impacting all 11 of the high school’s CTE programs.

The district is pursuing an opportunity for these programs to be revitalized with an influx of state tax dollars triggered by a small local tax levy.

By joining the local Joint Technological Education District (JTED), the Sierra Vista district would receive hundreds of thousands of dollars that can only be spent on CTE programs.

Auto tech is Buena senior Micah Gamponia’s favorite class.

“Just coming to school, being able to actually work in a shop, it’s helped me realize that I like it a lot.”

Much of the work performed in the auto teach classes is to repair vehicles for community members who can use the help, Clemons said. It provides the students invaluable experience and offers the community a service.

If the district joins the Cochise Technology District, the cost to local homeowners would be capped, by law, at $5 per $100,000 of value and the return to the district is estimated to be about $700,000 in the first year, according to Chief Financial Officer Michelle Quiroz. That includes approximately $550,000 from the state and about $150,000 generated directly from the local tax.

Phoenix Auto Body Shop Gives Deal for Veterans

Capitol Collision Repair Specialists of Phoenix, AZ, offered a special deal to veterans for November, giving veterans up to a $500 deductible savings or a free rental car.

Eric Boyer, General Manager of Capitol Collision Repair, announced that any United States veteran can receive up to $500 off their deductible (10% of the bill) or a free rental car with any repair Capitol Collision completes during the month of November.

“Capitol Collision recognizes the sacrifices veterans and their families make for our country,” Boyer said. “We’re still in a recession and we need to help our veterans every way we can. Getting in an accident is a very stressful and expensive experience. We want to lighten the load as much as possible for our vets.”

“Veterans don’t need a coupon or anything. They can simply bring any kind of military ID to claim the offer,” Boyer said. “We’ll provide a free estimate and talk over repair options. We try to keep the process as straightforward and simple as possible — our loyal customers appreciate it and we know our veterans will too.”

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 11

Social Media for Shops

My Crazed 36 Hours at SEMA with Ed Attanasio

The late writer Hunter S. Thompson (known as the father of “gonzo journalism” and a long-time contributor to Rolling Stone magazine) wrote that he feared and loathed Las Vegas, yet he consistently returned there to get in various forms of trouble and test the limits of acceptable behavior.

Thompson would have loved SEMA and other automotive industry shows, because they’re great events for reporters to cover and offer a wide range of opportunities to get into mischief.

I know, because I have covered quite a few of these shows for many years as a freelance writer specializing in collision repair. I’m proud to say I survived them all. One year, I covered three in a row—SEMA, AAPEX and NACE, all in Las Vegas—and it nearly killed me. I know firsthand why many shops never attempt this schedule. After eight crazy 15-hour days and walking show floors for miles, I came down with a kind of walking pneumonia, which sidelined me for several weeks afterward.

I’m not saying shows like SEMA aren’t fun. In fact, they’re a blast, but they can also be exhausting and if you don’t pace yourself, you can get sick just like I did. Because industry shows, in many ways, are races with the clock running. You have a lot to achieve in a very limited period of time (in SEMA’s case, five Peter MacGillivray days), coupled with a plethora of fun events—like dinners, shows, cocktail parties, luncheons and even some wining and dining of clients or colleagues, in many instances.

Show burnout is a common ailment. Too little sleep, not enough liquids (or maybe too many of the wrong type), sleep exchanged for gambling or other endeavors, too much walking in the opposite direction, fast food, caffeine and sugar, and it all leads to either mental or physical exhaustion if not handled properly.

Peter MacGillivray is the vicepresident of events and communications for SEMA. He has attended every show since 1987, so he has stories to tell and advice to offer.

To avoid the feared SEMA burnout scenario, MacGillivray

Celebrities are always a big part of any SEMA show. Here I am with former Chicago Bears NFL star William “The Fridge” Perry as he represents Big Ass Fans (yes, that’s their brand name.)

shares a few helpful tips. “We tell our people to get humidifiers and put them in their hotel rooms,” he said.

“The air here in Las Vegas is very dry, so it will help them to sleep. I always have one running in my room.

Also get comfortable shoes, because you’re going to be walking miles and miles. And dress comfortably. We loosened up our dress code for SEMA employees two years ago and got rid of those suits. Now our staff wears button-down shirts and they look and feel much more relaxed.”

When you think about it, everyone at SEMA has a different agenda.

As a writer, I need to find interesting things to write about. As an exhibitor, your goal is to sell product and meet with as many customers as you possibly can in a very limited time. As a body shop owner, you want to learn about all of the newest products out there in the market and purchase the ones that are right for your business.

Since SEMA is not open to the general public (although many sneak in) everybody here has a distinct motive and plays a unique role.

Trying to find a particular booth is like playing the board game Battlefield. I was guessing most of the time

12 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

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

and walking in exactly the long direction without fail. Every time I was in the North Hall, the next booth I wanted to visit was in the South Hall.

I know SEMA has its own app, but why can’t they invent a GPS for directionally-challenged people like me? A handheld unit telling you that booth 17884 is approximately eight miles from where you’re currently standing and maybe design a route for you so you don’t have to zig-zag all over the Las Vegas Convention Center would be nice.

One topic that seems to come up every year at SEMA involves the use of attractive (usually scantily clad) women to help exhibitors as they promote their products and services. Do they attract the kind of customers companies want, or are people simply flocking to your booth to ogle these beautiful ladies?

MacGillivray explained that it’s a Catch-22, because the women will create traffic. But does it result in sales and/or can it damage the company’s reputation?

“We encourage exhibitors to let their products speak for themselves.

Anyone is going to appreciate a beautiful woman standing next to a car, lift or paint booth—but is it really beneficial to your bottom line? Many companies still use them and report it’s a useful marketing vehicle, but lately more and more are moving away from that strategy.”

Celebrities are a big part of SEMA—with many doing appear-

“The King of the Kustomizers” George Barris is always nice and spends time with everyone

ances. MacGillivray said, “We get the big names who want to attend and in most cases, they get in. Tim Allen, Jay Leno, Snoop Dogg, the guys from ZZ Top, race announcer Dave

McClelland, the “Voice of NHRA,” and many more apply for tickets and we always accommodate them because they add a little buzz to the whole affair.”

I always like to go around and see the celebrities representing exhibitors at their booths. This year I

Pretty girls are always used for marketing purposes at SEMA and always attract crowds of mostly men. These ladies were working the KIA booth as the carmaker unveiled its Super Hero Street vehicles

met former football star William “The Refrigerator” Perry (representing a company called Big Ass Fans), comic/ventriloquist Jeff Dunham, race drivers Danica Patrick (she’s even prettier in person and talked to me for at least 10 minutes),

Mitch (at right) and Tom Kelly from Crazy Paint proudly displayed their ’57 Chevy Blue Heaven creation at SATA’s SEMA booth. See Autobodynews.com for background on this vehicle

Dario Franchitti (3-time Indy 500 winner) and Mario Andretti; “The King of the Kustomizers” George Barris, the legendary custom car builder Gene Winfield and all of what I call the “paint/rebuilder stars” such as Mitch and Tom Kelly from Crazy Paint, Chip Foose, Rich Evans (who appeared at no less than five different booths) and Mickey Harris. Meeting them is always a thrill and every time I like to ask them at least one fun question.

See 36 Hours at SEMA, Page 18

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parts@weatherfordbmw.com www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 13

4th Generation Body Shop Celebrates 135 Years in Business

by Ed Attanasio

Many shops today spend a lot of time worrying about the ability to meet their weekly payroll and don’t have enough time to think about next week, let alone next year. So, when you hear about a shop that has been around for 135 years, your first response might

George V. Arth bought the Oakland Manufactory in 1877 and changed the name to George V. Arth & Son. Today, it is recognized as the oldest body shop west of the Mississippi

be shock, followed by curiosity. In this highly volatile, ever-changing industry, how has any collision-related business lasted so long?

When George V. Arth opened his shop back in 1877, there were obviously no DRPs, aftermarket parts, supplements or waterborne paint—or even cars for that matter. The country’s president was Rutherford Hayes and Thomas Edison had just invented the phonograph.

It all began when George V. Arth and his family arrived in the San Francisco Bay Area of California, after having made the long journey from Alsace Lorraine, France. A career blacksmith, Arth bought a small local shop named the Oakland Carriage Manufactory and promptly renamed it George V. Arth & Son. The business was wildly successful and quickly became well-known for performing toptier repairs on horse-drawn buggies.

But pretty soon the business model changed dramatically, when Henry Ford’s “horseless carriages” began roaring through the streets of Oakland.

The shop realized rather quickly that they would have to re-invent themselves to survive, so they embraced the technology and began repairing and painting these new motorized vehicles.

135 years and four generations later, George V. Arth & Son is still fixing cars in Oakland, CA, and flourishing, despite experiencing at least five recessions over the decades (including the Great One in the 1930’s); two major earthquakes and a professional

hometown football team that left and then came back again. Until someone can prove differently, George V. Arth & Son is the oldest continually operated family-owned auto body shop west of the Mississippi and maybe even in the entire country.

Ron Arth is the great grandson of George V. and the manager today. He started working at the shop in his early teenage years and has continued to work alongside his father, George W. Arth Jr. and his brother George Arth III in the family business. Ron believes that his shop is the oldest in the West, but he isn’t sure if it’s the oldest in the country. A national trade publication had a contest back in the early 1970’s and found two shops to be older on the East Coast, but that was almost 40 years ago and Ron has no idea if those two shops are still in business.

“To be safe, we just refer to our shop as being the oldest family-owned shop west of the Mississippi,” Ron Arth said. “I can’t imagine that there are very many body shops, or even mechanical shops that have been in continuous operation for 135 years.”

Ron took on full responsibility and management of the shop when his father stepped down and retired on his 65th birthday. Ron’s father, George W. Arth, Jr., is still going strong at age 86

those same footsteps by serving on the organization’s board and as president of the association for several years as well.

Today, George V. Arth & Son is still a family-owned and operated business, employing 2 people and fixing approximately 80 cars monthly

Ron cites several reasons for the company’s longevity and ongoing success, but being customer centric is the most important. “The fact that we’ve always been a family-run business is important. People like to see the same faces every time they bring their car in.

It provides them with a sense of stability in what is usually a stressful situation. It also allows us to build relationships which really are the foundation of our business. We now get customers whose parents and grandparents brought their vehicles here.“

Repairing more than 80 cars monthly and employing 12 people, Ron has also seen a definite change in the relationship between body shops and insurers. “Obviously, another one of the biggest changes that I’ve seen in this industry is the introduction of Direct Repair Programs (DRPs) that entered the picture about 15 years ago.

The insurance companies used to do the estimates themselves, but now we write most of them and often take the place of the insurance adjuster.”

What is one of the biggest changes in this industry? “It would have to be the technology, definitely. I remember when my father used to have to get a ledger sheet from our bookkeeper at the end of every day, so that he could know exactly where he stood financially. Then one day I showed him that we can do the same thing with just a couple of clicks of a mouse. He was shocked, but we assured him it was just as accurate, if not more so. With the variety of new computer management systems available today, it not only makes us better owners and operators, but saves us time with the overall estimating and repair process.”

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When cars started arriving in the early 1900s, George V. Arth & Son was ready to work on these new amazing contraptions

and stops by the shop on a regular basis, usually three to four times a week, just to check in, Ron said. “My father still plays a role here and actively attends Oakland Rotary meetings every Thursday,” he said. “These connections to the city were built over years and years of living and working here and they still help us to keep the shop strong.”

George W. Arth, Jr. was also one of the founding members of the East Bay Autobody Association, now known as the East Bay Chapter of the California Autobody Association. Ron’s father served as president and was on the board of the association for many years before finally retiring. His son has followed in

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‘Information is Power’ Speaker Tells Santa Clara CAA Chapter

by Ed Attanasio

in attendance.

“More than you’d think!” exclaimed one, while another said, “We’re 85% DRP-driven, and so it’s not a major issue for us.”

One body shop with several locations estimated that he loses $30,000 to $40,000 annually in operations he never gets reimbursed for. “They start denying certain things and what

How many times have you heard an insurance company tell you, We don’t pay for that! and you had to take their word for it? Because without any information to either confirm their claim or disprove it, you’re left hanging. It’s called “claim limbo” and it’s a situation body shops don’t want to be in, even though in many cases they end up there.

That’s why Chuck Gosney, the president of Collision Billing Services (CBS) in Jackson, MI, was telling body shops and personnel that information is empowering when it comes to dealing with insurance companies in a non-DRP situation. He was Parts Salesperson Mike Nelson (left) and Parts the featured speaker at the Manager Jeff Bright from Normandin Chrysler in Santa Clara County Califor- San Jose, CA, found the meeting instructive nia Autobody Association’s (SCC-CAA) October meeting held they’re doing is training us to stop in San Jose, CA, at Three Flames asking. But now we push back a little more, because charging for things like restaurant.

Is this a significant problem for test drives and detailing the vehicles body shops in northern California? I isn’t something we feel like we should asked a handful of owners/managers eat.”

Gosney said that the collision industry is probably unique, but for the wrong reasons. “Most other types of businesses see no difference between what the bill says and what they’re charging for, but not in this industry.

It’s become so prevalent, that many shops just accept it as a part of the game.”

CBS feels that any operation performed on a car should be reimbursed, without exception or interrogation. “We tell our subscribers to ask for everything; because that is the only way you’ll get paid for operations from the insurance companies.

If they paid for something one time and are refusing it the next time around, we want to have that record to call them on it. Without the information, they can say pretty much whatever they want and there is no accountability without the documentation. Otherwise, the insurance companies will try and underpay every single chance they get. That’s why we want raw data from the body shops, so that we can have a more comprehensive claims database, complete with stats from all of the

major insurance companies throughout the country.”

When CBS recognizes that certain insurance companies are denying the same operations over and over, they’re not afraid to pursue them in court, Gosney said.

It’s a viable technique for companies like CBS, but not a realistic alternative for body Chuck Gosney, shops, especially the president of small moms and Collision Billing pops, he explained. Services, was the “One shop evening’s speaker at the SCC-CAA’s owner we know recently sued an in- October meeting in San Jose, CA surance company for a $1,200 underpayment. He got everything he wanted, but it cost him $10,000 in legal fees. Was that a win for him? No. He won the battle but he lost the war.”

By creating a deep claims database, CBS is able to leverage its information and help its subscribers and the industry as a whole. “Our data See Information is Power, Page 48

Mitchell Becomes Exclusive Claims Provider for AAA North CA, NV and UT Insurance Exchange Mitchell International recently signed an agreement with AAA Northern California, Nevada & Utah Insurance Exchange to become the exclusive provider of auto physical damage claims processing solutions for the insurance company.

Under the agreement, AAA Northern California, Nevada & Utah Insurance Exchange will use Mitchell’s WorkCenter platform for all of its physical damage claims processing needs. The company will use WorkCenter for all assignment, appraisal, total loss, compliance, audit, desk review and shop communications with both direct repair partners and non-network shops.

“To continue to be a top-tier claims organization, we must leverage best-in-class technology throughout the entire claims process,” said Mike Randall, vice president of claims at AAA Northern California, Nevada & Utah Insurance Exchange.

“Mitchell was the vendor choice for us because we were pleased with the performance of its estimating and total loss products and also impressed with the reliability and configurability of the WorkCenter platform,” Randall said.

Mitchell said the agreement will improve AAA Northern California, Nevada & Utah Insurance Exchange’s operations in several ways. It will allow the insurance company to send assignments to any shop, improve the accuracy of its applications and tools, and reduce the re-keying of administrative data.

“We have seen an increasing number of customers seek the benefits of WorkCenter’s highly configurable end-to-end workflow options to improve the efficiency and accuracy of the claims process,” said Scott Kozak, senior vice president of sales and service for Mitchell.

“AAA Northern California, Nevada & Utah Insurance Exchange’s decision to leverage our estimating, total loss and now claims workflow solution is a testament to Mitchell's industry leadership in claims management technology,” he said.

Read all our Regional Editions Online at: www.autobodynews.com

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 15

WIN Collision Center Hosts Verifacts Clinics

On Oct. 16, WIN Collision Center in Carson, CA, hosted two Verifacts training clinics. More than 80 people attended with approximately 67 of those attendees being insurance adjusters and appraisers. The clinics covered training on hybrid vehicle repairs and MIG brazing. According to Anthony Guinn, WIN Collision Center

isolating (shutting off the power) a high voltage battery pack. The clinic included information on reducing costs, improving CSI and cycle times.

A certified GM technician was on hand with a brand new Chevy Volt.

The battery was removed to give insight on vehicle repairs and to answer questions.

The second clinic presented the principles of MIG Brazing, including the what and why of MIG Brazing, equipment needs, basic techniques, which vehicles makers are using this process, benefits and an overview of some OEMs requirements.

“Many people have either never heard of or had very little insight on the complications of the process, as well as the type of equipment needed to properly do the job,” Guinn said. "We have Anthony Guinn and Farzam Afshar, CEO of Veristarted to see residual success Facts Automotive from the clinic in a very short General Manager, the hybrid clinic amount of time and also made a lot of was very educational and gave a very friends. It was a good way to show the good view of the technical areas that quality of our business while educating our partners and potential partners are new to the industry.

The hybrid clinic included an in the industry.”

Guinn is also the new LA/South overview on the principles of hybrid vehicles, the safety precautions that Coast CAA Chapter president (see p. are required, as well as the basics of 10 this issue.)

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Recycled Rides Gives Wheels to Six Needy Las Vegas Families During SEMA

During the recent SEMA tradeshow in Las Vegas, the National Auto Body Council and the Recycled Rides program gave free refurbished vehicles to six needy Las Vegas families, the Las Vegas Review-Journal reported.

One of the recipients was a single mom from Virginia who lost her job in an electronics factory, moved to Las Vegas, and promptly found herself and her 12-year-old autistic daughter homeless.

LaToshia Savoy, 51, said she was working part-time at a grocery store in Las Vegas but wasn’t making enough to pay the rent. She and her daughter found themselves living in a shelter run by Family Promise of Las Vegas. She later got into transitional housing, then into permanent housing.

“It’s been a struggle,” said Savoy. Until she received the new car, she was getting up at 2 a.m. to walk almost two miles to the bus stop to catch a ride to work, getting there just in time for her 6 a.m. shift. She said the car, a white Toyota Corolla, will change her life. On the same day she learned she was getting the car, she got a full-time job.

“It was like a double blessing for me,” she said.

The Recycled Rides program started in 2007 after one of the group’s board members, Michael Quinn, had an idea.

Quinn, who owned a body shop in Tucson, had traveled to New Orleans to help out after Katrina. The experience changed him. He wanted to do something else to help people. Because he’s in the auto body business, he knew that wrecked cars are sometimes too expensive to fix though there’s not all that much wrong with them. He conceived a plan to get insurance companies to donate cars, parts suppliers to donate parts, and body shop techs to donate their time.

The program has expanded to more than 150 donations this year in cities across the nation.

Frank Jones, 54, was another Las Vegas recipient. A U.S. Marine from 1977-81, he got hurt while serving but he was able to work when he got out of the service. Living in Dallas, he worked a series of jobs in the transportation industry. He moved to Las Vegas 18 years ago and started a family. He has two kids, 16 and 12. A few years ago, his old injuries made it impossible to continue. He says he can’t stand or do any manual labor.

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San Diego Welding Shop and Pot Shop Catch Fire

A two-alarm fire Nov. 11 in an industrial area near Point Loma in San Diego, CA, left multiple structures damaged, including a storage container filled with SeaWorld holiday decorations and concession-stand signage.

Firefighters uncovered a marijuana production facility as they worked to contain the flames, said San Diego Fire-Rescue Department spokesman Maurice Luque.

“It is a somewhat extensive operation, that’s what the investigator told me,” Luque said of the marijuana discovery in an office building next to where fire-rescue officials believe the fire started.

The affected structures were unoccupied when the first of 16 fire crews arrived on the scene, Deputy Chief Colin Stowell said. No injuries were reported, and the fire was put out in 20 minutes, Luque said.

Four businesses were damaged in the fire—a welding shop, a machine shop, the SeaWorld storage facility and the office building. All told, the damage was estimated at nearly $500,000. That included about $400,000 in damage at the welding shop and machine shop, Luque said.

Stowell said holiday props resembling octopi and seals and a

lemonade stand sign were among the items in the SeaWorld storage container. Other buildings on the SeaWorld site storing additional props appeared undamaged, Stowell said, adding that theme park officials were still surveying the scene.

Fire crews were initially concerned that hazardous materials may have been involved in the blaze after they spotted unlabeled, 55-gallon drums, Stowell said. Luque said officials eventually determined that there were no hazardous materials, and that a hazardous materials crew was called only as part of the standard procedure for a two-alarm fire.

Luque said an investigation into the fire is ongoing, but that officials didn’t have reason to think the cause was suspicious. He said officials believed late Nov. 11 that the flames were started by an electrical problem, and that surveillance footage from the SeaWorld facility could shed more light on the cause when it is reviewed.

Firefighters discovered the marijuana operation when they entered the office building to prevent flames from spreading to it, Luque said. He said San Diego Police Department officials were waiting for search warrants as part of their investigation into the marijuana site.

California Propositions Will Affect Body Shops

In California, voters rejected Proposition 33, which critics say was backed largely by Mercury Insurance’s billionaire chairman George Joseph. It would have allowed insurers to factor whether a driver continuously had insurance coverage when determining that driver’s premiums. See autobodynews.com for background on Prop.

33.

Proposition 30, which was a merger of two previously competing initiatives: the ‘Millionaire's Tax’ and Brown’s First Tax Increase Proposal, passed. however.

Prop. 30 includes these highlights: • Raises California’s sales tax to 7.5% from 7.25%, a 3.45% increase over current law. (Under the Brown Tax Hike, the sales tax would have increased to 7.75%) • Creates four high-income tax brackets for taxpayers with taxable incomes exceeding $250,000, $300,000, $500,000 and $1,000,000. This increased tax will be in effect for 7 years.

• Imposes a 10.3% tax rate on taxable income over $250,000 but less than $300,000—a percentage increase of 10.6% over current policy of 9.3%.

The 10.3% income tax rate is currently only paid by taxpayers with

over $1,000,000 in taxable income.

• Imposes an 11.3% tax rate on taxable income over $300,000 but less than $500,000—a percentage increase of 21.5% over current policy of 9.3%.

• Imposes a 12.3% tax rate on taxable income over $500,000 up to $1,000,000—a percentage increase of 32.26% over current policy of 9.3%.

• Imposes a 13.3% tax rate on taxable income over $1,000,000—a percentage increase of 29.13% over current ‘millionaires tax’ policy of 10.3%.

If this proposition is passed in November, 2012, the income tax will apply retroactively to all income earned or received since the first of the year.

Based on California Franchise Tax Board data for 2009, the additional income tax is imposed on the top 3% of California taxpayers.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 17

Matrix Wand Captures New Collision Product Award at SEMA has great plans for the product’s potentially bright future. “We’ve got the Matrix Wand currently in body shops from Hawaii to Connecticut and soon it will be available internationally.

This is an exciting time for us because

by Ed Attanasio

even more to us to be recognized.”

The Matrix Wand’s journey from conception to completion took a total of 4.5 years, but it has paid off with the SEMA award and burgeoning sales. “There was a lot of work involved in developing it and testing it,” Srack said. “We received approval recently on our three patents, which is huge, so this award was even more meaningful to us and our distributors nationwide. SEMA is a great organization, so being a part of that is significant.

This industry is full of amazing companies and people, so it definitely means a lot.”

What are some of the Ron Chiles, director of sales and marketing at Matrix Electronic main reasons for the MaMeasuring, Inc. poses with the Matrix Wand system and the trix Wand’s success and trophy for first place in the Collision Repair & Refinish Product acceptance within the indivision from SEMA. dustry? “The documentathe industry has embraced the Wand tion in 3-D is instrumental,” Srack and without that, we wouldn’t be explained. “It’s a win-win-win all the where we are right now. The fact is way around, because from the body that so many people have supported shop owner to the estimator to the and assisted us in our success. With- technician and onto the customer and out them, we wouldn’t be where we the insurance company, this product are today and I sincerely mean that. It benefits all of them and makes their takes so many levels within this in- lives easier. The Matrix Wand dedustry to make a product successful. ” creases the friction between the shops SEMA’s award kicked off a great and the insurers, and takes the drama show for the company and Srack out of the blueprinting and measuring hopes to ride that momentum into process, because it provides accurate 2013, she said. “To share our victory information that every party involved with our team was really wonderful. can rely on. That’s an ideal situation We always knew there was a need for and how often does it really happen in effective electronic measuring in this any industry, let alone collision reindustry, and the Wand provides it. pair?”

We’ve been developing this product Costing approximately $31,000 since 2008, so it hasn’t happened each—but with an affordable lease opovernight. We introduced it to the col- tion, the complete Matrix Wand system lision industry in April 2012 after is a substantial investment for any shop, much work, because we wanted to but by paying for itself within a reasonmake sure it was dynamic and market- able period of time, it makes sense for ready before we made it available to any size operation, Srack said. body shops. We got the call from “Our customers are justifying the SEMA at 10 p.m. on Monday, Octo- cost after just six months, in most ber 29 to tell us that we had won, so it cases. How often can you buy a piece was a thrill. There were a lot of great of equipment and say that you’ll reproducts in consideration, so it means coup all your money within half a

year? One of the advantages of innovative technology, even in a poor economy, is that people will still invest in cutting-edge technology.”

How is the Matrix Wand different than laser measuring systems out there on the market? “Most lasers are twodimensional, but our imaging is threedimensional and you have access to the information much easier, within 15 minutes or less with the Matrix Wand.

Without our product, it takes 1.5 hours on average to do the job, and you’re still guessing because you don’t have three dimensions to refer to. By discovering the structural damage upfront, body shops can quantify it and triage the car throughout the shop, meaning that cycle times are greatly improved. For the first time, the insurance companies have 3-D validation of the damage on their customers’ vehicles. This is not a CAD drawing or an overlay; this is really the actual customer’s vehicle. Mobility is another benefit of using this product, because it’s a handheld device and you don’t have to worry about the car being level. With the complexity of these cars today, the Matrix Wand is more essential than ever.”

SEMA’s Vice-President of Events and Communications Peter MacGillivray discussed the importance of the award and how it impacts the industry worldwide. “The number one reason why people go to the show is for new products. These product awards are judged by industry peers and that’s why they mean so much to the winners. We always announce them before the show begins, so that the winners can enjoy the benefits of this very special achievement.”

For more information see: http://thematrixwand.com/ To schedule a demonstration contact: Toby Chess at tcspeedster@yahoo.com, or by phone at 310995-7909.

Matrix Electronic Measuring Inc. Box 1246 Salina, KS, 67402 Toll Free: 800-424-8023 email: matrix@thematrixwand.com

Continued from Page 12

smarter than the dummy? I asked Jeff Dunham. (He smiled weakly—not my best question, I admit). Wasn’t the original Batmobile just a Lincoln Futura with a few bells and whistles? I asked George Barris. (He agreed.)

Overall, I would have to say that

and about 200 business cards, most of which are probably already residing in trash containers. Oh well. At least I did win enough money playing poker to pay for my trip and got this fun story assignment as well. See you next year at SEMA.

The Specialty Equipment Market Association (SEMA) announced its New Products Showcase Awards on the eve of its 2012 show to recognize the world’s most cutting-edge automotive products in the collision industry today. With more than 2,000 new products submitted for consideration, only a handful received accolades and the trophies that accompany them. It’s the Oscar, the Emmy and the Lombardi Trophy of collision combined and surely one of the most coveted awards out there, because it comes with the SEMA stamp of approval and all of the benefits associated with it.

First place in the Collision Repair & Refinish Product division went to the Matrix Wand 3-D Blueprinting and Discovery System, manufactured

by Matrix Electronic Measuring, Inc., a company that was founded in 2003 and is located in Salina, KS. Judged on its superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability, the Matrix Wand was launched in April 2012 and received positive reviews almost immediately.

This handheld, electronic measuring system accurately and precisely measures collision damage so that a body shop can repair a vehicle back to factory specifications.

Consisting of the wand, cameras, computer, and software, the Matrix Wand collects measurements and data utilizing stereoscopic photo documentation and archives all of the information electronically for retrieval and subsequent analysis. Three feet long and weighing about 12 pounds, the device is extremely precise and easy to operate. By passing it over the vehicle like a magician’s imaging wand, technicians can complete the entire process in 15 minutes or less.

Jan Srack is the co-founder and president of Matrix Electronic Measuring Inc. and a 25-year veteran of the collision industry. She’s obviously pleased about winning the award and

36 Hours at SEMA

Any interest in tackling a buffet after the show? I asked the Fridge.

(He chuckled, but declined). Are you

18 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

my 36 hours of SEMA was a fun and fruitful adventure. When I got back from the show, my wife asked me ‘Did everything stay in Vegas?’ I thought about it and told her at this stage in my life the only thing I left in Sin City was my phone charger

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Chess Teaches How to Make More Money Without Spending $$$$

by Melanie Anderson

I-CAR instructor, Autobody News columnist, and shop consultant Toby Chess, AAM, entertained and taught a small crowd at SEMA about how to make more and spend less within the normal daily operations of a collision repair shop.

In the industry since 1969, Chess’ background includes wrecking, restoration and collision.

Falling asleep in Chess’ class wasn’t an option as he kept the presentation lively, heckling those attendees who were sitting in the back of the room and pulling out the ‘ladder of success’ from his attaché bag to

A Few Toby Tips:

kick off the talk.

Make More Money Without Spending an Arm and a Leg focused on how businesses can cultivate positive changes without spending a huge amount that many shops can’t justify in the current economy. Chess presented simple, straightforward tips to help shop owners and managers streamline operations and increase profits by reducing waste and expenses.

“For collision repair businesses, there is a ton of opportunity to improve your business with very little investment if you know where to look,” said Chess. “This session offers a number of proven ideas that will decrease cycle time, reduce comebacks

• Belong to an association, such as SCRS, to become more powerful as a group.

• All owners and managers should be asking ‘why’ if something isn't right.

• Write your goals down. If it's not written down, it's just a dream.

and increase quality; and the investment costs will be under $500. Forget about learning fancy buzzwords associated with process improvement.

This session will give time-tested examples of ways to improve your business and make more money for very little, if any, up front expense.”

And with that promise, Chess was off to the races, touching on several topics including time wasters, setting goals and developing SOPs. To set the tone, Chess re-defined the industry by saying, “You do not fix or repair cars. You re-manufacture cars.”

Chess got the audience involved by asking the question, “How much is

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• List the items needed in the tear down stall.

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spent on a supplement?” Most of the shop owners and managers thought the cost of adding a supplement to an estimate was $40 or $50. Some said $100. One brave soul said $300 and

Toby Chess always gets the audience to participate. In this scenario, Chess simulates a car needing a push.

Chess zeroed in on him wanting a firm commitment to his answer and the gentleman didn’t waver. Chess then turned the classroom into a spontaneous live production, getting audience members to role play a scenario where a supplement is needed. Turns out, according to Chess and his theater See Make More Money, Page 50

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Students and their Cobra at NY’s Bohlen’s Tech Center

BOCES students put together a 1987 Mustang 5.0 engine and a five-speed transmission in a 1965 Shelby Cobra replica body as a class project at the Bohlen Technical Center in Watertown, NY. BOCES purchased a replica Cobra MK3 roadster kit seven years ago, intending to use it in several classes.

“Auto body, auto tech, welding, visual

When asked how fast, Berger laughingly said “55 in a 55 mile-an-hour” zone

communications, electrical wiring—it’s been a full gamut of different people working on the car to get it to the point where it’s at today,” said Russ Berger, principal of the technical center. The parts cost about $20,000, but the replica roadster could go for around $25,000.

Berger noted that the kids at BOCES are miles ahead because of it.

Train Sends Big Rig Crashing into Body Shop

A freight train in southern California struck a big rig trailer in Montebello, CA, sending the big rig careening into an auto body shop, the Los Angeles Times reported.

The Union Pacific freight train clipped the trailer of a big rig truck Nov. 13, pushing it into an auto body shop. The train struck the back of the trailer, which was carrying frozen food as it was crossing tracks traveling south on Vail Avenue at Mines Avenue at 6:06 a.m., Montebello police said. The trailer was crumpled and partially overturned as it was thrown into the Fleet Body Works auto body shop on Mines Avenue.

Police say there were no injuries but major damage was done to the auto body shop.

Union Pacific and police were investigating the cause of the accident.

The train, which was carrying cargo from the Port of Long Beach to Chicago, was not significantly damaged and continued along its route by 6:30 a.m.

“It did not derail so we were able to move it along pretty quickly,” said Aaron Hunt, a Union Pacific spokesman.

California Shops Help Train New Techs Some central California auto body repair shops are taking steps to address the need for training facilities to teach the trade and have formed a partnership to start student training.

Ted Ehresman of Travelers Body & Fender Works in Fresno, CA, reached out to the Central Unified Adult School in Fresno to help get future techs trained.

“We are in great need of younger people coming into our industry,” Ehresman told Juanita Stevenson, reporting for ABC30.com.

The school, insurance companies, local auto body shops and the Fresno Regional Occupational Program have formed a partnership and developed the ROP program to train a new generation of auto body repair technicians.

Joe Velasquez owns a body shop and also teaches courses. He says there is no other program like it “It’s not a very long course; it’s about three and a half months,” Velasquez said. “We get your foot in the door. We get you into a body shop and you have to prove yourself from there.”

Along with the classroom work, students spend two weeks working at the Velasquez shop learning the basics. After that, they spend six weeks

interning at a local auto body shop.

“And it’s a lot of stuff you don’t learn in the books, and with hands on you actually learn a lot,” student Reggie Felton said. Felton is hoping the training and the certificate he gets from this program will help him land a job.

“Most places you have to be certified, there are jobs out there but you’ve got to have the training for them,” he said.

Some students, like Damon Pearson, were hired before he finished the program.

“You have to have a clear mind and be focused on what you want to do and have the drive and will power,” Pearson said.

Damon has been at his job at Travelers Body Works for three years and now he is helping to train others.

“They take these young people under their wing, they train them and get close to them—it works well for both of us,” Pearson said.

The class offered through Central Unified Adult School costs $40 and includes the book. Students must be a high school junior to enroll in the program. The program also helps prepare students for employment with resume and interview techniques.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 21

Some Car Candy from SEMA for Vehicle Voyeurs

22 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 23

Continued from Cover

Predictive Estimating

As demonstrated, the system requires the user only to select the damaged portions of the vehicle (left front fender, for example), and all items related to that section of the vehicle are automatically listed, including such item as one-time use fasteners, necessary information labels, and procedures such as color sand and polish (with a link to Toyota’s bulletin indiRick Leos cating that is a procedure necessary even at the factory).

“Everything you need to fix our cars correctly and to our standards is there,” Toyota’s Rick Leos said. “I don’t need all kinds of opinions on how to fix our cars when I have engineers who are telling me how to fix our cars. That’s who I’m relying on.

So now if someone wants to challenge this stuff, we have engineers to give them the answers. It’s no longer just you and your opinion, and the guy down the street who ain’t doing it.”

Leos, who said he is in discussions about the system with CCC Information Services (and has contacted the other estimating system providers), used the system at the meeting to prepare a $10,000 estimate in two minutes.

He said he hopes to have the system completed on Toyota’s top four vehicles during the first quarter of 2013, and he said other automakers are interested in working on the project as a joint venture.

Response to Toyota tool When asked about insurer response, Leos said he believes the system will help smooth out some of the variances in estimating.

“We have had some talks with insurance companies…and they’re not negative on this at all,” he said.

Herb Lieberman of LKQ Corporation called the system “the right thing to do,” but asked Leos about what he termed the “unintended consequence” of more cars being totaled Herb Lieberman but ending back on

the road after being rebuilt to no standard. Leos pointed out that the system allows the user to adjust the estimate, for example, to use alternative parts.

“But what if a car totals because we’re going to fix it right? Then that’s probably where it needs to be,” Leos said. “I can’t stop the rebuilders in this industry. They’ve been around for years. They always will be. Salvage value will actually go down, not up, if that’s the case. So the insurance company might want to throw a little more money into fixing that car.”

One shop owner at CIC told Leos this could reduce both the number of estimators he needs and the experience level they would need to prepare thorough estimates.

Iowa shop owner Bob Jones said he had considered something similar in years past, perhaps ordering everything needed for a corner hit as kit, for example, but that insurers would balk if the unneeded items included initially were removed from the bill later in the process. Leos reiterated that he envisions an estimator taking the estimate that the system generates out to the car to omit parts or procedures not needed for that vehicle’s particular damage.

Some of the groups who earlier this year called on automakers to help the industry establish OEM procedures as the industry’s “repair standards” praised Toyota for getting shops this easy access to the company’s repair procedures.

“We really appreciate what you’ve done to lead the pack,” Scott Biggs of Assured Performance Network told the Toyota representatives.

“You opened the door for us,” Raskind told the groups who have pushed for OEM procedures as the industry’s repair standards. “We’re now taking a bold step through it.”

New chairman offers perspective Also in Las Vegas, Mike Quinn of Caliber Collision completed his final meeting as chairman of CIC, and George Avery of State Farm offered his thoughts as the incoming chairman. Avery acknowledged that his selection to lead CIC, which was made by those who have previously chaired the conference, has not been universally popular –

24 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

particularly among those discussing it on “social media” – given his role at State Farm.

“The past chairs did select George Avery, not necessarily the company that he works for,” Avery said. “The George Avery that accepted was the one who started as a painter’s helper and over the years has made his way through the collision industry.”

Avery’s career at State Farm has now spanned more than 30 years. He is not the first insurance company representative to chair CIC. Joe Landolfi chaired the conference in 1995 and 1996 when he was an executive with Kemper Insurance. And Roger Wright joined AIG Insurance several months

into his two years as CIC chairman in 2003 and 2004.

Avery in Las Vegas reiterated his believe in the value of CIC, noting that the industry in Canada used CIC as a model for a similar organization in that country, and that the restoration industry on the property insurance side is “desperately today trying to get a CIC to get all stakeholders in the room.”

“So we can’t lose sight that CIC is a place where we can all talk,” Avery said, “We all go to meetings with our own folks, our own disciplines, and that’s healthy and good.

But having an opportunity to all get together is very important.”

Avery said he is working on a system to give more participants at CIC “a voice” even if they don’t get up to the microphone at the meetings.

He will chair his first CIC meeting on January 24-25 in Palm Springs, CA. That meeting is CIC’s biennial “planning meeting” at which the committees and broad subject matter for the coming two years are developed.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 25

Honda’s ProFirst Shop Recognition Program Puts Shops First Connection’s Collision Link tool and meet a level of I-CAR training.

Participating shops must also be designated as I-CAR Gold Class Professional businesses and have a minimum of one technician who has completed I-CAR’s Collision Repair for Honda and Acura Vehicles course (HON01), according to Gary Ledoux, the Assistant National Manager of Wholesale Parts Marketing for American Honda Motor Co. These requirements are a big in-

by Ed Attanasio

When American Honda Motor Co. Inc. launched its ProFirst (ProFirst.Honda.com) body shop recognition program on Oct. 17, the automaker was pleased with the positive feedback it received from dealerowned and independent collision repair facilities alike. Representing Honda’s updated approach to online information, ProFirst is fueled with the newest technology, partnered with names like OEConnection and I-CAR and backed by the power of one of the nation’s most popular automotive nameplates.

The program’s mission is to promote comprehensive and safe repairs of Honda and Acura vehicles, and to provide support to shops that have demonstrated a commitment to high levels of customer satisfaction. There are a few requirements that shops must fulfill in order to qualify for the ProFirst proThe landing page for Honda’s new ProFirst website is designed to help and market body shops that qualify gram including use of OE-

KEARNY MESA

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gredient and one reason why I-CAR is repair information, and placement on pleased to be a part of the ProFirst the company’s shop-locator tool on its program and Honda’s approach to consumer website: training and recog- collision.honda.com. nition. “It’s meant “As the new Honda and Acura to elevate the cus- models become more and more sotomer experience phisticated and technologically adand enable shop vanced, it requires a collision repair employees to work technician with higher knowledge and up to their full po- skills to properly repair them,” tential,” said John Ledoux said. “Partnering with I-CAR Gary Ledoux Van Alstyne, pres- in this context helps promote training ident and CEO of I-CAR. “Training and thus promote safe and complete and knowledge provide a platform for business and personal excellence, generating benefits for both the organization and the customer, including increased operational efficiencies, reduced cycle times, minimized repair mistakes, and most importantly, complete and safe repairs.”

Honda said all shops that qualify as a ProFirst shop will receive a plaque, free access to Honda and Acura parts catalogs and bulThe site’s Shop Locator will allow customers to find Honda-approved body shops in their respective regions letins, access to service and

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repairs of Honda and Acura automobiles.

“With a new program involving hundreds and hundreds of shops, we needed a new way to manage it and the ProFirst website really kicks it up a notch,” Ledoux added.

“Profirst.honda.com makes it quick and easy for the shop to enroll, and then after qualifying, an easy way through which to access the parts catalog and service and repair information. Automating the enrollment and administration process was one of our main goals and we achieved it.”

“Once a shop becomes a ProFirst shop, we offer them the advantage of being listed in our shop locator site, which is attached to our new consumer site (Collision.Honda.com) that we launched in mid-September,” Ledoux said.

“Shops are very Dan Stander interested in this aspect of the consumer site, because it gives them more exposure to an automobile brand with a large number of units in operation.”

Bob McSherry, owner of North Haven Auto Body in North Haven, CT, was the first shop to sign up for ProFirst last October. “As a body shop, I would have to say it is pretty slick,” he said. “The parts catalog is very helpful and we understand that Honda is going to be promoting both sites pretty quickly here, so that will be instrumental. It’s a win-win, because what Honda is saying is that shops that do the right thing are going to get recognized for it.”

ProFirst is an excellent tool, said McSherry, because he fixes a lot of Hondas in his part of Con- Once the user inputs their zip code or address, they will find a list of ProFirst Honda collision facilities within the necticut. “We see at least parameters they’ve set, both quickly and easily 50 Hondas a month, which be involved is such a new program.” is essentially 20% of all the vehicles Dan Stander is the owner of Fix we repair. We use CollisionLink at Auto Highlands Ranch in Littleton, least 50–60 times every month as well and we’re proud to say we’re CO. Stander is active in the national an I-CAR Gold shop with all of our industry associations such as NACE 14 production technicians trained and was one of the first body shops to on Honda and Acura. That’s why we achieve Honda’s Level 3 and is happy to be a part of ProFirst, he said. “The joined right away and are happy to

repair updates are excellent and perfect for us. We repair as many as 50 Hondas every month, so updated collision repair data is essential to our success. If we can’t find it in our estimating system, we know we can go there to find it. We’re excited to be a Level 3 shop on ProFirst and know it will make us a better shop as a result.”

As the carmaker’s website manager, Ledoux’s job is now a little easier with the new site and its added technology.

“We receive updated information from I-CAR and OEConnection every night. As soon as a shop becomes an ICAR Gold Class shop, we know it right away. We also track a shop’s Collision Link usage on a daily basis so as soon as they qualify for ProFirst, we know that right away as well. The process is quick and easy for us, quick and easy for the shop, and the best part is, ProFirst costs the shop nothing. It’s a win-win for everyone.”

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How Marketing Can Help Customer-Pay Sales

by Melanie Anderson

Shop owners and managers learned how to market to self-paying consumers in a presentation led by Steve Trapp and Robert Rick at SEMA 2012 in Las Vegas.

Steve Trapp, Program Manager at DuPont Performance Services and DuPont Performance Alliance, and Robert Rick, President of RR Custom Solutions Training and Consulting, presented “Marketing to Consumers Supporting Customer-Pay Sales Efforts.”

Current statistics show that 35-40% of customers are asking repairers to write a customerRobert Rick paid estimate, with a historical 50% closing ratio on these estimates. Improving sales skills for these more price-sensitive customers is key.

This SCRS Repairer Driven Education course reviewed the advisory sales process and how it uniquely applies to this segment of prospective

customers. “Customer pay is going up,” said Rick. “People are freaked out about turning in an insurance claim because consumers are afraid of being dropped or having their premiums go up.”

Because most shop owners don’t have a marketing degree, Trapp and Rick presented a mini “Marketing 101” class to teach shop owners and managers the basics of marketing techniques. In layman terms, marketing is getting someone to contact you or bringing someone to your door.

“Marketing happens when someone comes into your shop or when you pick up the phone,” said Rick. “How much time and money is spent getting people in the door? When your phone rings, how many people in your repair shop look at the ringing phone like it’s the devil?” Rick said he wishes he could change the sound of a ringing phone into dollar signs because the person on the other end of the phone could be your next $2,000 customer.

Trapp added, “They are already in the door, so why not close them?” Depending on your shop size, increasing closing sales ratio by 5% on customer

Steve Trapp, Aaron Schulenberg and Robert Rick

self-pays could increase annual repair center sales by $200,000.

“Getting work to the door is most repairers biggest need,” said Rick. “At the end of the day, we are here to bring in more customers.”

Estimators don’t want to see customer pays because they are comfortable with DRPs, said Rick. But, with customer-pays, “your market opportunities to close are limitless,” he said.

Trapp suggested that shops call their sales advisors ‘service advisors or customer care advisors.’

“Earn your customers’ trust by giving good advice,” Trapp said.

“Get rid of the E-word,” Rick agreed. “Stop using the ‘estimator’ word.”

Shops need to remember that the key needs of a customer are convenience, empathy, needing a trusted advi-

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sor and superior service. The average consumer reports an insurance claim every 10 years. They don’t know the claims process. Your job is to help them get through it.

It’s important to do what you can to get your customers to remember you. Create a story so your customers remember you. Build a relationship.

Steve Trapp and Robert Rick reprise their NACE talk

One way to do that is to always thank your customers. Don’t send an email—that’s too impersonal and they get deleted. A mailed handwritten note is best.

What should your marketing budget be? For new shops just starting out, spending 10% of your budget on marketing is best. For

shops that are five years or less into the business and growing, spending 5% of your budget on marketing is good. And for shops that are more mature and have been in business longer than five years, only 3% of your budget is needed for marketing.

Social media is a whole other subject, but Trapp and Rick briefly spoke on website presence. Your website is your virtual lobby that is open 24 hours a day. It manages your virtual branding. Basically, a website should provide directions, answer frequently asked questions, provide status updates and include an amateur video to boost website content and interest. The website content should be relevant and current.

Don’t let it become stale.

Remove outdated information.

Marketing Tips

• One marketing tool that really stands out is a lighted exterior sign. “A new standard sign does not stand out after a week. It becomes a tree,” Trapp said. Instead, he suggests shops invest in a lighted sign that includes the time and temperature because it becomes a landmark in your town. “As you drive around your town, do you know what businesses display the time and temperature?” he asked. Everyone in the room raised their hand.

• If you have the customer’s attention and they decide to call you, do not waste the opportunity with a mundane greeting and impersonal phone interaction. This is your next customer, so treat them like your mother, Rick said.

• To brand your business, make sure people see a sign outside of the building and another sign the first thing they see when they walk in. Every member of the team also needs to be wearing a name badge. Trapp suggests shops invest in interior foam logo signs and exterior fabric banner signs to help support sales and shop branding.

• Posters showing photos of a step-by-step repair process help customers understand how much work is involved in their repair. Use the posters as a visual when talking to your customers about their repair. Trapp said DuPont will

customize these posters for their customers and other paint companies offer similar posters.

• Don’t use lingo and acronyms that customers won’t understand.

• Giving customers a shop tour will help close the sale.

• Customers, especially younger people, love text messages for status and updates.

• Use an iPad and hand it to your customer for the CSI, so you know it’s done immediately.

When you get a negative remark on the CSI, call the customer and try to resolve the problem.

• Develop a plan to stay in touch with customers for five years. Ideas include sending periodic enewsletters, offering special coupons for seasonal services, such as spring detail or headlight aiming, offering a 24-month paint protection plan, or mailing out letters a year or two after service offering lifetime warranty or a coupon.

Mail a lottery ticket and ask for a referral.

• Create good will and public relations opportunities by holding community events at your location. Community events can include teen driver nights, ladies’ nights, vehicle extractions and participating in the NABC Recycled Rides program.

• And the #1 marketing tool body shops should use, Trapp said, is to have solid customer service and using customer relationship management to maintain a relationship.

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Brindle’s Auto Body in St. Thomas, PA, Gets Home and Shop Double-Hit by Sandy

by Melanie Anderson

Superstorm Sandy hit the northeast in late October, leaving thousands without power and leaving behind many damaged homes and businesses.

Dave Brindle, owner of Brindle’s Auto Body, 7318 Village Lane in St. Thomas, located in southcentral Pennsylvania, got a double whammy when both his business and his home, located about a half mile apart, got hit by Superstorm Sandy.

The eye of the storm went over the area north of Chambersburg and concentrated in St. Thomas and Mercersburg, PA, according to the Franklin County Department of Emergency Services.

Brindle, who has been in business for more than 20 years, was able to save all the vehicles the shop had at the time because they noticed the roof

Brindle plans to re-open parttime in about two weeks due to the gracious offer of a competitor, a former employee who now owns his own shop working out of his garage. Brindle will use his former employee’s garage for body work. The shop repairs four or five cars a week.

Meanwhile, even though the paint side of the business wasn’t damaged, the shop is storing tools and equipment related to the collision side of the business in the paint section; so that side of the business isn’t open either.

He’s not sure when his business will re-open full-time. He’s hoping it could be three or four weeks, depending on how rebuilding goes.

“The storm took a path right through St. Thomas,” Brindle said of the small town. The damage to his shop was worse than he initially thought.

coming down in time to save the cars.

The storm blew the roof off and falling rafters damaged and pulled down walls. The building is now gutted and will need to be re-wired as the storm also pulled out the power lines.

Thankfully, no one was hurt.

The shop was without power for about 10 days and on Election Night someone who must have known the business was without its security cameras and alarm system broke in and stole several thousand dollars worth of hand tools, Brindle said.

Items missing include a paint gun, socket wrenches and other equipment.

“Nothing like kicking you when you’re already down,” Brindle said. A police report has been filed.

“It did not happen at a good time,” Brindle said. “We are in our busy season right now. We’re generally very busy with deer damage at this time of year. We have a very high

Half a decade ago, the SEMA Show was less than a blip on the collision repair industry’s radar. Those days are long gone as the show continues to solidify its standing as the premier event for the industry, with filled aisles, packed booths, a burgeoning number of collision-repair-related industries on the show floor, and an infectious energy that collision repairers just can’t seem to resist.

“From our vantage point in the booth, you can’t help but notice the enthusiasm of the collision repair customers walking the aisles,” said Brian Shenk, director of marketing services for Sherman-Williams Automotive Finishes. “I think it’s because the Show is infused with the colorful, cool fun of the custom car segment, which carries over to collision repair participants.

Two years ago, we moved our booth to the North Hall, home to the collision

repair section, and we haven’t looked back since. Having a presence here has really paid off, and our custom paint group is totally on board, as well.”

The SEMA Show is attracting increasing numbers of collision repairers and exhibitors for a variety of practical reasons, too. At the top of the list is the search for alternative revenue streams, as more and more collision repairers understand the need to think out of the box when considering products and services that can increase their bottom line. At the show, they get exposure to these kinds of options, like customization and specialty paint work that often can be accomplished with a collision repairer’s existing tools. Vendors of products and services that align with a repairer’s core work, such as those related to mechanical repair, are also well represented at the SEMA Show.

“Repairers that keep their eyes

open to opportunity can walk the aisles of the show and get any number of ideas to diversify their businesses,” said Frank Terlep, owner of Summit Software Solutions Inc. “Reduced claims and increased consolidation are dictating that repairers refine their business model; this is the place to get inspired to do it,” said Terlep.

Jonathan Barrick, marketing manager for Global Finishing Solutions, has similar feelings. “Basically collision repair owners and managers can come to this show and find everything they need to improve their business,” he stated. “This includes the quality educational material that SCRS provides and promotes through Repairer Driven Education (RDE). Our company likes being here because the attendees seem so open to learning about new products. That makes the

population of deer in this area.”

Storm damage “is hurting us,” Brindle said. “But we have good in-

surance (Nationwide) and I believe they are going to stand behind us.”

As for community support, Brindle says it’s been awesome.

“Friends, family and neighbors came out the day after and helped get our roof covered, cut some trees out of the road so we could get our cars out of the driveway. One family even brought lunch for everyone. Then, as soon as everyone was finished, they all moved to the shop to start cleanup. Dave Miner from Dave’s Auto Salvage brought a big crane over and we used that to pick the roof trusses out of the building. And most of our customers are being very patient and waiting on us to reopen.”

SCRS Claims SEMA Now the Premier Show for Collision Repairers, Citing Traffic, Exhibitors

30 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

SEMA show the perfect place to illustrate what our company is all about. It’s a venue that allows us to show our personality and make a good brand impression. We’ve increased our booth space every year.”

The benefits of expanded markets resonate throughout the exhibitor side, as well. “Our company has been coming to this show for many years,” noted PPG Senior Manager Business Solutions/Industry Relations Domenic Brusco, “primarily as a well-received provider of custom finishes for hot rods, motorcycles and other specialty vehicles. The traction that is growing in the collision repair section—which I think can be attributed in part to the work SCRS has done to build the industry’s identity at the show—is great for us because it also gives us the opportunity to connect with our collision See SCRS on SEMA, Page 57

David Brunori of Matrix System Boosts Collision Repair Education Foundation Donations

David Brunori, executive vice president/GM of Matrix System Automotive Finishes, and Collision Repair Education Foundation Board of Trustees member, recently was recognized for boosting contributions to the Collision Repair Education Foundation. He helped coordinate a $11,000 donation in equipment to the collision program at Oakland Schools Tech Southwest Campus in Wixom, David Brunori MI, and also personally donated $5,000 to the Foundation.

The $11,000 donation provided to the school’s collision program was the effort of several industry organizations. Dedoes Industries donated a paint mixing machine system, various cabinets and additional painting supplies. Matrix Systems supplied all the automotive refinish paint to the school, and The CRC Line Inc. donated masking paper, plastic sheeting and mixing cups.

Brunori’s personal donation of $5,000 will help purchase requested

tools, equipment and supplies for a Michigan school that applied for the Education Foundation’s 2012 Ultimate Collision Education Makeover school grant, as well as assist with the organization’s Collision Repair Education Campaign general operating fund.

“We have been very lucky to receive these donations. In times where there is very little money available for our collision program, it is great to know that there are companies that can help,” said David Hollinger, collision instructor at Oakland Schools Tech Southwest Campus.

“It is amazing to me how a few gallons of paint can make a huge difference to a group of teachers and students,” said Brunori. “Technical campuses around the United States are in desperate need of corporate and personal donations to ensure our industry continues to educate the next generation of technicians. One could say it is our corporate responsibility to get involved. I knew immediately our donations were deeply appreciated just by the looks on the kids’ faces.

It is a great feeling to know you made a difference.”

MD’s Mark’s Body Shop Releases Car-O-Liner Video

Mark’s Body Shop of Baltimore, MD, an Auto Damage Experts coaching/ consulting client, released a new informational video in their ongoing efforts to help inform and educate consumers.

Mark Schaech, owner and President of Mark’s Body Shop’s said, “Through our relationship with Auto Damage Experts, we have learned the importance of continually edifying consumers within our marketplace and beyond to enable them a better understanding of the benefits of proper and thorough repairs and to help prepare them to make informed decisions before the need arises. Most consumers are just not prepared to make the important decisions on matters that often affect their personal safety and economic welfare when it comes to the repair of the damaged vehicle. They oftentimes rely upon the advice of others, whose interest may not be in the overall best interest of the consumer.”

Schaech continued, “With the assistance of Lee Emmons of Absolute Perfection Tinting & Graphics, we are putting together a series of videos on the various aspects of collision repair and issues consumers should be aware of.”

Mark’s prior video showed a post repair inspection of a poorly performed repair.

“Such aspects will be the necessary equipment, quality parts, materials, training and knowledge which are required to perform a repair that will restore a vehicle’s original safety, performance, appearance and value to the best of human ability. A level of repair that unfortunately fewer consumers are receiving today. We want to help consumers to understand it is their property and it is their choice of repairer and help them to make the right choices.”

“It’s interesting that upon release of the video, we were contacted by Car-O-Liner corporate and they asked if they could show our Car-O-Liner video during the recent NACE and SEMA expositions and their training seminars. We were very gratified in this request and of course authorized their use of the video. We have heard many positive comments since their showing it,” Schaech said.

The video can be viewed at http://www.marksbodyshop.com/caraccident-repairs-auto-collision-specialists

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 33

AUTOMAKER, AU A UTO OM MA M AK AK ER OEM OEM AUTOMAKER KE R,, OEM, M,, AND AND RECALL RE R E C AL CA ALL LL EC Autobody News

Toyota to Recall 2+ Million Vehicles Worldwide for Steering, Water Pump Problems Toyota Motor Corp. said it will recall 2.77 million vehicles worldwide, including some of its popular Prius hybrid cars, for steering and water pump problems. It is the carmaker’s second multimillion-car recall in a little more than a month.

Toyota is recalling the vehicles to fix a steering component that could be damaged by wear and tear, and 630,000 gasoline-electric hybrid vehicles to replace water pumps, company spokesman Joichi Tachikawa said. Many vehicles are targeted by both recalls, resulting in overlap.

The recall affects 496,000 vehicles in Europe, 670,000 vehicles in the United States and 1.5 million vehicles in Japan. The defects, which Toyota said had caused no accidents and could each be fixed in an hour or so, could cost hundreds of millions of dollars to repair, according Deutsche Securities autos analyst Kurt Sanger.

While the recall is widespread, the flaws are less serious and any damage to Toyota’s reputation would likely be limited compared with massive recalls in 2009 to 2011 when unintended acceleration problems in Toyota vehicles were the suspected cause of fatal crashes in the United States.

Jaguar Recall for XF Model

Jaguar is recalling certain model year 2010-2012 XF vehicles equipped with a 5.0L gasoline engine. The affected vehicles may have a fuel tank fuel outlet flange that may crack. The cracked flange may result in fuel leakage onto the ground. This leaking fuel, in the presence of an ignition source, may result in a vehicle fire.

Jaguar will notify owners, and dealers will replace the affected fuel tank fuel outlet flanges, free of charge. The recall is expected to begin on, or before, December 7, 2012. Owners may contact Jaguar at 1-800-452-4827.

CALIFORNIA • NEVADA • ARIZONA

Mack Trucks Get Recalled

Mack Trucks is recalling certain model year 2008-2009 GU, LEU, and MRU trucks, manufactured from Dec. 12, 2007, through May 8, 2008 and equipped with a certain focal mounted retarder control box.

The control box may lose its electrical ground. If the control box loses ground, it may have localized overheating. This could lead to a vehicle fire. All affected vehicles, 260, were sold to one customer that has already been notified. An official owner notification letter was mailed to the one customer in early November 2012. Mack will replace the suspect control box on the affected vehicles, free of charge.

Owners may contact Mack Trucks at 1-800-866-1177.

BMW Recalling 7-Series Cars Over Software Glitch

BMW AG is recalling 7,485 2005-07 7Series vehicles that may have a software glitch that may allow the doors to inadvertently open when they appear closed.

BMW says “the door may unexpectedly open due to road or driving conditions or occupant contact with the door. The sudden opening may result in occupant ejection or increase the risk of injury in the event of a crash.”

The German automaker said the recall covers vehicles equipped with both Comfort Access and Soft Close Automatic options, and built from August 2004 through September 2007.

The automaker says no crashes or injuries have been reported related to the condition.

The recall is taking place five years after BMW recalled vehicles in Japan and five years after the National Highway Traffic Safety Administration first asked BMW about the issue.

Even though BMW didn’t think it was a safety issue, it ultimately recalled the vehicles in Japan in September 2007.

BMW made a software update as part of production change in 2007 to address the issue.

In February, BMW agreed pay a $3 million penalty for failing to recall vehicles in a timely fashion.

34 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Chrysler Recalls Jeeps for Airbag Issues

Chrysler is recalling certain model year 2002 and 2003 Jeep Liberty vehicles manufactured Jan. 9, 2001, through March 28, 2003, and 2002 through 2004 Jeep Grand Cherokee vehicles manufactured Feb. 13, 2001, through May 23, 2003. A component in the air bag control module may fail causing the front airbags, side curtain airbags, and/or seatbelt pretensioners to deploy inadvertently while the vehicle is being operated.

The recall covers Jeep Grand Cherokee and Liberty SUVs for a part in airbag control modules that may fail, according to documents filed with the U.S. National Highway Traffic Safety Administration and Chrysler.

A failure of that module could cause the front airbags or side curtain airbags to deploy inadvertently while the SUVs are being operated, increasing the risk of injury or accident, according to NHTSA documents.

Of the vehicles recalled, 744,822 were in the United States; 49,430 in Canada; 21,828 in Mexico; and 103,465 outside North America, Chrysler said.

GM Investing $450 Million in Argentina Facility

General Motors Co. said recently it will invest $450 million to build an all-new global Chevy vehicle at its Rosario Automotive Complex in Argentina.

The Detroit-based automaker said it would make the investment between 2013 and 2015.

“We are pleased to be making this investment in Argentina, which remains a very important market for us,” GM Chairman and CEO Dan Akerson said in a statement.

“We have a long, proud history here dating to 1925 and our latest investment is certainly good news for our GM Argentina employees, our extensive dealer and supplier network and the local economy.”

The Rosario facility produced more than 136,000 vehicles in 2011.

www.autobodynews.com

December 2012

GM Unveils Faster, Fuel Efficient Engine for Corvette

General Motors Co. recently debuted its faster, more fuel-efficient small block, LT1 6.2-liter V-8 engine, which will power the new 2014 Chevrolet Corvette.

In what GM is calling the most significant redesign in its history, the fifth-generation small block for the Corvette will include a direct-injection fuel system, continuously variable valve timing and active fuel management, or cylinder deactivation, all of which will help give owners more miles out of a gallon of gas.

The biggest fuel saver for the Corvette is active fuel management, which GM has said can boost fuel economy up to 12% in cars. It saves fuel by deactivating four of the eight cylinders in light load situations, such as coasting on an exit ramp or cruising on the highway.

VW to Build New SUV in U.S.

VW Chief Executive Martin Winterkorn said the company expects to build an all-new SUV in the U.S. designed for American customers after the success of the new Passat sedan. A final decision is expected next year.

Strong demand for the Passat, also designed for Americans, has transformed the U.S. into a growth hub for VW, which faces rough conditions in Europe.

The company recently said its profit margins narrowed in the third quarter as pricing and demand for cars deteriorated.

While operating profits were down for the first time this year, its results exceeded expectations.

“Many of us wondered if VW’s long period of outmaneuvering and outperforming the horrible European market was going to come to an end,” said analyst Max Warburton at Bernstein Research. “Yet third-quarter results show little evidence of such pressure.”

For the year to date, VW’s operating profit is up 2% at 9 billion euros, or $11.7 billion, and VW retained its forecast for slightly higher sales revenue and flat earnings this year.

Many NJ and NY Shops Still Closed in Aftermath of Sandy

by Chasidy Rae Sisk

When Hurricane Sandy struck the Caribbean and Eastern United States in late October, she left behind $52.4 billion in damage and a couple of hundred fatalities. Sandy touched land in Atlantic City, NJ, and wrought havoc on the Jersey shoreline and throughout New York City, causing severe flooding and a loss of electricity. With such a vast amount of damage, collision shops in the area affected have taken a huge hit.

Ed Kizenberger, Executive Director of LIABRA (Long Island Auto Body Repairmen’s Association), notes that Hurricane Sandy was “one of the most catastrophic, weather-related events that the collision industry has had to endure.” He notes that many shops in the NYC area are still closed, due not only to flooding and a lack of electricity, but also because of the damage sustained to equipment, computers, etc. The largest challenge that owners currently face is the fact that many live near their shops, so they are working on restorations for both their businesses and their homes.

In addition to facing up to six feet of water, shops also have to contend with the partially or fully repaired vehi-

cles in their facilities that were flooded during the hurricane. Most of the vehicles that sustained damage from the storm have been declared total losses, but there are some more fortunate whose vehicles were damaged by felled trees and debris, and undamaged shops are starting to process these repairs, though there is a devastating backlog due to the sheer volume of damaged vehicles.

Though Sandy hit hardest in NJ and NY, her effects were also felt farther north. While Al Brodeur’s Auto Body, Inc. of Marlborough, MA, never lost power, Molly Brodeur notes, “We have definitely noticed an uptick in business since the storm—a lot of damaged panels from debris, but we haven’t had any issues with parts or receiving products in a timely manner since the storm.”

According to Jeff McDowell, President of AASP/NJ, many shops in NJ have suffered severe damage as a result of the storm. All low-lying areas were hammered, and many continue to be closed due to lack of power even now, three weeks later. Recovery efforts are still ongoing. McDowell notes that tens of thousands of vehicles were affected by the storm, causing an extreme back-up in repairs, especially

since so many shops are currently out of operation. Many of these vehicles have been declared total losses and have been moved to parking lots pending processing while recovery efforts are being made.

As a result of such a large quantity of lost vehicles, rental cars are in an extreme shortage, and many people are without transportation at the moment since importing rentals from nearby states still is not enough to maintain supply for the demand of rentals.

Despite the many challenges caused by Hurricane Sandy, NJ shops are determined to rebuild. Many AASP/ NJ members’ shops managed to escape damage from the storm, and these owners have volunteered their services to help their peers in the industry. McDowell states, “That’s one thing you can always count on. As much as we compete, we are all part of the same brotherhood. Sometimes the worst brings out the best in us. We have seen a lot of that since the storm, and I am proud of those who have stepped up.”

Anyone interested in helping the NJ victims can send donations to Hurricane Sandy New Jersey Relief Fund, P. O. Box 95, Mendham, NJ 079450095.

Continued from Cover

Sandy Damages

it initially predicted, largely a result of Sandy hitting the most densely populated part of the country.

The firm doubled its previous estimate for the total bill and now says Sandy may have caused between $30 billion and $50 billion in economic losses, including property damage, lost business and extra living expenses. The cost to insurance companies could run as low as $10 billion and as high as $20 billion.

The new numbers square with an earlier estimate from IHS Global Insight. IHS said Sandy could cause about $20 billion in property damages and between $10 billion and $30 billion in lost business.

The firm pointed to two reasons that Sandy will leave a bigger bill than it first thought. Power outages are more widespread than in a typical Category 1 storm, Eqecat said. Sandy knocked out electricity for more homes and businesses than any other storm in history, according to the Department of Energy.

The lack of subway service in New

York City and blocked roadways will also push the total cost higher, Eqecat said. Before the storm hit, Eqecat had estimated that total economic losses from Sandy could range as high as $20 billion and that losses to insurance companies could reach $10 billion. Payouts for insurance claims are typically a fraction of the overall cost to the economy.

If the damages hit $50 billion, it would make Sandy the second-costliest U.S. storm after Katrina in 2005. Katrina’s overall costs were $108 billion.

Taking inflation into account, that works out to $128 billion in today’s dollars.

Even after adjusting for inflation, the high end of Eqecat’s damage estimates for Sandy would be higher than those caused by previous major storms.

Andrew, which struck in 1992, cost $44 billion in today’s dollars, and the Ike storm of 2008 cost $32 billion.

Estimates by a California-based risk modeling firm have placed insurer losses from Hurricane Sandy to as high as $25 billion.

Risk Management Solutions projected that insurers may face losses between $20 billion and $25 billion. Initial estimates on property and casualty claims from the hurricane by Fitch Ratings were roughly $5 billion, similar to that of last year’s Hurricane Irene. RMS said that it has two reconnaissance teams out surveying the damage. The firm has offices in Hoboken, N.J., where floodwaters stranded thousands of people.

Eqecat’s estimates only cover private losses, not costs covered by the government through the National Flood Insurance Program administered by the Federal Emergency Management Agency. Max Mayfield, the hurricane center director during Katrina, said the costs to FEMA can be $2 to $2.5 for every dollar of losses covered by private insurance.

A FEMA official said the government-backed flood insurance program expects to take a $6 billion to $12 billion hit from Hurricane Sandy, making it very likely the heavily indebted program will soon turn to Congress to raise its borrowing authority.

Ed Connor, deputy associate administrator at FEMA’s Federal Insurance and Mitigation Administration, told the Treasury Department’s Federal Advisory Committee on Insurance that he estimates that Sandy would inundate the program with about 143,000 claims.

Flood claims from Hurricane See Sandy Damages, Page 36

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 35

Continued from Cover

Other Countries

under PartsTrader, Crowther said, and shops found themselves having to buy from many more different suppliers (Newton-Ross said he spoke with one New Zealand shop that now has 300 suppliers rather the 30 the shop bought from previously). Some suppliers were dumping low-quality parts through the system, Crowther said.

The insurer offered a $3 increase in labor rates, but Crowther said that had been the first increase in three years and did not offset the loss of parts profit.

In his own $4 million business in 2006, he estimated that use of the PartsTrader system accounted for a decline in margins equal to about 4% of his sales.

He cautioned that the PartsTrader system used in New Zealand is different than the one being mandated by State Farm in some U.S. markets. Insurers in New Zealand (almost all of which have now adopted the use of PartsTrader), for example, can see all prices quoted in the system there.

And much to Crowther’s surprise, he said, an online survey that his magazine conducted in late 2011 found that 53% of shops (and 48% of suppliers) felt that PartsTrader had had a positive effect on their business.

“I tried to find these people, but I can’t find them,” Crowther said.

John Norris

Canadian shops face challenges John Norris, executive director of Collision Industry Information Assistance, a trade association in Ontario, Canada, said a

Continued from Page 35

Sandy Damages

Sandy are expected to cost the National Flood Insurance Program at least $8 billion, far above the roughly $4 billion the government-backed insurance program can currently pay, according to the Consumer Federation of America.

According to the consumer group, Hurricane Sandy will give rise to 200,000 claims for wind damage and an additional 200,000 claims for flood damage.

Flood Damaged Vehicles

major insurer in that market now requires use of an electronic parts procurement system. The insurer has about 22% market share overall (for comparison, State Farm has about 18% market share in the United States, and Allstate has about 10%), but as much as 50% market share in Northwestern Ontario.

Norris said the parts system is forcing some participating shops to endure delays in delivery of parts from sometimes distant suppliers because only suppliers willing to pay the insurer a fee (generally 3% of the part price) on every part sold may participate.

The insurer contends the system has reduced parts returns from 15% of all parts ordered to just 10%.

“The program supports our (direct repair) shops in reducing cycle time and improving the overall cost of repair,” the insurer told a Canadian trade magazine.

Norris is unconvinced, however.

He cited a shop in Sault Ste Marie, Ontario, that used to walk across the street to pick up parts from a Honda dealer but now must wait three to five days for parts to be trucked from a Honda dealer nearly 400 miles away.

“He cannot go across the road and buy a part even if at the same price,” Norris said. “If the other supplier that is working with the insurer has that part, he must buy it from that dealer.”

Norris said a shop in Thunder Bay, Ontario, has had to buy used parts from a supplier in Welland, Ontario, 933 miles away. Hamilton, Ontario, has a population of about half a million people, but shops there—Norris said—must order General Motors parts out of Niagara Falls, Ontario, which is 43 miles away; the delivery trucks pass 11 other GM dealers while bringing the parts to Hamilton shops.

While most reports say Sandy flooddamaged cars will not exceed 250,000, Black Book’s Ricky Beggs said Superstorm Sandy will have an even bigger industry impact than Hurricane Katrina did seven years ago, which he estimated at 640,000 units destroyed.

The National Insurance Crime Bureau estimates than Katrina damaged ‘only’ 325,000 vehicles.

Insurance companies so far concur with the lower estimates for Sandy.

State Farm, Progressive, New Jersey Manufacturers, Nationwide and USAA have received about 40,000 car-damage claims as of Nov. 10.

36 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Attendees share their views A brief question-and-answer session following the panel discussion included a variety of comments from attendees. Charles Lukens, co-founder of APU Solutions, a web-based parts procurement system company recently acquired by Solera (parent company of Audatex), said he felt the panelists lumped all parts systems together, unfairly indicating they all have a negative impact on shops.

“Not in any scenario are we increasing cycle time and decreasing margins, so I think it’s an unfair statement to say all parts procurement solutions are doing that,” Lukens said.

Bobby Price of Prices Collision Centers, which operates five shops in Tennessee, said he is currently on State Farm’s “Select Service” program but “expects not to be” if the PartsTrader mandate comes to his market.

“I don’t need State Farm telling me how to run my business,” Price said. “I believe that that’s what this is about.”

Price said he is working to build his company’s brand directly to consumers through increased marketing and advertising.

Newton-Ross cautioned that shops in the United States should view

the issue as something larger than just State Farm and PartsTrader.

“It’s every insurer,” he said. “Because if State Farm is successful with what they do, do you think the other insurers are going to sit there and let them have an edge in the marketplace? No, they’re going to have their own deal with PartsTrader or someone else.”

SEMA Attracts 60,000 Buyers SEMA organizers acknowledged that attendance at this year’s event was curtailed somewhat by Hurricane Sandy-related impacts on the East Coast. Still, SEMA CEO Chris Kersting said as the event was ending that close to 60,000 “buyers” attended SEMA, with about an equal number of others at the event, including exhibitors representing more than 2,250 companies, returning the show to about pre-recession levels.

The “collision repair and refinishing” section of the show, now in its third year, featured about 160 companies, with many of the paint manufacturers and equipment vendors that sell to the industry located elsewhere on the massive show floor.

SEMA will return to Las Vegas next year on November 5-8.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 37

Seven Experienced Auto Dealers Elected to Congress

All seven current and former auto dealers running for seats in the U.S. House of Representatives won on Election Day. Winners include Roger Williams, R-Texas, a former Texas secretary of state who runs a Chrysler-Dodge-Jeep-Ram store in suburban Fort Worth, and Jim Renacci, R-Ohio, the co-owner of a Chevrolet dealership that was rejected as General Motors went through bankruptcy. True to form in Ohio, the race included heated debate about Washington’s handling of the auto industry.

Winning re-election by more comfortable margins were: • Scott Rigell, R-Va, who owns Ford and Volvo dealerships.

• Mike Kelly, R-Pa., who owns a Chevrolet store.

• Vern Buchanan, R-Fla., who has sold some of his several dealerships and had his Dodge dealership rejected during the Chrysler bailout.

• John Campbell, R-Calif., who sold several dealerships, including one of the first Saturn stores, when elected in 2004.

• Bill Shuster, R-Pa., who sold his Chrysler dealership when first elected in 2000.

Safelite Group To Acquire Southern Glass & Plastics

Safelite® Group, the nation’s leading vehicle glass company, has reached an agreement to acquire substantially all of the vehicle glass division assets of Southern Glass & Plastics. The deal is expected to be finalized by Saturday, November 17, 2012 at 12:01 a.m.

Southern Glass is a well-respected company with a prominent vehicle glass repair and replacement brand in Georgia, North Carolina and South Carolina since 1990. Owned by Alan Epley, the company employs 25 people and operates five retail locations: Savannah, GA; Charlotte, NC; Charleston, SC; Columbia, SC; North Augusta, SC The acquisition is the continuation of Safelite AutoGlass’s mission to profitably grow in the U.S. and to become the customer’s “natural choice” for vehicle glass repair and replacement services.

“While much of our growth has come organically from expanding the company’s existing sales and profit base, we’ve also had various strategic, targeted acquisitions in the last several years,” said Tom Feeney, president and CEO of Safelite® Group. “We expect that Southern Glass’s clients, customers, business partners and employees will benefit from our commitment to be the leader in the vehicle

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glass industry.”

Safelite® Group is a subsidiary of Belron®, the world’s largest and most successful retail vehicle glass repair and replacement company. Belron® operates in 34 countries.

Southern Glass’s owner Alan Epley will continue as a consultant during the transition before he officially retires. In addition, general manager David Packett will play a significant role in the integration.

With their vehicle glass repair and replacement expertise, they will offer excellent contributions to the Safelite® team.

“Even though we have been healthy competitors in the past, Safelite® offered the best option for me and my employees, particularly in today’s challenging economic times. I look forward to my upcoming retirement after the transition period,” said Epley.

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SEMA and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) Councils announced that the next “Collector Car Appreciation Day” will be celebrated on July 12, 2013. The date marks the fourth consecutive commemoration in what has become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.

SEMA and its Councils will once again seek a Congressional resolution to recognize the day’s significance. The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide.

Collector Car Appreciation Day is a singular tribute to the collector car industry and the millions of hobbyists it supports.

“The U.S. Senate helped launch Collector Car Appreciation Day by passing Resolutions each year at our request,” said SEMA Vice President of Government Affairs Steve McDonald. “Collector Car Appreciation Day is quickly taking on a global character, with events held in the United States, Canada, and Australia.”

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38 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

SEMA Seeks “Collector Car Appreciation Day” Federally

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Glendale/Foothill CAA to Roll Out Toyota Predictive Estimating Program

The California Autobody Association Glendale/Foothill Chapter is cancelling its annual holiday mixer and instead will be the first CAA chapter to roll out Toyota’s new Predictive Estimating program. (See cover story).

Glendale/Foothill CAA President Linda Holcomb, who met a representative of the Toyota predictive estimating program and who also saw an introduction of the program at SEMA, is excited to bring the program to members.

“In speaking to our board members, we decided we want to put all of our efforts into this meeting to bring you the latest information and technology that will benefit your business,” Holcomb said.

“This is history in our industry.

So, instead of spending money on having ‘fun,’ we are spending it on educating you so you can have a stronger business.”

The Glendale/Foothill chapter will hold their Toyota’s predictive estimating program meeting on Jan. 30 at Brookside Country Club, 1133 Rosemont Avenue, Pasadena, CA 91103.

Repairer-Only Meeting at SEMA 2012 Provides Forum for Unfiltered Discussion In a packed, standing-room only venue, the second in a series of repairer-only meetings was held Nov. 1 at the 2012 SEMA Show in the LVH Hotel Conference Center. Assured Performance Network (APN), the OEM Roundtable, and the Society of Collision Repair Specialists (SCRS) sponsored the event.

This special event for representatives of collision repair businesses was designed to provide a place where collision repairers could engage in candid conversation about the challenges facing their industry, without any undue influence from opposing agendas. The unanimous feedback at this event, and other recent assemblies of repairers, was to hold a ‘repairer only’ forum-assembly in conjunction with other industry events on a quarterly basis starting with Palm Springs events in late January.

According to Scott Biggs, CEO of Assured Performance Network, “Repairers have overwhelmingly expressed their interest to make the repairers only forum-assembly an ongoing organized event to ensure there is always a place for repairers to express their opinions openly and without filters and interference.”

“There was a lot of emotion and passion as repairers articulated their

concerns and discussed solutions,” said Jordan Hendler, Executive Director of the Washington Metropolitan Auto Body Association. “This was a great start to bring repairers and repairer groups together to talk specifically about repairer issues and how to collectively resolve some long-standing problems.”

The forum is not a replacement or competition for participation in other inter-industry events. While the Las Vegas gathering had no set agenda, the open discussion agenda provided for lively and passionate discussions covering a wide range oftopics.

Insurer-mandated parts procurement programs dominated conversation, but a variety of other issues surfaced during the course of the twohour event highlighting the mounting frustration felt by repairers.

“We attended the first two repairer meetings and were overwhelmed by the experience of the repairers that attended,” said Eddie Okahara, President of Oka’s Auto Body, Hawaii. “This type of meeting, where repairers attend to share common challenges from the perspective of one repairer to another, is refreshing. This industry changes so quickly, and it is a great benefit to talk with others that are involved in the day-

to-day business of repairing and refinishing vehicles safely based on the manufacturers specifications; rather than former employees of repairers, retired owners, or people that have moved on to teaching or consulting and are no longer directly involved as we are.”

SCRS was an integral part of the forum’s formation. “I was impressed with the turnout at this event and the level of participation from all that were in attendance,” said SCRS Chairman Aaron Clark. “Every major organization, including SCRS, has a forum to discuss their issues. This style of repairer-only meeting that is not organization specific seems to provide a great opportunity to allow repairers the time and place to talk openly and without filters or other interests muting the opinions. The repair industry has identified a hunger for ongoing repairer-only meetings and the industry responded.”

The next repairer-only meeting will take place in conjunction with the industry events scheduled for Jan. 23-25 in Palm Springs, CA. For more information, contact SCRS Executive Director, Aaron Schulenburg (aaron@scrs.com) or APN Executive Director, Liz Stein (liz.stein@assuredperformance.net).

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SEMA Awards Best New Cutting-Edge Automotive Products The Specialty Equipment Market Association announced the winners of the New Products Showcase Awards held at the 2012 SEMA Show on Oct. 30. The event recognized the most cutting-edge automotive products on the market or about to hit the market.

This year, more than 2,000 new products were submitted for consideration.

Criteria that ranked high on the judges’ selection for the New Product Showcase Awards included superiority of innovation, technical achievement, quality and workmanship, consumer appeal and marketability.

The 2012 New Product Award Winners are:

Collision Repair & Refinish Product Winner: Matrix Wand 3-D Blueprinting System, Matrix Wand 3-D Blueprinting and Discovery System Runner Up: Goliath Carts, D1-A ‘Mobile Detailer’ Detail Cart Runner Up: PRO-TECH-IT, PROTECH-IT Reusable Covers

The Matrix Wand 3-D Blueprinting and Discovery System wand has cameras on both ends, and when passed in front of a damaged car, identifies damaged and ‘trusted’ areas. It allows for three-dimensional XYZ measurements, while the repair analysis software allows comparison of any two XYZ points.

The D1-A “Mobile Detailer” from Goliath Carts utilizes the standard Goliath technology of a “closed system” that provides security and control of all tools and materials required by the detail and car wash departments of a collision repair shop.

The cart is designed to minimized contaminants on the paper rolls and detailing supplies. Power tools can be connected on a mounted power strip.

Pro-Tech-It was also granted a runner up spot for the Collision Repair and Refinish category for its magnetic car covers. The durable, reusable covers are designed to replace disposable car covers, reducing both costs and waste.

SEMA recognizes a wide array of products, many of which aren’t confined to the collision repair industry.

Engineered New Product Winner: Mastershift, Magnum Paddle and Sequential Type Shifter Runner Up: Detroit Speed, 1964.51970 Mustang Aluma-Frame Runner Up: MSD Performance, MSD

Atomic LSTM, EFI for LS Engines

Exterior Accessory Product Winner: Husky Liners, Husky® 5th Wheel Tailgate w/ Backup Camera Mount Runner Up: Rampage Products LLC, Self Contained Electric mirror and power supply Runner Up: Hornblasters Inc., HornBlasters Jackass 228VX Interior Accessory Product Winner: Edge Products/Superchips, TrailDash Runner Up: Xtreme Outfitters, Cargo Assault Mount Runner Up: U-Ace Inc./Formosa Saint Jose Corp., 3D MAXDURA FLOOR LINER

Merchandising Display Winner: Extang/Truxedo/UnderCover, UnderCover Flex Runner Up: AMP Research, PowerStep POP Runner Up: Extang/Truxedo/UnderCover, UnderCover SwingCase

Mobile Electronics Product Winner: INTRAPHEX, Smartphone Integration Device (S.I.D.) Runner Up: Auto-i (Canada) Corp., Special OE Fit Camera for Commercial Van Runner Up: Brandmotion, Loftlite LED Interior Lighting Kit

Off-Road/4-Wheel Drive Product Winner: BedRug Inc., BedRug and BedTred for Jeep® Runner Up: Fuel-Tool, Fuel-Tool PT500 Fuel Transfer System Runner Up: Hi-Lift Jack Co., Hi-Lift Off-Road Base

Packaging Display Winner: Edge Products/Superchips, TrailDash Runner Up: MSD Performance, MSD Atomic EFITM, Master Kit Packaging Runner Up: Solution Finish Trim Restorer, Solution Finish, Rich Evans DIY Kit

Performance-Racing Product Winner: ATI Performance Products, ATI Cast Aluminum T-400 SuperCase Runner Up: Lingenfelter Performance Engineering, CTAP-001 Clutch and Throttle Activation Position Switch Runner Up: Zeitronix Inc., Ethanol Content Analyzer with Flow Through Sensor

40 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Performance-Street Product Winner: COMP Performance Group, COMP Cams 4-Pattern Camshafts Runner Up: ProCharger, ProCharger i-1® supercharger Runner Up: COMP Performance Group, Inglese Sidedraft EFI System

Powersports Product Winner: K&N Engineering Inc., K&N Street Metal Intake System Runner Up: Warn Industries Inc., WARN Vantage 3000-S Powersports Winch Runner Up: AMSOIL Inc., AMSOIL DOMINATOR Octane Boost

Street Rod/Custom Car Product Winner: MSD Performance, MSD Atomic LSTM, EFI for LS Engines Runner Up: Powertrain Control Solutions (PCS), 6 SPEED VALVE BODY Runner Up: Circle Racing Wheels Inc., ORIGINAL EQUIPMENT STYLE BILLET WHEEL

Tire and Related Product Winner: Pirelli Tire North America, Pirelli Cinturato P7 All-Season Runner Up: Mickey Thompson Per-

formance Tires & Wheels, ET Street Radial Pro Runner Up: Mickey Thompson Performance Tires & Wheels, Street Comp

Tools & Equipment Product Winner: Miller Electric Manufacturing Co., MultimaticTM 200 TIG/MIG/Stick Welder Runner Up: Del City, Brake Line Wrench Kits Runner Up: Wray Products, The Stand Hand Plus

Van/Pickup/Sport-Utility Product Winner: CURT Manufacturing LLC, Easy Mount Electrical Brackets Runner Up: AnzoUSA, 2007 and up Chevrolet Silverado/GMC Sierra 5 Function LED Tailgate Spoiler Runner Up: Elephant Stand, Elephant Stand Swivel Hitch

Wheel and Related Product Winner:Hotchkis Sport Suspension, Hotchkis Performance Wheels Model - H Sport Runner Up:Concept One/Klutch Wheels, Concept One Executive CSL5.5 Runner Up:Enkei Wheels, COMPE

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 41

New Mitchell ITR Trends Report Looks at Rising Deductibles and Severity Trends The latest quarterly Industry Trend Report from Mitchell features the article, “Are Rising Deductibles Driving Severity Trends?” by Greg Horn. The article examines the link between flat collision repair severity and the rise in deductibles over the past six years.

Consumers are opting for raised deductibles in an effort to cut expenses, but are then reticent to seek repairs for which they will shoulder more of the financial cost. This data is in alignment with data from Enterprise, which found the average rental time remained consistent across the U.S. in the third quarter of 2012. Mitchell expects an increase leading into the fourth quarter of the calendar year as weather and holidays come into play.

“While higher deductibles are good for the insurance industry since consumers carry more of the repair bill, this is not as positive for the repair shops or rental car companies, which are seeing less business. It’s important to examine whether there is a causal relationship here, or if other factors are influencing the severity trends,” said Horn. “Our latest ITR explains our findings on which factors do and do not have the greatest influence on the rise in repairable severity.”

The Auto Casualty Edition article, “Coping with Compliance in the Property & Casualty Industry” by Mitchell’s Vice President of Information Management & Client Services Michele Hibbert-Iacobacci, discusses the increasing challenges P&C insurance carriers face due to new or changing legislation. Federal regulations and Accountable Care Organizations require skilled navigation and following arduous processes for compliance and success, while maintaining a focus on quality and service.

Carriers must stay informed and continuously analyze the impact of such initiatives on their policyholders and businesses.

“Most legislation is put in place to benefit the consumer, but it’s difficult to predict the impact on any party once it becomes law,” said Hibbert-lacobacci. “Changes to processes are often relevant in the areas of billing, payment models and privacy. Even when the intent is well meaning, many causal relationships arise when laws change. The latest Mitchell ITR guides P&C carriers in their quest to learn from the past and gain better insight into what changes may come.” See mitchell.com/industry-trends-report.

This year’s SEMA Award for the top trending vehicle models in four categories were announced Oct. 30 at the SEMA Show in Las Vegas. The Ford Mustang was named Hottest Car, the Scion FR-S took the Hottest Sport Compact honors, the Ford F-Series won Hottest Truck and the Jeep Wrangler received the Hottest 4x4-SUV award.

“The SEMA Show has always been about innovative products and trends,” said Chris Kersting, SEMA president and CEO. “The SEMA Award amplifies the industry’s special ability to identify and set trends that consumers follow.”

The SEMA Award recognizes ve-

hicle models that specialty-equipment manufacturers believe are the best platforms for accessorization and that showcase the year’s coolest products.

It also underscores the cooperative relationship between the automakers and SEMA-member companies.

“The SEMA Award helps guide consumers toward the hottest-trending and most accessory friendly vehicles on the market,” added Kersting. “Our SEMA Show exhibitors are industry visionaries who determine the winners of the SEMA Award based on the vehicles they showcase in their booths. Each booth vehicle represents a ‘vote’ and the most prominent models in each category are the winners.”

The 2012 SEMA Show features more than 2,000 exhibiting companies that manufacture thousands of products designed to improve performance, safety and convenience, as well as those that enhance appearance and comfort. While products are available for every make and model, exhibitors are investing more in the Ford Mustang, Scion FR-S, Ford F-Series, and Jeep Wrangler than any other vehicles. Consumers, therefore, can expect to find great specialty products for accessorizing these vehicles.

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5050 Hollywood Blvd., Los Angeles, CA 90027 42 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Education Foundation Awards $50,000 Makeover Grants at SEMA

by Melanie Anderson

The Collision Repair Education Foundation announced the two winning schools who will each receive a $50,000 Ultimate Collision Education Makeover grant. The winners were surprised at an Oct. 30 reception held at the Las Vegas Hotel during SEMA. This year, for the first time, both a secondary and a post-secondary school received a $50,000 makeover grant. The two winning schools are Nichols Career Center in Jefferson City, MO, (a secondary school) and Manhattan Area Technical College located in Manhattan, KS. The Education Foundation awarded two grants so secondary and post-secondary schools didn’t have to compete with each other. Seventy schools from 31 states applied for the 2012 Makeover grant. Over the next several months, the Education Foundation will be working to fulfill the two schools’ collision programs $50,000 wish lists of needed tools, equipment and supplies.

Although he was unable to attend the reception due to Superstorm Sandy, Collision Repair Education

Foundation Executive Director Clark Plucinski later noted, “It was great bringing the collision industry together during our industry reception to not only highlight the support the organization has provided to collision school programs through the generosity of our industry donors, but also to surprise both of these instructors that their collision programs will have their $50,000 wish lists fulfilled. We look forward to working together with not only the two winning schools but also focusing support on all of the applicant schools, as they took the time and effort to let us know their specific collision needs. Congratulations again to both Nichols Career Center and Manhattan Area Technical College!”

The two instructors attending the late-night Las Vegas reception were awestruck when they learned they had won the makeover grants for their schools. The $50,000 for tools and equipment means their programs, barely surviving on miniscule budgets, can now offer the newest and latest in industry technology for their students.

Dennis Bruemmer, instructor at Nichols Career Center Automotive Col-

lision Technology in Jefferson City, MO, said he was “totally overwhelmed” when the announcement was made that his school was one of the winners.

“Before being hired as their instructor in 1998, I had served on the Nichols Career Center Automotive Collision Advisory Board,” Bruem-

Instructors Dennis Bruemmer, left, and Linn Schroll, right, accepted $50,000 makeover grants from the Collision Repair Education Foundation for their schools

mer said. “My personal goal has always been to improve the quality of education for the students in this program. Winning this grant will help tremendously in my quest to achieve this goal. I am extremely grateful to those involved for choosing my program to receive this award.”

The Automotive Collision Technology program at Nichols Career Center has been in existence for 36 years, from its inception during the 1976-1977 school year. “I am proud to say I was a student in that first class at Nichols Career Center,” said Bruemmer. “My instructor at that time was Fred Bremmerkamp, who now runs a successful collision repair business.

He, as well as many other area collision repair facilities, have participated in internships and shop tours for our students. These internships have led to full-time positions for some of our students, as well as encouraged others to continue their education in collision repair after they have graduated from our program.”

The collision repair program at Nichols currently has 27 students.

The Manhattan Area Technical College in Kansas has offered their automotive program to students since the 1970s. Typically, the program has 1820 students, but this year, only nine are enrolled. With a budget of only $8,600, instructor Linn Schroll can’t buy much in the way of materials, tools or equipment. Due to the constrained budget, students get hit with lab and material fees. He plans to spend some of the Makeover grant money to beef up his

program and attract more students.

“Winning the Ultimate Makeover grant from the Collision Repair Education Foundation was one of the biggest surprises of my life,” said Schroll. “My wife and I were standing at the back of the room because I don’t win these kind of things, so why move up in the room? When they started reading part of the application letter for the postsecondary winner, I looked at my wife and said, ‘Holy cow, that is my writing, I think I just won.’ I am not really sure how I made it to the stage.”

Even though he’s had time to digest the news, Schroll said his head is “still spinning. I still can’t believe that we won but I am excited about what it will mean to this program. I have put many hours into this program over the last six years and it feels really good to be recognized for my efforts on a national level. I am also very pleased that so many things that I have wanted for the program will be completed because of this Makeover grant. I think most teachers who are committed to improving a program donate so much of their own time and money to help make a program better, but with limited resources, there is only so much you can do out of your own pocket.

“By winning the Makeover grant, I will be able to accomplish in a short time what would have taken years to accomplish, if at all. We are being contacted by vendors who are donating materials and the Foundation is making contact with a lot of people to get things moving. I can’t thank the selection committee and the Foundation enough for what this will mean to the school, students and myself,” Schroll said.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 43

Massachusetts Shops Get EPA Grants

The Toxics Use Reduction Institute will be working with auto body shops in Lowell, MA, and some other Bay State cities to reduce use of harmful chemicals after receiving an $82,000 federal grant.

TURI at the University of Massachusetts Lowell recently received the grant from the Environmental Protection Agency’s New England region.

The funding is intended to educate auto body shops around Lowell, Springfield, Holyoke, Fall River and New Bedford about toxic chemicals commonly used in the industry and help them switch to safer alternatives.

Toluene and acetone, which are used for spray-gun washing, are known to cause damage to the central nervous system, according to TURI. Brake cleaning aerosol products typically contain perchloroethylene, which is classified as a probable human carcinogen by the International Agency for Research on Cancer. It may also cause liver, kidney or central-nervous-system damage, TURI says.

The grant will enable TURI to assist 30 auto shops. TURI’s staff and field workers will visit the cities to identify the shops that are willing to participate in the program. During the

free three-month program that starts in January, the participants will receive safer brake-cleaning products or paintgun-washing systems as well as before and after air monitoring study and technical support.

“The biggest concerns we hear about switching to safer products is that they won’t work as well and they will be harder to use,” Joy Onasch, community and small business program manager of at TURI, said in the press release. “That’s why the trial period with the safer alternatives and the technical assistance is critical to success.”

The program is modeled after the Boston Public Health Commission’s Safe Shops Project. At Moreno Auto Body in Roxbury, one of the participants, the before-and-after indoor airquality monitoring showed a 94% decrease in the presence of acetone and an 88% decrease in the presence of toluene, according to TURI.

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Philadelphia Eagles Quarterback Michael Vick’s Flat Tire Draws a Crowd at Body Shop Philadelphia Eagles quarterback Michael Vick made an unplanned stop in Berlin, MD, on his way to Virginia Beach, VA, when a tire on his Lexus went flat. Vick rolled up on Route 113, directly across the street from John’s Auto Body in Berlin.

Berlin is a town of about 3,500 near Ocean City.

Workers from the shop didn’t know who Vick was, but the owner, an Eagles fan, did. When the football player walked into the office of the body shop, staff members were more concerned about whether they could fix the tire than who their customer was.

“I knew right away,” said shop owner John Derrickson. “I’m an Eagles fan. I walked up to see what was going on and I said, ‘Do you know who this is?’ “ As he and his mechanics worked to bring the Lexus across the highway to the shop, Carmella Solito of the adjacent Twisters Gymnastics came out to see what was going on.

“She came out with her hands on her hips and wanted to know why we were blocking her driveway,” Derrickson said, laughing.

Solito was no longer worried about her driveway when she found out whose car was in the way.

Solito invited Vick into her gym, where dozens of children were working on becoming athletes themselves.

There were more than 100 kids at the facility. Pictures were snapped.

“He was very nice. There were little ones just hanging off his leg,” Solito said. “He told them if they worked hard, it would pay off.”

Both she and Derrickson had nothing but good things to say about the NFL quarterback.

“He said he would send me a jersey and some tickets,” Derrickson said. “He was so down to earth. It was a pretty neat experience.”

Vick, whose mother lives in Virginia, told them both he might even stop back by on one of his trips south.

“It was such a cool experience,” Derrickson said.

The brief stop was not Vick’s first visit to Delmarva. Two years ago, Vick, who pleaded guilty to dogfighting charges in 2007, spoke to students at Snow Hill High School about making positive choices.

44 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

VIP Auto Body Dedicates Plaque for 50th Anniversary of NY Fire that Killed Six Firefighters In late October, over 100 friends and family members paid tribute to the 50th anniversary of a fire in Maspeth, NY, that took the lives of six firefighters.

The plaque and dedication ceremony took place at the location of the 50-year-old fire, now home to VIP Auto Body.

“We thought we had it under control,” said John Killcommons, a now-retired FDNY member who was there the night of fire. Killcommons, 78, said he was lucky to make it out that night, stressing that as crews continued to take water to the fire, it just grew brighter and stronger. “That’s when the wall came down.”

Killcommons said that two of the firefighters who passed in the fire had joined the department with him two years earlier.

“It was a sad day, but here we are fifty years later,” he said.

Killcommons said that the event would not have been possible without the help of Peter Keanne, the auto shop’s owner, who learned of the fire while doing renovations on the building several years ago.

On October 26, 1962, a fire broke

out at the former site of the Sefu Soap and Fat Company on 56th Road – now VIP Auto Body - killing Captain William Russell, Firefighter Richard Andrews and Firefighter James Marino from Engine 325; Firefighter Richard Gifford and Firefighter George Zahn from Engine 238; and Firefighter Francis Egan from Ladder 115.

Lorraine Zahn, 50, whose father George died in the fire when she was two months old, said she felt overwhelmed by the ceremony. “I think it’s a wonderful thing,” Zahn said. “And I feel like it’s been a long time coming.”

As the audience prepared for the plaque unveiling, Fire Commissioner Salvatore Cassano reminded attendants how dangerous a firefighter’s job is. “This fire is a very sobering reminder of that,” he said.

However, he also pointed out that the plaque’s dedication would educate others who did not know the firefighters who lost their lives at the site 50 years ago.

“We place the plaque on the wall so that members of the community will see and always remember those who came 50 years ago and today,” he said.

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 45

Going Green Doesn’t Have to Be Expensive Says GRC-Pirk

by Melanie Anderson

Contrary to popular belief, going green doesn’t have to be expensive, said Steven Schillinger of GRC-Pirk Management.

“Shops can save a lot of money by greening their practices,” said Schillinger.

“Marketing tricks and television advertising do their best to convince us that in order to become more eco-friendly, we have to buy more stuff—but that’s not true. If you replace a perfectly good item just to buy a new ecofriendly one, you aren’t really doing anything to benefit the environment.”

Steven Schillinger Schillinger is a registered environmental assessor and president of ReComply, an environment records management company.

Schillinger’s presentation, Going Green Doesn’t Have to Be Expensive, discussed 101 ways that shops can save money by practicing green. (See abbreviated list below). The talk helped attendees understand what it means to

Do-It-Yourself Tips to Save on Energy

• Realign or re-hang windows or doors that do not close properly.

• Make sure automatic door closing mechanisms work properly.

• Replace or repair faulty gaskets in garage or on other overhead doors • Resize exterior doors, such as delivery door, to make them smaller to reduce excessive infiltration.

• Add expandable separate enclosures where practical.

• Install self-closing doors on openings to unconditioned spaces.

• Install a switch on overhead doors that prevents activation of heating and cooling units when doors are open.

‘go green’ and how to be a good environmental steward, what sustainability, energy conservation and pollution prevention means, and that shops can’t manage what isn’t measured, such as

gases, in a shop. The amount of greenhouse gas created in a shop is caused 70% from energy use, 10% from consumption of metal, wood and plastic, 15% from waste, such as paint, sol-

carbon footprint = greenhouse gas.

Sustainability is defined at a condition which natural and social systems survive and thrive together indefinitely.

Schillinger said that a carbon footprint verifies the environmental condition, or reduction, of greenhouse

vent, soap and trash and only 5% is from VOCs and other chemicals.

The energy used in a typical collision repair shop includes 33% for the spray booth, 31% for lighting, 18% for heating, ventilation and air condi-

• Install vestibule doors at major entrances.

• Replace worn and/or broken weather-stripping and caulking.

• Replace broken or cracked windows.

• Recycle your old refrigerator. Do not have multiple refrigerators.

• Reduce hot water heater temperature • Shut down exhaust fans after hours.

• Use economy sensors on your spray booth.

• Use a timer on the photocopier.

• Add a surge tank to the air compressor.

• Create incentives to conserve energy.

For a free ROI (return on investment) checklist, email Schillinger at sespirk@sbcglobal.net.

46 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

tioning, 12% for miscellaneous and 6% for the air compressor.

For an idea of how much GHG (greenhouse gas) pollution cars create, envision 65 million cars on United States roads, with an average car emitting five tons of carbon dioxide each year, Schillinger said.

Benefits of going green include receiving tax credits, 30-year shared savings funding, discounts, rate reduction or rebates with the local utility, reduced workers’ comp insurance and business insurance, and promotion by your local city.

To attain recognition for being a green shop, go to www.findgreengarage.com, a public service website.

For more information about going green, see the Federal Trade Commission website to download free copies of FTC green guides at: www.ftc.gov/opa/2012/10/greenguides.shtm.

Businesses who promote or advertise themselves as ‘green’ need to prove it with hard evidence. A lack of proof is called ‘greenwashing.’ Those companies who ‘greenwash’ hide the hidden tradeoff, have no proof, are vague, incorpo-

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rate irrelevant practices or outright lie.

Currently in progress is a Energy Star Green Garage Challenge sponsored by the EPA. This program encourages consumers to use repair shops that have attained green certification under official government programs. Automotive industry suppliers, associations and organizations compete for prominent mapping position based on improved energy performance and greenhouse gas reduction.

For more information on the Green Garage Campaign, go to www.Green-

GarageChallenge.com.

Within the website is an energy tracking tool called Track Green Garage, an automated system that collects and reports electronic data acquired from local utility companies and suppliers. The Energy Star-based data processing procedure converts electricity, gas, water and waste usage into greenhouse gas ‘GHG’ metrics.

The metrics are compared to a previous period on a time-weighted-work average basis to determine a more or less percent of green sustainability.

School Winner of Hood Art Contest Voted at SEMA

The Collision Repair Education Foundation and the LKQ Corporation announced the winner of its “Hood Art Contest” during the Education Foundation’s reception held at the Las Vegas Hotel during SEMA. Reception attendees were asked to vote for their favorite hood art and the winner of the ‘attendees’s choice” was Madison Area Tech College of Wisconsin.

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Subaru of Santa Cruz Santa Cruz (800) 549-8490 (831) 420-1402 (831) 420-1923 Fax Mon.-Fri. 7:30-6; Sat. 8-5 parts@santacruzsubaru.com www.santacruzsubaru.com

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 47

add new subscribers, the data that we’re accumulating is invaluable. By using our system, body shops can control the situation and prevent the inshows what insurance companies will surance companies from dictating the normally pay and what they won’t relationship. Right now, it’s basically pay,” Gosney said. “As we grow and carte blanche for the insurance companies and the shops are at a definite disadvantage. With our data at their fingertips, body shops can ask to get paid on things like color tinting, draining and refilling fuel tanks, resetting electronic codes, sanding and priming recycled parts—items that many insurance companies refuse to pay for.”

Even with the information in Manager Javier Vejar (left) and Estimator Jonathan hand, many insurance compaNavarro from Cavallino Collision came down from Palo Alto, CA to attend the October meeting nies won’t pay anyway. “They Continued from Page 15

Information is Power

The Santa Clara CAA chapter answered the following frequently asked questions (FAQs) with its members regarding Collision Billing Services

Q: I’m afraid of getting black-balled by the insurance company, will they steer work away from me if I’m on your program?

A: Only you can decide if they are steering work away from you. You may feel that they are already steering work away from your shop. Only the insurance companies know what goes into their decision when they suggest shops to the consumer.

Q: If I become a member, will the insurance companies know?

A: You can utilize part of the database and the insurance companies would not know about it or that you have become a subscriber of our organization. We get our information from various sources, so

they would not know if you have provided us with any information.

Q: Will you pursue underpayment on each job?

A: We will not pursue underpayment on your whole job for you. But we will seek reimbursement for necessary operations that insurance companies refuse to pay for. If/when we collect for those operations; you will receive proceeds from those actions. This is included in the claims database at no extra cost.

Q: If I join your group will I be in violation of anti-trust or collusion?

A: No, we are not telling you what to charge and you decide how to write your

can still say no, that’s for sure.

But, in the end they know you’ve got some tools to rely on. When they do say yes, it’s usually pure profit for you, because you’ve already done the work anyway. In the end, both parties are trying to wear each other down. If the insurance companies say no enough, they’re hoping you’ll eventu- Parts Director John Miglino (left) and Antwar Ali, an ally give up asking. We tell our outside salesperson for wholesale parts at Del Grande subscribers to keep asking— Dealer Group in San Jose, CA, were on hand to represent their group, with 11 dealerships in the South Bay because they may say no on a help body shops to get more of the Friday and yes on a Monday.” revenue they’re already owed. As a Time after time, Gosney sees his subscribers getting paid for specific good, honest body shop owner, you’re operations, by showing the insurance obligated to do these things on each companies examples of how they paid car that comes in your shop, so why for them in the past. “We’re using the shouldn’t you get reimbursed for every penny? insurance companies’ own policies to estimate. We are a billing company so we can talk to all shops about charges on the basis that we are looking to help them with their billing and receivables.

Q: Is your group anti-DRP? A: No. We realize that DRPs are a way of life and if organized properly can be good for everyone. Unfortunately, many times they are created to benefit the insurance company with little regard for the consumer, the shop and the industry.

Q: Do we submit DRP work to you?

A: Yes, but it is up to the shop to decide if they want to send the jobs to us. In this instance, there would be no underpayment on the claim as the shop has negotiated with the insurance company on what is reimbursable. It is beneficial for us to receive those files because sometimes the insurance company will

allow charges from the DRP shops but not pay the same charges when requested from a non-DRP shop.

Q: Do we have to submit every job?

A: No if you have a relationship with an insurance company that you feel is favorable for you and you do not want to jeopardize that relationship, you don’t have to send them to us. We feel that all jobs should be submitted to us but that decision rests with the shop.

Q: How long will it be before you start pursuing payments from the insurance companies?

A: That completely depends on you. We will listen to the needs of our subscribers and will pursue operations when we have enough data to justify our pursuit. The more data we have the more powerful our case will be.

NABC Launched $1.5 Million Fundraising Effort for Wounded Troops in San Antonio

The National Auto Body Council (NABC) launched a kick-off event on Nov. 15 to showcase Operation Comfort’s AutoMotivation program. Industry partners were invited to attend the special Open House in San Antonio, TX, to officially launch a NABC-sponsored $1.5 million fundraising effort for Operation Comfort’s AutoMotivation program.

According to Chuck Sulkala, Executive Director of the NABC, a number of industry partners have already stepped forward with a commitment for this project to provide an accredited I-CAR curriculum-based training to disabled

military veterans. The project includes the purchase and renovation of a 30,000sq. ft. facility in San Antonio to house and equip the AutoMotivation program.

Based in San Antonio, Operation Comfort complements the rehabilitation efforts by the U.S. Army at the San Antonio Military Medical Center (SAMMC). The AutoMotivation program serves as occupational therapy for disabled veterans through automotive-related activities. The NABCsponsored efforts take this to the next level by providing a facility in which accredited training and guidance is

48 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

available for veterans who wish to find a new career path.

“These veterans have given more of themselves for their country than most of us can ever imagine,” said Sulkala. “Imagine the great sense of accomplishment these veterans will receive from working on vehicles, learning a marketable skill and gaining employment while also being able to help someone else in need.”

As part of the Open House, a special Recycled Rides vehicle, donated

by USAA and refurbished by Caliber Collision, was presented to a volunteer

at Operation Comfort who himself is a wounded soldier.

“This is an incredible worthwhile opportunity to thank veterans who have given so much to us,” Sulkala said. “I absolutely guarantee your Thanksgiving will be much more meaningful once you personally witness the impact of this program on the selfless veterans who have sacrificed for our country. I am honored to be a part of this great industry-wide effort.”

For more information about Operation Comfort, contact Mike McManus 888-667-7433 x 119 or Mary Annen 888-667-7433 x 125.

Clemson Students Unveil Deep Orange 3 at SEMA 2012 Show Clemson University automotive engineering students unveiled Deep Orange 3, a third-generation vehicle, at SEMA 2012 in Las Vegas on Oct. 31.

Deep Orange 3, the third-generation Deep Orange vehicle prototype designed and engineered by the automotive engineering students is a whole new vehicle, inside and out.

Working at the Clemson University International Center for Automotive Research (CU-ICAR), the students have free reign to push the boundaries of conventional design and engineering. They designed the vehicle in partnership with Mazda North American Operations and the Art Center College of Design in Pasadena, CA. Deep Orange 3 features a unique TwinEngine hybrid powertrain that automatically chooses front-, rear- or all-wheel-drive; a load-bearing structure based on innovative sheet-folding technology patented by Industrial Origami; and a groundbreaking 3+3 seating configuration in sports car architecture all packaged in an exterior design created by students at the Art Center College of Design.

Paul Venhovens, BMW Endowed Chair in automotive systems integration, who leads the Deep Orange program, said the latest design not only provides solutions to the effi-

“The students’ design is truly innovative,” Venhovens said. “With each new concept, the class must push the boundaries of conventional thinking to produce a vehicle that is both groundbreaking and functional.

“The students at CU-ICAR represent tomorrow’s engineering leaders who will need to combine deep knowledge of a particular field with the breadth to place it in context,” Venhovens said. “Deep Orange 3 is evidence Deep Orange 3 is the third-generation vehicle prototype designed and of that.” engineered by Clemson automotive engineering students. Image by Deep Orange Clemson University runs the course of ciency-vs.-sportiness debate, but also two academic years in parallel with delivers driving pleasure, practicality Clemson’s two-year masters proand flexibility in a setting where gram in automotive engineering. The program provides students with exeveryone enjoys the ride.

The vehicle accelerates from perience in financial and market zero to 60 mph in 7.5 seconds with a analysis, vehicle design, developtop speed of 125 mph, achieving 42 ment, prototyping and production city and 49 highway miles per gal- planning, and gives them an opportunity to work with automotive inlon.

dustry partners to develop ideas.

Robert Davis, senior vice president of U.S. Operations for Mazda North American Operations and a Clemson alumnus, said the experiences Clemson students gain from Deep Orange makes them very attractive to industry.

“These engineers will design and build the cars we drive tomorrow,” Davis said. “The work they contribute to the Deep Orange project is outstanding, and we at Mazda are honored to support their efforts.”

John Waraniak, vice president of vehicle technology for SEMA, also a CU-ICAR partner, said the Deep Orange project demonstrates Clemson’s vision to develop CU-ICAR as the world’s premier auto manufacturer, performance aftermarket and motor sports research and education facility.

“Deep Orange encourages open innovation, entrepreneurship and creativity,” Waraniak said. “Next-generation vehicle enthusiasts want the fastest and coolest cars, as well as the smartest cars. For this alone, CUICAR and SEMA is an obvious partnership.”

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 49

ASRW Releases Numbers from 2012 Event

Automotive Service & Repair Week (ASRW) released its final numbers from its 2012 event in New Orleans, LA, highlighted by 43 new exhibiting companies.

“By all standards and measurements, ASRW 2012 was a successful event,” Ron Pyle, president of the Automotive Service Association, said in a statement from ASRW. “We continue to adjust the content and activities to best meet the needs of today’s repair professional.”

ASRW featured 237 exhibiting companies, with 43 new exhibitors and 16,652 attendees.

By contrast, the 2011 event sold more than 20,000 tickets to its industry sessions and more than 1,000 allaccess super passes, as was reported last year.

The strong showing in 2011 earned ASRW a place on Trade Show News Network’s Fastest 50 list for growing trade shows.

CynCast Wins CEICA’s ‘ECommerce Co. of the Year’

CynCast has been chosen as CIECA’s 2012 Electronic Commerce Company of the Year. CIECA’s annual Electronic Commerce Company of the Year award is presented to companies that demonstrate outstanding leadership, contribution and dedication to CIECA and the collision repair industry. “CynCast is most deserving of this year’s award,” said Fred Iantorno, executive director of CIECA. “Doug Kelly, Mike Hastings and their team have promoted the use of standards within the industry and adopted an implementation strategy with their clients and partners.” CynCast’s chief technology officer Mike Hastings received the 2012 CEICA Outstanding Contribution award. Both awards were presented during the 2012 SEMA Show in Las Vegas.

Audatex Announces Winner

Nora Chambers of Randy’s Customs Auto Collision Center in Pigeon Forge, TN, was awarded a new Smart Car at the Audatex NACE 2012 booth in front of a large crowd of other hopeful contest participants.

The drawing capped an eventful week in which Audatex marked the successful North American debut of AudaNet, its intelligent, next-generation claims and collision repair platform. The company also showcased a range of updated, new and forthcoming AudaNet products.

American Suzuki OK’d for $45M to Close US Dealers

American Suzuki Motor Corp. won interim court approval to borrow as much as $45 million as it shuts auto dealerships and revamps motorcycle and boat sales under bankruptcy protection.

Suzuki Motor Corp. will try to avoid long court battles with its 216 dealers by offering cash payments within 10 days if they voluntarily scrap their franchise agreements.

The company will also offer dealers the option to become parts and service outlets, including warranty work, for Suzuki customers.

Various state laws normally protect dealers when auto manufacturers try to force them to shut down, Richard Pachulski, another American Suzuki lawyer, said in court.

On Nov. 5, Suzuki put the distributor into bankruptcy to end U.S. losses, avoid the costs of tightening federal regulations and to shut down a sales network in which 69% of dealers sell fewer than five cars a month, according to company attorney James Stang.

U.S. Bankruptcy Judge Scott C. Clarkson gave the company interim authority to borrow the money.

State Farm Donates $70K to Collision Repair Schools

State Farm Insurance recently donated $70,000 to the Collision Repair Education Foundation to help the organization provide financial support to collision repair schools and students nationwide. The Education Foundation said State Farm’s donation will be used for annual student scholarships, school grants and the annual Ultimate Collision Education Makeover $50,000 school grant.

“State Farm’s support of collision repair education is consistent with our long-term commitment to education overall,” said Russ Hoffbauer, claims director for State Farm. “Collision repair education is very important to State Farm and to our customers. As technology in the automotive industry changes rapidly, it is critical to have students entering the field and learning the latest repair methods to be able to provide remarkable service to our customers.”

Clark Plucinski, executive director of the Education Foundation, said State Farm has donated nearly $1 million to the organization overall since it was created.

“On behalf of Collision Repair Education Foundation and the collision students and instructors we support, I would like to thank State Farm for their donation,” Plucinski said.

50 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

Cooks Collision Opens 28th Location in Redwood City

Cooks Collision opened its 28th California location in Redwood City.

The 11,000-square-foot facility, located at 1800 Industrial Way, also will serve the cities of San Carlos, San Mateo, Menlo Park, Palo Alto and Belmont, frequently referred to as the “Silicon Valley.”

“Cooks opened its first location, also in Redwood City, in 1979, not far from this new location. It’s an amazing full-circle experience for my brother Rick and I to expand in Redwood City and to serve the dynamic Silicon Valley area,” said Don Wood, Cooks co-CEO. “We plan to continue our expansion in Silicon Valley with the addition of new locations,” he said.

A year ago, Cooks Collision had 18 locations in Northern California.

With the acquisition of six locations in Southern California, and additional growth in Northern California, the company now has 28 locations.

Wood said that Cooks Collision is the largest family owned and operated collision repair business in the United States.

www.autobodynews.com Continued from Page 20

Make More Money

demonstration, that chasing down a supplement wastes a lot of time and takes people away from work, thereby costing the shop about $288 per supplement.

Chess also touched on the importance of Standard Operating Procedures, or SOPs. SOPs are not needed for every operation, he explained, but for those areas where there are problems.

“Look at what obstacles are blocking production,” he said. He stressed the importance of creating the SOPs with shop employees so they have a buy-in to the new procedure.

“The number one thing an employee wants is to be treated with respect, and the best way to do that is to ask for their input,” Chess said. He went on to give an example of how he helped a shop in Gardenia, CA, go from $88,000 in the red to more than $100,000 in profit and one of the things he did was implement an Employee Appreciation Month.

The benefits of creating Standard Operating Procedures include:

Continued from Cover

Certified Aftermarket

ance.” According to CAPA, this is another reason the state should support certified parts.

In testimony before the Department this summer, Gillis expressed concern about requiring insurers warrant the quality, safety, fit and performance of aftermarket parts without providing a reputable test to make that determination.

Gillis said, “It is simply impossible for a repairer, insurer or consumer to look at a part to determine whether it is [the same as] the part sold by a car company.

Without legitimate, independent certification of comparability, it is virtually impossible for the insurance industry to comply with one of the major tenants of the proposed regulation…”

“There is a legitimate middle ground on the aftermarket parts issue, and parts certified to meet CAPA’s rigorous standards for comparability offer California consumers protection from both poor quality and overpriced parts,” said Gillis.

The October revision also adds language relating to an insurer’s ability • reducing system variations • facilitating training • facilitating cross training • reducing waste • creating regular evaluation of work • improving work activity As an example of a SOP, Chess shared what information he marks on a windshield when a car comes into the shop: • Repair order number • Customer last name • Insurance information or COD • Date of arrival • Target date of repair completion • Name of estimator • Name of technician • Any sublets needed (such as alignment) • Note whether pictures have been taken.

To advertise call Advertising Sales at:

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to seek reimbursement from a third party for the costs associated with the insurer’s obligation to pay for the return, removal, or replacement of a noncomplaint aftermarket part specified by the insurer. However, the regulations stipulate that seeking reimbursement shall not in any way modify the insurer’s obligation to comply with the requirement, nor does it permit the insurer to “refuse or delay compliance with this section on the basis that responsibility for payment or compliance should be assumed by a third party.”

Another change in the October revision addresses the complete use of estimating systems by insurers. The regulation states (language added in October underlined), “An insurer shall not prepare an estimate that deviates from the standards, costs, and/or guidelines provided by the [estimating software], if such deviation would result in an estimate that would not allow for repairs to be made in accordance with accepted trade standards for good and workmanlike automotive repairs by an auto body repair shop…”

New Alabama Association to Kick off Advertising Campaign

Alabama repairers are forming a new collision association called ALARISE (Alabama Automotive Repair Industry Society of Excellence) and are working on a new advertising campaign (TV and radio) during December aimed at consumer awareness. The association is also finalizing the details for a meeting for its charter/founding members, and planning a membership drive. For more information contact Steve Plier at (205) 623-9307 or email info@alarise.com.

BASF and Finishmaster Win New Trial in Paint Lawsuit

On Aug. 30, a federal jury awarded Custom Car Crafters of Austin, TX, $1.5 million from BASF and $750,000 from FinishMaster. Custom Car Crafter’s was also awarded $1.5 million in compensatory damages. However, on Nov. 5 the court reversed itself and agreed with BASF and FinishMaster that the jury’s verdict was inconsistent.

It has has ordered a new trial, vacating the misrepresentation and fraud claims of Custom Car Crafters.

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www.hendersonchevy.com www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 51

WD-40 Keeps on Truckin’ When it Comes to Helping Others

by Ed Attanasio

We know how many uses there are for WD-40® and you’ve probably been using it for many years. But are you aware of all the charity outreach that the company performs every year, through its SEMA Cares vehicles program?

Here is the initial mockup of the WD-40®/SEMA Cares Foose ’53 Ford F-100

After the last three WD40®/SEMA Cares vehicles raised a combined $400,000 for children’s charities during previous shows, Chip Foose and WD-40® Company teamed up this year one more time to build two more custom trucks, a 1953 Ford F-100 and a 2012 Ford F350, that will eventually be auctioned off to benefit the SEMA Cares program.

This year’s first project vehicle, the WD-40®/SEMA Cares Foose ’53 Ford F-100, was created to commemorate the 60th anniversary of WD-40®.

Six decades ago, engineers in San Diego, CA, developed this product to displace moisture on the Atlas missile, and today WD-40® is sold in 187 countries worldwide.

Featuring a vintage “shop truck” look with an updated drive train and suspension, one-off Foose wheels and custom paint, this one-of-a-kind pickup truck looks similar to the truck used to deliver the first case of the product in the early ‘50s, back when the company was called Rocket Chemical Company.

Proceeds from the auctioned vehicle will benefit two SEMA Cares charities—Childhelp®, an organization that provides services to abused and neglected children, and Victory Junction, which provides life-changing camping experiences to special needs and chronically ill children.

WD-40® Brand Manager Shannon Edwards passionately believes

in supporting causes that help children while strengthening the automotive industry in the process, she said. “Victory Junction is a great organization and Childhelp offers a wide variety of services to abused and neglected children, as well as

clude: Foose Design, Street Scene Equipment, Barrett-Jackson, LMC Truck, L&R Automotive, Egge, MHT Wheels, Pirelli Tires, BASF Paint, American Auto Wire, Painless Performance, Quiet Ride, K&N Filters, Red Kap and McGard.

The WD-40®/SEMA Cares Foose ’53 Ford F-100 commemorates the 60th anniversary of WD-40®

to treatment counselors, educators, parents, foster care families the community and law enforcement professionals.”

Leading aftermarket manufacturers and other companies that chipped in to build and promote the vehicle in-

“This year, we’re upping the ante and building two vehicles – one that pays tribute to WD-40® Company’s history, and one that celebrates some of its newer specialty products that help auto pros like me get the job done right,” Foose explained. “With the

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help of some great aftermarket partners and a lot of WD-40® brand products, we’ll be able to build two vehicles that honor those who work hard every day.”

The second project vehicle, the WD-40® Specialist/SEMA Cares Foose Ford F-350, is a custom 2012 Ford Super Duty work truck that includes Foose-inspired front and rear wheel flares, side rockers, and custom bodywork, among other upgrades. The vehicle represents the new WD-40® Specialist line of prod-

The WD-40® Specialist/SEMA Cares Foose Ford F-350 is a custom 2012 Ford Super Duty work truck

ucts that help skilled trade professionals get their specific jobs done with ease.

Following its debut at the 2012SEMA Show inside the WD-

40® Company booth, this vehicle will hit the road for several months making special appearances before being auctioned to help fund the SEMA Cares scholarship fund.

Leading aftermarket manufacturers and other companies that chipped in to build and promote the vehicle include: Foose Design, Street Scene Equipment, Ford, Source Interlink Media, Icon Vehicle Dynamics, DynaTrac, Custom Truck Shop, BFGoodrich, Magnaflow, Takit, Husky Liners, LEER, Katzkin, Pro Comp, Polk Audio, Audio Innovations and PowerBass.

After its unveiling at SEMA, both vehicles will embark on a tour at automobile shows and other events throughout the West, before being auctioned for charity at the Barrett-Jackson Collector Car Auction in Scottsdale, AZ, Jan. 13–20, 2013.

Edwards is happy to work with Chip Foose for a wide range of reasons. “He lives our values and makes a lasting impression in everything he does. The way we run our company and the way Chip operates his business are very similar, and that’s why we’re very pleased to be associated

Chip Foose is a crowd pleaser wherever he goes.

Here he signs WD-40®’s Asia Simonella’s shirt at 2012 SEMA

with him, especially on great projects like this one.”

Ford Motor Company sold WD40® its Ford F-350 for one dollar, Edwards said, and in just eight months it went from blueprint to reality. “Ford stepped up and Foose with Mike

Spagnola from Street Scene Equipment in Costa Mesa, CA, made this truck a one-of-a-kind vehicle. By using some of the best of the best in this industry, we were able to get two amazing trucks that efficiently communicate our message while capturing a point in the company’s history with the ’53 Ford F-100.” WD-40®’s marketing VP thanked everyone involved, with special kudos for Foose and his finished product.

“These charity vehicles would not have been possible without the hard work and vision of Chip Foose and his team, as well as the time, energy, dedication and resources of our build partners,” said Tim Lesmeister, vice president of marketing for WD-40® Company. “After raising a combined $400,000 for SEMA Cares with our last three project vehicle builds, we expect these trucks to turn a lot of heads and continue to help a great cause.”

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Phoenix Hosts Next Sherwin-Williams, Summit Software Collision Facility Digital Marketing Seminar

Sherwin-Williams Automotive Finishes A-Plus™ Network University and Summit Software and Marketing will conduct their Digital Marketing Advanced Business Class—specifically created for collision repair facilities—in Arizona Nov. 27 at the Holiday Inn & Suites Phoenix Airport.

The program is designed to meet the challenges body shop decisionmakers and their marketing managers face in today’s rapidly changing digital and information age. The workshop is recommended for all collision shop owners and their staff involved with marketing collision repair services and engaging with their existing customers and prospective ones.

Key takeaway items the workshop will educate attendees on include the following digital and social media strategies and tactics: • What is digital marketing?

• Why is digital marketing a requirement for success in today’s world?

• What is a shop’s potential digital marketing audience?

• What benefits can a shop expect to receive from digital marketing?

• What’s the importance of a digital marketing database?

• Why your website is your on-line lobby.

• SEO, PPC, SEM, and other on-line marketing tools.

• Email, text messaging, smart phones, phone apps.

• Mobile internet marketing.

• On-line reputation management; Customer reviews and ratings.

• Digital ads, promos and coupons Group On, LivingSocial and other social commerce sites.

• Location-based services and marketing.

• Social media - Facebook, Twitter, YouTube, Google+, Yelp, others.

• Using digital marketing tools to generate revenue and profit from previous customers.

• Who in the shop should “do” the digital marketing?

• How much time and money should a shop spend on digital marketing?

To register online for the upcoming Phoenix digital marketing workshop, contact Francine Schaefer at (216) 332-8524. For more information on the A-Plus Network, call (800) 386-3881 or go to http://www.sherwin-automotive.com/en/Markets/Collision-Repair/A-Plus-Network.aspx.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 53

Guilty of Junk Thinking? ‘How to Think Better’ at SEMA 2012

by Melanie Anderson

business development, including, but not limited to: green-field and startups, process development, venture capital, financial literacy, acquisitions and disposition. He also holds an MBA and previously owned four collision repair locations in Arizona that were sold three years ago to Gerber Collision & Glass.

“The purpose of this presentation is to identify junk thinking, act on it, change it, and improve business thinking,” said Park. In short, junk thinking is “thinking that leads to a train wreck.”

Junk thinking is a major reason why businesses fail. The top 5 reasons a business fails are: 1) lack of experience 2) insufficient capital 3) poor location 4) poor inventory management 5) over-investment in fixed assets “The commonality here is junk thinking,” Park said.

Junk thinking happens because it’s easier. “Thinking is hard,” Dr. Bissell said. “Good thinking takes effort, discipline, and learning how to have good thinking. Good thinking doesn’t come naturally. Start the journey to good thinking first by admitting to engaging in junk thinking.”

An example of junk thinking, Park said, is that employers will often hire workers based on their work skills, which is only 20% of their total skills—the other 80% being “soft skills”—such as how they get

Two powerhouse thinkers thought they could change the way we think and so presented “Change the Way You Think at a CORE Level” at SEMA 2012 in Las Vegas.

The purpose of the presentation was to provide a clear understanding of what junk thinking is, show evidence of existence of junk thinking in the market, and provide a clear direction to depart from the junk Byron Bissell thinking environment. According to speakers Bill Park and Dr. Byron Bissell, junk thinking is responsible for at least 80% of the problems in one’s business.

“The lack of quality thinking has led to enormous disasters and disappointments. And it’s not only thinking through the solutions to the gnarly problems. More often than not, it’s the painful reality you’re working on the wrong problems,” said Dr. Bissell.

Dr. Bissell is a retired associate professor of business from the University of Arizona and is currently a blogger for mPowerU, a website dedicated to providing insight and information to the auto body collision repair industry. His background includes working as a manager, an educator, scholar, academic administrator, behavioral consultant, psychiatric social worker and child welfare caseworker. He holds a PhD in business and a Master’s degree in psychiatric social work and in public administration.

Bill Park currently trains and consults small to medium sized businesses in the auto- Bill Park (l) and Dr. Byron Bissell (r) encouraged SEMA attendees to motive collision stop junk thinking and to think better along with people, their work ethic, repair industry. His passion is to “Add attitude, presentation. Basic job devalue. Period.” Bill also has founded and operated multiple businesses over scription skills can be taught, especially for those employers who want the years, ranging from small, 2-3 person entities, to a medium sized 100- their people to follow particular stanemployee corporation. Bill has over dards. Other examples of junk think20 years experience in all facets of ing include crisis management,

54 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

wishful thinking, biased thinking, and denial.

Dr. Bissell described how our brain thinks. Our five senses capture data from an external environment and our brain interprets the data and processes it. The brain then identifies what the information means to us and selects the behavior we will engage.

In a nutshell, Bissell and Park said there are two types of thinking. The first is called System 1 and is the type of thinking we do lightning fast, that is automatic and effortless. For example, we automatically stop at a red light.

We don’t have to think about it.

System 2 thinking is slower, methodical, deliberate, controlled and ruled-governed. It uses up a lot of energy and it’s a lot of work. Most of us avoid that type of thinking. To visualize System 2 thinking, think of a turtle working on a Rubik’s Cube.

When an event happens, we take about a nano-second to compartmentalize it. System 1 thinking is, do we pay attention to it, ignore it, deal with it now or later? If it’s later, we move it into System 2, where we give it a great deal of thought later.

In System 2 thinking, we pull information from memories and beliefs.

“The reality is, knowledge is based on beliefs,” said Dr. Bissell. System 2 thinking comes into play when we ask ourselves, “Is what I know enough?”

If you say yes, then you take action. If you tell yourself no (which we rarely do because it takes strength to admit we don’t know enough), we move on to System 2 thinking and seek more information.

Junk thinking is a result of System 1 thinking when we should be using System 2 thinking. “The trick is to know when to activate System 2 thinking,” said Bissell. “If the costbenefit ratio of time and energy to use System 2 thinking is positive, then engage it.”

Success in the auto repair industry starts with good System 2 thinking, and tuning up your CORE, Bissell said.

CORE thinking is an acronym for: Cognition (the way you think) Organization (how information is stored and retrieved) Reference (based on your identity, who you think you are) Energy (mental)

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To think better, prepare yourself to make thinking changes. Change the way you think; change what you believe; change your perception of who you are; change how you direct your mental energy. “We seem to have a prime directive inside all of us that

Bill Park

says ‘we shall not change,’” Bissell said. “In order to change, you have to be willing.”

“What we can do better from a business perspective is better understand the real business we are in, which, by the way, is not fixing cars,”said Park. “People feel stuck, they don’t have the control they want.

A business has to be under constant experimentation and testing based on sound thinking principles.”

Park asked the audience to speak up and admit to a major mistake they had made based on junk thinking. A shop owner from Hawaii said he made a million dollar expansion to his business without utilizing the knowledge and expertise of others, particularly vendors. The owner didn’t design the expansion properly and ended up changing the shop layout, which cost him time and money.

Assumptions and emotions can get in the way of good thinking. We think we know best. Bissell cautioned that emotion is an important part of decision making but needs to be controlled, not eliminated.

Dr. Bissell pointed out that we need to think about what could go wrong. We need to do due diligence.

“You have to be willing to hear what you don’t want to hear,” he said.

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Timken High School Auto Body Students Restore Army Humvee for Canton Police Department In Canton, OH, auto body students at Timken High School are restoring the police department’s new U.S. Army Humvee.

Teacher Rick Gerber and his auto body students are dismantling, sanding and painting the newest addition to the Canton Police Department.

“We’re pulling all the plating off of it so that we can do a nicer job painting,” Gerber said.

Some sophomore students helped pull off the armor plating, he said, but the juniors and the seniors will do the majority of the restoration work.

The 2007 vehicle features armored plating that enables police to use it “for tactical operations with the SWAT team and for officer rescue in high-risk operations, such as armored confrontations,” said Police Lt. Les Marino.

Marino applied for the Humvee,

through the Ohio Department of Public Services, which obtained it through the Ohio Law Enforcement Support Office, whose mission is to help law enforcement agencies obtain surplus military property. It had been used as a training vehicle at Fort Campbell, KY, he said.

Valued at about $35,209, the vehicle came to Canton in “like-new condition,” with only 7,300 miles on it, Marino said.

“We picked it up in May, but we’re just now getting around to getting it serviced,” he said. “We’ll have to order ballistic glass to replace the plastic glass.”

Gerber and his students discovered two plates missing. The 1/4-inch plates were used to shield the windows. The school’s welding shop class is constructing new ones.

Gerber said the doors, which were removed, weigh about 250 pounds apiece. The gun turret on top of the vehicle was about 300 pounds.

Eight students worked to disassemble the turret so that it could be painted and reinstalled, he said, adding that the ballistic glass is about three inches thick, and the vehicle itself is in great shape, he said.

Dealers Hit by Sandy Worry about Insurance, Inventory, and Non-insured Business Losses Mark Scheinberg, president of the Greater New York Automobile Dealers Association told NADA Used Car Guide that “some big issues right now revolve around insurance,” for dealers in areas damaged by Sandy.

“Flood insurance was not available for most of the coastal property, so damage to property is on the dealer,” Scheinberg said.

He also noted that FEMA does not help with business losses, so dealers must deal with storm impact on their own.

The Greater New York Automobile Dealers Association has contributed $250,000 on top of the $1M provided by NADA to the Emergency Relief Fund of the National Automobile Dealer’s Charitable Foundation.

Approximately 340 dealers in New York were affected, and about 25 percent still have issues, either with phone lines, power, or Internet (as of Nov. 8), officials shared. And it isn’t just physical damage they are worried about.

“Many dealers’ insurance plans do not cover for losses from losing business days. This is a challenge since about 85 percent of dealers service employees are union and are guar-

anteed a 30 hour minimum work week,” Scheinberg told NADA UCG. As for the vehicles themselves, thankfully, Scheinberg explained that many new vehicles are covered by floorplan insurance, so many dealers are “not on the hook” for damaged vehicles.

“There were a lot of units lost because any salt water damage on vehicles results in a salvage situation.

Also, since dealers don’t have much real estate, many vehicles were stored on piers and in other areas near the coast,” Scheinberg explained.

Penske Motor Group’s 36 dealerships along the eastern United States were impacted by the storm and lost, on average, three to four days of business, with the dealerships in the New York metropolitan area suffering a more prolonged impact.

The most severe damage was felt in Jersey City, NJ, where three of the company’s dealerships sustained damage from flooding, including the loss of approximately 1,000 new and used vehicles which were in inventory.

Power was restored to those dealerships on Nov. 6, and the dealerships have re-opened for business.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 55

Rich Evans and Crew Unveil 2004 H2 Hummer at SEMA 2012 Rich Evans and crew unveiled this 2004 H2 Hummer at SEMA 2012.

The H2 Hummer was built in 10 days in Canada for the first taping of Evans’ new show, “World Wide Car Building.” All nine U.S. builders were there, as well as the Canadian team from Curtis Customs.

Shelby Tribute Held at SEMA 2012

With the passing of Carroll Shelby on May 10, 2012, the automotive industry lost one of its most legendary entrepreneurs. His creative efforts and partnerships resulted in a legacy of unmatched high performance—leading many to consider him not only the man behind the term “American muscle,” but a driving force for the specialty-equipment market as well.

Throughout this year’s Show, SEMA honored Shelby with a special exhibit entitled, “The SEMA Shelby Tribute.” Located in the northwest corner of the Las Vegas Convention Center’s North Hall, the exhibit included a large wall where attendees could write their own personal remarks about Shelby and what he

meant to them. Above the wall, a large screen displayed historical images depicting Shelby, his career and his creations. Several iconic Shelby vehicles, courtesy of Ford Motor Company, were also on display.

“Carroll Shelby was among the greatest game-changers in the performance automotive industry. He was one of our true living legends and will always be a tremendous inspiration to enthusiasts, racers, designers and those who revel in making horsepower,” said SEMA President and CEO Chris Kersting.

“He shared with so many his passion for performance, customization and style. And he set himself apart not only with international racing breakthroughs, but by bridging the gap between hot rodders and automakers, turning stock vehicles into supercars of global renown.”

“Carroll Shelby was inducted into the SEMA Hall of Fame in 1986.

His life and accomplishments meant a lot to the automotive aftermarket,” said SEMA Show Director Tom Gattuso.

56 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

On Creative Marketing

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

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

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

What’s the Value of a Lifetime Customer? with Thomas Franklin

In his unique book on marketing, “GetWhat is the value of a lifetime custing Everything You Can Out of All tomer? Let’s just take 15 years. A typical driver has some sort of vehicle You’ve Got,” author Jay Abraham damage once every three to five years. says: “Until you identify and underIf we count little parking lot scrapes stand exactly how much combined and minor dents, three years may be profit a client represents to your busijust about right. That means a good ness for the life of that relationship, you customer might visit the shop five can’t begin to know how much time, times in 15 years, but at least three effort and ... expense you can afford to with Dick Strom invest to acquire that client in the first times. How important is it that this customer becomes a repeat customer? Of place.” Cable, phone and other similar course that depends on the size of the companies offer a low rate for the first shop, the referral sources the shop reyear to gain new users. It’s well known lies on, and the number of repeat custhat repeat buyers and users become far tomers the shop relies on to maintain a more profitable as time goes on. How steady, profitable business. A shop with can this approach apply to a body many DRPs providing a steady flow of shop? new customers may not be as conVisiting many shops over the cerned with repeat customers as a small years, I’ve often heard the viewpoint to medium sized shop that needs at that fixing dings and small dents is a least half of all customers to come back losing proposition. They say the time withagain Leeand Amaradio again—and hopefully again. andJr. effort just generating the paper In just those 15 years, a repeat work costs more than the small profit customer might generate $5,000 worth made for the repair. Obviously this of business, and possibly much more. viewpoint is not taking into account the

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lifetime value of a customer. It also overlooks the habit principle that says the number of repeat experiences determines how deeply a habit is ingrained in an individual. Just getting someone to come to the shop multiple times (without having a bad experience) will accustom that person to having a repetitive relationship with the shop. How deeply the habit is ingrained will also determine how resistive the customer will be to being pressed by his or her insurance company to go to their selected DRP shop. For many people, a strong, personal relationship is necessary to be willing to reject their insurer’s insistence on using a different shop than yours.

So, how far would you go to get many, if not most, customers to become lifetime friends and customers?

Jay Abraham says it starts with viewing the person as a ‘client’ rather than as a ‘customer.’ A customer is one who purchases a product or service, but Jay notes that a client is defined as “a person who is under the protection of another.” He advises becoming a trusted adviser who they can look to for protection—in our case from predatory shops seeking obscene profits or making fraudulent claims, or insurance companies directing them to a shop that is more to the advantage of the insurance company than to the customer/client.

I’ve seen the length some shops Continued from Page 30

SCRS on SEMA

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refinish business customers. It’s a nice synergy.”

SEMA also exhibits a set of intangibles that adds to its allure. “The show brings together everyone that is an auto enthusiast, which makes it unique,” said Jeff Kern, president of Car-O-Liner, another company that has increased its booth size every year and was one of the first collision repair vendors to host a booth on the SEMA show floor. “Attendees get a sense of ‘we are all in this together’ and feel a part of a greater automotive-related whole, perhaps, they never would have gotten to experience otherwise.”

will go to, to find a less costly part or to provide service above and beyond what is generally expected. The customer/client loyalty to these shops is quite remarkable. But is there something more a shop can do to cement a lifetime relationship during that first visit to the shop? Many businesses now provide customers with a ‘reward’ card and department stores provide customers with a credit card only good at their store. Most reward cards just accumulate points for gifts or to apply credit against a future purchase. I’ve heard of a few shops that were in the process of creating a similar card to give to first time repair job customers.

But the card could also be used for car washes, detailing, pin-striping and other vehicle related services.

A completely different approach is providing an estimator with special incentives to build a more personal relationship with first time customers. If a shop has a long-term estimator who can be counted on to stay with the shop far into the future, the personal touch is often key to getting people to come back. Letting the estimator be the good guy, cutting some costs or speeding up repair time, can endear him or her to the customer. Many people come back simply because they like and trust a specific person at a place of business.

When future business is taken into account, a shop is always wise to calculate profits in the long run.

SCRS Board Member Kye Yeung likewise sees benefit in the distinctive nature of the show. “Because the SEMA show includes all auto-related businesses, it provides a kind of neutral background which, for some reason, seems to encourage networking between shop owners,” he said. “I guess you could say it takes us out of the day-to-day mindset we fall into as we are grinding away in the trenches, so we can look at our competitors more objectively and appreciate what they have to offer.”

Top-notch education of the type SCRS provides through RDE is yet another reason repairers find the show compelling—explaining why so many collision repair vendors have stepped up to support the program.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 57

Inside Insurance

The Insider is a corporate-level executive with a Top 10 auto insurer in the U.S.. Got a comment or question you’d like to see him address in a future column? Email him at Auto.Insurance.Insider@gmail.com

Customer Service Has the Power—Don’t Perfume the Pig with The Insurance Insider

Customer service has taken on a life ate the desired result. There have been unto itself. If you don’t have a job in a few success stories, but far more exwhich customer service is Priority amples exist of money wasted for 30 with Rae seconds Sisk of air time.

Number One, then you Chasidy won’t be employed for very long. Why? Because As a result, companies are now your company will lose business and eventually downsize or go out of business. We’ve become a society where outstanding customer service is no longer just expected. demanded. withIt’s Chasidy Rae Sisk And it’s demanded NOW! Remember that old slogan at Burger King: “Have It Your Way.” To elaborate how extensive the desire to please the customer goes, here’s my embarrassing tale of my teenage grandson. He was visiting the other day and told me that he’d gone into a “BK” the day before and immediately after orevaluating whether or not spending the dering had asked them to make fresh ridiculous amounts of money on marFrench fries because he didn’t want the keting and advertising pays dividends. ones already made. And I suppose their Buying customers through trendy adanswer will be anti-climactic at this vertising still requires you to deliver an point: They did it. exemplary product and service. My I asked him why? Were the fries dad used to say, “Son, you can’t put old? He said, acting very surprised, that perfume on a pig.” The pig may smell they weren’t at all. But they told me, he nice but he’s just as dirty and sloppy as said, that “I can have it my way.” Wow. he was before. The bottom line is that I wish I could employ those tactics at he is still a pig. I think that’s what conhome with my wife. It’s never my way. sumers have experienced with those Customer service seems to be the companies that have spent significant primary driver and motivation for viramounts of their annual budget to attually every large corporation today. At tract but not retain. times, profitability seems almost secSo, you may ask, if companies ondary. Okay, maybe not quite, but the aren’t growing, what are they doing to fact is that customer service motivates retain business? They’re doing a myrcompanies to take action and change. iad of things but let’s focus on their diJD Powers and Associates’ customer rect repair programs (DRP). As a direct service reports seem to draw the same repairer for a given insurance company, focus as quarterly earnings reports. Exdo you have any idea the power you ecutives await the results to see if their have to influence the customer’s perattempts to drive results have become a ception? If you don’t, you are missing reality. Employees await the congratuthe best opportunity you have to grow latory email or a call-to-action to imyour business. prove results.

You aren’t really in the business of In the shrinking market for auto repairing vehicles, nor are we insurers insurance, carriers are focused on gainin the business of paying for their loss. ing and retaining their customer base.

All of us are in the business of providWe spend millions of dollars on maring service in a time of need. The easiketing to new customers. Has that est thing any of us can do is help the translated into new policyholders? The customer through something that hapresults have been mixed. If it was that pens once every seven or so years on easy, even a caveman would do it. If it average. We should be providing rewas as easy as throwing money to crespect, courtesy, information, updates, ate commercials and trendy gimmicks, smiles, reassurance and comfort to everyone would be following that name a few things. The cost to provide model AND reporting record sales. those items? Nothing. Assuming that Spending millions hasn’t proven to creyou don’t charge for effort, care and

Northeast News Shop Showcase

compassion.

The sooner you realize that, the sooner you can win the game. Customers and insurers expect the car to be repaired properly and on time. We both demand customer service. Depending upon the carrier, the vehicle owner will spend more time in your facility and interacting with your staff than they will with their insurance company. If you wow the customer, the customer is going to be satisfied with you and more than likely the insurance company. If they don’t like you, you can bet your last customer service survey that they don’t have a lot of nice things to say about us either.

In my opinion, insurance carriers allow the repair facility to have too much influence on the customer experience. Carriers have become acclimated to pushing additional responsibilities onto the shops. Customer service is something that insur-

Mainstream Media

58 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

ance companies need to reclaim more of a share in. Unfortunately, insurance companies are beset with shrinking budgets and are reducing staff because of the lack of growth and fierce competition.

That’s good news for shops. It creates an opportunity, obvious or not.

Find a way to deliver consistently outstanding customer service, and your direct repair business is going to grow exponentially because insurance carriers need you.

Don’t try putting perfume on the pig. You can’t fake good customer service. You either create a culture of service in your business or you will be left behind with the other swine.

“The Insider” is an auto insurance company executive who wishes to remain anonymous. This column reflects solely the opinion of The Insider as it offers an unvarnished look at various issues impacting the collision industry.

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

Northeast News with Chasidy Rae Sisk

CCRE’s Fall Seminar Covers Adhesion, Warranties, and Much More As a follow-up to the CCRE legal PCTG and CCRE Board Member, adseminar held in March 2012—which dressed the importance of understandadhesion, or more specifically, an I attended and wrote in Autowithabout Chasidy Rae ing Sisk body News (search “CCRE” at auto- adhesion contract. [Editor’s note: An bodynews.com)—the Pennsylvania adhesion contract is one which is imCollision Trade Guild (PCTG) hosted balanced in favor of one party over the the Coalition for Collision Repair Ex- other so that there is a strong likelicellence for the second event in this hood it was not freely negotiated. series of seminars.

Example: a rich landlord dealing CCRE’s 2012 Fall Seminar was with a poor tenant who has no other held Friday and Saturday, September options and must accept all terms of a 21–22 at the Airport Embassy Suites in lease, no matter how restrictive or burPhiladelphia, PA. PCTG decided to densome, because the tenant cannot afford to move. An adhesion contract host CCRE again due to the overcan give a “little guy” the opportunity whelmingly positive responses they received on the 2012 Spring Seminar. An to claim in court that the contract with the “big shot” is invalid. This doctrine audience of nearly 50 came to Philadelshould be used and applied more phia from as far away as Alaska.

Attorneys Erica Eversman and often, but the same big guy-little guy John Parese joined the CCRE’s legal inequity may apply in the ability to afseminar as featured speakers to share ford a trial or find and pay a resourcetheir legal expertise on the collision ful lawyer.]

Behrendt explained how a relarepair industry.

In his welcome and introduction tionship with a third party (i.e., the inspeech, Steve Behrendt, president of surance company) triggers a legal and

Shop Showcase

binding contract which exploits a shop’s ability to do business individually. Behrendt said that avoiding adhesion will help collision repair shops

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Attorneys Erica Eversman and John Parese

operate independently by providing them with the freedom to be paid based on the services performed as adhesion can influence a court’s decision against a shop as it regards their relationship with a third party. In contrast, an authorization to repair form protects a shop’s independence, their relationship with the customer, and their need to make a profit by distancing them from the insurance company.

Through adhesion, third parties try to make the reserve estimate part of a shop’s repair process by utilizing their estimate as a method of payment, but the estimate is only the third party’s guess at the cost of the repair, not a blueprint for the repair.

The insurance company’s estimate is created to verify that there is a legitimate claim and to set a claims reserve which is money earmarked for eventual claim payment. Shops need to find a way to eliminate this estimate in order to prevent insurance companies from controlling their business. One way to do this is by stamping all third party documents as “for informational purposes only.” This preserves the shop’s independence by avoiding adhesion and any type of agreed-price scenario. It also allows shops to distance their business from a third party’s control and behavior. Shops should prepare and work off of their own repair blueprint and analysis, and this is what should be used for the repair and the final invoice.

Shops should properly prepare and close their final invoice based on the shop’s job costing and gross profit, handing the invoice to the insurance company for final payment.

Moving from a collision repairer’s point of view to a legal point of view, attorney Erica Eversman took the floor to discuss repair contracts and authorization to repair which was very similar to the presentation she gave in March of this year. Discussing the differences between the two contracts in a non-DRP relationship compared to the three contracts that make up a DRP relationship, she noted that “insurers like to think they’re in charge of everything. They want all of the control and none of the responsibility.” In a DRP relationship, two informed parties have an agreement about how to satisfy the obligations of their individual contracts to the customer, usually before a collision actually occurs. In the current aberration for individual shops, the insurer acts as if the repairer has duties to this third party which is why it is so important for shops to utilize a written repair contract. A classic example of a contract of adhesion is

Steve Behrendt addresses the contract of adhesion

found in insurance policies as one party has more power than the other since consumers are legally required to have auto insurance. This is the only industry where consumers do not really have the ability to negotiate their contracts or even see the terms before they purchase it, which is why this binding contract can be cancelled.

In the relationship between a repairer and a consumer, the repairer’s responsibility is to inform the customer, acquire authorization and repair the vehicle, while the consumer should receive information, approve the re-

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 59

pairs and pay. Repairers have no right to expect payment from the insurance company as they should expect payment from the consumer, but though it’s important to provide customers with an estimate of the repair cost, consumers are more concerned with how their car gets fixed since the insurance company actually pays the bill. This is why Erica recommends getting the customer’s informed consent after the repair process has been fully explained to them so they understand what is going on with their vehicle.

A repair contract should define the customer, the shop’s duties, what type of parts will be used, the damages to the vehicle and the repairer’s professional judgment. A wise inclusion is the right to expectancy damages which will entitle the collision shop to get paid for costs accrued if the customer opts to take their car to a different shop. This also includes reimbursement for loss of work if the insurance company persuades the consumer to have their vehicle repaired at a DRP shop. Additionally, this encompasses the preparations that the shop has made, such as ordering parts and allocating time and personnel. This can also include opportunity cost, defined as potential business that may have been turned away because the shop’s resources had already been dedicated.

This will help to establish recovery from tortuous interference. The signed contract ensures that the shop has the right to sue for expectancy damages.

The repair contact is designed to emphasize that the repairer is the professional and that repairs are based on the repairer’s professional judgment.

When there is a conflict in the opinions of the repairer and the insurance company regarding what is right to do, the repairer’s opinion should take precedence because they are the professional. Erica believes this is important for developing a better public relations standing regarding how complicated collision work is since there are many variables that come into play; unfortunately, the collision industry is losing the public relations war because insurance companies spend a lot of money advertising about how they repair vehicles, leaving consumers with the misconception that their insurance company will fix their car, through the insurer only pays for the repair.

Emphasizing that shops “must remember that the insurance company is not their customer,” Erica reiterated her lesson from March about the three

options that insurers have when handling a claim and how a DRP relationship allows them to control the repair without accepting liability. She discussed the usefulness of addressing replevin in the repair contract. Replevin, sometimes known as “claim and de-

Truman, Steve, Rick, Mike and Tony of CCRE

livery,” is a legal remedy which allows the recovery of goods unlawfully withheld from possession via a legal process in which a court may require a defendant to return specific goods to the plaintiff at the outset of the action (i.e. before judgment). Replevin grants the shop the right to a possessory lien, allowing them to retain the vehicle until payment is received. Erica explained the benefits of an Assignment of Proceeds and other documents.

Another useful document is the Acknowledgement Terminating Repair Contract and Releasing of Motor Vehicle which is designed to protect collision shops by giving them the chance to retain business by informing the customer of what is going on and by improving a shop’s chances should they decide to take the case to court. A Customer Notice of Insurance Deficiency informs the customer of their insurance company’s refusal to fully pay to properly and safely repair the vehicle. This helps in the public relations battle as it shows the shop’s refusal to breach their repair contract by adhering to the insurer’s pressure to provide an unsafe repair.

A Customer Notice of Insurer Delay keeps the customer informed regarding their repair by alerting them to delays caused by their insurance company. Shops can also provide their customers with the Vehicle Damage Insurance Election form which they can send to their insurer demanding to know how they plan to pay for the repair. Though it is highly unlikely that any insurance company will sign this document, the insured has the right to demand a response from their insurance provider. A Notice of Additional Cost can also be sent to the insurance company to inform them of additional

60 DECEMBER 2012 AUTOBODY NEWS | www.autobodynews.com

costs incurred during the repair. This document helps independent collision shops avoid third party interference by refusing to permit the insurer to cause inefficiency and by giving the impression that the insurer must respond to the shop, reiterating the point that the

repairer is in control of the repair.

Erica Eversman also recommended providing consumers with a Parts Notice and Authorization document, which she plans to publish on autoepi.org for distribution, in order to help consumers understand the various types of parts that may be used to repair their vehicle. She ended this presentation by repeating her opinion of the dangers of aftermarket and salvage parts and discussing what shops should and should not warrant, emphasizing that shops should not offer a warranty on anything other than their workmanship.

Next, John Parese, Esq., discussed the definition and uses of an assignment. An assignment is a transfer of property or another right from one person to another which confers a complete and present right in the subject matter. As a contract between these two parties, an assignment is subject to contract law and interpretation. Causes of action issuing from a wrong which causes injury to the property or from tort by which the property is diminished or damaged are generally assignable, and a party may assign their right to recover damages to the property without conveying title to the property.

A valid assignment requires clear evidence of the intent to transfer rights and a description of the subject matter of the assignment; it must be clear and unequivocal, and it must be noticed to the obligor. While there are no formal requirements for an assignment, the language used must indicate the owner’s intention to transfer the claim.

Valuable consideration is essential to support an assignment, and though the word “consideration” does not necessarily have to appear on the assignment, Parese recommends it. An

assignment requires an exchange, such as allowing a customer to take their vehicle without the shop receiving payment if they sign the assignment. An Assignment for Money Due should identify the customer, facility, vehicle and loss. The document does not need to be notarized and should be enforceable without defects. Parese also advises shops to have all customers sign a repair contract. Parese ended his presentation by using clips from “Hot Coffee” and several insurance commercials to reiterate his message about public relations from the March seminar.

Tony Lombardozzi, President of CCRE, followed with a brief talk on the need to change the mindset of collision repairers and to send a message of whose business the insurer is visiting. In the collision industry, “we operate every day on fear”, Lombardozzi claimed, continuing to elaborate that shops fear losing business and being subjected to steering.

On Saturday, John Parese began the seminar with a presentation entitled Ten Steps to Consider When Filing a Lawsuit. The first step is to provide proper documentation, including a signed repair contract and the final invoice. Noting that “the insurance company doesn’t like being sued,” Parese reminded attendees that the insurer’s estimate is just a guess on the likely damages and is not reliable. The second step is to verify that all work was completed and billed correctly. Because lawsuits result in hyper scrutiny on both ends, it is imperative that the repairer did everything they claim they did during the vehicle’s repair.

Step 3 requires the use of a proper Assignment of Claim which will allow the shop to stand in the customer’s shoes to acquire payment. The fourth step involves choosing a reasonable customer, and it is important to lay the proper foundation of information as surprises in the courtroom are a bad idea. The case a shop chooses to fight in court should involve a cooperative and informed consumer.

Step 5 is to establish liability with the information to prove the basis of the claim. Parese notes that “you have to establish negligence in order to prove liability”, but on short pay cases, it can be argued that the insurance company accepted liability by paying on the damages, even if they did not pay in full.

Step 6 requires securing all necessary documents, including the police report, proof of liability and all infor-

mation about the parties involved. Providing all of this will make the process as easy as possible on the lawyer.

While shops may not win every single case, each small victory affects business since it will dissuade insurance adjusters from harassing the shop. The seventh step involves finding an attorney to take the case, and Parese notes that small cases are often combined into one larger case. Step 8 is to create a labor rate survey by surveying 12–20 local shops to disprove the insurance company’s common claim that a shop has the highest labor rates in the area.

This survey can help justify the claim that your rates are reasonable, and the goal is for your posted rates to fall somewhere in the middle of the shops included in the survey; however, it is important not to share this information to avoid accusations of conspiring with others to increase labor rates.

Step 9 is to provide several examples of being paid your labor rate, proving your posted rate is reasonable and fair. This is critical as the insurer should be paying the same rate as a customer off the street. The tenth step is to stamp all documents with “accepted under protest as partial payment only for property damage.” Repairers

should appear at court dressed professionally and with a business-like approach in order to show the judge that they are taking the case seriously, and this will help overturn preconceived misconceptions and stereotypes about the industry as well as to show that the repairer is not trying to take advantage of anyone but is trying to stop getting taken advantage of.

Parese ended his presentation by discussing tortuous interference with the repair contract and how to prove the insurance company intentionally sought to interfere with the contract between the repairer and the customer.

In order to show that the defendant’s conduct is tortuous, the plaintiff must prove improper motive and willful malice. This sends the message that the insurer is not above the law and that they can and will be sued for refusal to comply with the Code of Ethics and other laws.

Once Parese concluded, Kurt Lundgren, an attorney in the medical insurance industry, presented about the similarities between the automotive and medical insurance industries and their issues. He noted that it is naive for collision repairers to believe they are immune to the insurance companies,

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but repairers are in the business of fixing vehicles and providing customer service to make money, so they should get to the bill when dealing with insurers. He pointed out that “this is all a game for the insurance company, but this isn’t a game for you guys.”

Lundgren noted that in both the auto and medical insurance industries, proof is required to prosecute, but he urged repairers to recognize and emphasize that they are doing this to help the consumer. He also praised attendees for being on the right track about how they deal with insurers, agreeing that shops should not negotiate with insurance companies.

Tony Lombardozzi led a discussion about the audience’s experiences.

He urged attendees not to put anything on paper or online that they are not prepared to defend in court. Though he admits that the industry can be depressing at times, he insists that repairers can have fun with fighting the insurers, as well as making money, because it is exciting to make the insurance companies justify their actions. He believes that shops “need to see that the process works and they can have fun with it.”

Discussing how insurers have their own versions of estimating software that provides a lower estimate than the shop’s version, Tony noted that everything insurers do is based on this estimate, so repairers need to take that tool out of their hands by removing the insurance company’s estimate from the equation. Tony added that the insurers “constantly have their hand in our pocket… and come at us in so many ways that it’s hard to keep up with them.”

Tony noted that the insurance companies have spent 30 years brainwashing repairers to believe they are

the insurer’s servants, but in reality, collision shops only need to allow adjusters to look at the vehicle, complete their paperwork and go home. Erica chimed in, encouraging attendees to “make it painful for [the insurance companies] by doing it your way, the right way... make it clear to them that you’re not going to be the one who changes.” She went on to state that insurance companies have no right to expect collision repairers to stop their process just because the insurer has adopted another bizarre practice. Insurance companies are great at propaganda and brainwashing, but when they try to dictate what a shop can and cannot do, it is necessary to ask why or who says so. Erica stressed, “they can’t make you do anything because you don’t work for them.”

For the final segment, Tony introduced the Stump the Layers panel which consisted of Erica Eversman, John Parese and Kurt Lundgren. Responding to questions from the audience, the three attorneys and the seminar attendees discussed topics such as liens, total loss, consumer fraud, repair contracts, unfair claims, how to handle estimates, supplementals, court cases, invoices, short pay, explaining things to customers, codes of ethics and bringing claims. As he wrapped the event up, Tony explained that he wants everyone to understand that collision shops do not need to keep operating the way the insurance companies want them to. His goal is to show independent collision shops how to successfully operate their shops without outside influence by focusing on the legal aspects of running their business without insurer interference.

For more information contact: CCRE at theCCRE.com.

100 Turkeys Delivered by Kadel’s Auto Body

The week before Thanksgiving, several shop managers from Kadel’s Auto Body delivered more than 100 turkeys to eight food banks in the Portland, Vancouver, Salem and Eugene areas.

An equivalent cash donation was gifted to a Tigard, Ore.-based food pantry.

“The employees and owners of Kadel’s Auto Body live and work in these communities. When we see that our neighbors have fallen on hard times, we want to help,” said Dan Braden, president and CEO of Kadel’s Auto Body.

Shop managers Dave Donahue and Brian West donated turkeys to Snowcap Community Charities, where a staff member explained that food pantries are not often able to get special holiday

items from the Oregon Food Bank.

“Thank you to Kadel’s for providing these turkeys for the ever-increasing need that we see every day,” said Eileen DiCicco, development associate at the Marion-Polk Food Share.

Turkeys were also donated to the following organizations: Clark County Food Bank — Vancouver, Wash.

Good Samaritan Center — North Portland, Ore. Marion County Food Bank — Salem, Ore. Salem Evangelical Church — Salem, Ore. The Salvation Army Food Bank — Eugene and Springfield, Ore. The Lamplighters — Eugene, Ore.

www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 61

3M Supports “Hire Our Heroes” Campaign to Support U.S. Veterans

3M recently launched its “Hire Our Heroes” campaign to help provide training and support for the nation’s returning veterans and their families.

3M is partnering with the Collision Repair Education Foundation, the National Auto Body Council and Operation Comfort to help support rehabilitation and training, as well as drive employment in the collision repair industry for America’s returning veterans. The goal of the 3M “Hire Our Heroes” campaign, which kicks off in

January 2013, is to donate up to $250,000 to benefit returning veterans and their families. The donation is based on the sales of select popular 3M products to qualified distributors.

“The men and women who have served our country bring excellent training and skills, a commitment for doing the job correctly, a passion for intellectual achievement and a strong work ethic – all tremendous attributes for employment in today’s collision repair industry,” said Dale Ross, U.S.

marketing operations manager for 3M Automotive Aftermarket Division.

“Our industry needs qualified repair professionals with the necessary skills to keep pace with the evolving repair standards,” added Ross. “We are committed to helping repair facility owners and managers around the country get the capable, qualified repair professionals they need to perform at the high standards expected in today’s collision industry while honor-

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www.autobodynews.com | DECEMBER 2012 AUTOBODY NEWS 63