REFINISHING REPARATIONS

Mike Anderson’s most recent “Who Pays for What” report has been released; this time with its sights set on the use of invoicing systems for material costs. This latest report from the CEO of Collision Advice builds off findings from a 2021 survey that found that about half of bodyshops used a flat hourly rate model to bill for the cost of materials during refinishing work, while only about 19 percent used a materials calculator or invoicing system. According to Anderson, the portion of shops using these systems has remained largely unchanged, however, more than 40 percent of shops now report using a mix of flat rates and materials calculating, up from 32 percent in 2021. “I think the large change is due to the multiple increases in paint prices virtually all shops experienced since we last did this survey in January of 2022,” he said. Results from this most recent survey showed that the most significant change was to payment for two-tone work, which experienced a 5.9 percent drop to a total of 75 percent of shops who report “always” or “most of the time” being compensated for such work. “It would be interesting to know if [the compensation decline] is because shops previously included this under ‘second colour set-up’ and now they separate it out, or if there is insurance pressure as part of virtual reinspections,” Anderson speculated. “All of the paint manufacturers have bulletins on the need to denib or finish sand or buff, often noting (as the AkzoNobel statement reads) that, ‘It is not likely that a repair can be made that is completely free of surface defects,’ and that it is (as the Axalta statement reads) ‘a normal and necessary operation for both OEM manufacturers and collision repair shops.’

Aftermarket Strong

DesRosiers Automotive Consultants (DAC) has released its latest Automotive Aftermarket scorecard, reporting increased repair costs 2022 and expectations for “strong [aftermarket] growth” in 2023. With parts shortages “widespread throughout the year,” writes DAC, the customer price index for passenger vehicle maintenance and repair services (as of December 2022) increased 5.6 percent compared to December 2021. Passenger vehicle parts, accessories and supplies consumer price indexes were up 8.6 percent in December 2022 over December 2021. The report also states that gasoline consumption (in place of vehicle usage data) remained “fairly steady” in 2022, with just a 1.9 percent decrease overall, which DAC says is “unsurprising given the improved efficiencies of the fleet.”

“All expectations point to another strong year for the Canadian aftermarket in 2023, barring severe wider economic uncertainty,” concludes DAC’s report.

Drive Yourself

In a move that diverges from the path of fellow legacy automakers, Ford announced in late March that it has withdrawn its petition to the National Highway Traffic Safety Administration (NHTSA) to develop Level 4 autonomous driving systems. This decision coincides with the shuttering of Argo AI, a joint Ford-Volkswagen AV development firm, in October. “As evidenced by the planned shutdown of our autonomous driving system (ADS) partner Argo AI, we believe the road to fully autonomous vehicles, at scale, with a profitable business model, will be a long one,” Ford wrote in its February 13 letter to the NHTSA. Prior to this decision, Ford was seeking approval to deploy up to 2,500 autonomous vehicles annually.

Sensor Census

Some deeper analysis into Tesla’s October decision to cut ultrasonic sensors from its production lines seems to show that the cost-cutting measure from the leading EV brand is not as foolhardy as initially perceived. Tesla’s decision to put its faith into its proprietary computer vision software, Tesla Vision, instead of the industry standard combination of LiDAR, radar and cameras made it an outlier. Recent evaluations of the technology, however, including a 2019 research paper from Cornell University, show that the stereo cameras that Tesla uses in place of other systems “could be capable of generating a 3-D map of nearly equivalent quality to that of a LiDAR system.” From a cost perspective, Tesla figures it can get essentially the same result with a $5 as with a $7,500 LiDAR system, so the decision becomes pretty clear.

Brain Cushion

An engineer at Honda has been honoured with the U.S. Government Award for Safety Engineering Excellence for his work on creating a “groundbreaking” passenger air bag system with proven life-saving capabilities. Eric Heitkamp, alongside eight others, was recognized at the National Highway Traffic Safety Administration’s (NHTSA) Enhanced Safety of Vehicles conference, held in Yokohama, Japan in early April. Heitkamp’s design, which Honda describes as functioning similar to a catcher’s mitt, was directly aimed at mitigating brain injuries caused by traffic accidents. Where a conventional side airbag may see a passenger’s head rotate and slide off, Heitkamp’s system effectively catches, cradles and protects the head, according to Honda.

Going Global

Collision Builders is expanding and is currently in discussion with multiple franchised collision repair businesses across the United States. According to a press release on the company’s LinkedIn profile, the team currently advises a twostore franchised collision repair business in California and is looking to provide collision repair business advice to more shops. Collision Builders provides a feebased advisory service for owners who want to sell their business, increase its value or acquire additional auto repair shop locations.

Checks And Balances

Uni-Select and LKQ say they are pleased to announce they have gotten the green light from the Canadian Competition Bureau to go forward with LKQ’s acquisition of Uni-Select, first announced in February. According to Uni-Select’s press release, the arrangement remains subject to certain closing conditions, including the receipt of other applicable regulatory approvals, consisting of approval under the Investment Canada Act and clearance by the U.K. Competition and Markets Authority. The companies expect the arrangement to be concluded by the second half of 2023.

FORD’S FINANCES

Ford does not expect its electric vehicle (EV) unit to be profitable until 2026, Known as Model e, Ford’s EV unit lost US$2.1 billion in 2022 and could lose as much as US$3 billion in 2023. Ford’s Model e business also reported US$900 million losses in 2021. The automaker says it sold approximately 96,000 EVs in 2022, representing US$5.3 billion in revenue. On EBIT, Ford Model e worked with a profit margin of negative 40 percent in 2022. The automaker said the unit is targeting an eight percent operating profit margin, and profitability, by 2026. For comparison, Tesla reported a 22 percent profit margin for Q4 2022.

MIX ‘N’ MATCH

Ford’s engineering department is working towards what could be a significant cost-cutting measure for the automaker, as a recent patent filing dug up by Ford Authority shows a design for a one-size-fits-all configurable frame for use on future vehicles. The patent design, which was filed in November 2022 and published in March, illustrates a single vehicle frame where individual components, such as batteries, motors, suspension, and wheels could be swapped out and rearranged to suit the requirements of various Ford models and trims. The common consensus among Ford observers is that this sort of modular frame design will, if effective, offer the company significant savings in assembly, as well as potentially contribute to the streamlining of repairability for future Ford vehicles.

Paint Probs

Hyundai Elantra owners in Quebec have filed a lawsuit against the OEM seeking compensation for paint degradation damages. The class action was filed May 1 by Lambert Avocats, on behalf of Michel Allard and other drivers who purchased or leased a white or pearl-white Hyundai Elantra on a long-term basis and experienced paint degradation issues. Allard had purchased a “perfect condition” white 2017 Elantra in June 2019. Three months after purchase, Allard noticed peeling paint on the hood of the vehicle. He approached the dealer, who covered the repair—but the same problem occurred in the summer of 2022, this time on the left front fender and the roof of the vehicle. This time, Allard’s dealer said he would not cover the repairs because the warranty was expired. Repairs for Allard’s Elantra were estimated at $4,581.52. The presence of rust was also noted. While his vehicle was being estimated, Allard rented the exact same car, a white 2017 Hyundai Elantra, which he claims “also had paint degradation issues, particularly on the front hood of the vehicle.” Then, Allard learned of a Facebook group of more than 300 Elantra owners facing the same issues.

TESLA’S PRICE TAG

Tesla has plans to use cheaper, iron-based batteries in electric semi-light trucks, the OEM announced in April via its Master Plan Part 3 paper. Tesla currently uses nickel-based batteries in its EVs. Lithium iron phosphate batteries are generally cheaper than nickel and cobalt-based lithium-ion batteries, which analysts expect will help the OEM cut down on manufacturing costs while simultaneously addressing supply issues related to nickel and cobalt. Lithium iron phosphate batteries are also considered less likely to catch fire compared to their nickel and cobalt-based counterparts. They are, however, larger, heavier and hold less energy than nickelbased batteries. The proposed lithium iron phosphate batteries, intended for use in “short range” heavy electric trucks Tesla calls the “Semi Light,” will hold a capacity of 53 kWh. The Model Y and Model 3 batteries tout a 75 kWh capacity. Tesla intends to use lithium iron phosphate batteries in the Model Y and Model 3 eventually, though it has not provided a timeline.

Dead Batteries

With the current state of insurance, an EV might be written off completely if its battery is dented, warped or slightly scratched, according to an article first published by the Times Live. The article says this stems from a general inability to assess or repair battery packs after accidents, resulting in write-offs even if the vehicles have been barely used. Consequently, this has (reportedly) resulted in battery packs piling up in scrap yards, further worsened by the units costing half the price of an EV–meaning you get more value from buying a new EV than replacing a damaged battery. While several OEMs including Ford and General Motors have promised repairable EV battery packs, many are assembled in a way that makes repairs significantly tougher, with Tesla Model Ys gluing these battery packs into the car’s structure. The decision by OEMs to refuse to disclose diagnostic data has resulted in insurers writing off vehicles as a precaution, according to Peter Gruber, owner of Gruber Motor Co. “An insurance company is not going to take that risk because they’re facing a lawsuit later on if something happens with that vehicle and they did not total it,” he said.

Oem Origins

Tesla is selling Chinese-made Model 3 and Model Y units in the Canadian market, confirming suspicions that the EV maker had shipped vehicles from its Shanghai factory to the North American market. As of May 23, Tesla’s website had Model Y vehicles and long-range, all-wheel-drive Model 3s available for immediate delivery in British Columbia, which bore codes indicating they were manufactured at Tesla’s Shanghai Gigafactory. Fans of the brand had suspected the recent reduction to the Model Y’s range performance—from 488 kilometres on a single charge to 455 kilometres—indicated that Tesla was selling China-made cars in Canada. Tesla models built at the Shanghai factory have VINs beginning with ‘LRW’, Reuters reported.

Misplaced Priorities

A PC Insurance commissioned survey found that safe driving discounts are the prime factor for most Canadians, with collision and liability coverage ironically considered the second and third most important factors in an auto insurance policy. The survey polled 1,500 Canadians, asking which factors they considered important, along with the most common misconceptions about auto insurance. Safe driving discounts topped the list, with 50 percent considering it the most important factor. This was followed by collision coverage at 42 percent, liability coverage at 38 percent, bundles with home insurance at 38 percent, and multi-car discounts at 25 percent.

NOTE: Eligible parts only. Wheels are excluded from CAPA certification but are subject to strict SAE standards.

NOTE: Eligible parts only. Wheels are excluded from CAPA certification but are subject to strict SAE standards.

CAN IT STEER?

Ever wondered if a roll of toilet paper could steer a car? What about a Panasonic flat-screen? Or a bottle of water? Instagram user @dejonsvids has made it his mission to answer those oftenasked questions, with a whole portfolio of videos where the steering wheel is replaced by, well, anything but. He’s confirmed that a roll of TP can steer a car—as can a freshly-sharpened kitchen knife, a plastic clothes hanger, a box of tissue and much, much more.

We Are Infinite

Sometimes it’s not enough to simply crack a window—you’ve got to stick your whole body out the sunroof to truly satisfy the urge for fresh air. Whether you relate or not, someone does, as Ontario police caught a woman cruising at 100 kilometres per hour with her entire body sticking out the sunroof. She stays in the position for the entirety of a 30-second clip posted to Twitter…so we know she wasn’t sneaking a quick fix. All in all, she was charged with not wearing a seatbelt.

Sticky Salesman

Back in November 2022, a Brampton, Ontario driver was pulled over in a barely-driveable BMW that appeared to be held together by duct tape and determination. When police questioned why the driver—who had a suspended license, no insurance and six other violations on record—he said he was simply en route to sell his car, so no problems here.

Wheely Big

You know what would make a Tesla a whole lot better? 10-foot wagon wheels. The members of YouTube channel WhistlinDiesel clearly felt the same, ‘cause the crew posted a video of a Tesla Model 3 outfitted with 10-foot wagon wheels back in mid-March. The overarching goal of the project was to flip the Tesla completely upside down while maintaining drivability—a feat achieved in the full 13-minute video.